Nigerian Journal of Banking and Financial Issues (NJBFI)

Effect of leadership styles and organizational performance: Evidence from Nigeria Private Universities

Abstract

The paper examined the signaling effect of leadership styles and organization performance, evidence from private universities in South-West of Nigeria. Empirically, arguments ensued as to which leadership styles is appropriate to be adopted by organization to achieve performance. Seven universities were selected from the thirty-six private universities in Southwest using purposive sampling technique. Structured research questionnaire is used to gather primary data which was analysed using multiple regression analysis to determine the relationship between leadership styles and private universities performance in Nigeria. The results revealed that leadership styles have positive relationship with private universities performance at significance levels of 2.982 .871, .2.912. and 6.323% higher than the p-value at 5%. Intellectual leadership has a positive significant relation with university performance at t=2.982 greater than 5% p-value level while intellectual and individual leadership styles were the joint predictors of private university performance (F (3,26) = 87.010; R2 = .968; P <.01. The joint predictor variables were explained by 94 % change in private university performance while the remaining was due to other factors.  Intellectual leader β.253, t= 2.981, inspirational leader β .582, t = 2.912 and idealized leader β .013, t= 6.323, P< .05 are dependently significant predictors of university performance, indicating positive significance relationship with students and university performance. Intellectual, inspirational, except idealized leadership impacted positively on private university performance, therefore, we recommend that private university should adopt leadership styles that promotes institutional performance relative to environmental structure   that are conducive to enhance appropriate leadership style and university performance.