Leadership across cultural borders is the new frontier in leadership studies. Increased globalization means leaders are dealing with a variety of cultures in and out of their own countries. Leaders must be experts in understanding what cultural dimensions mean for being effective outside their own comfort zone. Americans in particular are often ill-equipped to understand the cultural complexities for international leadership. In Leadership Peruvian Style, author Tim McIntosh addresses how Peruvians define and practice leadership, providing a model to assist the cross-cultural worker in understanding leadership in both the home and host cultures. McIntosh's findings are based in an empirical study conducted in 2008 that featured focus groups composed of Peruvian citizens. The study results described in Leadership Peruvian Style are not only important for those working in Peru and other parts of Latin America, but also give insight into how to analyze the leadership profile of a particular culture and, in turn, make adjustments in order to be more effective. Through this analysis, McIntosh, who has spent twenty-seven years in leadership in Peru, has contributed to the raising up of a new generation of effective leaders in Latin America.

Leadership Peruvian Style

How Peruvians Define and Practice LeadershipBy Tim McIntosh

iUniverse, Inc.

Copyright © 2011 Tim McIntosh
All right reserved.
ISBN: 978-1-4620-5838-9

Contents

List of Tables..........................................................................................................................................................................................................................................................viiAcknowledgments.........................................................................................................................................................................................................................................................xiiiForeword................................................................................................................................................................................................................................................................xvIntroduction............................................................................................................................................................................................................................................................xvii1. The Leadership Gap in Peru...........................................................................................................................................................................................................................................12. The Peruvian Context.................................................................................................................................................................................................................................................103. Studies of the Cultural Dimensions of Leadership.....................................................................................................................................................................................................................334. Leadership Studies in Latin America..................................................................................................................................................................................................................................495. Leadership Literature by Peruvians...................................................................................................................................................................................................................................566. Conducting the Study.................................................................................................................................................................................................................................................607. Results..............................................................................................................................................................................................................................................................738. Significance of Results..............................................................................................................................................................................................................................................1219. Implications of Research and Proposed Future Research................................................................................................................................................................................................................149Final Thoughts..........................................................................................................................................................................................................................................................153About the Author........................................................................................................................................................................................................................................................155Appendix A: Standardized, Open-Ended Interview for Focus Group on the Topic of Peruvian Leadership Definition and Practice..............................................................................................................................................157Appendix B: Introduction Given to Focus Groups Preceding the Standardized, Open-Ended Interview on the Topic of Peruvian Leadership Definition and Practice.............................................................................................................159Appendix C: Focus Group—El Consorcio de Organizaciones Privadas de Promoción al Desarrollo de la Micro y Pequeña Empresa (COPEME) (Consortium of Private Organizations that Promote the Development of Medium and Small Businesses).....................162Appendix D: Focus Group—Grupo Empresarial Vega (GEV) (The Vega Business Group)....................................................................................................................................................................................178Appendix E: Focus Group—Seminario Evangélico de Lima (SEL) (The Evangelical Seminary of Lima)................................................................................................................................................................198Appendix F: Focus Group—Productos Alimentos Tresa S.A. (Tresa Food Products, Inc.)................................................................................................................................................................................226Appendix G: Cooperativa de Ahorro y Crédito-PetroPeru LTDA. (PetroPeru Credit Union)...............................................................................................................................................................................245Glossary................................................................................................................................................................................................................................................................257References..............................................................................................................................................................................................................................................................261Index...................................................................................................................................................................................................................................................................277

Chapter One

The Leadership Gap in Peru

Interview participants from five focus groups agreed with the conclusion of recent popular writers on Peru that the country lacks effective leadership (Barnechea, 2004; Falcoff, 2002; Ortiz de Zevallos, 2002). This study takes an important step in addressing that lack by providing insight from empirical data on the research question, how do Peruvians define and practice leadership? House et al. (2004) reported that the understanding and practice of leadership varies greatly from one culture to another. A culturally specific definition of leadership and an understanding of leadership practices in Peru resulted from this investigation. The information will help Peru's current and future leaders meet the considerable challenges they face (Falcoff, 2002).

