The Strategic Global Climate and the Construction of the Strategic Global Climate Scale
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As the world grows smaller, globalization increasingly impacts organizations, and many organizations have difficulty preparing for such a complex and unpredictable environment. The Strategic Global Climate consists of the employee perceptions of the policies, processes, and rewarded behaviors that promote organizational effectiveness in the complex global arena. A favorable Strategic Global Climate communicates the organization’s values and aligns leadership and business strategies for prosperity in the global arena. Additionally, organizations with a Strategic Global Climate should develop a strong global leadership bench strength, experience smooth international business partnerships, and have a competitive advantage. Organizations must be able to measure such a climate in order to foster it. The current study develops the Strategic Global Climate Scale and its underlying dimensions using a grounded theory approach in interviews with employees in global organizations. Subsequently, item generation and sorting took place, followed by two online pilot studies. Principle component analysis was conducted for item reduction and preliminary dimensionality, after which a confirmatory factor analysis was conducted with a sample from a global organization for the validation study. Results and implications of a Strategic Global Climate and its Scale are discussed, followed by the study’s strengths and limitations and recommendations for future research.