MBA Thesis Daniella Griffith - Kranenberg.pdf - FHR Lim A Po ...

1.3 Relevance and justificationThe majority of businesses in most countries are Small and Medium-sized Enterprises. Theyare the mainstay of most economies in the world especially when we look at employment andthe impact they have on development of those countries 1 .With current conditions, like high employee turnover and slow economic growth, facing theestablished small and medium sized enterprises, the main goal of this research is to determinewhat type of leadership style and organizational culture keeps employees committed to anorganization, an SME where the relationships (as mentioned earlier) between the leader andthe employees are different from those in large organizations and if job satisfaction had amediating effect in this relationship.This research will show what is expected by employees in terms of leadership style,organizational culture, being satisfied with their job and being committed to an organization.It will also add value to leadership and organizational culture studies in Suriname by being aguide for current and future leaders in their struggle with retaining employees through jobsatisfaction and organizational commitment. Retaining skilled employees is needed to surviveand be competitive in local, regional and international markets.1.4 Problem StatementOrganizational commitment has received a lot of attention in research of the workenvironment. It has been measured and conceptualized in many different ways, but stillremains a challenging construct (Lok et al, 2007). The relationship between organizationalcommitment, organizational culture and leadership style, namely the effect that culture andleadership style, as independent variables, have on commitment as a dependent variable inSMEs, has not been given much attention in research (Lok et al 2007).Many of the studies on the earlier mentioned constructs were done in large companies and indifferent concept relationships, so this research will view these concepts from another angleby looking at the relationships between them in Small and Medium sized Enterprises. Therelationships are different because they have fewer resources, smaller communicationsystems, different leadership styles and slim growth opportunities. These characteristics areexpected to be different in SMEs.1 Issue Briefing Note: Small and Medium-sized Enterprises, 2004.4