Leadership Style and Leadership Effectiveness: Does Cultural Intelligence Moderate The Relationship?

Acta Commercii - Independent Research Journal in the Management Sciences
ISSN: (Online) 1684-1999, (Print) 2413-1903

Page 1 of 13 Original Research
Leadership style and leadership effectiveness: Does

cultural intelligence moderate the relationship?
Authors: Orientation: In an age where subordinate cultural heterogeneity has become the norm, cultural
Anthony Solomon1
intelligence might assist leaders to improve their effectiveness.
Renier Steyn1
Research purpose: This research investigated whether leader cultural intelligence moderated
Affiliation:
1
Graduate School of Business
the relationship between leadership style (as represented by empowerment and direction) and
Leadership, University of leadership effectiveness.
South Africa, South Africa
Motivation for the study: Although the literature on cultural intelligence has been increasing
Corresponding author: in quantity, there remained a gap in the understanding of the relationship between leader
Anthony Solomon, cultural intelligence, the empowering and directive leadership styles and leadership
78799139@mylife.unisa.
effectiveness.
ac.za
Research design, approach and method: A quantitative methodology with a cross-sectional
Dates:
Received: 21 Nov. 2016 survey design was followed. Data were obtained from 1140 staff members employed at 19
Accepted: 19 Mar. 2017 South African organisations. Factorial, correlational and moderated multiple regression
Published: 30 June 2017 analyses were performed.
How to cite this article: Main findings: Although leader cultural intelligence and its dimensions do not moderate the
Solomon, A. & Steyn, R., relationship between empowering leadership and leadership effectiveness, they do nonetheless
2017, ‘Leadership style and
negatively moderate the relationship between directive leadership and leadership effectiveness.
leadership effectiveness:
Does cultural intelligence This moderation was, however, assessed to be of no practical significance.
moderate the relationship?’,
Acta Commercii 17(1), a453. Practical and managerial implications: As leader cultural intelligence did not act as an
https://doi.org/10.4102/ important influencer of the relationship between leadership style and leadership effectiveness,
ac.v17i1.453 it appeared that effective leaders may have used their cultural intelligence to actually guide
the selection of an effective leadership style in the first place.
Copyright:
© 2017. The Authors. Contribution and value add: Being one of the first studies to explore the moderating effect of
Licensee: AOSIS. This work
leader cultural intelligence on the relationship between leadership style and leadership
is licensed under the
Creative Commons effectiveness, this research has made a valuable contribution to building both the cultural
Attribution License. intelligence and leadership knowledge bases.
Introduction
Leaders are central to organisational achievement (Araujo-Cabrera, Suarez-Acosta & Aguiar-
Quintana 2016; Muchiri et al. 2011; Murschetz 2005); consequently, it is vital that they be effective.
However, a lack of certainty prevails as to what is necessary for one to be an effective leader
(Rosete & Ciarrochi 2005). This situation is exacerbated in that there is ‘neither a universally
accepted approach to nor definition of’ leadership effectiveness (Mesterova et al. 2015:109).
Accordingly, leadership effectiveness is manifested as a relative judgement predicated upon both
description and evaluated characteristics (Oyinlade 2006).
A particular challenge in the domain of leadership effectiveness has been the assessment thereof.
Specifically, there exists little agreement as to how to measure such effectiveness (Harris &
Kuhnert 2008; Shalhoop & Sanger 2012). Lowe, Kroeck and Sivasubramaniam (1996) suggest two
types of measures: (1) subordinate perceptions and (2) organisational measures. Whilst some
authors (e.g. Hansbrough, Lord & Schyns 2015) highlight concerns, such as common method bias,
in using follower ratings, others (including Hogan & Hogan 2001; Kang & Jin 2015) argue that
Read online: employee assessments are the best manner through which a leader can be evaluated. This research
Scan this QR addresses subordinate perceptions of leadership effectiveness.
code with your
smart phone or
mobile device Perceptions of this type of effectiveness are influenced by leadership styles (Weaver 2015). These
to read online.
may be defined as ‘the relatively consistent pattern of behavior that characterizes a leader’
http://www.actacommercii.co.za Open Access

