Cross‐cultural leadership adjustment: A strategic analysis of expatriate leadership at a British multinational enterprise

Abstract

AbstractThe current study examines the determinants of cross‐cultural leadership adjustment (CLA) and explores any potential linkage with performance. CLA adaptions are observed using a sample of leaders from two cultural regions, the United Kingdom and Germanic‐Europe, with expatriate experience at a British multinational enterprise (MNE) in seven different countries, including non‐European nations. Using data from a single company in multiple regions helps to isolate the firm, industry and regional effects. We adopted mixed method approach to address the question on what mode of adjustment leads to better performance and the antecedents of CLA which leads to better work‐performance. The results indicated that most expatriate leaders used the exploration mode of adjustment, under which both they and subordinates made substantial behavioral adaptations. This mode of adjustment addressing cultural differences had a positive impact on work‐performance along with replication mode. Additional antecedents here, such as differences relating to hierarchy, decision‐making and language/ communication, also impacted CLA.