Author(s):
1. Božidar Leković, The Faculty of Economics Subotica, University of Novi Sad, Serbia
2. Slobodan Marić, The Faculty of Economics Subotica, University of Novi Sad, Serbia

Abstract:
Entrepreneurial behavior is reflected exclusively in entrepreneurial projects/foundations of new enterprises by independent individuals/ independent entrepreneurs who, in appropriate circumstances, and their own or somebody else’s available powers, are ready to take risks in newly created circumstances. Increasing, dynamic and more often limited markets and competition create a powerful pressure on organizations enforcing them to continual growth and development as a basic condition to survive. Of course, the biggest potential for growth are innovations, therefore, innovation becomes a continual business need in the cited circumstances so participants can have necessary flexibility, competitiveness and adequate answers to changes. Circumstances considered as favorable to generate innovations within the organization are dominantly entrepreneurial because of their features, necessary creativity of active people and readiness of to take risk and they are strong enough to generate ‘something new’, as the most authors in this field define internal entrepreneurship. During analyzing motivators causing the appearance of internal entrepreneurship, we notice organizational context (psychological climate of organization) or management style, on the one side, while it comes from personal interests of internal entrepreneurs/employees, on the other side. According to past research, an entrepreneurial climate essential for awakening the individual entrepreneurial potential of the employees, i.e. innovativeness, risk taking and proactiveness, requires the following organizational factors to flourish: management support for new ideas and projects, participation in strategic decisions, tolerance of risk-taking, autonomy and resource allocations. The primary purpose of this research paper is to present an empirical study framed by the theory that task-oriented and relations-oriented leadership behaviors (or difernt leadeship style) are positively related to the employees’ perceptions of organizational climate. The study introduces the theoretical perspective and examines the relevant literature that supports the significance of leadership behavior and organizational climate. In the second part of the paper will be presented results of empirical research. Many autors identified leadership management behaviors as an emergent process that acts on both organizational climate and conditions for intrapreneurship. Organizational climate has been conceptualized as a mediator of the relationship between leadership style and organizational entrepreneurship.

Key words:
leadership style, organization climate, intrapreneurship

Thematic field:
Corporate and Strategic Entrepreneurship

Date of abstract submission:
20.11.2013.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies