Impact of Leaders Competency on the Profitability of the Micro, Small and Medium Enterprise

Abstract

Purpose: A changing global business arena marks the present business environment;
these changes push the organizations to undergo both systematic and unsystematic
transmutation. The current study identifies the leaders competencies required in an
MSME and studies the relationship between leaders competencies and profitability of
the organization.

Design/Methodology/Approach: The study sets about with an in-depth literature
review of the identified keywords i.e. competency and leaders’ competency and Micro,
Small and Medium Enterprise using Systematic Review of Literature (Tranfield,
Denyer and Smart 2003).

Findings: Through extensive literature review a model was proposed that establishes
the relationship between identified competencies and profitability of the organization.
The competencies are defined in terms of 7 variables.