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Introduction
Background
The concept of leadership has attracted the attention of scholars for the past several decades. According to Tevik and Lange (2020), the socio-economic and political changes that have been witnessed around the world have redefined the leadership styles that companies use. In the past, it was common for firms to use an autocratic form of governance. Employees did not have a choice but to work under stringent rules of their managers because it was not easy to find alternative employment. However, that is no longer the case in modern society. Employees can easily move from one employer to another if they feel that their effort is not valued and appreciated. The emergence of numerous firms within different industries has created more options for talented employees. Companies currently find themselves in a position where they have to redefine their leadership strategies to ensure that their workers remain satisfied.
The stiff competition that companies face forces them to constantly improve the quality of products that they offer. When a customer has an option to choose products from different companies, they are more likely to select a brand that offers them the best value (Finkelman, 2020). To manage stiff competition and create a pool of loyal customers, companies have to create a culture of quality. Employees must understand their role in ensuring that products or services that they offer are of the best quality possible. Cruickshank (2017) believes that it takes the effort of every employee in the company to ensure that the desired quality is achieved in the production process. The procurement team must ensure that they source the best materials at the right time for purposes of production. The processing team must understand the new and improved strategies that do not compromise the quality of the products. The marketing team will have to develop unique ways of engaging customers to ensure that they remain satisfied.
Quality culture in an organization is directly influenced by the leadership style that the management employs. According to Purwanto, Bernarto, Asbari, Wijayanti, and Hyun (2020), the culture that employees embrace largely depends on the culture that an organization has created. When the firm creates a culture of laziness and allows employees to do what they want while at work, then even the most industrious and skilled worker will adopt the culture. Those who are committed to making a difference in their career may even consider exiting such a firm because they understand that they cannot achieve growth in such an environment. However, when the management introduces tough rules that require a high level of performance from employees, then those who are lazy will be forced to either improve their performance or quit working for the company.
Enhancing quality culture in an organization requires a unique leadership approach. On the one hand, the management must be flexible enough to allow employees to try new strategies for doing things. It should encourage creativity and innovativeness among workers as a way of developing new and better strategies for meeting customers needs. In such an environment, the firm must accept the fact that sometimes employees can make mistakes when trying something new (Aberese-Ako, Agyepong, & Dijk, 2018). On the other hand, the management must be tough enough to ensure that unnecessary mistakes among employees are avoided. They have to understand that although the firm is accommodative and keen on rewarding creative minds, it is also strict enough to punish deliberate mistakes and laziness among workers. In this paper, the researcher seeks to investigate the impact of leadership styles in enhancing quality culture at Yemen Mobile, one of the leading telecommunication companies in Yemen.
Theoretical Framework
Leadership and quality management are two concepts that are widely researched and many theories have been developed to explain them. To create an enabling environment for employees, scholars have proposed various leadership theories and strategies that can help achieve such a goal. Anderson (2018) argues that a firm should embrace a leadership style that not only helps it in achieving specific goals but also makes it possible for employees to enjoy their workplace environment. Leadership theories such as coaching, theory x and y, laissez-faire, and transformational leadership will be discussed in this paper. The researcher will explain how each of them affects quality culture in a firm. The study will also explain when a firm should embrace each of these governance strategies to ensure that they do not compromise the quality of their products.
Quality management is a field that has been widely researched as firms struggle to ensure that they meet the expectations of their clients in the best way possible. As such, various quality management theories and tools have been developed to help companies to achieve such goals. In this study, some of these theories will be discussed to help explain how this company can maintain high-quality standards when serving its customers. Some of the theories that will be discussed are total quality management and Crosbys zero defects. They have widely been used to ensure that any form of defect in products is eliminated as early as possible in the production process.
Statement of the Problem
The telecommunication industry in Yemen has been growing rapidly, just as is the case in many countries around the world. Local and foreign firms have noticed the huge potential that the industry has and are keen on tapping into it. Yemen Mobile is one of the dominant firms in this industry in terms of market capitation and the number of customers it serves. However, it is not the only firm that offers a wide range of telecommunication services in the country. The market has other larger firms struggling to attract and retain the same customers. Some of the dominant players in this country include Spacetel Yemen, Sabafon, and Y-Telecom. These firms are large enough and with the financial capacity to create unique products that meet customers needs in the best way possible.
