Global Leadership And Organizational Behavior Effectiveness Research Articles

Meta-analysis of association between Just-in-Time system and firm performance: moderating effects of National Culture differences

PurposeThe effectiveness of the Just-in-Time (JIT) production system in non-Japanese contexts is a topic of diverse findings. This study conducts a meta-analysis of empirical research on JIT and its relationship with performance, focusing on studies published since 1995. Additionally, it examines the moderating influence of National Culture (NC) values on JIT outcomes.Design/methodology/approachA total of 59 empirical studies with 211 effects and 17,008 observations from 18 countries are meta-analyzed. A meta-regression using hierarchical linear modeling (HLM) is performed to explore how four dimensions of National Culture (NC) moderate the impact. (viz. institutional collectivism, uncertainty avoidance future orientation, and power distance,) based on the Global Leadership and Organizational Behavior Effectiveness (GLOBE) culture model.FindingsThe meta-analysis results show that improved production efficiency, product quality and reduced wastes achieved through JIT deployments translate into the overall performance of organizations. The meta-regression results shed light on how local cultures influence the effectiveness of JIT across different countries.Originality/valueThe findings of meta-analysis have implications for multinational manufacturers in realizing efficacy of JIT. The research adds to the international operations management literature by examining how NC values influence strategies and decisions in operations management.

Re-examining the quality management and firm performance relationships: meta-analytical investigation on moderating effects of national culture differences

PurposeIn the last 3 decades, organization-wide programs and practices based on the Total Quality Management (TQM) philosophy have become central to continuous improvement (CI) strategy in both public and private enterprises. However, there is paradoxical evidence of TQM-firm performance linkage in non-Japanese contexts. This study presents a meta-analysis of empirical research on TQM-firm performance linkage and investigates the moderating influence of national cultural (NC) values on this relationship.Design/methodology/approachMeta-analytical procedures are adopted to analyse 364 effects accumulated from 135 independent samples across 31 nations, for 30,015 firm observations. Additionally, weighted least square (WLS) meta-regression is used to test the moderation effects of four NC dimensions based on the Global Leadership and Organizational Behavior Effectiveness (GLOBE) model.FindingsThe meta-analysis results reveal that the strengths of the association varied across five soft and hard TQM dimensions and three firm performance dimensions Meta-regression indicate that the effectiveness of the TQM program is high in cultures which reward collectivist behaviours, equity of power distribution and avoidance of ambiguity in rules/structures.Originality/valueThe study contributes to international operational management theory on cultural influences on the effectiveness of operations strategies and decisions.

Relationships between lean bundles and firm performance: a meta-analysis on the moderating role of national culture differences

PurposeEvolved from Toyota’s shop floor in Japan, lean bundles are universally accepted for boosting manufacturing performance. However, extant literature shows mixed findings on the effectiveness of lean bundles in non-Japanese settings. This meta-analysis is aimed at understanding the influence of national culture (NC) differences on the lean bundles-performance relationships.Design/methodology/approachA total of 224 effects from 12,569 observations across 48 empirical studies from 14 countries are meta-analyzed. Also, weighted least squares (WLS) meta-regression using NC scores from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study are conducted to test the moderating effect of NC dimensions.FindingsThe meta-analysis reveals a positive association between the lean bundles and firm performance; though, the strength of the association varies across the individual lean bundles. The meta-regression results show that lean practices are more effective in countries that value high future orientation, high collectivism, low-performance orientation and high assertiveness.Originality/valueThe results contribute to the literature on the role of local cultural influence on strategies and decisions related to the implementation of continuous improvement (CI) programs in cross-cultural settings.

Cultural Values as Moderators of the Relationship between Destructive Leadership and Followers’ Job Satisfaction

Prior organizational research has shown that destructive leadership adversely affects followers’ job satisfaction. However, we still have an incomplete understanding of why the strength of this relationship varies across contexts. In this study, we leverage implicit leadership theory to explain why cross-national differences in cultural values moderate this relationship. First, drawing on implicit leadership theory, we develop theory-based predictions about why the cultural value dimensions from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study explain differences in the strength of this relationship across countries. Then, we aggregate findings from 51 primary studies ( k = 51, N = 16,870) conducted across 12 countries to test our hypotheses. Our results indicate that the negative relationship between destructive leadership and job satisfaction weakens in magnitude as uncertainty avoidance, future orientation, power distance, and assertiveness values increase. Conversely, the negative relationship between destructive leadership and job satisfaction strengthens in magnitude as institutional collectivism, in-group collectivism, humane orientation, performance orientation, and gender egalitarianism values increase. We also demonstrate the independent, relative, and collective predictive validity of GLOBE’s cultural values as moderators of the relationship between destructive leadership and followers’ job satisfaction. Collectively, our findings (1) indicate that cross-national differences exist in the relationship between destructive leadership and followers’ job satisfaction and (2) highlight the need to consider destructive leadership in light of the broader cultural context in which it is being examined.

