Leaders’ mindset within small family-owned businesses in a small island state: A grounded theory approach

Abstract

The aim of this grounded theory study is to identify the obstacles that leaders face due to differing mindsets among leaders within small family-owned businesses. It also examines the impact of these mindsets on small businesses in a small island state. The outcome of this study will assist both types of leaders who purposively were selected for this study; the founders who value stability and adhere to deep rooted organizational practices and the current /modern leaders who embrace innovation and promote forward thinking initiatives. Grounded theory was adopted for this qualitative study. The researcher conducted twelve open-ended interviews with leaders of small businesses in the small island state of Malta. MAXQDA (VERBI software) was used for data analysis. A four-stage coding process, ongoing comparison, reflexivity, memos, and Corbin and Strauss's conditional matrix were utilized to determine essential categories, contextual conditions, actions, responses and results. Results indicate that for small family enterprises to succeed in a fast-changing market, conventional and creative leaders need to work together, blending fresh concepts with adherence to core values. Their collaboration is vital for stability, development, and enduring achievement. The research highlights the significance of leadership in influencing organizational results and recommends embracing a hybrid leadership approach. An early conceptual model was developed to support both leaders in growing their business, blending traditional values with modern innovation to offer recognition and stability while promoting progress.