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THE ROLE OF INTERNATIONAL LEADERSHIP IN GLOBAL CORPORATIONS
Corresponding Author(s) : Muhammad Fuad Othman
Humanities & Social Sciences Reviews,
Vol. 7 No. 3 (2019): May
Abstract
Purpose of the Study: The impact of global leadership behavior in the contemporary business environment cannot be easily overlooked as the global environment is full of competitive challenges. Leadership behavior is critically significant because it impacts the present or future situations of any organization. The attainment of an organization’s objectives depends largely on leaders and their leadership behavior.
Methodology: The data for this study were obtained from existing literatures on international leadership in global corporations as well. The methodology relied heavily on existing previous literatures on the subject being dealt with.
Results: The demonstration of a specific leadership behavior by leaders affects both productivity and job satisfaction of employees directly or indirectly. Multinational firms can promote economic activities in developing nations and offer an opportunity to enhance the economic growth, qualities of life, regional, and world commons. This leadership expertise enables the achievement of maximum proficiency and output at a minimum cost.
Implications: The role of global leadership behavior on the performance of multinational corporations has been discussed decisively and how they impact on both workers and organizational performance. Multinational companies often have their headquarters in one state, while other branches or outlets exist in other nations of the world and keep a high standard of leadership outfit.
Novelty: The innovation of this paper is the maximum proficiency of international leadership in global corporations.
Keywords
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Abdikarim, S. A., Hussein, O. E., & Ali, I. M. (2013).The Effect of Leadership Behavior on Staff Performance in Somalia.Educational Research International, 2(2): 2307-2321.
Abdullah, A. A.& Islam, R. (2013). Balanced Scored Evaluating of British Tobacco in Malaysia. Journal of Applied Sciences Research, 9(5): 3301-3310.
Abhishek, S., Kathryn, M. & Edwin, A. (2006). Empowering Leadership in Management Teams: Effects on Knowledge Sharing, Efficacy,andPerformance.The Academy of Management.Journal, Vol. 49, pp. 1239-1251
Afshan, S., Sobia, I., Kamran, A. & Nasir, M. (2012). Impact ofTrainingonEmployee Performance: A Study of Telecommunication Sector in Pakistanâ€,Interdisciplinary Journal of Contemporary Research in Business, vol 4, no 6, pp. 646-661.
Al-Homayan, A. M., Shamsudin, F. M. Subramaniam, C. & Islam, R. (2013). Relationship among Job Demand-Resources, Job Stress, Organizational Support and Nurses’ Job Performance. Australian Journal of Basic and Applied Sciences, 7(9): 294-308.
Alison, M.(2008).The Effect of CEOs on Firm Performance. Strategic Management Journal, Vol. 29, pp. 1357-1367
Al-Nasser, A., Yusoff, R. Z. & Islam, R. (2013c). Relationship between Hard Total Quality Management Practices and Organizational Performance in Municipalities. American Journal of Applied Sciences,10(10): 1214-1223.
Al-Nasser, M., Islam, R. Abidin, I. S. Z., Azam, M. & Prabhakar, A. C. (2015). Analysis of E-service Quality through Online Shopping. Research Journal of Business Management, 9(3): 422-442.
Al-Nasser, M., Yusoff, R. Z., Islam, R. & ALNasser, A. (2013a). Cultural Differences Identification and Its Effect on E-service Quality Perception. American Journal of Economics and Business Administration, 5(2): 65-74.
Al-Nasser, M., Yusoff, R. Z., Islam, R. & ALNasser, A. (2013b). E-service Quality and its Effect on Consumers’ Perceptions Trust. American Journal of Economics and Business Administration, 5(2): 47-55.
Al-Nasser, M., Yusoff, R. Z., Islam, R., Abidin, I. S. Z. & Samsudin, S. (2016a). Mediating Effect of E-service Quality Perceptions on Attitude and Trust toward Online Shopping. International Business Management, 10(3): 228-240.
