Abstract:
This research studied the influence of leadership on performance of small business in Tanzania:
Mediating role of communication. A sample size comprised of 384 employee small business
Proportionate stratified sampling and random sampling technique was applied to sample
respondents. Bivariate correlations analysis was used to test association of the three study
variables (leadership, performance and communication) while probability estimation was
analysed using a confirmatory factor analysis. The study revealed that leadership positively
influence performance (β = 0.27, p < 0.01) as well as communication (β = 0.44, p < 0.01). The
results also showed that communication is positively influence performance (β = 0.13, p < 0.05).
On mediating effect leadership has an indirect influence on performance (β = 0.06)). The study
concluded that communication acts as a mediator between Leadership and small business
performance. The study recommends that leaders should consider effective communication as
an essential component of its administration tactics and identify communication techniques
that will enable employees interpret correctly message communicated by leaders so that
desired performance can be attained.
