Leadership of multicultural teams: Insights and differences from the Finnish - Swedish context

Cultural diversity is increasingly common in international business environments, and many teams consist of team members with different cultural backgrounds. Cultural differences impact leadership practices and therefore companies must develop leadership strategies that enhance the functioning of multicultural teams. Addressing culturally specific characteristics is important for companies to fully harness the benefits of multicultural talent. This study focused on examining cultural differences and their impact on leadership, and whether leadership styles differ between cultures. The study focused particularly on identifying the cultural differences between Finnish and Swedish cultures and how the differences between neighboring countries impact daily leadership practices. The study aimed to identify relevant skills and competences to support effective leadership of multicultural teams. A case study was implemented to support the theoretical framework and connect it with real life context. The empirical findings aimed to provide valuable and concrete insights regarding cultural differences influencing leadership. The objective of the research was to gather the results as a concrete guide for managerial purposes. The research employed a qualitative research method. It enabled the gathering of a profound theoretical framework and a good understanding of the topic. Interviews were conducted as semi-structured interviews, and they supported the findings, while also complementing the research by providing concrete insights. The sample of the interviews consisted of five stakeholders from the commissioning company. The results indicated that cultural differences are a significant factor impacting leadership, as culture relates to nearly every aspect of our lives. Culturally specific characteristics strongly impact behavior models and communication styles. Based on the findings of the research, concrete suggestions were defined to support multicultural leadership.