An implicit leadership theory examination of cultural values as moderators of the relationship between destructive leadership and followers’ task performance

Destructive leadership and its effects on followers all over the world have been emphasized in cross-cultural research in recent years. Despite continued scholarly and practitioner interest in both destructive leadership and job performance due to its implications for cross-cultural research, we have an incomplete understanding of the impact of cultural context on the relationship between destructive leadership and followers’ task performance. We advance international business research by building and testing implicit leadership theory predictions about the impact of country-level cultural values as moderators of the relationship between destructive leadership and followers’ task performance. We test our hypotheses and research question with a meta-analytic dataset that includes respondents from 12 countries (k = 72, N = 20,878). Our results demonstrate that several of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) framework’s cultural value dimensions moderate the relationship between destructive leadership and followers’ task performance across countries. The findings are driven by the strong predictive validity of the performance orientation, in-group collectivism, gender egalitarianism, and humane orientation cultural value dimensions. Our contributions are important because we generate nuanced knowledge about the independent, relative, and collective predictive validity of cultural values in explaining the strength of the relationship between destructive leadership and followers’ task performance across countries.

How does culture influence a Country's travel and tourism competitiveness? A longitudinal frontier study on 39 countries

The greater competitiveness of a firm improves the chances of its success. Likewise, countries are constantly attempting to improve their travel and tourism competitiveness to attract global tourists. In this study, we present a theoretical framework linking the culture of a country and its travel and tourism competitiveness. We adopted the theoretical foundation of global leadership and organizational behavior effectiveness (GLOBE) cultural values and practices to examine the panel effects of culture on competitiveness. We conducted a longitudinal study by using secondary data of 39 countries from 2011 to 2021. Results show that the culture of a country influence its travel and tourism competitiveness. Furthermore, we provide empirical evidence by performing longitudinal frontier analysis to determine which GLOBE model, that is, cultural practices or cultural values, is appropriate for future studies. Findings of this longitudinal study contribute to the novel understanding of competitiveness and culture.

Culture and Corporate Decarbonization Efforts: A Time-Varying Analysis and Topology Approach

This study examines the influence of culture on corporate responses to climate change. Given the inherent uncertainty associated with climate change, cultural values, as a non-market force, are expected to impact corporate’s decision making regarding decarbonization.To investigate this, a sample of large firms from 23 societies participating in the Carbon Disclosure Project (CDP) survey was analyzed, along with cultural measures assessed by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study. The findings of this study reveal that cultural values have diverse effects on corporate decarbonization efforts. Specifically, a preference for avoiding uncertainty and a future-oriented perspective tend to foster decarbonization, while a strong focus on performance appears to hinder such efforts. Additionally, the relationship between culture and decarbonization demonstrates a time-varying characteristic, indicating the influence of culture on carbon performance is contingent upon the evolution of carbon-related institutions over the study period.

NATIONAL CULTURE AND GENDER GAPS IN ENTREPRENEURIAL ENTRY IN DEVELOPING COUNTRIES

This study analyzes the effects of national cultural practices on gender gaps in entrepreneurial entry in developing countries. We conducted a multilevel analysis based on Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effectiveness (GLOBE) data from 22 countries for 2013–2017. Our findings suggest that while women are less likely than men to create a new business, they are much less likely to enter opportunity-based entrepreneurship. Moreover, we find that cultural practices of gender egalitarianism have a positive moderating effect on gender gaps when it comes to entry into both total and opportunity-based entrepreneurship. By contrast, our results show that cultural practices of assertiveness and power distance increase gender gaps in entry into both total and opportunity-based entrepreneurship. Policy makers should implement policies that promote women’s access to the necessary resources and improve the visibility of successful female entrepreneurs to change the perception of entrepreneurship as a masculine activity.

