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

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)

1 Source: Own research.

Table 2.

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

Variable
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

1 Note. Correlations in bold type are significant at p < .05000. N=200. Source: Own research.

Table 3.

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

Variable
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

1 Note. Correlations in bold type are significant at p < .05000. N=2.

1 Source: Own research.

Table 4.

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)

1a Factors, which are an effect of FA, are named based on discussions with specialists in HRM (both researchers and practitioners) from different types of companies.

1 Source: Own research.

Table 5.

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

Variable	Main components
Variable	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

1 Note: Factor loadings (Varimax). (The loads marked in bold type are >.500000).

Source: Own research.

Table 6.

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

Variable
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

1a 16 companies fewer than 10 years; 99 between 10 and 20 years, and 85 over 20 years.

Source: Own research.

Table 7.

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

Variable
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

1a 16 companies with fewer than 50 employees, 49 with between 50 and 249 employees, and 135 with over 250 employees. Source: Own research.

Table 8.

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
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

1 Note: ‘The 16 companies represent manufacturing; 49, retail; and 135, services. The effects marked in bold type are significant with p < .05000. Source: Own research.

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DOI: https://doi.org/10.2478/ijcm-2023-0005 | Journal eISSN: 2449-8939 | Journal ISSN: 2449-8920

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Language: English

Page range: 1 - 14

Published on: Aug 8, 2023

Published by: Jagiellonian University

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Publication frequency: 1 issue per year