EKONOMI OCH SAMHÄLLE Skrifter utgivna vid Svenska handelshögskolan Publications of the Swedish School of Economics and Business Administration Nr 115 ANNIKA VATANEN LEADER - FOLLOWER RELATIONS IN AN INTERCULTURAL CHINESE CONTEXT PERSONAL, INTERPERSONAL AND BEHAVIOURAL INFLUENCES AND IMPACT ON WORK CONTRIBUTION Helsingfors 2003 Leader - Follower Relations in an Intercultural Chinese Context: Personal, Interpersonal and Behavioural Influences and Impact on Work Contribution Key words: Leader-member exchange, Leader-follower relations, Organisational citizenship behaviour, Organisational behaviour, Intercultural interaction, Personality, Expatriation, China © Swedish School of Economics and Business Administration & Annika Vatanen Annika Vatanen Swedish School of Economics and Business Administration Department of Management and Organization P.O.Box 479 00101 Helsinki, Finland Distributor: Library Swedish School of Economics and Business Administration P.O.Box 479 00101 Helsinki, Finland Telephone: +358-9-431 33 376, +358-9-431 33 265 Fax: +358-9-431 33 425 E-mail: [email protected] http://www.hanken.fi/biblioteket/eng/page903.php ISBN 951-555-783-6 (printed) ISBN 951-555-784-4 (PDF) ISSN 0424-7256 Yliopistopaino, Helsingfors 2003 To my co-travellers ACKNOWLEDGEMENTS Although the Buddhist saying “Roads are made for travelling – not destinations” has guided my life in general, I do feel that the completion of this PhD thesis represents a turning point, albeit not a final destination, in my life. During this academic journey, I have swum through oceans of books, climbed hills of confusion, waded through swamps of data while occasionally reaching some peaks of enlightenment. From the outside, the quest for the PhD plateau may seem like a lonely mission. However, I have not travelled alone. I am grateful to a large number of people and institutions that have provided me with inspiration, guidance, and support throughout the research process. This input has not only been vital in an academic sense by enabling the completion of this thesis, but it has turned the conduct of research into a personally rewarding experience. I have learned a great deal, and have many fond memories of the inspiring people I have met and the exotic places I have seen. The person who sent me off on my scholarly trip and guided me until its completion is my supervisor, Professor Ingmar Björkman at the Swedish School of Economics and Business Administration in Helsinki. I appreciate his good supervisory skills, sharp mind and efficiency that has greatly facilitated the research process. My pre-examiners, Professor Ingemar Torbiörn, Stockholm University and Dr. Pawan Budhwar, Cardiff University also deserve my gratitude for their constructive comments that helped me improve my manuscript. I also want to express my gratitude to all the organisations that agreed to participate in the study. I am glad that I was able to personally visit all thirteen subsidiaries during my stay in Shanghai in July 2001. I was overwhelmed by the assistance and hospitality provided to me. This warm welcoming reinstated my confidence in the practical relevance of my study, and motivated me to continue working during a rather burdensome part of the voyage. I also highly appreciate the input of each individual who was willing to answer the 350 questions included in the questionnaires – I know it was a laborious task! The numerous researchers I refer to in this thesis have inspired me to conduct scientific research. Although some of this inspiration has been provided in text form via scientific articles, I have been fortunate enough to meet many scholars in person during conferences and my research visits to Hong Kong and Australia. I would especially like to mention Chun Hui and Professor Fanny Cheung at the Chinese University of Hong Kong, Professor John Brebner and Professor Laubie Li at Adelaide University, and Professor Kwok Leung at the City University of Hong Kong. These people have provided me with practical resources and valuable comments on my research during my research visits. Furthermore, the inputs of Shalom Schwartz, Michael Bond, Lilach Sagiv, Davis Thomas and other helpful people I have met at the International Association for Cross-Cultural Psychology (IACCP) conferences are highly appreciated. I have also received useful advice via email from prominent researchers such as Anne Tsui and Mary Uhl-Bien, who have been patient enough to answer my questions. My colleagues at my home base, the Department of Management and Organisation at the Swedish School of Economics and Business Administration also deserve many thanks. Patrick Furu, Wilhelm Barner-Rasmussen and Mats Ehrnrooth were of great assistance in introducing me to the wonders of data analysis using LISREL and SPSS. Li Li helped me with the Chinese questionnaires and Denise Salin has provided general support during our many lunchtime conversations. The editorial help provided by Barbara Cavonius from the library is also appreciated. I was privileged to receive financial assistance towards the conduct of this research, and wish to thank the following foundations: The Foundation for Economic Education (Liikesivistysrahasto), The Foundation of the Swedish School of Economics and Business Administration, The Foundation of Marcus Wallenberg, the Department of Management and Organisation at the Swedish School of Economics and Business Administration, The Foundation of Waldemar von Frenckell, The Foundation of Hans Bang, and The Foundation of Gesellius. The financing provided by these foundations has enabled full-time research as well as some necessary and motivating research visits and participation in conferences. I also wish to express my appreciation to the Foundation for Economic Education and The Academy of Finland for enabling a smooth transition into post-doctorate life and peace of mind during the final stages of the journey by sponsoring my current research visit in Hong Kong. The research path I have followed during the last years is merely a side stream of a larger river that has carried me forward in life. Life including research is impossible without love and support provided by family, friends, and partners. Dear Marita, Leo, Marina, Kari, Juha, Famu, Yvonne, Anna, Franciska, Satu, Milla, Masa, Brett, Eki and Pekka; thanks to you it has been easy for me to jump into the river of life: you have always supported me whenever I’ve been weary. I know that you will be there wherever I decide to travel in the future, just as I will be there for you. Hong Kong, September 2003 Annika Vatanen 1 TABLE OF CONTENTS 1 INTRODUCTION ....................................................................................................... 7 1.1 THEORETICAL AND EMPIRICAL CONCERNS ............................................................... 7 1.2 RESEARCH AIMS AND FOCUS .................................................................................. 11 1.3 RESEARCH APPROACH ........................................................................................... 14 1.3.1 Interpersonal or intercultural approach? ..................................................... 14 1.3.2 Derived or imposed etics? ............................................................................. 16 1.4 OUTLINE ................................................................................................................ 19 2 THEORETICAL STARTING POINT: THE LMX FRAMEWORK .................. 20 2.1 WHAT IS LEADER-MEMBER EXCHANGE QUALITY? ................................................. 20 2.1.1 Level of analysis ............................................................................................ 20 2.1.2 The multidimensionality and definition of LMX ............................................ 23 2.1.3 Leader and follower perspectives of LMX..................................................... 27 2.1.4 Conclusion: Working definition of LMX quality ........................................... 28 2.2 ANTECEDENTS AND OUTCOMES OF LMX............................................................... 30 2.2.1 Models of LMX development ......................................................................... 30 2.2.2 Antecedents of LMX....................................................................................... 31 2.2.3 Outcomes of LMX .......................................................................................... 37 2.3 THE INTERCULTURAL CHINESE CONTEXT AND THE LMX FRAMEWORK ................ 39 2.3.1 Cross-cultural differences ............................................................................. 40 2.3.2 Chinese cultural influences ........................................................................... 43 2.3.3 Acculturation ................................................................................................. 49 2.3.4 The applicability of the LMX framework in the intercultural Chinese context.............................................................................................. 51 2.4 SUMMARY: LEVEL OF ANALYSIS, LMX DEFINITION, AND INCLUDED VARIABLES . 53 3 PERSONAL, INTERPERSONAL AND BEHAVIOURAL ANTECEDENTS OF LMX ...................................................................................... 56 3.1 PERSONALITY AND LMX....................................................................................... 56 3.1.1 A Western model of personality: the five-factor model ................................. 57 3.1.2 Chinese perspectives on personality: the CPAI ............................................ 59 3.1.3 Linking specific personality traits to LMX .................................................... 62 3.2 VALUES AND LMX................................................................................................ 71 3.2.1 Schwartz value theory.................................................................................... 71 3.2.2 Individualism/collectivism ............................................................................. 72 3.2.3 The self-enhancement facet of individualism................................................. 74 3.3 CULTURAL KNOWLEDGE AND LMX ...................................................................... 76 3.3.1 Influence on cognitive structures and processing ......................................... 76 3.3.2 Influence on adaptive behaviour ................................................................... 78 3.3.3 Cultural knowledge and intercultural competence ....................................... 80 3.4 SIMILARITY AND LMX .......................................................................................... 82 3.4.1 Actual similarity ............................................................................................ 83 3.4.2 Perceived similarity....................................................................................... 86 3.5 INROLE PERFORMANCE AND LMX......................................................................... 88 3.6 INTERACTIONAL JUSTICE AND LMX ...................................................................... 89 2 3.7 CONTROL VARIABLES .............................................................................................91 3.8 SUMMARY: ANTECEDENTS OF LMX.......................................................................92 3.8.1 Follower LMX: hypotheses ............................................................................92 3.8.2 Leader LMX: hypotheses................................................................................94 3.8.3 Dyad-level hypothesis.....................................................................................96 4 LMX AND ORGANISATIONAL CITIZENSHIP BEHAVIOUR........................97 4.1 DEFINITION AND DIMENSIONS OF OCB...................................................................97 4.2 EXPLORING THE DIRECT RELATIONSHIP BETWEEN LMX AND OCB .....................102 4.3 LMX AND OCB: MEDIATORS AND CONTROL VARIABLES ....................................105 4.3.1 Organisational justice ..................................................................................106 4.3.2 Perceived organisational support ................................................................107 4.3.3 Organisation-based self-esteem ...................................................................107 4.3.4 Job satisfaction.............................................................................................108 4.3.5 Control variables..........................................................................................108 4.4 SUMMARY: OCB RELATED HYPOTHESES .............................................................111 5 METHOD..................................................................................................................113 5.1 SAMPLE AND PROCEDURE .....................................................................................113 5.1.1 Participating companies...............................................................................113 5.1.2 Questionnaire administration.......................................................................115 5.1.3 Respondents..................................................................................................117 5.2 MEASUREMENT ISSUES .........................................................................................120 5.2.1 Western or Chinese measures? ....................................................................120 5.2.2 Validity and reliability..................................................................................121 5.2.3 Cross-cultural equivalence and bias ............................................................126 5.2.4 Multidimensionality and perspective............................................................130 5.3 MEASURES AND THEIR VALIDATION .....................................................................133 5.3.1 LMX ..............................................................................................................134 5.3.2 OCB ..............................................................................................................141 5.3.3 Inrole performance.......................................................................................146 5.3.4 Justice...........................................................................................................148 5.3.5 Perceived similarity......................................................................................150 5.3.6 Perceived organisational support ................................................................154 5.3.7 Organisation-based self-esteem ...................................................................155 5.3.8 Job satisfaction.............................................................................................156 5.3.9 Personality....................................................................................................156 5.3.10 Values .........................................................................................................159 5.3.11 Cultural knowledge ....................................................................................160 5.3.12 Actual similarity .........................................................................................160 5.3.13 Control variables........................................................................................161 5.4 ANALYTIC PROCEDURES .......................................................................................162 5.4.1 Comparing groups........................................................................................162 5.4.2 Detecting relationships between variables...................................................163 6 RESULTS..................................................................................................................166 6.1 DESCRIPTIVES ......................................................................................................166 6.1.1 Central and significant correlations ............................................................166 6.1.2 Differences in mean scores...........................................................................167 3 6.2 DIFFERENCES IN LMX QUALITY .......................................................................... 170 6.3 ANTECEDENTS OF FOLLOWER LMX .................................................................... 173 6.3.1 Intercultural dyads ...................................................................................... 174 6.3.2 Intracultural Chinese dyads ........................................................................ 184 6.3.3 Comparison of intercultural and intracultural dyads ................................. 194 6.4 ANTECEDENTS OF LEADER LMX ......................................................................... 198 6.4.1 Intercultural dyads ...................................................................................... 198 6.4.2 Intracultural Chinese dyads ........................................................................ 208 6.4.3 Comparison of intercultural and intracultural dyads ................................. 217 6.5 OVERVIEW OF ANTECEDENTS OF LEADER AND FOLLOWER LMX IN INTERCULTURAL AND INTRACULTURAL CHINESE DYADS .................................... 221 6.6 LMX AND ORGANISATIONAL CITIZENSHIP BEHAVIOUR ....................................... 229 6.6.1 Intercultural dyads ...................................................................................... 230 6.6.2 Intracultural Chinese dyads ........................................................................ 234 6.6.3 Comparison of intercultural and intracultural dyads ................................. 237 7 CONCLUSIONS ...................................................................................................... 239 7.1 SUMMARY ........................................................................................................... 239 7.2 GENERAL CONCLUSIONS ...................................................................................... 242 7.3 IMPLICATIONS ...................................................................................................... 249 7.3.1 Theoretical implications .............................................................................. 249 7.3.2 Practical implications.................................................................................. 250 7.3.3 Limitations ................................................................................................... 252 7.3.4 Suggestions for further research ................................................................. 254 REFERENCES ........................................................................................................... 257 INDEX OF DEFINITIONS AND KEYWORDS ..................................................... 275 APPENDICES............................................................................................................. 277 APPENDIX 1: QUESTIONNAIRES ................................................................................. 277 a) Follower questionnaire .................................................................................... 277 b) Leader questionnaire........................................................................................ 294 APPENDIX 2: SPECIFICATION OF MEASUREMENT ISSUES ............................................ 312 a) CFA model fit indices ....................................................................................... 312 b) Reliability ......................................................................................................... 313 c) Measurement equivalence ................................................................................ 314 d) Item bias detection ........................................................................................... 317 APPENDIX 3: CORRELATION TABLES ......................................................................... 320 APPENDIX 4: DIFFERENCES IN INDIVIDUALISM AND COLLECTIVISM BETWEEN WESTERN AND CHINESE LEADERS ............................................................................. 332 APPENDIX 5: REGRESSION TABLES; ANTECEDENTS OF LMX ..................................... 334 a) Follower LMX in intercultural dyads............................................................... 334 b) Follower LMX in intracultural Chinese dyads ................................................ 343 c) Summary of results obtained for follower LMX ............................................... 350 d) Leader LMX in intercultural dyads.................................................................. 353 e) Leader LMX in intracultural Chinese dyads .................................................... 361 f) Summary of results obtained for leader LMX ................................................... 368 4 APPENDIX 6: REGRESSION TABLES: LMX AND OCB .................................................371 a) OCB in intercultural dyads ...............................................................................372 b) OCB in intracultural Chinese dyads .................................................................377 LIST OF TABLES Table 1: Demographic information on the Chinese followers ......................................117 Table 2: Demographic information on the leaders ........................................................118 Table 3: Results of follower LMX CFA .......................................................................135 Table 4: Results of Western leader LMX CFA .............................................................137 Table 5: Results of Chinese leader LMX CFA .............................................................139 Table 6: Results of leader LMX item-bias analysis ......................................................140 Table 7: Results of follower OCB CFA ........................................................................142 Table 8: Results of Western leader OCB CFA..............................................................143 Table 9: Results of Chinese leader OCB CFA ..............................................................145 Table 10: Results of follower inrole performance CFA................................................146 Table 11: Results of Western leader perceptions of follower performance CFA .........147 Table 12: Results of Chinese leader perceptions of follower performance CFA..........147 Table 13: Results of follower organisational justice CFA ............................................149 Table 14: Results of follower interactional justice CFA ...............................................150 Table 15: Results of follower perceived similarity CFA ..............................................151 Table 16: Results of Western leader perceived similarity CFA ....................................152 Table 17: Results of Chinese leader perceived similarity CFA ....................................153 Table 18: Results of follower perceived organisational support CFA ..........................154 Table 19: Results of follower perceived organisation-based self-esteem CFA ............155 Table 20: Overview of results for leader and follower LMX........................................222 Table 21: Summary of factors that contribute to high-quality LMX ............................228 Table 22: Correlations between follower LMX and antecedents, intracultural ............320 Table 23: Correlations between follower LMX and antecedents, intercultural ............322 Table 24: Correlations between leader LMX and antecedents, intracultural ................324 Table 25: Correlations betwee leader LMX and antecedents, intercultural ..................326 Table 26: Correlations between OCB and antecedents, intracultural...........................328 Table 27: Correlations between OCB and antecedents, intercultural...........................330 Table 28: Results of regression analyses for follower LMX in intercultural dyads a ...336 Table 29: Results of regression analyses for follower affect in intercultural dyads a ...338 Table 30: Results of regression analyses for follower loyalty in intercultural dyads a .339 Table 31: Results of regression analyses for follower contribution in intercultural dyads a .....................................................................................340 Table 32: Results of regression analyses for follower professional respect in intercultural dyads .......................................................................................341 Table 33: Summary of results obtained for follower LMX in intercultural dyads.......342 Table 34: Results of regression analyses for follower LMX in Chinese dyads a ..........344 Table 35: Results of regression analyses for follower affect in Chinese dyads a ..........345 Table 36: Results of regression analyses for follower loyalty in Chinese dyads a ........346 Table 37: Results of regression analyses for follower contribution in Chinese dyads a ..........................................................................................................347 5 Table 38:Results of regression analyses for follower professional respect in Chinese dyads a ........................................................................................... 348 Table 39: Summary of results obtained for follower LMX and its dimensions in Chinese dyads ............................................................................................. 349 Table 40: Summary of results obtained for follower LMX.......................................... 351 Table 41: Results of regression analyses for leader LMX in intercultural dyads a ...... 354 Table 42: Results of regression analyses for leader affect in intercultural dyads a ...... 356 Table 43: Results of regression analyses for leader loyalty in intercultural dyads a.... 357 Table 44: Results of regression analyses for leader contribution in intercultural dyads a ......................................................................................................... 358 Table 45: Results of regression analyses for leader professional respect in intercultural dyads a..................................................................................... 359 Table 46: Summary of results obtained for Western leader LMX and dimensions ..... 360 Table 47: Results of regression analyses for leader LMX in Chinese dyads a ............ 362 Table 48: Results of regression analyses for leader affect in Chinese dyads a ............. 363 Table 49: Results of regression analyses for leader loyalty in Chinese dyads a ........... 364 Table 50: Results of regression analyses for leader contribution in Chinese dyads a ... 365 Table 51: Results of regression analyses for leader professional respect in Chinese dyads a ......................................................................................................... 366 Table 52: Summary of results obtained for Chinese leader LMX and dimensions...... 367 Table 53: Summary of results obtained for leader LMX.............................................. 369 Table 54: Results of regression analyses for relationship between overall LMX and OCB in intercultural dyads a ....................................................................... 373 Table 55: Results of regression analyses for relationship between LMX dimensions and OCB in intercultural dyads a ................................................................ 375 Table 56: Results of regression analyses for relationship between overall LMX and OCB in Chinese dyads a.............................................................................. 378 Table 57: Results of regression analyses for relationship between LMX dimensions and OCB in Chinese dyads a ....................................................................... 380 6 LIST OF FIGURES Figure 1: Overview of follower LMX hypotheses ..........................................................94 Figure 2: Overview of leader LMX hypotheses ..............................................................96 Figure 3: Overview of OCB-related hypotheses ...........................................................112 Figure 4: Follower personal characteristics and follower LMX, intercultural..............176 Figure 5: Leader personal characteristics and follower LMX, intercultural .................177 Figure 6: Interpersonal antecedents and follower LMX, intercultural ..........................179 Figure 7: The mediating effect of perceived similarity on follower LMX, intercultural .................................................................................................181 Figure 8: The mediating effect of interactional justice on follower LMX, intercultural .................................................................................................182 Figure 9: Follower personal characteristics and follower LMX, intracultural..............186 Figure 10: Leader personal characteristics and follower LMX, intracultural ...............187 Figure 11: Interpersonal antecedents and follower LMX, intracultural ........................189 Figure 12: The mediating effect of perceived similarity on follower LMX, intracultural .................................................................................................191 Figure 13: The mediating effect of interactional justice on follower LMX, intracultural .................................................................................................192 Figure 14: Follower personal characteristics and leader LMX, intercultural................200 Figure 15: Leader personal characteristics and leader LMX, intercultural ...................201 Figure 16: Interpersonal antecedents and leader LMX, intercultural............................204 Figure 17: The mediating effect of perceived similarity on leader LMX, intercultural .................................................................................................205 Figure 18: The mediating effect of follower inrole performance on leader LMX, intercultural .................................................................................................206 Figure 19: Follower personal characteristics and leader LMX, intracultural................210 Figure 20: Leader personal characteristics and leader LMX, intracultural ...................211 Figure 21: Interpersonal antecedents and leader LMX, intracultural............................213 Figure 22: The mediating effect of perceived similarity on leader LMX, intracultural .................................................................................................214 Figure 23: The mediating effect of follower inrole performance on leader LMX, intracultural .................................................................................................216 Figure 24: OCB-related results, intercultural dyads......................................................232 Figure 25: OCB-related results, intracultural Chinese dyads........................................236 7 1 INTRODUCTION An important factor in the leadership process is the relationship that a leader has with individual followers. Practice and previous research have shown that successful interaction between leaders and their followers are central to the overall functioning of a company (cf. Graen & Uhl-Bien, 1995). High-quality leader-follower relationships have been found to have a large impact on employee performance, organisational commitment, delegation, empowerment, and job satisfaction (for reviews see Gerstner & Day, 1997; Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997). One rationale for this study is that good leader-follower relationships are vital to ensure the effective functioning of any company. The increasingly multinational nature of modern business and the resulting multicultural and increasingly heterogeneous workforce imposes specific challenges on the development of high-quality work relationships (cf. Gilbert, Carr-Ruffino, Ivancevich & Lownes-Jackson, 2002). Additional demands are generated by the increased diversity between the interacting parties, including differences in demographic and cultural backgrounds, and differences in values, interpretations and behaviours. In addition to actual differences, perceived differences and stereotypifications could influence the quality of leader-follower relationships in the intercultural context. The large number of Western multinational companies that have started operations in China face these challenges. Misunderstandings and conflict are likely especially in the interactions between expatriate leaders and their local followers with different cultural and demographic backgrounds. 1.1 THEORETICAL AND EMPIRICAL CONCERNS Leader-member exchange theory (LMX; Graen, Novak, & Sommerkamp, 1982) provides the theoretical basis for examining leader-follower relations in this study. Leader-member exchange theory deals with the dyadic interactions between leaders and their followers and it has traditionally emphasised the differing relationships that supervisors develop with followers within a work unit. Leader-follower relationships range from those that are based strictly on employment contracts (i.e. low quality LMX) to those that are characterised by mutual loyalty, affect, contribution, and professional respect (i.e. high quality LMX) (Liden & Maslyn, 1998). Leader-member exchange can be seen as a developmental process in which the leader and member learn about each other over time (Bauer & Green, 1996). More specifically, each leader and member brings unique physical characteristics, attitudes, appearance, abilities, personality, experience, age, and background to the leader-member exchange relationship (Dienesch & Liden, 1986). Past research has examined leader and follower characteristics as antecedents to leader-member exchange quality as well as contextual factors such as work group composition, organisational politics and culture, and the number of followers supervised by leader (for reviews, see e.g. Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997). Regarding the outcomes of leader-member exchange, Graen & Uhl-Bien (1995) argue that leader-member exchange research has usually found that higher-quality leader-member 8 exchange relationships lead to positive outcomes for leaders, followers, and the organisation in general. Although the significance of both leader and follower characteristics as well as the interplay between characteristics (e.g. in the form of similarity between the interacting leader and follower) is stressed in conceptual discussions of leader-member exchange, in their review, Liden et al. (1997) found only one empirical study that examines leader characteristics as an antecedent of leader-member exchange quality and the focus still today is on follower characteristics. Regarding the studies of follower characteristics, most of these have investigated only very few characteristics. There hence seems to be a need for research that includes a large number of leader and follower characteristics in the same study in order to determine their relative importance and relation to each other. An important issue to consider in the examination of leader-follower relationships is the perspective from which the quality of the relationship is examined: the leader or the follower. The majority of the leader-member exchange studies to date have been concerned with leader-member exchange quality measured from a follower perspective and very few studies have assessed the exchange simultaneously from both leader and follower perspectives (Minsky, 2002). The studies that have investigated leader-member exchange from both perspectives have normally found a significant difference between leader and follower reports of the type of exchange relationship (Gerstner & Day, 1997). Further theoretical discussion and empirical examination of differences in leader and follower perceptions and conceptualisations of the quality of the leader-follower relationships is hence warranted. It has also been argued that different types of high quality relationships can exist. For instance, some people may value professional respect in a relationship whereas others value a dyadic partner they can regard as a friend (cf. Liden & Maslyn, 1998). This brings us to the debated question of the multidimensionality of leader-member exchange and the question of whether different dimensions have different antecedents and outcomes (as suggested e.g. by Liden & Maslyn, 1998; Maslyn & Uhl-Bien, 2001). It should be noted that leader-member exchange theory has mainly been applied in a Western (US) setting. A few exceptions are provided by Wakabayashi and Graen, who used the leader-member exchange framework in Japan (1984); Aryee, Tan and Budhwar (2002) and Bhal & Ansari (1996), who applied leader-member exchange theory in India; Hui, Law, and Chen (1999), who applied leader-member exchange theory in China; and Pelled and Xin (1997) who applied the theory in Mexico; and finally Pillai, Scandura and Williams (1999) who applied LMX theory in Australia, India, Colombia, Jordan and Saudi Arabia. This use of leader-member exchange theory in a non-Western setting provides some support for the assumption that leader-member exchange theory is useful for the study of Chinese leader-follower relations. However, the leadermember exchange framework has not been applied to an intercultural context. Using the leader-member exchange framework in a new context requires extensive validation analyses. Demonstration of the applicability of the leader-member exchange framework to an intercultural Chinese context and the examination of both Chinese and WesternChinese leader-follower relations would increase the external validity of the framework as well as enable its expansion. 9 However, theoretical knowledge of leader-follower relations provided by the leadermember exchange framework is not sufficient to thoroughly understand leader-follower relations in an intercultural Chinese setting including both Chinese and WesternChinese dyads. The intercultural Chinese context places additional demands on leaderfollower relationships and their examination. Past research and theorising pertaining to intercultural interaction, cross-cultural differences, Chinese social interaction, expatriation, and intercultural competence are examples of research areas of relevance to increase our understanding of these context-specific demands and influences. Still, these research areas are only of partial use for the study of the type of intercultural interaction we are dealing with in this study. We are dealing with prolonged intercultural interaction, i.e. individuals who interact with each other on a daily basis for several months or even years. The extensive research on intercultural communication and negotiation is more relevant for an examination of intercultural interaction with a shorter time-span. Cross-cultural psychology and comparative studies on organisational behaviour provide some useful and relevant insights on how individuals representing different cultures may differ from each other, but they do normally not deal with the actual interaction between cultures. The expatriation literature and especially the issue of intercultural competence are of relevance for understanding leader-follower relationships in an intercultural context. However, the expatriation literature has largely focused on the characteristics of the expatriate manager and those factors associated with him or her such as family, career path, and compensation, as well as the adjustment to the foreign assignment and the preparation and training for foreign assignments (Vance & Paderon, 1993). In these discussions, those being managed, the local employees have mostly been left out of the picture. This is surprising given that the local employee plays an equally important role in the cross-cultural interaction as the expatriate manager, and this interaction is likely to have great influence on the general success of the expatriate assignment. This is implicitly indicated in studies stressing the importance of expatriate relational skills (e.g. Tung, 1981) and interaction with host nationals (e.g. Black & Mendenhall, 1990). The point made here is that the success of the expatriate assignment, including the intercultural interactions it involves, is not only influenced by the characteristics of the expatriate and his or her ability to adjust to and understand cultural differences; the characteristics of the local employees and their cultural understanding has an impact as well (c.f. Vance & Paderon, 1993). In sum, there seems to be an empirical gap in leader-member exchange research that warrants an examination of an extensive set of leader and follower characteristics, measuring leader-member exchange from both a leader and follower perspective, and assessing the multidimensionality of leader-member exchange. This empirical gap is especially large with respect to leader-follower relations in a non-western setting. Regarding the intercultural aspect of the leader-follower relationship, there seems to be a theoretical gap as most of the theoretical frameworks designed for studying intercultural interaction are designed for interaction of a more short-term or one-sided nature. The “intercultural research gap” is of an empirical nature too, as intercultural dyads are less numerous and often more geographically dispersed than intracultural dyads and hence more difficult to access. The application of the leader-member exchange framework to an intercultural context using an extensive set of variables and 10 examining both Chinese and Western-Chinese leader-follower relationships is an attempt to fill these gaps. 11 1.2 RESEARCH AIMS AND FOCUS The general aim of the study is to increase our understanding of factors affecting leaderfollower relationships in an intercultural Chinese context and to increase our knowledge of the work-related implications of the quality of these relationships. Simultaneously, the aim is to fill the theoretical and empirical gaps mentioned in the previous section. An attempt is made to answer the following two research questions: 1. Which personal, interpersonal, and behavioural characteristics influence the quality of leader-follower relationships? 2. How is the quality of the leader-follower relationship related to the employees’ willingness to co-operate and contribute to their organisation? These questions are examined separately for leaders and for followers and will be explained further below. Regarding the first research question, a more specific sub-aim of this study is to examine the extent to which the quality of the leader-follower relationship is a result of relatively stable personal characteristics that affect our job attitudes and perceptions and that predispose us to approach interpersonal interaction in a specific way. In contrast, to which extent is the quality of the relationship related to the to the characteristics of the person we are interacting with and his or her behaviour? Additionally, which specific characteristics and behaviours are most important, and are the different dimensions of leader-member exchange affected by different factors? A further question is whether the ethnicity of the leader influences the quality of the leader-follower relationship above the other variables examined in the study. The models of leader-member exchange development suggest that the quality of the leader-follower relationship partly depends on the relatively stable characteristics of the interacting individuals that dispose them to approach interpersonal relationships in a certain way (Uhl-Bien, Graen & Scandura, 2000; Bauer & Green, 1996). Later in the leader-follower relationship, the exchange of resources, actual behaviour (such as follower performance and leader delegation), and testing of competence becomes more important (e.g. Dienesch & Liden, 1986; Bauer & Green, 1996). However, leadermember exchange relationships have been shown to develop very quickly and remain relatively stable over time (e.g. Liden et al., 1993). This indicates that initial impressions of the dyadic partner based on non-behavioural characteristics are likely to affect leader-member exchange quality at different stages of the relationship and that the study of such characteristics is relevant in well-established dyads as well. If the focus of the present study is judged by the number of variables included as antecedents of leadermember exchange, the focus is on personal and non-behavioural characteristics rather than on behavioural factors. Measures of personality, values, demographic characteristics and differences as well as cultural knowledge are included in the study. 12 However, central behavioural factors that have been linked to leader-member exchange will also be investigated. A difficulty with the examination of behaviour is that actual behaviour is relatively hard to measure. To measure behaviour, one often has to rely on the perceptions one of the interacting persons has of the behaviour of the other person. The leader’s perceptions of the follower’s performance and the follower’s perceptions of the fairness of the leader’s behaviour (i.e. interactional justice) are “behavioural” measures that will be included in the present study. A problem with these perceptual measures of behaviour is that if they are measured from the same source as leadermember exchange, they may reflect rating biases and have little to do with actual behaviour (cf. Duarte et al, 1994). Therefore, performance will be measured from both leader and follower perspectives. An additional problem with perceptual measures of behaviour is that they sometimes seem to have an almost tautological relationship with leader-member exchange: it is quite easy to understand that positive perceptions of an individuals behaviour will lead to positive perceptions of the quality of the relationship with that individual. These concerns also relate to the other perceptual measures in the study, namely perceived similarity. The focus on personal and rather stable and nonperceptual characteristics hence seems justifiable as it diminishes the focus on relatively tautological relationships between variables that could be influenced by rating bias. In other words, showing that positive perceptions lead to positive perceptions is arguably not as interesting as showing that dispositional personality traits or values influence our perceptions in a constant manner. Other antecedents of leader-member exchange quality as well as additional arguments for the choice of variables for the present study are presented in the following chapter dealing with the leader-member exchange framework and the antecedents and outcomes of LMX (see p. 30). Concerning the second research question, the linkage between leader-member exchange and organisational citizenship behaviour (OCB) will be in focus. It is theoretically and practically important to examine how the leader-follower relationship affects behaviours that are organisationally relevant. The term “organisational citizenship behaviour” was proposed by Bateman and Organ (1983) to “denote those organisationally beneficial behaviours and gestures that can neither be enforced on the basis of formal role obligations nor elicited by contractual guarantee of recompense” (Organ, 1990, p. 46). Organisational citizenship behaviours are considered as vital for productivity because organisations cannot anticipate through formally stated in-role job descriptions the entire array of follower behaviours needed for achieving goals (Deluga, 1998). Research conducted in an intracultural setting using a one-dimensional measure of leader-member exchange has established a relationship between leader-member exchange and organisational citizenship behaviour (Wayne, Shore & Liden, 1997; Settoon, Bennett & Liden, 1996). The aim of this study is not only to examine how overall leader-member exchange quality is related to organisational citizenship behaviour, but also to examine the effect of the different dimensions of leader-member exchange. A thorough and valid examination of the relationship between the different leader-member exchange dimensions and organisational citizenship behaviour requires an inclusion of a sufficient number of control variables and an analysis including mediating and moderating factors. The relationship between leader-member exchange and organisational citizenship behaviour will be examined by including other perceptual variables such as perceived organisational support, organisational justice and organisation-based self- 13 esteem. In addition, some relevant personal characteristics will be included in the analysis. The theoretical and empirical concerns pertaining to leader-member exchange research raised in the previous section are hence addressed in the present study by including a large number of leader and follower characteristics in the same study, by measuring leader-member exchange from both a leader and follower perspective and by assessing the multidimensionality of leader-member exchange. 14 1.3 RESEARCH APPROACH 1.3.1 Interpersonal or intercultural approach? Studying leader-follower relations in Western subsidiaries in China entails the examination of the interaction between individuals, some of whom represent different cultures. To which extent, then, is the current study an interpersonal study or an intercultural study? In order to facilitate this discussion, central culture-related concepts are presented below. Types of cultural studies. According to Hart (1998), cultural studies can be divided into three groups: 1) monocultural studies, 2) cross-cultural studies, and 3) intercultural studies. Monocultural or single culture studies are common in anthropology and sociology. Cross-cultural studies are studies that compare the characteristics of two or more cultures. Intercultural studies are studies that focus on the interaction two or more cultures and answer the main question of what happens when of two or more cultures interact (at the interpersonal level, group-level or international level). Monocultural and cross-cultural studies serve as necessary precursors to intercultural studies. In this study, the relationships between a leader and a follower representing the same culture will be referred to as intracultural, adopting the terminology used by Van de Vijver and Leung (1997). Hart (1998) categorises the field of intercultural relations as an interdiscipline. Littlejohn (1982, p. 246; as cited in Hart 1998) defined an interdiscipline as "a field of scholars who identify with various disciplines but share a common interest in a theme that crosses traditional boundaries". The fields of personality and cross-cultural psychology have in addition to the management field influenced the present study. Definition of culture. Earley’s (1997, p. 23) view and definition of culture as “the individual-level manifestations of shared meaning systems that are learned from other members of the society” is endorsed in the present study. This shared meaning system is manifested e.g. in the form of beliefs, norms and values (Sagiv & Schwartz, 2000). Central terms in this definition are ‘individual-level manifestations’ and ‘shared’. ‘Individual-level manifestations’ implies that cultural values that characterise a society can be inferred by aggregating the value priorities held by individuals (cf. Hofstede, 1984; Sagiv and Schwartz, 2000). ‘Shared’ implies that individual values become cultural values if they are shared by a group of people. Triandis (1996) argues that the view that culture consists of shared elements is what the majority of the definitions of culture have in common. Two remarks concerning the concept of culture are in place. The first remark pertains to the comparative nature of the concept of culture: it can only be accessed, analysed and described through comparison (e.g. Billings, 2002). As Boski (1993, as cited in Billings, 2002) points out, we become aware of our own culture only when we are in contact with the culture of others. Furthermore, when we describe another culture, we often describe it in comparison to our own culture. (Marco Polo: “every time I describe a city, I am 15 saying something about Venice”, as in cited Bond 2002). The second remark concerns the use of the word "culture". The word "culture" as used stretches from the diffuse and generalised values of a society to the narrower definitions of the activities of a small group. As Price-Williams (2002) suggests, when we use the term, maybe we are better off consistently delineating the term in terms of its appropriate and concrete synonym: for instance, a specific value or a specific custom or a specific way of looking at things. The present study will focus on specific values. Research approach of this study. The primary aim of this study is neither to generate knowledge about a specific “culture” nor to detect cultural differences between individuals representing different nationalities. In other words, this is not a crosscultural study but partly an intercultural study, with a strong interpersonal and individual focus. This argument will be discussed more in detail below. What also should be noted is that although the focus in the present study is on the individual and not cultural-level phenomena, it is recognised that an individual’s values and characteristics are partly affected by cultural influences and that various manifestations of culture are likely to influence they way people behave in organisations and that it should hence be considered. Values and other manifestations of culture (that previous research has investigated on a cross-cultural level) will in the present study be studied at an individual level without taking the existence of certain values in certain groups for granted. It is recognised that substantial differences exist between individual members of the same culture, and on the other hand, two persons from different cultures can share many similar characteristics (cf. Koivisto, 1998). The starting point for this study is hence that “culture” does not exist until its existence has been proven by showing that certain elements are shared by a group of people. The decision to focus on the individual level in the present study is related to the underlying thought that the Western-owned subsidiary is not optimal for making culture-level discoveries and cross-cultural comparisons of the Chinese and Western “cultures”. This is due to the fact that the individuals under examination in this study, both Western and Chinese, have typically worked with individuals and in countries with very different cultural backgrounds for extensive periods of time and have hence undergone various forms of acculturation. As a result of prolonged intercultural interaction and selection, the values and other cultural manifestations could start to converge. Furthermore, multinational companies may deliberately attempt to recruit individuals whose values and characteristics converge with those valued in the company. These could be related either to the home- or host-country environment. In this case we would be dealing with interpersonal interaction in an intracultural setting, where the new “culture” has been developed through intercultural interaction and selection. Furthermore, not all of the studied leader-follower relations involve expatriate leaders and local Chinese followers, but a significant part of the studied relations concern Chinese leaders and Chinese followers (who also are likely to have undergone various forms of acculturation). This further adds to the interpersonal and intracultural character of the present study while decreasing its intercultural character. The distinction between intercultural and interpersonal interaction can also be of a very subjective nature. The more subjective view of these interactions recognises the interacting parties’ perceptions of cross-cultural differences and stereotypifications. As 16 an example, one could classify an interaction as intercultural in case the interacting parties perceive great cultural differences and as interpersonal if the potential cultural differences are considered as only one of the many factors of the interpersonal dynamics. When two persons interact over a prolonged period of time, they get to know each other better and the interpersonal dynamics of a non-cultural origin are likely to become more important than initial perceptions of cultural differences (cf. Koivisto, 1998). In other words, the better the individuals know each other, the less they tend to regard each other as mere tokens of cultural backgrounds. As the interaction in the leader-follower dyad tends to be of a non-sporadic nature, one could hence presume that interpersonal factors are important. In sum, the focus in the present study is foremost on the interacting individuals and not on the “cultures” they represent. However, it is recognised that interpersonal dynamics are influenced by cultural influences. The interpersonal nature of the study is reflected by the fact that both the Chinese and intercultural Western-Chinese leader-follower relationships under examination are expected to be influenced by basically the same factors and lead to the same type of outcomes. This assumption is made despite of the fact that the literature review indicates that differences in e.g. values will be larger in intercultural dyads than in intracultural dyads. The effect of “cultural differences” on some factor is expected to be the same as the effect of most other differences between leader and follower. Phrasing it differently, different types of similarity are expected to be of importance in all types of dyads. Although the detection of group-level differences (i.e. cross-cultural differences) between the interacting individuals is of a certain interest, interesting is also to see the extent to which the intercultural nature of a relationship influences the leader-follower relationship in a way that cannot be explained in terms of increased differences in values and other manifestations of culture. It is possible that perceptions of cultural differences that are formed mainly based on expectations and stereotypifications are more important than actual differences in determining the quality of leader-follower relationships. 1.3.2 Derived or imposed etics? The emic-etic (Pike, 1967) distinction has become central in cultural and cross-cultural research (cf. Jahoda, 1995). In etic research strategies, behaviour is studied from a position outside the system and the approach typically involves the importation, testing and perhaps adaptation of existing models or constructs in new cultures to see if they work elsewhere. In contrast, emic approaches attempt to identify and elaborate indigenous constructs and aim at understanding behaviour from within the system. In emic approaches, the research criteria are relative to internal characteristics whereas in etic approaches, criteria are considered absolute or universal (Berry, 1969, as cited in Berry et al., 1992). Hofstede (1994, xii; as cited in Billings, 2002, p. 48) describes the emic-etic distinction in the following way: “An emic view is taken from within a culture, usually the author’s own. An etic point of view is a “view from the bridge”, comparing different cultures according to criteria supposed to apply to all of them”. In other words, the etic approach assumes the universal status of the underlying construct. What should be noted is that these approaches are not necessarily contradictory. 17 Hofstede (1994, xii; as cited in Billings, 2002, p. 49) also points to the complimentary nature of the two approaches: “The emic and etic points of view are almost by definition complementary. The ethnic psychologists that are developing within various non-western societies are necessary emic complements to the imposed Western emic of classical Western psychology. However, in order to learn from each other we also need an etic meeting ground and a terminology with which we can explore our common concerns and our difference”. Based on the discussion above, the approach adopted in the present study could mainly be described as etic, as the concepts and measures employed in the present study mainly have a Western origin, but they are applied in a (relatively) Chinese setting and tested on partly Chinese respondents. The danger of the etic approach is that it often carries with it different sources of cultural bias (Berry, 1997). If a construct is used in cultures where its status is uncertain the approach could be labelled imposed etics (Berry, 1969; as cited in Berry et al., 1992). The important question in the etic approach is thus whether it in fact taps culturegeneral or universal processes as hoped and becomes what Berry (1969) calls derived etics, or forces processes specific to one culture to other cultures, which is the case in imposed etics (Yang & Bond, 1990). The derived etic approach is closely linked to the universalist research orientation (Berry et al., 1992), where the underlying assumption is that basic psychological processes are likely to be the same everywhere but that their manifestations, including their development and deployment, are likely to be influenced by culture. A goal of the universalist approach is to identify and define universals, with the aid of which cross-cultural comparisons of how these universal processes are developed, displayed and deployed in different cultures can be made. A universal is defined by Berry et al. (1992, p. 260) in the following way: “a concept (or a relationship) is a universal when on theoretical grounds there is reason to accept it as invariant across all cultures, where there is empirical evidence to support this claim and when there is no empirical evidence to refute it”. Within the universalist approach it, however, is recognised that it is difficult to achieve context-free definitions of concepts but this is considered a goal. (Some researchers consider this quest for universals as relatively unrealistic [cf. Jahoda, 2002]). The starting point for universalist research may be some extant theory or test but their use is informed by local cultural knowledge and cross-cultural comparisons are hence made within caution. Berry (1969, 1989, as cited in Berry et al., 1992) suggests an iterative approach to separate the emic from the etic in search of a derived etic and truly universal constructs. Here the researcher will typically start with an imposed etic, but the methods and constructs will be modified to suit the new culture in an emic phase. The goal is to end up with a modified or derived etic in terms of which valid comparisons across the cultures concerned can be made. An extension of this research could lead to the accumulation of evidence that a certain phenomenon is universally present (Berry et al., 1992). A similar approach recommended by Triandis (e.g. 1978) is the “combined etic-emic” approach, where a construct with an allegedly universal or etic nature is measured in an emic or cultureappropriate way. 18 The underlying assumption in this study is that leader-follower relationships have some universal characteristics. For instance, the literature review suggests that managerial work and the leadership function includes similar elements across countries (cf. Suutari, 1996). For instance, decisions are made, work is organised, and goal-oriented interaction between leaders and followers is undertaken. Furthermore, it is assumed that individuals can to some extent be described using universally applicable descriptors (cf. e.g. Dorfman et al., 1997). This assumption is especially important when examining intercultural interactions that entail the comparison of the interacting parties representing different cultures. These assumptions are made while recognising the difficulties in achieving context-free definitions of concepts and related measures. What should be noted is that although leadership and leader-follower relations per se may be universal phenomena, it is not argued that conceptions and the styles and practices associated with them are universal (Westwood, 1997). Personal values, shaped by the wider culture in which the person is socialised affect leadership style by determining how a manager perceives and defines a situation, tackles problems and decisions, approaches interpersonal relations, interprets ethical behaviour, and responds to organisational pressures (England et al, 1974, as cited in Westwood, 1997). The same argument would logically hold for followers as well. Therefore, the intercultural Chinese context has to be considered so that context-specific factors related to the leader-follower relationship can be identified. It is hoped that the present study represents derived etics more than imposed etics. Due to own cultural biases, this is hard to judge but is hoped that the description of the research will enable the reader to make this judgement. 19 1.4 OUTLINE The thesis has seven chapters. After this introductory chapter, an overview of leadermember exchange theory (LMX), which provides the theoretical basis for the present study, is given (Chapter 2). The applicability of the LMX framework in the present intercultural Chinese context is also discussed. Then, hypotheses pertaining to personal, interpersonal and behavioural antecedents of LMX are developed (Chapter 3). Thereafter, hypotheses regarding the relationship between LMX and organisational citizenship behaviour are presented (Chapter 4). The subsequent chapter discusses the method of the present study (Chapter 5). Thereafter, the results are presented (Chapter 6). Finally, in the concluding chapter (Chapter 7) the thesis is summarised, general conclusions based on the major findings are drawn, and the implications of the present study are discussed (Chapter 7). 20 2 THEORETICAL STARTING POINT: THE LMX FRAMEWORK The aim of this chapter is to present the theoretical framework of the present study and to clarify some theoretical stances taken. This chapter has four main sections. The first section deals with the definition and conceptualisation of leader-member exchange quality (section 2.1). This is followed by a presentation of the research areas covered by previous leader-member exchange research (section 2.2). Thereafter, the intercultural Chinese context is discussed as well as the applicability of the LMX framework in this context (section 2.3). Finally, the chapter is summarised (section 2.4). 2.1 WHAT IS LEADER-MEMBER EXCHANGE QUALITY? Leader-member exchange (LMX) theory has evolved into a dyadic approach to understanding leader-follower relationships. Social exchange theory and role theory provide the dominant theoretical bases for leader-member exchange theory (Liden & Maslyn, 1998; Sparrowe & Liden, 1997). Despite the high level of scholarly interest in leader-member exchange theory, there is surprisingly little agreement on what leadermember exchange is or how it should best be measured (cf. Liden & Maslyn, 1998; Gerstner & Day, 1997, Schriesheim, Castro & Cogliser, 1999). The review article written by Schriesheim et al. (1999) demonstrates a lack of consistency concerning the basic definition and content of the leader-member exchange construct as well as its measurement, despite claims of an apparently robust phenomenon (cf. Graen & UhlBien, 1995). The aim of this section is to clarify how leader-member exchange is conceptualised and defined in the present study including the level of analysis, multidimensionality and measurement perspective. 2.1.1 Level of analysis Most leader-member exchange studies claim to operate at the “dyad-level”. Despite this claim, many researchers view the dyad level differently. In order to gain a deeper understanding of the level of analysis issue in leader-member exchange research and to clarify the level of analysis in the present study, an overview of the development of the dyadic approach to leadership including leader-member exchange theory is presented below. This presentation is mainly based on the overview provided by Dansereau (1995). Dansereau’s work in the 1970s induced the dyadic approach to leadership with the claim that a single leader can form different relationships with different individuals. This idea was in sharp contrast with the dominating individual difference approach that focused on the individual differences between leaders and asserted that leaders form the same relationships with everyone in the same work group. This traditional approach is sometimes referred to as the average leadership style approach (ALS). Here the focus was on the differences between superiors as persons. The level of analysis when it 21 comes to leaders was hence between person, and between groups concerning followers. (Dansereau, 1995). As a critique to this ALS approach, two different, but partially related, approaches evolved: the leader- member exchange approach (LMX) presented by Graen and Cashman (1975, as cited in Dansereau 1995) and the vertical dyad linkage approach (VDL) developed by Dansereau and colleagues in the 1980s (Dansereau, 1995). The assumption within the leader-member exchange approach was that different relationships must occur within workgroups and that the ALS approach hence was inapplicable. In contrast, the idea behind the VDL approach was that it could coexist with the traditional ALS approach. What the VDL and ALS have in common is that they both focus on groups. The basic idea of the VDL model is that leaders form ingroups and out-groups by differentiating among sets of followers, one relative to another. The level of analysis relating to the leader is hence within persons, not between persons as in the ALS approach. This VDL approach is not purely dyadic, as it requires first that a group may be assigned and then that superiors differentiate among group members. It is dyadic in the sense that there are differences within groups and these differences refer to differences among dyads in these groups. The level of analysis concerning followers is hence between persons within groups. This approach was the forerunner of Graen’s subsequent leader-member exchange approach. (Dansereau, 1995). However, Dansereau started doubting the need for leaders to have in-groups and outgroups within the group of followers who formally report to the same leader. Instead, within a particular formal work group, all, some, or none of the followers may link with a leader. As a result, Dansereau decided to move away from the within group level to pure dyads naming this approach the individualised leadership approach (IL). This approach still focuses on the relationship between leaders and followers, but independently of groups. In other words, both individuals involved in the dyad are considered distinct from their respective others. Thus, leaders view and treat one person independently of another person. It is also possible that an individual treats a whole group of people the same way or all differently; but it all depends upon how she or he view the other individuals. The level of analysis has so far been the person and on individual differences concerning followers. The level of analysis relating to leaders has been the other person or the situation (leader perceptions of the follower). This IL approach is not intended to serve as a replacement for the other views, but as an additional view. Within and between analysis (WABA, Dansereau et al., 1986) is recommended to identify the empirically purely dyadic case. (Dansereau, 1995) In the present study, it is expected that the hypothesised relationships between variables will occur mainly at the level of dyads independent of groups. The view of the dyad is hence identical to the one in Dansereau’s IL approach. This view is different from some of the leader-member exchange research, where it is asserted that because of time pressure, the leader develops a close and high-quality leader-member exchange relationship between only a few key followers (Graen, 1976, as cited in Dienesch and Liden, 1986) forming the so-called in-group whereas the others form the so called outgroup. The stance taken in the present study is that such a division in in- and out-groups must not necessarily occur, it all depends on the individuals forming the dyads. 22 However, the focus in the present study is slightly different from the one in Dansereau’s IL approach. In the IL approach, leader perceptions of the follower have been examined but not personal leader characteristics. In other words, the leader has not been examined as a person. Studying both the leader and the follower at the person (individual) level, entailing the examination of both leader and follower personal characteristics (and not just their perceptions of each other), is identical to the approach adopted by Klein and House (1995), where charisma is seen to reside within the relationship between leader and follower. In addition to focusing on the personal characteristics of the leaders and followers (i.e. examining the leaders and followers as persons), leader and follower perceptions of the other party will be examined. In other words, they will also be examined as what Dansereau would call situations. To clarify and summarise this discussion, the leader and follower are considered as persons if we are interested in their personal characteristics and as situations if we investigate how the leader and follower are perceived by the other party. The focus on leaders and followers, either as persons or situations, does not mean that external or environmental variables are considered of no importance in determining the quality of the leader-follower relationship, but it is hypothesised that the major external influences can be measured as individual perceptions. The organisations in which the dyads are active are likely to exert influence on the dyad in the form of various job attitudes (such as perceived organisation support, justice and organisation based self-esteem). These job attitudes are also examined in the present study, but these attitudes or perceptions are expected to vary between individuals within the organisation and are hence considered to be of an individual nature. In other words, each leader and follower is expected to have characteristics and perceptions that are individual and unrelated to other organisational members. It seems possible to examine leader-follower relations on a very personal (individual) and non-dyadic level if all we are interested in is examining the relationship between one of the dyadic parties as a person and the other as a situation (e.g. follower personality in relation to a follower’s perceptions of leader-member exchange quality, which does not entail gathering data from the leader). Turning leader-member exchange research into research at a dyadic level requires according to Keller and Dansereau (2001) that there is leader/follower agreement on leader-member exchange quality. More specifically, the authors assert that “If agreement is not present, superiors and subordinates are merely individual actors rather than interdependent.”(p. 140). I do not agree with this view. Even if the perception of leader-member exchange quality resides within the individual and is not similar to the dyadic partner, it has been formed as a result of dyadic interaction and the interplay between leader and follower characteristics. As the present study examines both leader and follower perceptions and characteristics and relates them to each other, I would claim that the dyad and the especially the individual within dyad is the appropriate term to use for the level of analysis in the present study. However, it is true that when the exchange relationship reaches a mature and balanced state, both interacting parties are likely to reach agreement in their assessment of the quality of the relationship. Furthermore, agreement on high leader-member exchange quality could be considered to be a sign of higher leader-member exchange quality than the case in which only one party reports high quality leader-member exchange. Agreement can hence in my opinion be seen as a 23 measure of intensity of interaction and even leader-member exchange quality, but lack of agreement does not reduce the dyadic nature of the leader-follower relationship. In sum, the present study deals with an individual’s perception of the quality of the leader-follower relationship that is the result of dyadic interaction. Furthermore, each leader and follower is expected to have characteristics and perceptions that are individual and relatively unrelated to other organisational members. However, while the focus in the present study is on individuals within dyads, it is recognised that leadership is a multiple-level phenomenon (cf. Yammarino, Dansereau, & Kennedy, 2001) and that the present study hence gives a partial view of the leader-follower relationship. 2.1.2 The multidimensionality and definition of LMX Schriesheim et al. (1999) trace the history of the leader-member exchange concept as an attempt to examine the adequacy of leader-member exchange theory. This discussion will be presented here to provide some background and justification for the conceptualisation of leader-member exchange chosen for the present study. This section draws heavily on the original article. Schriesheim et al. (1999) note that throughout the 1980’s, Graen et al. continued to define leader-member exchange as the quality of the exchange between leader and subordinate, while at the same time, in a total of 13 studies, describing varying subdimensions of the construct such as trust, competence, motivation, assistance and support, understanding, latitude, authority, information, influence in decision making, communications, confidence, consideration, talent, delegation, innovativeness, expertise, control of organisational resources, and mutual control. In 37 other LMX studies published or presented in the 1980s, 11 different definitions of leader-member exchange as well as 35 different sub-dimensions were used and, even more alarmingly, in many of these studies explicit construct definitions were not provided. In response to the general confusion in the field, several comprehensive reviews were undertaken in the 1980s and some authors brought attention to the lack of theoretical underpinnings. Finally, a detailed definition of leader-member exchange emerged (Scandura, Graen & Novak, 1986, p. 580): “Leader-member exchange is (a) system of components and their relationships (b) involving both members of a dyad (c) involving interdependent patterns of behaviour and (d) sharing mutual outcome instrumentalities and (e) producing conceptions of environments, cause maps and value”. This is the only leadermember exchange definition that I have found. What raises concern is whether this definition is reflected in the recommended LMX7 measure (measurement issues will be discussed later in this section). In the 1990s, the majority of the leader-member exchange studies showed consensus on the nature of the phenomenon as being the quality of the exchange relationship between leader and follower (Schriesheim et al., 1999). However, inconsistencies regarding the sub-dimensions continued to exist. Of these dimensions, mutual support, trust, liking, latitude, attention and loyalty appear to be predominant in the majority of studies according to Schriesheim et al. (1999). 24 As an example of a widely accepted conceptualisation of leader-member exchange, Graen and Uhl-Bien (1995) suggest the sub-dimensions of respect, trust, and obligation. Graen and Uhl-Bien postulate that the offer to another to build a partnership (or highquality) LMX is based upon three factors: 1) mutual respect for the capabilities of the other, without which an offer will not be made; 2) the anticipation of deepening reciprocal trust with the other; and 3) the expectation that interacting obligation will grow over time as career-oriented social exchanges blossom into a partnership. According to Graen and Uhl-Bien, the development of the leader-member exchange relationship is based on the characteristics of the working relationship as opposed to a personal friendship relationship, and this trust, respect and mutual obligation refer specifically to the individual’s assessments of each other in terms of their professional capabilities and behaviours. The authors argue that although the LMX construct has multiple dimensions, these are so highly correlated that they can be measured with the single measure of leader-member exchange. The authors advocate the use of the 7-item leader-member exchange (LMX7) measure used in Graen, Novak and Sommerkamp (1982) and reported in Scandura and Graen (1984). Overall, I find Graen’s and UhlBien’s discussion about the multidimensionality of leader-member exchange misleading: they are arguing that leader-member exchange has multiple dimensions (respect, trust, and obligation) but still measuring it in a one-dimensional way. Putting it even more critically, I don’t think the recommended LMX7 measure reflects the conceptualisation provided by Graen and colleagues. Schriesheim et al. (1999) note in their review that investigations have used leadermember exchange measures having from 2 to 25 items (for a comprehensive review of measures used, see Schriesheim et al., 1999). Just in the 1980s, 16 different operationalisations and measures of LMX were use and at least 12 different measures in the 1990s, some of which were developed on an ad hoc basis without adequate psychometric testing. Inadequate measurement causes problems at the individual study level, but in addition, the use of different measures of leader-member exchange in different studies makes it hard to determine whether conflicting results between studies are due to deficiencies in the theory or the operationalisation of the core construct (Gerstner & Day, 1997). Despite the large number of leader-member exchange measures available, the LMX7 has been the most frequently used measure in the 1980s and 1990s (Gerstner & Day, 1997). Graen and Uhl-Bien (1995) suggest minor changes to this measure and consider it most appropriate and recommended, as more expanded measures have been highly correlated with it and as they have also produced the same results. But as Schriesheim et al. (1999) correctly point out, no evidence of adequate psychometric testing of this revised scale has been provided. However, the metaanalysis conducted by Gerstner and Day (1997) showed that the LMX7 measure has the soundest psychometric properties of all instruments, and the authors hence recommend its use when assessing one-dimensional exchange quality. Liden and Maslyn (1998) criticise the LMX7 construct, which, regardless of its psychometric properties, is not capable of capturing multiple dimensions. According to the authors, role theory, which provides a theoretical basis for leader-member exchange research, stresses the multidimensional character of roles. Followers’ roles, for instance, comprise both task-related activities and social interaction. Followers may differ in strength on these dimensions. Leaders’ roles also consist of different factors such as 25 supervising, allocating resources, and serving as a liaison. Liden and Maslyn also find support for a multidimensional perspective on LMX from social exchange theory, the other theoretical foundation of leader-member exchange, which identifies numerous material and non-material goods that can be exchanged. The main argument is that although work behaviours stressed by Graen and colleagues are important, leadermember exchange relationships may develop and endure in a number of ways. Liden and Maslyn use the multidimensional perspective on leader-member exchange advocated by Dienesch and Liden (1986) as a foundation for their LMX conceptualisation and construct. Dienesch and Liden suggested that the quality of leader-member exchange could be based on three different types of “currencies of exchange”: a) task related behaviours (labelled contribution), defined as the “perception of the amount, direction, and quality of work-oriented activity each follower puts forth toward the mutual goals” (this has been the focus in a big part of the LMX research); b) loyalty to each other (labelled loyalty), defined as the “extent to which the leader and follower publicly support each other’s actions and character” (loyalty has been regarded by Graen and colleagues as an outcome of the leader-member exchange developmental process), and c) liking each other (labelled affect), defined as “the mutual affection members of the dyad have for each other based rather on interpersonal attraction rather than work or professional values” (Graen and colleagues have traditionally regarded affect as an antecedent to leader-member exchange development. In their attempt to develop a measure which could enhance future leader-member exchange research, Liden and Maslyn (1998) identified one additional dimension of LMX: professional respect, which refers to the “perception of the extent to which each follower of the dyad has built a reputation, within and/or outside the organisation, of excelling at his or her line of work”. This perception may be based on historical data concerning the person (awards, outside comments) and could be formed before working with the person. It is argued that an exchange can be based on one or more of these exchanges (dimensions) and that the importance of each dimension may vary across individuals. Liden and Maslyn (1998) argue that a multidimensional perspective on leader-member exchange increases our understanding of both the construct itself and its relationship with organisational outcomes. It also indicates that there can be different types of high and low quality leader-member exchange relationships. A high quality leader-member exchange relationship could, for instance, be based on contribution, where a leader and follower frequently work together after normal office hours, or the relationship could be based on affect, where the leader and follower spend much time at work discussing nonwork issues. Dienesch and Liden (1986) suggest that the leader-member exchange dimensions could be mutually reinforcing through an ongoing reciprocal process. The different dimensions could also be affected by different factors and predict different organisational behaviours and outcomes. In their theoretical article, Dienesch and Liden (1986) hypothesised that the contribution dimension in a leader-member exchange relationship is likely to have greater influence over the challenge and difficulty of assignments assigned to and accepted by the follower than the affect or loyalty dimensions have (professional respect was not included in this work). This is because the superior should have confidence in the ability and willingness of the follower to successfully complete difficult, extensive, or critical tasks. The follower should also be confident in his or her own ability, be willing to accept a larger workload, and be confident that the leader will provide an adequate level of support and advice. Liden and 26 Maslyn (1998) expected and found contribution (and professional respect) to be more related to organisational commitment than loyalty and affect toward the supervisor. The loyalty dimension, which is primarily concerned with the degree to which the dyad members protect each other relative to those outside the relationship, is, according to Dienesch and Liden, more likely to have a greater effect than the other dimensions on the number on boundary spanning assignments, and behaviours that concern interfacing with the environment as well as discretion when interacting with individuals from outside the work group. The authors also hypothesise that high loyalty should be reflected in attempts at long term development of the follower because the superior can be more assured of benefiting from developmental activities through continuance of the relationship. Dienesch and Liden expect the affect dimension to influence the work atmosphere in general and hence the level of flexibility and emotional support provided to the follower. This influences schedule flexibility and autonomy in a follower’s tasks. The affect dimension could also have an effect on leader ratings of follower performance as liking has been found to be related to performance ratings (Liden & Maslyn, 1998) (as a result of either attributional bias or actually improved performance as a result of additional support). The results obtained by Maslyn and Uhl-Bien (2001) provided support for the assumption of unique effects depending on the dimension considered. In their comparison of the LMX7 measure and the multidimensional measure of leadermember exchange (LMX-MDM), Liden and Maslyn (1998) found that LMX-MDM might explain incremental variance in some outcome variables beyond that explained by LMX7. The authors point out that in some studies, LMX dimensionality may not be a concern and a one-dimensional measure could be sufficient. When a global measure for leader-member exchange is needed, the 12 LMX-MDM measures could be combined into a composite (in Liden’s and Maslyn’s sample, this composite correlated .84 with LMX7). Alternatively, each of the four dimensions could be used as indicators of global LMX in a structural equations model. In contrast to the LMX7 measure, the multidimensional measure developed by Liden and Maslyn (LMX-MDM; 1998) seems to be more in line with the theoretical arguments presented. This measure has also undergone reasonable psychometric testing and has shown promising evidence of satisfactory reliability and validity (cf. Schriesheim et al., 1999). The present study is based upon the multidimensional conceptualisation and measure of leader-member exchange developed by Liden and Maslyn (1998) due to the arguments presented above (i.e. sufficient theoretical background, multidimensional character, and sound psychometric properties). Specific hypotheses pertaining to each dimension will be developed and the relative importance of the different dimensions on OCB will be examined. These hypotheses will also be tested on a composite measure of LMX, which is the average of the LMX-MDM measure. 27 2.1.3 Leader and follower perspectives of LMX Some researchers have claimed that leader-member exchange should always be measured from both leader and follower perspectives (e.g. Gerstner & Day, 1997; Minsky, 2002). However, according to Minsky (2002), of the over 100 studies of leader-member exchange to date, the majority have been concerned with leader-member exchange quality measured from a follower perspective and only a few studies have simultaneously assessed leader-member exchange from both leader and follower perspectives. The studies that have investigated leader-member exchange from both leader and follower perspectives have normally found a significant difference between leader and follower reports of the quality of the leader-member exchange relationship (e.g. Gerstner & Day, 1997). Furthermore, in some studies, no specification is made with regard to the leader-member exchange perspective examined. The perspective taken should, however, be clearly defined as leader and follower evaluations of leadermember exchange quality could be affected by different factors and lead to different organisational outcomes (Gerstner & Day, 1997). Furthermore, the meta-analysis conducted by Gerstner and Day (1997) suggests that leader-member exchange is more reliably assessed from a follower’s perspective than from a leader’s. As an explanation for this the authors suggest that leaders may have a somewhat more complex, multidimensional construction of exchange quality than followers. This suggests that leader and follower LMX are separate constructs. The distinctiveness of leader and follower LMX quality is underlined if leader-member exchange quality is conceptualised as perception held by one of the dyadic partners, rather than as an objective reality, as discussed by Brower, Schoorman and Tan (2000). In other words, the different perspectives of leader-member exchange quality capture different perceptions of the leader-follower relationship and not actual exchange. The majority of the leader-member exchange measures have originally been designed and validated to measure leader-member exchange from a follower perspective. This concerns at least the LMX7 and LMX-MDM measures discussed earlier. However, both leader and follower versions for the LMX7 and LMX-MDM have been developed. The leader version of the LMX7 measure does not, however, quite respond to the follower version of the scale as many items seem to focus on the follower and his or her perceptions of the leader-member exchange relationship and not on the leader’s perceptions of the relationship (see e.g. the second item of LMX7: ‘How well does your leader understand your problems?’, which in the leader version stands ‘How well do you understand your follower?’ instead of e.g. ‘How well does your follower understand you?’). The LMX-MDM measure in its original form also measures leadermember exchange from a follower perspective. To measure leader-member exchange from a leader perspective, a scale based on and very similar to the original LMX-MDM that has been developed by Paglis and Green (November 2000, personal communication) and it will be used in the present study. The items in the leader version (see the section on measures and their validation p. 137) mirror those in the follower version (with some changes in wording to better suit the leader situation) with the 28 exception of the items belonging to the contribution dimension. For instance, item 7 ‘I do work for my supervisor that goes beyond what is specified in my job description’ is formulated as ‘This subordinate does things for me that go beyond what is specified in his/her job description’. What this means is that all items in the leader version concern leader perceptions of the follower. In the follower version, all items concern follower perceptions of the leader with the exception of the contribution items where the follower rates their own contribution. The conceptualisation of leader and follower leader-member exchange as separate and perceptual constructs has implications on the examination of agreement between perspectives. The treatment of leader and follower LMX as conceptually distinct and even different constructs makes it difficult, if not impossible, to examine the level of agreement between leader and follower perceptions of the quality of leader-member exchange. Of course, a situation where the leader has high perceptions of the follower and the follower has high perceptions of the leader would be a preferred situation, but the term “agreement” is not the appropriate term as we are examining different individuals’ perceptions of different individuals. The examination of both perspectives in one study naturally gives a more complete picture of the exchange relationships, but the omission of either perspective does not reduce the usefulness and validity of the other leader-member exchange perception. I argue that an individual’s perceptions of the quality of the relationships will affect his or her attitudes and behaviour, although he or she does not know the perceptions of the dyadic partner. This conceptualisation does not exclude the fact that leader and follower perceptions could, and are likely to, influence each other but it underlines the fact that what we are actually measuring, and able to measure with the current measures, are individual perceptions, not a mutual and objective exchange. In view of the arguments presented above, in the present study leader and follower leader-member exchange quality will be treated as separate constructs and conceptualised as perceptions that reside within the individual independently of the perceptions of the dyadic partner. This conceptualisation of leader-member exchange is not radical in the sense that it conforms to the majority of the empirical studies that have focused on measuring leader-member exchange from a single (mostly follower) perspective. The main difference is that the claim is not made that what is measured is “objective” exchange leading to a recognition of the fact that leader and follower LMX hence can have different antecedents and outcomes. 2.1.4 Conclusion: Working definition of LMX quality Based on the discussions above, a working definition of leader-member exchange quality has been formulated for the present study. It is based on Liden’s and Maslyn’s (1998) multidimensional measure of leader-member exchange and the authors’ description of the LMX dimensions. This multidimensional conceptualisation is here combined with the view of leader-member exchange quality as perceptions of the quality of the relationship that reside within the individual independently of the dyadic partner ‘s perceptions. This means that leader and follower perceptions are separate 29 constructs that do not require mutuality although they are likely to be mutually reinforcing. What should also be noted is that even if the perception of leader-member exchange quality resides within the individual and is not similar to the one of the dyadic partner, it has been formed as a result of dyadic interaction and the interplay between leader and follower characteristics. Follower leader-member exchange quality is defined as the combination of: 1) the level of affection the follower has for the leader, 2) the follower’s perception of leader loyalty towards follower, 3) the follower’s perception of own work contribution toward leader, and 4) the level of follower respect for leader’s professional skills. Leader leader-member exchange quality is defined as the combination of: 1) the level of affection the leader has for the follower, 2) the leader’s perception of follower loyalty towards leader, 3) the leader’s perception of follower’s work contribution toward leader, and 4) the level of leader respect for follower’s professional skills. 30 2.2 ANTECEDENTS AND OUTCOMES OF LMX Research into leader-member exchange and its relation to other variables has been gaining momentum since its inception in the 1970s, as clearly demonstrated by numerous review articles (e.g. Gerstner & Day, 1997; Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997; Schriesheim, Castro, & Cogliser, 1999). In these reviews, it has been demonstrated that a wide range of antecedents determine leader-member exchange and that it is a significant correlate of many work-related outcomes. An overview of these antecedents and outcomes will be presented in this section. The first hypotheses will also be presented for leaders and followers separately. What should be borne in mind is that the inconsistencies in the definitions and measurement of leadermember exchange mentioned earlier makes it difficult to relate different leader-member exchange studies to one another in a strict sense. However, these studies provide a general idea of what type of factors have been and could be associated with the quality of leader-follower relations. Before a presentation of specific antecedents and outcomes identified in prior empirical research, conceptual models of leader-member exchange development will be presented to serve as an introduction to the subject. As this section will demonstrate, it is sometimes hard to distinguish between antecedents and outcomes of LMX. This is due to the dynamic nature of leader-follower relationships, where the result of former interaction lays the foundation for future interaction. This is the case especially with behaviours, such as follower performance and leader fairness and delegation. This section aims at giving a general overview of antecedents and outcomes of leadermember exchange. More specific hypotheses on how different factors are related to leader and follower LMX are presented in the following two chapters. 2.2.1 Models of LMX development Several conceptual models of leader-member exchange development have been put forward by researchers. In Bauer’s and Green’s (1996) model, the development of leader-member exchange relationship is basically viewed as a trust-building process. Brower, Schoorman and Tan (2000) also integrate leader-member exchange and trust theory in their model of relational leadership. Trust has been an important dimension of leader-member exchange in most conceptualisations, including the multidimensional conceptualisation of LMX, where the loyalty dimension was found to correspond to trust (Liden & Maslyn, 1998). Graen and Scandura (1987) developed a three-phase model of leader-member exchange development including role taking, role making, and role routinisation. Later, Scandura (1999) proposes a model of leader-member exchange development where each type of justice (procedural, distributive and interactional) plays a different role at different stages. Furthermore, a model called the Leadership Making model was developed by Graen and Uhl-Bien (1991, 1993) and a model called the relationship-building model was put forward by Uhl-Bien, Graen and Scandura (2000). The relationship-building model presented Uhl-Bien et al. (2000) shares many 31 commonalties with the other models, and will be presented here in order to give an overview of the dynamics of LMX development. According to Uhl-Bien et al. (2000), relationship development begins when the leader and follower experience an interaction or exchange sequence over a limited period of time. The nature of the interaction sequence depends on: 1) the relatively stable characteristics of the interacting individuals that dispose them to approach interpersonal situations in a certain way, 2) the individuals’ expectations of the exchange based on past experience, outside information and cognitive schemata, 3) the individuals’ assessment of and reaction to the exchange both while it is occurring and in retrospect. The outcomes of the initial testing sequences cause the individual to form perceptions, attributions and attitudes about the other individual and the relationship. Reactions and evaluations of the interaction build expectations (of self, of other, or relationship and of situation) and influence behaviour exhibited by individuals in subsequent interactions. These cognitive and perceptual processes are responsible for the dynamic nature of the relationship development and repeated interactions result in the formation of relationships of different types and quality that in turn influence future exchanges. (This makes it difficult to distinguish between antecedents and outcomes of LMX as the outcome of earlier LMX influences subsequent LMX). Situational factors exert influence throughout the process by affecting how individuals interact and form relationships and how these relationships influence work-related outcomes. Situational variables are mainly considered as mediators or moderators and their effect will vary depending on the interacting individuals and their stage in the relationship. (Uhl-Bien et al., 2000). As a final remark it should be noted that the quality of leader-member exchange is expected to be the result of the cumulative effects of various factors and interactions; the result of the history of the relationship (Bauer & Green, 1996). It is not the most recent interaction that defines the quality of exchange, but their cumulative effect. 2.2.2 Antecedents of LMX The antecedents of leader-member exchange identified in prior empirical research will be divided into four groups in this presentation and throughout the thesis: 1) leader and follower personal characteristics that exist prior to the leader-follower exchange, 2) interpersonal variables that are formed through interaction between leader and follower characteristics, 3) leader and follower behaviours that occur during the exchange, and 4) contextual variables that mediate or moderate the exchange between the leader and follower. a) Leader and follower personal characteristics Each leader and follower brings unique physical characteristics, attitudes, appearance, abilities, personality, experience, age, and background to the leader-member exchange relationship (Dienesch and Liden, 1986). These leader and follower characteristics influence the dyadic partners’ perceptions and evaluations of each other, which in turn 32 determine their behaviour towards each other (Liden et al., 1997) as well as leadermember exchange quality (Phillips & Bedeian, 1994). These characteristics could be divided into two groups: 1) characteristics that influence how we perceive another person, and 2) characteristics that influence how others perceive us. Dividing the personal characteristics into these two groups has mainly served as an aid in the hypothesis development and identification of variables to include in the present study. This distinction has not, to the best of my knowledge, been made in previous leadermember exchange research. The first group of characteristics refers to the relatively stable characteristics of the interacting individuals that dispose them to approach interpersonal situations in a certain way, as discussed by Uhl-Bien et al. (2000). An example of this type of characteristics is neuroticism, which allegedly is associated with negativity and negative perceptions. Agreeableness again is a personal characteristic that could influence how others perceive us. In their review, Liden et al. (1997) identified the following follower characteristics that have been examined in previous LMX research: follower affectivity, locus of control, growth need strength and introversion/extroversion. Furthermore, demographic characteristics have been examined, such as age and tenure, race and education (Tsui & O'Reilly, 1989), and gender (e.g., Tsui & O'Reilly, 1989; Wayne & Liden, 1995; Varma & Stroh, 2001). However, it should be noted that most studies on the influences of demographic factors have been from a relational perspective (the demographic characteristics of a person in relation to others’ characteristics) and they hence mainly belong to the category ‘interpersonal variables’ that will be described later in this section. A surprising discovery is that almost all leader-member exchange studies examining the influence of personal characteristics on leader-member exchange have focused on follower characteristics (this is indicated by review articles on leader-member exchange theory written by Graen & Uhl-Bien, 1995; Liden et al., 1997; Gerstner & Day, 1997). When Liden et al. (1997) reviewed leader-member exchange research, they found only one study had examined leader characteristics as antecedents of LMX: Day and Crain (1992; as cited in Liden et al., 1997) found that positive affectivity on the part of the leader was positively linked to follower reports of leader-member exchange whereas leader ability and negative affectivity was not significantly related to leader-member exchange. In other words, past leader-member exchange has focused on how follower characteristics affect leader perceptions of the follower and resulting leader behaviour (delegation) and leader-member exchange quality rather than how leader characteristics influence follower perceptions and the resulting exchange (Liden et al., 1997). The focus on follower characteristics is surprising, considering that the leaders are the ones who are expected to make the initial “offer” to develop a high-quality leader-member exchange relationship (Bauer & Green, 1996). Furthermore, the leaders are supposed to have more control over the quality of the relationship through their behaviour including delegation (Liden et al., 1997). In addition, Liden et al. (1997) suggest that leader characteristics could be important in determining whether a follower desires and accepts a high-quality exchange offered by the leader. The present study could hence make a contribution to existing leader-member exchange research by measuring personal characteristics including personality, values and demographic factors from both leader and follower perspectives. Brower et al. (2000) point to the need for further research 33 that specifies how propensity for leader-member exchange relationships develops and whether individual traits have differential effects on the relationship. This will be examined for both leaders and followers in the present study. Hypotheses on how different personal characteristics are expected to influence leader-member exchange and its dimensions are developed in Chapter 3. Cognitive structures and expectations have also been linked to leader-member exchange (cf. Uhl-Bien et al. 2000). As these reside within the individual and exist already prior to the exchange (although they are likely to change during the exchange), they are categorised as personal characteristics in this overview. Engle and Lord (1997) argue that many aspects of dyadic relations are based on the automatic use of cognitive schemata as a basis for categorising one's dyadic partner. Since categorisation guides subsequent information processing, the initial classification of another person can lay the groundwork for the dyadic relationship that will eventually develop. The cognitive structures affect the leader expectations and perceptions of subordinates (Sparrowe & Liden, 1997). According to Feldman (1986), categorisation of employees produces a “Pygmalion effect” in which the supervisors’ expectations influence the quality of the exchange relationship with the employee. Sparrowe and Liden (1997) argue that leader expectations of subordinates established and expressed during the first few days of working together have been shown to be related to subordinate perceptions of the quality of leader-member exchange six months later. Leaders' expectations alter their perceptions of subordinates. Leaders holding high expectations of subordinates may be more likely to attribute their good behaviour to their internal qualities and poor behaviour to forces external to them, whereas attributions would be the reverse when the leaders have low expectations of the subordinates (Heneman, Greenberger, & Anonyuo, 1989). Leaders' expectations may also influence their behaviour toward members. High leader expectations for a subordinate may translate into the provision of challenging tasks, feedback, and training. Conversely, a subordinate of whom a leader has low expectations may be left with relatively routine tasks, little feedback, and few training opportunities (cf. Feldman, 1986; Leana, 1986). As Liden, Wayne and Stilwell (1993) suggest, leaders may provide more time, attention, feedback, and encouragement to subordinates of whom they have higher expectations. Thus, in an attempt to influence the fulfilment of expectations, leaders might enhance leader-member exchange relationships with "high-expectation" subordinates. Support for this assumption was found in a study conducted by Wayne et al. (1997). As expectations seem to play a major role before or in the beginning of the relationship, it seems most suitable to examine newly formed dyads and adopting a longitudinal perspective, as in the study conducted by Liden et al. (1993). As this study does not focus on newly formed dyads or adopt a longitudinal perspective, expectations are not included in the analyses. In many leader-member exchange studies it has been argued that the characteristics and similarity of dyadic partners should be influential early in relationships, but later, the exchange of resources, actual behaviour (such as follower performance and leader delegation), and testing of competence becomes increasingly important (e.g. Dienesch & Liden, 1986; Bauer & Green, 1996). Personally, however, I agree with Phillips and Bedeian (1994) who argue that personal attributes and characteristics play an important role in older dyads as well. This view is supported by the fact that leader-member exchange relationships have been shown to develop very quickly and remain relatively 34 stable over time (e.g. Liden et al., 1993). This could be interpreted as indicating that initial impressions of the dyadic partner based on non-behavioural characteristics are likely to affect subsequent LMX interactions and quality. Furthermore, as personality traits, which form an important group of the personal attributes to be examined in the present study, arguably do not change during the development of the LMX relationship, they will continue to affect the leader-member exchange relationship in a similar way all through the relationship’s development and not just in its beginning. Furthermore, the study conducted by Liden, Wayne and Stilwell (1993) showed that ratings of follower performance (a behavioural factor) are relatively less important in predicting leader-member exchange than were affective variables (liking caused by similarity). The argument made here is not that behavioural factors are unimportant to the leadermember exchange quality of established dyads, but that non-behavioural personal characteristics and similarity exert influence continuously. Drawing on the literature on trust, Brower et al. (2000) suggest that an individual’s propensity to trust and relate, and hence propensity to form high-quality LMX relationships, is not only influenced by personality, but also by culture and experiences. This gives the propensity to relate a more dynamic nature. It also suggest that in the intercultural context of the present study, the leader’s and follower’s cultural knowledge, including past experiences of working in foreign cultures and with individuals representing different cultures could influence their expectations and propensity to form high-quality LMX relationships in the present context. As a result, the leaders’ and followers’ past intercultural experiences will be included in the analyses in the present study. In sum, both leader and follower personality, values, cultural knowledge and demographic background will be examined in the present study. These characteristics are expected to be of importance at different stages of the leader-follower relationship and influence both how a person perceives others and is perceived by others. b) Interpersonal variables In addition to examining the leader’s and follower’s characteristics and behaviours separately, researchers have examined these characteristics in relation to each other in terms of actual similarity, liking, expectations and perceived similarity. Studies on actual similarity have often focused on demographics (e.g. Bauer & Green, 1996; Liden et al., 1993) and have obtained mixed results. Mixed results in terms of personality similarity and leader-member exchange have also been obtained (e.g. Bauer and Green, 1996). Furthermore, Engle and Lord (1997) found that cognitive similarities between supervisors and subordinates have a positive effect on leader-member exchange quality. Hypotheses regarding the influence actual similarity, including similarity in values, personality and demographics on the different dimensions of leader-member exchange will be presented in Chapter 3. Concerning perceived similarity, studies have consistently found it to be positively related to leader-member exchange (e.g. Liden et al., 1993; Wayne et al., 1997). A positive relationship between liking and leader-member exchange has also been found in many studies (e.g. Liden et al., 1993; Wayne et al., 1997). (However, in later 35 conceptualisations of leader-member exchange and in the present study, the liking or affect factor is actually considered to be one dimension of leader-member exchange). The dyadic parties’ positive expectations of each other have also been found to predict leader-member exchange (Liden et al., 1993; Wayne et al., 1997). Furthermore, in a Chinese context, the existence of guanxi bases between the dyadic partners could be important (Hui & Graen, 1997). Dyadic tenure and dyadic contact hours per week could also influence the LMX relationships (Bauer & Green, 1996). Hypotheses regarding the influence of perceived similarity on the different dimensions of LMX will also be presented in Chapter 3. c) Leader and follower behaviours Follower impression management and performance and leader fair treatment and delegation are behaviours that have been linked to leader-member exchange quality, as will be discussed below. What makes the interplay between leader-member exchange and these behaviours confusing is that some of them have also been regarded as outcomes of leader-member exchange. It appears that this confusion would be largely diminished if the perspective from which leader-member exchange is measured would be clearly defined. The study conducted by Wayne and Liden (1995) indicated that followers’ impression management behaviours influence leaders' liking of the follower (i.e. affect, which is a dimension of leader-member exchange in the current conceptualisation) as well as the leaders’ perceptions of similarity to the followers. Furthermore, Wayne and Ferris (1990) found that follower behaviours aimed at pleasing the leader influence affect. Maslyn and Uhl-Bien (2001) showed that when the other member of the dyad (i.e. leader or follower) put effort into relationship development, higher LMX relationships are reported. In addition, a follower behaviour that has been considered as a central aspect of leader-member exchange development is follower performance. The early conceptualisations of leader-member exchange development as well as the role-making model (Graen & Scandura, 1987) stressed the importance of follower performance and suggested that the leaders assess the followers’ ability, performance and competence through a series of assignments and eventually develop high-quality exchanges with high-ability, competent, and high-performing followers. Dockery and Steiner (1990) and Wayne and Ferris (1990) have found empirical support for the argument that follower performance is associated with leader leader-member exchange. Follower performance will hence be examined as an antecedent of leader LMX in the present study. Regarding leader behaviours that have been associated with leader-member exchange quality, fair treatment provided by the leader (i.e. interactional justice) is one example (e.g. Scandura, 1999). As noted by Graen and Scandura (1987), one of the requirements for the development of high-quality relationships is that each party must see the exchange as reasonably fair. Interactional justice is concerned with the quality of treatment received from decision-makers (Leung et al., 1996). Scandura (1999) suggests that interactional justice represents an important aspect of the leader-follower relationship and that interactional justice should hence correlate closely and significantly with leader-member exchange. The findings of the study conducted by 36 Murphy, Wayne, Liden and Erdogan (2003) support the significant relationship between interactional justice and LMX. Furthermore, the results obtained by Wayne, Shore, Bommer and Tetrick (2002) indicate that leader contingent rewards are related to LMX. In the present study, interactional justice is conceptualised as a leader behaviour, measured as a follower perception, which constitutes an antecedent of follower LMX. Leader delegation has also been linked to leader-member exchange quality (Schriesheim, Neider and Scandura, 1998; Bauer and Green, 1996). Bauer and Green (1996) suggest that follower performance and leader delegation are a form of interact that are related to each other at any given point in time. Better performance provokes more delegation, which leads to more delegation that offers the opportunity for better performance, and so on. Bauer and Green measure leader-member exchange from only a follower perspective and find that delegation has a significant impact on leadermember exchange quality. Furthermore, they show that follower performance is correlated with delegation. It is possible that instead of claiming that delegation and performance interact to determine leader-member exchange, a more correct assertion would be that leader delegation is an antecedent of follower LMX (but outcome of leader LMX) and follower performance is an antecedent of leader LMX (but outcome of follower LMX). If this is the case, one could claim that good follower performance leads to high leader leader-member exchange that leads to leader delegation that leads to higher follower leader-member exchange that leads to higher follower performance and so on. Despite evidence of delegation as a determinant of leader-member exchange quality, the present study will focus on only one leader behaviour, namely interactional justice. As already noted in Chapter 1, a problem with perceptual measures of behaviour is that they sometimes seem to have an almost tautological relationship with leadermember exchange. Furthermore, if perceptions of behaviour are measured from the same source as leader-member exchange, they may reflect rating biases and have little to do with actual behaviour (cf. Duarte et al, 1994). As a result, the decision has been made to include only one central behavioural measure each for leader and follower LMX and to focus on personal and interpersonal antecedents. d) Contextual variables Uhl-Bien et al. (2000) note that contextual influences, such as physical setting, nature of the task, time constraints, organisational culture, reward systems and the communication situation occur throughout the process, acting either as mediating or moderating factors by affecting how individuals interact and form relationships. Cogliser and Schriesheim (2000) examined work group size, work group cohesiveness and leader power in relation to LMX development. Dienesch and Liden (1986) identified work group composition, a leader’ power and organisational politics and culture. Dienesch and Liden (1986) suggest that if a leader supervises a large number of followers, he or she may not have time and resources to develop high-quality relationships with all of them. Kinicki and Vecchio (1994) found that leaders experiencing time-based stress differentiate less between their followers and develop higher quality relationships with them. The rational for this offered is that leaders who experience greater time-pressure should be inclined to offer more opportunities for participation to a greater range of followers due to a need for trustees. However, Green et al. (1996) found a strong negative relationship between workload and LMX and 37 further that large financial resources were positively and larger group size negatively related to LMX. This suggests that organisational characteristics may constrain a leader and hence LMX development. Sparrowe and Liden (1997) describe how social structure facilitates the exchange process through which leaders assist in incorporating some members into the inner life of an organisation but exclude others. The authors argue that there is an interplay between leader-member exchange and social networks during the different relationshipdevelopment phases (the authors call these initial relationship development, sponsorship and assimilation). It is suggested that during initial relationship development, if the leader and member of a new dyad share a common contact, the form of reciprocity each shares with the contact will shape expectations and perceptions of similarity held by the leader and member and thus affect the early development of leader-member exchange (“friends of friends are likely to become friends”). Furthermore, it is argued that given the effects of cohesive groups on individual propensity to conform to group norms, the inclusion of members in their leaders’ inner circles during the sponsorship phase is likely to increase both parties’ perceptions of similarity (affecting subsequent LMX quality). The contextual factors that will be included in the study as control variables are the number of followers the leader supervises as well as the intensity of the interaction. 