Yemen Mobile finds itself in a market where it has to redefine its strategies to constantly improve its products. Customers can easily switch from their current provider to another if they feel that the quality that is offered is below their expectations (Hai & Van, 2021). It means that the firm has to create a quality culture in its operations. The management should ensure that every employee understands the role that they have to play in ensuring that the firm meets customers needs in the best ways possible. Yemen Mobiles effort to expand its market share while at the same time protecting the current customer base from rivals can only achieve positive results if there is a commitment to quality by all the relevant stakeholders. Creating a culture of quality requires a unique governance approach, as Anderson (2018) observes. The management has to know how to influence employees to maintain high-quality standards in every task that they do within the firm.
Purpose of the Study
The primary goal of this study is to investigate the impact of leadership styles on enhancing a quality culture, focusing on Yemen Mobile as a company of reference. Competition is becoming increasingly stiff in the countrys telecommunication industry. Both local and foreign firms are making an entry into the industry because of its perceived attractiveness. As the number of firms continues to increase, firms can choose brands that they believe offer the best value (Ahmad, Salleh, Omar, Bakar, & Shaarani, 2018). They become demanding because they have the power to demand better services from their providers. It is upon the management to find ways of meeting such demands to protect their market share.
Healthy competition is always essential in facilitating the growth of an industry. It creates an environment where every company is struggling to find the best ways of meeting customers needs. Such efforts always inculcate creativity and innovation in the production process and products that a firm has to offer. In this paper, the researcher seeks to discuss ways in which a firm can use various leadership strategies to achieve such goals. Some governance approaches are often associated with quality culture. The study will identify these specific leadership strategies and explain how they can help a company to inculcate a culture of quality. Through this research, the management of Yemen Mobile will understand how it can overcome numerous challenges in the local market to achieve its mission and vision.
Research Questions
The impact that leadership styles have in enhancing quality culture is a specific field in a wide academic body of leadership. In this study, the researcher was interested in determining how specific styles of governance may affect quality culture within a firm. To achieve the above aim, it was necessary to collect data from various sources. The researcher had to develop specific questions that would facilitate the collection of the data needed. The following are the questions that were used to gather data from both primary and secondary sources:
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What is the impact of leadership styles on enhancing quality culture within a company?
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Which styles of leadership are often associated with quality culture within a company?
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How can a firm redefine its leadership styles to enhance a quality culture?
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What are some of the challenges that affect the ability of a firm to enhance a quality culture?
Significance of the Study
Research takes time and sometimes financial resources to complete successfully. As such, it is always important to understand its significance and the specific benefits that it offers to the company under investigation. This study is important because it addresses one of the major concerns that companies in the Yemeni telecommunication sector face. As competition becomes stiff, customers tend to become more demanding because they have several choices to make every time they need to purchase an item (Alharbi, 2017). There is the threat that larger foreign firms from North America, Europe, or the Far East may consider entering the market when they identify a gap. Such gaps are only created when local firms fail to meet the expectations of customers in the best way possible.
This study is specifically important for Yemen Mobile because it also discusses its strengths and weaknesses in the market. It can use the information to determine specific areas that need to be addressed to ensure that the company achieves the desired growth. Information provided in this paper is beneficial to all telecommunication companies in the country because they face the same challenge in the market. The study is also important to future scholars who may be interested in expanding their knowledge in this field. The methods used to collect and process data in the study can also offer guidance to such scholars in their future investigations.
Definitions
It is necessary to define specific terms used in this study to understand their specific meaning in the context of this paper. The definition helps in avoiding ambiguity and misinterpretation of these terms.
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Leadership The act of governing or guiding people within a given organization or socio-political setting (Alharbi, 2017).
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Governance A system through which an entity is controlled and operated by those who are assigned leadership roles (Sung, Joo, Rahim, & Sondoh, 2019).
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MENA The Middle East and North Africa
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Quality Standards or distinct attributes or traits of an individual or organization, which makes it desirable (Bendermacher, Egbrink, Wolfhagen, Dolmans, 2017).
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Culture Customs, ideas, and social behavior of a given group of people or society as defined by factors such as religion or traditional beliefs (Alharbi, 2017).
