Influence of Participative Leadership on Worker Performance in a Hybrid Social Enterprise

Abstract

Growing interest in corporate governance has spurred curiosity in hybrid social enterprises (HSEs), especially in developing economies, as businesses increasingly focus on social responsibility and ethics. These initiatives compound employee responsibilities, often beyond their formal contractual obligations. Consequently, the success of these hybrid social responsibilities necessitates a leadership style that inspires employees. The social nature of HSEs informed the Social Exchange Theory (SET). Using a mixed research methodology, the study seeks to unpack two primary issues abductively: firstly, revealing the impact of participative leadership style on employee performance, and secondly, unravelling the specific aspects of this leadership style that affect performance within HSEs. The research employs a single case study design focused on a non-governmental organisation in Cape Town, South Africa. Respondents were purposively selected to ensure rich, insightful data and research quality. The target population was 60 team members from four departments. The research instrument was a structured questionnaire containing quantitative and qualitative (open-ended) questions. Thematic content analysis was used for the qualitative data related to the first objective (identifying aspects), while descriptive statistics analysed the quantitative data for the second objective (assessing impact).The results demonstrate a significant positive relationship between participative leadership style and employee performance. Key findings indicate that a leader's education level (skills and knowledge) and decision-making capability are crucial aspects promoting performance. In contrast, demographic factors such as the leader's age, gender, and race were found to have no significant effect. This study contributes to leadership theory by advancing debates and providing practical guidance for leaders in HSEs on designing leadership approaches that enhance employee performance.