2.2.3 Outcomes of LMX A significant part of leader-member exchange research has addressed the question of how leader-member exchange relationships are related to organisational variables (see e.g. Liden et al., 1997, Graen & Uhl-Bien, 1995). These studies have normally shown that individuals in high-quality leader-member exchange relations have more positive job attitudes and engage in more positive behaviours than those in lower-quality relationships engage. The majority of these studies have focused on leader-member exchange effects on follower attitudes and behaviours and not on outcomes for leaders and the organisation (Liden et al., 1997). Regarding follower attitudes and perceptions, support has been found for the relation between leader-member exchange and overall job satisfaction, satisfaction with leader, satisfaction with pay, co-worker satisfaction, perceptions of organisational climate (for reviews see Gerstner & Day, 1997; Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997), as well as organisational commitment (e.g. Settoon et al., 1996), perceived organisational support (e.g. Wayne et al., 1997), perceived empowerment (Gomez & Rosen, 2001) perceptions of communication satisfaction (Mueller & Lee, 2002) and procedural and distributive justice (e.g. Scandura, 1999). More recently, LMX has been linked to followers’ feelings of reciprocity with respect to the relationship with the leader, which in turn was found to mediate the relationship between LMX quality and follower absenteeism (van Dierendonck, Le Blanc & van Breukelen, 2002). 38 Leader-member exchange has also been found to be related to the nature of followers’ work activities and behaviours such as boundary spanning, decision making, communication, liaison activities, innovative behaviours, turnover, and organisational citizenship behaviour (for reviews see Gerstner & Day, 1997; Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997). In addition, leader-member exchange has been linked to outcomes provided by the organisation such as promotions, bonuses and salary increases (e.g. Wakabayashi & Graen, 1984) as well as selection for international assignments (Varma & Stroh, 2001). Finally, as mentioned earlier, supervisory performance ratings have been positively correlated with leader-member exchange in some studies (e.g. Duarte et al., 1994: Wayne et al., 2002) whereas weaker correlations have been found when using objective measures of performance (Liden et al., 1997). The results obtained by Kraimer, Wayne and Jaworski (2001) indicate that the quality of the LMX relationship expatriates have with their leaders influenced expatriate task and contextual performance (rated by leader). Dunegan, Uhl-Bien and Duchon (2002) explain the inconsistent findings with regard to the linkage between LMX and performance by the moderating effects of task characteristics such as role conflict, role ambiguity and intrinsic task satisfaction. In a similar vein, Schriesheim, Castro and Yammarino (2000) examine the impact of span of supervision and influence tactics in moderating relationships between LMX and both performance and commitment. In addition, differences in organisational tenure between leader and follower have been found to moderate the relationship between LMX and organisational commitment, job satisfaction and well-being (Epitropaki & Martin, 1999). Contextual factors do not hence only influence the formation of LMX relationships as discussed in the section above, but also the outcomes of these relationships. It should be noted that in addition to having a direct effect on various outcomes, LMX quality could act as a moderator. For instance, Erdogan, Kraimer and Liden (2002) found LMX to moderate the relationship between person-organisation fit (measured as the correlation between individual culture preferences and organisational culture profiles) and both job and career satisfaction. The linkage between leader-member exchange and organisational citizenship behaviour (OCB) will be in focus in the present study. This is due to the alleged importance of organisational citizenship behaviours for the functioning of the company. 39 2.3 THE INTERCULTURAL FRAMEWORK CHINESE CONTEXT AND THE LMX A Western-owned subsidiary located in China is influenced by both host and home country cultures and involves interpersonal interactions between people with different cultural backgrounds. The subsidiaries represent Western companies and are often managed by Western expatriates using Western procedures. The Western influence is hence likely to be significant. However, as the subsidiaries are located in China and mainly employ Chinese people, the Chinese influence is also likely to be strong. The interpersonal interactions that are of interest in the present study take place between Western expatriates and local Chinese employees as well as between local Chinese leaders and followers. Some of these employees may have experienced various degrees of acculturation: Western expatriate managers may assimilate Chinese cultural values while the Chinese employees could assimilate Western values. This leads to a truly multicultural and intercultural West-China environment that could have varying levels of “East” and “West” in it. This intercultural Chinese context is likely to have some specific influences and place some specific demands on the leader-follower relationships under examination. Knowledge of this context should help us make the judgement whether the leadermember exchange framework is suitable for this context. Furthermore, this knowledge should facilitate the selection of the most relevant factors and the identification of possible additional factors that should be examined empirically in the present study. The focus in this section is on the cultural context in recognition of the fact that individuals’ interpersonal interactions and organisational behaviours are affected by cultural influences. Adler and Bartholomew (1992) found in their survey of academic and professional journals that 70 percent of all international organisational behaviour and human resource management articles included the concept of culture. Of these, almost all (93.8 percent) concluded that culture was important and made a difference to the organisational behaviour and human resource management issues being studied. The conceptualisation of culture was discussed in the Chapter 1 (see p. 14). In sum, the focus in the present study is foremost on the interacting individuals and not on the “cultures” they represent. However, it is recognised that interpersonal dynamics are influenced by cultural influences. In identifying which particular influences and manifestations of culture would be relevant to study in the present context, literature that could be broadly classified as cross-cultural management and psychology as well as literature on Chinese psychology and social relationships has been reviewed. Cultural influences and cross-cultural differences identified in the literature review that appear to be most relevant for understanding leader-follower relations are presented in this chapter. These influences stem partly from the interaction between the Chinese and Western cultures and the resulting intercultural environment and partly from the Chinese context. It is not possible to include all of these potentially important factors in the empirical part of the study, but their presentation is relevant as a basis for selection of variables for the present study. Furthermore, as knowledge of these potential influences facilitates the interpretation of results and identification of alternate explanations. 40 Describing Chinese cultural influences without discussing Western influences under a separate heading appears to reflect some cultural bias from my part: China is considered “different” and hence worthy a separate discussion whereas own Western values are more taken for granted. The rationale behind this is that it is hoped that the leadermember exchange framework meaningfully and sufficiently represents what is important in leader-follower relations in a Western context and that “Western culture” hence is implicitly considered. Furthermore, Chinese cultural influences are discussed by contrasting them to Western influences. In any event, it is hoped that by considering intercultural and Chinese aspects the Western leader-member exchange framework can be expanded to better suit the present intercultural Chinese context. Furthermore, this contextual knowledge will facilitate the interpretation of the empirical results obtained in the present study. This section begins with a discussion about possible cross-cultural differences that are likely to influence the quality of leader-follower relationships in the present intercultural context (section 2.3.1). Then, influences pertaining to the specific Chinese context will be discussed (section 2.3.2). The last section (2.3.3) deals with the acculturation phenomenon, which has implications for the convergence of values and the applicability of the LMX framework in the present context. 2.3.1 Cross-cultural differences The interaction between East and West in the subsidiaries under examination is likely to result in different types of cross-cultural differences. In this context, successful interaction especially between the expatriate managers and local followers requires intercultural competence. These issues will be discussed in this section. a) Differences in values, cognition and behaviour Although this study does not attempt to generate knowledge about any specific culture, it is based on the assumption that one could expect there to be more differences on some characteristics between the Western and Chinese groups of individuals than within these groups. This assertion could be justified, despite the extremely rough West-China division, as studies conducted e.g. by Sagiv and Schwartz (2000) and Hofstede and Bond (1988) indicate that these regions have very different cultural profiles. In other words, Western and Chinese individuals allegedly represent different and distant cultural groups, which should increase diversity in the intercultural dyads. It is likely that the existence of differences in themselves (in e.g. values, cognitions and behaviours), rather than the prevalence of specific characteristics in a certain group, could cause specific and additional challenges for the development of high quality leader-follower relations in the intercultural situation. Many of the ‘universalist’ researchers comparing cultures have derived dimensions of values for comparing cultures, agreeing that values are the heart of culture and central for various behaviours (e.g. Hofstede, 1980; Schwartz, 1992). The widely used Hofstede construct (1980), comprising the dimensions of power distance, uncertainty 41 avoidance, masculinity, and individualism, has been used by many as a starting point in developing frameworks for contrasting cultures (cf. Ralston, Egri, Stewart, Terpstra, & Yu, 1999). Hofstede (1984), and others have organised countries according to these four dimensions. One result of these efforts was the clustering of countries on dimensions that yielded general definitions of "Western" and "Eastern" cultures (cf. Ralston, Cunniff & Gustafsson, 1995). Using Hofstede’s cultural cluster concepts many Asian countries, including China, have been identified as belonging to the same cultural cluster characterised by low individualism and high power distance, whereas the West is characterised by high individualism (e.g. Hofstede & Bond, 1988). One could hence expect the values of the Chinese and Western respondents to differ. These values and value differences could have an impact on leader-member exchange quality due to the importance values play in behaviour. For instance, Schwartz (1997, 1999) defines values as conceptions of the desirable that guide the way social actors (e.g., organisational leaders, individual persons) select actions, evaluate people and events, and explain their actions and evaluations. Based on this definition, it seems evident that values and value differences could have a significant effect on the quality of leadermember exchange relationships. Therefore, measures of values and value differences will be included in the present study (see p. 71 for a more elaborate discussion on the hypothesised linkage between values and LMX). Cross-cultural differences that could influence leader-member exchange are likely to exist not only at the level of values. Differences in cognitive structures could also have an impact. Cognitive structures affect the leader and follower expectations of their dyadic partner (Feldman, 1986; Sparrowe & Liden, 1997) and are hence related to leader-follower relations. Congruence of cognitive structures are theorised to be critical determinants of liking and exchange processes (Engle & Lord, 1997). This, first of all, because congruence in cognitive structures may influence perceived similarity and identification with the dyadic partner, which have been found to be positively correlated to high-quality leader-member exchange relations. Second, Engle and Lord (1997) argue that since cognitive structures guide both behaviour and social interpretations of behaviour, when congruence exists, the actual behaviour of both dyad members is likely to align with expectations and both parties are likely to interpret behaviour similarly. Third, congruence is argued to permit more automatic, intuitive social interactions, allowing processing resources to be directed toward other tasks. In combination, these three processes should according to Engle and Lord (1997) produce greater liking and higher-quality leader-member exchange where congruence in cognitive structures exists. Some evidence exists that cognitive leader and member structures have a cultural component, meaning that the content and complexity of prototypes may differ across cultures (e.g. Ah Chong & Thomas, 1997; Shaw, 1990). Shaw’s (1990) model attempts to explain the impact of culture on cognition by focusing on the interaction, over time, between a foreign manager (expatriate) and a host country subordinate. According to this model, the impact of culture occurs through three basic mechanisms: 1) differences in the content of employee/manager schemata and behavioural scripts, 2) differences in the structure of schemata, and 3) differences in the extent to which individuals process information in an automatic or controlled manner. Support for the existence of cultural differences in cognitive structures and leader prototypes between Chinese people and people in the United States as well as among the social groups within China was found by Ling, Chia and Fang (2000). These cognitive structures also influence our 42 perceptions of culturally divers others and stereotypes. Stereotypes are most generally defined as "beliefs about the characteristics, attributes, and behaviours of members of certain groups" (Hilton & von Hippel, 1996, p. 240, as cited in Khan, 2002). Stereotypes are related to one's overall attitude towards a particular group and therefore influence behaviour (cf. e.g. Khan, 2002). In sum, this means that in an intercultural interaction situation, different leader/follower prototypes as well as stereotypifications may guide leaders and followers. As a result, the meaning of a leader’s/follower’s behaviour may be ambiguous since the interpretations made by the partner representing another culture may not match the intentions of the person exhibiting the behaviour. The fact that culturally different leaders/followers may not exhibit the behaviour expected can be detrimental to intercultural leader-follower relationships as it, for instance, can cause communication problems, reduce effectiveness, lower work satisfaction, increase the likelihood of conflict (Ah Chong & Thomas, 1997) and decrease organisational attachment (Pelled & Xin, 1997). The bottom line is that satisfaction is a result of the fulfilment of expectations of behaviour, which is more likely to occur when the leader and follower prototypes are similar. Furthermore, social interaction is guided by people’s ability to read the interpretations others make of them and their actions and adjust their behaviour to correspond in a meaningful way to those expectations (Marshall & Boush, 2001), which is more difficult in a intercultural context. Cognitive structures and expectations will not be studied directly in the present study, but it is expected that cognitive structures and differences will be reflected in some of the personal and interpersonal characteristics that are measured (e.g. perceived similarity and differences in values). Furthermore, an awareness of possible cognitive differences is important for the interpretation of results of the present study. It is also predicted that cognitive structures and expectations and the ability to deal with differences in these will require some form of intercultural competence that is influenced by cultural knowledge. These issues will be discussed below. b) The expatriate situation and intercultural competence The intercultural interactions under examination in the present study take place between Western expatriates and local Chinese followers. An understanding of the particular expatriate situation is hence relevant. What reduces the usefulness of the expatriation literature in trying to understand leader-follower relations is, as noted earlier, that the expatriation literature has largely focused on the characteristics of the expatriate manager, while ignoring the local employee (cf. Vance & Paderon, 1993). A further problem with the studies on expatriation with regard to their usefulness in understanding leader-follower relations is that although they underline the importance of relational skills, they mostly do not clearly define what relational skills really consist of or what kind of personality traits and qualities could be good indicators of relational skills. An exception is provided by Arthur and Bennett (1995), who identify the following attributes: respect, courtesy and tact, display of respect, kindness, sincerity, empathy, nonjudgementalness, integrity, patience, tolerance, confidence, and ethnic tolerance. Furthermore, according to Rehfuss (1982), relational abilities involve adaptability, flexibility, high levels of interpersonal trust, sincerity and neuroticism. Closely related to relational skills is what Rehfuss calls cultural empathy, including 43 willingness to adapt to a foreign environment, to accept other cultures as a fact of life and to approach problems in a pragmatic fashion. These lists of attributes contributing to relational skills seem to incorporate a large number of qualities including personality traits and attitudes. Some of these qualities appear to be close to those required for intercultural competence. Larsen and Gertsen (1993) define intercultural competence as the ability to function effectively in other cultures. According to Berry (1999), there are several psychological and social requirements for personal intercultural competence (i.e. positive intercultural relations at the individual level as a distinction from group level intercultural competence). The requirements for personal intercultural competence include, according to Berry (1999), the following: a willingness to accept cultural diversity and willingness to interact with others, a high level of tolerance, meaning low ethnocentrism and positive mutual attitudes, minimal discriminatory behaviour, and willingness to engage in intercultural communication. (These requirements are close to what Arthur and Bennett [1995] classify as relational skills). According to Brake, Walker and Walker (1995) intercultural competence also entails open attitudes in order to recognise cultural differences by not assuming that “we are the same” and the willingness and knowledge to be able to adjust one’s behaviour according to the requirements of the situation. Adler (1997) also recognises cultural blindness (lack of attention to cultural assumptions), lack of cultural self-awareness (ignorance associated with not knowing one’s own cultural conditioning) and projected similarity (the belief that people are more similar to oneself than they actually are). According to Berry (1999), the individual level processes of a) cultural transmission (including enculturation and acculturation), b) selection and c) training influence the requirements for intercultural competence. Intercultural competence can hence be considered as a result of both dispositional and acquired traits and skills. Given this distribution of qualities, dispositional or learned, it is possible to select individuals who are likely to be successful in intercultural relations or to train them. The ability to develop high-quality intercultural leader-follower relationships could hence be seen as a sign of both intercultural competence and expatriate relational skills. Therefore, these discussions about relational skills and intercultural competence have been considered when selecting the specific personal characteristics to be included in the present study. These considerations will be presented in conjunction with the hypothesis presented in Chapter 3. Cultural knowledge, obtained either through training or experience, is a factor that has not been examined in previous intracultural LMX research but that seems closely linked to intercultural competence. Cultural knowledge will hence be included in the present study. The more detailed hypothesised relationship between cultural knowledge and LMX will be presented in Chapter 3 (see p. 76). 2.3.2 Chinese cultural influences Despite differing levels of acculturation and Westernisation of the China-located Western subsidiary, the Chinese context and the fact that all the followers examined in the study are Chinese is likely to exert some influence on the leader-follower relations 44 under examination. In this section, some China-specific influences that could be related to the quality of leader-follower relations are presented. This discussion should help us make the judgement whether the leader-member exchange framework is suitable for the Chinese context and what types of factors should be examined to explain and understand leader-follower relations in a Chinese context. The section starts with a presentation of the general Confucian influence and continues with a discussion about Chinese social relationships. a) Confucianism The Confucian philosophy is by many considered to have a high influence on Chinese behaviour. The Confucian ethical system regulating social behaviour has three principal ideas: ren (benevolence), yi (righteousness or justice), and li (propriety or courtesy) (Gabrenya & Hwang, 1996). According to Gabrenya and Hwang (1996), rules regulating social interaction are crucial in the Chinese society, where relationships are collectivist, involuntary and permanent. Yeung and Tung (1996) identify the following characteristics of Confucianism, which in my view could have implications for leadermember exchange-type relationships: 1) Motives for social interactions: role obligations vs. self-interest One basic tenet of Confucianism stresses the importance of an individual's place in the hierarchy of social relationships: individuals are part of a system of interdependent relationships, not isolated entities. The Chinese tend to be rather sensitive to their hierarchical position, and they will behave in a way that displays, enhances and protects both the image and the reality of this position (Gabrenya & Hwang, 1996). A person's fulfilment of the responsibilities of a given role ensures the smooth functioning of society. Gabrenya and Hwang (1996, p. 313) use the phrase “harmony within hierarchy” to characterise social behaviour in Confucian societies. (The system of Chinese social relationships or wu lun and its relation to leader-follower relations will be discussed more in detail in the next subsection, see p. 47). In the West, however, the primary influence on human behaviour is self-interest. This dissimilarity between the two cultures has led to the development of very different attitudes about reciprocation (Yeung and Tung, 1996). According to Tsui and Farh (1997), Chinese often view themselves as interdependent with the surrounding social context, and it is the self in relation to the other that becomes the focal individual experience. This view of the interdependent self is in sharp contrast with the Western view of an independent self, and according to Tsui and Farh maybe one of the most fundamental differences between East and West in social relations as it has implications on a variety of basic psychological processes. Emic studies on Chinese communication have found that the relational aspect of self is important not only in the Chinese self-definition, but also in any description of Chinese communication processes (Gao et al., 1996). Because of the relational aspects of self, verbal exchanges are means of expressing affect and of strengthening relationships. Argumentative and confrontational modes of communication are avoided. Communication is contained, reserved, implicit, and indirect. Non-verbal communication is important. It should also be remembered that it is the prescribed role of an individual, not the self, which is the main determinant of the behaviour. Therefore, 45 communication is not primarily used to affirm self-identity or to achieve individual needs and goals. Personal emotions are not expressed openly. The primary functions of Chinese communication are to maintain existing relationships and to reinforce role and status differences by acting appropriately and to preserve harmony within the group. (Gao et al., 1996). There are also specific rules for communication with in-group and out-group members. Gao et al. (1996) also discuss the role of speakers and listeners, which is determined by existing status and role relationships. It is argued that in Chinese culture, not everyone is entitled to speak and people only voice their opinions when recognised on the basis of expertise or a power position. A spoken voice means seniority, authority, knowledge, and expertise. The ability to listen is therefore an important communicative activity for those with a lower hierarchical position. This rule also applies to work relationships, where the superior speaks and the subordinate listens. A good employee does what he or she is told, has the willingness to meet others' expectations and to accept criticism. Oral skills are not important for a subordinate who is not expected to give feedback. The speaker’s role is to see if a message has been received and accepted using different methods, including the interpretation of nonverbal cues. The ongoing exchange of politeness and face-directed communication strategies are also important in communication processes (Gao et al., 1996). Differing communication behaviour could affect the leader-member exchange relationships and judging the leader-member exchange relationship by looking at the communication between the leader and member could be misleading. Intensive communication between leader and member is often seen as a positive thing in the Western world, but something that should maybe not be expected in a Chinese context. Interaction intensity, which will be examined in the present study, could hence have a different impact in intercultural and Chinese dyads. 2) Reciprocation: self-loss vs. self-gain Confucianism encourages each individual to become a yi-ren (righteous person) (Yeung and Tung, 1996). To become a yi-ren, a person must repay favours and increase the value of the favour given. This could mean that in Chinese leader-follower dyads, obligation and reciprocation could play a larger role than in Western dyads. 3) Time orientation: long-term vs. short-term perspective According to Yeung and Tung (1996), strategic management thought in East Asia includes an understanding of the relationship between situations and time. This perspective stems from the East Asian belief that duality and contradictions (yin/yang) are inherent in all aspects of life. Members of Confucian societies assume the interdependence of events, and understand all social interactions within the context of a long-term balance sheet. For instance, in a guanxi relationship (to be discussed more in detail in the following section, see p. 47) the debit and credit sides of this balance sheet are never in equilibrium, since such a status often means the end of a guanxi relationship. Guanxi is maintained and reinforced through continuous, long-term association and interaction. In contrast, social transactions in the West are usually seen as isolated occurrences and symmetrical short-term reciprocation in exchange relationships is emphasised (Gabrenya & Hwang, 1996). The objective is to maintain balance in each transaction, with great emphasis placed on immediate gains from the interaction. 46 4) Power differentiation: xia vs. power According to Yeung and Tung (1996), another basic tenet of Confucianism is xia, a term that carries the same connotations as "knight" in the Western world. In striving to become a "righteous individual," each person must become a knight, and attempt to right the wrongs of the world. Thus, those in positions of power and authority must assist the disadvantaged. In return, the former gains face and a good reputation. This perspective on the appropriate relationship between the strong and the weak explains, in part, why the Chinese often feel that investors from industrialised countries should make concessions to help developing nations. While social conscience may be strong in the West, the powerful are under no obligation to assist those who are disadvantaged. This could mean that in Chinese leader-member exchange relations, the leader plays a larger role in determining the quality of the leader-member exchange relationship. Furthermore, if leader assistance is taken for granted, the follower could be less prone to reciprocate leader assistance by engaging in extra-role behaviours and by doing favours for the leader that are not considered part of the job. 5) Nature of power: personal power vs. institutional authority Under Confucianism, according to Yeung and Tung (1996), governance by ethics (li zhi) is preferred over governance by law (fa zhi). This accounts for the general aversion to law and litigation in Confucian societies. The disregard for institutional law means that those who occupy positions of authority (ren zhi) have power of influence. Emphasis on personal power promotes the practice of guanxi, since an individual (rather than institutional authority) defines what is permissible in a given context at a particular time. This could imply that the leader-member exchange relationship does not suffer from the leader taking justice into his own hands and making decisions without consulting the member? But, do Western leaders have the same rights and do they get the same “automatic respect” as Chinese leaders do? 6) Sanction: shame vs. guilt The West, under the influence of Judeo-Christianity, operates primarily on the basis of guilt (Yeung & Tung, 1996). Because of an internalised understanding of sin, individuals feel guilty if their behaviour deviates from the cultural standards of morality. In Confucian societies, the primary deterrent against immoral or illegal behaviour is shame (Yeung & Tung, 1996). According to Yeung and Tung (1996), two factors have contributed to this: (1) the absence of indigenous religions such as Judaism and Christianity, and (2) the emphasis on "face" and "face-saving." The notion of face permeates every aspect of interpersonal relationships in China (Gao et al., 1996). Face implies more than reputation. People who have lost face in Confucian societies are more than social outcasts: a loss of face brings shame not only to individuals, but also to family members. Because of this shame, the family members are unable to function in society. In Confucian societies, face is contextual; it can be given and taken away only within the broader context of social interactions. Thus, to maintain guanxi for instance, extra care must be taken in the acquisition and maintenance of face. The importance of reciprocity in the giving and receiving of face, and the instrumentality of face-concerns as a method of achieving business goals has also been recognised (Smith & Wang, 1996). 47 The Confucian influence may cause additional demands on intercultural leader-follower relationships by increasing cross-cultural differences. This would lead us to expect that higher leader-member exchange quality will be perceived by individuals in intracultural Chinese dyads than by individuals in intercultural dyads. Furthermore, as a result of Confucian influences, the factors included in the present study may have a different impact in intercultural and intracultural dyads. b) Chinese social relationships The importance of personal relationships and social networks in China has been stressed by many researchers (e.g. Goodwin & Tang, 1996). In a relation-centred world, relationships are often seen as ends in themselves rather than being means for realising various individual goals (Tsui & Farh, 1997). Gabrenya and Hwang (1996: 311) argue that “Chinese social interaction is stereotypically ‘collectivist’ (co-operative or harmonious) in certain social contexts but in others exhibits an ‘individualist’ (competitive, agonist) style”. According to Chen et al. (1998), people from individualistic societies typically distinguish the autonomous self from others, either as individuals or as groups, whereas collectivists typically draw the distinction between those they are personally related to (in-groups) and those they are not (out-groups). In Chinese societies, a clear distinction between in-group members (zijiren) and out-group members (wairen) is made (Tsui & Farh, 1997; Gabrenya & Hwang, 1996; Goodwin & Tang, 1996). According to Tsui and Farh (1997), the tendency of treating people differently depending on one’s relationship to them constitutes the basic reason why guanxi is of such importance in China. Xin and Pearce (1996) describe guanxi relationships as dyadic relationships that are based implicitly (rather than explicitly) on mutual interest and benefit. Depending on the bases of guanxi, an interpersonal relationship could fall into different categories. Many guanxi researchers have measured guanxi by looking at the existence of these guanxi bases, such as former classmate, relative, same last name, former boss/subordinate etc (e.g. Farh et al., 1998). Yeung and Tung (1996) identify five fundamental dimensions of guanxi: instrumentalism, personal relationships, trust, reciprocity, and longevity. These dimensions seem to be related to the leader-member exchange dimensions of affect, loyalty, contribution and professional respect; could LMX and guanxi be overlapping to some extent? Law, Wong, Wang and Wang (2000) argue that the strength of supervisor-subordinate guanxi is a theoretically distinct concept from leader-member exchange quality, measured with the one-dimensional LMX7 measure, as the latter is claimed to be restricted to strictly work-related exchanges whereas guanxi is more non-work related in nature. Law et al. found support for their assertion of conceptual distinctiveness in their study, where guanxi was defined more broadly as connection between two individuals and measured as the strength of guanxi ties from a behavioural perspective (i.e. by looking at the interaction between the individuals and not the existence of guanxi bases). Law et al. (2000) also showed that leader-member exchange and guanxi are highly correlated. As the multidimensional view on leader-member exchange endorsed in this study and especially the affect dimension of leader-member exchange extends the LMX concept from the pure work context, one could expect guanxi and leader-member exchange to be more closely related in this study than in studies employing the one-dimensional measure. In this 48 way, some of the factors that influence guanxi relationships could also influence leadermember exchange quality in the Chinese context. According to Yeung and Tung (1996) there are essentially four strategies for maintaining guanxi relationships: a) tendering favours, b) nurturing long-term mutual benefits, c) cultivating personal relationships, and d) cultivating trust. These strategies could be related to LMX quality. A measure of the strength of guanxi ties would have been very relevant for the present study. However, when the measures for the present study were collected, all guanxi measures available focused on the existence of guanxi bases. In the Western subsidiary context, and especially regarding the relationship between expatriates and local employees, one is not likely to find other guanxi bases than the boss/subordinate situation and this type of measurement would hence not make much sense (cf. Xin 2000, personal communication). Quite a few Chinese guanxi researchers (e.g. Farh, Tsui, Xin, and Chen 1998, Hui & Graen, 1997) seem to share the rather deterministic view of guanxi, linking it with the role obligations prescribed by wu lun. In other words, once the type of guanxi base has been defined, wu lun prescribed behaviour suitable for that particular type of guanxi relationship will follow. This could also be relevant for leader-follower relations. The wu lun, or five fundamental relationships puts people at appropriate levels: emperorsubject (individual to government, superior to follower), father-son, husband-wife, elder-younger siblings, and friend-friend. Associated with each relationship is a set of role requirements and prescriptions from which deviation is not expected from a moral person (Hui & Graen, 1997). Wu lun hence stresses the importance of an individual's place in the hierarchy of social relationships: individuals are part of a system of interdependent relationships. In each case, the lesser follower of the dyad owes the other total loyalty, obedience, and respect (Xin, 1997). However, these “unequal” interactions are not one-sided, as both sides are morally obligated to reciprocate in the appropriate form (Goodwin & Tang, 1996). This creates a network of role interdependency within Chinese societies. According to Hui and Graen (1997), cross-cultural differences regarding the relational components can produce misunderstanding and conflict, and the deterministic Confucianism supported feudal/family -based relationships can to some extent affect the organisation career-based leader-member exchange relationships. What would be interesting to know is the extent to which guanxi and wu lun guide interaction between Chinese and a non-Chinese dyadic partner. The Chinese hardly expect their Western interaction partners to behave in a Chinese way, but do they also alter their own, wu lun -prescribed behaviour when dealing with westerners? Hui and Graen (1997) more specifically address the question of how guanxi (of the deterministic, wu lun -based type) is related to leader-member exchange. They argue that the most important difference between LMX-type relationships and guanxirelationships is that the former is of a broader and “freer” nature while the latter is very particularistic and deterministic. Guanxi is network specific (those who share guanxi bases belong to the same network and are strongly bonded, have clear role obligations and “automatic levels of trust, loyalty and altruism) and does not according to Hui and Graen require personal relationships. However, it has been argued that as the individual freedom has risen, the potential for interpersonal attraction in the out-group category 49 becomes increasingly important (Tsui & Farh, 1997). This means that even when someone is characterised as a stranger, there is a possibility for friendship formation if there is a basis for common identity (e.g. demographic similarity) leading to social identification. Furthermore, Tsui and Farh (1997) suggest that modern Chinese tend to assimilate Western values, and that individual differences in cultural values may fundamentally alter the behavioural pattern of contemporary Chinese people. In addition, a study conducted by Ralston, Egri, Stewart, Terpstra, and Yu (1999) examined the recent evolution in work values among Chinese managers. The findings suggest that the New Generation manager is more individualistic although not forsaking their Confucian values. Thus, they may be viewed as crossverging their Eastern and Western influences. In sum, what is implied in these studies is that decreasing traditionality and increasing modernity should reduce the importance of deterministic guanxi ties, which will be replaced by more individual factors and mutual affect, i.e. factors that are related to leader-member exchange quality. This implies that the LMX framework would be useful in the Chinese context. Guanxi and LMX-type relationships could also be seen as parallel processes, where guanxi could set the basis for personal relationships (the existence of guanxi bases could thus be an antecedent to LMX). 2.3.3 Acculturation Acculturation is an additional factor that could have an impact on leader-follower relations in the present intercultural context. Acculturation could reduce cross-cultural differences and influence the perceptions of culturally diverse others and facilitate the expatriate adjustment process. In fact, the term acculturation is often used interchangeably with the adjustment term in the expatriation literature. However, in this study, acculturation and expatriate adjustment are not considered to signify the same thing. Redfield, Linton and Herskovits (1936, pp. 149-152; as cited in Berry, 1999, chapter 2, p. 1) define acculturation as “..those phenomena which result when groups of individuals having different cultures come into continuous first-hand contact, with subsequent changes in original cultural patterns either in one or both groups…” In the intercultural Chinese context of the present study, various forms and degrees of acculturation are likely to take place. Berry's conceptual framework of acculturation is the most widely used framework in acculturation research (Berry et al., 1992). Berry identified four modes of acculturation on the basis of how the acculturating individuals and groups respond to two central issues (Berry, 1999). The first issue is whether cultural identity and characteristics are of value and should be maintained. The second issue is whether relationships with other groups are of value and should be sought. The responses to these two central issues result in the four modes of acculturation; namely, assimilation, integration, separation and marginalisation (Berry, 1999). In assimilation, one's original cultural identity is relinquished and the individual opts to move into the larger, dominant society. In integration, on the other hand, one opts to maintain one’s cultural identity while moving to become an integral part of the larger, dominant society. In separation, as opposed to 50 assimilation, one opts to maintain one’s original cultural identity and group and withdraws from the larger, dominant society. Marginalisation is characterised by one having lost essential features of one’s culture, but not having replaced them as a result of entering the larger, dominant society. The individual in this case experiences alienation and is dysfunctional in both societies. Berry and Kim (1988) see acculturation as a process that takes place over time, or a series of phases. Starting from the precontact phase, the contact phase ensues when the groups meet and interact. Usually, the interaction that occurs leads to a conflict phase, when tensions build up and pressures are experienced, especially by the non-dominant group, to change their way of life. Continuous build up of tensions and pressures may lead to a crisis phase, in which the conflict comes to a head and a resolution is required. A successful resolution of the conflict leads to the adaptation phase, wherein group relations are clearly defined and stabilised in one form or another. Relating to the earlier four modes of acculturation discussed, this adaptation phase can take the form of either assimilation, integration or separation. However, when the conflict remains unresolved marginalisation occurs. Concerning the first issue in the present context, there are likely to be individual differences in the extent to which Western or Chinese manifestations of culture are valued (a study conducted by Ralston et al. [1999] shows that Chinese managers assimilate increasingly Western values). Regarding the second issue, interaction between the cultural groups seems unavoidable in the intercultural subsidiary context. Assimilation and integration appear to be the main possible outcomes, as it seems unlikely that a cultural group can completely withdraw from interacting with the other in the present context. In the subsidiary context, it is difficult to determine which culture is the dominant one (the home or host country culture) but it should suffice to say that both cultural groups could assimilate values from the other group. Acculturation could hence lead to diminishing cultural differences. Demographic variables, personality, education, recency of arrival, social interaction, attitudes toward the host society, attitudes toward traditional values and language skills are individual-level factors that have been linked to the process of acculturation (e.g. Swaidan, Marshall and Smith, 2001; Zakaria 2000). In the present study, many of the individuals under examination, both Western and Chinese, have been educated abroad, received cross-cultural training and worked with individuals and in countries with very different cultural backgrounds for extensive periods of time. The employees have hence most likely assimilated values from different cultures and undergone various levels of acculturation. This underlines the importance of examining values at an individual level in the present context without taking for granted that the respondents will endorse values that are typically considered to represent their respective home cultures. It could be mentioned that in addition to acculturation, the company’s selection policy could have an impact on the level of diversity in the company. Multinational companies may deliberately attempt to recruit individuals whose values and characteristics converge with those valued in the company, which could be related either to the homeor host-country environment. In this case we would be dealing with interpersonal interaction in a intracultural setting, where the new “culture” has emerged through 51 acculturation and selection. The emergence of a unique value system that that is different from any of the original cultures is in line with the claims of the crossvergence school of thought (Beals, 1953, as cited in Boon, 2001). In contrast, the convergence school of thought proposes that individuals in industrialised nations will embrace common attitudes and behaviours despite cultural differences (Kerr et al., 1964, as cited in Boon, 2001) and the divergence school (Lincoln et al., 1978, as cited in Boon, 2001) that as cultural heritage, not economic ideology, drives values, the value systems will remain different for different cultures. By testing the differences in individualism and collectivism, the level of convergence can be examined. 2.3.4 The applicability of the LMX framework in the intercultural Chinese context The aim of the examination of the intercultural Chinese context is not only to serve as an aid in hypothesis development, but also to help us make the judgement whether the leader-member exchange framework is suitable for the present context. To study leaderfollower relations in this context requires a theoretical framework that is applicable both in the West and in China. It has been asserted that valid leadership studies in Chinese cultures require measures which address dimensions of leadership which are ignored by Western measures, or which represent those dimensions in ways that have better local validity (Smith & Wang, 1996). The central thought is that although leadership per se may be a universal phenomenon, conceptions of it and the styles and practices associated with it are not (Westwood, 1997). However, others like Dorfman et al. (1997) argue that in some cases, the similarities and differences between cultures can be meaningfully integrated within contemporary theoretical frameworks and simultaneously make sense for the specific cultures under study. As mentioned earlier, the leader-member exchange framework has Western (US) origins and it has mainly been used in a Western setting. What are hence the reasons to believe that the leader-member exchange framework has universal characteristics that makes it applicable to an intercultural Chinese context? Aryee, Tan and Budhwar (2002) argue that a relational approach to leadership like leader-member exchange is particularly suited to the relationship-oriented Eastern cultures. For instance, Wakabayashi and Graen used the LMX framework in Japan (1984), Aryee, Tan and Budhwar (2002) and Bhal & Ansari, (1996) in India, and Hui, Law, and Chen (1999) in China. Furthermore, Pelled and Xin (1997) used the LMX framework in a Mexican contest. These studies indicate that the concept has some face and content validity in a non-western and Asian context. Furthermore, Lam et al. (forthcoming) used the multidimensional measure (LMX-MDM; Liden & Maslyn 1998) in China and made an attempt to modify it to better suit the Chinese context. However, they found the original dimensions to be more applicable in the Chinese context. This gives further support for a certain level of construct validity. Furthermore, the studies mentioned above have shown that leader-member exchange in a non-western context is related to the same type of factors as in the Western context (cf. Aryee et al., 2002), thus establishing predictive validity of the leader-member exchange construct. (These different types of validity will be discussed more in detail in Chapter 4, see p. 121). 52 These studies provide some support for the applicability of the LMX construct in an intercultural Chinese context. The underlying assumption in this study is hence that the leader-follower relationship has some universal characteristics, and that it is meaningful to describe leader-follower relations in terms of affect, loyalty, contribution, and professional respect in the present Chinese context. This is in line with the predominantly etic research approach of this study described in Chapter 1 (see p. 16). Using the Western LMX construct in the present context seems defendable also from an acculturation and Westernisation perspective. The organisational behaviours and expectations of the Chinese employees could be affected by Western influences, as the discussions in this chapter have indicated. This Westernisation could be happening on a national, subsidiary or individual level. On a national level, studies conducted e.g. by Tsui and Farh (1997) and Ralston et al. (1999) suggest that modern Chinese tend to assimilate Western values. On a subsidiary level, the Chinese employees are likely to have undergone a certain degree of Westernisation through the influence of Western work routines and colleagues as well as through cross-cultural training. Furthermore, multinational companies may deliberately attempt to recruit individuals whose values and characteristics converge with those valued in the company, which could lead to increased Westernisation of values within the subsidiary. The Westernisation of values could also have occurred on a more individual level and prior to entry into the company. As an example, around 20 percent of the Chinese respondents in the present study have been educated abroad, and 90 percent speak English. Although the result of joint Western and Chinese cultural influences may be closer to crossvergence than convergence (it is possible that Western expatriate managers assimilate Chinese cultural values while the Chinese employees assimilate Western values resulting in a “new” culture”), it seems to be a fair assumption that the Chinese respondents could have assimilated some Western values. As a consequence, the Western subsidiary may not provide the most suitable context for the use of indigenous Chinese measures of organisational behaviours. It follows that Western constructs, such as LMX, could be suitable for this context. In sum, taking into consideration both the previous use of the LMX construct in China and the possible assimilation of Western values by Chinese employees in Western subsidiaries in China, the LMX framework seems to be applicable in the present Chinese subsidiary context. Furthermore, it seems that applying the leader-member exchange framework to this new intercultural context could make a contribution to the expatriation literature that has suffered from lack of consideration for the local employees interacting with the expatriates. 53 2.4 SUMMARY: LEVEL OF ANALYSIS, LMX DEFINITION, AND INCLUDED VARIABLES After reviewing leader-member exchange research it can be concluded that the field has spread into many directions, which enables many interesting lines of research but also creates many potential pitfalls. The leader-member exchange framework encompasses many theoretically sound sub-components, but it does not constitute a well-defined whole that is easy for a researcher to employ. The purpose of the previous sections in this chapter was to clarify and discuss the stances taken in the present study to some of the controversies surrounding leader-member exchange theory. In this section, the previous discussions are summarised as an attempt to underline and clarify even further which aspects of the leader-member exchange approach this study draws upon. First, as should be clear by now, the leader-follower dyad is in the centre of attention in the present study. The relationship between the leader and the follower as well as the specific individuals forming the dyads is in focus. However, as Dansereau (1995), Dansereau et al. (1995) and Schriesheim et al. (1999) correctly point out, the examination of the linkage or relationship between a leader and a follower can actually occur at different levels of analysis. In the present study, the LMX phenomena under study are mainly expected to hold in dyads independent of groups. The view of the dyad is hence identical to the one in Dansereau’s individualised leadership (IL) approach. This view is different from at least some of the leader-member exchange research, where it is asserted that because of time pressure, the leader develops a close and highquality leader-member exchange relationship between only a few key followers (Graen, 1976, as cited in Dienesch and Liden, 1986) forming the so-called in-group whereas the others form the so called out-group. The stance taken in the present study is that such a division in in- and out-groups must not necessarily occur, it all depends on the individuals forming the dyads. What differentiates this study from the IL approach is the studied linkage between leader and follower and hence the focal variables. Within the IL approach, support of self worth, performance and satisfaction have been in focus whereas this study relies on the quality of the exchange relationship and the levels of affect, loyalty, contribution and professional respect between the parties. Hence, the view of each dyad as independent of other dyads is the same as in the IL approach whereas the focal variable used to examine the linkage between the leader and the follower is adopted from leader-member exchange research. As the present study examines both leader and follower perceptions and characteristics and relates them to each other, it is suggested the term individual within dyad corresponds most closely to the level of analysis in the present study. The focal variable of interest in this study is the quality of the leader-member exchange relationship, which has been conceptualised in different ways by different researchers. In the present study, leader-member exchange quality is conceptualised as a multidimensional construct in accordance with Liden and Maslyn (1998). This multidimensional conceptualisation is combined with the view of leader-member exchange quality as perceptions of the quality of the relationship that reside within the individual independently of the perceptions of the quality of the relationship of the dyadic partner. This entails that leader and follower perceptions are separate constructs 54 that do not require mutuality. However, what should be noted is that even if the perception of leader-member exchange quality resides within the individual and is not similar to the dyadic partner, it has been formed as a result of dyadic interaction and the interplay between leader and follower characteristics. This implies that leader and follower perceptions are likely to influence each other and be mutually reinforcing. The following working definitions of leader-member exchange quality have been developed for the present study Follower LMX quality is defined as the combination of: 1) the level of affection the follower has for the leader, 2) the follower’s perception of leader loyalty towards follower, 3) the follower’s perception of own work contribution toward leader, and 4) the level of follower respect for leader’s professional skills. Leader LMX quality is defined as the combination of: 1) the level of affection the leader has for the follower, 2) the leader’s perception of follower loyalty towards leader, 3) the leader’s perception of follower’s work contribution toward leader, and 4) the level of leader respect for follower’s professional skills. Leader-member exchange quality has been linked to a large number of potential antecedent and outcome variables in previous research. In line with previous LMX research, personal, interpersonal and behavioural antecedents will be included in the present study. Taking into consideration both the previous use of the LMX construct in China and the possible assimilation of Western values by Chinese employees in Western subsidiaries in China, the LMX framework seems to be applicable in the present intercultural Chinese context. Contextual considerations have together with the leader-member exchange framework described in this chapter influenced the hypothesis formulation and choice of variables to be examined in this study. The number of variables that could be examined to fulfil the research aims is significant, and they could not all be covered within a single study. When selecting the variables to be included in the study, the following criteria have been used: a) the relevance of the variables should have been proven in previous leader-member exchange research, b) the variables should be relevant in the Chinese context, and/or c) there should be indications that the variables are of importance in intercultural interactions (especially related to expatriatelocal employee interaction). All variables selected meet at least one of these criteria. The discussions in this chapter have suggested that the cultural context within Western subsidiaries in China can be characterised as intercultural. This is a result of the fact that the subsidiaries generally are influenced both by Chinese host- and Western homecountry cultures and involve interpersonal interactions between people with both Western and Chinese cultural backgrounds. Increased cross-cultural differences, the expatriate situation, intercultural competence and the acculturation process were identified as possible influences on leader-follower relations in this context. Cultural knowledge and values are examples of factors that have not been examined in extant leader-member exchange research, but that appear to be important in the present context. Cultural knowledge is a factor that seems relevant for all employees in the subsidiary, not just those employees who work in intercultural dyads. This is due to the general intercultural character of the subsidiary. Examining values seems especially 55 important in the present context, not only because of the potential direct impact of certain values on leader-follower relationships, but also due to the expected crosscultural differences in values. What distinguishes intercultural dyads from intracultural dyads seems to be mainly increased differences, both actual and perceived. The leader and follower personal characteristics that have been chosen for the present study based on theoretical and contextual considerations include personality, values, cultural knowledge and demographics. It should be noted that some of the studied characteristics are dispositional or rather stable (such as personality) some acquired (such as cultural knowledge). Some of these personal characteristics exert direct influence on leader-member exchange quality. Neuroticism, for instance, could have a direct negative effect on leader-member exchange quality no matter what characteristics the dyadic partner possesses. Other personal characteristics, as for instance age, may not exert strong direct influence on leader-member exchange quality but could become important in terms of the level of similarity with dyadic partner as well as in terms of perceptions of similarity. In this case, the interplay between characteristics is relevant. These types of factors are referred to as interpersonal characteristics. Interpersonal characteristics that will be examined in the present study include personality, value, and demographic differences as well as perceived similarity. In addition, leader and follower behaviours will be included in the study. These are follower performance and fair treatment provided by leader (i.e. interactional justice). Organisational citizenship behaviour constitutes the main outcome of leader-member exchange that will be examined in the present study. The control variables included in the analyses will be presented in the following chapters including the mediators and moderators of the relationship between leader-member exchange and organisational citizenship behaviour. 56 3 PERSONAL, INTERPERSONAL AND BEHAVIOURAL ANTECEDENTS OF LMX The antecedents of leader and follower leader-member exchange quality that have been chosen for the present study based on theoretical and contextual considerations have been categorised as personal, interpersonal and behavioural antecedents (see p. 31). The leader and follower personal characteristics that will be examined include personality, values, and cultural knowledge. Interpersonal characteristics that will be examined include differences in personality, values, and demographics as well as perceived similarity. In addition, leader and follower behaviours will be examined. These are follower performance and fair treatment provided by the leader (i.e. interactional justice). Hypotheses linking these antecedents to leader-member exchange quality are presented in this chapter. First, personal antecedents will be discussed including personality (section 3.1), values (section 3.2), and cultural knowledge (section 3.3). Then, the interactional variables, namely actual and perceived similarity are presented (section 3.4). Thereafter, hypotheses regarding the behavioural antecedents will be developed beginning with interactional justice (section 3.5) and continuing with follower inrole performance (section 3.6). Then, the control variables are presented (section 3.7). Finally, the chapter is summarised by listing all the hypotheses developed (section 3.8) and by providing an overview of the hypotheses in figure format. As leader LMX and follower LMX are conceptualised as separate multidimensional constructs, dimension-specific hypotheses are developed for leader and follower leadermember exchange separately. The hypotheses concerning leader and follower leadermember exchange are very similar but not completely identical due to the different roles the leaders and followers occupy in the dyad. The literature review indicates that all the hypotheses should be relevant both in intercultural and Chinese dyads. However, it is expected that the relative importance of different factors will differ according to dyad type. It should be noted that a positive influence on any of the LMX dimensions is expected to have a positive effect on overall leader-member exchange quality although this is not specifically mentioned in the hypotheses. 3.1 PERSONALITY AND LMX Previous studies have shown that personality affects workplace behaviours (e.g. Caldwell & Burger, 1998) and leader-member exchange (e.g. Phillips & Bedeian, 1994; Bauer & Green, 1996). Personality factors are hence also expected to influence the quality of intercultural leader-follower relationships involving expatriates and local employees. Personality traits have been examined as determinants of leader-member exchange in only few studies. These traits include follower introversion/extroversion (Phillips & Bedeian, 1994), leader and follower negative/positive affectivity (Bauer & Green, 1996), follower growth need strength (Phillips & Bedeian, 1994), and follower locus of control (Kinicki & Vecchio, 1994). Although the argument that personality 57 affects leader-member exchange seems logical and strong support has been found for the relationship between extroversion and negative affectivity and leader-member exchange, one could, however, question why these particular personality traits have been examined and whether there are other personality traits that are more relevant to leader-member exchange in an intercultural Chinese context. To deal with the question expressed above, a more comprehensive view of different personality traits is required as well as an understanding of the personality traits required to ensure successful expatriate-local employee interactions. Before discussing personality more in detail, a few words about the definition of personality should be said. According to Jackson (1993), there is no universally accepted definition of personality. This study endorses the trait psychological view of personality where a distinction between personality traits and their overt manifestation is made. Traits are “dimensions of individual differences in tendencies to show consistent patterns of thoughts, feelings, and actions” (McCrae & Costa, 1990, p. 23). Traits show some degree of consistency across situations and considerable stability over time. Personality traits are in this study considered to be endogenous dispositions expressed in culturally determined forms (this is different from the view that personality is the outcome of a life-long process of interaction between organism and environment). In other words, there are personality traits and factors that reflect some basic tendencies of all humans, which together with the external influence of culture affect behaviour. Personality is hence not the product of culture (culture and personality co-determine characteristic adaptations and behaviours). This transcultural view on culture is consistent with the views expressed in evolutionary personality psychology that there are biologically based universals in human nature (cf. MacDonald, 1998). The variety of individual personality differences is almost endless, but the most important differences can be encoded into specific categories (cf. e.g. Antonioni, 1998). A five-factor model (“the Big Five”; Goldberg, 1990, also called the FFM) has emerged to convincingly organise a multitude of Western personality traits (McCrae & Costa, 1987; McCrae & John, 1992; Goldberg, 1990) and the Chinese Personality Assessment Inventory (CPAI; Cheung et al., 1996) has been used to measure Chinese personality. Both the five-factor model of personality and CPAI models of personality will be discussed in this section before arguing for the importance of specific personality traits in predicting leader-member exchange. 3.1.1 A Western model of personality: the five-factor model The proponents of the five-factor model of personality argue that virtually all personality measures can be reduced or categorised under the umbrella of this model (e.g. Digman, 1990). The five-factor model of personality represents a taxonomic scheme for describing at a global level the basic dimensions of normal personality (Schaub & Tokar, 1999). The traits of the five-factor model of personality are typically labelled as follows (Neuman et al., 1999): a) extroversion (e.g., social, talkative, assertive, active versus retiring, sober, reserved, cautious), b) agreeableness (e.g., goodnatured, gentle, co-operative, hopeful versus irritable, suspicious, uncooperative, 58 inflexible), c) conscientiousness (e.g., self-disciplined, responsible, organised, scrupulous versus lacking self-discipline, irresponsible, disorganised, unscrupulous), d) neuroticism (also called emotional stability, e.g., calm, enthusiastic, poised, secure versus anxious, depressed, emotional, insecure), and e) openness to experience (e.g., imaginative, sensitive, intellectual, curious versus down-to-earth, insensitive, simple, narrow). These five major trait dimensions have been postulated to encompass individual differences in enduring motivational, attitudinal, emotional, and interpersonal styles (Schaub & Tokar, 1999). The dimensionality of the five-factor model of personality has been found to generalise across cultures and to remain relatively stable over time (Judge, Higgins, Thoresen, & Barrick., 1999). Furthermore, the relationship between the five-factor model of personality traits and job performance at the individual level has been supported in two meta-analyses (Barrick & Mount, 1991; Tett, Jackson, & Rothstein, 1991). It should also be noted that in general, no important differences in mean scores on the five-factor model of personality between young and old adults or males or females have been found (Moberg, 1999). Of course, there are also those who criticise the five-factor model of personality (e.g. Block, 1995; Eysenck, 1993; McAdams, 1992; the last two as cited in Moberg, 1999). The critics include the concerns that the five-factor model of personality is too simple to summarise what is known about individual differences in personality, that there may be more factors buried in the residual of the factor solutions, and that there are too many factors (Moberg, 1999). However, none of the alternative models have shown the robustness of the five-factor model of personality (Moberg, 1999). The five-factor model of personality has also been criticised for being atheoretical by incorporating almost no personality theory (Block, 1995). Rather, it is based on words used by nonprofessionals in judging themselves (through questionnaires) and others (through ratings). According to this critique, there is thus the possibility that the five-factor model of personality is nothing more than a reflection of ordinary people’s cognitive biases. The proponents of the five-factor model of personality counter that the model is similar to existing models of personality derived in other ways even though it has never purported to explain the origins or development of personality (Goldberg & Saucier, 1995; as cited in Moberg, 1999). They also underline the impressive evidence about the model’s validity and explanatory power when other languages are used (Moberg, 1999). The five-factor model of personality has also been criticised for considering character and not the environment as the most important behavioural determinant (Moberg, 1999). Healthy controversy thus surrounds the five-factor model of personality model. The advantage of the use of the five-factor model of personality model is that it so widely used in psychology that both its strengths and weaknesses are well reported. As the present study examines the personalities of both Western expatriates and Chinese leaders and followers, a few words about the applicability of the five-factor model of personality in China should be said. Proponents of the five-factor model of personality have elevated the model to the level of universality as the five-factor structure has been recaptured through analyses of trait adjectives in various languages, factor analytic studies of existing personality inventories, and decisions regarding the dimensionality of existing measures made by expert judges (cf. McCrae, Costa, del Pilar, Rolland & Parker, 1998). According to Moberg (1999), the five-factor model of personality has been demonstrated among German, Hungarian, Japanese, Chinese, and Dutch samples 59 in their original languages. This supports the view that the traits in the five-factor model of personality exist in an array of different cultures and that the five-factor model of personality model could have some universal qualities. Evolutionary psychologists (e.g. MacDonald, 1998) also argue for the universality of the five-factor model of personality claiming that the universality of the mechanisms underlying personality psychology reflects a fundamental similarity of human interests related to negotiating status hierarchies, affiliating with others, preserving in long-term goals etc. However, in the study conducted by De Raad et al. (1998), where indigenous Dutch, German, Hungarian, Italian, Czech, and Polish trait taxonomies were compared to the American English five-factor model of personality taxonomy, none of the factors in any of the six languages shows identity, in a strict sense, to the American English factors. This raises the important question concerning the degree of congruence, which is necessary for claims of universality to be made. As the five-factor model of personality has been applied in China and modified to better suit the Chinese context, one could claim that initial steps have been taken in order to develop a derived etic and detect underlying universals (results concerning the applicability of the five-factor model in China will be discussed more in detail in Chapter 4, see p. 157). However, the fact that the five-factor model of personality can be replicated in China to some extent does not necessarily mean that it provides the most natural or useful way to describe personality in Chinese populations or that the five factors are fully comprehensive. There might be additional factors in Chinese personality not found in the West that are more important, as e.g. the study conducted by Cheung, Leung, Zhang, Sun, Gan, Song, Xie, and Dong (2001) indicates. In other words, indigenous Chinese personality inventories should also be considered. The purpose of developing indigenous instruments is according to Cheung and Leung (1998) not confined to the provision of useful tools for local practitioners, but they provide a means to examine the broader theoretical question of the universality and relevance of current Western personality theories. Indigenous Chinese personality measures will be discussed in the next sub-section, including the way in which they relate to the Western five-factor model of personality. Furthermore, it should be remembered that personality traits might have a different significance in different cultural context. The five-factor model of personality hence does not preclude some cultural diversity in personality. 3.1.2 Chinese perspectives on personality: the CPAI In most Western conceptions of personality, the person is seen as independent, and the person is assumed to enter into social relationships on the basis of need and by mutual consent with other individuals. In contrast, Markus and Kitayama (1998) argue that in many Asian cultures, personality is constructed on the basis of the interdependent person, who cannot be separated from others and the surrounding context. This means that personality is experienced as behaviour that is characteristic of a person in relationship with others in particular social contexts. According to Markus and Kitayama (1998), personalities in Asian cultural contexts may include both aspects of social roles and those of personalities as traditionally and typically conceived in the European American social sciences literature. According to these authors, anecdotal 60 reports from Japan, China, and Korea note that individual differences are of concern but that fewer American-style, dispositional attributes (e.g. friendly, optimistic, lively) are used in everyday discourse about people. People who are desired for jobs, friends, and marriage are those who have attributes that reflect and are a result of a history of good relationships, of meeting obligations and of fitting one’s self to appropriate expectations and roles. Sinha and Sinha (1997) are on similar lines in their comparison of Western and Asian psychologies by claiming that the Western psychology mainly is concerned with the personality growth of the individual whereas Asian psychology is concerned with man’s harmony with his fellow man, society, nature and the cosmos (Ho, 1998). The Chinese personality structure could hence be very different from the Western fivefactor model of personality. More recently, indigenous Chinese personality measures have been developed using a combined emic-etic approach. Here culturally relevant items are generated to assess dimensions of emic concepts for individual cultures. These emic dimensions are then examined across cultures by juxtaposing the factor structures of the combined item pool from the individual cultures. The Chinese Personality Assessment Inventory (CPAI; Cheung et al., 1996) discussed below has been developed using this emic-etic approach. According to Cheung and Leung (1998), only three large-scale indigenous personality inventories have to date been developed for the Chinese people, although scales on single personality dimensions or specific aspects of values are also available. The largescale Chinese personality inventories include Ko’s Mental Health Questionnaire (KMHQ; Ko, 1977, 1981; as cited in Cheung & Leung, 1998), the Multi-Trait Personality Inventory (MTPI; Cheung et al., 1992; as cited in Cheung & Leung, 1998), and the Chinese Personality Assessment Inventory (CPAI; Cheung et al., 1996). The KMHQ has only been applied in Taiwan and reported in Chinese publications. The application of the MTPI has been limited to the original study with little having been published since then. The CPAI seems to provide a convincing basis for Chinese personality assessment and it has been more widely used than the other personlaity inventories. Furthermore, the CPAI has been compared to the NEO-PI measure of the five-factor model of personality. It hence seems defendable to use the CPAI in the present study. The CPAI is a multiphasic personality inventory that covers personality characteristics for normal as well as diagnostic assessment (the diagnostic personality characteristics are not relevant for the present study and will not be discussed here). The purpose of this personality inventory is to provide a reliable and valid assessment instrument relevant specifically to the Chinese people (Cheung et al., 1996). A combined emic-etic approach was adopted to include scales of particular interest to the Chinese culture as well as scales believed to be universal across cultures. According to Cheung and Leung (1998), the personality constructs included in the CPAI were derived from traditional and contemporary Chinese literature, person descriptions by Chinese people from different sectors, and recent personality research on the Chinese people. These constructs were combined according to similarity in meaning. A panel of psychologists from Hong Kong and the PRC developed scales. In addition to etic constructs, scales that are supposed to be of specific interest to the Chinese people but which cannot be found in translated personality inventories include harmony, ren qin (relationship orientation), modernisation, thrift-extravagance, Ah-Q-mentality (defensiveness), 61 graciousness-meanness, veracious-slickness, face-family orientation and somatisation. For the personality scales, four principal factors emerged as a result of a factor analysis: dependability, Chinese tradition (later renamed Interpersonal relatedness), social potency, and individualism. The Interpersonal relatedness factor was characterised mainly by the culture-related scales developed for the CPAI, and it shows that emic scales form an important component of the personality structure of the Chinese people. This factor has not according to Cheung and Leung (1998) been identified in other personality inventories and it was initially labelled Chinese tradition because it depicts the traditional values of harmony and frugality, and the emphasis is on implicit rules of the Interpersonal relatedness factor has according to Cheung and Leung (1998) been confirmed in a number of follow-up studies (these results will be discussed more in detail in Chapter 5, see p.158). Cheung and Leung (1998) raise the question as to whether the Interpersonal relatedness factor is unique to the Chinese culture or whether it is also a universal domain useful in understanding key interpersonal aspects of personality that have been left out of Western personality inventories. The authors argue that this blind spot may be the result of the introspective and intrapersonal orientation of Western psychology and they suggest that the strong emphasis on interpersonal relationships in China could provide an input to the interpersonal dimension of personality. The Interpersonal relatedness factor could hence be important in understanding not only Chinese leader-member exchange relationships but also Western leader-member exchange relationships. According to Cheung and Leung, an English version of the CPAI has been developed and will be tested with overseas Chinese and Americans to see whether the Interpersonal relatedness factor is relevant to understanding both Chinese in a nonChinese cultural context and non-Chinese in an American cultural context (Preliminary tests on a Hawaiian sample have been run, Cheung: personal communication 3.11.2000). To sum up the discussion about personality and leader-member exchange, this study agrees with the view that the differing Asian and Western perspectives on personality and psychology constitute alternative and complementary approaches, which both are useful (cf. Sinha & Sinha, 1997). There are cases in which Asian and Western views seem to correspond to each other (but similarities between points of view might be difficult to detect due to differing names of concepts) and cases in which they could complement each other. In other words, some of the personality factors seem to have universal qualities whereas others are more emic and culture specific. Extroversion, neuroticism, conscientiousness and agreeableness appear to be personality traits with some universal qualities whereas openness to experience and Interpersonal relatedness have a more culture-specific meaning. Personality measurement will in this study hence be based on the five-factor model of personality model due to its wide use. However, in order to complement the five-factor model of personality framework, the Interpersonal relatedness factor of the CPAI will be included as it seems to be a very important influence on Chinese social relationships. 62 3.1.3 Linking specific personality traits to LMX In this section, an attempt is made to discuss and theoretically argue for how specific personality traits could affect the quality of the leader-member exchange relationship measured from both leader and follower perspectives. Formulating LMX dimensionspecific hypotheses has been difficult as very few studies have examined the influence of personality traits on leader-member exchange and no studies have related personality traits directly to the different leader-member exchange dimensions. However, the discussions in this section will suggest how specific personality traits could be linked to the specific leader-member exchange dimensions. A further constraint in the development of hypotheses is that no studies applying the five-factor model of personality framework to an intercultural context have been found and the personality traits identified in the expatriate adjustment and intercultural competence literatures have not been well defined (there appears to be little distinction between skills, behaviours and personality traits [cf. Newman & Rowland, 1991]). a) Extroversion Extroversion is a prominent factor in personality psychology, as evidenced by its appearance in most personality measures and its important role in major taxonomies of personality (Judge et al., 1999). Extroversion is typically considered to consist of sociability, but is a broad construct that also includes other factors. The reason for using the extroversion dimension as an indicator of social interaction skills (Caldwell & Burger, 1998) is that highly extroverted individuals have been found to be likely to talk more, to be more expressive and generally provide more information about themselves through verbal and non-verbal sources than highly introverted people. Caldwell and Burger (1998) argue that extroversion is the most accessible of the five-factor model of personality dimensions to the observer, and that that it can be rather easily assessed during rather short-term social interactions such as job interviews. Due to the “visible” nature of extroversion, one could expect it to be of rather high importance in nonintense leader-member exchange relationships, where the interaction between leader and follower is not very frequent: there my not be sufficient interaction for the other personality traits to surface. However, extroversion is likely to be of importance in more intensive leader-member exchange relationships as well due to the fact that extroverts have the social skills and desire to work with others (Antonioni, 1998). In addition to being sociable and seeking interaction with others (McManus & Kelly, 1999), research on the introversion/extroversion dimension indicates that extroverts also seek novel experiences and complex, varied, and intense stimuli, whereas introverts tend to prefer their own company or that of habitual companions, follow predictable paths, and avoiding excessive sensory input (Phillips & Bedeian, 1994). Furthermore, extroverts have been described as being more active and impulsive, less dysphoric, and less introspective and self-preoccupied than introverts are (Watson & Clark, 1992; as cited in Judge et al., 1999). Thus, extroverts tend to be socially oriented (outgoing and gregarious) but also surgent (dominant and ambitious) and active (adventuresome and assertive). A study conducted by McCrae and Costa (1986, as cited in Moberg, 1999) also showed that extroverts handle stressful events more adaptively than introverts and they tend to experience more subjective well-being than introverts (McCrae & Costa, 1991; as cited in Moberg, 1999). Previous research has also found that extroverts are 63 more likely than introverts to take on leadership roles and to have a greater number of close friends (Watson & Clark, 1992; as cited in Judge et al., 1999) and that they prefer a collaborative style of managing conflict (Mills et al., 1985; as cited in Antonioni, 1998). The study conducted by Phillips and Bedeian (1994) showed that follower extroversion is positively related to overall leader-member exchange quality. The authors give the following explanations for this. First, follower extroversion may make followers’ relevant talents and motivations obvious to leaders. Second, high-quality leader-member exchange relationships tend to be more frequent in interactions and extroverted members may attempt a high level of interaction with their leaders. Third, extroverted individuals’ desire for novel experiences may make them more likely to negotiate with leaders for increased responsibility, which is characteristic for members in high-quality leader-member exchange relationships. Extroversion could also be important as a leader characteristic as it is often the leader who is expected to take the initial step in leadermember exchange development (Bauer & Green, 1996). Extroversion could hence be linked to the contribution and professional respect dimensions of leader-member exchange. Assertiveness, meaning that individuals stand up for their needs, has been linked to extroversion and could also affect leader-member exchange quality. If assertiveness is combined with a respect for the needs of others, it could have a positive effect on leader-member exchange quality, as the partners then know where they stand with each other. This provides a linkage to loyalty dimension of leader-member exchange. Furthermore, Zhang (1997) found that the extroversion factor had significant effects on the general trust trait across all situations of trusting behaviours in a Chinese setting. This further supports the linkage between extroversion and the loyalty dimension of leader-member exchange, as trust and loyalty where found to be treated interchangeably by the respondents in Liden’s and Maslyn’s study (1998). Furthermore, extroversion has been linked to positive affect and the two terms are sometimes even used interchangeably (see e.g. Duffy, Ganster & Shaw, 1998). Watson and Clark (1992, as cited in Judge et al., 1999) note that extroversion is closely linked to positive affectivity, which in turn expresses itself in positive moods, greater social activity, and more rewarding interpersonal experiences (Judge et al., 1999). This provides a clear linkage to the affect dimension of leader-member exchange measured both from own and dyadic partner’s perspectives. Furthermore, one could hypothesise that extroversion is linked to a variety of other job attitudes. The extroversion factor hence meets the criterion of having being established as a determinant of leader-member exchange in previous studies and there are some indications from the literature that extroversion could be linked to all the dimensions of leader-member exchange measured from both a leader and follower perspective. In light of this discussion, it is hypothesised that: 64 Follower LMX hypothesis 1: follower extroversion will be positively related to all dimensions of follower LMX Follower LMX hypothesis 2: leader extroversion will be positively related to all dimensions of follower LMX Leader LMX hypothesis 1: leader extroversion will be positively related all dimensions of leader LMX Leader LMX hypothesis 2: follower extroversion will be positively related to all dimensions of leader LMX The expatriation literature also speaks for the inclusion of the extroversion factor. First, it seems to be the factor most closely related to the others-oriented adjustment dimension in the Mendenhall and Oddou (1985) framework, which encompasses attributes that enhance the expatriate’s ability to interact and communicate effectively with host nationals. Second, extroversion could also be related to the self-oriented adjustment dimension (Mendenhall & Oddou, 1985), which includes the ability to deal with stress, which in turn has been linked to extroversion (McCrae & Costa, 1991; as cited in Moberg, 1999). Extroversion could contribute to intercultural competence and especially to the set of qualities Kealey (1996) calls cross-cultural skills. This is because extroverts tend to seek novel experiences and complex and varied stimuli, which could be related to tolerance and acceptance of diversity and novelty, which Kealey identifies as being qualities associated with cross-cultural skills. Involvement and interest in the new culture, which also is a part of cross-cultural skills, could be related to the active and adventuresome nature of the extrovert. Extroversion could also be related to the set of qualities Kealey refers to as adaptation skills, encompassing such qualities as positive attitude and stress tolerance as extroversion has also been related to stress tolerance and the experience of subjective well-being. Furthermore, the relevance of extroversion has been demonstrated in China (e.g. Zhang, 1997). b) Neuroticism The neuroticism dimension of the five-factor model of personality is often also labelled “emotional stability” (e.g. Judge et al., 1999). Costa and McCrae (1992) break neuroticism into six facets: anxiety, hostility, depression, self-consciousness, vulnerability and impulsiveness. According to Costa and McCrae (1988, as cited in Judge et al., 1999) neuroticism is the most pervasive trait across personality measures as it is prominent in nearly every measure of personality. Neuroticism refers generally to a lack of positive psychological adjustment and emotional stability, and is related to how individuals tend to deal with anxiety (instability and stress proneness) and addresses their well-being (personal insecurity and depression) (Judge et al. 1999). According to McManus and Kelly (1999) emotionally stable individuals should have an easier time with the amount of rejection commonly experienced at workplaces. Previous research has indicated that emotionally unstable (or neurotic) individuals experience chronic negative emotions (Judge et al., 1999), low esteem, poor control of impulses, and ineffective coping. Judge and Locke, 1993; as cited in Judge et al., 1999) found that 65 neurotic employees were also more likely to experience dysfunctional job-related thought processes (over-generalisation, perfectionism, dependence on others) and hence lower job satisfaction. People experiencing frequent negative emotions at work have also been found to act in ways that estrange them from their co-workers (Brief et al., as cited in Judge et al.,1999). As suggested by Antonioni (1998), low neuroticism should help create relaxed interaction, thus promoting the capability to work together to handle interpersonal conflicts. This discussion indicates the neuroticism could have an effect especially on the affect and loyalty dimensions of LMX as well as on professional respect, both regarding how one perceives others and how one is perceived by others. Negative affectivity is according to Judge et al. (1999) commonly seen as a facet of neuroticism. Duffy et al. (1998) go even further and equal negative affect with neuroticism. A person who scores high on negative affectivity can be described as experiencing, compared to a person who scores low on this dimension, greater distress, discomfort and dissatisfaction over time and in different situations (Watson & Clark, as cited in Skarlicki, Folger & Tesluk, 1999). People with high negative affectivity also tend focus on negative elements in their lives and to dwell on their mistakes and shortcomings (Skarlicki et al., 1999). Negative affectivity has been found to increase a person’s susceptibility or responsiveness to stimuli that generate negative emotions as well as sensitivity to fairness issues (Skarlicki et al., 1999). Individuals high on negative affectivity have also been found to be less inclined to seek direct control of their work environments (Judge, 1993, as cited in Skarlicki et al., 1999). Hui et al. (1999) argue that if a person tends to view life negatively, this person may be less likely to build effective work relationships (high-quality leader-member exchange relationships) with others. Leaders may also have a less favourable view of employees with high negative affectivity due to their overall negative orientation and outlook (Skarlicki et al., 1999). According to Organ and Konovsky (1989) available research indicates that negative affectivity is a dispositional variable to a larger extent than positive affectivity, which is more determined by situational factors. If neuroticism indeed captures the negative affect dimension, it could be related to all types of job attitudes and all the leadermember exchange dimensions measured from the person’s own perspective, with the exception of follower contribution (as neuroticism may not be as likely to affect a follower’s perceptions of his or her own contribution negatively) both regarding how one perceives others and how one is perceived by others. This further supports the hypotheses that: Follower LMX hypothesis 3: follower neuroticism will be negatively related to the affect, loyalty, and professional respect dimensions of follower LMX Follower LMX hypothesis 4: leader neuroticism will be negatively related to all dimensions of follower LMX Leader LMX hypothesis 3: leader neuroticism will be negatively related to all dimensions of leader LMX Leader LMX hypothesis 4: follower neuroticism will be negatively related to all dimensions of leader LMX 66 The expatriation literature also speaks for the importance of the neuroticism factor. Neuroticism seems to correspond to Selmer’s (2002) description of psychological adjustment, which refers to the expatriate’s subjective well-being and mood states. This is very much alike the self-oriented adjustment dimension in the Mendenhall and Oddou (1985) framework encompassing attributes that strengthen the expatriate’s selfconfidence, self-esteem, and ability to deal with stress. Psychological adjustment, in turn, corresponds almost directly to the description of the set of qualities related to intercultural competence called adaptation skills (including positive attitude toward the experience, flexibility and ability to compromise, stress tolerance, patience, emotional maturity, inner security and acceptance of oneself. The tolerance for ambiguity, which Larsen and Gertsen (1993?) found to be an important component of intercultural competence, also appears to be related to neuroticism. c) Agreeableness A person who scores high on agreeableness can be characterised as highly co-operative (Caldwell & Burger, 1998), likeable (Judge et al., 1999), sociable, and emphatic to others, whereas a person low on this dimension can be labelled antagonistic, temperamental, argumentative and emotional (Skarlicki et al., 1999) as well as rude, insincere and unsympathetic (Antonioni, 1998). Agreeableness also reflects an individual’s disposition to avoid arguments and motivation to actively advocate their positions on controversial issues and attack another person’s position (Skarlicki et al., 1999). Highly agreeable people are also less likely to demonstrate high emotion and might be harder to soothe than less agreeable people when distressed (Skarlicki et al., 1999). It has been suggested that agreeableness may originate in emotional responsiveness to others’ needs (Graziano & Eisenberg, 1997; as cited in Moskowitz & Coté, 1995) and be related to the tendency toward altruism (Wiggins, 1980; as cited in Moskowitz & Coté, 1995). Recent studies have shown that individuals who score high on agreeableness might find it easier to build trusting relationships with others (McManus & Kelly, 1999) and tend to prefer negotiation to power assertion (Antonioni, 1998). A positive correlation between agreeableness and problem solving has also been found (Antonioni, 1998). Furthermore, agreeableness has been associated with both positive affect and more inclusive measures of life satisfaction (McCrae & Costa, 1991; as cited in Moberg, 1999). The empathic nature of agreeable individuals and their responsiveness to others’ needs in combination with the ability of building trusting relationships are qualities, which could very well be positively related to leader-member exchange quality, and especially to the dyadic partner’s perceptions of affect, loyalty and contribution. However, no studies examining agreeableness as a determinant of leader-member exchange have been found. The fact that extremely agreeable individuals might sacrifice their success in pleasing others and that they might have difficulties in standing up for their own interest in conflict situations (Judge et al., 1999) could in my opinion also influence leader-member exchange. Agreeable persons may not experience higher leader-member exchange relationships themselves but the dyadic partner may have a more positive perception of the relationship with an agreeable person than with a less agreeable person. 67 Follower LMX hypothesis 5: leader agreeableness will be positively related to the affect, loyalty and contribution dimensions of follower LMX Leader LMX hypothesis 5: follower agreeableness will be positively related to the affect, loyalty and contribution dimensions of leader LMX Agreeableness could be important in collectivist societies such as China, where facesaving is important, and this factor could hence be more important to the Chinese respondents than to the Western respondents. Zhang (1997) found that the agreeableness factor from the NEO-FFF measure of the five-factor model of personality had (in addition to the extroversion factor and the Interpersonal relatedness factor of the CPAI) significant effects on the general trust trait across all situations of trusting behaviours, which provides a linkage to the loyalty dimension of leader-member exchange. It should, however, be noted that power distance in China is traditionally rather high (e.g. Hofstede & Bond, 1988), which means that leaders might not be expected to be as agreeable as the followers are. The expatriation literature also speaks for the inclusion of the agreeableness factor to the research model, mainly as it has been found to be related to empathy. Larsen and Gertsen (1993) consider empathy to be an important personality trait related to intercultural competence and it seems closely related to what Mendenhall and Oddou (1985) call “desire to understand and relate to host nationals”, which should enhance the expatriate’s ability to interact and communicate effectively with host nationals including local followers. Many of the attributes associated with agreeableness are also the same as Arthur and Bennett (1995) identify as attributes related to relational skills (respect, courtesy and tact, display of respect, kindness, sincerity, empathy, nonjudgementalness, integrity, patience, tolerance, confidence, and ethnic tolerance, the six first attributes being most closely related to agreeableness). Agreeableness could also be a part of what Kealey (1996) calls partnership skills, as this dimension of intercultural competence includes such qualities as empathy, respect and building relationships. d) Conscientiousness Conscientiousness has emerged as the five-factor model of personality dimension most consistently related to performance across jobs (e.g. Barrick & Mount, 1991). Conscientiousness is manifested in three related facets (Judge et al., 1999): achievement orientation (hardworking and persistent), dependability (responsible and careful), and orderliness (planful and organised) and is hence related to an individual’s degree of selfcontrol and need for achievement, order and persistence. It has also been suggested that people who are on the high end of the conscientiousness dimension are likely to engage in extensive amount of information gathering (Caldwell & Burger, 1998). Conscientious individuals are also likely to have the self-discipline required to work independently and plan and use one’s time effectively (McManus & Kelly, 1999). The importance of conscientiousness in work situations has also been shown in previous empirical studies linking conscientiousness to counterproductive work behaviours, effective job-seeking behaviour, retention, and attendance at work in addition to its link to performance (Judge et al., 1999). Furthermore, there are indications that conscientious people tend to 68 regulate themselves in instances of frustration (McCrae & Costa, 1991; as cited in Moberg, 1999). The achievement orientation of those individuals scoring high on conscientiousness indicates that this factor could be related to the ‘growth need strength’ factor examined in previous leader-member exchange research. Growth need strength is a personal attribute that concerns a person’s desire to grow and develop as an individual, but strong support for the relationship between this personality trait and leader-member exchange was not found by e.g. Phillips and Bedeian (1994). The conscientiousness dimension appears to be highly task-related, and hence most relevant to the professional respect and contribution dimensions of leader-member exchange, both when it comes to the leader’s perceptions of follower contribution and the follower’s perceptions of own contribution. Furthermore, the fact that conscientious individuals by their nature may do a good job of preparing for mutual problem solving as well as mutually searching for solutions that satisfy both parties (Antonioni, 1998), indicates that conscinetiouness could be related to the loyalty dimension of leadermember exchange quality (regarding the dyadic partner’s perceptions). This discussion supports the following hypotheses: Follower LMX hypothesis 6: follower conscientiousness will be positively related to the contribution dimension of follower LMX Follower LMX hypothesis 7: leader conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of follower LMX Leader LMX hypothesis 6: leader conscientiousness will be positively related to the contribution and professional respect dimensions of leader LMX Leader LMX hypothesis 7: follower conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of leader LMX If conscientious individuals indeed are patient, this could have a positive effect on intercultural leader-member exchange as patience is a quality identified by Arthur and Bennett (1995) as being an attribute related to relational abilities. The propensity to engage in extensive information gathering could also affect the intercultural leadermember exchange relationship if the dyadic partners have collected information about their dyadic partner’s culture and likely behaviour. The cultural knowledge dimension is also recognised by Larsen and Gertsen (1993) as a dimension of intercultural competence. e) Openness to experience Openness to experience is characterised by intellectance (philosophical and intellectual) and unconventionality (imaginative, autonomous, and non-conforming (Judge et al., 1999). Individuals high on this dimension can also be described as reflective, creative and comfortable with theory (Antonioni, 1998) and they are characterised by intellectual curiosity (Caldwell & Burger, 1998) whereas those low on this dimension demonstrate a 69 preference for routine (Caldwell & Burger, 1998) and can be described as conservative in opinions, set in ways, and practical (Antonioni, 1998). Openness to experience has not, to my knowledge, been examined as an antecedent to leader-member exchange, but it could be positively related to leader-member exchange quality, as this personality trait describes individuals who are likely to be interested in hearing other people’s points of view and engage in divergent thinking to get at the issues and interests of both parties (Antonioni, 1998). However, the openness to experience factor does not seem to be one of the personality traits most important to leader-member exchange in an intercultural context and will hence not be examined in this study. Furthermore the openness to experience factor has not demonstrated as high universal characters as the other factors (cf. Cheung & Leung, 1998). (It could be mentioned that data on this factor was gathered as it was suggested that the complete five-factor model of personality measure always should be used, but that this measure demonstrated very low reliability with α= .32 in this sample. Furthermore, no correlation between leader-member exchange and this unsatisfactory measure was found). f) Chinese Interpersonal relatedness The Interpersonal relatedness factor is characterised by positive loadings on harmony, ren qin and thrift, and negative loadings on flexibility and modernisation (Cheung et al., 1996). Harmony measures one’s inner peace of mind, contentment, as well as interpersonal harmony and is also related to conflict avoidance. Ren qin, or relationship orientation has been described by Hwang (1983, 1987, as cited in Cheung et al., 1996) as social favours that are exchanged in the form of money, goods, information, status, service, and affection according to an implicit set of rules. These rules are dependent upon the category of social ties between the individuals involved in the interaction. The ren qin scale measures the individual’s adherence to cultural norms of interaction based on various standards of social exchange. The forms of interaction involve courteous rituals, exchange of resources, reciprocity, maintaining and utilising useful ties as well as nepotism. The bipolar thrift-extravagance scale covers the tendency to save rather than to waste, carefulness in spending and the willingness to spend money for pleasure and entertainment. Thrift is a virtue in the traditional Chinese agricultural society and according to PRC psychologist an important indicator of social adjustment. The flexibility scale is not described by Cheung et al., which indicates that it is a concept adopted from Western personality measures. The modernisation scale covers attitudes toward traditional Chinese beliefs and values in the areas of family relationship, materialism, hierarchical order, rituals, and chastity. (Cheung et al., 1996) The Interpersonal relatedness factor seems to be very broad as some of the scales seem to measure something that appears to be close to the five-factor model of personality traits (harmony could based on its description be related to neuroticism and agreeableness) whereas the modernisation and ren qin scales seem to measure something that it closer to values than personality traits. The fact that these scales encompass attitudes that have a very Chinese origin also raises the concern whether they can capture Western attitudes and if they can be used on Western respondents 70 successfully. In any case, these scales are expected to be of higher relevance to the Chinese respondents. The Interpersonal relatedness factor scales have been used in a number of studies to better understand the predictive functions of social relationships, which indicates that some of the scales could be relevant for understanding (Chinese) leader-follower relations. In his dissertation study, Zhang (1997) used the Interpersonal relatedness factor to examine the underlying structure of the general trait of trust, target-based trust and trusting behaviour. He found that the Interpersonal relatedness factor had, in addition to the factors of agreeableness and extroversion from the NEO-FFF measure of the five-factor model of personality, significant effects on the general trust trait across all situations of trusting behaviours. In terms of target-based trust, trust of intimate persons who could be considered as one’s in-group was positively related to harmony, whereas trust of strangers who could be considered as one’s out-group was negatively related to ren qin. Trust is an important component of leader-member exchange and related to the loyalty-dimension, indicated by the fact that during the development of the multidimensional measure of leader-member exchange (LMX-MDM; Liden & Maslyn, 1998), the loyalty dimension of leader-member exchange was found to correspond to perceptions of trust. This indicates that there could be a strong linkage between the harmony scale (not ren qin as the LMX relationship cannot be categorised as a relationship between strangers) and the loyalty dimension of leader-member exchange when both are measured from the same perspective. Furthermore, in addition to the possible relationship between harmony and trust, to the extent that the harmony scale could based on its description capture something related to emotional stability and agreeableness, one could expect this scale to be positively related to all leader-member exchange dimensions measured from both perspectives. Hence, it is hypothesised that: Follower LMX hypothesis 8: follower harmony will be positively related to all dimensions of follower LMX Follower LMX hypothesis 9: leader harmony will be positively related to all dimensions of follower LMX Leader LMX hypothesis 8: leader harmony will be positively related all dimensions of leader LMX Leader LMX hypothesis 9: follower harmony will be positively related to all dimensions of leader LMX Although harmony is the only facet of Interpersonal relatedness that is predicted to have a direct effect on LMX quality, the whole factor is hypothesised to be an important interpersonal variable as differences in Interpersonal relatedness are expected to influence LMX quality. This hypothesis is developed in section 3.4.1 (see p. 85). Furthermore, ren qin is expected to moderate the relationship between LMX and organisational citizenship behaviour (see p. 102). 