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Cross Cultural Management: AnInternational JournalVol. 16 No. 4, 2009

pp. 347-366# Emerald Group Publishing Limited

1352-7606DOI 10.1108/13527600911000339

Mapping and modeling thecapacities that underlie effective

cross-cultural leadershipAn interpretive study with practical outcomes

Ling Deng and Paul GibsonGraduate School of Business, RMIT University, Melbourne, Australia

Abstract

Purpose This paper aims to present an empirically informed model of the underlying factors thatenable effective cross-cultural leadership. It also outlines procedures for using the model to assistexpatriate managers to develop the capacities that underlie effective cross-cultural leadership. Themodel encompasses the complexity of cross-cultural leadership issues in China, the importance ofhaving some theoretical knowledge on the topic, and the need to be flexible and pragmatic inapplying this knowledge.Design/methodology/approach A conceptual framework of the factors that interact to produceeffective cross-cultural leadership was developed from the literature. Semi-structured in-depthinterviews were conducted with 32 Western expatriate managers and 19 local Chinese managersworking in Australian businesses operating in Shanghai and Beijing. Within each interview,respondents were asked what they believe are the keys to successful leadership in Australian-Chinesecross-cultural workplaces.Findings The interviews revealed a core series of cross-cultural leadership competencies that callupon all three of transformational leadership, emotional intelligence, and cultural intelligence.Practical implications The findings and perspectives presented here should assist organizationsin their selection and development of expatriate leaders. The paper argues that organizations shouldfocus less upon skills and more upon underlying attitudinal and cognitive enablers.Originality/value Whilst most cross-cultural leadership studies to date have focused onexamining and explaining cultural differences and their influence on leadership effectiveness, thispaper focuses on individual orientation and capacities.

Keywords Leadership, Culture, Modeling, Cross-cultural studies, Expatriates, China, Australia

Paper type Research paper

IntroductionThis paper has two purposes. The first purpose is to present and explain anempirically informed and illuminating model of the underlying factors that enableeffective cross-cultural leadership. The model is based upon findings from a seriesof qualitative interviews that were conducted in China by one of the authors duringher PhD research. The interviews identified and explored key behavioural,cognitive, and attitudinal factors that contribute to context-sensitive judgment andbehaviour, and thereby the leadership effectiveness of Australian expatriatebusiness managers working in China. The second purpose of the paper is to outlineprocedures that employ the heuristic value of the model to assist current and futureexpatriate managers to develop the personal and intrapersonal capacities thatunderlie effective cross-cultural leadership.

Data from our extensive qualitative interviews with expatriate practitionersrevealed a core series of cross-cultural leadership competencies that call upon all threeof transformational leadership (TL), emotional intelligence (EQ), and culturalintelligence (CQ). Those findings contribute to a deeper theoretical and practical

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understanding of effective expatriate leaders underlying EQ and CQ, as well as theirspecific TL style. We argue that the illuminative model developed from the findingsand presented in this paper can be used to guide cross-cultural leadership developmentprocesses. Thus, the findings and perspectives presented here not only enable newconceptualizations of cross-cultural leadership as a capacity but can also pragmaticallyassist organizations in their selection and development of expatriate leaders.

Cross-cultural management competencies have been discussed and explored bymany researchers. Pan and Zhang (2004), for instance, attempted to clarify Chinesecultural characteristics by applying Hofstedes (1980, 2001) cultural dimensions.Sergeant and Frenkel (1998) discussed the application of knowledge of culturaldifferences to expatriate management. Li and Kleiner (2001) suggested personnellocalization as a solution to cultural conflicts in achieving business success in China.

While these previous studies focused on cultural influences as a complicating factorin the effectiveness of foreign businesses in China, they gave less attention to expatriatemanagerial cognitive styles and attitudes relevant to leadership dynamics within thecontext of cultural differences. So whilst most cross-cultural leadership studies to datehave focused on examining and explaining cultural differences and their influence onleadership effectiveness, our research has focused on individual orientation andcapacities. In so doing, it has provided a different perspective on cross-culturalleadership and opened up new and important avenues for research in the cross-culturalleadership domain.

The article begins with a brief review of literature on cross-cultural leadership,followed by a description of the qualitative methodology employed in our study. Theempirical findings, the illuminative model, and its discussion are then presented. Thearticle concludes with recommendations aimed at assisting current and futureexpatriate managers to develop effective cross-cultural leadership, paying particularattention to the notion of practitioner-based theory building.

Literature reviewRather than surveying the current state of knowledge in the field through meresummary of an endless series of theories and studies (Yukl, 2002, p. xvii) onleadership, this review selectively analyses that part of the literature which is mostrelevant to the central research problem: leadership effectiveness in cross-culturalcontexts.

Over 350 definitions exist for the word leadership (Daft and Lane, 2005), but mostreflect the notion that leadership involves an interaction between the leader, thefollowers, and the situation (Hughes et al., 2002, p. 22). Some leadership behavioursthat appear effective within one situational context may be experienced as ineffectivein another (Avery, 2004) and these considerations alert us to the need to outline acomprehensive theoretical framework that captures the influence process within thesituational importance of culture (Yukl, 2002).

