Strategie Leadership. Across Cultures. The CLOBE Study of CEO Leadership. Behavior and Effectiveness in 24 Countries
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1 Strategie Leadership Across Cultures The CLOBE 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 School of Global Management Paul J. Hanges University of Maryland Mary F. Sully de Luque Thunderbird School of Global Management dsage Los Angeles London New Delhi Singapore Washington DC
2 Contents Foreword Dedication Acknowledgments About the Authors List of Country Co-Investigators xiii xix xxi xxv xxix Chapter 1. Societal Culture and Leadership: GLOBE History, Theory, and Summary of Previous Findings 1 GLOBE: A Primer 4 GLOBE Theoretical Model 5 Focus of GLOBE 2004 and GLOBE Specific GLOBE Research Questions for GLOBE 2004 and GLOBE GLOBE Perspectives on Culture 11 GLOBE Perspectives on Leadership 17 Culturally Endorsed Implicit Leadership Theory The Twenty-One Primary Culturally Endorsed Implicit Leadership Theory Dimensions and Six Global Culturally Endorsed Implicit Leadership Theory Leadership Dimensions 18 Universally Desirable Leadership Attributes and Dimensions 23 Universally Undesirable Leadership Attributes and Dimensions 23 Culturally Contingent Leadership Attributes and Dimensions 26 Which GLOBE Cultural Dimensions Influence Leadership Expectations? 27 Country Clusters and Ideal Leadership Qualities 30 GLOBE Leadership and Culture: Summary of Specific Findings From GLOBE 2004 and GLOBE 2007 and Why We Initiated GLOBE
3 Chapter 2. Selective Review of the Literature on Culture, Leadership, and Upper Echelon Theory 35 Cultural Influences on Leadership Processes 36 GLOBE's Definition of Leadership 37 An Appreciation of Cultural Influences on Leadership 38 Empirical Evidence for the Statistical "Effect Size" Regarding Cultural Variation in Leadership 40 Managerial Implications for Understanding Cultural Influences on Leadership 42 Theoretical Reasons for Understanding Cultural Influences on Leadership 44 Answering Basic Research Questions About Cultural Influences on Leadership 46 Coming of Age: The Proliferation of Cross-Cultural Leadership Studies 46 Three Competing Theoretical Propositions Regarding Cultural Influence on Leadership 48 Linking Cognitive Psychology to Cross-Cultural Leadership 52 Cultural Differences in Implicit Leadership Theories 53 GLOBE Contributions to Implicit Leadership Theory and Culturally Endorsed Implicit Leadership Theory 54 GLOBE's Universal and Cultural-Specific Leadership Dimensions and Their Relationships to the GLOBE Cultural Dimensions 55 A Targeted Review of Cross-Cultural Leadership Based on GLOBE's Six Global Leadership Behaviors 55 Charismatic/Value-Based Leadership 56 Evidence Regarding Charismatic and Transformational Leadership 59 Endorsement of Charismatic and Transformational Leadership 60 Behavioral Research Investigating Universality of Charismatic and Transformational Leadership 61 Team-Oriented Leadership 65 Endorsement of Team-Oriented Leadership 67 Behavioral Research Investigating Team-Oriented Leadership 67 Participative Leadership 69 Endorsement of Participative Leadership 70 Behavioral Research Investigating Participative Leadership 73 Humane-Oriented Leadership 76 Endorsement of Humane-Oriented Leadership 76 Behavioral Research Investigating Humane-Oriented Leadership 77
