THE LEADERSHIP SKILLS AND STYLES APPLIED BY

MICROENTERPRISES IN DAPITAN AND DIPOLOG CITY

AMIDST COVID-19 : A DESCRIPTIVE INQUIRY

JHULYANE KATE E. CABILIN

CHRISTINE I. MACASAYSAY
ANGEL MAE A. HAMPAC
BERYL S. YEBES
 Chapter 1

THE PROBLEM AND ITS SCOPE

Introduction

Business leadership has long been a factor in contributing to the success of

numerous business institutions. With the continual study of business management

throughout the years, various leadership styles and skills have been discovered and

developed to aid managers and owners in maintaining the organizational structure of a

business towards its goal to a more efficient and effective quality control and determining

longevity. Hence, the application of leadership has undoubtedly been proven as one of

the most essential aspects in the performance of a business, more so in attaining

sustainability. Every businessman desires to progress and broaden the scale of their

business.

Moreover, businesses as the foundation of the economic welfare of a society, allows the

exchange of goods and services to meet the needs and wants of individuals in the

community. The essential role of businesses is visibly seen in our everyday lives as

people interact in the environment. Due to this, the emergence of many kinds of

businesses throughout the years have been continually increasing ranging from small-

scaled businesses to internationally- recognized corporations.

With the disruption of the business community due to the Covid-19 crisis, many

microenterprises incurred losses and ultimately led to bankruptcy. Yet, amidst these

trying times there have been several microenterprises that have withstood the trials of this

unexpected crisis. One factor that we have observed to be of much contribution to this

business continuity is leadership. This study aims to investigate the leadership

management
skills of managers and business owners of microenterprises in leading businesses to

continuity in the midst of the Covid-19 pandemic.

Theoretical/Conceptual Framework

This study is anchored on the Contingency Theory by Fiedler (1964) cited by

Popp & Hadwich (2018) which states that an effective leader must adopt a leadership

style that must fit the situation. Indicating that the best course of action of a leader is

dependent on the internal and external situation. This theory is a fundamental

management theory in determing leadership styles. In this study, the focus is on the

coping of the business leaders during the external situation which affected all the

microenterprises in Dapitan City, the Covid-19 crisis.

In the theoretical basis for leadership styles, the theory of Kurt Lewin (1939) cited

by Inand et al. (2020) on the three leadership styles namely, authortiarian, democratic

and laissez-faire which have been recognized in management as the three major

leadership styles for its early influence in the study of leadership. In addition, the notable

theory of Burns (1978) on transformational and transactional leadership styles are also

utilized in this paper. As this paved the way for the creation of the multifactor leadership

questionnaire (MLQ) by Bass and Aviolo (2004) which is a widely used research

questionnatire in the field of business leadership research nowadays.

The theoretical basis for leadership skills is the Three-Skill Approach of Robert

Katz that was mentioned in his book published in Harvard Business Review in 1974

entitled “Skills of an Effective Administrator”. This approach suggests that effective

leadership is reliant on the three basic developable skills – teachnical, human, and
conceptual. These skills have been used throughout decades as the three universal skills

on leadership and has been continually developed by various researchers into arrays of

more specific leadership qualities.

As defined by Katz, “Technical skill is knowledge about and proficiency in a

specific type of work or activity. It includes competencies in a specialized area, analytical

ability, and the ability to use appropriate tools and techniques”. Most of the vocational

and on-the-job training programs are largely concerned with developing this specialized

technical skill. Moreover, human or social skill is the manager’s ability to work

effectively as a group member and to build cooperative effort in the group. While

technical skill is primarily concerned with working with objects (such as processes and

physical objects), human skill is concerned with working with people. Lastly, conceptual

skill involves the ability to see the enterprise as a whole; it includes recognizing how the

various functions of the organization depend on one another, and how changes in any one

part affect all the others.