(DuBrin 2016:518). Although a myriad of such styles exist effectiveness and Egel and Fry (2016) maintain that leaders
(Widder, Kolthoff & Brindley 2016), Pearce et al. (2003:273), must grasp varied cultural perspectives, Ayman and Korabik
by means of an analysis of the leadership literature, offered (2010) go a step further in submitting that to be effective,
a leadership typology comprising ‘four theoretical leaders must cultivate a multicultural mindset. Hence,
behavorial types’, being transactional, transformational, ethnocentrism, defined as ‘the view of things in which one’s
empowering and directive leadership. Both Houghton and own group is the center of everything, and all others are
Yoho (2005) and Ramthun and Matkin (2012) draw attention scaled and rated with reference to it’ (Sumner 1906:13), may
to the value of this typology by pointing out that it has been inhibit the effectiveness of leadership (Kumar, Anjum &
employed by a number of scholars as a foundation upon Sinha 2011; Northouse 2013); that is, leader actions that are
which to conceptualise various leadership models. Whilst incongruent with essential follower values arouse adverse
the transactional and transformational styles occupy sentiments (Mustafa & Lines 2012). Specifically, leaders’
prominence in current leadership literature (Clark & Waldron ethnocentric tendencies may have a toxic effect on their
2016; Sims, Faraj & Yun 2009), empowering and directive relationship with subordinates (Caligiuri & Tarique 2012).
leadership have attracted considerably less focus (Kalaluhi
2013; Sharma & Kirkman 2015). There has also been some The need for leadership that is able to navigate effectively
criticism in the literature as to the distinction between those across diverse cultures is therefore both exigent and extensive
behaviours that load onto transactional and transformational (Groves & Feyerherm 2011; Ko 2015; Lovvorn & Chen 2011;
leadership as a result of factor analyses (Yukl 1999). This Manning 2003). Alon et al. (2016) point out that effective
study therefore concentrated exclusively on empowering leadership is founded upon multiple intelligence types, one
and directive leadership. of which is cultural intelligence (CQ) – or ‘a person’s capacity
to adapt to new cultural settings’ (Earley 2002:271). It has
Leadership styles are culturally contingent (Bass & Bass 2008; been suggested that CQ may contribute to overcoming
House et al. 2002; Paulienė 2012; Rockstuhl et al. 2011) as are ethnocentrism (Caldwell 2015; Triandis 2006) and, to this
perceptions of their respective effectiveness (Eckert et al. end, Harrison (2012) found a negative correlation between
2010; Holt, Bjorklund & Green 2009; Jogulu 2010; Yan & Hunt ethnocentrism and CQ. Livermore and Ang (2016) argue that
2005). Based on their work, Martin, Liao and Campbell (2013) CQ is a trustworthy forecaster of one’s effectiveness, whereas
draw attention to the necessity of leaders modifying their Oliverio-Olivieri (2016) maintains that leaders who are
behaviours, given subordinates’ perceptions thereof. effective exhibit CQ. Ng, Van Dyne and Ang (2012) refer to
Hendrickson (2016) asserts that leaders who disregard the role that CQ plays in improving leadership effectiveness.
culture, particularly during intercultural interactions, will It is reasonable then to expect that CQ will assist leaders to
adversely impact the effectiveness of their leadership. fare better, that is, to be increasingly effective when operating
Conversely, leaders who are culturally cognisant and behave within culturally heterogeneous situations.
in accordance therewith are likely to be increasingly effective
(Du Plessis 2011; Mustafa & Lines 2012). With this in mind, Empirical evidence of the relationship between leader CQ
Paulienė (2012) indicates that effective leadership in and leadership effectiveness is sparse in that just a handful of
individualistic cultures is generally regarded as the action of studies have specifically examined the association between
producing superior financial results. The focus is on the these two concepts. Deng and Gibson (2008) as well as Ersoy
outcomes flowing from the behaviour of the leader as (2014) found, in their respective qualitative studies, that
opposed to any specific behaviour type per se (Paulienė 2012). leader CQ positively impacted the effectiveness of leaders.
Collectivist societies, on the other hand, consider effective Research by Groves and Feyerherm (2011), based on data
leadership as a durable objective germinating from obtained from 99 leaders and 321 of their subordinates,
subordinate dependability, which stems from leaders indicated that leader CQ predicted leadership effectiveness.
affording them security and direction (Paulienė 2012). The study by Rockstuhl et al. (2011) of 126 Swiss military
officers established that leader CQ was positively related to
Cultural differences are accordingly a central situational the effectiveness of cross-border leadership, yet demonstrated
influence in leadership effectiveness (Avery 2004; Deng & no relationship with general leadership effectiveness.
Gibson 2008; Ersoy 2014). The inference is that leaders, in the Musamali and Martin (2016) investigated the association
adoption and display of leadership styles, need to be between five separate effective leadership practices and the
informed by the cultural predilections of their subordinates. dimensions of CQ in higher education institutions in Kenya
This is especially relevant given the extent to which the and the United States. They found that, at the 5% significance
workforce is now multicultural in nature (Balter, Chow & Jin level, cognitive CQ correlated significantly with three of the
2014; Kapur & Janakiram 2015; Kodwani 2012; Raguž, practices, whilst metacognitive CQ and motivational CQ
Filipović & Matijević 2014; Strydom & Van Eeden 2013) as each displayed a significant correlation with one of the
well as the shortage of effective multicultural leaders (Grubb practices. Behavioural CQ did not correlate with any of the
2014). practices.
Whilst Jogulu (2010) argues that being amenable towards The above-mentioned dearth of empirical insights is
cultural sensitivities that could be profoundly dissimilar exacerbated when leadership style is introduced as a variable.
from one’s own values and dogmas is essential for leadership As Presbitero (2016) observes, CQ can play the role of

moderator in the relationship between two variables and, adapting cross-culturally (Van Dyne et al. 2010) and which
since the authors of this article are not aware of efforts to evidences their intrinsic belief that they can operate fruitfully
specifically examine CQ as the moderator between leadership in intercultural conditions (Van Dyne et al. 2008b) and (4)
style and leadership effectiveness, they, through this study, behaviour, which refers to overt actions (Ng, Van Dyne &
aimed to address such paucity in the knowledge base. Ang 2009) that are culturally pertinent (Sutherland, Edgar &
Duncan 2015) and may be verbal or non-verbal (Ang et al.
2015). Metacognitive and cognitive CQ represent the
Research purpose
intellectual component of CQ and, hence, assist in developing
The purpose of this research was to determine whether leader the perspectives that flow from varied cultural experiences,
CQ affected the relationship between leadership style whilst the action imperative is embodied in motivational and
(empowering and directive) and leadership effectiveness. behavioural CQ (Mannor 2008).
Research question Empowering and directive leadership

