Strategic Leadership across Cultures: The GLOBE Study of CEO Leadership Behavior and Effectiveness in 24 Countries
Publication Year: 2014
Subject: Cross-Cultural Leadership
Strategic Leadership: The GLOBE Study of CEO Leadership Behavior and Effectiveness Across Cultures is the third volume in a three-part series showcasing the multinational, multi-year, multi-phase research undertaken by the GLOBE team.
- Front Matter
- Back Matter
- Subject Index
- Chapter 1: Societal Culture and Leadership: GLOBE History, Theory, and Summary of Previous Findings
- Chapter 2: Selective Review of the Literature on Culture, Leadership, and Upper Echelon Theory
- Chapter 3: Rationale, Theoretical Framework, Hypotheses, Research Design, and Snapshots of Findings
- Chapter 4: Research Methodology and Design
- Chapter 5: Strategy for Measuring Constructs and Testing Relationships
- Chapter 6: Psychometric Evidence for Leadership and Outcome Constructs
- Chapter 7: CEO Leadership Behavior Across Cultures: The Linkage with Cultural Values and Culturally Endorsed Implicit Leadership Theory
- Chapter 8: Leadership Effectiveness Across Cultures: The Linkage with CEO Behaviors
- Chapter 9: CEO Leadership Effectiveness Across Cultures: The Effect of Fit and Behavior
- Chapter 10: CEO Leadership Effectiveness Across Cultures: Superior and Inferior CEOs
- Chapter 11: Conclusions, Implications, and Future Research
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Library of Congress Cataloging-in-Publication Data
House, Robert J.
Strategic leadership across cultures: the globe study of CEO leadership behavior and effectiveness in 24 countries / Robert J. House, University of Pennsylvania, Peter W. Dorfman, New Mexico State University, Mansour Javidan, Thunderbird University, Paul J. Hanges, University of Maryland, Mary F. Sully de Luque, Thunderbird School of Global Management.
Includes bibliographical references and index.
ISBN 978-1-4129-9594-8 (hardcover: alk. paper)
1. Leadership—Cross-cultural studies. 2. Chief executive officers— Cross-cultural studies. 3. Strategic planning—Cross-cultural studies. 4. Organizational behavior—Cross-cultural studies. I. Global Leadership and Organizational Behavior Effectiveness Research Program. II. Title.
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Being asked to write a foreword to the GLOBE project's third book gives me the rare opportunity to fully appreciate how “ancient” I am in the field of cross-cultural comparative management and how my longitudinal view of the subject may benefit this endeavor. My “review” of cross-cultural organizational psychology and management is not a technical one. For me, this is an emotional journey—seeing, feeling, and influencing the progression of the field since its embryonic stage in the late 1960s. Working alongside, sometimes collaboratively and at other times argumentatively, with pioneering contributors such as Bernie Bass, Harry Triandis, and Geert Hofstede I am in awe as I witness how researchers and practitioners conjoined their studies into a major and highly pertinent discipline.
Many readers will probably find it surprising that Comparative and International Management courses in MBA programs in the United States were only endorsed by AACSB around 1985. Indeed, there was only one textbook available at the time—I know because it so happened that I wrote it (Ronen, 1986).
As pointed out by the authors of this volume, the field was characterized by scarcity of data at its early stages, experiencing a dramatic change only in the past two decades or so. Large multinational studies are expensive, cumbersome, and characterized by a myriad of both technical and conceptual problems (e.g., language barrier, back translation, the cultural outlook of investigators vs. respondents, variance among subjects, organizations, ownership, and so on). It is a small miracle that such a project can be completed in a timely manner, as planned, and with comprehensibly intelligent results. In itself, this merits a big round of applause for the GLOBE researchers—both leaders and other team members. While potentially intimidating, the GLOBE success should serve as inspiration to new (or old) scholars in the field.
The historical unfolding of the field thus reflects the true magnitude of the contribution of the GLOBE project to comparative and cross-cultural management. The scarcity of available comparative field documentation was acutely felt. For years, we had but one source of data. Indeed, many significant multicountry comparative publications (e.g., Hofstede, 1976, 1980; Ronen & Kraut, 1977; Sirota & Greenwood, 1971) have all relied [Page xiv]on the international survey data that was collected within a single multinational corporation (MNC).
The 1980s were a period of growing cultural awareness. Cross-cultural managerial training tended to be hands on, in expatriate contexts. Fueled by the increasing share of foreign operations (and revenues) of U.S. and European MNCs, cross-cultural training manuals, courses, and seminars proliferated the management field. Not only was data scarce but so was theoretical reasoning. I recall the symposium, organized by Peter Dorfman and myself at the annual meeting of the Academy of Management in 1991, in which we assembled recognized leaders in the field to speculate to what extent prevailing theories would hold in different cultural settings. So little did we know, even then, about leadership in different cultures. And where such evidence had accumulated, it was often limited to the comparison of just a few single countries.
