Relationship of Charismatic Leadership and Organizational Change on Business Transformation among Malaysia Small and Medium Enterprises (SMES)

Abstract

Growing challenges in the business environment has required businesses to make faster responses to the rapid changes and undergo business transformation to survive and remain competitive. This study attempts to fill in the gap in examining the business transformation relationship with important determinant from the organization and leadership perspective. Charismatic Leadership has been an important driver in achieving organizational change. However, existing study lacks the research into the relationship between charismatic leadership in organizational change and business transformation, therefore research gap exists in the area in terms of its conceptual testing and theoretical development. Through utilizing charismatic leadership strategy, and developing a relationship with the aspect of organizational change, this study proposes a model that promotes business transformation. This research intends to identify the mediating effect of organizational change in the relationship of charismatic leadership and business transformation. This research intends to prove that charismatic leadership and organizational change has a positive significant relationship with business transformation.