Al-Nasser, M., Yusoff, R. Z., Islam, R., Abidin, I. S. Z., Othman, Z. & Khan, S. J. M. (2016b). Moderating Impact of Risk on the Relationship between E-service Quality and Trust. Research journal of Applied Sciences, 11(2): 44-53.
Andreff, W. (2013).Comparing Outward Foreign Direct Investment Strategies of Russian and Chinese Multinational Companies: Similarities and Specificities,EAEPE Conference - Beyond Deindustrialisation: The Future of Industries,Paris, November 7-9, 2013.
Appelbaum, M. & Armstrong, S. (2003). Stress free Performance Appraisal. USA: Career Press Publication, p. 9
Bass, B. M. (1985). Leadership and Performance, N.Y. Free Press. 191p.
Bass, B.M. & Avolio, B.J. (Eds.). (1994). Improving organizational effectiveness through transformational leadership. Thousand Oaks, CA: Sage Publications. Journal of Organizational Change Management, 17:177-193.
Burns, J. M. (1978). Leadership, N.Y, Harper and Row.530p.
Campbell, J. P., McCloy, R. A., Oppler, S. H., & Sagar, C. E. (1993). A Theory of Performance. In N. Schmitt, W. C. Borman, and associates (Eds.), Personnel selection in organization: 35-69. San Francisco: Jossey-Bass.
Christine, M. (1999). The Effect of Leadership Style on Performance Improvement on a Manufacturing Task. The Journal of Business, Vol. 72, pp. 407-422
Cullen, J. B. & Parboteeah, K. P. (2011). Multinational Management. Strategic Approach, Third Edition. Thomson South-Western.
Dasalegn, W. (2016). Leadership Behavior in CBE and Its Effect on Employee Performance: TheSubordinates: Application of Path Goal Theory in Telecom Sector. International Journal of Trade, Economics and Finance, Vol. 5, No. 2
Detelin, S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55: 467– 480
Fu-Jin,.W., Shieh, C. & Tang, M. (2011). Effect of leadership style on organizational performance as viewed from human resources management strategy. African journal of business management,4(18): 3924-3936.
Giri, V. N. & Santra, T. (2010). Effects of job experience, career stage, and hierarchy on leadership style. Singapore Management Review, vol. 32, no. 1, pp. 85-93.
Hill, C. E., & Lambert, M. J. (2004). Methodological issues in studying psychotherapy processes and outcomes. In M. J. Lambert (Ed.), Handbook of psychotherapy and behavior change (5th ed., (pp. 84–135). New York: Wiley.
Ihsan, S., Ahsan, J. W. & Syed, N. (2011).Interdisciplinary Journal of Contemporary Research in Business. Institute of Interdisciplinary Business Research. VOL 3, NO 5
Imran, K., Han, D. &Tauqir, A. (2014).Impact of Attitude on Employees Performance:Level of Analysis. Human Relations, 43(10): 975-995.
Islam R. & Al-Homayan, A. M. (2013). Impacts of Job Resources on Nurses’ Performance Working in Public Sector Hospitals. American Journal of Applied Sciences, 10(10): 1224-1233.
Islam, R. & Abdullah, A. A. (2013). Marketing Implications of Consumer Behavior for Supermarket in Kedah, Malaysia.Australian Journal of Basic and Applied Sciences, 7(6): 479-485, 2013.
Islam, R. & ALNasser, A. (2013). The Effect of National Culture on Total Quality Management and Organizational Performance. American Journal of Applied Sciences, 10(10): 1191-1200.
Jay, B. Carson, P. E. & Jennifer, A. (2007). Shared Leadership in Teams: An Investigation of Antecedent Conditions and Performance. The Academy of Management Journal, Vol. 50, pp. 1217-1234 .
Khan, S. J. M., Samsudin, S. & Islam, R. (2017). Efficiency on Banking in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand. International Journal of Social Economics,44(12): 2302-2312.
