03

Leadership across
cultural contexts

SHING KWAN TAM

Learning outcomes

At the end of this chapter, you should be able to:

their developments;
understand the different theories of leadership and

differentiate between leader and leadership development;

factors of
gain a better understanding of the critical
success

sustainable cross-cultural leadership development.

Introduction
has
Over recent decades, the complexity of organizational leadership
intensified due to rapid changes brought about by globalization
and the
and cultural
management diffhculties generated by territorial, political
differences (Maria and Arenas, 2009; Sheppard, Sarros and Santora, 2013).
Wade (1996) notes that globalization refers to changes in the international
economy which are brought by the 'increase in international trade in goods
and services, greater flows of foreign direct investment (FDI) and the growth
ofinternational hnancial transactions' (Bamber, Lansbury and Wailes, 2011:
14). As Edwards and Rees (2011: 122) argue, globalization does not neces-
sarily lead to convergence of practices and multinational corporations
(MNCs) have been dealing with the standardization tensions by local adap-
tations in the context of leadership practices. In this vein, with intensitying
globalization, development of global leaders becomes increasingly crucial
for MNCs. Such need is actually reflected in survey results of Fortune 500
enterprises in which 85 per cent of them have expressed concerns about
 inadequate supply of global leaders - individuals with organizational and
nterplay and mutual goals among leaders and followers and organizational
business expertise and the cross-cultural skills enabling them to run organi- context are crucial.
zations under uncertain situations (Evans et al, 2010). There has been a wide varicty of leadership theories developed in past
Nevertheless, researchers and practitioners have also long been criticized ycars. Concepts include a focus on leader traits (ie innate qualities) and
for adopting an overly 'culture neutral' approach to studying leadership behaviours, contingency approaches, leader-member exchange, charismatic
development (Acker, 1990; Broadbridge and Simpson, 2011; Kark, 2004). and transformational and
Whether or not leadership is universal is contended. Some researchers such
leadership, strategic leadership, distributed lead-
ership (Northouse, 2016). There is no simple way to study leadership; one ot
as Bass (1990) and House ét al (2004) argue that certain aspects of leader- the most useful ways to categorize leadership theory and research is to look
ship, such as supportiveness, excellence orientation (conscientiousness) and into the variables that foster leadership. Generally speaking. there are three
honesty may be universally applicable across different cultures (Dickson, key types of variable that are related to leadership study: hrst, characteris
Den Hartog and Mitchelson, 2003). These approaches stress a few univer tics of leaders, second, cHaracteristics of followers, and third, characteristics
sal traits to successful leadership and simply deliver the same programmes of situations (Yukl, 2013).
to all participants regardless of their cultural background. With the igno ) The trait approach was one of the first ways of studying leadership. I his

rance of local context variations and failure to reflect the organizational approach tocuses on the leaders' characteristics such aspezsonaliry.niotiyes.
the values and skills. It was suggested thar some individuals are born leade
realities women face, these approaches are 'doomed to failure írom
outset' (Steers, Sanchez-Runde and Nardon, 2012: 480). In order to address with effective leadership traits, while others are not (Northouse, 016). in
optimizing leadership in research direction
diversity issues and provide guidelines
to for theearly 20th century, the leadership was
mainly 1bout

an inclusive approach
to take differentiation of specific personality traits berween leaders and tolowers
contemporary organizations, it is necessary
with the inclusion ot culture as a factor for the leadership theory devel- (Bass, 1990). This approach has gained much interest in the researen area

and research (Aynman and Korabik, 2010; Chin, 2010). From

a about the influence of traits on leadership (Bryman, 1992). uch researcin
opment
and culture influence institutions, educa- has been conducted on the relationship between traits and perceptions with
critical perspective, globalization
tion systems, management and leadership
at macro level, and these tactors regard to (see Bass, 1990; Lord, De Vader and Alliger. 19Sh;
leadership
have impact at organizational level in the context
of leadership develop- Zaccaro, 2007). Nevertheless, there still exists doubr about the impact ot
ment (Blackmore, 2010). Due to the impact
of globalization, 21st-century traits on outcomes such as team pertormance and leader progression ( uki,

more conmplex and diverse torms,

and culture can 2013). Despite these shortcomings. progress has been made regarding the
organizations operate in
certainly be considered as one of the key
factors influencing the expecta- association of traits and leadership behaviours and ertectiveness. and as this

constitutes etfective leadership (Ayman and
tions people have about wvhat
Korabik, 2010; Klenke, 2011).
What is leadership?
Development of leadership
is
Contemporary leadership theory
approach is applicable to all individuals at all levels of organizations, by
taking the trait assessments, leaders could use this intormation 1s a reterence
tor understanding their strengths and weaknessesin a way that is benehCial
to their tuture leadership development (Northouse, 0l6).
The pittalls ot the trait approach stimulated the interest ir developing the
(2 behavioural approach. Behavioural leadership studies tocused on orginiz2
tionalpsvchology for many years to understand the intiuence ot leader style
theory on group behav1our and resulted in two essential Denavioural diCnsions
and task focus versus 'people orientation as the ker study direction (Storey,
complex, wide-ranging
seen as

on one definition.
Some suggest that lead- 2016). In other words, this aprroach is CODeLedwith whar the lelders do
contradictory, with no agreement at work regardinggoal accompishment and how they inake their tollowers
from the perspectives of person, result, position
ership is to be understood that leader teel comtortable in the team tor the ske ot acieving their work oDectivc
and process (Jackson and Parry,
2011). It is also suggested
and context Yet leadership exists in group membership in organizations and is argued
dimensions of person, process
ship encompasses interacting definitions exist, leadership can be as highly situational and cotentual, that is, leadership is sensitive to the
(Yukl, 2013). Although many leadership changes of the broader external environment (Lord al, 2001).
infiuence, occurs within a group with
et
summarizedas a process thar involves As Stogdill (1974) asserts, the trait and behavioural leadership research
interactions berween leaders and followers,
and includes aspects related
and Antonakis, 2012; Yukl,
2013). As failed to demonstrate sold evidence tor a universal theoretical concept of
to resulting sharedoutcomes-{Day
and democratic process of
interaction that creates cffective leadership. These viewpoints explain precisely the emergence of
leadership is dynamic
contingency theory during the 1970s and 1980s. Different theories
a
function at were
member performs the leadership
changes, every organization that dynamic developed, such as prath-goal theory, situational leadership theory, leader
some point in time (Barker,
1997). These definitions imply
 Leadership

