IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v30y2024i1s107542532300114x.html
   My bibliography  Save this article

Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China

Author

Listed:
  • Lee, Jeoung Yul
  • Kim, Sunghoon
  • Noh, Shinwon
  • Jang, Seung Hoon
  • Lee, Sang Youn

Abstract

Organizational paradox has received substantial scholarly attention; however, the literature has not yet explored the idea that it can be ingrained and manifested as an international organizational culture. In this study, we conceptually explore and empirically examine paradoxical organizational culture and its impact on international firm performance. In this vein, this study advances our knowledge of international organizational culture by extending paradox theory. We propose a “paradoxical organizational culture” as a type of international organizational culture characterized by the sustained and visible coexistence of contradictory cultural features within an international organization. We also argue that the effectiveness of paradoxical organizational culture is amplified, not dampened, by authoritarian leadership. Quantitative analyses based on cluster groups were used to examine the relationships among paradoxical culture, leadership, and firm performance. The empirical results, based on original survey data collected from China (2256 individual respondents from 394 Chinese international firms), support our claims. Our study is expected to provide implications for those interested in the concepts of paradoxical organizational culture and authoritarian leadership in the international business context.

Suggested Citation

  • Lee, Jeoung Yul & Kim, Sunghoon & Noh, Shinwon & Jang, Seung Hoon & Lee, Sang Youn, 2024. "Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China," Journal of International Management, Elsevier, vol. 30(1).
  • Handle: RePEc:eee:intman:v:30:y:2024:i:1:s107542532300114x
    DOI: 10.1016/j.intman.2023.101117
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S107542532300114X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.intman.2023.101117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Hong & Li, Kequan, 2002. "Strategic Implications of Emerging Chinese Multinationals:: The Haier Case Study," European Management Journal, Elsevier, vol. 20(6), pages 699-706, December.
    2. Diether Gebert & Sabine Boerner & Eric Kearney, 2010. "Fostering Team Innovation: Why Is It Important to Combine Opposing Action Strategies?," Organization Science, INFORMS, vol. 21(3), pages 593-608, June.
    3. Simone Carmine & Valentina De Marchi, 2023. "Reviewing Paradox Theory in Corporate Sustainability Toward a Systems Perspective," Journal of Business Ethics, Springer, vol. 184(1), pages 139-158, April.
    4. Limaj, Everist & Bernroider, Edward W.N., 2019. "The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs," Journal of Business Research, Elsevier, vol. 94(C), pages 137-153.
    5. Jing Li & Changhui Zhou & Edward J. Zajac, 2009. "Control, collaboration, and productivity in international joint ventures: theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 865-884, August.
    6. Mary Ann Glynn, 2000. "When Cymbals Become Symbols: Conflict Over Organizational Identity Within a Symphony Orchestra," Organization Science, INFORMS, vol. 11(3), pages 285-298, June.
    7. Guo, Liang & Decoster, Stijn & Babalola, Mayowa T. & De Schutter, Leander & Garba, Omale A. & Riisla, Katrin, 2018. "Authoritarian leadership and employee creativity: The moderating role of psychological capital and the mediating role of fear and defensive silence," Journal of Business Research, Elsevier, vol. 92(C), pages 219-230.
    8. Marco Berti & Miguel Pina e Cunha, 2023. "Paradox, Dialectics or Trade‐Offs? A Double Loop Model of Paradox," Journal of Management Studies, Wiley Blackwell, vol. 60(4), pages 861-888, June.
    9. Xiaowen Huang & Joseph C Rode & Roger G Schroeder, 2011. "Organizational structure and continuous improvement and learning: Moderating effects of cultural endorsement of participative leadership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(9), pages 1103-1120, December.