The term leadership management is derived from Kumar & Shilpa (2013) who

revealed that leadership and management are interrelated. To further expound, leadership

is the capacity to influence a group towards the realization of a set goal. On the other

hand, management includes focus on planning, organizing, staffing, directing and

controlling. Leadership management revolves in enhancing the managers and employees

ability, as well as creating change in the environment which it operates. It is also seen as

a core element in sustainable deveopment which is carried out through applying

leadership styles and skills cited in the study of Javed et al. ( 2020).
 Business sustainability refers to the management and coordination of social,

environmental and financial demands that ensures continuous life of business (Ulbinaitė

& Raštutytė, 2021). In developing sustainability, it is necessary for the business itself to

be in harmonized with each of the economic dimension, social dimension and

environmental dimension. This study’s definition of sustainability by means of the

economic dimension is its stability in terms of business longevity which is three to four

years. While the social dimension is more focused on the internal social responsibility of

implementing leadership skills and styles. And the third dimension is environmental

dimension which in this paper, refers to the external situation faced by the

microenterprises which is the Covid-19 crisis.

The schema of the study can be gleaned in Figure 1. The circular shape placed in

the middle represents the Microenterprises which are considered as the target subject of

the study. The leadership styles and leadership skills are seen in both sides of the circle

signifying the two major factors emphasized in the study. Both leadership styles and

leadership skills were tested during the Covid-19 crisis which was the variable that most

affected the business, the crisis would then by the cause businesses to reach for stable

performance that allows them to attain business sustainability.

Figure 1 Schema of the study

COVID-19

Statement of the Problem

Leadership Skills
COVID-19
BUSINESS
OWNERS/
MANAGERS
The study aimed to describe the leadership management styles and skills of

Dapitan and Dipolog City managers or business owners of microenterprises in leading

businesses to contnuity in the midst of the unexpected crisis, the Covid-19 pandemic.

Specifically, it sought to answer the following:

I. Application of leadership skills.

i. What leadership skill is mostly used by the business owners or

managers of microenterprises?

ii. What leadership skill is used least by the business owners or

managers of microenterprises?

II. Application of leadership styles.

 i. What is the most prevalent leadership style implemented by

these business owners or managers to maintain the continuity of

the business even during difficult times?

ii. What is the least applied leadership style by the business

owners/managers of microenterprises?

III. What other leadership skills and styles dominantly influenced business

owners or managers leadership management during Covid-19

pandemic?

IV. What is the suitable match of leadership skills and leadership styles for

business owners/managers of microenterprises to maintain sustainability

amidst Covid-19?

Significance of the Study

The findings of the study would benefit the following:

Business owner’s and managers. The direct recipients of the output of this

research are the business owners and managers in Dapitan City. The improvement of

management skills and styles would be a great help and enable them to enhance their

capabilies in dealing and leading their business amidst crisis.

Novice entrepreneurs. The results of this study would be very beneficial to the

novice entrepreneurs who wish to start their business venture so that they may able to

formulate ideas, widen their knowledge and increase their survival rate in managing their

business if uncertain events occur .

Human resource management.The results obtained from the study would help

and encourage the human resource management in providing trainings and teambuilding
to recruits in shaping their qualities in maximizing the performance of employees. This

would contribute greatly in attaining sustainability of the business during challenging

times.

Aspiring business students. The results obtained from the study would enable

students to broaden their knowledge and to assess the industry that will be entered into.

Furthermore, it will serve as a guide to help them possess the skills and adopt styles that

is imperative in the business operations.

Researchers. The outcome of the study would be beneficial to both present

researcher and the future researchers that would investigate studies similar to this

research. This study may be one of the basis that a new theory in learning would be

established.

Scope and Delimitation of the Study

The study determined the leadership management skills and styles of business

owners and managers in leading businesses to continuity in the midst of the Covid-19

pandemic. The business owners and managers of Dapitan City whose businesses have

been established before the start of the pandemic and has continued to operate during the

new normal, estimated to have operated for at least three to four years during the conduct

of this research were taken as participants. Data were taken from responses of business

owners and managers to the data gathering conducted which included interviews and

survey.

The study determined the skills and styles that influence the leadership

management of microenterprise owners and managers. Factors that siginificantly affect

business success and sustainability were hence recognized.

Operational Definition of Terms

To better understand the contents of the study, the researchers operationally

defined the following terms in accordance to how it is used in the research:

Authoritative. A style of leadership wherein the manager or business owner

desires to control all aspects of the team’s decisions and actions.

Business leadership. In this research this is defined as how individuals strategize,

make decisions and guide a group of individuals directing them towards business goals.

Conceptual Skills. Involves the ability to holistically see the enterprise and

recognize the way the various functions of the business depend on one another, and the

changes each part affect the others.

Democratic. A leadership style wherein the leader is likely to collaborate with

lower ranks of management and provide a range of direction and support depending on

the employees level of experience, knowledge, and needs.

