FM-House.qxd 3/19/2004 4:05 PM Page i FM-House.qxd 3/19/2004 4:05 PM Page ii 62 GLOBE S OCIETIES 1. Albania 32. Japan 2. Argentina 33. Kazakhstan 3. Australia 34. Kuwait 4. Austria 35. Malaysia 5. Bolivia 36. Mexico 6. Brazil 37. Morocco 7. Canada (English speaking) 38. Namibia 8. China 39. The Netherlands 9. Colombia 40. New Zealand 10. Costa Rica 41. Nigeria 11. Czech Republic 42. The Philippines 12. Denmark 43. Poland 13. Ecuador 44. Portugal 14. Egypt 45. Qatar 15. El Salvador 46. Russia 16. England 47. Singapore 17. Finland 48. Slovenia 18. France 49. South Africa (Black Sample) 19. Georgia 50. South Africa (White Sample) 20. Germany-East (former GDR) 51. South Korea 21. Germany-West (former FRG) 52. Spain 22. Greece 53. Sweden 23. Guatemala 54. Switzerland 24. Hong Kong 55. Switzerland (French-Speaking) 25. Hungary 56. Taiwan 26. India 57. Thailand 27. Indonesia 58. Turkey 28. Iran 59. United States 29. Ireland 60. Venezuela 30. Israel 61. Zambia 31. Italy 62. Zimbabwe FM-House.qxd 3/19/2004 4:05 PM Page iii M GLOBE C AJOR OLLABORATORS THE GLOBE COORDINATING TEAM1 Booysen, Annie E, University of South Africa (South Africa) Bourantas, Dimitrios, Athens University of Economics and Staffan Akerblom, Stockholm School of Economics, Business (Greece) Switzerland Brenk, Klas, Univerziti Ljubjana (Slovenia) Felix Brodbeck, University of Munich, Germany Brodbeck, Felix, Aston Business School (Germany) Jagdeep Chhokar, Indian Institute of Management— Carl, Dale Everton, University of Calgary (Canada) Ahmedabad, India Castel, Philippe, Universite de Bourgogne (France) Marcus Dickson, Wayne State University, Michigan, USA Chang, Chieh-Chen, National Sun Yat-Sen University Peter Dorfman, New Mexico State University, USA (Taiwan) Paul Hanges, University of Maryland, USA Chau, Sandy, Lingnam College (Hong Kong) Mansour Javidan, University of Calgary, Canada Cheung, Frenda, Hong Kong Polytechnic University (Hong Enrique Ogliastri, Instituto Centroamericano de Administra- Kong) cion de Empresas, Costa Rica Chhokar, Jagdeep S., Indian Institute of Management— Ruiz-Quintanilla, Antonio S. A., Aarhus School of Business, Ahmedabad (India) Denmark Chiu, Jimmy, City University of Hong Kong (Hong Kong) Marius van Wyk, University of South Africa, South Africa Cosgriff, Peter, Lincoln University (New Zealand) Dastmalchian, Ali, University of Lethbridge (Iran) Dela-Coleta, Jose Augusto, Centro Universitario do GLOBE COUNTRY CO-INVESTIGATORS2 Triangulo (Brazil) Dela-Coleta, Marilia Ferreira, Universidade Federal de Abdalla, Ikhlas A., Arab Fund for Economic & Social Uberlandia (Brazil) Development (Qatar) den Hartog, Deanne N., Erasmus Universiteit (Netherlands) Adetoun, Bolanle Akande, Potchefstroom University (South Deneire, Marc, University of Nancy 2 (France) Africa) Donnelly-Cox, Gemma, University of Dublin—Trinity Adetoun, Babajide Samuel, Appropriate Development College (Ireland) Associates (Nigeria) Dorfman, Peter W, New Mexico State University (Mexico) Akande, Adebowal, Potchefstroom University (South Africa) Earley, Christopher, University of Indiana (China) Agourram, Hafid, University of Quebec—Montreal Elgamal, Mahmoud A. E., Kuwait University (Kuwait) (Morocco) Erez, Miriam, Israel Institute of Technology (Israel) Akerblom, Staffan, Stockholm School of Economics Falkus, Sarah, University of Queensland (Australia) (Sweden) Fearing, Mark, Lincoln University (New Zealand) Akande, Bolanle Elizabeth, The Center for Sustainable Field, Richard H. G., University of Alberta (Canada) Development and Gender Issues (Nigeria) Fimmen, Carol, Western Illinois University (Bolivia) al-Homoud, Moudi, Kuwait University (Kuwait) Frese, Michael, University of Giessen (Germany) Altschul, Carlos, Universidad de Buenos Aires (Argentina) Fu, Pingping, Chinese University of Hong Kong (China) Alvarez-Backus, Eden, Sony Electronics (Philippines) Grachev, Mikhail V., Western Ilinois Universsity (Russia) Andrews, Julian, University of Alberta (Canada) Gutierrez, Celia, Complutense University (Spain) Arias, Maria Eugenia, The University of Melbourne (Costa Hartanto, Frans Mardi, Institut Technologi