Advances in communication sciences and new statistical techniques encouraged cooperation among researchers, increased the volume of relevant grants, and enabled a growing body of multicountry comparative studies. Anecdotal evidence as well as scientific publications reporting cross-cultural employee and manager attitudes and behaviors have (and often still do) attributed observed differences to the mere fact that the compared samples came from different societies, countries, or cultures. The findings were interesting and challenging, and at times even useful in terms of practical adaptation to the “foreign” cultures. However, more comprehensive causal models were still lacking. Not surprisingly, the real transformation in scientific rigor occurred when rather than associating the cross-cultural national differences in work attitude and behavior to the mere origin of the sample— that is, the country or geographic zone—scientifically anchored causes were required as explanatory variables.
One of Hofstede's main achievements and thus influence was indeed his pioneering contribution to this challenge. He showed that data retrieved from employees and managers in a large number of countries (subsidiaries) could be analyzed to provide insights into cultural values that could predict leaders' and employees' attitudes and behaviors. This legacy and subsequent consolidation of the field during the 1980s in both the United States and Europe as well as the wealth of periodicals reporting cross-cultural studies in psychology, organizational behavior, and management created fertile grounds for creative visionaries. When Bob House and his colleagues Peter Dorfman, Mansour Javidan, and Paul Hanges started to develop and design this monumental research project more than two decades ago, I was overwhelmed by the breadth of their vision, their innovative theoretical conceptualization, and the scientific rigor they embraced in their planned research.
It was later that the extent of their leadership became fully apparent, as they led the project and coordinated the work of the country co-investigators (CCIs). The monumental effort and result of the collaboration of over 250 CCIs from all populated continents has been an unprecedented research [Page xv]project. I was fortunate enough to see the project unfold from a short distance, as I was asked to be a discussant at some of the teams' symposia at annual meetings of the Academy of Management. I shared from afar the team's progress and excitement—sometimes mixed with envy, sometimes with frustration but always with sheer admiration.
The 20-year-long Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program set the goal of empirically determining the role of culture in leadership behavior and effectiveness. It contributed to building evidence-based managerial and leadership theories and practices. The team's focus in the 1990s was to develop a method by which to define and measure national cultural practices (i.e., “as is”) and values (i.e., “should be”) as described by employees in a variety of organizational employment and simultaneously to identify which leadership attributes are consistent with and are likely to succeed in these cultures. And indeed, the results demonstrated that societal culture values predicted leadership expectations as endorsed in these societies. This was an extension of the hypothesis developed by House, Wright, and Aditya (1997), known as the cultural congruence hypothesis.
To date, the scientific harvest has been immense and its impact on leadership scholarly publications enormous. With two award-winning massive published volumes behind them, delineating leadership in culture-based organizational context among 62 societies (House, Hanges, Javidan, Dorfman, & Gupta 2004) and portraying an in-depth profile of 27 European societies (Chhokar, Brodbeck, & House 2007), and more recently, the special issue of the Journal of World Business (2012) that was devoted entirely to global issues in leadership that emerged from the project (in addition to numerous other articles), the GLOBE project has been a rich source for cross-cultural data mining.
The present volume follows the tradition of the previous stages and offers a document that is based on sound theoretical models and that provides practical insights to executives and researchers alike. It endeavors to analyze managerial attributes, styles, behavior, and outcomes of senior executives and CEOs in terms of their strategic leadership paradigms and behavior effectiveness across cultures. The goal was to assess whether such leadership behaviors are directly influenced by cultural dimensions or whether culture indirectly influences leadership through leadership expectations. Relating culture values and practices to leadership attributes is an achievement that contributes to the lean body of such information to date. Of 112 leadership attributes that were isolated cross-culturally in GLOBE 2004, the researchers found 22 leadership attributes to be universally desirable, 8 leadership attributes were found to be universally undesirable, and 35 leadership attributes are culturally contingent (desirable in some, undesirable in others). Mapping out these attributes into behavioral items in the current volume, I am certain the current volume opens a new vista in cross-cultural leadership research.
[Page xvi]In this latest phase of the GLOBE Project, researchers tested relationships between observed leadership behaviors of CEOs, societal leadership expectations (i.e., culturally endorsed implicit leadership theory [CLT] attributes), as well as between leadership and organization effectiveness. While rigorous empirical research on CEOs is in its infancy, the focus has so far been on outcomes rather than drivers of CEO behavior. Surveying over 5,000 senior executives who directly report to over 1,000 CEOs in 1,015 organizations in 24 countries, the current volume finds that cultural values do not directly predict leadership behavior. Instead, they drive the cultural expectations that in turn drive leader behaviors. In other words, the researchers found that leaders are perceived to be effective if their behaviors are congruent with societal expectations. While the achievement is outstanding, this finding leaves room for future research: How can CEOs change the status quo if they are successful only when they enact behaviors that are consistent with cultural expectations? We rely on CEOs, top management teams (TMTs), and upper echelon executives to change and reshape organizational realities, yet in effect, the current volume shows that they are influenced by their own societal culture and its value-based expectations concerning adequate leadership etiquette.
