Influence of Leadership Styles of Women Entrepreneurs on their Psychological Wellbeing

Abstract

Purpose:   The aim of this study to examine the relationship between different leadership styles (transformational, transactional, and laissez-faire) and the psychological wellbeing of women entrepreneurs, considering the potential moderating effects of demographic factors.   Theoretical framework:  The study is grounded in the Full Range Leadership Theory and the theory of psychological wellbeing, with the aim of understanding how different leadership styles may impact the psychological wellbeing of women entrepreneurs.   Design/methodology/approach:  A cross-sectional survey design was employed, utilizing a purposive sample of 328 women entrepreneurs in India. Data were collected using the Multifactor Leadership Questionnaire (MLQ) and the General Health Questionnaire (GHQ-12). Multiple regression and moderation analyses were conducted to investigate the relationships between leadership styles, psychological wellbeing, and demographic factors.   Results:   The results indicated that transformational leadership was positively and significantly associated with psychological wellbeing (p < .001), while transactional and laissez-faire leadership styles were negatively and significantly associated with psychological wellbeing (p = .021 and p < .001, respectively). The overall regression model explained 25% of the variance in psychological wellbeing (F(3, 324) = 35.69, p < .001). No significant moderating effects of demographic factors (age, education level, years of experience, and business size) on the relationship between transformational leadership and psychological wellbeing were found (all p > .05).   Conclusion:  The findings suggest that transformational leadership is beneficial for the psychological wellbeing of women entrepreneurs, whereas transactional and laissez-faire leadership styles may have detrimental effects. The relationship between leadership styles and psychological wellbeing is consistent across different demographic factors, indicating the generalizability of the results.   Research, Practical & Social implications:  This study has several managerial implications, emphasizing the importance of transformational leadership in promoting psychological wellbeing among women entrepreneurs. Managers and organizations should invest in leadership development, create a supportive organizational culture, and prioritize employee wellbeing, performance management, talent retention, and diversity and inclusion initiatives to foster a conducive environment for women entrepreneurs to thrive.   Originality/value:  This study addresses a gap in the literature by examining the influence of leadership styles on the psychological wellbeing of women entrepreneurs and exploring potential moderating factors, providing novel insights into the factors that contribute to their success and wellbeing.