Because the core of leadership effectiveness lies in the influence process between theleader and the followers, the emotional aspect of human nature must be understood.Hughes et al. (2002) argue that leaders are more effective when they influence people atboth the emotional level and the rational level. Specifically, they propose thatleadership includes actions and influences based on reason and logic as well as thosebased on inspiration and passion (p. 8). Thus, unlike traditional leadership theories,which emphasize rational processes, the more recent theory of TL emphasizesemotions and values (Yukl, 2002).

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Since its initial conceptualization by Burns (1978), empirical study has shown TL in which leaders inspire followers to achieve shared objectives by transforming theirattitudes, beliefs, and values (Bass, 1985) to be an effective leadership style(Antonakis et al., 2003; Bass, 1985, 1999; Brown et al., 2006; Masi and Cooke, 2000;Rafferty and Griffin, 2004; Sashkin and Sashkin, 2003). Indeed, the core of one TLmodel for organizational leaders is that these leaders motivate followers to achieveperformance beyond expectations rather than simply gaining compliance (Bass, 1985;Yukl, 1998, 2002). Accordingly, TL is said to have four influence components,commonly referred to as the four Is:

(1) idealized influence;

(2) inspirational motivation;

(3) intellectual stimulation; and

(4) individualized consideration.

The first two components reflect the idea that the leader provides vision and a sense ofmission, energizes followers by presenting an optimistic future, and earns their trustand respect. In turn, followers idealize and emulate the behaviours of their trustedleader and are motivated by achievement of a common goal. The third component,intellectual stimulation, embodies the concept that the leader helps followers becomemore innovative and creative by encouraging them to break away from old ways ofthinking and question their values, beliefs, and expectations. Finally, the leader whobelieves in individualized consideration pays attention to the individual needs offollowers and thus allows them to develop and self-actualize. Hence, followers needsare addressed both individually and equitably.

Meanwhile, an increasing number of scholars (Goleman, 1995; Goleman et al., 2004;Macaleer and Shannon, 2002; Mayer and Salovey, 1990; Miller, 1999; Ryback, 1998; Wolffet al., 2002) have focused on the workings of emotion itself, since Mayer and Salovey(1990) initially identified the concept of EQ as peoples ability to deal with emotions.Accordingly, Salovey and colleagues later developed the definition of EQ in terms of thefollowing four cognitive components: the abilities to perceive emotions, to access andgenerate emotions so as to assist thought, to understand emotions and emotionalknowledge, and to reflectively regulate emotions so as to promote emotional andintellectual growth (Salovey and Sluyter, 1997, p. 5). In contrast, Bar-On (1997) definedEQ as an array of non-cognitive capabilities, competencies and skills that influence onesability to succeed in coping with environmental demands and pressures (p. 14). Finally,according to Goleman, EQ is the capacity for recognizing our own feeling and those ofothers, for motivating ourselves, and for managing emotions well in ourselves and inrelationship (Goleman, 1999, p. 317). Cherniss and Golemans (2001) competency-basedmodel of EQ focuses more on leadership effectiveness applications. When integrating theconcept of EQ and social intelligence, Goleman et al. (2002a, b) proposed that emotionallyintelligent leadership involves a set of EQ competencies within the four key domains ofself-awareness, self-management, social awareness, and relationshipmanagement.

Regardless of these differing conceptualizations of, and perspectives on, EQ, manystudies have confirmed the linkage between EQ and effective leadership (Boal, 2000;Day, 2000; George, 2000; Goleman et al., 2002a, b; Hooijberg et al., 1997; Kerr et al., 2006;Rosete and Ciarrochi, 2005; Wong and Law, 2002) and scholars agree that EQ is a corefactor affecting leader performance. Indeed, as regards the essential linkage betweenEQ and leadership, Wong and Law (2002) explained that:

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[. . .] leadership concerns the interaction of leaders with other individuals. Once socialinteractions are involved, emotional awareness and emotional regulation become importantfactors affecting the quality of the interactions (p. 244).

We note that numerous studies have provided support for the strong positiverelationship between the key components of TL and the core factors of EQ, includingself-awareness, social awareness, empathy, motivation, and communication (Barlinget al., 2000; Butler, 2005; Gardner and Stough, 2002; Leban and Zulauf, 2004; Mandelland Pherwani, 2003; Palmer et al., 2001; Sosik and Megerian, 1999).

Both TL and EQ emphasize the role of human emotions and values in leadershipeffectiveness, and both consider motivation an essential element. In addition, both TL, asan effective influence process between leader and followers, and EQ, as an effectiveleadership capacity, contribute significantly to leadership effectiveness. Nevertheless, theeffectiveness of these two theories in a cross-cultural context has yet to be determined.

In cross-cultural contexts, leaders must be able to understand how people fromdifferent cultures understand their own actions and how they interpret the actions ofthe leader (Yukl, 2002). Such understandings are not easily reached, let alone actedupon. Miroshnik (2002) pointed out that the first major contributor to problems andfailures of business abroad is differences of culture. Dickson et al. (2003) also explainthat different cultural environments require different managerial behaviours.

One well-known way to research the relationship between cultural differences andleadership is through the identification and measurement of cultural dimensions(Dickson et al., 2003) which have been developed and refined by many researchers(Hofstede, 1980, 2001; House et al., 2004; Trompenaars, 1993; Trompenaars andHampden-Turner, 1997). Both Hofstede (1980, 2001) and Trompenaars (1993),Trompenaars and Hampden-Turner (1997) attempted to clarify cultural differences atthe national level through the identification and measurement of cultural dimensions.The latest cross-cultural research endeavor has been the global leadership andorganizational behaviour effectiveness (GLOBE) project, a long-term, multiphase, andmultimethod research program consisting of 150 researchers who have been collectingdata from 18,000 middle managers in 62 countries ( Javidan and House, 2001).