Treading where others have not (or hardly) gone before, I must agree with the authors of this volume that before this phase of the GLOBE project, there simply wasn't enough data to determine if CEO Charismatic leadership is universally effective or varies in importance and impact across cultures. Nor did we know if the same set of leadership behaviors can capture the essence of Charismatic leadership. Their results point to the importance of leaders who are visionary, performance oriented, inspirational, and decisive and who personify high levels of integrity. While Charismatic leadership may be an obviously desired behavior, the researchers were surprised that Team-Oriented and Humane-Oriented leadership were also deemed important. And yet, one wonders if this is indeed such a surprising finding considering the globalizing, computerizing virtual world in which networks and the human interrelatedness are increasingly endorsed. In fact, the authors report that among earlier GLOBE (2004) findings, the Humane-Oriented leadership expectations (i.e., CLTs) were rated as being only slightly important for outstanding leadership. However, the current empirical results found that Humane-Oriented leadership behavior has a huge impact on TMT Dedication and is the most predictive of all leadership behaviors for TMT Commitment. These findings are important not only by themselves but also in pointing to an emergent lacuna in which organizational leadership and behavior could be tied to the growing body of business-related networks.
Just as leadership is a new word in the dictionary, although the linguistic concept has been around for at least 5,000 years, one may also say that cross-cultural variation in the field of organizational behavior and industrial psychology is a relatively young arena—just about 50 years old, struggling in a [Page xvii]long tradition of scientific research. Dealing with slow-to-change cultural variation, we can only hope that we will be able to “unpack the black box of culture” as it impacts leadership and leadership effectiveness across cultures. With cultural clustering related to organizational behavior, values, and attitudes remaining nearly unchanged throughout four decades of study (Ronen & Shenkar, 2010), it seems that the chances are in our favor.
The current volume has set out to understand and empirically measure the nature and drivers of CEO leadership behavior, the drivers of CEO leadership effectiveness, the relationship between CEO leadership behavior and effectiveness, and the impact of the new fit index between CEO leadership behavior with CLTs as well as assess the leadership distinctions between the high-performing CEOs (i.e., superior), and underperforming CEOs (i.e., inferior). These are big promises—all of which are competently and skillfully achieved from design to analysis, to synthesis, to integration, and conclusion. Notwithstanding, the cultural experience is still very much driven by the Western–American worldview (the Europeans were rightfully skeptical of models developed in North America), and much is clearly desired to further develop leadership concepts from other cultural perspectives in order for us to truly appreciate the notion of leadership in all its cultural colors.
Walking the walk, the leading researchers of the GLOBE project should be recognized for their own cultural colors and commended for their openness, positive collaboration, and information transparency that are manifested in this volume. Based on personal experience and encounter with a myriad of opposing attitudes in the field, I feel confident to assume that these traits greatly contributed to the overall success of the project and the ability to extract such wealth of in-depth valuable cross-cultural information over the span of two decades or more.
Writing the foreword of a massive volume that reports yet another stage of the GLOBE monumental multinational research project, and probably the ultimate pinnacle with respect to implications of cross-cultural comparison of CEOs, is to me personally not only a meaningful professional experience but also an encompassing process. It began almost half a century ago when very few of our colleagues were interested in or were touched by the excitement of international research and theoretical applications. As research in the field continues to evolve, I can only hope for additional active participation and involvement on my part. In the meanwhile, I am sufficiently content to be an official, albeit honorary, part of the GLOBE team.[Page xviii]
Amassive project like GLOBE that spans over two decades needs the support of many individuals to succeed. The latest phase of GLOBE, like its previous phases, was possible only with the generous support and hard work of large numbers of individuals. We owe a debt of gratitude to our many colleagues all over the world who collected data in their countries. They are the GLOBE country co-investigators (CCIs) who worked very hard to collect data from over 1,000 CEOs in over 1,000 corporations and over 5,000 senior executives in 24 countries. We are also thankful to those CEOs and senior executives who agreed to participate in this unique research project. In addition, four individuals deserve special mention for their contribution to this book. Gary Yukl's careful review of the manuscript as it was being crafted illuminated areas that could be clarified, provided new insights for our findings and offered important suggestions for future research. The GLOBE project was helped immeasurably by Juliet Aiken who worked tirelessly for many years conducting complex statistical analyses. Renee Brown helped with many aspects of manuscript preparation and editing. Finally, Megan Markanich, our SAGE copy editor, provided sage editing and advice under very tight deadlines. We sincerely thank all of these people for their dedication and expertise in contributing to this latest GLOBE project.
We especially thank our spouses—Sharon Dorfman, Soheila Yazdanbakhsh, Carol Hanges, and Edgard Luque—and dedicate this book to them. They have been supportive, understanding, patient, and loving beyond anything we could ask for. During the past 10 years, we spent a huge number of days and weeks meeting away from home and being totally consumed with our work on this book. All along, our spouses patiently and lovingly encouraged us. This book would not have been possible without them at our sides. Also, we'd like to especially thank, and dedicate this book to, Tessa House, who cared so dearly and lovingly for our friend and colleague Bob House during his last years of ill health. We have the utmost admiration for Tessa as a spouse and a human being. She is an inspiration to us all.[Page xx]
Acknowledgments[Page xxi]Our Fantastic Journey with Robert J. House and our Farewell to a Dear Colleague
We write this book with much joy and also sadness. Bob House is not with us any longer, so we felt a need to write this brief note to bring closure to an always wonderful and sometimes challenging long-running set of professional relationships and friendships.
This book closes a very important chapter in the 20-year GLOBE research program and brings to an end Bob House's impressive publication record and the countless hours, days, weeks, and months of individual and collective work by us and many of our GLOBE colleagues.
