Applying Transformational Leadership and LMX Theory to Succession Planning in Logistics SMEs

Abstract

Purpose: This article explores how Transformational Leadership Theory and Leader-Member Exchange (LMX) Theory provide valuable frameworks for understanding leadership succession planning in small-to-medium-sized enterprises (SMEs) within the logistics sector.
Design/Methodology/Approach: The article draws on findings from a qualitative phenomenological study of 11 U.S.-based SME logistics leaders. Semi-structured interviews were analyzed using Braun and Clarke’s six-step thematic framework. The analysis was guided by Transformational Leadership Theory and LMX Theory to identify how visionary leadership behaviors and relational quality shaped succession outcomes.
Findings: Results demonstrate that transformational leadership behaviors (idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration) were central to preparing successors in resource-constrained environments. LMX dynamics, trust, communication, and individualized support, compensated for the lack of formal HR-driven succession systems. The synergy of the two theories provided a holistic framework for understanding leadership continuity in SMEs.
Practical Implications: The study highlights that SMEs can embed leadership continuity into their organizational culture by institutionalizing mentorship, fostering trust-based relationships, and modeling vision-driven leadership. These practices enhance resilience and sustainability without requiring significant structural investment.
Originality/Value: This article contributes to theory and practice by extending Transformational Leadership and LMX theories to the underexplored context of logistics SMEs. It offers a dual-lens framework for strengthening leadership succession where formal structures are limited.