Impact of strategic leadership on organizational performance, strategic orientation and operational strategy

Abstract

This paper focuses on the impact of strategic leadership on operational strategy and organizational performance of the automobile industry in Malaysia with a particular focus on Proton (Perusahaan Otomobil Malaysia). Since the mid-1980s a growing body of research on leadership has focused on strategic leadership, in contrast to managerial and visionary leadership. It has focused on how leaders make decisions in the short term that guarantees long-term viability of the organization. Senior leaders also have the ability to align human resources in an effective way directly to the business strategy. This article focuses on how national car manufacturer, Proton, exercises strategic leadership to influence its operational strategy and performance. It examines both dependent and independent variables that influence on strategic leadership with implications for future research.