The Interplay of Cultural Value Dimensions and Preferred Leadership Behaviors: Intersecting Pathways in the Case of Croatia

Introduction

For leaders living in a world of fast changes, uncertainties, and great challenges, it is imperative to be familiar with the cultural surroundings to better understand individuals’ actions and adjust behaviors suitably for certain situations (Podrug et al., 2014). Leadership behaviour may vary upon many antecedents. An individual’s value orientation shapes cognition about behaviours and skills of an effective leader (Ehrhart & Klein, 2001), and people tend to endorse leadership behaviours they believe they possess (Foti et al., 2012). Successful and skillful leaders are aware of this issue and utilize this notion to direct their followers to the highest level of motivation. Cultural values significantly shape or determine effective behaviors within a leadership context (House et al., 2004) in a way that certain behaviors are aligning more closely with the expectations, norms, and values of specific cultures. Hence, understanding the cultural backdrop is crucial in assessing and developing effective leadership behaviors. Ljubica et al. (2022) emphasise that cultural value dimensions interact with employee preferences for leadership behaviours across societal cultures, therefore, a profound understanding of cultural values and employee preferences is essential for leadership attainment in different environmental contexts.

Croatia has a unique cultural legacy. Analyzing and identifying cultural issues is imperative to reach and cultivate an effective leadership practice. Until now, researchers in Croatia have not sufficiently examined the factors that could influence employees’ preferences for leadership behaviors. The scarcity of information and studies relating to cultural dimensions and leadership behaviors in the Croatian setting determined the trajectory of this research. Further knowledge, research effort, and inquiry dealing with cultural issues are beneficial for national and international managers as they will be provided with a more comprehensive perspective on leadership. Based on these considerations, this paper is focused on the main research question that addresses the relationship between leadership behaviours and cultural dimensions in the Croatian business context.

Leader Behaviour in the Croatian Context

Leader behaviour is shaped by a combination of factors from a country’s historical, political, organizational, and socio-cultural contexts. In the period before, as well as after its independence, Croatia experienced substantial challenges and changes that addressed and influenced leadership behaviours, styles, and values. Although leadership is a widely discussed topic in the literature and the research that concerns it is an evolving field, “there is limited scholarly research available that specifically examines Croatian leadership“ (Dobrić Veiss, 2016, p. 29). More recently Fabac et al. (2022) emphasize that “research on leadership styles of Croatian managers is relatively underrepresented” (p. 354) noticing that segment related to women in the role of leaders is taking the greatest interest.

However, insights into leadership behaviours and practices in Croatia could be found within broader fields and contexts. Researchers who compared leadership behaviours in Croatia and other countries indicated that Croatian leaders nurture “independent and individualistic leadership with self-centered and status-conscious behaviour” and appreciate more “self-protective and autonomous leadership styles” (Kostić-Bobanović & Bobanović, 2013, p. 156). Lately, researchers focused on business organizations in Croatia have emphasized that Croatian leaders are more often task-oriented (Bakotić & Bulog, 2021), preferring a more directive leadership style (Fabac et al., 2022).

Although traditional leadership behaviour is still prevalent in most business organizations in Croatia, an alteration towards more contemporary styles is spotted. Researchers revealed an empirically distinguished leadership style regarding the size of the organizations, level of education, age, gender, ownership type, and the branches of activity of the organizations in Croatia (Fabac et al., 2022; Udovčić et al., 2014). Furthermore, some studies conducted in a Croatian setting provide empirical evidence that leadership behaviors can be acknowledged as important antecedents of work-related outcomes (Bakotić & Bulog, 2021; Jakopec et al., 2013; Miloloža, 2018).

Global trends and changing workplace dynamics have resulted in increasingly diversified workplaces. Thus, nowadays, leaders must clearly understand employees’ preferences and bring their style closer to the preferred leadership behaviour.

