Business leaders’ personal values, organisational culture and market orientation

Abstract

In a world where competitive advantages based on technology, physical assets and large advertising budgets are fungible, business leaders’ personal values as an alternative or complementary influence on decision-making and market orientation have an intuitive appeal. Research findings based on data collected from 370 business leaders of independent indigenous companies in China suggest that business leaders with different sets of personal values create and develop different types of organisational culture. Leaders with openness to change values form an adhocracy culture, while leaders expressing conservation values promote a hierarchy culture. Different organisational cultures have different influences on market orientation. The hypothesised relationships between self-enhancement leaders and market culture and between self-transcendence leaders and clan culture were not supported. Finally, the article discusses the theoretical contribution of the study, managerial implications and suggestions for future research.

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