The Role of Adaptive Leadership in Managing Economic Crises and Maintaining Employee Welfare in Multinational Companies

Abstract

This study explores the role of adaptive leadership in managing economic crises and maintaining employee welfare in multinational companies. In times of economic uncertainty, adaptive leadership is crucial for navigating organizational challenges, ensuring business continuity, and supporting the well-being of employees. Through a comprehensive literature review, the research identifies key themes including the flexibility of leadership styles, transparent communication, and the prioritization of employee support. The study highlights the importance of adaptive leaders who can quickly respond to market changes, maintain employee engagement through challenging times, and implement strategies that balance financial sustainability with employee welfare. Key challenges in applying adaptive leadership during economic crises include digital infrastructure limitations, low digital literacy, and inconsistent regulatory frameworks. The findings suggest that multinational companies can enhance resilience and employee satisfaction by focusing on flexible decision-making, fostering a supportive organizational culture, and investing in employee development programs. The research contributes actionable insights into how adaptive leadership can mitigate the impacts of economic crises and ensure long-term organizational sustainability.