The Effect of Leadership Style on Companies Survival: A Comparison Study Between Chrysler Auto Maker and Jordanian Potash Company

Abstract

This research paper aims at investigating the effect of transformational leadership on a company’s survival when such company at the verge of collapse. Leadership style assessment analyses are used with application on a Jordanian leading company" The Arab Potash"(APC), and the American auto maker giant Chrysler. It is unusual practice for researchers to conduct studies on companies which are completely different in every aspect. However, this study found a common ground between a giant and a little tiny company which enable researcher to conduct an effective comparison between the two for the purpose of revealing the impact of good leadership on the company’s survival.  The history of these two companies is very interesting because of the similarity between the two. In 1970s and 1980s Chrysler and Arab Potash were facing very serious problems, in a degree that they were on their way to bankruptcy and death. Fortunately, two exemplary leaders came for rescue, Lee. Iacocca took over Chrysler, and a distinguished Jordanian took over The Arab Potash. Both leaders did miracles and turned the companies around from failing to profitable corporations. The achievement of those two leaders have manifested the effectiveness of true leadership in creating success and flourishing of hopeless situation. Lee Iacocca and Hamor make this study to be unique because it is the first study of its kind in Jordan to the best of this researcher’s knowledge.

Keywords: Chrysler, Arab Potash, Lee Iacocca, M.Hamor transformational leadership

DOI: 10.7176/EJBM/11-35-11

Publication date: December 31^st 2019