of international HRM
32 The context
of ideal leadership
other words, perceptions
(Lord and Maher, 1991). In once the follow-
co-worker (LPC),
behaviours are impacted by
the expectations of followers;
model, least preferred over the time
Substitutes theory, multiple linkage normative
decision
established, they are
be consistent
found to

theory, cognitive
theory and
resources
ers schema are
contextual factors (Epitropaki et al,
changes brought by
literature
contingency theories to the unless there are
match
models. Although the contributions of contingency validity is dependent on the perceived
about the
some researchers
are doubtful 2013). Formation of leader perception leader prototype (ie what
are extensively recognized, theories are complex
and
between leaders' behaviours
and the pre-existing
construct as the memorics. That
ot the elusive and lofty leadership leader) implanted in followers
teatures constitute a good in order to be
ditfhcult to test (Hernandez et al, 2011). as a set of leader needs followers" recognition
Dissatistaction in leadership
research that treats leadersh1p Is, the identity of the automatic and u n c o n s c i o u s in its

direction that zoomed in on of this process is

to a new research solidihed, and activation
traits and characteristics led and Lord, 2004). It is
notewor-
tollowers. (Fischbein
the nature ot leadership the relationship berween
leaders and sensitivity to contextual changes contextual factor is found to have
do (ie their behaviours) national culture as a
That is, the attention was more on what
leaders thy to assert that dehned a shared belief
formation of ILTs. Culture is
as
in-born traits). In
in order to drive a better result,
instead of who they are (ie an impact on the rooted
members from another and is deeply
the 1980s, attention shifted to the 'new leadership?
theories that promoted that differentiates a group of is formed
As leadership perception
in each country due to past dependency.
and inspirational
the concept of transtormational, charismatic, visionary and values
is redefined with emphasis on are affected by the shared beliefs
leadership (Storey, 2016). The new leadership by ILTs and leader protorypes contextual tactor is argued to be

the engagement of followers and goal-driven actions

that bring about trans that embedded in national culture, this
are
and Antonakis, considered when it comes to leadership study
tormation and change (Bryman, 1992; Chin, 2010; Day an important dimension to be
leadership as trans (Fischbein and Lord, 2004; Yukl, 2013)
universal
2012). Bass (1985) referred to this type of new

of leadership universality provides

tormational leadership, which idealized inspiring leadership behaviaur
the
Critically speaking, the assumption a vacuum and
that transtorms tollowers interests tor the greater good. does not occur in
an insutfhcient explanation. Leadership
Ihere are sound reasons to study the 'new leadership,
and speciheally
it is not culture neutral (Ayman
and Korabik, 2010; Chin, 2011). Ayman
transtormational leadership (TFL). With the impact of globalization, the that studies on culture matter because
and Korabik (2010: 166) assert
global technologies, institutions and indus-
behaviour, emergence and etfective-
1ncreasing convergence of they have impact on a 'leader's style,culture on the leadership experience,
trial logic contri1bures to the harmonization ot management practices ness. In view of the importance ot
Stough, 2004). As employees across the globe factor such as culture is critical
are
and
(Zagorsek, Jaklic
that TFL acknowledging an intertwined contextual
knowledge workers, Bass (1997) leadership (Day and Antonakis. 2012:
asserts
1ncreasingly commonly tor enhancing understandings of
leaders are
1 ettective universally across cuitures, as transtormational Zagorsek et al, 2004).
2007).
equipped with these qualities (Ergeneli, Gohar and Temirbekova,
that TFL's change-focused feature and centric
Storey (2011) also argues Leadership developnment in organizations
1dea of inspirational motivation become critical to organizations
in view
of deregulation of markets, challenging global competition and increasing
In addition to the understanding of leadership theories, leadership develop
and
use of fiexib!e and looser employment. Eagly, Johannesen-Schmidt
of 39 studies substan-
ment is crucial fororganizations practically, thus it is essential to difterentiate
van Engen (2003) further stress that a meta-analysis the distinction berween leader and leadership development for the adoption
the positive correlations between
tiated THLs ettectiveness by showing of an effective approach.
leadership.
ettectiveness and all components of transtormational
leaders
In brief, transformational leaders lead as role models through gaining
Day (2000) argues that the development of human capital (leader devel-
the trust and confidence of followers. In contrast, transactional leaders
opment) as compared with'social capital (leadership development) is the
core orientation difference of the approaches. Leader development
two
appeal the self-interest of subordinates based on the exchange relation-
to

ship with them. Though these two types are separable empirically, both focusesmore on individual capabilities. It aims at developing three main
types of leadership have been found to be eftective and generate positive areasof skill-cognitive,social/emotional, and behavioural- which serve as
intrapersonal competence foundations.
outcomes (Sarros and Santora,2001). U
Whte all the aforementioned leadership theories are leader-focused, in By contrast, the aim of leadership development is to develop a leadership
work relationships. The focus is on the development of
recent decades, followers have become the focus of
research, which has led ream with effective
collective leadership capacity and quality with emphasis on contexts such as
to the emergence of Implicit Leadership
Theory (ILT). Implicit leadership sOCial processes and structures, and group or team activities, and is related
theory is basically a lay theory which focuses on followers' ideas of effective
leadership (Shondrick and Lord, 2010). ILTs are defined cognitive structures to organizational development concepts. Iszatt-White and Saunders (2014)
or prototypes specifying the traits and abilities that characterize leaders elaborate further that it is
a systemic approach which aims at developing
 use of competence-focused evaluation for leadership development etfective-
shared understanding or vision regarding the required leadership in an

