Abstract

The study aims to explore the interplay between management styles and the economic performance of firms, considering the mediating factor of the technological environment. A questionnaire survey was conducted to collect data from both managers and employees across 14 firms situated in Bamako, Mali. Utilizing 138 recovered questionnaires, the research employed the regression analysis method to test direct effects, while the Sobel procedure was applied to test indirect effects. The results show that in a poor business environment, authoritative, persuasive, and participatory styles exhibit a significant and positive correlation with firm economic performance. However, the direct impact of the consultative style is found to be non-significant. Furthermore, persuasive and consultative styles manifest significant indirect effects through the mediation of the technological environment. Surprisingly but reasonably, the optimization of the firm's technological environment hinders the enhancement of economic performance, introducing heterogeneity in the indirect effects of persuasive and consultative leadership styles. These conclusions align with the perspectives of upper echelons and contingency theories, unveiling the diverse impact of management styles on economic performance and underscoring the necessity for long-term investments in technological environment enhancement. Consequently, the study contributes to the enrichment of management style theory and reminds us to think carefully about the value of technological environment enhancement.

Key words: Management style; economic performance; technological environment; empirical study; poor business environment.