The question that directed this study was: Is the relationship Empowering and directive leadership represent distinct and
between leadership style (empowering and directive) and dissimilar leadership behaviours (Hmieleski & Ensley 2007)
leadership effectiveness moderated by leader CQ? and are, thus, situated at the opposite ends of a range based
on the extent to which subordinates are able to exert control
Literature review (Clark, Hartline & Jones 2009). Fong and Snape (2015) point
out that organisations are evolving from a penchant for
The aim of the literature review was to introduce and describe
hierarchical leadership to one in which leaders encourage
the concepts forming part of the study.
employee empowerment and support. Empowering
leadership promotes ‘self-leadership, participative goal-
Cultural intelligence setting, and opportunity thinking by followers’ (Ling et al.
CQ is ‘an individual’s capability to adapt effectively to 2015:1067). As such, empowering leadership consists of
situations of cultural diversity’ (Earley & Ang 2003:3) and, employees perceiving that their leader’s actions facilitate
hence, depicts the capacity to seamlessly make the transition their involvement in decision-making through the provision
across multiple cultures as opposed to just a single or few of opportunities for thinking innovatively and thereby taking
cultures (Ng et al. 2012). CQ thus allows for the alleviation of measured risks (Bester, Stander & Van Zyl 2015). Accordingly,
stresses that emerge as a result of heightened exchanges empowering leadership stimulates responsibility taking as
between those persons possessing divergent cultural opposed to the issuing of instructions (Maggitti, Slay & Clark
identities (Jonck & Swanepoel 2015). 2010) and is, in the main, distinguishable from other styles of
leadership in that it eliminates subordinates’ feelings of
CQ persists as a discrete form of intelligence (Du Plessis 2011) powerlessness (Li et al. 2016). Clark and Waldron (2016)
in that it may be distinguished from general cognitive observe that this style of leadership also promotes sharing
intellect as well as emotional intelligence (Ang, Van Dyne & and cooperation.
Rockstuhl 2015). Whereas general cognitive intellect
reflects the cognitive placement of intellectual aptitude Empowering leadership has been demonstrated to be an
(Bovornusvakool, Ardichvili & Rana 2015) and emotional ‘effective leadership style for many employees and
intelligence depicts the capacity to recognise and control organizational settings’ (Sharma & Kirkman 2015:199). With
emotions, neither includes the capability to interact with this in mind, Sharma and Kirkman (2015) note that
persons representative of cultural diversity (Ng et al. 2012). empowering leadership has been positively linked with both
(1) organisational and team outcomes (incorporating:
CQ is multi-dimensional in nature (Ang et al. 2007). The performance, behaviours, efficacy and knowledge creation)
dimensions comprise (1) metacognition, which refers to and (2) individual level results (such as positive employee
‘thought processes’ (Racicot & Ferry 2016:116), that is, the attitudes, engagement, satisfaction, creativity, employee in-
ability of leaders to prepare optimally for cross-cultural and extra-role behaviours, knowledge sharing and follower
interaction, to assess progress during the exchange and to commitment). Indeed, Praszkier (2015:34) considers that
effect any modifications to their mental framework regarding empowering leadership ‘is becoming critical in the growing
the other culture (Van Dyne, Ang & Livermore 2010); (2) world of multiplicity and unpredictability’.
cognition, which refers to cultural knowledge, as reflected by
standards and practices (Ang et al. 2007) relating to linguistics, However, a number of scholars (including, Cheong et al.
religious views, social behaviours as well as monetary and 2016; Wong & Giessner 2016; Yun, Cox & Sims 2006) have
legal processes (Van Dyne, Ang & Nielsen 2008b) and, as established that where subordinate expectations of
such, represents the extent to which a leader grasps the empowerment are not aligned with leader empowering
concept of culture and the part it plays in directing cross- behaviours, empowerment can have adverse consequences.
cultural interactions (Van Dyne et al. 2010); (3) motivation, Lee et al. (2016) found that a curvilinear relationship (an
which concerns the desire to participate in intercultural inverted U shape) exists between empowering leadership
exchanges (Ang et al. 2015) or the efforts leaders expend in and employee task performance. This suggests that a point is

