Leadership,Passion and Performance: A Study of Job Creation Projects during the Recession

In the aftermath of the economic recession that began in 2008, governmental bodies have been assisting private sector companies to create jobs. To increase financial performance under greater economic uncertainty and liquidity constraints, this study proposes that a leader's type of passion could explain why some project leaders who receive government funding succeed in creating jobs whereas others do not. Harmonious passion, a voluntary but not overpowering urge to engage in an activity, leads to higher job creation, especially under greater environmental complexity. Obsessive passion, an uncontrollable urge to engage in an activity, also leads to higher job creation, particularly under increasing environmental dynamism. Using survey data from 105 European Union projects and archival data on job creation from the EU funding agency, we find support for the proposed framework. The findings provide a basis for acknowledging the relevance of a leader's passion for environmental adaptation.