Chapter 7
Leadership and Emerging Markets
This session will cover an opening leadership profile, overview of leadership in five emerging
markets, and a scenario.
Opening Leadership Profile: Maria Foster as a Leader in a Male-dominated Field:
Maria Foster became the first female chief executive officer (CEO) of Petrobas in 2012. At 57,
Foster was ranked among the top 20 most powerful women in the world by Forbes, competing
with women heads of state for the ranking. The culture of high power distance and low gender
egalitarianism was a key formative influence on Foster and her leadership style. To assume her
premier position she had to master the hard-nosed analytical style of a corporate executive, be
able to overcome male chauvinism, and yet develop her persona as a role model for other
women.
This session focuses on leadership in five emerging markets: Confucian Asia, Southern Asia,
Middle East, Sub-Saharan Africa, and Latin America.
1. Leadership in Confucian Asia
Confucian Asia comprises the nations of the Far East historically influenced by Confucian
ideology. Confucianism emphasizes benevolence as the primary principle governing leadership.
Leadership in Confucian Asia is best understood as a composite of both culturally universal as
well as culture-specific aspects.
Traditional Confucian leadership: three-dimensional model of paternal leadership:
1. Authoritarianism:
Leaders assert strong control and authority; followers display dependence and respect.
Shares affinity with autocratic-style leadership in terms of centralized authority.
2. Benevolence:
Collectivist-cooperative orientation, “granting
Shares affinity with supportive-style leadership.
favors”
to
promote
harmony.
3. Moral leadership:
Leaders demonstrate superior character, integrity, and discipline, leading by example;
followers identify with the leader. Shares affinity with inspirational-style leadership.
While leader/follower behaviors associated with the authoritarianism, benevolence, and moral
model of paternal leadership (PL) are culture-specific, there are particular factors that can
© Taylor & Francis 2015
influence the nature of this relationship. Two situational factors have been emphasized: follower
tradition and follower resource dependence.
Combined styles and pluralistic expressions
In Confucian Asia there is a coexistence of universal and culture-specific aspects: follower
tradition and resource dependence tend to be weaker in more economically developed and urban
regions, and among the educated class and younger generations.
In a survey of 360 Chinese leaders, Law (2012) found that rural areas showed more support for
traditional Confucian authoritarian leadership, urban areas showed more support for other
attributes of traditional Confucian leadership, as well as Western leadership.
The 2014 study of GLOBE (House et al.) finds that those perceived to be superior CEOs in
China tend to exceed cultural expectations for leader behaviors on all 21 primary leadership
factors.
2. Leadership in Southern Asia
Southern Asia includes the region from eastern Iran to Southeast Asia (excluding Vietnam and
Singapore). Leadership in Southern Asia is best understood in the diverse cultural and religious
traditions of the region. As in Confucian Asia, family relationships form fundamental cultural
units in the Southern Asia region. Therefore, the paternal style of leadership, founded in the
tradition of families and family businesses, is prominent; however, instead of paternalism, it is
generally characterized as nurturant leadership.
Nurturant leadership refers to a personal and compassionate relationship with followers, where
leaders provide guidance and control to develop follower competencies, gradually empowering
them with more responsibility. Nurturant leadership shares affinities with the dimension of
benevolence in Confucian Asia, but does not have the similarly strong authoritarian or moral
undercurrents.
The core of nurturant leadership is to build relationships based on genuine human concern.
Genuine leadership (GL) theory: leader genuineness and follower dedication together form the
basis for the best leader-member exchange, allowing for subtle or advanced knowledge to be
transmitted and goals to be accomplished.
Leader genuiness is rooted in the grounded characteristics of figures or persons that members
experience and endear in their lives. Five figures are particularly salient, and they constitute
different variants of the indigenous theories of GL. They are: father-figure, mother-figure, kingfigure, saint-figure, and a guru-figure.
© Taylor & Francis 2015
Combined styles and pluralistic expressions
Both culture-specific and culturally universal attributes coexist in Southern Asia. But unlike
Confucian Asia, where an ideal solution is to find a golden mean and balance, in Southern Asia
the ideal solution is often to realize the extremes of both values.
Braasch (1999) survey found local employees preferred and identified more with expats who
combined their deliberate effort to adapt in the Indian context with a demanding leadership,
pursuing both (adaptation and leadership) in a differentiated (individualized for each employee)
manner.
The 2014 study of GLOBE (House et al.) finds that superior CEOs exceed cultural expectations
for leadership behaviors on most of the 21 primary leadership factors; however, they are less
malevolent, autocratic, autonomous, self-centered, and internally competitive than culturally
expected.
3. Leadership in the Middle East
The Middle East is comprised of the Gulf States nations and Northern Africa. Indigenous
scholars typically identify three major influences on the region’s leadership—Western, Arab, and
Islamic. Islamic leadership approaches are perceived to be most effective for the region.
In Islam, leadership is a custodial position and leaders are responsible for the welfare of the
group. Therefore, leadership in the Middle East can be identified in terms of custodian
leadership (CL) theory. Effective leaders are validated by the sense of responsibility and
commitment they give to the organizational or societal family as a whole, and not merely by
financial results.
The three dimensions of custodian leadership are the following:
1. Prophetic (or great man): have miraculous attributes. They motivate by eliciting
voluntary love and free submission, so that the followers strive to perform to their best.
2. Administrative: use the classical management principles of hierarchical organizational
structure, chain and unity of command, obedience and compliance to formal authority.
3. Followership: deploy a contingent approach depending on the nature of followers.
Combined styles and pluralistic expressions
A notable indigenous variant of CL theory is prophetic-caliphal model, which is grounded in
Islamic principles. In this model, the need for a leader emerges when no system (i.e. institutional
framework) for developing followers exists to address the critical issues facing an organization.