The influence of institutional and in-group collectivism practices on next-generation engagement in the family business

PurposeThis research aims to investigate the influence of country culture on the next generation's intention to become managerial leaders of the family business, focussing on institutional and in-group collectivism practices. The authors investigate not only the direct effect of these collectivism practices on next-generation engagement, but also the extent to which institutional and/or in-group collectivism moderate the relationship between parental support and next-generation engagement and the extent to which institutional and/or in-group collectivism moderate the relationship between self-efficacy and next-generation engagement.Design/methodology/approachUsing cross-national data from the Global University Entrepreneurial Spirit Students' Survey (GUESSS) and the Global Leadership and Organisational Behaviour Effectiveness (GLOBE), hierarchical linear modelling (HLM) is employed to test the hypotheses using a sample of 33,390 observations collected in 20 countries.FindingsThe main findings show that both institutional and in-group collectivism practices may increase next-generation engagement levels. Furthermore, these cultural practices can amplify the relationship between family business self-efficacy and next-generation engagement. However, institutional collectivism can slightly reduce the positive effect of parental support on family offspring's intention to become leaders of the family business. The results also reveal that parental support has a stronger direct effect on next-generation engagement than family business self-efficacy.Originality/valueThis study examines the influence of cultural practices on next-generation engagement, focussing on collectivism practices. The study distinguishes between institutional collectivism and in-group collectivism. Unlike past research, a direct effect of parental support on next-generation engagement is considered. The study also uses a particular type of self-efficacy: family business self-efficacy. In addition, a multi-level method is employed, which is rarely used in this context.

Organizational Leadership and Culture in Bulgaria

The analysis of the culture-leadership relationship is guided by two research tasks, first, testing the instrumentality of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) methodology in cross-cultural and leadership studies, and second, shedding light on the country that was not included in the original GLOBE research, namely Bulgaria, with its distinctive culture and perceived effective leadership. Based on the surveys of 253 managers, the authors create the profile of a societal culture and the profile of organizational leadership perceived as effective in Bulgaria and compare the empirically derived results with the theoretical predictors of effective leadership in this country. They partially confirmed the hypothesis that culture is predictive of effective organizational leadership and contributed to the empirical analysis of societal behaviors and values in Bulgaria.

Organizational Leadership and Culture in Bulgaria

The study of Bulgarian culture and organizational leadership was based on the application of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) research instruments. Based on two surveys of 226 managers we created the profile of societal culture and the profile of leadership perceived as effective in that culture. We then compared the empirically derived results with the theoretically generated leadership profile for Bulgaria and partially confirmed the hypothesis that culture is predictive of effective leadership. The paper contributes to the scholarly discussion about culture’s effects in leadership and to the analysis of managers’ behaviors in a country that has been on a periphery of cross-cultural studies.

Cultural perceptions of ethical leadership and its effect on intention to leave in the independent hotel industry

PurposeStudies have shown that due to the high direct and indirect costs of staff turnover, there is a need for managers to use approaches that engender a feeling that the organisation is fair to its employees and consequently reduce the intention to leave. However, to understand how to apply the research findings and theories from different parts of the world, we need to understand how employees’ perceptions of such factors as ethical leadership and organisational justice are affected by the national culture. Therefore, this study aims to compare the impact of ethical leadership on the intention to leave through justice, loyalty and satisfaction among employees of independent hotels from two Global Leadership and Organizational Behaviour Effectiveness (GLOBE) cultural clusters.Design/methodology/approachA total of 1,561 questionnaires were received from independent hotel employees, which were analysed using structural equation modelling. Data were collected in the USA, the UK, Italy and Spain whose national cultures fall into two different GLOBE regional clusters.FindingsThe results show similarities and differences between countries and within and between clusters. No relationship was found between procedural justice and intention to leave in any of the four countries. Ethical leadership had no significant impact on job satisfaction and organisational justice in the UK, which contrasts with results in the other three countries. The study findings also show that distributive justice has a significant relationship with the intention to leave in the USA and the UK (Anglo cluster), whereas no specific relationship was found between these two variables in Italy and Spain (Latin European cluster).Originality/valueThis study contributes to the literature of ethical leadership and its application to the hotel industry in two culturally different GLOBE clusters. This study shows how the relationships between organisational variables are affected by national culture and emphasises the importance for hotel managers of being aware of the specific characteristics of the culture of the country in which they are operating.

