Factors affecting perceptions of leadership effectiveness in an international organization: a study of middle managers in a Finnish MNC.

Abstract

This thesis analyses the impact of culture, personality, and behavior on judgments made about leader effectiveness in a multicultural work environment. Based on five competitive models derived from leader trait theory, implicit leadership, cross cultural, and authentic leadership theories, different sets of predictions were developed. These hypotheses were tested in a quantitatively based field study involving 442 questionnaire responses from corporate employees. The results of the questionnaire survey indicated that, firstly, the possession of multicultural leader personality traits, secondly, the demonstration of culturally endorsed positive behaviors, and, thirdly, behavioral congruence with collective cultural values all predict others? positive ratings of multicultural leader effectiveness (MLE) as measured in leader/other dyads. For the leader trait literature further empirical evidence is presented for the salience of traits in a multicultural setting. Bridging the cross-cultural and leadership literature this thesis presents empirical confirmation of a new theoretical framework for understanding the effect of leaders? authenticity with their collective cultural values, on ratings of MLE. Furthermore, empirical support was found for the existence of universally endorsed leader behaviors that engender positive ratings of MLE. This thesis also included the development of an instrument to measure MLE. For practitioners empirical evidence of the influence of culture and personality on judgments of leader effectiveness provides insights into the selection and development of managers for international positions.