Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Ritika Sharma, Arjun Verma

Absract: Leadership plays a critical role in shaping organizational economics by influencing productivity, resource allocation, and strategic decision-making. Different leadership styles, such as transformational, transactional, and laissez-faire, impact economic outcomes within firms by affecting employee performance, motivation, and innovation. This paper explores the relationship between leadership styles and organizational economics, emphasizing how leadership decisions influence operational efficiency, cost management, and profitability. Using a combination of literature review, case studies, and empirical evidence, the study analyzes the economic implications of various leadership approaches. The findings suggest that effective leadership not only enhances economic performance but also fosters sustainable growth and competitive advantage. Recommendations for aligning leadership styles with organizational economic objectives are provided.

Keywords: Leadership styles, organizational economics, transformational leadership, transactional leadership, economic performance, productivity, strategic management.