reached where additional empowerment actually begins to Dorfman et al. (2012) comment that leaders who act in
detract from an employee’s performance despite him or her accordance with expectations are the most effective, whilst
being inclined to such a leadership style. It is not irrational to Bjurstedt (2007) insists that effective leaders are those who
expect the effectiveness of this leadership style to diminish favour personal over positional power and are also able to
following poor staff member performance. adjust their style as required. Manning (2003:21) notes that
leaders effective in cross-cultural leadership possess
Directive leadership entails providing subordinates with ‘relationship competence’: that is, they are able to emotionally
precise guidance on what needs to be achieved, how it should connect with diverse individuals and establish mutually
be done and the necessary quality level (Martin et al. 2013), attractive relationships.
and appears to be more prevalent among lower level leaders
as opposed to their more senior counterparts (Oshagbemi It appears then that effective leaders are those who exemplify
2008). Directive leaders observe performance and provide interpersonal aptitudes that allow them to form solid
comment thereon (Martin et al. 2013) whilst making use of connections with an array of individuals through which they
chastisement when goals are not achieved (Clark & Waldron add value to the latter in accordance with expectations which,
2016). This leadership style is optimal when a leader exercises in turn, leads to goal accomplishment.
legitimate power and the work activities of subordinates are
organised, logical and do not involve complexity (Sauer Leadership effectiveness may be evaluated in a variety of
2011). ways and at different levels (Kang & Jin 2015). Kaiser, Hogan
and Craig (2008), through an examination of 10 meta-
Directive leadership has been associated with poor decision- analyses, identified two primary measurement types for
making (Cruz, Henningsen & Smith 1999) and has been leadership: (1) individual perceptions and (2) group
deemed less attractive than empowering leadership performance (these two measurement groupings are similar
(Lorinkova, Pearsall & Sims 2013). Nonetheless, directive to those noted by Lowe et al. 1996, and mentioned earlier in
leadership is noted as assisting in the evolution of a vision this article). Individual perceptions may be split between (1)
shared by non-homogeneous senior management teams leadership emergence (being perceived as a leader by, for
(Hmieleski & Ensley 2007). It promotes proactive employee example, colleagues) and (2) perceived effectiveness (as a
behaviours when employees are satisfied with their leader leader) (Kaiser et al. 2008). Group performance comprises (1)
(Martin et al. 2013). This leadership style has also been found group process (results achieved in terms of team member
to enhance the relationship between transformational motivation, behaviour levels and team dynamics) and (2)
leadership and organisational commitment (Mesu, Sanders group achievements such as productivity and financial
& Van Riemsdijk 2015). It delivers initial team performance outcomes (Kaiser et al. 2008). The effectiveness of leaders
faster than that achieved in teams with empowering leaders exhibits a greater alignment with subordinates’ perspectives
(Lorinkova et al. 2013) and is the appropriate leadership style of leader actions, as opposed to leaders’ self-reported views
when staff members have an external locus of control (Mittal (Kim & Yukl 1995). Likewise, Conway (2000) notes that
2015) or a major crisis is faced (Maggitti et al. 2010). subordinates’ ratings may offer an enhanced reflection of the
aptness of leader behaviours.
Despite the absence of empirical outputs on the relationship
between CQ and each of empowering and directive Leadership effectiveness has been linked with leader
leadership, Livermore (2015) contends that culturally intelligence (Mesterova et al. 2015) and is associated with
intelligent leaders are able to discern the requirement for an leader self-awareness (Butler, Kwantes & Boglarsky 2014). It
empowering style rather than one based upon providing may be predicted by leader prototypicality (especially where
direction. This is vital as Martin et al. (2013:1386) found in subordinates are subject to role ambiguity) (Cicero et al.
their study that empowering and directive leadership could 2010). It is also influenced by the quality of the exchange
be ‘equifinal’ (i.e. achieve the same end result) in delivering relationships between leaders and each of their subordinates
core task proficiency. (Alabi 2012) (see Kim, Liu & Diefendorff 2015 for a discussion
of Leader-Member Exchange) and is positively related to
organisational cultures that endorse employee satisfaction
Leadership effectiveness (Kwantes & Boglarsky 2007). In terms of leadership styles,
Leadership effectiveness represents the ability of a leader ‘to perceptions of leadership effectiveness correlate with
mobilize and influence followers’ (Cicero, Pierro & Van transformational and transactional (Deluga 1991) as well as
Knippenberg 2010:411) and is crucial in that it drives the empowering and ethical leadership (Hassan et al. 2013).
proclivity of the workforce towards the attainment of shared
goals (De Cremer & Van Knippenberg 2004). In this respect, Hypotheses
Manamela, Cassim and Karodia (2016) observe that effective
leaders are adept at recognising and positively utilising both The hypotheses investigated were as follows:
the competencies and limitations of their subordinates in the • H10: The CQ of leaders (as a composite concept) does not
achievement of organisational objectives. Weaver (2015) moderate the relationship between leaders’ application of
likewise affirms the constructive impact that effective leaders empowering leadership and employee perceptions of
have on the results of their subordinates. their leadership effectiveness.

• H20: The CQ dimensions of leaders do not moderate the Survey questionnaire

relationship between leaders’ application of empowering
A number of instruments, which are described in the sections
leadership and employee perceptions of their leadership
below, were included in the survey questionnaire in order to
effectiveness.
measure the study variables.
• H30: The CQ of leaders (as a composite concept) does not
moderate the relationship between leaders’ application of
directive leadership and employee perceptions of their Leader cultural intelligence
leadership effectiveness. Leader CQ was assessed via the observer report version of
• H40: The CQ dimensions of leaders do not moderate the the Cultural Intelligence Scale (CQS) (Van Dyne, Ang & Koh
relationship between leaders’ application of directive 2008a). The CQS has demonstrated all types of validity:
leadership and employee perceptions of their leadership convergent, criterion and discriminant (Van Dyne et al.
effectiveness. 2008a) and has been shown to be reliable (Rockstuhl et al.
2011).
Research method
Empowering leadership
This section sets out applicable methodological details as a
Empowering leadership was measured by the 10-item
basis for contextualising the research that was undertaken.
instrument of Ahearne, Mathieu and Rapp (2005). Zhang and
Bartol (2010) indicate that it captures the essence of
Research design empowering leadership, whilst Yoon (2012) confirmed the
A cross-sectional survey design was employed. This design is validity of this instrument.
useful when the intention is to examine a population in terms
of particular outcomes (Levin 2006). Directive leadership
Directive leadership was evaluated by a combination of the
six- and four-item instruments of Pearce and Sims (2002) and
Population
Hwang et al. (2015), respectively. The reliability of the
The population was defined as all leaders, irrespective of instruments’ items has been confirmed by Hinrichs (2011)
their level of seniority or particular function, at all and Hwang et al. (2015), respectively.
organisations operating in South Africa. A leader was
considered to be any employee to whom another staff Leadership effectiveness
member directly reports.
Leadership effectiveness was measured through four items
constructed by Cicero et al. (2010). These items have delivered
Sample a high level of reliability (Cicero et al. 2010).
Without an entrée into an organisation, it is frequently difficult
Permission to use the instruments was obtained from the
to obtain permission to approach employees with a view to
respective authors.
undertaking research. Hence, a convenience sample was
drawn from 19 South African organisations. Access to the
organisations was achieved by recruiting 18 master’s degree Research process
level students (the students), from the Graduate School of The research process commenced with an application for
Business Leadership at the University of South Africa (GSBL), ethical clearance from the Research Ethics Review Committee
to act as fellow researchers; they were employed by the of the GSBL. Once such approval had been secured (under
respective organisations. The 19th organisation that no: 2016_SBL_003_CA), the students attended a session at
participated was the employer of the first named author. which further details of the research were discussed. In
particular, they were exposed to the survey questionnaire
Most CQ research to date has been based upon self-report and the respondent information sheet, concepts were
methodologies; as a result the application of observer explained and timelines agreed. The students were provided
originated measures could enhance the strength of CQ with a template that they were required to have completed
research findings (Ang et al. 2015). Similarly, as noted earlier, by their respective employer’s chief executive in terms of
Conway (2000) and Kim and Yukl (1995) highlight the which permission was granted, on the basis of the
benefits of using subordinates to evaluate leaders. Sample organisation’s anonymity, for the research to be conducted
respondents thus consisted of the subordinates of leaders. In therein.
total, 1140 completed responses to the survey were received.
After consent had been obtained from the chief executive of
their respective employer, the students sourced a list of
Unit of analysis employees from the human resource division of their
Staff members’ perceptions of their leaders’ CQ, leadership organisation and allocated a number to each name. Potential
style and leadership effectiveness comprised the individual respondents were identified randomly through the
unit of analysis. application of a random number generator. The students