Litvin, D. (2002). The business case for diversity and the “Iron cage. In Czarniawska, B. and Höpfl, H.
Locke, E. A. (1976). The nature and causes of job satisfaction. Handbook of organizational psychology (pp. 1297-1349). Chicago: Rand McNally College.
Martiz, D. (1995). Leadership and Mobilizing Potential Human Resource Management.International Journal of Global Business, 10(1), 8-16.
Mary, S., Nathan, T., David, A. W. & Robert, J. (2008). How Stakeholder and Economic Values Relate to Subordinates'Perceptions of Leadership and Firm Performance. Administrative Science Quarterly, Vol. 53, pp. 626-654
Mathew, J. A. (2008). Dragon Multinationals: Toward a New Model for Global Growth, Oxford University Press, New York. (Eds), Casting the Other: The Production and Maintenance of Inequalities in Work Organizations. London: Routledge.
Motowidlo, S. J., Borman, W. C., &Schmit, M. J. (1997). A theory of individual differences in task and contextual performance. Human Performance, 10(2): 71-83.
Mullins, L. (1999). Management and Organizational Behavior. London: Pitman Publishing. 197p.
Mwita, J. I. (2000). Performance Management Model, a system-based approach to system quality. The International Journal of Public Sector Management,13(1): 19-12.
Obiwuru, T., Okwu, A., Akpa,. V. & Nwankere, I. (2011). Effects of leadership style on organiszational performance: A survey of selected small scale enterprises in Ikosi – Ketu Council development area of Lagos State, Nigeria. Australian journal of business and management research,1(7): 1-17.
Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363- 382.
Saad, A. M., Islam, R., Noor, M. S. Z., Ali, J. & Zainal, Z. (2016). Consequences of Service Quality in the Insurance Industry: A Case Study on Saudi Arabia Insurance Industry. International Business Management, 10(3): 209-216.
Sarker, M. S. & Islam, R. (2013). Competitive Market of Air Industry and Competitive Advantages for Customer Satisfaction through Pricing Strategy of Air-Asia. Journal of Applied Sciences Research, 9(4): 2505-2512.
Sergio, F. (2008). Examining the Effects of Leadership Behavior on Employee Perceptions of Performance and Job Satisfaction. Public Performance & Management Review, Vol. 32, pp. 175-205.
Shukurat, M. (2012).Impact of Ethical Leadership on Employee Job Performance. International Journal of Business and Social Scienc, Vol. 3 No. 11;Pp. 1-13.
Spector, P. E. (1997). Job Satisfaction: Application, assessment, causes, and consequences. Thousand Oaks, CA: Sage Publications, Inc.226p.
Sun, R. Y. (2002). The relationship among the leadership style, organizational culture and organizational effectiveness based on competing value framework: An empirical study for the institute of technology in Taiwan. Doctoral dissertation, National Taipei University, Taipei, Taiwan. 223p.
Taly, D., Dov, E., Bruce, J., & Avio, B. (2002). Impact of Transformational Leadership on Follower Development and Performance: A FieldExperiment. The Academy of Management Journal, Vol. 45, pp. 735-744.
Tandoh, V. A. (2011). Effect of leadership behaviours on employee performance in Guinness Ghana Breweries Limited. Thesis submitted to the institute of distance learning, Kwame Nkrumah University of Science and Technology, in partial fulfilment of the requirement for the award of the degree of Commonwealth Executive Masters of Public Administration, 2011. 112p.
Venkataraman, S. (1997). The promise of entrepreneurship as a field of research. Advances in entrepreneurship, firm emergence and growth 3(1): 119-138.
Vugt, V. M., Jepson, S. F., Hart, C., & De Cremer, D. (2004). Autocratic leadership in social dilemmas: A threat to group stability. Journal of Experimental Social Psychology, 40, 1–13.
Wall, B., Solum, R., S. & Sobol, M., R. (1992). The Visionary Leader. Rocklin: Prima Publishing.136p.