Human Skills. The manager or owner’s ability to work effectively as a member

of the group and to build cooperative effort within the group he/she leads.

Laissez-faire. A leadership style that allows employees to operate freely and

independently with little oversight or guidance from the leader.

Leadership Management. Revolves in enhancing the managers and employees

ability, as well as creating change in the environment which it operates. It is also seen as

a core element in sustainable development which is carried out through applying

leadership styles and skills.

Microenterprise. In this study, this is defined as a business that employs less

than 10 workers and generates income of Php1,000,000 below annually.

 Novice entrepreneurs. In this study, this are individuals who are beginners and

as well inexperience in terms of managing a business.

Skills. In this study, this is classified as one of the focus of the study that

influenced leadership in business survival. This is one of the themes of the research

which can be define as manager’s sum up traits and characteristics.

Styles.In this study, this is classified as one of the reasons that influence the

leadership in business duration. This is one of the themes of the research which can be

define as plan and action designed to achieve business goals.

Sustainability.In this study, this describes businesses that have been established

before the start of the pandemic and has continued to operate during the new normal.

Specifically, those businesses operated for at least three to four years.

Technical Skills. Involves specialized knowledge, analytical abilities within that

specialty, and facility in the use of the tools and techniques of the specific discipline.

Transformational. A leadership style in which leaders and followers help each

other to advance to a higher level of morale and motivation.

 Chapter 2

Review of the Related Literature

Leadership Management and Microenterprises

The five functions of management planning, organizing, staffing, directing and

controlling (Koontz & O’Donnell, 1964; Flak, 2020) are among the most accepted studies

in management. As years have passed, these five functions have been proven as indeed

vital in influencing business organizations to effectively and efficiently fulfill their roles

in society and attain profitability. This study focuses on the third function of

management, particularly its essential element which is leadership.

Furthermore, the study of Muzaffar Asad (2017) states that there is a difference

in certain performance indicators of microenterprise who owners have been giving

training against those whose owners have never been given any kind of training. The

findings revealed that all the performance indicators including sales increase, income

increase, assets increase, and employment increase and meeting household expenses have

shown significant difference among the groups (Muzaffar Asad 2017). The study shows

that developing microenterprises can contribute to the business success and help the

economy.

According to the study of Davidsson et al. (2010; Zupic & Giudici,2018) the

growth of large companies are not adapted to explain the phenomenon in small

companies, but growth is important for the survival of small business . Growth is an

important phenomenon in small enterprises. In fact, their survival essentially depends on

their power to participate in the market with other big companies. But mostly

microenterprises only grow the business when something in their lives changes and they

need to generate longer income.

 Small and microenterprises are also key contributors to the gross domestic

product (GDP) as implied by Prassanna (2017). This contribution to the economic growth

leads to favourable policy environment for microenterprises in the Philippines to increase

its productivity. In support of microenterprises Republic Act 9501 known as the ‘Magna

Carta for Micro Small and Medium Enterprises (MSMEs) was presented in 1991 and

approved in 2008. Acknowledging the role of MSMEs in providing self-sufficiency and

economic growth in the industry of the country. As time passed, numerous changes have

been implemented to further widen the support for the development of SMEs in the

Philippines.

The Department of Trade and Industry (DTI) actively coordinates with the

government for the development of MSMEs. The department supports the business needs

of MSMEs by providing training, business counselors, finance, marketing and technology

through the offices in different localities in the Philippines. Programs are also

implemented such as Small Enterprise Technology Upgrading Program (SETUP) to

support entrepreneurs in succeeding in their microenterprise. Latest knowledge are also

offered by research institutions to help microenterprise owners generate and innovate

ideas for product development (Milagrosa, 2014; Angeles et al.,2019).

These studies are relevant to the research study as they show the importance of

providing more information concerning microenterprises not just in theory but in

practicality. Comparing the performance of microenterprises will show data that will be a

great contribution in evaluating the needed development for these microenterprises.

Leadership Skills

In these present times, business owners and managers are being tested by massive

challenges increasing the competitive advantage and changing environment. As a result,

business owners and managers needs to acquire and possess certain skills which pertains

to abilities that can be developed, honed and learned (Kairys, 2018).

Expanded in the study of Griffith (2019), firms consider leadership development

mainly focused on skills for leadership roles, succession of planning and implementing a

long-term plans that address changes.