71 3.2 VALUES AND LMX The unique value priorities held by individual organisational members are an additional source of influence on organisational behaviour that should not be overlooked (cf. Sagiv & Schwartz, 2000). Schwartz (1997, 1999) defines values as conceptions of the desirable that guide the way social actors (e.g. organisational leaders, individual persons) select actions, evaluate people and events, and explain their actions and evaluations (cf. Schwartz, 1992). Individual value priorities are a product both of shared culture and of unique personal experience. According to this view, values are transsituational criteria or goals (e.g. security, hedonism) ordered by importance as guiding principles in life. Values are not considered to be an extension of personality. Roccas, Sagiv, Schwartz, and Knafo, (2002) define traits as enduring dispositions (what people are like) and values as enduing goals (what people consider important). Furthermore, the authors argue that values, and not traits, serve as standards for judging the behaviour of self and others. According to Sagiv and Schwartz (2000), each follower brings the value priorities that serve as guiding principles in her life into the organisation and is influenced by them in her work behaviour. 3.2.1 Schwartz value theory This study will rely on Schwartz’ (1992) theorisation regarding the content and structure of individual values. According to Ralston, Cunniff, and Gustafson (1995), Schwartz' research regarding the content and structure of values has advanced crosscultural values investigation by providing two important contributions to the crosscultural assessment of values. First, the Schwartz measures move the level of analysis from the society down to the individual. This is an important step forward from the Hofstede research. Hofstede himself (1980) noted that since his dimensions were relevant only at the societal level, assessment at the individual level was not appropriate, limiting the usefulness of his research. It should be noted that the Schwartz theory can also be used at a societal level and dimensions of values for comparing cultures have been derived by considering the basic issues or problems that societies confront in order to regulate activity (Sagiv & Schwartz, 2000). However, only the individual-level dimensions of culture are relevant in this study and will be presented further below. Second, and equally important according to Ralston et al., 1995), Schwartz developed a universal and comprehensive individual-level values structure that was derived from subjects' evaluations of questions relating to three universal requirements: biological needs, social interaction needs, and survival and welfare needs (Schwartz, 1992). Schwartz argues that for individuals to co-ordinate their pursuit of these goals they must express them as values. Individual differences in the importance of particular values derive from each person’s unique combination of biological endowments, social experiences, and cultural definitions of the desirable. People’s value priorities reflect strategies adopted to cope with these universal requirements (Schwartz, 1992). The Schwartz theory has been tested in more than 200 samples from over 60 countries (Roccas et al. 2002). This study will rely on Schwartz’ theorisation regarding the content and structure of individual values for the reasons presented above. 72 In the Schwartz value theory, numerous single values are organised into a set of ten value types that form a systematic and potentially comprehensive circular structure. In this structure, the ten value types are ordered as follows: 1) power (social status and prestige, control or dominance over people and resources), 2) achievement (personal success through demonstrating competence according to social standards, 3) hedonism (pleasure and sensuous gratification for oneself), 4) stimulation (excitement, novelty, and challenge in life), 5) self-direction (independent thought and action-choosing, creating, exploring), 6) universalism (understanding, appreciation, tolerance and protection for the welfare of all people and for nature) 7) benevolence (preservation and enhancement of the welfare of people with whom one is in frequent personal contact, 8) tradition (respect, commitment and acceptance of the customs and ideas that traditional culture or religion provide the self), 9) conformity (restraint of actions, inclinations, and impulses likely to upset or harm others and violate social expectations or norms), and 10) security (safety, harmony and stability of society, of relationships, and of self). While all ten motivational dimensions or values are found in every culture, the level of importance of each dimension varies from one culture to the next. According to Schwartz (1999), there are stable, strong differences in the value priorities of people from different cultures: values are hence clearly influenced by culture. Some of these ten values (or value types) have been found to be compatible with one another while others conflict. The pattern of relations among values yield a circular structure where values that share compatible motivational goals correlate most positively and emerge in close proximity in going around the circle. After clustering relationships of these ten motivational dimensions, a typology or structure of values emerged (Schwartz, 1992). According to this typology, a dichotomy can be drawn between collectivistic and individualistic orientations. Collectivist values include benevolence, tradition, and conformity. The collectivism dimension indicates an individual’s orientation toward others, especially those within the individual’s in-group and implies behaviour that subordinates personal goals to the goals of the in-group (Triandis, Bontempo, Villareal, Asai & Lucca, 1988; Yang & Bond 1990., 1988). Individualist values include self-direction, stimulation, hedonism, achievement, and power. This dimension indicates an individual’s perception of self-reliance and focus on attaining personal needs. Likewise, individualism implies competition, rather than cooperation in business (Hui & Triandis, 1986). Universalism and security serve as buffers or transition areas between the individualistic values of Western culture and collectivist values of Eastern culture (Ralston et al., 1995). 3.2.2 Individualism/collectivism Research during the last two decades has identified the individualism/collectivism construct (henceforth I/C) as a powerful indicator of differences among societies (Ronen & Shenkar 1985; Triandis et al., 1998) and it is the variable most frequently used to study cultural differences (Kagitcibasi, 1997). The I/C construct has consistently been acknowledged as perhaps the best means to measure value differences across 73 cultures, especially between Eastern and Western cultures (cf. e.g. Ralston, Holt, Terpstra & Yu, 1997; Tung, 1981; Yang & Bond, 1990). Therefore, individualism/collectivism will be included in the present study. Individualism has been defined as a self-orientation that emphasises self-sufficiency and control with value being given to individual accomplishments. Conversely, collectivism has been defined as the subordination of personal goals to the goals of the (work) group with an emphasis on sharing and group harmony (cf. e.g. Morris, Davis & Allen, 1993). However, it should be noted that the "group" referenced in the collectivism definition is the ingroup, which may include family, friends and/or work associates (Triandis et al., 1988). In an extensive review of the literature, Triandis (1995) summarises four defining attributes of individualism/collectivism: a) Conceptions of the self: individualists define the self as an autonomous entity independent of groups, whereas collectivists define the self in terms of its connection to others in various in-groups; b) Goal relationships: personal goals have priority over group goals in individualism, but they are subordinated to the collective goals in collectivism, when there are conflicts between individuals' self-interest and the collective interest, individualists find it permissible to give priority to self-interest, whereas collectivists feel obliged to give priority to collective interests; c) Relative importance of attitudes and norms: social behaviours of collectivists are more likely to be driven by social norms, duties, and obligations, whereas those of individualists are more likely to be driven by their own beliefs, values, and attitudes; d) Emphasis on relationships: individualists are more oriented toward task achievement, sometimes at the expense of relationships, whereas collectivists put more emphasis on harmonious relationships, sometimes at the expense of task accomplishment. Triandis et al. showed that individualism and collectivism may be better viewed as independent continua (Triandis et al., 1988). The separated dimensions capture the nuances lost by “averaging” them in with one another. Subsequent research, while not conclusive, tends to support the Triandis et al. perspective that individualism and collectivism are better viewed as separate dimensions (Egri, Ralston, Murray & Nicholson, forthcoming; Ralston, Nguyen & Napier, 1999). In the present study, individualism and collectivism will be regarded as separate constructs. Based on Schwartz (1992) value theory, the individualism dimension indicates an individual’s perception of self-reliance and focus on attaining personal needs. The collectivism dimension indicates an individual’s orientation toward others, especially those within the individual’s in-group and implies behaviour that subordinates personal goals to the goals of the in-group. What could be noted is that while individualism/collectivism is the best-known name for this construct, idiocentrism/allocentrism is the individual-level equivalent for Hofstede’s individualism/collectivism construct, which was developed for a societal level analysis (Triandis et al. 1988). Technically, idiocentrism/allocentrism is the construct that is used in the present study as it will be measured at an individual-level. However, individualism/collectivism has become the terminology generally used for comparing self versus group orientation, whether at the societal or individual levels (Ralston et al, 1997). Thus, the more familiar terms 74 individualism/collectivism idiocentrism/allocentrism. are used in the present study instead of Differences in individualism and collectivism form an interpersonal variable that is predicted to have an effect on LMX quality (see p. 86). Furthermore, individualism and collectivism are expected to exert influence on organisational citizenship behaviour (see p. 108). Regarding the direct effect of values on LMX, as subfacet of individualism, namely self-enhancement, is predicted to be linked to LMX quality as explicated below. 3.2.3 The self-enhancement facet of individualism The individualist values in the Schwartz conceptualisation can be combined into the openness-to-change and self-enhancement subfacets (Schwartz, 1992). The opennessto-change facet identifies the degree to which individuals follow their own intellectual and emotional interests, and thus, the degree to which they are receptive to different methods. It consists of the stimulation and self-direction sub-dimensions. The selfenhancement facet of individualism identifies the degree to which individuals promote self-interest and personal gain. Self-enhancement consists of the power, achievement and hedonism sub-dimensions. The self-enhancement facet of individualism could have an influence on leader-member exchange as it identifies the degree to which individuals promote self-interest and personal gain, even when doing so may have negative repercussions for others (Ralston, Yu, Wang, Terpstra, & He, 1996). Hui, Yee and Eastman (1995) argued and found support for their hypothesis that the striving to preserve interpersonal harmony had a positive effect on job satisfaction whereas the individualist pursuit of own goals and interests can result in conflicts and hence dissatisfaction. Further, it was argued that showing friendly and non-confrontational behaviour (the opposite of self-enhancement) also triggers reciprocation gestures by co-workers, which should increase job satisfaction. One could draw parallels from this discussion to the leader-member exchange development process, where self-enhancement could influence negatively the dyadic partner’s perceptions of affect and loyalty. This provides initial support for the hypotheses that: Follower LMX hypothesis 10: high leader self-enhancement values will be negatively related to the affect and loyalty dimensions of follower LMX Leader LMX hypothesis 10: high follower self-enhancement values will be negatively related to the affect and loyalty dimensions of leader LMX Follower self-enhancement could be especially negative in Chinese dyads as the Confucian collectivism traditionally does not promote self-enhancement or self-interest. One could also expect self-enhancement to reduce the fairness of interpersonal treatment. This assumption further supports the mediating role of interactional justice between various personal characteristics and leader-member exchange quality. 75 However, as the self-enhancement facet comprises achievement or personal success through demonstrating competence, it could have positive effect on the contribution and professional respect dimensions. Leader self-enhancement could be especially related to follower professional respect for leader as it also comprises power, or social status and prestige and control or dominance over people and resources, which could be considered as a part of the leader’s role. Hence, it is hypothesised that: Follower LMX hypothesis 11: high leader self-enhancement values will be positively related to the contribution and professional respect dimensions of follower LMX Leader LMX hypothesis 11: high follower self-enhancement values will be will be positively related to the contribution and professional respect dimensions of leader LMX 76 3.3 CULTURAL KNOWLEDGE AND LMX The intercultural context of the present study was discussed in Section 2.3 (see p. 39). It was argued that the Western subsidiary in China is influenced by both host and home country cultures, and that as a result of cultural background, selection and acculturation, leaders and followers could be guided by different cognitive prototypes, resulting in differences in expectations, behaviours and procedures. Furthermore, it was argued that the fact that culturally different employees may not exhibit the behaviour expected could be detrimental to intercultural leader-follower relationships. In this intercultural context, it seems likely that for all employees, knowledge of both the Western and Chinese cultures has a favourable impact on the effective functioning in the company, including the ability to form high quality leader-follower relationships. Based on the literature review, it seems that cultural knowledge could influence leaderfollower relations mainly in two ways: by enabling the individual to make accurate (and positive) interpretations of the culturally different dyadic partner, and by enabling the individual to adjust his or her behaviour in accordance with the perceived expectations of the dyadic partner. Furthermore, it seems that cultural knowledge constitutes an important part of intercultural competence. These more specific ways in which cultural knowledge could affect leader-member exchange will be discussed below, beginning with the influence of cultural knowledge on cognitive processing and continuing with the influence on adaptive behaviours. Finally, the linkage between cultural knowledge and intercultural competence will be discussed. This discussion is presented mainly to explain how cultural knowledge is conceptualised inthe present study 3.3.1 Influence on cognitive structures and processing The extent of familiarity with other cultures, and hence cultural knowledge, has been found to influence cognitive structures and how individuals process information about persons or objects from other cultures (cf. Shaw, 1990). Regarding cognitive structures, Shaw (1990) argues that more complex and accurate cognitive schemata usually exist for well-known objects and persons than for less wellknown objects and persons. One could thus hypothesise that an employee who has worked with managers of different nationalities in several multinational firms, has travelled extensively, and/or has been educated abroad might have very different and more complex leader schemata than an employee who is working for a multinational firm for the first time and has not travelled outside his or her own home country. The schemata of the less experienced employee is likely to be more simple and stereotypical when it comes to foreign colleagues, and hence less accurate. The same would be true for a manager who has managed employees in a variety of different cultures versus a manager on his or her first overseas assignment. The complexity of schemata could in turn lead to a specified search for information, as people cannot be categorised easily. In sum, it seems that cultural knowledge could lead to more complex and hence more accurate schemata based less on stereotypical preconceptions. 77 Regarding cultural knowledge and cognitive processing, Larkey (1996) suggests that people’s perceptions of culturally diverse others are influenced by two processes: categorisation and specification. The categorisation process operates by placing persons into broad categories such as gender or race (this process is similar to the one Cronshaw & Lord [1987] call automatic processing). The second process, which Larkey calls specification, is used as a person takes information about another person one piece at a time and composes a profile of the individual based on the unique set of observed characteristics (this process is similar to the one Cronshaw & Lord [1987] call controlled processing). According to Larkey (1996), enduring characteristics of organisational (and corresponding workgroup) diversity climates are likely to determine the dominance of categorisation or specification processes among workgroup members. In this discussion, Larkey uses the classification of Cox (1991, as cited in Larkey, 1996), where organisations are ordered along a continuum from monolithic to multicultural, indicating their level of integration of diverse populations. Larkey suggests that categorisation is likely to dominate in monolithic workgroups where members lack experience in dealing with and recognising cultural difference. Categorisation is also likely to dominate in plural organisations, where there is increasing contact between diverse populations but no real integration. Specification is according to Larkey, more likely to occur in multicultural organisations reflecting egalitarianism and appreciation for differences. According to Larkey (1996), the type of cognitive processing (categorisation or specification) affects the interactions in the work-group. It is theorised that specification usually leads to more favourable outcomes such as inclusion (of minorities into networks of information and opportunity), positive evaluation (in contrast to the mainly negative stereotypical ascriptions), adjustment of communication style to match one’s partner, varied ideation (culturally different expressions of opinions or points of view are accepted), and understanding. It seems to be likely that the type of cognitive processing could influence leader-member exchange quality, with specification having a positive effect on leader-member exchange quality. Cultural knowledge is one factor that could affect whether the dyadic partner is categorised “stereotypically” or in a more specified way. Cultural knowledge could also influence cultural group identity and perceived discrimination as will be discussed below. Shared sets of cultural background and behaviour has been reported to translate to group identity such that individuals perceive themselves as group members in relation to other groups (Larkey, 1996). In addition to evoking the sense of belonging to a group, this group identity also evokes perceptions of others not belonging to that group as out-group members (Larkey, 1996). According to Larkey, individuals vary in their expression of this identity, depending on the context of interaction. In her study on communicative interactions in culturally diverse workgroups, Larkey deals with the question why awareness of another’s cultural identity create positive perceptions and reactions in one case and negative perception and reaction in another case. It has, for instance, been suggested that different perceptions of difference affect work-group behaviour. Ferdman (1992, as cited in Larkey, 1996) suggests that work-group members who perceive differences to be simply individual variation are expected to view those differences as neutral and positive, but when awareness of identity group is evoked, the “other” is seen as having negative characteristics and lesser status than self. In other words, the decisive factor on 78 whether positive or negative responses occur is whether one notices the cultural category of the other. However, Ferdman and Cortes (1992, as cited in Larkey, 1996) note that awareness of cultural category may also enhance views of the other as cultural knowledge allows those who do the interpreting to understand behaviour in a more informed context of expectations. This discussion implies that cultural knowledge is likely to influence cultural identification but that it is not evident whether cultural identification has positive or negative effects in multicultural work groups. Cultural group identity also affects perceived discrimination. Individuals who perceive that they are treated unfavourably because of their membership in cultural group or other social category would experience feelings of inadequacy and personal conflict (Sanchez & Brock, 1996). Perceived discrimination, representing an individual’s perception that selective and differential treatment is occurring because of the individual’s ethnic group memberships, has been found to be an important work stressor negatively affecting organisational commitment, job satisfaction, and work tension (Sanchez & Brock, 1996). Acculturation (integration into the mainstream culture through exposure to the culture), social support (enhanced opportunities to interact and receive support from own subgroup), perceived control (gained by high pay), and job experience (learning to cope) were found to moderate the effects of perceived discrimination on employee outcomes (Sanchez & Brock, 1996). Although the linkage between perceived discrimination and leader-member exchange has not, to the best of my knowledge, been studied, it is possible that such a linkage exists. It seems logical that a person who experiences discrimination, from the part of his or her supervisor, will experience lower quality leader-member exchange-relations with his or her supervisor. (Discrimination from subordinate’s behalf is naturally also possible, which would have the same negative effect on LMX quality). Stereotypifications and perceived discrimination will not be examined in the present study. However, the above discussion indicates that cultural knowledge could reduce stereotypification and the negative effects of perceived discrimination. In sum, cultural knowledge is likely to induce a beneficial specified search for information increasing the complexity and accuracy of cognitive schemata affecting the perceptions of the culturally different dyadic partner in a mostly positive way. In light of this argument, it is hypothesised that: Follower LMX hypothesis 12: follower cultural knowledge will be positively related to all dimensions of follower LMX Leader LMX hypothesis 12: leader cultural knowledge will be positively related to all dimensions of leader LMX 3.3.2 Influence on adaptive behaviour One leader-member exchange and cultural knowledge -related question identified in the expatriation literature is whether expatriates adapt their behaviour to fit a foreign 79 culture. Thomas and Toyne (1995) suggest that expatriate mangers with long-term assignments possessing cultural knowledge based on experience, might adapt their behaviour to fit the norms of the foreign location. Adapting one’s behaviour to more closely approximate that of the other party is an often advocated strategy for bridging cultural distance in cross-cultural interactions (Thomas & Toyne, 1995). Thomas and Toyne (1995) argue that the interdependent nature of the leader-follower relationship suggest that both parties have a strong interest in explaining each other’s behaviour and in adapting their behaviour to reflect their perception of behaviour that will be favourably perceived by their dyadic partner. This process is referred to as a form of impression management that aims at increasing perceptions of similarity. It is hence not only one dyadic partner’s expectations and stereotypifications of the other party that are important but also the individual’s perceptions of what is expected of him or her. But do such adaptations take place? Ralston, Terpstra, Cunniff, and Gustafson, (1995), use the debate on the convergence, divergence or crossvergence of values as a theoretical foundation to look a expatriates' influence tactics and the level of their adaptation to the local culture. The results of the study support the divergence view, suggesting that a person's culture, not the work environment, is the main determinant of a person’s values and behaviour. The authors, however, expected that expatriate mangers with long-term assignments might move from a pure divergent perspective to a more crossvergent one. The studies conducted by Suutari, Raharjo and Riikkilä (2002) and Brew and Cairns (2002) show that expatriates adjust their leadership to the local style in order to be able to lead foreign followers more successfully. Furthermore, the results obtained by Thomas and Toyne (1995) indicate that moderately culturally adaptive behaviour of expatriate (Japanese) managers was positively related to perceptions of similarity by (American) followers and that this induced higher trust and perceived effectiveness. The authors speculate the optimal level of adaptation depends on the general tolerance of foreign behaviour and the level of admiration of the other culture. Overall, this discussion suggests that a certain level of adaptation could have favourable outcomes on intercultural leader-follower relations and that the duration of the foreign assignment, which constitutes a form of cultural knowledge, could influence the level of adaptation. In other words, cultural knowledge could influence both the leaders’ and followers’ ability to adopt their behaviour in accordance with the expectations of their dyadic partners. This is in line with the argument that cultural knowledge helps people to cope with unexpected events, and to be more capable in their interaction with foreign people (e.g. Early, 1997). Cultural knowledge could hence have a positive impact on the dyadic partner’s perceptions regarding all leader-member exchange dimensions, and it is hypothesised that: Follower LMX hypothesis 13: leader cultural knowledge will be positively related to all dimensions of follower LMX Leader LMX hypothesis 13: follower cultural knowledge will be positively related to all dimensions of leader LMX 80 3.3.3 Cultural knowledge and intercultural competence Cultural knowledge seems closely linked to intercultural competence, as mentioned in the earlier general discussion about intercultural competence (see p. 42). The importance of knowledge about other cultures is stressed as an important factor of intercultural competence by a number of authors (e.g. Brake et al, 1995; Triandis, 1977; as cited in Larsen and Gertsen (1993). It is generally assumed that increased knowledge of another culture implies increased understanding of ways of thinking and behaving in the culture in question (Larsen & Gertsen, 1993) Knowledge of culturally acceptable or unacceptable behaviour is necessary in many intercultural situations, as also most likely in leader-member exchange relationships. An understanding of factors that contribute to intercultural competence is useful to enable the identification of different types of cultural knowledge that could influence intercultural leader-follower relations. According to Berry (1999), the processes of a) cultural transmission (including enculturation and acculturation), b) training, and c) selection influence the requirements for intercultural competence. The processes of cultural transmission and training are relevant with regard cultural knowledge will be presented more in detail below (adopted from Berry, 1999): a) Cultural transmission: According to Berry (1999), the most fundamental process in meeting the requirements for personal intercultural competence is the way individuals are raised and incorporated into their cultural group through the process of cultural transmission. This is because people are not born with all the characteristics influencing intercultural competence such as culture, attitudes and language. Instead, they are learned from the individual’s own culture and environment through the processes of enculturation and socialisation. This general enculturation and specific socialisation occurs both vertically (learning aspects of culture from one’s parents), horizontally (learning from one’s peers) and in the form of oblique transmission (learning from other adult members and institutions of the culture). This cultural transmission usually takes place within one cultural group, although an increasing number of people are now exposed to more than one culture through work or studies. This leads to a kind of double cultural transmission involving both the individual’s primary culture and a secondary one. In this situation, the major challenge is to make sense of these multiple sources of cultural transmission. In the present study, cultural transmission from other cultures is expected to contribute to cultural knowledge and will be measured by including the individual’s education and work experience abroad. b) Training: Berry (1999) argues that although people with the desired qualities can be selected, intercultural competence can further be enhanced through training. A distinction can be made between training programmes that seek to train people to be competent in any or all cultures (culture-general programmes) to those that train for competence in a single culture (culture-specific programmes) (Brislin, 1986, as cited in Berry, 1999). However, insight into one other culture usually transfers to intercultural understanding more generally (Berry, 1999). Therefore, measures of cross-cultural training will be included in the present study. 81 In sum, this discussion implies that cultural knowledge, which contributes to intercultural competence, encompasses both knowledge of a specific country and general intercultural experience, which can be acquired either through training or from previous international assignments and intercultural interactions. As it was argued that insight into one other culture usually transfers to intercultural understanding more generally (Berry, 1999), it is not just knowledge of the Chinese context that is important here but general intercultural experience as well. The literature review speaks for the inclusion of the following factors as indicators of cultural knowledge: leader time working in China, follower time working in company, experience of working in intercultural dyads, education abroad, time spent on international assignments, different types of cross-cultural training, language skills. Cultural knowledge may seem especially relevant for the expatriate leaders and their local Chinese followers, in other words in intercultural dyads. However, it is possible that cultural knowledge is of importance in Chinese dyads as well. Cultural knowledge could have a very general positive influence as studies have shown that education and exposure to foreign culture and business practices reduce cognitive differences between individuals from different countries (Shaw, 1990). Based on the earlier discussions, it seems that cultural knowledge would make the cognitive structures more complex, with the beneficial outcomes discussed above. Furthermore, cultural knowledge could be of a more specific importance in the present context. This is due to the general multicultural environment, where, for instance, Chinese managers could be expected to adopt the same procedures as the expatriate managers. Furthermore, the company’s selection policy could result in the recruitment of Chinese employees (both leaders and followers) whose values and characteristics converge with those valued in the headquarters and by the expatriate managers. If the result, with the additional effect of acculturation, is some extent of Westernisation, the Chinese leaders or followers would benefit from cultural knowledge to deal with these Westernised employees. In sum, cultural knowledge is expected to be of importance in both intracultural and intercultural dyads. 82 3.4 SIMILARITY AND LMX An examination of similarity between individuals in the workplace has been theorised as critical to understanding organisational behaviour (Deluga, 1998). This approach relies on the similarity-attraction paradigm (Byrne, 1971, as cited in Wayne & Liden, 1995) for its theoretical foundation. According to this theory, individuals who possess similar individual characteristics and attitudes will perceive one another as similar and will be attracted to each other. Social psychology research supplies substantial evidence for the strong link between shared attitudes, parallel demographic characteristics, and personality trait similarity with interpersonal attraction, higher levels of trust and confidence, delegation, mutual behavioural predictability, and favourable performance ratings (Deluga 1998). Conversely, reactions are typically negative toward dissimilar others and to those who do not share common goals (Deluga, 1998). Previous research also supports a connection between subordinate-supervisor similarity and leader-member exchange (e.g. Liden et al., 1993; Phillips & Bedeian, 1994). Empirical studies have, for instance, found associations between leader-member exchange and supervisor-subordinate agreement on job-related matters (Graen & Schiemann, 1978) and positive affectivity similarity (Bauer & Green, 1996; Deluga, 1998). Subordinate-supervisor similarity may, for instance, promote process outcomes including interpersonal comfort, compatibility, and work co-ordination. The subordinate then obtains informative feedback and a clear understanding of supervisor performance expectations. Several mechanisms may be working together to create the positive effect of similarity (Wayne & Liden, 1995). The first mechanism is that similarity may enhance behavioural predictability, which could increase the ease and quality of the interactions between the parties. The second mechanism is similar interpretations of events and a common system of communication. Another potential mechanism is supervisors seeing similar subordinates having high potential because they are like themselves. Theoretically, these mechanisms are an important part of the leader-member exchange development process because they can contribute to a growing sense of trust in the relationship, and they make for more stable interpersonal relationships in general (Dienesch & Liden, 1986). According to Thomas and Toyne (1995), similarity has in addition to attraction been related to other positive outcomes including increased frequency of communication, technical communication, friendship ties and social integration (these could, however, be the result of increased attraction between the parties and similarity could hence moderate the relationship between e.g. communication frequency and leader-member exchange). A distinction between actual similarity and perceived similarity should be made. Although the similarity-attraction paradigm (Byrne, 1971, as cited in Wayne & Liden, 1995) states that individuals who possess similar individual characteristics and attitudes will perceive one another as similar it is not certain that these are strongly related. The level of actual similarity will be examined in this study by looking at both demographic 83 similarity and similarity in personality and values. Perceived similarity is concerned with one person’s perceptions of similarity with other party. Hypotheses regarding these different types of similarity will be presented below, beginning with actual similarity and continuing with perceived similarity. 3.4.1 Actual similarity The impact of actual similarity will be investigated by assessing the level of demographic similarity, similarity in personality, similarity in Interpersonal relatedness and similarity in values (measured as similarity in individualism and collectivism). a) Demographic similarity Demographic variables, such as age, gender, and tenure, are often used to profile groups and they are usually the bases for an initial impression of an individual (Tsui & Farh, 1997). Demographic cues are used to categorise people into various social groups, and stereotypes about the person’s likely attitudes, behaviours, beliefs, and actions are invoked (Tsui & Farh, 1997). Bauer and Green (1996) proposed that leader and follower characteristics would influence initial interactions between a leader and a follower. Early in the relationship, when the leader and follower have limited information about one another, these characteristics will be salient and set the stage for later interactions. Some researchers have suggested that it is not demographic factors as such which are important in social interactions, but the level of similarity between the interacting parties. This approach is termed relational demography and it has investigated age and tenure, race and education (Tsui & O'Reilly, 1989), and gender (e.g., Tsui & O'Reilly, 1989; Wayne & Liden, 1995). Tsui and O'Reilly (1989) reported that follower-leader demographic similarity was significantly associated with leader ratings of affect toward followers and the extent to which followers had achieved role and responsibility expectations. Demographic similarity could hence be linked to the affect dimension of leader-member exchange. Moreover, Green, Anderson, and Shivers (1996) described how leader-member exchange is likely to be of lower quality when followers and leaders are of different genders. Conversely, Liden et al. (1993) found that leader-follower demographic similarity had no significant effects on quality of leader-member exchange and Bauer and Green (1996) reported no relationship between the quality of leader-member exchange and gender. In sum, the support for the relationship between demographic similarity and overall leader-member exchange has not been very strong. However, due to the positive effects of similarity in general reported by Wayne and Liden (1995) listed earlier including behavioural predictability, similarity in interpretations and supervisors seeing similar subordinates having high potential because they are like themselves, demographic similarity could have a positive effect on also the loyalty, contribution and professional respect dimensions of leader-member exchange. Hence, it is hypothesised that: 84 Follower LMX hypothesis 14:the level of demographic similarity between leader and follower will be positively related to all dimensions of follower LMX Leader LMX hypothesis 14: the level of demographic similarity between leader and follower will be positively related to all dimensions of leader LMX Tsui and Farh (1997) argue that to the extent that individuals in any social cultural context may be characterised by demographic factors, the idea of demography may be a universal concept that has relevance for understanding work behaviour in different cultural settings although most research to date on relational demography (demographic similarities and differences) has been conducted in a US setting. Farh et al. (1998) argue that relational demography has the same effect in China as in the Western world, meaning that the similarity-attraction dynamic also operates in the Chinese context. Tsui and Farh (1997) looked at relational demography in a Chinese context, where socio-economic backgrounds and family origins are particularly important factors in interpersonal relationships. The authors compared the Western idea of relational demography to the Chinese concept of guanxi and discussed how and when each will matter most in influencing interpersonal relationships and work outcomes in China. (In an earlier study, the authors had found that the work outcomes influenced most directly by guanxi and relational demography are interpersonal trust, interpersonal liking, frequency of communication, favourable evaluations of each other by members who share some tie or connection and preferential actions. The authors argue that these outcomes are meaningful at the interpersonal level in either vertical (leader-member) or horizontal dyads). Tsui and Farh (1997) hypothesise that social identification based on demographic similarity is more important with strangers than with family members. This means that strangers with similar identity are put in more favourable light than strangers with whom a common basis of social identity is not shared. With family members, role obligation plays a more significant role than social identification. This means that in the dyads where the leader and follower represent different cultures and the existence of other guanxi bases than the leader-subordinate situation are unlikely, relational demography could play a bigger role than in the Chinese dyads. b) Personality similarity In addition to demographic similarity, personality or attitudinal similarity could influence leader-member exchange. Previous research has shown that when dyad members have similar outlooks owing to similar personalities, leaders may be inclined to view members' performance more positively, to trust them more, and to delegate more to them. (cf. Wayne & Liden, 1995). A field study conducted by Phillips and Bedeian (1994) revealed that leader-member exchange quality was positively connected with leader-follower attitudinal similarity. Other empirical studies have found associations between leader-member exchange and positive affectivity similarity (Bauer & Green, 1996, Deluga, 1998). In his discussion about similarity in positive affectivity, Deluga (1998) argues that enthusiastic, energetic people should want to be around other enthusiastic, energetic people, and view them more favourably than those who differ from themselves. 85 Dissimilarity in affectivity might well lead to differences of opinion about the work context that could create social distance between leader and follower, lower trust, and increase misunderstandings. Misunderstandings on either side of the leader-follower relationship can lower its quality, which is a mutually negotiated outcome. Bauer and Green (1996) found that similarity in positive affectivity was related to performance judgements made by the leader. The authors suggest that personality similarity may predispose a leader to see a follower in a positive light, or it may be that personality similarity actually facilitates follower performance. What personality similarity means in terms of actual performance is, however, harder to determine. Previous research suggests that certain personality traits may enhance performance when the work team (and why not dyad) is homogenous, whereas other traits may enhance performance when the team is diverse (Neuman et al., 1999). Personality similarity and compatibility between the actors could enhance performance by facilitating communication between the actors and the motivation to work together. In light of these arguments and the expected general positive effect of similarity discussed earlier, it is hypothesised that: Follower LMX hypothesis 15: the level of personality similarity between leader and follower will be positively related to all dimensions of follower LMX Leader LMX hypothesis 15: the level of personality similarity between leader and follower will be positively related to all dimensions of leader LMX Personality similarity will be measured as differences in neuroticism, extroversion, agreeableness and conscientiousness from the five-factor model of personality. c) Differences in Chinese Interpersonal relatedness Hui and Graen (1997) suggest that cross-cultural differences in traditional Chinese values regarding the rules of social relationships prescribed by guanxi and wu lun can produce misunderstanding and conflict. Chinese social relationships were discussed in Section 2.3.2 (see p. 47). This indicates that the level of similarity between leader and follower in the endorsement of traditional values could have a positive effect on leadermember exchange quality and all its dimensions. As the Interpersonal relatedness factor from the Chinese Personality Inventory encompasses attitudes that have a very Chinese origin it will be used in the present study to measure the level of endorsement of traditional Chinese values. This leads to the following hypotheses: Follower LMX hypothesis 16: a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on follower LMX quality and all its dimensions Leader LMX hypothesis 16: a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on leader LMX quality and all its dimensions 86 d) Differences in individualism/collectivism As values are conceptions of the desirable that guide the way social actors select actions, evaluate people and events, and explain their actions and evaluations (cf. Schwartz, 1992), one could assume that differences in values would lead to increased difficulties in evaluating and explaining other people and their actions, which is an important aspect of social interaction (cf. Marshall & Boush, 2001) Furthermore, as individuals’ organisational behaviours are influenced by the value priorities that serve as guiding principles in their lives (Sagiv & Schwartz, 2000), differences in values are likely to result in differences in behaviours. As values have been found to be influenced by culture (e.g. Schwartz, 1999), more significant value differences could be expected in intercultural than in intracultural dyads. Although no previous research has been found that directly links value differences to leader-member exchange, one could hypothesise that similarity in values has the same effect as similarity in general including demographic and personality similarity. That is, value similarity could increase perceptions of similarity and attraction, enhance behavioural predictability and hence trust, increase similarity in the interpretations of events and facilitate communication (Wayne & Liden, 1995). Value similarity will be assessed by through the individualism and collectivism dimensions as the importance of these dimensions has been established in previous research (these dimensions were discussed in Section 3.2). The following hypotheses are hence presented: Follower LMX hypothesis 17:a high level of similarity in individualism and collectivism between leader and follower will be positively related to all dimensions of follower LMX Leader LMX hypothesis 17: a high level of similarity in individualism and collectivism between leader and follower will be positively related all dimensions of leader LMX 3.4.2 Perceived similarity Perceived similarity has been found to influence leader-member exchange (Liden et al., 1993; Phillips & Bedeian, 1994). Liden et al. (1993) found perceived similarity and leader-member exchange to be related only when both variables were assessed by the same source: leader reports of similarity were related to leader reports of leader-member exchange but not to follower reports of leader-member exchange. Phillips and Bedeian (1994), however, found leader reports of similarity to affect follower reports of leadermember exchange). The bottom line of similarity research seems to be that individuals tend to like and trust people who are similar to themselves, and it has, for instance, been suggested that affect and trust may influence the processing of performance information (see earlier discussion). In line with the previous similarity-discussions it is hence hypothesised that perceptions of similarity with dyadic will be positively related to the all dimensions of leader-member exchange. 87 To recall, the similarity-attraction paradigm assumes that individuals who possess similar individual characteristics and attitudes will perceive one another as similar and will be attracted to each other. Perceived similarity is hence expected to be partly an outcome of actual similarity, and could be seen as a mediator between actual similarity and leader-member exchange. Furthermore, perceived similarity could mediate the relationship between cultural knowledge and leader-member exchange. This is due to the assumption that cultural knowledge increases specification and accurate judgements and hence facilitates the ability to recognise cultural differences (Brake, 1995). Cultural knowledge could hence also diminish what Adler (1997) calls cultural blindness (lack of attention to cultural assumptions), lack of cultural self-awareness (ignorance associated with not knowing one’s own cultural conditioning) and projected similarity. Adler reports that intercultural interactions sometimes are distorted by the fact that people with different cultural backgrounds often perceive each other more similar than they actually are. This phenomenon is called projected similarity. In sum, it is hypothesised that: Follower LMX hypothesis 18: follower perceptions of similarity with leader will be positively related to all the dimensions of follower LMX, and perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX Leader LMX hypothesis 18: leader perceptions of similarity with follower will be positively related to all the dimensions of leader LMX, and perceived similarity will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader LMX Finally, the discussions concerning similarity and LMX have indicated that in an intercultural interaction situation, the interacting parties may have more different values and cognitive structures and exhibit more different behaviours than in intracultural dyads. These increased differences could be detrimental to the intercultural leader-follower relationship. Hence, the following dyad-level hypothesis is presented: Dyad-level hypothesis 1: intracultural Chinese dyads will demonstrate higher LMX quality than intercultural Western-Chinese dyads 88 3.5 INROLE PERFORMANCE AND LMX The early conceptualisations of leader-member exchange development as well as the role-making model (Graen & Scandura, 1987) stressed the importance of follower performance. It was suggested that the leaders assess the followers’ ability, performance and competence through a series of assignments and eventually develop high-quality exchanges with high-ability, competent, and high-performing followers. Dockery and Steiner (1990) and Wayne and Ferris (1990) found empirical support for the association between follower performance and leader perceptions of leader-member exchange quality. Although the relationship between follower performance and the specific dimensions of leader-member exchange has not been established in previous research, follower performance is expected to influence all the dimensions of LMX due to its central nature. Especially the work-related contribution and professional respect dimensions are likely to be influenced by follower performance. In light of this discussion, it is hypothesised that: Leader LMX hypothesis 19: follower inrole performance will be positively related to all dimensions of leader LMX However, it should be noted that the direction of causality is difficult to establish due to the dynamic nature of the relationship development. Inrole performance could also be seen as the outcome of earlier LMX that influences subsequent LMX. 89 3.6 INTERACTIONAL JUSTICE AND LMX Notions of justice are introduced in Homans' theory of social exchange (1961, 1974; as cited in Keller & Dansereau, 1995). The basic premise of justice theories is that fair treatment is central to people and a major determinant of their reactions to decisions (Korsgaard & Schweiger, 1995). As noted by Graen and Scandura (1987), one of the requirements for the development of high-quality relationships is that each party must see the exchange as reasonably fair. A distinction between procedural, distributive and interactional justice can be made (Leung et al., 1996). Distributive justice refers to the perceived fairness of the amounts of compensation employees receive. Procedural justice refers to the perceived fairness of the means used to determine those amounts (McFarlin & Sweeney, 1992). Interactional justice is concerned with the quality of treatment received from decision makers and the extent to which formal decision making procedures are properly enacted (Leung et al., 1996). Scandura (1999) asserts that previous research leaves it unclear whether organisational justice is an outcome of leader-member exchange or a central element in leader-member exchange development. Therefore she proposes a model of LMX development incorporating different levels of analysis where each type of justice plays a different role at different stages. According to Scandura’s model, interactional justice represents an integrated part of the leader-follower relationship and the model suggests that interactional justice should correlate closely and significantly with leader-member exchange. In the present study, interactional justice is conceptualised as a leader behaviour, measured from a follower perspective, that constitutes an antecedent of follower leader-member exchange. Furthermore, Scandura proposes that higher quality relationship will result in more rewards for followers and hence increased perceived distributive justice. A high-quality relationship is also expected to entail better communications regarding organisational justice concerns and hence increased perceived procedural justice. This suggests that procedural and distributive justice could be seen as outcomes of follower leader-member exchange (procedural and distributive justice are predicted to mediate the relationship between LMX and OCB and will be discussed on p. 106). The findings of the study conducted by Murphy, Wayne, Liden and Erdogan (2003) support the propositions made by Scandura. A significant relationship between interactional justice and LMX was found but distributive justice was not found to be related to LMX. Again, all the dimensions of leader-member exchange are expected to be influenced by the interactional justice provided by the leader as a result of the central role of this factor. Based on this discussion, it is hypothesised that: Follower LMX hypothesis 19: follower perceptions of interactional justice will be positively related to all dimensions of follower LMX The discussions in the last two sections above also imply that leader LMX quality and follower LMX quality could be linked, and that this relationship could be mediated by interactional justice and follower performance. It is predicted that follower performance has a positive influence on leader LMX and that high LMX quality will increase the 90 fairness of treatment. This fairness (i.e. interactional justice) will in turn have a positive influence on follower leader-member exchange quality, which should induce better performance, which in turn should lead to higher leader LMX quality and so on. Hence, it is hypothesised that: Follower LMX hypothesis 20: overall leader LMX will be positively related to all dimensions of follower LMX, and interactional justice will mediate this relationship Leader LMX hypothesis 20: overall follower LMX will be positively related to all dimensions of leader LMX, and follower performance will mediate this relationship Due to the exploratory nature of these hypotheses, the influence of LMX will only be examined at the level of overall LMX, not the individual dimensions (i.e. the effect of overall LMX on the specific dimensions, not the effect of dimensions on dimensions). As follower performance and leader LMX as well as fair treatment and follower LMX seem to be closely related, it is possible that follower performance and interactional justice do not only mediate the relationship between leader and follower LMX and its dimensions, but also the relationship between additional antecedents and LMX. In other words, some of the personal, non-behavioural antecedents of leader-member exchange could influence leader-member exchange via the mediation of performance and fairness perceptions. For instance, Organ and Konovsky (1989) suggest that the tendency to perceive unfairness is, to some extent, a dispositional variable. Neuroticism has been linked to interactional justice (Elfron et al, 2001), which indicates that interactional justice could mediate the relationship between neuroticism and LMX. Furthermore, Chiu and Hong (1997) argue that, in a Chinese context, perceptions of justice are associated with the social role requirements for each individual (these role requirements prescribed by wu lun and guanxi were discussed in Section 2.3, see p .43). Therefore, perceptions of fairness depend upon the extent to which individuals interact in accord with their role requirements. This argument does not influence the predicted relationship between interactional justice and LMX, but it implies that if the leader and follower have different views of the role requirements, this could have a detrimental effect on interactional justice. This means that interactional justice could mediate the relationship between differences in Interpersonal relatedness and LMX (see Section 3.4, p. 85). As a result, the mediating role of interactional justice and follower performance will be examined using most of the antecedents of LMX as control variables. 91 3.7 CONTROL VARIABLES The following additional influences on leader-member exchange quality that will be included as control variables in the analyses have been identified: a) Demographic factors Demographic variables, such as age, gender, and tenure, are often used to profile groups and they are usually the bases for an initial impression of an individual (Tsui & Farh, 1997). Demographic cues are used to categorise people into various social groups and stereotypes about the person’s likely attitudes, behaviours, beliefs, and actions are invoked (Tsui & Farh, 1997). Demographic factors have been linked to leader-member exchange quality in previous studies (e.g. Tsui et al., 1996; Varma & Stroh, 2001) and will thus be included as control variables. b) Number of supervised employees Dienesch and Liden (1986) suggest that if a leader supervises a large number of followers, he or she may not have time and resources to develop high-quality relationships with all of them. c) Tenure Tenure could influence the leader-member exchange relationships, as suggested by e.g. Bauer & Green, 1996. The duration of employment in the company will be measured as well as dyadic tenure measured as the number of months the leader and follower have been working together. d) Interaction intensity Frequent and open communication has been found to influence leader-member exchange quality (cf. Tanner, Ridnou, & Castleberry, 1997). (However, it is not clear whether frequent communication is a result or outcome of the quality of the leadermember exchange relationship). Furthermore, it should be noted that due to the closely related nature of leader-member exchange and its mediators (i.e. perceived similarity, interactional justice and follower performance), the analyses of mediation with the mediators as dependent variables will be conducted including all leader-member exchange antecedents as control variables. 92 3.8 SUMMARY: ANTECEDENTS OF LMX A total of 20 hypotheses concerning the effect of various personal, interpersonal and behavioural antecedents on follower LMX quality and its dimensions have been developed in this chapter. 20 hypotheses concerning the antecedents of leader LMX quality and its dimensions have also been developed. These hypotheses are listed below. An overview of the hypotheses is also provided in figure format. For both leader and follower LMX, the 13 first hypotheses link various personal leader and follower characteristics, including personality, values and cultural knowledge to LMX quality. Hypothesis 14– 8 link interpersonal antecedents to LMX, including actual and perceived similarity. Hypothesis 19 links behaviours to LMX, i.e. interactional justice with regard to follower LMX and follower performance with regard to leader LMX. Finally, Hypothesis 20 predicts a positive relationship between leader and follower LMX and a mediating role of the behavioural factor. These hypotheses are expected to be relevant in both intercultural Western-Chinese and intracultural Chinese dyads. 3.8.1 Follower LMX: hypotheses The 20 hypotheses pertaining to follower LMX quality are listed below. Follower LMX hypothesis 1: follower extroversion will be positively related to all dimensions of follower LMX ........................................................................64 Follower LMX hypothesis 2: leader extroversion will be positively related to all dimensions of follower LMX ........................................................................64 Follower LMX hypothesis 3: follower neuroticism will be negatively related to the affect, loyalty, and professional respect dimensions of follower LMX ........65 Follower LMX hypothesis 4: leader neuroticism will be negatively related to all dimensions of follower LMX ........................................................................65 Follower LMX hypothesis 5: leader agreeableness will be positively related to the affect, loyalty and contribution dimensions of follower LMX......................67 Follower LMX hypothesis 6: follower conscientiousness will be positively related to the contribution dimension of follower LMX .....................................................68 Follower LMX hypothesis 7: leader conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of follower LMX .......................................................................................................................68 Follower LMX hypothesis 8: follower harmony will be positively related to all dimensions of follower LMX ........................................................................70 Follower LMX hypothesis 9: leader harmony will be positively related to all dimensions of follower LMX ...........................................................................................70 Follower LMX hypothesis 10: high leader self-enhancement values will be negatively related to the affect and loyalty dimensions of follower LMX .....................74 93 Follower LMX hypothesis 11: high leader self-enhancement values will be positively related to the contribution and professional respect dimensions of follower LMX ............................................................................................................. 75 Follower LMX hypothesis 12: follower cultural knowledge will be positively related to all dimensions of follower LMX .................................................................. 78 Follower LMX hypothesis 13: leader cultural knowledge will be positively related to all dimensions of follower LMX ....................................................................... 79 Follower LMX hypothesis 14:the level of demographic similarity between leader and follower will be positively related to all dimensions of follower LMX ....... 84 Follower LMX hypothesis 15: the level of personality similarity between leader and follower will be positively related to all dimensions of follower LMX ....... 85 Follower LMX hypothesis 16: a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on follower LMX quality and all its dimensions ....................................................................... 85 Follower LMX hypothesis 17:a high level of similarity in individualism and collectivism between leader and follower will be positively related to all dimensions of follower LMX ....................................................................... 86 Follower LMX hypothesis 18: follower perceptions of similarity with leader will be positively related to all the dimensions of follower LMX, and perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX ................................... 87 Follower LMX hypothesis 19: follower perceptions of interactional justice will be positively related to all dimensions of follower LMX.................................. 89 Follower LMX hypothesis 20: overall leader LMX will be positively related to all dimensions of follower LMX, and interactional justice will mediate this relationship ................................................................................................... 90 An overview of the hypotheses is presented in a simplified format in the figure below. 94 Figure 1: Overview of follower LMX hypotheses Follower personal characteristics (Hypotheses 1, 3, 6, 8, 12) Cultural knowledge Personality Values Behaviour (Hyp.19) Interpersonal variables (Hypotheses 14 18) Leader personal characteristics (Hypotheses 2, 4, 5, 7, 9, 10, 11, 13) Actual similarity Perceived similarity Personality Values Interactional justice LMX quality Follower LMX Cultural knowledge Leader LMX (Hypothesis 20) is omitted from the figure 3.8.2 Leader LMX: hypotheses The 20 hypotheses pertaining to leader LMX quality are listed below. Leader LMX hypothesis 1: leader extroversion will be positively related all dimensions of leader LMX ...............................................................................................64 Leader LMX hypothesis 2: follower extroversion will be positively related to all dimensions of leader LMX............................................................................64 Leader LMX hypothesis 3: leader neuroticism will be negatively related to all dimensions of leader LMX............................................................................65 Leader LMX hypothesis 4: follower neuroticism will be negatively related to all dimensions of leader LMX............................................................................65 Leader LMX hypothesis 5: follower agreeableness will be positively related to the affect, loyalty and contribution dimensions of leader LMX .........................67 Leader LMX hypothesis 6: leader conscientiousness will be positively related to the contribution and professional respect dimensions of leader LMX................68 Leader LMX hypothesis 7: follower conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of leader LMX...68 95 Leader LMX hypothesis 8: leader harmony will be positively related all dimensions of leader LMX................................................................................................... 70 Leader LMX hypothesis 9: follower harmony will be positively related to all dimensions of leader LMX ........................................................................... 70 Leader LMX hypothesis 10: high follower self-enhancement values will be negatively related to the affect and loyalty dimensions of leader LMX ........................ 74 Leader LMX hypothesis 11: high follower self-enhancement values will be will be positively related to the contribution and professional respect dimensions of leader LMX................................................................................................... 75 Leader LMX hypothesis 12: leader cultural knowledge will be positively related to all dimensions of leader LMX ........................................................................... 78 Leader LMX hypothesis 13: follower cultural knowledge will be positively related to all dimensions of leader LMX ........................................................................... 79 Leader LMX hypothesis 14: the level of demographic similarity between leader and follower will be positively related to all dimensions of leader LMX........... 84 Leader LMX hypothesis 15: the level of personality similarity between leader and follower will be positively related to all dimensions of leader LMX........... 85 Leader LMX hypothesis 16: a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on leader LMX quality and all its dimensions.................................................................................... 85 Leader LMX hypothesis 17: a high level of similarity in individualism and collectivism between leader and follower will be positively related all dimensions of leader LMX................................................................................................... 86 Leader LMX hypothesis 18: leader perceptions of similarity with follower will be positively related to all the dimensions of leader LMX, and perceived similarity will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader LMX...................................... 87 Leader LMX hypothesis 19: follower inrole performance will be positively related to all dimensions of leader LMX ........................................................................... 88 Leader LMX hypothesis 20: overall follower LMX will be positively related to all dimensions of leader LMX, and follower performance will mediate this relationship ................................................................................................... 90 An overview of the hypotheses is presented in a simplified format in the figure below . 96 Figure 2: Overview of leader LMX hypotheses Follower personal characteristics (Hypotheses 2, 4, 5, 7, 9-11, 13 Cultural knowledge Personality Values Behaviour (Hyp.19) Interpersonal variables (Hypotheses 14 18) Leader personal characteristics (Hypotheses 1, 3, 6, 8, 12) Actual similarity Personality Perceived similarity Follower performance LMX quality Leader LMX Values Cultural knowledge Follower LMX (Hypothesis 20) is omitted from the figure 3.8.3 Dyad-level hypothesis The following dyad level hypothesis was developed: Dyad-level hypothesis 1: intracultural Chinese dyads will demonstrate higher LMX quality than intercultural Western-Chinese dyads 97 4 LMX AND ORGANISATIONAL CITIZENSHIP BEHAVIOUR In order to ensure the successful functioning of the Western subsidiary in China, or any organisation for that matter, it is important to understand how and why employees contribute to their organisations. An underlying assumption of this study is that these contributions are related to the quality of the leader-follower relationship. According to the multidimensional view of individual contributions to organisations, productivity in individually assigned tasks only represent a fraction of what employees render to their workplaces (cf. Organ & Paine, 1999). As Organ (1990) points out, already Chester Barnard (1939, as cited in Organ, 1990) recognised that the essential condition of organisations is a “willingness of persons to contribute efforts to the co-operative system”, which shows an appreciation of individual contributions other than those of performing a particular task. Therefore, ‘performance’, with some form of leader ratings as a proxy for measurable output, is not considered to be the best indication of employees’ contributions to their organisation. Agreeing with this view, the concept of organisational citizenship behaviour (OCB; Bateman & Organ, 1983) will be used to examine employee contributions to their organisation in the present study. A thorough and valid examination of the relationship between leader-member exchange and organisational citizenship behaviour requires an analysis of potential mediating and moderating factors and the inclusion of a sufficient number of control variables. Through the mediating analyses, additional outcomes of leader-member exchange will implicitly be examined. Perceived organisational support, organisational justice and job satisfaction are examples of leader-member exchange related outcomes that are expected to mediate the relationship between leader-member exchange and organisational citizenship behaviour. Organisation-based self-esteem is an additional hypothesised mediating variable that has not been directly linked to leader-member exchange before. Organisational citizenship behaviour could hence be seen as “the ultimate dependent variable” in the present study with which the organisational relevance of leader-follower relationships will be investigated. This section begins by defining organisational citizenship behaviour and identifying the different dimensions of organisational citizenship behaviour. Then, the relationship between leader-member exchange and organisational citizenship behaviour will be examined and hypotheses regarding this relationship will be presented. Thereafter, additional antecedents of organisational citizenship behaviour will be discussed and hypotheses presented regarding factors that could mediate and moderate the relationship between leader-member exchange and organisational citizenship behaviour. Finally, the section is summarised by listing the hypotheses and presenting them in figure format. 4.1 DEFINITION AND DIMENSIONS OF OCB The term “organisational citizenship behaviour” (OCB) was proposed by Bateman and Organ (1983) to “denote those organisationally beneficial behaviours and gestures that can neither be enforced on the basis of formal role obligations nor elicited by 98 contractual guarantee of recompense” (Organ, 1990, p.46). Deluga (1998) defines organisational citizenship behaviour as spontaneous acts that go beyond prescribed job requirements (in-role behaviours), whereby the follower performs non-obligatory extrarole behaviours. This is close to Organ’s (1988, p.4) definition of organisational citizenship behaviour as “individual behaviour that is discretionary, not directly or explicitly recognised by the formal reward system, and that in the aggregate promotes the effective functioning of the organisation”. This means that organisational citizenship behaviour could be seen as informal contributions that employees can choose to make or withhold without having to consider either sanctions or rewards. It should be noted that organisational citizenship behaviour does not only involve making positive contributions but it also includes forbearance or the willingness to endure the occasional costs and inconveniences for the benefit of the collective good (Organ, 1990). Organisational citizenship behaviours are considered as vital for productivity because organisations cannot anticipate through formally stated in-role job descriptions the entire array of follower behaviours needed for achieving goals (Deluga, 1998). In order to clarify the meaning of the organisational citizenship behaviour construct and its relationships to other constructs, it could be mentioned that according to Organ (1990), organisational citizenship behaviour is not the only construct in current use indicating an employee’s “willingness to co-operate” using Barnard’s terms. He suggests that prosocial organisational behaviour (POB) and organisational commitment (OC) are two others that partially overlap with organisational citizenship behaviour, but which should be kept conceptually distinct using appropriate measures. POB has been defined by Brief and Motowidlo (1986, p. 710) as “any behaviour enacted in an organisational context that attempts to improve the welfare of the person or persons to whom the behaviour is directed”. POB is hence a more inclusive construct than organisational citizenship behaviour as the latter is restricted to extra-role behaviours that should promote organisational effectiveness and not just personal well being. OC has been generally been defined as “the relative strength of an individual’s identification with and involvement in an organisation” (Mowday, Porteer & Steers, 1982, p. 20). According to Organ, the linkage between organisational citizenship behaviour and OC depends on if one considers the latter as a set of behaviours, behavioural intentions, an attitude, or a calculated motivational force. It is argued that OC has been regarded as all of these and that conceptual clarity of both organisational citizenship behaviour and OC could be enhanced by regarding the former as a set of behaviours and the latter as a sense of psychosocial attachment. Organ (1988) identified five dimensions of organisational citizenship behaviour: a) altruism, discretionary behaviour that has the effect of helping a specific other person with an organisationally relevant task or problem; b) conscientiousness, discretionary behaviour that goes well beyond the minimum role requirements of the organisation; c) civic virtue, discretionary behaviour that indicates that the employee responsibly participates in, is involved in, or is concerned about the life of the organisation; d) courtesy, discretionary behaviour that is aimed at preventing work-related problems with others from occurring; and e) sportsmanship, discretionary behaviour that indicates the willingness of an employee to tolerate less than ideal circumstances without complaining. The present study will rely on this conceptualisation of organisational citizenship behaviour. However, the sportsmanship and courtesy dimensions will be 99 omitted from the present study for two reasons. First, these dimensions did no emerge in the Chinese OCB scale developed by Farh, Early and Lin (1997, to be described below), while the remaining dimensions showed more universal characteristics. Second, these dimensions don’t seem most relevant for the present study as sportsmanship seems to mainly cover negative attitudes in general and the courtesy dimension general consideration for others. These dimensions hence seem less related to actual contribution to the organisation. A distinction between organisational citizenship behaviour directed towards individuals (OCBI) and organisational citizenship behaviour directed toward the organisation can be made (OCBO) (Williams & Anderson, 1991). The authors argue that that this distinction is important to make as the two forms of organisational citizenship behaviour could have different antecedents and consequences. The result of their study showed that the extrinsic cognitive dimension of job satisfaction (the authors distinguish between an affective or dispositional, and a cognitive or more evaluative component of job satisfaction and within this last dimension between extrinsic and intrinsic job cognitions) predicted OCBO while the intrinsic component of job cognitions predicted OCBI. Concerning Organ’s (1988) organisational citizenship behaviour dimensions, altruism and courtesy appear to represent OCBI while conscientiousness, civic virtue and sportsmanship could be examples of OCBO. Despite of these suggestions, the present study will rely on a one-dimensional conceptualisation of organisational citizenship behaviour following the approach of most empirical studies. The organisational citizenship behaviour concept, as most other concepts used in this study, has been conceived in the US. Again, the question arises whether this concept is applicable and relevant in other cultures. In China, organisational citizenship behaviours may take a different form due to different rules of reciprocation and role obligations. Farh et al. (1997) examined the relationship between organisational citizenship behaviour and justice perceptions in the Chinese context and developed a Chinese organisational citizenship behaviour measure. Three of the five dimensions in the Chinese organisational citizenship behaviour scale turned out to be very similar to those identified by Organ (1988) and operationalised by Podsakoff, MacKenzie, Moorman, and Fetter (1990). These dimensions, which arguably could be etic or universal dimensions, are identification with the company (usually referred to as civic virtue in the literature), altruism towards colleagues, and conscientiousness. The Western dimensions of sportsmanship and courtesy did not emerge in the Chinese organisational citizenship behaviour scale while interpersonal harmony and protecting company resources emerged as new dimensions. These dimensions hence seem to have a more emic, or culture-specific, nature. The study conducted by Lam, Hui and Law (1999) corroborated these findings through the indications in the data that participants in different nations (US, Australia, Japan, Hong Kong) differed in the way they looked at the Western emic dimensions of organisational citizenship behaviour, but not in the way they looked at the etic dimensions. The authors see this as an indication that there could be performance norms that transcend cultural values (etic OCBs) and performance norms that are affected by particular cultural values. However, the overall conclusion made in the study conducted by Lam et al. (1999) was that the participants across nations could distinguish between Organ’s (1988) dimensions. Furthermore, Podsakoff et al.’s scale (1990) based on Organ’s dimensions yielded acceptable psychometric 100 properties in terms of internal consistency and factor structure across the US, Australia, Japan, and Hong Kong. This organisational citizenship behaviour scale has also been successfully, and with minor modifications, used by other Chinese researchers in China (e.g. Chen, Hui & Sego, 1998) in addition to the Chinese organisational citizenship behaviour scale (e.g. Hui, Law & Chen, 1999). The Western conceptualisation will hence be used in the present study. An important issue in organisational citizenship behaviour research is the boundary between in-role and extra-role behaviour and the extent to which what is measured as organisational citizenship behaviour, or extra-role behaviour, in fact is part of the job or so called in-role behaviour (see e.g. Morrison, 1994; Lam et al., 1999). It has been argued that the boundary between in-role an extra-role behaviour varies across employees (Morrison, 1994) and cultures (Lam et al., 1999) and that leaders and followers tend to have different definitions of job roles (Lam et al., 1999; Morrison, 1994). Morrison (1994) points out that many organisational citizenship behaviour studies have adopted the leader perspective and definition of organisational citizenship behaviour, which is problematic when one tries to explain what motivates the employees to perform organisational citizenship behaviour. The argument made is that employees’ behaviour is influenced by whether they define a given activity as in-role or extra-role and that this definition could differ from the one of their leaders. Activities defined as in-role are according to Morrison more likely to be performed than extra-role activities. This is due to the fact that extra-role behaviours are not, by definition, organisationally rewarded. Therefore, leader ratings of extra-role behaviours or organisational citizenship behaviours are dependent upon how broadly the employees define their jobs. The broadness of follower’s work role definition is hence likely to be positively related to follower organisational citizenship behaviours and will be included as a control variable in the present study. Morrison (1994) suggests that perceived job breadth is likely to depend on individual factors such as values, attitudes and experience as well as contextual factors such as the nature of the socialisation process and task characteristics in a given organisation. Morrison’s results indicate that perceived job breadth is positively related to satisfaction and to normative and affective commitment and negatively related to tenure. Affective commitment had a very strong effect on perceived job breadth and the results indicate that job definitions mediate the relationship between commitment and organisational citizenship behaviour. In other words, commitment could cause employees to define their job roles more broadly and hence induce them to engage in what others may perceive as organisational citizenship behaviour. The results also indicated that the more frequently an employee interacts with his or her leader, the more similarly the employee and leader will define the employee’s job responsibilities. One could also hypothesise that employees whose job definitions are similar to those of their leaders could have broader job definitions than those with incongruent definitions. This is caused by the fact that leaders tend to have broader job definitions than the followers (Lam et al., 1999). This is arguably due to the fact that leaders’ main concern is their own efficiency, which makes it advantageous to define job scope broadly to include organisational citizenship behaviour. From the followers’ perspective, the concern is on the exchange between the follower and the organisation, and “if organisational citizenship behaviour is defined as part of one’ formal job roles, then the follower 101 would not be able to se organisational citizenship behaviour as a medium of exchange with the organisation” (Lam et al., 1999, p. 595). From the discussion above one could infer that most beneficial for the company and satisfactory for the leader would be to have employees whose role definitions are broad enough to include behaviours that could typically be regarded as organisational citizenship behaviour. Another favourable option is to have employees who may not have broad role definitions but who are willing to perform organisational citizenship behaviours. The resulting behaviour could in these two cases be the same but the motivational forces driving the behaviour could be different. It is possible that for followers with broad work role definitions, attitudinal factors are less important in determining organisational citizenship behaviours than for followers with narrow work role definitions. In the former case, a person may feel obliged to “do one’s job” despite negative job attitudes. In the latter case, where the same behaviours are considered as extra-role, these behaviours may not be performed unless they were a way to reciprocate for e.g. fair treatment or a high-quality relationship with the leader. This discussion implies that perceptions of job breadth could have a moderating effect between leadermember exchange and organisational citizenship behaviour so that the organisational citizenship behaviours of followers with narrow work role definitions will be more affected by leader-member exchange quality than those with broad work role definitions. Hence, it is hypothesised that: OCB hypothesis 1: follower perceptions of job breadth will moderate the relationship between follower LMX and follower OCB 102 4.2 EXPLORING THE DIRECT RELATIONSHIP BETWEEN LMX AND OCB Organ and Paine (1999) describe existing frameworks of organisational citizenship behaviour and the examination of antecedents and outcomes of organisational citizenship behaviour as “molar” or “midrange” theories. Organ and Paine argue that in order to have greater utility for understanding organisations, such midrange theories should do more than explain variance in the components constituting the theory. Instead, linkages to other midrange theories should be established by offering new perspectives on phenomena addressed by these other theories. The authors see obvious parallels between organisational citizenship behaviour and leader-member exchange and find it surprising that early organisational citizenship behaviour conceptualisations did not borrow from the work on leader-member exchange. Both perspectives are based on social exchange, and whereas organisational citizenship behaviour can be seen as an employee’s contribution to the organisation resulting from a relationship of trust with the organisation, the employee’s sentiments about the organisation could derive from the exchange with the leader. Fairness perceptions appear to be central both to leadermember exchange (e.g. Scandura, 1999) and organisational citizenship behaviour (e.g. Williams and Anderson, 1991; Moorman & Niehoff, 1993). Other authors have also seen the utility of linking organisational citizenship behaviour with leader-member exchange. On the basis of social exchange theory, Wayne et al. (1997), expected that the quality of exchange that develops between a leader and follower will influence the latter's behaviour toward the leader. According to Liden and Graen (1980), employees reporting high-quality leader-member exchange relationships make contributions that go beyond their formal job duties, and those reporting lowerquality leader-member exchange perform the more routine tasks of a work group. It follows according to Wayne et al. (1997) that leader-member exchange should be positively related to organisational citizenship behaviour, and results of field investigations have provided evidence of this relationship (e.g. Wayne et. al, 1997, Settoon et al., 1996). This argumentation seems to support the relationship especially between follower reports of LMX quality and follower OCB and supports the general hypotheses that: OCB hypothesis 2: high follower LMX quality will be positively related to follower OCB There are no empirical studies to guide the hypothesis-development regarding the influence of the different dimensions of leader-member exchange on organisational citizenship behaviour. Wang, Law, et Wang (forthcoming) examined the mediating role of leader-member exchange between transformational leadership and organisational citizenship behaviour in the Chinese context using the multidimensional measure of leader-member exchange, but they examined overall leader-member exchange and did not investigate the effect of the individual dimensions. However, the discussions provided by Dienesch and Liden (1986) and Liden and Maslyn (1998) concerning the potential outcomes of leader-member exchange dimensions suggest that all of these dimensions could be related to leader-member exchange. To recall from Chapter 2, Dienesch and Liden (1986) hypothesised that the contribution dimension in a leader- 103 member exchange relationship should influence over the challenge and difficulty of assignments assigned to and accepted by the follower. This is because the superior should have confidence in the ability and willingness of the follower to successfully complete difficult, extensive, or critical tasks. The follower should also be confident in his or her own ability, be willing to accept a larger workload, and be confident that the leader will provide an adequate level of support and advice. There is hence logical support for the linkage between the contribution dimension of leader-member exchange and organisational citizenship behaviour. Furthermore, Dienesch and Liden expect the affect dimension to influence the work atmosphere in general and hence the level of flexibility and emotional support provided to the follower. Once could hence expect the follower to reciprocate to this general support by performing organisational citizenship behaviours. The loyalty dimension is primarily concerned with the degree to which the dyad members protect each other relative to those outside the relationship, and one could hypothesise that performing organisational citizenship behaviours constitutes a means of showing loyalty. Finally, Wang et al (forthcoming), suggest that the followers’ professional respect for their leader is a key condition for leaders to have an impact on their followers and their performance. This discussion suggests that all the leadermember exchange dimensions could be related to OBC, and these dimension-specific relationships will be empirically explored in the present study. Regarding the relationship between leader-member exchange and organisational citizenship behaviour in China, Hui et al. (1999) argue that as interpersonal relationships and guanxi play an important role in China, leader-member exchange, which is an interpersonal variable, should have a strong effect on the employees’ willingness to participate in organisational citizenship behaviours. The authors point out that they expect leader-member exchange to have a similar effect on organisational citizenship behaviour in China as in the United States. The empirical results supported these assumptions. Wang, et al (forthcoming) examined the mediating role of leadermember exchange between transformational leadership and organisational citizenship behaviour in the Chinese context using the multidimensional measure of leader-member exchange, and found that leader-member exchange had a mediating role. The ren qin scale of the Interpersonal relatedness factor of the CPAI (discussed earlier, see p.69) seems to cover attitudes related to wu lun and guanxi discussed earlier in the section dealing with Chinese social relationships (see p. 41). Examples of ren qin items are ‘The more people I know and the better my relations with them, the easier it will be for me to make it in society’ and ‘When people show me respect, I should show them more respect in return’. What was implied in this discussion is that decreasing traditionality and increasing modernity should reduce the importance of deterministic guanxi ties, which will be replaced by more individual factors. One could hence hypothesise that the level of endorsement of traditional Chinese values (measured with the ren qin and modernisation scales) could moderate the relationships between individual and attitudinal factors and traditional role obligations so that individual factors play a more important role in “less traditional” dyads. This view is supported by the study conducted by Farh, Early and Lin (1997), where the level of endorsement of traditional Chinese values significantly moderated the relationship between organisational justice and organisational citizenship behaviour, thus indicating that trust and faith in one’s supervisor are built into the social structure. The level of endorsement 104 of Chinese values seems relevant mainly to the Chinese followers, due both to their cultural background and their role as followers (with stricter role requirements). Thus, it is hypothesised that: OCB hypothesis 3: follower ren qin will moderate the relationship between follower LMX and follower OCB Past research on organisational citizenship behaviour has investigated both leader and follower reports of OCB, without making a clear distinction between these two perspectives. However, in both the leader and follower version of the OCB scale, follower OCB is being evaluated. The problem with the use of self-reports is selfserving bias on the part of respondents who wish to appear to be good citizens (Organ, 1988). In order to get a deeper understanding of the relationship between OCB and LMX, OCB will be measured from both leader and follower perspectives in the present study, without taking for granted that OCB measured from two different perspectives capture the same thing. However, as in both instances, the same follower’s behaviour is being rated, it is hypothesised that: OCB hypothesis 4: follower reports of OCB will be positively related to leader reports of OCB 105 4.3 LMX AND OCB: MEDIATORS AND CONTROL VARIABLES Van Dyne, Graham and Dienesch (1994) identified three basic types of antecedents of organisational citizenship behaviour, which need to be controlled for in order to examine the effect of leader-member exchange on organisational citizenship behaviour: 1) personal factors, including an employee’s affective state of satisfaction with a broad range of job-related dimensions and the individual’s dispositional tendency to approach situations cynically, 2) employee perceptions of situational factors in a workplace, including perceptions of an organisation’s values and perceptions of the motivating potential of jobs, and 3) positional factors, which represent an individual’s membership or position in an organisation and include organisational tenure and hierarchical level. The present study includes measures from all these groups. Personality, values, job satisfaction and leader-member exchange quality could be seen as belonging to the first group. Job attitudes including perceived organisational support and organisation-based self-esteem could be considered as belonging to the second group. Concerning the third group, measures of tenure and work position will be included as control variables. However, specific hypotheses will only be developed for factors that are expected to be related both to leader-member exchange and organisational citizenship behaviour, i.e. the mediators. These include organisational justice, perceived organisational support, organisation-based self-esteem, and job satisfaction. Other variables will be included as controls. By the mid 1990s, a big portion of the empirical literature concerning organisational citizenship behaviour had according to Organ and Paine (1999) concentrated on attitudinal and dispositional predictors of organisational citizenship behaviour. Two hypotheses have guided this research: 1) organisational citizenship behaviour is in part a function of stable dispositions, traits or temperament, and 2) organisational citizenship behaviour depends on the individual’s satisfaction (Organ, 1990). The meta-analysis conducted by Organ and Ryan (1995) showed that the attitudinal predictors including job satisfaction, perceived fairness, affective commitment and leader supportiveness were related to organisational citizenship behaviour. Organ (1990) has suggested that when separate measures of satisfaction and perceived unfairness are considered, the latter will explain more variance in organisational citizenship behaviour. In addition, Moorman and Niehoff (1993) found no relationship between commitment and organisational citizenship behaviour and satisfaction and organisational citizenship behaviour once the relationship between justice and organisational citizenship behaviour was controlled for. Furthermore, Williams and Anderson (1991) found commitment to be unrelated to organisational citizenship behaviour and concluded that organisational citizenship behaviours seem to be result of the fairness of the overall treatment by the organisation. Wayne, Shore and Liden (1997) found that leadermember exchange and perceived organisational support are interrelated and that both are related to organisational citizenship behaviour. Hence, there is some evidence that job satisfaction, organisational justice, perceived organisational support, and leadermember exchange are related to organisational citizenship behaviour (while commitment receives weaker support). Incidentally, these factors have also been found to be outcomes of leader-member exchange (see Chapter 2, p. 37). These factors will be 106 included in the present study and their hypothesised mediating role will be discussed more in detail below. 4.3.1 Organisational justice Previous research has linked fairness/justice perceptions with leader-member exchange and organisational citizenship behaviour (see e.g. Deluga, 1994; Scandura, 1999). As discussed earlier (see p. 89), interactional justice is treated as an antecedent of leadermember exchange in the present study whereas procedural and distributive justice are considered outcomes and grouped under the heading ‘organisational justice’. In Deluga’s (1994) study, perceived fairness emerged as the leader trust-building behaviour most closely associated with organisational citizenship behaviour. In line with these findings, Organ and Konovsky (1989) hypothesise that the extent to which organisational citizenship behaviour is given depends on the cognitive appraisal of fairness of overall treatment by the organisation. Deluga also found a positive relationship between leader-member exchange quality and organisational citizenship behaviour. Furthermore, Moorman, Blakely and Niehoff (1998) found that procedural justice affects organisational citizenship behaviour by influencing perceived organisational support. In addition, previous studies have found that justice perceptions are of importance in the Chinese context, and that they are related to organisational citizenship behaviour (Farh et al., 1997). Procedural and distributive justice have been linked to leader-member exchange by e.g. Keller and Dansereau (1995). Mansour-Cole and Scott (1998) argue that a leader’s influence on the formation of procedural fairness perceptions might best be understood as one of a number of outcomes of the leader-member exchange development process. The results of their study show that followers in high-quality leader-member exchange relationships tend to have higher perceptions of procedural justice and further that highquality leader-member exchange also engenders high expectations for future fair treatment. This means that along with the benefits provided by high-quality leadermember exchange relationships obligations accrue. Lee (2001) also found support for a positive relationship between leader-member exchange and procedural and distributive justice. Furthermore, according to Scandura’s model (1999), higher quality relationship will result in more rewards for followers and hence increased distributive justice. A high-quality relationship is also expected to entail better communications regarding organisational justice concerns and hence increased procedural justice. As leader-member exchange has been found to influence justice perceptions, and justice perceptions have been found to influence organisational citizenship behaviour, it is hypothesised that: OCB hypothesis 5: follower organisational justice will mediate the relationship between follower LMX and follower OCB 107 4.3.2 Perceived organisational support Liden et al. (1997) argue for the importance of examining leader-member exchange relationships along with other social exchange relationships in which organisational participants may engage - such as perceived organisational support (POS; Eisenberger, Huntington, Hutchinson, & Sowa, 1986) when trying to explain work-related outcomes and why individuals contribute to their organisations. This is because support gained from the organisation and not only the leader could create an obligation to reciprocate. Wayne et al. (1997) found that leader-member exchange and perceived organisational support are interrelated and that both are related to organisational citizenship behaviour. The authors argue that leader-member exchange could be a predictor of perceived organisational support as leaders often administer discretionary rewards linked with job performance, which previous research has found likely to affect perceived organisational support (Eisenberger et al., 1986). The authors regard perceived organisational support as being based on a history of rewards that may be administered by an immediate superior (past or present) as well as by managers at higher organisational levels. However, perceived organisational support could also contribute to leader-member exchange in the way that employees who have a history of feeling supported by an organisation may be more likely than others to develop high-quality exchange relationships with their leaders. In their study, Wayne et al. (1997) found leader-member exchange mainly to influence perceived organisational support and not vice versa. Both leader-member exchange and perceived organisational support were found to affect organisational citizenship behaviour. Furthermore, in a more recent study, the results obtained by Wayne et al. (2002) showed that perceived organisational support is related to organisational citizenship behaviour. In light of these arguments, it is hypothesised that: OCB hypothesis 6: follower perceived organisational support will mediate the relationship between LMX and OCB 4.3.3 Organisation-based self-esteem An additional factor that could influence organisational citizenship behaviour is organisation-based self-esteem (OBSE; Pierce, Gardner, Cummings & Dunham, 1989). Organisation-based self-esteem represents self-esteem that is specific to the organisational context. According to Pierce et al. (1989, p. 625) organisation-based selfesteem reflects “the self-perceived value that individual’s have of themselves as organisation members acting within an organisational context…employees with high organisation-based self-esteem should perceive themselves as important, meaningful, effectual, and worthwhile within their employing organisation”. Past research indicates that organisation-based self-esteem is related to organisational citizenship behaviour so that high organisation-based self-esteem individuals are more likely to perform organisational citizenship behaviour than low organisation-based self-esteem individuals (Van Dyne, Vandewalle, Kostova, Latham & Cummings, 2000; as cited in Aryee et al., 2002). Aryee, Tan and Budhwar (2002) linked organisation-based self- 108 esteem to leader-member exchange by proposing that organisation-based self-esteem would moderate the relationship between leader-member exchange and organisational citizenship behaviour and found partial support for their hypothesis. They argue that as low organisation-based self-esteem individuals are more sensitive to external events and more behaviourally reactive relative to high organisation-based self-esteem individuals, low organisation-based self-esteem individuals are more sensitive to the perception of the quality of the relationship with the follower when they consider citizenship behaviours. However, one could also hypothesise that leader-member exchange influences organisation-based self-esteem, as it is conceivable that an employee who has a high-quality relationship with his or leader including mutual perceptions of affect, loyalty, contribution and professional respect should perceive themselves as “important, meaningful, effectual, and worthwhile within their employing organisation”. Although not empirically tested before, it is hence hypothesised that: OCB hypothesis 7: follower organisation-based self-esteem will mediate the relationship between follower LMX and follower OCB 4.3.4 Job satisfaction As mentioned earlier, Van Dyne et al. (1994) identified personal factors, including an employee’s affective state of satisfaction with a broad range of job-related dimensions to form one group of antecedents of organisational citizenship behaviour. Furthermore, the meta-analysis conducted by Organ and Ryan (1995) showed that the attitudinal predictors including job satisfaction, perceived fairness, affective commitment and leader supportiveness were related to organisational citizenship behaviour. According to Tanner et al. (1997), satisfaction, with the job and with the manager, are two important outcomes associated with the quality of the exchange relationship. Tanner et al. (1997), expected that a person enjoying a high-quality relationship dimensions would also be the most satisfied, while the person suffering in the lowest quality relationship would be the least satisfied, with job and manager. As a result, it is hypothesised that: OCB hypothesis 8: follower job satisfaction will mediate the relationship between follower LMX and follower OCB 4.3.5 Control variables Only limited support for the linkage between personality factors and organisational citizenship behaviour was found in the meta-analysis conducted by Organ and Ryan (1995), and the data suggested that affectively toned dispositions predict organisational citizenship behaviour only to the extent that they predict job attitude measures. Hui et 109 al. (1999) also argue that disposition may affect organisational citizenship behaviour via employees’ organisational experiences or perception of organisational reality, as for instance through leader-member exchange. In their study undertaken in a Chinese context, Hui et al. found LMX to mediate the negative effects of negative affectivity on organisational citizenship behaviour. These findings seem to partly contradict Organ’s (1990) suggestion that employees’ dispositional tendencies tend to predominate in determining organisational citizenship behaviour until the individual’s organisational experiences force a conscious appraisal of the type of exchange, social or economic, that defines the relationship with the organisation. As personality measures will be included in the study, mainly as determinants of leader-member exchange, the effect of the personality traits and values that seem most closely related to organisational citizenship behaviour will be investigated. To recall from the previous discussion regarding the antecedents of leader-member exchange, conscientiousness has emerged as the personality dimension most consistently related to performance across jobs (e.g. Barrick & Mount, 1991) and is related to an individual’s degree of self-control and need for achievement, order and persistence. Conscientious individuals are also likely to have the self-discipline required to work independently and to plan and use time effectively (McManus & Kelly, 1999). The importance of conscientiousness in work situations has also been shown in previous empirical studies linking conscientiousness to counterproductive work behaviours, effective job-seeking behaviour, retention, and attendance at work in addition to its link to performance (Judge et al., 1999). Follower conscientiousness hence seems like an important control variable. Judge and Locke (1993, as cited in Judge et al., 1999) found that neurotic employees prone to negative emotions were also more likely to experience dysfunctional jobrelated thought processes (over-generalisation, perfectionism, dependence on others) and hence lower job satisfaction. People experiencing frequent negative emotions at work have also been found to act in ways that estrange them from their co-workers (Brief et al., as cited in Judge et al., 1999). It hence seems plausible that follower neuroticism could have a negative influence on organisational citizenship behaviour. Furthermore, neuroticism could influence the leader’s ratings of organisational citizenship behaviours. A person who scores high on agreeableness can be characterised as highly co-operative, likeable, sociable, and emphatic to others (Judge e al., 1999). Furthermore, it has been suggested that agreeableness may originate in emotional responsiveness to others’ needs (Graziano & Eisenberg, 1997; as cited in Moskowitz & Coté, 1995) and be related to the tendency toward altruism (Wiggins, 1980; as cited in Moskowitz & Coté, 1995). It is hence possible that follower agreeableness will have a positive impact on organisational citizenship behaviour, and also influence the leader ratings of organisational citizenship behaviour. Moorman and Blakely (1995) as well as Organ and Paine (1999) have suggested that the level of individualism-collectivism could affect the definition of and participation in organisational citizenship behaviour. Moorman and Blakely (1995), who studied individualism-collectivism within one culture as an indication of individual differences, 110 suggest and found support for the assumption that since organisational citizenship behaviours are behaviours that support the well-being of the group and since organisational citizenship behaviours usually require the subordination of self-interest, employees who hold more collectivist values would be more likely to perform organisational citizenship behaviours. Follower collectivism is hence expected to be positively related to follower organisational citizenship behaviour, whereas follower individualism is expected to be negatively related to follower organisational citizenship behaviour. Van Dyne et al. (1994) identified positional factors, which represent an individual’s membership or position in an organisation and include organisational tenure and hierarchical level as a group of organisational citizenship behaviour antecedents. Farh, Zhong and Organ (forthcoming) argue that organisational contextual variables, such as job function, managerial level and ownership, influence organisational citizenship behaviour by defining the roles and responsibilities in a job and by providing or constraining opportunities to perform organisational citizenship behaviours. As the definition of job breadth is included in the analyses, the impact of some contextual factors is hence indirectly measured. Regarding opportunities to perform organisational citizenship behaviours, it is argued, for example that assembly workers have few opportunities to perform organisational citizenship behaviour in the form of helping coworkers. Tenure and work position will hence be included as control variables. In sum, the following follower characteristics will be included as control variables: age, gender, conscientiousness, neuroticism, agreeableness, collectivism, individualism, tenure and work position. The rater’s level of neuroticism and agreeableness will also be measured. 111 4.4 SUMMARY: OCB RELATED HYPOTHESES The eight hypotheses developed in this chapter regarding the relationship between follower LMX and follower OCB measured from a leader’s perspective are listed below. OCB hypothesis 1: follower perceptions of job breadth will moderate the relationship between follower LMX and follower OCB ................................................ 101 OCB hypothesis 2: high follower LMX quality will be positively related to follower OCB ............................................................................................................ 102 OCB hypothesis 3: follower ren qin will moderate the relationship between follower LMX and follower OCB............................................................................. 104 OCB hypothesis 4: follower reports of OCB will be positively related to leader reports of OCB........................................................................................................ 104 OCB hypothesis 5: follower organisational justice will mediate the relationship between follower LMX and follower OCB .............................................................. 106 OCB hypothesis 6: follower perceived organisational support will mediate the relationship between LMX and OCB ......................................................... 107 OCB hypothesis 7: follower organisation-based self-esteem will mediate the relationship between follower LMX and follower OCB ............................ 108 OCB hypothesis 8: follower job satisfaction will mediate the relationship between follower LMX and follower OCB .............................................................. 108 An overview of the hypotheses is presented in the figure below. 112 Figure 3: Overview of OCB-related hypotheses Follower LMX Hypothesis 2 Moderators* Hypotheses 1 & 3 Job breadth Mediators Hypotheses 5 - 8 Follower OCB Hypothesis 4 Justice POS OCB, follower perspective Follower LMX Satisfaction Ren qin OCB, leader perspective OBSE * Moderators hypothesised to influence the direct relationship between LMX and OCB 113 5 METHOD This chapter begins by describing the sample, including participating companies and respondents, as well as the questionnaire administration procedure (section 5.1). Then, measurement issues are addressed, including the measure-selection approach, validity and reliability, cross-cultural equivalence and bias, and multidimensionality and perspective (section 5.2). In the following section (5.3) the measures and their validation through confirmatory factor analyses are presented. Finally, the analytic procedures with the aid of which the hypotheses will be tested are described (section 5.4). 5.1 SAMPLE AND PROCEDURE Data were collected in the Shanghai area in July 2001. 13 companies and 318 employees took part in the study. In this section, the procedures related to the administration of the questionnaire are described and information about the participating companies and employees is given. 5.1.1 Participating companies Data were collected from employees at 13 different companies in the Shanghai area. Australian, British, Finnish and Swedish companies operating in China were selected to represent “Western” companies. Subsidiaries representing these countries were selected due to both convenience and theoretical reasons. Convenient is the fact that the English language is either spoken or widely learned in these countries. This facilitated the research process, as the questionnaire did not have to be translated into many languages. The English and Mandarin versions were judged to be sufficient. Access to Finnish companies was also likely to have been facilitated by my Finnish origin. Furthermore, the selection of these countries is in accordance with the purpose of the present study, which is to examine intercultural interaction between culturally distant groups. Using e.g. Hofstede’s cultural cluster concepts, many Asian countries, including China, have been identified as belonging to the same cultural cluster characterised by low individualism and high power distance, whereas the West (including Europe and Australia) is characterised by higher individualism (cf. e.g. Hofstede & Bond, 1988). This study is based on the assumption that one could expect there to be more differences on some characteristics between the Western and Chinese groups of individuals than within these groups. This assertion could be justified, despite the extremely rough West-China division, as studies conducted e.g. by Sagiv and Schwartz (2000) and Hofstede and Bond (1988) indicate that these regions have very different cultural profiles. 