Society and organizational culture and leadership expectations in Bosnia and Herzegovina Dissertation zur Erlangung des akademischen Grades Doctor rerum politicarum (Dr. rer. pol.) an der Wirtschaftswissenschaftlichen Fakultat der Technischen Universitat Chemnitz vorgelegt von Danijela Bogdanić, M.Sc. Gutachter: Prof. Dr. Rainhart Lang, Technische Universität Chemnitz Prof. Dr. Dieter Wagner, Universität Potsdam Chemnitz, den 19.11.2012 Available on: http://nbn-resolving.de/urn:nbn:de:bsz:ch1-qucosa-108385 Acknowledgements It has been a great privilege and honour to work with my supervisor, Prof. Dr. Rainhart Lang, over the last four years. I would like to thank him for all his encouragement, guidance and constant support. I am extremely thankful to Prof. Dr. Dieter Wagner for his supervision and guidance. I would like to express my gratitude to everyone who helped me with the proof-reading and provided technical assistance. This research was generously supported by the scholarships from the International Office of the Chemnitz University of Technology and DAAD. I will be eternally grateful to them for making it possible for me to spend four wonderful years in Chemnitz. I owe a lot to many friends I have made during my time at Chemnitz University of Technology. Their incredible belief in my capacities inspired me all these years. Lastly, and most importantly, I am indebted to my family for all their support and understanding throughout my education. I would not have reached this point without their help. i Table of Contents Acknowledgements ................................................................................................................................ i List of Figures ...................................................................................................................................... vii List of Tables ........................................................................................................................................ ix List of Abbreviations .......................................................................................................................... xii Abstract ............................................................................................................................................... xiii Zusammenfassung............................................................................................................................... xv Chapter 1 Introduction ........................................................................................................................................... 1 1.1 A short reference to situation in Bosnia and Herzegovina ............................................................ 1 1.2 Motivation and the structure of the thesis ..................................................................................... 3 Chapter 2 Prior literature and empirical studies on the relationship between culture and leadership .......... 8 2.1 Definitions of leadership and a short introduction to the history of leadership research .............. 9 2.1.1 The definition of leadership ................................................................................................... 9 2.1.2 A short overview of historical streams of leadership research ............................................. 12 2.2 Definitions and diverse perceptions of culture............................................................................ 17 2.2.1 The definition of culture ...................................................................................................... 17 2.2.2 Diverse perceptions of culture ............................................................................................. 19 2.3 Cultural influences on leadership behaviour ............................................................................... 27 2.4 An overview of the empirical studies on the relationship between culture and leadership ........ 31 2.4.1 Cross-cultural leadership studies ......................................................................................... 32 2.4.1.1 Emic versus etic perspectives ....................................................................................... 50 2.4.1.2 Issues remaining in cross – cultural leadership research............................................... 51 2.4.1 Other studies on the relationship between leadership and culture ....................................... 52 2.4.1.1 Concluding remarks ...................................................................................................... 56 2.5 Review of existing studies on culture and leadership in Bosnia and Herzegovina ..................... 64 2.5.1 Leadership and cultural studies in Yugoslavia ..................................................................... 64 2.5.2 Leadership and cultural studies in Bosnia and Herzegovina................................................ 68 2.6 Summary of methodological issues associated with the research on the relationship between culture and leadership ....................................................................................................................... 71 2.6.1 Equivalency .......................................................................................................................... 72 ii 2.6.2 Response biases ................................................................................................................... 74 2.6.3 Sampling .............................................................................................................................. 80 Chapter 3 Theoretical/conceptual basis .............................................................................................................. 83 3.1 Introduction to the GLOBE research project .............................................................................. 83 3.1.1 The GLOBE Independent Variables .................................................................................... 84 3.1.1.1 The development and validation of the GLOBE culture and leadership scales ............ 85 3.1.1.2 Definition and conception of society and organizational culture .................................. 87 3.1.1.3 A construct definition of Leadership ............................................................................. 90 3.1.2 The GLOBE sample design ................................................................................................. 94 3.1.3 The GLOBE Methodology ................................................................................................... 96 3.1.3.1 Quantitative questionnaires ........................................................................................... 98 3.1.3.2 Qualitative methodology ............................................................................................... 99 3.1.4 The GLOBE findings ......................................................................................................... 101 3.1.4.1 Society culture............................................................................................................. 101 3.1.4.2 The GLOBE findings on leadership ............................................................................ 103 3.1.4.3 Correlations amongst cultural dimensions and leadership dimensions ....................... 107 3.1.4.4 Third phase of the project GLOBE – sample and findings ......................................... 109 3.2 Critical approach to the GLOBE project ................................................................................... 110 3.2.1 Dichotomies including the emic-etic perspective .............................................................. 111 3.2.2 Response bias analysis ....................................................................................................... 112 3.2.3 Analysis of the GLOBE sample design ............................................................................. 117 3.2.4 Ethnocentrism .................................................................................................................... 120 3.2.5 The negative correlation between practices and values ..................................................... 122 3.3 Description of the frame for empirical research in Bosnia and Herzegovina ........................... 124 3.3.1 Theoretical basis ................................................................................................................ 124 3.3.1.1 Implicit leadership theory ........................................................................................... 125 3.3.1.2 Value-belief theory ...................................................................................................... 128 3.3.1.3 Implicit motivation theory .......................................................................................... 130 3.3.1.4 Structural contingency theory ..................................................................................... 132 3.3.1.5 The GLOBE Integrated theory .................................................................................... 133 3.3.2 The relevance of the analysis, the objectives and research questions ................................ 136 3.3.3 Development of hypotheses ............................................................................................... 142 3.3.4 Methodological background .............................................................................................. 146 iii Chapter 4 Empirical findings ............................................................................................................................