LEADERSHIP STYLES AND EMPLOYEE PERFORMANCE IN NON-PROFIT ORGANIZATIONS: THE MEDIATING ROLE OF EMPLOYEE MOTIVATION AND CREATIVITY

Authors

  • Lorena Dadić Fruk Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka
  • Helga Maškarin Ribarić Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka
  • Ivana Licul Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka

Abstract

Non-profit organizations (NPOs) depend on employees and volunteers to deliver services and advance the NPOs’ missions. This study examines how leadership styles shape employee motivation and creativity and, in turn, performance in NPOs. Primary data were collected via a structured questionnaire from 179 NPO employees in Croatia and analyzed using PLS-SEM. Results indicate that transformational and transactional leadership styles are positively associated with motivation and creativity, which both relate positively to performance. In contrast, autocratic and laissez-faire leadership styles were either non-significant or negatively associated with these outcomes (while democratic leadership was non-significant for motivation but negative for creativity). These findings suggest that emphasizing inspirational vision, individualized support, clear goals, and fair recognition can bolster day-to-day motivation and creative effort, translating into improved performance and greater organizational stability. In terms of theory, the study clarifies motivation and creativity as dual mechanisms linking leadership styles to performance within the non-profit context. In terms of practical implications, the results offer clear guidance for leadership development and HR policy in resource-constrained NPOs.

Author Biographies

  • Lorena Dadić Fruk, Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka

    (Corresponding author)
    Assistant Professor
    Faculty of Tourism and Hospitality Management,
    Opatija, University of Rijeka
    Primorska 46, pp. 97, 51410 Opatija
    Croatia
    E-mail: lorenad@fthm.hr
    ORCID: 0000-0003-1479-4123

  • Helga Maškarin Ribarić, Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka

    Tenured Full Professor
    Faculty of Tourism and Hospitality Management,
    Opatija, University of Rijeka
    Croatia
    E-mail: helgam@fthm.hr
    ORCID: 0000-0002-7201-9603

  • Ivana Licul, Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka

    Senior Assistant
    Faculty of Tourism and Hospitality Management,
    Opatija, University of Rijeka
    Croatia
    E-mail: ivana.licul@fthm.hr
    ORCID: 0000-0001-8238-8317

Published

2026-02-07

Issue

Section

Scientific and Professional papers: Economics and Business

How to Cite

LEADERSHIP STYLES AND EMPLOYEE PERFORMANCE IN NON-PROFIT ORGANIZATIONS: THE MEDIATING ROLE OF EMPLOYEE MOTIVATION AND CREATIVITY. (2026). The South East European Journal of Economics and Business, 21(1), 1-14. https://journal.efsa.unsa.ba/index.php/see/article/view/2673