Advancing Sustainability Through Democratic Leadership: Effects on Job Satisfaction and Job Performance of Knowledge Workers

Abstract

The dynamic development of the digital economy, accompanied by changes in the employment structure and the rise in the knowledge workforce, has led to growing interest in the concept of democratic leadership as a foundation for organisational sustainable development. Highly skilled knowledge workers seek to participate in decision-making processes, value autonomy, and expect their work to provide satisfaction and a sense of fulfilment. The transition towards sustainable development requires a new approach by leaders in managing knowledge workers. This paper presents the results of a study aimed at identifying the relationships between democratic leadership style, job satisfaction, and performance of knowledge workers. These goals are achieved through the analysis of a survey of 396 knowledge workers whose work involved the extensive use of IT in Polish companies. Structural equation modelling is used to analyse the survey data. The results indicate that the democratic leadership style has a positive effect on job satisfaction, which in turn positively influences employee job performance. The analysis further reveals that job satisfaction mediates the relationship between democratic leadership and employee performance. The findings are discussed in the context of the leadership challenges associated with sustainable organisational development in the digital economy.