It was in 1991 that Bob House contacted Mansour, Peter, and Paul individually to discuss his ideas about a new research program. Very simply put, he was curious about whether or not leadership means the same thing in different countries and whether country culture impacts people's notion of leadership. Our conversations were intriguing and energizing. Having a research conversation with Bob was an exciting experience. We started to get more and more serious about the idea. Bob started to draft the proposals for research funding. Each one of us started to do a variety of things. Our first milestone was the first gathering of the GLOBE team of researchers, sponsored by Mansour Javidan, at University of Calgary in Canada in 1994. Three of us, Peter, Mansour, and Paul plus several other colleagues worked very closely with Bob to collect and manage the data from over 60 countries. Our research has produced many award-winning publications. Bob's intellectual and scholarly contributions were always invigorating and intriguing. We miss our regular weeklong meetings with Bob at Wharton.
Upon completion of the data collection for Phase 2 of GLOBE, in the late 1990s, Bob, Paul, Mansour, and Peter had to divide the work of writing the first book, which we all refer to as the “blue book,” published by SAGE in 2004. Due to health issues and also the massive amount of work, Bob played more of an oversight role. Paul Hanges conducted all the statistical analyses throughout the project. He also wrote the relevant chapters of [Page xxii]the blue book regarding research design and statistical analyses. Mansour Javidan managed the relationships with CCIs in many countries and worked closely with the authors of the various chapters on dimensions of country cultures. He also wrote several of the chapters in the blue book. Peter Dorf-man wrote the main chapters related to culture and leadership and worked with other authors (including Paul Hanges) of the remaining chapters on leadership. While Bob was not directly involved in writing the chapters, he was always ready to help. We spent hundreds of hours on the phone with Bob, and he always had a funny joke to tell before we started with the serious topics. Our work culminated in a weeklong meeting in Toronto to go over all the chapters and put the finishing touches.
In the late 1990s and early 2000, Bob, Mansour, Paul, and Peter started to discuss the next steps for GLOBE. As always, Bob did not lack ideas. He started talking about a CEO study where we would test some of the findings of the blue book. The blue book showed us what managers in different societies expect from their leaders. The next logical question for us was the following: Do effective leaders act according to the expectations in their societies? Bob was becoming increasingly interested in this question. Three of us (Mansour, Paul and Peter) were quite busy with the writing of the blue book, so we were not as focused on this interesting question as Bob was. But any chance we had, we would always enjoy a conversation with Bob about this question and how to test it. As part of our division of labor, Bob focused increasingly on drafting the proposal for the next phase of the GLOBE project, the CEO study, as its principal investigator (PI). Peter, Paul, and Mansour agreed to be co-principal investigators with the understanding that the first priority for the three of us was to finish the blue book.
Bob developed the framework and submitted a proposal for funding that was successful and officially started Phase 3 of GLOBE. Mary Sully de Luque was a postdoctoral fellow working with Bob and agreed to manage the data collection process for this research. She spent countless hours working with tens of CCIs in over 20 countries and managed the GLOBE database throughout the CEO project.
As co-principal investigators, we were focused on the blue book. Once the blue book was successfully launched, we joined Bob and Mary to complete this third phase. Due to serious health issues, Bob was unable to join our discussions of the next steps. Mary handed the collected database to Paul and Peter, and they worked closely to design new research methodologies for the required analyses. Paul focused on the statistical work needed to produce the expected results. Peter agreed to be the project manager for the design and writing of this book. Over the past 2 years, we have spent many 4-day meetings at University of Maryland and Thunderbird School of Global Management. We have worked closely as a group and as individuals to write this book. We have spent countless hours reviewing the statistical results and their implications and on the [Page xxiii]design of the chapters of the book. Each chapter is written primarily by one individual and reviewed numerous times by at least one coauthor.
As always, we have had much joy in these discussions, but we missed Bob. His intellectual rigor and wit were sorely missed. We wish he could be with us.
