Leadership's Role in Innovation and Motivation

Introduction

Background of Research

Effective leadership is integral to successful operation in any organisation. According to Rekonen et al. (2016), firms that have gained competitive advantage have mastered the art of effective leadership. For effective leadership, firms need experienced and motivated leaders who can effectively manage and motivate the team members (Przytuła et al., 2014). Leaders can be seen as role models in that employees follow their leaders and work according to the strategies adopted by those in management (Selmer et al., 2015). Leaders and those in management are also the primary source of motivation for employees (Min et al., 2013). Forward thinking attitude is a necessity for leaders if they are to keep their subordinates motivated and continually engaging in their roles (Rekonen et al., 2016; Vlajčić et al., 2019). Leadership and management styles have a significant influence of employee productivity and organisational performance (Selmer et al., 2015). Effective leaders poses some attributes such as highly motivated, confidence in their role, and management competence among others which make them leaders (Min et al., 2013). Bringing innovation is also one of the major responsibilities of the leaders (Luo, 2016; Selmer et al., 2015). Change is inevitable but leaders will always face some reluctance from employees when implementing the change (Vlajčić et al., 2019). Leaders strive to overcome resistance to change and innovation in their firms in order to make the organisation perform better than rivals (Luo, 2016; Rekonen et al., 2016). Leaders can bring innovation by accepting the forward thinking employees and by listening to their ideas. Forward think attitude also helps leaders to motivate employees through setting the good example and by giving different types of incentives to the employees (Li et al., 2013; Przytuła et al., 2014).

Effective leaders always welcome innovative ideas and strive to implement change with a primary objective of improving organisational performance. Communication is integral to successful change management therefore leaders must effectively communicate during change implementation (Przytuła et al., 2014; Rekonen et al., 2016). Moreover, innovative leaders always have a vision to achieve and motivate their team to work towards the vision. Remaining visionary helps leaders achieve their long-term goals while managing employees to work more efficiently and effectively (Li et al., 2013). In order to make an effective team, innovative leaders must establish the trust factor in their team (Vlajčić et al., 2019). Trust strategy is among the most important factors that effective leaders should consider in motivating the team members to bring change and innovation in the firm (Rekonen et al., 2016). To create a culture of innovativeness, leaders should ensure the team members are willing, ready to learn, and feel supported to achieve their goals after the change has been implemented; in fact, leaders should seek to ensure employees are positive about the change (Min et al., 2013). In addition, innovative leaders should set more short-term goals such that achievement is quickly noted, which further motivates employees and creates a positive attitude towards change (Lee et al., 2018; Przytuła et al., 2014). Moreover, leaders should involve their subordinates in the decision making process or consider the views of employees during decisions making; this makes employees own up the change, which increases their commitment to the change (Fee et al., 2012; Min et al., 2013). Furthermore, effective and innovative leaders always set their goals and achieve those goals in order to motivate their employees and to provide the benefits to the company (Lee et al., 2013). International business is now ubiquitous and in many cases is accompanied by expatriation – the transfer of people from one country to another (Haslberger et al.,2014). We need to raise some questions. What is an expatriate? What exactly is ‘adjustment’? What about acculturation, acclimatization, adaptation? I will try to answer that and explain how important that is for an effective managing performance abroad. An expatriate refers to a person who takes a job in a foreign country for a specific period of time and leaves the country after the specified time period (Hippler et al., 2014). I would like to focus on a new model for analysing expatriate adjustment (see Figure 1.1) – the 3D model because it covers the dimensions, domains, and dynamics of adjustment. (Hippler et al., 2014).

Aim of Research

This study aims at exploring the leadership factors affecting organisational expansion to foreign countries particularly expatriate adjustment.

Objectives of Research

The core objectives of this research include:

To analyse the role of expatriate managers and leaders in the internalisation process.

To debunk the concept of expatriate adjustment.

To identify the impact of new leadership strategies and innovation for the success of an organisation.

To identify the impact of cultural change on the employees’ performance.

To evaluate the effectiveness of cultural change at the workplace.

