RELATION OF LEADERSHIP AND BUSINESS PERFORMANCE: BALANCED SCORECARD PERSPECTIVE

Ivan Miloloza ()
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Ivan Miloloza: Munja d.d., Koledovcina 3, HR – 10000 Zagreb, Croatia

Interdisciplinary Management Research, 2015, vol. 11, 159-179

Abstract: Leadership is a major factor of managing the companies during the change, but also throughout the problem, because only a leader is capable of creating an environment in which his co-workers are encouraged to be leaders and to cooperate and develop, thus contributing to the development of companies. Leadership obviously contributes to business performance. The goal of this paper is to investigate the relationship of leadership and performance of the companies measured by the Balanced Scorecard Approach. In order to attain this goal, a survey has been conducted on the sample of Croatian companies. The results of the research indicate that authoritarian leadership style has in general a negative effect on business performance of Croatian companies, while democratic leadership style has in general a positive effect. The impact of laissez-faire leadership style was mostly neutral. Further research should focus on the impact of leadership style on business performance of companies with various characteristics, e.g. different stages of their development.

Keywords: Leadership; SME; international business; business performance; Balanced Scorecard (search for similar items in EconPapers)
JEL-codes: M11 M12 M19 (search for similar items in EconPapers)
Date: 2015
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