Leadership and organizational effectiveness in multinational enterprises in Southeast Asia
The problem discussed in the present article is the relation between leadership skills and cultures and organizational effectiveness of multinational enterprises on the example of those operating in Southeast Asia. The authors explain that their study was inspired by the lack of understanding of the mutual correlation between these two concepts in the scholar literature.
For the purpose of removing this gap, they relate leadership dimensions to the organizational effectiveness. It is noted that the problem has been mentioned in some studies, which grant empirical and theoretical support for the research, however, there is no research on the organizational effectiveness related to leadership qualities and styles. In solving this problem, the authors utilize an efficient study with well-organized complex hypotheses.The hypotheses formulated by the authors are in line with the problem in study and research purposes.
Firstly, they point out the necessity to test, if higher external organization effectiveness is significantly related to the international leader characteristics, and list such determinants as communication skills, dealing with challenges, professionalism and cultural awareness. Secondly, they examine the relation of this effectiveness to organizational culture of company (values, HR characteristics, quality policy, collectivism). They also test the attribution of international leader characteristics and organizational culture to multicultural management style, and the relation of that style to executive motivation.
Final hypothesis is that there is a direct relationship between high motivation of international executives and the internal organization efficiency. Thus the hypotheses cover all the chain of variables and characteristics in study, and upon being tested would provide in a comprehensive way the explanation of the problem in study.A need for the study conducted in the present article seems clear and certain for me. It is conducted to figure out which characteristics of company have to be developed to achieve success in the certain region, how should the managers for leading positions be selected, or what human resource development programs should be utilized to achieve better performance. The need is not only to add to theoretical understanding of the above mentioned concepts, yet to implement the recommendations achieved in policy of the multinational enterprises. Understanding how leadership and organizational structure work on the example of companies operating in that region would be valuable for those who are planning to entry that marketing or are already operating there, yet remain not satisfied with the level of performance. It explains what should be altered, and what is efficient.Speaking about the methodology, it utilizes data collection from a substantial amount of leaders (1065 people) of multinational enterprises in Thailand, of which 37 % are top managers, and 45% are division managers.
The focus group seems to have been selected in the process of targeted sampling, since it presents people with various experience, nationalities, spheres of activity of the companies and job responsibilities. The measures include international leader characteristics, organizational culture, multicultural management style, executive motivation and organizational effectiveness. For the purpose of study, a structural equation software LISREL is utilized, …