Clearly, the study of cultural dimensions has been of value in relation to the projectof reaching a deeper understanding of the challenges that face leaders who areworking in cultures unfamiliar to them. However, merely understanding culturaldifferences is far from achieving leadership effectiveness in cross-cultural contexts.Hence, contemporary researchers (Earley and Ang, 2003; Peterson, 2004; Thomas andInkson, 2004) have begun to present a more intrapersonal perspective on the effectivemanagement of cross-cultural differences: the perspective of CQ.

CQ is a persons capability for successful adaptation to new cultural settings, that is,for unfamiliar settings attributable to cultural context (Earley and Ang, 2003, p. 9). Here,the emphasis is upon the leaders capacity to respond appropriately to a culture, ratherthan his or her knowledge of cultural dimensions and norms. According to Earley andAng, CQ requires three interactive fundamental components: cognitive, motivational, andbehavioural. The cognitive component refers to ones ability to perceive and understand anew culture based on various types of cultural cues. The motivational component refers toones self-motivation and commitment to adapt and adjust to a new cultural environment.The behavioural component refers to the capability of a person to generate the behaviours/actions needed to appropriately reflect cognition andmotivation.

Earley and Angs (2003) CQ model emphasizes the interactive linkage of the threecomponents. CQ requires one to perceive, understand, and act to adapt to a new cultural

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setting. A person with high CQ is capable of continuing to learn in a new culturalenvironment. He or she is interested in dealing with new cultures. CQ requires effectivebehavioural adjustment to a new culture, not just thoughts, intentions, or wishes (EarleyandAng, 2003, p. 11). Similarly, Thomas and Inkson (2004) demonstrated that CQ involves:

. knowledge: understanding the fundamentals of intercultural interaction;

. mindfulness: developing a mindful approach to intercultural interactions; and

. behavioural skills: building adaptive skills and a range of behaviours so that oneis effective in different intercultural situations.

Like culture itself, however, CQ is not innate. Rather, CQ is an ability constituted bycognitive, motivational, and behavioural components of effective interculturaladaptation which operate together, and which can be developed (Bailey, 2004). Peterson(2004) discussed CQ in terms of the abilities/skills of cultural adaptation. He defined CQas the ability to engage in a set of behaviours that uses skills (i.e. language andinterpersonal skills) and qualities (e.g. tolerance for ambiguity, flexibility) that aretuned appropriately to the culture-based values and attitudes of the people with whomone interacts (Peterson, 2004, p. 89).

A growing number of researchers (Bibikova and Kotelnikov, 2004; Earley and Ang,2003; Earley and Mosakowski, 2004; Janssens and Brett, 2006; Peterson, 2004; Thomasand Inkson, 2004; Triandis, 2006) have claimed that CQ can help leaders successfullydeal with different national, organizational, and professional cultures. Nonetheless, as arelatively new entrant in the field of leadership research, there is a clear need for morethorough empirical research based on the theory of CQ, given its increasingsignificance for cross-cultural leadership and the extent to which it remains unexploredterritory for business researchers.

Before we move to research methodology however, we want to consolidate theinsights gained from the literature by combining all the points just now discussed intoan integrative framework for interpreting cross-cultural leadership effectiveness. Ourreview of current theories of leadership effectiveness in relation to cross-culturalsituations drew particular attention to the significant role that all three of TL, EQ, andCQ play in cross-cultural leadership effectiveness, and the overlapping importance ofthose three roles can be represented in the conceptual framework shown in Figure 1.

Figure 1.Conceptual framework ofcross-cultural leadership

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Our framework shows that effectiveness occurs in the area of overlap amongst TL, EQ,and CQ. A great deal of research has already been conducted into TL and EQ, but toolittle is known about how individuals might be helped to develop their effectiveness ascross-cultural leaders, taking particular account of CQ and its interaction with EQ andTL. To address this concern, we need first to gain a deeper understanding of the factorsthat combine to enable effective cross-cultural leadership, and that understanding wasthe aim of our empirical research.

Our conceptual framework encompasses the key elements of cross-culturalleadership effectiveness: TL, EQ, and CQ. The central proposition of this conceptualframework is that each of these elements contributes significantly to leadershipeffectiveness in cross-cultural context, meaning that conversely, cross-culturalleadership effectiveness cannot be achieved if any one of these contributors is missing.

Nevertheless, although the framework has considerable initial value it fails toreveal enough about how such contribution occurs. For example, the model doesnot yet reveal whether TL or EQ should be seen as nesting within CQ in whichcase CQ should be conceptualized as broader in its consequences than EQ or TL nor does it capture the correlation between cultural dimensions and cross-culturalleadership effectiveness. In addition, the model currently provides no indication ofwhether each sub-component of these three components is equally significant incontributing to cross-cultural leadership effectiveness, nor does it prioritize the sub-components importance.