organization and how it is to be enacted. It is also argued by developing

that ness is also questioned as it fails to
capture the benehts ot social capital
the ot context such as culture (Iszatt-\White
development and ignores impact
the individual skills and attributes of a leader, leadership quality will
eventu-
and Saunders, 2014). Despite the execution dificulties, leadership devel-
tactors such as reward
ally be increased. They also suggest organizational opment chances for all potential leaders are recommended as employees
and appraisal systems are to be integrated alongside the organizational view
an leader development, a are the sustainable resource of organizations from the resource-based
leadership development. In this sense, rather t (RBV) perspective and development of people's collective leadership capac-
should be adopted in
situation-speciic leadership development approach is deemed crucial tor organizations' survival.
collective pertormance improvement and survival. ity
organizations tor
development is mainly facilitated with training
Traditionally, leadership
collective leader-
and development interventions in the hope of enhancing Cross-cultural leadership
skills and competence. Most of
ship quality by developing individual leader
the time, this approach tails because it designed according to the unproven
is
Cross-cultural leadership research
is the sum of what leaders do' (Storey, 2011:
assumption that "leadership
this does notimply that one must choose either leader or A majority of leadership research has been conducted in the context of west
189). However,
human and social capitals are
leadership development, as development of ern culture. In recent decades, scholars have started to use a more systematic
intertwined (Day, 2000). In this vein, a situation- and organization-specihc approach to study cross-cultural leadership across different cultures and
is crucial.
education model aligning with an emerging leadership paradigm organizations (Hernandez et al, 2011). Scholars argue that cultural and
is still required for those who
Barker (1997) suggest that skill-based training institutional factors form the macro environment of organization, and these
Executive develop-
are in need of subconscious subroutine enhancement. contextual tactors have potential intluence on leadership practice (Klenke.
ment with a focus reflection and interpretation will help people to explore
on
their participa- 2011).Cross-cultural studies remark clearly tharexpectations otindividuals
and develop personal values, with the aim of facilitating are influenced by cultural ditterences: evolution ot leadership assumptions
and leadership education is for
tion in the leadership development process, andphilosophies in organizations are tound to be in line with the culture
moral orders with the integration of experi
explor1ng social patterns and within which they function, Doriman, 1996; Hofstede. Hofstede and
and values for developing conscious a w a r e n e s s (Barker, 1997).
ence, insights Minkov, 2010; House et al, 2004).
on the job and experiencing
As leadership development is about learning Among contemporary management scholars, Hoistede dehnes culture
within social contexts, in addition to
classroom training, interventions such as the collective programming of the human mind that distinguishes the
as 360-degree feedback, coaching
mentoring, job assignments and trigger members of one group or category of people irom
the latter two approaches, and networking
and another (Hofstede
events may be adopted in Hofstede and Minkov, 2010: 6). Broadly speaking, as history is embedded
usetul for social capital development,
action learning would be particularly within societies and has a direct impact on people's beliets and behav-
education (Day, 2000).
which is the highlight of leadership iours, it can be concluded that culture is a sy'stem of beliets, valucs and
opportunities to all
Nonetheless, providing leadership development practices with strong path dependencies, and each culture is enabled'to
sustain leadership effective-
suthcient to guarantee and solve universal problems with divergent ways (Greener, 2002). Over the
employees is not
contexts such as strategy, culture,
organizational structure
ness. Situational past few decades, many researchers have developed ditterent cultural
role in creating the supportive environment
and systems play an important models to ditterentiate between national cultures, such as Hall's high/low
and Saunders, 2014). Moreover,
for leadership development (Iszatt-White HR
context system (Shi and Wang, 2011, the Hotstede model (Shi and Wang.
business and other complementary
holistic integration with strategy
succession planning 2011), studies by Schwartz and Bilsky (19S7), Trompenaars (1993), and
such as selection, reward and
processes and practices 2011). the GLOBE Model (House et al, 2004;: Shi and Wang, 2011). Of all the
sustain the leadership development impact (Storey, different studies, Hoisteie's work has had a great impact in leadership
are also pivotal to
of implementation and result meas-
Yet diffculties are found in terms and management studies and is still the most Widely cited for analysis of
as an etfective leadership style, large
urement. While TFL is recognized
nurture TFL culture.
Decentralized phenomena in ditterent cultures (cited 1,800 tumes through 1999) (Chao
it difficult to
organizations may ind and Tian, 2011; Kirkman, I owe and Gibson, 2006; Shi and Wang, 2011).
may not be applicable
to some
structure and context-focused job design Hofstede's research covers more than 100,000 emnployees in more than
needs and difhculties in selecting and develop- 40 countries and has provided the hrst theoretic basis for understanding
organizations due to business not be involved in
internal developers may
why and how countries are ditterent trom each other, and and helping
for
ing emotionally stable leaders;
to
is needed on appli-
the strategic planning process and further investigation understand cross-cultural leadership teatures (Iszatt-White Saunders,
cultures (Jung, Yammarino and Lee,
cability of the model across different Moreover,
2014; NMaude, 2011).
and Bruch, 2010; Storey, 2011).
2009; Mengeset al,2011; Walter
 Leadership across cultural contexts 37
SO The context of international HRM

Egypt, have lower levels of

SOCIetics with low uncertainty avoidance, such as

Global leadership and organizational behaviour stress, weaker superego, higher willingness
to risks, lower-key commu-
take

