Investigating the impact of inspirational leadership on implementing and managing change: The case of Small and Medium Enterprises (SMEs) in Saudi Arabia education institutions

Abstract

The world business environment has become increasingly competitive due to changes in both its internal and external factors, especially during the recent uncertainties. Such uncertainties greatly impacted organisations, especially the sustainability of SMEs. Therefore, it is essential that organisations master effective management techniques to successfully navigate change while improving performance in the given context. This research aims to investigate the impact of inspirational leadership on Change Management (CM) and Organisational Performance (OP) in small and medium-sized educational institutions (SMEs). Detailed literature review highlighted the importance of inspirational leadership on Change Management. Furthermore, evidence from literature review reveals that there is limited research on inspirational leadership, especially around SMEs education institutions (detailed Literature Gap presented in Chapter 2, Table 2-2). A qualitative research approach was employed, using interviews with 37 participants, including leaders and managers from SMEs within the education sector. Data were analysed thematically to explore the relationship between inspirational leadership, Change Management, and OP. This research found that inspirational leadership plays a crucial role in improving Change Management practices and Organisational Performance in SMEs. Leaders who provide clear vision, foster trust, and inspire their teams to embrace change were found to enhance communication, collaboration, and innovation. These factors contribute to the effective implementation of change initiatives. Participants highlighted that when leadership is inspirational, employees are more motivated and committed to organisational goals, which improves their overall performance. Inspirational leaders were also seen as key in creating a work culture that supports change, making it easier to implement new strategies and achieve long-term success. However, the study also revealed challenges such as a lack of resources and resistance to change, which can hinder the full realisation of leadership’s impact on performance. This research contributes to the understanding of how inspirational leadership drives Change Management and improves Organisational Performance in the context of SMEs within the Kingdom of Saudi Arabia education sector. The study provides practical insights into leadership strategies that educational institutions can adopt to enhance performance and successfully manage change. Additionally, the research highlights the importance of leadership in cultivating a positive Organisational Culture that supports adaptation to external and internal changes. Key limitations include the small sample size of 37 participants, which may limit the generalisability of the findings. The reliance on self-reported data introduces potential biases, and the homogeneity of respondents may not fully capture the diversity of leadership styles across different types of SMEs. The cultural context of the Kingdom of Saudi Arabia and the absence of longitudinal data also limits the scope of the study. This research recommends developing leadership theories tailored to the cultural and organisational contexts of SMEs, particularly in the Kingdom of Saudi Arabia. It suggests focusing on inspirational leadership through training in Emotional Intelligence and communication, alongside fostering a supportive culture for change. Future research should expand the sample size, explore long-term impacts, and include comparative studies across regions to better understand the role of leadership in organisational change.