Date Added: May 2011
Failures of small businesses in the United States continue to increase. This research examined small construction businesses from Pennsylvania and West Virginia to determine if there was a relationship between leadership style and organizational profitability and success. Leadership was measured through perceptions of leaders, managers, and employees from small construction companies using the Multifactor Leadership Questionnaire survey. A quantitative correlational design tested the relationships between leadership and organizational profitability (based on employee effectiveness) and organizational success (based on employee satisfaction). The findings revealed stronger and more positive relationships between transformational and transactional leadership styles and dependent variables than between laissez-faire leadership style and dependent variables.