then invited the identified persons to a meeting at which the To test for moderation, a two-step approach, as suggested by
research was explained. They were also advised that Garnett, Marlowe and Pandey (2008), was adopted. These
participation would be on a purely voluntary basis. It was steps entail (1) confirmation that both the independent and
pointed out that neither they nor the organisation would be moderator variables relate at a statistically significant level to
required to disclose any identifying particulars. the dependent variable and (2) calculation of the relationships
again together with the inclusion of an interaction term
Attendees were subsequently provided with a research (representing a combination of the independent and
information sheet. Those staff members who indicated moderator variables). Where the results of the second
their willingness to participate were handed a hard copy of calculation show evidence of a statistically significant
the questionnaire and were requested to complete it at the relationship between the interaction term and the dependent
meeting. The data from the completed questionnaires variable, then the variation between the effect of the
were then entered into a template-based spreadsheet by the independent variable in the first and second calculations may
students and submitted to the second named author. The first be attributed to the presence of the moderator variable
named author followed the same process in administering (Garnett et al. 2008).
the questionnaire to respondents from his employer. The
second named author consolidated the 19 spreadsheets The practical significance of the regression model’s
received. moderation was appraised through the calculation of the f 2
statistic. This statistic, note Ellis and Steyn (2003), acts as a
measure of the effect size in multiple regressions and is
Data analysis
calculated as R2/(1 - R2).
Data analysis was conducted through IBM SPSS. Respondent
demographics were established by calculating frequencies Where R2 < 0.13, f 2 will be under 0.15. In such instances it may
and certain central statistics. Central statistics were also be accepted that R2 does not, practically, differ from zero and
computed for the independent and dependent variables. the size of the regression coefficient is therefore not significant
These included minimum and maximum values, mean scores at a practical level (Ellis & Steyn 2003). On the other hand,
as well as standard deviations. Ellis and Steyn (2003) conclude, from the guidelines by
Cohen (1988), that where f 2 exceeds 0.35, the effect of R2 is of
Relationships between variables were evaluated through the practical importance. For this study, an f 2 under 0.15 was
calculation of Pearson’s product-moment correlation deemed as not significant, as medium when it was situated
coefficients. Statistical significance was evaluated at the 5% between 0.15 and 0.35 and as large when it exceeded 0.35.
level, as recommended by Lazaraton (1991). The practical
significance of correlation was determined with respect to the
guidelines devised by Cohen (1988), which indicate that Results
correlations are small when they fall between 0.10 and 0.30, The data analysis results appear below, starting with
medium when they lie between 0.30 and 0.50 and are large respondent demographics (Tables 1–3) and descriptive
when they exceed 0.50. statistics of the variables (Table 4). The psychometric
properties of the measures follow (Table 5). In turn, correlation
Principal axis factor analysis with direct Oblimin rotation (Table 6) and moderation statistics (Tables 7 and 8) are
was employed to assess instrument validity. The guidelines subsequently presented.
suggested by Coovert and McNelis (1988) and Costello and
Osborne (2005) were followed in determining the number of TABLE 1: Gender.
factors to retain; that is, factors with eigenvalues exceeding 1 Gender Frequency % Cumulative %
and scree plot examination, respectively. Male 573 50.27 50.27
Female 567 49.73 100.00
In examining the scree plots, the number of factors to keep Total 1140 100.00 -
was taken to be the number of eigenvalues that preceded the Source: Authors’ own work
final main drop in extent (DeCoster 1998) or ‘the point at
which the slope approaches zero’ (Floyd & Widaman TABLE 2: Age (years).
1995:292). The recommendation by Osborne and Costello Youngest Oldest Mean Median Standard deviation
(2009:138) that a ‘solid factor’ is one which has ‘5 or more 20 64 38.62 37.00 9.36
Source: Authors’ own work
strongly loading items (0.50 or better)’ was followed in
assessing factor desirability. Osborne and Costello (2009) also
TABLE 3: Race.
suggest that a weak factor is one that has less than three items
Race Frequency % Cumulative %
loading on it. Thus, a factor was accepted where it had no
Black 762 66.84 66.84
fewer than four items, or at least 80% of the number of items White 206 18.07 84.91
from the respective measurement scale, that loaded onto it Coloured 116 10.18 95.09
with a minimum weight of 0.50 (Hair et al. 2010). Reliability Asian 56 4.91 100.00
was assessed as acceptable where Cronbach’s coefficient Total 1140 100.00 -
alphas were greater than 0.70 (see Pallent 2011). Source: Authors’ own work

TABLE 4: Descriptive statistics.

