Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China

Abstract

Organizational paradox has received substantial scholarly attention; however, the literature has not yet explored the idea that it can be ingrained and manifested as an international organizational culture. In this study, we conceptually explore and empirically examine paradoxical organizational culture and its impact on international firm performance. In this vein, this study advances our knowledge of international organizational culture by extending paradox theory. We propose a “paradoxical organizational culture” as a type of international organizational culture characterized by the sustained and visible coexistence of contradictory cultural features within an international organization. We also argue that the effectiveness of paradoxical organizational culture is amplified, not dampened, by authoritarian leadership. Quantitative analyses based on cluster groups were used to examine the relationships among paradoxical culture, leadership, and firm performance. The empirical results, based on original survey data collected from China (2256 individual respondents from 394 Chinese international firms), support our claims. Our study is expected to provide implications for those interested in the concepts of paradoxical organizational culture and authoritarian leadership in the international business context.