Influence of Leadership on Performance of Small Businesses in Tanzania: Mediating Role of Enterprise Communication

Abstract

This research studied the influence of leadership on performance of small business in Tanzania: Mediating role of communication. A sample size comprised of 384 employee small business Proportionate stratified sampling and random sampling technique was applied to sample respondents. Bivariate correlations analysis was used to test association of the three study variables (leadership, performance and communication) while probability estimation was analysed using a confirmatory factor analysis. The study revealed that leadership positively influence performance (β = 0.27, p < 0.01) as well as communication (β = 0.44, p < 0.01). The results also showed that communication is positively influence performance (β = 0.13, p < 0.05). On mediating effect leadership has an indirect influence on performance (β = 0.06)). The study concluded that communication acts as a mediator between Leadership and small business performance. The study recommends that leaders should consider effective communication as an essential component of its administration tactics and identify communication techniques that will enable employees interpret correctly message communicated by leaders so that desired performance can be attained.