National culture and public-sector budgeting: the mediating role of country-level institutions using a structural equation modeling approach

PurposeDespite cultural dimensions being included in hundreds of business and management research studies, there have been relatively few studies in public-sector accounting that include the use of cultural dimensions. It is posited that national cultural variables impact the institutions, which, in turn, have an influence on public-sector budgeting. The study aims to contribute to the literature by examining these relations in 31 countries.Design/methodology/approachThese relationships are empirically evaluated by structural equation modeling using measures of national culture from Global Leadership and Organizational Behavior Effectiveness (GLOBE) study and Worldwide Governance Indicators (WGIs) measures named institutions from the World Bank. Furthermore, measures of public-sector budgeting are evaluated in which public-sector budgeting is classified according to the legislative power of the purse and budget transparency.FindingsGenerally, findings reveal that institutions mediate the relationship among national cultural variables and budgeting at the national level. By that means, budgeting in a given nation is linked to the nation's supporting institutions which, in turn, are influenced by the national culture of those who maintain them. Particularly, power distance and uncertainty avoidance impact budgeting through the full mediation of institutions.Research limitations/implicationsThe World Bank's database used for the institutions contained over 200 countries (Kaufmann et al., 2007); the GLOBE cultural database (House et al., 2004) contained data for 62 societies; the public-sector budgeting (Qi and Mensah, 2011) included power of the purse and budgeting transparency country scores for 49 countries and the datasets comprised 31 nations, mostly from Organisation for Economic Co-operation and Development (OECD) countries. While smaller than we would have preferred, the size is consistent with other international studies (for instance: Waldman et al., 2006; Kwok and Tadesse, 2006).Practical implicationsThe findings of the paper suggest that any plan to improve a nation's budgeting should consider the links between budgeting, supporting institutions and the culture of those that run them. The formal adoption of new methods and standards by supporting institutions may not be enough without accompanying efforts to transform national culture.Originality/valueThe theoretical contribution of the paper is discussed further in the paper.

Organizational justice in the hotel industry: revisiting GLOBE from a national culture perspective

PurposeDespite its significance, national culture is often underrepresented in the hospitality industry. Implementing tools such as the global leadership and organizational behaviour effectiveness (GLOBE), whilst valuable to a considerable extent, might induce false assumptions about the universality of managerial practices for hotels through purposefully ignoring the in-group variations within each cultural cluster. Because employees’ perceptions are deeply rooted in context-specific value systems, this study aims to challenge the tendency to adopt a globalized approach to leadership and management through investigating potential variations in employees’ perceptions in two countries in the south Asian cluster of the GLOBE.Design/methodology/approachData were collected by using hard-copy and online convenience-sampling techniques from a sample of hotel employees and managers in Iran (392) and India (421). Structural equation modelling using AMOS 22 was adopted to test the hypotheses.FindingsBoth similarities and differences were observed between the Iranian and Indian contexts. The similarities confirm that GLOBE is correct to place them in the same regional cluster but the differences which relate to perceptions of organizational justice are also revealing. Whilst procedural justice affects organizational factors that influence employee motivation with the Iranian sample, distributive justice has no effect, whereas with the Indian sample these results were the other way around.Practical implicationsFor scholars and practitioners, the authors show that organizational theories and concepts cannot necessarily be transferred from a Western context to other parts of the world without making adjustments for national culture and generalizations cannot even be made within regions of similar culture. For example, this study shows that in Iran organizational justice is perceived differently from how it is perceived in India.Originality/valueThis study extends the literature about the effect of national culture on the hotel employees’ cognitions and behaviours by shedding light on the divergence between countries within the same regional cluster in the GLOBE classification.

National culture and saving: How collectivism, uncertainty avoidance, and future orientation play roles

This research study seeks to understand the important contribution of culture to national saving rates. Specifically, we investigate the roles of three key dimensions of culture, namely collectivism, uncertainty avoidance, and future orientation. The data of 16 countries during the period of 2010–2018 employed herein show robustly and significantly positive impact of future orientation but negative impact of uncertainty avoidance on savings ratio. However, the results concerning how collectivism plays role are not robust. With the collectivism variable from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Survey, we document negative effect on savings ratio, which is contrast to the findings of positive effect when we employ alternative measures of collectivism from two other surveys.

Exploring culture and leadership after 23 years: A replication of GLOBE project in Turkey

Starting in 1995, the GLOBE (Global Leadership and Organizational Behavior Effectiveness) project conducted a comprehensive study of cultural values and leadership ideals in 62 countries. According to GLOBE, Turkey belongs to the Middle Eastern cluster. However, in the past 23 years, Turkey has undergone dramatic social, economic, and political changes that may have affected societal culture and leadership preferences. With the goal to explore the impact of these changes, this study surveys 237 Turkish managers. Results show that four cultural dimensions shifted down one level in their bands. Moreover, compared to 1995, participants indicate higher preference for autonomous and participative leadership.