William, L., Richard, M. S. & James, R. (1995) The Effects of Transformational Leadership on Teacher Attitudes and Student Performance in Singapore. Journal of Organizational Behavior, Vol. 16, pp. 319-333
Xu, H., Iun, L.& Gong, G. (2010). Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non-managerial subordinates. Journal of Organizational Behavior, Vol. 31, pp. 122-143
Yuki, G. (2006). Leadership in organizations. Upper Saddle River: Pearson Prentice Hall. 123p.
Zahra, I.,Chris, J. & Michael, J. (2012). Effect of Context on Performance Approach Orientation. Public Performance & Management Review, Vol. 32, pp. 175-205
Zhang, H. (2004). The Impact of Performance Management System on Enployee Performance. Analysis with WERS.57p.
References
Abdullah, A. A.& Islam, R. (2013). Balanced Scored Evaluating of British Tobacco in Malaysia. Journal of Applied Sciences Research, 9(5): 3301-3310.
Abhishek, S., Kathryn, M. & Edwin, A. (2006). Empowering Leadership in Management Teams: Effects on Knowledge Sharing, Efficacy,andPerformance.The Academy of Management.Journal, Vol. 49, pp. 1239-1251
Afshan, S., Sobia, I., Kamran, A. & Nasir, M. (2012). Impact ofTrainingonEmployee Performance: A Study of Telecommunication Sector in Pakistanâ€,Interdisciplinary Journal of Contemporary Research in Business, vol 4, no 6, pp. 646-661.
Al-Homayan, A. M., Shamsudin, F. M. Subramaniam, C. & Islam, R. (2013). Relationship among Job Demand-Resources, Job Stress, Organizational Support and Nurses’ Job Performance. Australian Journal of Basic and Applied Sciences, 7(9): 294-308.
Alison, M.(2008).The Effect of CEOs on Firm Performance. Strategic Management Journal, Vol. 29, pp. 1357-1367
Al-Nasser, A., Yusoff, R. Z. & Islam, R. (2013c). Relationship between Hard Total Quality Management Practices and Organizational Performance in Municipalities. American Journal of Applied Sciences,10(10): 1214-1223.
Al-Nasser, M., Islam, R. Abidin, I. S. Z., Azam, M. & Prabhakar, A. C. (2015). Analysis of E-service Quality through Online Shopping. Research Journal of Business Management, 9(3): 422-442.
Al-Nasser, M., Yusoff, R. Z., Islam, R. & ALNasser, A. (2013a). Cultural Differences Identification and Its Effect on E-service Quality Perception. American Journal of Economics and Business Administration, 5(2): 65-74.
Al-Nasser, M., Yusoff, R. Z., Islam, R. & ALNasser, A. (2013b). E-service Quality and its Effect on Consumers’ Perceptions Trust. American Journal of Economics and Business Administration, 5(2): 47-55.
Al-Nasser, M., Yusoff, R. Z., Islam, R., Abidin, I. S. Z. & Samsudin, S. (2016a). Mediating Effect of E-service Quality Perceptions on Attitude and Trust toward Online Shopping. International Business Management, 10(3): 228-240.
Al-Nasser, M., Yusoff, R. Z., Islam, R., Abidin, I. S. Z., Othman, Z. & Khan, S. J. M. (2016b). Moderating Impact of Risk on the Relationship between E-service Quality and Trust. Research journal of Applied Sciences, 11(2): 44-53.
Andreff, W. (2013).Comparing Outward Foreign Direct Investment Strategies of Russian and Chinese Multinational Companies: Similarities and Specificities,EAEPE Conference - Beyond Deindustrialisation: The Future of Industries,Paris, November 7-9, 2013.
Appelbaum, M. & Armstrong, S. (2003). Stress free Performance Appraisal. USA: Career Press Publication, p. 9
Bass, B. M. (1985). Leadership and Performance, N.Y. Free Press. 191p.