This study focuses on leadership skills which are viewed as one of the most

important factor that lead businesses towards the realization of their goals and

sustainability. However, there are also businesses who suffered loss and failed to

continue into existence especially in times of crisis due to its inability to properly adopt to

changes and make use of this skills as an advantage. Developing and enhancing the basic

three leadership skills which includes technical, conceptual, and human skills are

essential to be effective that enables managers and owners to use their knowledge and

competencies to accomplish set goals and secure competitive edge in uncertainty (Jaqua

E., & Jagua T., 2021).

Technical skills as defined by Lorica & Valenzuela (2021), are skills which

incorporated the use of technology that must be learned and attained by leaders and as

one of the leadership skills that managers need to equipped. Technology skills includes

the use of word processing and mail transmission to video editing and using

programming to decode and understand data.

 Elaborated and believed by (Indriastuti & Fuad, 2020), by using technology

especially in uncertain situation such as crisis, knowledge about technical skills have a

significant contribution in maintaining business sustainability. Furthermore this are skills

that are not possessed immediately but it is derived from a series of experience. Which

are extracted from the extrinsic factors in the manager and owners physical environment

and as well acquired by them through the learning process in their study, attended

seminars and workshops.

Alongside with that, a business owner or manager that possess this skill is able to

formulate a well-define solution and decision for environmental change and sustainability

as they have obtain sufficient knowledge, background and tools in accordance to their

expertise. (Mohamed et Al., 2022).

Moreover, it encompasses other skills as this skill is necessary for all types of

managerial and business position. Although (Lorica & Valenzuela, 2021) opined that the

higher the position of a person, the less technical skills and more conceptual skills are

required while people in lower position need to overcome the used of technology and less

for conceptual skills. As also supported by (Jaqua E. & Jaqua T., 2021) which states that

technical skills help one acquire proficiency and specialized knowledge in a precise type

of work in a day-to day setting hence it is most significant at lower and middle

management compared to the upper management.

Jasim (2019), explained that conceptual skills are the capacity of leaders to think

about abstract and complex ideas. It relates on how a leaders think and perceived

happenings in his surroundings arises from the divergent practices and structures. In
addition, it asserts that it is acquired through optimist thinking and fulfilled physiological

needs of a leader thus through this positivity, the leader more-likely make sound choices.

Igbudu & Afangideh (2018) emphasized the need for conceptual skills to be in a

regular use as it is indispensable in sustainability and effectiveness. As it assist in problem

solving from which is essential in achieving the desired change influence by significant

factors such as change in customers preference, competitive market and change in

environment. They communicate and interpret this changes in a way that provide solution

to the problem. On the other hand, although its significance has been acknowledged as

essential for leadership, but because of its complexity and hard to understand, many have

committed conceptual thinking errors thus their effectiveness as leaders are reduced and

may prevent and inhibit desired change and goals.

Human skills is one of the leadership skills that needs to acquire by the owners’s

and maangers of a business. As defined by Jaqua E. & Jaqua T. (2021) it is also known as

soft skills that refers to the ability of a leader to relate to other people. It further

elaborates that with this skill manager and owners can successfully consider, assess and

identify the needs of other people in making decision.

Lorica & Valenzuela also added, that it is a skill that recognize others perspective

or other way of thinking. It further states that leaders are open in accepting other ideas

thus promoting collaboration which also improves performance, minimize errors and

enabling a healthy relationship between employees and the owner to perform effectively

and efficiently.
Leadership Styles

Leadership styles are imperative in the determination of performance, company

competitiveness, long-term viability, innovative culture and profitability of businesses. An

effective leadership depends on the approach or style being adopted. It is aligned in the

nature of the business, employees and multiculturalism of society (Samuel, 2018).

Integrating sustainability at strategic level distinguish to entities which only involves

sustainability in effort that is demanded by institutions. Management commitment is

essential to anchor on sustainability practices to be successful in planned activities.

Leaders should engage at the level of individual motivation and behavior to be able to

construct a successful sustainability practices (Eide et al., 2020). Sustainable

development is ineffective without participation and outstanding performance of

employees at the workplace where it is promoted by the practice of organizational

leadership style. Effective leadership enhances and maintains competitive advantage of

organization which is based on employee willingness and cooperation to execute the

tasks provided. The impact of effective leadership and thriving employees plays a

significant role to sustain the growth of an organization.(Ahmed Iqbal et al., 2021).

