Manufacturing strategy formulation, leadership style and organizational culture in small and medium-sized enterprises

Journal article, 2016

This study encourages an increased focus on managerial and organizational issues in manufacturing strategy formulation. The study investigates the relationship between manufacturing strategy formulation, leadership style and organizational culture in small and medium-sized enterprises (SMEs). Manufacturing strategy formulation is studied in three cases, and it is found that the formulation is different in each case. Leadership style is more visible than organizational culture in manufacturing strategy formulation in the case companies. Due to the small number of employees in SMEs, the top manager’s decisions influence the whole organization and the organizational culture. The leadership style and organizational culture are closely aligned in SMEs due to the managers and to the centralized decision making.