nication style, and are m o r e open to different opinions

(Northouse, 2016).
effectiveness (GLOBE) in of necessity and problems can be
Rules should only be established case
initi-
Building on the work of Hofstede and others, in 1991, Robert House solved with informal rules (Sully de Luque and Javidan,
2004).
Behaviour
ated a n extensive study, Global Leadership and Organizational
Eftectiveness (GLOBE), in the specific area of culture and leadership (House
2. Power distance
et al, 2004). It is regarded as one ot the most extensive pieces of research ot
members show
International ongoing programme involving more than 160
nature as it is an Power distance refers to the extent to which the group
Investigators covering 61 cultures (Northouse, 2016). The ultimate objective expectation and agreement abour the unequal sharing of power Broadly
and
speaking, this dimension describes the degree of group's acceptance
a
of GLOBE is to build an empirically based theory to 'describe,understand, and status privilege (Carl, Gupta
and predict the impact ot specihc cultural variables on lcadership et
and endorsement of authority, power distance,
and Javidan, 2004). Organizations with high power distance endorse hier
Organizational processes and the eiiectiveness of these processes',(House terms and
al, 2002: 4). Spccihcally, two key matters are addressed in this study: hrsi, archies and power; managers tend not to communicate on equal
Gudykunst et al (1996) pointed
the extent of similarities and difterences in ettective leadership 1n ditferent autocratic communication style is adopted
out that high power distance hinders communication in general. and open-
Countrics,and the root causes for these difterences; second, the explanation encouraged. Communication styics
of the cultural influence on leadership beliefs and behaviours. With a large ness, disclosure and informality are not
are more
than 950 organi of subordinates are found to be deferential, while managers' styles
amount of data collected trom 17,000 managers in more
either preter such depend-
2ations as supporting evidence, this multi-phase study has
conhrmed that paternalistic and condescending. The subordinates
or reject it completely,
ence in the torm of autocratic or paternalistic bosses
can be culturally bound and the unique cultural
context
etfective leadership but
needs to be paid attention to when it comes to the study of how leadership which is also known in psychology as counterdependence (dependence
with negative sign) (Hofstede, Hofstedeand Minkov, 2010). Additionally.
functions (Hernandez et al, 2011).
coercive or deterent pOwer are
as power is seen as a basic part ot society,
cultures
stressed. A study by Bazerman et al (2000) found that members ot
The nine value dimensions with high power distance tend to avoid conflict with their superiors (cited i n
(Hotstede, Hotstede
GLOBE researchers identified nine value dimensions as follows. Maude, 2011: 9) and the task culture requires discipline
and Minkov, 2010). Conversely, in countries with small power distance
1. Uncertainty avoidance such as the United States, individuals are viewed as
equal, employees expect
consultation from their managers, the task culture demands subordinates
Oncertainty avOidance measures the degree to which an organization, SOCI- and communication in the workplace is actually marked by higih
initiatives,
bureaucratic practices to
ety or group counts on sOCial norms, rituals, and In other levels of informality (Hofstede, Hofstede and Minkov, 2010; Maude, 2011).
avoiduncertainty and minimize the unpredictability ot tuture events.
words, group looks tor order, consistency,
it refers to the extent to which a
situations. From 3. Collectivism
formal tramework and process, and rules to deal with daily
the view of people from high-UA societies, 'What is different, is dangerous Societalcollectivism describesthe degreeto which an organizationor saciety
desire for control of gncourages institutional or societal collective actions and preters resources
(Gudykunst, 2004: 61). As a resulr, they have a strong
work prOcess internal regulations, although in this case discretion-
through tobe distributed collectively. In other words, it concerns wherher a culture
ary power of superiors outweighs internal rules
where power distance is values broader societal interests more than personal goals and achievements.
such as Portugal and North Korea is regarded as a typical culrure with high societal collectiw
large. In countries with high uncertainty avoidance
more comtortable in ism value, where the Supreme Leader controls and monitors the country 's
Greece, people tend to look for consensus and feel
Structured environments; therefore, deviant behaviour is not acceptable development and how resources are allocated accor ding to societal interests
for clarity (Northouse, 2016).
(Hofstede, Hofstede and Minkov, 2010). In addition, their need
is also reflected in communication; they are more expressive
and look tor In-group collectivism measures the extent to which people demonstrate
I hat is, it
a in relationships and communication which makes events
structure
more
pride, loyalty and cohesiveness in their organizations or tam1lies.
In concerns the degree to which individuals are more committed to their organ
predictable and interpretable (Hofstede, Hofstede and Minkov, 2010),
these societies there is a relatively higher degree of formalization and deçen- izations or families than to their personal interests. People from cultures
as
with high in-group collectivism see membership ot a cohesive in-group
organizational structure where management by personal control
s
tralized
a highly valuable
important to their selt-identity, and loyalty to a group
in as
not preferred (Sully de Luque and Javidan, 2004). In contrast, people
 and independent. FHumane leader attributes
are autonomous, individualistic
attribute. It is remarked that individuals from these cultures (eg China)
are
are also preferred because of
follow-
to devote such as modesty and compassion
less likely to change their jobs, demonstrate a higher willingness social in an assertive and also highly likely
extra time to their organizations and display
more organizational citizen- ers need for leaders support
2016). On the contrary, a number ot
behaviours (Jackson et al, 2006).
threatening environment (Northouse,
ship desired tollowers it the organization values
by
interests are tound to leadership behaviours are not
Those cultures that value collective goals and are behaviours such as being inclusive and
leadership and practises assertiveness. Thesc
endorse and appreciate collaborative and team-integrating over-emphasis ot team collabor.i-
face and status but do participative in terms ot deCision making,
behaviours. People are concerned more about saving and too much diplomacy etc (Den
factor of effective leadership. More, tion, team orientation, team integration,
not view participation as an important
ot manag1ng inter Hartog, 2004).
leaders in collectivist culture are expected to be capable
well (Sully de Luque and Javidan, 2004).
personal dynamics 6. Future orientation
which individuals in organiz.ations
or

4. Gender egalitarianism Future orientation is the degree to

sOcieties endorse and display behaviours with uture orientation such is

This is the degree to which an organization or society strjves to minimize planning, investing in the tuture, and delaYIng graincation
That is. people

gender role difterences and gender discrimination in the home, organiza- from such culture hold actions will
beliet that their current
a
their
impact
tions and communities. In other words, it measures the extent of people's their tuture is a priority, 3s the tuture matters. In
future, and investment in