The complexity in the business environment have imposed organizations to be

alert and liable to accept changes. The uncertainty of business needs to be sufficient in

participation of internal parties. In the continuous changing and competitive market,

human resource is the most essential in the business advantage. Leadership styles bears

an essential, direct cause and effect relationship on business success and development

(Mkheimer, 2018). Leadership styles would change in accordance to situations. A great

leader would take different leadership styles to cope with situations, time and objects (Lin

& Wu, 2018).

Transformational leadership is the leader's ability to influence their employees but

low in anticipating and predicting for the future. It is harness by their power, experience

and knowledge by discussions and interactions, getting suggestions and

acknowledgments and through transparent and profitable assimilation of behaviors.

Transformational leadership is the leader's ability to transform the subordinate values to

support the vision and objectives of the organization by training and fostering

environment that established trust in the vision shared. Leaders provide passion, energy,

inspiration to the employees and knowledge as a source of good experience. (Sulaeman et

al., 2020). Transactional leadership is highly related to the variety of circumstances in

organizations wherein the structural reforms are mostly performed by transactional

leaders that help to achieve sustainable performance (Dai et al., 2022). Leadership style

of transactional and transformational have significant negative impact on business

success which implies that when the transactional and transformational leadership style

implementation, the business success would not increase. The success of business is not

on the leadership styles but rather than by the skills and professional leaders that leads

subordinates in every tasks (Mkheimer, 2018). The role of good leadership strength and

ability supports and developed the companies to further achieve business success

(Mkheimer, 2018).

In the study of Kurt Lewin (1939) cited by Kilic et al. (2020) on the three

leadership styles namely, authortiarian, democratic and laissez-faire which have been

recognized in management. Authocratic leadership style by Farh & Cheng (2000) cited in

the study of Samuel (2018) is a complete decision making by top management without

any involvement
of subordinates and stipulating their full obedience. Authoritative leaders are result

oriented which use penalties and punishments rather than rewards in order to attain the

desired result in the stipulated amount of time and resources. Individuals who worked

under an authoritative leader understand its significance and need of what they do and

why. These leaders have a vision and enjoy the ability to direct people towards it (Ahmed

Iqbal et al., 2021). Authoritarian leadership could apply on organizational members to

timely allocate employees and distribute work with past experiences in order to reduce

errors (Lin & Wu, 2018).

Democratic leadership is more open to information sharing between employees to

improve the organizational efficiency. It fosters teamwork. As cited in Ojokuku et al.

(2012) cited by Samuel (2018) democratic leadership is same with laissez-faire style of

leadership wherein leaders gives the subordinates an autonomy to perform due to their

high level of expertise a democratic behavior enables the leader to apply their plans,

motivates coworkers, and utilize a better managerial idea in organizations. It contributes

to the sustainable working and behavior of organizations (Nedelko & Potocan, 2021).

Democratic leadership can empower the cadres in order to manage basic-level affairs

(Lin & Wu, 2018). Democratic leadership involves rights to meaningful participation and

respect and expectations toward everyone. Anderson (1959) cited by Fakhri et al. (2021)

argued that democratic leadership is associated with low productivity and high moral

while authoritarian is associated with high productivity and low morale.

Laissez-faire leaders assigned subordinates the decision-making powers which

creates a good learning opportunities that results to a more effective style when

employees are highly skilled (Ahmed Iqbal et al., 2021). Laissez-faire leadership style

entails virtually
no guidance to subordinates. Leaders do not have confidence in their competence and

ability to supervise which is detrimental to organizational functionality. As cited in Yang

(2015) cited by Yang & Lew (2020) that laissez- faire is a strategic choice of a leader and

can reduce followers' dependency and promotes self-determination and autonomous

motivation.

Leadership and Crisis

Leadership management revolves in enhancing the employees’ ability and as well

creating change in the environment in which it operates (Javed et al., 2020). Meanwhile,

Dr. Kofand Anwar defines crisis in his published article entitled “The Role of Effective

Leadership in Crisis Management: Study of Private Companies in Kurdistan” as a

situation that cannot be predicted and needs urgent precautions by the leader. Meanwhile,

Alzoubi and Jaaffar cited in their article entitled “Leadership styles, crisis management,

and hotel performance: A conceptual perspective of the Jordanian hotel industry” four

main groups of crises that Hartmann (2012) categorized in which COVID-19 is an

example of epidemics (due to the rapid spread of communicable diseases) which false

under civil conflicts.