    10. Jiing-Lih Farh & Bor-Shiuan Cheng, 2000. "A Cultural Analysis of Paternalistic Leadership in Chinese Organizations," Palgrave Macmillan Books, in: J. T. Li & Anne S. Tsui & Elizabeth Weldon (ed.), Management and Organizations in the Chinese Context, chapter 4, pages 84-127, Palgrave Macmillan.
    11. Zheng, Yuyan & Huang, Xu & Graham, Les & Redman, Tom & Hu, Saiquan, 2020. "Deterrence Effects: The Role of Authoritarian Leadership in Controlling Employee Workplace Deviance," Management and Organization Review, Cambridge University Press, vol. 16(2), pages 377-404, May.
    12. Mannucci, Pier Vittorio & Shalley, Christina E., 2022. "Embracing multicultural tensions: How team members’ multicultural paradox mindsets foster team information elaboration and creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 173(C).
    13. Lin Cui & Yi Li & Klaus E. Meyer & Zijie Li, 2015. "Leadership Experience Meets Ownership Structure: Returnee Managers and Internationalization of Emerging Economy Firms," Management International Review, Springer, vol. 55(3), pages 355-387, June.
    14. Wang, An-Chih & Chiang, Jack Ting-Ju & Tsai, Chou-Yu & Lin, Tzu-Ting & Cheng, Bor-Shiuan, 2013. "Gender makes the difference: The moderating role of leader gender on the relationship between leadership styles and subordinate performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 122(2), pages 101-113.
    15. Mark J. Greeven & George S. Yip, 2021. "Six paths to Chinese company innovation," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 17-33, March.
    16. Balaji, M.S. & Jiang, Yangyang & Singh, Gurbir & Jha, Subhash, 2020. "Letting go or getting back: How organization culture shapes frontline employee response to customer incivility," Journal of Business Research, Elsevier, vol. 111(C), pages 1-11.
    17. Natalie Slawinski & Pratima Bansal, 2015. "Short on Time: Intertemporal Tensions in Business Sustainability," Organization Science, INFORMS, vol. 26(2), pages 531-549, April.
    18. Duan, Jinyun & Bao, Chanzi & Huang, Caiyun & Brinsfield, Chad Thomas, 2018. "Authoritarian leadership and employee silence in China," Journal of Management & Organization, Cambridge University Press, vol. 24(1), pages 62-80, January.
    19. Zhang, Yan & Xie, Yun-Hui, 2017. "Authoritarian Leadership and Extra-Role Behaviors: A Role-Perception Perspective," Management and Organization Review, Cambridge University Press, vol. 13(1), pages 147-166, March.
    20. Anirvan Pant & J Ramachandran, 2017. "Navigating identity duality in multinational subsidiaries: A paradox lens on identity claims at Hindustan Unilever 1959–2015," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(6), pages 664-692, August.
    21. Kevin Zheng Zhou & David K Tse & Julie Juan Li, 2006. "Organizational changes in emerging economies: drivers and consequences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(2), pages 248-263, March.
    22. Miron-Spektor, Ella & Gino, Francesca & Argote, Linda, 2011. "Paradoxical frames and creative sparks: Enhancing individual creativity through conflict and integration," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 229-240.
    23. Daniel R. Denison & Aneil K. Mishra, 1995. "Toward a Theory of Organizational Culture and Effectiveness," Organization Science, INFORMS, vol. 6(2), pages 204-223, April.
    24. Andreas Georg Scherer & Guido Palazzo & David Seidl, 2013. "Managing Legitimacy in Complex and Heterogeneous Environments: Sustainable Development in a Globalized World," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 259-284, March.
    25. Lee, Jeoung Yul & Park, Young-Ryeol & Ghauri, Pervez N. & Park, Byung Il, 2014. "Innovative Knowledge Transfer Patterns of Group-Affiliated Companies: The effects on the Performance of Foreign Subsidiaries," Journal of International Management, Elsevier, vol. 20(2), pages 107-123.
    26. Blake E. Ashforth & Kristie M. Rogers & Michael G. Pratt & Camille Pradies, 2014. "Ambivalence in Organizations: A Multilevel Approach," Organization Science, INFORMS, vol. 25(5), pages 1453-1478, October.