beliefs about how the gender of society members should decide the roles other words, the ettects of their current actions are assessed by the plan-
societies. In cultures with higher gender
they play in their organizations and and development ot the tuture. Many Middle Eastern countries, such
roles and more avail- ning
egalitarianism, there is a smaller gap between gender as Egypt and lurkey, are more highly past
oriented and raditional values
able equal opportunities for women to take over important leadership
roles,
and ways of handling things are. core to them. It is tound thar they have
Due fewer gender-role expectations,
particularly in the public sector. to
tendencies in management and can be slow to make changes to
when being evalu- conservative
there are fewer biases around individuals' behaviours
in Sweden, which is things that tie with the past (Northouse, 2016). Contrarily, Americans hold a
ated by their followers and superiors. For example,
that the power and intluence
strong belief that they can control and plan tor the future and initiare ideal
such a culture, people have clear expectations
A ized change for the sake of changing (Northouse. 2016.Organizations thar
should be shared equally between men and women (Northouse, 2016).
sexes to strike the balance
value future-oriented practices are more likely to endorse leadership beh.v-
welfare also helps both
well-supported system
iours such as team integration, collaborative team orientation. modesty,
between work and family life. In the light of leadership style preferences,
higher accept
show supportive and considerate leadership, and motivational and inspirationa
people from cultures with higher gender egalitarianism
enthusiasm and attributes. These organizations with stronger future orientation also tend to
ance levels of charismatic leadership behaviours such as
such as delegator and collective endorse visionary leadership where leaders are expected to h.ave the tore-
foresight, and participative leader attributes sight to form future plans and make and well-planned preparations for the
status conscious
orientation. Attributes such as self-protective, self-centred,
and formal are shunned in the organization and societies in such cultures future. People from societies such as Israel and Ireland are strongly intlu
and Den Hartog, 2004). enced by the vision of promoting the unique identity ot their nations, and
(Emrich, Denmark this may be an explanation for their high endorsement ot vis:Onary leader-
ship (Ashkanasy et al, 2004)
5. Assertiveness
Assertiveness is the extent to which people in organizations or soCieties are 7. Performance orientation
dominant, tough, assertive, confrontational and aggressIve in their social
relationships. Performance orientation_describes the degree to which high standards,
Assertiveness is not viewed as just a behaviour and trait
in the GLOBE individualachievement, pertormance inprovement and excellence ars
dimension that reflects shared beliefs encouraged andrewarded by an organiztion or society. It is concerned with
study but also as a national culture
tender whether the behaviour of setting challenging goals Is rewarded. In the United
about whether individuals are assertive and tough or unassertive and
assertiveness culture such States, the belief that the role ot President can be attained by all citizens is a
in social relationships. In countries with a higher
as Latin America and Southern European countries, open expressions of strong indication of pertormance orientation (Northouse, 2016). This dimen-
and Asian countries, sion also includes the tuture-oriented component ot the diinension called
emotion are seen as a norm, whereas in Scandinavian
Confucian Dynamism (tiotstede and Bond, 198S). That is, the Confucian
for example, people tend to be more conservative about showing
emotions

in public (Den Hartog, 2004). When assertiveness as a practice is valued by a principles which value perseverance, hard work and learning new skills are
behaviours that seen as instrumental in mak1ng progress and improvements, particularly in
culture, people from this culture tend to endorse leadership
40 The context of international HRM
Leadership across cultural contexts 41
the context of the Southeast Asia region's economic development (Javidan,
At
2004). the organizational level, performance orientation is related to the
CASE STUDY Global leadership development in a global fashion
degree to which the organization is concerned about achievement of ambi-
tious and
challenging goals through innovative pertormance improvement. retailer
It reflects the
requirement for leaders' excellence orientation and continuous
pursuit of advancement. As societal culture is also reflected in organiza-
tions, leaders trom organizations with high pertormance orientation value This case study takes place in a large multinational organization with
are
expected to set challenging goals, communicate high expectations tor headquarters in Germany and an Asia Pacific head office in Hong Kong. It is a
their followers, challenge them
intellectually and facilitate their skill devel- global casual fashion and lifestyle brand founded in 1960s in the United States.
opment and conhdence building. In contrast, cultures with low pertormance The group has a presence in over 40 countries, with directly managed retail
orientation are reported to endorse social and
family relations, loyalty and stores and wholesale points of sale which engage in the sale of collections for
seniority (Javida1, 2004). For example, horizontal coordination (ie collab-
women, men and kids.
oration among
counterparts) and networks (or guanxi) are essential for
success in China (Hofstede, Hofstede and The organization was unified as a single-unit globel brand in 2002; beiore that,
Minkov, 2010).
the entities in other continents operated with great autonamy. From 2008 to 2012,
8. Humane orientation the CEO was changed twice, and the company went through robust business
Humane orientation is the degree to which individuals in organizations transformations and cultural changes. Business models and collaborations
or societies encourage and reward individuals for_being tair, altruistic, among the regions changed after the transformation. Productivity and efficiency
friendly generous, caring, and kind to others.This dimension is similar to of channels became the key focus of the business strategy, that is, mare synergy
the dimension labelled kind-heartedness by Hofstede and Bond (1988).It
is concerned with the extent to which between retail, wholesale and franchise units was needed and a global mindset
sensitivity to others, social support was seen as a key leadership criterion. As a result, the urgent need to develop
and community values emphasized in a society or an organization. In
are

cultures with high humane orientation, members are expected to display
Supportive behaviours such as providing financial and material help, spend-
ing time together, showing empathy and love, solving problems by sharing
intormation etc. Contrarily, low humane orientation involves endorsement
of behaviours such as lack of consideration and promotion of self-interest.
In paternalistic societies with high human orientation value such as China,
participative leadership with emphasis on collaboration and team integra-
tion, and consideration of followers' needs and feelings is preferred. Leaders
from this culture are expected to provide social support by ottering pastoral
care for followers' and employees' personal problems, providing mentoring
and coaching when needed and behaving in an approachable and accepting
manner (Kabasakal and Bodur, 2004; Yukl, 2013).
An understanding of the aforementioned cultural issues has implica-
tions for leadership development in organizations. Cultural sensitivity and
diversity has been a popular training and development subject in MNCs
(Northouse, 2016). This training aims to inerease the awareness of leaders
about the characteristics of different cultures and how to deal with cultural
differences in a sensitive way. Bing (2004) remarks that an understanding of
cultural ditterences is useful for leadership development as it will help lead-
ers to understand the expectations from global teams better, and to adapt
their styles and communicate more effectively in the international environ-
ment. In this vein, Ng, Van Dyne and Ang (2009) conclude that enhancing
leaders' cultural intelligence with extensive cultural understanding and
experiences is pivotal for advancement of leadership effectiveness.
global leaders emerged and the Global Leadership Development Programme was
launched.
The aim of this programme is to prepare the company for future changes
with suficient supply of global leaders who can facilitate the transformation
process. As the company has subsidiaries in different markets globally,
execution of headquarters' strategy with adaptation to local market practices
is
crucial;:consequently, a 'global mindser is set as a key competence to be
developed through this programme and the content was structured according
to this direction. "High potential' senior leaders from
key markets such Australia,
China, Germany, Hong Kong, the Netherlands and the UK were selected as the
participants. The 18-month programme was designed to reflect a typical MBA
programme structure, with inclusion of business modules such as strategy,
leadership, supply chain, finance management etc. These modules were all
delivered by professors from European business schools or consultants from
the United States. In order to help the leaders to have a better self-awareness
about their strengths and weaknesses, psychometric assessments, coaching
and mentoring were also included. Challenging globsl projects were another
key element of this programme, as on-the-job learning was seen as an effective
intervention to stretch the leaders and enhance their global management
experience.
 Cross-cultural communication 53