Variable Minimum Maximum Mean Standard deviation
Leader CQ aggregate 1.00 7.00 4.53 1.17
Leader metacognitive CQ 1.00 7.00 4.96 1.45
Leader cognitive CQ 1.00 7.00 4.42 1.33
Leader motivational CQ 1.00 7.00 4.57 1.34
Leader behavioural CQ 1.00 7.00 4.15 1.40
Empowering leadership 1.00 7.00 5.12 1.37
Directive leadership 1.00 5.00 3.52 0.81
Leadership effectiveness 1.00 7.00 5.08 1.69
CQ, cultural intelligence.
TABLE 5: Factor analysis and reliability information.

Variable Validity information (factorial validity) Reliability
Kaiser–Meyer–Olkin scores Bartlett’s test of sphericity No. of factors Percent of variance declared Coefficient α
Leader CQ aggregate 0.95 17980.20* 4 74.38 0.95
Leader metacognitive CQ - - - - 0.93
Leader cognitive CQ - - - - 0.91
Leader motivational CQ - - - - 0.90
Leader behavioural CQ - - - - 0.91
Empowering leadership 0.92 8325.82* 1 62.16 0.93
Directive leadership 0.84 6434.06* 3 75.90 0.87
Leadership effectiveness 0.86 4723.18* 1 87.13 0.95
*, p < 0.05.
TABLE 6: Correlations.
Variable 1 2 3 4 5 6 7 8
1. Leader CQ aggregate - - - - - - - -
2. Leader metacognitive CQ 0.85* - - - - - - -
3. Leader cognitive CQ 0.86* 0.64* - - - - - -
4. Leader motivational CQ 0.88* 0.66* 0.72* - - - - -
5. Leader behavioural CQ 0.81* 0.56* 0.58* 0.62* - - - -
6. Empowering leadership 0.64* 0.64* 0.49* 0.57* 0.45* - - -
7. Directive leadership 0.39* 0.32* 0.35* 0.36* 0.30* 0.45* - -
8. Leadership effectiveness 0.59* 0.61* 0.48* 0.52* 0.41* 0.77* 0.47* -
*, p < 0.05.
Respondent demographics behavioural CQ was rated the lowest (4.15). The mean score
for empowering leadership was 5.12 whilst it was 3.52 for
The genders were evenly spread. This compares favourably
directive leadership. The lower mean score for directive
with South African workforce gender statistics (see Statistics
leadership could be due to the respective rating scale ranging
South Africa 2016) which reflect men as comprising 56.25%
from 1 to 5. Leadership effectiveness was rated at 5.08.
and women as 43.75% of this force.
The oldest respondent was 64 whereas the youngest was 20. Psychometric properties of the measures
The median age of the sample was 37. Reliability
Reliabilities were assessed as satisfactory because all the
Black and White dominated race group representation. This
alphas exceeded 0.70 (see Table 5). In fact all the alphas, with
is largely reflective of the South African working population the exception of that for directive leadership, were 0.90 or
profile estimates (see Statistics South Africa 2016) where greater. Leader CQ in aggregate as well as leadership
Black made up 73.38%, White 12.71%, mixed race 10.67% effectiveness achieved the highest alphas (0.95). The lowest
and Asian 3.24% of employed persons. alpha was 0.87 (for directive leadership).
Descriptive statistics Factorial validity

It can be perceived from Table 4 that leader CQ (aggregate) All of the study variables were found to be factorable, whilst
achieved a mean score of 4.53. At a dimensional level, leader sampling adequacy was acceptable based on Kaiser–Meyer–
metacognitive CQ scored the highest (4.96) whilst leader Olkin scores (see Dziuban & Shirkey 1974, for guidelines)

TABLE 7: Moderated multiple regression – Empowering leadership and leadership effectiveness.

Variable R R2 R2 change Coefficients Standard error t p
Model 1 0.780 0.609 - - - - -
Constant - - - 5.08 0.04 131.98 0.00*
Leader CQ aggregate - - - 0.25 0.04 6.63 0.00*
Empowering leadership - - - 0.81 0.03 23.69 0.00*
Interaction term - - 0.00 -0.01 0.02 -0.19 0.85
Model 2 0.782 0.612 - - - - -
Constant - - - 5.09 0.04 130.98 0.00*
Leader metacognitive CQ - - - 0.22 0.03 7.20 0.00*
Interaction term - - 0.00 -0.01 0.02 -0.51 0.61
Model 3 0.777 0.604 - - - - -
Constant - - - 5.08 0.04 145.34 0.00*
Leader cognitive CQ - - - 0.17 0.03 6.10 0.00*
Interaction term - - 0.00 0.00 0.02 0.00 1.00
Model 4 0.774 0.600 - - - - -
Constant - - - 5.08 0.04 135.10 0.00*
Leader motivational CQ - - - 0.15 0.03 4.68 0.00*
Interaction term - - 0.00 0.00 0.02 -0.03 0.98
Model 5 0.772 0.595 - - - - -
Constant - - - 5.07 0.04 142.15 0.00*
Leader behavioural CQ - - - 0.09 0.03 3.25 0.00*
Interaction term - - 0.00 0.01 0.02 0.69 0.49
*, p < 0.05.
TABLE 8: Moderated multiple regression – Directive leadership and leadership effectiveness.