© Taylor & Francis 2015
A second variant of CL theory is asabiya-based leadership. Asabiya refers to the collective
bonds and aspirations of the group.
A third variant of CL theory is sheikhocracy, which combines Western bureaucracy with
Bedouin traditions.
Culture-specific approaches to leadership (custodian and its variants) coexist along with
universal approaches in the Middle East.
4. Leadership in Sub-Saharan Africa
Sub-Saharan Africa is the region south of the Saharan deserts, and includes nations that are home
to the diverse indigenous and tribal traditions of Africa. This region shares a history of colonial
exploitation, misappropriation of natural resources by government representatives, widespread
poverty, and high cost of living. Scholars called attention to stories of effective leadership during
the great ancient African civilizations: leaders gained position of authority either naturally (e.g.
wisdom or old age) or institutionally (e.g. status or formal position). This constitutes the basis for
chieftaincy (headship) leadership, or HL theory.
Scholars note various colonial and post-colonial powers destroyed local institutions and practices
that supported chieftaincy leadership. HL was replaced with Eurocentric administrative systems
and values rooted in Western cultural, biological, and technological superiority (Kiggundu
1991).
Globalization has brought an impetus for “African Renaissance.’ Culturally appropriate, ancient
leadership principles are being rediscovered as an integral part of African identity for a majority
of its people (Owusu-Yeboah 2010). Africa is a context characterized by considerable variation,
complexity, and multiculturalism.
The three dimensions of headship leadership are the following:
1. Communal: leaders are expected to behave as chiefs in order to get full cooperation of
followers.
2. Engagement: leaders “actively” connect their capacities to relevant factors to execute
roles with vigor, dedication, and absorption.
3. Participatory: leaders respond to cultural diversity and stakeholder plurality with values
based on human interdependence.
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Combined styles and pluralistic expressions
Most large private enterprises in Africa are owned and led by non-native African groups, which
include Arab, Indian, Chinese, and European descents and/or capital. Similarly, many state
enterprises in Africa rely extensively on foreign aid and capital, and on the consulting and
advisory services that are tied to it.
The new African scholarship holds that the effectiveness of leadership is likely to be higher and
more positive if it recognizes the spirit of culture-specific expressions. Reliance primarily on
West-inspired universal expressions ignores local cultural traditions, and forces leaders to
operate in a historical vacuum.
5. Leadership in Latin America
Latin America region includes Mexico, Central America, and South America, and shares a
common Iberian colonial, religious, cultural, and linguistic heritage. Paternalism is an important
form of leadership in Latin America, but it traditionally takes the form of patrimonial leadership
or cacique. Cacique means the first of the village, the one with more power and authority, and
one who wants to make himself feared and obeyed by all followers (McIntosh & Irving 2010).
Successful ambitious leaders extend their involvement in several differing niches, referred as
cabida de emprego, i.e. “the employment hanger” (Leeds 1965). Participation in several niches
allows leaders to keep in touch with the potentialities of different types of social resources,
represented by various panelinha operating in these niches. Panelinha are groups sharing a
common interest and informal interpersonal relationships.
In navigating their relationships, some leaders operate like a dictator, or caudillo. In normal
times and in better resourced contexts (such as large firms and government enterprises), caciques
operate like a jefe, or boss. In recent times, the despotic, authoritarian, and patriarchal leadership
dynamics is beginning to fade in the Latin American region. The emergent leadership style in the
region has been referred to as the neo-patronomialism (Behrens 2010).
The three dimensions of neo-patrimonial leadership are the following:
1. El Dueño: leaders use clear, transparent, but formal, top-down communication, combined
with assertive, aggressive, and directive behaviors, and limited delegation or use of
teams. El Dueño reflects the use of autocratic and directive styles.
2. Buen Jefe: unlike the jefe who are despised, Buen Jefe are seen as good bosses, who are
ready and available to lead and develop personal relationships with the followers. They
provide backing and protection to followers. Buen Jefe reflects the use of visionary and
inspirational styles.
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3. El Lider: leaders work with followers to solve complex problems on an ongoing basis. El
Lider reflects the use of supportive and participative styles.
Combined styles and pluralistic expressions
Stronger emphasis on any of the three dimensions may be consistent with effective leadership,
depending on the context. A study of Chile and Mexico by Littrell, Barba, and Yaconi (2013)
suggests El Lider dimension, reflecting a nurturing, loving father type of paternalistic managerial
leader, is preferred in Chile. In Chile, the primary role of the leader is to provide security. But in
Mexico, a combination of El Dueño and Buen Jefe dimensions, reflecting a stern, demanding
paternalistic leader who also is willing to grant empowerment to subordinates, is preferred.
Bordas (2013) identifies three principles guiding the collective culturally based community
leadership:
1. personalismo (personal character, reputation, and contributions of the leader),
2. conciencia (inner awareness of leaders of why they seek to be a leader and what they
want to accomplish),
3. destino (everyone was born for a distinct overarching purpose and has a unique life path).
Scenario: Charles Martin in Uganda—Leader Gone Native
Charles Martin was fascinated with Africa after taking a course in pre-colonial history, and
decided to major in African studies at the University of Wisconsin. Later, he joined Hydro
Generation and soon Martin was designated the local project lead for a new power plant in
Uganda. As a project lead in Uganda, he decided to live in a middle-class neighborhood away
from fellow expatriates’ prosperous modern homes. He also learned to speed things up by
offering small tips in advance. Martin also paid for and attended tribal ceremony that involved
sacrifice of animals to please sacred spirits.
After 18 months in the preconstruction phase, the company had to decide whether Martin
was effective in his leadership role and should continue in the construction phase of the project,
and, if yes, should he be asked to share responsibility with a project co-director.
© Taylor & Francis 2015