114 The China-location was chosen due to the alleged and above mentioned cultural distance from the West, due to the great interest demonstrated by companies to invest in China (which facilitates access) and due to the fact that there is some evidence that the theoretical framework employed in this study is of relevance in the Chinese context (see earlier discussion on p. 39). Due to convenience, it was decided to concentrate on companies operating in the Shanghai area so that all companies could be personally visited with greater ease and less costs. The diversity of China is a well-known fact (e.g. Child & Stewart, 1997) and the Shanghai sample is not expected to be representative of the entire Chinese population. What should be borne in mind, however, is that the focus in the present study is not on Chinese behaviour per se but on leader-follower interaction in an intercultural context. None of the individuals working in this intercultural context are expected to represent their “typical” countrymen who are working in their respective home countries. The individuals studied in the present study form a particular subgroup that is well represented in the Shanghai area that currently attracts a very large portion of foreign investments, foreign employees and employees from other parts of China. In an ideal case, a large number of respondents from each company would have been obtained, as this would have enabled comparisons across companies and a more thorough analysis of potential confounding variables. However, in practice Western multinationals are increasingly decreasing the number of expatriates (e.g. Wang, 2001), and most subsidiaries employ only a handful expatriates. Therefore, a large number of companies had to be contacted. The decision was made to concentrate on studying Western companies that had made large investments in China, and hence employ a larger number of expatriates than e.g. sales subsidiaries often do. Therefore, companies with mere sales subsidiaries but no production in China were excluded from the study. The companies that were contacted about participation in the study hence mainly belonged to the secondary industry, concerned with the refining, processing or manufacturing of goods. In order to identify potential companies to participate in the study, directories of Australian, British, Finnish and Swedish companies operating in China were obtained and Internet searches were carried out. Companies that filled the criteria mentioned above were contacted via email or fax. Around 70 companies were contacted. In the letter sent to the general manager, the research project was described briefly and the practical implications of participation outlined. The companies that agreed to participate were promised a general report of the outcomes of the study. All in all, 13 companies agreed to take part in the study. These companies represented a variety of industries from the secondary industry including telecommunications, forestry, construction, engineering, chemicals, food and beverages. Five of these companies were Finnish, four Swedish, two British and one Australian. As the number of respondents from each company differed a lot, it seems relevant to describe the companies in relation to the number of respondents. 55 percent of the studied dyads worked in a Finnish company, 34 percent in a Swedish company, 8 percent in an Australian company and 3 percent in a British company. The majority of the studied dyads (33%) were from big subsidiaries employing over 650 persons. 26 percent were from subsidiaries employing 141- 240 people, 11 percent from subsidiaries employing 115 81 – 140 people, 22 percent from subsidiaries employing 20 - 80 people and 7 percent from subsidiaries employing under 20 people. Many of the respondents (74%) were from subsidiaries employing 6-8 expatriates, 12 percent of the respondents were from subsidiaries employing one expatriate, 9 percent of the respondents were from subsidiaries employing 2-4 expatriates, and 5 percent of the respondents were from subsidiaries employing more than 20 expatriates. The inclusion of a large number of companies representing different countries and industries creates the potential problem that differences and relationships detected between the studied factors could be due to country, industry and company level influences and not the individual-level influences that are in focus in this study. (As mentioned earlier, an ideal case would have been to have a large number of participants from each company). This is why the data stemming from different companies were compared and checked to see whether large differences between companies could be detected. This was done by calculating and comparing the standard deviations of the major variables in the study. Alarmingly high differences between companies could not be detected concerning the companies employing a large number of employees. More variation vas found with regard to the very small companies, which could be expected as the means in this case reflect the individual responses of a handful of employees that can fluctuate dramatically. The fact that there are certain company-level differences does not necessarily undermine the importance of the individual level influences that are arguably important in this study. It could be that certain types of job attitudes and values prevail in certain countries, industries and companies if these industries and companies attract people with particular predisposition and attitudes. In this case, it is hoped that the variables included in the study capture these individual differences that could be reflected as company-level differences. 5.1.2 Questionnaire administration Two types of questionnaires were used in this study: a leader version and a follower version. The contents of these questionnaires were very similar and identical concerning the items related to personality and values. Both questionnaires were available in English and in Mandarin and contained around 350 questions (see Appendix 1, p. 277) for the English versions of the questionnaires). Measurement issues pertaining to the content of the questionnaire and the cross-cultural validation of the items will be discussed in section 5.2. (see p. 120). Here it suffices to say that each measure and hence all the items included in the questionnaires have been carefully considered giving precedence to well-established and cross-culturally validated measures over new and not cross-culturally tested measures. The majority of the measures selected have Western origins, but most of them have been used in China by Chinese researchers, which gives some assurance of cross-cultural applicability, or at least face validity (although further tests of equivalence and validity will be undertaken with the current sample). In practical terms, it means that the majority of the measures were available both in English and in Mandarin at the start of the research. The remaining measures were translated into Chinese and back translated into English. 116 Before distributing the questionnaires in China (Shanghai), brief preliminary tests were conducted in Finland and Australia, in which a handful of Australian, Finnish and Chinese respondents were asked to fill in the questionnaires and give feedback so that any possible problems and ambiguities regarding the questionnaires could be detected. As a result of these tests, minor alterations were made in wording and layout to improve the legibility of the questionnaire and to facilitate its completion. The completion of the final questionnaire required approximately one hour. I personally visited all the participating subsidiaries in July 2001 in order to increase commitment to and participation in the study. This way, the research purposes could be clarified and the administration of the questionnaires facilitated. The normal procedure was to meet the general manager of the subsidiary (or his representative) and to describe the purpose of the study as well as the practical implications of participation. With regard to the selection of participants, the primary aim was to get access to all expatriates, simply due to the scarcity of expatriate managers. In addition to these expatriate managers, the goal was to select around the same number of Chinese managers occupying similar positions in the organisation as the expatriate managers in order to facilitate comparisons between Western and Chinese managers by eliminating known sources of bias. The employees working with these leaders who were included in the study were selected randomly. In the subsidiaries employing more than 20 employees, the general manager often assigned a person to assist me in identifying the respondents and in distributing the questionnaires. In the smaller companies, the subsidiary manager gave this assistance personally. With the aid of the assisting person who knew who works with whom in the company, a name list of participants was created. The list contained the names of the leaders (both expatriate and local Chinese managers) matched with up to three Chinese followers chosen randomly. Identification codes were also created to match the leader and follower data during subsequent data analysis. After the creation of the list, the names and the identification codes were written on the questionnaires. The questionnaire contained both the name of the recipient of the questionnaire as well as the name(s) of the persons the recipient was asked to evaluate. In many companies, the questionnaires were distributed during my visit. In companies where the questionnaires could not be distributed immediately, detailed written instructions concerning questionnaire distribution were provided to the assisting person to ensure uniform procedures in different companies. All respondents were given questionnaires with envelopes to return to the researcher and confidentiality was assured. An advantage of being closely involved in the questionnaire distribution process and having access to the name list was that I was later able to contact the people to whom the questionnaires had been distributed and urge them to respond when necessary. Schaffer and Riordan (2001) stress the importance of ensuring equivalence of the procedures related to questionnaire administration when conducting cross-cultural research. This (and following a number of other recommendations) should increase the likelihood that any differences detected between cultural groups are due to cultural differences and not differing procedures. This is naturally of importance in any study involving multiple companies, not just in cross-cultural research. In other words, 117 consistency in terms of questionnaire formats, timing, levels of rapport and technical procedures should be assured. As indicated in the discussion above, consideration has been given and measures have been taken in the present study to ensure uniform procedures in the participating companies. What should also be noted is that as the representatives from both cultures are from the same companies, there is not a significant chance that individuals representing different cultures as a group would have been treated differently during the research process. It is hence assumed that any possible group-level inconsistencies concerning questionnaire administration would be at a company-level. 5.1.3 Respondents A total of 318 employees participated in the study, of whom 85 leaders (48 Chinese and 37 Western) and 233 followers (all Chinese). The response rate was 65 percent. Each leader was asked to evaluate up to three followers and 232 matched manager-follower dyads (154 completely Chinese and 78 Western-Chinese dyads) were obtained for analysis (exact number varies somewhat due to missing values). The questionnaires for which matching data from the dyadic partner was not obtained were used for individuallevel analyses. Sample size will vary considerably with regard to leaders. This is a result of the fact that each leader is asked to evaluate up to three followers. A leader’s perception of each of the follower constitutes one observation and can hence be up to three times higher than the number of leaders who participated in the study. This is the case for leader reports of LMX and OCB. In other cases, the sample size is determined by the number of leaders as individuals. This is the case in measures of values and personality as well as the leaders’ perception of e.g. organisational support. Demographic information regarding the respondents is given in the tables below, followed by a brief description containing additional information. The Chinese followers are described first continuing with the Western and Chinese leaders. Table 1: Demographic information on the Chinese followers Chinese followers Gender Age Education Education abroad Language skills Cross-cultural training Position Tenure in company Intercultural dyad experience Dyadic tenure Interaction intensity, weekly 62% Male 65% <30 years 55% Bachelor 15% Yes 87% English 48% Yes 24% lower management 26 months, average 26 months, average 19 months 8 times 5% >40 years 11% Master 19 hours, average 36% technical experts 3 hours, average 118 The 233 Chinese followers who participated in the study were predominantly males and between the ages of 20 and 56. The employees occupied positions at multiple levels in the organisation: 24% lower management, 36% technical experts, 19% administrative, and 4% workers. Almost half of the followers had received some form of cross-cultural training and more specifically 25% language training, 16% cultural orientation, and 14% training in intercultural encounters. The average time for working in an intercultural dyad (including earlier cross-cultural work relationships) was about two years and two months (22% had never worked in an intercultural dyad, 18% under a year, 19% for 1-2 years, 11% 2-3 years, and 26% for over 3 years). 63 % of the followers could speak the mother tongue of their leaders and 60 % of the leaders could speak the mother tongue of their follower (according to the follower reports). (These relatively high numbers are naturally due to the large proportion of completely Chinese dyads). Table 2: Demographic information on the leaders Gender Age Education Education abroad Language skills Cross-cultural training Position Tenure in company Internat. assignments Intercultural dyad exp. Dyadic tenure Interaction intensity Western leaders Chinese leaders 98% Male 8% <30 years 30% Bachelor 46% Yes 40% Chinese 40% Yes 24% GM 3 ½ years aver. 2 years, aver. 4 years, aver. 1 ½ years 19 times 71% Male 48% <30 years 58% Bachelor 25% Yes 90% English 33% Yes 2% GM 3 years aver. 1 ½ years aver. 7 months aver. 1 ½ years 11 times 22% >50 years 38% Master 12 hours aver. 8% no previous 5 hours a week 4% >50 years 25% Master 7 hours aver. 40% no previous 4 hours a week Of the 85 leaders who participated in the study, 56 % were Chinese and 44% Western (35% of these Finnish, 19% Swedish, 16% had English as their mother tongue, and the rest were from a variety of European countries). In both groups, the majority of the leaders were males. The Chinese leaders tended to be younger than the Western leaders. The Western leaders occupied the majority of the general manager positions whereas Chinese leaders occupied the majority of the functional head positions. The remaining leaders occupied middle and lower management positions. The Chinese leaders tended to have spent less time in their positions: 19% had occupied their present position for 6 months or less when the corresponding percentage for the Western leaders was 11. The Western leaders tended to be much more internationally experienced than the Chinese leaders. The Western leaders had on average spent over two years on international assignments before their present position (8% had no previous foreign assignments and 25% over 4 years) and the Chinese leaders just under one and a half years (40% had been on no foreign assignments and 4% over 4 years). On average, the Chinese leader had been working in previous intercultural dyads for only about 7 119 months (67% never) and the Western leader for almost 4 years (35% never). With regard to cross-cultural training, 33% of the Chinese and 40% of the Western managers had received cross-cultural training (average time 7 hours for Chinese and 12 hours for Western leaders) and more specifically 8% / 25% (first percentage for Chinese leaders, second for Western leaders) environmental briefing, 10% / 19% language training, 17% / 22% cultural orientation, and 19% / 8% training in intercultural encounters. The leaders had hence, in average, received fewer hours of cross-cultural training than the followers had. An interesting discovery is also that followers report much lower interaction frequency and duration than leaders. 120 5.2 MEASUREMENT ISSUES This section begins with a brief description of the measure-selection philosophy in the present study (section 5.2.1). The following section deals with the issue of validity enhancement of the measures (section 5.2.2). Thereafter, the important concepts of cross-cultural equivalence and bias of measures are discussed (section 5.2.3). Finally, the multidimensionality of the employed measures and the measurement perspective is discussed (section 5.2.4). 5.2.1 Western or Chinese measures? The literature review resulted in an abundant number of measures that at first glance seemed appropriate to capture the different concepts of interest in the present study. A special effort was made to identify indigenous Chinese measures and measures that have been used in a Chinese context in addition to the Western measures. This enabled an interesting comparison between measures and resulted in a deeper awareness of cross-cultural differences between measures (and their underlying concepts) as well as of potential weaknesses within measures. This also contributed to a deeper understanding of the concepts themselves. However, as already mentioned in the discussion about the applicability of the LMX framework in China (see p. 51) an opinion that started to take form during the research process is that the Western subsidiary may not provide the most suitable context for the use of indigenous Chinese measures (at least regarding the specific measures identified for this study) due to possible acculturation taking place at the individual, subsidiary and national levels. In fact, a Chinese professor in organisational behaviour stated that he would expect the indigenous Chinese organisational behaviour measures to be “too Chinese” for this context. An additional point that was considered in the choice of measures was the unit of analysis in the study: the dyad. The main unit of analysis in this study is the intercultural dyad, involving both a Western and a Chinese respondent. A part of the study entails establishing the degree of similarity between leader and follower and examining their compatibility with each other. This process requires the use of the same measure for leaders and followers instead of using, for instance, a Western measure for Western respondents and a Chinese measure for Chinese respondents. Equivalence of measures is also required for comparison of intracultural versus intercultural dyads. The decision was hence made to use the same measures for Western and Chinese respondents. The use of the same measure for Chinese and Western respondents raises the concerns for cross-cultural bias and equivalence that will be discussed later in this section (see p. 126). What must also be ensured is that the measure is valid in both groups. It should be noted that in the present study, good applicability within the cultural group is considered to be of higher importance than modifying measures to show maximal crosscultural equivalence (and potentially losing cultural specificity). This is due to the fact that the primary aim of this study is not to compare Chinese and Western individuals, 121 but the focus is on understanding leader-follower relations. Such a comparison would naturally be of interest, but at this stage where the LMX construct has been used in the Chinese context to a limited extent and never in an intercultural context, it seems more relevant to develop measures that are relevant in either intracultural Chinese or intercultural Western/Chinese dyads separately. The optimal solution, enabling both indepth analysis and cross-cultural comparison would naturally be to achieve simultaneous equivalence and in-group applicability. Although it was just argued that the present study is not a “China study” in a strict sense, a few remarks concerning some empirical problems encountered by researchers in China-related research could be made as the study still takes place in the Chinese context. According to Goodwin and Tang (1996), method problems in China research include the over-reliance on self-report methods instead of using behavioural measures, the dependence on college students as respondents, the concentration on Maritime China leaving the diversity of China highly unexplored, and the fact that the majority of China research has been conducted by Americans. Smith and Wang (1996) raise concerns for the validity of studies using Chinese respondents using concepts and measures designed in Western cultures. Validity could also be affected by the low Chinese familiarity with questionnaires and rating scales, which could lead the Chinese respondents to choose central categories on rating scales in order not to take up extreme positions. Furthermore, questionnaires may be filled invalidly or not at all if insufficient trust has been established between the researcher and the respondent. How these concerns are addressed in the present study is and has been reported in this chapter. Each measure selected for this study has been carefully considered taking into account the points made above and giving precedence to well-established and cross-culturally validated measures over new and not cross-culturally tested measures. The majority of the measures selected have Western origins, but most of them have been used in China by Chinese researchers, which gives some assurance of cross-cultural applicability, or at least face validity. Further tests of equivalence and validity will be undertaken with the current sample. One indigenous Chinese personality measure (the CPAI) has been included in the study, as the measurement of personality seems to be very culturebound. This measure has also been tested on Western respondents. (In the case of personality, both a Western and Chinese measure was employed and both of the measures were used on all respondents). Previous cross-cultural use is certainly no proof of the universal nature of these measures, but the advantage of using these rather well known measures is that their strengths as well as weaknesses are well reported. It is not argued that the measures selected for this study are equally well suited for all respondents with different cultural backgrounds. However, they should be of at least some relevance to all respondents. Whether this results in derived etics, as hoped or imposed etics, as feared, is for the reader to judge. 5.2.2 Validity and reliability Validity and reliability are two related and important aspects of precision of measurement. Reliability refers to the reproducibility of a measurement. Validity refers 122 to the agreement between the value of a measurement and it’s true value. These two concepts are related: measurements can be reliable but not valid, but a valid measurement must be reliable (e.g. Hopkins, 2000). However, reliability and validity are often dealt with separately as bringing the two concepts together is mathematically difficult (Hopkins, 2000). This section discusses validity and reliability in general, as well as the procedures undertaken in this study to report and enhance validity and reliability. The next section on cross-cultural equivalence and bias (see p. 126) deals with these issues in the context of cross-cultural studies. a) Validity The methodological literature contains a wide variety of labels that are used to describe the validity of measures. Validity was traditionally subdivided into three categories: content, criterion-related, and construct validity (see e.g. Brown, 1996). However, all three types of validity are now often taken to be different facets of a single unified form of construct validity (cf. e.g. Trochim, 2003). Regardless of how construct validity is defined, there seems to be no single best way to study it and it should be demonstrated from a number of perspectives (c.f. e.g. Trochim, 2003). Trochim (2003) makes a distinction between two broad categories of construct validity: a) translation validity and b) criterion-related validity. a) In translation validity the focus is on whether the operationalisation is a good reflection of the construct. Face validity and content validity, where the operationalisation is checked against the relevant content domain for the construct are subcategories of translation validity. This approach is definitional in nature as it assumes that one has a good detailed definition of the construct and that the operationalisation can be checked against it. As the present study relies on previously defined constructs and well-established measures that have been used both in the West and China, it is assumed that evidence of sufficient translation validity exists. b) In criterion-related validity, it is examined whether the operationalisation behaves the way it should given the theory of the construct. This is a more relational approach to construct validity, where the performance of the operationalisation is checked against some criterion. Predictive, concurrent and convergent validity are regarded by Trochim (2003) as different types of criterion-related validity. Predictive validity concerns the operationalisation's ability to predict something it should theoretically be able to predict. This type of validity can be assessed a posteriori regarding the LMX construct by examining the extent to which support for the hypothesised outcomes is gained. Predictive validity for the other operationalisations will not be established or discussed. Concurrent validity concerns the operationalisation’s ability to distinguish between groups that it should theoretically be able to distinguish between. This type of validity cannot be assessed in the present study. Convergent validity concerns the degree to which the operationalisation is similar to (converges on) other operationalisations that it theoretically should be similar to. A common method for establishing convergent validity is to compare factor loadings obtained from exploratory or confirmatory factor analyses with factor loading that would be expected from theory (e.g. Liden & Maslyn, 1998). The confirmatory factor analysis approach that is implemented in the present 123 study is described later in this section. Convergent validity can also be tested by examining the correlation between two measures that arguably measure the same construct (e.g. De Vellis, 1991). Although this study is based on the multidimensional measure developed by Liden and Maslyn (1998), the items of the widely used LMX7 measure were also included in the study for validation purposes. The high correlations between the LMX-MDM and LMX7 measures (both the English and Chinese version measured from both leader and follower perspective) gave some evidence of convergent validity. (In this sample, the correlation between the LMX7 and LMX-MDM composites was .54 for the Chinese leader measures and .67 for the English versions and .70 for the follower measures). Discriminant validity concerns the degree to which the operationalisation is not similar to (diverges from) other operationalisations that it theoretically should be not be similar to. Discriminant validity is addressed through confirmatory factor analyses in the present study. These will be discussed more in detail below. Both individual and overall confirmatory factor analyses (CFAs) using maximum likelihood techniques with LISREL 8.3 were conducted to assess the factor structure and convergent and discriminant validities of the perceptual constructs employed in the study (i.e. LMX, OCB, perceived similarity, organisational justice, inrole performance, perceived organisational support and organisation-based self-esteem). Separate confirmatory factor analyses were conducted for the English and Chinese measures (the rationale behind this will be discussed in the next section). Confirmatory methods instead of exploratory techniques are recommended when an a priori structure can be hypothesised (cf. Liden & Maslyn, 1998) and were used since all these constructs and their measures are well established. It could be noted that most of the a priori theoretically defined multidimensional attitudinal constructs were identified in the individual confirmatory factor analyses both for the Western and Chinese respondents. However, in order to obtain more robust measures of constructs fitting the data better, items with weak factor loadings, often combined with cross-loadings onto other dimensions, were deleted from some measures. In the case of multidimensional measures, the elimination of items was conducted so that one weakly loaded item per dimension was deleted in order to keep the proportions of the scale intact. This procedure, often combined with freeing some error covariances between items, usually yielded acceptable fit statistics in terms of chi-square/df –ratio, RMSEA, CFI and GFI. The p-value, however turned out to be low and did not exceed the recommended .05 in most of the analyses, which means that the statistical significance of the results could be questionable. Furthermore, it should be noted that freeing error covariances is not unproblematic. The correlation of error terms could be interpreted to include common method factors (Bollen, 1989), but it is however difficult to separate common method errors from bad convergent and discriminant properties (cf. Ehrnrooth, 2002). Despite these deficiencies with many of the models, the CFAs normally enabled an improvement of the constructs. A further value in itself is openly demonstrating the weaknesses of some measures. Confirmatory factor analyses were not conducted for the personality and value measures for two reasons: Firstly, the validity and cross-cultural generalisability of the five-factor model of personality and Schwartz value-model has been demonstrated in a large number of studies with a considerable sample size. Secondly, due to the large number of 124 items in the personality and value measures (the Chinese personality assessment inventory, CPAI, has 90 items, the NEO-FFI measure of the five-factor model of personality 60 items, and the Schwartz value survey 53 items) an inclusion of all of them would have lead to an unacceptable sample-size-to parameter ratio and hence potentially unreliable parameter estimates. A sample-size-to parameter ratio of 5 is recommended by Bentler (1985, as cited in Settoon et al., 1996). In fact, the number of parameters would have been greater than the number of respondents as only 37 Western leaders and 78 intercultural dyads took part in the study. As a result, only those personality and value factors for which very low internal consistency reliability estimates (α) were obtained, were further examined in order to detect and correct some of the reliability and validity problems with these measures. In these analyses, each personality and value factor was analysed separately (i.e. as one-factor models). In addition to examining the convergent validity of the employed perceptual constructs through individual confirmatory factor analyses (i.e. measuring only one construct at a time), the discriminant validities of the attitudinal measures (perceived similarity, LMX, OSE, POS, justice, OCB) were assessed with overall confirmatory factor analyses that included the items from a number of these measures in different combinations. The ideal case would have been to include all items of all measures in one analysis, but this would have led to an unacceptable sample-size-to parameter ratio. In these analyses, the shortened versions (when relevant) of the constructs obtained through the individual confirmatory factor analyses were used. In order to demonstrate discriminant validity, comparative confirmatory factor analyses were conducted. In these analyses, a model where the items loaded on the theoretically assumed factors were compared to a model where all items (representing different constructs) loaded on the same factor. Support for some level discriminant validity was gained if the multifactor model showed better statistical fit than the one-factor model. As an example, Wayne et al. (1997) used this procedure to demonstrate the distinctiveness of LMX and POS. The use of confirmatory factor analysis for assessing construct validity is according to my interpretation in line with the logic behind the pattern matching approach advocated by Trochim (1985). Trochim (2003) describes a pattern as any arrangement of objects or entities. All theories imply some pattern, but theories and patterns are not the same thing. In general, a theory postulates structural relationships between key constructs. A pattern of expectations can be developed from this formula by generating predicted values for one of these variables given fixed values of the others. Not all theories are stated in mathematical form, especially in applied social research, but all theories provide information that enables the generation of patterns of predictions. The pattern matching advocated by Trochim involves an attempt to link two patterns, where one is a theoretical pattern and the other is an observed or operational one consisting of the data. To the extent that the theoretical and observational patterns match, one can conclude that the theory and any other theories that might predict the same observed pattern receive support. Furthermore, pattern matching implies that more complex patterns, if matched, yield greater validity for the theory (Trochim, 2003). Structural equation modelling seems well suited for pattern matching, as the fit indices indicate how well the model fits the data. Convergent and discriminant validity is established through individual and overall confirmatory factor analyses and predictive validity through the models that examine the relationships between the different constructs. According to 125 Trochim (2003), one advantage of the pattern matching approach is that it is more general and flexible than e.g. the multitrait-multimethod matrix (MTMM, Campbell & Fiske, 1959; as cited in Trochim 2003) as it does not require the measurement of each construct with multiple measures. Second, it treats convergence and discrimination as a continuum instead of treating it in a dichotomous way. Third, this approach makes it possible to estimate the overall construct validity for a set of measures in a specific context (instead of estimating the construct validity for a single measure). b) Model fit An indication of construct validity can be obtained by assessing and comparing the coefficients in measurement models that show acceptable fit. Few researchers seem to agree on which index provides the best estimation of model fit (cf. Gierl, Rogers & Klinger, 1999). As a result, there is an increasing trend to utilise multiple fit indices that reflect different aspects of the model fit. The following criteria for assessing model fit will be used in the present study: χ2/df <3, RMSEA <.08, GFI >.80, CFI >.80 (see Appendix 2, p. 312) for a presentation and discussion of these fit indices). Jöreskog and Sörbom (1993) suggest the following additional criteria for judging confirmatory factor model satisfaction that will be used in the present study: p-value for the chi-square statistics >.05, CN >N as well as item R2>.20, and item estimate t-value >2.0. (at a significance level of 5%, at 10% t=1.64 is the threshold value). A model that shows very good fit to the data is expected to meet every criterion, but a model that meets most, but not all, of the criteria will not automatically be rejected. Although the final model may not demonstrate perfect fit, at least it will enable improvement of the measure as well as clarify its possible deficiencies. Regarding the problem of choosing from among two or more competing models, the choice of which procedure to use depends on whether or not the competing models are "nested" within one another (Jöreskog & Sörbom, 1993). Chi-square difference will be examined for comparisons of nested models. In the general case of selection of one model among several (more than two) models, AIC and CAIC will be used to facilitate model selection in the present study. c) Reliability The Cronbach’s alpha coefficients (α) will be reported for the measures employed in the present study as indicators of internal consistency reliability (i.e. the reliability of items as reflectors of their respective constructs). The threshold of .70 is recommended by Nunnally (1978). In addition, reliability will be estimated through the confirmatory factor analyses described above.(A few more words on reliability can be found in Appendix 2 on p. 313). 126 5.2.3 Cross-cultural equivalence and bias Studies involving the examination of different cultural groups face additional challenges threatening the validity of the research as compared to studies undertaken in an intracultural setting. Cross-cultural equivalence and bias are major concerns in crosscultural studies (cf. e.g. van de Vijver & Leung, 1997; Riordan & Vandenberg, 1994). Although the primary aim of this study is not to compare Chinese and Western individuals, equivalence of measures is vital in the examination of intercultural dyads that involve establishing the level of similarity between a Western leader and a Chinese follower. Cross-cultural bias and equivalence is not only a concern at a dyad level, but in all analyses entailing comparisons between Western and Chinese respondents. This section will discuss cross-cultural bias and equivalence in data analysis largely following the highly regarded and frequently quoted book “Methods and data analysis for cross-cultural research” written by van de Vijver and Leung (1997). Organisational and cross-cultural researchers are often interested in comparing groups to make statements as to the role of group differences on some specific outcome. Regardless of the type of statistical analysis (e.g. test of mean differences, a correlation test, or a descriptive comparative statement), it is implicitly assumed that the measurement properties of the measure on which the comparison is conducted are equivalent or invariant across group. This assumption may not necessarily hold (cf. e.g. Vandenberg & Self, 1993, van de Vijver & Leung, 1997). If there is no evidence indicating presence or absence of measurement equivalence, then the basis for drawing scientific inference is severely lacking: findings of differences between individuals and groups cannot be unambiguously interpreted (Horn & McArdle, 1992). In other words, equivalence (or the absence of bias) is required in making valid cross-cultural comparisons (e.g. van de Vijver & Leung, 1997). Equivalence is closely linked with the concept of bias: scores are equivalent when they are unbiased (van de Vijver and Leung, 1997). However, equivalence refers to the measurement level at which scores can be compared across cultures whereas bias indicates the presence of factors that make the validity of cross-cultural comparisons questionable. According to van de Vijver and Leung (1997), equivalence can occur at three levels, which are hierarchically related to each other: the construct level, the measurement unit level and the score level (these are discussed more in detail in Appendix 2, p. 314). Bias can occur at multiple stages of a study including 1) the formulation of hypotheses and conceptualisation of theoretical constructs, 2) the design of the study and c) data analysis. Van de Vijver and Leung (1997) define bias as a generic term for all nuisance factors that threaten the validity of cross-cultural comparisons. Construct bias is characterised by dissimilarities in the operationalisation of the concept across cultures. One type of construct bias occurs when the issues studied in one culture are only of minor relevance in the other culture. Method bias stems from incomparability of the samples, instrument characteristics to which individuals from different cultures react in a consistently different manner, or differences in the administration of the instrument. Item bias is caused by anomalies at the item level such as poor translation and wording, incidental differences in the response scale and incidental inappropriateness of item content. In the case of method and item bias van de Vijver and Leung (1997) introduce a distinction between uniform and nonuniform bias. 127 Uniform bias refers to influences that are more the less the same on for all score levels (e.g. when a measure of height consistently shows 1 cm too much for one group). Nonuniform bias refers to influences that are not identical for all score levels (e.g. for one group 1 cm is actually 1.1 cm, which means that cross-cultural comparisons involving tall people will be more distorted). Although the importance of equivalence in cross-cultural comparisons is agreed upon by most researchers, Schaffer and Riordan (2001) found, in a review of 117 crosscultural research studies in the management field published between the years of 1995 and 2001, that only 29% of the studies in the sample described procedures related to measurement equivalence. The following steps to deal with and report cross-cultural equivalence and bias will be taken in the present study: Firstly, construct bias is addressed by relying on constructs that have already been applied both to a Chinese and Western context. This should reduce the potential for incomplete overlap of the definition of the construct across cultures, differential appropriateness of test content, poor sampling of all relevant behaviours and incompleteness of the coverage of the construct listed by van de Vijver and Leung (1997) as sources of construct bias. Secondly, cross-cultural differences in the factor structures of the different measures will be examined. This means that although some level of similarity of constructs across cultural groups is expected based on previous research, this is not taken for granted but assessed through confirmatory factor analyses. Regarding method bias, the fact that the Chinese and Western respondents were employed in the same companies, visited by the same researcher and subjected to similar questionnaire administration procedures should reduce many potential sources of method bias. However, differential response styles (e.g. acquiescence or the tendency to agree with statements regardless of their content, or the tendency to respond neutrally to survey items) and lack of comparability of samples (great demographic differences between Western and Chinese leaders found in the present study) are potential sources of method bias. In order to increase comparability of samples, the possible individual-level comparisons will take place between Western and Chinese leaders (while controlling for demographic differences) without including all the Chinese respondents (both leaders and followers) in the comparisons with Western leaders. The effects of possible method bias hence have to be borne in mind during the interpretation of the results: method bias usually affects scores at the level of the whole instrument and can e.g. be found as significant effects for cultural groups in t-test (van de Vijver and Leung,1997). This means that if significant cross-cultural differences are detected, these could be a result of both valid differences and method bias effects. Item bias will be dealt with a posteriori by item bias analysis. Regarding the assessment of (measurement) equivalence, Schaffer and Riordan (2001) and Vandenberg and Lance (1998), for instance suggest the conduct of confirmatory factor analyses to determine equivalence across groups. Finally, personal bias partly stemming from the researcher’s cultural background affecting hypotheses formulation and study design has been indirectly dealt with in the previous chapters. Personal bias is difficult to avoid but it is hoped that through an open discussion and description of the research process in the previous and following chapters, these biases will at least become clear and obvious. This is considered to be a better option than to claim “objectivity”. 128 Both the item bias analyses and comparative confirmatory factor analyses that are conducted in the present study will be discussed briefly below and described more in detail in Appendix 2 (see p. 312). a) Measurement equivalence testing For assessing measurement equivalence, Schaffer and Riordan (2001) recommend covariance structure analysis as a best practice statistical approach for cross-cultural organisational research. This approach has previously been used by researchers (e.g., Cheung & Rensvold, 1999; Ryan, Chan, Ployhart, R. & Slade, 1999; Riordan & Vandenberg, 1994). Schaffer and Riordan (2001) reported in their review that covariance structure analysis was used to assess measurement equivalence in 23% of the limited number of studies that discussed measurement equivalence (e.g., Wasti, Bergman, Glomb & Drasgow, 2000; Judge, Locke, Durham & Kluger, 1998; Ghorpade, Hattrup, Keith & Lackritz, 1999). Typically, researchers have used a multiple-groups covariance structure analysis to examine measurement equivalence, because such an analysis allows for direct testing of equivalency assumptions through a series of nested constraints placed upon selected parameters across the samples (Riordan & Vandenberg, 1994). Measurement equivalence, including both structural and scalar, can be examined in a series of increasingly restrictive hypothesis tests (for a more detailed description of these procedures, see Appendix 2, p. 315). In the present study, covariance structure analysis will be used mainly to determine the level of equivalence and it will not be used as a tool for identifying the sources of inequivalence. The focus is on testing the equality of the covariance matrices and comparing it to a less restrictive model in which the factor loadings are not presumed to be equal. Testing only these models does not enable a specific identification of inequivalence, but is considered to be sufficient given that item-level sources of inequivalence will be identified using itembias detection techniques (to be discussed in the following sub-section). The decision not to resort to all possible techniques aimed at identifying sources of inequivalence is also in line with the primary aim of this study, which is not to compare Chinese and Western individuals, but to understand leader-follower relations. Hence, if a significant level of equivalence of constructs cannot be demonstrated, both groups will be analysed separately. The standpoint taken in the present study is that our understanding of leaderfollower relations in the present context is increased most efficiently by adopting measures to fit the specific group or dyad-type (intracultural or intercultural) under examination than developing measures that may be equivalent but non adequate for the group under examination. However, it should be noted that before testing nested models with different equality constraints, researchers have begun their assessment of equivalence across cultural groups by conducting confirmatory factor analyses for each groups separately (e.g. Singh, Ghoparade & Lackritz, 2001). This gives a general overview of the factorial structure in both groups. It seems that if remarkable differences are found already at this stage, testing nested models with presumed strict equality constraints seems superfluous. As a result, the assessment of cross-cultural equivalence started with confirmatory factor analyses conducted separately for Western and Chinese respondents. The fact that the constructs employed in the present study have already been employed in a Chinese context and there are empirical and theoretical 129 justifications to presume that the factor structure would be similar in both cultural groups resulted in the decision to use confirmatory rather than exploratory techniques. The need to establish measurement properties (such as reliability and validity) for each cultural group separately and to compare these properties across groups is also stressed in the guidelines formulated by a committee representing various international psychological organisations for translating and adapting psychological and educational instruments (Hambleton, 1994, as cited in van de Vijver & Leung, 1997). The validation of the measures employed in the present study will be described later in this chapter (see p. 133) whereas the focus in this section is on describing general procedures. The examination of equivalence will be undertaken separately for each construct. A simultaneous inclusion of a larger number of constructs would most certainly have lead to specification problems due to the interrelationships between constructs (cf. Schaffer & Riordan, 2001). However, in case the individual measures demonstrate a high level of equivalence, it would be possible to examine their convergent-discriminant validity by simultaneously comparing measurement properties. An examination of the equivalence causal relationships between the constructs is also only possible if equivalence of constructs can be demonstrated. b) Item bias detection According to van de Vijver and Leung (1997), the most important a posteriori technique in validity enhancement is item bias analysis that can be used to detect anomalous items. Although the presence of bias, or rather non-bias, can be identified though the confirmatory factor analyses described above, item bias analysis is useful as it provides a more fine-grained technique for the identification of bias. Item bias is defined as invalidity or systematic error in how a test item measures a construct for the members of a particular group (Camilli & Shepard, 1994, as cited in Gierl et al., 1999). Persons with an equal standing on the theoretical construct underlying the instrument should have the same expected score on the item, irrespective of group membership (van de Vijver & Leung, 1997). In other words, the respondents who perceive the same level of LMX quality should have the same average score on the item, irrespective of if they are Western or Chinese. This does not mean that the averages of LMX should be identical for Western and Chinese respondents (as there could be valid differences or real impact, not just differences caused by bias) but the averages for the respondents who perceive the same level of LMX should be equal. Judgmental analysis is required to determine whether differential item functioning is due to bias or to impact for members from a specific group (Gierl et al. 1999). There are many techniques that can be used to identify bias. In the present study, the extension of Cleary’s and Hilton’s (1968: as cited in van de Vijver & Leung, 1997) analysis of variance technique for interval- and ratio-level data described by van de Vijver & Leung (1997) will be used (see Appendix 2, p. 317 for a description of this technique). Item-bias analysis was conducted for all the perceptual measures measured from a leader perspective in order to establish whether the responses given by Chinese and Western leaders are equivalent and hence comparable. This was not considered necessary for the follower measures, as all the followers were Chinese. One exception 130 was the item-bias analysis conducted on follower LMX (mainly for curiosity) in order to examine whether the Chinese followers systematically rated the Western and Chinese leaders differently. According to van de Vijver and Leung (1997), a common way to deal with item bias is to remove biased items. However, removing items can change the meaning of the measure considerably. Furthermore removal of item bias will not automatically lead to scalar equivalence and bias-free comparisons. Item bias analyses are not designed to identify method and construct bias (ibid.). A point that should be made is that an item that is biased across cultures cannot be used to make cross-cultural comparisons, but it can be useful in enhancing the content validity of scores reported for each population separately. In the present study, item bias analysis will be conducted as an aid to assess whether valid cross-cultural comparisons can be made, but the results of item bias analyses will not constitute a major source for modifying the measures. In conclusion, it should be stated that although validity enhancing procedures, some of which were described above, can reduce many problems of cross-cultural assessment, their implementation never guaranteed bias-free measurement. Hence, cross-cultural differences in scores on social behavioural measures tend to be open to multiple interpretations (van de Vijver & Leung, 1997). 5.2.4 Multidimensionality and perspective In recent studies on LMX, OCB and organisational justice, the importance of considering the multidimensional character of these constructs as well as measuring them from different perspectives has been stressed. These concerns are addressed in the present study by using multidimensional measures of LMX, OCB and organisational justice and by measuring the central perceptual factors from both leader and follower perspectives. As mentioned earlier, for instance Gerstner and Day (1997) have suggested that leaders may have a somewhat more complex, multidimensional construction of exchange quality than followers and that LMX is more reliably assessed from a follower’s perspective than from a leader’s. Leaders’ and followers’ other organisational perceptions may also differ due to the different roles the leaders and followers occupy in the dyad and in the organisation. Hence, all perceptions with the exception of organisational justice will be measured form both leader and follower perspectives. Although all the constructs measured from both perspectives may not be entered into the final regressions and structural equations models, they play an important role in construct validation as convergent validity can be estimated by comparing the same construct measured from different perspectives. Regarding the multidimensionality of the employed measures, Law and Wong (1999) make a distinction between the so-called factor view and the composite view of multidimensional constructs used in covariance structure analysis (or structural equations analysis). The factor view assumes that the dimensions are manifestations of 131 latent constructs while the composite view assumes that the dimensions are components of the construct. Under the factor view, the multidimensional latent construct is the common factor behind the dimensions. As the dimensions are different manifestations of the multidimensional construct, the structural paths on a path diagram should point from the multidimensional construct towards is dimensions. Some researchers have argued that the existence of substantial correlation between dimensions indicates the existence of an underlying general factor (e.g. Law, Wong & Mobey, 1998). In contrast to the factor view of multidimensional constructs, the composite view defines the multidimensional construct as the outcome of its dimensions. Since the dimensions are components of the multidimensional construct under this view, the paths on a structural diagram should point from the dimensions to the multidimensional construct. A further difference between the factor and composite view is how the variance of the construct is calculated. Under the factor view, only common variances or covariances shared by all dimensions are considered as true variance of the construct. Variances specific to only one or a few dimensions as well as random variances are hence treated as error variances. In contrast, under the composite view, variances specific to one or a few dimensions are part of the true variance of the construct. According to Wong and Law (1999), a result of this is that error variances of the dimensions may be overestimated if the factor model is assumed when the composite view is the reality. (This is often the case as in many programs, as e.g. in the Lisrel program, it is not possible to specify a construct under the composite view with arrows pointing from the dimensions towards the construct). Law and Wong (1999) show that these two views of multidimensional constructs lead to different parameter estimates and conclusions of the same data set in covariance structure analysis. The question that arises is under which view the multidimensional LMX, OCB and justice constructs employed in the present study should be defined. The justification for either view would entail theoretically arguing for the direction of causality between the dimensions and the construct as well as arguing for what type of variance in the construct is important (only common variance or also variances specific to only some of the dimensions). Here I agree with Ehrnrooth (2002) who argues that theoretical justification for the type of variance in the construct is more important than establishing the causal direction between the construct and its dimensions. This is due to the fact that as the latent construct can only be measured in term of its indicators, it is impossible to determine the true direction of causality. Theory and past research seems to enable conceptualising the multidimensional constructs in the present study (LMX, OCB and organisational justice) either as composite or factor constructs. These issues will be briefly discussed below focusing on the central LMX construct. The proponents of the multidimensional view of LMX (e.g. Liden & Maslyn, 1998; Dienesch & Liden, 1986) suggest that there may be variance in the weight or importance of each dimension across individuals. Furthermore, it is argued that the dimensions of LMX are conceptually distinct and could have different determinants and outcomes (Liden & Maslyn, 1998). According to my interpretation, this indicates that it is not only variance common to all factors that is of importance, but dimension-specific variance as well. This assumption supports the composite view of LMX. However, the composite view is not supported by the argument that an exchange between leader and follower may be based on one, two, three, or all of the dimensions. This implies that the 132 LMX dimensions are not expected to combine additively to create an overall construct of LMX. It suggests that different individuals have different indicators of high LMX. This conceptualisation of LMX puts so much focus on the dimensions that the existence of a higher-order underlying LMX construct seems to be of a lesser importance. In fact, in the validation of the LMX-MDM measure described by Liden and Maslyn (1998), a first-order four-factor model of LMX is in focus. However, to quote the developers of the LMX-MDM measure (Liden & Maslyn, 1998, p. 65): “In some studies, such as those in which LMX is not a key variable, LMX dimensionality may not be a concern and a one-dimensional measure may suffice. Researchers who desire a measure of global LMX could combine all 11 items into a composite...Alternatively, when using structural equations modelling, researchers could use each of the four dimensions as indicators of global LMX”. (Liden and Maslyn briefly mentioned that the second-order model of LMX gained support). This indicates that Liden and Maslyn view LMX both as a composite and a factor construct. However, the strongest theoretical support seems to exist for treating LMX as a composite or looking at the determinants and outcomes of the different LMX dimensions separately. In the present study, the composite view of LMX will be adopted in the regression analyses and the factor view in the confirmatory factor analyses. Furthermore, the dimensions of LMX are in focus as dimension-specific hypotheses have been developed and tested. The existence of a higher-order latent LMX construct will be examined through confirmatory factor analyses. The confirmatory factor analyses will be used to validate and modify the measures and the composites will be formed based on these validated measures. The same procedure will be applied to the other multidimensional constructs employed in the present study (OCB and organisational justice). Regarding OCB, Law, Wong and Mobey (1998) argue that it is possible to define OCB both as a factor and composite construct. However, past research seems to suggest that good citizenship behaviour requires high levels of citizenship behaviours on all dimensions (cf. Van Dyne et al., 1994) and it should hence foremost be conceptualised as a latent factor construct (cf. Ehrnrooth, 2002). However, a composite measure will be used in regressions. Organisational justice (including procedural, distributive and interactional as well as fairness in performance appraisals is also considered mainly as a latent factor construct but a composite based on validation through confirmatory factor analyses will be used in regression analyses. As composite measures of the multidimensional constructs will be used in many of the analyses, second-order models for the multidimensional constucts will be analysed. 133 5.3 MEASURES AND THEIR VALIDATION In this section, the measures are presented including the procedures undertaken to test and increase their measurement properties following the procedures described in the previous section. As mentioned earlier, each measure selected for this study has been carefully considered giving precedence to well-established and cross-culturally validated measures over new and not cross-culturally tested measures. Most of the measures have been used in China by Chinese researchers although the majority of them have Western origins. Previous use in China gives some assurance of initial face validity and cross-cultural applicability. However, further tests of equivalence and validity of the measures were necessary and will be reported here. In sum, confirmatory factor analyses (CFAs) using maximum likelihood techniques and listwise deletion with LISREL 8.3 were conducted to assess the factor structure and convergent and discriminant validities of the perceptual constructs employed in the study (i.e. leader-member exchange, organisational citizenship behaviour, organisation-based self-esteem, perceived organisational support, inrole performance, perceived similarity and justice). Separate confirmatory factor analyses were conducted for followers and leaders and for the English and Chinese leader measures. In other words, three confirmatory factor analyses were conducted for each central construct: one for the Chinese followers, one for Western leaders and one for Chinese leaders. These results are reported in this section in this order. In addition, the level of equivalence between the Western and Chinese leader measures will be reported as well as the results of the item-bias analysis. As LMX is the focal variable of the study, results pertaining to LMX will be presented more in detail than those pertaining to the other variables. Some measures have only been measured from one perspective and will naturally not result in three different CFAs. The observant reader may notice that the sample size reported in association with the CFAs is smaller than the one reported in association with the α coefficient. This is due to the fact that listwise deletion was used in the CFAs (as it is a requirement in multisample CFAs) and pairwise deletion in establishing the α. The small sample size has restricted the level of complexity of the analysed models and perfect fitting models have not been obtained in most cases, but the confirmatory factor analyses have nevertheless enabled an improvement of the measures and an awareness of potential problems associated with their use. As mentioned earlier, confirmatory factor analyses were not conducted for the personality and value measures, with the exception of a few personality traits showing very low reliabilities (α). This is due to the fact that the validity and cross-cultural generalisability of the personality and value measures has been demonstrated in a large number of studies with a considerable sample size. Furthermore, as these measures include a considerable number of items, it would have lead to an unacceptable samplesize-to-parameter ratio and hence potentially unreliable parameter estimates. Therefore, instead of conducting confirmatory factor analyses, reference will be made to previous validation analyses, when available, and the Cronbach’s alpha will be reported. Before presenting the measures, it could also be mentioned that all the perceptual constructs 134 were measured on 5-point Likert scales ranging from strongly disagree (1) to strongly agree (5). 5.3.1 LMX This study is based on the multidimensional measure of LMX (LMX-MDM; Liden & Maslyn 1998) for arguments presented in Chapter 2 (see p. 23). When the empirical work started, the LMX-MDM measure had not been used in China, although Wang et al. (forthcoming) have since then translated and further validated the Chinese LMXMDM measure. In the present study, the original LMX-MDM was translated into Chinese and back translated to English and tested in a preliminary pilot study described earlier. The 7-item LMX measure (LMX7: Scandura & Graen, 1984) was also included in the questionnaire mainly for validation purposes. a) Follower LMX The LMX-MDM measure in its original form measures LMX from a follower perspective. The items are presented in the table below. In the confirmatory factor analysis, a model that had four factors (i.e. the dimensions of LMX) and one higher-order factor of overall LMX was tested. Despite the high reliability, the initial 12-item four-factor second-order model did not meet all the retention criteria with a chi-square of 188.89 (df = 50), p-value of .00, RMSEA of .11 and CFI of .93 and GFI of .88. All the factor loadings had significant t-values (t>2), but the factor loading of item 7 on the contribution dimension was relatively weak at λ =.26 and R2 = .026. As the LMX scale has not been used in an intercultural context before, and as the initial model did not fit the data very well, two separate second-order confirmatory factor analyses were run for intercultural dyads (i.e. Chinese followers working with Western leaders) and for intracultural dyads (i.e. Chinese followers working with Chinese leaders). Separate models were analysed mainly for curiosity, in order to examine whether the Chinese followers conceptualise their relationship with Western leaders differently from their relationships with Chinese leaders. In both samples, the 7th item got a very weak factor loading and R2, and the models did not demonstrate acceptable fit and no great differences between the samples was detected. As there are no theoretical justifications for different LMX models for intercultural and intracultural dyads, further confirmatory factor analyses were conducted for the whole sample. In order to find a better fitting model for the whole sample with a lower chi-square and higher p-value, a model was run where the variable with the weakest factor loading was dropped from each dimension. Dropping one item from each dimension instead of just dropping the problematic 7th item from the contribution-dimension was considered a better strategy as deleting just one item would have changed the relative weight of the different LMX dimensions in the composite score. This eight-variable four-factor model fitted the data very well, when the error covariance between item 9 and 12 was set free, which was judged to be acceptable as the LMX dimensions are theoretically expected to correlate. 135 Error correlations may be seen as due to the conceptual closeness of the constructs, common method errors, and partly purely technical and hence not justified (cf. Ehrnrooth 2002). The results obtained from the confirmatory factor analysis of the final shortened scale are shown in the table below (the omitted items are marked). Table 3: Results of follower LMX CFA RESULTS OF SECOND-ORDER CFA 1st order: Follower LMX items / dimensions λ R2 t I like my supervisor very much as a person .95 .90 2.51 My supervisor is the kind of person one would like to have as a friend omitted item My supervisor is a lot of fun to work with .94 .89 2.51 .70 .49 9.87 .94 .88 9.57 omitted item omitted item .71 .50 9.76 .91 .84 9.48 I am impressed with my supervisor’s knowledge of his/her job omitted item I respect my supervisor’s knowledge and competence on the job 1.0 1.0 10.94 I admire my supervisor’s professional skills .88 .77 11.20 .95 2.27 0.92 II. Loyalty .49 .24 5.67 III. Contribution .48 .23 5.58 IV. Respect .79 .63 7.04 I. Affect II. Loyalty My supervisor defends my work actions to a superior, even without complete knowledge of the issue in question My supervisor would come to my defence if I were “attacked” by others My supervisor would defend me to others in the organisation if I made a serious mistake III. Contribution I do work for my supervisor that goes beyond what is specified in my job description I am willing to apply extra efforts, beyond those normally required, to meet my supervisor’s work goals I do not mind working my hardest for my supervisor IV. Professional respect nd 2 order: LMX dimensions / LMX I. Affect Model fit: χ2 18.4 (df 15), p for χ2 .24, RMSEA .032, CFI 1.00, GFI .98, N 299, CN 229 Error correlations allowed: 9 –12 To be sure of the applicability of this shortened 8-item model in both intracultural and intercultural dyads, the fit of this model was tested separately for both groups. The fit of the model in the intracultural sample demonstrated a very good fit (after two error covariances had been set free) with a chi-square of 26 (df=14), p-value of .02, 136 RMSEA=.07, CFI=. 99 and GFI=.96. It should be noted that both the respect items cross-loaded onto all the other LMX dimensions and especially the affect-dimension. This model also indicated very good fit for the intercultural data after two error covariances had been set free, with a chi-square of 23 (df=14), p-value of .06, RMSEA =.08, CFI=. 98 and GFI=.94. However, a low t-value was obtained for the loyalty factor of LMX with a loading of .26 and R2 of 0.006. The modification index indicates some cross-loadings between the affect and loyalty dimension and between the respect and contribution dimension. (The results obtained by testing a one-order model of a 4dimensional conceptualisation of LMX did not ameliorate the results as low t-values for all the loyalty items were obtained. Furthermore, the correlation matrix indicated that the loyalty dimension correlated insignificantly with the other dimensions and negatively with respect). The fact that the loyalty dimension is not closely related to the other dimensions of overall LMX in intercultural dyads could be interpreted when examining the items: the loyalty items ask the follower to judge the possible future actions of the leader, whereas the other items measure the follower’s direct perceptions of his or her leader. It is understandably more difficult to interpret the intentions of the leader than to form a perception of him or her, especially if the leader represents a different culture. It could be mentioned that in intracultural dyads, the loyalty factor correlated weakly with the contribution factor but significantly with the other factors, and that all factor loadings were significant. Although the weakness of the loyalty-dimension in intercultural dyads is of some concern, the decision was made to keep the loyalty items in the study and to use the same follower LMX measure in intra- and intercultural dyads. This is due to the fact that the 8-item model showed acceptable fit in all subgroups and demonstrated sufficient equality. In order to explore potential differences between intracultural and intercultural follower LMX further, the equality of factor structures was tested following the procedures described in Section 5.2.3 (p. 128) (see also Appendix 2) . The multisample CFA using the shortened LMX to test equality of the covariance matrices (no equality constraints relaxed) showed a relatively good fit with a chi-square of 150 (df=48), p-value of .00, RMSEA =.09, CFI=. 91 and GFI=.84. It is hence assumed that the factor structure of LMX is similar in intracultural as in intercultural dyads. Item-bias analysis was also conducted in an analysis of variance following the procedure described earlier in this chapter (p. 129) (see also Appendix 2). This analysis is normally conducted to identify bias pertaining to the respondents’ cultural origin. In this case, all the respondents where Chinese but the leaders, who were evaluated by the respondents, represented different cultural groups. This analysis of variance, where the item score is the dependent variable and cultural groups (i.e. leader origin) and score groups are the independent variables was conducted mainly for curiosity. The results of the analyses did not indicate the presence of either uniform or nonuniform bias. This further supported the decision not to use separate measures for intracultural and intercultural LMX quality measured from a follower perspective. The internal consistency reliability (α) for this new shortened LMX-MDM scale was somewhat lower than the one obtained from the original LMX-MDM scale. An α of .84 137 was obtained (.86 old α) (N=227), but the far better confirmatory factor analysis fit statistics of this measure led to the decision to use this shortened version of the scale. The alphas for the LMX-MDM dimensions affect, loyalty, contribution and professional respect were .89 (.89 old α), .74 (.80), .73 (.61), and .86 (.91), respectively. A LMX composite to measure overall LMX by averaging the 8 items was created. To establish convergent validity, the correlation between the modified LMX-MDM and the LMX7 measure was calculated. The correlation was significant (r=.67), which gives evidence of some level of convergent validity. The descriptives for the LMX-MDM composite showed significant kurtosis (2.0). An examination of the bar charts for these measures revealed that some small categories where empty. Therefore, the continuous composite measures of LMX were recoded into five-point scales to test whether the kurtosis problem could be ameliorated. In this procedure, mean values in the 1 – 1.5 range were recoded as 1, values in the 1.150001- 2.5 range were recoded as 2 and so on. This procedure had a favourable effect on the LMX-MDM measure as kurtosis was reduced significantly (to .69). b) Western leader LMX The LMX-MDM measure in its original form measures LMX from a follower perspective. To measure LMX from a leader perspective, a scale based on and very similar to the original LMX-MDM that has been developed by L. L. Paglis, University of Evansville, and S. G. Green, Purdue University was used (November 2000, personal communication). A leader version of the LMX7 measure has also been developed (see Graen & Uhl-Bien, 1995) and it was used in the present study for validation purposes. The initial model did not produce acceptable goodness-of fit statistics with a chi-square of 184.19 (df = 48), p-value of .00, RMSEA of .18 and CFI of .78 and GFI of .78. In order to find a better fitting model, a model was run where the variable with the weakest factor loading (and also highest cross-loadings) was dropped from each dimension. This eight-variable four-factor model fitted the data better after some error covariances had been set free. The fit statistics obtained for the model are presented more in detail below. Table 4: Results of Western leader LMX CFA RESULTS OF SECOND-ORDER CFA for Western leaders 1st order: Leader LMX items / dimensions λ R2 t .97 .94 4.67 .82 .67 5.00 omitted item .81 .65 I. Affect I like this subordinate very much as a person This subordinate is the kind of person one would like to have as a friend This subordinate is a lot of fun to work with II. Loyalty This subordinate would come to my defence if I were “attacked” by others 3.23 138 This subordinate would defend me to others in the organisation if I made a serious mistake This subordinate defends my work actions to others in the organisation, even without complete knowledge of the issue in question III. Contribution I can depend on this subordinate to help when we are over-loaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. This subordinate does things for me that go beyond what is specified in his/her job description IV. Professional respect .68 .46 3.34 omitted item .47 .22 4.01 1.36 1.85 3.66 omitted item I am impressed with this subordinate ‘s knowledge of his/her job .83 .68 I seek out this subordinate’s opinion on important matters omitted item I admire this subordinate’s professional skills .91 .83 7.03 .87 .75 3.69 II. Loyalty .87 .76 2.84 III. Contribution .43 .19 2.62 IV. Respect .70 .50 4.53 7.28 nd 2 order: LMX dimensions / LMX I. Affect Model fit: χ2 31.76 (df 15), p for χ2 .0069, RMSEA .113, CFI .94, GFI .92, N 88, CN 74 Error correlations allowed: 1 –5 For Western leaders, the α for this new scale was slightly lower than the original .80 (.82 old α) but the far better CFA fit statistics of this measure led to the decision to use this shortened version of the scale. Alphas are also sensitive to the number of items. The different dimensions of the shortened LLMX-MDM received the following αs (old value in brackets): .80 (83) for affect, .63(.60) for loyalty, .63 (.64) for contribution, and .79 (.75) for professional respect. c) Chinese leader LMX The initial model did not produce quite acceptable goodness-of fit statistics on with a chi-square of 140.28 (df = 50), p-value of .00, RMSEA of .11 and CFI of .84 and GFI of .86. All the factor loadings were significant (t>2) (with the loyalty and contribution dimensions demonstrating the highest factor loadings). In order to find a better fitting model, a model was run where the variable with the weakest factor loading was dropped from each dimension. This eight-variable four-factor model fitted the data very well (when the covariance between some items was set free). The results obtained for the model are presented more in detail below. 139 Table 5: Results of Chinese leader LMX CFA RESULTS OF SECOND-ORDER CFA for Chinese leaders 1st order: Leader LMX items / dimensions λ R2 omitted item .76 .59 7.51 .70 .60 7.39 .73 .52 3.99 omitted item .64 .41 4.06 1.12 1.26 3.22 .67 .45 4.28 omitted item I am impressed with this subordinate ‘s knowledge of his/her job .62 .40 I seek out this subordinate’s opinion on important matters omitted item I admire this subordinate’s professional skills .98 .97 5.36 .64 .41 5.08 II. Loyalty .83 .68 3.30 III. Contribution .85 .72 2.69 .31 .098 3.00 t I. Affect I like this subordinate very much as a person This subordinate is the kind of person one would like to have as a friend This subordinate is a lot of fun to work with II. Loyalty This subordinate would come to my defence if I were “attacked” by others This subordinate would defend me to others in the organisation if I made a serious mistake This subordinate defends my work actions to others in the organisation, even without complete knowledge of the issue in question III. Contribution I can depend on this subordinate to help when we are over-loaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. This subordinate does things for me that go beyond what is specified in his/her job description IV. Professional respect 5.38 nd 2 order: LMX dimensions / LMX I. Affect IV. Respect Model fit: χ 17.57 (df 12), p for χ .13, RMSEA .053, CFI .99, GFI .97, N 140, CN 208 Error correlations allowed: 3-4, 8-2, 8-4, 10-2 2 2 As can be seen from the table above, the respect dimension loaded rather weakly on overall LMX, and obtained a very low R2 but otherwise the model exhibits acceptable statistics. A comparison of the results obtained for Western and Chinese leaders indicates that affect is a more important indicator of overall LMX for Western leaders than for Chinese leaders whereas contribution is more important for the Chinese leaders. 140 For Chinese leaders, the αs for this new scale was somewhat lower than those obtained for the Western leaders. The α for the whole scale was .75. The different dimensions of the shortened LLMX-MDM received the following αs: .66 for affect, .56 for loyalty, .79 for contribution, and .73 for professional respect. This means that for both Chinese and Western leaders, the loyalty dimension demonstrated relatively low reliability. Despite the rather low reliabilities, the good CFA fit statistics of this measure led to the decision to use this shortened version of the scale. d) Equivalence and bias Although the separate confirmatory factor analyses conducted for Chinese and Western leaders already indicated some differences in the factor structures, an analysis of equivalence was conducted. The second-order model including all 12 original LMXMDM items and assuming equivalence of covariance matrices did not meet the retention criteria and produced a chi-square of 356 (df=124), p-value of .00, (RMSEA =.13, CFI=. 76 and GFI=.72. Different models with increasingly relaxed equality constraints were tested. The best model was obtained by freeing factor loadings, error variances and factor covariances but an adequate fit was still not produced with a chisquare of 282 (df=97), p-value of .00, RMSEA =.13, CFI=. 81 and GFI= .78. In order to examine the sources of inequivalence further, an analysis of item bias of the leader responses was conducted. The results indicated that all items except 1, 10 and 11 were biased while all the other items demonstrated either uniform or nonuniform bias or both. The results of this analysis are presented in the table below. A p-value under .05 indicates that the bias is significant. Uniform bias is indicated by a significant direct effect of cultural group (marked DE in the table) and nonuniform bias by a significant interaction effect between cultural group and score group (marked IE in the table). Table 6: Results of leader LMX item-bias analysis RESULTS OF ITEM-BIAS ANALYSIS p for DE* p for IE** I like this subordinate very much as a person .376 .096 This subordinate is the kind of person one would like to have as a friend .641 .050 This subordinate is a lot of fun to work with .009 .512 This subordinate would come to my defence if I were “attacked” by others This subordinate would defend me to others in the organisation if I made a serious mistake This subordinate defends my work actions to others in the organisation, even without complete knowledge of the issue in question I can depend on this subordinate to help when we are over-loaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. This subordinate does things for me that go beyond what is specified in his/her job description I am impressed with this subordinate ‘s knowledge of his/her job .020 .331 .038 .349 .103 .052 .096 .006 .000 .887 .286 .004 .386 .582 I seek out this subordinate’s opinion on important matters .411 .618 I admire this subordinate’s professional skills .560 .000 141 * DE = direct effect, indicating uniform cultural bias ** IE = interaction effect, indicating nonuniform cultural bias Due to inequivalence and bias, the separately validated and different Chinese and Western measures of leader LMX will be used in the subsequent analyses. This means that Western and Chinese leader LMX quality is not directly comparable and that “universal leader LMX” involving both Chinese and Western leaders cannot be estimated. Furthermore, it means that intercultural and intracultural dyads must be examined separately. This is due to the fact that leader LMX is an antecedent of follower LMX, and although we would be using the label ‘leader LMX’ for both Western and Chinese leaders perceptions of LMX quality, we are not measuring exactly the same thing. This problem is aggravated if other leader perceptions also demonstrate inequivalence and bias. The correlation between the LMX7 and LMX-MDM composites was r = .54 for the Chinese leader measures and r = .67 for the English versions. The correlation between leader and follower reports of LMX was low: r = .173 (ns.) in Chinese and r = .172 in cross-cultural dyads. Empirical support for the relationship between leader and follower LMX has been equivocal (Gerstner & Day, 1997). Graen and Cashman (1975, as cited in Dansereau 1995) reported a correlation of .50 between leader and follower LMX whereas e.g. Scandura et al. (1986) reported a correlation of .24. It has been suggested that leaders tend to respond somewhat defensively and to give socially desirable answers (Graen & Scandura, 1987), which could partly explain the low correlation (However, the leaders did not provide higher reports an all job perceptions). I do not find the low correlation between leader and follower LMX surprising, taken that what we are measuring is basically one person’s perceptions of the other person and not an actual exchange. This further points to the importance of regarding leader and follower LMX as separate constructs. 5.3.2 OCB The Western OCB scale developed by Podsakoff et al. (1990), which is based on Organ’s (1988) dimensions of OCB was used in the present study. The sportsmanship and courtesy dimensions from the original scale were omitted and the analyses were conducted using only the altruism, conscientiousness, and civic virtue dimensions. Lam et al. (1999) found that this scale yielded acceptable psychometric properties in terms of internal consistency and factor structure across the US, Australia, Japan, and Hong Kong. OCB was measured from both leader and follower perspective and the items and results of CFAs will be presented in the sub-sections below. 142 a) Follower OCB A second-order CFA on OCB was run. The 3-factor model with one second-order factor of overall OCB did not meet the retention criteria. Two items demonstrated low R2 and t-values. The conscientiousness item ‘I am one of my supervisor's most conscientious subordinates’ does not concern the followers actual behaviour, but entails a comparison with other followers, which might have been hard to make. The civic virtue item ‘I attend training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.)’ may not have been relevant in the studied companies. These items were hence deleted. The modified model showed relatively low t-values for all the conscientiousness items (but with t-values over 1.64 they are acceptable at a 10% significance level) as well as for the loading of the Conscientiousness factor on the second-order OCB factor. However, most of the other fit indices indicated reasonable fit. The results of the CFA are presented in the table below. Table 7: Results of follower OCB CFA RESULTS OF SECOND-ORDER CFA 1st order: Follower OCB / dimensions λ R2 t .72 .51 6.23 .78 .61 6.78 .85 .73 7.40 .62 .39 5.21 .37 .15 3.19 I am one of my supervisor's most conscientious subordinates. omitted item I believe in giving an honest day's work for an honest day's pay. .68 .46 1.94 I never take long lunches or breaks. .79 .63 1.94 I take fewer breaks at work than my colleagues. I am willing to work on a job/project until it is completed, even if it means coming in earlier or staying later than normal. IV. Civic virtue .71 .51 1.92 .58 .33 1.87 .51 .26 2.31 omitted item .75 .56 2.54 .60 .56 2.54 .68 .46 2.51 .50 .25 3.02 I. Altruism I help orient new subordinates even though it is not required as part of my job. I am always ready to help or to lend a helping hand to those around me. I willingly give of my time to help others who have work-related problems. I help others with heavy workloads. I help fill in for others who are sick or absent. II. Conscientiousness I "keep up" with developments in the department/company. I attend training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.) I actively participate in department/company meetings. I provide constructive suggestions regarding changes that might be made in my department or the company. I am willing to risk disapproval in order to express my beliefs about what's best for the department/company. 2nd order: OCB dimensions / OCB I. Altruism 143 II. Conscientiousness .87 .76 1.51 III. Civic virtue .83 .69 1.89 Model fit: χ2 89 (df 59), p for χ2 .0007, RMSEA .085, CFI .86, GFI .84, N 72, CN 55 Error correlations allowed: 4-5, 1-7, 5-7 The internal consistency reliability (α) for this modified OCB scale was .77 (N=173). An overall confirmatory factor analysis including both the LMX and OCB items would have been relevant, but this would have led to an unacceptable sample-size-to parameter ratio due to the large number of items in these scales and taking into consideration the small sample size (N=70 using listwise deletion). b) Western leader OCB A second-order 3-factor model of OCB did not produce acceptable fit for the Western leaders. Two civic virtue items demonstrated very low t-values and R2. The ‘I “keep up" with developments in the department/company’ item may have been too general and incomprehensible. The ‘I attend training/information sessions that subordinates are encouraged, but not required to attend...’ item may not have been relevant for the present companies. These items were hence deleted. In the resulting model, all the factor loadings were significant and the model demonstrated better fit, albeit high RMSEA. The model also demanded a large number of free error correlations, which are at least partly acceptable due to the conceptual closeness of the dimensions. Common method errors could be an additional cause. The final model is presented below. Table 8: Results of Western leader OCB CFA RESULTS OF SECOND ORDER CFA 1st order: Western leader perceptions of OCB / dimensions λ R2 t .86 .65 2.22 .81 .60 2.18 .88 .70 2.21 .64 .39 2.16 .79 .57 2.20 I one of my most conscientious subordinates. .74 .50 3.91 Believes in giving an honest day's work for an honest day's pay. .94 .81 4.36 Never takes long lunches or breaks. .77 .55 4.17 Takes fewer breaks at work than other subordinates. .67 .41 3.67 I. Altruism Helps orient new subordinates even though it is not required as part of his/her job. Is always ready to help or to lend a helping hand to those around him/her. Willingly gives of his/her time to help others who have work-related problems. Helps others with heavy workloads. Helps fill in for others who are sick or absent. II. Conscientiousness 144 Is willing to work on a job/project until it is completed, even if it means coming in earlier or staying later than normal. III. Civic virtue .59 .31 omitted item omitted item .94 .82 6.14 .84 .63 5.44 .83 .55 5.44 I. Altruism .94 .88 1.96 II. Conscientiousness .87 .75 3.38 .79 .63 3.99 "Keeps up" with developments in the department/company. Attends training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.) Actively participates in department/company meetings. Provides constructive suggestions regarding changes that might be made in the department or the company. Is willing to risk disapproval in order to express his/her beliefs about what's best for the department/company. 2nd order: OCB dimensions / OCB III. Civic virtue Model fit: χ 101 (df 57), p for χ .0003, RMSEA .120, CFI .90, GFI .85, N 55, CN 34 Error correlations allowed: 1 -2 , 4 -7, 9-3, 17-1, 19-3 2 3.55 2 The internal consistency reliability (α) for this modified OCB scale was .89 (N=71). An overall confirmatory factor analysis including both the LMX and OCB items would have been relevant, but this would have led to an unacceptable sample-size-to parameter ratio due to the large number of items in these scales. c) Chinese leader OCB A second-order CFA on the three-dimensional measure of OCB for the Chinese leaders did not produce acceptable fit. All the altruism items demonstrated very low t-values including the loading of the first-order altruism construct on the second-order OCB factor. The modification index suggested that many of the altruism items cross-loaded on the conscientiousness dimension. Two civic virtue items demonstrated low R2 and insignificant factor loadings: ‘Provides constructive suggestions regarding changes that might be made in the department or the company’ and ‘attends training/information sessions that subordinates are encouraged, but not required to attend..’. The latter item hence does not seem to be a good indicator of civic virtue and OCB for any of the groups examined in the present study. The reason for why the former item was not significantly related to civic virtue is harder to explain but it could be due to cultural differences or translation problems. These two items were deleted. The resulting model did not demonstrate acceptable fit until two cross-loadings and some error variances had been set free. The cross loading of two altruism items on the conscientiousness dimension is not seen as highly problematic as the present study only considers measures of overall OCB. Cross-loading items are marked (cl). 145 Table 9: Results of Chinese leader OCB CFA RESULTS OF SECOND ORDER CFA 1st order: Chinese leader perceptions of OCB / dimensions λ R2 t .86 .42 2.03 2.06(cl) .95 2.49 .81(cl) .60 .95 .95 .82 2.53 .56 .28 2.29 I one of my most conscientious subordinates. .78 .59 4.85 Believes in giving an honest day's work for an honest day's pay. .93 .79 4.96 Never takes long lunches or breaks. .48 .21 3.27 Takes fewer breaks at work than other subordinates. Is willing to work on a job/project until it is completed, even if it means coming in earlier or staying later than normal. III. Civic virtue .47 .21 3.40 .44 .18 3.05 .62 .34 5.32 omitted item 1.01 .93 omitted item .59 .32 5.07 I. Altruism 1.06 1.13 2.83 II. Conscientiousness .84 .72 3.75 .65 .43 4.27 I. Altruism Helps orient new subordinates even though it is not required as part of his/her job. Is always ready to help or to lend a helping hand to those around him/her. Willingly gives of his/her time to help others who have work-related problems. Helps others with heavy workloads. Helps fill in for others who are sick or absent. II. Conscientiousness "Keeps up" with developments in the department/company. Attends training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.) Actively participates in department/company meetings. Provides constructive suggestions regarding changes that might be made in the department or the company. Is willing to risk disapproval in order to express his/her beliefs about what's best for the department/company. 2nd order: OCB dimensions / OCB III. Civic virtue Model fit: χ 109 (df 57), p for χ .0004, RMSEA .115, CFI .83, GFI .80, N 70, CN 42 Error correlations allowed: 1 -2 , 4 -7, 9-3, 17-1, 193 Cross-loadings: 2=-0.21*conscientiousness (t =-.82) 3= -1.39*conscientiousness (t = -4.01) 2 7.22 2 The internal consistency reliability (α) for this modified OCB scale was .87 (N=104). An overall confirmatory factor analysis including both the LMX and OCB items would have been relevant, but this would have led to an unacceptable sample-size-to parameter ratio due to the large number of items in these scales. 146 In sum, two items were deleted from all OCB measures. The 12th item was problematic for all groups. d) Equivalence and bias Although the separate confirmatory factor analyses conducted for Chinese and Western leaders already indicated some differences in the factor structures, an analysis of equivalence was conducted. The second-order 3-factor model including the original OCB items and assuming equivalence of covariance matrices did not meet the retention criteria and produced a chi-square of 544 (df=207), p-value of .00, (RMSEA =.16, CFI=.62 and GFI=.61. An adequate fit was still not produced by freeing factor loadings, which resulted in a chi-square of 543 (df=192), p-value of .00, RMSEA =.17, CFI=. 62 and GFI= .61. These results further supported the decision to conduct separate analyses for intercultural and intracultural dyads. In order to examine the sources of inequivalence further, an analysis of item bias of the leader responses was conducted. The analysis revealed that most of the OCB items were unbiased by cultural background of the leader. However, the 5th item (altruism) and 11th item (civic virtue) demonstrated uniform bias whereas the 14th item (civic virtue) demonstrated both uniform and nonuniform bias. 5.3.3 Inrole performance A 7-item modified version of the measure developed by Williams and Anderson (1991) was used to measure inrole performance in the present study. The same measure was used by Hui et al. (1999) in their study with respondents from a Hong Kong-Chinese joint venture. Both leader and follower perceptions of follower inrole performance were estimated. a) Follower inrole performance A one-factor model produced acceptable fit statistics after some error covariances had been set free and the results are presented in the table below. Table 10: Results of follower inrole performance CFA RESULTS OF FIRST-ORDER CFA Follower inrole performance items λ R2 t I always complete work assigned by the company. .80 .64 8.04 I performed my required job well. .94 .84 9.93 I always complete the duties specified in my job description. .82 .66 8.15 I fulfil all formal job responsibilities .91 .83 9.97 I perform specified job duties. .78 .60 8.00 147 I never neglect aspects of the job that I am obligated to perform. .68 .46 6.85 I meet all the formal job requirements. .75 .56 7.13 Model fit: χ2 14.8 (df 10), p for χ2 .14, RMSEA .081, CFI .99, GFI .94, N 231, CN 82 Error correlations allowed: 1-3, 2-3, 3-4, 7-2 The alpha for this scale was .89. (N=231). b) Western leader inrole performance A one-factor model of Western leaders’ perceptions of followers’ inrole performance produced acceptable fit statistics with the exception of a high RMSEA value after some error covariances had been set free. The results of the CFA are presented in the table below. Table 11: Results of Western leader perceptions of follower performance CFA RESULTS OF FIRST-ORDER CFA Leader perceptions of follower inrole performance items λ R2 t Always completes work assigned by the company. .71 .46 5.37 Performs his/her required job well. .70 .44 5.44 Always completes the duties specified in his/her job description. .92 .76 9.28 Fulfils all formal job responsibilities .99 .90 9.28 Performs specified job duties. Never neglects aspects of the job that he or she is obligated to perform. Meets all the formal job requirements. .94 .80 8.42 .76 .52 6.06 .91 .75 8.00 Model fit: χ2 29.39 (df 12), p for χ2 .0042, RMSEA .160, CFI .95, GFI .87, N 55, CN 53 Error correlations allowed: 1-3, 6-1 The alpha for this scale was .90 (N=106). d) Chinese leader inrole performance A one-factor model of the Chinese leaders’ perceptions of followers’ inrole performance exhibited acceptable fit statistics after some error covariances had been set free. The results of the CFA are presented in the table below. Table 12: Results of Chinese leader perceptions of follower performance CFA RESULTS OF FIRST-ORDER CFA 148 Leader perceptions of follower inrole performance items λ R2 t Always completes work assigned by the company. .95 .90 10.57 Performs his/her required job well. 1.01 1.02 12.02 Always completes the duties specified in his/her job description. .67 .45 6.41 Fulfils all formal job responsibilities .74 .48 6.69 Performs specified job duties. Never neglects aspects of the job that he or she is obligated to perform. Meets all the formal job requirements. .72 .52 7.07 .77 .60 7.75 .74 .56 7.37 Model fit: χ 16.45 (df 10), p for χ .088, RMSEA .097, CFI .99, GFI .94, N 70, CN 82 Error correlations allowed: 5-4, 6-4, 7-3, 7-4 2 2 The alpha for this scale was .90 (N=116). e) Equivalence and bias A test of equivalence between the Western and Chinese leader inrole performance constructs was conducted. The assumption of equal factor structure (including factor loadings) did not receive support with a chi-square of 225 (df=42), p-value of .00, (RMSEA =.27, CFI=.53 and GFI=.65. By freeing factor loadings, an adequate fit was still not produced with a chi-square of 221 (df=35) p-value of .00, (RMSEA =.29, CFI=.54 and GFI=.65). The constructs are hence presumed to be unequal for Western and Chinese leaders. In order to examine the sources of inequivalence further, an analysis of item bias of the leader responses was conducted. The analysis revealed that 2nd and 5h item demonstrated uniform bias whereas the 6th item demonstrated nonuniform bias. 5.3.4 Justice Interactional, procedural, and distributive justice as well as fairness of performance appraisal was measured with a measure partly based on Moorman (1991). Justice was only measured from a follower perspective. Theory suggests that interactional justice is very closely linked to LMX and that it could be an antecedent of LMX, whereas the other forms of justice mainly could be considered outcomes. Due to this and the large number of items in the total justice scale, separate CFAs on the interactional justice scale and the remaining justice scale named organisational justice were conducted. The composite of interactional justice was used in the regressions as an antecedent of LMX and the organisational justice composite as an outcome of LMX. 149 a) Organisational justice The initial model with three factors and one higher-order factor of overall organisational justice demonstrated satisfactory goodness-of-fit statistics when some error covariances had been set free. However, it should be noted that two of the items concerning fairness of performance appraisal cross-loaded on the procedural and distributive justice dimensions according to the modification index. The items for fairness of performance appraisal obtained lower t-values than the other items but still exceeded the 2-limit. The results of the CFA are presented below. Table 13: Results of follower organisational justice CFA RESULTS OF SECOND-ORDER CFAs 1st order: Follower organisational justice / dimensions λ R2 t .74 .55 9.68 .76 .58 9.93 .87 .77 10.81 .79 .62 10.49 .80 .64 9.98 .89 .79 11.98 .92 .85 12.34 .92 .84 12.28 .94 .88 12.53 .84 .71 11.47 .88 .78 2.50 .64 .41 2.48 .83 .70 2.51 I. Procedural justice .83 .68 8.11 II. Distributive justice .83 .69 8.56 III. Fairness of performance appraisal .97 .93 2.36 I. Procedural justice This organisation has developed procedures designed to provide opportunities to appeal or challenge the decisions. This organisation has developed procedures designed to generate standards so that decisions could be made with consistency. This organisation has developed procedures designed to hear the concerns of all individuals or groups affected by the decisions. This organisation has developed procedures designed to provide useful feedback regarding the decision and its implementation. This organisation has developed procedures designed to allow for requests for clarification or additional information needed by those affected by the decision. II. Distributive justice Considering the responsibilities that I have, I feel that I am fairly rewarded In view of the amount of experience that I have, I feel that I am fairly rewarded. For the amount of effort that I put forth, I feel that I am fairly rewarded. For work that I have done well, I feel that I am fairly rewarded. For the stresses and strains of my job, I feel that I am fairly rewarded III. Fairness of performance appraisal This organisation has a fair performance appraisal system. When I disagree with the results of my performance appraisal, I have channels to appeal. The performance appraisal system of this organisation is highly transparent. 2nd order: justice dimensions / justice Model fit: χ2 157.76 (df 58), p for χ2 .00, RMSEA .086, CFI .96, GFI .90, N 232, CN 126 Error correlations allowed: 1-3, 2-5, 3-5, 1-10 150 The α for this measure of organisational justice was .95 (N=228). b) Interactional justice The initial first-order model exhibited satisfactory fit statistics after freeing error covariances. The results of the CFA are presented below. Table 14: Results of follower interactional justice CFA RESULTS OF FIRST-ORDER CFA Follower interactional justice items λ R2 t My supervisor considers my viewpoint. .72 .52 12.39 My supervisor shows concern for my rights as an employee. .78 .61 13.98 My supervisor takes steps to deal with me in a truthful manner. .93 .87 18.50 My supervisor is able to suppress personal bias. My supervisor provides me with timely feedback about the decision and its implications. My supervisor treats me with kindness and consideration. .83 .69 15.09 .83 .69 15.34 .87 .75 16.37 My supervisor provides fair interpersonal treatment .81 .65 14.64 Model fit: χ2 19.53 (df 19), p for χ2 .021, RMSEA .071, CFI .99, GFI .98, N 210, CN 244 Error correlations allowed: 1 –2, 1-6, 1-5, 3-4, 4-7 The α for the measure of interactional justice was .91 (N=228). 5.3.5 Perceived similarity The three-item measure developed by Turban and Jones (1988) to measure perceived similarity was used in the present study. Perceived similarity was measured from both leader and follower perspectives with mirroring items. This measure has been used in many studies, including a study examining LMX development (Liden et al., 1993). a) Follower perceived similarity The three-item model of follower perceived similarity resulted in a saturated model with a perfect fit a chi-square of 0 (df = 0, p-value of 1.0 RMSEA of .0000 and CFI of 0.99 and GFI of .96 (indicating a simple model). In order to validate the similarity measure further, a two-factor model where the interactional justice items were also included was tested. The modification index indicated a cross-loading between the first similarity item and interactional justice as well as some error covariances between interactional justice and perceived similarity. The closely related nature of these two constructs is also indicated by the high correlation r = .73. However, the otherwise good fit statistics 151 obtained are interpreted as indicating sufficient discriminant validity. The results of this CFA are presented in the table below. Table 15: Results of follower perceived similarity CFA RESULTS OF FIRST-ORDER CFA Follower perceived similarity and interactional justice items λ R2 t I. Perceived similarity My supervisor and I are similar in terms of outlook, perspective, and values. My supervisor and I see things in much the same way. .86 .76 16.30 .87 .75 15.95 My supervisor and I are alike in a number of areas. .75 .56 12.95 My supervisor considers my viewpoint. .72 .52 16.64 My supervisor shows concern for my rights as an employee. .79 .62 14.08 My supervisor takes steps to deal with me in a truthful manner. .93 .87 18.57 My supervisor is able to suppress personal bias. My supervisor provides me with timely feedback about the decision and its implications. My supervisor treats me with kindness and consideration. .81 .67 14.91 .83 .68 15.21 .87 .76 16.60 My supervisor provides fair interpersonal treatment .80 .64 14.51 II. Interactional justice Model fit: χ 70.76 (df 27), p for χ .00001, RMSEA .084, CFI .97, GFI .94, N 232, CN 135.86 Error correlations allowed: 1-4, 1-7, 3-4, 4-8, 7-10 2 2 The alpha for the follower sample (N=229) of this scale was .82. To explore the discriminant validity of follower perceptions of their leader even further, a 6-factor model in which all follower LMX, perceived similarity, and interactional justice items were entered was run. Each LMX dimension constituted a two-item factor (the two items that had been selected on the basis of the individual CFAs were entered). The fit statistics obtained gave some indication of construct validity but also many cross-loadings. After a number of error covariances were set free the initial model obtained a chi-square of 434 (df = 99), p-value of .00, RMSEA of .121 and CFI of. 90 and GFI of .83. The AIC was 831 and CAIC 1058. The modification index indicated that professional respect and interactional justice are closely related. In comparison, a 3factor model where a distinction between the different LMX dimensions was not made did not exhibit as good fit statistics with a chi-square of 1025 (df = 132), p-value of .00, RMSEA of .171 and CFI of. 65 and GFI of .67 as well as model AIC 1103 and CAIC 1102. The modification index showed that one affect item cross-loaded on interactional justice, and that items from all the other dimensions cross-loaded on the similarity factor. This model was further compared to a model where all the items loaded on one factor measuring follower perceptions of leader. This model exhibited the worst fit with a chi-square of 1247 (df = 135), p-value of .00, RMSEA of .189 and CFI of. 59 and GFI of .63 as well as model AIC 1319 and CAIC 1479. The smallest AIC and CAIC values 152 obtained for the first model indicate that the 6-factor model fits the data better than the one- or three factor models. These results provide some evidence of discriminant validity although the cross-loadings between the factors are considered problematic. b) Western leader perceived similarity Three-item model of Western leaders perceptions of similarity resulted in a saturated model with a perfect fit a chi-square of 0 (df = 0, p-value of 1.0 RMSEA of .0000 and CFI of 0.99 and GFI of .96 (indicating a simple model). In order to validate the similarity measure further, a 5-factor model in which all Western leader LMX items were entered in addition to perceived similarity was run. The fit statistics obtained gave indicated construct validity for the similarity measure and discriminant validity for LMX and perceived similarity. The results of the CFA are reported below. Table 16: Results of Western leader perceived similarity CFA RESULTS OF FIRST-ORDER CFA Western leader perceived similarity and LMX items λ R2 t I. Perceived similarity My subordinate and I are similar in terms of outlook, perspective, and values. My subordinate and I see things in much the same way. .81 .64 9.18 .74 .55 8.00 My subordinate and I are alike in a number of areas. .98 .95 12.10 .99 .99 12.38 .81 .65 9.04 .72 .51 7.32 .76 .60 8.05 .54 .30 4.60 1.17 1.38 7.59 I am impressed with this subordinate ‘s knowledge of his/her job .80 .64 8.43 I admire this subordinate’s professional skills .93 .88 10.39 II. Affect I like this subordinate very much as a person This subordinate is the kind of person one would like to have as a friend III. Loyalty This subordinate would come to my defence if I were “attacked” by others This subordinate would defend me to others in the organisation if I made a serious mistake IV. Contribution I can depend on this subordinate to help when we are over-loaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. V. Professional respect . Model fit: χ2 51.59 (df 30), p for χ2 .0084, RMSEA .090, CFI .95, GFI .90, N 90, CN 79 Error correlations allowed: 1 –7, 1-10, 1-11, 7-4 This perceived similarity measure obtained an alpha of .76 (N=106). 153 In addition, this model obtained an AIC of 123 and CAIC of 249. In order two provide evidence of discriminant validity, this model was compared to a two-factor model of overall LMX and similarity as well as to a one-factor model where the LMX and perceived similarity items were forced on the same factor. The two-factor model obtained a chi-square of 184 (df = 43), p-value of .00, RMSEA of .192 and CFI of. 70 and GFI of .73. The model AIC was 230 and CAIC 310. The one-factor model exhibited the worst fit with a chi-square of 273(df = 44), p-value of .00, RMSEA of .242 and CFI of. 56 and GFI of .64 as well as model AIC 317 and CAIC 394. These results gave further support for the discriminant validity of perceived similarity and the LMX dimensions. c) Chinese leader perceived similarity Three-item model of Chinese leaders’ perceptions of similarity resulted in a saturated model with a perfect fit with a chi-square of 0 (df = 0, p-value of 1.0 RMSEA of .0000 (indicating a simple model). In order to validate the similarity measure further, the same procedure as with the Western measure was repeated and a 5-factor model in which all Chinese leader LMX items were entered in addition to perceived similarity was run. The fit statistics obtained gave indicated construct validity for the similarity measure and discriminant validity for LMX and perceived similarity. The results of the CFA are reported below. Table 17: Results of Chinese leader perceived similarity CFA RESULTS OF FIRST-ORDER CFA Chinese leader perceived similarity and LMX items λ R2 t I. Perceived similarity My subordinate and I are similar in terms of outlook, perspective, and values. My subordinate and I see things in much the same way. .99 .98 13.90 .75 .57 9.78 My subordinate and I are alike in a number of areas. .61 .38 6.72 II. Affect This subordinate is the kind of person one would like to have as a friend This subordinate is a lot of fun to work with .52 .27 5.79 .83 .68 8.33 .82 .68 9.07 .58 .33 6.55 .60 .36 6.60 .97 .95 9.88 .90 .81 8.17 III. Loyalty This subordinate would come to my defence if I were “attacked” by others This subordinate defends my work actions to others in the organisation, even without complete knowledge of the issue in question IV. Contribution I can depend on this subordinate to help when we are over-loaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. V. Professional respect I am impressed with this subordinate ‘s knowledge of his/her job 154 I admire this subordinate’s professional skills .62 .39 Model fit: χ 52.02 (df 30), p for χ .0008, RMSEA .073, CFI .94, GFI .93, N 137, CN 112 Error correlations allowed: 1-3, 4 -11,6-9, 7-9 2 6.37 2 This Chinese version (N=119 of the perceived similarity measure obtained an alpha of .77. In addition, this model obtained an AIC of 124 and a CAIC of 265. This model was compared to a two-factor model of overall LMX and similarity and a one-factor model, where the LMX and perceived similarity items were forced on the same factor. The two-factor model obtained a chi-square of 217 (df = 43), p-value of .00, RMSEA of .173 and CFI of. 68 and GFI of .77 as well as model AIC 263 and CAIC 354. The onefactor model exhibited the worst fit with a chi-square of 235 (df = 44), p-value of .00, RMSEA of .179 and CFI of. 63 and GFI of .76 as well as model AIC 279 and CAIC 365. These results gave further support for the discriminant validity of perceived similarity and the LMX dimensions. d) Equivalence and bias A test of equivalence between the Western and Chinese leader perceived similarity constructs was also conducted. The assumption of equal factor structure (including factor loadings) did not receive support with a chi-square of 38 (df=6), p-value of .00, RMSEA =.222, CFI=. 86 and GFI=.84 (all factor loadings significant). By freeing factor loadings, an adequate fit was still not produced with a chi-square of 33 (df=3), pvalue of .00, RMSEA =.306, CFI=. 86 and GFI=.84. In order to examine the sources of inequivalence further, an analysis of item bias of the leader responses was conducted. The analysis revealed that the first item demonstrated uniform bias while the other perceived similarity items were unbiased. 