Bandung Rica and El Salvadore) (Indonesia) Arif, Mirian Sofyan, University of Indonesia (Indonesia) Hhashha, Mohamed Abou, Alexandria University (Egypt) Ashkanasy, Neal, University of Queensland (Australia) Holmberg, Ingalill, Stockholm School of Economics Asslani, Arben, Bellevue University (Albania) (Sweden) Audia, Guiseppe, London Business School (Italy) Holzer, Marina, Altschul Consultores (Argentina) Bakacsi, Gyula, Budapest University of Economic Sciences Hoppe, Michael, Center for Creative Leadership (USA) (Hungary) Howell, Jon P., New Mexico State University (Mexico) Bautista, Arnoldo, National Center of Investigation and Ibrieva, Elena, University of Nebraska—Lincoln (Kazakhstan) Technological Development (Mexico) Ickis, John C., INCAE ( Costa Rica) Bao, Jimmy, Fudan University (China) Ismail, Zakaria, Universiti Kebangsaan Malaysia (Malaysia) Bendova, Helena, Jihoceske University (Czech Republic) Jarmuz, Slawomir, University of Opole (Poland) Beveridge, David, Western Illinois University (Bolivia) Javidan, Mansour, University of Calgary (Iran) Bhagat, Rabi S., University of Memphis (USA) Jesuino, Jorge Correia, Instituto Superior de Sciencias do Blacutt, Alejandro, Universidad Catolica Bolivian (Bolivia) Trabalho e da Empresa (Portugal) Bodega, Domenico, University of Luigi Bocconi (Italy) Ji, Li, Hong Kong Baptist University (Singapore) Bodur, Muzaffer, Bogazici University (Turkey) Jone, Kuen-Yung, Kaohsiung Medical College (Taiwan) Booth, Simon, University of Reading (England) Jones, Geoffrey, University of Reading (England) FM-House.qxd 3/19/2004 4:05 PM Page iv Jorbenadse, Revaz, Tbilisi State University (Georgia) Schramm-Nielson, Jette, Copenhagen Business School Kabasakal, Hayat, Bogazici University (Turkey) (Denmark) Keating, Mary, University of Dublin—Trinity College Schultz, Majken, Copenhagen Business School (Denmark) (Ireland) Shi, Zuqi, Fudan University (China) Keller, Andrea, University of Zurich (Switzerland [French- Sigfrids, Camilla, Swedish School of Economics and speaking]) Business Administration (Finland) Kennedy, Jeffrey C., Lincoln University (New Zealand) Song, Kye-Chung, Chungnam National University (South Kim, Jay S., Ohio State University (South Korea) Korea) Kipiani, Giorgi, Georgian Academy of Sciences (Georgia) Szabo, Erna, Johannes Kepler University (Austria) Kipping, Matthias, University of Reading (England) Teo, Albert C., National University of Singapore (Singapore) Konrad, Edvard, Universiti Ljubjana (Slovenia) Thierry, Henk, University of Tilburg (Netherlands) Koopman, Paul L., Vrije Univeriteit-Amsterdam Tjakranegara, Jann Hidayat, Institut Technologi Bandung (Netherlands) (Indonesia) Kuan, Fuh-Yeong, Shu-Te Institute of Technology (Taiwan) Trimi, Sylvana, University of Nebraska—Lincoln (Albania) Kurc, Alexandre, University of Nancy 2 (France) Tsui, Anne S., Hong Kong University of Science and Lacassagne, Marie-Francoise Universite de Bourgogne, Technology (China) (France) Ubolwanna, Pavakanum, Thammasat University (Thailand) Lee, Sang M., University of Nebraska—Lincoln (Albania van Wyk, Marius W., University of South Africa (South and (Kazakhstan) Africa) Leeds, Christopher, University of Nancy 2 (France) Vondrysova, Marie, University of South Bohemia (Czech Leguizamon, Francisco, INCAE (Costa Rica) Republic) Lindell, Martin, Swedish School of Economics and Weibler, Juergen, University of Hagen (Switzerland) Business Administration (Finland) Wilderom, Celeste, Tilburg University (Netherlands) Lobell, Jean, AcXEL International (Philippines) Wu, Rongxian, Suzhou University (China) Luthans, Fred, University of Nebraska—Lincoln (Albania Wunderer, Rolf, University of St. Gallen (Switzerland) and Kazakhstan) Yakob, Nik Rahiman Nik, Universiti Kebangsaan Malaysia Maczynski, Jerzy, University of Wroclaw (Poland) (Malaysia) Mansor, Norma, University of Malaysia (Malaysia) Yang, Yongkang, Fudan University (China) Martin, Gillian, University of Dublin—Trinity College Yin, Zuoqiu, Fudan University (China) (Ireland) Yoshida, Michio, Kumamoto University (Japan) Martin, Michael, University of Nebraska—Lincoln (Albania) Zhou, Jian, Fudan