for people from Europe, North America or

Australia, working in emerging
04 economies such as China, despite being locally recruited there. A British
national taking up employment with language school in
a
ple, is not an expatriate according to this definition.
China, for exam
Therefore, in international human resource management (IHRM),
Cross-cultural expatriates staff or employees who are transferred to a country other
are
role
than theirown to work in the
subsidiary MNC. Their in international
communication assignments usually
is to establish a relationship berweenthe MNC head-
quarters (HQ) and the MNC subsidiary in a distant location or country.
This presupposes that expatriates must be able to understand and commu-
nicate effectively in the subsidiary locations in order to comperently transter
knowledge and skills from the MNC HQ to the MNC subsidiary location.
JAMES BABA ABUGRE This is possible if expatriates are skilful in cross-cultural communication,
which involves the communication between people from different cultures,
who share different value attributes and social relations.
Globalization has succeeded in bringing the world and its difter-
Learning outcomes ent cultures under one umbrella. Phatak, Bhagat and Kashlak (2005:
60) describe globalization as the growing economic interdependence
At the end of this chapter, you should be able to: of countries worldwide and the increasing integration of economic life
across national boundaries, through the increasing size and variety of
.understand the complexities associated with communication across cross-border transactions in goods, services, capital flows, and rapid and
different cultural contexts; widespread diffusion of technology. This increase in global business has led

recognize the significance of cross-cultural communication to to more employees being sent on foreign assignments than ever before, and
theretore an enormous pressure has been exerted on the IHRM activity
expatriates in international management of MNCs. Consequently, administratgrs of MNCs, including international
understand the key challenges associated with expatriate corporations, are confronted daily with the task ot how to manage people
from diverse nationalities and cultures working achieve organi-
Communication in different contexts of MNC subsidiaries; together to
zational goals (Stahl et al, 2017). Managing
training when communicating
people
from diverse cultures
recognize the need for cross-cultural in an organization can be described as crosS-cultural
management, and
across cultures; a critical element of cross-cultural
management is cross-cultural commu-
nication. Cross-cultural communication is a
understand that competence in cross-cultural communication is the key process that involves the
interaction between people who are culturally ditterent trom each other in
tool for expatriates' efficiency in and adjustment to local subsidiaries;
such important areas as their value
orientations, preferred communication
acquire practical learning examples from the empirical case study. codes, role expectations, and perceived rules of social relations (Moran,
Harris and Moran, 2011). The
approach and style of communication
adopted in cross-national businesses can make the business either
ful or unsuccessful (Okoro, 2012; success
Padhi, 2016). Communicating across
Introduction cultures requires a
well-plannedeffort that will enbrace the cultural differ-
ences and similarities among the people working together in the company
The goal of this chapter is to explain the role of cultural differences in under consideration (Padhi, 2016), Hence, cross-cultural
communication
can be described as the
communicarion and their importance to multinational companies
in international business. In the face of globalization, MNCs send out global
(MNCs) of expatriates and local
recognition of diverse communicative behaviours
employees of MNCs across diverse cultures. It
enables expatriate managers and local
managers- expatriates
-
to work in their foreign
subsidiaries in distant
locations around the world. An expatriate, by this dehnition, is a person to co-exist and to coordinate their
employees from ditferent cultures
work activities in a concerted ettort
who has been sent by his or her company to another country to work in a towards the achievement of corporate
goals (Nakayama and Halualan1,
subsidiary. You are likely to find the term expatriate also uscd sweepingly 2010; Abugre, 2016).
 Cross-cultural communication is indispensable to expatriates work in
the subsidiary MNC (Abugre, 2016). According to Stahl et al (2017), expa-
riares who are able to effectively manage cross-cultural communication are
able to appreciate the way culturall ditterences and distance can improve
busines ettectiveness and pertormance ot the MNC.
In the coming paragraphs, this chapter will describe in detail what cross-
cultural communication is and its signihcance to IHRM; we will discuss
the context and cultural dilemmas of cros5-cultural communication, cross-
cultura. training and cross-cultural communication. A case study will
on the
underpin this discussion by drawing on the views of expatriates
essence of cross-cultural communication.
interpersonal and impersonal communication behaviours at the initiating
stages of their work can help prevent potential intercultural barriers among
these multicultural team members as they work together within the MNC
(Zhu, Nel and Bhat, 2006).
The next section will discuss the signihcance of cross-cultural commu-
nication in international management using expatriates as the conduit and
link between multinational businesses.
The significance of cross-cultural communication
to expatriate work in international management
Though communication icomes in many ditteren: torms. giobal managers
are still getting themselves into problems by assuming that communication

