Influence of digital era leadership on small to medium enterprises (SME) growth in Zimbabwe

Abstract

This study examined the influence of digital era leadership on SMEs growth in Zimbabwe. The study was prompted by limited adoption of digital technologies in leadership processes among SMEs. The objectives were to establish the extent to which e-leadership is applied among SMEs; determine the effect of e-leadership on cost reduction among SMEs; examine how virtual teams enhance employment levels among SMEs; and establish the impact of leading through ICTs on sales/turnover growth of SMEs. The study was theoretically guided by the technology acceptance model, diffusion of innovation theory and the adaptive structuration theory. The positivism philosophy and deductive approach were adopted in line with the quantitative nature of the study. An explanatory research design was employed and data were collected using the survey strategy. Structured questionnaires were administered to 177 SMEs selected using simple random sampling. Data were analyzed quantitatively using descriptive and inferential statistics generated from SPSS version 16. The study found out that the e-leadership was mainly practiced through social media platforms such as WhatsApp, Facebook and Twitter. The study noted that e-leadership reduces operational costs for SMEs mainly due to telecommuting and lower costs for virtual environments. A chi square test conducted at 5% level of significance showed a significant relationship between e-leadership and cost efficiency. Study results showed that virtual teams positively influence employment levels among SMEs in Zimbabwe, and further confirmed a positive correlation between leading through ICTs and sales/turnover growth of SMEs. The study concluded that digital era leadership positively influences SMEs growth. It was recommended that SMEs leaders in Zimbabwe prioritize the adoption of e-leadership and incorporate e-leadership in their business strategy. Policymakers in government were encouraged to improve access to cheaper ICT gadgets and supporting network infrastructure. Areas for future research have been suggested after considering the limitations of the study.