Most importantly, even though TL is an effective leadership style for improvinginteraction between leaders and followers, it is not yet known whether it is universallyeffective when expatriate leaders influence local followers. Therefore, as Yukl (1998)urged, more attention must be paid to identifying the facilitating and limitingconditions for TL. In other words, even though TL is undeniably relevant, situationsmay exist in which it is unimportant or even has negative consequences. Even thoughthe relative importance of different transformational behaviours depends on thesituation, Spreitzer, Perttula and Xin (2005) argued that TL may not be the best stylefor cross-cultural use. How then can CQ be incorporated into the interpersonalrecognitions, explanations, and actions of TL?

Not only will all these issues be explored as this paper proceeds, but the currentframework will be deepened and redesigned so that it can better reflect the specificinterplays between each of these three components that, when combined andintegrated, enable effective cross-cultural leadership.

MethodologyA conceptual framework of the factors that interact to produce effective cross-culturalleadership was developed from our analysis of the literature on leadership effectivenesswithin cross-cultural contexts. This framework highlighted TL, EQ, and CQ as primary,interconnected contributors to effective cross-cultural leadership.

An open-ended interview process then allowed us to explore our conceptualframework with expatriate leader-managers. Inductive qualitative methodology yieldsa broader, deeper understanding of cross-cultural leadership effectiveness incontemporary China than would be produced by traditional survey methods. As oneinterviewee pointed out, leadership is a lot about learning by doing. Consequently,participant viewpoints and perspectives derived from daily practice are unique,valuable, and hard to learn in other ways (Wilson and Dalton, 1998, p. 3).

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Given these considerations, one of the authors conducted a series of semi-structured in-depth interviews with 32 Western expatriate managers (including 26Australians, 2 Australian Hong Kong Chinese, 1 Irish, 1 English, 1 American, and 1New Zealander) and 19 local Chinese managers working in Australian businessesoperating in Shanghai and Beijing. Interviewees were selected and recruited fromAustCham (The Australian Chambers of Commerce in China) Directory of AustralianBusinesses in China (2004 Edition). Participants represent top- and middle-levelexecutives of Australian businesses operating in China in different industries such asminerals and energy, manufacturing, consulting, building and construction, banking,legal services, and education. The expatriate participants had been living andworking in China from two months to 16 years. On average, the participants were intheir 40s. Participation in this study was voluntary, and participants anonymity andconfidentiality were assured.

Interviews (individual and focus group) were conducted with 51 individualsrepresenting different management levels in 30 Australian organizations from listedcompanies to SMEs (small to medium enterprises) in all industry sectors in whichAustralian investment businesses in China are involved. The expatriate participantsworking experiences ranged from 2 months to 16 years, and they held positions asCEOs, general managers, presidents, managing directors, partners, directors, andoperations managers in professions that included business executive, lawyer,consultant, and educator. Their perspectives and viewpoints stemmed from their ownexperiences and observations, and the resultant interview data were supplemented byvaluable input from the focus group interviews with the Chinese local managers whowork closely with the expatriates. Combined, these interview datasets provided rich,thorough, and diverse information that represents a variety of different perspectivesand thus gives the research a high value in terms of interpretive validity. The modelthat we constructed from that data illuminates the ways in which underlyingbehavioural, cognitive, and attitudinal factors contribute to leadership effectiveness incross-cultural situations. As an illuminative model, its purpose is to aid understanding.Our model is not universal. We do not claim to have a sufficiently large sample fromwhich we can make universal generalizations a universal model will have to waitupon further empirical research.

Subject to the respondents consent, the interviews were digitally recorded and latertranscribed verbatim. Within each interview, respondents were asked what theybelieve are the keys to successful leadership in Australian-Chinese cross-culturalworkplaces. Furthermore, the individual interviews of expatriate managers gatheredinformation both about their successful experiences and their frustrations, whilst focusgroup interviews with Chinese local managers obtained employees perceptions on thesame issues.

FindingsIn response to questions about the keys to expatriate leadership effectiveness, and inparticular the importance of EQ, the interview findings indicate that in a cross-culturalenvironment, both TL and EQ contribute to effective leadership, although certaincomponents emerge as dominant. The findings also confirm an overlappingrelationship between TL and EQ and show that EQ ability contributes totransformational leader behaviour and subsequent performance.

Most particularly, the results point to the importance of the three specific TLcomponents:

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(1) idealized influence through role modeling;

(2) inspirational motivation through vision; and

(3) individualized consideration through mentoring and coaching.

Likewise, the findings suggest the vital importance to leadership effectiveness of theprimary EQ factors:

. self-awareness;

. self-management;

. empathy; and

. social intelligence.

At the same time, the findings emphasize that because effective leadership is aninfluence process focused on interactions between people, it requires respect and trust,as well as patience, openness, and flexibility.

In response to questions about which skills or experiences assist expatriate managersto adapt culturally and deal with cultural differences while working in China, thefindings indicate that an expatriate leaders CQ plays a significant role in enhancingcross-cultural leadership effectiveness. Specifically, the data analysis identified four keyCQ abilities that help expatriate leaders deal with cultural differences:

(1) cultural awareness;

(2) motivational cultural adaptation;

(3) adaptive behaviour; and

(4) effective cross-cultural communication.

