The Relationship between Contemporary Holacratic Models of Management and Company Performance: Evidence from Global Corporations in the World

Objective – This paper explores how global corporations apply contemporary approaches in management known as holacracy, and its impact on company performance. The paper argues that the number of corporations with an incorporated model of holacracy is growing and that it leads to an increase of employee's creativity and engagement, which directly affect a companys' performance. Furthermore, the study sheds light on broadening the theoretical link between holacratic management models and company performance in the context of global corporations at the level of internationalization. Methodology/Technique – The study provides evidence from over fifty selected worldwide companies for the period between 2014 and 2016. The data has been collected from annual reports and other secondary based sources and consists of companies possessing features of holacracy, which is one of the phenomena of management in the twenty-first century. In this paper, empirical data has been operationalized and several OLS regression models have been employed, in order to discover the link between modern management models and firm performance. Findings – The paper's findings outline the fact that holacracy positively affects a companies' performance and that the number of global companies using holacratic models is growing. Novelty – The study suggests that holacratic management models are connected to company success and performance through breakthrough innovative approaches in the context of employee communication and employee satisfaction, as a step-by-step approach that allows organizations to change gradually. Type of Paper: Empirical.