To capture the essence of variation in conceiving leadership in the small enterprise the relationships between the twelve conception categories identified at the previous stage of analysis were further examined and defined. Based on this examination they were integrated into broader categories of description of leadership that provided an abstracted description of leadership in a small enterprise (cf. Uljens 1989, 41-42).
The categories of description of leadership refer to so-called upper level categories in phenomeno- graphic research (cf. Uljens 1989, 40-43). They were developed so that they conformed to the three criteria used in generating the managers' qualitatively different ways of experiencing leadership from the empirical data. They were: 1) each of the categories should stand in clear relation to the phenomenon leadership and tell something distinct about it, 2) the relationships between the catego- ries should be logical, and 3) the critical variation in conceiving leadership should be captured in as few categories as feasible (cf. Marton & Booth 1997; 107, 125-126).
When developing the upper-level categories I concentrated on the unit of analysis and the level of conceptualization that the conception categories exhibited. Those conception categories that were of the same level of analysis were integrated in the same category of description of leadership. In de- scribing leadership, those categories that were regarded as equal in terms of the level of conceptu- alization were described as being horizontal. A change in the level of conceptualization produced a vertical category (figure 5, p. 162).
In order to help the reader of this report more easily follow my rationale in developing the upper level categories a summary of the managers' leadership conception categories is replicated in table 10.
Table 10. A summary of the managers' leadership conception categories Leadership as
1. a trait or traits of a good leader
2. good leader behaviours towards subordinates
3. a trust relationship between the leader and her/his subordinate(s) 4. being responsible for subordinates
5. tasks of a leader of a small enterprise
6. leading local operations, units and employees according to the local situation 7. managing human resources
8. managing organizational structure and change 9. decision-making
10. power vested in formal positions of authority 11. influence based on being regarded as an expert 12. power based on ownership
The leadership conceptions included in the first two conception categories focused on leadership at the level of an individual; they concerned leadership as a trait or the traits and behaviours of a good leader. Based on their focus on an individual leader they were grouped into one category, which contains conceptions of leadership as those characteristics, qualities and behaviours that people ex-
pect from leaders and if found, they will be categorized as 'leaders' or 'effective or good leaders' whereas others would be categorized as 'non-leaders' or 'ineffective or not so good leaders' (cf. Lord et al 1982, 104; Calder 1977). This category was called leadership as (a) trait(s) and behaviours of a good leader.
Conceiving leadership as a trait or traits of a good leader and good leader behaviours can be associ- ated with the traditional conception of 'heroic leadership'. It focuses on the qualities and behaviours of an individual leader as the determinants of organizational success, and sees the lack of them as a reason for failure. (Meindl et al 1985, 78; Calder 1977; Pfeffer 1977, 104.)
Conception category number 3 – leadership as a trust relationship between a leader and her/his subordinate(s) – formed an independent category of description of leadership. The ways in which a good leader behaves towards subordinates built up the connection between this category and the former one. The scope of this category is broader than the former's, because it does not concentrate solely on the leader as the first category but takes also the subordinates into account – good leader- ship is reciprocal. This category echoes one of the most common approaches to leadership in lead- ership research: the dyadic leader-subordinate relationship.
The above presented categories of description of leadership – leadership as a trait or traits and be- haviours of a leader, and the relationship between the leader and the subordinates – represent the most traditional subjects of objectivistic leadership research that are seen to affect both organiza- tional performance and employee satisfaction.
The responsibilities and tasks of the leader were in focus in the leadership conception categories number 4 and number 5. The contents of these conceptions defined the kind of responsibilities and tasks a good leader of a small firm was expected to execute. These two conception categories were integrated into one category called leadership as tasks and responsibilities a good leader accom- plishes. The logic between this category and the previous one is the relationship between the leader and the subordinate; good leadership is not only about satisfying the needs of the organization, but also about satisfying the needs and acknowledging the rights of the individuals who make up the organization. This category directs attention to the significance of creating order and predictability to ensure the functioning of the organization but also to provide feelings of safety to the organiza- tional members.
Conception category number 6 (leadership as managing local operations, units and employees ac- cording to the local situation) integrates the different tasks and responsibilities that leaders are ex- pected to fulfill, the relationships between different parties and the individual characteristics and behaviours of a good leader distinguished in the former categories into a view of a considerate and context sensitive leadership of a unit. Conception categories number 7 (managing human resources) and number 8 (managing organizational structure and change) view leadership at the organizational level and concentrate on the issues seen as critical for the organization: developing human resources and organizational structures, processes, activities and operations according to the requirements of the business and the environment and changes in them. These three conception categories of leader- ship formed a category of description of leadership as leading a unit/a small enterprise as a whole according to changing situations.