Bass, B.M. & Avolio, B.J. (Eds.). (1994). Improving organizational effectiveness through transformational leadership. Thousand Oaks, CA: Sage Publications. Journal of Organizational Change Management, 17:177-193.
Burns, J. M. (1978). Leadership, N.Y, Harper and Row.530p.
Campbell, J. P., McCloy, R. A., Oppler, S. H., & Sagar, C. E. (1993). A Theory of Performance. In N. Schmitt, W. C. Borman, and associates (Eds.), Personnel selection in organization: 35-69. San Francisco: Jossey-Bass.
Christine, M. (1999). The Effect of Leadership Style on Performance Improvement on a Manufacturing Task. The Journal of Business, Vol. 72, pp. 407-422
Cullen, J. B. & Parboteeah, K. P. (2011). Multinational Management. Strategic Approach, Third Edition. Thomson South-Western.
Dasalegn, W. (2016). Leadership Behavior in CBE and Its Effect on Employee Performance: TheSubordinates: Application of Path Goal Theory in Telecom Sector. International Journal of Trade, Economics and Finance, Vol. 5, No. 2
Detelin, S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55: 467– 480
Fu-Jin,.W., Shieh, C. & Tang, M. (2011). Effect of leadership style on organizational performance as viewed from human resources management strategy. African journal of business management,4(18): 3924-3936.
Giri, V. N. & Santra, T. (2010). Effects of job experience, career stage, and hierarchy on leadership style. Singapore Management Review, vol. 32, no. 1, pp. 85-93.
Hill, C. E., & Lambert, M. J. (2004). Methodological issues in studying psychotherapy processes and outcomes. In M. J. Lambert (Ed.), Handbook of psychotherapy and behavior change (5th ed., (pp. 84–135). New York: Wiley.
Ihsan, S., Ahsan, J. W. & Syed, N. (2011).Interdisciplinary Journal of Contemporary Research in Business. Institute of Interdisciplinary Business Research. VOL 3, NO 5
Imran, K., Han, D. &Tauqir, A. (2014).Impact of Attitude on Employees Performance:Level of Analysis. Human Relations, 43(10): 975-995.
Islam R. & Al-Homayan, A. M. (2013). Impacts of Job Resources on Nurses’ Performance Working in Public Sector Hospitals. American Journal of Applied Sciences, 10(10): 1224-1233.
Islam, R. & Abdullah, A. A. (2013). Marketing Implications of Consumer Behavior for Supermarket in Kedah, Malaysia.Australian Journal of Basic and Applied Sciences, 7(6): 479-485, 2013.
Islam, R. & ALNasser, A. (2013). The Effect of National Culture on Total Quality Management and Organizational Performance. American Journal of Applied Sciences, 10(10): 1191-1200.
Jay, B. Carson, P. E. & Jennifer, A. (2007). Shared Leadership in Teams: An Investigation of Antecedent Conditions and Performance. The Academy of Management Journal, Vol. 50, pp. 1217-1234 .
Khan, S. J. M., Samsudin, S. & Islam, R. (2017). Efficiency on Banking in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand. International Journal of Social Economics,44(12): 2302-2312.
Litvin, D. (2002). The business case for diversity and the “Iron cage. In Czarniawska, B. and Höpfl, H.
Locke, E. A. (1976). The nature and causes of job satisfaction. Handbook of organizational psychology (pp. 1297-1349). Chicago: Rand McNally College.
Martiz, D. (1995). Leadership and Mobilizing Potential Human Resource Management.International Journal of Global Business, 10(1), 8-16.
Mary, S., Nathan, T., David, A. W. & Robert, J. (2008). How Stakeholder and Economic Values Relate to Subordinates'Perceptions of Leadership and Firm Performance. Administrative Science Quarterly, Vol. 53, pp. 626-654
Mathew, J. A. (2008). Dragon Multinationals: Toward a New Model for Global Growth, Oxford University Press, New York. (Eds), Casting the Other: The Production and Maintenance of Inequalities in Work Organizations. London: Routledge.