Literature Review
Inculcating a culture of quality is a process that requires the commitment of the management unit, the employees, and all the other relevant stakeholders. The effect of leadership on quality management is an area that has been attracting the attention of scholars for several decades. Various theories have been developed to explain the concepts of quality and leadership. In this chapter, the researcher will review what other scholars have found out in this field. Banjarnahor, Hutabarat, Sibuea, and Situmorang (2018) observe that reviewing the literature makes it possible to understand what other scholars have found out in that field of knowledge. It allows a researcher to identify existing knowledge gaps and to avoid duplicating information that is already in existence.
This chapter discusses the telecommunication market in the country, before focusing on understanding Yemen Mobile based on data available from secondary sources. It then discusses the concepts of quality culture and leadership in the context of the telecommunication industry. The chapter then discusses various theories of leadership and quality management relevant to the focus of the study. It finally discusses knowledge gaps that have to be addressed through the collection and analysis of primary data.
Understanding the Yemen Telecommunication Market and Yemen Mobile
The Yemeni market is unique because of the socio-political and economic forces in the country. As such, it is necessary to start by investigating the local market to understand these unique forces. It will help the management of Yemen Mobile to have a clear understanding of the forces that he has to overcome. In this section, the researcher uses PESTEL Model to assess the macro-environmental forces in the country, Porters five forces to assess the industry-specific forces, and SWOT analysis to understand the internal factors that directly affect this company.
PESTEL Model
The external environment in which a firm operates defines its ability to achieve success. When using this model to assess the external environment, one of the factors that have to be considered is the political environment. According to K1z1lo lu (2021), a firm needs peace and political stability to achieve success in the market. In Yemen, there has been prolonged civil unrest that is part of the Arab Spring witnessed in the Middle East and North Africa regions. Over 300,000 people have lost their lives and it is estimated that over three million people were displaced by the war (Lackner, 2019). There are some parts of the country where the war is continuing, making it difficult to conduct business. The problem with political instability is that it creates a sense of lawlessness and the purchasing power of customers is significantly dropped. It may take some time before normalcy can be restored in this country. As long as this problem still exists, the business for this company will be negatively affected.
The economic environment is another major external factor that defines a firms ability to achieve success in the market. Abujudeh (2020) explains that when the economy is growing, disposable income also increases. Customers become more willing to spend on non-basic needs such as regular phone calls and data services. In such a case, firms in this country experience a boom in their operations as the demand for their products grows. In Yemen, the prolonged civil war that has lasted over seven years has significantly affected the countrys economy. Many companies have not only closed their operations but have also been destroyed completely because of the war (Khan, Ismail, Hussain, & Alghazali, 2020). Many people have lost their employments and over three million people have fled their homes to seek refuge elsewhere. It means that those who were actively involved in the development of the economy now have to rely on donations from local and foreign agencies.
The social environment is a major factor that has to be considered by the management of this firm when defining its internal policies. Yemen is an Arab country with 99% of the population being Muslims (Rahbi, Khalid, Khan, 2017). It means that the social environment is largely defined by Islamic principles and beliefs. The fact that the country is less diversified in terms of race and religion means that issues such as culture clash are not a major concern for the local companies. In most cases, the employees and customers share the same culture. Cases where workers make critical mistakes because they do not understand the cultural values of employees are rare. The quality of products that the company offers has to be defined based on Islamic principles. Bondarchuk (2021) observes that before the war, there was an increasing influx of foreigners, especially from Africa, India, China, and other Arab nations into the country. As such, the management of this firm should not ignore diversity as a factor that will define its success in the market.
Technology is another factor that defines the operational activities of a firm in the market. Emerging technologies can be disruptive, especially when it involves introducing major changes in the products or product delivery. The telecommunication sector has gone through major changes over the past two decades (Andrew, Latiff, Burhan, 2019). There has been a rapid development from the third to the current fifth-generation mobile network. Other new technologies are also emerging in terms of additional products and product delivery methods. Although these changes offer new opportunities to the players, it also creates a new challenge that the firms have to address. As Suong, Thanh, and Dao (2019) observe, a firm has to adopt these changes within the shortest period possible to benefit from them. Sometimes it requires a heavy investment in training and purchasing new equipment. Most of the technological changes in the telecommunication industry in the country are influenced by foreign firms. It means that Yemen Mobile needs to be an early adopter of the new technologies.