Cultural Value Dimensions in the Croatian (Business) Context

Every country has its own set of cultural dimensions that influence the beliefs, values, mindsets, and behaviours of its society. In each society, people are raised in a similar belief context that influences their perspectives, and generally, they share a mutual value system and viewpoints. It is important to highlight that cultural values are fluid and evolve from generation to generation as society changes in its political, economic, and social arena. Hofstede developed the most used and recognized framework for understanding how culture influences behaviors, values, and mindsets in different societies, which includes several key dimensions.

Empirical research in Croatia’s setting that applied Hofstede’s methodology to examine the cultural value dimensions is not rich and provides inconsistent results, which were certainly influenced by possible methodological differences, including variations in survey design, sample size, data collection methods, or the specific cultural dimensions measured, as well as contextual factors. Among others, Lažnjak (2011) noted that Croatian culture is characterized by high Power Distance, strong Collectivism (family and community ties), high Uncertainty Avoidance with a tendency toward a more feminine society; that Croatia leans toward a Short-Term Orientation, valuing tradition, being moderate in indulgence. Rajh et al. (2016, p. 309) provide somewhat different results regarding certain dimensions, indicating that “Croatia scores lower on Power Distance and is a moderately high individualistic country”. Nevertheless, more recent research conducted by Švarc et al. (2019) found that the Power Distance and Uncertainty Avoidance dimensions value are high, while Individualism, Masculinity, and Indulgence are low, and concluding that “in general, the Croatian society is highly collectivistic, restrained and risk avoiding society and has a strong tendency toward social hierarchy” (p. 11). However, research studies so far indicated that Hofstede’s model in the Croatian setting appeared to have little practical value for strategic management and development (Švarc et al., 2019) and that Croatian culture is not supportive of innovation (Lažnjak, 2011; Podrug et al., 2014).

Research Hypotheses

Before conducting analyses on the relationship between dimensions of national culture and leader behavior, it is necessary to verify the level of sample homogeneity. Croatia is traditionally, and since 2012, also statistically, divided into two regions – the Adriatic and Continental. These two regions differ significantly due to their geographical and natural characteristics, as well as due to the dietary habits of the population. However, despite these and other differences, Croatia is a relatively small country both geographically and in terms of population, with a unique history, making it difficult to assume significant cultural and value differences between the two Croatian regions. That is also supported by Rajh et al. (2016), who emphasize that Croatia is homogeneous regarding national cultural dimensions. Therefore, our first hypothesis ( H1 ) is as follows: Croatia’s Adriatic and Continental regions have no statistically significant differences concerning Hofstede’s cultural dimensions.

Given that Croatian society has undergone significant shifts in its political, economic, and social spheres recently, and based on previous research results that applied Hofstede’s methodology to assess cultural values, we hypothesize ( H2 ) that: According to Hofstede’s cultural dimensions in Croatian society, Individualism (against Collectivism) and Indulgence (against Restraint) are more pronounced, Uncertainty Avoidance is rated low, while for the other cultural dimensions tendencies toward extremes are not significantly expressed.

Some previous research indicated the dynamic between cultural values and leadership, particularly the importance of understanding how cultural context influences leaders’ behavioral preferences. Particularly noteworthy is a rich stream of research within the GLOBE project (Global Leadership and Organizational Behavior Effectiveness; Dorfman et al., 2012), which explored how cultural values manifest in leadership styles across various societies worldwide. Therefore, we develop the last hypothesis ( H3 ) as follows: There are statistically significant correlations between cultural value dimensions and diverse preferences for leader behaviors in Croatia.

Method and Findings

Detailed methodological information about the content of the research instruments, sampling procedures, language of surveys, and translation procedures including back translation and validation measures, is explained in the Editorial Introduction (Ljubica & Littrell) of this Special Issue. Data were obtained via an online survey.

To test the formulated hypotheses, we divided the sample into two regions – Adriatic and Continental Croatia. As Table S1 (all tables and figures are placed in the supplemental file) displays out of 376 participants in our sample, a significant majority, 68.4%, were from Continental Croatia. Regarding gender, the sample was almost evenly split between men and women, although females were slightly more represented at 56.1%. A bachelor’s degree is the predominant educational qualification among the participants (57.7%), followed by participants with master’s degrees at 12.8%. Most participants were employed in private organizations (58%), while 36.4% were in public administration. The average age of respondents was 40 years.