    27. Achim Schmitt & Sebastian Raisch, 2013. "Corporate Turnarounds: The Duality of Retrenchment and Recovery," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1216-1244, November.
    28. Ricciardi, Francesca & Zardini, Alessandro & Rossignoli, Cecilia, 2016. "Organizational dynamism and adaptive business model innovation: The triple paradox configuration," Journal of Business Research, Elsevier, vol. 69(11), pages 5487-5493.
    29. Gregory, Brian T. & Harris, Stanley G. & Armenakis, Achilles A. & Shook, Christopher L., 2009. "Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes," Journal of Business Research, Elsevier, vol. 62(7), pages 673-679, July.
    30. Dimitrios Georgakakis & Mads E. Wedell-Wedellsborg & Tommaso Vallone & Peder Greve, 2023. "Strategic leaders in multinational enterprises: A role-specific microfoundational view and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 514-537, April.
    31. Lee, Jeoung Yul & Yang, Young Soo & Park, Byung Il, 2020. "Interplay between dual dimensions of knowledge sharing within globalized chaebols: The moderating effects of organization size and global environmental munificence," International Business Review, Elsevier, vol. 29(6).
    32. Gül Erben & Ayşe Begüm Güneşer, 2008. "The Relationship Between Paternalistic Leadership and Organizational Commitment: Investigating the Role of Climate Regarding Ethics," Journal of Business Ethics, Springer, vol. 82(4), pages 955-968, November.
    33. Daniel R. Denison & Robert Hooijberg & Robert E. Quinn, 1995. "Paradox and Performance: Toward a Theory of Behavioral Complexity in Managerial Leadership," Organization Science, INFORMS, vol. 6(5), pages 524-540, October.
    34. T. K. Das & Bing-Sheng Teng, 2000. "Instabilities of Strategic Alliances: An Internal Tensions Perspective," Organization Science, INFORMS, vol. 11(1), pages 77-101, February.
    35. Smith, Wendy K. & Gonin, Michael & Besharov, Marya L., 2013. "Managing Social-Business Tensions: A Review and Research Agenda for Social Enterprise," Business Ethics Quarterly, Cambridge University Press, vol. 23(3), pages 407-442, July.
    36. Liou, Ru-Shiun & Chao, Mike Chen-Ho & Yang, Monica, 2016. "Emerging economies and institutional quality: Assessing the differential effects of institutional distances on ownership strategy," Journal of World Business, Elsevier, vol. 51(4), pages 600-611.
    37. Lena Zander & Karsten Jonsen & Audra I. Mockaitis, 2016. "Leveraging Values in Global Organizations: Premises, Paradoxes and Progress," Management International Review, Springer, vol. 56(2), pages 149-169, April.
    38. Paul N. Gooderham & Torben Pedersen & Alexander Madsen Sandvik & Àngels Dasí & Frank Elter & Jarle Hildrum, 2022. "Contextualizing AMO Explanations of Knowledge Sharing in MNEs: The Role of Organizational and National Culture," Management International Review, Springer, vol. 62(6), pages 859-884, December.
    39. Tran, Yen & Truong, Anh Tran Tram, 2022. "Knowledge recontextualization by returnee entrepreneurs: The dynamic learning perspective," Journal of International Management, Elsevier, vol. 28(3).
    40. Jin-hui Luo & Yuangao Xiang & Ruichao Zhu, 2017. "Military top executives and corporate philanthropy: Evidence from China," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 725-755, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yan & Han, Yu-Lan, 2019. "Paradoxical leader behavior in long-term corporate development: Antecedents and consequences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 155(C), pages 42-54.
    2. Tobias Hahn & Frank Figge & Jonatan Pinkse & Lutz Preuss, 2018. "A Paradox Perspective on Corporate Sustainability: Descriptive, Instrumental, and Normative Aspects," Journal of Business Ethics, Springer, vol. 148(2), pages 235-248, March.
    3. Qiufeng Huang & Kaili Zhang & Yanqun Wang & Ali Ahmad Bodla & Duogang Zhu, 2022. "When Is Authoritarian Leadership Less Detrimental? The Role of Leader Capability," IJERPH, MDPI, vol. 20(1), pages 1-17, December.
    4. Hee‐Chan Song, 2023. "Identity Conflict Amidst Environmental Change: An Ethnography of a Korean Buddhist Temple," Journal of Management Studies, Wiley Blackwell, vol. 60(4), pages 889-923, June.