Research Questions

The research will be guided by the following research questions:

What factors should expatriate managers and leaders consider in change management?

Which strategies of leadership must be considered in the change management?

What are the impacts of new leadership strategies and innovation for the success of a firm?

What is the impact of acculturation, acclimatization, adaptation and is adjustment important?

Literature Review

Global Leadership

The cultures of global organisations and the societies they intend to serve influence the leadership behaviours and strategies a global organisation adopts. According to Nadeem and Mumtaz (2018), leadership is dependent on culture which implies that the influence and status of leaders considerably vary between cultures as a result of cultural forces. In the same vein, Bader (2017) states that effective global leadership is dependent on the extent to which a leader understands he/she should adapt to the local context. On the other hand, AlMazrouei et al. (2016) state that culture is interwoven in the society within which its consumers are entrenched. As a result, international firms have an increasing demand for leaders who understand different cultures thus can manage employee from different backgrounds for an organisation to effectively compete at the global level (Mendenhall et al.2017).Therefore, it is important that managers acquire the ability to understand how employees from different cultures interpret manager’s actions and perceive their personal behaviour (Bird and Mendenhall 2016). According to Galanou and Farrag (2015), global leaders should show sensitivity to culture which refers to the ability of a leader to understand and act according to the values of the local employees. Leadership strategies that are effective in one country may lead to business failure in another country given differences in culture, economic variables, politics, and legal systems among other factors (House et al. 2013). This calls for global leaders to comprehend cultural differences for their intended overseas markets so as to enhance their chances for individual and organisational success. In cross-cultural management, global leaders are responsible for engaging different nationalities as they extend a firm’s operations across these cultural and national environments (Storey et al.2016).

The rise of expatriate leaders

According to Gundersen et al. (2012), globalisation and business expansion have resulted in firms hiring more competent employees from different countries across the world. Among the major challenges organisations face during the internationalisation process in acquiring leaders and managers competent to manage the organisation during expansion phase (Brewster et al. 2014). As a solution, firms seeking to internationalise hire expatriate leaders and managers (Firth et al., 2014). Sometimes, companies hire expatriate managers and leaders in order to create a positive and friendly culture that welcomes change (Breslin 2014 et al., Rekonen et al., 2016). According to Bird et al. (2016), firms primarily hire expatriate managers and leaders to handle the overseas operations of the firm. Nowadays, a lot of global firms have increased the hiring of expatriate employees so that the firm can manage their global operations effectively and can work accordingly in any particular country (Fee et al., 2012; Li et al., 2013). When hiring the expatriate managers and leaders, organisations seek for the most competent person who can provide the projected benefits to the firm (Lee et al., 2018). The significance of hiring expatriate managers to multinational firms is incontrovertible; according to Gundersen et al. (2012), hiring expatriate employees can be associated with efficiency in managing overseas operations of a firm. Additionally, multinational firms are investing more efforts and resources to improve the performance of expatriate employees in that they have reaped the benefits of hiring them as far as success in overseas operations are concerned (Zang et al. 2014). According to the study of Bird et al. (2016), experienced expatriates and their performance helps a firm achieve not only the short-term goals but also the long-term goals. Given these benefits, global businesses are investing more on expatriate employees and are hiring more expatriate employees so that the firm can perform better in the future and the company can earn more profit (Bartlett et al., 2015). However, majority of the firms have faced conflicts in hiring expatriate employees and effectively positioning them in the organisation (Bashir, 2012; Fee et al., 2012), which implies that before hiring expatriate employees, a firm should first establish their need and the roles they are to be assigned.

For expatriate employees, it is sometimes challenging to manage positioning conflicts within the organisation given they are new to the organisation and may not better understand the organisational culture (Bartlett et al., 2015). The results of a study conducted by Al Mazrouei et al. (2015) reveals that most firms are assertive in solving positioning conflicts so that expatriate employees feel welcome and valued in the firm. On the other hand, Bartlett et al. (2015) establish that to resolve positioning conflicts, firms should make rules and regulations which helps induct expatriate employees to the firm and to their position in a positive way. In agreement, Armstrong et al. (2017) state that work adjustments of the expatriates are important to ensure the firm can manage all the conflicts efficiently. Moreover, firms need to create a welcoming and positive culture so that the expatriate employees can work effectively without feeling different or unaccepted from other employees (Jyoti et al., 2015; Vlajčić et al., 2019). The firms’ positive culture attract the expatriate employees and make them feel comfortable at the workplace. As a result, the expatriate employees work efficiently leading to an increase in organisational performance (Gundersen et al., 2012).

