Sustainability of Organizations: The Contribution of Personal Values to Democratic Leadership Behavior Focused on the Sustainability of Organizations

Abstract

The main purpose of this study was to examine the influence of leaders’ personal values on their democratic behavior from a sustainability perspective. We specified and tested the research model, drawing upon modified versions of the theory of basic values and the autocratic–democratic leadership continuum. A total of 208 Slovenian and 196 Austrian leaders’ responses were used in hierarchical regression and structural equation modeling analysis. The results reveal a significant and positive influence of collectivistic values in both samples on democratic leadership behavior. A significant and negative effect of individualistic values on democratic leadership behavior is present in Austria, while in Slovenia, the effect is positive but not significant. Based on acknowledged associations between leader’s values, leaders’ democratic leadership behavior, and sustainable development, we argue that democratic leadership behavior contributes to the sustainable working and behavior of organizations. These results have theoretical implications, indicating how personal values affect leaders’ democratic behavior and contribute to the sustainable working and behavior of organizations. The practical implications relate to the strengthening of leaders’ democratic behavior in Slovenian and Austrian organizations. In addition, these findings will be helpful in increasing the sustainability of organizations via fostering democratic leadership behavior and its underlying personal values.