About the Authors
List of Country Co-investigators1[Page xxix]
Adetoun, Bolanle Akande, Economic Community of West African States Executive Secretariat (Nigeria)
Alas, Ruth, Estonia Business School (Estonia)
Antino, Mirko, Universidad Complutense de Madrid (Spain)
Barrasa, Angel, University of Zaragoza (Spain)
Bhal, Kanika T., Indian Institute of Technology, Delhi (India)
Bobina, Mariya, University of Iowa (Russia)
Bodur, Muzaffer, Boğaziçi University (Turkey)
Bostjancic, Eva, University of Ljubljana (Slovenia)
Bourantas, Dimitris, Athens University of Economics and Business (Greece)
Catana, Alexandru, Technical University of Cluj-Napoca (Romania)
Catana, Doina, Technical University of Cluj-Napoca (Romania)
Chen, Yi-Jung, National Kaoshiung University of Applied Science (Taiwan)
Debbarma, Sukhendu, Tripura University (India)
de Hoogh, Annebel H. B., University of Amsterdam (Netherlands)
den Hartog, Deanne N., University of Amsterdam (Netherlands)
DeVries, Reinout, Vrije University (South Pacific: Fiji, Solomon Islands, Tonga, Vanuatu)
[Page xxx]Dorfman, Peter, New Mexico State University (Mexico)
Duarte, Roberto Gonzalez, Federal University of Minas Gerais (Brazil)
Dzuvichu, Rosemary R., Nagaland University (India)
Evcimen, Idil, Istanbul Technical University (Turkey)
Fenn, Mathai, The Talk Shop, Bangalore (India)
Fischman, David, Fischman and Associates (Peru)
Fu, Ping Ping, Chinese University of Hong Kong (China)
Garagozov, Rauf, Center for Strategic Studies under the President of the Republic of Azerbaijan (Azerbaijan)
Gil Rodríguez, Francisco, Universidad Complutense de Madrid (Spain)
Grachev, Mikhail, Western Illinois University (Russia)
Gupta, Vipin, California State University—San Bernadino (India)
Howell, Jon, New Mexico State University (Mexico)
Jone, Kuen-Yung, Kaohsiung Medical University (Taiwan)
Kabasakal, Hayat, Boğaziçi University (Turkey)
Khan, Mohamed Basheer Ahmed, Pondicherry University (India)
Kharbihih, Hasina, Impulse NGO Network, Shillong (India)
Konrad, Edvard, University of Ljubljana (Slovenia)
Koopman, P. L., Vrije University (Netherlands)
Lang, Rainhart, Chemnitz University of Technology (Germany)
Lin, Cheng-Chen, National Pingtung University of Science & Technology (Taiwan)
Liu, Jun, Renmin University (China)
Martinez, Boris, Universidad Francisco Marroquín (Guatemala)
Mathew, Mary, Indian Institute of Science, Bangalore (India)
Munley, Almarie E., Regent University (Guatemala)
Ortiz, José Agustín, Universidad Peruana de Ciencias Aplicadas—UPC (Peru)
Palin, Gary, Elon University (United States)
Papalexandris, Nancy, Athens University of Economics & Business (Greece)
Paquin, Anthony R., Western Kentucky University (South Pacific: Fiji, Solomon Islands, Tonga, Vanuatu)
Pathak, R. D., University of the South Pacific (South Pacific: Fiji, Solomon Islands, Tonga, Vanuatu)
[Page xxxi]Peng, T. K., I-Shou University (Taiwan)
Prieto, Leonel, Texas A&M International University (Mexico)
Quigley, Narda, Villanova University (United States)
Rajasekar, James, Sultan Qaboos University (India)
Reddy, Lokanandha Irala, KKC Group of Institutions, Puttur (India)
Reddy, S. Pratap, Dhruva College (India)
Rodríguez Muñoz, Alfredo (Spain)
Rohmetra, Neelu, Jammu University (India)
Saran, Pankaj, EMPI Business School (India)
Sharma, Dinesh, Indian Institute of Technology Bombay (India)
Shrivastava, Mrinalini, United Nations, Guinea Bissau (India)
Srinivas, E.S., Indian School of Business, Hyderabad (India)
Steyrer, Johannes, Vienna University of Economics & Business (Austria)
Sully de Luque, Mary F., Thunderbird, School of Global Management (United States)
Tanure, Betania, Pontificia 0Universidade Católica—PUC-MG (Brazil)
Thierry, Henk, Tilburg University (Netherlands)
Thomas, Fr. Vattathara M., Don Bosco Institute, Guwahati (India)
Tuulik, Krista, Estonian Entrepreneurship University of Applied Sciences (Estonia)
van den Berg, Peter T., Tilburg University (Netherlands)
Waldman, David, Arizona State University (United States)
Washburn, Nathan, Thunderbird, School of Global Management (United States)
Wilderom, Celeste P. M., University of Twente (Netherlands)
Wollan, Melody L., Eastern Illinois University (United States)[Page xxxii]
: GLOBE Cultural Dimensions[Page 367]
Performance Orientation: This dimension is the degree to which a collective encourages and rewards (and should encourage and reward) group members for performance improvement and excellence.
Assertiveness: This dimension is the degree to which individuals are (and should be) assertive, confrontational, and aggressive in their relationship with others.
Future Orientation: This dimension is the extent to which individuals engage (and should engage) in future-oriented behaviors such as planning, investing in the future, and delaying gratification.
Humane Orientation: This dimension is the degree to which a collective encourages and rewards (and should encourage and reward) individuals for being fair, altruistic, generous, caring, and kind to others.
Institutional Collectivism: This dimension is the degree to which organizational and societal institutional practices encourage and reward (and should encourage and reward) collective distribution of resources and collective action.
In-Group Collectivism: This dimension is the degree to which individuals express (and should express) pride, loyalty, and cohesiveness in their organizations or families.
Gender Egalitarianism: This dimension is the degree to which a collective minimizes (and should minimize) gender inequality.
Power Distance: This dimension is the degree to which members of a collective expect (and should expect) power to be distributed equally.
Uncertainty Avoidance: This dimension is the extent to which a society, organization, or group relies (and should rely) on social norms, rules, and procedures to alleviate unpredictability of future events. The greater the desire to avoid uncertainty, the more people seek orderliness, consistency, structure, formal procedures, and laws to cover situations in their daily lives.[Page 368]GLOBE Six Global Leadership Dimensions
Charismatic/Value-Based Leadership: Charismatic leaders inspire their followers with a desirable and realistic vision that is based on appropriate analysis and high performance expectations. They are viewed as sincere, decisive, and credible because of their integrity and willingness to sacrifice their own self-interest.