In response to questions about management localization effectiveness and howexpatriate leaders can effectively contribute to management localization, the responsesshowed the need to:

. seek localization balance, a forward-looking personnel balance of expatriate andlocal management based on organizational needs and personnel skills (ratherthan cost) and application of the same performance evaluation criteria for bothlocal and expatriate managers;

. encourage local managers commitment to the company by hiring qualifiedChinese managers who bring honesty, willingness to learn, and communicationskills, thereby improving local managers loyalty, and by paying more attentionto the strategies of people management and career paths to avoid high turnovers;and

. create an open working environment by instigating an open door policy thatensures employees access and makes them feel comfortable enough to offer theiropinions.

Cross-cultural leadership: a comprehensive, heuristic model of cognitive and attitudinalenabling factorsOur empirical findings support the proposition derived from the literature review thatEQ, TL, and CQ all play significant and complementary roles in expatriate leadershipeffectiveness in cross-cultural workplaces (Figure 2). Therefore, the first value of thisholistic model lies in its illumination of the interactive and supportive relationship

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between EQ, TL, and CQ. The model also highlights the interrelationship between TLbehaviours and EQ competencies in cross-cultural leadership effectiveness. Put simply,expatriate leaders EQ competencies significantly enable TL behaviours. Thus, the threebehavioural components of cross-cultural TL reflect the leaders EQ and CQcompetencies. That is, idealized influence reflects self-management, while individualizedconsideration and inspirational motivation reflect relationshipmanagement.

Our model incorporates but necessarily goes beyond, standard representations ofEQ as a two-dimensional matrix whose central components are awareness andmanagement. It is now well established (Goleman et al., 2002a, b) that high leader EQpositively contributes to high leadership effectiveness in a familiar social situation (i.e.a familiar cultural setting in which the leader is competent). In a cross-culturalworkplace, however, expatriate leaders social awareness needs to focus more on thenature of the host culture and the difference between the host culture and their own.Thus, our model adds a third dimension to the EQ dimensions of awareness andmanagement that of cultural depth. Hence, in a cross-cultural setting, the leadersrelationship management skills must encompass the challenges of cultural adaptation.Specifically, expatriate leaders self-awareness in combination with cultural awarenessmust provide the ability to perceive host culture characteristics and culturaldifferences, while their self-management and relationship management skills musthelp them adapt to the new host cultural setting.

One means of researching leadership development, according to Bueno and Tubbs(2004), is to identify leadership competencies and capacities in terms of underlyingknowledge, skills, abilities, and behaviours. Once these underlying factors are identified,the leadership development process can focus more effectively on improving individualdeficiencies. Our model therefore categorizes knowledge, skills, abilities, and behavioursinto three sets of leadership competencies: personal (intrapersonal) competencies, social(interpersonal) competencies, and cross-cultural competencies. Because each

Figure 2.A comprehensive,

heuristic model of thecognitive and attitudinal

factors that enableeffective cross-cultural

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competency makes unique contribution to effectiveness but interacts to some extentwith the others, they are independent and interdependent. Thus, in contrast to the three-dimensional competencies distributed across the top plane of the model, the centralhorizontal plane emphasizes the interrelationship between these competencies on acognitive-attitudinal-behavioural continuum of expatriate leadership emotionalcompetencies. This continuum provides a foundation for categorizing and appraisingthe attributes of effective expatriate leadership and highlights the developmentalprocess underlying the emergence of effective expatriate leadership. Thus, leaderscognitive characteristics constitute the models starting point, while leaders attitudinalcharacteristics serve as mediating factors that produce the behavioural responsesthrough which expatriate leadership effectiveness is achieved.

We would now like to draw attention to three key features of our model.First, from the perspective of personal competencies, the effective leader begins with

self-awareness. For example, many experienced Australian expatriate respondentspointed to the importance of maintaining their own identities in order to be successful inChina. That is, a clear sense of self-identity enables leaders to understand their ownstrengths, limitations, and values and focus on self-learning and improvement. Self-awareness also provides an important foundation for the leadership qualities of both self-management and cultural awareness. In other words, an expatriate leader who presentshigh self-management can emotionally self-control in uncomfortable situations and tendsto lead by example with an honesty and integrity that Chinese followers respect andappreciate. The expatriate leaders idealized influence through role modeling also makesa basic but important contribution to effective leadership behaviour.

Second, from the perspective of social competencies, effective expatriate leadersarticulate and communicate their vision to the local followers in a convincing andinspiring fashion. Most particularly, they treat each follower individually and give thempersonal attention according to their needs and capabilities. As a result, their efforts to actas mentors and coaches effectively develop their Chinese followers potential. Expatriateleaders ability to empathize can also help them grasp Chinese followers perspectives andinteract accordingly, while their social intelligence enables them to gain their followersrespect and trust to build effective relationship management. Overall, because influenceleadership focuses on interactions with people, it requires respect, trust, and empathy,including demonstration of sensitivity and understanding, and the ability to listen well. Inthis way, expatriate leaders show their respect and appreciation of local followers.

Third, from the perspective of cross-cultural competencies, effective expatriateleaders begin with cultural awareness. That is, in a cross-cultural context, expatriateleaders self-awareness and self-management reflect their realization of the importance ofcultural adaptation. Hence, those expatriate leaders who are enthusiastic about workingand living in China are willing to learn about and enjoy the local culture. Above all, theykeep their minds open and accept cultural differences, are interested in improving theirunderstanding of local culture and are thus self-motivated to adapt to the culture withpatience and flexibility. Consequently, to effectively influence local followers, expatriateleaders must have a good understanding of local culture and see cultural differences asenjoyable challenges rather than as frustrations. For example, an expatriate leader whotakes the time to study Chinese history may have more idea of what makes China what itis today, why people behave in a certain way and what type of sociological backgroundpeople come from. Together with a deep interest in the culture, it is crucial that expatriateleaders adjust their behaviours and leadership styles to enhance their cultural adaptationand thus enable effective cross-cultural leadership.

