The importance of value-based leadership : A framework of factors related to a manager's perception of value-based leadership

Abstract: Background: Value-based leadership is needed and demanded in today’s complex and changing business environment. Values facilitate upcoming obstacles and difficult situations that everyone in an organization encounters. Hence, a manager should be able to lead and influence the entire organization towards these values, which make the role of the manager essential. Research argue for the effectiveness of implementing value-based leadership in organizations. Yet, less is known about how today’s companies and managers work with it, and what the factors are related to it. Research QuestionHow are managers working with value-based leadership and how can certain factors be related to it? Purpose: The purpose of this study is to describe how managers both view and work with value-based leadership in terms of social transformation, organizational culture and leadership behavior. Further, to explain how certain factors are related to value-based leadership in the company. The study also aims to develop and broaden the academical field with a framework of value-based leadership in order to create a deeper understanding of value-based leadership in practice and its possible outcomes. Method: A qualitative approach was used during this study, where ten managers from four Swedish companies from the private sector were interviewed. These companies were chosen due to their awareness of value-based leadership and clarification of values. Theoretical framework: The framework consists of three theoretical blocks: value-based leadership, leadership behavior, and organizational culture. Based on this, an analyze model was created to facilitate the analysis of the empirical data. Findings: All managers and their companies are working in accordance with value-based leadership, but to different extents, which is partly due to social transformation in terms of a shift in generations and social sustainability. The factors trust and values are most emphasized and related to value-based leadership, while the factors organizational culture and self-leadership are less emphasized. Still, the authors claim that these factors are crucial in value-based leadership.