Cross-cultural communication is the same everywhere (Mckarl1n and Sweeney. 2006). I hi5 results tro:
the fact rhat there are fundamental differences in the ways various cultures
in international business view the essential facts of the lives of a group of people, and it is important
to gain an understanding ot the values and deep structures ot the cultures
It is an undeniable fact that communication is one of the most important with which one is communicating or negotiating Samovar and Porter.
with 1997). Consequently, understanding the value system of another culture
human processes, and that people cannot live without communicating
from in responses can help an expatriate worker appreciate the benaviours ot its people and
each other. Ditterent human behaviours arise variations

to and interpretations of messages of

communication (Samovar and Porter, know how to communicate with them appropriately. For example. knowing
1997). This is because there is a wide multicultural make-up
ot people
to vari-
that the Sub-Saharan African business terrain is complex and multi-faceted
working together and yet they may not understand each other due
interactions
because ot the multiplicity of linguistics and language usage arising trom
ations in communicative behaviours. Thus, understanding the multiple cultural values would help a Western expatriate working in that
between people is crucially related to an understanding
of the ways in which region to appreciate the diffhculties the indigenous employees go through in
messages are relayed through spoken
and written languages.
communicate with
order to process an othcial work communication.. since they have to shift
n international management, the ability to eftectively
between the indigenous language and the oifcial languages l:ke English.
become an increasingly important skill in rench and Portuguese adopted from their former colonial masters (Abugre.
people irom other cultures has
The increasingly competi 2016). Hence, cros-cultural communication competence demonstrates the
the corporate life of multinational companies.
business that MNCs must rely more and importance or learning to understanG the cultural ditterencesin the manner
tive n a t u r e of global presupposes
more on their employees having
the skills and competencies to appreciate in which diverse people undertake their business actions. While there i
cultures. Hence the significance of cross-cultural communica- evidence tor the universal experience ot communication behaviours, culture
issues across
business. influences the expression of emotion through cultural display rules or norms
tion competence in international
all levels,
teams across which prescribe the kinds of teelings that should be displayed or expressed
As corporations move toward employing global
from different parts of the world have to in a particular context (Lutz and \White, 1986). This is why there are no
expatriate managers who come universally acceptable display rules on non-verbal expressions ot Commu
nature of team interaction so as to
increase their knowledge of the complex
to be team members but also to plan, nication (eg the terminologies and jargons uscdi as non-verbal expressions
develop the skills required not only
This advocates the importance of vary trom culture to culture without naed svInbol:c mean1ngs. But, to ettec
organize, lead and sustain these
teams.
cross-cultural communication tively understand these non-verbal expressions, one has to learn them 1
understanding team interaction through
the context in which they are used. Thus, tor expatriates to be successtul in
there is necd for expatriates to develop compe-
a
competence. Accordingly, international management, they must communicate with the local or ind1g:
tence in cross-cultural
communication in order to manage cultural diversity,
which may have becone enous employees who share d1tterent culrures, and they (expatriates) must
cultural differences, and cross-cultural conflicts be able to ident1ty the communic.ative behaviours such as norms or rules ot
and conflict among multicultural team members
c o m m o n sources of tension
misunderstand each interaction in the local subsidiary. For example, when expatriates sojourn to
and
in the subsidiary. People can casily misinterpret subsidiary locations they dehnitely come into contact with local employees
Therefore, under-
orher due to the differences in their cultural upbringings. who are host country nationals from where the MNC subsidiary is located.
the differences in the individual team members' preterences
in
standing
 international HRM
Cross-cultural communicat
56 The context of 57

cultural values and linguistice

nationals have their own the expatriates or assignees to these toreign subsidiaries must learn the
These nost-country
with them will only succeed if communicative behaviours ot the local employees in order to be able to
orientations, and the expatriates working
to the indigenous behaviours
and attitudes of the local understand and appreciate their behaviours. "Communicative behaviours
theylearn to adapt
think and do things differently from the refers to the various linguistic torms and non-verbal arrangements pertain-
people, tor example, the way they ing to a specific culture, which foreigners and people who do not hail from
expatriates.
under- that culture can find diffhcult to understand (Abugre, 2016).
Cross-cultural communication competence deepens expatriates
in the delicate behaviours and attitudes Therefore, the context of subsidiary operations brings about the dilemma
standing of and proficiency
of cross-cultural management and communication due to the social and
embedded in the host cultural language.
means having cultural differences and distance between the
the wide geographical expatri
Having competence in crosS-cultural communication
the ability to communicate etfectively with co-workers or team
members ate's home country and the subsidiary location. The geographical origins
who are culturally different from you in the host subsidiary community. of people working together in a subsidiary have a strong impact on their
cross-cultural communication competence is the overall internal cultural value orientations, which can impede the level of cultural aggre-
Theretore,
decode and encode information in accordance with the commu- gation of expatriates in the subsidiary if a common basis of language or
capacity to
nication practices of the host culture (Kim, 1988; 1995). When expatriates communication is lacking. Wide ditferences in cultural upbringing and
acquire sufficient levels of cross-cultural communication competence, they contextual languages generate communication gaps and differences amongst
become more mature members of the host sOCiety and less reliant on local people. The differences are created and sustained by a complex set of values
workers tor protection in manag1ng their daily activities. The host commu- and behaviours that are deeply embedded within the members of a culture
nIcation competence indicates the ability of expatriates to properly identity (Lustig and Koester, 2006). Since the value systens are firmly linked to the
and realize messages irom the host environment in ditferent situations ot individual employee or staff identity, it is critical that both expatriates and
Interaction. Consequently, cross-cultural communication is very signihcant local staff understand the others' cultural values and their importance, as
to expatriates ability to work and manage the multinational subsidiary in disrespect for people's values can lead to conflict and a turbulent multina-
distant environment. tional subsidiary. Thus, cultural patterns and orientations in the form of
avng explaned the signihcance ot cross-cultural communication in contextual
communicative behaviours are significant determinants of differ
I1ternational management, the next section deals with the diffhculties and ent organizational behaviours which MNCs cannot afford to overlook in the
dilemmas of cross-cultural communication faced by MNCs due to different their
business contexts and locations in their international operations.
operations of subsidiaries in distant
cultures. This is why cross-culrural
communication comperence is of great significance for expatriate manage-
ment and operations in complex subsidiary cultures. Complex subsidiary
Context and cultural dilemma of cross-cultural cultures mean that MNCs are branded as multilingual communities, as they
of
communication consist groups subunits dispersed across a variety of cultures, each
of its
The multinational corporation (MNC) is an organization composed ot
worktorce having native language,
own form of discourse and cultural

