Personality traits of managers and success of firms: a case of Lithuanian SMEs

Abstract

SMEs are confronted with various problems impacting their performance. Limited resources are seen as the most significant issue, restricting activities and growth of small firms. A number of scientific investigations have identified crucial role of owners/managers in the survival and long-term success of firms. The investigations, related to personality traits and entrepreneurial behavior, demonstrates mixed results. Some studies revealed that the performance of SMEs is determined by the characteristics of owners/managers and different research results highlighted the positive relationship between personality traits and success. Other studies did not disclose such relationship. The paper aims to compare personality traits of owne rs and managers and investigate the relationships of personality traits and success of small firms. The study attempted to test a set of traits grounded on prevailing literature. Self-efficacy, proactive personality, tenacity, need for achievement, stress tolerance, goal orientation, need for autonomy, innovativeness, endurance, flexibility, passion for work are being analyzed. The data reveal ed lower perceived traits of owners such as stress tolerance and lower perceived creativity of managers. The study demonstrates positive relationships between a number of personality traits and turnover increase of small firms. The research data enabled to gain insights into personality traits of entrepreneurs and managers and elaborate proposals for future investigations.