Team-Oriented Leadership: Team-oriented leaders are loyal to their teams and care for the welfare of their team members. They use their administrative and interpersonal skills to manage the team's internal dynamics and to create a cohesive working group.
Participative Leadership: Participative leaders believe that employees can contribute to decision making and should be engaged in the process of decision making and implementation. They also believe that debate, discussion, and disagreement are a natural part of good decision making and should not be suppressed.
Humane-Oriented Leadership: Humane-oriented leaders are unpretentious, show humility, and are reticent to boast. They are empathetic and likely to help and support team members in a humane manner by offering resources and other forms of assistance.
Autonomous Leadership: A newly defined leadership dimension. These leaders have extreme confidence in their own abilities and lack respect for others' abilities and ideas. They view themselves as unique and superior to others and as a result prefer to work independently and without collaboration with colleagues or direct reports.
Self-Protective Leadership: This newly defined leadership dimension refers to leaders who have a deep desire to succeed among a group of colleagues and direct reports who may act as competitors for the leaders' position and success. To protect themselves, these leaders defer to positions of power, hide information that might advantage potential competitors, follow rules and policies to avoid risk, and interact carefully with others to ensure they leave a positive impression.GLOBE Twenty-one Primary Leadership Dimensions (Grouped by the Six Global Leadership Dimensions)Charismatic/Value-Based Leadership
Visionary: This dimension describes leaders who clearly articulate his or her vision of the future and make plans and act based on future goals.
Inspirational: This dimension describes leaders who inspire others, increase morale of subordinates, and are energetic and confident.
[Page 369]Self-Sacrificial: This dimension indicates an ability to convince followers to invest their efforts in activities that do not have a high probability of success, to forgo their self-interest, and make personal sacrifices for the goal or vision.
Integrity: This dimension indicates a leader who is honest and trustworthy, keeps his or her word, and speaks and acts truthfully.
Decisive: This dimension indicates leaders who make decisions firmly, quickly, and logically and are insightful.
Performance oriented: This dimension describes leaders who set high goals, seek continuous improvement, and are excellence oriented for themselves and subordinates.Team-Oriented Leadership
Collaborative team orientation: This dimension indicates a leader who is concerned with the welfare of the group and is collaborative and loyal.
Team integrator: This dimension indicates a leader who gets members to work together and integrates people into a cohesive working unit to achieve group goals.
Diplomatic: This dimension describes leaders who are diplomatic and skilled at interpersonal relations.
Malevolent: This dimension reflects leaders who are dishonest, vindictive, and deceitful and act negatively toward others.
Administratively competent: This dimension reflects leaders who are administratively skilled and well organized. They can effectively coordinate and control activities of the team members.Participative Leadership
Participative: This dimension reflects leaders who share critical information with subordinates and give them a high degree of discretion to perform work.
Autocratic: This dimension indicates leaders who are dictatorial, do not tolerate disagreement, and expect unquestioning obedience of those who report to them (reverse scored in computations for the global Participative leadership dimension).Humane-Oriented Leadership
Modesty: This dimension reflects leaders who do not boast, are modest, and present themselves in a humble and unassuming manner.
Humane orientation: This dimension emphasizes empathy for others by giving time, money, resources, and assistance when needed. It reflects concern for followers' personal and group welfare.[Page 370]Autonomous Leadership
Autonomous: This dimension describes tendencies to act independently without relying on others, self-governing, and preferring to work and act separately from others.Self-Protective Leadership
Self-Centered: This dimension reflects a leader who is self-absorbed, is a loner, is aloof, and stands off from others.
Status conscious: This dimension reflects a consciousness of one's own and others' social position, holding an elitist belief that some individuals deserve more privileges than others. A status-conscious leader adjusts his or her style of leadership and communication according to the status of the individual(s) he or she is dealing with.
Internally competitive (formerly labeled conflict inducer): This dimension reflects the tendency to view colleagues as competitors and to conceal information due to a lack of willingness to work jointly with others.
Face-Saver: This leadership dimension reflects the tendency to ensure followers are not embarrassed or shamed. A face-saving leader maintains good relationships by refraining from making negative comments and instead uses metaphors and analogies.
Bureaucratic (formerly labeled procedural): This dimension emphasizes leaders who habitually follow established norms, rules, policies, procedures, and routines.GLOBE Culturally Contingent Leadership Dimensions (of the Twenty-One Primary Leadership Dimensions)
CEO Dependent VariablesInternally Oriented Outcome of Top Management Team Dedication: This Outcome Measure Combines the Measures of Effort, Commitment, and Team Solidarity
- Self-Sacrificial: This dimension indicates an ability to convince followers to invest their efforts in activities that do not have a high probability of success, to forgo their self-interest, and make personal sacrifices for the goal or vision.
- Status conscious: This dimension reflects a consciousness of one's own and others' social position, holding an elitist belief that some individuals deserve more privileges than others. A status-conscious leader adjusts his or her style of leadership and communication according to the status of the individual(s) he or she is dealing with.