Because of the innate characteristics of humans, it is relatively easy to tell people

lies that they can accept than tell them about a reality that is hard to take (Grint, 2020).

Hence, leaders are faced with critical thinking about whether to disclose factual

information or conceal it with lies that comfort the people. In effect, leaders who made

the wrong decision tend to make the problem worst. A vital challenge of a leader is to

bring the situation to normal, and even with the negative things brought by crisis, it is

necessary to recognize the truth that crises produce and create an opportunity in which a

leader has the chance to innovate institutional structures and established policies (Anwar,

2021). The
role of leadership is to make people face the things they need to face considering that

these decisions are fair and justly implemented (Grint, 2020).

As time changes, organizational environments were faced with changes that can

hugely affect leadership management. When risks associated with changes are assessed, it

is known that the risks are serious and that specific leadership styles do not fit the

situation (Anwar, 2021). The difficulties that the business encounter may arise from the

misapplication of leadership style because leadership and crisis are related in such a way

that both concepts have a nature to counterpart the other (Anwar, 2021). One of the main

responsibilities of an effective leader is being able to accurately respond to the risks that

crisis brought to the management. It is very essential that businesses have their own plan

for crisis to be prepared so that in times of crisis, Leaders can know how to respond

constructively and learning to do so is a key piece of their professional development

(Anwar, 2021).

Moreover, it is cited in the study of Alzoubi and Jaaffar (2020) that Pang, Jin, and

Cameron (2010) have argued that the performance of the organization is dependent on

the effectiveness and efficiency of leadership communication of the crisis when applying

a crisis management strategy during crisis situations. However, most organizations faced

with a crisis will rely on the leader in place at that time to lead them out of the crisis,

often with catastrophic results. When the crisis becomes out of control, companies then

discover relatively late that the existing leader does not necessarily possess the leadership

style required to properly manage the situation. (Bowers M., et al, 2017).

Various types of crisis effects on organizational activities from local micro

enterprises to international businesses (Alharthi & Khalifa, 2019). Managing crisis

requires
inter-organizational collaboration and collaborative leadership skills (Kapucu & Ustun,

2017). Crisis situations create a vulnerable environment in which leaders must make

quick and effective decisions with limited information. Emotions and instincts can

readily overpower intelligence and rationality in this type of atmosphere. To mitigate the

impact of these difficult circumstances, every competent leader must take a variety of

steps before, during, and after the crisis (Kapucu & Ustun, 2017).

Leadership and Sustainability amidst Covid-19

The study by Kowo et al. (2019) in the strategic leadership and sustainability

performance of small and medium enterprises in Nigeria discovered that there is a

significant influence of strategic planning on sustaining small and medium enterprises

profit performance. Moreover, the results indicated that those managers that are strategic

in planning are the ones who sustain sustainability and profitability performance. The

findings determined that return on investment of small and medium enterprise is

dependent on the appropriateness of its leadership practices. Hence, small-sized

companies are advised to be effective in their strategy implementation in order to achieve

the corporate objectives of is small and medium enterprises.

Covid-19 is an unprecedented phenomenon that is actively reacted by sustainable

development researchers that stresses the critical need for enterprises to counter with the

society's immediate needs. Sustainable development is not all about development that

provides economic growth but as a necessity for equitable and environmentally friendly

distribution (Upadhyaya, 2021). The outbreak of Covid-19 leads businesses to focus on

management processes to achieve a sustainable competitive advantage through human

and strategic leadership capabilities. Business environment is volatile in regards to

leadership
styles that will respond on changes in business process and uncertainty of events. It is in

the discretion of the leader to be ready for possible future problems that may encounter

and have the ability to manage imperative resources.(Mahdi & Nassar, 2021)

Due to corona virus, there is a question of public safety and negative effects on

business cycle in which the value chain of entity is shut down and growths and

distributors are being impede further. The world experience the dismissal or salaries cuts

which reported by international labor organization of 1.25 billion jobs (Upadhyaya,

2021). The technique to manage organizational knowledge is strategic leadership.

Knowledge that is supported by strategic management can supply tactical instruments in

attaining sustainable competitive advantage wherein "human capital" and "social capital”

is significant in developing strategic leadership. Competitive strategies development is

utilized by enhancing and integrating assets and the capabilities in internal and external

variables. Strategic leadership and knowledge management processes are recognized as

capabilities whereas human capital, social capital, skills and knowledge are

organizational resources (Mahdi & Nassar, 2021).