5.3.6 Perceived organisational support Nine items of the Survey of Perceived Organisational Support (SPOS; Eisenberger et al., 1986, 1990) was used in the present study. Wayne et al. (1997) and Hui used the same items. Only follower perceives organisational support was measured. Table 18: Results of follower perceived organisational support CFA RESULTS OF FIRST-ORDER CFA Follower perceived organisational support items λ R2 t This organisation's management shows very little concern for me. .54 .29 8.73 155 This organisation's management cares about my general satisfaction at work. This organisation's management really cares about my well-being. This organisation's management strongly considers my goals and values. This organisation's management cares about my opinions. Even if I did the best job possible, this organisation's management would fail to notice. This organisation's management is willing to extend itself in order to help me perform my job to the best of my ability. Help is available from this organisation's management when I have a problem. .85 .72 15.86 .91 .83 17.93 .92 .85 18.16 .81 .65 14.64 .49 .24 7.86 .63 .40 10.59 .78 .61 13.91 Model fit: χ2 28.3 (df 190), p for χ2 .019, RMSEA .060, CFI .99, GFI .97, N 233, CN 255 Error correlations allowed: 1–3, 4-6, 3-7, 7-8 The alpha for the measure (N=229) was .88 5.3.7 Organisation-based self-esteem A 10-item scale developed by Pierce, Gardner, Cummings and Dunham (1989) was used to measure follower organisation-based self-esteem (OBSE). The results of the CFA are presented below. As can be seen, the model did not obtain good chi-square statistics although all the items loaded significantly on the OBSE construct. As there is no theory to guide the modification of the scale and as all the items were significant, and as the scale obtained a high α (.91), the decision was made to include all the original items in the composite measure used in the subsequent analyses. Table 19: Results of follower perceived organisation-based self-esteem CFA RESULTS OF FIRST-ORDER CFA Follower organisation-based self-esteem items λ R2 t This organisation has faith in me. .65 .42 10.84 I count in this organisation. .86 .75 16.44 I am trusted in this organisation. .76 .58 13.57 I am a valuable part of this organisation. .90 .81 17.59 I am an important part of this organisation .94 .88 18.98 I am co-operative in this organisation. .72 .51 12.37 I am taken seriously in this organisation. .71 .53 12.74 I am helpful in this organisation. .84 .71 15.71 I am efficient around here .64 .41 10.73 156 I make a difference around here. .58 .33 Model fit: χ 129.60 (df 27), p for χ .00, RMSEA .128, CFI .95, GFI .90, N 233, CN 81 Error correlations allowed: 1-3 , 1-7, 3-6, 4-7, 6-10, 7-10 2 9.40 2 The alpha for this the measure (N=233) was .91 In order two provide evidence of discriminant validity of followers’ organisational perceptions, a CFA was conducted where all the POS, OBSE and justice items were included and a five-factor model tested (the three justice dimensions formed one factor each). This model was compared to a three-factor model (with only one justice factor) and a one-factor model where all the items were forced on the same factor. The fivefactor model obtained a chi-square of 565 (df = 213), p-value of .00, RMSEA of .844 and CFI of. 91 and GFI of .83 as well as model AIC 691 and CAIC 971. The modification index indicated that two of the distributive justice items cross-loaded on POS and two procedural justice items cross-loaded on OBSE. Furthermore, the 4th OBSE item cross-loaded on all the justice factors as well as on POS. Although these cross-loadings are somewhat problematic, this model exhibited better fit statistics than the three- or one-factor models and was hence retained. The three-factor model obtained a chi-square of 1268 (df = 227), p-value of .00, RMSEA of .141 and CFI of. 82 and GFI of .68 as well as model AIC 1366 and CAIC 1584. The one-factor model exhibited the worst fit with a chi-square of 3033 (df = 230), p-value of .00, RMSEA of .229 and CFI of. 59 and GFI of .47 as well as model AIC 3125 and CAIC 3330. These results gave some support for the discriminant validity of the examined organisational perceptions. 5.3.8 Job satisfaction A single-item measure of job satisfaction (‘All things considered, I am satisfied with my current job’) previously used by Chen et al. (1998) in a Chinese context was used in the present study. Prior research has shown that the validity of this measure is comparable to that of facet measures involving multiple items such as the MSQ (Chen et al., 1998). 5.3.9 Personality Two different personality measures were used in the present study: the NEO-FFI-S measure1 representing the five-factor model of personality (FFM) and the Chinese 1 "Reproduced by special permission of the Publisher, Psychological Assessment Resources, Inc., 16204 North Florida Avenue, Lutz, Florida 33549, from the NEO Five Factor Inventory, by Paul Costa, and Robert McCrae, Copyright 1978, 1985, 1989 by PAR, Inc. Further reproduction is prohibited without permission of PAR, Inc." 157 Personality Assessment Inventory (CPAI; Cheung et al., 1996) items pertaining to the Interpersonal relatedness factor. a) The five-factor measure of personality The NEO-FFI-S (Costa & McCrae, 1992) was developed as a short version of the NEO Personality Inventory (NEO-PI; Costa & McCrae, 1985) by selecting the 12 items from the longer inventory with the highest positive or negative factor loadings on each of the five corresponding factors (i.e. neuroticism, extroversion, openness, agreeableness and conscientiousness). Participants respond to 60 items (12 per factor) on a 5-point Likerttype scale ranging from strongly disagree (0) to strongly agree (4). Between 1990 and 1994, data on a Chinese translation of the NEO-PI-R was collected by Michael Bond and colleagues. The final version was administered by Ho (1994, as cited in McCrae, Costa & Yik, 1996). Internal consistencies of the scales were generally comparable to those found in American samples. A factor analysis provided evidence of the generalisability of the NEO-PI-R factor structure. This and other methodological tests suggest that personality traits identified in Western populations can be measured in Chinese samples, and that they show the same five-factor structure. This view is partly supported by the results obtained by Cheung et al. (2001), where a combined factor analysis of the Chinese Personality Assessment Inventory (CPAI) and the Chinese translation of the Revised NEO-PI measure of the five-factor model of personality (FFM) was conducted. The results show that four joint factors similar to the NEO-PI domains are shared between the personality inventories (neuroticism, extroversion, agreeableness, and conscientiousness) but that two specific factors emerge: The Interpersonal relatedness factor was defined only by the CPAI scales and the openness factor was not represented in the CPAI scales. However, Yang and Bond (1990) found a less convincing interrelation between the FFM and their emic Chinese personality model. The authors used the five personality factors isolated by Tupes and Christal (1961, as cited in Yang & Bond), which are closed to the more recent versions of the FFM, to study the interrelation between the Western and Chinese factors. The Western dimensions identified four of the five Chinese dimensions reasonably well but there was a one-to-one correspondence for only one of these four factors (social orientation and agreeableness). The authors conclude that the pattern of interrelations between imported and indigenous factors is complex and that the construct validation of the imported and indigenous instruments is likely to yield somewhat different theories about the local reality even if they both are true or useful. For the Chinese respondents (N= 273-278), the alpha for neuroticism, extroversion, agreeableness and conscientiousness from the NEO-FFI-S were .78, .74, .74, and .87 respectively. For the Western respondents (N=35-36) the alpha for these dimensions were.75, .32, .58, and .59. Interestingly, the alphas were higher for the Chinese measure, although the measure has a Western origin. What should be noted is that the low internal consistency reliabilities obtained for the Western sample could partly be explained by the low number of respondents (N=36). Due to the very small sample size in relation to parameters (only 36 western respondents), the decision was made not to assess the dimensionality and factor 158 structure of the complete theory-based five-factor model of personality. Instead, only those factors for which very low internal consistency reliability estimates had been obtained were further examined in order to detect and correct some of the problems with these measures. The FFM factor that demonstrated extremely low internal consistency reliabilities was extroversion with an alpha of .32 in the Western sample. In order to validate the measure, a CFA where extroversion was the only factor was conducted. When the initial one-factor model of extroversion was estimated for the Western sample, many variables with low or negative factor loadings, t-values and R2s were obtained. A significant number of factors had negative factor loadings, contradicting theory-based expectations. A closer examination of these negatively-loaded items revealed that they predominately dealt with activity and excitement-seeking (e.g. “I like to be where the action is and “My life is fast-paced), whereas the remaining items were more related to warmth and positive emotions (e.g. “I don’t consider myself especially light-hearted” [recoded] and “I am not a cheerful optimist” [recoded]). These two facets of extroversion hence seem to form two separate factors in the present Western sample. This is in line with the more detailed conceptualisation of the FFM model of personality, in which each of the five FFM factors is considered to consist of six facets. For extroversion, these facets are warmth, gregariousness, assertiveness, activity, excitement-seeking and positive emotions (see e.g. McRae et al., 1996). Instead of complicating the future analyses further by constructing two separate factors, the decision was made to delete the four negatively loaded items referring to “activity” as the items related to “positive emotions” are hypothesised to be of higher relevance in the present study. Furthermore, the additional four items with a t-value under 2 were deleted. This resulted in a four-item measure (with seven items deleted) of “extroversion” consisting of the following items: 1) “I like to have a lot of people around me”, 2) “I don't consider myself especially “light-hearted.”” 3) “I often feel as if I'm bursting with energy”, 4) “I am not a cheerful optimist”. This one factor-model measured by 4 items resulted in a statistically satisfactory model with a chi-square of 0.02 (df =2), p-value of .99, RMSEA of .00 and CFI and GFI of 1.o (too simple model?) The alpha for this scale was .56 (N=35) and .54 when used on the Chinese respondents. However, dropping two thirds of the original items raises the question to which extent the remaining items are able to capture what is generally considered as extroversion (an examination of the remaining four factors gives the impression that most facets of extroversion are included, with the exception of those related to activity). As the measure showed satisfactory reliability for the Chinese sample too, the decision was made to use this new measure of extroversion on both Chinese and Western respondents in order to facilitate comparison. b) The Chinese Personality Assessment Inventory As discussed earlier, the fact that the FFM can be replicated in China does not necessarily mean that it provides the most natural or useful way to describe personality in Chinese populations or that the five factors are fully comprehensive. That it why it was considered necessary to complete the personality measurement with the Interpersonal relatedness factor from the Chinese Personality Assessment Inventory 159 (CPAI; Cheung et al., 1996). The CPAI seems to provide a convincing basis for Chinese personality assessment and it has also been compared to the NEO-PI measure of the FFM, which facilitates its use in the present study. The CPAI is a multiphasic personality inventory that covers personality characteristics for normal as well as diagnostic assessment. The purpose of this personality inventory is to provide a reliable and valid assessment instrument relevant specifically to the Chinese people (Cheung et al., 1996). The Interpersonal relatedness factor, which is the only factor of the CPAI included in the present study, was characterised mainly by the culture-related scales developed for the CPAI. The harmony, modernisation and ren qin scales are focal in the present study and they were measured for both Western and Chinese respondents. The uniqueness of the Interpersonal relatedness Factor has according to Cheung and Leung (1998) been confirmed in a number of follow-up studies. Cheung et al. (2001) conducted a combined factor analysis of the CPAI and the Chinese translation of the Revised NEO-PI measure of the FFM using 297 Chinese college students as respondents. The results show that four joint factors similar to the NEO-PI domains are shared between the personality inventories. These factors are neuroticism (also called mental stability), extroversion, agreeableness, and conscientiousness. However, two specific factors were obtained: The Interpersonal relatedness factor was defined only by the CPAI scales and the openness factor was not represented in the CPAI scales. This indicates that neuroticism, extroversion, agreeableness and conscientiousness could be more universal factors than Interpersonal relatedness and the Western openness to experience, which seem to have a more emic and culture-specific character. Zhang (1997) obtained similar results in a combined factor analysis of 12 CPAI scales associated with the Interpersonal relatedness factor and the NEO Five-Factor Inventory (NEO-FFI; Costa & McCrae, 1992). When the FFI scales were deliberately loaded onto five separate factors as the markers of the factors, a six-factor solution was obtained. Whereas at least one of the CPAI scales loaded on the other five factors, the sixth factor was characterised by ren qin and harmony, the key scales on the Interpersonal relatedness Factor, but none of the scales from the NEO-FFF (Cheung & Leung, 1998). For the Chinese respondents (N= 266-278), the alphas for harmony, face, ren qin, modernity, thrift, flexibility were .60, .73, .45, .58, .67, .66, respectively. For the Western respondents (N= 35-36) the alphas were .76, .57, .52, .49, .60, and .76. CFAs were conducted to explore whether the factors with the lowest reliabilities could be improved, but satisfactory models were not produced. The decision was hence made to rely on the original measure taking validation analyses conducted in previous research as evidence of sufficient construct validity. These low reliabilities, however, indicate that the results obtained using these measured should be interpreted with caution. This concerns especially the difference scores that will be calculated based on the CPAI factors. 5.3.10 Values The respondents completed the Schwartz Value Survey (SVS; Schwartz, 1992). The SVS was selected to measure values because it is a globally developed and validated 160 measure of individual values. Thus, unlike measures such as the Hofstede dimensions, the SVS is relevant at the individual level, as well as being validated in China (Schwartz, 1992). In the survey, the respondents are asked rate how important 57 different values are as guiding principles in life on a scale ranging from –1 to 7. -1 was for rating any values opposed to the guiding principles and 7 was for rating a value of supreme importance as a guiding principle in life. Furthermore, 0 means the value is not at all important, 3 means the value is important, 6 means the value is very important. To correct for individuals’ and cultural groups’ different use of the scale, the mean scores for each value were centred on each respondent’s mean rating of all items. The alphas of the 10 value indexes ranged from .61 to .80 for the Chinese sample (N= 264-275) and from .47 to .79 (N=33-36) for the Western sample. These coefficients are in the customary range found in previous research (see Schmitt, Schwartz, Steyer and Schmitt, 1993). More specifically the alphas for the conformity, tradition, benevolence, universalism, self-direction, stimulation, hedonism, achievement, power, security scales for the Chinese sample were .80, .64, .82, .81, .69, .73, .61, .71, .65, .75, respectively. For the Western sample, the alphas were .65, .68, .79, .73, .54, .50, .79, .75, .47, and .68. 5.3.11 Cultural knowledge An index of cultural knowledge was created (the mean of standardised scores). The follower index contained the following variables: education abroad, number of types of cross-cultural training, hours of cross-cultural training, months spent on international assignments, months working in intercultural dyads, knowledge of dyadic partner’s mother tongue. The leader index contained the same variables but it contained one additional variable measuring months working in China. 5.3.12 Actual similarity Discrepancy scores were calculated for the demographic information gathered including age, gender, and educational level. Gender discrepancy was coded as the same (0) or different (1). Educational and age discrepancy was the absolute difference between leaders and followers. The discrepancy scores were divided by their respective standard deviations (procedure adopted from Liden et al, 1993) and a composite measure of demographic differences was created by summing the discrepancy scores obtained for age, gender and education. Discrepancy scores were also calculated for all the personality scales (both FFM and CPAI) and values. The low reliabilities obtained for some of the measures are of concern since difference scores are sensitive to the reliabilities of the original measures. 161 5.3.13 Control variables The control variables were measured as reported below. a) Work role boundary The followers were asked to rate (with a yes or no option) whether they agree that a specific OCB item in the OCB scale used (Podsakoff et al., 1990) is an expected part of their jobs. 11 items were selected for this purpose. These were mainly altruism and civic virtue items, as many of the other items were worded in a negative way that made it difficult to consider them a part of any job (e.g. “consumes a lot of time complaining about trivial matters”). The leaders were asked to rate the degree to which the same OCB items are an expected part of their followers’ jobs. The alpha for the follower version (N=173) of this scale was .64. For the leader scale, the Chinese version (N=91) obtained an alpha of .84 and the English version (N=87) .62 b) Dyadic and positional information Information about time spent in company and present position was gathered, as well as information about type of position and rank in the organisation. The leaders were also asked to indicate the number of followers they currently supervise. Furthermore, both leaders and followers were asked to indicate how many times and for how many hours a week they interact, as well as for how many months they have been working together. Dividing the individual interaction scores by the mean and averaging these scores created a mean indexed score of interaction. 162 5.4 ANALYTIC PROCEDURES As the large number of hypotheses developed in the present study indicates, the purpose of this study is to develop a relatively comprehensive theory-based model of LMX antecedents and to explore one major outcome of LMX quality using a significant number of control variables. The large number of variables is both the strength and a weakness of the present study that has influenced the choice of analytic procedures used for testing the hypotheses. The number of variables is problematic in relation to the relatively small sample size. Around 80 intercultural and 150 intracultural dyads does not enable the inclusion of all hypothesised variables in one model without reducing the ability to detect statistically significant relationships. What reduces the sample size even further is the decision to analyse intercultural and intracultural dyads separately. To recall, the literature review indicates that the majority of the hypotheses should be relevant both in intercultural Western-Chinese and intracultural Chinese dyads. However, the analyses conducted to validate the constructs and measures revealed inequivalence of factor structure and item bias across Chinese and Western leaders. This means that the Western and Chinese leader constructs are neither equal nor comparable. As a result, separate analyses for Chinese followers working with Western leaders and those working with Chinese leaders have to be conducted. However, a separate analysis of intercultural dyads is not only a negative necessity but a favourable outcome from an empirical and theoretical perspective, as examining intercultural interaction seems to be the field in which the greatest theoretical and practical contributions can be made. 5.4.1 Comparing groups The general, comparative dyad-level hypothesis concerning the level of LMX quality in intercultural versus intracultural dyads will be tested using t-tests and analysis of covariance. Independent samples t-tests will be conducted to explore whether the means in the different groups differ significantly from each other. In addition, analyses of covariance (ANCOVA) will be carried out to eliminate the effect of confounds. In these analyses, the grouping factor will be the independent variable (i.e. leader cultural background) and the outcome that is being compared, i.e. LMX or values, will be the dependent variable. Variables that are expected to be related to the dependent variable and for which significant group-level differences have been detected will be included as covariates (e.g. age differences regarding LMX quality). If the impact of leader cultural background on the outcome variable disappears when the covariates are included, it means that leader cultural background is less important as a determinant than the covariates. ANCOVA compares the regression lines of two groups and tests whether the difference between the intercepts of these two lines is significantly different from zero. If the 163 difference is significant, then the regression line of one group is significantly elevated over the regression line of the other group. The ANCOVA model assumes that the slopes of the regression lines are the same for each group and that the regression lines hence are parallel (e.g. Bryman & Cramer, 1997). When the slopes are parallel, the level of differences between groups can be estimated at any given score of the covariates. If the slopes are not parallel, the level of differences will depend upon which covariate score is selected. To test the assumption of homogeneity of regression slopes, a model that includes the interaction between the covariate and dependent variable is analysed. If the effect of the interaction term is significant, then the assumption of homogeneity of regression slopes has been broken (e.g. Field, 2000) and the results have to be interpreted with caution (and are relevant mainly at the particular score of the covariate). Both the raw (unadjusted) and the adjusted means (estimated marginal means) will be reported in conjunction with the ANCOVA results. The adjusted means are the predicted means of the dependent variable at the overall mean of the covariates. In other words, the adjusted means are the means of the dependent variable expected if both groups had the same covariate means. What should be noted is that cross-cultural comparisons can only be conducted for those measures that demonstrate equivalence and non-bias. The hypothesism that intracultural Chinese dyads will demonstrate higher LMX than intercultural Western-Chinese dyads, can hence only be tested from a follower perspective. This is due to the fact that the leader LMX measure did not demonstrate cross-cultural equivalence. 5.4.2 Detecting relationships between variables Hierarchical linear multiple regression analyses will be used to test the hypotheses regarding antecedents and outcomes of LMX. A hierarchical approach is recommended over the simultaneous model when the independent variables can be ordered with regard to their temporally or logically determined priority (cf. e.g. Cohen & Cohen, 1975). For instance, gender could be considered causally prior to an attitude. The hierarchical analysis proceeds by entering the independent variables in a specified order and examining the significance of the increased variance explained by the variables entered at each step. Both changes in R2 and the significance the change will be reported (sig. of delta F). The hypotheses relating to the antecedents of follower LMX will be tested by entering the follower personal characteristics in the first step, leader personal characteristics in the second step, interpersonal variables in the third step, leader LMX in the fourth step, the first mediator (perceived similarity) in the fifth step, and the second mediator (interactional justice) in the sixth step. Leader LMX will be tested by entering the leader personal characteristics in the first step, follower personal characteristics in the second step, interpersonal variables in the third step, leader LMX in the fourth step, the first mediator (perceived similarity) in the fifth step, and the second mediator (follower inrole performance) in the sixth step. This procedure enables the assessment of the incremental variance explained by each group of variables and hence a more thorough understanding of the antecedents of LMX than could have been gained through a 164 simultaneous model. This is especially important, as the large number of variables in relation to sample size will make it difficult to detect statistically significant relationships in the form of significant beta weights. In case significant beta weights are not produced, the hierarchical approach enables at least identifying which type of variables as a group explain a significant part of the variance in the model. In addition to developing a comprehensive descriptive model, it is of some interest to identify variables that are most strongly related to LMX quality. In order to identify a more predictive model, the method of backward deletion will be used. This procedure begins by regressing the dependent variable on all the independent variables. In this case, the full model with all the variables included at the last step of the hierarchical analysis will be subjected to backward deletion. If any variables are statistically insignificant, the variable making the smallest contribution to R2 is dropped. The procedure continues until all remaining variables are statistically significant. However, this approach is considered atheoretical by most social scientists, as the computer does not consider the variables in a theoretical order but the variables are chosen on a purely statistical basis (cf. e.g. Bryman & Cramer, 1997). A major problem with backward deletion is “under-inclusion”, when a predictor that is deleted from a larger (earlier) model would contribute to a smaller model but isn’t re-included. There are hence no guarantees that the final model will indeed be the best model. Hence, this procedure will only be used to provide additional information and not as the main foundation for accepting or rejecting hypotheses. It could be noted that composite scores calculated from the shortened measures obtained from the individual and overall confirmatory factor analyses will be used in the regression analyses. A potential problem with the data has to pointed out. As Cooper and Weakes (1983) suggest, outside the experimental sciences it is rarely possible to actually vary one explanatory variable and hold the others fixed, as the regression analysis assumes. It is expected that many of the explanatory variables could be closely related. This concerns especially the personality measures, which have been found to be closely associated to each other (e.g. a negative relationship between neuroticism and extroversion has been reported) as well as between the perceptual factors measured from the same source. The data is hence likely to exhibit multicollinearity. This will make it difficult to disentangle the separate effects of individual explanatory variables. Strategies for dealing with multicollinearity are dropping variables which may cause multicollinearity from the analysis or producing one or more derived aggregative variables based upon the given explanatory variables (e.g. Cooper & Weakes, 1983). However, as there are strong theoretical reasons for including all the explanatory variables in the models and as these variables have been found to be conceptually distinct, these strategies will not be followed in the present study. Instead, multicollinearity will be dealt with a posteriori during the interpretation stage. If the presence of multicollinearity is suspected, as indicated e.g. by unstable beta coefficients or through beta coefficients that have a strongly different sign than the correlation matrix indicates, this will be reported. The advantage of the hierarchical approach is that “bouncing betas” can be identified by comparing the sign of the beta coefficients obtained at different stages. The tolerance of the variables will also be examined. A small value of tolerance indicates that the 165 variable under consideration is almost a perfect linear combination of the independent variables already in the equation and that that it should not be added to the regression equation. Some statisticians suggest that a tolerance less than 0.1 deserves attention (Dallal, 2001). Tolerance is sometimes re-expressed as the Variance Inflation Factor (VIF), which is the inverse of the tolerance (1/tolerance), so that tolerances of 0.10 become VIFs of 10 or more. The VIF values of all variables will not be reported, but only those that are close to 10. Mediation will be tested using the three-step approach recommended by Baron and Kenny (1986). In the first step, the mediator is regressed on the independent variable. In the second step, the dependent variable is regressed on the independent variable. In the third step the dependent variable is regressed simultaneously on both the independent variable and the mediator. According to Baron and Kenny, the following conditions should be met for a independent variable-mediator-dependent variable relationship: the independent variable must affect the mediator in the first equation; the independent variable must affect the dependent variable in the second equation; the mediator must affect the dependent variable in the third equation; and finally, the effect of the independent variable on the dependent variable must be less in the third equation than in the second equation (Baron & Kenny, 1986 p. 1177). Full mediation is indicated if the independent variable has no significant effect when the mediator is controlled and partial mediation is indicated if the independent variable’s effect is significant but smaller when the mediator is controlled (Van Dyne et al., 1994). Mediation will be tested through the hierarchical regression analyses by comparing the results obtained before and after the mediators are included in the equation. The hierarchical approach will also be used to examine the effect of the hypothesised moderators. Moderating effects were tested by examining the change in R2 attributable to the interaction term. If the interaction term added to the final stage produced a significant R2, the x variable could be said to be a moderator of the relationship. The independent variables were centred on their means before creating the interaction terms (Cronbach, 1987) in order to reduce multicollinearity problems (e.g. Katila, 2002). 166 6 RESULTS This chapter begins with a general description of the data (section 6.1) including an examination of central and significant correlations and a presentation of differences in mean scores. Then, the results pertaining to the hypothesised differences in LMX quality in intercultural Western-Chinese versus intracultural Chinese dyads will be reported (section 6.2). Next, the results pertaining to the antecedents of LMX quality will be reported beginning with the antecedents of follower LMX quality (section 6.3) and continuing with the antecedents of leader LMX quality (section 6.4). Intercultural and intracultural Chinese dyads will be discussed separately. Finally, the results pertaining to the relationship between LMX and organisational citizenship behaviour are presented (section 6.5), making the same distinction between intercultural and intracultural dyads. 6.1 DESCRIPTIVES The correlations between the variables used in the present study are reported for intercultural and intracultural dyads separately in the tables in Appendix 3 (see p. 320). Separate tables have been constructed for the antecedents of follower LMX, the antecedents of leader LMX, and the antecedents of organisational citizenship behaviours reflecting the different regression models. Some central correlations are summarised in section 6.1.1 and differences in mean scores are reported in section 6.1.2. 6.1.1 Central and significant correlations An examination of the zero-order correlations between LMX, its dimensions, and hypothesised antecedents and outcomes reveals that LMX measured from both leader and follower perspective correlates significantly with many of the hypothesised antecedents and outcomes in both intercultural and intracultural dyads. The correlations between LMX and the perceptual variables measured from the same source are especially high. For instance, follower perceived similarity, interactional justice, follower perceptions of OCB, and POS correlate significantly with follower LMX and its dimensions. In a similar vein, leader perceived similarity and leader perceptions of follower performance correlate with leader LMX and its dimensions, just to name a few examples. Significant correlations between hypothesised antecedents and outcomes of LMX including its dimensions are in addition to the correlation tables reported in the regression tables (see p. 334) and will not be discussed further here. The correlation matrix also indicates that many of the antecedents of LMX are highly interrelated pointing towards potential multicollinearity problems. For instance, the correlations between personality traits are very high for all but Western leaders. As expected, the difference scores also often correlate significantly with their components (e.g. age difference correlates with age). Furthermore, as mentioned earlier, the 167 correlations between the perceptual variables measured from the same source are high. As the subsequent analyses involve interrelated variables, interpretations of the results have to be made with caution. Warning signs that will be considered during the interpretation and presentation of the results are unstable beta coefficients or beta coefficients that have a significantly different weight than the correlation matrix indicates. The correlation matrix reveals that the different LMX dimensions correlate significantly with each other, with a few exceptions. Regarding follower LMX in both intercultural and intracultural dyads, the correlation between the affect and professional respect dimensions are very strong (r > .59**). The correlations between the other dimensions are still significant (r >.25**), with th**e exception of the correlation between the loyalty and contribution dimensions (r = .17 in both dyad types). In intercultural dyads, the loyalty dimension correlates moderately only with affect but not with the other dimensions. In intracultural Chinese dyads, the correlation between loyalty and contribution is less significant than the correlations between the other dimensions. Concerning Chinese leader LMX, all correlations between dimensions are significant, with the exception of the correlation between loyalty and professional respect (r = .12). The correlation between affect and contribution is also somewhat lower than the other correlations (r = .21*, whereas other correlations r >.27**). The correlation between loyalty and contribution is the strongest (.59**). For Western leaders, all the other dimensions are significantly correlated (r > .27**), with the exception of the correlation between contribution and affect (r = .18). The correlation between loyalty and affect is the strongest (r = .52**). The fact that not all the LMX dimensions are as closely interrelated underlines the importance of conducting separate analyses for each dimension. An examination of the correlations (not included in the tables in the appendix) also reveals that the correlation between leader and follower reports of LMX is low in Chinese (r = .17, p = 0.80) and in intercultural dyads (r = .17, p = .149). However, in intercultural dyads, the correlation between leader and follower contribution is close to statistical significance (r = .206, p = .077). The correlations between leader and follower perceptions of follower inrole performance and OCB are also low. In intercultural dyads, the correlation between leader and follower reports of follower inrole performance (r = .11, p = .490) is lower than in intracultural Chinese dyads (r = .21, p = .088). However, regarding OCB, the correlation between leader and follower reports is higher in intercultural dyads (r = .21, p = .176) than in intracultural Chinese dyads (r = .12, p = .348). 6.1.2 Differences in mean scores The tables above indicate that there are differences in the mean scores for LMX antecedents and outcomes obtained in intercultural Western-Chinese and intracultural Chinese dyads. T-tests were conducted to identify statistically significant differences ** p < 0.01 168 between intercultural and intracultural dyads and these results are reported below. An awareness of these differences is important as they could bias the results. Once again, it should be pointed out that as the perceptual leader measures did not demonstrate crosscultural equivalence, the perceptions of Western and Chinese leaders cannot be compared. However, the personalities and values of Western and Chinese leaders are more comparable as the personality and values measures have undergone extensive cross-cultural validation analyses. When the mean scores of all the hypothesised antecedents and outcomes of LMX as well as control variables obtained for intercultural versus intracultural dyads were compared using t-tests, the following significant differences (p < .10) were detected with regard to followers: 1) The (Chinese) followers who work with Western leaders are less conscientious than those who work with Chinese leaders; 2) The followers who work with Western leaders perceive more interactional and organisational justice than those who work with Chinese leaders; 3) The followers who work with Western leaders perceive more organisational support than those who work with Chinese leaders; 4) The followers who work with Western leaders, surprisingly, perceive more similarity with their leaders than those followers who work with Chinese leaders; 5) The followers who work with Western leaders define their work roles more narrowly than those followers who work with Chinese leaders; and 5) The followers who work with Western leaders are somewhat more educated than those followers who work with Chinese leaders. The following significant differences (p < .10) were detected with regard to leaders: 1) The Chinese leaders in the sample are significantly younger than the Western leaders; 2) Chinese leaders are somewhat less educated than the Western leaders; 3) Chinese leaders are somewhat more neurotic than Western leaders; 4) Chinese leaders score higher on extroversion than Western leaders; 4) Chinese leaders score higher on harmony than Western leaders; 5) Chinese leaders score higher on self-enhancement than Western leaders; and 6) Chinese leaders define work roles more narrowly than Western leaders. One additional interesting finding is that Chinese leaders score significantly higher on collectivism and somewhat lower on individualism than the Western leaders. To satisfy my curiosity regarding these important cultural dimensions, I conducted t-tests and ANCOVAs to explore these differences further. The results of these analyses are reported in Appendix 4 (see p. 332). In sum, these analyses indicate that Chinese leaders score significantly lower on individualism than Western leaders whereas large differences in collectivism could not be detected when demographic factors were controlled for. In addition, the following significant differences (p < .10) were detected with regard to the dyad-level interpersonal variables: 1) The age difference between leader and follower is smaller in Chinese than in intercultural dyads. The average age difference in Chinese dyads is 5.5 years and as 169 much as 13 years in intercultural dyads; 2) The difference between leader and follower in Interpersonal relatedness is smaller in Chinese than in intercultural dyads; 3) The interaction intensity (reported by leaders) was less significant in Chinese than in intercultural dyads. In addition, t-tests were performed to detect whether leader personality and values differ significantly from follower personality and values. This information is useful as LMX quality is predicted to be an outcome of both leader and follower characteristics and their relation to each other. In order to control for cultural background, Chinese followers were compared to Chinese leaders while Western leaders were excluded from the analyses. The t-tests revealed significant personality differences between Chinese leaders and followers on all FFM traits except for neuroticism. No significant differences were found regarding Interpersonal relatedness or values. It could be that certain personality traits prevail or are required for a leader position in a Chinese crosscultural context. 170 6.2 DIFFERENCES IN LMX QUALITY Dyad-level hypothesis 1 predicts that intracultural Chinese dyads will demonstrate higher LMX quality than intercultural Western-Chinese dyads. As mentioned earlier, this hypothesis can only be tested from a follower perspective, as the leader LMX measure did not demonstrate cross-cultural equivalence. Phrasing it differently, testing this hypothesis entails establishing whether the cultural background of the leader (i.e. whether the leader is Western or Chinese) has an impact on follower perceptions of LMX quality. To test this hypothesis, t-tests and analyses of covariance were conducted. T-tests were carried out to explore whether the means in the two groups differed significantly from each other. Analyses of covariance were conducted to explore the effect of potential confounding variables. To test the assumption of homogeneity of regression slopes required for the analyses of covariance, a model that included the interaction between the covariate and dependent variable was analysed. T-tests revealed significant differences between intercultural and intracultural Chinese dyads with regard to overall follower LMX and all follower LMX dimensions with the exception of professional respect. The followers working with Western leaders consistently reported higher LMX than those followers working with Chinese leaders. In order to explore the effect of potential confounding group-level variables, analyses of covariance were conducted. Different levels of demographic differences in Chinese and intercultural dyads were detected (e.g., the average age difference in Chinese dyads was 5.5 years and as much as 13 years in intercultural dyads). As demographic differences also have been found to be related to LMX, age, gender and education differences were included as covariates. The analysis of covariance with overall follower LMX as the dependent variable and age, gender and education differences as covariates indicated that the cultural background of the leader had a relatively significant effect (F = 3.676, p = .057). None of the covariates demonstrated significance. The adjusted mean of overall LMX in intercultural dyads was 3.7 and 3.5 in intracultural Chinese dyads. This adjusted mean was obtained at age differences of 1.15, education differences of 1.05, and gender differences of .694. The analysis of the interaction terms between leader cultural background and the covariates indicated that the slopes were relatively equal. This finding contradicts dyad-level hypothesis 1, as LMX was slightly higher in intercultural dyads and not lower, as predicted. The analysis of covariance with follower affect as the dependent variable also indicated that cultural background of the leader had a impact (F = 3.3934, p = .049) with gender differences emerging as a covariate. The adjusted mean for affect was 4.1 in intercultural and 3.8 in intracultural Chinese dyads. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. The analysis of covariance with follower loyalty as the dependent variable indicated that cultural background of the leader did not have a significant impact (F = 1.062, p = .304) with no demographic differences showing significance. The adjusted mean for loyalty 171 was 3.2 in intercultural and 3.0 in intracultural dyads. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. The analysis of covariance with follower contribution as the dependent variable indicated that cultural background of the leader did not have a significant impact (F = 1.760, p = .186) whereas the effect of age difference was significant. The adjusted mean for contribution was 3.8 in intercultural and 3.2 in intracultural dyads. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. In a similar vein, the cultural background of the leader did not have a significant impact (F = .800, p = .372) on follower professional respect, and neither did any of the covariates. The adjusted mean for professional respect was 4.1 in intercultural and 3.9 in intracultural Chinese dyads. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. In sum, overall LMX and affect were higher in intercultural than in intracultural dyads. (Furthermore, although leader cultural background did not account for significant differences with regard to the remaining LMX dimensions, the means were consistently somewhat higher in intercultural than in intracultural dyads). The dyad level hypothesis that predicts that LMX quality will be higher in intracultural than in intracultural dyads did hence not receive support. The finding the leader-member exchange quality is higher in intercultural dyads than in intracultural dyads contradicts the proposition made by Tsui, Xin and Egan (1996) that when leaders are of the same race or gender as their followers, higher leader-member exchange quality will follow than in the case of race and gender dissimilarity. Previous research has shown that a person’s appearance and cultural background alone can have an impact on how the person is assessed (e.g. Gilbert et al., 2002). The higher quality of leader-member exchange reported in intercultural dyads could have been partly caused by a general admiration by Chinese followers for Western management and hence positive stereotypes of Western leaders. In other words, the Chinese followers who work in the subsidiary may have chosen to work for the Western company as a result of a general appreciation for Western values and management. This interpretation is supported by popular books, such as one written by Larry Wang (2001), where reference is made to the “outstanding career opportunities” (p. 5) offered by multinational companies for Chinese employees, including an appreciation of skills, greater exposure (as compared to traditional Chinese companies) and responsibility, being in the spotlight, international exposure, and faster career advancement. In sum, it is asserted that working for a multinational company can offer personally and professionally rewarding opportunities. Furthermore, this line of thinking is supported by findings that the implementation of Western management practices has a favourable impact on organisational performance in the Chinese context. For instance, Björkman and Fan (2002) found that the implementation of performance based rewards and individual performance appraisal had a positive effect on the performance of ChineseWestern joint ventures. The results of the study conducted by Bu and Xu (2000) also suggest that Chinese employees in general would welcome the introduction of Western- 172 style market-oriented management systems. It could hence be assumed that the Chinese followers have chosen to work in Western-owned subsidiaries in expectation of increased Western-style opportunities using Western procedures and practices and working with Western leaders. 173 6.3 ANTECEDENTS OF FOLLOWER LMX To recall, a total of 20 hypotheses concerning the effect of various personal, interpersonal and behavioural antecedents on follower LMX quality and its dimensions have been developed in the present study (see p. 92 for the list of hypotheses). The 13 first hypotheses link various personal leader and follower characteristics, including personality, values and cultural knowledge to follower LMX quality. Hypotheses 14–18 concern so-called interpersonal antecedents of LMX including actual and perceived similarity. Hypothesis 19 links behaviours to LMX, predicting that fair treatment provided by the leader in the form of interactional justice will have a favourable impact on follower LMX quality. Finally, Hypothesis 20 predicts a positive relationship between leader and follower LMX and a mediating role of the behavioural interactional justice factor. These hypotheses are expected to be relevant both in intercultural and intracultural dyads. In all the analyses, i.e. for each LMX dimension in both dyad types, the procedures adopted are the same. The hypotheses were tested using hierarchical regression analyses entering the variables that are logically and theoretically considered to be prior to others first. As a result, follower personal characteristics were entered in the first step, leader personal characteristics in the second step, interpersonal variables in the third step, leader LMX in the fourth step, the first mediator (perceived similarity, which is also categorised as an interpersonal variable) in the fifth step, and the second mediator (interactional justice, which is a behavioural variable) in the sixth step. This procedure enables the assessment of the incremental variance explained by each group of variables and hence a more thorough understanding of the antecedents of LMX than could have been gained through testing only the simultaneous model. In addition to regressing LMX on its antecedents, the mediators were regressed on the independent variables to enable analyses of mediation. As a further aid to determine the relative importance of various antecedents of LMX, the backward deletion method was used at the last step. The results of the regression analyses are presented in the tables in Appendix 5 (see p. 334). All variables that correlate significantly with the dependent variable are also reported in the tables in the appendix. It should be noted that the full hierarchical model is the theoretical model, while the results obtained trough backward deletion and the reported correlation coefficients serve only as additional aids during the interpretation of results. These additional aids are deemed to be necessary due to the large number of variables included in the models as well as due to possible multicollinearity problems. It is important to note that in the present study, a variable is judged to be a significant antecedent of LMX in case the beta weight (obtained either at the final step in the hierarchical model or through backward deletion) is significant and the sign of the coefficient does not differ from step to step and is consistent with the correlation coefficient. The results pertaining to follower LMX in intercultural Western-Chinese dyads will be presented first (section 6.3.1), continuing with the results obtained for intracultural Chinese dyads (section 6.3.2). The results pertaining to the antecedents of follower LMX in both dyad types are summarised in section 6.3.3. 174 6.3.1 Intercultural dyads The results concerning follower LMX in intercultural dyads have been grouped under the headings a) personal antecedents, b) interpersonal antecedents, and c) behavioural antecedents. These results are summarised on a dimension level in section d). After presenting the results in conjunction with the hypotheses, the results are illustrated in each subsection in the form of figures, followed by a discussion of the results. The emphasis in the discussion is on unexpected results and antecedents that have a significant effect by influencing multiple dimensions of LMX. The theoretical background for the remaining supported hypotheses can be found in Chapter 3, where the hypotheses are developed. As noted earlier, more specific regression results including beta weights and levels of significance are reported in the tables in Appendix 5 on p. 334. a) Personal antecedents Follower LMX hypothesis 1 predicting that follower extroversion will be positively related to all dimensions of follower LMX was supported with regard to the affect dimension, although the positive effect of extroversion was almost fully mediated by interactional justice. Follower LMX hypothesis 2 predicting that leader extroversion will be positively related to all dimensions of follower LMX was partially supported as leader extroversion had a significant positive effect on overall LMX and the loyalty dimension. Follower LMX hypothesis 3 predicting that follower neuroticism will be negatively related to the affect, loyalty, and professional respect dimensions of follower LMX was supported with respect to the loyalty dimension. Follower LMX hypothesis 4 predicting that leader neuroticism will be negatively related to all dimensions of follower LMX was supported with regard to overall LMX and all dimensions but professional respect. The negative effect of neuroticism on the affect and loyalty dimensions was almost fully mediated by perceived similarity. Follower LMX hypothesis 5 predicted that leader agreeableness will be positively related to the affect, loyalty and contribution dimensions of follower LMX. Leader agreeableness had a positive impact on follower loyalty, providing partial support for the hypothesis. Follower LMX hypothesis 6 predicting that follower conscientiousness will be positively related to the contribution dimension of follower LMX was supported as follower conscientiousness had a strong positive impact on overall LMX and on the contribution dimension. Follower LMX hypothesis 7 predicting that leader conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of follower LMX was not supported as leader conscientiousness had a negative impact on follower contribution. 175 Follower LMX hypothesis 8 predicted that follower harmony will be positively related to all dimensions of follower LMX. This hypothesis was partly supported as follower harmony had a positive effect on both overall LMX and the contribution dimension. Follower LMX hypothesis 9 predicting that leader harmony will be positively related to all dimensions of follower LMX did not gain support, and is hence rejected. Follower LMX hypothesis 10 predicting that high leader self-enhancement values will be negatively related to the affect and loyalty dimensions of follower LMX was not supported. Follower LMX hypothesis 11 predicting that high leader self-enhancement values will be positively related to the contribution and professional respect dimensions of follower LMX was not supported. However, self-enhancement demonstrated a positive effect on overall LMX, which was almost fully mediated by perceived similarity, which provides partial support for the hypothesis. Follower LMX hypothesis 12 predicted that follower cultural knowledge will be positively related to all dimensions of follower LMX. This hypothesis received partial support as cultural knowledge had a positive impact on the contribution dimension. However, it seems that follower cultural knowledge tends to have a predominately negative impact on follower perceptions, namely overall LMX and loyalty, through the mediation of perceived similarity (the direct negative effect of follower cultural knowledge on perceived similarity was close to statistical significance). Follower LMX hypothesis 13 predicting that leader cultural knowledge will be positively related to all dimensions of follower LMX was not supported, although leader cultural knowledge had a positive impact on perceived similarity and correlated positively and significantly with interactional justice and the contribution dimension of LMX. It should also be noted that of the control variables, follower tenure in company had a positive effect on affect, leader education a strong negative effect on professional respect, and the number of employees supervised by the leader a positive effect on loyalty. An examination of the incremental variance explained by the blocks of leader and follower personal characteristics revealed that follower characteristics had a significant effect on the affect and contribution dimensions of LMX, a less significant effect on overall LMX and interactional justice, and no effect on the other dimensions. Leader characteristics, in turn, explained significant incremental variance in the loyalty and contribution dimensions as well as perceived similarity. These results are summarised in the figure below. The signs are explained below the figure. 176 Figure 4: Follower personal characteristics and follower LMX, intercultural Follower extroversion Follower neuroticism +m j Follower overall LMX* – LMX dimensions Affect* + Follower + conscientiousness Loyalty + Contribution* – m s Follower harmony + Follower cultural knowledge s –m + Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mj = mediated by interactional justice The significant effect demonstrated by follower personal characteristics on follower perceptions of LMX quality indicates that relatively stable characteristics indeed dispose the interacting individuals to approach interpersonal situations in a certain way, as suggested e.g. by Uhl-Bien et al. (2000) and Brower et al. (2000). While theory (see Chapter 3) supports the majority of the significant relationships obtained as results, the predominately negative impact of follower cultural knowledge on follower LMX and perceived similarity is contradictory to the hypotheses. A possible explanation for this result, in view of the detected mediating effect of perceived similarity, is that cultural knowledge could reduce the effect of projected similarity (Adler, 1997). Adler reports that intercultural interactions sometimes are distorted by the fact that people with different cultural backgrounds perceive each other more similar than they actually are. The Chinese followers with less cultural knowledge could hence overestimate the level of similarity with the Western leader, whereas those with more cultural knowledge could estimate the level of similarity more accurately, and hence more negatively. Following the logic of the similarity-attraction paradigm, lower perceived similarity would lead to less affect and hence lower perceptions of the dyadic partner. This interpretation is supported by the fact that the negative effect of cultural knowledge on leader-member exchange is mediated by perceived similarity, as indicated in the figure above. Furthermore, the control variable measuring length of interaction between leader and follower had a strong negative effect on perceived similarity. 177 Figure 5: Leader personal characteristics and follower LMX, intercultural Leader extroversion Leader neuroticism Leader agreeableness Leader conscientiousness – ms – –m – s + + + Follower overall LMX LMX dimensions Affect – Loyalty* Leader harmony s +m Leader self-enhancement Contribution* Respect Leader cultural knowledge * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity The significant effect demonstrated by leader characteristics on leader-member exchange quality is in line with the argument made by Liden et al. (1997) that leader characteristics are important in determining whether a follower desires and accepts a high-quality exchange offered by the leader. This finding is further supported by the leader-member exchange-development model put forward by Bauer and Green (1996), in which leaders are considered to have a central role as they are the ones who are expected to make the initial “offer” to develop a high-quality leader-member exchange relationship (Bauer & Green, 1996). As the figure above indicates, leader neuroticism has a strong negative effect on follower leader-member exchange quality in intercultural dyads. As neuroticism refers generally to a lack of positive psychological adjustment and emotional stability, and is related to the capability to work together to handle interpersonal conflicts (Antonioni, 1998), it is not surprising that neuroticism demonstrates a strong negative relationship with leader-member exchange quality. Leader cultural knowledge did not demonstrate the expected positive effect on follower perceptions of leader-member exchange quality. It was expected that cultural knowledge would influence leader-follower relations by enabling the individual to adjust his or her behaviour in accordance with the perceived expectations of the dyadic partner (cf. Thomas and Toyne, 1995). A question that arises is the extent to which 178 cultural knowledge and experience really enables this adjustment. It is possible that leaders overestimate their cultural knowledge and abilities to “go local”, in which case cultural knowledge could even produce a negative effect. Brief cultural training providing simplified information could also enhance the use of stereotypes (Gertsen, 1990). An alternate explanation is that the Chinese followers do not expect the expatriates to adjust their behaviour to suit the local standards: they may prefer to work with a leader behaving in accordance with the positive stereotype of a Western leader. Gertsen (1990) goes as far as suggesting that as the expatriates are considered as representatives of their cultures, “native” behaviour could create confusion and uncertainty among the locals and even convey an untrustworthy image of the expatriate. The unexpected negative influence of leader conscientiousness on follower perceptions of their own contribution could be due to the fact that conscientious leaders could be more demanding than less conscientious leaders and hence likely to reduce the followers perception of their own contribution. The positive effect of leader selfenhancement is also interesting to note. Self-enhancement may be a characteristic expected by Chinese followers of individuals in a leader role. b) Interpersonal antecedents Follower LMX hypothesis 14 predicting that the level of demographic similarity between leader and follower will be positively related to all dimensions of follower LMX received partial support as demographic differences demonstrated a negative effect on the affect dimension. Furthermore, gender differences had a negative impact on interactional justice. Follower LMX hypothesis 15 predicting that the level of personality similarity between leader and follower will be positively related to all dimensions of follower LMX was not supported, as personality differences had a positive effect on professional respect, which was mediated by interactional justice. Follower LMX hypothesis 16 predicted that a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on follower LMX quality and all its dimensions. This hypothesis was partially supported as differences Interpersonal relatedness demonstrated a negative effect on the contribution dimension, but this effect was mediated by perceived similarity. Follower LMX hypothesis 17 predicting that a high level of similarity in individualism and collectivism between leader and follower will be positively related to all dimensions of follower LMX did not receive support. Differences in individualism had no effect and similarity in collectivism had a positive effect on the affect and contribution dimensions. Follower LMX hypothesis 18 predicted that follower perceptions of similarity with leader will be positively related to all the dimensions of follower LMX, and that perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX. The hypothesised direct relationship between perceived similarity and LMX gained very strong support, as 179 perceived similarity was found to influence overall LMX and all the LMX dimensions. Furthermore, perceived similarity explained a significant amount of incremental variance in all dimensions including overall LMX when entered into the equation separately (the effect on loyalty was somewhat lower than on the other dimensions). A control variable that demonstrated a significant positive effect was months of interaction. The interpersonal variables as a group, excluding perceived similarity, did not explain significant additional variance in overall LMX or any of the dimensions. The perceptions of followers who work with Western leaders are hence more directly influenced by leader characteristics than the level of actual similarity. Perceived similarity explained very significant variance in overall LMX and all the LMX dimensions, with the exception of the loyalty dimensions, for which the incremental variance was weaker, although still significant. Figure 6: Interpersonal antecedents and follower LMX, intercultural Demographic differences Follower overall LMX + Personality differences – m j + Perceived similarity1 LMX dimensions + + + Differences in interpersonal relatedness + Affect – ms Loyalty Differences in individualism Contribution + + Differences in collectivism Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mj = mediated by interactional justice The support found for the hypothesised importance of perceived similarity as an antecedent to leader-member exchange quality is strongly supported by theory and past research. It has been argued that perceptions of similarity lead an individual to identify with the other dyadic member and produce an affective reaction that has a direct influence on social relationships (Engle & Lord, 1997). Perceived similarity arguably 180 enhances attraction because of the self-enhancing motivation similar to the one predicted by social identity theory (Tsui, Xin & Egan, 1996). The finding that leader-member exchange quality is negatively influenced by demographic differences is in line with the similarity-attraction paradigm and the propositions made by Tsui, Xin and Egan (1996). Differences in Interpersonal relatedness were also expected to have a negative effect. However, the figure indicates that differences between leader and follower personal characteristics are not always negative in terms of leader-member exchange quality as differences in collectivism and personality differences have a positive effect. The reason for why differences in values and personality demonstrate a positive effect could be that leaders may not be expected to possess the same personality traits as followers. Followers may value different personality traits and characteristics in a leader than the ones they possess themselves. In other words, dissimilarity on some variables could be desired. For instance, Tsui et al. (1996) propose that if someone is in a power of authority, as the leader is in relation to the follower in the dyad, the followers would expect the leader to be different from them in the capacity to lead. Tsui et al. suggest that the same way as certain demographic factors are used to infer similarity in attitudes, some factors are used as a means of inferring desired differences in levels of experience (e.g. through tenure), knowledge (e.g. through training and education) and wisdom (e.g. through age). Although these arguments were presented regarding the effect of demographic differences on leader-member exchange quality, this line of thinking could be extended to include personality and values to explain why differences in collectivism and personality demonstrated a positive effect. Furthermore, previous research on the composition of work teams suggests that personality diversity could increase performance (and why not the perceptions of the dyadic partner) if the unique attributes of each participant are necessary for the team to function well (Neuman, Wagner, & Christiansen, 1999). Follower LMX hypothesis 18 predicted that perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX. This hypothesis was partially supported, as perceived similarity almost fully mediated the relationships between differences in Interpersonal relatedness (negative effect) and contribution, and follower cultural knowledge (negative effect) and overall LMX and loyalty. The negative effect of follower cultural knowledge was not expected. Perceived similarity was found to fully or partly mediate a large number of other relationships. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed with the exception of a few brief comments. 181 Figure 7: The mediating effect of perceived similarity on follower LMX, intercultural – Follower cultural – knowledge Follower harmony + Follower overall LMX* + Differences in interpersonal – relatedness Leader neuroticism – LMX dimensions Affect* Perceived similarity1 – – Leader self-enhancement – + + Loyalty Contribution* Respect* * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect It was hypothesised that perceived similarity is partly an outcome of actual similarity, which explains the negative relationship between differences in Interpersonal relatedness and perceived similarity. However, cultural knowledge was expected to have a positive effect on perceived similarity. It was argued that cultural knowledge is likely to increase specification and accurate judgements (cf. Larkey, 1996), affecting the perceptions of the culturally different dyadic partner in a mostly positive way (e.g. by reducing the strength of negative stereotypes). However, it seems that cultural knowledge also facilitates the ability to recognise cultural differences (Brake, 1995) and could hence also diminish what Adler (1997) calls cultural blindness (lack of attention to cultural assumptions), lack of cultural self-awareness (ignorance associated with not knowing one’s own cultural conditioning) and projected similarity. The fact that Chinese employees with little cultural knowledge could overestimate their level of similarity with the expatriate leaders was already mentioned earlier. Finally, although no hypothesis regarding the relationship between leader neuroticism and perceived similarity was formulated, it is possible that individuals do not want to identify themselves with people possessing negative personality traits. c) Behavioural antecedents Follower LMX hypothesis 19 predicting that follower perceptions of interactional justice will be positively related to all dimensions of follower LMX gained strong 182 support as interactional justice, demonstrated a significant effect on overall LMX and all the LMX dimensions with the exception of the contribution dimension (however, the correlation was significant and positive). Furthermore, interactional justice explained a significant amount of incremental variance in all dimensions with the exception of contribution when entered into the equation separately. (The variance explained in loyalty was also lower than the added variance for the other dimensions). Follower LMX hypothesis 20 predicted that overall leader LMX will be positively related to all dimensions of follower LMX, and that interactional justice will mediate this relationship. Support for this hypothesis was not found. However, interactional justice turned out to be an important mediator, almost fully mediating the positive relationships between follower extroversion and affect, personality differences and professional respect, and months of interaction and contribution. Furthermore, interactional justice partially mediated the relationship between perceived similarity and all the dimensions of LMX including overall LMX. Interactional justice also partly mediated the relationship between follower conscientiousness (positive effect) and overall LMX, as well as the relationship between demographic differences (negative effect) and affect. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 8: The mediating effect of interactional justice on follower LMX, intercultural Follower extroversion Follower conscientiousness Perceived similarity Personality differences + Follower overall LMX* + LMX dimensions + + Affect* + + + Interactional justice1 Loyalty* + Demographic differences Contribution – Respect* * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect 183 The finding that interactional justice is significantly related to follower leader-member exchange is not surprising. As noted already by Graen and Scandura (1987), one of the requirements for the development of high-quality relationships is that each party must see the exchange as reasonably fair. Interactional justice has even been considered as such an important aspect of the leader-follower relationship that some researchers have considered it as a dimension of the leader-follower relationship (cf. Scandura, 1999). However, the causal order between interactional justice and leader-member exchange is hard to establish. Due to the dynamic nature of the relationship, where repeated interactions result in the formation of relationships of different types and quality that in turn influence future exchanges (cf. e.g. Uhl-Bien et al., 2000) it is difficult to distinguish between antecedents and outcomes of leader-member exchange. Furthermore, the close relationship between interactional justice and perceived similarity further supports previous findings in similarity research, where the bottom line seems to be that individuals tend to trust people who are similar to themselves. d) Summary The results pertaining to follower LMX in intercultural dyads presented above show that the different dimensions of LMX are partly affected by the same variables, but that the relative weight of different variables differs across dimensions. To exemplify these differences and similarities across dimensions, it could be noted that the most significant part of variance in the affect dimension is explained by perceived similarity, followed by follower characteristics and interactional justice. Neither leader characteristics nor interpersonal variables (excluding perceived similarity) added variance for affect. Regarding loyalty, significant variance is only explained by perceived similarity and leader characteristics. The most significant part of variance in the contribution dimension is explained by perceived similarity, followed by follower characteristics and leader characteristics. Concerning professional respect, significant variance is only explained by perceived similarity and interactional justice. In turn, regarding overall LMX, the most significant part of variance is explained by perceived similarity, followed by interactional justice and follower characteristics. Neither leader characteristics nor interpersonal variables added variance for overall LMX. Overall LMX hence seems to be largely affected by the same type of factors as affect, although follower characteristics play a less significant role in overall LMX than in affect. These results suggest that the loyalty dimension, which is not affected by follower characteristics and less significantly by interactional justice and perceived similarity than the other dimensions, is the dimension that stands most apart from the other dimensions. The contribution dimension is similar to the loyalty dimension in the sense that these two dimensions are the only dimensions significantly influenced by leader characteristics and not significantly influenced by interactional justice. It should be noted that the loyalty and professional respect dimensions obtained much lower adjusted R2 and F values than the other dimensions. It is also noteworthy that leader and follower cultural knowledge has a positive impact on contribution, but a negative influence on the other dimensions. In sum, there are both similarities and differences across dimensions and the hypothesised antecedents explained some variance in all dimensions, although somewhat less in the loyalty and professional respect dimensions. 184 In sum, the results pertaining to follower LMX in intercultural dyads presented above show that most of the hypothesised antecedents have an impact on at least one dimension of LMX. The only antecedents that did not demonstrate a significant effect on any LMX dimension were leader harmony and leader cultural knowledge. 6.3.2 Intracultural Chinese dyads As in the previous section, the results concerning follower LMX in intracultural Chinese dyads have been grouped under the headings a) personal antecedents, b) interpersonal antecedents, and c) behavioural antecedents. These results are summarised on a dimension level in section d). As before, after presenting the results in conjunction with the hypotheses, the results are illustrated in each subsection in the form of figures, followed by a discussion of the results. As in the case of intercultural dyads, the emphasis in the discussion is on unexpected results and antecedents that influence multiple dimensions of LMX as the theoretical background for the remaining supported hypotheses can already be found in Chapter 3 where the hypotheses are developed. As noted earlier, more specific regression results including beta weights and levels of significance are reported in the tables in Appendix 5 on p. 343. a) Personal antecedents Follower LMX hypothesis 1 predicting that follower extroversion will be positively related to all dimensions of follower LMX was not supported, although extroversion correlated significantly with affect and professional respect. Follower LMX hypothesis 2 predicting that leader extroversion will be positively related to all dimensions of follower LMX was not supported as leader extroversion had a negative effect on the affect and professional respect dimensions, both being mediated by perceived similarity. Follower LMX hypothesis 3 predicting that follower neuroticism will be negatively related to the affect, loyalty, and professional respect dimensions of follower LMX was not supported although follower neuroticism correlated significantly with affect and professional respect. Follower LMX hypothesis 4 predicting that leader neuroticism will be negatively related to all dimensions of follower LMX was not supported. Leader neuroticism had a significant positive effect on affect and perceived similarity. Follower LMX hypothesis 5 predicted that leader agreeableness will be positively related to the affect, loyalty and contribution dimensions of follower LMX. Leader agreeableness had a positive impact on follower loyalty, providing partial support for the hypothesis. Follower LMX hypothesis 6 predicting that follower conscientiousness will be positively related to the contribution dimension of follower LMX was not supported but 185 follower conscientiousness had a strong negative impact on interactional justice and a positive effect on perceived similarity. Follower LMX hypothesis 7 predicting that leader conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of follower LMX was not supported. Leader conscientiousness had a negative impact on follower perceived similarity. Follower LMX hypothesis 8 predicted that follower harmony will be positively related to all dimensions of follower LMX. This hypothesis was partly supported as follower harmony had a positive effect on overall LMX as well as perceived similarity. Follower LMX hypothesis 9 predicting that leader harmony will be positively related to all dimensions of follower LMX gained support as leader harmony was positively related to the affect and contribution dimensions as well as interactional justice. Follower LMX hypothesis 10 predicting that high leader self-enhancement values will be negatively related to the affect and loyalty dimensions of follower LMX was not supported as this factor demonstrated a positive effect on these dimensions. The effect of the loyalty dimension was almost fully mediated by perceived similarity. Follower LMX hypothesis 11 predicting that high leader self-enhancement values will be positively related to the contribution and professional respect dimensions of follower LMX was partially supported. Self-enhancement demonstrated a positive effect on overall LMX and professional respect, the latter being almost fully mediated by perceived similarity. Follower LMX hypothesis 12 predicted that follower cultural knowledge will be positively related to all dimensions of follower LMX. This hypothesis received partial support as cultural knowledge had a positive impact on overall LMX as well the affect and loyalty dimensions. Follower LMX hypothesis 13 predicting that leader cultural knowledge will be positively related to all dimensions of follower LMX was not supported. It should also be noted that of the control variables, leader age had a negative effect on overall LMX that was mediated by perceived similarity. Leader education demonstrated a negative effect on professional respect that was mediated by interactional justice. The number of employees supervised by the leader a negative effect on loyalty as well as a positive effect on affect, mediated by perceived similarity. An examination of the incremental variance explained by the blocks of leader and follower personal characteristics revealed that follower characteristics had a significant effect on overall LMX and the affect and loyalty dimensions, as well as on interactional justice. Leader characteristics, in turn, explained significant incremental variance in the affect and professional respect dimensions as well as perceived similarity and interactional justice. 186 These results are summarised in the figure below. Only the significant relationships are marked. The signs are explained below the figure. Figure 9: Follower personal characteristics and follower LMX, intracultural Follower extroversion Follower overall LMX* Follower neuroticism LMX dimensions Follower conscientiousness Affect* Loyalty* Follower harmony + Contribution + + Follower cultural knowledge + Respect* * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect The significant effect demonstrated by follower personal characteristics as a group on follower perceptions of LMX quality indicates, as in intercultural dyads, that an individual’s propensity to trust and relate, and hence propensity to form high-quality LMX relationships, is partly influenced by relatively stable characteristics (cf. Brower et al., 2000). The strong positive relation between follower cultural knowledge and LMX quality is interesting to note. As a reminder, follower cultural knowledge entails general international experience and training. Based on the literature review, it was hypothesised that follower cultural knowledge would influence leader-follower relations mainly by enabling the follower to make accurate (and positive) interpretations of the culturally different dyadic partner (cf. Shaw, 1990). In the present context, where different forms of acculturation may have affected all parties involved, cultural knowledge was expected to be beneficial even in intracultural Chinese dyads. The positive effect of follower cultural knowledge on follower leader-member exchange in intracultural Chinese dyads could tentatively be explained by a rectification of the overly positive stereotypification of Western leaders in favour of the Chinese leader. 187 The fact that none of the Western personality traits had a significant effect on LMX quality is noteworthy. A tentative and partial explanation can be inferred from the literature on individualism–collectivism. The behaviour of collectivists (the Chinese are traditionally considered to be collectivist [cf. e.g. Hofstede & Bond, 1988]) as compared to individualists has been described as being less dispositional and more situational or contextual (Triandis, 1995). Furthermore, Church and Lonner (1998) note that previous research has found that individuals in collectivist cultures appear to describe themselves less in terms of traits and attribute behaviour less to internal traits. Due to the more contextual nature of behaviour in collectivist cultures, Church and Lonner hypothesise that the correlations, across different situational contexts, between personality trait scores and behavioural measures will generally be lower and more variable in collectivist cultures than in individualistic cultures. In this sense, the authors suggest that individualism-collectivism could function as a metatrait, influencing the extent to which behaviour of different individuals is traited or consistent across situations (e.g. in in-groups versus out-groups). This discussion also implies that individualismcollectivism could moderate the relationship between personality traits and LMX quality. Figure 10: Leader personal characteristics and follower LMX, intracultural Leader extroversion Leader neuroticism –m + –m s s Leader agreeableness + LMX dimensions Affect* Leader conscientiousness Loyalty + + Leader harmony Follower overall LMX + + Leader self-enhancement + ms + ms Contribution Respect* Leader cultural knowledge * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity As in intercultural dyads, the importance of leader characteristics in explaining follower leader-member exchange quality is confirmed, which is in accordance with previous research (cf. Liden et al., 1997). 188 Theory (see Chapter 3) supports the positive relationships between leader agreeableness and harmony and LMX. According to Yeung and Tung (1996) a Confucian expectation is that those in positions of power and authority must assist the disadvantaged. This perspective on the appropriate relationship between the strong and the weak could partly explain why leader agreeableness is important for Chinese followers. The significant positive effect of leader self-enhancement is also noteworthy. To recall, the selfenhancement facet comprises achievement or personal success through demonstrating competence, as well as power, or social status and prestige and control or dominance over people and resources (cf. Ralston, Yu, Wang, Terpstra, & He, 1996). The positive effect of leader self-enhancement could be explained by an acceptance by Chinese followers of leaders demonstrating personal power, as it could be considered as a part of the leader’s role. As discussed earlier, according to Yeung and Tung (1996), under Confucianism emphasis in personal relationships is placed on personal power, and an individual (rather than institutional authority) defines what is permissible in a given context at a particular time. However, the figure indicates an unexpected negative effect of leader extroversion, and a positive effect of leader neuroticism on follower perceptions of leader-member exchange quality (this result differs from the ones obtained in intercultural dyads). Extroversion may not be a personality trait associated with Chinese leadership, which would explain the negative effect in intracultural Chinese dyads. The fact that leader neuroticism had a positive effect on follower affect in intracultural Chinese dyads is hard to explain. (A partial and highly speculative explanation would be that the negative effect of leader neuroticism is diminished as long as the leader fulfils his or her role requirements). b) Interpersonal antecedents Follower LMX hypothesis 14 predicting that the level of demographic similarity between leader and follower will be positively related to all dimensions of follower LMX received partial support as demographic differences demonstrated a negative effect on the loyalty and contribution dimensions, the latter being mediated by perceived similarity. Furthermore, gender differences had a negative impact on perceived similarity. Follower LMX hypothesis 15 predicting that the level of personality similarity between leader and follower will be positively related to all dimensions of follower LMX was not supported, as personality differences had a positive effect on affect and professional respect, which in both cases was mediated by perceived similarity. Follower LMX hypothesis 16 predicted that a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on follower LMX quality and all its dimensions. This hypothesis was not supported. However, differences in Interpersonal relatedness demonstrated a negative effect on interactional justice. Follower LMX hypothesis 17 predicting that a high level of similarity in individualism and collectivism between leader and follower will be positively related to all dimensions of follower LMX received partial support. Differences in individualism had 189 a significant negative effect on overall LMX and all dimensions except for affect. Differences in collectivism influenced the contribution dimension positively. Follower LMX hypothesis 18 predicted that follower perceptions of similarity with leader will be positively related to all the dimensions of follower LMX, and that perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX. The hypothesised direct relationship between perceived similarity and LMX gained very strong support, as perceived similarity was found to influence overall LMX and all the LMX dimension, affect and professional respect being strongly mediated by interactional justice. Length of interaction is a control variable that demonstrated a significant negative effect on overall LMX, affect and loyalty. Interaction intensity had a positive effect on overall LMX, affect, contribution, and especially respect. The interpersonal variables as a group, excluding perceived similarity, explained significant additional variance in all dimensions but the contribution dimension. Perceived similarity explained the most significant part of incremental variance in overall LMX, affect, contribution as well as some variance in professional respect and loyalty. Figure 11: Interpersonal antecedents and follower LMX, intracultural Demographic differences + ms s –m Personality differences – Follower overall LMX* + s m + Perceived similarity1 LMX dimensions + mj + Differences in interpersonal relatedness – Differences in individualism +m + j Affect* Loyalty* – – – + Differences in collectivism Contribution Respect* * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mj = mediated by interactional justice 190 The figure above has some similarities with the one obtained for intercultural dyads. First, perceived similarity is an important antecedent to leader-member exchange, which is a finding strongly supported by theory and past research (e.g. Engle & Lord, 1997; Tsui et al., 1996). Second, demographic differences demonstrate an expected negative effect. This finding, as well as the one that leader-member exchange quality is negatively influenced by differences in individualism, in line with previous research conducted within the field of relational demography (e.g. Tsui & O'Reilly, 1989) as well as studies linking leader-member exchange quality with leader-follower attitudinal similarity (e.g. Phillips & Bedeian, 1994). Third, differences in collectivism and personality differences have a non-expected positive effect in both dyad types. As discussed earlier in the case of intercultural dyads, differences in values and personality may not demonstrate a negative effect due to followers expecting leaders to have different personality traits and characteristics than the ones they possess themselves (cf. Tsui et al., 1996). This could especially be the case in China due to differing role requirements (cf. e.g. Hui & Graen, 1997) as well as a traditional respect for authority (cf. Yeung & Tung, 1996). Some additional explanations regarding the positive effect of personality differences can be gained from studies examining diversity in work teams. A study conducted by Neuman et al. (1999) suggests that the average level of a team in agreeableness, conscientiousness, and openness to experience predicts performance whereas differences in extroversion and neuroticism leads to better performance (this pattern is likely to vary according to the characteristics of the task). The explanation offered by Neuman and colleagues for the fact that diversity in extroversion could lead to better performance is that extroverts tend to fill the role of being outgoing and leading, and if extroverts are put to work together this could lead to power struggles and conflict. This finding also has implications for LMX: extroversion could be an important trait for the leader to possess, but not so important for the follower (this could especially be the case in Chinese dyads where the leader traditionally occupies a very authoritarian role [cf. Yeung & Tung, 1996]). (The finding that diversity in neuroticism affected team performance was not predicted by Neuman and colleagues and no specific explanations for this relationship were given). In sum, similarity and compatibility between the actors could have a favourable effect by facilitating communication between the actors and the motivation to work together. Personality diversity could again have a positive effect if the unique attributes of each follower are necessary for the team (or dyad) to function well. The significance demonstrated by differences in individualism and collectivism in explaining leader-member exchange provides support for the results obtained by Lam, Chen and Schaubroeck (forthcoming), suggesting that individualism and collectivism measured on an individual level are powerful individual differences that significantly influence behaviour irrespective of societal boundaries. Additionally, the fact that differences in individualism versus collectivism did not demonstrate the same effect provides support for the suggestion made by Triandis et al. (1988) that individualism and collectivism may be better viewed as independent continua and not as the opposite ends of one continuum. 191 Follower LMX hypothesis 18 predicted that perceived similarity will mediate the relationship between actual similarity, cultural knowledge and all the dimensions of follower LMX. This hypothesis was partially supported, as perceived similarity almost fully mediated the relationship between demographic differences (negative effect) and contribution, and the positive effect of personality differences on both affect and professional respect. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 12: The mediating effect of perceived similarity on follower LMX, intracultural Follower extroversion Demographic differences – Follower overall LMX* – LMX dimensions Personality differences Leader extroversion + + – Leader self-enhancement Affect* Perceived similarity1 – + Loyalty + + Contribution* Respect* * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect It was hypothesised that perceived similarity is partly an outcome of actual similarity, which explains the negative effect of demographic differences on perceived similarity. However, the positive effect of personality differences on perceived similarity is more difficult to explain. As noted earlier, Church and Lonner (1998) suggest that the correlations between personality trait scores and behavioural measures will generally be lower and more variable in collectivist cultures (such as China) than in individualistic cultures due to the more contextual nature of behaviour in collectivist cultures. 192 c) Behavioural antecedents Follower LMX hypothesis 19 predicting that follower perceptions of interactional justice will be positively related to all dimensions of follower LMX gained support as interactional justice demonstrated a significant effect on overall LMX and the affect and professional respect dimensions (the correlations with the remaining loyalty and contribution dimensions were significant and positive). Interactional justice also explained significant additional variance in overall LMX, and the affect and professional respect dimensions. Follower LMX hypothesis 20 predicted that overall leader LMX will be positively related to all dimensions of follower LMX, and that interactional justice will mediate this relationship. This hypothesis was supported, as leader LMX had a positive effect on overall LMX and the affect dimension, the latter mediated by interactional justice. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 13: The mediating effect of interactional justice on follower LMX, intracultural Leader LMX + Follower overall LMX* Follower conscientiousness Perceived similarity Leader harmony + LMX dimensions + + Affect* + + + Interactional justice1 Loyalty + + Leader self-enhancement Contribution + Respect* * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect As in intercultural dyads, interactional justice is significantly related to follower leadermember exchange and there is a close relationship between interactional justice and 193 perceived similarity. These findings support the propositions made by Scandura (1999) and the findings obtained by Murphy et al. (2003). These findings also support the hypothesis that leader LMX quality and follower LMX quality are linked. As predicted, it seems that positive leader perceptions in terms of LMX quality will increase the fairness of treatment provided by leader. This fairness (i.e. interactional justice) in turn has a positive influence on follower leader-member exchange quality. To recall the discussion in Chapter 2, Confucianism encourages reciprocation, where a person must repay favours and increase the value of the favour given (Yeung and Tung, 1996). Chinese leaders may hence reciprocate for the affect, loyalty, contribution and respect they perceive their followers to provide them with in terms of fair treatment. It is noteworthy that this effect was not demonstrated in intercultural dyads. Maybe the Western leaders are not as prone to reciprocate for highquality relationships in terms of actual behaviour? d) Summary The results pertaining to follower LMX in intracultural Chinese dyads presented above show, as in the case of intercultural dyads, that the different dimensions of LMX are partly affected by the same variables, but that the relative weight of different variables differs across dimensions. Beginning with the affect dimension, it can be noted that a very significant part of variance in the dimension is explained by perceived similarity, leader characteristics and interactional justice. Follower characteristics and interpersonal variables account for a somewhat less significant added variance. Regarding loyalty, significant variance is explained by follower characteristics and interpersonal variables as well as perceived similarity. The only significant part of variance in the contribution dimension is explained by perceived similarity. Concerning professional respect, significant variance is explained by perceived similarity, interactional justice, and leader characteristics as well as less significantly by follower characteristics. In turn, regarding overall LMX, the most significant part of variance is explained by perceived similarity, followed by interactional justice and follower characteristics and lastly interpersonal variables and leader LMX. The results indicate that the contribution dimension, in which a significant part of variance is only explained by perceived similarity, stands apart from the other dimensions. As such, this finding is not so surprising as all items pertaining to the other dimensions concern follower perceptions of the leader whereas the contribution items concern follower perceptions of their own contribution. The low adjusted R2 and insignificant F value obtained suggest that a better model for the contribution dimension should be developed. The loyalty dimension also obtained lower R2 and F values than the other dimensions. In addition to contribution, loyalty is the other dimension not significantly influenced by justice. The antecedents of the contribution and loyalty dimensions are similar also in the sense that these are the two dimensions not significantly influenced by leader characteristics. What distinguishes the affect and professional respect dimensions from the other dimensions is the fact that the effect of 194 the majority of the hypothesised antecedents and control variables is mediated either by perceived similarity or interactional justice. In sum, the results pertaining to follower LMX in intracultural Chinese dyads show that some of the hypothesised antecedents do not demonstrate a significant effect on any dimension. These include: follower extroversion, follower neuroticism, follower conscientiousness, leader conscientiousness, leader cultural knowledge, and differences in Interpersonal relatedness. 6.3.3 Comparison of intercultural and intracultural dyads The results indicate that intercultural and intracultural Chinese dyads have many common features with regard to antecedents of LMX quality, but also specific characteristics that distinguish them from each other. However, it should be noted that the results obtained for intercultural and intracultural Chinese dyads are not directly comparable with respect to leader perceptions as the perceptual measures used for Chinese and Western leaders did not demonstrate cross-cultural equivalence. In this case, leader LMX is the only perceptual variable measured from the leader perspective. What intercultural and intracultural Chinese dyads have in common is the central role played by perceived similarity in determining the quality of follower LMX. In general, it seems that both in Chinese and intercultural dyads, the blocks of antecedents can be ordered in the following order of importance according to the incremental variance explained by them: 1) perceived similarity, 2) interactional justice, 3) follower characteristics, 4) leader characteristics, and 5) interpersonal characteristics. More specific common features within each group of variables include: a) Follower conscientiousness and extroversion demonstrate a positive effect; b) Follower harmony is positively related to LMX quality. (The fact that follower harmony has a positive relationship with LMX quality in both intercultural and intracultural Chinese dyads indicates that the Interpersonal relatedness factor of the CPAI, of which harmony is a subfacet, is important in understanding not only Chinese leader-member exchange relationships but also Western leader-member exchange relationships as suggested by Cheung and Leung [1998]); c) Leader self-enhancement has a positive effect (very strong in intracultural Chinese dyads, but it only affects similarity and overall LMX in intercultural dyads. This could be explained by the Confucian emphasis on personal power [Yeung and Tung, 1996]. The self-enhancement facet comprises power, or social status and prestige and control or dominance over people and resources [cf. Ralston, Yu, Wang, Terpstra, & He, 1996], which Chinese followers could consider as a part of the leader’s role); d) Leader agreeableness has a positive effect (according to Yeung and Tung [1996] a Confucian expectation is that those in positions of power and authority must assist the disadvantaged. This perspective on the appropriate relationship between the 195 e) f) g) h) i) j) k) strong and the weak explains, in part, why leader agreeableness is important for Chinese followers); Leader cultural knowledge has no effect. (Leader cultural knowledge did not influence follower perceptions of leader-member exchange quality in any dyad type. It was expected that cultural knowledge would influence leader-follower relations by enabling the individual to adjust his or her behaviour in accordance with the perceived expectations of the dyadic partner [cf. Thomas and Toyne, 1995]. It is possible that behaving according to stereotypical expectations has more positive effect than adjusting behaviour to suit the local standards); Personality differences have a positive effect in both dyad types (the effect is mediated by similarity in Chinese, justice in intercultural dyads); Differences in collectivism has a positive effect in both dyad types, especially on contribution (also on affect in intercultural dyads) (Differences in values and personality may not demonstrate a negative effect due to followers expecting leaders to have different personality traits and characteristics than the ones they possess themselves [cf. Tsui et al., 1996]. Furthermore, diversity could have a positive effect if the unique attributes of each follower are necessary for the dyad to function well [cf. Neuman et al., 1999]); Demographic differences demonstrate a negative effect (on loyalty and contribution in Chinese, affect in intercultural dyads); In both dyad types, perceived similarity influences the loyalty dimension less than the other dimensions; Interactional justice is a significant variable in both dyads types, playing a lesser role with respect to the loyalty and contribution dimensions than the other dimensions; Perceived similarity and interactional justice are important mediators. However, the comparison of intercultural and intracultural Chinese dyads also indicates that follower LMX quality in these dyads is partly influenced by different factors and that some factors have the opposite effect in intercultural as compared to intracultural Chinese dyads. For instance, follower characteristics do not explain variance in contribution in intracultural Chinese dyads, whereas in intercultural dyads, follower characteristics do not explain variance in loyalty and respect. Leader characteristics explain variance in affect and respect in intracultural Chinese dyads, but loyalty and contribution in intracultural Chinese dyads. Furthermore, interpersonal variables (excluding similarity) explain variance in most LMX dimensions in intracultural Chinese dyads but not in intercultural dyads. The perceptions regarding leader-member exchange quality of followers who work with Western leaders is hence more directly influenced by leader characteristics while the level of actual similarity is more important for those who work with Chinese leaders. Some differences detected between intercultural and intracultural Chinese dyads at the variable level include: a) Both follower and especially leader neuroticism has a negative effect in intercultural dyads, but a less predominant and positive effect in intracultural Chinese dyads. Both leader and follower neuroticism has a positive effect on affect in intracultural 196 b) c) d) e) f) g) h) i) j) Chinese dyads, whereas follower neuroticism has a negative effect on professional respect; In intracultural Chinese dyads, follower cultural knowledge has a positive effect on overall LMX, affect and loyalty, whereas in intercultural dyads follower cultural knowledge has a negative effect on overall LMX and loyalty and a positive effect on contribution; Leader extroversion has negative effect in intracultural Chinese dyads (on affect and respect, mediated by similarity) but a positive effect in intercultural dyads (on overall LMX, loyalty); Leader harmony has a significant positive effect in Chinese, but not in intercultural dyads; In intracultural Chinese dyads, the effect of perceived similarity is often mediated by interactional justice, indicating a slightly lesser role of perceived similarity in Chinese as compared to intercultural dyads; The leader’s perceptions of overall LMX influences follower overall LMX, justice and affect in intracultural Chinese dyads, but not in intercultural dyads; Length of interaction is a control variable that has a strong negative effect in intracultural Chinese dyads, but a non-significant or positive effect (on justice, contribution mediated by justice) in intercultural dyads; Interaction intensity is a control variable that has a strong positive effect in intracultural Chinese dyads, but is non-significant in intercultural dyads; Demographic factors play a larger role in Chinese than in intercultural dyads; The number of subordinates is a control variable that is negative for loyalty in Chinese, positive in intercultural dyads. One major finding of the present study is that the effect of certain leader personal characteristics on follower perceptions of leader-member exchange quality is dependent upon whether the leader is Western or Chinese; the same characteristics are not always valued in Western and Chinese leaders. In the present study, examples of such leader characteristics are extroversion and neuroticism, which demonstrated an opposite effect across dyad types. Thomas and Toyne (1995) suggest that follower reactions to a leader representing a different country may be affected by the extent to which the manager’s behaviour matches the expectations and stereotypes of the follower. High extroversion and low agreeableness have been categorised as typical leader characteristic in Western conceptualisations (see e.g. Costa and McCrae, 1992). This means that if the stereotype of the Western leader is extroverted, leader extroversion is likely have a positive influence on leader-member exchange quality in intercultural dyads. However, extroversion may not be a personality trait associated with Chinese leadership, which would lead to a different effect in intracultural Chinese dyads. The only leader characteristics that had a consistent effect across dyads types were leader agreeableness and self-enhancement, which both had a positive effect in both intercultural WesternChinese and intracultural Chinese dyads. In intercultural dyads, leader extroversion had a strong positive effect and neuroticism a strong negative effect on follower leadermember exchange quality. Leader agreeableness and self-enhancement also had a positive influence and leader conscientiousness a negative effect. These characteristics may be congruent with the follower expectations of a Western manager. In intracultural Chinese dyads, leader-self-enhancement had a very strong positive effect as well as harmony. Leader extroversion had a significant negative effect. In addition leader 197 neuroticism and agreeableness had positive effect on follower perceptions of leadermember exchange quality. However, these findings must be interpreted with caution as the Chinese and Western leader measures did not demonstrate cross-cultural equivalence, which makes direct comparisons between Western and Chinese leaders impossible. 198 6.4 ANTECEDENTS OF LEADER LMX As for followers, a total of 20 hypotheses concerning the effect of various personal, interpersonal and behavioural antecedents on leader LMX quality have been developed in the present study (see p. 94 for the list of hypotheses). The 13 first hypotheses link various personal leader and follower characteristics, including personality, values and cultural knowledge to leader LMX quality. Hypotheses 14–18 concern so-called interpersonal antecedents of LMX including actual and perceived similarity. Hypothesis 19 links behaviours to LMX, predicting that high follower inrole performance will have a favourable impact on follower LMX quality. Finally, Hypothesis 20 predicts a positive relationship between leader and follower LMX and a mediating role of the behavioural performance factor. These hypotheses are expected to be relevant both in intercultural and intracultural dyads. With the exception of a different behavioural variable, the leader LMX hypotheses mirror the follower LMX hypotheses. The hypotheses concerning leader LMX were analysed using the same procedures as follower LMX, i.e. using a hierarchical regression approach combined with backward deletion while paying attention to likely multicollinearity problems (see p.173 for a more detailed description of the procedures adopted). As for follower LMX, intercultural and intracultural Chinese dyads will be discussed separately beginning with intercultural dyads. 6.4.1 Intercultural dyads Below, the results concerning leader LMX in intercultural dyads are presented. As in the previous sections concerning follower LMX, the results have been grouped under the headings a) personal antecedents, b) interpersonal antecedents, and c) behavioural antecedents. These results are summarised on a dimension level in section d). After presenting the results in conjunction with the hypotheses, the results are illustrated in each subsection in the form of figures, followed by a discussion of the results. As in the case of follower LMX, the emphasis in the discussion is on unexpected results and antecedents that influence multiple dimensions of LMX as the theoretical background for the remaining supported hypotheses can already be found in Chapter 3 where the hypotheses are developed. More specific regression results including beta weights and levels of significance are reported in tables in Appendix 5 on p. 353. a) Personal antecedents Leader LMX hypothesis 1 predicting that leader extroversion will be positively related all dimensions of leader LMX was not supported. Leader extroversion had a positive impact on leader perceived similarity. Leader LMX hypothesis 2 predicting that follower extroversion will be positively related to all dimensions of leader LMX was supported with regard to the contribution dimension (and perceived similarity). 199 Leader LMX hypothesis 3 predicting that leader neuroticism will be negatively related to all dimensions of leader LMX was supported with regard to overall LMX and all the dimensions with the exception of affect. Leader neuroticism also had a negative impact on inrole performance. Follower inrole performance was a mediator with regard to the loyalty and respect dimensions. Perceived similarity was a mediator with regard to the respect dimension. Leader LMX hypothesis 4 predicting that follower neuroticism will be negatively related to all dimensions of leader LMX was not supported. Leader LMX hypothesis 5 predicting that follower agreeableness will be positively related to the affect, loyalty and contribution dimensions of leader LMX was not supported. Follower agreeableness had a positive impact on leader perceptions of inrole performance. Leader LMX hypothesis 6 predicting that leader conscientiousness will be positively related to the contribution and professional respect dimensions of leader LMX was not supported. Leader conscientiousness had a positive impact on leader perceived similarity and correlated with contribution. Leader LMX hypothesis 7 predicting that follower conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of leader LMX was not supported. Leader LMX hypothesis 8 predicting that leader harmony will be positively related all dimensions of leader LMX was not supported, as leader harmony had a negative impact on contribution. Leader LMX hypothesis 9 predicting that follower harmony will be positively related to all dimensions of leader LMX was not supported. Leader LMX hypothesis 10 predicting that high follower self-enhancement values will be negatively related to the affect and loyalty dimensions of leader LMX was supported with regard to the affect dimension (mediated by perceived similarity). Follower selfenhancement also had a negative effect on inrole performance. Leader LMX hypothesis 11 predicting that high follower self-enhancement values will be will be positively related to the contribution and professional respect dimensions of leader was not supported. Leader LMX hypothesis 12 predicting that leader cultural knowledge will be positively related to all dimensions of leader LMX was supported with regard to overall LMX and the loyalty and contribution dimensions. Leader LMX hypothesis 13 predicting that follower cultural knowledge will be positively related to all dimensions of leader LMX was supported with regard to overall LMX. 200 Leader characteristics, as a group, explained significant variance in overall LMX, loyalty and contribution as well as in similarity and inrole performance. Follower characteristics did not explain statistically significant incremental variance. These results are summarised in the figure below. Only the significant relationships are marked. The signs are explained below the figure. Figure 14: Follower personal characteristics and leader LMX, intercultural Follower extroversion Follower neuroticism + Follower agreeableness Leader overall LMX LMX dimensions Affect Follower conscientiousness Loyalty Follower harmony s -m Follower self-enhancement + Follower cultural knowledge Contribution Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity The significant effects of follower extroversion, self-enhancement and cultural knowledge on LMX quality in intercultural dyads are in accordance with the hypotheses. However, the insignificant effect of follower characteristics as a group on LMX quality is unexpected. It was hypothesised that follower characteristics influence the leader’s perceptions and evaluations of the follower, which in turn determine the dyadic partners’ behaviour towards each other (cf. Liden et al., 1997) as well as leader-member exchange quality (cf. Phillips & Bedeian, 1994). One highly tentative explanation for this is that the Chinese followers’ personalities and values may not be expressed in specific behaviours towards the leader. As mentioned earlier, Church and Lonner (1998) note that individuals in collectivist cultures appear to attribute behaviour less to internal traits partly due to the more contextual nature of behaviour in collectivist cultures. The importance given to contextual factors in collectivist countries is consistent with the interdependent view of the person: the origins of behaviour, although biologically 201 afforded and constrained, are located in being actively responsive to the expectations and requirements of others who are in the family, the work group, or in society at large (Markus & Kitayama, 1998). This makes roles, statuses, and in-group membership important (e.g. Gabrenya and Hwang, 1996). Gao et al. (1996) argue that it is the prescribed role of an individual, not the self, which is the main determinant of behaviour in China. In the interdependent cultural framework, the fact that one takes on a particular social role or a certain social position within the family or group does not mean that the person has lost his or her individuality. Markus and Kitayama argue that there can be many different patterns of behaviour within the framework defined by the social position the person engages. The acknowledgement of individuality is, however, tied with the recognition that the person is also a social being that is made meaningful within a larger social context. Personalities result as people engage in particular roles with specific other people. Markus and Kitayama (1998) argue that personalities in Asian cultural contexts may include both aspects of social roles and those of personalities as traditionally and typically conceived in the European American social sciences literature. In sum, it is possible that the Chinese followers’ behaviours may reflect their role obligations more than their personalities, or at least that personality is not such a strong determinant of behaviour as in the West. Furthermore, the Chinese followers may not express their personalities and values in a way that conforms to Western norms and the expectations of the Western expatriate leaders, which could reduce the effect of follower personality and values even further. Figure 15: Leader personal characteristics and leader LMX, intercultural Leader extroversion – Leader neuroticism –m p – –m Leader conscientiousness Leader overall LMX* LMX dimensions Affect sp Loyalty* Leader harmony – Leader cultural knowledge Contribution* + + + Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mp = mediated by inrole performance 202 These results indicate that leader LMX in intercultural dyads is more influenced by dispositional leader characterisitcs than by follower characteristics. As in the case of follower LMX quality, this finding is in line with the suggestions made by Uhl-Bien et al. (2000) and Brower et al. (2000) that relatively stable characteristics dispose the interacting individuals to approach interpersonal situations in a certain way. The negative effect of leader neuroticism on multiple dimensions of LMX is supported by theory. To summarise the discussion in Chapter 3, previous research has indicated that emotionally unstable (or neurotic) individuals experience chronic negative emotions (Judge et al., 1999) and neuroticism has been found to be related to negative affect (Duffy et al., 1998). Hui et al. (1999) argue that if a person tends to view life negatively, this person may be less likely to build effective work relationships (highquality leader-member exchange relationships) with others. This would explain the negative influence of leader neuroticism on various leader perceptions of their followers, including follower performance and perceptions of similarity that mediates some of the relationships between leader neuroticism and LMX. The positive effect of leader cultural knowledge on multiple dimensions of LMX is also in accordance with the hypotheses. Shaw (1990) argues that more complex and accurate cognitive schemata usually exist for well-known objects and persons than for less wellknown objects and persons. It was expected that a leader who has worked with employees of different nationalities in several multinational firms, has travelled extensively, and/or has been educated abroad and received cross-cultural training might have more positive follower schemata than a leader who posses less cultural knowledge. The schemata of the less experienced employee are likely to be more simple and stereotypical regarding foreign colleagues, and they could also be more negative. The negative influence of leader harmony on leader perceptions of follower contribution was not expected. Harmony, measured with items such as “It is a virtue to tolerate everything” and “I always try hard to get along well with others” is related to conflict avoidance. Harmonious leaders could hence be less demanding. It is possible that harmony does not induce respect in Chinese followers, who could be inclined to contribute less. This interpretation is supported by the hierarchical structure of interpersonal relationships in China, which is reflected as an acceptance of authority (cf. Yeung & Tung, 1996). This explanation is very tentative, however, as recent studies have suggested that authoritarian leadership may not be well received among young and well-educated Chinese employees (Farh & Cheng, 2000) who are well represented in the present context. b) Interpersonal antecedents Leader LMX hypothesis 14 predicting that the level of demographic similarity between leader and follower will be positively related to all dimensions of leader LMX was supported with regard to the contribution dimension. Age differences also had a negative impact on professional respect, and this relationship was mediated by perceived similarity. 