Variables R R2 R2 change Coefficients Standard error t p
Model 1 0.654 0.428 - - - - -
Constant - - - 5.13 0.04 121.65 0.00*
Leader CQ aggregate - - - 0.68 0.04 16.08 0.00*
Directive leadership - - - 0.54 0.06 9.06 0.00*
Interaction term - - 0.009 -0.15 0.03 -4.34 0.00*
Model 2 0.675 0.456 - - - - -
Constant - - - 5.11 0.04 124.69 0.00*
Leader metacognitive CQ - - - 0.58 0.03 17.69 0.00*
Model 3 0.582 0.339 - - - - -
Constant - - - 5.12 0.04 114.48 0.00*
Leader cognitive CQ - - - 0.44 0.04 12.21 0.00*
Model 4 0.610 0.372 - - - - -
Constant - - - 5.14 0.04 117.25 0.00*
Leader motivational CQ - - - 0.49 0.04 12.99 0.00*
Model 5 0.553 0.306 - - - - -
Constant - - - 5.11 0.04 115.98 0.00*
Leader behavioural CQ - - - 0.36 0.03 10.50 0.00*
*, p < 0.05.
and the significance of the Bartlett’s Tests of Sphericity (see located prior to the final drop in magnitude per scree plots,
Table 5). Applying the eigenvalue rule of greater than 1 and leader CQ was assessed as having four factors with a declared
confirming this with the number of eigenvalues that were variance of 74.38%. Directive leadership was found to have

three factors with a declared variance of 75.90%. These factors CQ_total

exhibited high internal consistency in that the alpha did not 6.50
–1,17
rise when scale items were purged. Thus, for purposes of this 0,00
study, directive leadership was accepted as unidimensional. 1,17

6.00
Leadership effec
veness 14mean
–1,17
Empowering leadership and leadership effectiveness had 0,00
one factor each. The declared variance for empowering 1,17
5.50
leadership was 62.16% whilst it was 87.13% for leadership y=5.38+0.8*x
–1,17:R2 Linear = 1
effectiveness. The number of items and their individual y=5.08+0.81*x 0,00:R2 Linear = 1
loadings for all the factors satisfied the guidelines as per Hair 5.00
1,17:R2 Linear = 1
et al. (2010) and Osborne and Costello (2009) (discussed as y=4.78+0.81*x
part of the data analysis section). 4.50
Correlations 4.00
The correlation coefficients between leader CQ and each of

its dimensions with leadership effectiveness ranged from a 3.50
high of 0.61 in the case of metacognitive CQ to a low of 0.41
–1.50 –1.00 –0.50 0.00 0.50 1.00 1.50
for behavioural CQ. Empowering leadership demonstrated a Empowering leadership 110mean
higher correlation with leadership effectiveness than did
directive leadership (0.77 vs. 0.47). All the correlations were Source: Authors’ own work
statistically significant at the 5% level. FIGURE 1: Leader cultural intelligence (aggregate) moderation on the
relationship between empowering leadership and leadership effectiveness.
Moderated multiple regressions

CQ_total
Tables 7 and 8 present the results of the moderated multiple 6.50
–1,17
regressions that were performed to establish whether leader 0,00
1,17
CQ and its dimensions influenced the relationship between 6.00
Leadership effecveness 14mean
y=5.93+0.37*x –1,17
empowering leadership and leadership effectiveness as well 0,00
as that between directive leadership and leadership 5.50 1,17
effectiveness. –1,17:R Linear = 1
2
y=5.13+0.54*x 0,00:R2 Linear = 1

5.00
As can be observed from table 7, the failure of the interaction 1,17:R2 Linear = 1
terms to achieve statistical significance indicated that
neither leader CQ, as an aggregate value, nor any of its 4.50
individual dimensions displayed a moderator effect on y=4.33+0.71*x
the relationship between empowering leadership and 4.00
leadership effectiveness. Thus, H10 and H20 were not
rejected.
3.50
Table 8 demonstrates that leader CQ as well as its four –1.00 –0.50 0.00 0.50 1.00
dimensions did exhibit a statistically significant moderation Directive leadership 110mean
effect on the relationship between directive leadership and
leadership effectiveness. Hence, both H30 and H40 were FIGURE 2: Leader cultural intelligence (aggregate) moderation on the
rejected. relationship between directive leadership and leadership effectiveness.
Figure 1 displays the absence of moderation by aggregate further apart and the lines have non-parallel slopes.
leader CQ on the relationship between empowering The slope of the line where leader CQ is low is steeper than
leadership and leadership effectiveness. Figure 2 indicates that of the line where leader CQ is high. This suggests that
that aggregate leader CQ moderated the relationship between the moderation effect is greater at lower, rather than higher,
directive leadership and leadership effectiveness. The levels of leader CQ.
influencing effects of the leader CQ dimensions were almost
exactly the same as the aforementioned patterns and are
therefore not presented here.
Discussion
The positive relationship that was found to exist between
Figure 1 reveal that the intercepts for the three levels of leader CQ and leadership effectiveness (given the different
leader CQ are close to one another and that the slopes of cultures of the respondents) is in line with the findings of
the lines are essentially parallel. In this case, it can be noted Rockstuhl et al. (2011) that leader CQ was positively related
that moderation did not take place. Figure 2 reflects, in to the effectiveness of cross-border leadership. The further
contrast, that moderation did occur as the intercepts are finding that leader CQ acted as an important predictor of

