Organisational leadership mindsets and human capital investment: Due diligence, ambicultural and Tao (Ti-Yong) perspectives

Abstract

This is a conceptual paper, supporting due diligence (DD) in reframing organisational leadership through an investment approach to human capital and mindset. The aim — to enhance relations between organisations, their multistakeholders, and ecosystems. Ambiculturalism and Ti-Yong (体用) underpin the proposed frames. Western and Chinese organisations, provide an example. An investment perspective, as distinct from a cost to operations approach, is presented through two frames, as core elements reflecting a human capital investment (HCI)–leadership investment mindset (LIM) focus. The frames are supported by Tao (道) philosophy, through the Yin-Yang & five elements — 阴阳五行 — expressed as Ti-Yong (Lao-tzu, 1998; Cheng & Bunnin, 2002). A Western theory, dualities (Evans, 1999), is also employed. Seven (7) propositions provide direction for assessing the efficacy of the proposed frames. Data has not been collected, hence methodology is presented via what may be undertaken, to test the efficacy of two complex frames. A combination of multivariate techniques, including PCA, CFA, SEM (LISREL), and/or partial least squares-structural equation modelling (PLS-SEM) is recommended. Ringle, Sarstedt, Mitchell, and Gudergan (2020) propose PLS-SEM for HRM issues to address issues tied to, model complexity, estimating constructs, and deriving latent variable scores. The relevance of the proposed frames goes to enhancing organisational leadership thinking and subsequent organisational leadership behaviour, through a DD process. Professional practice applications are addressed