Leadership styles, entrepreneurial orientation and family business growth in Ghana. The research problem
While the number of family business abounds in Ghana, one sees lots of these slowly dying and some going bankrupt (Wolf, 2004). The lack of continuity and growth in family businesses is a major concern because of the primary contributory role that family businesses play in the world economy (Lansberg 1999: 1). It is perceived that entrepreneurial activities in Ghana lack the dynamism and competitive edge of those in more developed countries (Saffu, 2004). One reason that can be advanced is the lack of appropriate leadership style and competencies to manage the family business enterprises in Ghana (Wolf, 2004). Researchers in the fields of organizational behavior and leadership have examined leadership styles and their effects on such variables as job satisfaction, job stress, role conflict, job performance and organizational commitment (Humphreys et al., 2003, MacKenzie et al., 2001 and Stock and Hoyer, 2002), in the context of the North American and other developed countries and has rarely been conducted in emerging economies with different cultural orientation (Fakhrul et al 2011), and the Ghanaian context is no exception in this regard. Globally, there is a dearth of research regarding the influence of leadership styles and entrepreneurial orientation on the growth of service sector businesses including private schools. According to (Kest, 2007) there is a lack of Leadership styles research within private educational institutions, and very little has been researched and publicly documented on leadership studies in Ghana (Zame & Hope, 2008). Societal culture also has impact on the leadership style of management and as such the leadership style in an organization may vary from society to society (Mujtaba et al, 2011).
Entrepreneurial Orientation (EO) has been widely studied in a variety of contexts (Lumpkin and Dess, 1996; Wiklund, 1998; Lyon et al., 2000). Although there is considerable agreement in the literature on the effects of the fundamental dimensions of an entrepreneurial orientation in the context of large commercial organizations and in various sectors of the economy including manufacturing, construction, retail, agriculture and mining (Covin & Slevin, 1986; Jantunen et al., 2005; Lumpkin & Dess, 1996; Zahra & Garvis, 2000), application of the concept in private educational institutions with its unique school climate remains an underexplored area. Surprisingly, to my knowledge, no existing study has tested the EO construct in the context of private educational institutions.
To date, entrepreneurial orientation (EO) and firm growth research has been conducted mostly in the advanced economies. Kemelgor‟s study (2002) compares firms in the Netherlands and the U.S. and concludes that EO is characterized by cultural differences. Wiklund and Shepherd (2005) also identify this lack of comparisons and the difficulty of generalizing the relation between EO and business performance in a European context. In their meta-analysis, Rauch et al. (2004), Todorovic and Ma (2008) also find that the relation between EO and performance varies substantially according to national culture. These implications are indicative of a clear setback given that industry type and national culture have been identified as variables influencing the leadership styles and entrepreneurial orientation growth relationship (Rauch et.
These problems coupled with globalization, technological advancement, and the information and communication revolution are calling for new paradigms. This study therefore seeks to fill this gap by examining the interaction between leadership styles and entrepreneurial orientation (EO) and provide evidence on their combined effects on growth of private schools in Ghana. Justification for the research
There are no previous studies that have been undertaken in Ghana that have investigated about...
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