The application of LMX leadership model in evaluating the organizational integration of a Greek SME

Abstract

The aim of this paper is to examine the leadership relationships, organizational culture and level within integration of an SME, referred to as The Company, for the reasons of anonymity, which is operating in the rapidly developing Food industry, in the flavor and taste sector. The leadership model utilized is that of LMX dyadic relationships between individuals in different hierarchical groups. The method used to gather and process data, was based on a combination of qualitative and quantitative methodologies. A total number of 14 surveys, completed by staff members were examined together with 1 interview of a CEO. The conclusion reached was that The Company is counting on knowledge, innovation, and successful commercialization as its competitive advantages and is relying on close personal relationships between managers and the CEO, to achieve its aims. We found out that new employees and non-technocratic staff are not fully integrated into this close personal culture of in groups at different hierarchical levels. The in-depth overview also showed us that The Company lacks formal culture. The main implication of our findings is that an "Aristocratic" inner circle, created within The Company, and an unbalanced leader-follower relationship that is unconsciously emphasized have restricted in a potentially unhealthy working environment and barriers to energy flow which are keeping The Company from advancing in the Market and preventing it from becoming one of the most competitive SMEs in Greece.