Transformation Leadership, Innovative Behavior and performance of small scale businesses in Kampala: A case of Restaurants in Nakawa Division

Abstract

The study focused on transformational leadership, innovative behavior and performance of small scale businesses in Kampala, with specific focus on restaurants in Nakawa Division. The specific study objectives were to; establish the relationship between transformational leadership styles on the performance of restaurants, examine the relationship between transformational leadership style and the innovative behavior in restaurants and establish the relationship between innovative behaviour and performance of restaurants in Nakawa Division. The study used a cross-sectional survey design and adopted both qualitative and quantitative approaches to collect and analyse data. A sample of 144 respondents was identified for data collection, out of which 125 respondents were able to respond either by way of questionnaires and interviewed. The study findings indicated that there is a positive significant relationship between transformational leadership style and performance of small scale business which was observed at r = 0.614**. The results also revealed that there was a positive relationship between transformational leadership style and the innovative behavior and performance of small business and this realized at r = 0.268**. The study findings established significant positive relationship innovative behavior and performance of small business and this was observed at correlation coefficient of r=0.421**. Basing on the study findings, the researcher concluded that when small scale business treat their staff with respect and provide advice to staff, it helps to improve business performance. It was thus recommended that: managers should strive to become role models to their subordinates; small scale business should focus on the publicity and advocacy of business internal innovation culture and innovation concept and; business managers should pay more attention to emotional information from subordinates and make a corresponding response in the process of innovation.