The results of a Multivariate Analyses of Variance (MANOVA) analysis (Table S2) indicated no significant differences between the Adriatic and Continental regions concerning Hofstede’s cultural dimensions: F (7.362) = 1.739, p ≤ .0005 (0.213), Wilk’s Λ = 0.974, partial η2 = 0.026. It can be stated that Croatia is a homogeneous country in cultural terms, thus confirming the first hypothesis. Additionally, the outputs of Table S3 confirm there are no significant differences between the regions concerning leader behavior preferences (WL = 0.974; p = .657). To evaluate the second hypothesis, we calculated the mean scores for cultural dimensions, as guided by the Value Survey Module 2008 (VSM08) Manual (Hofstede et al., 2008). Tables S4, S5, and Figure S1 display the results. In addition to aggregate scores for the country (Table S5), Table S4 presents mean scores for both regions. We utilized raw, uncentered data, which explains the negative values observed in certain dimensions in our sample. The presented results indicate that the second hypothesis can be accepted. The results provide a clear snapshot of how national cultural values in Croatia align with various dimensions measured by Hofstede’s model. Croatian society leans greatly towards individualism, but not completely extreme, meaning that autonomy and freedom are valued, and the focus is mainly on personal goals but also family-oriented. In line with this, results indicate that Croatian society leans toward indulgence, valuing life pleasure and freedom of expression. Further, the Power Distance Index score indicates moderate power distance, meaning there is a certain hierarchy and respect for authority, but it is not strongly emphasized. People value a balance between individual freedom and respect for hierarchy. A score of 23.92 on the Masculinity index suggests that society leans toward feminine values, focusing on cooperation and quality of life, as opposed to competitiveness. The score for Monumentalism points to a respect for tradition and history. In line with this, results indicate that Croatia places more emphasis on short-term goals but tends to balance them with long-term goals and traditional values. The most surprising results are for the low index of Uncertainty Avoidance. Negative value indicates a low tendency to avoid uncertainty in Croatian society, implying an openness to risk, changes, and challenges and a low fear of unknown situations.

To assess the third hypothesis, we determined the average scores of both the cultural value dimensions and the preferred leader behavior dimensions and conducted a correlation analysis. Table S6 presents the correlation matrix. The results revealed several significant, positive, and negative correlations between observed dimensions. The largest correlation coefficient (r = .212; p ≤ .05) indicates that correlations are of weak intensity. The significant yet low correlation might be due to the large sample size used in the study. Ljubica et al. (2022) noted that in the research methods literature, significant but low correlations in larger samples are often viewed as consistent, trustworthy, and less likely to be coincidental. Specifically, the Power Distance and the Indulgence exhibit the highest number of significant correlations with leadership behavior dimensions. The most pronounced positive correlation, although weak, is found between the Power Distance and Initiation of Structure (r = .212; p ≤ .01). Conversely, Uncertainty Avoidance negatively correlates with three preferred leadership behaviors: Demand Reconciliation, Tolerance of Uncertainty, and Tolerance of Freedom. Moreover, Monumentalism also has a single statistical negative correlation with Tolerance of Freedom, verified by a correlation coefficient of r = −0.113. Additionally, when considering sample characteristics, a significant positive correlation was obtained just between Age (r = .137; p ≤ .05) and Production Emphasis leadership behavior dimension, as well as a significant negative correlation for the Number of Employees in the Organization and Demand Reconciliation (r = − .135; p ≤ .01) and Consideration (r = − .115; p ≤ .01).