203 Leader LMX hypothesis 15 predicting that the level of personality similarity between leader and follower will be positively related to all dimensions of leader LMX was supported, as personality differences had negative influence on overall LMX (mediated by inrole performance) and affect and professional respect (mediated by perceived similarity). Leader LMX hypothesis 16 predicting that a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on leader LMX quality and all its dimensions was not supported although a negative effect on perceived similarity was demonstrated. Leader LMX hypothesis 17 predicting that a high level of similarity in individualism and collectivism between leader and follower will be positively related all dimensions of leader LMX was not supported: differences in both individualism and collectivism had a positive impact on affect (and a negative impact on perceived similarity). Leader LMX hypothesis 18 predicted that leader perceptions of similarity with follower will be positively related to all the dimensions of leader LMX, and that perceived similarity will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader. Perceived similarity had a strong positive impact on overall LMX and all the dimensions, with the exception of loyalty (although the correlation was positive and significant). The interpersonal variables as a group, excluding perceived similarity, explained significant additional variance in overall LMX and the loyalty dimension. Perceived similarity explained significant incremental variance in overall LMX, affect and professional respect. 204 Figure 16: Interpersonal antecedents and leader LMX, intercultural – mp –m s + Perceived similarity1 Leader overall LMX* s –m Personality differences – s –m Demographic differences LMX dimensions + + + Differences in interpersonal relatedness + Differences in individualism + Differences in collectivism Affect Loyalty* Contribution Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mp = mediated by inrole performance These results indicate that expatriate leaders’ perceptions of their followers in terms of LMX quality is strongly influenced by similarity between leader and follower (whereas follower characteristics as such are not of great importance). Perceptions of similarity, in this case as hypothesised negatively influenced by differences in personality and demographic characteristics, arguably lead an individual to identify with the other dyadic member, enhances attraction and leads to a sense of predictability and confidence regarding the other individual’s likely behaviour in the future (e.g. Tsui, Xin & Egan, 1996). However, the positive influence of differences in collectivism and individualism was unexpected. As individualism and collectivism are variables frequently used to study cultural differences (e.g. Kagitcibasi, 1997) and as the Eastern and Western regions have been found to have very different cultural profiles (e.g. Hofstede and Bond, 1988), it is possible that the leaders expected there to be differences between them and their followers on these dimensions. These expected differences could have a more positive effect than unexpected differences. Leader LMX hypothesis 18 predicted that leader perceptions of similarity with follower will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader LMX. This hypothesis was supported with regard to the relationship between personality differences (negative effect) and both affect and 205 professional respect, and demographic differences (negative effect) and both contribution and respect. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 17: The mediating effect of perceived similarity on leader LMX, intercultural Follower selfenhancement Personality differences – Leader overall LMX* – LMX dimensions – Affect* Demographic differences Leader neuroticism Perceived similarity – a– – Loyalty Contribution Respect* * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect These findings support the argument that perceptions of similarity partly are an outcome of actual similarity. To recall, the similarity-attraction paradigm assumes that individuals who possess similar individual characteristics and attitudes will perceive one another as similar and will be attracted to each other (cf. Byrne, 1971, as cited in Wayne & Liden, 1995). c) Behavioural antecedents Leader LMX hypothesis 19 predicting that follower inrole performance will be positively related to all dimensions of leader LMX was supported with respect to overall LMX and all dimensions (when inrole performance was measured from a leader perspective) with the exception of, surprisingly, contribution (the correlation was, however, significant and positive). Follower performance (including both leader and 206 follower perceptions) explained statistically significant incremental variance only in the affect dimension. Leader LMX hypothesis 20 predicted that overall follower LMX will be positively related to all dimensions of leader LMX, and that follower performance will mediate this relationship. This hypothesis was supported with respect to overall leader LMX and the professional respect dimension. However, follower LMX did not explain statistically significant incremental variance in any of the dimensions. Inrole performance almost fully mediated the relationship between follower LMX and overall leader LMX. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 18: The mediating effect of follower inrole performance on leader LMX, intercultural Leader neuroticism Personality differences Perceived similarity – – + LMX dimensions + Follower inrole performance Affect* Loyalty + Follower LMX Leader overall LMX – Contribution Respect * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect The significant direct and mediating effect demonstrated by follower inrole performance on leader LMX quality is in line with the early conceptualisations of leader-member exchange development as well as the role-making model (Graen & Scandura, 1987), which suggested that the leaders assess the followers’ ability, performance and competence through a series of assignments and eventually develop high-quality exchanges with high-ability, competent, and high-performing followers. 207 These findings also support the hypothesis that leader LMX quality and follower LMX quality are linked. It was predicted that follower perceptions of leader-member exchange quality would induce better follower performance that in turn would lead to higher leader perceptions of leader-member exchange quality. As noted earlier in Chapter 2, the Confucian encouragement of reciprocation (Yeung and Tung, 1996) may increase this effect. Chinese followers may reciprocate for the affect, loyalty, and respect they perceive their leaders to provide them with in terms of increased performance. d) Summary The results pertaining to leader LMX in intercultural dyads (i.e. Western leader LMX) presented above show that the relative weight of different variables differs significantly across dimensions. Beginning with the affect dimension, it can be noted that a very significant part of variance in the dimension is explained by perceived similarity and that follower inrole performance has an additional significant effect. The remaining blocks of variables did not add variance for affect. Regarding loyalty, significant variance is explained foremost by leader characteristics and to a lesser extent by the block of interpersonal variables (excluding perceived similarity). The only significant part of variance in the contribution dimension is explained by leader characteristics, and the final model resulted in low adjusted R2 and non-significant F values. Concerning professional respect, significant variance is explained only by perceived similarity. In turn, regarding overall LMX, the most significant part of variance is explained by perceived similarity, followed by leader characteristics and interpersonal variables. The results indicate that the affect and professional respect dimensions are influenced by the same type of factors, as both are very significantly influenced by perceived similarity or factors that are mediated by perceived similarity. These two dimensions are also the only dimensions in which a significant part of variance is not explained by leader characteristics. The loyalty dimension, in turn, is very strongly influenced by leader characteristics and partly by interpersonal characteristics, but not at all by the perceptual factors (i.e. perceived similarity and inrole performance). The contribution dimension stands apart as it is only moderately influenced by leader characteristics but not by the other groups of variables. In sum, there are significant differences across dimensions. Furthermore, these results show that some of the hypothesised antecedents do not demonstrate a significant effect on any dimension. These include: leader extroversion, follower neuroticism, follower conscientiousness, leader conscientiousness, follower harmony, and differences in Interpersonal relatedness. 208 6.4.2 Intracultural Chinese dyads Below, the results concerning leader LMX in intracultural Chinese dyads (i.e. Chinese leader LMX) are summarised and presented in conjunction with the hypotheses. As before, the hypotheses and related results have been grouped under the headings a) personal antecedents, b) interpersonal antecedents, and c) behavioural antecedents. These results are summarised on a dimension level in section d). After presenting the results in conjunction with the hypotheses, the results are illustrated in each subsection in the form of figures, followed by a discussion of the results. As before, the emphasis in the discussion is on unexpected results and antecedents that influence multiple dimensions of LMX as the theoretical background for the remaining supported hypotheses can already be found in Chapter 3. The more specific regression results including beta weights and levels of significance are reported in tables in Appendix 5 on p. 361. a) Personal antecedents Leader LMX hypothesis 1 predicting that leader extroversion will be positively related all dimensions of leader LMX was not supported. Leader LMX hypothesis 2 predicting that follower extroversion will be positively related to all dimensions of leader LMX was supported with regard to overall LMX and the affect dimension. Leader LMX hypothesis 3 predicting that leader neuroticism will be negatively related to all dimensions of leader LMX was supported with regard overall LMX and all dimensions with the exception of affect. Leader neuroticism also had a negative impact on inrole performance. Follower inrole performance was a mediator with regard to the respect dimension. Perceived similarity was also a mediator with regard to the respect dimension. Leader LMX hypothesis 4 predicting that follower neuroticism will be negatively related to all dimensions of leader LMX was not supported. Leader LMX hypothesis 5 predicting that follower agreeableness will be positively related to the affect, loyalty and contribution dimensions of leader LMX was supported with regard to overall LMX and affect. Follower agreeableness also had a positive impact on leader perceived similarity. Leader LMX hypothesis 6 predicting that leader conscientiousness will be positively related to the contribution and professional respect dimensions of leader LMX was not supported. Leader conscientiousness had a positive impact on leader perceived similarity and correlated with contribution. Leader LMX hypothesis 7 predicting that follower conscientiousness will be positively related to the loyalty, contribution and professional respect dimensions of leader LMX was not supported. 209 Leader LMX hypothesis 8 predicting that leader harmony will be positively related all dimensions of leader LMX was not supported. Leader LMX hypothesis 9 predicting that follower harmony will be positively related to all dimensions of leader LMX was supported with regard to the contribution and respect dimensions. Leader LMX hypothesis 10 predicting that high follower self-enhancement values will be negatively related to the affect and loyalty dimensions of leader LMX was supported. Follower self-enhancement also had a negative effect on inrole performance. Leader LMX hypothesis 11 predicting that high follower self-enhancement values will be positively related to the contribution and professional respect dimensions of leader LMX was not supported. Self-enhancement had a negative effect on the contribution dimension (mediated by inrole performance). Leader LMX hypothesis 12 predicting that leader cultural knowledge will be positively related to all dimensions of leader LMX was not supported. Leader cultural knowledge had a negative effect on the affect dimension (mediated by similarity and inrole performance) as well as a negative effect on perceived similarity. Leader LMX hypothesis 13 predicting that follower cultural knowledge will be positively related to all dimensions of leader LMX was supported with regard to professional respect but it had a negative impact on loyalty and contribution. Leader characteristics, as a group, explained significant variance in overall LMX, affect, loyalty and contribution. Follower characteristics explained statistically significant incremental variance in loyalty and contribution. These results are summarised in the figure below. Only the significant relationships are marked. The signs are explained below the figure. 210 Figure 19: Follower personal characteristics and leader LMX, intracultural Follower extroversion + + Follower neuroticism Follower agreeableness Leader overall LMX + + LMX dimensions Affect Follower conscientiousness Loyalty* + + – Follower self-enhancement Contribution* – - mp Follower cultural knowledge – – + Follower harmony Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, mp = mediated by inrole performance The significant effect of follower characteristics as a group on LMX quality indicate that follower characteristics, as hypothesised, influence the leader’s perceptions and evaluations of the follower, which in turn determine leader-member exchange quality (cf. Phillips & Bedeian, 1994). Follower characteristics are hence more important determinants of the Chinese leaders’ perceptions than of the Western expatriate leaders’ perceptions. This could be due to the fact that the Chinese followers’ personalities and values may be more discernible to the Chinese leaders than to the Western leaders. The significant effect of follower extroversion, agreeableness, and harmony was in accordance with the hypotheses. The strong negative effect of self-enhancement on affect and loyalty was expected, although the negative relationship with the contribution dimension was not as hypothesised. The self-enhancement facet of individualism could have a negative influence on leader-member exchange as it identifies the degree to which individuals promote self-interest and personal gain, even when doing so may have negative repercussions for others (Ralston, Yu, Wang, Terpstra, & He, 1996). As noted in Chapter 3, follower self-enhancement could be especially negative as a follower characteristic in intracultural Chinese dyads. As an examlpe, Gao et al. (1996) argue that in Chinese culture, not everyone is entitled to speak and people only voice their opinions when recognised on the basis of expertise or a power position. A good employee does what he or she is told, has the willingness to meet others' expectations and to accept criticism (Gao et al., 1996). Furthermore, Farh and (2000) suggest that a follower’s willingness to be loyal and obedient to the leader is one factor influencing whether the follower is categorised into the in-group or out-group. These characteristics 211 seem to imply low self-enhancement and could also explain the positive effect of follower agreeableness in intracultural Chinese dyads. The results show, as hypothesised, that followers with cultural knowledge are respected professionally. However, the negative impact of follower cultural knowledge on the loyalty and contribution dimensions was unexpected. A tentative explanation for why Chinese leaders perceive less loyalty and contribution from Chinese followers who have cultural knowledge is that these followers may have undergone higher levels of acculturation than those with less cultural knowledge. Furthermore, the followers may deliberately attempt to adapt their behaviour to reflect more Western norms. This acculturation could reduce adherence to traditional norms and deviation from the role requirements prescribed by the wu lun, which could reduce the leader’s perceptions of leader-member exchange quality if the leader still endorses more traditional Chinese values. This westernised behaviour may not be expected or interpreted favourably in terms of loyalty and contribution by Chinese leaders. Furthermore, Chinese leaders may have high expectations of followers with cultural knowledge, leading to a negative effect in case these expectations are not met. Figure 20: Leader personal characteristics and leader LMX, intracultural Leader extroversion Leader neuroticism Leader conscientiousness Leader overall LMX* – – – –m LMX dimensions Affect* sp Loyalty* Leader harmony Leader cultural knowledge Contribution* – sp m Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, ms = mediated by similarity, mp = mediated by inrole performance As in the case of leader LMX in intercultural dyads as well as follower LMX, these findings indicate that perceptions of the dyadic partner are highly dispositional. These 212 results are consistent with the propositions made by e.g. Uhl-Bien et al. (2000) and Brower et al. (2000). The figure indicates that leader neuroticism has the most significant relationship with leader LMX as compared to other leader characteristics. This finding is in line with the results obtained for leader LMX in intercultural dyads. As already discussed, negative affectivity is commonly seen as a facet of neuroticism (e.g. Judge et al., 1999) and negative affectivity has been found to increase a person’s susceptibility or responsiveness to stimuli that generate negative emotions (Larsen & Katelaar, 1991, as cited in Skarlicki et al., 1999), which partly explains the negative perceptions neurotic leaders have of their followers. Only hypothetical explanations regarding the unexpected negative effect of leader cultural knowledge on leader perceptions of leader-member exchange quality can be offered. As this negative effect occurs through the mediation of inrole performance, a possible explanation is that internationally experienced and trained Chinese leaders are more demanding, and hence likely to rate leader-member exchange quality lower than leaders who do not possess this cultural knowledge. It is also possible that cultural knowledge and international experience increases the leaders’ self esteem and appreciation of their own skills, which when unfounded, creates a negative reaction from the followers, which in turn reduces the level of affect the leader has for the followers. The additional mediating effect of perceived similarity suggests that leader cultural knowledge reduces perceptions of similarity, possibly due to acculturation effects. In addition, as cultural knowledge is supposed to increase specification and accurate judgements (Brake et al., 1995) it is possible that cultural knowledge could diminish what Adler (1997) calls cultural blindness (lack of attention to cultural assumptions) and lack of cultural self-awareness (ignorance associated with not knowing one’s own cultural conditioning), which could facilitate the recognition of differences also in fellow countrymen. b) Interpersonal antecedents Leader LMX hypothesis 14 predicting that the level of demographic similarity between leader and follower will be positively related to all dimensions of leader LMX was supported with regard to the contribution dimension (mediated by inrole performance). Gender and education differences also had a negative impact on professional respect, and age differences on overall LMX (this relationship was mediated by inrole performance). Gender differences also had a negative impact on inrole performance. Leader LMX hypothesis 15 predicting that the level of personality similarity between leader and follower will be positively related to all dimensions of leader LMX was not supported: differences in personality had a positive impact on the contribution dimension (but a negative influence on perceived similarity). Leader LMX hypothesis 16 predicting that a high level of similarity between leader and follower in Interpersonal relatedness will have a positive effect on leader LMX quality and all its dimensions was supported with regard to the loyalty dimension. 213 Leader LMX hypothesis 17 predicting that a high level of similarity in individualism and collectivism between leader and follower will be positively related all dimensions of leader LMX was partly supported as differences in individualism had a negative impact on overall LMX. Leader LMX hypothesis 18 predicted that leader perceptions of similarity with follower will be positively related to all the dimensions of leader LMX, and that perceived similarity will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader LMX. This hypothesis was partially supported, as perceived similarity had a strong positive impact on overall LMX and the affect and respect dimensions as well as inrole performance. Inrole performance mediated the relationship between perceived similarity and overall LMX and respect. Interpersonal variables as a group (excluding perceived similarity) explained statistically significant incremental variance in overall LMX. Perceived similarity explained significant incremental variance in overall LMX, affect and respect. Figure 21: Interpersonal antecedents and leader LMX, intracultural Demographic differences – mp – m + Leader overall LMX* + LMX dimensions p Personality differences + Perceived similarity1 + Differences in interpersonal relatedness Affect – Differences in individualism Loyalty – Differences in collectivism Contribution Respect * the block of variables explains significant incremental variance on the dimension + = positive effect, – = negative effect, mp = mediated by inrole performance As in the case of other dyad types, the support found for the hypothesised importance of perceived similarity as an antecedent to leader-member exchange is strongly supported by theory and past research (e.g. Tsui et al., 1996). However, it is noteworthy that based on the present findings, Chinese leaders’ perceptions of their dyadic partners in terms of 214 LMX quality are far less influenced by perceptions of similarity than those of the Western leaders and followers. The finding that leader-member exchange quality is negatively influenced by demographic differences and differences in Interpersonal relatedness and individualism is in line with the hypotheses relying on the similarity-attraction paradigm. The reason for why differences in personality demonstrate an unexpected positive effect could be, as discussed earlier in the case of the other dyad types, that leaders may value different personality traits in a follower as compared to the ones they possess themselves (cf. Tsui et al., 1996). This could be due to differing role requirements (cf. e.g. Hui & Graen, 1997). Leader LMX hypothesis 18 predicted that leader perceptions of similarity with follower will mediate the relationship between actual similarity, cultural knowledge, and all the dimensions of leader LMX. This hypothesis was partially supported, as perceived similarity mediated the relationships between leader cultural knowledge (negative effect) and affect, follower cultural knowledge (negative effect) and loyalty, gender differences (negative effect) and overall LMX and respect. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed. Figure 22: The mediating effect of perceived similarity on leader LMX, intracultural Follower agreeableness + Leader overall LMX* Follower cultural – knowledge LMX dimensions Follower LMX + + + Demographic differences (g) Leader neuroticism – – – Affect* Perceived similarity1 Loyalty Contribution – – Respect* Leader cultural knowledge * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect 215 These findings support the assumptions made within the similarity-attraction paradigm that individuals who possess similar individual characteristics and attitudes will perceive one another as similar and will be attracted to each other. Perceived similarity is hence, as expected, partly an outcome of actual similarity. Furthermore, it seems that the Chinese leaders’ perceptions of similarity with their follower are based on the more easily identifiable demographic differences than on personality differences or differences in values. The negative effect demonstrated by both leader and follower cultural knowledge on the Chinese leaders’ perceptions of similarity is also in accordance with the hypotheses. As discussed earlier, this effect could be due to an actual increase in diversity due to acculturation. Furthermore, as mentioned earlier, it is possible that cultural knowledge could diminish cultural blindness and lack of cultural self-awareness, which could facilitate the recognition of differences also in fellow countrymen. c) Behavioural antecedents Leader LMX hypothesis 19 predicting that follower inrole performance will be positively related to all dimensions of leader LMX was supported (when performance was measured from a leader perspective) with respect to overall LMX and all dimensions, with the exception of, surprisingly, contribution. Inrole performance measured from the follower’s perspective affected only overall LMX. Follower inrole performance (including both leader and follower perceptions) explained statistically significant incremental variance in overall LMX and all dimensions with the exception of loyalty. Leader LMX hypothesis 20 predicted that overall follower LMX will be positively related to all dimensions of leader LMX, and that follower performance will mediate this relationship. This hypothesis was supported with respect to the affect, loyalty and contribution dimensions. Perceived similarity (as well as performance with regard to the loyalty dimension) mediated the effect. Follower LMX explained statistically significant incremental variance in the loyalty and contribution dimensions. The figure below depicts all mediational relationships, not just those for which specific hypotheses have been formulated. These non-hypothesised relationships are presented merely as additional information and will not be discussed in detail. 216 Figure 23: The mediating effect of follower inrole performance on leader LMX, intracultural Follower age Follower LMX – Follower – self-enhancement – Leader overall LMX* Follower – cultural knowledge Follower inrole performance a– eg– Demographic differences + Perceived similarity Affect* Loyalty + + – – Leader neuroticism LMX dimensions Contribution* – – Respect* – Leader cultural knowledge * the mediator explains significant incremental variance on the dimension + = positive effect, – = negative effect The very significant direct and mediating effect demonstrated by follower inrole performance on leader LMX quality in intracultural Chinese dyads supports the proposition made by Cheng (1995, as cited in Farh & Cheng, 2000) that follower competence is an important determinant of whether the Chinese leader categorises the follower as belonging to the in-group or out-group. Follower inrole performance is far more important in intracultural Chinese than in intercultural dyads, which in contrast is more influenced by leader perceptions of similarity. These findings also provide further support for the hypothesis that leader LMX quality and follower LMX quality are interrelated. To recall, it was predicted that follower perceptions of leader-member exchange quality would induce better follower performance that in turn would lead to higher leader perceptions of leader-member exchange quality. As noted earlier, the Confucian encouragement of reciprocation (Yeung and Tung, 1996) may induce the Chinese followers to reciprocate for the highquality relationship with their leaders with increased performance. d) Summary The results pertaining to leader LMX in intracultural Chinese dyads (i.e. Chinese leader LMX) presented above show that the relative weights of the different groups of variables differ significantly across dimensions. 217 Beginning with the affect dimension, it can be noted that a significant part of variance in the dimension is explained by perceived similarity and that follower inrole performance and leader characteristics have an additional important effect. Regarding loyalty, significant variance is explained foremost by follower characteristics and by interpersonal variables (excluding perceived similarity) and follower LMX to a lesser extent. Significant variance in the contribution dimension is explained both by leader and follower characteristics, and to a lesser extent by follower inrole performance and follower LMX. Concerning professional respect, very significant variance is explained by follower inrole performance and to a lesser extent by perceived similarity. The final model resulted in rather low adjusted R2 and low F value. Regarding overall LMX, the most significant part of variance is explained by follower inrole performance, followed by perceived similarity, interpersonal variables, and leader characteristics. The contribution dimension stands apart from the other dimensions as it is very strongly influenced by both leader and follower characteristics. The loyalty dimension stands apart from the other dimensions, as it is the only dimension not influenced by the perceptual variables (perceived similarity or inrole performance). The professional dimension stands apart from the other dimensions, as it is the only dimension not influenced by either leader or follower characteristics. In sum, there are significant differences across dimensions. Furthermore, these results show that some of the hypothesised antecedents do not demonstrate a significant effect on any dimension. These include: leader extroversion, follower neuroticism, follower conscientiousness, leader conscientiousness, and leader harmony. 6.4.3 Comparison of intercultural and intracultural dyads The results indicate that intercultural and intracultural Chinese dyads have some common features with regard to the antecedents of leader LMX but that many specific characteristics distinguish them from each other. As the Western and Chinese measures of leader LMX as well as the measures of the antecedents of LMX are not identical across groups (this concerns at least the measures of LMX, perceived similarity and inrole performance, as the validation analyses demonstrated cross-cultural inequivalence), it is not possible to make direct comparisons between Western and Chinese leader LMX and their antecedents. However, although the employed constructs are not identical across groups, it is presumed that they at least measure similar constructs that are meaningful for both Western and Chinese leaders. The word ‘comparison’ is hence not used in this section to denote comparisons in a strict sense, but it is used to represent general tendencies, including differences and similarities across groups What intercultural and intracultural Chinese dyads have in common is that perceived similarity explains a significant part of incremental variance in overall leader LMX, affect and professional respect. Leader characteristics as a group adds incremental variance for overall LMX and contribution and at least one additional dimension in both 218 dyad types. The fact that follower characteristics do not largely influence leader leadermember exchange quality implies that personal characteristics to a larger extent influence how we perceive another person than how we are perceived by the other person. Furthermore, the block of interactional variables explains incremental variance in overall LMX in both dyad types. More specific common features between intercultural and intracultural Chinese dyads at a variable level include: a) Follower self-enhancement has a negative effect, although a much stronger negative effect in intracultural Chinese dyads (i.e. for Chinese leaders). (As noted earlier, follower self-enhancement could be especially negative in intracultural Chinese dyads as the Confucian collectivism traditionally does not promote selfenhancement or self-interest, especially for those in a follower role); b) Follower neuroticism and conscientiousness do not demonstrate a significant effect; c) Leader neuroticism has a very strong negative effect on overall LMX and all dimensions with the exception of affect: d) Demographic differences have a negative impact; e) Perceived similarity has a positive effect, although stronger in intercultural dyads (i.e. for Western leaders) and the effect is largely mediated by inrole performance in intracultural Chinese dyads; f) Perceived similarity and inrole performance are important mediators, the mediating role of inrole performance is especially strong in intracultural Chinese dyads; g) Inrole performance has a positive influence, although a much stronger effect in intracultural Chinese dyads; h) Follower LMX has a positive effect; i) Length of interaction is a control variable that demonstrates a positive effect, although a much stronger effect in intracultural Chinese dyads. However, the comparison of intercultural and intracultural Chinese dyads also indicates that leader LMX quality in these dyads is influenced by different factors and that some factors have the opposite effect in intercultural as compared to intracultural Chinese dyads. More specific variable level differences between intercultural and intracultural Chinese dyads include: a) Follower extroversion is more important and positive in intracultural Chinese dyads than in intercultural dyads; b) Follower agreeableness has significant and positive effect in intracultural Chinese dyads but is not significant in intercultural dyads. (Gabrenya and Hwang, [1996:313] use the phrase “harmony within hierarchy” to characterise social behaviour in Confucian societies. A person's fulfilment of the responsibilities of a given role ensures the smooth functioning of society. As agreeableness reflects an individual’s disposition to avoid arguments and motivation to actively advocate their positions on controversial issues and attack another person’s position [Skarlicki et al., 1999] the importance of follower agreeableness in intracultural Chinese dyads is understandable); 219 c) Follower harmony has a significant and positive impact in intracultural Chinese dyads but is not significant in intercultural dyads; d) Follower cultural knowledge has a predominately negative effect (on loyalty and contribution) in intracultural Chinese dyads (but a positive effect on professional respect) whereas it only marginally and positively affects overall LMX in intercultural dyads; e) Leader neuroticism has a very strong negative effect in both dyad types (but this effect is mediated by performance in intercultural dyads); f) Leader harmony is a negative influences in intercultural dyads (but demonstrates a positive correlation in intracultural Chinese dyads); g) Personality differences have a positive effect in intracultural Chinese dyads, but a negative effect in intercultural dyads (the Chinese may expect those in the leader role to have different personalities from the followers); h) Differences in individualism have a negative effect in intracultural Chinese dyads, but a moderate positive effect in intercultural dyads. (The result that differences in individualism have a negative effect in intracultural Chinese dyads but positive effect in intercultural dyads could tentatively be explained by expectations. Western leaders may expect the Chinese followers to differ in personality and values, and a confirmation of these expectations could lead to a positive effect. However, Chinese leaders working with their fellow countrymen may expect more similarities in personality and values, and a differences in these characteristics would have negative repercussions on leader perceptions in accordance with the similarityattraction paradigm as well as traditional Chinese values.); i) Follower inrole performance is more important in Chinese than in intercultural dyads, whereas similarity is more important in intercultural dyads: j) Leader tenure in company is a control variable with a positive influence for Chinese leaders (on all perceptions but affect) but strongly negative for Western leaders; k) Interaction intensity (control variable) has a positive effect in intracultural Chinese dyads but a non-significant or negative effect in intercultural dyads. In sum, these findings suggest that Western expatriates’ perceptions of their Chinese followers are largely influenced by different factors than the Chinese leaders’ perceptions of their followers in terms of LMX quality. Western and Chinese leaders may have different bases for judging their followers. As mentioned in Chapter 2, some evidence exists that cognitive leader and member structures have a cultural component, meaning that the content and complexity of prototypes may differ across cultures (e.g. Ah Chong & Thomas, 1997; Shaw, 1990; Ling et al., 2000). However, these findings must be interpreted with caution as the Chinese and Western leader measures did not demonstrate cross-cultural equivalence, which makes direct comparisons between Western and Chinese leaders impossible. The most distinctive difference between intercultural and intracultural Chinese dyads seems to be that follower inrole performance is a much more important determinant of LMX quality for Chinese than for Western leaders. This finding supports the proposition made by Cheng (1995, as cited in Farh & Cheng, 2000) that follower competence is an important determinant of whether the Chinese leader categorises the follower as belonging to the in-group or out-group. In contrast, perceived similarity is more important for Western leaders, indicating that attraction plays a larger role in 220 intercultural than in intracultural Chinese dyads. This interpretation is supported by the finding that factors that influence perceptions of similarity in general, i.e. mainly the interpersonal variables, tend to have a larger impact on the perceptions of the Western leaders than on the perceptions of the Chinese leaders. In contrast, the direct effect of follower characteristics is more in terms of the perceptions of the Chinese leaders. In sum, based on the present findings Chinese leader LMX quality is highly influenced by follower performance and follower characteristics whereas Western leader LMX quality is more influenced by the level of actual and perceived similarity as well as leader predisposition. 221 6.5 OVERVIEW OF ANTECEDENTS OF LEADER AND FOLLOWER LMX IN INTERCULTURAL AND INTRACULTURAL CHINESE DYADS An overview of the antecedents of both leader and follower LMX in both intercultural Western-Chinese and intracultural Chinese dyads is provided in the table on the following page. This table presents an overview of the results of all the regression analyses presented in Appendix 5. As the information in the table may be difficult to grasp in all its width, a simplified version of the table that summarises these results is presented in the end of this section. The table below summarises the results obtained for: 1) follower LMX in intercultural dyads, 2) follower LMX in intracultural Chinese dyads, 3) leader LMX in intercultural dyads, and 4) leader LMX in intracultural Chinese dyads. The table enables the examination of the effect of each individual independent variable across these four groups, beginning with follower characteristics (including control variables) and continuing with leader characteristics, interpersonal variables and finally perceptual and behavioural variables. These independent variables are listed in Column 1. After each group of variables, there is a row for information regarding the significance of the variance explained by the group of variables. Column 2 contains information about dyad type (i.e. Chinese or intercultural). The row for each independent variable is divided into two sub rows, one for each dyad type, which facilitates the comparison of the effect of a specific independent variable across intercultural and intracultural Chinese dyads. However, as discussed earlier, it should be noted that as the Western and Chinese leader measures and the leader and follower measures are not identical across groups, it is not possible to make direct comparisons between Western and Chinese leader LMX or leader and follower LMX and their antecedents. However, as noted earlier, although the employed constructs are not identical across groups, it is presumed that they at least measure similar constructs that are meaningful for both leaders and followers in both intercultural and intracultural Chinese dyads. As a result, examining the effect of a specific variable across groups should increase our understanding of the general impact of a certain type of factors in determining LMX quality. The six following columns are designated for marking the effect of each independent variable on the dependent variables that measure follower perceptions (i.e. similarity = Sim, interactional justice = Jus, overall LMX = LMX, affect = Aff, loyalty = Loy, contribution = Con, and finally respect = Res. The remaining six columns are reserved for the effect on leader perceptions, beginning with the mediators (similarity = Sim, inrole performance = Per) and continuing, as in the case of follower perceptions, with overall LMX and its dimensions. As the regression models for leader and follower LMX were slightly different, all independent variables are not relevant in both groups. In this case, non-applicability is marked with a “na”. The other signs in the table are explained in the last rows of the table as well as under the table. Comparisons between follower LMX in intercultural and intracultural Chinese dyads as well as between leader LMX in intercultural dyads and intracultural Chinese dyads were already conducted in sections 6.3.3 and 6.4.3. The focus in the discussions in this section is hence on comparisons across perspectives, i.e. comparing the antecedents of leader and follower LMX. Self-enhancement Harmony Agreeableness Conscientiousness Extroversion Neuroticism Cultural knowledge Tenure, company Demographics Leader characteristics ∆ F (Step 1) F (if Step 2) e+ Intercult Chinese Intercult Chinese Intercult Chinese Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult r r+ r+ r e a+ Chinese Intercult Jus † na na ** Sim + + +++ ▪ Self-enhancement r + + +• ms+ ++•r ( m) r ( m) Lmx re am s (+m) † •rmj+ +• Na Na +r + Na Na ** ++• ms r- r+ ▪ ▪ □▪ Harmony ▪□□ □▪ □▪ ▪□□ ▪ ▪ ▪ ▪ Agreeableness na na + + na na ++ r r+ + na na □□ Conscientiousness ▪ Extroversion ▪ Neuroticism + r (+ m) ▪ Cultural knowledge ( m) ++• ++•r •rms msr +•r na na * ** Aff r+ mjr+ na na na na r+ r +•r + • ( •m) ( •m) na na na na ++• ms Loy na na * ** Con + na na +++•r na na r+ ++ na na rms+ (+m) ( •m) ++• ++• ++• • ( m) (•+m) r+ •rms ms r+ ( •m) □ ▪ □□ □ ▪ Tenure, company □ □□ □ □ □ ▪ □ ▪ Demographics • ms+ •rms e ermj Res na na † na na r+ r+ r+ r Res na na r na na Sim ++ Per e a a na na na + ms na na (+ m) r na r+ r+ ( m) na na na na ++ r +r na na ( m) na na r+ na na Per Lmx (•+m) ++• r ++•r r ( m) ++• •r (• m) ++•r r msp (•m ) na na na na na na ( r+m na na ( m) na na (• m) na na ( m) ( m) na na na na •rmp r+ na na r+ • na na ( r ) na ++ na + na •r na Con *** mp (• m) +r •r+ ( m) na Loy ** r (•+m) Con na na na na Loy na na na na na Aff r ms ++•r + (+m) + (+•m) •+ Aff na na na na Lmx a e r+ A e • na na Sim +++ ▪□ ▪ □ Con na na (+m) □ ▪ Loy na na r □ ▪□ □ □ □ Aff na na □ ▪□ ▪□□□ ▪□□ ▪□□□ □□ □ Lmx Na Na □ □ □ □ □□ □ ▪□ ▪ □ □ Jus na na □ □ □□ □ □□ □ ▪□ □ □ □ □□ Sim na na □ □ □ Dyad type Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult □ □ □ Follower characteristics □□□ □ ▪□□□□ ▪□ LEADER PERCEPTIONS ▪ □□ ▪ ▪□□□ □ □ FOLLOWER PERCEPTIONS na na na na ( •m) msp •r ms p na na Res ++r (+m) na na ++ Res amp □ □ □ ▪ □ □ □▪ ▪□ DETERMINANTS □ □□ □▪ ▪□□ □□ ▪□ Table 20: Overview of results for leader and follower LMX □ Chinese Intercult r+ g Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult † r ( m) Intercult (g+) g r+ r+ ++ r Jus + Aff msj+ ms Lmx ++•r •r † ( m) •r (a m) † ++• •r rms+ •r † • • ms •rmj+ * Con ms+ •ms ( m) r+ ++• +• * ( m) •r (e+m) (a m) rms+ mj+ (• m) Res +++•r r ++ r *** Sim ( m) g +++ † Per + □□□ ▪ □ □ ∆ ∆ mp Amp (a •m) Rms+ † * Lmx + (•+m) •+ * * Lmx ( •m) mp+ Rmp+ +++•r * ** na na ++++• +•r +• • (+•m) Lmx ++ r+ * * Aff ms+ r+ ++• +++•r ** *** na na +++•r ++•r •+ + • ms ms+ Aff rmsp+ * •r+ na na +•r •r+ r+ † Loy msp+ • ( •m) ++•r † *** Loy • * na na (+ m) r+ r+ rmp+ Con rms+ rmp • + + *** ** Con r+ † ++• rmp+ ++++• † *** na na ++++ ++r Res (+•m) ms •rmsp + g e ams Res Entries beginning with ‘r’ indicate that there is a relationship only a correlational level; these variables are not considered to be significant determinants although they are included in the table. In the row for demographic factors, ‘a’ stands for age, ‘e’ for education and ‘g’ for gender ms = fully mediated by similarity, mj = fully mediated by interactional justice, mp = fully mediated by performance, na = non-applicable, (*m) = multicollinearity likely □□□□ Sim □ Perceptions & behaviour ▪ □ * Aff Loy Con Res Sim Per Chinese mj+ (• m) ++ Other’s perceptions of LMX Intercult ( •m) + Chinese ++++ ++r •rmj+ +•r +++•r rmj+ ++ Similarity Intercult +++ ++++• ++•r +•r +++ ++•r Chinese *** *** *** † ** * F at Step 5 Intercult *** *** *** * *** ** Chinese ++•r ++++• r+ r+ +++•r na na Follower interactional justice Intercult ++++• +++•r +•r r+ +++•r na na Chinese na na na na na na na Leader inrole performance Intercult na na na na na na na Chinese na na na na na na na Follower inrole performance Intercult na na na na na na na + Chinese * *** ** *** F at Step 6 Intercult ** ** ** † + = positive effect (magnitude of beta weight or sign of correlation), + p < .10, ++ p < .05, +++ p < .01, ++++ p < .001 = negative effect, p < .10, p < .05, p < .01, p < .001 r = significant correlation (p < .05) , = variable selected using backward deletion, * significance of F, † p < .10, * p < .05, ** p < .01, *** p < .001 ∆ F at Step 3 Differences in collectivism Differences in individualism Differences in interpers rel. Personality differences Demographic differences □□ Months of interaction ▪ Interaction intensity Jus ▪□ □□ Chinese Intercult Chinese ∆ □□ □□□ □ □ Interpersonal variables * Loy □ *** □ □ ** ▪ □ □□ ▪ ▪□□ □ □□□ * ** Sim +++ ▪ □ □ □ □□ ∆ F (Step 1) F (if Step 2) r+ □ ▪□□□ ▪□ ( m) ** □□ □ □ ▪□□ □ + □ □ rms+ □ □ ( m) ▪ □ □ □ r+ □ ▪ □□□ □ Chinese Intercult Chinese Intercult ▪ □ □□ ▪ □ □□ No. of supervised follow. □ □ □▪ □ ▪ □□ □ 224 Below, the information concerning the personal, interpersonal, and behavioural antecedents of LMX provided in the table above is presented by examining the effect of each group of variables and each variable across groups (i.e. follower LMX in intercultural dyads, follower LMX in intracultural Chinese dyads, leader LMX in intercultural dyads, and leader LMX in intracultural Chinese dyads). The focus is on comparisons across perspectives, i.e. comparing the antecedents of leader and follower LMX. The effect of the variables will be examined following the order of the variables in the tables. a) Personal antecedents Before the presentation of the effect of each personal leader and follower characteristic across groups, a few words of explanation. Some personal characteristics are hypothesised to influence how we perceive another person. If a personal characteristic only influences LMX measured from the same perspective (e.g. follower conscientiousness and follower LMX), it means that this characteristic falls within this category. Other personal characteristics are hypothesised to influence how others perceive us. Such personal characteristic are variables that only influences LMX measured from the other perspective (e.g. follower self-enhancement and leader LMX). These characteristics include agreeableness and self-enhancement (and demographic control variables). In addition, some personal characteristics are hypothesised to influence both how we perceive another person and how others perceive us (e.g. leader neuroticism and leader and follower LMX). These are cultural knowledge, neuroticism, extroversion, conscientiousness and harmony. The table indicates that follower personal characteristics as a group exert strong influence on follower LMX, while they do not have a large impact on leader LMX, with the exception of the effect on loyalty and contribution in intracultural Chinese dyads. In other words, follower personal characteristics mainly influence follower perceptions of the leader, not how the leader perceives the follower. The following general remarks can be made regarding the effect of specific follower personal characteristics on both leader and follower LMX (if the effect differs significantly across dyad type, i.e. intercultural or Chinese, this will be specifically mentioned; for more specific information, please refer to the table above): a) Follower cultural knowledge influences both leader and follower LMX in a different way across groups. Follower cultural knowledge has a positive effect on how followers perceive their Chinese leaders and on how Western leaders perceive overall LMX with followers. A negative effect is demonstrated on how Western leaders are perceived and on how Chinese leaders perceive the follower (with the exception of respect). This leads to a dilemma: at the same time as cultural knowledge has a positive or negative impact on how the dyadic partner is perceived by the other party it has the opposite impact on the perceptions of the other party; b) Follower neuroticism has significant negative effect on follower LMX only; c) Follower extroversion demonstrates a consistently positive effect on both leader and especially follower LMX although mainly at a correlational level; d) Follower conscientiousness has significant positive effect on follower LMX only; 225 e) Follower agreeableness shows a positive effect on leader LMX (not predicted to influence follower LMX); f) Follower harmony demonstrates a positive effect on both leader and follower LMX; g) Follower self-enhancement shows a negative effect on leader LMX (not predicted to influence follower LMX). The table indicates that leader personal characteristics as a group explain significant variance in both leader and follower LMX, but especially in leader LMX. In sum, it seems that personal characteristics to a larger extent influence how we perceive another person than how we are perceived by the other person. The following general remarks can be made regarding the effect of specific leader personal characteristics on both leader and follower LMX: a) Leader cultural knowledge mainly influences leader LMX, and it has a positive effect in intercultural dyads and a negative effect in intracultural Chinese dyads; b) Leader neuroticism is a strong negative influence on both leader and follower LMX, with the exception of follower affect in intracultural Chinese dyads; c) Leader extroversion mainly influences follower LMX, and it has a positive effect in intercultural and a negative effect in intracultural Chinese dyads; d) Leader conscientiousness demonstrates a significant effect only in intercultural dyads and it has a negative effect on follower LMX (The negative influence of leader conscientiousness on follower perceptions of their own contribution could be due to the fact that conscientious leaders could be more demanding than less conscientious leaders and hence likely to reduce the followers perception of their own contribution); e) Leader agreeableness influences follower LMX (not predicted to influence leader LMX), and it has a negative impact in Chinese but a positive impact in intercultural dyads; f) Leader harmony has a positive effect on follower LMX (in intracultural Chinese dyads) and a negative effect on leader LMX (in intercultural dyads); g) Leader self-enhancement demonstrates a positive effect on follower LMX (not predicted to influence leader LMX). It is possible to compare the personal characteristics also at the level of the characteristic: are there personal characteristics that both the leader and follower should possess to enhance LMX quality measured from both leader and follower perspectives? An examination of the table enables the following inferences (if the effect of a personal characteristic differs across groups, i.e. across perspectives or dyad types, this is specifically mentioned): a) Cultural knowledge: In intracultural Chinese dyads, both leader and follower cultural knowledge has a negative impact on leader LMX (with the exception of the positive impact of follower cultural knowledge on leader respect), while follower cultural knowledge demonstrates a positive effect on follower LMX. In intercultural dyads, leader and follower cultural knowledge has positive influence on leader LMX, while follower cultural knowledge has a negative impact and leader cultural knowledge a positive impact on follower LMX. (This means that if the main concern 226 b) c) d) e) f) g) is leader LMX, no cultural knowledge is recommended in intracultural Chinese dyads, whereas cultural knowledge for both leader and follower is beneficial in intercultural dyads. To enhance follower LMX, cultural knowledge is not of importance in intracultural Chinese dyads, whereas in intercultural dyads, the leaders should have cultural knowledge but not the follower. Follower cultural knowledge simultaneously decreases follower LMX while increasing leader LMX); Neuroticism is a predominately negative personal characteristic for both leaders and followers. It is negative especially as a leader characteristic and especially in intercultural dyads. There is one exception for the negative effect of neuroticism: in intracultural Chinese dyads, both leader and follower neuroticism has a positive effect on follower affect; Extroversion is a positive personal characteristic for both leaders and followers, with the exception of as a leader characteristic in intracultural Chinese dyads; Conscientiousness is positive as a follower characteristic (only influences follower LMX) negative as a leader characteristic (only influences follower LMX); Agreeableness is a predominately positive leader and follower characteristic as a determinant of the dyadic partner’s perceptions of LMX (not predicted to influence own perceptions of LMX) in both Chinese and intercultural dyads; Harmony has a positive influence both as a leader and follower characteristic in both Chinese and intercultural dyads, with the exception of as leader characteristic in intercultural dyads; Self-enhancement is a positive characteristic for leaders as an influence of follower LMX (not predicted to influence leader LMX) but negative for followers as an influence of leader LMX (not predicted to influence follower LMX) in both intercultural and intracultural Chinese dyads. The examination of the incremental variance explained by different groups of factors implied that follower personal characteristics as a group exert strong influence on follower perceptions of leader-member exchange quality, while they do not have a large impact on leader perceptions of leader-member exchange quality, with the exception of the effect on loyalty and contribution in intracultural Chinese dyads. In other words, follower personal characteristics mainly influence follower perceptions of the leader, and not how the leader perceives the follower. Leader personal characteristics as a group explain significant variance in both leader and follower perceptions of leadermember exchange, but especially pertaining to leader perceptions. It hence seems that personal characteristics to a larger extent influence how we perceive another person than how we are perceived by the other person. b) Interpersonal antecedents The interpersonal variables simultaneously influence both leader and follower perceptions as they are formed through the interaction of leader and follower characteristics and the context in which the interaction takes place. The table indicates that interpersonal variables (excluding perceived similarity) as a group explain incremental variance in follower LMX (in intracultural Chinese dyads only) and in overall leader LMX (both in intercultural and intracultural Chinese dyads). 227 In general, the effect of interpersonal variables is not as significant as the effect of the other groups of variables. The following general remarks can be made regarding the effect of specific interpersonal variables on both leader and follower LMX: Demographic differences have a negative effect on both leader and follower LMX; a) Personality differences have a positive impact on follower LMX, but a negative impact on leader LMX; b) Differences in Interpersonal relatedness have a negative effect on both leader and follower LMX, although not very significant; c) Differences in individualism is a negative influence on leader and follower LMX in intracultural Chinese dyads, but a positive influence on leader affect in intercultural dyads; d) Differences in collectivism demonstrate a positive effect on both leader and especially follower LMX; e) Perceived similarity is important for both leaders and followers in Chinese and intercultural dyads. However, perceived similarity is slightly more important for leaders and followers in intercultural dyads than in intracultural Chinese dyads. Perceived similarity explained significant incremental variance in all leader-member exchange dimensions across groups with the exception of leader loyalty and contribution f) Interaction intensity is a contextual control variable that demonstrates a strong positive effect in intracultural Chinese dyads, but is insignificant in intercultural dyads with the exception of a negative effect on leader contribution; g) Length of interaction is a contextual control variable that demonstrates a positive effect on both leader and follower LMX with the exception of the strong negative effect in intracultural Chinese dyads on follower LMX. c) Behavioural antecedents The behavioural antecedents, namely interactional justice in the case of followers and inrole performance in the case of leaders were hypothesised to influence follower LMX and leader LMX, respectively. These hypotheses were supported. Furthermore, it was hypothesised that these behavioural variables would act as mediators between the impact of leader LMX on follower LMX and between follower LMX and leader LMX. These hypotheses were supported with regard to intracultural Chinese dyads as well as with regard to the relationship between follower and leader LMX in intercultural dyads. A mediating effect of the behavioural variable was hence not detected in intercultural dyads with regard to the relationship between leader and follower LMX quality. There hence seems to be a linkage between the dyadic partners’ perceptions of LMX quality. However this relationship is stronger in Chinese as compared to intercultural dyads. It hence seems that the expatriate leaders’ perceptions of LMX quality with their followers do not induce reciprocation in form of fair treatment that in turn would have a favourable impact on follower LMX. 228 d) Summary As an aid to identify a good combination of leader and follower characteristics, factors that demonstrated a significant effect on leader-member exchange quality in intercultural and intracultural Chinese dyads are listed in the table below. All the factors that demonstrated a significant impact on either leader or follower leader-member exchange are included in the table. Those factors that have a different impact on leader and follower leader-member exchange are marked as well as the factors that demonstrate a significant effect only on either leader or follower leader-member exchange (e.g. +F = positive effect on follower leader-member exchange, -L = negative effect on leader leader-member exchange). The word “not” is used for variables that have a negative impact on leader-member exchange quality; the remaining variables demonstrate a positive effect. The first column lists follower characteristics. The second column lists leader characteristics. The third column lists interpersonal and control variables. The perceptual perceived similarity variable and the behavioural measures all demonstrated a positive effect on leader-member exchange in all groups and are not included in the table. Is should be noted that table greatly simplifies the results obtained in the study, as it designates variables that have demonstrated a significant effect on any dimension as having a significant effect on “leader-member exchange quality”. Table 21: Summary of factors that contribute to high-quality LMX Follower characteristics Intercultural dyads Intracultural dyads Interpersonal & Control variables Leader characteristics • • • • • • • Cultural knowledge (-F, +L) Not neuroticism (-F) Extroversion Conscientiousness (+F) Ns L Harmony Not self-enhancement (-L) • • • • • • • Cultural knowledge (+L) Not neuroticism Extroversion (+F) Not conscientiousness (-F) Agreeableness (+ F) Not harmony (-L contr) Self-enhancement (+ F) • • • • • • • • Not demographic differences Personality differences (+F, -L) Not dif. in interpers relatedn (-L) Dif. in individualism (+affect) Dif. in collectivism Many supervised followers (+F) Not interaction intensity (-L) Months of interaction • • • • • • • Cultural knowledge (+F, -L) Not neuroticism (-F) Extroversion Conscientiousness (+ F) Agreeableness (+L) Harmony Not self-enhancement (-L) • • • • • • • Not cultural knowledge (-L) Not neuroticism (+affect) Not extroversion (-F) Ns Ns F Harmony (+ F) Self-enhancement (+F) • • • • • • • • Not demographic differences Personality differences Not dif. in interpers relatedn.(-F) Not dif. in individualism Dif. in collectivism (+F) No. supervised followers(+-F) Interaction intensity Months of interaction (-F, +L) 229 6.6 LMX AND ORGANISATIONAL CITIZENSHIP BEHAVIOUR To recall, a total of 8 hypotheses concerning the relationship between follower LMX quality and its relationship with follower organisational citizenship behaviour measured from a leader perspective have been developed in the present study (see p. 111 for the list of hypotheses). The majority of the hypotheses concern the moderating and mediating effects of various variables on the relationship between LMX and organisational citizenship behaviour. These hypotheses are expected to be relevant both in intercultural Western-Chinese and intracultural Chinese dyads. The hypotheses were tested using hierarchical regression analyses. Two different models for the relationship between LMX and organisational citizenship behaviour were analysed. In the first model, the relationship between overall LMX and organisational citizenship behaviour was examined using a composite measure of LMX. In the second model, all the dimensions of LMX were entered as independent variables. The effect of the moderating variables was only examined in the first model with regard to overall LMX measured with the composite measure. Moderating effects were tested by examining the significance of change in R2 attributable to the interaction terms as well as the significance of the beta weight of the interaction term at the final stage. In addition, in order to enable analyses of mediation in both models, the mediators were regressed on LMX including the majority of the organisational citizenship behaviour antecedents as control variables. As noted earlier, according to Baron and Kenny (1986), the following conditions should be met for a independent variable-mediatordependent variable relationship: the independent variable (LMX) must affect the mediator (justice, perceived organisational support, satisfaction, organisation-based selfesteem) in the first equation; the independent variable (LMX) must affect the dependent variable (OCB) in the second equation; the mediator must affect the dependent variable (OCB) in the third equation; and finally, the effect of the independent variable (LMX) on the dependent variable (OCB) must be less in the third equation than in the second equation (Baron & Kenny, 1986: 1177). In certain cases, LMX influences the hypothesised mediator and the mediator demonstrates a significant effect on organisational citizenship behaviour, but there is at no stage a direct relationship between LMX and organisational citizenship behaviour. This type of relationship does not constitute a variable-mediator-dependent variable relationship according to the definition of Baron and Kenny, but the stance taken in the present study is that such relationships are relevant and that they will hence be reported. In both models, the effect of overall LMX on organisational citizenship behaviour can be examined. In the first model, this is the effect of the composite LMX measure on organisational citizenship behaviour. In the second model, the effect of overall LMX can be established by examining the significance of the incremental variance in organisational citizenship behaviour explained by the LMX dimensions as a group. The advantage of the second model is that it enables the identification of the LMX dimensions with the most significant effect on organisational citizenship behaviour. However, due to the fact that some of the LMX dimensions are closely interrelated, potential multicollinearity problems can confound the results obtained with regard to the different dimensions and the significance of their beta weights. The fact that the 230 perceptual mediating variables also are highly interrelated is likely to increase the potential multicollinearity problem further as well as the inclusion of the interaction terms and their components. As in the LMX regression analyses, as a further aid to determine the relative importance of various antecedents of LMX, the backward deletion method was used at the last step. It should be noted again that the full hierarchical model is the theoretical model, while the results obtained trough backward deletion serve only as additional aids during the interpretation of results. The results obtained from both models will be used to test the hypotheses. A significant effect demonstrated by a hypothesised antecedent of organisational citizenship behaviour in either model (i.e. using either the composite score or the dimensions of LMX) will be regarded as providing at least partial support for the hypothesis. The results pertaining to the relationship between LMX and organisational citizenship behaviour in intercultural Western-Chinese dyads will be presented first (section 6.6.1), continuing with the results obtained for intracultural Chinese dyads (section 6.6.2). Finally, the results obtained in both intercultural and intracultural Chinese dyads are compared (section 6.6.3). 6.6.1 Intercultural dyads The results of regressing organisational citizenship behaviour on follower LMX and hypothesised mediators and moderators in intercultural dyads are presented in this section. After reporting the results pertaining to each specific hypothesis the results are summarised in figure format and discussed. The specific regression results including beta weights and levels of significance are reported in tables in Appendix 5 on p. 372. OCB hypothesis 1 predicted that follower perceptions of job breadth will moderate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was not supported with regard to organisational citizenship behaviour measured from a leader perspective. The interaction term between LMX and follower perceptions of job breadth did not explain significant incremental variance in leader perceptions of organisational citizenship behaviour or demonstrate a significant beta weight in the final equation. However, a moderating effect of definition of job breadth regarding organisational citizenship behaviour measured from a follower perspective was found. The inclusion of the moderator produced significant incremental variance and the interaction term was significant in the final equation. The sign for the beta coefficient was positive, suggesting that the higher the score for definition of job breadth, the stronger the relationship between LMX and organisational citizenship behaviour (cf. Farh et al., 1997). OCB hypothesis 2 predicted that high follower LMX quality will be positively related to follower organisational citizenship behaviour. The results suggest that overall follower 231 LMX and its dimensions are not significantly related to organisational citizenship behaviour measured from a leader’s perspective. However, follower LMX is significantly related to organisational citizenship behaviour measured from a follower perspective when the composite measure is used. OCB hypothesis 3 predicted that follower ren qin will moderate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was not supported, as the interaction term between LMX and ren qin did not explain significant incremental variance in organisational citizenship behaviour (measured either from a leader or follower perspective) or demonstrate a significant beta weight in the final equation. OCB hypothesis 4 predicted that follower reports of organisational citizenship behaviour (i.e. OCB measured from a follower perspective) will be positively related to leader reports of organisational citizenship behaviour. This hypothesis was not supported. OCB hypothesis 5 predicted that follower organisational justice will mediate the relationship between follower LMX and follower organisational citizenship behaviour. Follower LMX had a significant direct effect (and especially the professional respect dimensions) on organisational justice, but neither justice nor LMX or any of its dimensions had a significant effect on organisational citizenship behaviour measured either from a leader or follower perspective OCB hypothesis 6 predicted that follower perceived organisational support will mediate the relationship between LMX and organisational citizenship behaviour. Follower LMX (and especially the contribution dimension) had a significant direct effect on perceived organisational support. Furthermore perceived organisational support emerged as the most significant follower perception influencing organisational citizenship behaviour from a leader perspective (but was less related to organisational citizenship behaviour measured from a follower perspective). One could thus hypothesise that LMX contributes to organisational citizenship behaviour by influencing perceived organisational support, but this does not constitute mediation in a strict sense as LMX is at no stage related to organisational citizenship behaviour. OCB hypothesis 7 predicted that follower organisation-based self-esteem will mediate the relationship between follower LMX and follower organisational citizenship behaviour. LMX did not have a very significant effect on organisation-based selfesteem, and organisation-based self-esteem was not significantly related to organisational citizenship behaviour measured from a leader perspective (but for OCB measured from a follower perspective, organisation-based self-esteem was the most significant factor). OCB hypothesis 8 predicted that follower job satisfaction will mediate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was only very partially supported, as only the loyalty dimension had a significant influence on job satisfaction, which was negatively related to organisational citizenship behaviour measured from a leader perspective. 232 Regarding the control variables, it could be noted that leader agreeableness, follower age, follower neuroticism, follower time in position exerted significant negative influence on organisational citizenship behaviour measured from a leader perspective in intercultural dyads. organisational citizenship behaviour measured from a follower perspective was negatively influenced by follower agreeableness and time in position and positively by follower collectivism. These results are summarised in the figure below. Figure 24: OCB-related results, intercultural dyads Job breadth moderator Follower overall LMX Ren qin moderator Justice LMX dimensions Affect Loyalty Satisfaction Contribution Respect OCB, follower perspective POS _ OCB, leader perspective OBSE All relationships positive with the exception on satisfaction-OCB On the basis of social exchange theory, Wayne et al. (1997) expected that the quality of the exchange that develops between a leader and member will influence the latter's behaviour toward the leader and that leader-member exchange should be positively related to organisational citizenship behaviour. As discussed in Chapter 3, past research on organisational citizenship behaviour has investigated both leader and follower reports of organisational citizenship behaviour, without making a clear distinction between these two perspectives. However, in both the leader and follower version of the organisational citizenship behaviour scale, follower organisational citizenship behaviour is being evaluated. The figure indicates that follower LMX is directly related only to organisational citizenship behaviour measured from a follower perspective. The problem with the use of self-reports is self-serving bias on the part of respondents who wish to appear to be good citizens (Organ, 1988). Follower reports of their own OCBs could hence be seen as less reliable than leader reports. Furthermore, it is noteworthy 233 that leader and follower perceptions of organisational citizenship behaviour are not related. It is interesting to note that follower LMX has a significant direct effect on organisational justice and perceived organisational support, but not on organisationbased self-esteem. These findings hence partly support the findings of extant leadermember exchange research that has normally shown that individuals in high-quality leader-member exchange relations have more positive job attitudes and engage in more positive behaviours than those in lower-quality relationships engage (cf. Graen & UhlBien, 1995). An interesting discovery is also that all the LMX dimensions affect different mediating variables, providing support for the multidimensional conceptualisation of LMX (Liden & Maslyn, 1998). Somewhat surprising is the finding that the contribution dimension does not influence organisational citizenship behaviour, although both concern the followers’ perceptions of their own contribution. The results suggest that LMX quality influences follower job attitudes and job attitudes influence organisational citizenship behaviour. However, this does not constitute mediation due to the insignificant direct effect of LMX quality on organisational citizenship behaviour. Perceived organisational support emerged as the most significant follower perception influencing organisational citizenship behaviour from a leader perspective. This supports the argument made by Wayne et al. (1997) that leadermember exchange could be a predictor of perceived organisational support as leaders often administer discretionary rewards linked with job performance, which previous research has found likely to affect perceived organisational support (Eisenberger et al., 1986). For follower perceptions of organisational citizenship behaviour, organisationbased self-esteem was the most significant influence. Past research indicates that high organisation-based self-esteem individuals are more likely to perform organisational citizenship behaviours than low organisation-based self-esteem individuals (Van Dyne, Vandewalle, Kostova, Latham & Cummings, 2000; as cited in Aryee et al., 2002). A result difficult to explain is the strong negative effect of job satisfaction on leader organisational citizenship behaviour. Do satisfied followers appear to contribute less or are they satisfied due to job roles that do not require performing organisational citizenship behaviours? To recall from Chapter 3, an important issue in organisational citizenship behaviour research is the boundary between in-role and extra-role behaviour and the extent to which what is measured as organisational citizenship behaviour, or extra-role behaviour, in fact is part of the job or so called in-role behaviour (see e.g. Morrison, 1994; Lam et al., 1999). The argument made is that employees’ behaviour is influenced by whether they define a given activity as in-role or extra-role and that this definition could differ from the one of their leaders (e.g. Morrison, 1994). The moderating effect of definition of job breadth regarding organisational citizenship behaviour measured from a follower perspective was not as expected. The sign for the beta coefficient was positive, suggesting that the higher the score for definition of job breadth, the stronger the relationship between LMX and organisational citizenship behaviour (cf. Farh et al., 1997). It was expected that for followers with broad work role definitions, attitudinal factors and LMX quality would be less important in determining organisational citizenship behaviours than for followers with narrow work role definitions. In the 234 former case, a person may feel obliged to “do one’s job” despite negative job attitudes. In the latter case, where the same behaviours are considered as extra-role, these behaviours may not be performed unless they were a way to reciprocate for e.g. fair treatment or a high-quality relationship with the leader. In contrast, the results indicate that the relationship between LMX and organisational citizenship behaviour is stronger for those with broad role definitions. 6.6.2 Intracultural Chinese dyads The results of regressing organisational citizenship behaviour on follower LMX and hypothesised mediators and moderators in intraculturalChinese dyads are presented in this section. After reporting the results pertaining to each specific hypothesis the results are summarised in figure format and discussed. The specific regression results including beta weights and levels of significance are reported in tables in Appendix 6. OCB hypothesis 1 predicted that follower perceptions of job breadth will moderate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was not supported with regard to organisational citizenship behaviour measured either from a leader or follower perspective. The interaction term between LMX and follower perceptions of job breadth did not explain significant incremental variance in organisational citizenship behaviour or demonstrate a significant beta weight in the final equation. OCB hypothesis 2 predicted that high follower LMX quality will be positively related to follower organisational citizenship behaviour. This hypothesis was supported with regard to organisational citizenship behaviour measured from a leader perspective but not supported with regard to organisational citizenship behaviour measured from a follower perspective. The results suggest that overall follower LMX and the loyalty dimension are significantly related to organisational citizenship behaviour measured from a leader’s perspective. OCB hypothesis 3 predicted that follower ren qin will moderate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was not supported, as the interaction term between LMX and ren qin did not explain significant incremental variance in organisational citizenship behaviour (measured either from a leader or follower perspective) or demonstrate a significant beta weight in the final equation. OCB hypothesis 4 predicted that follower reports of organisational citizenship behaviour (i.e. OCB measured from a follower perspective) will be positively related to leader reports of organisational citizenship behaviour. This hypothesis was not supported. OCB hypothesis 5 predicted that follower organisational justice will mediate the relationship between follower LMX and follower organisational citizenship behaviour. Follower LMX had a significant direct effect (and especially the affect and professional 235 respect dimensions) on organisational justice. However, justice did not have a significant effect on organisational citizenship behaviour measured either from a leader or follower perspective (although the correlation with the latter was positive and strong). OCB hypothesis 6 predicted that follower perceived organisational support will mediate the relationship between LMX and organisational citizenship behaviour. Follower LMX as a composite or group had a significant direct effect on perceived organisational support. However, perceived organisational support did not have a significant effect on organisational citizenship behaviour measured either from a leader or follower perspective (although the correlation with the latter was positive and strong). OCB hypothesis 7 predicted that follower organisation-based self-esteem will mediate the relationship between follower LMX and follower organisational citizenship behaviour. Follower LMX (and especially the contribution dimension) had a significant effect on organisation-based self-esteem, but organisation-based self-esteem was not significantly related to organisational citizenship behaviour measured either from a leader or follower perspective (although the correlation with the latter was positive and strong). OCB hypothesis 8 predicted that follower job satisfaction will mediate the relationship between follower LMX and follower organisational citizenship behaviour. This hypothesis was not supported, as LMX did not have a significant influence on satisfaction (with the exception of the contribution dimension), and job satisfaction was not related to organisational citizenship behaviour measured either from a leader or follower perspective. Regarding the antecedents of organisational citizenship behaviour in Chinese dyads in general, it could be noted that leader neuroticism, follower position and follower individualism exerted a significant negative influence on organisational citizenship behaviour measured from a leader perspective whereas follower age had a positive effect. For follower organisational citizenship behaviour, follower conscientiousness and age had a positive effect. These results are summarised in the figure below. All the marked relationships are positive. 236 Figure 25: OCB-related results, intracultural Chinese dyads Job breadth moderator Follower overall LMX Ren qin moderator Justice LMX dimensions Affect POS Loyalty Satisfaction OCB, follower perspective OCB, leader perspective Contribution OBSE Respect The figure indicates that there is a strong relationship between leader-member exchange quality and organisational citizenship behaviour as well as between leader-member exchange quality and job attitudes in Chinese dyads. This provides support for the argument made by Hui et al. (1999) that as interpersonal relationships and guanxi play an important role in China, leader-member exchange, which is an interpersonal variable, should have a strong effect on the employees’ willingness to participate in organisational citizenship behaviours. The argument made by Aryee et al. (2002) that the relational leader-member exchange approach to leaderships is especially well suited for the relationship-oriented Eastern cultures is also supported. In addition, the significant effect of the loyalty dimension is in line with the suggestion made by Dienesch and Liden (1986) that as the loyalty dimension is primarily concerned with the degree to which the dyad members protect each other relative to those outside the relationship, performing organisational citizenship behaviours could constitute a means of showing loyalty. The finding that LMX is linked to organisational justice supports the study conducted by Mansour-Cole and Scott (1998) showing that followers in high-quality leadermember exchange relationships tend to have higher perceptions of procedural justice. Furthermore, Lee (2001) found support for a positive relationship between leadermember exchange and procedural and distributive justice. In addition, the strong relationship between LMX and organisation-based self-esteem supports the previously not empirically tested hypothesis that leader-member exchange influences organisationbased self-esteem, as it is conceivable that an employee who has a high-quality relationship with his or leader including mutual perceptions of affect, loyalty, contribution and professional respect should perceive themselves as “important, 237 meaningful, effectual, and worthwhile within their employing organisation” (Pierce et al., 1989, p. 625). It is noteworthy that none of the mediating variables demonstrated a significant effect on organisational citizenship behaviour measured either from a leader or follower perspective. This accentuates the importance of LMX quality even further. (However, when the mediating variables where entered into the equation, the effect of LMX on organisational citizenship behaviour was reduced). Furthermore, it is interesting to see that, as in intercultural dyads, leader and follower perceptions of organisational citizenship behaviour are not related. Furthermore, again, all the LMX dimensions affected different mediating variables, providing support for the multidimensional conceptualisation of LMX (Liden & Maslyn, 1998). 6.6.3 Comparison of intercultural and intracultural dyads The results pertaining to the relationship between follower leader-member exchange and organisational citizenship behaviour indicate that leader-member exchange is a more important determinant of organisational citizenship behaviour in intracultural Chinese than in intercultural dyads. In addition and more specifically, in intracultural Chinese dyads, follower leader-member exchange was significantly related to organisational citizenship behaviour measured from a leader perspective. However, in intercultural dyads follower leader-member exchange is significantly related to organisational citizenship behaviour measured from a follower perspective when the composite measure is used. The finding that leader-member exchange is a more important determinant of organisational citizenship behaviour in intracultural Chinese than in intercultural dyads could hypothetically be explained by differences in rules of reciprocation. In intracultural Chinese dyads, the followers may be able to reciprocate to high levels of loyalty and respect felt for leader in a way that is identified as organisational citizenship behaviour by the Chinese leaders whereas this could be more difficult in the case of Western leaders. Regarding the effect of the different dimensions of leader-member exchange, in intercultural dyads follower perceptions of their own contribution and follower respect for their leader influenced follower perceptions of organisational citizenship behaviour, whereas in intracultural Chinese dyads, follower perceptions of leader loyalty and respect for leader determined leader perceptions of organisational citizenship behaviour. Follower respect for leader was related to organisational justice in both dyad types. What both intracultural Chinese and intercultural dyads have in common is that leadermember exchange quality was found to influence most job attitudes (i.e. the hypothesised mediating variables) including organisational justice, perceived organisational support and organisation-based self-esteem, but excluding job satisfaction. However, in intercultural dyads, leader-member exchange is not related to organisation-based self-esteem as in intracultural Chinese dyads. Furthermore, in neither dyad type is organisational citizenship behaviour measured from a follower perspective related to organisational citizenship behaviour measured from a leader 238 perspective. What differentiates intercultural dyads from Chinese dyads is that job attitudes are much more closely related to organisational citizenship behaviour in intercultural than in Chinese dyads (but this result could partly be confounded by multicollinearity). 239 7 CONCLUSIONS This concluding chapter begins with a summary of the present study (section 7.1). Next, some general conclusions pertaining to the major findings are drawn (section 7.2). Finally, some implications of the findings are discussed, including theoretical and practical implications as well as limitations and suggestions for further research (section 7.3). 7.1 SUMMARY The aim of the present study is to increase our understanding of the influences on leader-follower relationships in an intercultural Chinese context and to increase our knowledge of the work-related implications of the quality of these relationships. An attempt is made to answer the following two research questions: 1) Which personal, interpersonal, and behavioural characteristics influence the quality of leader-follower relationships? and 2) How is the quality of the leader-follower relationship related to the employees’ willingness to co-operate and contribute to their organisation? These questions are examined using leader-member exchange theory (LMX; Graen, Novak, & Sommerkamp, 1982) as a theoretical basis. The leader-follower dyad is in the centre of attention, and as both leader and follower perceptions and characteristics are examined and related to each other, it is suggested that the term individual within dyad corresponds most closely to the level of analysis of the present study. Leader-member exchange quality is conceptualised as a multidimensional construct in accordance with Liden and Maslyn (1998). This multidimensional conceptualisation is combined with the view of leader-member exchange quality as perceptions of the quality of the relationship that reside within the individual independently of the perceptions of the quality of the relationship of the dyadic partner. This entails that leader and follower perceptions are separate constructs that do not require mutuality. However, it is argued that even if the perception of leader-member exchange quality is an individual perception, it has been formed as a result of dyadic interaction and the interplay between leader and follower characteristics. This implies that leader and follower perceptions are likely to influence each other and be mutually reinforcing. It was suggested that the Western LMX framework is applicable in the present intercultural Chinese context, taking into consideration both the previous use of the leader-member exchange construct in China and the possible acculturation taking place in the Western-owned subsidiaries in China. However, extensive validation analyses of the employed measures have been necessary. Contextual considerations have together with the leader-member exchange framework influenced the hypothesis formulation and choice of variables to be examined in this study. Twenty hypotheses concerning the antecedents of leader-member exchange quality and their dimensions were developed separately for leaders and for followers. The leader and follower personal characteristics that were included in the hypotheses based on 240 theoretical and contextual considerations include personality traits, values, cultural knowledge and demographic factors. Interpersonal variables that were examined in the present study are differences in personality, values, and demographics as well as perceived similarity. In addition, leader and follower behaviours were included. These are follower performance and fair treatment provided by leader (i.e. interactional justice). Finally, one dyad-level-LMX hypothesis was presented, predicting that the quality of the leader-follower relationship would be higher in intracultural Chinese than in intercultural Western-Chinese dyads. In addition to the LMX-related hypotheses, eight hypotheses concerning the relationship between follower leader-member exchange quality and follower organisational citizenship behaviour were presented. The majority of these hypotheses concern the moderating and mediating effects of various perceptual variables on the relationship between leader-member exchange and organisational citizenship behaviour. The hypothesised moderators were follower ren qin and definition of job breadth. Mediators included in the study were perceived organisational support, organisational justice, job satisfaction and organisation-based self-esteem. In addition, some relevant personal characteristics were included in the analyses. All these hypotheses were expected to be relevant both in intercultural Western-Chinese and intracultural Chinese dyads. Data were collected from employees at 13 companies operating in the Shanghai area. These companies represented a variety of industries from the secondary industry including telecommunications, forestry, construction, engineering, chemicals, food and beverages. Five of these companies were Finnish, four Swedish, two British and one Australian. Two types of questionnaires were used for this study: a leader version and a follower version. The contents of these questionnaires were very similar and identical regarding the items related to personality and values. Both questionnaires were available in English and in Mandarin and contained around 350 questions. The leader questionnaire was distributed to expatriate managers as well as local Chinese managers occupying positions at multiple levels in the organisation. The follower questionnaire was distributed to up to three Chinese subordinates for each leader participating in the study. A total of 318 employees participated in the study, of whom 85 leaders (48 Chinese and 37 Western) and 233 followers (all Chinese). The response rate was 65 percent. 232 matched manager-subordinate dyads (154 completely Chinese and 78 Western-Chinese dyads) were obtained for analysis. Before testing the hypotheses, confirmatory factor analyses were conducted to assess the factor structure and convergent and discriminant validities of the perceptual constructs employed in the study (i.e. leader-member exchange, organisational citizenship behaviour, organisation-based self-esteem, perceived organisational support, inrole performance, perceived similarity and justice). Separate confirmatory factor analyses were conducted for followers and leaders and for the English and Chinese leader measures. In other words, three confirmatory factor analyses were conducted for each central construct: one for the Chinese followers, one for Western leaders and one for Chinese leaders. The small sample size restricted the level of complexity of the analysed models and perfect fitting models were not obtained in most cases, but the confirmatory factor analyses nevertheless enabled an improvement of the measures and an awareness of potential problems associated with their use. In addition, the level of 241 equivalence between the Western and Chinese leader measures was assessed through multiple-sample confirmatory factor analyses. Item-bias analysis was also conducted. In most cases, these results suggested non-equivalence and bias regarding the Chinese and Western leader perceptual measures. As a result, Western and Chinese leader responses are not comparable, and the decision was made to analyse intercultural and intracultural Chinese dyads separately. The hypotheses were tested using hierarchical regression analyses (with the exception of the dyad-level hypothesis). The results obtained confirm and extend a number of findings in the leader-member exchange literature. For instance, the importance of perceived similarity, follower personal characteristics and behavioural measures in determining leader-member exchange were confirmed in the present study. Previous findings pertaining to the outcomes of leader-member exchange were also corroborated, as leader-member exchange quality was found to be related to organisational citizenship behaviour as well as job attitudes that have previously been linked to LMX. The application of the leader-member exchange framework to an intercultural Chinese context enabled an expansion of the framework through an inclusion of new variables not examined in previous leader-member exchange research. Values, for instance, have not been examined in previous leader-member exchange research and leader characteristics have not been examined extensively. Values and leader characteristics as well as cultural knowledge were found to influence leader-member exchange in the present study. However, it should be noted that the relative importance of the different antecedents and outcomes of leader-member exchange differed across dimensions, perspectives (i.e. leader or follower) and dyad type (inter- or intracultural). The results indicate that intercultural and intracultural Chinese dyads have some common features with regard to the antecedents and outcomes of leader-member exchange quality as well a the degree of perceived leader-member exchange quality, but also many specific characteristics that distinguish the dyad types from each other. Furthermore, the analysis of covariance indicated that the level of overall leader-member exchange quality and affect as perceived by followers is higher in intercultural than in intracultural dyads. The major findings are summarised in the next section, where some general conclusions pertaining to the results of the study are drawn. 242 7.2 GENERAL CONCLUSIONS Some general conclusions pertaining to the major findings of the present study are drawn in this section. The results were discussed more in detail in the previous chapter, while the aim of this section is to present some general tendencies detected through the analyses conducted in the study. The following general conclusions can be made based on the findings of the present study: 1. The Chinese followers have higher perceptions of their Western than their Chinese leaders. The finding that leader-member exchange quality is higher in intercultural Western-Chinese dyads than in intracultural Chinese dyads contradicts the proposition made by Tsui et al. (1996) that higher leader-member exchange quality will follow when leaders are of the same race or gender as their followers than in the case of race and gender dissimilarity. Previous research has shown that a person’s appearance and cultural background alone can have an impact on how the person is assessed (e.g. Gilbert et al., 2002). The higher quality of leader-member exchange reported in intercultural dyads could partly have been caused by a general admiration by Chinese followers for Western management and hence positive stereotypes of Western leaders. The Chinese followers who work in the subsidiary may have chosen to work for the Western company in expectation of personally and professionally rewarding opportunities that exceed those offered by Chinese companies (see e.g. Wang, 2001). 2. Very few personal and interpersonal characteristics have the same effect on leadermember exchange quality across different groups (i.e. across leader and follower perspectives and dyad types). The majority of the personal characteristics hence cannot clearly be defined as “good” or “bad”. How favourable these characteristics are depends on the situation and the interacting party. This finding implies that different people have different expectations of the people they interact with and different personality traits are required for different tasks (cf. Neuman, Wagner, & Christiansen, 1999). In other words, what constitutes “appropriate leadership” is likely to be highly perceptual and vary across cultures, situations or tasks (cf. e.g. Jung & Avolio, 1999). It has also been suggested that in contemporary Chinese societies, traditional Confucian values coexist with modern (or Western) values and that it hence is increasingly difficult to define a set of values that is accepted by all (Farh & Cheng, 2000). In a similar vein, Warner (2003) suggests that Chinese employees may be inclined to accept Western norms and practices if these are perceived as “best international practice” (p. 218) whereas they could revert back to more traditional Chinese values and practices in other instances. This is a possible explanation for why consistent effects across groups of personality and values on leader-member exchange were not detected in the present study. Some more specific conclusions pertaining to the divergent effect of personal and interpersonal characteristics across groups are presented below. However, it should be remembered that as the perceptual measures did not demonstrate cross-cultural 243 equivalence, strict comparisons across groups are not possible. The present findings hence only highlight some general tendencies. 3. The effect of certain leader personal characteristics on follower perceptions of leader-member exchange quality is dependent upon whether the leader is Western or Chinese; the same characteristics are not always valued in Western and Chinese leaders. In the present study, leader extroversion had an opposite effect on follower LMX quality in intercultural as compared to intracultural Chinese dyads. In addition, there were a number of leader characteristics that were significant as a Chinese leader trait but not as a Western trait and vice versa. Thomas and Toyne (1995) suggest that follower reactions to a leader representing a different country may be affected by the extent to which the manager’s behaviour matches expectations and stereotypes of and the extent to which the behaviour induces perceptions of similarity. If the stereotype of the successful Western leader is that of an extroverted person, leader extroversion would have a positive influence on leader-member exchange quality in intercultural dyads. However, extroversion may not be a personality trait associated with Chinese leadership, which would lead to a different effect in intracultural Chinese dyads. One leader personal characteristic, however, was viewed favourably as a trait for both Western and Chinese leaders: self-enhancement. Leader neuroticism was also predominately a negative trait, although as a Chinese leader characteristic it had a positive effect on follower perceptions of affect. 4. Western expatriates’ perceptions of their Chinese followers are influenced by different factors than the Chinese leaders’ perceptions. This finding implies that Western and Chinese leaders may have different bases for judging their followers. Some evidence exists that cognitive leader and member prototypes have a cultural component, meaning that the content and complexity of prototypes may differ across cultures (e.g. Ah Chong & Thomas, 1997; Shaw, 1990; Ling et al., 2000). A distinctive difference between intercultural and intracultural Chinese dyads is that follower inrole performance is a stronger determinant of LMX quality for Chinese than for Western leaders. This finding supports the proposition made by Cheng (1995, as cited in Farh & Cheng, 2000) that follower competence is an important determinant of whether the Chinese leader categorises the follower as belonging to the in-group or out-group. In contrast, perceived similarity is more important for Western leaders, indicating that affect-related variables and attraction play a larger role in intercultural than in intracultural Chinese dyads. This interpretation is supported by the finding that factors that influence perceptions of similarity in general, i.e. mainly interpersonal variables, tend to have a larger impact on the perceptions of the Western leaders than on the perceptions of the Chinese leaders. In contrast, the direct effect of follower characteristics is more significant with regard to the perceptions of the Chinese leaders. Furthermore, the confirmatory factor analyses indicated that overall Chinese leader LMX is highly related to the contribution dimension whereas the affect dimension was more important for Western leaders. In sum, Chinese leader LMX quality is highly influenced by follower performance and follower characteristics whereas Western leader LMX quality is more influenced by the level of actual and perceived similarity as well as leader predisposition. Furthermore, in the present study follower cultural knowledge had an opposite 244 effect on leader LMX quality in intercultural as compared to intracultural Chinese dyads. However, both Western and Chinese leaders appear to value follower extroversion, harmony, and low self-enhancement. 5. Differences between leader and follower personal characteristics are not always negative in terms of leader-member exchange quality. E.g. differences in collectivism have a positive effect in all dyad types, personality differences are positive for all but expatriate leader perceptions, and differences in individualism have a positive impact on leader affect in intercultural dyads. However, demographic differences are always negative and differences in Interpersonal relatedness demonstrate either a negative or non-significant effect. The reason for why differences in values and personality do not demonstrate a consistent negative effect could be that leaders might not be expected to possess the same personality traits as followers. Followers may value different personality traits and characteristics in a leader than the ones they possess themselves. In other words, dissimilarity on some variables could be desired. For instance, Tsui et al. (1996) propose that if someone is in a power of authority, as the leader is in relation to the follower in the dyad, the followers would expect the leader to be different from them in the capacity to lead. This seems to be the case especially for Chinese employees as personality differences have a positive effect on both the Chinese leaders’ and followers’ perceptions of their dyadic partner (whereas these differences have a negative effect on the perceptions of the Western leader). Furthermore, diversity between the actors could have a favourable effect if the unique attributes of each follower are necessary for the dyad to function well, whereas compatibility could have a positive effect by facilitating communication between the actors and the motivation to work together (cf. Neuman et al., 1999). 6. Leader-member exchange quality is largely determined by factors that predispose our perceptions of the dyadic partner and not as much by the characteristics of the dyadic partner. A more specific sub-aim of the present study was the examination of the extent to which the quality of the leader-follower relationship is a result of relatively stable personal characteristics that predispose us to approach interpersonal interaction in a specific way in relation to the characteristics of the person we are interacting with and his or her behaviour. The results indicate that follower personal characteristics as a group exert strong influence on follower perceptions of leadermember exchange quality, while they do not have a large impact on leader perceptions of leader-member exchange quality (with the exception of the effect on loyalty and contribution in intracultural Chinese dyads). In other words, follower personal characteristics mainly influence follower perceptions of the leader, and not how the leader perceives the follower. Leader personal characteristics as a group explain significant variance in both leader and follower perceptions of leadermember exchange, but especially pertaining to leader perceptions. It hence seems that personal characteristics to a larger extent influence how we perceive another person than how we are perceived by the other person. 7. The fact that leader characteristics influence follower leader-member exchange quality while follower characteristics do not largely influence leader leader-member exchange quality implies that leader characteristics are more important 245 determinants of leader-member exchange quality than follower characteristics. The significant effect demonstrated by leader characteristics on leader-member exchange quality is in line with the argument that leaders occupy a central role as they are the ones who are expected to make the initial “offer” to develop a high-quality leadermember exchange relationship (Bauer & Green, 1996). The lesser significance of follower characteristics could be due to the fact that the Chinese followers’ behaviours may reflect their role obligations more than their personalities and values, or at least it is possible that personality is not such a strong determinant of behaviour in China as it is in the West (cf. Church & Lonner, 1998). Furthermore, the Chinese followers may not express their personalities and values in a way that conforms to Western norms and the expectations of the Western expatriate leaders, which could reduce the effect of follower personality and values on leader perceptions of LMX quality even further. 8. Leader cultural knowledge influences leader perceptions of their follower but not follower perceptions of their leaders. More specifically, the expatriate leaders’ cultural knowledge and experience has a positive effect on the expatriates’ own perceptions of their Chinese followers but has no effect on how the Chinese followers perceive their expatriate leaders. Cultural knowledge could have a positive impact on leader-follower relations by enabling the expatriate to make accurate (and positive) interpretations of the culturally different follower (cf. Shaw, 1990). A possible explanation for the non-significant effect of expatriate leader cultural knowledge is that Chinese followers may not expect the expatriates to adjust their behaviour to suit the local standards. Instead, they may value characteristics that are perceived as typically Western. Gertsen (1990) goes as far as suggesting that as the expatriates are considered to be representatives of their cultures, “native” behaviour could create confusion and uncertainty among the locals and even convey an untrustworthy image of the expatriate. It is also possible that leaders overestimate their cultural knowledge and abilities to behave according to local standards, in which case cultural knowledge could produce a negative effect (cf. Gertsen, 1990). Chinese leaders’ cultural knowledge had a negative impact on their perceptions of their followers, but no effect on how the followers perceive their leader. It is possible that internationally experienced and trained Chinese leaders are more demanding, and hence likely to rate leader-member exchange quality lower than the leaders who do not possess this cultural knowledge. 9. Follower cultural knowledge has an opposite effect on how the followers perceive the leaders and the leaders perceive the followers. Furthermore, follower cultural knowledge has the opposite effect in intercultural versus intracultural Chinese dyads. More specifically, in intercultural dyads follower cultural knowledge has a negative effect on how the expatriates are perceived but a positive effect on how the expatriates perceive the follower. A possible explanation for the negative impact of follower cultural knowledge is that cultural knowledge could reduce the effect of projected similarity (Adler, 1997). The Chinese followers with less cultural knowledge could overestimate the level of similarity with the Western leader (perceived similarity is closely related to LMX quality), whereas those with more cultural knowledge could estimate the level of similarity more accurately, and hence more negatively. This interpretation was supported by the fact that the negative 246 effect of cultural knowledge on leader-member exchange was mediated by perceived similarity and perceived similarity was negatively influenced by the length of interaction between leader and follower. The positive effect of follower cultural knowledge on the perceptions of the expatriate leader is possibly due to the fact that cultural knowledge could enable the follower to adjust his or her behaviour in accordance with the perceived expectations of the leader (cf. Thomas & Toyne, 1995). Conversely, in intracultural Chinese dyads, follower cultural knowledge has a positive impact on how the Chinese leaders are perceived but a negative impact on how the Chinese leaders view their followers. The positive effect of follower cultural knowledge on follower perceptions of their Chinese leaders could very tentatively be explained by a rectification of the overly positive stereotypification of Western leaders in favour of the Chinese leader. Regarding the negative impact on the Chinese leaders’ perceptions of their followers, it is possible that followers with cultural knowledge have undergone higher levels of acculturation than those with less cultural knowledge. This acculturation, in turn, could reduce adherence to traditional norms and deviation from the role requirements prescribed by the wu lun, which could reduce the leader’s perceptions of leader-member exchange quality if the leader still endorses more traditional Chinese values. Furthermore, Chinese leaders may have high expectations of followers with cultural knowledge, leading to a negative effect in case these expectations are not met. 10. All the perceptions one dyadic partner has of the other dyadic partner are closely related (i.e. leader-member exchange quality, perceived similarity, and interactional justice or inrole performance are linked). The support found for the hypothesised importance of perceived similarity as an antecedent to leader-member exchange quality supports the argument that perceptions of similarity lead an individual to identify with the other dyadic member and produce an affective reaction that has a direct influence on social relationships (Engle & Lord, 1997). The finding that interactional justice is significantly related to follower leader-member exchange provides support for the assumption that one of the requirements for the development of high-quality relationships is that each party must see the exchange as reasonably fair (Graen & Scandura, 1987). The close association between follower inrole performance is also supported by past research (e.g. Wayne & Ferris, 1990) suggesting that the leaders assess the followers’ ability, performance and competence through a series of assignments and eventually develop highquality exchanges with high-ability, competent, and high-performing followers. However, due to the dynamic nature of the relationship where repeated interactions result in the formation of relationships of different types and quality that in turn influence future exchanges (cf. e.g. Uhl-Bien et al., 2000) it is difficult to determine the causal order between the behavioural variables and leader-member exchange. 