University (China) Martinez, Sandra M., Widener University (Mexico) McMillen, Cecilia, University of San Francisco de Quito (Costa Rica, El Salvador, and Guatemala) Messallam, Aly, Alexandria University (Egypt) GLOBE SENIOR RESEARCH ASSOCIATES3 Misumi, Emiko, Institute for Group Dynamics (Japan) Misumi, Jyuji, Institute for Group Dynamics (Japan) Roy-Bhattacharya, Joydeep, Independent Literary Author, Morsi, Nabil M., Alexandria University (Egypt) USA Ngin, Phyllisis M., Melbourne Business School (Singapore) Ram Aditya, Florida International University, USA O’Connell, Jeremiah, Bentley College (Spain) Mary Sully de Luque, Thunderbird University, Arizona, USA Ogliastri, Enrique, Instituto Centroamericano de Administra- Vipin Gupta, Grand Valley State University, Michigan, USA cion de Empresas, Costa Rica (Colombia) Papalexandris, Nancy, Athens University of Economics and Business (Greece) Peng, T. K., I-Shou University (Taiwan) END NOTES Preziosa, Maria Marta, Instituto para el Desrrollo de Ejecutivos en la Argentina (Argentina) 1. The Globe Coordinating Team served as an advisory Prieto, Jose M., Complutense University (Spain) group to the Principal Investigator, Robert J. House, with Rakitsky, Boris V., Institute of Perspectives and Problems respect to policies and procedures for data collection and of the Country (Russia) administration of GLOBE. Reber, Gerhard, Johannes Kepler University (Austria) 2. The Country Co-Investigators (CCIs) assisted in the Rogovsky, Nikolai, International Labor Organization (Russia) formulation of the instruments used in this study, collected Rozen, Amir, Israel Institute of Technology (Israel) the data relevant to their countries and assisted in interpre- Sabadin, Argio, Universiti Ljubljana (Slovenia) tation of the data. The countries they represented are in Sahaba, Majhoub, Groupe EFET (Morocco) parenthesis following their names and their institutional Siles, Marcelo, Michigan State University (Bolivia) affiliations. Salgado, Elvira, University of the Andes, Bogota (Colombia) 3. The Senior Research Associates assisted Robert Salon de Bustamente, Colombia, Universidad de los Andes House in the administration of the GLOBE research (Venezuela) program, provided advice to Country Co-Investigators, Santana-Melgoza, Carmen, Smith College (Mexico) maintained GLOBE files and budget, provided status Sauers, Daniel A, Lincoln University (New Zealand) reports, and performed other administrative functions. FM-House.qxd 3/19/2004 4:05 PM Page v FM-House.qxd 3/19/2004 4:05 PM Page vi Copyright © 2004 by Sage Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. For information: Sage Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: [email protected] Sage Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom Sage Publications India Pvt. Ltd. B-42, Panchsheel Enclave Post Box 4109 New Delhi 110 017 India Printed in the United States of America Library of Congress Cataloging-in-Publication Data Culture, leadership, and organizations: The GLOBE study of 62 societies / edited by Robert J. House...[et al.]. p. cm. Includes bibliographical references and index. ISBN 0-7619-2401-9 (Cloth) 1. Global Leadership and Organizational Behavior Effectiveness Research Program. 2. Leadership—Research. 3. Organizational behavior—Research. 4. Leadership—Cross-cultural studies. 5. Organizational behavior—Cross-cultural studies. 6. Social values—Cross-cultural studies. I. Title: GLOBE study of 62societies. II. House, Robert J. III. Global Leadership and Organizational Behavior Effectiveness Research Program. HD57.7 .L4323 2004 302.3´5—dc22 2003024360 This book is printed on acid-free paper. 