Expatriate adjustment

Expatriate adjustment refers to the extent to which expats are psychological aware of the new business environment and behaviourally capable to drive business success in the foreign culture (Hippler et al. 2015). To be successful in international business management, expatriate managers need to acquire cross-cultural skills. Numerous research use the social learning theory to explain how expatriate managers acquire and adapt personal competences in a new culture resulting in successful adjustment (Dabic et al. 2015). The social learning theory holds that learning is at the centre of personal development and behavioural change (Wang et al. 2014). In global leadership, expatriate managers meet new cultures and the difference between these cultures and the home culture stimulates an expat to acquire new skills and adapt behaviour to fit in the new culture. According to Hippler et al. (2014), expatriate managers rely on direct and indirect host experiences to understand the new culture resulting in continuous re-examination and adjustment of the previously held perceptions about the culture. This interaction also helps expatriate manager to build cultural sensitivity resulting in effective communication across cultures (Zhang and Fan 2014). The person-culture congruence model of cross-cultural learning suggest that expatriate adjustment is dependent on the degree to which the skills of an expatriate fits into the cultural and social environment the expat is expected to work in (Lyles et al. 2014). From this perspective, expatriate leaders should develop new skills for them to effectively meet the expectations of the host society rather than relying on the skills they use in the home society.

Based on learning cross-culture skills, literature on international management reveal that self-maintenance skills, communication skills, interpersonal skills, and perceptual skills are the most important skills for an expat (Wang et al. 2014). Self-maintenance skills helps an expatriate to manage stress and increase self-confidence in a new culture (Haslberger et al. 2014). The interpersonal skills help expatriates effectively interact with staff in the host society. Perceptual skills help expatriates cognitively process unfamiliar human behaviours and situations in the host country. Lastly, communication skills helps expats to acquire information, maintain interpersonal relationships, and successfully solve problems in the host country (Konanahalli and Oyedele 2016). Therefore, the four sets of cross-cultural skills are important and relevant for expatriate managers in successful adjustment and driving business success. Haslberger et al. (2013) identify different adjustment variables for an expatriate to successful drive business success in overseas markets. These adjustment variables are sociocultural adjustment, psychological adjustment, and time to proficiency. Sociocultural adjustment relates to practical social skills, attitudes, and social behaviour that helps an expatriate effectively manage staff in a host country (Zhang 2013). On the other hand, Feitosa et al. (2014) identify three dimensions of sociocultural adjustment namely general adjustment, interaction adjustment, and work adjustment. In general adjustment, an expatriate gains the necessary sociocultural skills to adjust to the general non-work environment. In interaction adjustment, an expatriate acquires necessary sociocultural skills to effectively interact with locals inside and outside the work environment (Nolan and Morley 2014). In work adjustment, an expatriate gains relevant sociocultural skills to adjust to the work environment. Psychological adjustment considers the attitudinal factors of the adjustment process (Lee and Kartika 2014). Similarly, Haslberger et al. (2013) write that psychological adjustment helps an expatriate manage anxiety, depression, fatigue, and tension that could lower the effectiveness of personal productivity in the host country. The time to proficiency variable refers to the amount of time an expatriate takes to reach an acceptable performance level in the new culture (Selmer and Lauring 2013). The faster an expat adapts to the new work role the better it is for an organisation (Huff 2013).