Motowidlo, S. J., Borman, W. C., &Schmit, M. J. (1997). A theory of individual differences in task and contextual performance. Human Performance, 10(2): 71-83.
Mullins, L. (1999). Management and Organizational Behavior. London: Pitman Publishing. 197p.
Mwita, J. I. (2000). Performance Management Model, a system-based approach to system quality. The International Journal of Public Sector Management,13(1): 19-12.
Obiwuru, T., Okwu, A., Akpa,. V. & Nwankere, I. (2011). Effects of leadership style on organiszational performance: A survey of selected small scale enterprises in Ikosi – Ketu Council development area of Lagos State, Nigeria. Australian journal of business and management research,1(7): 1-17.
Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363- 382.
Saad, A. M., Islam, R., Noor, M. S. Z., Ali, J. & Zainal, Z. (2016). Consequences of Service Quality in the Insurance Industry: A Case Study on Saudi Arabia Insurance Industry. International Business Management, 10(3): 209-216.
Sarker, M. S. & Islam, R. (2013). Competitive Market of Air Industry and Competitive Advantages for Customer Satisfaction through Pricing Strategy of Air-Asia. Journal of Applied Sciences Research, 9(4): 2505-2512.
Sergio, F. (2008). Examining the Effects of Leadership Behavior on Employee Perceptions of Performance and Job Satisfaction. Public Performance & Management Review, Vol. 32, pp. 175-205.
Shukurat, M. (2012).Impact of Ethical Leadership on Employee Job Performance. International Journal of Business and Social Scienc, Vol. 3 No. 11;Pp. 1-13.
Spector, P. E. (1997). Job Satisfaction: Application, assessment, causes, and consequences. Thousand Oaks, CA: Sage Publications, Inc.226p.
Sun, R. Y. (2002). The relationship among the leadership style, organizational culture and organizational effectiveness based on competing value framework: An empirical study for the institute of technology in Taiwan. Doctoral dissertation, National Taipei University, Taipei, Taiwan. 223p.
Taly, D., Dov, E., Bruce, J., & Avio, B. (2002). Impact of Transformational Leadership on Follower Development and Performance: A FieldExperiment. The Academy of Management Journal, Vol. 45, pp. 735-744.
Tandoh, V. A. (2011). Effect of leadership behaviours on employee performance in Guinness Ghana Breweries Limited. Thesis submitted to the institute of distance learning, Kwame Nkrumah University of Science and Technology, in partial fulfilment of the requirement for the award of the degree of Commonwealth Executive Masters of Public Administration, 2011. 112p.
Venkataraman, S. (1997). The promise of entrepreneurship as a field of research. Advances in entrepreneurship, firm emergence and growth 3(1): 119-138.
Vugt, V. M., Jepson, S. F., Hart, C., & De Cremer, D. (2004). Autocratic leadership in social dilemmas: A threat to group stability. Journal of Experimental Social Psychology, 40, 1–13.
Wall, B., Solum, R., S. & Sobol, M., R. (1992). The Visionary Leader. Rocklin: Prima Publishing.136p.
William, L., Richard, M. S. & James, R. (1995) The Effects of Transformational Leadership on Teacher Attitudes and Student Performance in Singapore. Journal of Organizational Behavior, Vol. 16, pp. 319-333
Xu, H., Iun, L.& Gong, G. (2010). Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non-managerial subordinates. Journal of Organizational Behavior, Vol. 31, pp. 122-143
Yuki, G. (2006). Leadership in organizations. Upper Saddle River: Pearson Prentice Hall. 123p.
Zahra, I.,Chris, J. & Michael, J. (2012). Effect of Context on Performance Approach Orientation. Public Performance & Management Review, Vol. 32, pp. 175-205
Zhang, H. (2004). The Impact of Performance Management System on Enployee Performance. Analysis with WERS.57p.