VALUE-BASED LEADERSHIP AND EMPLOYEE MOTIVATION IN CENTRAL EUROPEAN SMALL ENTERPRISES: A COMPARATIVE STUDY OF HUNGARIAN, SLOVAK, AND AUSTRIAN SMES
Keywords:
value-based leadership, employee motivation, small enterprisesAbstract
This study examines the impact of value-based leadership on employee motivation in small
enterprises across three Central European countries: Hungary, Slovakia, and Austria. Through a
mixed-methods approach combining quantitative surveys and qualitative interviews with ten
diverse small enterprises, this research explores how ethical principles and organizational values
embedded in leadership practices influence employee engagement, commitment, and
performance. The findings reveal that value-based leadership significantly enhances employee
motivation through mechanisms of ethical climate creation, psychological empowerment, and
authentic leader-follower relationships [1]. Results indicate that while regional variations exist,
value-based leadership universally promotes higher employee engagement, reduced turnover
intentions, and improved organizational performance across all three countries [2]. The study
contributes to leadership theory by demonstrating the effectiveness of value-based approaches in
resource-constrained SME contexts and provides practical implications for SME leaders seeking
sustainable competitive advantage through human capital development
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