Exploring the Key Factors Influencing Leadership Styles in Emerging Markets

Abstract

This study aims to explore the key factors influencing leadership styles in Tehran, Iran, within the context of an emerging market, focusing on personal traits, organizational culture, and external market forces. A qualitative research design was employed, utilizing semi-structured interviews with 19 leaders from various sectors in Tehran. Data were collected until theoretical saturation was reached, and NVivo software was used for data analysis. The participants represented a mix of male and female leaders with varying levels of experience and organizational contexts, ranging from the public to private sectors. The findings revealed that transformational leadership was the dominant style, particularly in organizations with a collaborative culture. Leaders with high emotional intelligence and self-awareness were more likely to adopt transformational leadership, while transactional leadership was prevalent in more hierarchical organizations. Organizational culture, availability of resources, and external market forces such as economic instability and political challenges were significant factors influencing leadership behaviors. External factors such as competition and market conditions also shaped how leaders in Tehran adapted their leadership styles to navigate complex environments. The study concludes that leadership styles in Tehran are influenced by a complex interplay of personal traits, organizational culture, and external market forces. While transformational leadership is common, leaders in more hierarchical or resource-constrained organizations tend to adopt transactional leadership. The study emphasizes the need for leadership development programs that enhance emotional intelligence and adaptability, especially in dynamic and volatile environments like emerging markets.