The variability of business environment has made the speed and execution force of decision-making more important than ever. Both entrepreneurs and top managers must be responsible for the success or failure of policy decisions in enterprise management. The leadership and management style of a leader influences business performance, and also dominates the highest strategic decision-making and the allocation of organizational resources. Different leadership and management styles lead to different performance results. The main purpose of this study is to investigate the differences in leadership traits and thoughts of decision-making between entrepreneurs and top managers.
Leadership traits are viewed as a kind of behavioral traits while personal traits tend to be used to explain the causes of personal behaviors. A good manager is not necessarily only characterized by masculine traits. The background, years of service, educational background, and age of managers tend to influence their leadership and attitudes of strategy selection. Among all the factors, the locus of control, gender role of management traits, and leadership traits of entrepreneurs and senior managers, as well as the differences in their choices of entering the strategic internal and external environments, are the factors to be investigated in this study.
This study selected three entrepreneurs in different industries 、two top mangers in foreign companies and one state-owned enterprise as the subjects, and conducted case study. “Entrepreneurs and top managers” was chosen as an independent variable, while the “personality trait of locus of control,” “leadership traits,” “factors influencing entering strategic internal and external environment” were chosen as dependent variables to investigate how the differences of personality traits between entrepreneurs and top managers influence their strategy selection.
The conclusions are as follows:
1.Both entrepreneurs and top managers share the traits of “personality trait of locus of control” and “the gender role of gender-based management.” However, the top managers in the state-owned enterprise tend to possess the trait of “personality trait of locus of control” and “the gender role of masculine management.”
2.Transformational leadership is viewed as a kind of behavioral trait. The “openness,” “extraversion,” and “agreeableness” of the Big Five Personality traits are important properties of transformational leadership. Therefore, it could be predicted that an individual of transformational leadership is an individual with low “neuroticism.” These four kinds of personality traits correspond to the hypothesis of traits of transformational leadership of entrepreneurs and senior managers.
3.A successful leader not only had experiences, but also patience, skills, toughness, and unique power of judgment. Entrepreneurs and senior managers no loner only put emphasis on the advantages of internal environment of an organization and they would also grasp opportunities of external environment, change strategies at the right time, and place strategic resources at the best position at the critical moment to establish the competitive advantages of enterprises.