Leadership style is an idea of behaviour on the personal motivation of leaders and

how they lead is interconnected that suggest wherein motivation of a leader precedes

their leadership style (Eide et al., 2020). Business sustainability needs influence of

stakeholder engagement in order to improve internal and external roles. Internal and

external factors constrained the entrepreneurs that will threaten the business sustainability

(Sulaeman et al., 2020).

Sustainability leadership indicates a long-term determinant of success and

performance outcomes. The pandemic shows the aggregated leadership for sustainability
that leads to transform visions and strategies to incorporate sustainable development

goals to missions to balance the economic, ecological and social triads (Suriyankietkaew

et al., 2022). Integrating sustainability at strategic level distinguish to entities which only

involves sustainability in effort that is demand by institutions. Management commitment

is essential to anchor on sustainability practices to be successful in planned activities.

Leaders should engage at the level of individual motivation and behavior to be able to

construct a successful sustainability practice(Eide et al., 2020)

According to (Eide et al., 2020) leaders are vital for entities strategic

sustainability efforts as it partially mediates between motivation and sustainability

strategy wherein executives motivation impacts the employees to adapt sustainable

strategies. There is a positive feedback if leaders has the ability to influence the

employees in order to boost their performance (Sulaeman et al., 2020). Contribution of

evidence-based insights are the role of business analysts to provide accountable

leadership that is utilized in crisis times (Upadhyaya, 2021). The most significant factor

that contributes in detecting opportunities and risk although mobilizing capital and

capacities is leadership. Assessment of sustainability leadership is undeveloped even

though it is significant for socio-economic growth (Suriyankietkaew et al., 2022).

 Chapter 3

RESEARCH METHODOLOGY

Method Used

The study is a qualitative research which employs a scientific method of

observation that deals with non-numerical data to collect and analyze the data that deals

with the phenomenological approach utilizing the descriptive method of research. This

study focuses on the direct experience on the participants based on a certain phenomenon

which is the Covid 19. Descriptive research is a research method that primarily describes

the characteristics of the population or phenomenon that is being studied.

According to Aquino (2010) descriptive research is a fact-finding with a sufficient

interpretation. It does not answer the questions about “how/when/why” the characteristic

occurred rather it answers the “what” question. Descriptive research involves the

description, recording, analysis, and interpretation of the study that focuses on prevailing

phenomenon (Joy, 2014). Moreover, descriptive approach is considered suitable since

this study focused on the phenomenon that triggered the researchers to gather information

about the applied leadership skills and styles by business owners or managers of

microenterprises amidst Covid 19.

The researchers formulated questions that were asked and answered during the

Key Informative Interview (KII). It is the main source of data by asking the participants a

set of questions formulated by the researchers prior to the interview. Gathering data first

hand from the participantsas emphasized by Rouse (2017) will generate insights,

opinions, feelings and approval and denial of the policies as indicated. Key Informative

Interview
will extract the perspectives of business owners and managers about the leadership

management skills and styles that they use as they sustainably maintain the business

amidst crisis. The entire data to be gathered and collected are expected to resonate up to

the economic development of the business community.

This study will utilize simple random sampling in the selection of participants

which are the microenterprise owners or managers from Dapitan and Dipolog City,

Zamboanga del Norte. These were chosen by the researchers in order to obtain reliable

responses from the informants. This study will be done to the microenterprise businesses

who have withstood the advent of the pandemic estimating that they have operated for at

least three to four years, to serve as proof that they have successfully sustained the

business even with the crisis, Covid-19.

Research Environment

Institutions in every place in the world often face turbulence amidst normal

everyday operations. Leading to a number of possible outcomes on whether

improvements can be done or it may cause the institution degradation. Failure is always

part of the process as it does not always indicate ultimate destruction but is a vital sign to

foster the creativity of the individuals involved in order to recover and make sudden

changes that will benefit that certain institution. This circumstances serve as basis for

various business studies for researchers all around the world.

