Goal interdependence and leader‐member relationship for cross‐cultural leadership in foreign ventures in China

Abstract

PurposeThis study seeks to empirically examine the impact of goal interdependence and leader‐member relationship on cross‐cultural leadership in joint ventures in China.Design/methodology/approachThe research question is how to facilitate leader‐member relationships between foreign managers and Chinese employees in joint ventures in China. Two hypotheses were generated. This study applies the theory of cooperation and competition and the theory of LMX to develop responses to the research questions. Completed survey questionnaires were analyzed on a valid sample of 199.FindingsResults supported the theorizing that cooperative goals between managers and employees can strengthen their leader‐member relationships, which in turn facilitate cross‐cultural leadership. The results also extended this theorizing to cross‐cultural settings.Research limitations/implicationsAlthough the theory of cooperation and competition and the theory of LMX were developed in the West, they could be useful in Chinese contexts for understanding cross‐cultural leadership.Practical implicationsForeign managers working in joint ventures in China who develop strongly cooperative goals may be able to develop high quality relationships that in turn promote employee commitment and performance.Originality/valueThis study provides overall support for the theory of cooperation and competition and the theory of LMX. Although developed in the West, they have been found useful for predicating behavior in Chinese contexts regarding cross‐cultural leadership.