THE ROLE OF TRANSFORMATIONAL LEADERSHIP, ORGANZIATIONAL CULTURE AND EFFECTIVENESS IN THE PERFORMANCE OF SME IN NORTH MACEDONIA

THACI, Selvije and Karemani Zulbeari, Argjina and Yzeiri Baftijari, Aida (2026) THE ROLE OF TRANSFORMATIONAL LEADERSHIP, ORGANZIATIONAL CULTURE AND EFFECTIVENESS IN THE PERFORMANCE OF SME IN NORTH MACEDONIA. ECONOMIC VISION International Scientific Journal in Economics, Finance, Business, Marketing, Management and Tourism, 13 (25-26). pp. 108-114.

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Abstract

This study analyzes the critical role of transformational leadership as a key driver of organizational success in Small and Medium-sized Enterprises (SMEs) in North Macedonia. The main focus of this research is to examine the impact of transformational leadership on organizational performance, treating organizational culture and effectiveness as mediating variables. Unlike traditional studies that are focused on direct relationships, this paper proposes a model where transformational leadership affects performance indirectly, by initially shaping a value-based culture and increasing operational effectiveness. The methodology is based on a quantitative approach, using structured questionnaires distributed to managers and owners of SMEs in North Macedonia. The data were analyzed through statistical methods, including mediation modeling to test the mediating role of organizational culture and effectiveness in the relationship between transformational leadership and performance. The results suggest that transformational leadership has a significant positive impact on organizational culture, which in turn serves as a bridge to effectiveness and ultimate performance. This study contributes to the existing literature by providing an empirical perspective on the importance of leadership as a strategic factor for competitive advantage, creating an innovative and productive work environment in the local context. The practical implications suggest that SME owners and managers should invest in developing transformational leadership competencies to improve competitiveness and long-term performance.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Unnamed user with email zshi@unite.edu.mk
Date Deposited: 05 Oct 2026 11:54
Last Modified: 05 Oct 2026 11:54
URI: http://eprints.unite.edu.mk/id/eprint/2601

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