Leadership Challenges in Finnish and Indian Multi-Cultural Project Teams: Strategies for Enhanced Collaboration

This thesis discusses leadership challenges and strategies for facilitating team collaboration in multicultural project teams, especially in Finnish–Indian professional environments. The increasing phenomenon of global project teams necessitates for the understanding of cross-cultural dynamics and the implementation of culturally responsive leadership practices. The research objective was to determine the differences in leadership expectations, communication norms, and trust mechanisms among Finnish and Indian project team members. A qualitative approach was adopted, and data were collected via a structured questionnaire with open-ended questions distributed to 13 Finnish and Indian professionals with experience in multicultural project environments. Data were analyzed thematically to uncover recurring themes and information about intercultural project leadership. The theoretical foundation integrates Transformational Leadership Theory, Schwartz's Cultural Value Theory, Social Identity Theory, and adaptive leadership strategies. These theories provided a broader understanding of leadership styles, value-based communication styles, identity recognition, and team cohesiveness. According to the findings, the primary challenges in multicultural project teams are communication barriers, cultural values, conflict styles, ownership and accountability, trust relationships, and inclusions. Leadership strategies identified include the adoption of culturally adaptive leadership styles, open and inclusive communication processes, consensus-building, flexible task designs, and building trust through openness and constant feedback. It highlights that while Finnish professionals value egalitarianism, autonomy, and direct communication, and Indian professionals valued structured hierarchy, interpersonal sensitivity, and indirect feedback. Transformational leadership was utilized because it emphasizes establishing trust, inclusion, and individualized consideration that is critical in multicultural settings. Schwartz's model breaks down the Indian and Finnish professional conflict of value orientations, while Social Identity Theory explains why inclusion and cultural appreciation are essential in team building. However, participants also highlighted effective methods like joint planning, inclusive meetings, and team-building practices that accommodate cultural variation. The thesis concludes that culturally adaptive leadership is essential in multicultural teams. Emotional intelligence and intercultural training were strongly recommended by participants as essential for global team leaders. While the research provides practice implications, the research is of limited scope and extent to Finnish–Indian teams and face-to-face context. The research can be extended to virtual multicultural teams and additional cultural contexts in the future.