10.5464.AMBPP.2011.33.a EFFECTS OF PARTICIPATIVE LEADERSHIP: THE MODERATING ROLE OF CULTURAL VALUES ZHEN ZHANG W. P. Carey School of Business Arizona State University Tempe, AZ 85287-4006 MO WANG University of Maryland JOHN W. FLEENOR Center for Creative Leadership ABSTRACT Drawing upon social information processing theory, we examine the moderating effects of cultural values (i.e., power distance, institutional collectivism, and assertiveness) on the relationship between participative leadership and supervisor-rated leader performance as well as followers’ overall justice perceptions. Analyses of multi-source, multilevel data collected from 4972 leaders and 20210 followers in 48 countries/regions indicated that participative leadership is more positively related to leader performance when power distance and institutional collectivism are higher. Perceived participative leadership is more positively related to follower justice perceptions when three cultural values are higher. The results highlight culture values’ role in influencing participative leaders’ effectiveness. INTRODUCTION Extensive research attention has been paid to the understanding of how different cultural values may influence the outcomes of leadership behaviors (Dickson, Den Hartog, & Castaño, 2009; House, 1995). Although many leadership styles may be perceived as more or less effective in various cultures, there are a few leadership styles that have often been argued to be “universally” effective, among which is participative leadership. Participative leadership refers to leader behaviors that involve followers in the processes of decision making and implementation (Locke & Schweiger, 1979). Participative leadership has been shown to increase employees’ motivation, feeling of power, and job performance in various countries (Huang, Iun, Liu, & Gong, 2010; Guzzo, Jette, & Katzell, 1985) and cross-cultural studies have reported that participative leadership contributes to leader effectiveness for all culture clusters (Dorfman, Hanges, & Brodbeck, 2004). However, prior studies have focused on employees’ rather than the leaders’ outcomes and many have suffered from limitations due to methodological issues (which we will delineate below). As a result, many questions remain regarding whether participative leadership can actually increase leader effectiveness, and whether its effects are independent of the influence of cultural values. Cultural values are defined as a set of beliefs and norms that are both consciously and subconsciously held by people in the given society (Adler, 2002). Cultural values define the right versus wrong and specify people’s preferences as manifested in laws, customs, and practices.