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Most particularly, expatriate leaders must create an open organizationalenvironment that encourages Chinese followers to share information and expressopinions. That is, expatriate leaders should create an open-door policy that ensuresemployee access and makes employees comfortable enough to offer their opinions.More important, expatriate leaders should encourage local managers to likewise openthe door for their subordinates, thereby creating a natural willingness on the part of allChinese staff to share ideas or opinions with their managers in the organization. Thus,expatriate leaders should create diverse opportunities for receiving feedback; forexample, through different levels of communication sessions, team meetings, and one-on-one meetings. Expatriate leaders should also pay more attention to peoplemanagement and employee career paths so as to increase the local managers loyaltyand avoid high turnover. At the same time, expatriate leaders trust in local Chinesefollowers advances these employees commitment to the organization.

Finally, as Macaleer and Shannon (2002) pointed out, there is no fixed formula forgreat leadership; rather, there are many paths to excellence, and superb leaders maypossess very different personal styles. Realistically, then, the heuristic model isintended only as a framework, a device that reminds expatriate leaders of the keyfactors that enable but do not guarantee effective cross-cultural leadership.Accordingly, it is essential that organizations identify effective ways for expatriateleaders to understand and flexibly apply these key competencies in their practice. Themodel therefore extends the cognitive-attitudinal-behavioural expatriate leadershipcompetency development process associated with the EQ, CQ, and TL dimensions byadding in a situation-assumption-decisions/actions practitioner theory buildingprocess. We turn now to a discussion of that process.

Practical implications for leadership development programsThe ultimate objective of our research is practical. We seek to contribute topractitioners capacity to improve their leadership effectiveness by increasing their EQand CQ; and to develop practitioners tacit knowledge relevant to effective cross-cultural leadership, based upon their practical experiences; and to developpractitioners capacity to make sense of uncertainness, make the right judgment orselect appropriate actions in the context of a new culture. A theoretical summary ofresearch findings is not sufficient to achieve these ends; rather, practitioners must beprovided with practical methods for developing effective cross-cultural leadership.

As Alvesson (1996) argued, practitioners tend to view the abstractions of quantifiedmaterial and statistical correlations as remote from every day practice and therefore oflittle use. In contrast, the multiple participant perspectives collected in this currentstudy paint a rich, thorough, and diverse picture, because qualitative research enablesbroader, deeper descriptions, is sensitive to the ideas and meanings of the individualand increases the likelihood of developing empirically supported new ideas andtheories that hold particular relevance and interest for practitioners. Hence, thisqualitative analysis offers a lively portrayal of how the elements of cross-culturalleadership defined in the theoretical framework are enacted in real life.

Keedy (2005) has argued that the capacity to articulate, deepen, and improve upontacit knowledge can be developed through the work of practitioners recognizing andtesting their own theories of practice. Much earlier, Argyris and Schon (1974, p. 6) hadconceived of such practitioner-developed theories, which they explained as follows: Insituation S, if you want to achieve consequence C, under assumptions a1, a2, . . . ,ae, doaction A (see Figure 3).

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Keedy (2005) proposed two types of practitioner theory: predictive and hypothetical.In the former, the practitioner has encountered similar situations in the past in which, ifcertain underlying circumstances and assumptions hold constant, decision X achievedthe intended consequence. The practitioner thus becomes automated to the extent oftacitly making that decision without deliberating other possibilities. In contrast,hypothetical theory requires that new theory be built because the practitioner eitherhas never encountered a particular situation or has found that action X no longerachieves the intended consequence in that situation. Thus, the practitioner studies theessential circumstances and constructs competing hypotheses, each based onassumptions about different actions. If the consequence is unintended or undesirable,the practitioner eliminates the first hypothesis and tries alternatives until the desiredconsequence is achieved. Through such day-to-day practice and learning, practitionersimprove their knowledge and skills.

Kolbs (1984) experiential learning model (Figure 4) provides a remarkably similarrepresentation of learning from experience, one based on four progressive stages of thelearning process. First, concrete experience is followed by personal reflection on thatexperience, after which general rules describing the experience may be derived or knowntheories applied to it (abstract conceptualization). Subsequently, ways of modifying thenext occurrence of the experience are constructed (active experimentation) that lead inturn to concrete experience. Depending on the circumstances, this progression may

Figure 3.Practitioner-developedtheories of practice

Figure 4.Kolbs experientiallearning cycle

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happen in a flash or may be drawn out over days, weeks, or even months, inwhich case awheels withinwheels process may occur simultaneously.

This four-stage learning cycle allows the practitioner to conceptualize andultimately extrapolate ideas based on critical reflection on experiences throughfrequent re-evaluation of the learning. This learning and development process providespractitioners with a well-developed capacity to identify, structure, and retrieve theinformation needed to decide on the most appropriate leadership behaviour in aparticular situation. Thus, practitioners may map a clear, highly individualized pictureof the context in which they are operating and an understanding of the implications oftheir actions for influencing followers behaviour. Accordingly, practitioners broadrange of experiences can help them elicit mental images more quickly, while theirability to learn from experience assists them in the transition from less effective tomore effective leadership (Stevenson andWarn, 2001).

