Title: The role of democratic leadership style and organisational learning in innovations and financial performance of enterprises

Authors: Edrina Emini; Sadudin Ibraimi; Gadaf Rexhepi

Addresses: Faculty of Business and Economics, South East European University, Tetovo, North Macedonia ' Faculty of Business and Economics, South East European University, Tetovo, North Macedonia ' Faculty of Business and Economics, South East European University, Tetovo, North Macedonia

Abstract: The main purpose of this paper is to provide an empirical assessment of the relationship between democratic leadership style and organisational learning on innovation and financial performance of private sector businesses in North Macedonia, using cross-sectional data. PLS-SEM was used to assess the relationship between the observed variables. The findings suggest that there is a positive relationship between democratic leadership style and organisational learning. Also, it was found that organisational learning has a positive relationship with innovations. On the other hand, democratic style, organisational learning and innovations have a positive effect on increasing financial performance. The findings of this study add value to the literature in this field, which also serves as a useful reference for future research. While, regarding the practical view, these findings can help businesses to create a business model that focuses on organisational learning, democratic leadership and innovation thus creating better financial results.

Keywords: leadership; democratic leadership style; innovation; organisational learning; financial performance; business performance.

DOI: 10.1504/IJEWE.2023.135481

International Journal of Environment, Workplace and Employment, 2023 Vol.7 No.3, pp.260 - 273

Received: 01 Jun 2023
Accepted: 03 Jun 2023
Published online: 14 Dec 2023 *

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