4 Autonomous Leadership 78 Endorsement of Autonomous Leadership 79 Self-Protective Leadership 80 Endorsement of Self-Protective Leadership 81 Behavioral Research Investigating Self-Protective Leadership 82 Strategie Leadership and Upper Echelon Theory 83 Chapter 3. Rationale, Theoretical Framework, Hypotheses, Research Design, and Snapshots of Findings 87 Theoretical Framework Underlying the Present Project: The Importance of Implicit Leadership Theory Driving Executive Behaviors 90 The Importance of Congruency Between Executive Behaviors and the Culturally Endorsed Implicit Leadership Theories for Executive Effectiveness 91 Why Focus on Strategie Leadership? 92 Research Objectives 93 Project Research Design 95 Illustrative Examples of Findings From the Present GLOBE Project: A Snapshot of CEO Influence 97 Leadership Matters 98 National Culture Is a Driver of Leadership Behaviors Through Cultural Expectations; Congruency With the National Culture Is Critical 99 Chapter 4. Research Methodology and Design 101 Origins of GLOBE Phase Specific Objectives of Phase Participating Societies 103 Participating Firms 109 Research Design 127 Survey Procedures 127 Translation and Back-Translation Process 131 Data Collection 131 The GLOBE Sample of CEOs 133 The GLOBE Sample of Top Management Teams 139 Scale Development 144 Culturally Implicit Leader Behavioral Items 144 Items for Outcome Measures 149 Outcome Measures: Top Management Team Internally Oriented Items 149 Use of Perceptual Outcome Measures 152 Outcome Measures: Firm Financial Performance Items 153
5 Chapter 5. Strategy for Measuring Constructs and Testing Relationships 157 Aggregation 158 Creating Psychometrically Sound Scales 159 Measurement Equivalence 160 Metrie Equivalence 161 Statistical Analyses Testing GLOBE Hypotheses 162 Assessment of Culturally Endorsed Implicit Leadership Theory-Behavior Fit 164 Pattern Similarity Fit 166 Absolute Behavioral Fit 167 Chapter 6. Psychometric Evidence for Leadership and Outcome Constructs 169 Convergence Evidence 169 Convergence Evidence for Leadership Scales 169 Convergence Evidence for Outcome Measures (Top Management Team Dedication and Firm Competitive Performance) 172 Emergent Psychometric Property: Internal Consistency and Factor Analysis 173 Emergent Psychometric Properties of the Leadership Measures 175 Emergent Psychometric Properties of Outcome Measures 177 Measurement Equivalence: Similarity in Meaning 180 Measurement Equivalence for Leadership Scales 181 Measurement Equivalence for the Outcome Measures 186 Response Bias: Leadership Scales 187 Summary 190 Chapter 7. CEO Leadership Behavior Across Cultures: The Linkage With Cultural Values and Culturally Endorsed Implicit Leadership Theory 191 Describing CEO Leadership Behavior 195 Overall CEO Leadership Behavioral Profiles 195 Understanding CEO Leadership Behavior: Does National Culture Matter? 206 Culturally Endorsed Implicit Leadership Theory Across Countries 209 Does Culturally Endorsed Implicit Leadership Theory Predict CEO Leadership Behavior? 214 Summary 227 Appendix 7.1. Country Culturally Endorsed Implicit Leadership Theories and CEO Leadership Behaviors: Six Global Dimensions 229
6 Appendix 7.2. Culturally Endorsed Implicit Leadership Theory and CEO Leader Behavior on Twenty-One Primary Leadership Dimensions by Country 239 Chapter 8. Leadership Effectiveness Across Cultures: The Linkage With CEO Behaviors 245 The Measurement of CEO Effectiveness 246 CEO Effectiveness Across Countries: Top Management Team Dedication and Firm Competitive Performance 247 Effectiveness of Six Global CEO Leadership Behaviors Considered Together 247 Effectiveness of Twenty-One Primary CEO Leadership Behaviors Considered Together 249 Which CEO Leadership Behaviors Predict Top Management Team Dedication? 249 Charismatic and Team-Oriented Leadership Predicting Top Management Team Dedication 256 Participative, Humane-Oriented, Autonomous, and Self-Protective Leadership Predicting Top Management Team Dedication 258 Summary of CEO Leadership Influence on Top Management Team Dedication 260 Which CEO Leadership Behaviors Predict Firm Competitive Performance? 