The strong convergence between the models of Argyris and Schon (1974) and Kolb(1984) suggests that those practitioners most suited to expatriate postings are thosewho are motivated to, and able to, build reflection, conceptualization, and theorybuilding into their cross-cultural leadership. That motivation and ability requiresinterest in new cultures and a willingness to adapt behaviours. Our research findingshighlight the need for cross-cultural managers to engage in culturally appropriate rolemodeling, individualized consideration of followers, and the creation of an openworking environment, but leaders can only achieve those outcomes by learning as theygo, paying attention to their own cognitive and attitudinal tendencies.

Selection of personnel destined for international assignments has traditionallyincorporated a hard element, such as technical or functional competencies andexperience (Selmer, 2001; Triandis, 2006; Wilson and Dalton, 1998). However,expatriate leaders soft competencies and the tactical knowledge derived from specificsocial skills may enhance their opportunities for success in the assignment (Caligiuri,2000). For instance, the findings reported here suggest that an assignees EQ mayprovide an initial indication of leadership potential, while CQ may determineassignment success. Consequently, during expatriate selection, organizations shouldtake both EQ and CQ into account, a consideration facilitated by the leadershipattributes and cross-cultural competencies listed in our model.

As most respondents recommended, assignees must be given pre-departure cross-cultural training conducted separately from the actual experience of the host culturereality (Selmer, 2002). Traditionally, the most common approach to cross-culturaltraining has been to teach country-specific knowledge and expose trainees to differentcultural values (Hofstede, 2001; Tompenaars and Hampden-Turner, 1997; Javidan andHouse, 2001). In general, cross-cultural training programs emphasize increasing anexpatriate managers cultural competence in dealing with others from local culturalbackgrounds by enhancing their cognitive awareness and knowledge of the new hostculture. However, such basic cognitive training neither encompasses the probablecomplexity and uncertainty faced by the trainee once in the new culture nor providesthe trainee with the meta-cognitive skills needed to learn in new situations and cultures(Earley and Peterson, 2004). Yet this meta-cognitive ability is fundamental and is onethat the organization should seek to develop. Indeed, Tung (1981) suggested thatpurely informational briefings on the host country are insufficient to increase anindividuals interpersonal and professional effectiveness overseas. Likewise, Brocker(2003) argued that focusing on cultural values presents an overly simplistic basis forunderstanding behaviour in another culture and/or country.

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Therefore, although knowledge-based cultural training has its value, pre-departurecross-cultural training should pay more attention to the trainees emotional adjustmentand cultural sensitivity, the behavioural flexibility needed to interact effectively withpeople from the local cultures and effective leadership styles. For instance, based onthis studys findings, pre-departure training for expatriates should include coachingand mentoring skills and, rather than simply giving the trainee a checklist or somefixed ideas about the host culture and its people, should emphasize the openness,motivation, flexibility, and patience needed for cultural awareness and culturaladaptation. That is, it is more important that assignees learn to integrate a wealth ofinformation, look for multiple cues and suspend judgment than that they memorize alist of fixed behaviours. Likewise, the findings on cross-cultural communication skillsindicate that even though some basic language training is essential, assignees withinsufficient opportunity to learn Chinese should learn to explain things in three or fourdifferent ways or to speak English slowly using simple vocabulary. To facilitate suchtraining, the model provides organizations with a list of competencies on whichexpatriate pre-departure cross-cultural training should focus.

As Selmer (2002) noted, cross-cultural training should be sequential, beginning witha pre-departure phase and continuing post-arrival. Given that learning on the jobprovides an invaluable opportunity, the model can serve as a reminder for expatriatemanagers leadership development while working in China. Thus, the main attributesillustrated in the model, including TL, EQ, and CQ, are viewed not as the product ofknowledge-oriented training in a classroom setting but as attributes developed on thejob (Earley and Ang, 2003; Goleman, 1995; Goleman et al., 2002a).

Executive coaching, whose primary purpose is to facilitate practitioners learning ofskills relevant to the cross-cultural leadership role, has become popular in recent yearsas an effective leadership developmental intervention for business organizations (Yukl,2006). Thus, whereas practitioners can learn and apply the model themselves, it alsoprovides a comprehensive and practical framework for one-on-one executive coachingthat may be provided either by a business management consultant or a successful,experienced former practitioner. For example, an executive coach might use the modelas a consultative framework within which to assist new international assignees orexpatriate managers to improve their cross-cultural leadership effectiveness. To do so,the coach might use the model to help new managers understand the EQ, CQ, and TLthat are key contributory factors to effective cross-cultural leadership, as well as how toapply the cross-cultural leadership competency development process (the cognitive-attitudinal-behavioural continuum) in their day-to-day operations. Once the newmanagers understanding of the key factors has been strengthened by a certain periodof practice (i.e. two months or six months, depending on the executive coachingschedule), the coach might assist managers to reflect on what they have learned orexperienced when applying the model and provide objective feedback and suggestionsto help them further build their own leadership theories in practice. Through suchcontinuous practice of and reflection on leadership learning and the developmentalprocess outlined by the model, new managers can learn how to use the model as aheuristic for developing their leadership effectiveness.

