The strategic impact of leadership on the performance and success of enterprises

Abstract

The aim of this study is to examine the impact of leadership on organisational performance in construction enterprises in Kosovo, to identify the most effective dimensions of leadership and to assess their impact on employees’ motivation, engagement and organisational success. The descriptive analysis findings indicate that employee motivation and engagement (M = 4.05) and leader communication (M = 4.03) were perceived as the strongest dimensions of leadership. Methodologically, this study used both primary and secondary data sources. In terms of multiple linear regression analyses, a significant positive relationship was found between leadership and organisational performance (R = 0.720, R² = 0.519, Adjusted R² = 0.483, F = 14.544, p < 0.001). Between 2019 and 2023, the number of construction enterprises was highest in 2023 and lowest in 2020 (Kosovo Agency of Statistics, n.d.). These results provide empirical support for data-driven leadership practices aimed at improving organisational outcomes in Kosovo’s construction sector. The study recommends that effective leadership, clear communication and participatory practices are critical factors in enhancing performance and success in construction enterprises.