Ecology is becoming a major concern in the world today because of global warming and climate change. Governments around the world are currently paying more attention to the effects that a firms operations have on the environment. In Europe and North America, firms have a specific level of emission of greenhouse gases beyond which they are not expected to go (Abujudeh, 2020). In Yemen, such laws are yet to be enacted, but they may emerge in a near future. Yemen Mobiles operations may not be polluting the environment, but there is a new concern with the emergence of the 5th generation mobile network. There is a concern that airplane manufacturers, especially Boeing and Airbus, have raised about the level of interference that the new generation of the network has on airplane signals and the ability to fly normally. Players in this industry must find a solution to this problem. Yemen Mobile may need to create an image of a champion against environmental pollution by funding projects meant to protect the environment.
The last factor in this model, which is equally important, is the legal environment. A firm needs a sound legal environment that can protect it, its customers, suppliers, and other relevant stakeholders to thrive in the market (Kalkan, Aksal, Gazi1, Atasoy, & Da li, 2020). The legal environment is directly dependent on the political stability of a country. The civil unrest in some parts of the country has created lawlessness, making it difficult for a firm to operate normally. Before the Arab Spring, some clear laws and regulations defined the operations of companies in the country. These laws still exist in parts of the country where normalcy has returned. The management of this firm should ensure that it understands and keenly observe laws regarding its operations. It will help it to avoid unnecessary litigations that may not only affect its finances but also ruin its image in the market.
Porters Five Forces
The management of this company needs to understand specific forces within the industry that may directly affect its operations as it seeks to promote a quality culture in its operations. One of the main concerns is the rivalry within the industry in which this firm operates (Jamalia, Bhuttoa, Khaskhelya, & Sethar, 2021). When competition is stiff, as it is in the telecommunication industry in this country, then a firm must understand that its actions will directly trigger counteractions from its rivals. Strategies that it uses should not involve price wars because the outcome may be detrimental to all the players involved.
The threat of new entrants is another major concern that the company must take into consideration. If it is easy for new firms to enter the market, then the competitive rivalry may get stiffer (Bendermacher, Egbrink, Wolfhagen, Leppink, & Dolmans, 2019). Currently, the threat of new entrants is significantly low because of the political instability in the country that has left much industry less desirable to global investors. However, the trend can change when normalcy is finally restored in the country. Delivering quality products is one of the best ways of managing this threat.
There is a concern about the bargaining power of suppliers in the market. When a firm is dealing with only a few but powerful suppliers, it may face a major challenge. The suppliers may dictate terms that are only favorable to them (Abujudeh, 2020). This is the challenge that Yemen Mobile and other firms in this country face. The political instability in the country has forced many suppliers out of the market. It means that the few suppliers can easily dictate terms of trade because of the limited choices that their clients have.
The bargaining power of buyers is another issue of concern that the management will need to address. When buyers are powerful, especially when dealing with organizational buyers, a firm may be powerless (Veyera, 2020). It may be forced to give in to the demands of customers of offering high-quality products in high quantities at the best price possible. In the telecommunication industry in Yemen, this is not a major concern at the moment. Customers have to use the services of the few telecommunication companies, which are still operational despite the challenges that exist.
The last factor that a firm has to consider is the threat of substitute products. When substitute products effectively meet the needs of customers, then they will pose almost a similar competitive threat as similar products from other brands (Baporikar & Sony, 2020). At this point, Yemen Mobile does not have to worry about this threat because at the moment, there are no perfect substitute products in this industry. However, emerging technological trends can create new perfect substitutes. The company should be ready to respond accordingly in case such products emerge in the market. Figure 2.1 below identified the five forces in Porters model that this firm should be keen to manage.
SWOT Analysis
Yemen Mobile is one of the largest telecommunication companies in the country. To understand how leadership styles can impact its quality culture, it is necessary to assess the firm and understand its strengths and weaknesses. One of the main strengths of this firm is its experience in the telecommunication industry. This firm has been operating in this industry since 2004, making it one of the oldest firms in the local market (Lackner, 2019). It means that it understands the unique challenges in this industry better than foreign firms that recently entered the market. Its large asset base is another benefit that can enable it to manage challenges in the market.