Reason for the Study

Peru faces numerous difficult political, economic, educational, and military situations that require effective leadership (Simpson, 2004). Weathersby (1998) proposed that Latin America's economic crisis stems from a paucity of leadership and stated that only intentional leadership development will change the situation. According to Sanchez (2007), there exists a void in political leadership throughout Latin America, including Peru. Escobar (2005) called leadership formation the greatest need for the Latin American evangelical church. Mistrust in leadership is common (Simpson, 2004) in this country approximately the size of Alaska, with over 28 million people. For example, Alejandro Toledo, Peruvian president from 2001 to 2006, witnessed his popularity percentage rating bounce in and out of single digits during much of his term (St. John, 2005). The fact that 24 candidates ran for president in the April 2006 election indicated that the country has no leaders recognized by societal consensus ("APRA y Unidad", 2006). A government-sponsored poll reported that only 20% of Lima residents have confidence in the existing political parties ("Solo el 20%", 2006), demonstrating another example of mistrust in leadership. Things went a bit better for Alan Garcia in his second term (His first term was 1985 to 1990.) as he finished with a 46.2% (CPI: Presidente Alan García deja el cargo con 46.2% de aprobación Martes, 2011) approval rating in July of 2011 "Only" 13 candidates ran in the 2011 election won by Ollanta Humala as he gained 33% of the first ballot votes and just under 52% of the second ballot ("Ollanta Humala gana las elecciones en Perú y promete hacer un gobierno de concertación," 2011).

The Research Question: How Do Peruvians Define and Practice Leadership?

A need for more study on leadership, specifically in Peru, drives the research question of definition and practice of leadership in Peru. Up to this point, those desiring to find answers regarding how to fill the leadership void had little to refer to, other than Hofstede's (1980, 2001) research on cultural dimensions in Peru. More recently, House et al. (2004) listed nine cultural dimensions of leadership behavior in a cross-section of Latin American countries, yet that study did not include Peru. House et al. proposed that leadership practices vary from culture to culture. In order to label the varying practices, they listed six culturally endorsed implicit theories of leadership (CLT). This study finds that Peru has such a profile and presents it in chapter 7.

While both the Hofstede (1980) and House et al. (2004) studies provided helpful information for understanding leadership in Peru, neither intended to supply sufficient data for a thorough study of leadership in the Andean country. Peruvians need more research in order to understand leadership in their country. They then must use that understanding to prepare the necessary leaders to meet the needs of a complex world, where quality leadership is the most important element to organizational success (Collins, 2001).

Investigation of the research question led to the formation of an operational definition of leadership in Peru and the gathering of important data on the nation's leadership practices. The data on leadership definition and practice came from Peruvians themselves. Previously, there has been little data to aid those wishing to design leadership-formation programs in Peru. This study provides a needed starting point for such programs.

Theory and Variables that Apply to the Research Question

Influence of Leadership on Organizations

Bass (1990), Burke and Day (1986), and Clark, Clark, and Campbell (1992) proposed that leadership has a positive influence on organizations. House et al. (2004) reported that effective leadership is the most important factor in organizational success. Gregersen, Morrison, and Black (1998) surveyed international firms and found that 85% of executives do not think they have an adequate number of global leaders. More than 65% believe that their existing leaders need additional skills and knowledge before they can succeed on the international scene. Peruvians who wish to improve as leaders or to train others in leadership have found little in the way of empirical studies in their own culture.

Iles (1993), Storey, Mabey, andThomson (1997), and Drew and Wah (1999) observed that organizations use leadership development programs to find effective ways to provide needed leadership. It is likely that better leadership would have a positive influence on Peru, and it is also likely that better leadership development would result from an improved understanding of leadership in Peru.

