"Analyzing LMX Impact on Organizational Performance in SMEs: An Integrated Fuzzy Reasoning Approach" authored by Mirriam Ogunja, Zhao Shurong, Luo Ailing, Wang Yiting, and David Anim Mante was published in Current Psychology (Springer, SSCI, Q2).

Please refer to the link: https://doi.org/10.1007/s12144-024-07254-0 for full paper.

Summary of the Paper:

This study aims to examine the impact of Leader-Member Exchange (LMX) on organizational performance within Kenyan small and medium enterprises (SMEs). The research utilizes an integrated fuzzy reasoning approach to address significant gaps in existing literature, particularly in resource-constrained, culturally diverse settings. Data from 1,350 respondents and expert evaluations were analyzed using fuzzy weighted sum techniques to explore the relationship between LMX quality and organizational success. The demographic sample consisted of 61% male (827 respondents) and 39% female (523 respondents), with ages ranging from 26 to 58 years.

The results from Structural Equation Modeling (SEM) confirm a positive association between high-quality LMX and improvements in employee well-being, job satisfaction, and organizational resilience. These findings highlight the role of LMX in fostering a cohesive and resilient work environment that supports team effectiveness and contributes to sustainable growth. The study positions LMX as a crucial strategic asset for enhancing employee engagement and driving organizational performance.

The study provides theoretical, managerial, and practical implications, offering valuable insights for managers and leaders in SMEs, particularly in Kenya and other emerging markets. The study also presents actionable recommendations for policymakers and business leaders to improve organizational success in SMEs. By focusing on strategies that foster emotional engagement, promote supportive leadership, and implement fair HR policies, organizations can create a positive work environment that motivates employees and boosts efficiency. Additionally, the findings suggest the need for tailored policy initiatives and interventions to address the specific challenges faced by SMEs, contributing to economic development and sustainable growth both in Kenya and globally.