04 05 06 07 10 9 8 7 6 5 4 3 2 1 Acquisitions Editor: Al Bruckner Editorial Assistant: MaryAnn Vail Copy Editor: Edward Meidenbauer Production Editor: Diane S. Foster Typesetter: C&M Digitals (P) Ltd. Proofreader: Libby Larson and Kris Bergstad Indexer: Molly Hall Cover Designer: Ravi Balasuriya FM-House.qxd 3/19/2004 4:05 PM Page vii C ONTENTS Foreword xv Harry C. Triandis Preface xxi Robert J. House PART I: Introduction 1 Robert J. House 1. Illustrative Examples of GLOBE Findings 3 Robert J. House Increased Globalization of Business 4 The Increased Importance of Sensitivity to Cultural Differences 5 Differing Views and Conceptualizations of Leadership 5 An Illustration of Differences and Cultural Practices 6 Differences in Leadership Practices 7 Plan of This Book 7 2. Overview of GLOBE 9 Robert J. House Mansour Javidan Major Questions Concerning the Effects of Cultures on the Practice of Leadership 9 The Need for Cross-Cultural Leadership Theory and Research 10 The GLOBE Research Program 11 Leader Behavior and Attributes 14 Qualitative Research 15 Construct Definitions of Leadership and Culture 15 GLOBE Operational Definition of Culture 15 The GLOBE Conceptual Model 16 The Integrated Theory 17 Two Fundamental Cross-Cultural Issues 19 The GLOBE Questionnaire Scales 20 Phase 2 Hypotheses 23 Strengths of the GLOBE Research Design 24 Contributions 24 Appendix: Structural Contingency Theory 26 FM-House.qxd 3/19/2004 4:05 PM Page viii 3. A Nontechnical Summary of GLOBE Findings 29 Mansour Javidan Robert J. House Peter W. Dorfman Societal Cultures 30 Societal Culture and Organizational Culture 37 Culture and Societal Effectiveness 37 Culture and Leadership 39 Leadership Profiles of Cultural Clusters 42 Culture Dimensions and Leadership CLTs 45 PART II:Prior Literature 49 Peter W. Dorfman 4. Cultural Influences on Organizational Leadership: Literature Review, Theoretical Rationale, and GLOBE Project Goals 51 Peter W. Dorfman Robert J. House Cultural Convergence: How Far Will It Go? 53 Varied Perspectives of Leadership 54 Western-Dominated Leadership Research 56 The GLOBE Definition of Leadership 56 Varied Perspectives on Culture 57 Prior Empirical Research: Culture and Leadership 57 Leadership Topics Studied Within a Cross-Cultural Leadership Framework 58 Non-Western Conceptualizations of Leadership 62 Three Competing Propositions: Cultural Congruence, Cultural Difference, and Near Universality of Leader Behaviors 64 Conclusion: Cultural Influences on Leadership and GLOBE Goals 66 Summary: Anticipated Theoretical and Practical Contributions of Project GLOBE 67 5. The Impact of Societal Culture and Industry on Organizational Culture: Theoretical Explanations 74 Marcus W. Dickson Renee S. BeShears Vipin Gupta GLOBE’s Cultural Dimensions: Values and Practices 75 Levels of Impact on Organizational Culture 75 Explanatory Mechanisms 77 Additional Mechanisms of Influence 85 Concluding Examples and Research Agenda 86 PART III:Research Methodology 91 Paul J. Hanges 6. Research Design 95 Robert J. House Paul J. Hanges Sampling Design 96 FM-House.qxd 3/19/2004 4:05 PM Page ix GLOBE Measures 98 Unique Strengths of the GLOBE Research Design 101 7. The Linkage Between GLOBE Findings and Other Cross-Cultural Information 102 Mansour Javidan Markus Hauser The Human Development Report 105 Global Competitiveness Rankings by the World Economic Forum 108 World Development Indicators 109 The World Values Survey 109 Creating the Relevant Archival Data Factors 110 The Impact of National Wealth 117 8. The Development and Validation of the GLOBE Culture and Leadership Scales 122 Paul J. Hanges Marcus W. Dickson Phase 1: Questionnaire Scale Development 122 Phase 2: Final Sample and Confirmation of Measurement Scales 128 Conclusions 145 9. Multisource Construct Validity of GLOBE Scales 152 Vipin Gupta Mary Sully de Luque Robert J. House Developing Unobtrusive Measures of the GLOBE Societal Cultural Practices Scales 153 Questionnaire Validation Measures for GLOBE Societal Value Scales 162 Conclusions 172 10. Regional and Climate Clustering of Societal Cultures 178 Vipin Gupta Paul J. Hanges Part A: Regional Clustering of Societal Cultures 178 Empirical Test of Societal Clusters 189 Implications for Theory Building 203 Part B: Climatic Clustering of Societal Cultures 205 Conclusions 215 11. Rationale for GLOBE Statistical Analyses: Societal Rankings and Test of Hypotheses 219 Paul J. Hanges Marcus W. Dickson Mina T. Sipe Ranking of GLOBE Societies and the Application of Test Banding 219 Statistical Analyses Testing Main GLOBE Hypotheses 221 Summary and Conclusion 231