LEADERSHIP STYLES AND EFFECTIVENESS: A STUDY OF SMALL FIRMS IN CHILE

The purpose of this work is to analyze the relationship between leadership styles and effectiveness in small firms. The work considers a sample of 126 top and medium level managers based in small firms in the north of Chile. The results obtained show that the supportive leadership style is prominent. It was also found that the participative leadership style is present, but to a lesser extent, and that the instrumental leadership style is infrequent. Supportive and participative leadership styles have a positive influence on effectiveness in small organizations. Instrumental leadership has a negative influence on effectiveness in small organizations.