Cultural adjustments in the firms are necessary so that the work environment responds to the needs of expatriate employees leading to higher employee satisfaction (Gundersen et al., 2012). Cultural adjustments also lead to better job performance and give better results to the firm (Bartlett et al., 2015). Global firms are making additional efforts to ensure better relationships between local employees and expatriate employees. This helps the firm make sure that all the employees are working as a team and communicating in an effective way (Bashir, 2012; Gundersen et al., 2012). With a positive and welcoming work environment, expatriate employees are motivated to lead the organisation to the desired goals (Fee et al., 2012). Global businesses strive to facilitate the expatriate employees and make sure they provide a competitive environment so that the expatriate employees can realise their full potential and help the organisation achieve its goals in overseas markets (Rekonen et al., 2016; Selmer et al., 2015). The adjustments of the expatriate employees to work in a new environment is highly appreciated by most of the global firms (Selmer et al., 2015). To realise optimal benefits, global firms set higher standards for expatriate employees so that these employees are motivated to drive organisational performance (Li et al., 2013). In addition, global organisations create a friendly culture in which expatriate employees easily understand the values and goals of the organisation and ensures all actions are aligned organisational objectives (Vlajčić et al., 2019). The expatriate employees also help global firms to implement more innovation and change in the firm in order to make company more profitable. Further, expatriate employees have excellent communication skills which effectively helps them fit into different organisational cultures and implement a change (Min et al., 2013; Selmer et al., 2015). In the same vein, Li et al. (2013) and Vlajčić et al. (2019) write that effective communication and collaboration can make the expatriates employees more comfortable and helps them to adjust in the firm quickly. Furthermore, effective communication and collaboration also helps the expatriate employees to adjust with the local employees that helps them to work efficiently (Przytuła et al., 2014; Selmer et al., 2015).

The U-Curve theory of expatriate adjustment

The U-curve theory was first proposed in 1955 by the Norwegian Sociologist Sverre Lysgaard and later developed by different theorists (Hippler et al. 2014). This theory remains among the most used theories in explaining expatriate adjustment. The theory holds that expats experience different emotions when assigned new cultures and they adjust to the new settings in four stages (Haslberger et al. 2014). First, expats experience higher energy and excitement levels in that they have high expectations. Nonetheless, they experience high level of anxiety given the heightened level of uncertainty in the new setting, which marks the beginning of the second stage. As the expatriates continue living in the new settings and with the required level of support, they understand the new culture and start to adjust culture of the host country, which marks the beginning of the third stage. At the fourth stage, expatriates get completely adjusted to host culture thus regain their excitement and energy. Based on the U-curve theory, the degree of adjustment is not measure by how well an expatriate conforms to the host culture but in terms of attitudes in the new setting, satisfaction and comfort in the new setting, difficulties with different aspects of the new environment, and contact with the host nationals (Lawson and Shepherd 2019). Though true for many, some researchers argue that adjustment do not seem to follow a U-curve patterns leading to development of other patterns such as the W-curve (Eisenberg et al. 2015). On the other hand, Shi and Wang (2014) state that the U-curve theory was informed by the reactions of students yet academic mood may differ from occupation mood, which implies that the theory cannot be used in all fields. Still, Zhang (2013) criticises the U-curve theory holding that it is more of a description of phases of adjustment rather than a theoretical framework of how expatriates progress from one level to the other.

Methodology

Research Approach

The inductive research approach will be adopted for the proposed study. In the inductive research approach, a researcher gathers information and develops a theory after analysing the collected data (Woo et al. 2017). In the same vein, Gioia et al. (2013) write that the purpose of induction is to gather information and use it to understand the nature of a problem after analysis. In this study, the researcher will collect secondary data on expatriate adjustment and analyse this information to gain a better understanding of the process of cultural adjustment and the challenges in cultural adjustment and how it affects organisational performance. According to Ormston et al. (2014), inductive research helps in advancing knowledge and developing new theories, which informed the selection of this research approach.

