Impact of Cross-Cultural Leadership Competencies on Project Performance: A Study Of China Pakistan Economic Corridor Projects

Abstract

A considerable amount of research on cross-cultural leadership has been undertaken but still, there is a gap to identify leadership competencies required to enhance the performance of projects in a cross-cultural environment, specifically, China Pakistan Economic Corridor. The objective of this research is to examine the impact of Western leadership competencies and the Chinese Confucius leadership competencies on the performance of CPEC projects. This study employed semi structured interviews and survey questionnaire instrument to collect data from the executives and managerial staff of both China and Pakistan working on CPEC projects. For the sampling, the convenience sampling method was used due to the availability and willingness of respondents of the study. In this study, a mixed-method approach was adopted where 350 survey questionnaire responses were collected and 20 semi-structured interviews were conducted. Furthermore, different analysis techniques were used including factor exploratory and confirmatory factor analysis, correlation and regression analysis by using SPSS and AMOS software. The findings of quantitative data analysis indicated that achieving self-awareness and Yi (impartiality/fairness/justice / righteousness) have positive effect on project performance. Furthermore, qualitative results show competence leadership as the most composite leadership that can improve the outcome of the projects in the context of CPEC. Based on findings of both quantitative and qualitative data, project performance can be enhanced further through cross-cultural leadership competencies, if adopted appropriately. To achieve high project performance, a deep-rooted understanding of leadership competencies like critical analysis and judgment, vision, strategic perspective, leadership‘s engaging communication and self-awareness (H1a, H1b, H1c, H1d and H1h) is essential. The result also highlighted that Confucius competencies of Virtue/ethics, wisdom and faithfulness (H2a, H2b, H2d and H2e) are distinct competencies that are necessary for the leaders to be engaged in cross-cultural projects. The implications suggest organizing of short training programs, skill development of cross-cultural managers, cross-cultural exhibitions, pre-deployment exposure visits, and publishing a guidebook to address diversity, maintaining good relationships with the key stakeholders and establishing conflict management mechanisms to address cultural diversity.