ConclusionOur approach to developing expatriate leadership effectiveness is comprehensive,pragmatic, and heuristic. It is comprehensive in that it successfully incorporates bothleadership and cross-cultural theories to produce a list of the key contributory factors

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in effective cross-cultural leadership while also identifying the cross-culturalleadership development process that underlies the emergence of these factors. Itachieves this latter by integrating into the heuristic model the processes of practitionertheory building and experiential learning. Thus, the model incorporates cognitive,attitudinal, and behavioural factors which underlie effective cross-cultural leadership,categorized into three sets of cross-cultural leadership competencies:

(1) personal (intrapersonal) competencies;

(2) social (interpersonal) competencies; and

(3) cross-cultural competencies.

The model is pragmatic and heuristic because for Western practitioners it conveys thecomplexity of cross-cultural leadership issues in China, the importance of having sometheoretical knowledge on the topic, and the need to be flexible in applying thisknowledge in leadership practice. Consequently, the model can inform expatriateleadership recruitment and training. We contend that the model provides acomprehensive framework for business consultants or executive coaches working withWestern organizations operating in China to develop competent global leaders.

LimitationsBeing a qualitative inquiry, our study is subject to a variety of limitations that canaffect the interpretation and generalization of the findings. The primary limitation is itssingle data collection method that derives data only from participant responses. Thereis a danger that the viewpoints or perceptions expressed may be misleadinglyidiosyncratic if the interviewees are not representative. Nevertheless, the one-on-oneinterviews and focus groups involved 51 individuals who represented different levels oforganizational management from 30 Australian organizations ranging from listedcompanies to SMEs and covering all the industries in which Australian businessinvests in China. Because participant input was based on extensive experience andobservation, the information collected from this group is rich, thorough, and diverse.

Another potential source of bias is that interview-based description of theleadership process may be skewed by selective memory for behaviour consistent withthe respondents stereotypes and implicit theories about effective leadership (Yukl,2002). Additionally, in qualitative research, the researchers interpretation of the datacan sometimes be narrowly subjective. For example, a researcher might selectivelyconcentrate on the transcripts of most interest based on his or her tacit and untestedknowledge or personal experiences. Nevertheless, the researchers contribution to theresearch setting can also be valuable and positive rather than detrimental (Locke et al.,2000). For this study, one of the researchers contributed her bi-cultural background andbi-lingual ability which increased our credibility, trustworthiness, and rapport withboth the expatriate leaders and the Chinese local managers.

Perhaps the best means of testing the heuristic value of our model would be throughaction research because leadership, as an applied science, must engage with action andsubsequent outcomes that emerge over time. In action research, the investigator, asactive consultant or executive coach, brings about an improvement in practice orproposes new solutions to practical problems while simultaneously creatingknowledge (Gummesson, 2000; Williamson, 2002). Thus, an action research strategywould be a particularly exciting method for improving the value of the model throughongoing application, evaluation, and development.

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It would also be worth addressing the same research questions using atriangulation data collection methodology that could reinforce the validity of thefindings presented here. Kupers and Weibler (2006) argue that the empirical use ofseveral combined and complementary methods employing triangulation andcomparison yields less limited perspectives and a more extensive and inclusive pictureof leadership issues. Finally, a similar research design might be applied to other non-Australian international organizations operating in China. A more diverse samplewould increase the validity of the cross-cultural leadership effectiveness model andimprove its potential for practical application in a wider field.

Over the years, there have been lots of people doing surveys, and I find what happens is thegood layer and the bad layer gets lumped together, and you end up with an average asopposed to actually a distillation which says this is good and knowledgeable and this is notvery good. Now everyones opinion has some validity.

The above comment from an interviewee with years of successful experience workingin China reflects the researchers own observations and motivations to make profoundsense of successful expatriate leadership in China by exploring the participantsdiverse experiences and perceptions. These experiences, transcribed in the expatriateleaders and Chinese followers own words, have been thoroughly reviewed, analysed,and interpreted to identify every aspect of the issues raised rather than to simplyquantify the viewpoints. Therefore, the findings presented here provide thepractitioner with rich information on expatriate leadership issues in todays China.Moreover, even though the scope of this research was limited to Australianorganizations, the issues raised are common to other international, and especiallyWestern, organizations operating in China. Most specially, because the resultsemphasize individual competencies, the research findings should prove useful for otherWestern expatriate leaders working in China.

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About the authorsLing Deng is an Adjunct Lecturer in the Graduate School of Business at RMIT University,Australia. Prior to the commencement of her PhD research project on cross-cultural leadership inearly 2004, Dr Deng was working in cultural-based and foreign-invested businesses in Beijing,China for 8 years. This accumulation of professional knowledge and academic learning hasmarkedly advanced and developed her expertise in cross-cultural management issues in China.Ling Deng is the corresponding author and can be contacted at: Ling.deng@rmit.edu.au

Paul Gibson PhD, MBus., DipEd, BA (Hons) is a Senior Lecturer in the Graduate School ofBusiness at RMIT University, Australia. He lectures in Hong Kong, Malaysia, and Singapore inaddition to his work in Melbourne. Dr Gibson is currently writing a book on executive coaching,giving particular emphasis to the importance of identity and imagination. His research journalpublications have focused on the question of how managers can develop leadership and practicalbusiness wisdom (phronesis).

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