Research Design

The proposed study will adopt the qualitative research design. The data will be collected in a qualitative manner. Among the approaches to qualitative research design are content analysis and descriptive analysis. (Kumar, 2019; Miller et al., 2012). Qualitative research design helps the researcher to find the results from the different previously published researches and to conclude the research from them by interpreting the results of the previous researches (Tuohy et al., 2013). There are numerous other methods for gathering or collecting the research data in the secondary research. The secondary data provides the internal and external sources in order to collect the data from various previously published articles (Quinlan et al., 2019). Moreover, secondary research also helps the researcher to have a broader understanding of the topic (Miller et al., 2012; Silverman, 2016).

Data Collection

This is a qualitative research thus qualitative data will be collected. Qualitative research approach will help the researcher to analyse and interpret the different previous researches and to get the results based on those researches. The qualitative research approach will help the researcher to identify the main variables of this research. The qualitative research approach include the different methods to interpret the results (Quinlan et al., 2019; Tuohy et al., 2013). This research will be based on the secondary qualitative research method in which the results will be presented in the qualitative manner based on the results of the previously published papers. Among the articles to be reviewed are Bader et al. (2018), Rizwan (2018), Sousa et al. (2017), Tsegaye et al. (2019), Vijayakumar and Cunningham (2016), Lauring et al. (2019), Konanahalli and Oyedele (2016), Selmer et al. (2015), Gullekson and Dumaisnil (2016), Salgado and Bastida (2017) and Wondwossen, and Su (2017).

The data of this research will be collected through the content analysis. Content analysis is the method used in the secondary qualitative research in order to collect the data of the research (Miller et al., 2012; Tuohy et al., 2013). The content analysis will be done in this research through the analysis of content of different previously published researches. Content analysis is used in the researches to analyse and to interpret the results (Tuohy et al., 2013). The data will be collected through the different online sources and the researchers related to the topic will be used in order to collect the data for this research. Content analysis helps the researchers to find out the different results and to learn more about the topic of the research (Quinlan et al., 2019). The data for this research will be collected through the multiple related articles. Majority of the data in this research will be collected by the contents that are highly related to the topic of this research. This whole research will highly be focusing on the dependent and independent variables and it will help to conclude the results from the previous researches. The contents related to the expatriate managers to adapt the cultural change will highly be focused in this research that will provide the better understanding of the topic and will make the research more relevant.

Data analysis

Thematic analysis will be adopted for the proposed research. Vaismoradi et al. (2013) define thematic analysis as the process of identifying themes within qualitative data and use these themes to answer the research questions. Having analysed the content of various relevant sources, the researcher will identify different recurrent themes and analyse the collected data based on these themes. Results will be presented based on the identified themes and relation made to the research objectives. Data will be analysed on 8 themes namely adjusting to the work, adjusting to interacting with the locals, adjusting to the general non-work environment, psychological adjustment, time proficiency, organisational support, cultural distance, and expat personality.

Limitations

The limitations will also be considered in the conduction of this research. One of the core limitations in this research will be the limited access of the articles. In addition to this the limited admittance and the limited online sources will also be one of the major restrictions that will be faced in this research as this research is based on the secondary qualitative method. In order to access the articles, a huge amount of cost will be incurred and that will be expensive for the researcher as those paid articles will not be possible to access in free on any online source. Furthermore, the cost to conduct this research will also be limited and due to this, the researcher will not be able to put such a high cost in conducting this research. Due to these restrictions, the researcher will not be capable enough to gather the more data and will only collect the limited amount of data for this research. Moreover, limited amount of libraries will also be appropriate for the researcher to mine the data and information that are appropriate for this research and related to the topic.

Ethical Considerations

Ethical concerns are very important to be considered in order to conduct any research (Miller et al., 2012). All the data of the research will be extracted from the appropriate researches and also from the authentic sources. In addition, the collected data in this research will not be directly copied from any source. Moreover, proper citations of the work will be provided in this research that will eliminate the factor of an unethical behaviour or an unethical act. All the data of this research will be collected through the different online sources along with the considerations of the moral values. The gathered data for this research will only be used for this particular research and will not be used for any other purpose in the future. Furthermore, no material will be provided to anyone in order to avoid the unethical acts in future. All the facts and figures will be provided with the proper citations and with mentioning the correct sources. This research will satisfy the overall ethical values that are important in order to conduct any research.

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