The Impact of Leadership on Organizational Performance in Small ICT Companies

Abstract

This study analyses the impact of leadership on organizational performance in small Information and Communication Technology (ICT) enterprises located in Quelimane, Mozambique. The main objective was to understand how leadership styles adopted by managers influence employee satisfaction and, consequently, organizational performance. To achieve this objective, a qualitative, exploratory, and descriptive research approach was adopted, using a multiple case study design. Data were collected through semi-structured interviews conducted with four managers and one employee from small ICT companies. The findings reveal the presence of transformational leadership characteristics, namely charisma, inspirational motivation, individualized consideration, and intellectual stimulation, although with varying degrees of intensity. The results also indicate that leadership practices focused on motivation, recognition, effective communication, and employee appreciation tend to be associated with higher levels of job satisfaction and positive perceptions of organizational performance. The findings support the existing literature, which identifies transformational leadership as a significant factor in enhancing organizational performance, even within small enterprises characterized by informal management structures.