Economic assumptions and economic context: Implications for the study of leadership

Separated by longstanding differences, mainstream leadership scholarship and economics have rarely conversed. In this paper, we contribute to the emerging conversation between the two fields by (1) summarizing how economic assumptions about leadership may broadly inform leadership scholarship, and (2) offering a framework for conceptualizing the economic context in which leaders operate. We argue that inclusion of economic context in models of leadership antecedents, processes and outcomes is likely to offer rich insights for leadership selection, behavior, performance outcomes, and evaluation. We review recent studies that integrate economics and leadership and further consider how economic approaches both inform and refine current areas of interest to leadership scholars (e.g., shared leadership and values-based ethical, servant, and authentic approaches) and point to new pathways of focus in mainstream leadership (e.g., leader discretion).