Leadership and business performance: A study of homestay entrepreneurs in Sabah Malaysia

Purpose: This paper investigated the leadership impact on the income performance of homestay entrepreneurship. Design/methodology/approach: A mixed qualitative and quantitative (QUAL→quan) methodology. The performance of leadership was analysed based on the Full-Range leadership theory (FRLT) and th...

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Bibliographic Details
Main Authors: Wendy WMY van Horssen, Noor Fzlinda Fabiel, Rosle Awang Mohiddin
Format: Article
Language:English
Published: Universal Publishers 2024
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/42959/1/FULL%20TEXT1.pdf
https://eprints.ums.edu.my/id/eprint/42959/
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Summary:Purpose: This paper investigated the leadership impact on the income performance of homestay entrepreneurship. Design/methodology/approach: A mixed qualitative and quantitative (QUAL→quan) methodology. The performance of leadership was analysed based on the Full-Range leadership theory (FRLT) and the Managerial Grid Leadership Model. Findings: Qualitative studies revealed entrepreneurs regarded themselves as leaders carrying out their duties in homestay coordination with a preference for a mix of transformational and transactional leadership styles. The quantitative survey showed positive and intense relationships between transformational and transactional leadership styles and business performance. The transformational leadership style is significantly more related to a business’s non–financial performance, while the transactional leadership style is more related to a business’s financial performance than the passive-avoidant or non-transactional, laissez-faire leadership. Research limitations/implications: The study focused on applying a local dialect to secure a working relationship with the villagers to gain their trust in responding to the research. A direct approach to the officers in charge of the homestay development program, leaders who are the coordinators, and entrepreneurs running the business. Practical implications: More than half of Sabah homestay business’s performances are not meeting the minimum Malaysian Household annual income of RM70,000 according to the Population and Housing Census Malaysia (2019) making it, a critical study towards a more sustainable future. Originality/value: A mixed-method philosophy of 'pragmatism', allowed a paradigm that philosophically embraces the use of phases using a (QUAL→quan) sequential exploratory design contribution to a body of knowledge identifying the importance of ‘leadership capability building for the policymakers.