The locale of this study, Dapitan and Dipolog City, Zamboanga del Norte are

third- class cities in Zamboanga del Norte which obtains an average annual income of

fifteen million pesos or more but less than twenty million pesos. Both cities in the recent

years has
had gradual development in the field of business and industry. According to the 2022

data of the Department of Trade and Industry, Dapitan and Dipolog City has an economic

dynamism of twenty percent (20%). This refers to the rate and direction of change in the

economy of Dapitan and Dipolog City. This includes the rate of new business formation,

frequency of labour market turnover and the geographic mobility of workforce.

Even with the disruption of Covid-19, there have been numerous microenterprises

that continued to operate up to the present. As compared to other cities, it is not as

economically concentrated in terms of business density. However, it is still a city with

steady economic growth with the continuous rise of many aspiring entrepreneurs. Given

that sustaining a business is in various ways challenging, many have failed to rise to the

standards of the new normal and eventually failed to sustain the business leading to losses

and ultimately, bankruptcy.

As this research indicates, those businesses in particular that have proven their

business sustainability in Dapitan and Dipolog City through continuing business amidst

the pandemic and have adapted to the new normal of the business community are focused

in this study. By this factor supplied by the environment of the study, the researchers tend

to examine and find possible ways to alleviate the impact of crisis situations on

microenterprises as well as recommend these methods to institutions that may face these

situations in the future.

Participants of the Study

The researcher traversed on the leadership skills and styles applied by the

business owners or managers on crisis. The study focuses on the microenterprise

business owners
or managers in Dapitanand DipologCity, Zamboanga del Norte these are businesses that

employ less than 10 workers whose total assets are below the Php3,000,000 threshold.

Random sampling in choosing the participants will be utilized by the researchers the

considered seven participants in Dapitan and Dipolog City, which is the acceptable

number of informants necessary to determine information by using the qualitative

technique.The participation of the participants of the research were voluntary and thus

given the choice whether to participate in the interview or not.

Table 1 shows the distribution of participants in Dapitan and Dipolog City,

Zamboanga del Norte. As presented in the table there are 3 participants are being

extracted in Dapitan City while 4 participants coming from Dipolog City.

Table 1 Distribution of the Participants

Location Number of participants Percentage

DAPITAN CITY 3 43%

DIPOLOG CITY 4 57%

Total 7 100%

All participants are able to meet the criteria of microenterprise which have

operated for at least three to four years, to serve as proof that they have successfully

sustained the business even with the crisis, Covid-19. This factor is an insightful

mechanism of the researchers to make sure that the date to be collected are reliable and

relevant.
Research Instrument

In accordance with the qualitative research method, the instrument will purposely

extract the leadership skills, leadership styles, and other relevant data of each participants

through the use of key informative interview.

Key informant interviews (KIIs) is considered as a vital part of qualitative

research. It is a kind of in-depth interview which is positioned as it produces and

contribute valuable knowledge because of the status and expertise of the key informants.

It also evidently found out that participating in key informant interviews have advantages

compared to focus group discussions and surveys as researchers may able to gain

knowledge specially in sensitive topics that are prohibited to share by focus group

discussions thus provides the researchers with rich and greater access to the communities

(Lokot, 2021). The aim of the interview is to gather data from a target audience and the

proceeding results will provide great insight through the collection and interpretation of

data.The strength of KII is providing a particular knowledge and understanding from

informants that enables the researchers to obtain a detailed data(Killikelly et al., 2022).

The questions in the interviews are researcher made and were thoroughly discussed and

extracted by the researchers through referencing various standardized leadership skills

and styles guide questions which are prevalent in management research. Hence, it will be

a modified question that will serve as an infusion of different leadership interview

questionnaires so that it may meet the main objectives of this particular study. It will then

be submitted and corrected by the research adviser administered to the researchers.

Data Gathering Procedure

Prior to the conduct of the interview, the necessary consent and permission of the

business owners and managers will be obtained from the participants in order to ensure

formality and consider ethical compliance throughout the conduct of data gathering.

In the research, the interview will be conducted one-on one. The participants will

be interviewed in the first quarter of 2023. Random sampling technique will be used

where each of the researchers will gather data on a business concentrated area, finding

microenterprises that would meet the sustainability standard of the research which have

an estimated life of at least three to four years. The data gathering process will follow by

interviewing the participants with their respected location with a guide questionnaire.

The interview process will include recording, filming, documentation and

transcription of the information done simultaneously in order to achieve consistency and

accuracy of the data gathered. After the course of the interview, researchers will

transcribe all information gathered subjected for analysis and appended as part of the

study.
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