Practice rather than preach: cultural practices and female social entrepreneurship

This paper draws on practice theory to argue that the practiced culture of a society and gender interact to create cultured capacities for social entrepreneurship among entrepreneurs. We combine data from the Global Entrepreneurship Monitor (GEM) with the Global Leadership and Organizational Behavior Effectiveness (GLOBE) and World Bank (WB) to identify what cultural practices are most relevant for female entrepreneurs’ practice of social entrepreneurship across 33 countries. Our findings suggest that female entrepreneurs are more likely to engage in social entrepreneurship when cultural practices of power distance, humane orientation, and in-group collectivism are low, and cultural practices of future orientation and uncertainty avoidance are high, when compared to male entrepreneurs.

Women entrepreneurs\u2019 progress in the venturing process: the impact of risk aversion and culture

We explore the gendered impact of risk aversion and country-level culture on nascent student entrepreneurs’ progress in the venturing process. Combining country-level cultural normative variables from the 2004 Global Leadership and Organizational Behavior Effectiveness (GLOBE) survey with data from the 2013/2014 Global University Entrepreneurial Student Spirit Study (GUESSS), our sample consists of 1552 nascent student entrepreneurs from 11 countries. We start with the assumption that perceptions of risk-taking behaviors are not gendered. We then split our sample, finding that, for women, perceptions of risk-taking behaviors are associated with less progress in the venturing process; however, starting a new venture in a socially supportive culture moderates that relationship. For men, neither risk-taking behavior nor country cultural variables are related to their progress in the venturing process. Our study highlights both the importance of country-level contextual variables in entrepreneurship and the need to employ a gendered perspective when studying nascent entrepreneurship.

Does national culture influence management's accounting behaviour and strategy? – an empirical analysis of European IFRS adopters

PurposeThis study examines, in a European context, whether a management-induced International Financial Reporting Standards (IFRS) accounting strategy is affected by national culture. It analyses the association between management's accounting strategy and Hofstede's cultural dimensions of individualism and uncertainty avoidance, as well as institutional and firm-specific factors.Design/methodology/approachUsing hand-collected accounting decisions from 301 annual reports of firms from 14 European countries in 2017, a model is developed to identify two ordinally scaled accounting strategy variables, each representing the aggregated effect of the decisions on earnings and equity ratio. Afterwards, the effect of the cultural dimensions on these accounting-strategy variables is analysed by an ordered logistic regression.FindingsThe results do not support an association between management's accounting strategy and national culture, complementing the previous critical literature on values-based theories of culture. However, there is evidence that national legal enforcement, disclosure requirements and firm size explain differences in management's accounting strategy across countries.Research limitations/implicationsUsing the cultural value dimensions of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project, the findings are robust and stable. However, the study is limited to a European data set and the sample year.Practical implicationsThis study contributes to the discussion on the transparency and comparability of IFRS accounting. The results imply that these issues are not affected by cultural differences but rather by differences in institutional and firm-specific factors. In order to bring about improvements, regulators should establish a uniform institutional setting, while the standard setter should reduce the number of implicit and explicit accounting choices embodied in the IFRS.Originality/valueThe paper advances the understanding of cultural influences on management's IFRS accounting behaviour by providing an alternative to the existing accruals approach.

ENTREPRENEURSHIP AND HAPPINESS: DOES NATIONAL CULTURE MATTER?

Considerable research has been conducted in the field of entrepreneurship. However, very few studies have explored the impact of entrepreneurship on the life satisfaction/happiness of individuals. Furthermore, they have yet to analyze the extent to which the impact of entrepreneurship is mediated by national cultures. The present study explores the effect of entrepreneurship on the life satisfaction/happiness of individuals and analyzes the extent to which such impact is mediated by ‘national cultures.’ Resorting to fixed effect panel data techniques, this study was conducted using the 2016 World Values Survey dataset, encompassing 90350 individuals from 60 countries over the 2010–2013 period, combined with information provided by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Framework on cultural measures. We found that being an entrepreneur increases the chances of happiness across the entire set of countries analyzed. Culture does matter in such relation as the impact of entrepreneurship on happiness varies across the sample, being positive for sub-Saharan Africa and Eastern Europe and negative for the Middle East culture cluster. Governments should implement active policies to foster the emergence of new businesses because new ventures enable countries not only to increase their output per capita, but also to achieve economic development by stimulating well-being and happiness. Nevertheless, this study highlights the danger of ‘blind’ recipes/formulas to promote entrepreneurship without considering the ‘entrepreneurship ecosystem’ and, at a more general level, the countries’ culture.