    5. Gaim, Medhanie, 2018. "On the emergence and management of paradoxical tensions: The case of architectural firms," European Management Journal, Elsevier, vol. 36(4), pages 497-518.
    6. Yan Zhang & Ying Zhang & Kenneth S. Law & Jing Zhou, 2022. "Paradoxical Leadership, Subjective Ambivalence, and Employee Creativity: Effects of Employee Holistic Thinking," Journal of Management Studies, Wiley Blackwell, vol. 59(3), pages 695-723, May.
    7. Sitong (Michelle) Chen & Gabriel Eweje, 2022. "Managing tensions in sustainable development in Chinese and New Zealand business partnerships: Integrative approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2568-2587, July.
    8. Päivi Karhu & Paavo Ritala, 2020. "The multiple faces of tension: dualities in decision-making," Review of Managerial Science, Springer, vol. 14(3), pages 485-518, June.
    9. Farrukh Shahzad & Muhammad Farrukh Shahzad & Azer Dilanchiev & Muhammad Irfan, 2022. "Modeling the Influence of Paternalistic Leadership and Personality Characteristics on Alienation and Organizational Culture in the Aviation Industry of Pakistan: The Mediating Role of Cohesiveness," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    10. Reeti Kulshrestha & Arunaditya Sahay & Subhanjan Sengupta, 2022. "Constituents and Drivers of Mission Engagement for Social Enterprise Sustainability: A Systematic Review," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(1), pages 90-120, March.
    11. Emmanuelle Reuter, 2022. "Hybrid business models in the sharing economy: The role of business model design for managing the environmental paradox," Business Strategy and the Environment, Wiley Blackwell, vol. 31(2), pages 603-618, February.
    12. Wei, Jiuchang & Ouyang, Zhe & Chen, Haipeng (Allan), 2018. "CEO characteristics and corporate philanthropic giving in an emerging market: The case of China," Journal of Business Research, Elsevier, vol. 87(C), pages 1-11.
    13. George Ferns & Kenneth Amaeshi & Aliette Lambert, 2019. "Drilling their Own Graves: How the European Oil and Gas Supermajors Avoid Sustainability Tensions Through Mythmaking," Journal of Business Ethics, Springer, vol. 158(1), pages 201-231, August.
    14. Chidlow, Agnieszka & Wang, Jue & Liu, Xiaohui & Wei, Yingqi, 2021. "A co-evolution perspective of EMNE internationalization and institutions: An integrative framework of 5Cs," International Business Review, Elsevier, vol. 30(4).
    15. Shao, Yan & Nijstad, Bernard A. & Täuber, Susanne, 2019. "Creativity under workload pressure and integrative complexity: The double-edged sword of paradoxical leadership," Organizational Behavior and Human Decision Processes, Elsevier, vol. 155(C), pages 7-19.
    16. Helene Loe Colman & Birgitte Grøgaard & Inger G. Stensaker, 2022. "Organizational identity work in MNE subsidiaries: Managing dual embeddedness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1997-2022, December.
    17. Tykkyläinen, Saila & Ritala, Paavo, 2021. "Business model innovation in social enterprises: An activity system perspective," Journal of Business Research, Elsevier, vol. 125(C), pages 684-697.
    18. Chiang, Jack Ting Ju & Chen, Xiao Ping & Liu, Haiyang & Akutsu, Satoshi & Wang, Zheng, 2020. "We have emotions but can’t show them! Authoritarian leadership, emotion suppression climate, and team performance," LSE Research Online Documents on Economics 104058, London School of Economics and Political Science, LSE Library.
    19. Kearney, Eric & Shemla, Meir & van Knippenberg, Daan & Scholz, Florian A., 2019. "A paradox perspective on the interactive effects of visionary and empowering leadership," Organizational Behavior and Human Decision Processes, Elsevier, vol. 155(C), pages 20-30.
    20. Jeoung Yul Lee & Asli M. Colpan & Yeon-Sik Ryu & Tomoki Sekiguchi, 2022. "What do we know about the internationalization of Asian business groups? A systematic review and future research agenda," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 802-830, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:30:y:2024:i:1:s107542532300114x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.