A Comparative Study of the Perceptions of Argentinean and Mexican Managers and Non-Managers about Managerial and Leadership Effectiveness
A Comparative Study of the Perceptions of Argentinean and Mexican Managers and Non-Managerial Employees about Managerial and Leadership Effectiveness
Carlos E. Ruiz, PhD
Georgia Gwinnett College
Email: [email protected]
Robert G. Hamlin, PhD
University of Wolverhampton, UK
Angeles Carioni, PhD
Barry University
Abstract
Purpose
The purpose of this study was to compare the perceptions of Argentinean and Mexican managers and non-managerial employees about effective and ineffective managerial behaviour.
Design/methodology/approach
A qualitative multiple cross-case and cross-nation comparative analysis of findings obtained from the two past emic replication (Argentina and Mexico) studies was conducted.
Findings
Our findings suggest that Argentineans and Mexicans perceive effective and ineffective managerial behaviour in a very similar manner which brings into question the extent to which national or societal culture plays a role in the perception of effective/ineffective managerial behaviour.
Research limitations/implications
We suggest that more replication studies and other research using different methodologies should be conducted before concluding that Argentineans and Mexicans perceive managerial and leadership effectiveness in a very similar manner.
Practical implications
We suggest our study could be used by Argentinean HR professionals when preparing Argentinean managers for assignments in Mexico. And by the same token, these findings could be used by Mexican HR professional when training Mexican executives for managerial assignments in Argentina. Reinforcing the set of managerial practices that are perceived as effective in both countries and emphasizing those practices that may be particular to Argentina or Mexico, could lead to an improvement in the performance of Argentineans managing in Mexico and Mexicans managing in Argentina.
Keywords: Managerial Effectiveness, Mexico, Argentina.
Introduction
The role that Latin America is playing in the global economy is significant. An example of this is the level of inflows of Foreign Direct Investment (FDI) to the Latin American region compared to other regions of the world. According to the Economic Commission for Latin America and the Caribbean (ECLAC, 2014), the inflows of FDI to Latin America and the Caribbean reached $184.92 billion in 2013; close to a five percent increase compared to 2012. More significant than these figures is the fact that this increase in FDI took place in a year when there was a generalized fall of about 13% of international FDI. This outstanding record in FDI inflows reached by the Latin American region is thought to be the result of two main reasons: i) the economic crisis and uncertainty facing developed countries that have resulted in deviating investments to emerging economies, and ii) Latin American local conditions being appealing to global investors (Porter, 2013).
Even though European Union countries and the United States are still the largest investors in Latin America, there has been a substantial increase of investment made by Latin American companies in the region. In 2012 these investments represented 14% of the total FDI that entered Latin America. The largest inward increases were in Peru (49%), Chile (32%), and Argentina (27%), while Mexico was the regions largest outward investor in 2012 (International Business Times, 2013).
Particularly relevant to the Latin America economy is the role of Mexico and Argentina which are the second and third largest economies in the region. The commercial relationship between Argentina and Mexico became predominantly important in the last decade. An example of this is the increase in commercial trade between Argentina and Mexico from 2001 to 2011. Mexican exports to Argentina increased 703% while the Argentinean exports to Mexico increased 140% for the same period (CNN Expansion, 2012). Furthermore, the investments made by Argentinean-owned companies in Mexico was close to $600 million between 1999 and 2006, representing 50.2% of the total investments made in Latin America by the 12 ALADI (Latin America Association of Integration) countries (Wharton School of Business, 2007). The direct investments made by Mexico in Argentina tripled in value by 2006 reaching $1.9 billion, resulting in Mexico having more investors in Argentina than in the rest of Latin America. Argentina became an important attraction for Mexican investors because it is considered a gateway to the MERCOSUR (Southern Common Market) countries (Argentina, Brazil, Uruguay, and Paraguay). In addition, investing in Latin American countries like Argentina is a strategy taken by Mexican companies to reduce their dependence on NAFTA. Argentina has become Mexicos third commercial partner in Latin America after Brazil and Chile (Wharton School of Business, 2007).
The increased commercial ties between Mexico and Argentina could be attributed to different factors such as Mexico looking to expand commercial relationships with other regions of the world to become less dependent on the US economy. However, regardless of what has motivated closer economic relationships between Mexico and Argentina, these relationships have led to the need to better understand the similarities and differences in regards to effective managerial and leadership practices in these countries.
The positive impact of effective leadership and management practices for an organization has been widely discussed. Effective managers have a positive impact on the competitiveness of the organization because of their capacity to influence the performance of employees and consequently the performance of the organization (Addis, 2003). Furthermore, Ireland and Hitt (2005) suggested that, by using effective leadership practices, managers at different levels can make organizations more competitive to face the challenges of globalization. This view is supported by Rausch (1999) who stated that no matter what the organization's activity, or country, the better the decisions of its managers and leaders, the more likely that the organization will thrive (1). Additional research on this topic indicates that effective managers have a positive impact on job satisfaction and productivity (Bass 1985; Bass and Avolio 1993; Burns 1978).
In the case of Argentina and Mexico, despite the relevance that both countries play in the global economy, there is scarce research that addresses the issue of managerial and leadership effectiveness in these countries. And we found no research that compares the types of managerial and leadership behaviors that are manifested in these two countries. In fact, as indicated by Hernandez-Romero (2010), the majority of research on the topic of management and leadership has been focused on countries in Western Europe and North America (Canada and the United States). Therefore, these researchers have called for studies on management and leadership in other regions of the world like Latin America, especially because Latin America is becoming more relevant to the global economy as suggested by the increased inflows of FDI.
Our study is in part a response to this call, and it builds upon two studies of perceived managerial and leadership effectiveness that we have carried out previously in Argentina and Mexico (Ruiz, Wang & Hamlin, 2013; Ruiz, Carioni & Hamlin, 2014), and seeks to compare the perceptions of Argentineans and Mexicans about managerial and leadership effectiveness and ineffectiveness. These two studies replicated several replication studies carried out in the UK by Hamlin and Cooper (2007), Hamlin and Bassi (2008), and Hamlin and Serventi (2008), and carried out in China by Wang (2011). In accordance with these previous studies, our use of the term managerial and leadership effectiveness refers to the behavioral effectiveness of managers in performing their everyday tasks of managing and leading people (Ruiz, Wang & Hamlin, 2013, p. 131). In the context of this definition the word leadership relates to the everyday activity of leading people that managers at different levels in the organization perform as an integral part of their managerial job. This type of leadership is what House et al. (2004) described as general leadership, and House and Aditya (1997) described as supervisory leadership.
We suggest that research on managerial and leadership effectiveness is particularly relevant in Latin American countries due to the increased levels of FDI (World Bank Group, 2012). And due to the increasing commercial relationships in the last decade between Mexico and Argentina, we consider it is imperative to explore the similarities and differences in managerial and leadership practices and behaviours, especially due to the impact that these can have on the competitiveness of organizations.
Literature Review
Research on management effectiveness and leadership effectiveness in Mexico
Research that provides insight on how to be an effective manager in Mexico is scarce. Hoftstedes cross cultural research (1980) suggests that Mexican employees feel comfortable with rules and uncomfortable with ambiguity. In addition, Mexicans are willing to accept authoritarian managers and uneven power distribution. The research also suggests that Mexicans are highly collectivistic and expect that employers take care of employees. Moreover, Mexicans are high in masculinity. In general, Mexicans believe that men and women assume different traditional roles; therefore, they are willing to accept gender inequalities (Navarro, 2005).
The GLOBE stu
