The Impact of Laissez-faire Leadership on Conflict Resolution Styles: The Mediating Role of Trust within SMEs in Kuching, Sarawak.

dc.contributor.authorYong Jing Jing
dc.date.accessioned2026-08-19T07:42:37Z
dc.descriptionThis research examines the relationship between laissez-faire leadership and conflict resolution styles, which emphasizes the mediating effects of affective and cognitive trust in small and medium-sized enterprises (SMEs) located in Kuching, Sarawak. Laissez-faire leadership, noted for low intervention and significant employee autonomy, has been linked to both beneficial effects, including creativity and self-reliance, as well as difficulties, especially regarding conflict resolution. SMEs, with their limited resources and flat organizational structures, create a distinctive environment where leadership styles can greatly impact team interactions and conflict management styles. This research examines the influence of laissez-faire leadership on employees' adoption of five conflict resolution styles that includes collaboration, avoidance, accommodation, compromise, and competition from Thomas-Kilmann Conflict Model. A significant contribution of the research is its analysis of the mediating functions of affective trust that grounded in emotional connections and reciprocal respect, and cognitive trust that founded on views of competence and dependability. Trust is recognized as an important element that can either alleviate or intensify the difficulties of laissez-faire leadership in handling conflict resolution styles. This research uses a quantitative method with structured questionnaires to collect data from employees within SMEs in Kuching. Data analysis includes descriptive, regression, and mediation analyses to investigate the direct and indirect impacts of laissez-faire leadership on conflict resolution styles. The results suggest that both affective and cognitive trust are important in influencing how employees resolve conflicts. They emphasize that strong trust can improve collaboration and compromise, whereas weak trust may lead to avoidance or competition. This research provides theoretical insights through addressing gaps in the current literature regarding leadership, trust, and conflict resolution, especially within the iv less studied context of SMEs. It also provides practical suggestions for SME leaders, which highlights the importance of fostering trust to balance autonomy and guidance, which in turn promotes effective conflict resolution and enhances team performance. The results suggest important considerations for leadership development programs and organizational strategies focused on enhancing workplace harmony and productivity in SMEs. In short, this research highlights the unique socio-cultural and economic factors affecting SMEs in Kuching, Sarawak, which emphasizes the need for leadership approaches adapted to their unique challenges and opportunities.
dc.identifier.urihttps://scholarhub.unimas.my/handle/123456789/1625
dc.language.isoEnglish
dc.publisherUniversiti Malaysia Sarawak (UNIMAS)
dc.relation.ispartofseriesFaculty of Economics and Business
dc.subjectLaissez-faire Leadership, Conflict Resolution Styles, Affective Trust, Cognitive Trust, Small and Medium-Sized Enterprises (SMEs)
dc.titleThe Impact of Laissez-faire Leadership on Conflict Resolution Styles: The Mediating Role of Trust within SMEs in Kuching, Sarawak.
dc.typeFinal Year Project

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