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The Effects of TM and CM on Organizational Leadership in Foreign Entities of MNCs


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Cross-functional FA Factors Consisting of TM, CM, and OL Practices

Factor 1: Information collected from internal and external stakeholders to develop talented leaders (F1) PTM5, (0.746); PTM6, (0.679); PCM7, (0.507); PCM8, (0.713)
Factor 2: Expected competencies at work and managers’ competency gap research (F2) PCM4, (0.781); PCM5, (0.597)
Factor 3: Identification of talented leaders, core competencies, and developmental programs (F3) PTM1, (0.697); PTM2, (0.707); PCM1, (0.635); POL1, (0.630); POL2, (0.521)
Factor 4: Leadership succession based on expectations of internal and external stakeholders (F4) POL3, (0.617); POL7, (0.659); POL8, (0.621)
Factor 5: Knowledge management as inspiration to teach managers and shape proactive organizational culture (F5)a PCM3, (0.518); PCM6, (0.588); PCM7, (0.524); POL5, (0.561); POL6, (0.620)

Components (practices) of OL, TM, and CM

OL practices TM practices CM practices
Identification of leadership talents (POL1) Criteria for TM identification (PTM1) Competencies of the managerial staff identification (PCM1)
Leadership developmental programs (POL2) Measurement of employee creativity (PTM2) Knowledge and skills of employees identification (PCM2)
Succession programs in managerial positions (POL3) Systemic TM within the development paths (PTM3) Cyclical measurements of the competency of managerial staff (PCM3)
Support solutions for so-called natural leaders (POL4) Trans-organizational cooperation between talented employees (PTM4) Cyclical measurements of the knowledge and skills of employees (PCM4)
Co-financing postgraduate leadership studies or MBA programs (POL5) R & D facilities for talented employees (PTM5) Regular examination of the competency gap of managerial staff and designing solutions to deal with this problem (PCM5)
Implementation of proactive organizational culture (POL6) Platform for the exchange of experience and knowledge using ICT tools (PTM6) Regular examination of the knowledge and skills gap of employees and designing solutions to deal with this problem (PCM6)
Monitoring and periodic evaluation of employees’ opinions and expectations towards managers (POL7) A dynamic (changing over time) competency database (PCM7)
Regular external stakeholder surveys (opinions about managers) (POL8) CM associated with other HRM subfunctions (PCM8)

Analysis of Variance for the Category “Duration of the MNC’s Operation in the market’a

Variable  
SS effect df effect MS effect SS error df error MS error F P
F1 1.455991 2 0.727995 51.87512 197 0.263325 2.764622 0.065446
F2 0.925991 2 0.462996 49.82276 197 0.252907 1.830692 0.163019
F3 2.367441 2 1.183720 43.71876 197 0.221923 5.333932 0.005547
F5 2.009550 2 1.004775 29.34965 197 0.148983 6.744227 0.001469

Analysis of variance for the category “Size of the organization measured by the number of employees”‘

Variable  
SS effect df effect MS effect SS error df error MS error F P
F1 2.95896 2 1.479478 50.37216 197 0.255696 5.78608 0.003616
F2 3.86220 2 1.931101 46.88655 197 0.238003 8.11377 0.000411
F3 10.45300 2 5.226500 35.63320 197 0.180879 28.89497 0.000000
F5 4.35244 2 2.176222 27.00676 197 0.137090 15.87439 0.000000

Analysis of Variance for the Category “Type of Business Profile (Industry)”‘

Variable Analysis of variance (empirical data, with variable names)The marked effects are significant with p < .05000
SS effect df effect MS effect SS error df error MS error F P
F1 2.95896 2 1.479478 50.37216 197 0.255696 5.78608 0.003616
F2 3.86220 2 1.931101 46.88655 197 0.238003 8.11377 0.000411
F3 10.45300 2 5.226500 35.63320 197 0.180879 28.89497 0.000000
F5 4.35244 2 2.176222 27.00676 197 0.137090 15.87439 0.000000

Correlations Among Means of TM, CM, and OL Subfunctions in Foreign Entities of MNCs

Variable  
TM CM OL
TM 1.00 0.65 0.716
CM 0.65 1.00 0.72
OL 0.716 0.720 1.00

Cross-subfunctional FA of TM, CM, and OL Practices

Variable Main components
F1 F2 F3 F4 F5
PTM1 0.203971 0.206565 0.696957 -0.122646 0.212200
PTM2 0.003072 0.084021 0.706751 0.166188 -0.009125
PTM3 -0.237242 0.328001 0.308193 0.423943 0.187869
PTM4 0.283543 0.328882 0.056594 0.099903 0.337084
PTM5 0.746452 -0.009727 0.256349 -0.002722 0.006364
PTM6 0.678741 -0.024147 0.305672 -0.028115 0.161573
PCM1 0.292974 0.075215 0.634741 0.107992 0.049413
PCM2 0.104725 -0.321459 0.476574 0.423784 -0.100998
PCM3 -0.177512 0.223131 -0.008107 0.372466 0.518553
PCM4 0.015860 0.780665 0.115506 0.098051 0.138194
PCM5 0.189253 0.597312 0.249207 0.041709 0.145321
PCM6 0.064451 -0.226948 0.318681 0.172765 0.587805
PCM7 0.507667 0.094967 0.097238 0.130438 0.524196
PCM8 0.713526 0.214968 0.013797 0.117594 0.157545
POL1 0.244591 0.226397 0.630445 -0.106256 0.398226
POL2 0.004479 0.240939 0.520853 0.117598 0.400344
POL3 -0.058101 0.076250 0.076725 0.617543 0.242469
POL4 0.374017 0.085322 -0.077403 0.219039 0.378583
POL5 0.319469 0.317459 0.211267 -0.007537 0.561206
POL6 0.203485 0.182356 0.118629 -0.024137 0.620344
POL7 0.220329 -0.078969 -0.006335 0.659127 0.130516
POL8 0.184955 0.385326 0.101613 0.620955 -0.234019
Explained variance 2.560882 1.909037 2.809015 1.910326 2.479604
Share 0.116404 0.086774 0.127682 0.086833 0.112709

Correlations Among TM, CM, and OL Practices in Foreign Entities of MNCs

Variable  
POL1 POL2 POL3 POL4 POL5 POL6 POL7 POL8
PTM1 0.55 0.51 0.25 0.29 0.53 0.35 0.24 0.23
PTM2 0.54 0.40 0.23 0.25 0.36 0.26 0.15 0.23
PTM3 0.30 0.38 0.27 0.20 0.24 0.26 0.12 0.26
PTM4 0.36 0.30 0.24 0.22 0.42 0.30 0.27 0.24
PTM5 0.31 0.21 0.14 0.28 0.34 0.22 0.18 0.26
PTM6 0.43 0.,35 0.26 0.24 0.42 0.32 0.31 0.34
PCM1 0.54 0.43 0.25 0.24 0.37 0.35 0.30 0.24
PCM2 0.32 0.33 0.10 0.15 0.25 0.21 0.22 0.29
PCM3 0.14 0.26 0.19 0.20 0.18 0.18 -0.02 0.10
PCM4 0.42 0.32 0.18 0.30 0.33 0.27 0.16 0.06
PCM5 0.44 0.41 0.14 0.28 0.32 0.40 0.29 0.22
PCM6 0.44 0.40 0.22 0.28 0.35 0.28 0.16 0.16
PCM7 0.38 0.40 0.14 0.28 0.35 0.39 0.25 0.16
PCM8 0.43 0.34 0.12 0.26 0.36 0.37 0.23 0.19