260 Summary of CEO Leadership Influence on Firm Competitive Performance 260 Evidence of Leadership Impact Moderated by Culture 266 Integrating GLOBE Empirical Findings With Previous Literature 267 GLOBE Insights Into Charismatic Leadership 267 GLOBE Insights into Team-Oriented Leadership 269 GLOBE Insights Into Participative Leadership 272 GLOBE Insights Into Humane-Oriented Leadership 274 GLOBE Insights Into Autonomous Leadership 277 GLOBE Insights Into Self-Protective Leadership 278 Summary of Overall Findings 280 Chapter 9. CEO Leadership Effectiveness Across Cultures: The Effect of Fit and Behavior 283 CEO Leadership Behavior as a Source of CEO Effectiveness 283 Definition of Fit: The Match Between CEO Behavior and Expectations 286 Importance of Fit: The Match Between CEO Behavior and Leadership Expectations 289 CEO Behavioral Enactment and Fit: A Simultaneous Comparison of Effects? 294 A Country-Level Assessment of Fit 296 Summary 298
7 Chapter 10. CEO Leadership Effectiveness Across Cultures: Superior and Inferior CEOs 299 Superior and Inferior CEOs: Top Management Team Dedication 300 Superior and Inferior CEOs: Firm Competitive Performance 300 Profile Similarity for Gestalt Fit 301 Behavioral Similarity for Gestalt Fit 301 Gap Between Superior and Inferior CEOs' Leadership Behavior and Culturally Endorsed Implicit Leadership Theory 302 Super Superior and Super Inferior CEOs 304 Profiles of Superior and Inferior CEOs 306 Austria 306 China 307 Estonia 307 Germany 308 Greece 308 Guatemala 310 India 310 Mexico 311 Nether lands 311 Nigeria 313 Romania 313 Russia 313 Slovenia 315 Spain 316 Taiwan 316 Turkey 317 United States 317 Summary 319 Chapter 11. Conclusions, Implications, and Future Research 321 Summary of Key Findings 322 Drivers of CEO Leadership Behavior 322 Drivers of CEO Leadership Effectiveness The Impact of Leadership Behavior 324 CEO Leadership Behavior and Top Management Team Dedication 324 CEO Leadership Behavior and Firm Competitive Performance 325 Drivers of CEO Leadership Effectiveness The Effect of Fit Between Behavior and Culturally Endorsed Implicit Leadership Theory 326 Theoretical Contributions and Implications for Theory Development 328 Cultural Context and Culturally Endorsed Leadership: The Development of Implicit Leadership Theories and Culturally Endorsed Implicit Leadership Theories 328
8 Leadership Taxonomies and GLOBE Leadership Theory 330 GLOBE's Culturally Endorsed Implicit Leadership Theory: Support for Hypothesized Relationships and Remaining Theoretical Relationships to Be Studied 332 Integrating the GLOBE Study Findings Into the Leadership and Cross-Cultural Literature 335 Do GLOBE's Findings Support the Existing Charismatic and Transformational Leadership Literature? 335 GLOBE's Insights Into Charismatic and Transformational Leadership 336 Do GLOBE's Findings Support the Existing Team-Oriented Leadership Literature? 338 GLOBE's Insights Into Team-Oriented Leadership 339 Do GLOBE's Findings Support the Existing Participatory Leadership Literature? 340 GLOBE's Insights Into Participative Leadership 340 Do GLOBE's Findings Support the Existing Humane-Oriented Leadership Literature? 341 GLOBE's Insights Into Humane-Oriented Leadership 342 Do GLOBE's Findings Support the Existing Autonomous Leadership Literature? 343 GLOBE's Insights Into Autonomous Leadership 343 Do GLOBE's Findings Support the Existing Self-Protective Leadership Literature? 344 GLOBE's Insights Into Self-Protective Leadership 345 Implications of Our Findings for the Strategie Leadership Literature 345 Managerial Implications of Our Findings 348 Rigorous Findings and Lessons for Domestic Executives 348 Rigorous Findings and Lessons for Global Executives 358 A General Theory of Strategie Leadership 358 Effective Leadership Across Cultures 362 Future Research: What We Still Need to Know 362 Appendix A GLOBE Cultural Dimensions 367 Appendix B CEO Leadership Survey Items 373 References 379 Name Index 399 Subject Index 405
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