Discussion and Limitations

This paper was directed toward understanding and clarifying cultural value dimensions and preferences for leadership behavior within Croatian business contexts. The empirical study suggests that Croatia has unique (homogeneous) cultural aspects that also make this research relevant. It also reveals that Croatia expresses a pronounced inclination toward individualism and personal freedom. This can be understood within Hofstede’s cultural dimensions as a leaning towards autonomy, self-expression, and individual success rather than group-based decision-making. This is in line with Podrug et al. (2014, p. 826) research stating that in the 1970s, Croatian society was oriented towards collectivism, while nowadays, it shift towards individualism. Although indications from some earlier, although somewhat dated research literature suggested that there was a high fear of uncertainty and risk avoidance in the territory of Croatia (Švarc et al., 2019), the results of this study in that regard are surprising and indicate that there is now a low inclination towards avoiding uncertainty in Croatia, as well as greater openness to change. It would certainly be useful to explore this dimension further and determine to what extent this result has been influenced by the awareness of the new younger generations towards change, as well as the fact that various disruptions are occurring on a global scale on an ongoing basis (e.g., the COVID crisis, the war in Europe, digital transformation, economic shocks).

Statistically significant correlations between cultural value dimensions and leadership behaviors in Croatia provide valuable insights into how national culture influences leadership behaviors and practices in that specific context. Learning more about the relationship between leadership behaviors and Hofstede’s cultural dimensions can help understand the interplay between those two aspects. However, there is a lack of studies on this topic, so there is a need for more research globally and in Croatia. The positive correlation between the Power Distance and Initiation of Structure suggests that in Croatian organizations, leaders who set clear roles, expectations, and structures are more accepted or prevalent in environments that recognize and maintain hierarchical distinctions. This propensity might be an echo of historical, societal frameworks. The negative correlations between Uncertainty Avoidance and leadership behaviors like Demand Reconciliation and Tolerance of Freedom imply that leaders who promote reconciliation, exhibit flexibility, and provide autonomy might not be preferred or may face challenges. This can be related to Croatia’s complex history and the periods of conflict and instability. It might be worth considering the generational perspectives within Croatian society. While older generations might lean more towards established hierarchies and traditional values, younger Croatians, exposed to global influences and digital transformations, might lean towards more modern leadership behaviors, especially those promoting tolerance and freedom. Finally, in the line of transparency, the authors addressed the sample size as a potential limitation that could affect the reliability of the results. The relatively small sample (376 responses) that the authors used for representing the entire population could affect the generalizability of the findings and the statistical power of the analysis.

Concluding Remarks

In this paper, we discuss why leadership and national culture are important in business practice in Croatia; we explain the dimensions of national culture and outline correlations between cultural value dimensions and preferences for leader behavior. The empirical study suggests that Croatia has unique (homogeneous) cultural aspects that also make this research relevant. It also reveals that Croatia expresses a pronounced inclination toward individualism and personal freedom.

Providing a synthesis of existing research in Croatia regarding theoretical foundation and empirical findings, this research delivers new findings and highlights their relationships with the existing studies. Some significant relationships between cultural value dimensions and preferences for leadership behaviors were found. To truly grasp these correlations and their implications, it would be invaluable to contextualize them further with qualitative research, getting insights directly from Croatian business leaders and employees.

Knowledge from this empirical research can be used to improve leadership behaviors and business practices in the Croatia. However, the authors expect the broader significance of the study in terms of cross-cultural management and its relevance beyond Croatia. The findings of this research provide a foundation for future directions that can focus on more specific aspects of the relationship between cultural values and leadership behaviors within the Croatian business context. The authors recognize several recommendations for future research driven by the results. As was indicated in the paper, there is a gap in cultural values and preferences for leadership behaviors so that future research can conduct extensive generational studies. Also, because of economic growth and historical circumstances, there was a shift from Collectivism to Individualism. Future research could be conducted to trace the changes in cultural values over time and their impact on leadership preferences using longitudinal studies. Future research could also include comparative analyses with neighboring countries and other European nations to gain a broader understanding of the Croatian context. Also, one of the future research questions should be aligned with the fact that leaders adapt their behaviors in correlation with the individualistic tendencies in the culture.

Despite the significance of this topic, there’s a noticeable gap in research, underscoring the need for more comprehensive studies internationally, and within Croatia. Investigating variations in culture and their impact on leadership behavior could provide a better understanding of business practices in Croatia.

Supplemental Material