11. Leader perceptions of leader-member exchange quality and follower perceptions of leader-member exchange quality are interrelated through the behaviour of the other party. As predicted, it seems that positive leader perceptions of leader-member exchange quality will increase the fairness of treatment provided by the leader. This fairness (i.e. interactional justice), in turn, has a positive influence on follower perceptions of leader-member exchange quality. It is noteworthy that this effect was not demonstrated in intercultural dyads, i.e. Western leader perceptions of LMX 247 quality are not related to fair treatment provided by the leader. As Confucianism encourages reciprocation (cf. e.g. Yeung & Tung, 1996), Chinese leaders may feel obliged to reciprocate for the affect, loyalty, contribution and respect they perceive their followers to provide them with in terms of fair treatment whereas the Western leaders do not appear to feel as obliged to reciprocate. In a similar vein, positive follower perceptions of leader-member exchange quality seem to induce better follower performance that in turn leads to higher leader perceptions of leadermember exchange quality. In sum, the results indicate that Chinese employees, working either with Chinese or Western leaders or as leaders, may reciprocate for the affect, loyalty, and respect they perceive their dyadic partners to provide them with through increased performance or fair treatment. 12. Leader-member exchange quality influences most job attitudes including organisational justice, perceived organisational support and organisation-based selfesteem, but excluding job satisfaction. What differentiates intercultural dyads from intracultural Chinese dyads is that job attitudes are much more closely related to organisational citizenship behaviour in intercultural than in intracultural Chinese dyads. 13. Leader-member exchange quality is a more important determinant of organisational citizenship behaviour in intracultural Chinese than in intercultural dyads. In intracultural Chinese dyads, follower leader-member exchange quality was significantly related to organisational citizenship behaviour measured from a leader perspective. In intercultural dyads, follower leader-member exchange quality was related to perceived organisational support, which in turn was related to organisational citizenship behaviour measured from a leader perspective. These findings could hypothetically be explained by differences in rules of reciprocation. As noted e.g. by Tsui and Farh (1997), there is a Chinese tendency of treating people differently depending on one’s relationship to them. This is the basic reason why guanxi is of such importance in China. It is likely that Chinese followers have more extensive guanxi bases with their Chinese than with their Western leaders. The followers may hence feel more obliged to reciprocate to the Chinese leaders as compared to the Western leaders for high levels of affect, loyalty and respect. Additionally, the Western origin of the leader might in itself be sufficient to reduce adherence to traditional rules of reciprocation. Alternatively, it is possible that the Chinese followers are able to reciprocate to their Chinese leaders in a way that is identified as organisational citizenship behaviour by the Chinese leaders. Conversely, it could be more difficult for the Chinese followers to reciprocate appropriately to Western leaders. The finding that in intercultural dyads, perceived organisational support is related to leader perceptions of organisational citizenship behaviour indicates that Chinese followers working with Western leaders could be more prone to reciprocate to support gained from the organisation in general than to support provided just by the leader. However, leader-member exchange quality contributes to these general perceptions of organisational support. In sum, the argument made by Aryee et al. (2002) that the relational leader-member exchange approach to leadership is especially well suited for the relationship-oriented Eastern cultures is supported. The importance of leader-follower relations for the Chinese employees is further accentuated by the finding that leader-member exchange 248 quality is not only related to organisational citizenship behaviour but also to follower performance and fair treatment provided by the leader. In other words, the quality of the leader-follower relationship seems to influence the behaviour of Chinese employees more than the behaviour of Western employees. 14. The relative importance of different antecedents of leader-member exchange quality varies across the different dimensions of leader-member exchange and the different dimensions influence different job attitudes. This finding supports the argument made by Liden and Maslyn (1998) that leader-member exchange relationships may develop and endure in a number of ways and that the different dimensions could be affected by different factors and predict different organisational behaviours and outcomes. 249 7.3 IMPLICATIONS In Chapter 1, some theoretical and empirical gaps pertaining to leader-member exchange research were identified. An attempt to fill some of these gaps was made in the present study by applying the leader-member exchange framework and the multidimensional conceptualisation of the construct to an intercultural Chinese context using an extensive set of variables. To the extent that these attempts were successful, the present study makes a contribution to leader-member exchange research and the field of organisational behaviour in general. The findings of the study also have implications for practice. However, the findings and their implications are tempered by some limitations. Due to these limitations and unfilled gaps, there are many interesting areas for future research to cover. The theoretical and practical implications of the present study will be discussed below, followed by a presentation of some limitations and suggestions for future research. 7.3.1 Theoretical implications This study contributes to leader-member exchange research by applying the LMX construct and framework to a new setting: the intercultural context. The confirmation of extant findings in leader-member exchange research to the present intercultural Chinese context increases the external validity of the leader-member exchange framework. For instance, the importance of perceived similarity, follower personal characteristics and behavioural measures in determining leader-member exchange quality was confirmed in the present study. External validity was also increased regarding the outcomes of leadermember exchange, as the quality of the relationship was found to be related to organisational citizenship behaviour and many job attitudes that have previously been linked to leader-member exchange quality. Additionally, the application of the leadermember exchange framework to an intercultural Chinese context has enabled an expansion of the framework through an inclusion of new variables not examined in previous leader-member exchange research, such as values. The inclusion of a large number of leader characteristics is also new to leader-member exchange research. Conceptualising leader and follower leader-member exchange as separate constructs and including both measures in the same study also contributes to leader-member exchange research. To recall, of the over 100 studies of leader-member exchange to date, the majority have been concerned with leader-member exchange quality measured from a follower perspective and only a few published studies have simultaneously assessed the exchange from both leader and follower perspectives (Minsky, 2002). Furthermore, the results of the confirmatory factor analyses give some further support for the construct validity of the multidimensional measure of LMX (LMX-MDM; Liden & Maslyn 1998) in a non-western context. The use and validation of the leader version of this measure is an additional contribution of the present study, as the multidimensional leader measure has previously rarely been used, and to the best of my knowledge, it has not been used in a Chinese context before. 250 In addition, a significant contribution can be found in the identification of dimensionspecific antecedents and outcomes of LMX quality. Although the multidimensional measure of leader-member exchange has been used in previous studies, only few studies have been found that examine the antecedents and outcomes of the specific dimensions of leader-member exchange (e.g. Liden & Maslyn, 1998; Maslyn & Uhl-Bien, 2001). The findings regarding the influence of personal characteristics on the quality of leaderfollower relations have implications for international human resource management research and areas such as selection, placement and training. Furthermore, the findings of the present study add to the expatriation research through the inclusion of the local employees in the analyses. As mentioned earlier, the expatriation literature has largely focused on the characteristics of the expatriate while the local employees have mostly been unexamined. 7.3.2 Practical implications The finding that leader-follower relations influence follower job attitudes and organisational citizenship behaviours supports the general recommendation that attention in organisations should be paid to fostering high-quality relationships between leaders and followers. The findings of the study induce a number of additional and more specific practical recommendations, which however are tempered by the limitations of the study to be discussed later in this chapter. The results regarding the influence of personal characteristics on the quality of leaderfollower relations have practical implications for international human resource management and areas such as selection, placement and training. As personality traits, which were found to influence the quality of leader-follower relations, are relatively stable characteristics, personality tests may serve as a useful selection tools. These results more specifically suggest that there is utility in selecting non-neurotic individuals, both leaders and followers, as neuroticism is a personality trait that demonstrated a strong negative effect on perceptions of the quality of the leaderfollower relationship. Furthermore, it seems that in the present context, the selection of leaders who demonstrate a high level of self-enhancement and followers who demonstrate a high level of extroversion and harmony but low levels of selfenhancement has a favourable impact on the quality of leader-follower relationships. As leader characteristics influence both leader and follower perceptions (while follower characteristics mainly influence the followers’ own perceptions), special attention should be given to the selection of leaders. However, the results of the present study imply that the selection of individuals possessing specific characteristics is not the only factor of importance when staffing decisions are made in organisation. Important is also how leaders and followers are matched to work together. The findings of the study suggest that leaders and followers with similar demographic characteristics should be matched. However, differences between leader and follower regarding other personal characteristics do not always have a negative impact on the quality of leader-follower relationships. It was expected that 251 similar individuals would like each other more than dissimilar individuals and hence have higher perceptions of each other. While demographic differences between leader and follower demonstrate a negative impact in all cases as expected, personality differences have positive impact on the perceptions of Chinese followers and leaders although it has a negative effect on the perceptions of the Western leader. Differences in collectivism also demonstrated a consistent positive effect. People possessing similar personal characteristics should hence not automatically be matched to work together as the employees may value and expect differences in leader and follower characteristics. It should also be noted that Chinese and Western leaders’ perceptions of their followers are not influenced favourably by the same follower characteristics. In general, it seems that Chinese leaders value performance and contribution whereas Western leaders value similarity. Furthermore, follower cultural knowledge has positive impact on follower perceptions of Western leaders but a negative impact on follower perceptions of Chinese leaders. Followers with cultural experience and knowledge should hence be matched with the expatriate leaders. What makes matching leaders and followers together even more difficult is the finding that Chinese followers value different traits in Western versus Chinese leaders. A high level of extroversion in a Western leader has a positive effect on the followers’ perceptions of the leader while extroversion has a negative effect as a Chinese leader characteristic. In addition, there are a number of leader characteristics that are important as a Chinese leader trait but not as a Western trait and vice versa. A policy of selecting “extroverted leaders” would hence not have a positive impact on follower perceptions; the decision has to be made taking into consideration whether the leader is Western or Chinese. An important finding of the present study is that Chinese followers have higher perceptions of their Western than their Chinese leaders. Cross-cultural differences did not demonstrate the expected negative impact. It is possible that the Chinese employees have sought themselves to the Western multinationals due to a general admiration of Western values and management and that the Chinese employees may hence prefer to work with Western leaders. This preference could be a result of positive stereotypes of Western leaders. Many multinational companies have reduced the number of expatriate managers in recent years in order to reduce costs (cf. e.g. Wang, 2001), but the negative influence of this policy on Chinese follower perceptions should be borne in mind. It could also be useful to identify the expectations of the employees and those employees with a desire to work with Western leaders. The findings of the present study also have ramifications for designing training programs for local and expatriate staff employed in the Western-owned subsidiaries. The fact that cultural knowledge demonstrated a different effect or no effect across dyad types and perspectives indicates that the favourable effect of cross-cultural training for all employees cannot be taken for granted. Especially problematic is the question of follower cultural training as follower cultural knowledge has a certain effect on how the follower perceives the leader while it simultaneously has the opposite effect on how the leader perceives the follower. Furthermore, follower cultural knowledge has the opposite effect in intercultural versus intracultural Chinese dyads. Regarding leader 252 cultural knowledge, it influences leader perceptions of their follower but not follower perceptions of their leaders. The partly contradictory effect of cross-cultural training could maybe be avoided if training was not offered separately for leaders and followers and each cultural group. When both interacting parties receive cross-cultural training separately and try to adapt to the culture of their counterpart, confusion and misunderstanding could be the result. These misunderstandings could derive from behaviour that does not agree with expectations and stereotypes or clumsiness in attempts to trying to adopt to the other culture. Such misunderstandings could maybe be avoided through intercultural training and possibilities to clarify expectations provided jointly for both leaders and followers representing different cultural groups. In sum, due to the different effect of personal and interpersonal antecedents across groups, it is difficult to achieve the “perfect match” between leader and follower characteristics that simultaneously contribute to positive perceptions of leader-member exchange for both leader and followers in intercultural as well as intracultural Chinese dyads. However, the ability of organisations to enhance the quality of leader-follower relations by selecting and matching people with suitable characteristics may provide an effective means for organisations to increase positive job attitudes and work-related outcomes. 7.3.3 Limitations The present study has some limitations that lessen the validity of the findings and their implications. Some of these limitations pertain to scope (i.e. what was included in the study and what was not) and some of these are due to deficiencies with regard to the data and the procedures adopted during analysis. Although the aim has been to present these limitations throughout the thesis, some of the major limitations will be summarised below. A very general limitation of the present study is cultural bias. As the cultural background of the researcher influences the choice of what should be studied in a target culture (cf. Price-Williams, 2002), the hypothesis formulation and study design in the present study is culturally biased. In other words, my Western cultural background has influenced the individualistic nature of this study expressed as a focus on individual characteristics. However, as Billings (2001, p. 51) points out “the various paths to knowledge are complementary, not oppositional”, and my approach provides one of many possible complementary perspectives to view leader-follower relations. A major limitation of the study is the small sample size in relation to the number of variables examined. What reduced the sample size even further was the decision to analyse intercultural and intracultural dyads separately. Around 80 intercultural and 150 intracultural does not enable the inclusion of all hypothesised variables in one model without reducing the power to detect statistically significant relationships. It is hence possible that some of the insignificant relationships are due to Type II error, and that additional significant relationships would have been found with a greater sample size. The large number of variables that enables the assessment of the relative importance of 253 different variables is hence both the strength and a weakness of the present study. Furthermore, despite the large number of included variables, unmeasured factors may also have been relevant. The inclusion of a large number of companies representing different countries and industries creates the potential problem that differences and relationships detected between the studied factors could be due to country, industry and company level influences and not the individual-level influences that are in focus in this study. Naturally, a more ideal case would have been to have a large number of participants from each company as this would have enabled comparisons across companies and a more thorough analysis of potential confounding variables. However, in practice it is very difficult to study many expatriates in one subsidiary as Western multinationals are increasingly decreasing the number of expatriates, and most subsidiaries employ only a handful expatriates. However, as noted earlier in Chapter 4, alarmingly high differences between companies could not be detected. Furthermore, the fact that there are certain company-level differences does not necessarily undermine the importance of the individual level influences that are arguably important in this study. It could be that certain personal characteristic and job attitudes prevail in certain countries, industries and companies if these industries and companies attract people with particular predisposition and attitudes. In this case, it is hoped that the variables included in the study capture these individual differences that could be reflected as company-level differences. The sample is limited to subsidiaries operating in the Shanghai area. A question arises as to whether the results of the present study are applicable to other contexts. Although the Shanghai sample is not expected to be representative of the entire Chinese population and although the Finnish, Swedish, British and Australian expatriates may not represent all Western expatriates, it is expected that some of the general conclusions of this study are generalisable to other contexts. This argument is supported to the extent that the present study partly conceptually replicates previous studies and to the extent that the findings confirm the results obtained in extant research. There is hence some evidence to support the finding that personal, interpersonal and behavioural antecedents influence LMX quality and that LMX quality is related to organisational citizenship behaviours in a US setting (where the theory mainly has been developed and tested), China (where the framework also has been used) as well as in the interaction between the East and West (the present study). However, it is not claimed that all the detected relationships between individual variables are generalisable to other contexts, especially as an important finding of the study is that the importance of specific variables is highly dependent on the situation or the interacting individuals. Another reason for caution in interpreting the results of the present study is due to the self-report nature of the majority of the measures. The self-report nature of the measures could potentially lead to the provision of socially desirable answers. With self-report measures, one cannot entirely rule out the possibility that common method bias could have augmented the relationships between constructs. This concerns especially the perceptual measures. The confirmatory factor analyses demonstrated some overlapping between the perceptual constructs, although the multiple factor 254 models demonstrated better fit than the one-factor models, indicating that no pervasive method factor fully accounted for observed causal effects. Finally, as the present study relies on cross-sectional data, causal conclusions and especially attempts to determine the causal order of interactional justice, perceived similarity, and follower leader-member exchange as well as between follower performance, perceived similarity, and leader leader-member exchange are highly tentative. 7.3.4 Suggestions for further research The findings and limitations of the present study have implications for future research. As noted earlier, leader-member exchange research up to date has largely focused on the follower. Leader-member exchange has predominately been measured from a follower perspective, mainly follower characteristics have been included as antecedents of LMX quality, and mainly follower-related outcomes of LMX have been examined. The present study differs from the majority of extant leader-member exchange studies to the extent that it measures leader-member exchange quality from both a leader and a follower perspective and to the extent that it includes a large number of leader characteristics as antecedents. However, what has not been examined in the present study or previous research is how leader-member exchange quality influences leaderrelated outcomes. The focus in the present study is on follower organisational citizenship behaviour, which is a follower-related outcome although it is measured from a leader perspective. Interesting results may accrue from examining how leader-member exchange quality influences leader perceptions and work- related behaviour and the impact on organisation-level outcomes. Future research pursing this line of inquiry in the intercultural context could for instance investigate the question whether leadermember exchange quality is related to expatriate adjustment and performance in overseas assignments. (The results obtained by Kraimer, Wayne and Jaworski [2001] indicate that the quality of the LMX relationships expatriates have with their leaders influence expatriate task and contextual performance [rated by leader] but not adjustment. However, this study did not examine the influence of the relationships the expatriates have with their followers). As research in this area develops, it may be useful to refine the employed constructs and measures further. Contemporary leader-member exchange measures including the measures used in the present study mainly capture one of the dyadic partner’s perceptions of the quality of the relationship. Actual exchange is hence not measured. Future leader-member exchange research might benefit from the development of a measure with a more dyadic nature and which is closer to measuring actual exchange taking place between the leader and the follower instead of individual perceptions. The recent attempt by Paglis and Green (2002) in this regard should be noted. The development off cross-culturally equivalent measures is also warranted. The partial overlapping of the LMX, perceived similarity, interactional justice, and inrole performance constructs found in the confirmatory factor analyses indicate that further 255 construct development and measurement refinement with regard to these perceptual measures would be appropriate. Additionally, it is apparent that more work needs to be done on determining the causal order of interactional justice, perceived similarity, and follower leader-member exchange as well as between follower performance, perceived similarity, and leader leader-member exchange. Longitudinal research is thus needed. Extant leader-member exchange research has also been criticised for being rather unclear regarding the level of analysis (cf. Schriesheim et al., 1999). Some researchers have asserted that leader-member exchange is clearly a within-groups leadership model (cf. Schriesheim et al., 1999), meaning that differences must occur within groups, whereas the individualised approach adopted in the present study states that differences can occur, depending on the individuals (cf. Dansereau et al., 1995). To show that the individualised approach is correct, one should demonstrate variation both between and within groups (c.f. Dansereau et al., 1995). Within- and between-group analyses (WABA; Dansereau et al., 1986) should be conducted to gain further information about the exact level of analysis at which the hypothesised relationships occur (cf. Dansereau, 1995). Future research might also address the salience and relative influence of other relevant LMX-related antecedents and outcomes, such as contextual factors, which have not been examined in an intercultural context or in the present study. In the Chinese context, it would also be of interest to examine the mechanisms by which guanxi influences leader-member exchange. The dearth of studies examining leader-related outcomes of LMX quality was already mentioned. Furthermore, the impact of leadermember exchange quality on more objective indicators of performance and organisational outcomes needs investigation. Additionally, testing LMX-related hypotheses in other cultural contexts would be of interest. The moderating effect of values could also be examined further. The finding that the perceptions of leader-member exchange quality are higher in intercultural than in intracultural Chinese dyads also has implications for further research. In the earlier discussion, it was hypothesised that the higher quality of leadermember exchange reported in intercultural dyads could have been partly caused by a general admiration by Chinese followers for Western management and hence positive stereotypes of Western leaders. Previous research has shown that a person’s appearance and cultural background alone can have an impact on how the person is assessed (e.g. Gilbert et al., 2002). Future research could benefit from examining the influence of positive stereotypes and investigating the consequences of positive stereotypes held toward Western managers. An additional related issue for future research concerns the effect of expatriate adaptation; if the Chinese followers prefer to work with Western leaders, to what extent are there needs for the Western expatriates to adapt their behaviour to the Chinese context? In the earlier discussion, it was also suggested that the Chinese followers who work in the Western-owned subsidiaries might have chosen their place to work as a result of a general appreciation for Western values and management as well as endorsement of Western values. The motives of the Chinese employees to seek themselves to the Western companies could be explored further. More specifically, it seems that our 256 understanding of the influences and outcomes of the quality of leader-follower relations would be increased through an examination of the expectations both Chinese and Western respondents have of their dyadic partner. The importance of the examination of expectations is supported by recent suggestions that increased work diversity is likely to increase the diversity of individual preferences toward leadership (Dunegan, 2003). As leader expectations and categorisation of employees could produce a “Pygmalion effect” in which the supervisors’ expectations influence the quality of the exchange relationship with the employee (e.g. Feldman, 1986), the examination of leader expectations seems especially relevant. As expectations seem to play a major role before or in the beginning of the relationship, it seems advisable in the future to examine newly formed dyads and adopti a longitudinal perspective, as in the study conducted by Liden et al. (1993). Furthermore, recent findings indicate that satisfaction with a leader may not be based on leader behaviour per se but the extent to which the actions of the leader fit with the follower’s image of how the leader should act (Richmond, Bissel & Beach, 1998; as cited in Dunegan, 2003). The linkage between LMX and the level of image compatibility between the ideal and actual leader in an intercultural context could hence be explored further. The fact that cultural knowledge demonstrated a very different effect across dyad types and perspectives indicates that further investigation concerning the effect of crosscultural training and different types of cross-cultural training should be undertaken. So far, cross-cultural training has mainly been studied from a one-sided point of view, focusing either on the observer’s own culture or the foreign culture, without considering the intercultural aspects or the interdependency between cultures (Thomas, 2002). 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Doctoral dissertation, Chinese University of Hong Kong, Department of Psychology 275 INDEX OF DEFINITIONS AND KEYWORDS A D acculturation ......................................49, 52 definition..............................................49 modes...................................................50 discrimination, perceived.........................78 B emic..........................................................16 etic............................................................16 derived .................................................17 imposed................................................17 expatriation ..............................................42 adaptation.............................................79 expectations .............................................41 behavioural influences .............................35 bias construct bias .....................................126 item bias.............................................126 method bias........................................126 nonuniform bias .................................127 E G C guanxi.................................................47, 84 cognitive processing categorisation.......................................77 specification.........................................77 cognitive schemata...................................76 cognitive structures..................................41 collectivism..............................................72 Confucianism...........................................44 construct validity ...................................122 contextual influences ...............................36 cross-cultural bias ..................................126 cross-cultural equivalence .....................126 cross-cultural studies, definition..............14 cross-cultural training ..............................81 cultural group identity..............................77 cultural knowledge...................................76 culture concept.................................................14 convergence .........................................51 crossvergence.......................................51 definition..............................................14 differences............................................40 divergence............................................51 individual-level ....................................15 I impression management ..........................79 individualism ...........................................72 inrole performance...................................88 intercultural competence..........................43 intercultural studies, definition ................14 interpersonal influences ...........................34 interpersonal relatedness..........................69 intracultural studies, definition ................14 J job satisfaction .......................................108 justice .......................................................89 L leader- member exchange approach ........21 leader-member exchange definition, Scandura et al., 1996 ..........23 development.........................................30 276 dimensions Graen & Uhl-Bien, 1995 ..24 dimensions, Liden & Maslyn, 1998 ....25 measures ........................................24, 27 outcomes..............................................37 perspective...........................................27 working definition ...............................28 leadership approach average leadership style.......................20 dyadic ..................................................20 individual difference............................20 individualised leadership .....................21 vertical dyad linkage ...........................21 level of analysis .......................................53 prosocial organisational behaviour..........98 Pygmalion effect......................................33 R reciprocation ...........................................45 relational demography .............................83 relational skills.........................................42 role obligations........................................44 role theory................................................25 S model fit, CFA.......................................125 monocultural studies, definition ..............14 multidimensionality composite view..................................131 factor view .........................................131 Schwartz ..................................................71 similarity actual....................................................83 perceived..............................................86 projected ............................................176 similarity-attraction paradigm .................82 social exchange theory.............................25 stereotypifications....................................42 O U organisational citizenship behaviour antecedents ........................................105 definition .......................................12, 97 dimensions...........................................98 OCBI/OCBO .......................................99 organisational commitment .....................98 organisational justice .............................106 organisation-based self-esteem..............107 universal concepts....................................17 M P perceived job breadth ............................100 perceived organisational support...........107 personal influences ..................................31 personality Chinese Personality Assessment Inventory (CPAI).............................60 definition .............................................57 five-factor model (FFM) .....................57 V values collectivist............................................72 definition..............................................41 definition, Schwartz.............................71 Hofstede...............................................40 individualist .........................................72 Schwartz value theory .........................71 self-enhancement .................................74 W wu lun ................................................44, 48 277 APPENDICES APPENDIX 1: QUESTIONNAIRES a) Follower questionnaire Employee _______ July, 2001 WORK RELATIONS IN WESTERN SUBSIDIARIES IN CHINA Thank you for taking part in the study on work relations in Western subsidiaries in China that your company has agreed to participate in. The study is conducted at the Swedish School of Economics and Business Administration in Helsinki, Finland. This questionnaire is designed to obtain information about how personality, culture and work attitudes influence the quality of work relationships. Please remember when answering questions that may seem personal that all information that you provide will be strictly confidential and used for academic research purposes only. No individual responses will be distributed to company representatives and they will not be identifiable in the final report. The questionnaire comprises six sections. In the beginning of each section, guidelines regarding how to answer the questions will be given. The completion of the questionnaire takes approximately 60 minutes. Please answer all the questions and seal the completed questionnaire in the envelopes provided to you. Please send the questionnaires to: Annika Vatanen Swedish School of Economics and Business Administration Department of Management and Organization P.O. Box 479, 00101 Helsinki, Finland Fax: +358 9 4313 3275, Phone: +358 9 4313 3311 Mobile: +358 40 8343 572 E-mail: [email protected] Please contact Annika Vatanen if you have any questions about the survey. Thank you very much for your help and co-operation! 278 Section A In this section, we would like you to provide the information by filling in the blanks. 1. Your name: __________________________________ 2. Your company: __________________________________ 3. Your year of birth: _____________________ 4. Your gender: [ ] Male [ ] Female 5. Your country of birth: _________________________________ 6. Your mother tongue: _________________________________ 7. Your language skills: [ ] English [ ] Chinese (Mandarin) [ ] company’s official language, which? ________________ 8. Your education: [ [ [ [ [ [ 9. Have you received any education abroad? [ ] no 10. Your current assignment in the organisation (subsidiary): ] ] ] ] ] ] less than high school finished high school finished college finished Bachelor’s degree finished Master’s degree finished Doctoral degree [ ] yes, where? _________________ [ ] lower management [ ] technical or other expert [ ] administrative [other, what? _________________________ 11. How long have you worked in your present position? 12. How long have you worked at this company? ______year(s) and _____month(s). ______year(s) and _____month(s). Have you received any cross-cultural training to prepare you for your present multicultural work environment? [ ] no [ ] yes, of what type: [ ] cultural orientation (information about culture and values in company home country) [ ] training in intercultural encoun [ ] language training How many hours of cross-cultural training have you received in total? ______ hours. Have you ever worked in another country? [ ] no [ ] yes, for how long in total? __year(s) and _____month(s). Have you worked with a supervisor from another cultural background before? [ ] no [ ] yes, for how long in total? ___year(s) and _____month(s). 279 Section B In this section we are interested in your relationship with your supervisor. Please note that your supervisor will not receive this information! Please write down your direct supervisor's name here (in Western characters please!): Supervisor name : _____________________________________________ (if name is already provided, please evaluate this supervisor) Your name: _____________________________________________ B1 This section contains 23 statements. Read each statement carefully. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Fill in only one response for each statement. Please respond to all of the statements! I like my supervisor very much as a person. Please circle Strongly disagree….Strongly agree 1 2 3 4 5 My supervisor is the kind of person one would like to have as a friend. 1 2 3 4 5 My supervisor is a lot of fun to work with. 1 2 3 4 5 My supervisor defends my work actions to a superior, even without complete knowledge of the issue in question. 1 2 3 4 5 My supervisor would come to my defence if I were “attacked” by others. 1 2 3 4 5 My supervisor would defend me to others in the organisation if I made a serious mistake. 1 2 3 4 5 I do work for my supervisor that goes beyond what is specified in my job description. 1 2 3 4 5 I am willing to apply extra efforts, beyond those normally required, to meet my supervisor’s work goals. 1 2 3 4 5 I do not mind working my hardest for my supervisor. 1 2 3 4 5 I am impressed with my supervisor’s knowledge of his/her job. 1 2 3 4 5 I respect my supervisor’s knowledge and competence on the job. 1 2 3 4 5 I admire my supervisor’s professional skills. 1 2 3 4 5 My supervisor and I are similar in terms of outlook, perspective, and 280 values. 1 2 3 4 5 My supervisor and I see things in much the same way. 1 2 3 4 5 My supervisor and I are alike in a number of areas. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 My supervisor recognises my potential very well. 1 1 2 2 3 3 4 4 5 5 It is very likely that my supervisor would use his/her power to help me solve problems in my work. 1 2 3 4 5 It is very likely that my supervisor would "bail me out" at his/her expense. 1 2 3 4 5 I have enough confidence in my supervisor that I would defend and justify his/her decision if he/she were not present to do so. 1 2 3 4 5 I would characterise my working relationship with my supervisor as highly effective. 1 2 3 4 5 All in all, I am satisfied with my relationship with my supervisor. I know where I stand with my direct supervisor...I know how satisfied my supervisor is with what I do. My supervisor understands my job problems and needs very well. B2 Here we would like you to do two things: 1) Evaluate yourself for the past three to six months on each of the following items that reflects a different aspect of your performance. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree 2) Also, for those items marked with a Y N in the right column please circle: “Y” for items that describe behaviours that you see as an expected part of your job, and “N” for items describing behaviours that you see as somewhat above and beyond what is expected for your job. Please circle Strongly disagree… Strongly agree Yes No I always complete work assigned by the company. 1 2 3 4 5 I performed my required job well. 1 2 3 4 5 I always complete the duties specified in my job description. 1 2 3 4 5 I fulfil all formal job responsibilities 1 2 3 4 5 281 I perform specified job duties. 1 2 3 4 5 I never neglect aspects of the job that I am obligated to perform. 1 2 3 4 5 I meet all the formal job requirements. 1 2 3 4 5 I help orient new subordinates even though it is not required as part of my job. 1 2 3 4 5 1 2 3 4 5 Y N I help others with heavy workloads. 1 1 2 2 3 3 4 4 5 5 Y Y N N I help fill in for others who are sick or absent 1 2 3 4 5 Y N I am one of my supervisor’s most conscientious subordinates. 1 2 3 4 5 I believe in giving an honest day's work for an honest day's pay. 1 2 3 4 5 I never take long lunches or breaks. 1 2 3 4 5 I take fewer breaks at work than my colleagues. 1 2 3 4 5 I am willing to work on a job/project until it is completed, even if it means coming in earlier or staying later than normal. Y N 1 2 3 4 5 I consume a lot of time complaining about trivial matters. 1 2 3 4 5 I always find fault with what the company is doing. 1 2 3 4 5 I am the classic "squeaky wheel" that always needs greasing. 1 2 3 4 5 I tend to make problems bigger than they are. 1 2 3 4 5 I always focus on what's wrong with my situation, rather than the opposite. 1 2 3 4 5 I “keep up” with developments in the department/company. 1 2 3 4 5 Y N I attend training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.) 1 2 3 4 5 Y N I actively participate in department/company meetings. 1 2 3 4 5 Y N I provide constructive suggestions regarding changes that might be made in my department or the company. 1 2 3 4 5 Y N I am willing to risk disapproval in order to express my beliefs about what’s best for the department/company. 1 2 3 4 5 Y N I consider the impact of my actions on others. 1 2 3 4 5 I try to avoid creating problems for co-workers. 1 2 3 4 5 I return phone calls and responds to other messages and requests for information promptly. 1 2 3 4 5 Y N I am always ready to help or to lend a helping hand to those around me. I willingly give of my time to help others who have work-related problems. 282 I discuss with other workers before initiating actions that might affect them. 1 2 3 4 5 I take steps to try to prevent problems with co-workers. 1 2 3 4 5 I respect other people’s rights to common/ shared resources (including EDP and duplicating equipment, tools, machinery, materials, clerical help, etc.) 1 2 3 4 5 Please also answer the following questions by filling in the blanks How long have you been working with this supervisor? _____year(s) and _____month(s). How many times each week do you engage in face-to-face or telephone interaction with your supervisor? ____________ times. How many hours? ___________ hours. Can you speak the mother tongue of your supervisor? [ ] no [ ] yes Can your supervisor speak your mother tongue? [ ] no [ ] yes Section C This section contains 39 statements. Read each statement carefully. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Fill in only response for each statement. Please respond to all of the statements! Please circle Strongly disagree…….Strongly agree This organisation has faith in me. I count in this organisation. I am trusted in this organisation. I am a valuable part of this organisation. I am an important part of this organisation. I am co-operative in this organisation. I am taken seriously in this organisation. I am helpful in this organisation. I am efficient around here. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 283 I make a difference around here. 1 2 3 4 5 1 2 3 4 5 This organisation’s management shows very little concern for me. 1 2 3 4 5 This organisation’s management cares about my general satisfaction at work. 1 2 3 4 5 This organisation’s management really cares about my wellbeing. 1 2 3 4 5 This organisation’s management strongly considers my goals and values. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 All things considered, I am satisfied with my current job. This organisation’s management cares about my opinions. Even if I did the best job possible, this organisation’s management would fail to notice. This organisation’s management is willing to extend itself in order to help me perform my job to the best of my ability. Help is available from this organisation’s management when I have a problem. This organization has developed procedures designed to provide opportunities to appeal or challenge the decisions. 1 2 3 4 5 This organization has developed procedures designed to generate 1 standards so that decisions could be made with consistency. 2 3 4 5 This organization has developed procedures designed to hear the concerns of all individuals or groups affected by the decisions. 1 2 3 4 5 This organization has developed procedures designed to provide 1 useful feedback regarding the decision and its implementation. 2 3 4 5 This organization has developed procedures designed to allow for requests for clarification or additional information needed by those 1 affected by the decision. 2 3 4 5 My supervisor considers my viewpoint. 1 2 3 4 5 My supervisor shows concern for my rights as an employee. 1 2 3 4 5 My supervisor takes steps to deal with me in a truthful manner. 1 2 3 4 5 My supervisor is able to suppress personal bias. 1 2 3 4 5 My supervisor provides me with timely feedback about the decision 1 and its implications. 2 3 4 5 My supervisor treats me with kindness and consideration. 1 2 3 4 5 My supervisor provides fair interpersonal treatment 1 2 3 4 5 Considering the responsibilities that I have, I feel that I am fairly 1 2 3 4 5 284 rewarded. In view of the amount of experience that I have, I feel that I am 1 fairly rewarded. 2 3 4 5 For the amount of effort that I put forth, I feel that I am fairly 1 rewarded. 2 3 4 5 For work that I have done well, I feel that I am fairly rewarded. 1 2 3 4 5 For the stresses and strains of my job, I feel that I am fairly 1 rewarded. 2 3 4 5 1 When I disagree with the results of my performance appraisal, I 1 have channels to appeal. 2 2 3 3 4 4 5 5 The performance appraisal system of this organization is highly 1 transparent. 2 3 4 5 This organization has a fair performance appraisal system. Section D 2 This section contains 60 statements . Read each statement carefully. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. These statements may appear personal, but please answer all of them and remember that they will be used for academic research only. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Fill in only response for each statement. Please respond to all of the statements! Please circle Strongly disagree ….Strongly agree I am not a worrier. I like to have a lot of people around me. I don't like to waste my time daydreaming. I try to be courteous to everyone I meet. I keep my belongings clean and neat. I often feel inferior to others. 2 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 "Reproduced by special permission of the Publisher, Psychological Assessment Resources, Inc., 16204 North Florida Avenue, Lutz, Florida 33549, from the NEO Five Factor Inventory, by Paul Costa, and Robert McCrae, Copyright 1978, 1985, 1989 by PAR, Inc. Further reproduction is prohibited without permission of PAR, Inc." 285 I laugh easily. Once I find the right way to do something, I stick to it. I often get into arguments with my family and co-workers. I'm pretty good about pacing myself so as to get things done on time. When I’m under a great deal of stress, sometimes I feel like I’m going to pieces. I don't consider myself especially “light-hearted.” I am intrigued by the patterns I find in art and nature. Some people think I’m selfish and egotistical. I am not a very methodical person. I rarely feel lonely or blue. I really enjoy talking to people. I believe letting students hear controversial speakers can only confuse and mislead them. I would rather cooperate with others than compete with them. I try to perform all the tasks assigned to me conscientiously. I often feel tense and jittery. I like to be where the action is. Poetry has little or no effect on me. I tend to be cynical and skeptical of others' intentions. I have a clear set of goals and work toward them in an orderly fashion. Sometimes I feel completely worthless. I usually prefer to do things alone. I often try new and foreign foods. I believe that most people will take advantage of you if you let them. I waste a lot of time before settling down to work. I rarely feel fearful or anxious. I often feel as if I'm bursting with energy. I seldom notice the moods or feelings that different environments produce. Most people I know like me. I work hard to accomplish my goals. I often get angry at the way people treat me. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 286 I am a cheerful, high-spirited person. I believe we should look to our religious authorities for decisions on moral issues. Some people think of me as cold and calculating. When I make a commitment, I can always be counted on to follow through. Too often, when things go wrong, I get discouraged and feel like giving up. I am not a cheerful optimist. Sometimes when I am reading poetry or looking at a work of art, I feel a chill or wave of excitement. I'm hard-headed and tough-minded in my attitudes. Sometimes I'm not as dependable or reliable as I should be. I am seldom sad or depressed. My life is fast-paced. I have little interest in speculating on the nature of the universe or the human condition. I generally try to be thoughtful and considerate. I am a productive person who always gets the job done. I often feel helpless and want someone else to solve my problems. I am a very active person. I have a lot of intellectual curiosity. If I don't like people, I let them know it. I never seem to be able to get organized. At times I have been so ashamed I just wanted to hide. I would rather go my own way than be a leader of others. I often enjoy playing with theories or abstract ideas. If necessary, I am willing to manipulate people to get what I want. I strive for excellence in everything I do. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 287 Section E In this section you are to ask yourself: "What values are important to ME as guiding principles in MY life, and what values are less important to me?" There are two lists of values on the following pages. These values come from different cultures. In the parentheses following each value is an explanation that may help you to understand its meaning. Your task is to rate how important each value is for you as a guiding principle in your life. Use the rating scale below: 0--means the value is not at all important, it is not relevant as a guiding principle for you. 3--means the value is important. 6--means the value is very important. The higher the number (0, 1, 2, 3, 4, 5, 6), the more important the value is as a guiding principle in YOUR life. -1 is for rating any values opposed to the principles that guide you. 7 is for rating a value of supreme importance as a guiding principle in your life; ordinarily there are no more than two such values. In the space before each value, write the number (-1,0,1,2,3,4,5,6,7) that indicates the importance of that value for you, personally. Try to distinguish as much as possible between the values by using all the numbers. You will, of course, need to use numbers more than once. AS A GUIDING PRINCIPLE IN MY LIFE, this value is: opposed to my values -1 not important 0 1 2 important 3 4 5 very important 6 of supreme importance 7 Before you begin, read the values in List I, choose the one that is most important to you and rate its importance. Next, choose the value that is most opposed to your values and rate it -1. If there is no such value, choose the value least important to you and rate it 0 or 1, according to its importance. Then rate the rest of the values in List I. VALUES LIST I 1 EQUALITY (equal opportunity for all) 2 INNER HARMONY (at peace with myself) 3 SOCIAL POWER (control over others, dominance) 4 PLEASURE (gratification of desires) 5 FREEDOM (freedom of action and thought) 6 A SPIRITUAL LIFE (emphasis on spiritual not material matters) 7 SENSE OF BELONGING (feeling that others care about me) 8 SOCIAL ORDER (stability of society) 9 AN EXCITING LIFE (stimulating experiences) 288 10 MEANING IN LIFE (a purpose in life) 11 POLITENESS (courtesy, good manners) 12 WEALTH (material possessions, money) 13 NATIONAL SECURITY (protection of my nation from enemies) 14 SELF RESPECT (belief in one's own worth) 15____RECIPROCATION OF FAVORS (avoidance of indebtedness) 16____CREATIVITY (uniqueness, imagination) 17____A WORLD AT PEACE (free of war and conflict) 18____RESPECT FOR TRADITION (preservation of time-honoured customs) 19____MATURE LOVE (deep emotional & spiritual intimacy) 20____SELF-DISCIPLINE (self-restraint, resistance to temptation) 21____PRIVACY (the right to have a private sphere) 22____FAMILY SECURITY (safety for loved ones) 23____SOCIAL RECOGNITION (respect, approval by others) 24____UNITY WITH NATURE (fitting into nature) 25____A VARIED LIFE (filled with challenge, novelty and change) 26____WISDOM (a mature understanding of life) 27____AUTHORITY (the right to lead or command) 28____TRUE FRIENDSHIP (close, supportive friends) 29____A WORLD OF BEAUTY (beauty of nature and the arts) 30____SOCIAL JUSTICE (correcting injustice, care for the weak) VALUES LIST II Now rate how important each of the following values is for you as a guiding principle in YOUR life. These values are phrased as ways of acting that may be more or less important for you. Once again, try to distinguish as much as possible between the values by using all the numbers. Before you begin, read the values in List II, choose the one that is most important to you and rate its importance. Next, choose the value that is most opposed to your values, or - if there is no such value choose the value least important to you, and rate it -1, 0, or 1, according to its importance. Then rate the rest of the values. 289 AS A GUIDING PRINCIPLE IN MY LIFE, this value is: opposed to my values -1 not important 0 1 2 important 3 4 5 31 INDEPENDENT (self-reliant, self-sufficient) 32 MODERATE (avoiding extremes of feeling & action) very important 6 of supreme importance 7 33____LOYAL (faithful to my friends, group) 34____AMBITIOUS (hard-working, aspiring) 35____BROADMINDED (tolerant of different ideas and beliefs) 36____HUMBLE (modest, self-effacing) 37____DARING (seeking adventure, risk) 38____PROTECTING THE ENVIRONMENT (preserving nature) 39____INFLUENTIAL (having an impact on people and events) 40____HONORING OF PARENTS AND ELDERS (showing respect) 41____CHOOSING OWN GOALS (selecting own purposes) 42____HEALTHY (not being sick physically or mentally) 43____CAPABLE (competent, effective, efficient) 44____ACCEPTING MY PORTION IN LIFE (submitting to life's circumstances) 45____HONEST (genuine, sincere) 46____PRESERVING MY PUBLIC IMAGE (protecting my "face") 47____OBEDIENT (dutiful, meeting obligations) 50____ENJOYING LIFE (enjoying food, sex, leisure, etc.) 51____DEVOUT (holding to religious faith & belief) 52____RESPONSIBLE (dependable, reliable) 53____CURIOUS (interested in everything, exploring) 54____FORGIVING (willing to pardon others) 55____SUCCESSFUL (achieving goals) 56____CLEAN (neat, tidy) 57____SELF-INDULGENT (doing pleasant things) 290 Section F This section contains 90 items, all of which focus on you. Please read every item and try to decide if its content reflects your personality characteristics. If it does, please circle the “Y” answer. If it does not, circle the ”N” answer. Please mark all the answers on the questionnaire. There are no correct or wrong answers to these questions and they will be used for academic research purposes only. If someone offends me, I will try hard to forgive them. Please circle Yes or No Y N A kind attitude of forgiveness, honesty, respect, magnanimity, etc. is an important precondition for people to be successful in society. Y N I strongly support the principle that if a family lives in harmony, all things will prosper. Y N My mind is at peace, and I have few desires. Y N I seldom argue with my family. Y N It is a virtue to tolerate everything. Y N I follow the saying that "Those who are contented are always happy" as a principle in life. Y N Sometimes I pretend I understand a lot, because I do not want others to look down on me. Y N I always think about other people's opinion of me before I do something. Y N I pay a lot of attention to how others see me. Y N Inviting someone out to dinner has to be done in style in order to keep up appearances. Y N I am usually very particular about the way I dress because I do not want others to look down on me. Y N I feel a loss of face when others turn down my favour. Y N I would rather cut down on my regular expenses, but when it comes to inviting out or giving presents to someone, I feel obliged to be generous. Y N Sometimes when I make a mistake I am not ready to admit it in public, even though I know I am wrong. Y N Sometimes I will insist on giving a friend a decent gift even if it means borrowing money to buy it. Y N When I am eating out and others have already finished their meal, I will also stop eating and pretend I am full, even if I am not. Y N Even if I was poor, I would still try to buy a presentable coat. Y N I always worry I will not say the most appropriate thing when I am interacting with Y strangers. N Eccentric clothes and hairstyles should be strictly banned so as to preserve N Y 291 traditional simplicity. If one of my friends or relatives was taken to a hospital, I would definitely go visit him/her. Y N When dealing with institutions, things can work out more smoothly through the connections of friends working inside. Y N Though I may be perfectly aware of my friends' lack of ability, If they ask me to find them a good job I will do my best to help them. Y N To avoid mistakes in life, the best thing to do is to listen to what the elders say. Y N During holidays, relatives and friends should visit one another and strengthen their relationships. Y N I find it very hard to say no when others make requests or give me assignments. Y N I would say it is natural for anyone in official positions to give preferential treatment to their friends and relatives. Y N Returning money is easier than returning emotions, so the best thing to do is not to become indebted to people emotionally. Y N When people show me respect, I should show them more respect in return. Y N The more people I know and the better my relations with them, the easier it will be for me to make it in society. Y N Do not do unto others what you do not wish others to do to you. In society one should be considerate to others and avoid causing harm to others. Y N I always try hard to get along well with others. Y N Blood is thicker than water, and no matter what, one's feelings for one's family are closer than for people outside the family. Y N I usually care a lot about my appearance. Y N The saying "Harmony is most valuable" is very true. Y N I pay a lot of attention to what kind of attitude people have toward me. Y N When I see something I need I will definitely buy it immediately. Y N I always maintain a peaceful frame of mind. Y N I accept my position in the society, and I also think it is a fair reflection of my abilities and my disposition. Y N Human beings will definitely be punished for destroying the law of nature. Y N I prefer not to discuss my weaknesses, even with my closest friends. Y N There is no stigma about marrying a divorced person. Y N I feel extremely uneasy in a situation where my friends are having an argument. Y N When a friend borrows something from me and does not return it, I often feel uneasy about asking him/her to give it back. Y N 292 When I accomplish something important, I try hard not to get too exited, because I know that success does not happen very often. Y N All things can be divided into right and wrong. Y N Even if I was very rich, I would still prefer to buy the cheapest out of several brands of the same product. Y N Even when I buy new clothes I continue to wear something old and save the new ones for an important occasion. Y N I often take friends out for meals Y N I seldom buy snacks. Y N I can remember how I have spent my money even if it were only a few cents. Y N I am very thrifty even when I am using public property. Y N Generally I do not like to spend too much money on vacationing. Y N I like to store old things for future use. Y N I think most people are too wasteful. Y N I hate things that are uncertain or unpredicted. Y N Generally speaking, I cannot stand people who spend money like water. Y N Once I have made a decision I will seldom change it. Y N I feel very sorry every time I have to throw away old things. Y N The belief that you can count on your children to be a safety net for your old age is outdated. Y N It is best not to show off too much so as to avoid offending others. Y N Parents should not interfere with their children's freedom to choose a profession. Y N Generally speaking, there can only be one correct solution. Y N I get irritated when unpredictable events disrupt my daily routine. Y N I believe I have a much stricter sense of right and wrong than most people. Y N I advocate the idea that all laws must be strictly enforced, regardless of the consequences. Y N I cannot stand people who can never make up their mind. Y N I often wish everyone would talk with me in a straightforward and unambiguous way. Y N Once I have made my plans I seldom change them. Y N I feel annoyed if my everyday life or work is disrupted by something unexpected. Y N 293 A woman's chastity is more important than her life. Y N I am very demanding on myself; it would be great if everyone else was like that. Y N Whenever I start some kind of work, I always make a schedule and plan all the details. Y N It would be great if everyone had a similar way of thinking or a similar system of values. Y N I like to save money for future necessities. Y N When I do something I am always very careful not to embarrass anyone. Y N Ancestral sacrifices, weddings, funerals, etc. should be conducted in keeping with their traditional forms and etiquette, i.e., without any arbitrary changes. Y N Kids that deserve the most praise are those who obey the rules just as adults do. Y N If teachers or superiors are mistaken, it is acceptable for students or inferiors to contradict them. Y N If a dispute cannot be resolved, a family elder should be invited to act as an arbiter to uphold justice. Y N I always insist on making detailed plans and schedules of my work. Y N When I am doing something urgent and a friend or a relative comes to see me, I will put my work aside and entertain them without making them wait. Y N Usually when I talk with people I take great care not to offend them. Y N I try to save money by taking public transport whenever I go out. Y N Students need to be completely devoted to learning, and should not get distracted by what is happening in the society. Y N Children do not have to follow their parents' wishes when choosing a partner for marriage. Y N Education is a sacred profession, and therefore teachers should not mind too much about their pay. Y N It is impossible even for the most decent people to be entirely without evil thoughts. Y N If the content of some TV programs or movies does not conform to Chinese culture, they should be eliminated with no exceptions. Y N Useless old things should be thrown away. Y N Please make sure that you have answered all the questions. THANK YOU! 294 b) Leader questionnaire Supervisor ________ July, 2001 WORK RELATIONS IN WESTERN SUBSIDIARIES IN CHINA Thank you for taking part in the study on work relations in Western subsidiaries in China that your company has agreed to participate in. The study is conducted at the Swedish School of Economics and Business Administration in Helsinki, Finland. This questionnaire is designed to obtain information about how personality, culture and work attitudes influence the quality of work relationships. Please remember when answering questions that may seem personal that all information that you provide will be strictly confidential and used for academic research purposes only. No individual responses will be distributed to company representatives and they will not be identifiable in the final report. The questionnaire comprises six sections. In the beginning of each section, guidelines regarding how to answer the questions will be given. The completion of the questionnaire takes approximately 60 minutes. Please answer all the questions and seal the completed questionnaire in the envelopes provided to you. Please send the questionnaires to: Annika Vatanen Swedish School of Economics and Business Administration Department of Management and Organization P.O. Box 479, 00101 Helsinki, Finland Fax: +358 9 4313 3275, Phone: +358 9 4313 3311 Mobile: +358 40 8343 572 E-mail: [email protected] Please contact Annika Vatanen if you have any questions about the survey. Thank you very much for your help and co-operation! 295 Section A In this section, we would like you to provide the information by filling in the blanks. 1. Your name: ____________________________________ 2. Your company: ____________________________________ 3. Number of employees in company (subsidiary): _____________ 4. Number of expatriate employees: _______________ 5. Your year of birth: ____________ 6. Your gender: [ ] Male [ ] Female 7. Your country of birth: _________________________________ 8. Your mother tongue: _________________________________ 9. Your language skills: [ ] English [ ] Chinese (Mandarin) [] company’s official language, which? ________________ 10. Your education: [ [ [ [ [ [ ] less than high school ] finished high school ] finished college ] finished Bachelor’s degree ] finished Master’s degree ] finished Doctoral degree 11. Have you received any education abroad? [ ] no [ ] yes, where? _________________ 12. Your current assignment in the organisation (subsidiary): [ ] senior management (general manager) [ ] functional head [ ] middle management [ ] lower management [ ] technical or other expert [ ] administrative [ ] other, what? ________________________ 13. How long have you worked in your present position? _______ year(s) and _____ month(s). 14. How long have you worked at this company? _______ year(s) and _____ month(s). How many subordinates do you currently supervise? _______ subordinates. Have you received any cross-cultural training to prepare you for your present multicultural work environment? [ ] no [ ] yes, of what type: [ ] environmental briefing (information about geography, climate, housing, etc. in work location) [ ] cultural orientation (information about cultureand values in work location)[ ] training in intercultural encounters [ ] language training 296 17. How many hours of cross-cultural training have you received in total? ________ hours. How much time have you spent in total on international assignments (including assignments before the present one)? ____ year(s) and _____month(s). How much time have you spent in total working in this country? ____year(s) and ___month(s) 20. Have you supervised subordinates from another cultural background before? [ ] no [ ] yes, for how long in total? ______year(s) and _____month(s). Section B In this section we are interested in your relationship with your subordinates. Please evaluate up to three (and preferably three) subordinates and make sure that all of the evaluated subordinates receive the employee version of this questionnaire! (The employee version of the questionnaire has the word 'employee' written on top of the first page). Please write down the names of the subordinates to be evaluated here (in Western characters please!): Subordinate names: (if name is already provided, please evaluate this subordinate) 1) ______________________________________________ ______________________________________________ ______________________________________________ Your name: _____________________________________________ Section B1 This section contains 23 statements. Read each statement carefully. Please indicate the extent to which you agree with the statements by writing down the number that best represents your evaluation of each of your subordinates under each column. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Please respond to all of the statements for each subordinate! Example: Write down the names of the persons you are evaluating (e.g John, Mary, James) in the first row to indicate which person you are evaluating in each column. Then, write down “4” in column 1 if you agree with the statement concerning John. Then, looking at the same statement, evaluate Mary in column 2 and write down a number, e.g. “2” if you disagree with the statement. Repeat this procedure for each subordinate and each statement. This example is illustrated below. 297 Subordinate name 1: John 2: Mary 4 2 3: James I like this subordinate very much as a person. etc. Following the instructions above, please write down the number that best represents your evaluation of each of your subordinates using this scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Subordinate name I like this subordinate very much as a person. This subordinate is the kind of person one would like to have as a friend. This subordinate is a lot of fun to work with. This subordinate would come to my defence if I were criticised by others. This subordinate would defend me to others in the organisation if I made an honest mistake. This subordinate defends my work actions to others in the organisation, even without complete knowledge of the issue in question. I can depend on this subordinate to help when we are overloaded with work. This subordinate is willing to apply extra efforts, beyond those normally required, to further the interests of our work group. This subordinate does things for me that go beyond what is specified in his/her job description. I am impressed with this subordinate's knowledge of his/her job. I seek out this subordinate's opinion on important matters. I admire this subordinate's professional skills. My subordinate and I are similar in terms of outlook, perspective, and values. 1: 2: 3: 298 Subordinate name 1: 2: 3: My subordinate and I see things in much the same way. My subordinate and I are alike in a number of areas. All in all, I am satisfied with my relationship with my subordinate. My subordinate usually knows where he/she stands with me and knows how satisfied I am with what he/she does. I understand my subordinate’s job problems and needs very well. I recognise my subordinate’s potential very well. It is very likely that I would use my power to help my subordinate solve his/her problems at work. It is very likely that I would "bail my subordinate out" My subordinate has enough confidence in me that he/she would defend and justify my decision if I were not present to do so. I would characterise my working relationship with my subordinate as highly effective. Section B2 Here we would like you to do two things: 1) Evaluate your subordinates for the past three to six months on each of the following items that reflects a different aspect of this subordinate’s performance. Following the same procedure as before, please write down the number that best represents your evaluation of each of your subordinates under each column. Please use the same scale as before: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree 2) Also, for those items marked with a Y N in the second column please circle: “Y” for items that describe behaviours that you see as an expected part of the subordinates’ job and “N” for items describing behaviours that you see as somewhat above and beyond what is expected for the subordinate’s job. Subordinate name Always completes work assigned by the company. Performed his/her required job well. Part of work 1: 2: 3: 299 Always completes the duties specified in his/her job description. Fulfills all formal job responsibilities. Performs specified job duties. Never neglects aspects of the job that he or she is obligated to perform. Meets all the formal job requirements. Helps orient new subordinates even though it is not required as part of his/her job. Is always ready to help or to lend a helping hand to those around him/her. Y N Willingly gives of his/her time to help others who have workrelated problems. Y N Helps others with heavy workloads. Y N Helps fill in for others who are sick or absent. Y N Y N Y N Y N Y N Y N Is one of my most conscientious subordinates. Believes in giving an honest day's work for an honest day's pay. 15. Never takes long lunches or breaks. 16. Takes fewer breaks at work than other subordinates. Is willing to work on a job/project until it is completed, even if it means coming in earlier or staying later than normal. Consumes a lot of time complaining about trivial matters. Always finds fault with what the company is doing. Is the classic "squeaky wheel" that always needs greasing. Tends to make problems bigger than they are. Always focuses on what's wrong with his/her situation, rather than the opposite. “Keeps up” with developments in the department/ company. Attends training/information sessions that subordinates are encouraged, but not required to attend (e.g., first aid, Red Cross, CPR, safety, informational sessions on new company benefits package, etc.) Actively participates in department/company meetings. Provides constructive suggestions regarding changes that might be made in his/her department or the company. 300 Willing to risk disapproval in order to express his/her beliefs about what’s best for the department/company. Y N Y N Considers the impact of his/her actions on others. Tries to avoid creating problems for co-workers. Returns phone calls and responds to other messages and requests for information promptly. Discusses with other workers before initiating actions that might affect them. Takes steps to try to prevent problems with co-workers. Respects other people’s rights to common/ shared resources (including EDP and duplicating equipment, tools, machinery, materials, clerical help, etc.) Please answer also the following questions: 1: 2: 3: Subordinate name For how long have you been working with this subordinate? (in months) How many times each week do you engage in face-to-face or telephone interaction with your subordinate? Approximately how many hours per week do you interact with this subordinate? Can you speak the mother tongue of your subordinate? (yes or no) Can your subordinate speak your mother tongue? (yes or no) Section C This section contains 20 statements. Read each statement carefully. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree 301 Fill in only response for each statement. Please respond to all of the statements! Please circle Strongly disagree…….Strongly agree This organisation has faith in me. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Even if I did the best job possible, this organisation’s management would fail to notice. 1 2 3 4 5 This organisation’s management is willing to extend itself in order to help me perform my job to the best of my ability. 1 2 3 4 5 Help is available from this organisation’s management when I have a problem. 1 2 3 4 5 This organisation's management feels proud of my contribution to the company. 1 2 3 4 5 I count in this organisation. I am trusted in this organisation. I am a valuable part of this organisation. I am an important part of this organisation. I am co-operative in this organisation. I am taken seriously in this organisation. I am helpful in this organisation. I am efficient around here. I make a difference around here. All things considered, I am satisfied with my current job. This organisation’s management shows very little concern for me. This organisation’s management cares about my general satisfaction at work. This organisation’s management really cares about my well-being. This organisation’s management strongly considers my goals and values. This organisation’s management cares about my opinions. 302 Section D 3 This section contains 60 statements . Read each statement carefully. Please indicate the extent to which you agree with the statements by circulating the number that best represents your opinion. These statements may appear personal, but please answer all of them and remember that they will be used for academic research only. Please use the following scale: 1 2 3 4 5 Strongly disagree Disagree Neither disagree nor agree Agree Strongly agree Fill in only response for each statement. Please respond to all of the statements! Please circle Strongly disagree …….Strongly agree I am not a worrier. I like to have a lot of people around me. I don't like to waste my time daydreaming. I try to be courteous to everyone I meet. I keep my belongings clean and neat. I often feel inferior to others. I laugh easily. Once I find the right way to do something, I stick to it. I often get into arguments with my family and co-workers. I'm pretty good about pacing myself so as to get things done on time. When I’m under a great deal of stress, sometimes I feel like I’m going to pieces. I don't consider myself especially “light-hearted.” I am intrigued by the patterns I find in art and nature. Some people think I’m selfish and egotistical. I am not a very methodical person. I rarely feel lonely or blue. 3 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 "Reproduced by special permission of the Publisher, Psychological Assessment Resources, Inc., 16204 North Florida Avenue, Lutz, Florida 33549, from the NEO Five Factor Inventory, by Paul Costa, and Robert McCrae, Copyright 1978, 1985, 1989 by PAR, Inc. Further reproduction is prohibited without permission of PAR, Inc." 303 I really enjoy talking to people. I believe letting students hear controversial speakers can only confuse and mislead them. I would rather cooperate with others than compete with them. I try to perform all the tasks assigned to me conscientiously. I often feel tense and jittery. I like to be where the action is. Poetry has little or no effect on me. I tend to be cynical and skeptical of others' intentions. I have a clear set of goals and work toward them in an orderly fashion. Sometimes I feel completely worthless. I usually prefer to do things alone. I often try new and foreign foods. I believe that most people will take advantage of you if you let them. I waste a lot of time before settling down to work. I rarely feel fearful or anxious. I often feel as if I'm bursting with energy. I seldom notice the moods or feelings that different environments produce. Most people I know like me. I work hard to accomplish my goals. I often get angry at the way people treat me. I am a cheerful, high-spirited person. I believe we should look to our religious authorities for decisions on moral issues. Some people think of me as cold and calculating. When I make a commitment, I can always be counted on to follow through. Too often, when things go wrong, I get discouraged and feel like giving up. I am not a cheerful optimist. Sometimes when I am reading poetry or looking at a work of art, I feel a chill or wave of excitement. I'm hard-headed and tough-minded in my attitudes. Sometimes I'm not as dependable or reliable as I should be. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 304 I am seldom sad or depressed. My life is fast-paced. I have little interest in speculating on the nature of the universe or the human condition. I generally try to be thoughtful and considerate. I am a productive person who always gets the job done. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 I often feel helpless and want someone else to solve my problems. I am a very active person. I have a lot of intellectual curiosity. If I don't like people, I let them know it. I never seem to be able to get organized. At times I have been so ashamed I just wanted to hide. I would rather go my own way than be a leader of others. I often enjoy playing with theories or abstract ideas. If necessary, I am willing to manipulate people to get what I want. I strive for excellence in everything I do. Section E In this section you are to ask yourself: "What values are important to ME as guiding principles in MY life, and what values are less important to me?" There are two lists of values on the following pages. These values come from different cultures. In the parentheses following each value is an explanation that may help you to understand its meaning. Your task is to rate how important each value is for you as a guiding principle in your life. Use the rating scale below: 0--means the value is not at all important, it is not relevant as a guiding principle for you. 3--means the value is important. 6--means the value is very important. The higher the number (0, 1, 2, 3, 4, 5, 6), the more important the value is as a guiding principle in YOUR life. -1 is for rating any values opposed to the principles that guide you. 7 is for rating a value of supreme importance as a guiding principle in your life; ordinarily there are no more than two such values. In the space before each value, write the number (-1,0,1,2,3,4,5,6,7) that indicates the importance of that value for you, personally. Try to distinguish as much as possible between the values by using all the numbers. You will, of course, need to use numbers more than once. 305 AS A GUIDING PRINCIPLE IN MY LIFE, this value is: opposed to my values -1 not important 0 1 2 important 3 4 5 very important 6 of supreme importance 7 Before you begin, read the values in List I, choose the one that is most important to you and rate its importance. Next, choose the value that is most opposed to your values and rate it -1. If there is no such value, choose the value least important to you and rate it 0 or 1, according to its importance. Then rate the rest of the values in List I. VALUES LIST I 1 EQUALITY (equal opportunity for all) 2 INNER HARMONY (at peace with myself) 3 SOCIAL POWER (control over others, dominance) 4 PLEASURE (gratification of desires) 5 FREEDOM (freedom of action and thought) 6 A SPIRITUAL LIFE (emphasis on spiritual not material matters) 7 SENSE OF BELONGING (feeling that others care about me) 8 SOCIAL ORDER (stability of society) 9 AN EXCITING LIFE (stimulating experiences) 10 MEANING IN LIFE (a purpose in life) 11 POLITENESS (courtesy, good manners) 12 WEALTH (material possessions, money) 13 NATIONAL SECURITY (protection of my nation from enemies) 14 SELF RESPECT (belief in one's own worth) 15____RECIPROCATION OF FAVORS (avoidance of indebtedness) 16____CREATIVITY (uniqueness, imagination) 17____A WORLD AT PEACE (free of war and conflict) 18____RESPECT FOR TRADITION (preservation of time-honoured customs) 19____MATURE LOVE (deep emotional & spiritual intimacy) 20____SELF-DISCIPLINE (self-restraint, resistance to temptation) 21____PRIVACY (the right to have a private sphere) 306 22____FAMILY SECURITY (safety for loved ones) 23____SOCIAL RECOGNITION (respect, approval by others) 24____UNITY WITH NATURE (fitting into nature) 25____A VARIED LIFE (filled with challenge, novelty and change) 26____WISDOM (a mature understanding of life) 27____AUTHORITY (the right to lead or command) 28____TRUE FRIENDSHIP (close, supportive friends) 29____A WORLD OF BEAUTY (beauty of nature and the arts) 30____SOCIAL JUSTICE (correcting injustice, care for the weak) VALUES LIST II Now rate how important each of the following values is for you as a guiding principle in YOUR life. These values are phrased as ways of acting that may be more or less important for you. Once again, try to distinguish as much as possible between the values by using all the numbers. Before you begin, read the values in List II, choose the one that is most important to you and rate its importance. Next, choose the value that is most opposed to your values, or - if there is no such value choose the value least important to you, and rate it -1, 0, or 1, according to its importance. Then rate the rest of the values. AS A GUIDING PRINCIPLE IN MY LIFE, this value is: opposed to my values -1 not important 0 1 2 important 3 4 5 31 INDEPENDENT (self-reliant, self-sufficient) 32 MODERATE (avoiding extremes of feeling & action) very important 6 33____LOYAL (faithful to my friends, group) 34____AMBITIOUS (hard-working, aspiring) 35____BROADMINDED (tolerant of different ideas and beliefs) 36____HUMBLE (modest, self-effacing) 37____DARING (seeking adventure, risk) 38____PROTECTING THE ENVIRONMENT (preserving nature) 39____INFLUENTIAL (having an impact on people and events) 40____HONORING OF PARENTS AND ELDERS (showing respect) of supreme importance 7 307 41____CHOOSING OWN GOALS (selecting own purposes) 42____HEALTHY (not being sick physically or mentally) 43____CAPABLE (competent, effective, efficient) 44____ACCEPTING MY PORTION IN LIFE (submitting to life's circumstances) 45____HONEST (genuine, sincere) 46____PRESERVING MY PUBLIC IMAGE (protecting my "face") 47____OBEDIENT (dutiful, meeting obligations) 48____INTELLIGENT (logical, thinking) 49____HELPFUL (working for the welfare of others) 50____ENJOYING LIFE (enjoying food, sex, leisure, etc.) 51____DEVOUT (holding to religious faith & belief) 52____RESPONSIBLE (dependable, reliable) 53____CURIOUS (interested in everything, exploring) 54____FORGIVING (willing to pardon others) 55____SUCCESSFUL (achieving goals) 56____CLEAN (neat, tidy) 57____SELF-INDULGENT (doing pleasant things) Section F This section contains 90 items, all of which focus on you. Please read every item and try to decide if its content reflects your personality characteristics. If it does, please circle the “Y” answer. If it does not, circle the ”N” answer. Please mark all the answers on the questionnaire. There are no correct or wrong answers to these questions and they will be used for academic research purposes only. If someone offends me, I will try hard to forgive them. Please circle Yes or No Y N A kind attitude of forgiveness, honesty, respect, magnanimity, etc. is an important precondition for people to be successful in society. Y N I strongly support the principle that if a family lives in harmony, all things will prosper. Y N My mind is at peace, and I have few desires. Y N I seldom argue with my family. Y N It is a virtue to tolerate everything. Y N I follow the saying that "Those who are contented are always happy" as a principle in life. Y N 308 Sometimes I pretend I understand a lot, because I do not want others to look down on me. Y N I always think about other people's opinion of me before I do something. Y N I pay a lot of attention to how others see me. Y N Inviting someone out to dinner has to be done in style in order to keep up appearances. Y N I am usually very particular about the way I dress because I do not want others to look down on me. Y N I feel a loss of face when others turn down my favour. Y N I would rather cut down on my regular expenses, but when it comes to inviting out or giving presents to someone, I feel obliged to be generous. Y N Sometimes when I make a mistake I am not ready to admit it in public, even though I know I am wrong. Y N Sometimes I will insist on giving a friend a decent gift even if it means borrowing money to buy it. Y N When I am eating out and others have already finished their meal, I will also stop eating and pretend I am full, even if I am not. Y N Even if I was poor, I would still try to buy a presentable coat. Y N I always worry I will not say the most appropriate thing when I am interacting with Y strangers. N Eccentric clothes and hairstyles should be strictly banned so as to preserve traditional simplicity. Y N If one of my friends or relatives was taken to a hospital, I would definitely go visit him/her. Y N When dealing with institutions, things can work out more smoothly through the connections of friends working inside. Y N Though I may be perfectly aware of my friends' lack of ability, If they ask me to find them a good job I will do my best to help them. Y N To avoid mistakes in life, the best thing to do is to listen to what the elders say. Y N During holidays, relatives and friends should visit one another and strengthen their relationships. Y N I find it very hard to say no when others make requests or give me assignments. Y N I would say it is natural for anyone in official positions to give preferential treatment to their friends and relatives. Y N Returning money is easier than returning emotions, so the best thing to do is not to become indebted to people emotionally. Y N When people show me respect, I should show them more respect in return. Y N 309 The more people I know and the better my relations with them, the easier it will be for me to make it in society. Y N Do not do unto others what you do not wish others to do to you. In society one should be considerate to others and avoid causing harm to others. Y N I always try hard to get along well with others. Y N Blood is thicker than water, and no matter what, one's feelings for one's family are closer than for people outside the family. Y N I usually care a lot about my appearance. Y N The saying "Harmony is most valuable" is very true. Y N I pay a lot of attention to what kind of attitude people have toward me. Y N When I see something I need I will definitely buy it immediately. Y N I always maintain a peaceful frame of mind. Y N I accept my position in the society, and I also think it is a fair reflection of my abilities and my disposition. Y N Human beings will definitely be punished for destroying the law of nature. Y N I prefer not to discuss my weaknesses, even with my closest friends. Y N There is no stigma about marrying a divorced person. Y N I feel extremely uneasy in a situation where my friends are having an argument. Y N When a friend borrows something from me and does not return it, I often feel uneasy about asking him/her to give it back. Y N When I accomplish something important, I try hard not to get too exited, because I know that success does not happen very often. Y N All things can be divided into right and wrong. Y N Even if I was very rich, I would still prefer to buy the cheapest out of several brands of the same product. Y N Even when I buy new clothes I continue to wear something old and save the new ones for an important occasion. Y N I often take friends out for meals Y N I seldom buy snacks. Y N I can remember how I have spent my money even if it were only a few cents. Y N I am very thrifty even when I am using public property. Y N Generally I do not like to spend too much money on vacationing. Y N I like to store old things for future use. Y N I think most people are too wasteful. Y N 310 I hate things that are uncertain or unpredicted. Y N Generally speaking, I cannot stand people who spend money like water. Y N Once I have made a decision I will seldom change it. Y N I feel very sorry every time I have to throw away old things. Y N The belief that you can count on your children to be a safety net for your old age is outdated. Y N It is best not to show off too much so as to avoid offending others. Y N Parents should not interfere with their children's freedom to choose a profession. Y N Generally speaking, there can only be one correct solution. Y N I get irritated when unpredictable events disrupt my daily routine. Y N I believe I have a much stricter sense of right and wrong than most people. Y N I advocate the idea that all laws must be strictly enforced, regardless of the consequences. Y N I cannot stand people who can never make up their mind. Y N I often wish everyone would talk with me in a straightforward and unambiguous way. Y N Once I have made my plans I seldom change them. Y N I feel annoyed if my everyday life or work is disrupted by something unexpected. Y N A woman's chastity is more important than her life. Y N I am very demanding on myself; it would be great if everyone else was like that. Y N Whenever I start some kind of work, I always make a schedule and plan all the details. Y N It would be great if everyone had a similar way of thinking or a similar system of values. Y N I like to save money for future necessities. Y N When I do something I am always very careful not to embarrass anyone. Y N Ancestral sacrifices, weddings, funerals, etc. should be conducted in keeping with their traditional forms and etiquette, i.e., without any arbitrary changes. Y N Kids that deserve the most praise are those who obey the rules just as adults do. Y N If a dispute cannot be resolved, a family elder should be invited to act as an arbiter to uphold justice. Y N I always insist on making detailed plans and schedules of my work. Y N When I am doing something urgent and a friend or a relative comes to see me, I Y N 311 will put my work aside and entertain them without making them wait. Usually when I talk with people I take great care not to offend them. Y N I try to save money by taking public transport whenever I go out. Y N Students need to be completely devoted to learning, and should not get distracted by what is happening in the society. Y N Children do not have to follow their parents' wishes when choosing a partner for marriage. Y N Education is a sacred profession, and therefore teachers should not mind too much about their pay. Y N It is impossible even for the most decent people to be entirely without evil thoughts. Y N If the content of some TV programs or movies does not conform to Chinese culture, they should be eliminated with no exceptions. Y N Useless old things should be thrown away. Y N Please make sure that you have answered all the questions.THANK YOU! 312 APPENDIX 2: SPECIFICATION OF MEASUREMENT ISSUES a) CFA model fit indices An indication of construct validity can be obtained by assessing and comparing the coefficients in measurement models that show acceptable fit. Few researchers seem to agree on which index provides the best estimation of model fit (cf. e.g. Gierl, Rogers & Klinger, 1999). As a result, there is an increasing trend to utilise multiple fit indices that reflect different aspects of the model fit. Some commonly fit indices that will be used in the presented study are presented below (the presentation of fit indices is largely adopted from Jöreskog and Sörbom (1993): Chi-square(χ2) is a measure of overall fit of the model to the data. It measures the distance (difference) between the sample covariance matrix and the fitted covariance matrix. In this view, chi-square is a badness-of-fit measure in the sense that a small chisquare corresponds to good fit and a large chi-square to bad fit. Chi-square is calculated as N-1 times the minimum value of the fit function, where N is the sample size. Since chi-square is N - 1 times the minimum value of the fit function, chi-square tends to be larger in large samples if the model does not hold (Jöreskog & Sörbom, 1993). It is suggested that the result of dividing chi-square by the degrees of freedom should not exceed the threshold of five suggested by Wheaton et al. (1977, as cited in Van Dyne, Graham & Dienesch, 1994) and the threshold of two or three suggested by Carmines and McIver (1981, as cited by Van Dyne et al. 1994). However, a well-known problem of the chi-square test is that relatively minor deviations from the specified model will result in significant outcomes, which reinforces the need to use a variety of different fit indices in any covariance structure analysis (Riordan & Vandenberg, 1994). The goodness-of-fit index (GFI) and the goodness-of-fit index adjusted for degrees of freedom (AGFI) of Jöreskog et al. (1989) do not depend on sample size explicitly and measure how much better the model fits as compared to no model at all. This measures should be between zero and one, although it is theoretically possible for them to become negative (this means that the model fits worse than no model at all (Jöreskog & Sörbom, 1993). A preferred criterion for close fit is GFI >.90 while values >.80 are still considered acceptable (e.g. Chow, Snowden & McConnell, 2001). The comparative fit index (CFI) developed by Bentler (1990, as cited in Jöreskog & Sörbom, 1993) belongs to the group of indices that measure how much better the model fits as compared to a baseline model, usually the independence model (i.e., the model in which all observed variables are uncorrelated). CFI values range from 0 (lack of fit) to 1 (perfect fit), but values outside this interval can occur (Jöreskog & Sörbom, 1993). According to Liden and Maslyn (1998) CFI is the index that best accounts for parsimony without over-penalising models that hypothesise more paths. A preferred criterion for close fit is CFI >.90 while values >.80 are still considered acceptable (e.g. Chow, Snowden & McConnell, 2001). 313 Root mean square error of approximation (RMSEA) is intended to provide a measure of parsimony by assessing the discrepancy per degree of freedom (lack of fit given a particular number of parameters in the model tested) (Gierl et al., 1999). According to Brown and Cudek (1993) a RMSEA of 0.05 indicates a close fit of the model in relation to degrees of freedom (and a value of around .08 as still acceptable). Taking into consideration the points made above, the following criteria for assessing model fit will be used in the present study: χ2/df <3, RMSEA <.08, GFI >.80, CFI >.80. Jöreskog and Sörbom (1993) suggest the following additional criteria for judging confirmatory factor model satisfaction that will be used in the present study: p-value for the chi-square statistic>.05, CN >N as well as item R2>.20, and item estimate t-value >2.0. (at a significance level of 5%, at 10% t=1.64 is the threshold value). A model that shows very good fit to the data is expected to meet every criterion, but a model that meets most, but not all, of the criteria will not automatically be rejected. Although the final model may not demonstrate perfect fit, at least it will enable improvement of the measure as well as clarify its possible deficiencies. Regarding the problem of choosing from among two or more competing models, the choice of which procedure to use depends on whether or not the competing models are "nested" within one another (Jöreskog & Sörbom, 1993). Model A is nested within model B if Model A is a special case of Model B. A commonly used method is to test the null hypothesis of no significant difference in fit by evaluating whether the chisquare difference is significant, for the given degrees of freedom and a chosen significance level. If the difference is significant, then the null hypothesis is rejected. This approach is limited to comparisons of nested models. In establishing the level of equivalence of models in multisample analysis, the fit of hierarchically nested models can be tested by incremental fit indices, i.e. the test statistic is the difference in goodness of fit between the more or less restricted models (Van den Vijver & Leung, 1997). One disadvantage with chi-square in comparative model fitting is that it always decreases when parameters are added to the model value (Jöreskog & Sörbom, 1993). A number of measures try to deal with this problem by first decreasing as parameters are added and then have a turning point such that they takes its smallest value for the "best'' model and then increases when further parameters are added. The AIC and CAIC measures belong to this category. In the general case of selection of one model among several (more than two) models, one can use the model selection criteria AIC, CAIC, or ECVI and choose the model with the smallest value (Jöreskog & Sörbom, 1993). AIC and CAIC will be used to facilitate model selection in the present study. b) Reliability The Cronbach’s alpha coefficients (α) are indicators of internal consistency reliability (i.e. the reliability of items as reflectors of their respective constructs). Cronbach’s alphas are widely used and will also be reported for the measures employed in the present study. The threshold of .70 is recommended by Nunnally (1978). It should be noted Cronbach’s alpha is sensitive to the number of items. 314 In addition, reliability will be estimated through the confirmatory factor analyses described above. Bollen’s (1989) structural equation measure of reliability is a measure of “the proportion of variance in a measure that is explained by the variables that directly affect xi (observed variable)”. Bollen suggests the use of the squared multiple correlation coefficient for xi, R2xi as a measure of reliability. As a result, the R2 for the xis will be reported. As noted by Ehrnrooth (2002), Bollen’s measure of reliability seems to be parallel to his measure of construct validity in the case that the measurement model only contains one latent variable. (Bollen makes a distinction between his validity and reliability measure by stating that reliability measures all influences, both valid and invalid, on xi whereas validity measures the strength of the direct effect of a particular latent variable on xi. This further points to the interlinkage between validity and reliability (cf. Ehrnrooth 2002). c) Measurement equivalence As mentioned earlier in Chapter 5 (see p. 126), cross-cultural equivalence and bias are major concerns in cross-cultural studies (cf. e.g. van de Vijver and Leung, 1997; Riordan & Vandenberg, 1994). Equivalence is closely linked with the concept of bias: scores are equivalent when they are unbiased (van de Vijver and Leung, 1997). However, equivalence refers to the measurement level at which scores can be compared across cultures whereas bias indicates the presence of factors that make the validity of cross-cultural comparisons questionable. Bias can occur at multiple stages of a study including 1) the formulation of hypotheses and conceptualisation of theoretical constructs, 2) the design of the study and c) data analysis. Personal bias partly stemming from the researcher’s cultural background affecting hypotheses formulation and study design has been indirectly dealt with in the previous chapters. Personal bias is difficult to avoid but it is hoped that through an open discussion and description of the research process in the previous and following chapters, these biases will at least become clear and obvious. This is considered to be a better option than to claim “objectivity”. This section will focus on issues related cross-cultural bias and equivalence at the data analysis stage, and procedures that could be categorised as a posteriori validation techniques by van de Vijver and Leung (1997). According to van de Vijver and Leung (1997), equivalence can occur at three levels, which are hierarchically related to each other: the construct level, the measurement unit level and the score level. Structural equivalence occurs when an instrument measures the same latent construct in two or more cultures. In order to establish construct equivalence, the nomological networks of the instruments in the two cultures should be examined. Measurement unit equivalence occurs when the measurement unit is identical for each of the cultural groups (but the offset of the scale can be different, e.g. when temperatures measured in Kelvin and Celsius are compared, the unit is the same while the Kelvin scale starts from the lowest achievable temperature and Celsius from freezing point). Scalar equivalence or full score comparability, which is the highest level of equivalence, can be achieved when the measurement instrument is on the same ratio scale in each cultural group (e.g. measuring weight in kg) or when scores on an 315 instrument have the same interval scale across cultural groups. Equivalence is the function of the characteristics of an instrument and of the cultural groups involved. Van de Vijver and Leung (1997) define bias as a generic term for all nuisance factors that threaten the validity of cross-cultural comparisons. Regarding the linkage between bias and equivalence, van de Vijver and Leung (1997) note that uniform and nonuniform bias is harmless for construct equivalence as numeric score comparisons across cultures are not permitted anyway. Uniform bias does not threaten measurement unit equivalence (adding a constant to all scores in one group does not influence the measurement unit and does not influence scalar equivalence as comparisons across this level cannot be conducted anyway, e.g. one cannot compare degrees measured in Celsius and Kelvin and it does hence not make any difference if e.g. the Kelvin scale consistently would show two degrees less than the real temperature) but leads to a loss of scalar equivalence (the differences in scores no longer have a natural origin). Nonuniform bias destroys equivalence to a considerable extent as the measurement unit in the two groups becomes different. This is likely to lead to the incorrect conclusions through cross-cultural comparisons. Measurement equivalence testing For assessing measurement equivalence, Schaffer and Riordan (2001) recommend covariance structure analysis as a best practice statistical approach for cross-cultural organisational research. The first phase involves testing the equality of the variancecovariance matrices across the cultural groups. Riordan and Vandenberg (1994) used the multisample feature of LISREL to test the null hypothesis that the Korean and American samples’ matrices were equal for each variable. A rejection of the null hypothesis in this test, demonstrated by a significant chi-square, would indicate that there were some sources of inequivalence in measurement. This suggests that increasingly restrictive tests should be conducted to identify the source of inequivalence (Byrne et al., 1989). The second phase assesses conceptual equivalence, and includes a test of the hypothesis that the forms of the factor models are consistent across the samples (Riordan & Vandenberg, 1994). Differences in factor structure between the cross-cultural samples would be an indication of conceptual inequivalence. To test this hypothesis, a latent means approach using the multisample feature of LISREL VIII (Jöreskog & Sörbom, 1993) can be utilised (Riordan & Vandenberg, 1994; 653). Importantly, findings for a lack of conceptual equivalence, indicated by unacceptable fit indices, would suggest that any other comparisons between groups among the variables would be uninterpretable, since obtained values would represent non-equivalent constructs. The third phase assesses scaling equivalence, and uses models that extend the factormodels in Phase 2 by placing equality constraints on the factor loadings across the samples (Riordan & Vandenberg, 1994). Equivalence is determined by comparing the samples on the ‘true-score’ units associated with each observed item of a scale. This new model is nested within the first model, and is a more restrictive model. Thus, a poorer fit from the first model to this second model would indicate scaling, or true score, inequivalence. (Riordan & Vandenberg, 1994). 316 These steps described by Schaffer and Riordan (2001) are similar to the ones recommended by Byrne, Shavelson, and Muthén (1989). The authors describe a fivestep approach, which in addition to the tests described above, examines the equality of intercept and the equality of unique variances. The five steps are the following: an omnibus test of measurement equivalence (test 1) which, if rejected, can be followed with tests of equal factor structures (test 2, also referred to as a test of "configural invariance," Horn & McArdle, 1992), equal intercepts (test 3) and factor loadings (test 4, or "metric invariance," Horn & McArdle, 1992), and equal unique variances (test 5). Byrne et al (1989) refer to test 1 through test 5 as evaluating cross-group measurement invariance. Additional tests evaluate what Byrne et al. (1989) refer to as cross-group structural invariance, including a test of the hypothesis that factor variances are equal across groups (test 6) and a test of the hypothesis of equal covariances across groups (test 7). Byrne et al. (1989) consider tests 1 through 5 as tests of measurement invariance in the sense that they evaluate cross-equivalence in various aspects of invariance with respect to relationships between observed measures and unobserved factors. Tests 6 and 7, on the other hand, are considered test of structural invariance in the sense that they evaluate cross-group equivalencies in relationships among unobserved variables. It should, however be noted that others have considered tests as comprising additional aspects of measurement equivalence (e.g., Schmitt, 1982). However, it should be noted that before testing nested models with different equality constraints, researchers have begun their assessment of equivalence across cultural groups by conducting confirmatory factor analyses for each groups separately (e.g. Singh, Ghoparade & Lackritz, 2001). This gives a general overview of the factorial structure in both groups. It seems that if remarkable differences are found already at this stage, testing nested models with presumed strict equality constraints seems superfluous. As a result, the assessment of cross-cultural equivalence started with confirmatory factor analyses conducted separately for Western and Chinese respondents. The fact that the constructs employed in the present study have already been employed in a Chinese context and there are empirical and theoretical justifications to presume that the factor structure would be similar in both cultural groups resulted in the decision to use confirmatory rather than exploratory techniques. The need to establish measurement properties (such as reliability and validity) for each cultural group separately and to compare these properties across groups is also stressed in the guidelines formulated by a committee representing various international psychological organisations for translating and adapting psychological and educational instruments (Hambleton, 1994, as cited in van de Vijver and Leung, 1997). The validation of the measures employed in the present study was described in Chapter 5 (see p. 133) whereas the focus in this section is on describing general procedures. An important issue to consider if there is a specific point in these analyses at which observed levels of inequivalence would give reason to halt the research efforts. In case of continuation, any strategies for increasing equivalence by relaxing constraints, or by removing items from the research instrument, have to be supported by sound theoretical justifications (Vandenberg & Lance, 2000). In the present study, covariance structure analysis will be used mainly to determine the level of equivalence and it will not be used as a tool for identifying the sources of inequivalence. The focus is on the first step, i.e. testing the equality of the covariance matrices and comparing it to a less restrictive 317 model in which the factor loadings are not presumed to be equal. Testing only these models does not enable a specific identification of inequivalence, but is considered to be sufficient given that item-level sources of inequivalence will be identified using itembias detection techniques (to be discussed in the following sub-section). The decision not to resort to all possible techniques aimed at identifying sources of inequivalence is also in line with the primary aim of this study, which is not to compare Chinese and Western individuals, but to understand leader-follower relations. Hence, if a significant level of equivalence of constructs cannot be demonstrated, both groups will be analysed separately. The standpoint taken in the present study is that our understanding of leaderfollower relations in the present context is increased most efficiently by adopting measures to fit the specific group or dyad-type (intracultural or intercultural) under examination than developing measures that may be equivalent but non adequate for the group under examination. The examination of equivalence was undertaken separately for each construct. A simultaneous inclusion of a larger number of constructs would most certainly have lead to specification problems due to the interrelationships between constructs (cf. Schaffer and Riordan, 2001). However, in case the individual measures demonstrate a high level of equivalence, it would be possible to examine their convergent-discriminant validity by simultaneously comparing measurement properties. An examination of the equivalence causal relationships between the constructs is also only possible if equivalence of constructs can be demonstrated. d) Item bias detection According to van de Vijver and Leung (1997), the most important a posteriori technique in validity enhancement is item bias analysis that can be used to detect anomalous items. In Cleary’s and Hilton’s analysis of variance approach described by van de Vijver & Leung (1997), and which was used in the present study, bias is examined for each item separately. The item score is the dependent variable (in this case, the 5-point Likert scores are treated as interval variables) while cultural group (two levels) and score groups (to be explained later) are the independent variables. Score groups are composed on the basis of the total score of the instrument (sum of the item scores). Using the LMX-MDM measure used in the present study as an example, the measure consists of 12 items measured on a 5-point scale. The minimum total score is hence 1x 12 = 12 and the maximum score 5 x 12 = 60 and there are hence 60 – 12 = 48 score groups. The minimum and maximum score groups are not considered in the item analysis, as the responses would necessarily be identical across all cultural groups (i.e. the score is either 1 or 5 on all items). With small sample sizes, it is not possible to include all score groups (in this case 46) in the analysis. This is due to the fact that it is likely that some of these groups only have very few or even no subjects, which threatens the stability of the analysis. van de Vijver and Leung recommend using score groups with at least 50 persons each. As a result, score levels have to be concatenated, using a score distribution for the combined samples to identify cut-off points for forming appropriately equal-sized groups. In the examination of item bias in the leader version of LMX that involved approximately 230 leader responses, only 5 score groups 318 could be formed due to the small sample size. (A larger number of groups would have allowed for a more fine-grained analysis). After the score groups have been defined, the analysis of variance with the item score as the dependent variable and cultural group and score groups as the independent variables can be carried out. The significance of three effects is tested in the analysis: the effect of the score group (usually significant as it shows that individuals in the lower score groups have lower scores), the significance of the cultural group, and the significance of the interaction of score group and culture. If the effects of both the cultural group and the interaction between culture and score group are insignificant, the item is taken to be unbiased. A significant effect of cultural group points to uniform bias, indicating that individuals from one cultural groups may have higher scores on an item than individuals from another group even when they have the same total test score (e.g. an IQ test where one item for some reason is easier for one cultural group). A significant effect of the interaction term suggests non-uniform bias meaning that the difference between cultural groups is not invariant across score groups: the item discriminates better in one group than in another. Item-bias analysis was conducted for all the perceptual measures measured from a leader perspective in order to establish whether the responses given by Chinese and Western leaders are equivalent and hence comparable. This was not considered necessary for the follower measures, as all the followers were Chinese. One exception was the item-bias analysis conducted on follower LMX, mainly for curiosity, in order to examine whether the Chinese followers systematically rated the western and Chinese leaders differently. In conclusion, it should be stated that although validity enhancing procedures, some of which were described above, can reduce many problems of cross-cultural assessment, their implementation never guaranteed bias-free measurement. Hence, cross-cultural differences in scores on social behavioural measures tend to be open to multiple interpretations (van de Vijver & Leung, 1997). 