This category of leadership description in a small enterprise provides a broader and a more holistic view of leadership compared to the previous categories. It echoes the situational views of leadership in objectivistic leadership approaches and also the research and theorizing on strategic leadership (cf. Finkelstein & Hambrick 1996) according which leadership is contextual in the sense that it de- pends upon the intra-organizational and environmental, cultural and societal conditions. The life- cycle-view of organizations and the request for adaptation to the changes inside and outside the company were represented in this category (cf. Baliga & Hunt 1988).
Conception categories of leadership number 9 (leadership as being perceived as an expert), number 10 (leadership as decision-making), number 11 (leadership as power vested in formal positions of authority) and number 12 (leadership as ownership power) formed a category of description of leadership as power in the company. This category of leadership focuses on leadership in terms of legitimate right of those in positions of power to make decisions, and power deriving from different sources of influence that were seen as legitimate: expertise, formal positions of authority and the ownership of the organization.
This category represents a change in the level of conceptualization compared to the previous cate- gories of description of leadership. It was regarded as the highest level category of description of leadership in a small enterprise explicating the notion of power and influence that are embedded in all the other categories of description of leadership. In the context of an entrepreneurial small firm the hierarchically lower level conceptions can be interpreted to acquire their significance through the power relationships in the company.
The traits and the behaviours of the leader are important because the leaders are the most powerful persons in the company. Through their actions they shape the organizational structures and condi- tions in the company (cf. Strand 1988, 232). Power is also manifest in the relationships and interac- tion between the leader(s) and the subordinate(s): the emphasis on trust in leader-subordinate rela- tionships derives from the dependency relations between owner-managers and employees of small firms. Leadership power is at the back of the expectations that the leader will take care of the needs and rights of the subordinates and manage the company personnel, activities and operations accord- ing to the best interests of the organization and its members. Furthermore, it applies also to whether or not and how these tasks and responsibilities are taken care of. Leadership of company operations and units necessitates delegation of power to the ones who are in charge of them.
The power hold by the proprietor or owner-CEO enables her/him to make all the decisions concern- ing the personnel, structure, activities and practices and the scope of business of the company. In this way in a small owner-run business it is the use of ownership power that was the most funda- mental determinant of whether or not the requirements of good leadership were met.
In this study this category of leadership description was regarded as the most important in under- standing leadership in small enterprises and organizational life in them. The negative effects of the ill-advised use of ownership power, the centralized control and decision-making practices and the powerlessness of other organizational members have been suggested to be among the threats for the success and growth of small companies (Osborne 1991, Dyer 1991, also Scase & Goffee 1987).
The category of description of leadership as power in the small enterprise reflects the definitions of leadership as differential power relationships among members of a group. Power has been a central concept in the studies of leadership positioned under the power-influence approach to leadership in objectivistic leadership research and also in the theorizing and studies representing postmodern and critical views of leadership.
To clarify the process of generating the upper-level categories the variation in conceiving leadership among the managers and the relationships between the categories of leadership conceptions and the categories of description of leadership are presented in table 11.
Table 11. Variation in conceiving leadership among the managers and the relationships between the categories of leadership conceptions and the cate- gories of description of leadership
Categories of leadership conceptions
1 2 3 4 5 6 7 8 9 10 11 12 Total Managers M1 x x x x x x x x x x x 11 M2 x x x x x x x x x 8 M3 x x x x x x x x x x x x 12 M4 x x x x x x x x 8 M5 x x x x x x x x x x 10 M6 x x x x x x x x x x 10 M7 x x x x x x x x 8 M8 x x x x x x x 7 Total 7 8 8 5 8 4 6 5 7 6 3 8 Categories of leadership conceptions 1 2 3 4 5 6 7 8 9 10 11 12 Categories of description of leadership as
(a) trait(s) and behaviours of a good leader a trust rela- tionship be- tween a leader and her/his sub- ordinate(s)
tasks and re- sponsibilities a
good leader ac- complishes
leading a unit/ a small enterprise as a whole according to
changing situations
The categories of description of leadership represent different conceptualizations of leadership in a small enterprise. Based on their relationships explicated above, an abstracted description of leader- ship in a small enterprise was generated (figure 5).
Figure 5. The complex of categories of description of leadership in a small enterprise
The complex of categories of leadership consisting of the different conceptualizations of leadership and their relationships represent a conceptual model of leadership in a small enterprise. Despite the qualitative differences between the different categories, all of them were concerned about
leadership as something good, indispensable and provided by heroic leaders leadership as power
leadership as a means of making sense of organizational successes and failures by attribut- ing causation to leaders.
LEADING A UNIT A SMALL FIRM AS A WHOLE ACCORDING TO CHANGING SITUATIONS TASKS AND RESPONSIB. A GOOD LEADER ACCOMPLISHES A TRUST RELATIONSHIP BETWEEN A LEADER AND SUBORDINATE TRAITS AND BEHAVIOURS OF A GOOD LEADER POWER