Transformational and empowering leadership styles dominate western discussion on management. But paternalistic leadership is more common in Asia, as well as in Latin America and the Middle East. Business leaders who understand its origin and consequences will therefore be better prepared to work effectively with their international peers.
Consider a classic example of Chinese leadership: Zong Qinghou, the founder of food and drink manufacturer Hangzhou Wahaha Group. He is widely recognised for his paternalistic approach, which combines authority with benevolence and morality. In a joint venture dispute with Danone that concluded in 2009, his style helped to mobilise the Chinese media and to use nationalist sentiment against the French company.
Zong maintained a loyal following over the two years of legal wrangling. He created a media fanfare by showing moralistic concern for Chinese brands and the domestic economy. He remained assertive and authoritarian. Danone, meanwhile, was isolated in a hostile environment.