Need for Culturally Specific Study on Leadership

House et al. (2004) emphasized that with the increasing globalization, leaders must understand cultural differences when working internationally. Though they observe heightening sensitivity to cultural differences on the world scene, they nevertheless underline the need for culturally specific studies of leadership based on data coming from a particular culture. While the study of leadership and organizational behavior is increasing (Northouse, 2004), House et al. pointed out that 90% of the organizational behavior literature reflects U.S.-based research and theory. Universal definitions of leadership abound (Bass, 1990), yet House et al. pointed out that the definition and practice of leadership varies from culture to culture. This study theorizes that to understand leadership better in Peru, research should allow Peruvians to respond to leadership issues with open-ended questions not necessarily tied to particular theories developed outside the country.

Escobar (2000) cautioned against forcing all of Latin America into one cultural category, as major differences exist between the various cultural groups in the region. He drew attention to the need for culturally specific studies on all topics, including leadership, across the region. Escobar (2000) called for the grouping of various countries with similar cultures within Latin America. Núñez and Taylor (1996) made a case for the existence of many Latin Americas, not just one, because of the diversity that exists among the countries. Their observation points to the need for country-specific studies such as this one.

The bulk of leadership theory has evolved in the English-speaking world (House et al., 2004) and has developed roughly in this order with an emphasis on the following approaches: (a) trait, (b) skills, (c) style, (d) situational, (e) contingency, (f) leader-member exchange, (g) transformational leadership, and (h) team leadership (Northouse, 2004). While duplication of studies pertaining to these theories does exist in some non-English-speaking cultures (Offerman & Hellmann, 1997), most other cultures do not have studies testing the reliability and validity of these approaches. Peru is an example of a country where there is little research on leadership developed in its own context. Attempts at universal definitions may be helpful, yet their universal nature probably causes them to fall short with regard to specific cultural nuances.

The Global Leadership and Organizational Behavior Effectiveness Research Program (GLOBE), a monumental study of leadership around the world, defined leadership as "the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members" (House et al., 2004, p. 15). This definition is the result of the collective work of 170 researchers from 62 countries.

Despite having arrived at this definition, GLOBE went on to state that there is no universally agreed-upon definition of leadership. Furthermore, according to GLOBE, leadership practice changes from culture to culture. House et al. (2004) defined culture as "shared motives, values, beliefs, identities and interpretations or meanings of significant events that result from common experiences of members of collectives that are transmitted across generations" (p. 15).

The components of effective leadership have been widely studied (Yukl, 2002), but questions exist as to which components, if any, are cross-cultural. French and Raven (1959) observed that leadership relates to the correct use of power, whether it is (a) legitimate power, (b) reward power, (c) coercive power, (d) expert power, or (e) referent power. Greenleaf (1977) believed that an effective leader must be, above all else, a servant. Locke and Latham (1990) equated effective leadership with goal orientation. Zuckerman and Kover (1990) reported that effective leaders do four things: (a) attain goals, (b) secure resources, (c) perform tasks with excellence, and (d) have high follower satisfaction. Chemers, Watson, and May (2000) concluded that there is a connection between leadership effectiveness and disposition, such as (a) self-esteem, (b) optimism, and (c) efficacy. McCormick (2001) linked self-efficacy and leadership effectiveness. Fairholm (2000) suggested a need for leaders to return to their spiritual roots. Yukl reduced effective leadership to three behaviors: (a) task-oriented behavior, (b) relations-oriented behavior, and (c) participative leadership. Leavy (2003) stated that context, conviction, and credibility are essential to effective leadership. Irving and Klenke (2004) linked an individual's metanarrative to leadership effectiveness.

The research design of this study sought to give Peruvians the freedom to define leadership and leadership practices in a culturally sensitive way. In order to do that, Peruvians gave their own thoughts on leadership in Peru by responding to standardized, open-ended interview items while participating in focus groups.

Cultural Dimensions Pertaining to Leadership Studies

Hofstede (1980) posed a particularly influential theory that is widely discussed in cultural studies of leadership, namely that various dimensions distinguish differences between cultures. His landmark study, using data from IBM managers and employees in over 40 countries, proposed four culture dimensions: (a) power distance, (b) individualism-collectivism, (c) uncertainty avoidance, and (d) masculinity-femininity. After further study, he added future orientation (Hofstede, 1997), which he later renamed long-term orientation (Hofstede, 2001). Since Hofstede (1980) included Peru in his original study, his findings help in interpreting the data on the research question.

