The Relationship Between Leadership Style and Organizational Financial Performance in Corporate Environment

Abstract

Small and Medium Enterprises (SMEs) represent the backbone of most economies, yet they often face significant barriers to growth due to limited financial resources, technological constraints, and restricted access to global markets. Strategic alliances have emerged as a critical pathway for SMEs to expand market reach, build competitive advantages, and enhance long-term sustainability. By collaborating with local and international partners, SMEs gain access to new distribution channels, advanced technologies, and shared expertise, which allows them to overcome size-related disadvantages.This study critically examines the role of strategic alliances in expanding market opportunities for SMEs, emphasizing three dimensions: (1) theoretical underpinnings and rationale for alliance formation, (2) empirical evidence highlighting the effects of alliances on market reach and performance, and (3) governance, managerial, and policy implications for successful alliance management. Graphical illustrations highlight growth in market access and sales performance among SMEs engaged in alliances, while a comparative table presents sectoral variations in alliance benefits.Findings suggest that while strategic alliances significantly improve SMEs’ market reach and competitiveness, their success depends on effective governance mechanisms, trust-building, and cultural compatibility between partners. The paper concludes by recommending that SMEs adopt structured alliance strategies, supported by public policy frameworks, to maximize the benefits of collaboration.