Paradoxes and Paradoxical Leader Behaviors: Evidence from the 35-Year Corporate Development of Haier

Abstract

Organizations in the current highly volatile, uncertain, complex and ambiguous era (VUCA, Bennett & Lemoine, 2014) face multiple paradoxes (Smith & Lewis, 2011). How to clearly identify and effectively manage these paradoxes is a challenge for leaders. This study identified three types of paradoxes (root, driving, and derived) and their corresponding paradoxical leader behaviors (explained below) based on data collected from multiple sources from the Haier Group, the largest global household appliance manufacturer, over its 35 years development. The three types of paradoxes evolve over time and systematically promote organizational development. We also discovered paradoxical leader behaviors can be both constructive and reconstructive. Based on one leader's response and changes in the tension intensity (from weak to polarizing), we divided paradoxical leader behaviors into four categories: constructive and polarizing, constructive and weakening, reconstructive and polarizing, reconstructive and weakening. Paradoxical leader behaviors are contradictory but situational, which can help leaders effectively respond to paradoxes. Based on our findings, we generate propositions for future empirical studies.