several business units and diverse work groups As

across
spread the globe.
result, MNCs send expatriate executives from subsidiary to subsidiary and
Irom one country to another in order to build their global relationships and
also to develop a corporate culture wichin their
common
resourcehuman
management practices. This also guarantees that the MNCs have the neces-
sary talent in the right location at the right time. Consequently, use
MNCs
multiple types of employees who hail from different countries and cultures
to operate their various transnational businesses, which presupposes the
usefulness and application of multiple language usages or multilingualism
in international business. This linguistic divergence of the staff which results
irom the ditferent speech communities they come trom can pose a contex-
ual dilemma of cross-cultural communication to international business.
This is even more problematic when the language of the HQ does not share
any common knowledge or similarities with that of the local subsidiary. As
diverse group of people within the MNC in the various local subsidiaries,
environment (Babcock and DuBabcock, 2001; Phillips, Lawrence and
Hardy, 2004). In transnational business, communication boundaries are
a
not clear cut; however, multiple languages are often and concurrently used
Within a subunit, between subunits, and between subunits and headquarters
(Luo and Shenkar, 2006). Therefore, effective application of communication
strategies and proper language design for foreign assignees or expatriates
can improve intra-network communication, inter-unit learning, parent-
Subsidiary coordination and integration, and intra-unit value creation within
thegeographically dispersed network of the MNC (Luo and Shenkar, 2006).
It is theretore important that, to communicate more effectively in global
business environments, foreign assignees or expatriates understand basic
features about cultures and subcultures. Foreign assignees or expatriares
also have to recognize cultural diversity and differences and acquireinter-
cultural sensitivity towards such differences across the globe. Specihcally,
they should .understand acceptable and unacceptable communicative
styles that are associated with the various national and cultural values and
 beliefs. In addition, extensive practical Cxpatriate managers tor torcign assignments should be the tocus ot manag
knowledge of how to cope with
problems has been directed toward international business communicators,
revolving around such issues as verbal (oral and written) and nonverbal
ers of MNCs. Thus, it is very important for MNCs to
train and develop
employees in all subsidiary locations so pertorm their t.ask
that they can

communication
and intercultural
patterns, business etiquette, business and social customs, and accomplish the objectives tor which they were sent to the subsidiary
negotiation processes in ditferent countries (Harris and locations.
Moran, 1996). Thus, communication in international business has become Generally, training is a term often used casually to describe almost Any
an
most
important issue, not only to MNCs transacting business abroad, but to
educational institutions where
effort initiated by an organization to foster learning among its members. On
people are required
to gain knowledge the other hand, cross-cultural training can be described as the processes and
of business communication.
tools used to enhance learning across cultures. It is the knowledge acquired
Effective communication necessitates an understanding between expa- from learning the behaviours and value systems of ditierent cultures.
triates and local employees so that the needs of both
expatriates and local Cross-cultural training is considered extremeiy important by itern.a-
employees are met in the relationship of work in the subsidiary. Confusions
tional HR practitioners as it helps in developing essentials skills nceded
and breakdowns in communication can come about
through inability
to tor global managers who are expected to work w t culturally diverse
speak the local language, poor translation, ignorance of idioms, and lack of teams, manage overseas clients, travel to ditterent couniries tor buSiness
perception of the meaning of non-verbal language and symbols (Christopher, purposes, and perform effectively in the field of their assigned job Pandey,
2012). Hence, awareness of communicative behaviours, and being caretul
and ready to learn from people are 2012).Thus, cross-cultural training in cross-Cultural commun:cation can
widely understood to be necessary for
interacting successtully with different others (Guirdham, 1999). Being aware help expatriates to become competent in cross-cultural issues: t ean also
of the communicative behaviours of other people is help facilitate rapid adjustment to the toreign subsidiary, heiping exp.atri-
possible through train-
ates promptly develop their capabilities in foreign valuc system.s, thereby
ing. Thus, when expatriates are trained in the languages and behaviours of
the local people, including the local cultural values, they
enhancing their pertormance and adaptability to the oca. or subsidi.ary
(expatriates) can community (Abugre, 2016).
become
comperent
comperence will
in the
understanding
enable them
of issues in the subsidiary. This
to work better and also to adjust socially
within the local communities. The next section will discuss the perspective
of cross-cultural training in cross-cultural communication.
Language training
As language is regarded as a very important instrument in he oper.a
tions of international business (Babcock and Du-B1bcock, -001. so
the signihcance of cross-cultural is
communication and understamding
Cross-cultural training and cross-cultural diverse multinational statt o:.
working together. Accord:nglv. Ashamalia (199$)
communication proposes that toreign language training should be ob..git:enr
an
cultural training of personnel because cros in

knowledge ot the language the host ot

It has become country is critical to

successtully living and working thar country. This
acceptable norm that people do well in new environments
an
because linguistic skills
in is

when the norms and protocols governing these new envi- and competenncy ot the evpatr:ate can
they understandstart antecedent to expatriate adjustment and can also it.tntbei

enhance expatriates' citec

ronments. They can to do this by simply learning to adapt to these tive negotiation skills in the
foreign norms and protocols; hence, the signifcance of training in cross- toreign culture. Thus, tor epatriate ssigned to

cultural communication of expatriates in foreign multinational subsidiaries.

an
English-speaking country pre-departure Engish anguage trainurng would
tacilitate their cross-cultural
Expatriate staff in multinational subsidiaries face many inherent prob adjustment the development ot tiheif cross
and
cultural communication skills
ems associated with their assignments, both in the overseas workplace and (Ko a:rd Yang.
20111. The taut th.ar there
is

are marked
in the
foreign society in which they reside. These problems may involve divergences ot work bxhaviours betwee local or indigenos
culture shock (ie the painful effects of
being exposed to unfamiliar behav- employees and expatriates, and ditterenccs in ponts ot reterernce, expect-
1Ours in another
tions and approaches to work; it is only by
culture), differences in work-related norms, differences in training expatriates n this are
ot cultural specities that
social relations, and language. Moreover, they they will btter understand the typical ndigenou
may experience personal and cultural behaviours ot the nmulunational
tamily problems that can trigger or increase their level of stress in their subidiary. More importarntly,
cross-cultur.al training carn heip to minimize any negative work behaviOur or
professional lives and work. Given this stream of obstacles encountered by
expatriates in their line of their work, many are likely to fail in their over expatriates in the subsidiar1es by increas1ng their cultural awareness.
Thus, through cross-cultural traning cross cultural
AINC exeeutives 1.ay be able to dissei1inate their strategies commuicatioli,
seas assignment or in
may not even be able complete it. As a result, preparing and policic s ana