Leading Multicultural Teams in the PR China

Reinhard Meckl,Matthias Johanning

doi:10.4236/ajibm.2013.31007

Reinhard Meckl, Matthias Johanning

Open Access

https://doi.org/10.4236/ajibm.2013.31007

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Abstract

This paper examines the effect of transformational, transactional and passive leadership on the performance of multicultural teams in the People’s Republic (PR) of China. 42 multicultural teams with a total of 158 team members employed at German companies in the PR China completed a questionnaire which has been analyzed to show the extent to which these three leadership styles moderate the relationship between cultural diversity and social integration, satisfaction, communication effectiveness and conflict. To evince an explanation for discrepancies it has also been examined whether all three leadership styles justified mediating effects. The relationship between cultural diversity and several team variables has been explained through the resource-oriented theory, the information processing theory, the similarity-attraction theory and the social identity and social categorization theory. The effect of transformational, transactional and passive leadership is based on the theory of charismatic leadership from Bass and its related “Full Range of Leadership”. Results suggest transformational, transactional and passive leadership moderate the relationship between cultural diversity and conflict. In addition, it has been shown that transactional leadership mediates all four group variables. This study identifies practical implications and proposes an agenda for future research.

Highlights

In the course of growing internationalization, multicultural teams have been established as standard in most multi-national companies [1]
This paper examines the effect of transformational, transactional and passive leadership on the performance of multicultural teams in the People’s Republic (PR) of China. 42 multicultural teams with a total of 158 team members employed at German companies in the PR China completed a questionnaire which has been analyzed to show the extent to which these three leadership styles moderate the relationship between cultural diversity and social integration, satisfaction, communication effectiveness and conflict
Based on the defined problem, this paper examines the effect of leadership styles on the performance of multicultural teams in the PR China

Summary

Introduction

In the course of growing internationalization, multicultural teams have been established as standard in most multi-national companies [1]. This development is especially applicable to the PR China, whose status as the second biggest economy behind the USA reveals its importance for the business operations of international companies [2]. Because existing leadership instruments cannot necessarily be applied to varying culturally heterogeneous working environments, the different leadership situation of the PR China may cause difficulties and requires the selection of an appropriate leadership style. The underlying problem of this study is being formulated as follows: through which specific leadership style can the performance of multicultural teams in the PR China be increased?

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