- Internally competitive (formerly labeled conflict inducer): This dimension reflects the tendency to view colleagues as competitors and to conceal information due to a lack of willingness to work jointly with others.
- Face-Saver: This leadership dimension reflects the tendency to ensure followers are not embarrassed or shamed. A face-saving [Page 371]leader maintains good relationships by refraining from making negative comments and instead uses metaphors and analogies.
- Bureaucratic (formerly labeled procedural): This dimension emphasizes leaders who habitually follow established norms, rules, policies, procedures, and routines.
- Humane orientation: This dimension emphasizes empathy for others by giving time, money, resources, and assistance when needed. It reflects concern for followers' personal and group welfare.
- Autonomous: This dimension describes tendencies to act independently without relying on others, self-governing, and preferring to work and act separately from others.
Effort: This outcome variable reflects the level or amount of effort put forth by the TMT member. Respondents assess their agreement (or disagreement) with a set of questions, indicating that they put forth a very high level of effort, effort beyond expectations, and effort beyond the call of duty.
Commitment: This outcome variable indicates the level of commitment of the TMT member. Respondents assess their agreement (or disagreement) with a set of questions indicating commitment to the organization by indicating they expect to have a continuing employment relationship and are optimistic about their future and the organization's future.
Team solidarity: This outcome variable indicates the level of team solidarity of the TMT members' work unit. Respondents assess their agreement (or disagreement) with a set of questions, indicating that they work well together and TMT members work effectively as a team.Externally Oriented Outcome of Firm Competitive Performance: This Outcome Measure Combines the Measures of Competitive Sales Performance and Competitive Industry Dominance
Competitive Sales Performance: This outcome variable indicates the perception of the CFO (or other knowledgeable top management team [TMT] member) of the financial sales performance of the firm in comparison to their major competitors.
[Page 372]Competitive Industry Dominance: This outcome variable indicates the perception of the CFO (or other knowledgeable TMT member) of the extent to which the firm dominates its industry.Statistical Analysis Terms
Correlation: A correlation provides a standardized measure (theoretically, bounded between −1 and +1) of the relationship between two variables. A correlation coefficient close to +/-1 indicates a strong relationship, whereas a correlation coefficient close to 0 indicates a weak relationship.
HLM technique: Regression analyses have the underlying assumption that observations are independent, an assumption that is violated when observations are clustered within individuals, teams, organizations, and so forth. Random coefficient modeling (RCM) is a regression technique that accounts for dependence amongst observations. RCM is employed in the current study to account for dependence of observations within countries. RCM can be conducted by using several types of software, including HLM software, which has led this technique to be occasionally called hierarchical linear modeling (HLM).
HLM coefficients: RCM analyses yield unstandardized regression coefficients; when we call a coefficient an HLM coefficient, this indicates that the coefficient is an unstandardized regression coefficient derived through RCM analysis.
Fit: The GLOBE fit index assesses two aspects of the fit between CEO leader behavior and cultural expectations (CLTs). The first aspect of fit assesses the similarity in patterns or profiles between a CEO's leadership behavior profile and the country's expected leadership profile—that is, CLTs measured for each of the global leadership dimensions. This fit measure is described in Chapter 5 as a profile pattern similarity that is defined and measured as a within-person slope between their societal CLT and their corresponding 21 leadership behaviors. The second aspect of fit was an assessment of absolute level of agreement between CLTs and behavior. The second measure of fit calculates the distance between each of the CEO's behaviors and its corresponding CLT dimension. It reflects the overall similarity in level or magnitude between each CEO's observed behavior and the CLT dimensions. Fit measures were calculated for each global leadership dimension (e.g., Team Oriented) by using the two aspects of fit mentioned previously. In addition, an overall fit measure was calculated by using all 21 primary dimensions together. The latter is designated as the “Gestalt Fit” measure (see Chapter 9).
R2: R2 denotes the percentage of variance in the outcome (dependent variable) accounted for by the predictor (independent) variable(s).