319 .73 .04 -.25 -.29 -.01 -.01 16. Le education 17. Le cult know -.11 -.06 .00 20. Le conscien 21. |Le agre 22. Le harmony .24 -.12 -.27 19. Le extrover .22 .10 -.07 -.28 18. Le neuroti .06 .17 .24 .20 .18 15. Le age .14 .15 .12 .23 Fo cult know 9. .58 -.14 -.04 14. LLMX leader Fo tenuren com 8. .60 .28 Interactio justic 7. .56 .69 .26 13. Fo harmony Fo perc similar 6. .74 .55 12. Fo conscienti LMX respect 5. .30 .09 LMX contribu 4. .63 1.0 .69 -.16 -.23 LMX loyalty 3. .69 1.0 2. 11. Fo extroversion LMX affect 2. 1. 10. Fo neuroticism LMX follower 1. Chinese dyads .23 .27 .33 .17 1.0 .30 .63 4. 5. .63 .55 1.0 .25 .33 .69 .74 .06 .05 .17 .13 .09 .02 .19 .24 .30 .20 -.10 -.18 -.12 -.05 .17 .03 .16 .02 .00 -.13 .07 -.16 .08 -.24 .07 -.03 .03 -.04 -.18 -.09 -.34 -.15 -.03 .16 .04 -.07 -.07 -.02 -.18 .04 .04 -.07 .24 .33 .25 1.0 .17 .26 .55 .11 -.11 -.24 3. .60 1.0 .55 .33 .27 .60 .56 7. 1.0 .60 .63 .24 .23 .73 .58 .08 .12 .21 .19 .39 .26 .00 .07 .18 .07 -.08 -.20 -.20 -.28 -.11 .31 -.14 -.03 -.16 -.34 .05 .03 .20 .16 .10 -.19 -.29 .13 -.04 -.08 6. 9. .11 -.07 .14 -.23 .12 -.16 10. 1.0 .01 -.42 .16 -.50 .09 .17 .06 .02 .06 .04 .19 .09 -.03 -.17 .09 -.08 -.05 .10 -.10 -.26 -.07 -.12 -.04 .03 -.08 -.10 -.09 -.17 .32 .13 -.07 -.02 -.19 -.12 -.19 -.04 .29 1.0 -.19 .25 .08 -.29 .13 -.19 .04 -.18 .29 -.19 .25 1.0 -.08 -.04 -.07 .04 -.11 -.02 -.24 -.04 -.14 8. .39 .16 .30 .13 .04 .20 .28 12. .19 .20 .24 .17 .16 .24 .23 13. .01 -.19 .07 .02 .08 .08 .16 .18 .32 .00 .09 .09 -.15 -.03 .00 .28 -.23 -.10 -.16 .12 -.10 -.24 -.02 -.10 -.22 -.14 .02 -.08 .13 1.0 1.0 -.01 .41 -.10 -.10 -.01 .41 1.0 -.50 -.42 -.12 .16 -.04 -.19 -.02 .26 .10 .20 .09 -.07 .18 .09 11. .06 .04 15. .02 .06 .09 .32 .12 .05 .02 .06 1.0 .02 .02 .07 .07 .23 .02 -.05 .20 .11 .39 .02 -.26 -.12 .09 -.11 -.12 .02 1.0 .08 .07 -.08 .13 .02 -.07 .13 .21 .03 .19 .05 -.03 -.15 .17 .15 14. Table 22: Correlations between follower LMX and antecedents, intracultural APPENDIX 3: CORRELATION TABLES 17. .03 .07 .22 .10 18. .03 .00 .31 .17 .04 .03 -.33 .12 .03 .01 .08 -.02 -.22 -.21 -.11 -.06 -.59 1.0 1.0 -.34 .14 .07 -.12 .14 -.34 -.05 .16 .09 -.26 .18 .08 -.24 1.0 -.05 -.12 -.11 -.14 -.22 -.10 -.02 -.10 .17 -.10 .06 .03 -.04 -.17 -.08 -.09 -.34 -.03 -.16 -.14 -.34 -.09 -.04 -.03 -.18 -.29 -.01 -.25 -.01 16. 320 20. .07 .10 .19 .39 .02 .00 .03 .31 1.0 .43 -.09 -.12 .07 .43 1.0 -.59 -.33 -.06 -.11 -.21 .02 -.05 -.23 .28 -.16 .12 -.10 -.12 -.07 -.10 -.26 -.11 -.20 -.28 -.20 -.24 -.16 .08 -.05 -.12 -.28 -.27 -.07 -.12 19. .24 .00 22. .09 .18 .07 .02 .02 .06 .04 .31 1.0 1.0 -.25 .31 -.18 .31 -.12 -.26 .07 .01 -.03 .03 -.10 .12 .20 -.30 .07 .09 -.14 .00 .07 -.09 -.22 -.02 .08 .11 .23 -.03 -.15 .25 .02 .00 .13 .09 .11 .32 -.14 -.05 -.17 .09 .16 .19 .16 23. .16 -.04 -.08 -.03 .09 -.08 .07 -.13 .00 -.18 -.10 -.06 -.11 21. 26. .01 -.12 .14 .16 .19 .21 .39 .16 .17 .00 .06 .15 .07 .00 .13 .04 .05 -.07 .13 -.10 .09 .12 -.06 .35 -.10 .09 .07 .03 .10 .11 -.13 .13 .02 -.02 .08 -.04 -.04 .00 -.18 -.09 -.32 .13 .30 -.18 -.20 -.14 -.25 -.10 .63 .24 .09 .13 .06 -.23 .02 -.07 .19 .11 -.08 -.04 .14 .06 .02 -.34 .01 .04 .09 .05 .03 .17 -.02 -.24 .56 .02 -.09 .26 -.10 -.29 .35 .12 -.10 -.10 .12 .12 -.06 -.11 -.03 .19 .15 -.05 28. .15 -.01 -.13 -.03 -.03 -.01 .31 .38 .12 .14 .17 27. .24 -.11 -.03 -.01 25. -.15 -.02 -.34 .26 .11 24. 30. .04 .25 .17 31. .30 .22 .01 .07 .07 .06 .09 -.16 .16 -.05 .00 .03 -.05 .12 -.14 .23 -.14 .08 .03 .58 .46 .12 .02 -.03 .01 -.01 -.16 .25 .06 -.02 .16 -.10 .64 -.07 -.29 -.02 -.23 -.05 .05 .11 -.09 -.33 -.02 -.19 .28 -.13 -.03 -.04 -.07 -.06 -.18 .31 .02 -.01 .07 -.04 -.03 .13 -.07 -.04 -.12 .00 -.02 29. 33. .22 .17 .18 .20 .07 .02 .12 -.05 .02 -.07 -.01 -.09 .01 .05 .11 -.01 .12 -.14 -.07 -.03 -.06 -.24 -.13 -.20 -.18 -.16 -.06 .14 -.02 .00 -.21 -.17 -.07 -.10 -.11 -.23 .01 -.09 .04 -.18 -.07 -.20 -.07 -.23 32. -.10 .11 .06 -.23 .17 -.05 .12 -.10 -.01 .09 -.21 -.21 .27 -.14 .10 -.11 .05 -.04 .15 -.08 -.17 -.08 34. .24 -.11 -.01 -.03 -.13 -.01 -.03 25. Interact intensit 26. Months of inter 27. Age difference 28. Gender diff -.23 -.20 -.08 -.17 32. Diff. interpers. re 33. Dif in individuali 34. Diff in collectivis .12 .01 .35 .14 .11 .01 -.11 .31 .02 -.03 3. -.08 4. 5. .15 -.04 -.18 -.09 -.23 .04 .09 .13 -.04 .05 .04 -.01 .07 -.07 .03 .12 -.10 -.12 -.34 -.10 -.02 .17 .16 -.04 -.15 .02 .16 .38 .13 .01 .30 6. 7. .05 -.11 -.10 -.17 -.07 -.21 .22 -.18 -.07 -.06 -.04 .04 -.29 -.09 -.10 .26 .12 .09 .02 .25 .17 .06 .19 .06 .11 8. .17 9. .10 -.14 .18 10. .27 .22 .14 .01 -.33 .00 -.02 -.03 -.13 -.19 -.09 .28 -.02 -.34 -.24 -.23 .02 -.02 .56 .14 -.01 .31 -.03 -.05 .00 .12 .11 -.06 .19 .02 -.14 .09 .13 .58 .03 .07 11. 12. -.21 -.21 13. .09 -.06 -.18 -.13 -.16 -.20 -.24 .46 .07 -.05 .05 -.23 -.02 .13 -.07 -.04 -.03 .02 -.08 -.11 .14 .15 -.14 .02 .39 .19 .63 .23 .64 14. 15. -.01 -.10 -.06 -.07 -.03 -.14 .08 -.14 -.29 -.07 -.20 -.02 -.18 .30 .21 .24 .06 -.30 .08 .03 .11 17. .12 -.05 .20 -.01 .12 18. .17 .02 .05 .06 .00 .16 -.02 -.14 -.05 .12 -.10 .04 .11 -.04 .10 -.13 .13 -.10 -.09 -.04 -.25 -.18 .00 -.32 .04 -.10 -.03 -.14 16. Correlations >.29 are significant at at the .01 level, correlations >. 22 are significant at the .05 level 2. -.07 -.07 31. Personality diff 1. .17 30. Demograp diff .25 .00 -.04 -.02 -.12 29. Education diff .15 .26 .11 24. No. of sup follo .19 .16 23. Le self enhanc 321 .09 .25 .00 .00 .09 .17 .07 19. -.23 20. .06 .07 -.09 .01 -.01 -.05 -.16 .16 .06 .13 .06 -.06 .12 .03 .07 -.26 1.0 .35 -.01 .05 .15 .00 .05 .02 .12 .06 .15 21. 22. 23. .11 -.10 -.17 -.07 -.05 .01 .02 -.14 .12 -.14 -.16 -.03 -.01 .01 .07 -.07 -.13 -.10 .13 .16 -.10 -.02 .09 -.18 -.25 .40 1.0 .10 .25 .05 .01 24. 25. 26. -.20 -.05 -.18 -.24 .56 .07 .03 .66 .05 27. .04 .16 28. .11 .00 .11 -.09 .02 -.04 -.06 .03 -.07 1.0 1.0 -.15 .07 -.17 -.15 .17 .07 1.0 -.05 -.17 .40 -.14 -.23 -.02 -.07 .04 -.02 .36 -.06 .00 -.13 .35 -.16 -.06 .05 -.16 -.14 -.05 .35 .10 1.0 -.01 -.02 .03 .02 .04 .01 29. -.07 .05 .12 .03 30. 31. .08 -.05 .12 -.14 .04 -.24 1.0 1.0 -.10 .44 -.20 .66 .56 -.06 -.20 -.10 .44 1.0 .05 .07 .25 -.07 -.04 .17 .36 -.02 -.14 -.14 .15 .06 .12 .05 .00 .16 .01 .05 32. .13 .13 1.0 33. .29 1.0 .13 -.24 -.14 .04 .12 -.09 .11 -.07 -.02 -.23 -.24 34. 1.0 .29 .13 -.05 .08 -.07 .11 .04 -.18 -.05 -.20 -.17 .21 -.13 -.01 24. No. of sup follo 25. Interact intensit -.11 -.14 27. Age difference 28. Gender diff .08 .15 -.21 -.31 26. Months of inter .18 .03 .08 -.04 -.03 .12 23. Le self enhanc .06 21. |Le agre .00 .02 .16 .14 22. Le harmony .24 -.33 -.31 18. Le neuroti -.02 .26 20. Le conscien .08 17. Le cult know 19. Le extrover .10 -.01 16. Le education .12 .16 .44 15. Le age .03 .24 -.13 .27 .21 -.01 Fo cult know 9. .07 .57 .54 14. LLMX leader Fo tenuren com 8. .63 .64 13. Fo harmony Interactio justic 7. .59 .24 Fo perc similar 6. .65 .26 .35 .30 LMX respect 5. .54 .64 1.0 .67 12. Fo conscienti LMX contribu 4. 2. 11. Fo extroversion LMX loyalty 3. .67 1.0 -.17 -.13 LMX affect 2. 1. 10. Fo neuroticism LMX follower 1. Intercultural dyds .03 .32 .47 .31 .17 1.0 .35 .64 -.05 -.21 .07 -.16 .13 -.04 .23 .23 .02 .22 -.21 .26 .10 .12 .25 .20 .06 .02 -.21 -.18 3. 5. .02 .58 .44 1.0 .29 .31 .59 .65 6. .09 .56 1.0 .44 .52 .47 .54 .64 .17 -.09 -.01 .12 .50 .52 .29 1.0 .17 .26 .54 .18 .40 .37 .17 .06 .06 .12 .05 .08 .07 .07 .15 .09 .17 .13 -.03 .03 .05 -.16 -.12 .32 -.08 .27 -.01 -.06 .09 .05 -.01 .14 -.09 -.05 -.20 .26 -.35 -.19 -.39 .33 .29 .18 .09 .22 .07 -.02 .08 .09 .30 .37 .12 -.07 .24 .25 .16 .40 .29 -.12 -.18 -.14 4. .11 1.0 .56 .58 .50 .32 .57 .63 8. .28 1.0 .11 .09 .02 .12 .03 .27 .07 .09 .16 .22 .23 .29 .12 .04 .08 .18 .36 .44 .08 -.23 -.19 -.32 .37 .07 -.04 .18 .01 -.38 .08 .06 -.05 -.12 .06 -.35 -.19 .35 .21 .19 .24 .05 -.14 .21 .37 -.05 -.11 -.02 7. 10. 1.0 .05 .08 .03 .05 .25 .19 .01 .00 .31 .00 .28 -.05 -.02 .26 -.17 -.07 -.29 -.17 .06 -.09 -.43 -.01 -.18 -.07 -.15 -.27 .03 .03 -.04 -.16 -.19 -.24 -.23 .11 -.48 -.04 -.47 .05 1.0 .28 -.11 -.02 -.05 -.01 -.14 -.09 -.18 .17 -.12 -.18 -.21 .03 -.13 -.13 -.17 9. .11 .09 .21 .09 .30 .40 .06 .16 .24 12. 1.0 .30 .15 .04 .30 .07 .00 .03 .22 .02 -.17 .04 -.07 .13 .17 .08 .01 .06 .26 -.01 -.13 .03 .26 -.07 .17 -.19 -.09 .14 .12 -.02 -.11 .16 .05 -.03 .30 1.0 -.47 -.48 -.04 .16 .37 .22 .37 .29 .02 .44 .30 11. -.18 -.16 .02 .02 -.12 .00 .12 .09 -.01 -.05 .00 .12 -.08 .08 .10 1.0 -.03 .05 -.23 -.24 -.14 .05 .18 .09 .16 .20 -.01 .21 13. .10 15. .07 .24 .12 .03 .29 .19 .08 .15 1.0 .55 .04 .22 .24 .54 .14 .29 -.25 -.05 -.25 -.16 .32 -.06 .12 -.05 -.28 -.05 .19 -.04 .11 .18 -.26 -.21 .30 .19 -.27 -.06 1.0 -.06 .10 .04 .16 -.11 -.19 -.04 -.16 .12 .24 .29 -.02 .08 .25 .25 .12 -.01 .24 14. Table 23: Correlations between follower LMX and antecedents, intercultural .22 .35 .40 .18 .33 .26 .16 .26 17. 1.0 .15 .55 .30 .12 .30 .14 .31 .34 .14 .41 .45 .09 .27 .15 -.10 -.02 -.28 .02 -.27 .06 -.15 -.14 .10 .25 -.26 .04 -.13 -.32 .15 1.0 -.27 .19 -.08 -.02 .12 .08 -.27 .03 -.15 .23 .21 .37 -.07 .12 .10 .14 .08 16. 322 .04 .06 .09 .14 .26 .22 .02 .24 19. .22 .17 .41 .04 .22 .18 1.0 .31 .10 .37 .28 -.05 -.09 .05 -.06 -.34 -.16 -.43 -.28 .12 -.44 -.20 -.11 -.26 -.13 -.13 1.0 -.13 -.32 -.13 -.21 -.26 .00 -.05 -.09 -.19 -.07 -.01 -.18 -.43 -.19 -.35 -.39 -.19 -.35 -.21 -.31 -.33 18. -.18 -.08 .01 .20 .01 .08 .12 .13 1.0 -.13 -.26 .14 -.26 .04 .11 -.01 .03 -.07 -.09 .06 -.12 -.05 -.01 .05 -.20 .02 .00 -.02 20. .08 22. .08 .08 .09 .06 .17 .23 .12 .07 .03 .03 .31 .10 .24 1.0 .28 .12 .31 .05 .17 -.24 -.09 -.27 -.01 -.14 -.12 -.37 -.06 -.28 -.38 .28 1.0 .13 .10 -.11 -.20 .34 .25 -.04 .19 -.05 .09 .00 .26 -.17 -.29 -.07 .18 .06 .17 -.05 -.09 .23 .12 -.04 .06 21. .27 .13 .18 .21 24. .36 .18 .07 .26 .13 .05 .27 .06 .29 .12 .01 .37 .05 1.0 .29 .27 -.15 .18 -.08 -.22 .34 -.08 -.67 1.0 -.67 -.38 -.28 -.06 .08 -.44 .12 -.28 -.14 -.15 -.28 -.05 .00 -.12 -.13 -.01 -.17 .26 -.02 -.38 .01 .15 .06 -.01 -.06 -.04 .03 -.03 23. .45 .02 .54 .32 .02 .01 .04 .00 .01 .44 .37 .08 .12 .32 .07 .08 .15 26. .01 .28 .17 1.0 .07 .29 .14 -.20 .08 -.19 .07 1.0 -.08 .34 -.22 -.37 -.12 -.14 .20 -.43 -.16 -.34 .09 -.27 .14 -.06 .02 .06 -.07 -.05 .28 -.04 .07 .07 .05 -.08 -.16 -.01 -.13 25. .32 1.0 -.19 .08 -.08 .18 -.01 -.27 -.08 -.06 .05 -.28 -.02 -.16 -.25 -.16 .08 -.17 .31 .19 -.32 -.19 -.12 -.16 .05 -.21 -.31 -.21 27. .05 29. .03 .20 .13 .18 .17 .06 .07 .08 .95 .49 .04 .23 .24 .49 .09 .17 1.0 -.01 .32 -.05 -.20 .14 -.15 .27 -.22 -.09 -.24 -.01 -.18 -.09 -.05 -.20 -.10 .15 -.24 -.05 -.25 -.12 -.18 .17 .02 -.18 .00 .25 -.03 -.23 .08 .03 -.02 -.03 .13 -.05 -.14 -.10 -.11 28. 32. .12 .10 .11 -.10 31. .09 .00 .32 -.06 .08 .22 .39 -.18 .03 -.03 .01 -.08 .11 -.10 .06 -.13 .60 .64 .12 .16 .00 .08 .35 .39 .44 .25 .12 .06 .06 -.17 .24 .09 -.32 .14 .11 -.19 -.36 -.26 -.24 -.01 -.09 -.39 -.19 .08 -.13 -.06 -.13 .12 -.10 .50 -.32 -.18 -.05 .25 .52 -.15 .41 -.07 -.12 -.10 .17 -.20 .04 .26 -.15 .20 -.20 .20 -.16 -.05 -.17 .04 -.06 -.08 .21 -.05 -.06 -.10 -.29 -.13 30. .18 .17 .13 .06 .19 -.16 .06 -.07 .07 -.08 -.18 -.15 -.05 .22 -.07 .09 -.13 .03 .16 .13 .12 .10 -.09 .01 .14 .11 -.04 -.03 33. .07 .18 .07 .22 -.05 .30 .02 -.26 .15 -.09 -.08 -.04 -.47 .21 -.11 .06 .04 .18 -.02 .15 -.27 .13 -.05 .10 .22 .06 .10 .10 34. -.03 -.04 .10 32. Diff. interpers. re 33. Dif in individuali 34. Diff in collectivis .10 .10 .13 3. .06 .11 -.10 -.06 -.05 .39 .22 .14 -.18 4. .03 -.02 5. .09 .08 6. .10 -.05 .01 -.09 .00 .22 .21 -.08 -.06 .20 .18 7. .12 8. .13 -.27 .10 -.06 -.17 .32 -.05 .04 -.16 .17 .16 .04 10. .15 -.02 .13 -.15 9. .20 .06 .26 -.20 .20 -.03 .52 .17 .08 11. .18 12. .04 .03 -.13 -.07 -.15 .41 -.20 -.18 .07 13. .06 .09 .25 -.10 -.12 .11 .50 .95 14. -.11 -.07 15. .21 .22 -.05 -.10 -.18 -.32 -.12 .03 .12 .49 17. -.47 -.04 -.05 -.15 -.08 -.03 .01 -.10 -.24 16. Correlations >.29 are significant at at the .01 level, correlations >. 22 are significant at the .05 level 2. -.10 31. Personality diff 1. .11 30. Demograp diff .12 .05 -.10 -.13 -.29 29. Education diff 323 .06 .08 .23 18. 19. -.08 -.09 -.18 -.08 -.13 -.13 -.06 -.13 -.20 .04 20. .15 .07 -.19 -.39 -.09 .11 .24 21. -.26 -.07 22. .02 .06 -.01 -.36 -.24 -.19 -.26 -.01 .09 .00 .17 .19 23. 24. .30 -.05 -.16 .35 -.32 .14 .08 -.22 .06 .12 .49 25. .22 .06 26. .07 .13 .39 -.17 .24 .16 .09 27. .18 .17 .06 .25 .64 -.05 .10 .61 1.0 28. .07 .18 29. .16 .25 .12 -.03 .44 .60 -.01 30. .23 .33 .07 .39 1.0 .61 1.0 .08 .07 31. 32. .30 -.01 .04 -.08 .08 1.0 .39 .10 -.03 33. .36 1.0 -.08 .04 .33 .25 34. 1.0 .36 -.01 .30 .23 .16 LLMX respect Leader perceived similarity Inrole performanc leader Leader cult knowle Le tenure in com 5. 6. 9. .11 .53 .47 .35 .21 .29 1.0 .48 23. .08 .48 .24 .12 .59 1.0 .29 .57 34. .52 .27 1.0 .28 .12 .35 .59 56. .46 1.0 .27 .28 .24 .47 .31 67. .03 .11 15. LMX follower .15 -.08 -.01 -.12 .12 -.01 -.17 -.14 -.06 .16 .10 .15 .04 -.03 -.12 -.25 -.30 -.19 -.03 -.12 -.21 -.23 .19 20. Follower neuroticis 21. Foll rextroversion 22. Followe conscienti 23. Follo agreeable 24. Follower harmony 25. Fol. self-enhancem 26. Interaction intensit .23 .33 .21 .17 .10 .07 .31 .22 .19 .21 .02 .11 .13 .13 .41 1.0 .31 .24 .12 -.04 .05 .15 -.08 -.06 .03 -.03 .15 .17 .31 .34 .19 .33 .41 .11 .11 .21 .29 .11 .34 .02 .14 .06 .33 .14 .09 .20 .15 .18 .34 .27 .05 .02 .09 .13 .08 .15 .04 .14 .15 .25 .51 .10 .33 .13 .13 .51 .27 .20 .13 -.55 .02 -.45 .13 -.47 .13 .02 .24 .39 1.0 .48 1.0 .39 .20 .08 .10 .11 .10 .24 .38 .07 .03 .12 .10 .08 .20 .12 -.03 1.0 .03 .13 -.15 .06 .11 .02 .03 .12 .11 .02 .16 .19 .11 .03 .02 .06 -.01 -.02 -.13 .22 .04 -.29 -.09 .47 -.31 .52 -.18 -.12 .40 -.08 -.03 .09 .01 -.03 .13 .05 -.15 -.18 .14 -.03 -.06 .08 -.05 -.23 .05 -.26 .15 .04 -.06 .05 -.08 .07 .13 .09 .17 .07 -.26 -.26 .00 .02 -.15 -.07 -.30 .22 -.16 .21 .04 .06 .09 .02 .04 .05 -.20 -.12 .10 .04 .03 .19 .10 -.18 -.01 -.17 .03 -.02 .05 .05 .08 .10 .03 .05 -.05 .13 -.03 -.01 .07 .08 -.12 .08 .04 -.05 .03 .02 -.01 .00 .12 -.63 -.38 -.08 .11 -.04 .08 .01 .06 .19 -.16 .17 .05 .15 -.04 -.11 .14 .07 .14 .39 -.15 -.04 .19 .11 -.21 .08 .10 -.09 .02 .07 -.12 .10 -.12 .20 -.03 .01 .00 .13 -.07 -.15 .18 -.27 -.14 .04 -.01 -.05 .07 -.05 -.16 .09 -.09 -.13 .00 -.02 -.01 -.02 .24 .12 .10 -.03 -.23 1.0 -.03 -.04 1.0 -.26 .14 -.33 .48 -.03 -.27 .24 -.12 -.03 .14 .28 .24 .16 .13 -.08 .09 .02 .33 .16 -.11 -.02 .13 -.21 -.01 1.0 .08 .14 -.07 .01 .29 .22 -.24 -.02 .13 .15 -.17 .18 -.14 .14 -.04 .02 .16 -.03 -.27 -.33 -.26 .07 -.11 .22 -.01 .24 -.24 .13 .12 .25 .34 .09 1.0 -.47 -.45 -.55 -.03 1.0 -.26 .06 .02 -.05 .29 -.25 -.34 -.15 -.20 .14 -.04 -.04 .04 -.31 .05 .15 .15 .34 -.04 .08 -.22 -.05 .34 -.01 -.19 .11 -.20 -.21 -.03 -.12 -.03 .12 -.15 .13 -.34 .13 -.04 -.25 .19 .06 -.10 -.19 .03 -.11 -.20 -.18 -.30 .21 -.09 -.09 -.05 -.13 .17 -.08 -.15 -.19 .13 .01 .11 -.11 -.12 -.16 -.23 .17 -.23 -.04 -.12 .11 -.06 -.21 .28 .10 .10 .11 .12 -.13 -.22 -.15 -.29 .23 -.12 -.04 -.09 .19 .01 -.03 -.01 .18 -.19 .07 -.30 .21 -.02 -.12 .02 .17 .31 .15 -.06 -.11 -.03 .06 -.16 .07 .08 .13 .04 -.12 .33 -.03 -.25 .15 .10 -.15 -.24 -.06 .06 -.03 .29 -.26 .07 1.0 1.0 -.12 1.0 -.03 -.24 .01 .10 .02 .01 .08 .22 .21 .10 .26 -.11 -.24 -.20 -.08 .52 -.06 -.05 -.05 .26 .19 -.06 -.08 .35 -.07 -.19 .10 -.04 -.14 -.17 .02 .08 -.03 -.19 .06 -.05 -.05 .01 .06 -.05 .33 -.11 -.01 .15 -.22 .35 1.0 .52 -.07 -.03 .11 .09 .11 .41 -.04 -.04 .09 .11 .31 -.02 .02 -.06 -.14 .13 -.08 -.23 -.03 -.18 .05 -.04 -.18 1.0 .25 .06 .15 -.06 -.19 -.24 -.12 .26 .00 .09 -.05 -.11 .05 .10 -.06 .21 -.12 -.21 -.10 -.09 .03 -.23 -.23 .04 .10 .05 .19 .17 .16 .12 -.01 -.10 -.05 -.04 -.06 .08 .15 -.08 -.26 -.06 .12 -.07 -.17 -.14 .08 -.08 .03 .19 .02 -.17 .02 -.14 -.01 .28 -.07 -.33 .21 -.02 .15 -.03 -.05 -.16 -.31 -.04 .19 -.06 .10 -.18 .28 -.20 -.06 .41 .13 -.18 -.04 .08 -.03 -.08 .08 -.24 -.24 .17 -.08 .05 1.0 1.0 -.11 .41 -.06 .11 -.23 -.06 .01 -.11 -.15 .26 .15 .05 -.04 -.04 .04 .25 -.11 -.08 .17 -.04 -.04 .01 -.02 -.06 .02 .01 .10 -.01 .18 .17 .08 .10 .10 -.04 -.09 -.14 .05 -.06 -.06 .09 .03 -.32 .10 -.05 -.10 -.06 -.02 .02 .06 -.14 .02 -.17 -.26 .20 .20 -.02 .15 -.04 -.06 -.11 .00 -.23 -.05 19. Followe cult know .08 -.10 -.21 .21 .02 -.33 -.07 -.08 .12 18. Follow educat lev .08 .22 1.0 -.62 -.34 -.04 -.32 .14 -.18 .17 -.34 .33 -.05 -.23 .03 .41 .19 .11 16. Inrole perfomance, .21 .28 follower 17. Follower age -.02 -.07 .11 .21 .05 -.01 .03 -.08 -.04 -.05 .31 -.03 -.06 .15 .12 -.01 .29 .24 .14 1.0 .22 -.05 -.18 -.62 .22 -.04 .15 .02 .07 -.20 -.02 .20 -.11 .03 14. No of supervis fol. .20 .01 13. Leader harmony .10 .08 .09 .03 -.10 -.05 -.13 12. Leader conscientio .25 .22 .02 .07 .10 -.20 -.04 .09 .03 -.11 .01 .08 .25 .08 1.0 -.13 -.32 -.05 -.01 -.05 -.01 -.05 1.0 -.02 -.05 -.33 .46 -.11 -.10 -.02 .03 -.09 .14 -.38 .08 -.02 -.31 .07 .14 .07 -.32 -.17 -.13 .08 -.16 -.22 -.23 .36 -.15 -.02 -.15 -.12 -.11 -.21 -.10 .04 -.24 .17 .06 -.11 -.01 .12 .00 .05 -.07 -.03 -.10 910. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 331. 332. 333. 334. 335. 3 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 .11 -.29 -.31 .00 89. .52 -.08 .55 .48 .53 .65 78. .03 -.08 -.11 -.02 .55 .28 .28 1.0 .59 .21 .68 45. -.32 -.31 -.31 -.38 -.09 -.02 -.33 -.32 .07 -.29 -.02 .00 .65 .31 .59 .68 .57 .48 1.0 12. 11. Leader extroversio 1. 10. Leader neuroticism 8. 7. LLMX loyalty LLMX contributio 4. LLMX affect 2. 3. LLMX leader 1. Chinese dyads Table 24: Correlations between leader LMX and antecedents, intracultural 324 -.16 -.05 -.14 -.15 -.10 -.03 -.07 34. Dif in individualis 35. Diff in collectivis .04 3. .18 4. .05 .13 5. .04 .00 6. .03 7. 8. .12 -.01 -.11 9. .06 .19 .10 .13 .14 .10 10. 11. .17 -.24 .07 .02 .08 .09 .05 .05 .01 .14 .02 -.26 -.23 -.06 -.18 .11 .19 12. 13. 14. 15. 16. 17. 18. 19. .15 .40 .09 .10 .04 .52 .47 .03 -.06 .13 .02 -.11 20. 21. 22. 23. .12 1.0 .07 .06 -.01 .22 -.02 -.12 .02 -.13 24. 25. 26. .52 .09 -.16 .44 .09 .68 1.0 1.0 -.16 .01 27. 28. 29. .05 .14 .13 30. .13 .00 .01 32. .09 -.04 .08 -.04 .12 -.23 31. .12 .01 .13 .08 .00 .14 33. .10 .07 1.0 34. .28 1.0 .07 1.0 -.23 -.04 1.0 -.09 .68 -.02 .52 -.03 .06 .07 -.01 .06 -.12 .44 -.15 .06 -.15 -.03 -.02 -.09 .06 -.09 .11 -.14 .01 1.0 .12 -.04 -.14 -.09 .08 -.13 -.17 -.08 -.10 .03 -.09 .36 -.23 -.22 -.16 .16 -.03 -.12 .05 .04 -.26 -.01 .15 .22 .11 .05 -.16 -.04 .21 .12 -.08 .07 .04 .14 -.04 .09 -.08 -.18 -.31 -.29 .01 -.30 .13 -.03 .05 -.08 .11 .11 -.21 -.04 .08 .02 -.04 .08 .03 -.02 .03 -.63 -.20 -.15 .12 .06 .06 -.02 -.38 -.12 -.07 .05 .17 -.16 .19 .38 -.02 .17 -.26 -.05 -.03 -.15 .00 .04 .05 .06 -.23 .04 -.10 -.21 -.11 -.12 -.15 -.02 -.15 .04 -.17 .08 -.01 -.01 .03 .39 .28 -.08 -.03 .13 -.15 .19 .24 .07 -.15 -.04 .07 -.03 -.18 .08 -.02 .02 -.12 .05 -.01 .00 .08 -.05 -.05 .03 .00 -.13 .02 .20 .16 .03 -.03 .01 Correlations >.29 are significant at at the .01 level, correlations >. 22 are significant at the .05 level 2. -.05 -.01 -.27 -.07 33. Diff. interpers. rel 1. .07 32. Personality diff .00 .08 -.07 .10 -.02 .24 .29 .07 -.12 -.09 -.01 .01 -.23 -.13 -.30 -.09 -.12 .09 -.29 31. Demographic diff .11 -.16 -.05 -.18 -.15 30. Education diff .10 .12 .06 -.08 -.12 -.22 -.09 -.12 -.09 -.20 -.19 -.19 .03 29. Gender diff .21 28. Age difference .11 .12 -.12 -.13 -.04 -.11 -.09 -.11 -.10 -.15 27. Months of interacti 325 35. 1.0 .28 .10 -.04 .09 .13 .05 -.10 -.08 LLMX affect LLMX loyalty LLMX contributio LLMX respect Leader perceived similarity Inrole performanc leader Leader cult know Le tenure in comp 2. 3. 4. 5. 6. 9. .37 .48 .61 .18 .52 1.0 .71 23. .30 -.01 .40 .53 .65 .42 .69 .71 1.0 12. .45 .48 .32 .43 .28 1.0 .52 .69 34. -.05 -.19 -.11 -.06 -.18 -.15 -.20 -.03 -.23 .17 -.09 .03 -.13 .12 .06 .05 -.22 -.07 .09 19. Followe cult know 20. Follower neuroticis .35 .12 1.0 .46 .21 .32 .48 .53 67. .27 1.0 .12 .38 .00 .48 .01 -.26 21. Fol extroversi 22. Followe conscienti 23. Foll agreeablen 24. Follower harmony 25. Fol. self-enhancem 26. Interaction intensit .28 .01 .03 .10 .14 .04 .18 .33 .00 .13 .23 -.28 .09 .09 .10 .02 .07 .28 .01 .00 .06 .06 .03 -.14 .15 -.23 .15 -.11 .28 .11 .19 .30 .08 -.02 .12 .03 .16 .07 .08 1.0 .16 .29 .17 -.24 -.06 .29 -.09 .35 .29 1.0 1.0 -.11 .11 .18 .16 .05 .12 .23 .25 .33 .23 -.05 .31 .00 .19 .08 .18 .28 -.08 -.06 .17 .16 .26 .13 .26 .01 .10 .10 .08 -.06 -.05 -.02 .01 -.09 -.11 .03 .38 .07 .16 1.0 .08 .17 -.09 .20 .17 .31 1.0 .16 .20 .16 .11 1.0 .31 .07 .28 .05 1.0 .11 .17 .38 .07 -.06 -.07 .20 .49 .33 .26 .11 .02 .06 .06 .21 .02 .03 -.43 .13 -.49 .05 .01 -.07 .27 -.03 -.04 -.02 .15 .28 .25 .10 .08 .01 -.06 .19 -.19 .06 -.10 -.10 -.11 .00 .32 .13 .36 1.0 .30 .09 -.08 .01 .09 .05 .24 .07 1.0 1.0 -.14 .06 -.07 .07 .05 .15 .07 1.0 .07 .01 -.05 .01 -.11 .06 .20 .02 .11 .05 .13 .10 .13 .05 -.21 -.22 -.19 -.26 .04 .28 -.15 .10 -.04 .29 .57 -.16 -.01 .50 -.18 -.17 .38 -.18 .14 .26 -.25 .04 -.13 -.26 -.17 -.13 .03 .19 .05 -.23 .23 .05 .46 -.17 -.27 .11 .14 -.29 .17 -.18 .13 .13 -.01 -.04 -.08 -.07 .07 -.09 .07 .11 -.04 .09 .22 .36 -.10 .13 .24 -.17 -.22 .24 -.16 .18 -.36 -.08 .01 -.36 -.14 .18 1.0 .00 .01 -.02 -.04 -.01 .00 -.07 .36 -.07 .43 .04 .06 -.19 -.48 .08 -.12 -.13 -.08 .20 -.06 -.14 .23 -.12 -.07 .02 .06 -.17 -.07 .03 -.12 -.21 -.15 -.43 -.26 .29 -.02 -.28 -.07 -.21 .19 .08 .28 .09 .10 .06 .04 -.05 .20 -.25 .06 -.03 -.05 -.01 -.10 -.13 -.13 -.01 -.23 .27 .11 .26 .03 -.31 -.25 -.04 .06 -.03 .08 -.15 .15 .14 .19 -.01 .19 .18 .20 -.14 .06 .09 -.06 .30 -.14 -.25 -.17 .09 .49 .22 .27 .10 -.06 .09 .03 -.01 -.07 -.23 .00 -.02 -.01 -.09 .02 -.02 -.03 .19 .25 -.08 -.06 .15 .08 .46 -.33 -.18 .13 -.07 -.10 .11 -.12 -.27 -.13 -.28 -.23 -.30 .05 -.07 .30 .31 .30 .03 .01 -.01 .13 -.05 .08 -.04 .38 -.05 -.08 -.12 -.14 -.14 -.09 .01 -.04 -.06 -.03 -.21 -.06 .00 .09 .08 -.26 -.23 -.19 .21 -.27 -.14 -.08 .16 -.16 -.17 -.19 -.30 -.07 .46 .20 -.23 .12 -.11 -.02 -.19 -.16 .26 -.01 -.05 .00 -.07 .43 .30 1.0 .15 .09 .12 -.23 .01 -.10 -.04 .02 -.06 .12 -.07 .09 -.22 .24 -.08 -.27 -.09 -.05 .28 .01 .06 .00 .07 .25 .10 1.0 -.51 -.49 -.43 -.22 .02 -.51 .06 -.25 .11 .33 .28 .14 .10 .01 -.03 1.0 -.07 .00 .28 -.20 .01 -.07 .00 1.0 .05 .20 -.27 .20 -.17 -.17 .03 -.03 .16 .04 .11 .11 .06 -.14 -.05 .13 -.03 -.05 .08 -.03 -.31 -.22 .15 .19 .03 .28 .14 .11 -.28 -.10 -.02 .12 -.38 -.03 .11 -.15 .54 -.02 .16 -.20 -.28 .14 -.08 -.12 .11 -.03 .14 -.15 .19 -.14 .18 .22 .28 .09 -.25 -.01 .09 -.14 .30 .27 .14 .02 -.17 -.27 -.20 .00 -.21 -.06 -.17 .00 -.03 .12 -.05 -.06 -.08 -.02 -.01 -.04 -.06 .24 -.10 .21 -.05 .11 -.03 -.14 -.05 .04 -.28 .29 .09 -.01 .03 -.29 -.03 -.14 .09 .18 -.17 .18 .04 .10 .33 .02 -.06 -.03 -.20 .22 .09 -.09 -.13 .22 -.11 -.20 -.22 .18 -.19 -.15 .03 -.09 -.24 -.04 -.07 .35 .06 -.03 -.03 -.17 .12 -.07 .54 -.15 -.38 .10 -.27 .25 .278 .01 .11 .12 -.04 -.10 -.19 .12 -.06 -.10 -.10 .25 .14 .22 .38 .13 .01 .18 -.04 -.09 -.04 -.07 .19 -.14 .16 -.17 .18 .08 .25 -.05 -.26 .31 .29 .05 -.01 .44 .08 -.25 -.11 .30 -.02 -.28 .12 .20 -.13 .05 -.01 -.08 .22 .20 .04 -.04 -.15 1.0 -.22 -.25 -.28 -.28 -.26 -.14 -.04 .38 -.20 -.22 .09 -.29 -.08 -.20 .09 .33 .05 -.06 .18 -.08 .17 .05 .29 -.01 .44 .03 -.24 .19 -.14 -.11 1.0 -.05 -.20 1.0 -.17 -.25 .27 -.30 -.25 .35 -.31 -.02 .13 -.05 -.31 .29 .45 -.38 -.26 .08 -.08 .12 -.27 .05 .09 -.01 .14 .05 .14 -.07 .18 -.05 .18 .01 -.02 .12 -.10 -.04 .15 -.13 .01 -.19 -.02 -.01 -.04 .12 10. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 331. 332. 333. 334. 335. 3 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 .30 -.33 -.24 .21 .10 -.02 .10 .18 .04 .15 -.05 -.18 -.23 .17 .03 .12 .06 .05 .09 .32 -.10 -.22 -.26 -.32 -.19 -.03 -.09 -.09 89. .37 -.01 -.24 .40 78. .09 -.22 -.20 -.01 -.03 -.12 -.28 -.02 .02 .22 .18 .15 18. Follow educat lev .12 .23 .04 -.15 .16 16. Inrole perfomance, follower 17. Follower age .26 .16 .18 -.04 .20 15. LMX follower .04 .10 .20 -.01 14. No of supervis fol. .03 -.14 .10 .05 -.02 -.24 -.11 -.13 -.08 .22 13. Leader harmony .19 12. Leader conscientio .21 -.08 11. Leader extroversio .13 .38 .46 1.0 .29 .43 .61 .65 56. .01 -.05 -.31 -.30 -.17 .29 .00 .21 .29 1.0 .28 .18 .42 45. .08 -.26 -.26 -.31 -.02 -.25 -.25 -.05 -.24 -.33 -.24 -.38 1. 10. Leader neuroticism 8. 7. LLMX leader 1. Intercultural dyads Table 25: Correlations betwee leader LMX and antecedents, intercultural 326 -.32 -.23 -.08 -.30 -.14 -.13 -.19 -.19 -.03 -.09 -.04 -.05 -.01 -.09 32. Personality diff 33. Diff. interpers. rel 34. Dif in individualis 35. Diff in collectivis .13 37. 38. 39. 40. 41. 42. 43. .01 -.13 .03 -.30 -.09 -.23 .23 .09 .20 .28 .08 .08 .06 .14 45. 46. .15 -.04 -.10 .06 -.05 -.07 .05 47. 48. .12 -.02 .02 .46 49. .01 -.01 .07 -.21 -.13 .05 -.07 -.13 .07 -.28 -.10 50. 51. .18 -.05 .23 -.05 -.27 .01 .29 -.05 .06 -.04 .24 .13 52. 53. .18 -.07 .10 54. .14 .05 .11 55. .05 .11 .50 .20 .19 .13 .05 -.01 .43 1.0 57. .14 -.01 58. .09 .10 59. 60. .05 -.27 .14 .09 .06 .55 61. .12 62. .08 .15 63. .08 .16 .28 -.27 -.15 .13 .04 -.04 -.15 .29 .57 -.13 -.26 .06 -.17 -.19 -.07 .43 .53 1.0 .22 .38 1.0 .53 .60 .55 .09 .05 64. 65. .12 -.05 .11 .08 .02 1.0 66. .11 68. 69. .31 1.0 1.0 -.17 .22 -.09 67. .20 .05 .11 .16 .15 .02 -.02 .38 -.08 .43 -.04 .22 .06 -.15 .14 -.27 .20 -.02 -.17 .08 -.04 -.08 .22 .60 .22 1.0 1.0 -.16 -.11 .43 -.21 -.19 .03 -.26 -.22 -.08 -.19 -.11 .02 -.17 -.01 56. .04 .15 -.16 -.09 .07 -.04 -.13 -.21 -.04 -.21 -.16 .09 .07 .14 -.18 -.18 -.16 .38 .17 -.23 .26 -.18 .13 .05 .36 -.22 .22 -.10 .13 .00 -.02 -.01 -.07 -.01 -.17 .19 .01 -.17 -.11 -.23 -.25 .11 .04 -.08 .04 -.17 -.26 -.48 -.29 .06 -.43 -.19 .10 -.15 .02 -.06 -.21 -.07 -.14 -.13 .20 -.03 44. .03 .15 -.08 -.12 -.12 -.06 -.12 .09 -.02 .19 .01 -.09 -.23 -.01 -.07 -.25 .12 -.04 -.01 -.02 -.19 .08 .03 .09 -.07 -.14 -.28 -.02 -.01 .00 .08 .25 .32 -.06 Correlations >.29 are significant at at the .01 level, correlations >. 22 are significant at the .05 level 36. -.26 -.26 -.14 -.19 -.12 -.27 -.10 -.18 31. Demographic diff .05 -.19 .46 -.07 -.16 .30 30. Education diff .13 .31 .08 -.27 -.17 -.08 -.12 -.07 -.33 .11 .30 -.22 .38 29. Gender diff .16 .21 -.16 -.05 .46 28. Age difference .20 .32 -.10 -.23 27. Months of interacti 327 70. 1.0 .31 -.09 .22 .11 -.05 .12 .08 .08 22. Def. of job breadth .05 .09 23. Follower ren qin .10 -.03 24. LMX X OCB .66 .51 25. LMX X Renqin .75 .43 Correlations > .23 significant at the .05 level -.01 .12 .43 .57 -.01 .10 .37 .49 .02 .10 .48 .55 .34 .01 .38 .15 .04 -.09 .12 .04 .37 -.05 .54 .24 .38 -.02 .59 .31 .13 .07 .21 .16 .17 .04 .36 .25 -.12 .15 -.06 .11 .08 .06 .05 -.00 -.02 .04 -.13 -.10 -.07 -.19 -.11 -.16 -.04 .03 -.15 -.13 -.16 .12 -.25 -.05 .06 -.07 .25 .17 .13 -.03 .25 .17 .10 .23 .07 .17 -.12 -.25 -.18 -.27 1.0 -.10 .77 -.03 -.10 1.0 -.01 .72 .77 -.01 1.0 .46 -.03 .72 .46 1.0 Chinese dyads 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 1. LMX, follower persp. 1.0 .68 .70 .62 .73 .22 .13 .38 .46 .15 .34 .05 -.08 -.15 -.08 -.19 -.17 .30 .25 .03 -.14 .05 .10 .66 .75 2. LMX affect .68 1.0 .38 .27 .70 .14 -.01 .45 .47 .20 .33 .09 .06 .01 -.19 -.04 -.26 .31 .22 -.09 -.00 .09 -.03 .51 .43 3. LMX loyalty .70 .38 1.0 .34 .35 .05 .12 .28 .35 .04 .15 .14 -.13 -.28 -.03 -.21 -.10 .13 .01 .09 -.13 -.01 .12 .43 .57 4. LMX contribution .62 .27 .34 1.0 .35 .23 .21 .11 .27 -.00 .27 -.04 -.04 .08 -.11 -.20 .03 .16 .16 .01 -.14 -.01 .10 .37 .49 5. LMX respect .73 .70 .35 .35 1.0 .18 .10 .43 .45 .27 .27 .08 -.00 -.06 -.02 -.09 -.20 .28 .27 -.13 -.11 .02 .10 .48 .55 6. OCB, follower persp. .22 .14 .05 .23 .18 1.0 .15 .24 .39 -.06 .51 -.32 .05 .27 -.02 .13 -.31 .28 .48 .21 -.32 .34 .01 .38 .15 7. LOCB leader persp. .13 -.01 .12 .21 .10 .15 1.0 .22 .25 .02 .16 -.27 .01 .32 -.02 -.09 .06 .10 -.05 .07 -.21 .04 -.09 .12 .04 8. Organisational justice .38 .45 .28 .11 .43 .24 .22 1.0 .86 .21 .49 -.12 .07 -.03 -.02 -.17 -.34 .26 .24 .04 -.12 .37 -.05 .54 .24 9. Perceived org. support .46 .47 .35 .27 .45 .39 .25 .86 1.0 .09 .62 -.14 .06 .04 -.01 -.13 -.38 .30 .38 .05 -.18 .38 -.02 .59 .31 10. Job satisfaction .15 .20 .04 -.00 .27 -.06 .02 .21 .09 1.0 -.04 .04 -.01 -.18 -.02 -.04 .01 .07 -.03 -.03 -.00 .13 .07 .21 .16 11. Org-based self-esteem .34 .33 .15 .27 .27 .51 .16 .49 .62 -.04 1.0 -.14 .20 .26 -.19 .05 -.46 .26 .60 .15 -.19 .17 .04 .36 .25 12. Leader neuroticism .05 .09 .14 -.04 .08 -.32 -.27 -.12 -.14 .04 -.14 1.0 -.15 -.18 -.11 -.13 .12 -.14 -.23 -.04 .12 -.12 .15 -.06 .11 13. Leader agreeableness -.08 .06 -.13 -.04 -.00 .05 .01 .07 .06 -.01 .20 -.15 1.0 -.00 -.16 -.00 -.13 -.12 -.04 -.12 .02 .08 .06 .05 -.00 14. Follower age -.15 .01 -.28 .08 -.06 .27 .32 -.03 .04 -.18 .26 -.18 -.00 1.0 -.30 .34 .02 -.01 .05 .12 -.06 -.02 .04 -.13 -.10 15. Follower gender -.08 -.19 -.03 -.11 -.02 -.02 -.02 -.02 -.01 -.02 -.19 -.11 -.16 -.30 1.0 .02 .14 .06 .02 -.22 .07 -.07 -.19 -.11 -.16 16. Follower time in posit -.19 -.04 -.21 -.20 -.09 .13 -.09 -.17 -.13 -.04 .05 -.13 -.00 .34 .02 1.0 .02 -.05 -.02 .04 -.10 -.04 .03 -.15 -.13 17. Follower neuroticism -.17 -.26 -.10 .03 -.20 -.31 .06 -.34 -.38 .01 -.46 .12 -.13 .02 .14 .02 1.0 -.50 -.51 .02 .11 -.16 .12 -.25 -.05 18. Follower agreeableness .30 .31 .13 .16 .28 .28 .10 .26 .30 .07 .26 -.14 -.12 -.01 .06 -.05 -.50 1.0 .37 .10 -.31 .06 -.07 .25 .17 19. Follower conscientious .25 .22 .01 .16 .27 .48 -.05 .24 .38 -.03 .60 -.23 -.04 .05 .02 -.02 -.51 .37 1.0 -.06 -.13 .13 -.03 .25 .17 20. Follower collectivism .03 -.09 .09 .01 -.13 .21 .07 .04 .05 -.03 .15 -.04 -.12 .12 -.22 .04 .02 .10 -.06 1.0 -.67 .10 .23 .07 .17 21. Follower individualism -.14 -.00 -.13 -.14 -.11 -.32 -.21 -.12 -.18 -.00 -.19 .12 .02 -.06 .07 -.10 .11 -.31 -.13 -.67 1.0 -.12 -.25 -.18 -.27 Table 26: Correlations between OCB and antecedents, intracultural 328 329 LMX, follower persp. LMX affect LMX loyalty LMX contribution LMX respect OCB, follower persp. LOCB leader persp. Organisational justice Perceived org. support Job satisfaction Org-based self-esteem Leader neuroticism Leader agreeableness Follower age Follower gender Follower time in posit Follower neuroticism Follower agreeableness Follower conscientious Follower collectivism Follower individualism Def. of job breadth Follower ren qin LMX X OCB LMX X Renqin 1. 1.0 .43 .59 .50 .51 .33 .04 .34 .28 .09 .23 -.25 -.00 -.02 -.04 .04 .00 .07 .04 .04 -.06 .09 -.04 .45 .62 2. .43 1.0 .09 .11 .42 .32 .11 .39 .35 -.09 .42 -.18 -.11 .09 -.18 -.15 -.09 .23 .21 -.05 -.01 -.18 -.11 .01 .18 Correlations > .30 significant at the .05 level 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Intercultural dyads 3. .59 .09 1.0 .25 .11 .02 .04 .09 .03 .21 .06 -.28 .24 -.03 -.01 .16 .02 -.05 -.11 -.09 .13 .07 .30 .28 .62 4. .50 .11 .25 1.0 .32 .31 .02 .27 .31 .18 .20 -.35 -.08 .35 -.03 .05 -.15 .31 .15 .23 -.23 .10 -.00 .25 .33 5. .51 .42 .11 .32 1.0 .37 .11 .56 .54 .12 .32 -.14 -.17 .11 -.03 -.14 -.11 .33 .28 .13 -.33 .03 -.02 .23 .32 6. .33 .32 .02 .31 .37 1.0 .13 .41 .55 .15 .64 -.34 -.18 .18 -.08 -.32 -.17 .01 .36 .10 -.10 .23 -.02 .34 .19 7. .04 .11 .04 .02 .11 .13 1.0 .35 .39 -.21 .03 -.32 -.26 -.13 -.02 -.12 .09 .01 -.27 .26 -.33 -.11 .23 -.09 .21 8. .34 .39 .09 .27 .56 .41 .35 1.0 .78 .10 .47 -.41 -.06 -.02 .17 -.28 -.07 .21 .32 .13 -.35 .11 .12 .21 .33 9. .28 .35 .03 .31 .54 .55 .39 .78 1.0 .10 .62 -.39 -.26 .06 .12 -.24 -.11 .26 .35 .09 -.36 .12 .02 .19 .21 .09 -.09 .21 .18 .12 .15 -.21 .10 .10 1.0 .22 .08 .18 .06 .19 -.35 -.16 .17 .26 .11 -.06 .20 .25 .21 .24 10. .23 .42 .06 .20 .32 .64 .03 .47 .62 .22 1.0 -.28 -.12 .26 -.10 -.26 -.36 .27 .57 -.03 -.07 .04 .17 .11 .28 11. Table 27: Correlations between OCB and antecedents, intercultural -.25 -.18 -.28 -.35 -.14 -.34 -.32 -.41 -.39 .08 -.28 1.0 -.03 .03 .03 -.02 -.38 -.04 .04 -.05 -.02 .01 -.18 -.05 -.30 12. -.00 -.11 .24 -.08 -.17 -.18 -.26 -.06 -.26 .18 -.12 -.03 1.0 -.34 -.12 -.06 -.19 .21 .02 -.32 .41 .01 .08 .05 .03 13. -.02 .09 -.03 .35 .11 .18 -.13 -.02 .06 .06 .26 .03 -.34 1.0 -.25 .31 -.33 .12 .14 .14 -.24 -.24 -.03 -.24 -.03 14. 330 -.04 -.18 -.01 -.03 -.03 -.08 -.02 .17 .12 .19 -.10 .03 -.12 -.25 1.0 -.11 .52 -.04 -.13 .10 -.03 .14 .25 .12 .18 15. .04 -.15 .16 .05 -.14 -.32 -.12 -.28 -.24 -.35 -.26 -.02 -.06 .31 -.11 1.0 .02 -.09 -.41 .10 .05 -.36 -.06 -.34 -.02 16. .00 -.09 -.02 -.15 -.11 -.17 .09 -.07 -.11 -.16 -.36 -.03 -.19 -.33 .52 .22 1.0 -.49 -.62 .13 .10 .14 .01 .13 .03 17. .07 .23 -.05 .31 .33 .01 .01 .21 .26 .17 .27 -.04 .21 .12 -.04 -.09 -.49 1.0 .30 .05 -.28 -.22 .07 -.16 .08 18. .04 .21 -.11 .15 .28 .36 -.27 .32 .35 .26 .57 .04 .02 .14 -.13 -.41 -.62 .30 1.0 -.26 .02 .13 -.07 .14 -.04 19. .04 -.05 -.09 .23 .13 .10 .26 .13 .09 .11 -.03 -.05 -.32 .14 .10 .10 .13 .05 -.26 1.0 -.72 -.02 .44 -.00 .38 20. -.06 -.01 .13 -.23 -.33 -.10 -.33 -.35 -.36 -.06 -.07 -.02 .41 -.24 -.03 .05 .10 -.28 .02 -.72 1.0 .02 -.26 .00 -.26 21. .09 -.18 .07 .10 .03 .23 -.11 .11 .12 .20 .04 .01 .01 -.24 .14 -.36 .14 -.22 .13 -.02 .02 1.0 -.00 .92 .07 22. -.04 -.11 .30 -.00 -.02 -.02 .23 .12 .02 .25 .17 -.18 .08 -.03 .25 -.06 .01 .07 -.07 .44 -.26 -.00 1.0 .00 .76 23. .45 .01 .28 .25 .23 .34 -.09 .21 .19 .21 .11 -.05 .05 -.24 .12 -.34 .13 -.16 .14 -.00 .00 .92 .00 1.0 .31 24. .62 .18 .62 .33 .32 .19 .21 .33 .21 .24 .28 -.30 .03 -.03 .18 -.02 .03 .08 -.04 .38 -.26 .07 .76 .31 1.0 25. 331 332 APPENDIX 4: DIFFERENCES IN INDIVIDUALISM AND COLLECTIVISM BETWEEN WESTERN AND CHINESE LEADERS Previous research indicates that Chinese respondents should score higher on collectivism and lower on individualism than the Western respondents (see the discussion in section 2.3). As the measures of values were mean-centred in the present study to control for personal and cultural response style following the suggestions of Schwartz (1992), these values are comparable. However, in order to control for demographic factors and the possible influences caused by position, only leader responses are compared (as all the followers are Chinese). Furthermore, as there were significant differences between Western and Chinese leaders in age and gender and as these factors have been linked to values in previous research these factors were included as covariates in the analyses of covariance. In addition to examining differences in individualism and collectivism between Western and Chinese leaders, differences in the subscales of individualism, namely self-enhancement and openness, will be examined. A t-test did not reveal significant differences in individualism between Chinese leaders (mean = -.298) and Western leaders (mean = -.219). However, an analysis of covariance including leader age and gender as covariates indicated that the cultural background of the leader had a significant effect (F = 6.459, p = .012) as well as the leader age covariate. Chinese leaders scored lower on individualism (adjusted mean = -.326) than Western leaders (adjusted mean = -.151). These means were estimated at leader age = 37.1 and gender 1.13, which are the means of the sample. The remaining values will be estimated at the same leader age and gender means and will not be re-reported. The analysis of the interaction term between leader cultural background and covariates indicated the slopes were relatively equal regarding gender, but the age covariate produced a significant interaction effect. The differences in individualism are hence likely to vary at different ages and this difference is mainly related to the mean age, i.e. 37. However, these results provide general support for the assumption that Chinese leaders score lower on individualism. In order to explore differences in individualism further, the subscales of individualism were compared. The t-test revealed significant differences in self-enhancement between Chinese and Western leaders. The mean for Chinese leaders was -.234 and Western leaders -.522. However, when the analysis of covariance was conducted with leader age and gender as covariates, the effect of cultural background became non-significant (F = .298, p = .586), whereas gender and age were significant covariates. Chinese leaders obtained an adjusted mean for self-enhancement of -.311 and Western leaders an adjusted mean of -.362. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. The t-test also revealed significant differences in openness between Chinese and Western leaders. The mean for Chinese leaders was -.408 and Western leaders .215. In the analysis of covariance including leader age and gender as covariates, the effect of cultural background remained significant (F = 22.168, p = .000), as well as the gender covariate. Chinese leaders obtained an adjusted mean of openness of -.359 and Western 333 leaders an adjusted mean of .139. The analysis of the interaction terms between leader cultural background and covariates indicated that the slopes were relatively equal. Concerning collectivism, the t-test revealed significant differences in collectivism between Chinese and Western leaders. The mean for Chinese leaders was -.168 and Western leaders -.06. However, in the analysis of covariance including leader age and gender as covariates, the effect of cultural background became non-significant (F = 1.182, p = .278) whereas age was positive significant. Chinese leaders obtained an adjusted mean of collectivism of -.101 and Western leaders an adjusted mean of -.170. The analysis of the interaction term between leader cultural background and covariates indicated that the slopes were relatively equal. In sum, it can be concluded that Chinese leaders score significantly lower on individualism than Western leaders (especially with regard to the openness subfacet) whereas large differences in collectivism could not be detected. 334 APPENDIX 5: REGRESSION TABLES; ANTECEDENTS OF LMX The results of the hierarchical regression analyses pertaining to the antecedents of LMX will be presented in tables with the following format: the first column lists the independent variables entered at each step, the second column presents the results (beta weights) of regressing the first mediator (perceived similarity) on relevant LMX antecedents, the second column the results of regressing interactional justice on various antecedents, and the following 6 columns the results obtained at each step after adding different groups of antecedents. The mediating role of similarity can be examined by comparing the results obtained at Step 4 and Step 5 (in addition to examining the direct effect of various antecedents on similarity) and the mediating role of justice by comparing the results obtained in the last two columns, i.e. the results obtained at steps 5 and 6. As a further aid to determine the relative importance of various antecedents of LMX, the backward deletion method was used at the last step. The variables that were retained at the final step of the backward deletion procedure are marked in the last column. All variables that correlate significantly with the dependent variable are also marked in the last column. Furthermore, the significant variables that obtain inconsistent beta signs at different steps or signs that differ from the ones obtained in the correlation matrix are marked. Very significant beta weights obtained despite very low correlations (r <.1 , p > .6) are also marked as these could be indicators of potential multicollinearity problems. It should be noted that the order of the variables in the tables does not reflect the order of the hypotheses. This is due to the fact that the hypotheses developed in Chapter 3 are ordered according to the presentation of the general personal characteristics, during which hypotheses for both leader and follower LMX involving both leader and follower personal characteristics were developed. However, in the regression models, leader and follower personal characteristics were treated as separate groups. As an example, leader extroversion and follower extroversion are separate factors that belong to different blocks of antecedents, but extroversion as a construct is the same for both leaders and followers. The hypotheses were developed based on the common extroversion construct while specifying its impact on leaders and followers instead of discussing extroversion separately for leaders and followers. Separate discussions for leaders and followers would have lead to a largely repEtitive presentation of the extroversion factor and other personal characteristics. However, as it of interest to determine the extent to which leader versus follower personal characteristics determine the quality of follower LMX quality, they were entered into the regression models as separate blocks. a) Follower LMX in intercultural dyads On the following pages, six tables are inserted. The first table reports the result obtained for overall follower LMX quality in intercultural dyads, and the following four tables the results obtained for the affect, loyalty, contribution, and professional respect dimensions. The sixth table summarises the results obtained for overall LMX and its 335 dimensions, including the mediating variables. After the tables presenting the results obtained for overall LMX and each dimension, the results are summarised in one table. 336 Table 28: Results of regression analyses for follower LMX in intercultural dyads a Independent variables Step1: Follower characteristics Time in company Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony R2 F Step 2: Leader characteristics Age Education No. of supervised followers Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Gender difference Education difference Age difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b Follower LMX; intercultural dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .232 -.223 .042 -.021 .003 .252†☻ .083 .782 -.201m -.143☻ .402*☻m .306*☻r+ .284†☻ -.096 .201 2.181† .089 -.121 -136 .267* .239† .217 .182 1.98† .136 -.251† .091 .108 .233† .242† .099 -.318† .244 .038 .351† .306* .100 -.318† .245 .038 .350† .306* -.068 -.171 .209 .049 .361* .144† .032 -.100 .009 -.103 .220†☻ .192† -.349m .330†☻ .315 .171☻r++ -.401*☻ .106 -.173 .005 .124 .675* .396 3.18** -.092 -.084 .125 .053 r++ .097 r--.418*m .006 .047 .075 .098 .229 1.68 .106 .087 .381 -.193 -.263† .143 -.064 .100 .103 .572* .152 0.96 .580 .084 .266 -.224 -.497** .578 .084 .267 -.225 -.495** .162 -.219 .123 -.044 .772* .824 -.127 .051 -.320 -.255† .101 -.116 .133 -.155 .331 .870☻m -.085 -.011 -.347†☻m r+ -.303* r.309*☻ r+ -.119 .110 -.192 .282 .211 -.279†m -.075 -.050 .319 -.081 .050 -.001 -.258 .048 .375 -.163 m .445*r++ -.268* .067 .115 .132 -.057 .212r+ .037 .129 1.07 -.078 -.133 -.171 -.120 -.388 -.021 .013 -.026 -.370* -.233 .084 -.122 -0.97 -.642 .041 -.019 -.049 -.211 -.141 -.137 .011 -.130 -.699†☻m -.025 .010 -.154 -.230† m .007 .000 0.00 -.074 -.100 .052 .007 .553 .524**☻ .128 12.9*** .527 .168 1.45 .694 .427 2.603** .163 -.220 .124 -.047 .772* -.078 -.130 -.171 -.120 -.392* -.020 .013 -.029 -.371* .143 1.01 . 655*** .199 19.1*** .394**☻ r++ .497**☻ r++ .076 9.16** .752 .521 3.26*** 337 Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 338 Table 29: Results of regression analyses for follower affect in intercultural dyads a Independent variables Step1: Follower characteristics Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Leader characteristics Cultural knowledge No. of supervised followers Neuroticism Extroversion Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b Follower affect; intercultural dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .232 -.223 .042 -.021 .252†☻ .083 .782 -.201m -.143☻ .402*☻m .306*☻r+ -.096 .201 2.181† .221* -.022 .115 .459*** .022 .247 3.48** .319* -.224 .154 .392** .021 .360* -.202 .193 .262† -.028 .343† -.198 .183 .263† -.025 .197 -.067 .072 .267† -.148 .263†☻ r+ .008 -.021 .163 r++ -.103 .171☻r++ .315 -.401*☻ .106 .005 .253† .675* .396 3.18** .053 r++ .125 .097 r--.418*m .047 .075 .098 .229 1.68 -.012 .286 -.181 -.104 .046 .035 .432† .107 1.08 .191 .214 -.244† -.176 -.071 .048 .313 .204 .212 -.264† -.167 -.058 .023 .319 .063 .072 -.085 -.165 -.067 -.070 -.053 -.040 .070 -.086 r.005 -.048 -.081 -.026 .211 -.279†m -.087 -.081 .050 -.001 -.258 .048 .375 -.163 m .445*r++ -.252† .197† -.057 .212 r+ .037 .129 1.07 -.172 -.160 -.318* -0.38 .141 .166 .115 .099 1.005 -.181 -.131 -.343* -.032 .135 .156 .107 -.187 .028 -.293* -.039 -234† .023 .199 -.130 -.123 -.241†☻ r-.097 .243*☻ -.128 .211 -.084 .004 .297 -.163 -.174☻ m .052 .007 .553 .524**☻ .128 12.9*** .527 .168 1.45 .508*** .137 12.5*** .435**☻ r++ .069 7.35** .663 .456 3.21*** .694 .427 2.603** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .301*☻ r++ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 339 Table 30: Results of regression analyses for follower loyalty in intercultural dyads a Independent variables Mediators b Similar Follower loyalty; intercultural dyads Justice Step1: Follower characteristics Time in company .232 -.201m Cultural knowledge -.223 -.143☻ Neuroticism .042 .402*☻m Extroversion -.021 .306*☻r+ †☻ Harmony .252 -.096 R2 .083 .201 F .782 2.181† Step 2: Leader characteristics No. of supervised followers .315 .125 Cultural knowledge .171☻r++ .053 r++ Neuroticism -.401*☻ .097 r-Extroversion .106 -.418*m Agreeableness .005 .047 Conscientiousness -.173 .006 Harmony .253† .075 Self-enhancement values .675* .098 ∆R2 .396 .229 ∆F 3.18** 1.68 Step 3: Interpersonal variables Interaction intensity .211 -.163 m †m Months of interaction -.279 .445*r++ Demographic difference -.087 -.252† Difference in individualism -.081 .197† Difference in collectivism .050 -.057 Personality (FFM4) difference -.001 .212 r+ Diff. in interpers. relatedness -.258 .037 ∆R2 .048 .129 ∆F .375 1.07 Step 4: Leader LMX Leader overall LMX .052 ∆R2 .007 ∆F .553 Step 5: Mediator I Follower perceived similarity .524**☻ 2 ∆R .128 ∆F 12.9*** Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 .527 .694 Final adjusted R2 .168 .427 Final F 1.45 2.603** a Entries are standardised regression coefficients (β) b Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .092 -.167 -.206† -.104 .126 .098 1.14 .090 -.158 -.280* -.393** .167 .160 -.279† -.253† -.548** .198 .185 -.284† -.237† -.548** .195 .094 -.192 -.303* -.545** .107 .132 -.142 -.368*☻ -.612***☻m .135 .616** -.290† -.223† .253† .440** -.158 .324* .751** .263 2.31* .450* -.157* -.363* .253 .427* -.214 .192 .775** .452* -.173 -.331* .241 .409* -.200 .227 .767** .347† -.279 -.171 .238 .395* -.126 .64 .485† .347† -.345†☻m r+ -.182 .350*☻ .409*☻ -.151 .156 .507*m -.048 -.104 -.138 .166 .089 .149 -.296†m .079 .769 -.040 -.142 -.106 .159 .094 .172 -.289†m -.071 -.021 -.071 .154 .156 .118 -.182 -.025 -.121 -.037 .116 .166 .006 -.185 .111 .007 .769 .059 .380 .050 .380* .074 5.57* .241†☻ r++ .282†☻ r+ .029 2.37 .550 .254 1.86* † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 340 Table 31: Results of regression analyses for follower contribution in intercultural dyads a Independent variables Step1: Follower characteristics Time in company Cultural knowledge Extroversion Conscientiousness Harmony R2 F Step 2: Leader characteristics No. of supervised followers Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b Follower contribution; intercultural dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .232 -.223 -.021 .003 .252†☻ .083 .782 -.201m -.143☻ .306*☻mr .034 .183† .182† 329** .206† .251 3.58** -.067 .218† .100* .238* .207* -.117 .174 .023 .334* .253* -.082 .169 .016 .298* .247* -.181 .270* .045 .351** .154† -.169 .276* .037 r+ .347**☻ r++ .162† .315 .171☻r++ -.401*☻ .106 .005 -.173 .253† .675* .396 3.18** .125 .053 r++ .097 r--.418*m .047 .006 .075 .098 .229 1.68 .217 .126 -.243* .150 -.069 -.308** .132 .203 .236 2.60* .132 .104 -.357* .118 .060 -.450** -.068 .272 .134 .088 -.318* .106 .032 -.425** -.021 .249 .006 -.033 -.112 .095 .018 -.335* -.099 -.060 .007 -.039 r+ -.112☻ r.114 r+ .019 -.335*☻ -.099 -.053 .211 -.279†m -.087 -.081 .050 -.001 -.258 .048 .375 -.163 m .445*r++ -.252† .197† -.057 .212 r+ .037 .129 1.07 -.087 .144 .026 .075 .133 -.097 -.303* .104 1.38 -.078 .086 .070 .061 .140 -.048 -.283† -.116 .237† .103 .060 .210† -.126 -.169 -.108 .216☻ r+ .108 .053 .210†☻ -.139 m r++ -.172☻ .145 .012 1.15 .082 .083 .284†☻ -.096 .201 2.181† ++ .052 .007 .553 .524**☻ .128 12.9*** .527 .168 1.45 .460*** .110 13.9*** .049 r++ .001 .113 .715 .539 3.82*** .694 .427 2.603** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .434**☻ r+ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 341 Table 32: Results of regression analyses for follower professional respect in intercultural dyads Independent variables Step1: Follower characteristics Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Leader characteristics Age Education No. of supervised followers Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Age difference Education difference Gender difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. In interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b Follower professional respect; intercultural dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .232 -.223 .042 -.021 .252†☻ .083 .782 -.201m -.143☻ .402*☻m .306*☻r+ -.096 .201 2.181† -.011 -.059 .005 .364** .062 .143 1.77 .049 -.089 .056 .357** .044 .044 -.278 .241 .187 .051 .038 -.278 .234 .186 .052 -.118 -.140 .195 .197 -.103 -.033 -.055 .027 .047 r+ -0.47 -.349m .330†☻ .315 .171☻r++ -.401*☻ .106 -.173 .124 .675* .396 3.18** -.092 -.084 .125 .053 r++ .097 r--.418*m .006 .075 .098 .229 1.68 .013 -.128 -.088 .096 -.134 .065 .009 .008 .100 .060 .369 .951 -.205 -.229 .112 -.227 .085 .136 .083 .344 .954 -.203 -.238 .127 -.240 .087 .132 .068 .338 1.18* -.405* -.450* .046 -.012 .027 .233 -.038 -.093 1.22*m -.343*☻ -.503*m -.040 -.060 .261 .186 -.082 -.088 .211 -.279†m .319 -.050 -.075 -.081 .050 -.001 -.258 .048 .375 -.163 m .445*r++ .115 .067 -.268* .132 -.057 .212 r+ .037 .129 1.07 -.059 .077 -.982† -.171 -.105 .237 -.346 .516* -.135 .105 .587 -.062 -.064 -1.00† -.177 -.104 .241 .345† .507* -.141 -.200 .137 -1.23* -.155 -.055 .299† m -.375† .491* .010 -.096 -.072 1.27*m -.195 .067 .238 -.335†m .262 -.004 -.040 .001 .045 -.116 -.160 .052 .007 .553 .524**☻ .128 12.9*** .527 .168 1.45 .625*** .182 11.7** .527**☻ r++ .109 8.69** .599 .274 1.84* .694 .427 2.603** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .327*☻ r++ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 342 The table below summarises the results presented in the five tables above by indicating which determinants demonstrated a significant effect on LMX and its dimensions as well as perceived similarity and interactional justice in the regression analyses. ‘Sim’ stands for similarity, Jus = interactional justice, Aff = affect, Loy = loyalty, Con = contribution, Res = professional respect). The ‘+’ symbol indicates a positive beta weight with p < .10, ‘++’ = p < .05, ‘+++’ = p<. 01, ‘++++’ = p < .001. In a similar vein the ‘□’ symbol signifies a negative effect. The remaining symbols are explained in the last rows of the table. Table 33: Summary of results obtained for follower LMX in intercultural dyads DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) FOLLOWER PERCEPTIONS IN INTERCULTURAL DYADS Dyad type Sim Jus Lmx Aff Loy Con Res Intercult na na na na na na na ms□ ++ □□• na mjr+ (□•m) r+ Intercult (□m) Intercult ▪+ Intercult (+▪m) Intercult ++▪r Intercult +▪ +• na na +++•r na na na na na Intercult na Intercult +▪ Intercult na Intercult Leader characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Sim Intercult Months of interaction ms□ + r+ na + na na na na na na † † Jus Lmx ** Aff Loy ** Con Res e+▪ e□□• (+m) Intercult Intercult ▪r+ r+ (□m) Intercult □□▪r r- □□r (▪□m) ++•r Intercult msr□ (□•m) r+ ms□ •rms□ ++• r+ □□• Intercult Intercult ++• Intercult Intercult +++ ms+ (+m) Intercult Intercult Interpersonal variables Interaction intensity +•r (□m) + ** Sim Jus (□m) ++▪r Lmx Aff * Loy * Con Intercult Intercult •rmj+ Res 343 Demographic differences Personality differences Differences in interpers rel. Differences in individualism Differences in collectivism ∆F at Step 3 Perceptions & behaviour Other’s perceptions of LMX Similarity Intercult g□□ Intercult r+ (a□m) □•r (a□m) r+ (□m) Intercult mj+ •ms□ Intercult Intercult +• (□m) Loy Con Res ++• † Intercult Sim Jus Lmx Aff (□•m) Intercult Intercult +++ ++++• ++•r +•r +++ ++•r ∆F at Step 5 Intercult *** *** *** * *** ** Follower interactional justice Intercult ++++• +++•r +•r r+ +++•r Leader inrole performance Follower inrole performance Intercult na na na na na na na Intercult na na na na na na na ∆F at Step 6 Intercult ** ** + = positive effect (magnitude of beta weight or sign of correlation) □ = negative effect r = significant correlation (p < .05) ▪ = variable selected using backward deletion ms = fully mediated by similarity, mj = fully mediated by interactional justice mp = fully mediated by performance, na = non-applicable, ** (*m) = multicollinearity likely Entries beginning with ‘r’ indicate that there is a relationship only a correlational level; these variables are not considered to be significant determinants although they are included in the table. In the row for demographic factors, ‘a’ stands for age, ‘e’ for education and ‘g’ for gender b) Follower LMX in intracultural Chinese dyads On the following pages, following the procedure adopted in the previous section for intercultural dyads, six tables are inserted. The first table reports the result obtained for overall follower LMX quality in Chinese dyads, and the following four tables the results obtained for the affect, loyalty, contribution, and professional respect dimensions. The sixth table summarises the results obtained for overall LMX and its dimensions, including the mediating variables. After the tables presenting the results obtained for overall LMX and each dimension, the results are summarised in one table. . 344 Table 34: Results of regression analyses Independent variables Mediators b N = 88, listwise deletion Similar for follower LMX in Chinese dyads a Follower LMX; Chinese dyads Justice Step1: Follower characteristics Cultural knowledge -136 -.025 Time in company -.033 -.163† Neuroticism -.159 -.115r-Extroversion -.161 .039 Conscientiousness .103 .145☻r++ ☻ Harmony .112 -.030 R2 .099 .220 F 1.467 3.75** Step 2: Leader characteristics Age .290†☻ -.015 Education -.057 -.216*r-No. of supervised followers -.002 .208r++ Cultural knowledge -.038 -.021 ☻ r++ Neuroticism .134 -.115 Extroversion -.201☻r-- -.180 Conscientiousness -.107☻ .055 Agreeableness .133 -.183*☻ Harmony .134 .177†☻ Self-enhancement values .266*☻ .172†☻ 2 ∆R .237 .253 ∆F 2.49* 3.35*** Step 3: Interpersonal variables Interaction intensity .359** .002 Months of interaction -.341** .044 Gender difference -.226*☻r- .152* m Education difference -.052 .028 Age difference -0.47 -.012 Difference in individualism .004 .041 Difference in collectivism .078 .049 ☻ r+ Personality (FFM4) difference -.156 -.050r++ Diff. In interpers. relatedness -.011 -.128†☻ 2 ∆R .152 .044 ∆F 2.02† .616 Step 4: Leader LMX Leader overall LMX .132† 2 ∆R .006 ∆F .741 Step 5: Mediator I Follower perceived similarity .519*** 2 ∆R .137 ∆F 23.7*** Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 .488 .659 Final adjusted R2 .278 .503 Final F 2.36** 4.23*** a Entries are standardised regression coefficients (β) b (β) obtained at final stage of analysis ☻Entries Variables retained at final step using backward deletion m Result probably confounded by multicollinearity Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .233* -.168† .095 .015 .281** .291** .186 3.04** .156† -.239* .023 .007 .292* .242* .238* -.123 -.046 -.114 .233† .238* .258* -.069 -.045 -.156 .245† .199† .200* -.047 .026 -.090 .200† .143 .207*☻ -.001 .059 -.101 .159☻r+ .151† r+ .219 -.174† -.060 -.049 .054 -.158 .005 .018 .062 .279* .109 1.09 .234 -.047 -.186 -.061 -.144 -.178 -.069 -.103 .214† .334** .258† -.047 -.216 -.047 -.053 -.115 -.067 -.131 .238† .330** .131 -.021 -.219 -.028 -.101 -.017 -.019 -.194† m -181† m .210* 135 .039r--.277†m -.022 -.069 .034 -.034 -.142 .132 .162†☻ .427*** -.298* .019 -.059 .107 -.246* .106 .021 -.050 .144 1.73† .397*** -.367** .044 -.001 .116 -.259* .088 .015 -.073 .233* -.224† .148† m .030 .138 -.262** .050 -.055 -.071 . .202† .024 2.72† .230* .193* .447*** .102 13.8*** .300* r++ .232*☻r+ -.236*☻ .106 .022 .141 -.274**☻r.036 -.041 -.035 .282*☻r++ .027 3.84* .592 .395 3.00*** † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 345 Table 35: Results of regression analyses for follower affect in Chinese dyads a Independent variables Step1: Follower characteristics Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Leader characteristics Cultural knowledge No. of supervised followers Neuroticism Extroversion Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b Follower affect; Chinese dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.033 -136 -.159 -.161 .112☻ .099 1.467 -.163† -.025 -.115r-.039 -.030 .220 3.75** -.038 .159† -.095 .132 .268** .133 2.48* -.173† .147† -.168† .077 .158† -.120 .199* -.149 -.108 .132 -.091 .212** -.150 -.135 .107 -.051 .150† -.077 -.086 .066 .016 .131† -.002 r--.008r+ .061r+ -.038 -.002 .134☻r++ -.201☻r-.133 .134 .266*☻ .237 2.49* -.021 .208r++ -.115 -.180 -.183*☻ .177†☻ .172†☻ .253 3.35*** .054 .298** .190 -.207† -.080 .148† .322*** .257 4.46*** .073 .227* .077 -.259* -.061 .310** .330*** .081 .219* .136 -.218† -.076 .321** .323*** .079 .114 .067 -.134 -.131 .297** .245** .082 .030r+ .176†☻ -.073☻ r-.005 .195*☻ r+ .158*☻ .359** -.341** -.194* .004 .078 -.156☻r+ -.011 .152 2.02† .002 .044 .110 .041 .049 -.050r++ -.128†☻ .044 .616 .341** -.204† -.034 -.077 -.037 .176† -.026 .101 1.89† .324** -.245* .004 -.085 -.048 .173† -.042 .165† -.139 .070 -.093 -.078 .105 -.039 .120 -.149† .028 -.077 -.110 .080 r+ .033 .128 .010 1.31 .162† .092 .132† .006 .741 .519*** .137 23.7*** .488 .278 2.36** .385*** .082 12.7*** .514***☻r++ .105 21.36*** .687 .579 6.38*** .659 .503 4.23*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .118☻r++ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 346 Table 36: Results of regression analyses dyads a Independent variables Mediators b Similar for follower loyalty in Chinese Follower loyalty; Chinese dyads Justice Step1: Follower characteristics Time in company -.033 -.163† Cultural knowledge -136 -.025 Neuroticism -.159 -.115r-Extroversion -.161 .039 Harmony .112☻ -.030 2 R .099 .220 F 1.467 3.75** Step 2: Leader characteristics No. of supervised followers -.002 .208r++ Cultural knowledge -.038 -.021 ☻ r++ Neuroticism .134 -.115 Extroversion -.201☻r-- -.180 Agreeableness .133 -.183*☻ ☻ Conscientiousness -.107 .055 Harmony .134☻r++ -.115 Self-enhancement values -.201☻r-- -.180 2 ∆R .237 .253 ∆F 2.49* 3.35*** Step 3: Interpersonal variables Interaction intensity .359** .002 Months of interaction -.341** .044 Demographic difference -.194* .110 Difference in individualism .004 .041 Difference in collectivism .078 .049 Personality (FFM4) difference -.156☻r+ -.050r++ Diff. in interpers. relatedness -.011 -.128†☻ ∆R2 .152 .044 ∆F 2.02† .616 Step 4: Leader LMX Leader overall LMX .132† 2 ∆R .006 ∆F .741 Step 5: Mediator I Follower perceived similarity .519*** ∆R2 .137 ∆F 23.7*** Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 .488 .659 Final adjusted R2 .278 .503 Final F 2.36** 4.23*** a Entries are standardised regression coefficients (β) b (β) obtained at final stage of analysis ☻Entries Variables retained at final step using backward deletion m Result probably confounded by multicollinearity Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.304** .238* .025 -.103 .188* .133 2.47* -.277* .199† -.049 -.080 .190† -.045 .297** .040 -.222† .142 -.016 .310** .037 -.250* .115 .010 .269* .083 -.218† .087 .021 r.266*☻ .098 -.218†☻m .087 -.113 -.003 -.130 -.153 -.144 .044 .044 .176† .052 .587 -.176 .018 -.194 -.128 -.156 -.046 .168 .180† -.185 .027 -.133 -.087 -.174 -.043 .180 .174† -.254* .025 -.178 -.035 -.211† -.038 .166 .125 -.268* .026 -.160 -.022 -.188† -.043 .148 .108 r+ .277* -.405** .159† -.253* -.071 .081 -.029 -145 2.03† .259* -.448** .198* -.261* -.082 .078 -.047 .154 -.378** .242* -.265* -.102 .033 -.045 .147 -.380**☻ .134 .011 1.08 .157 .254* .035 3.63† -.235* ☻ -.263* ☻ -.107 .029 -.033 r-- .145 ☻m .209†☻ r++ .085 r+ .003 .290 .379 .152 1.67† † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 347 Table 37: Results of regression analyses dyads a Independent variables Step1: Follower characteristics Time in company Cultural knowledge Extroversion Conscientiousness Harmony R2 F Step 2: Leader characteristics No. of supervised followers Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b for follower contribution in Chinese Follower contribution; Chinese dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.033 -136 -.161 .103 .112☻ .099 1.467 -.163† -.025 .039 .145☻r++ -.030 .220 3.75** .082 -.099 -.121 .095 .171† .068 1.18 .068 -.082 .059 .119 .184† .206† -.024 .101 .163 .151 .220† -.017 .088 .168 .139 .264* -.092 .119 .131 .087 .253†m -.088 .122 .146 .089 -.002 -.038 .208r++ -.021 .032 -.124 .055 -.082 .050 -.079 -.055 -.088 -.044 -.088 -.115 .009 -.005 .025 -.058 -.071 .133 -.107☻ .134 .266*☻ .237 2.49* -.180 -.183*☻ .055 .177†☻ .172†☻ .253 3.35*** .052 -.072 .125 .178 .052 .054 .564 .118 -.159 .063 .252† .106 .137 -.167 .065 .258† .103 .202 -.239* .086 .246† .049 .190☻m -.255*m .090 .261*☻ .061 .359** -.341** -.194* .004 .078 -.156☻r+ -.011 .152 2.02† .002 .044 .110 .041 .049 -.050r++ -.128†☻ .044 .616 .219† -.281* -.015 -.177† .259* -.185 .011 .138 1.76 .209† -.301* .004 -.181† .254* -.188 .003 .068 -.196 .063 -.182† .236* -.248† .000 .070 -.195 .070 -.184† .238*☻ -.249†m -.010 .064 .003 .221 .097 .108 .373** .078 7.55** .413**m r++ .134☻r++ -.201☻r-- .132† .006 .741 .519*** .137 23.7*** .488 .278 2.36** -.076 r++ .002 .215 .343 .103 1.43 .659 .503 4.23*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 348 Table 38:Results of regression analyses Chinese dyads a Independent variables m Step1: Follower characteristics Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Leader characteristics Age Education No. of supervised followers Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Age difference Education difference Gender difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Leader LMX Leader overall LMX ∆R2 ∆F Step 5: Mediator I Follower perceived similarity ∆R2 ∆F Step 6: Mediator II Follower interactional justice ∆R2 ∆F Final R2 Final adjusted R2 Final F Mediators b for follower professional respect in Follower professional respect; Chinese dyads Similar Justice Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.033 -136 -.159 -.161 .112☻ .099 1.467 -.163† -.025 -.115r-.039 -.030 .220 3.75** -.074 .084 .002 .212* .279** .117 2.13† -.198† -.003 -.008 .232* .134 -.146 .129 .026 .035 .130 -.119 .142 .032 .016 .111 -.104 .095 .084 .053 .072 -.032 .098 .107 r.024 r+ .076 r+ .290†☻ -.057 -.002 -.038 .134☻r++ -.201☻r--.107☻ .134 .266* .237 2.49* -.015 -.216*r-.208r++ -.021 -.115 -.180 .055 .177†☻ .172† .253 3.35*** .013 -.344*** .168 .056 .140 -.261* -.007 .049 .196† .227 2.73** .082 -.238* .085 .120 .006 -.281* -.064 .109 .240* .093 -.240* .076 .129 .059 -.242† -.070 .115 .236* .011 -.230* .081 .151 .054 -.168 -.050 .055 .150 .012 -.127 r--.040 .142 .068 -.140☻r-.027 .024 .095 .359** -.341** -0.47 -.052 -.226*☻r.004 .078 -.156☻r+ -.011 .152 2.02† .002 .044 -.012 .028 .152* m .041 .049 -.050r++ -.128†☻ .044 .616 .452*** -.167 -.067 .110 .042 -.145 .060 .195* -.002 .164 2.31* .435*** -.205† -.063 .141 .058 -.152† .048 .195* -.011 .307** -.101 -.048 .154† .125 -.141† .014 .142 -.010 .311**☻ r++ -.110 ☻m -.025 .144†m .056 -.158†☻r.007 .126r++ .025 .105 .007 .851 .116 .075 .295** .044 6.05* .100 r++ .132† .006 .741 .519*** .137 23.7*** .488 .278 2.36** .392**☻ r++ .057 8.69** .616 .447 3.65*** .659 .503 4.23*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 349 The table below summarises the results presented in the five tables above by indicating which determinants demonstrated a significant effect on LMX and its dimensions as well as perceived similarity and interactional justice in the regression analyses. ‘Sim’ stands for similarity, Jus = interactional justice, Aff = affect, Loy = loyalty, Con = contribution, Res = professional respect). The ‘+’ symbol indicates a positive beta weight with p < .10, ‘++’ = p < .05, ‘+++’ = p<. 01, ‘++++’ = p < .001. In a similar vein the ‘□’ symbol signifies a negative effect. The remaining symbols are explained in the last rows of the table. Table 39: Summary of results obtained for follower LMX and its dimensions in Chinese dyads DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) FOLLOWER PERCEPTIONS IN CHINESE DYADS Dyad type Chinese Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Interpersonal variables Jus na Lmx na Aff na Chinese Chinese ++• r□ Chinese Chinese Chinese na Chinese ▪+ Chinese na Chinese Chinese Sim a▪+ + Loy na Con na r□ (+m) Res na ++• r□ Chinese Leader characteristics Demographics Sim na na r+ (□•m) ▪r+ •rmj+ na na na na na na +r r+ na na na na ** ** * * Jus e□□r Lmx re□ams Aff Loy r□ r+ na na r+ na na † Con Res ermj□ (•+m) •rms□ Chinese Chinese Chinese ▪r+ +•r Chinese ▪r□ •rms□ Chinese ▪□ Chinese ▪+ + Chinese Chinese (□•m) +▪ Chinese Chinese □□▪ ++•r ++• +▪ +• ++• rms+ r+ (□m) rms+ □□ * ** Sim Jus (□m) ms+ *** Lmx Aff ** Loy Con Res 350 Interaction intensity Months of interaction Demographic differences Personality differences Chinese +++ ++•r msj+ Chinese □□□ □□•r □ms Chinese g□□▪r (g+) Chinese ▪r+ r+ Differences in interpers rel. Differences in individualism Differences in collectivism Chinese ∆F at Step 3 Chinese Perceptions& behaviour Other’s perceptions of LMX Chinese ms+ □□□•r □□• rms+ +++•r (•□m) ms□ (e+m) (□m) rms+ □ □•r □▪ □□□•r Chinese □□• Chinese ++• † † † Jus + Lmx ++ Aff mj+ Loy (•□m) Con Res Chinese ++++ ++r •rmj+ +•r +++•r rmj+ ∆F at Step 5 Chinese *** *** *** † ** * Follower interactional justice Leader inrole performance Follower inrole performance Chinese ++•r ++++• r+ r+ +++•r na na na na na na na na na na ∆F at Step 6 Chinese * *** Similarity † Sim Chinese Chinese na na na na na na na na * ** + = positive effect (magnitude of beta weight or sign of correlation) □ = negative effect r = significant correlation (p < .05) ▪ = variable selected using backward deletion ms = fully mediated by similarity, mj = fully mediated by interactional justice mp = fully mediated by performance, na = non-applicable, (*m) = multicollinearity likely Entries beginning with ‘r’ indicate that there is a relationship only a correlational level; these variables are not considered to be significant determinants although they are included in the table. In the row for demographic factors, ‘a’ stands for age, ‘e’ for education and ‘g’ for gender c) Summary of results obtained for follower LMX The results obtained in the regression analyses for followers in both intercultural Western-Chinese and intracultural Chinese dyads are summarised in the table below. The table enables a comparison of the results obtained in intercultural and Chinese dyads, and hence increases our understanding of the antecedents of follower LMX quality. However, it should be noted that the results obtained for intercultural and Chinese dyads are not directly comparable with respect to leader perceptions as the perceptual measures used for Chinese and Western leaders did not demonstrate crosscultural equivalence. In this case, leader LMX is the only perceptual variable measured from the leader perspective. The signs in the table are explained in the last rows of the table. 351 Table 40: Summary of results obtained for follower LMX DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) FOLLOWER PERCEPTIONS Dyad type Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Leader characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Interpersonal variables Interaction intensity Months of interaction Demographic differences Personality differences Differences in interpers rel. Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Sim na na Jus na na Lmx na na (□m) ▪+ r□ (+▪m) na na ▪+ +▪ na na ++▪r ▪r+ +▪ na na ++• ms□ na na ** •rmj+ +• na na +r + na na ** † † Sim a▪+ e+▪ Jus e□□r Lmx re□ams (+m) ▪r+ ▪r+ □□▪r ▪r□ r+ (□m) ▪□ ▪+ r- □□r (▪□m) ++•r +▪ r+ * ** Sim +++ □□□ (□m) g□□▪r ▪r+ +•r + r□ r+ mjr+ na na na na r+ na na * ** Aff +•r msr□ •rms□ ++▪r (g+) g□□ r+ r+ □▪ ++• ms□ ++• rms+ ++ na na r+ na na na na +++•r na na na na * + na na Loy ** Con (□•m) r+ ms□ •rms□ (•+m) r+ ++•r +• ms+ (□m) Con na na (+m) □□• (□•m) (□•m) (□•m) ++• ** Jus Loy na na r□ ++• □□▪ +▪ + +++ Aff na na Aff msj+ □□•r □ms (a□m) □•r rms+ (□m) r□ r+ r+ na na r+ na na † Res ermj□ e□□• •rms□ □□• (□m) ++• rms+ (+m) ms+ + (□m) ** □□ *** Lmx ++•r Res na na * Loy * Con ms+ □□□•r □□• Res +++•r (•□m) •rmj+ ms□ (□m) r+ •ms□ (e+m) (a□m) rms+ mj+ 352 Differences in individualism Differences in collectivism ∆F at Step 3 □□□•r Chinese Intercult Chinese Intercult Chinese Intercult □□• ++• † † † Perceptions & behaviour Other’s perceptions of LMX □ □•r ++• +• (□m) † Sim Jus Lmx Aff Loy Chinese + ++ mj+ (•□m) Intercult (□•m) Chinese ++++ ++r •rmj+ +•r Similarity Intercult +++ ++++• ++•r +•r Chinese *** *** *** † ∆F at Step 5 Intercult *** *** *** * Follower interactional Chinese ++•r ++++• r+ justice Intercult ++++• +++•r +•r Chinese na na na na na Leader inrole performance Intercult na na na na na Follower inrole Chinese na na na na na performance Intercult na na na na na Chinese * *** ∆F at Step 6 Intercult ** ** + = positive effect (magnitude of beta weight or sign of correlation); □ = negative effect; * Con Res +++•r +++ ** *** r+ r+ na na na na rmj+ ++•r * ** +++•r +++•r na na na na ** ** ▪ = variable selected using backward deletion ; ( m) = multicollinearity likely ms = fully mediated by similarity; mj = fully mediated by interactional justice; mp = fully mediated by performance r = significant correlation (p < .05) ; na = non-applicable The table indicates that intercultural and Chinese dyads have many common features with regard to antecedents of LMX quality, but also specific characteristics that distinguish them from each other. 353 d) Leader LMX in intercultural dyads On the following pages, following the procedure adopted in the previous sections for follower LMX, six tables are inserted. The first table reports the result obtained for overall leader LMX quality in intercultural dyads (i.e. Western leader LMX), and the following four tables the results obtained for the affect, loyalty, contribution, and professional respect dimensions. The sixth table summarises the results obtained for overall LMX and its dimensions, including the mediating variables. After the tables presenting the results obtained for overall LMX and each dimension, the results are summarised in one table. 354 Table 41: Results of regression analyses dyads a Independent variables Mediators b N = 88, listwise deletion Similar Step1: Leader characteristics Time in company No. of supervised followers Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony R2 F Step 2: Follower characteristics Age Education Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Age difference Gender difference Education difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F -.319** .142☻ -.013 r++ -.019 .324*☻r .232†☻ r+ -.217☻ m .481 6.61*** Leader LMX; intercultural dyads Perform -.277†☻r r-- .001 .010 r++ -.319† -.333☻ m -.243 .079 .215 1.95† 130 -.055 -.154 r-.149 -.365** .043 -.007 -.096 -.100 .096 1.03 -.297† .158 -.030 .076 -.143 .439* .262 .057 -.317†☻ .115 .780 -.052 .282*☻ -.146 .064 -.081 -.333** -.045 -.045 r-.095☻ .187 2.81* .007 .572** -.097 -.026 .265 -.134 .174 -.836* m .142 .193 1.43 .162☻ .034 2.41 -.101 - .764 .619 4.14*** for leader LMX in intercultural .314 .041 1.47 .597 .208 1.53 † Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.315* .039 .202† -.206† .070 .079 -.178† .242 .2.28* -.355* .029 .148 -.146 .137 .078 -.142 -.373* .018 .347* -.270† .048 -.212 -.280† -.387* .031 .344* -.245 .037 -.195 -.268† m -.198 -.036 .346* -.165 -.217 -.315* -.084 -.130 -.030☻ r+ .354* r--.069 -.145 -.251†m r++ -.077 .173 -.114 .016 -.188 .029 -.010 -.104 -.055 .049 .067 .441 -.207 -.203† .114 -.131 -.216 .212 .196 .005 .036 -.215 -.218† .130 -.136 -.228 .199 .185 .001 .043 -.327† -.218† .281† -.046 -.001 .135 .161 .057 .130 -.276† -.273*☻ .290† -.046 .030 .053 .086 .031 .184☻m .152 .395* -.558** -.071 -.042 .091 .107 -.472† -.241 .263 2.18* .142 .405* -.565** -.074 -.038 .096 .095 -.452† -.234 .154 .236 -.482** -.126 .028 .341* .097 -.334† -.015 .169☻m .077 r+ -.460**☻m -.148 -.017 .416*☻m .067 -.181 -.011 .061 .002 .156 .218† .164 .700** .101 9.38** .746**☻ r++ .242†☻ r++ .031 .028 1.31 .703 .396 2.29* 355 Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 356 Table 42: Results of regression analyses dyads a for leader affect in intercultural Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .142 -.319** -.013 -.019 .324* -.217† .481 6.61*** .001 -.277† .010 -.319† -.333† .079 .215 1.95† .180 -.311* .008 .035 -.144 -.211† .145 1.438 .076 -.234† .028 -.066 -.180 -.196† .020 -.179 -.117 -.075 -.111 -.213 .018 -.172 -.103 -.092 -.091 -.227 -.118 .018 -.095 -.005 -.354* -.001 -.073 .144 -.084 .104 -.271†☻m -.035 -.154 -.149 -.365** .043 -.096 -.100 .096 1.03 -.030 .076 -.143 .439* .057 -.317† .115 .780 -.169 .040 -.043 -.010 -.027 -.264† .056 .528 -.144 .047 -.160 .266 -.078 -.246† -.150 .052 -.149 .277 -.066 -.242† -.051 .160 .083 .146 .004 -.148 -.013 .179 .141 .068 -.002 -.034 -.052 .282* -.085 -.333** -.045 -.045 -.095 .187 2.81* .007 .572** .034 -.134 .174 -.836** .142 .193 1.43 .075 .302* -.178 -.124 .158 -.338† -.016 .205 1.87 .095 .288* -.180 -.124 .170 -.342† -.027 .066 .132 -.129 .158 .114 -.084 .213 .092 -.045 -.147 .233† .136☻ -.007☻ .225 -.076 .004 .245 .098 -.019m r++ .744*** .135 10.66** .816** r++ Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Follower characteristics Cultural knowledge Neuroticism Extroversion Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. In interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader affect; intercultural dyads .162 .034 2.41 -.101 - .764 .619 4.14*** .406*☻ r++ -.008 r+ .086 3.94* .630 .380 2.52** .314† .041 1.47 .597 .208 1.53 Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 357 Table 43: Results of regression analyses dyads a for leader loyalty in intercultural Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .142 -.319** -.013 -.019 .324* -.217† .481 6.61*** .001 -.277† .010 -.319† -.333† .079 .215 1.95† .131 -.369** .397*** -.243* -.048 -.299** .431 6.45*** .140 -.429** .394** -.219† -.126 -.304** .098 -.450** .288* -.245* -.273* -.247† .104 -.458** .271* -.222† -.297* -.228† .090 -.428** .273* -.205† -.333* -.193 .097 -.363*☻ r.297*☻ r--.159☻ r--.315* m -.147☻m -.154 -.149 -.365** .043 -.007 -.096 -.100 .096 1.03 -.030 .076 -.143 .439* .262 .057 -.317† .115 .780 -.004 -.013 .174 -.127 .130 .042 -.098 .043 .515 -.125 -.064 .031 -.213 .198 .062 -.149 -.116 -.076 .017 -.227 .187 .047 -.151 -.098 -.069 .050 -.247 .167 .057 -.133 -.122 -.072 .054 -.236 .100 .019 -.151 -.052 .282* -.085 -.333** -.045 -.045 -.095 .187 2.81* .007 .572** .034 -.134 .174 -.836** .142 .193 1.43 .021 .432*** -.104 .011 -.045 .124 -.007 .145 2.01† -.003 .448*** -.101 .010 -.061 -134 .007 -.006 .422** -.090 .049 -.969 .181 .043 .025 .322*☻ r++ -.097 .145 -.046 .137 .116 .099 .007 .630 .127 .042 .112 .003 .274 .167 r+ Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Follower characteristics Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader loyalty; intercultural dyads .162 .034 2.41 -.101 - .764 .619 4.14*** .314 .041 1.47 .597 .208 1.53 .132 r++ .208☻ r+ .035 1.70 .663 .419 2.71** † Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 358 Table 44: Results of regression analyses intercultural dyads a for leader contribution in Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .142 -.319** -.013 -.019 .324* .232† -.217† .481 6.61*** .001 -.277† .010 -.319† -.333† -.243 .079 .215 1.95† -.057 .074 .259* -.205† .242† .203† -.365 .263 2.54* .112 -.002 .317* -.016 .261† .265* -.409** -.029 -.003 .349* -.102 .256† .202 -.399* -.017 -.013 .333* -.073 .241 .227 -.380* -.057 .056 .340* -.053 .162 .196 -.312† -.063 .052 .342*☻ -.061 r-.155 .193 r++ -.306†☻ -.154 -.365** -.149 -.007 .043 -.096 -.100 .096 1.03 -.030 -.143 .076 .262 .439* .057 -.317† .115 .780 .214 .341* -.034 -.165 -.165 .099 .219† .121 1.20 .161 .209 .012 -.022 -.249 .129 .142 .172 .199 .001 -.040 -.269 .121 .146 .203 .268 .017 -.070 -.300 .138 .178 .195 .263☻ r++ .018 -.069 -.289☻m .133 .162 -.052 .282* -.085 -.333** -.045 -.045 -.095 .187 2.81* .007 .572** .034 -.134 .174 -.836** .142 .193 1.43 -.292* .046 -.302* .102 .022 .165 .001 .099 .984 -.310* .060 -.299* .100 .004 .195 .017 -.316* .003 -.277† .184 -.006 .266 .086 -.316*☻ .009 -.278†☻ .189 -.004 .246 .092 .079 .004 .264 .130 130 .236 .013 .851 .234 r++ Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony R2 F Step 2: Follower characteristics Cultural knowledge Extroversion Neuroticism Conscientiousness Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader contribution; intercultural dyads .162 .034 2.41 -.101 - .764 .619 4.14*** .314 .041 1.47 .597 .208 1.53 -.023 r++ .026 .000 .013 .499 .108 1.28 † Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 359 Table 45: Results of regression analyses intercultural dyads a for leader professional respect in Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .142 -.319** -.013 -.019 .324* -.217† .481 6.61*** .001 -.277† .010 -.319† -.333† .079 .215 1.95† .115 -.089 .076 -.330* -.048 -.185 .148 1.24 -.108 -.082 .005 -.416** .024 -.153 .006 -.141 .071 -.431* -.131 -.286† .021 -.159 .066 -.395* -.151 -.268† m -.028 .073 .031 -.230† -.404* -.009 -.052 .180 .022 -.160☻ r--.293†☻m -.031 130 -.055 -.154 -.149 -.365** -.007 -.096 -.100 .096 1.03 -.297† .158 -.030 .076 -.143 .262 .057 -.317† .115 .780 .391* .121 -.100 .016 -.082 -.032 -.149 -.107 .126 1.07 .114 .143 -.030 .039 -.139 .137 .034 -.056 .091 .114 .001 .035 -.162 .132 .020 -.049 -.030 .129 .227 .164 .112 .038 .105 .131 .026 .082 .251 .177 .145 .000 .069 .219 -.052 .282* -.146 -.081 .064 -.333** -.045 -.045 -.095 .187 2.81* .007 .572** -.097 .265 -.026 -.134 .174 -.836** .142 .193 1.43 .112 .503** -.290† .099 .085 -.035 -.011 -.308† -.178 .200 1.44 .096 .521** -.304† .107 .077 -.025 -.024 -.308† -.169 .120 .342* -.206 -.239† .025 .255† -.033 -.130 .168 .137 .172☻ r++ -.178 .192☻m r.013 .308†☻m -.048 -.039 .151 .110 .007 .471 .321* .255*☻ Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Follower characteristics Age Education Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Age difference Education difference Gender difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader professional respect; intercultural dyads .162 .034 2.41 -.101 - .764 .619 4.14*** .314 .041 1.47 .597 .208 1.53 .852*** .162 14.6*** r++ .284* r++ -.058 .037 1.72 .681 .393 2.37* † Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .892***☻ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 360 As for follower LMX, the table below summarises the results presented in the five tables above by indicating which determinants demonstrated a significant effect on LMX and its dimensions as well as perceived similarity and inrole performance in the regression analyses. ‘Sim’ stands for similarity, Per = inrole perfromance, Aff = affect, Loy = loyalty, Con = contribution, Res = professional respect). The ‘+’ symbol indicates a positive beta weight with p < .10, ‘++’ = p < .05, ‘+++’ = p<. 01, ‘++++’ = p < .001. In a similar vein the ‘□’ symbol signifies a negative effect. The remaining symbols are explained in the last rows of the table. Table 46: Summary of results obtained for Western leader LMX and dimensions DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) WESTERN LEADER PERCEPTIONS Dyad type Intercult Intercult na Intercult r□ Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Intercult Months of interaction Lmx Aff Loy Con a□ a□e□• na na na na na na na na Res na + □□□▪ •r+ Intercult Intercult (•□m) ++ Intercult □▪ (•+m) ms□ Sim Per Lmx Aff Loy Con Res Intercult na na na na na na na Intercult □□□▪ □▪r ms□ □□•r Intercult r+ r+ ++•r ++•r ++• □▪ r□ •rmp□ r□ Intercult Intercult Intercult Intercult ++▪r Intercult +▪r Intercult na Intercult (□▪m) Intercult na na na (□▪m) *** Sim † Per * Lmx na •r□msp (•m□) (□m) (□r+m na na r+ na na na na (•□m) □• na na na na Aff *** Loy * Con Res (□m) (□•m) na Intercult Intercult Interpersonal variables Interaction intensity Per Intercult Leader characteristics Demographics Sim Intercult (•+m) □□• 361 Intercult Demographic differences Personality differences Differences in interpers rel. Differences in individualism Differences in collectivism ∆F at Step 3 Perceptions& behaviour Other’s perceptions of LMX Similarity ∆F at Step 5 Follower interactional justice Leader inrole performance Follower inrole performance ++▪r +++▪ rms+ ++•r (a□•m) Intercult Intercult r□ Intercult □▪ Intercult □□□▪ (□m) •rmsp+ □• ams□ mp□ •□ms ms□ (+•m) + (+•m) Intercult Intercult ms+ •+ * Sim Per * Lmx Aff ▪+ mp+ r+ Intercult +++•r +++•r Intercult ** *** na na na na na +•r ++•r •r+ r+ ++r r+ •r+ Intercult Intercult na na Intercult Intercult + † Loy Con Res ++• r+ rmp+ ++++• *** ∆F at Step 6 Intercult † * + = positive effect (magnitude of beta weight or sign of correlation) □ = negative effect r = significant correlation (p < .05) ▪ = variable selected using backward deletion ms = fully mediated by similarity, mj = fully mediated by interactional justice mp = fully mediated by performance, na = non-applicable, (*m) = multicollinearity likely Entries beginning with ‘r’ indicate that there is a relationship only a correlational level; these variables are not considered to be significant determinants although they are included in the table. In the row for demographic factors, ‘a’ stands for age, ‘e’ for education and ‘g’ for gender e) Leader LMX in intracultural Chinese dyads On the following pages, following the procedure adopted in the previous sections, six tables are inserted. Again, the first table reports the result obtained for overall leader LMX quality in Chinese dyads (i.e. Chinese leader LMX), and the following four tables the results obtained for the affect, loyalty, contribution, and professional respect dimensions. The sixth table summarises the results obtained for overall LMX and its dimensions, including the mediating variables. After the tables presenting the results obtained for overall LMX and each dimension, the results are summarised in one table. . 362 Table 47: Results of regression analyses for leader LMX in Chinese dyads a Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.075 -.226 -.315*☻ -.224 -.231 .094 .150 .073 .772 .310** m -.036 -.102 -.553** -.115 -.079 .050 .138 1.58 .073 .068 -.157 -.500** -.228† -.003 .157 .047 -.273* -.585*** -.281† -.009 .027 .327** .115 -.187 -.619*** -.191 -.168 .047 .330** .116 -.168 -.622*** -.188 -.165 .033 .345** .174 -.116 -.558** -.132 -.194 .015 .186† .108 r+ -.067 -.314* r-.095 -.125 .032 -.022 -.060 -.106 .054 -.066 .523**☻ .068 -.072 -.089 .122 1.01 -.192☻ -.241†☻ -.087 -.055 -.027 -.060 -.170 -.059 -.187† .128 1.16 -.150 .039 -.115 .105 .147 .274* -.038 .075 -.113 .122 1.13 -.338* -.069 -.048 .215 .117 .359* -.097 .127 -.076 -.320* -.051 -.057 .193 .127 .312* -.119 .114 -.077 -.343* -.065 -.014 .214* .128 .251† -.102 .153 -.051 -.228† .062☻ r+ .020 .260*☻ m .132☻ .284*☻ -.116 .143 .037 .086 .013 .009 -.136 -.039 -.071 .104 -.337*☻ .080 .097 .774 .165† -.065 -.093 -.209* -.134 .028 -.023 .121 .089 .127 1.18 .289* .074 -.232† -.204* -.175 -.216† -.025 -.026 .145 .211 2.36* .286* .089 -.246† -.211* -.165 -.196† -.020 -.012 .137 .269* .061 -.226† -.165† -.171 -.209† -.055 .054 .129 .155† .110☻ -.117 -.106 -.093 -.238*☻ -.044 .030 .050 .076 .003 .324 -.047 -.211†☻ m Step1: Leader characteristics Time in company No. of supervised followers Cultural knowledge Neuroticism Extroversion Conscientiousness Harmony R2 F Step 2: Follower characteristics Age Education Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Age difference Gender difference Education difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader LMX; Chinese dyads -.010 .161 1.89† .277*☻ .102 10.11** .277* - .256* .041 4.31* .105 r++ .502*** .414 .109 .838 ☻r++ †☻ .123 .056 3.09† .551 .289 2.10* Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .171 .142 10.4*** .680 .483 3.44*** a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 363 Table 48: Results of regression analyses for leader affect in Chinese dyads a Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.226 -.075 -.315* -.224 -.231 .150 .073 .772 -.036 .310** -.102 -.553** -.115 .050 .138 1.58 -.073 -.226* -.022 .228* .240 .166 .191 2.76* -.168 -.165† -.143 -.392* -.066 -.104 -.158 -.130 -.198† -.431** -.138 -.107 -.166 -.108 -.164 -.452** -.153 -.122 -.093 -.103 -.078 -.355* -.081 -.142 -.094 -.156†☻ r-.018 -.195 -.040 -.107 -.106 .054 -.066 .523** -.072 -.089 .122 1.01 -.087 -.055 -.027 -.060 -.059 -.187† .128 1.16 .001 .129 .146 .316* .000 -.108 1.07 1.63 -.001 .177 .195† .462** -.001 -.161 -.019 .135 .192† .361* -.029 -.157 .040 .151 .201† .254† .021 -.122 .092 .225†m .174† .309*☻ r++ .009 -.038 r-- .086 .013 -.110 -.071 .104 -.337* .080 .097 .774 .165† -.065 -.254* .028 -.023 .121 .089 .127 1.18 .191* -.091 .021 -.066 .011 -.178† .136 .090 1.19 .190* -.061 .001 -.026 .023 -.157 .113 .144† -.099 .044 -.023 -.035 -.049 .102 .095 r+ -.062 .106 -.074 -.026 -.064 .057 .165† .018 1.70 .022 -.112 Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Follower characteristics Cultural knowledge Neuroticism Extroversion Agreeableness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. Relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader affect; Chinese dyads .277* .102 10.11** .277* - .359** .080 8.53** .271*☻ .312**☻ r++ .414 .109 .838 .123 .056 3.09† .551 .289 2.10* Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity .122 .065 3.84* .551 .356 2.82*** a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 364 Table 49: Results of regression analyses for leader loyalty in Chinese dyads a Independent variables Mediators b N = 88, listwise deletion Similar Perform Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.226 -.075 -.315* -.224 -.231 .150 .073 .772 -.036 .310** -.102 -.553** -.115 .050 .138 1.58 .174† .015 -.053 -.375* -.164 -.125 .142 1.93† .052 .142 -.234* -.486** -.277* -.073 .004 .194† -.219† -.462** -.254† -.037 .001 .222* -.168 -.495** -.261† -.062 .011 .223* -.156 -.481** -.251† -.064 .010 .185† -.108 ☻m -.106 .054 -.066 .523** .068 -.072 -.089 .122 1.01 -.087 -.055 -.027 -.060 -.170 -.059 -.187† .128 1.16 -.215* -.006 .164 .293* -.049 -.019 -.295** .217 3.05** -.247* -.015 .181 .280* -.013 -.005 -.296** -.275** -.086 .181† .139 -.075 -.051 -.294** -.267* -.084 .182† .123 -.071 -.044 -.289** -.232* -.032 .166☻m .167 -.129 -.063 -.231*☻ .086 .013 -.110 -.071 .104 -.337* .080 .097 .774 .165† -.065 -.254* .028 -.023 .121 .089 .127 1.18 .084 -.037 -.235* -.054 -.023 -.082 -.079 .072 1.01 .081 .013 -.261* .003 -.006 -.029 -.112 .074 .007 -.255* .003 -.015 -.015 -.113 .037 .043 -.209*☻m -.039 -.006 -.007 -.151☻ .246* .038 3.95† .225† .130 .051 .002 .161 -.017 Step1: Leader characteristics No. of supervised followers Time in company Cultural knowledge Neuroticism Extroversion Harmony R2 F Step 2: Follower characteristics Cultural knowledge Neuroticism Extroversion Agreeableness Conscientiousness Harmony Self-enhancement values ∆R2 ∆F Step 3: Interpersonal variables Interaction intensity Months of interaction Demographic difference Difference in individualism Difference in collectivism Personality (FFM4) difference Diff. in interpers. Relatedness ∆R2 ∆F Step 4: Follower LMX Follower overall LMX ∆R2 ∆F Step 5: Mediator Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective ∆R2 ∆F Final R2 Final adjusted R2 Final F Leader loyalty; Chinese dyads .277* .102 10.11** .277* - .414 .109 .838 -.368* r--.212†m -.039 .226†☻ r++ .125 .040 2.10 .510 .284 2.26** .123 .056 3.09† .551 .289 2.10* Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity r+ a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 365 Table 50: Results of regression analyses dyads a Mediators b Independent variables N = 88, listwise deletion for leader contribution in Chinese Similar Perform Step1: Leader characteristics No. of supervised followers -.226 -.036 Time in company -.075 .310** Cultural knowledge -.315* -.102 Neuroticism -.224 -.553** Extroversion -.231 -.115 Conscientiousness .094 -.079 Harmony .150 .050 R2 .073 .138 F .772 1.58 Step 2: Follower characteristics -.087 Cultural knowledge -.106 -.027 Extroversion -.066 .054 -.055 Neuroticism -.170 Conscientiousness .068 .523** -.060 Agreeableness -.059 Harmony -.072 -.187† Self-enhancement values -.089 .128 ∆R2 .122 1.16 ∆F 1.01 Step 3:Interpersonal variables Interaction intensity .086 .165† Months of interaction .013 -.065 Demographic difference -.110 -.254* Difference in individualism -.071 .028 Difference in collectivism .104 -.023 Personality(FFM4) difference -.337* .121 Diff. In interpers. relatedness .080 .089 ∆R2 .097 .127 ∆F .774 1.18 Step 4: Follower LMX Follower overall LMX .277* 2 ∆R .102 ∆F 10.11** Step 5: Mediator Leader perceived similarity .277* ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective .123 ∆R2 .056 ∆F 3.09† Final R2 .414 .551 Final adjusted R2 .109 .289 Final F .838 2.10* a Entries are standardised regression coefficients (β) b Entries (β) obtained at final stage of analysis ☻Variables retained at final step using backward deletion m Result probably confounded by multicollinearity Leader contribution; Chinese dyads Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 .084 .087 -.178† -.645*** -.442** .149 .059 .315 4.53*** -.070 .207* -.384*** -.800*** -.501**’ .099 .179† -.075 .252* -.359** -.853*** -.407** -.025 .137 -.076 .270** -.321** -.875*** -.418** -.012 .120 -.049 .278** -.286** -.838*** -.383** -.030 .111 -.023 r++ .197*☻ -.232*☻m -.650***☻ -.275** -.049 -.112 -.055 .275* .118 -.215* .209 3.89*** -.251** -.068 -.102 -.130 .259* .166† -.207* -.274** -.068 -.158 -.172† .151 .131 -.205* -.247** -.065 -.145 -.166 .109 .154† -.191* -.194*☻ -.098 -.109 -.113☻m .151 .165†☻ r+ -.102 .148† .072 -.138† -.109 .064 .113 .126 .060 1.13 .143 .107 -.159† -.061 .073 .153 .102 .128 .093 -.140† -.067 .052 .193† .098 .068 .117☻ -.082 r--.084 .050 .171† .067 .185* .021 2.92† .122 .016 r+ .149† .014 1.89 .050 r+ -.357**☻ .01 .135 r-- .344**☻m -.035 .058 4.59* .677 .519 4.28*** † p < .10 *p < .05 ** p < .01 *** p < .001 onetailed tests 366 Table 51: Results of regression analyses Chinese dyads a Independent variables Mediators b N = 88, listwise deletion Similar for leader professional respect in Leader professional respect; Chinese dyads Perform Step1: Leader characteristics No. of supervised followers -.226 -.036 Time in company -.075 .310** Cultural knowledge -.315* -.102 Neuroticism -.224 -.553** Extroversion -.231 -.115 Harmony .150 .050 2 R .073 .138 F .772 1.58 Step 2: Follower characteristics Age -.022 -.192 Education -.060 -.241† Cultural knowledge -.106 -.087 Neuroticism .054 -.055 Extroversion -.066 -.027 Conscientiousness .068 -.170 Harmony -.072 -.059 Self-enhancement values -.089 -.187† ∆R2 .122 .128 ∆F 1.01 1.16 Step 3: Interpersonal variables Interaction intensity .086 .165† Months of interaction .013 -.065 Age difference .009 -.093 Education difference -.039 -.134 Gender difference -.136 -.209* Difference in individualism -.071 .028 Difference in collectivism .104 -.023 Personality (FFM4) difference -.337* .121 Diff. In interpers. Relatedness .080 .089 ∆R2 .097 .127 ∆F .774 1.18 Step 4: Follower LMX .277* Follower overall LMX 2 .102 ∆R 10.11** ∆F Step 5: Mediator .277* Leader perceived similarity ∆R2 ∆F Step 6: Follower performance Leader perspective (mediator) Follower perspective .123 ∆R2 .056 ∆F 3.09† Final R2 .414 .551 Final adjusted R2 .109 .289 Final F .838 2.10* a Entries are standardised regression coefficients (β) b (β) obtained at final stage of analysis ☻Entries Variables retained at final step using backward deletion m Result probably confounded by multicollinearity Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 -.142 .020 -.171 -.270† -.142 .059 .040 .409 -.098 .048 -.170 -.299† -.117 .097 -.203 .113 -.205 -.393* -.148 .179 -.210 .126 -.187 -.410* -.146 .176 -.146 .138 -.148 -.339† -.105 .179 -.178 -.041 -.079 -.034 -.014 .150 -.151 .044 .179† .127 -.097 .148 .130 -.026 .059 .582 -.244 -.143 .172 .114 -.204 .197 .216† -.001 -.218 -.123 .155 .113 -.184 .141 .189 .003 -.257† -.155 .202† .158 -.188 .165 .230† .041 -.114 .007 .251* m .195†m -.169 .201 .250* r+ .138 .002 -.003 .064 -.282† -.363** .047 -.055 .077 .091 .138 1.07 -.007 .015 .034 -.265† -.369** .070 -.049 .086 .085 -.032 -031 .053 -.276† -.317* .052 -.094 .141 .084 -.135 .034 .150 -.185☻ -.213† .014 -.068 .097 .008 .144 .015 1.04 -.007 -.179 .109 r++ .047 3.38† .605***☻r++ .048 .175 8.12*** .473 .183 1.63† † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 367 As previously, the table below summarises the results presented in the five tables above by indicating which determinants demonstrated a significant effect on LMX and its dimensions as well as perceived similarity and inrole performance in the regression analyses. ‘Sim’ stands for similarity, Per = inrole perfromance, Aff = affect, Loy = loyalty, Con = contribution, Res = professional respect). The ‘+’ symbol indicates a positive beta weight with p < .10, ‘++’ = p < .05, ‘+++’ = p<. 01, ‘++++’ = p < .001. In a similar vein the ‘□’ symbol signifies a negative effect. The remaining symbols are explained in the last rows of the table. Table 52: Summary of results obtained for Chinese leader LMX and dimensions DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) CHINESE LEADER PERCEPTIONS Dyad type Chinese Sim Per e□▪a▪□ Lmx a□ e▪r+ Aff na Loy na Con na Res amp□ Chinese na na na na na na na □□ □□▪ ++ Chinese Chinese (+•m) (+m) Chinese •+ + Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Chinese Months of interaction Demographic differences (▪□m) +++▪ ++• ++•r +▪r Chinese □ Chinese r□ Chinese Chinese Sim na Chinese Chinese ** *** Aff na Loy na Con na (+▪m) + □•r + ++▪ msp□ (•□m) (□▪m) □□r □□□□▪ (□m) (□□□) □□▪ Chinese r+ □□r Chinese na mp□ Lmx na □□□▪ Chinese □□r Per na Chinese na na na na na na Chinese Chinese na na *** Sim † Per + Chinese Chinese na na na r+ Chinese Chinese na ++r Res na msp□ na r+ Chinese Interpersonal variables Interaction intensity (•+m) Chinese Leader characteristics Demographics (+m) † * † *** Lmx + Aff rmsp+ Loy Con amp□ na r+ Res ▪+ •+ g□□ na (□•m) rmp□ g□ e▪□ 368 Personality differences Differences in interpers rel. Differences in individualism Differences in collectivism Chinese □□▪ + •□ Chinese □□• Chinese Chinese ∆F at Step 3 Chinese Perceptions & behaviour Other’s perceptions of LMX Chinese Per ++▪ Lmx (□•m) Aff ms+ Chinese ++▪ rmp+ ++• * ** na na na na na Chinese ++++• +++•r +•r (+▪m) ++++▪ Follower inrole performance Chinese +• ∆F at Step 6 Chinese *** * † Similarity Sim ∆F at Step 5 Chinese Follower interactional justice Chinese Leader inrole performance * na na Loy msp+ Con rms+ Res r+ rmp+ † * + = positive effect (magnitude of beta weight or sign of correlation) □ = negative effect r = significant correlation (p < .05) ▪ = variable selected using backward deletion ms = fully mediated by similarity, mj = fully mediated by interactional justice mp = fully mediated by performance, na = non-applicable, (*m) = multicollinearity likely Entries beginning with ‘r’ indicate that there is a relationship only a correlational level; these variables are not considered to be significant determinants although they are included in the table. In the row for demographic factors, ‘a’ stands for age, ‘e’ for education and ‘g’ for gender f) Summary of results obtained for leader LMX The results obtained in the regression analyses for leaders in both intercultural Western-Chinese and intracultural Chinese dyads are summarised in the table below. As the Western and Chinese measures of leader LMX as well as the measures of the antecedents of LMX are not identical across groups (this concerns at least the measures of LMX, perceived similarity and inrole performance, as the validation analyses demonstrated cross-cultural inequivalence), it is not possible to make direct comparisons between Western and Chinese leader LMX and their antecedents. However, although the employed constructs are not identical across groups, it is presumed that they at least measure similar constructs that are meaningful for both Western and Chinese leaders. The word ‘comparison’ is hence not used in this section to denote comparisons in a strict sense, but it is used to represent general tendencies, including differences and similarities across groups. The signs in the table are explained in the last rows of the table. 369 Table 53: Summary of results obtained for leader LMX DETERMINANTS Follower characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement F (Step 1) ∆F (if Step 2) LEADER PERCEPTIONS Dyad type Chinese Intercult Sim Per e□▪a▪□ a□ Lmx a□ e▪r+ a□e□• Aff na na Loy na na Con na na Res amp□ Chinese na na na na na na na Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult na na na na na na ++ + (+•m) (+m) •+ + Leader characteristics Demographics Tenure, company Cultural knowledge Neuroticism Extroversion Conscientiousness Agreeableness Harmony Self-enhancement No. of supervised follow. F (Step 1) ∆F (if Step 2) Interaction intensity Months of interaction Demographic differences Personality differences Interpersonal variables Differences in interpers rel. Differences in individualism Differences in collectivism ∆F at Step 3 Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult Chinese Intercult r□ □□□▪ (+m) (•+m) ++• ++•r (•□m) +▪r ++ □ □▪ Sim na na (•+m) Per na na (+▪m) □▪r Lmx na na + ms□ r+ r+ ++•r □□r r□ ++▪r r+ (□▪m) +▪r na na na na (□▪m) na na na na □□□▪ □□▪ *** ++▪r □□▪ □▪ □□□▪ □□▪ •r+ (▪□m) +++▪ Sim Chinese Intercult Chinese Intercult Chinese Intercult Chinese na □□ □□□▪ □▪ (□r+m na na (□m) na na r+ r□ ms□ □□r mp□ ** *** Con na na ++▪ (•m□) na na na na Loy na na + □□•r (•□m) ++•r □□r •rmp□ (□m) (□m) na na na na na na (•□m) na na Aff na na □•r msp□ † * + (•+m) •+ rms+ amp□ (a□•m) * (□m) mp□ •□ms Per Lmx Aff † + +++▪ g□□ † *** rmsp+ ms+ (□▪m) ++• □□□□▪ r□ (□□□) r+ na na r+ □• na na r+ ++r Res na na msp□ •r□msp (□•m) na na na na *** * □□• ▪+ ++•r (□•m) Loy •□ rmp□ □• + Con •rmsp+ g□ e▪□ ams□ ms□ Res □□• (+•m) + •+ * (+•m) 370 Intercult Perceptions & behaviour Other’s perceptions of LMX * Sim * Per Lmx † Aff Loy Chinese ++▪ (□•m) ms+ msp+ Intercult ▪+ mp+ r+ Chinese ++▪ rmp+ ++• Similarity Intercult +++•r +++•r r+ Chinese * ** ∆F at Step 5 Intercult ** *** Follower interactional Chinese na na na na na justice Intercult na na na na na Chinese ++++• +++•r +•r Leader inrole performance Intercult +•r ++•r •r+ Follower inrole Chinese +• performance Intercult + r+ •r+ Chinese *** * ∆F at Step 6 Intercult † * + = positive effect (magnitude of beta weight or sign of correlation) □ = negative effect r = significant correlation (p < .05) ▪ = variable selected using backward deletion ms = fully mediated by similarity, mj = fully mediated by interactional justice mp = fully mediated by performance, na = non-applicable, Con Res rms+ na na (+▪m) r+ ++• rmp+ ++++• † *** na na ++++▪ ++r * † r+ rmp+ (*m) = multicollinearity likely The table indicates that intercultural and Chinese dyads have some common features with regard to the antecedents of leader LMX but that many specific characteristics distinguish them from each other. 371 APPENDIX 6: REGRESSION TABLES: LMX AND OCB The hypotheses were tested using hierarchical regression analyses. Two different models for the relationship between LMX and OCB are analysed. In the first model, the relationship between overall LMX and OCB is examined using a composite measure of LMX. In the second model, all the dimensions of LMX are entered as independent variables. The effect of the moderating variables will only be examined in the first model with regard to overall LMX measured with the composite measure. Moderating effects will be tested by examining the significance of change in R2 attributable to the interaction terms as well as the significance of the beta weight of the interaction term at the final stage. In both models, control variables will be entered in the first step. Regarding the first model, the composite measure of follower LMX will be entered in the second step, the interaction terms between LMX and moderators (follower definition of job breadth and follower ren qin) in the third step, the mediators (organisational justice, POS, job satisfaction, OBSE) in the fourth step, and finally, follower perceptions of their own OCBs in the fifth step. Regarding the second model, instead of entering the composite measure of follower LMX in the second step, the four different dimensions of LMX are entered at the second step, the mediators in the third step (same as in the first model) and follower OCB at the fourth and final step. In addition, in order to enable analyses of mediation in both models, the mediators are regressed on LMX including the majority of the OCB antecedents as control variables. As in the LMX regression analyses, as a further aid to determine the relative importance of various antecedents of LMX, the backward deletion method was used at the last step. The variables that were retained at the final step of the backward deletion procedure are marked in the last column. All hypothesised antecedents of OCB (i.e. not all variables included in the model) that correlate significantly with the dependent variable are also marked in the last column. Furthermore, the significant hypothesised antecedents that obtain inconsistent beta signs at different steps or signs that differ from the ones obtained in the correlation matrix are marked. Very significant beta weights obtained despite very low correlations (r <.1, p > .6) are also marked as these could be indicators of potential multicollinearity problems. It should be noted again that the full hierarchical model is the theoretical model, while the results obtained trough backward deletion and the reported correlation coefficients serve only as additional aids during the interpretation of results. The results of the hierarchical regression analyses will be presented in tables with a similar format to the LMX regression table format. The first column lists the independent variables entered at each step, the next five columns present the results (beta weights) of regressing the mediators on LMX and control variables, and the following columns the results obtained at each step after adding different groups of antecedents of OCB. The effect of the mediating variables can be examined by comparing the results obtained at Step 3 and Step 4 with regard to the first model, and by comparing the results obtained at Step 2 and Step 3 with regard to the second model. As noted earlier, according to Baron and Kenny (1986), the following conditions should be met for a independent variable-mediator-dependent variable relationship: the independent variable (LMX) must affect the mediator (justice, POS, satisfaction, 372 OBSE) in the first equation; the independent variable (LMX) must affect the dependent variable (OCB) in the second equation; the mediator must affect the dependent variable (OCB) in the third equation; and finally, the effect of the independent variable (LMX) on the dependent variable (OCB) must be less in the third equation than in the second equation (Baron & Kenny, 1986: 1177). In certain cases, it is possible that LMX influences the hypothesised mediator and that the mediator demonstrates a significant effect on OCB, but that there at no stage is a direct relationship between LMX and OCB. This type of relationship does not constitute a variable-mediator-dependent variable relationship according to the definition of Baron and Kenny, but the stance taken in the present study is that such relationships are relevant and that they will hence be reported. The results pertaining to the relationship between LMX and OCB in intercultural Western-Chinese dyads will be presented first, continuing with the results obtained for Chinese dyads. a) OCB in intercultural dyads The results of regressing OCB on follower LMX and hypothesised mediators and moderators in intercultural dyads are presented in this section. Two tables are inserted below. The first table reports the results obtained using the composite measure of follower LMX quality to examine the relationship between LMX and OCB. The second table reports the results obtained entering all the dimensions of follower LMX quality instead of the composite measure and excluding the moderating factors. After the tables, the results pertaining to each specific hypothesis are reported. The results obtained from both models will be used to test the hypotheses. A significant effect demonstrated by a hypothesised antecedent of OCB in either model (i.e. using either the composite score or the dimensions of LMX) will be regarded as providing at last partial support for the hypothesis. 373 Table 54: Results of regression analyses for relationship between overall Independent variables Step1: Control variables Leader neuroticism Leader agreeableness Follower age Follower gender Follower position Time in position Follower neuroticism Follower agreeableness Follower conscientiousness Follower collectivism Follower individualism Follower ren qin Definition of job breadth R2 F Step 2: Follower LMX Overall follower LMX ∆R2 ∆F Step 3: Interactions LMX x Job definition LMX x Ren qin ∆R2 ∆F Step 4: Mediators Follower organisational justice Follower POS Follower job satisfaction Follower OBSE ∆R2 ∆F Step 5: Follower OCB LMX and OCB in intercultural dyads a Mediators b OCB from a leader perspective; intercultural dyads Justice POS OBSE Satis FOCB Step 1 Step 2 Step 3 Step 4 Step 5 -.118 -.082 -.125 .160 -.229* -.041 -.029 .134 .304* .172† -.080 .012 .017 .331 2.02* .012 -.236* -.064 -.056 -.042 -.094 -.164 .061 -.191†m -.105 -.089 -.031 .018 .344. 2.14* -.033 -.003 .235† -.069 -.083 -.105 .012 .072 .363* .279† .378† -.046 -.003 .488 2.62** .180 .258 .279† .369* -.144 -.426* -.214 -.005 .068 .391† .229 .094 .093 .340 1.42 -.113 .006 .183 .136 -.098 -.340* -.234 -.209† -.048 .429* .242 .020 .134 c .418 1.91† -.198 -.433** -.327* .087 -.270† -.311* -.487* -.036 -.574*** .020 -.164 .082 -.118 .498 2.57** -.143 -.458** -.337* .126 -.336† -.325* -.543* -.046 -.599** .048 -.127 .026 -.121 -.138 -.469** -.333* .053 -.289† -.311* -.476† -.019 -.583** -.036 -.144 .018 .066 -.395* -.193 -.052 -.212 -.386* -.526* -.026 -.665** .123 .235 .015 .077 -.401*☻ -.210☻ -.067 -.205☻ -.358*☻ -.503*☻ -.005 -.660**☻m ns -.085 .217 .015 .303*r++ .067 5.38* .003r++ .056 4.45* .140r++ .039 2.63 .244 .032 .1.64 .378*r++ .066 3.97* .105 .008 .464 .034 -.131 -.165 -.129 .171 .012 .352 -.151 .348† -.166 .379† .223† -.124 .100 3.50* † .095*** .137* .302 23.36*** -.069 .539** .010 .112 2.99* -.225 .146 .146 .015 .237 -.136mr+ .266r++ -.092 .411**r+ .139 2.68* .207 .483* -.192 -.280† .154 2.90* .221r+ .460*☻r+ -.182r--.317†m 374 Follower OCB ∆R2 ∆F Final R2 Final adjusted R2 Final F .398 .235 2.44** .702 .605 7.23*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis c Weight obtained at Step 2 before removal of the variable ☻Variable retained at last step using backward deletion m Result probably confounded by multicollinearity .638 .439 3.2** .388 .050 1.14 .086 .002 .177 .671 .410 2.58** .664 .431 2.68* a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 375 Table 55: Results of regression analyses for relationship between LMX Independent variables Step1: Control variables Leader neuroticism Leader agreeableness Follower age Follower gender Follower position Time in position Follower neuroticism Follower agreeableness Follower conscientiousness Follower collectivism Follower individualism Definition of job breadth R2 F Step 2: Follower LMX Affect Loyalty Contribution Respect ∆R2 ∆F Step 3: Mediators Follower organisational justice Follower POS Follower job satisfaction Follower OBSE ∆R2 ∆F Step 4: Follower OCB Follower OCB ∆R2 ∆F dimensions and OCB in intercultural dyads a Mediators b OCB; leader perspective, intercultural dyads Justice POS OBSE Satis FOCB Step 1 Step 2 Step 3 Step 4 -.152 -.037 -.086 .257* -.220* .035 -.081 .098 .276* .210 -.048 .064 .331 1.98* .088 -.246** -.136 .023 -.047 -.088 -.160 .022 -.246*m -.136 -.053 -.016 .349 2.14* -.091 -.016 .283* -.082 -.042 -.066 -.064 .148 .408** .301† .326 .052 .489 2.56** .169 .250 .280 .297 -.046 -.427* -.159 .009 .078 .421† .246 .063 .365 1.53 -.175 .153 .150 .034 .119 -.257† -.161 -.350* -.099 .172 .107 .107 .423 1.96† -.247* -.378** -.284† -.028 -.182 -.258† -.315† .004 -.492** .022 -.205 -.086 .464 2.13* -.191 .402* -.284† .034 -.244 -.262† -.401* -.018 -.537* .032 -.154 -.063 .018 -.389* -.142 -.107 -.181 -.367* -.362† .091 -.566* .267 .214 -.096 .028 -.397* -.151 -.109 -.188 -.352*☻ -.353☻ .111 -.560*☻m .257 .208 -.102 .157 .099 -.169m .345** .157 3.37** .027 -.076 .196* .034 .123 2.57* .169 .123 -.213*m -.116 .081 1.33 -.143 .308† -.015 .135 .090 1.16 .098 -.100 .155r+ .200r+ .072 .996 .078 .093 -.065 .079 .021 .280 -.070 .208 -.109 -.105 -.076 .213 -.117m -.116m .643** -.066 .572** .045 -.204 .151 -.229mr+ .302r++ -.087 .450*r+ .151 2.55† .299 .395† -.204 -.164 .135 2.12 .312r+ .378*☻r+ -.199☻r--.190 .293* .260 20.37*** .117 3.14* .077 .016 .247 .057 .001 .069 376 Final R2 Final adjusted R2 Final F .488 .301 2.62** .732 .617 6.37*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variable retained at last step using backward deletion m Result probably confounded by multicollinearity .668 .451 2.91** .470 .068 1.17 .646 .351 2.18* .621 .274 1.79† a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 377 b) OCB in intracultural Chinese dyads The results of regressing OCB on follower LMX and hypothesised mediators and moderators in Chinese dyads are presented in this section. Two tables are inserted below. As in the previous section, the first table reports the results obtained using the composite measure of follower LMX quality to examine the relationship between LMX and OCB. The second table reports the results obtained entering all the dimensions of follower LMX quality instead of the composite measure and excluding the moderating factors. After the tables, the results pertaining to each specific hypothesis are reported. 378 Table 56: Results of regression analyses for relationship between overall LMX and OCB in Chinese dyads a Independent variables Step1: Control variables Leader neuroticism Leader agreeableness Follower age Follower gender Follower position Time in position Follower neuroticism Follower agreeableness Follower conscientiousness Follower collectivism Follower individualism Follower ren qin Definition of job breadth R2 F Step 2: Follower LMX Overall follower LMX ∆R2 ∆F Step 3: Interactions LMX x Job definition LMX x Ren qin ∆R2 ∆F Step 4: Mediators Follower organisational justice Follower POS Follower job satisfaction Follower OBSE ∆R2 Mediators b OCB; leader perspective, Chinese dyads Justice POS OBSE Satis FOCB Step 1 Step 2 Step 3 Step 4 Step 5 -.003 .031 .143 .082 -.017 -.082 -.289** .012 -.029 .028 -.010 .112 .316** .278 2.35** .022 -.030 .020 .075 -.016 -.014 -.040 -.031 .026 -.067 -.103† .098 .087† .027 -.004 -.159 -.098 -.006 -.087 .108 .094 .028 -.508 -.021 .094 .090 .068 .389 -.132 .012 .198† .128 -.041 .040 -.042 .020 .223† .104 -.107 .020 .240**c .455 4.46*** -.194† -.006 .277* .019 -.264* -.247* .089 .082 -.110 .204† -.348* .082 -.042 .339 2.73** -.198* .013 .283* .055 -.347** -.200* .071 .026 -.147 -.177 -.321* .026 -.069 -.180† .034 .272* .037 -.359** -.195* .089 .018 -.134 -.171 -.360** .018 - -.186† .011 .258* .028 -.327** -.195† .118 .015 -.183 -.187 -.359* .015 - -.192† .011 .266*☻ .033 -.328**☻ -.193†m .116 .015 -.173m -.183m -.364*☻ .102 - 3.34*** .090 .222** .166* -.044 .059 .093 -.083 -.046 .467*** .218* .084 .076 -.091 .535 6.15*** .327* .083 9.36** .120* .113 15.35*** .119 .069 10.9*** .104 .009 .594 -.066m .024 2.90† .276** .057 5.96** .501** .460* .457*☻ -.116 -.204 .016 .821 -.171 -.207 -.156 -.207 .015 .093 .064 .075 .015 .006 .097 .063 .084 .-.467 -.001 .002 .146 .642*** .235** .355 .071 .347* -.030 .086 .477* -.330 -.084 .057 -.193 .101 -.028 .200 .022 379 ∆F Step 5: Follower OCB Follower OCB ∆R2 ∆F Final R2 Final adjusted R2 Final F 70.16*** .361 .246 3.14*** .823 .785 21.70*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis c obtained at Step 2 before removal of the variable ☻Weight Variable retained at last step using backward deletion m Result probably confounded by multicollinearity 5.53*** .690 .607 8.37*** 1.32 .134 -.107 .580 .647 .387 -.043 .001 .092 .427 .237 2.24* .497 .341 3.19*** a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests 380 Table 57: Results of regression analyses for relationship between LMX dimensions and OCB in Chinese dyads a Independent variables Step1: Control variables Leader neuroticism Leader agreeableness Follower age Follower gender Follower position Time in position Follower neuroticism Follower agreeableness Follower conscientiousness Follower collectivism Follower individualism Definition of job breadth R2 F Step 2: Follower LMX Affect Loyalty Contribution Respect ∆R2 ∆F Step 3: Mediators Follower organisational justice Follower POS Follower job satisfaction Follower OBSE ∆R2 ∆F Step 4: Follower OCB Follower OCB ∆R2 Mediators b OCB; leader perspective, Chinese dyads Justice POS OBSE Satis FOCB Step 1 Step 2 Step 3 Step 4 -.053 .015 .116 .103 -.042 -.101 -.255* -.028 -.032 .118 .054 .306** .278 2.31** .021 -.030 .009 .086† -.025 -.003 -.042 -.031 .039 -.043 -.092 .084† .335 3.31*** .107 .228** .158† -.034 -.030 .119† -.095 -.041 .486*** .211* .092 -.088 .533 5.99*** -.104 -.035 -.215 -.089 -.027 .061 .098 .061 -.038 .015 .024 .110 .070 .394 -.130 .030 .166 .118 -.052 .067 -.052 .041 .224 .128 -.066 .277 .454 4.36*** -.193* -.008 .276* .018 -.264* -.244* .089 .085 -.111 -.201† -.346* -.044 .338 2.68** -.198* .060 .297* .011 -.395** -.169† .122 .104 -.083 -.137 -.227† -.053 -.199* .029 .290* .005 -.355** -.172† .145 .104 -.147 -.172 -.239† -.082 -.206*☻ .031 .299*☻ .011 -.358** -.169†m☻ .142 .106 -.135m☻ -.166m -.243† -.067 .221* .060 -.025 .267* .160 4.8** .089 .045 .073 .006 .168 6.01*** .010 .059 .149† -.088 .083 3.17** .035 -.100 -.010 .285† .087 1.53 -.054 .058 .095 .120 .035 1.02 -.217† .318** -.008 .252† .099 2.60* -.245† .285* -.015 .209 -.248†ns corr .288*r+ -.010m .216 .630*** .149 .304* -.008 .362 -.309† -.167 .069 -.032 .202 .018 .501 .038 .047 .061 .104 .014 .349 .029 .050☻ .059 .115 .223** .307 59.63*** .085 5.30** -.022 .027 .628 -.054 .001 381 ∆F Final R2 Final adjusted R2 Final F .438 .305 3.31*** .830 .784 17.98*** Entries are standardised regression coefficients (β) Entries (β) obtained at final stage of analysis ☻Variable retained at last step using backward deletion m Result probably confounded by multicollinearity .701 .599 6.90*** .184 -.093 .664 .142 .453 .240 2.13* .507 .328 2.83*** a b † p < .10 *p < .05 ** p < .01 *** p < .001 one-tailed tests EKONOMI OCH SAMHÄLLE Skrifter utgivna vid Svenska handelshögskolan Publications of the Swedish School of Economics and Business Administration 88. JANNE VIITANEN: Auditors' Professional Ethics and Factors Associated with Disciplinary Cases against Auditors. Helsingfors 2000. 89. SIMO LEHTONEN: Venture Capitalist's Exit Vehicles and Their Effects on Perceived Utility, Allocation of Rewards and Contract Structure. Helsingfors 2000. 90. KAREN SPENS: Managing Critical Resources through Supply Network Management - A Study of the Finnish Blood Supply Network. Helsingfors 2001. 91. RONNIE SÖDERMAN: Essays on Derivatives Risk Management - Examining the Pricing and Monitoring Processes of Financial Derivatives. Helsingfors 2001. 78. INGER ROOS: Switching Paths in Customer Relationships. Helsingfors 2001. 2 tr. 2nd pr. 92. RITVA KINNUNEN: Creating and Testing of Service Ideas and Service Production Concepts. Helsingfors 2001. 93. KIM SUNDKVIST: Essays on Option Pricing with Smiles and Non-Constant Volatility. Helsingfors 2001. 94. PÄIVI VOIMA: Negative Internal Critical-Incident Processes - Windows on Relationship Change. 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