The firm can afford to conduct research and expand its operation beyond the borders of the country because of its financial capacity. The firm has been working closely with large global corporations in the telecommunication industry. Some of its global partners include the Giant Huawei and ZTE from China and LG from South Korea. Working with these firms enables it to understand and embrace emerging trends and practices in the global market with ease. It is also important to note that Yemen Mobile has the backing of the government, unlike other foreign private firms (Demirtas & Karaca, 2020). These factors make it possible for the company to overcome the numerous challenges that exist in the market.
It is prudent to acknowledge the fact that the firm also has weaknesses that may affect its competitiveness in this industry. One of the issues that were identified when analyzing this company is its overreliance on foreign firms to support its operations. It depends on the technology of foreign firms such as Huawei, ZTE, and LG to support its operations. Such reliance on foreign firms minimizes the creativity and innovativeness of the firm. It means that the growth of the firm and the ability to adopt emerging technologies directly depends on the innovativeness of these partners (Angle, 2019). A study of the company also shows that it has been slow in implementing change. It has been waiting for these partners to introduce new technologies instead of being a robust and proactive firm that is capable of initiating change. These weaknesses will need to be eliminated to enhance the ability of the firm to achieve success in this competitive industry.
The market in which this firm operates presents opportunities for growth that the company should capitalize on to enhance its competitiveness. The number of people who are using telecommunication products has been growing steadily in the country over the past decade. Lackner (2019) notes that the number of phone users in Yemen in the country has significantly increased. It means that the market share that is available in the country is steadily increasing. The ease of expanding operations to new markets is another benefit. The company can either introduce new products in its current market or consider exploring new markets with its existing products. The goal is to expand sales volume as a way of increasing its revenues in the market. The economy of the country is also slowly stabilizing despite the recent political instability that affected many countries in the Middle East and North Africa (MENA) region.
The company should be ready to deal with threats that may affect its ability to achieve the desired growth in the local market. One of the main threats that Yemen Mobile should be ready to deal with is stiff competition. As mentioned above, many other major companies are operating in the local telecommunication industry. They are using various strategies to achieve a competitive edge over their rivals. Yemen Mobile has to develop unique ways of managing such stiff competition in the industry.
Emerging trends that change customers tastes and preferences are another concern for this firm. Some of these changes are disruptive and they force a firm to repackage its products to meet the new needs. The speed with which a firm can adjust to these changes defines the level of competitiveness. The company has to spend a significant amount of its resources to monitor these changes and respond to them accordingly. The political instability, which Abujudeh (2020) considers to be an important external factor for the success of an organization, is another major concern. As explained in the section above, the country has faced major civil unrest for almost ten years.
Table 1: SWOT Analysis
Theoretical Framework
Theories have been developed to explain the concept of leadership and its impact on the normal operations of a firm. The success of a firm and its ability to achieve success in the market depends on the leadership strategies that it uses. A good leader should understand the specific style of governance which is appropriate when dealing with various situations in a firm. It is necessary to review some of the leadership theories that are most relevant to this topic.
McGregors Theory X and Y
McGregors theory X and Y have widely been applied in a different context when governing employees. Theory X holds the belief that employees are generally lazy and less likely to work effectively without proper supervision (Khajeh, 2018). As such, it recommends constant supervision of workers and the use of punitive strategies if they fail to achieve the set targets. When using this strategy to promote quality culture, a manager will need to use threat and punishment to ensure that employees embrace the new culture. On the other hand, theory Y holds the view that workers can be self-motivated and work effectively without any constant supervision.
When using this leadership strategy to promote a quality culture, the management only needs to inform employees what is expected of them. They are then expected to follow the set instructions and standards without any form of coercion. Although theory Y may be considered more desirable of the two, there are cases when a manager has to embrace theory X to ensure that a new culture is introduced (Rehman, Bhatti, Chaudhry, 2019). This is specifically so when a section of the workers resist change.
Transformational Leadership Theory
Transformational leadership is one of the governance styles that have gained massive popularity over the recent past. This form of leadership focuses on identifying the need to and creating change among workers. Such a leader is interested in challenging followers to go beyond their current limits and achieve greatness in their assignments (Hafeez, Khan, Ahmad, 2021). It believes in continuous improvement as the way through which a firm can manage to overcome the numerous challenges that it may face in its operations. When using this theory to promote a culture of quality, a leader only needs to make employees understand and appreciate the new vision. The leader will explain reasons why it is necessary to move from the current system to a new one. Instead of using coercion, a leader uses inspiration to achieve such goals. Employees will be motivated to change
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