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Cultural friction in leadership beliefs and foreign-invested enterprise survival

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Abstract

Cultural friction posits that cultural differences may be either synergistic or disruptive, but does not specify when or how synergies or disruptions emerge. We theorize that synergies will emerge in foreign-invested enterprises (FIEs) when cultural differences in leadership beliefs are less central to the host nation’s cultural identity; while disruption will occur when differences are in more culturally central leadership beliefs. Analyzing survival data from 274 FIEs in China, we found support for these hypotheses with five of the six GLOBE leadership dimensions. As predicted, differences in the Participative and Team-Oriented dimensions were associated with higher firm death, while differences in the Charismatic, Autonomous and Self-Protective dimensions were associated with firm survival. Our results indicate that while there are areas where differences may indeed need to be accepted or minimized, there are other areas where differences can be beneficial. This requires that managers identify more central aspects of local culture to determine whether to minimize differences or to leverage their synergistic potential.

Abstract

La friction culturelle signifie en principe que les différences culturelles peuvent être synergiques ou préjudiciables, mais elle ne précise pas quand ni comment les synergies ou les préjudices émergent. Nous soutenons que les synergies verront le jour dans les entreprises à participation étrangère (EPE) quand les différences culturelles sur les notions de leadership sont moins centrales à l'identité culturelle du pays hôte ; alors que le préjudice se produira lorsque les différences sur les notions de leadership sont culturellement plus centrales. Analysant des données sur la survie de 274 EPE en Chine, nous avons trouvé des éléments qui valident ces hypothèses pour cinq des six dimensions GLOBE sur le leadership. Comme prévu, les différences sur les dimensions Participatif et Orienté vers l'équipe ont été associées à une mortalité plus élevée des entreprises, alors que des différences sur les dimensions Charismatique, Autonome et Auto-protégé ont été associées à la survie des entreprises. Nos résultats indiquent que bien qu'il existe des domaines où les différences peuvent en effet être acceptées ou minimisées, il y a d’autres domaines où les différences peuvent être bénéfiques. Cela exige que les gestionnaires identifient les aspects de la culture locale les plus centraux afin de déterminer s'il est préférable de minimiser les différences ou exploiter leur potentiel synergique.

Abstract

La fricción cultural insta que las diferencias culturales pueden ser ya sean sinérgicas o disruptivas, pero no especifica cuando o como surgen las sinergias o las disrupciones. Teorizamos que las sinergias surgirán en empresas con inversión extranjera (FIEs) cuando las diferencias culturales en creencias de liderazgo son menos fundamentales para la identidad cultural del país anfitrión, mientras que la disrupción ocurrirá cuando las diferencias están en creencias de liderazgo más fundamentales culturalmente. Analizamos datos de supervivencia de 274 empresas con inversión extranjera en China, encontramos soporte para estas hipótesis con seis de las dimensiones de liderazgo GLOBE. Como se predijo, las diferencias en las dimensiones Participativa y de Orientación Grupal fueron asociadas con mayor muerte empresarial. mientras que diferencias en las dimensiones Carismático, Autónomo, y Auto-Protector fueron asociadas a supervivencia empresarial. Nuestros resultaos indican que mientras que hay áreas en donde las diferencias pueden de hecho se aceptadas con minimizadas, hay otras áreas en donde las diferencias pueden ser beneficiosas. Esto requiere que los gerentes identifique aspectos más fundamentales de la cultural local para determinar si minimizar diferencias o si aprovechar su potencial su potencial sinérgico.

Abstract

A fricção Cultural postula que as diferenças culturais podem ser tanto sinérgicas quanto disruptivas, mas não especifica quando ou como as sinergias ou rompimentos surgem. Nós teorizamos que as sinergias surgirão em empresas com investimentos estrangeiros (FIEs) quando as diferenças culturais nas crenças de liderança são menos centrais para a identidade cultural do país de acolhimento, enquanto que o rompimento ocorrerá quando as diferenças estão em crenças de liderança culturalmente mais centrais. Analisando dados de sobrevivência de 274 FIEs na China encontramos apoio para essas hipóteses em cinco das seis dimensões de liderança GLOBE. Como previsto, as diferenças nas dimensões participativa e orientada à equipe foram associadas com uma maior mortalidade de empresas, enquanto que diferenças nas dimensões carisma, autonomia e autoproteção foram associadas com a sobrevivência da empresa. Nossos resultados indicam que, embora existam áreas em que diferenças devam de fato ser reconhecidas ou minimizadas, existem outras áreas em que as diferenças podem ser benéficas. Isto requer que gestores identifiquem aspectos mais centrais da cultura local para determinar se minimizam as diferenças ou alavancam o seu potencial sinérgico.

Abstract

文化摩擦假定文化差异可能要么是协同性的, 要么是破坏性的, 但没有明确协同性或破坏性何时或如何出现。我们论证, 在外商投资企业 (FIEs) 中, 当领导力信念中的文化差异对东道国文化特征而言不太在核心位置时协同性会出现; 当差异存在于较为文化核心的领导力信念中时, 破坏性将会发生。通过分析来自中国的274家FIEs的生存数据, 我们发现GLOBE领导力六维度中的五个维度都支持这些假设。正如所预测的那样, 参与和团队导向维度的差异与较高的公司死亡相关, 然而魅力、自治和自我保护维度的差异与公司的生存相关。我们的结果表明, 虽然有一些领域的差异可能确实需要被接受或最小化, 但是也有其它一些领域的差异可能是有益的。这需要管理者识别当地文化中更核心的方面以决定是让差异最小化还是去利用它们的协同潜力。

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Notes

  1. Thanks to one of our reviewers for this suggestion.

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Acknowledgements

This research was partially funded by a Fulbright Fellowship to the second author. The results reported in this article were initially presented at the International Association of Chinese Management Research Conference in Shanghai, China, 2010. We are indebted to three anonymous reviewers and to Editor David Thomas for their insights and suggestions during the review process.

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Correspondence to Pamela Tremain Koch.

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Accepted by David C Thomas, Area Editor, 21 January 2016. This article has been with the authors for four revisions.

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Koch, P., Koch, B., Menon, T. et al. Cultural friction in leadership beliefs and foreign-invested enterprise survival. J Int Bus Stud 47, 453–470 (2016). https://doi.org/10.1057/jibs.2016.16

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  • DOI: https://doi.org/10.1057/jibs.2016.16

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