House et al. (2004) used nine cultural dimensions, compared to Hofstede's (2006) five: (a) assertiveness, (b) future orientation power distance, (c) gender egalitarianism institutional collectivism (d) humane orientation, (e) in-group collectivism, (f) institutional collectivism, (g) performance orientation, (h) power distance, and (i) uncertainty avoidance. House et al. additionally identified six global leadership behaviors: (a) charismatic/value based, (b) team oriented, (c) participative, (d) humane oriented, (e) autonomous, and (f) self-protective.

The research in this study reveals a distinctively Peruvian approach to leadership explained in detail in chapters 4 and 5. Understanding how Peruvians practice leadership will provide much-needed information and theories to all who are involved in the exercise of leadership or in leadership formation in Peru.

Scope

This study acknowledges that many cultures exist within Peru. The investigation took place in the capital city, Lima. The study examines differences in leadership perspectives according to socioeconomic standing, gender, education, and occupation. The five focus groups included a cross section of participants from various segments of Peruvian society.

Grounded Theory Approach

The study uses a grounded theory approach. According to Patton (2002), "grounded theory is meant to build theory rather than test theory" (p. 127). This study built theory regarding leadership in Peru in the absence of existing theory coming from empirical data. This investigation will help fill the literature gap in the understanding of leadership in Peru. Patton stated that one of the themes of the grounded theory approach is that it is an inductive strategy. He explained inductive analysis as follows: "Immersion in the details and specifics of the data to discover important patterns, themes, and interrelationships; begins by exploring, then confirming; guided by analytical principles rather than rules; ends with a creative synthesis" (p. 41). The focus group research in this study reveals the important patterns, themes, and interrelationships of which Patton spoke. Chapters 4 and 5 provide a synthesis of the data.

Method

The principal method of investigation was the focus group, with each focus group responding to ten items in a standardized open-ended interview. Focus groups consist of people from the same background or profession who participate in an interview for one to two hours (Patton, 2002). Focus group interviews are not problem-solving sessions. The focus group format allows for agreement and disagreement, with the possibility of patterns emerging from group interaction. In this study, there were five focus groups of 6-10 people in each, with participants residing in Lima. Chapter 3 contains a detailed description of each focus group.

Analysis

The data in the study came from Spanish transcriptions of the focus group interviews (see Appendixes C through G). The study used ATLAS.ti 5.2 in order to find the patterns of thought (Patton, 2002) necessary to answer the research question.

Significance of Study

Romero (2005) theorized that leaders whose styles match their followers' leadership prototype have higher perceived effectiveness. This investigation reveals that Peruvian followers desire a different kind of leadership from what they are currently receiving. If Peruvian leaders study the preferences of their followers as found in this study, it is likely they will increase their effectiveness. Romero's (2005) findings are consistent House et al.'s (2004) CLT. The concept of the CLT is significant for this study in that a specific profile of the Peruvian leader emerges from the data. An example of one aspect of the profile is that Peruvians would prefer participatory leaders (Yukl, 2002). This agrees with Romero's study regarding preferences of Hispanics in the United States, and runs contrary to observations coming from Hofstede (1980).

Romero (2005), Dorfman (1996), and House, Wright, and Aditya (1997) all stated that leadership practices that are acceptable in one culture may not be acceptable in another. Such findings demonstrate the need for leaders to base their leadership styles on empirically researched cultural preferences in order to increase their effectiveness. Research on a given culture takes the guesswork out of cultural understanding and allows the leader to decide what style to use to be effective. Peruvian leaders probably have based their styles on presumptions rather than on investigation of followers' preferences. The data and analysis of this study will assist Peruvian leaders in better understanding their followers, making for more effective leadership.

Weathersby (1998) asserted that leadership in Latin America must improve and that change will only occur through intentional steps based on empirical research. Weathersby stated:

Nations and organizations are not victims of malevolent external forces; their leaders have made or enabled the decisions that produced the undesired economic results. Thus, these same leaders or their successors can only reverse the negative consequences of leadership through a change of thought and action. (p. 6)

(Continues...)

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