: CEO Leadership Survey Items[Page 373]
Primary Leadership Dimension Global Leadership Dimension Leadership Survey Items Visionary (Survey A) Charismatic Clearly articulates his/her vision of the future Anticipates possible future events Makes plans and takes actions based on future goals Inspires others to be motivated to work hard Smart, learns and understands easily Has a clear understanding of where we are going Visionary (Survey B) Charismatic Anticipates and prepares in advance Has a vision and imagination of the future Has a clear sense of where he/she wants this organization to be in 5 years Inspirational (Survey A) Charismatic Highly involved, energetic, enthused, motivated Gives courage, confidence, or hope through reassuring and advising Demonstrates and imparts strong positive emotions for work Increases morale of subordinates by offering encouragement, praise, and/or by being confident Inspirational (Survey B) Charismatic Mobilizes and activates followers Emphasizes the importance of being committed to company values and beliefs Is generally optimistic and confident Self-Sacrificial (Survey A) Charismatic Foregoes self-interests and makes personal sacrifices in the interest of a goal or vision Can be trusted to serve the interests of his/her subordinates rather than him/herself Self-Sacrificial (Survey B) Charismatic Views obstacles as challenges rather than threats Is usually able to persuade others of his/her viewpoint Integrity (Survey A) Charismatic Talks to subordinates about his/her important values and beliefs Emphasizes the importance of having a strong sense of purpose Can be relied on to meet obligations Speaks and acts truthfully Acts according to what is right or fair Integrity (Survey B) Charismatic Means what he/she says Deserves trust, can be believed and relied upon to keep his/ her word Builds trust with subordinates Makes sure that his/her actions are always ethical Decisive (Survey A) Charismatic Makes decisions firmly and quickly Has good intuition, insightful Applies logic when thinking Performance oriented (Survey A) Charismatic Sets high goals; works hard Seeks continuous performance improvement Sets goals for my performance Primary Leadership Dimension Global Leadership Dimension Leadership Survey Items Performance oriented (Survey B) Charismatic Strives for excellence in performance of self and subordinates Sets high performance standards Communicates his/her performance expectations for group members Insists on only the best performance Collaborative team orientation (Survey A) Team Oriented Tends to be a good friend of subordinates Concerned with the welfare of the group Stays with and supports friends even when they have substantial problems or difficulties Intervenes to solve conflicts between individuals Team integrator (Survey A) Team Oriented Easily understood Communicates with others frequently Integrates and manages work of subordinates Knowledgeable, is aware of information Integrates people or things into cohesive, working whole Team integrator (Survey B) Team Oriented Works at getting members to work together Explains what is expected of each member of the group Is open in his/her communication with subordinates Diplomatic (Survey A) Team Oriented Skilled at interpersonal relations Is able to negotiate effectively, able to make transactions with others on favorable terms Diplomatic (Survey B) Team Oriented Able to identify solutions which satisfy individuals with diverse and conflicting interests Interested in temporal events, has a world outlook Is able to maintain good relationships with others Primary Leadership Dimension Global Leadership Dimension Leadership Survey Items Malevolent (Survey A) Team Oriented Tends to believe the worst about people and events Is sly, deceitful, full of guile Is not sincere, fraudulent Is actively unfriendly, acts negatively toward others Malevolent (Survey B) Team Oriented Is punitive; has no pity or compassion Is vengeful; seeks revenge when wronged Pursues own best interests at the expense of others Administratively competent (Survey A) Team Oriented Is able to plan, organize, coordinate, and control work of large numbers (over 30) of individuals Explains the rules and procedures group members are expected to follow Has the ability to manage complex office work and administrative systems Administratively competent (Survey B) Team Oriented Well-organized, methodical, orderly Is organized and methodological in work Clarifies priorities Participative (Survey B) Participative Gives subordinates a high degree of discretion to perform their work Shares critical information with subordinates Allows subordinates to have influence on critical decisions Seeks advice concerning organizational strategy from subordinates Will reconsider decisions on the basis of recommendations by those who report to him/her Primary Leadership Dimension Global Leadership Dimension Leadership Survey Items Autocratic (Survey A) Participative Makes decisions in dictatorial way Is overbearing Forces his/her values and opinions on others Is inclined to dominate others Tells subordinates what to do in a commanding way Is an extremely close supervisor; one who insists on making all decisions Autocratic (Survey B) Participative Is in charge and does not tolerate disagreement or questioning; gives orders Acts like a tyrant or despot; imperious Does not allow others to participate in decision making Expects unquestioning obedience of those who report to him/her Modesty (Survey A) Humane Oriented Not easily distressed Does not boast, presents self in a humble manner Given to being moody; easily agitated (Reverse Coded) Modesty (Survey B) Humane Oriented Has and shows patience Is modest Humane Orientation (Survey A) Humane Oriented Has empathy for others, inclined to be helpful or show mercy Willing to give time, money, resources, and help to others Humane Orientation (Survey B) Humane Oriented Is aware of slight changes in others' moods Sees that the interests of subordinates are given due consideration Looks out for the personal welfare of others Autonomous (Survey A) Autonomous Acts independently, does not rely on others Self-governing Autonomous (Survey B) Autonomous Is individually oriented; places high value on preserving individual rather than group needs Self-Centered (Survey A) Self-Protective Avoids people or groups, prefers own company Aloof, stands off from others, difficult to become friends with Self-absorbed, thoughts focus mostly on one's self Is a loner, tends to work and act separately from others Status conscious (Survey A) Self-Protective Is conscious of class and status boundaries and acts accordingly Believes that a small number of people with similar backgrounds are superior and should enjoy privileges Status conscious (Survey B) Self-Protective Aware of others' socially accepted status Believes that all individuals are not equal and only some should have equal rights and privileges Does not show favoritism toward an individual or group of individuals Internally competitive (Survey B) Self-Protective Holds people accountable for work over which they have no control Stimulates unrest Tends to conceal information from others Does not criticize subordinates without good reason (Reverse Coded) Is unwilling to work jointly with others Face-Saver (Survey A) Self-Protective Refrains from making negative comments to maintain good relationships and save face Avoids disputes with members of his/her group Avoids saying no to impracticable requests Face-Saver (Survey B) Self-Protective Ensures that subordinates are not embarrassed or shamed Bureaucratic (Survey A) Self-Protective Administers rewards in a fair manner Uses a common standard to evaluate all who report to him/her Acts in accordance with rules, convention, and ceremonies Bureaucratic (Survey B) Self-Protective Follows established rules and guidelines Tends to behave according to established norms, policies, and procedures
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