leadership effectiveness complements the results of Groves leadership and leadership effectiveness, as none of the
and Feyerherm (2011). observed effects for the interaction terms carried statistical
importance.)
On a sub-scale level, the result that leader metacognitive,
cognitive and motivational CQ shared statistically significant A possible reason why leader CQ and its dimensions did not
relationships with leadership effectiveness offers support for moderate the relationship between empowering leadership
the results of Musamali and Martin (2016). The result that and leadership effectiveness could be that those leaders who
leader behavioural CQ also had a relationship of statistical practice this style of leadership do so because they are
significance with leadership effectiveness, nevertheless, culturally intelligent (as evidenced by the high correlation
contradicts what Musamali and Martin (2016) established between leader CQ and empowering leadership). Similarly,
with regard to leader behavioural CQ and leadership it is conceivable that leader CQ, both in aggregate and
effectiveness. dimensionally, moderated the relationship between directive
leadership and leadership effectiveness because such leaders
This research also provides evidence that both empowering are viewed as being less culturally intelligent than their
and directive leadership had a relationship with leadership empowering counterparts (see Table 6). The negative direction
effectiveness that carried statistical significance. The strength of this moderation might be a signal that as directive leaders
of these relationships was, however, much greater for become increasingly culturally intelligent, they ought to
empowering leadership than it was for directive leadership. realise a different leadership style would be more appropriate.
Although there may be various explanations for this
difference in strength, it is possible that it may have been a Theoretical implications
function of the cultural profiles of the respondents being of
This research provides evidence for the four factor theoretical
such a nature that they were more inclined towards
structure of CQ as conceptualised by Earley and Ang (2003).
empowering, as opposed to directive, leadership.
This result supports the findings of Mahembe and Engelbrecht
(2014) who established the validity of the four CQ dimensions
It is important to note that of the relationships identified in
in their study of 229 full-time students at a South African
this study, just those between leader CQ in aggregate,
university.
metacognitive CQ, motivational CQ and empowering
leadership with leadership effectiveness are significant at a
The CQ and leadership nomological networks have also been
practical level. Being moderate in nature, all the other
increased as it has been shown that leader CQ, including
relationships carried less real-world relevance.
each of its dimensions, as well as empowering and directive
leadership, all exhibited statistically significant associations
Employing the methodology of Garnett et al. (2008) revealed
with leadership effectiveness. Further, it was established that
that, whilst empowering leadership (as the independent
leader CQ and its dimensions did not influence the
variable) and leader CQ and its dimensions (as the respective
relationship between empowering leadership and leadership
moderator variables) did have, as noted previously,
effectiveness and also that, whilst at a statistical level they
statistically significant relationships with leadership
did act as negative moderators of the relationship between
effectiveness (as the dependent variable), none of the
directive leadership and leadership effectiveness, such
interaction terms (i.e. empowering leadership multiplied by
moderation was actually of no practical consequence.
leader CQ and empowering leadership multiplied by the CQ
dimensions) attracted statistical significance. As pointed out
above, directive leadership (as the second independent Practical implications
variable) too, achieved a relationship of statistical significance Taking account of the relative strength of the relationships
with leadership effectiveness. In this case the effects of all the between each of the leader CQ dimensions with leadership
interaction terms (that is, directive leadership multiplied effectiveness, leaders are advised to direct attention to the
by leader CQ and directive leadership multiplied by the development of their metacognitive CQ in particular. It
CQ dimensions) were statistically significant, implying would also be important for them to enhance their levels
moderation. The corresponding t-statistics were negative in of motivational CQ as this was the CQ dimension that
all instances, indicating that a leader’s CQ, and its dimensions, recorded the second strongest relationship with leadership
in fact served to reduce the strength of the relationship effectiveness.
between directive leadership and leadership effectiveness.
As subordinates perceived empowering leadership, rather
As the respective changes in R2 attributed to all the interaction than directive leadership, to be more strongly associated
terms were below 0.13, it follows that none of the calculated with leadership effectiveness, leaders, in general, should
f 2 statistics exceeded 0.15. Thus, the moderator effects of pursue an empowering style. However, leaders are advised
leader CQ and its dimensions on the relationship between to exercise caution in indiscriminately empowering
directive leadership and leadership effectiveness were not subordinates in that some of them, given their particular
significant from a practical perspective. (Note that practical cultures, may not embrace this approach (see Cheong et al.
significance was not considered in the case of empowering 2016; Wong & Giessner 2016; Yun, Cox & Sims 2006).

Leaders should further note that neither their CQ nor any of Authors’ contributions
its individual dimensions are important influencers of the
A.S. performed the literature review, coordinated the
relationships that the leadership styles (in this case
statistical analysis, interpreted the data results and prepared
empowering and directive leadership) had with leadership
the manuscript. R.S. provided conceptual and design input
effectiveness. It is suggested that culturally intelligent leaders
as well as commentary on the manuscript drafts.
could be using their CQ to inform themselves concerning
selecting a suitable style of leadership; that is, leader CQ
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Acta Commercii - Independent Research Journal in the Management Sciences

ISSN: (Online) 1684-1999, (Print) 2413-1903

Leadership style and leadership effectiveness: Does

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Research question Empowering and directive leadership

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• H20: The CQ dimensions of leaders do not moderate the Survey questionnaire

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TABLE 4: Descriptive statistics.

TABLE 5: Factor analysis and reliability information.

Descriptive statistics Factorial validity

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TABLE 7: Moderated multiple regression – Empowering leadership and leadership effectiveness.

TABLE 8: Moderated multiple regression – Directive leadership and leadership effectiveness.

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three factors with a declared variance of 75.90%. These factors CQ_total

study, directive leadership was accepted as unidimensional. 1,17

part of the data analysis section). 4.50

The correlation coefficients between leader CQ and each of

Moderated multiple regressions

y=5.13+0.54*x 0,00:R2 Linear = 1

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