{"id":2468,"date":"2016-07-21T08:52:09","date_gmt":"2016-07-21T07:52:09","guid":{"rendered":"https:\/\/blog.iese.edu\/expatriatus\/?p=2468"},"modified":"2016-07-21T12:07:02","modified_gmt":"2016-07-21T11:07:02","slug":"latest-research-the-role-of-global-leadership","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/expatriatus\/2016\/07\/21\/latest-research-the-role-of-global-leadership\/","title":{"rendered":"Latest Research: The Role of Global Leadership"},"content":{"rendered":"

\"Global<\/a>The most recent DHL Global Connectedness Index, analyzing<\/a> the state of globalization<\/strong> around the world, suggests that we don\u2019t quite live in a \u2018flat\u2019 world<\/strong>. Indeed, in spite of visible global interconnectedness, the actual numbers related to international flows of products and services, capital, information, and people, show that globalization is much more limited<\/a> than many of us think<\/strong>.<\/p>\n

I would argue that this is partly due to the persistent ethnocentric nature of how multinationals are managed<\/strong> and how, by extension, they go about leading cross-border activities. From this standpoint, what is needed for further globalization is a more integrative approach<\/strong>, which would allow for sharing, building on and diffusing local best practices at a global scale<\/strong>. Here individual global leaders should serve as primary actors<\/strong>.<\/p>\n

In my recent whitepaper<\/a>, written for The Center of Global Enterprise, I look into the role of global leadership<\/strong>, diagnose its relevant contextual conditions and relative demands, and give some recommendations for how multinationals can assist their global leaders<\/strong>.<\/p>\n

Global leaders as main actors of cross-border expansion<\/strong><\/h2>\n

Cross-border business expansion is in need of the global distribution and sharing of knowledge, experiences and best practices<\/strong>. Neither a centralized HQ nor total localization can serve these purposes. Instead, integration, which entails leveraging diversity<\/strong>, identifying important commonalities and multi-directional sharing<\/strong>, seems necessary. Such integration can occur through global mobility<\/strong>, yet, industry surveys suggest that companies struggle with managing and finding enough talents to feed these mobility needs. In other words, if multinationals can\u2019t get enough individuals to physically relocate for work, they need to diffuse the necessary local knowledge and skills<\/strong> in other ways, namely through global leadership.<\/p>\n

Contextual conditions and demands of global leaders<\/strong><\/h2>\n

In a global context, leaders experience greater levels of complexity<\/strong> when fulfilling their specific tasks, for example as a result of frequent and intense changes in the task environment. This task complexity increases coordination challenges, for example when coordinating new product development across different regulatory regimes and customer groups.<\/p>\n

The increased complexity that global leaders face also entails a relational dimension<\/strong>. For example, communication is likely more virtual (e.g., video conference) and asynchronous when leaders can spend less contact time with each respective counterpart given the wide geographical dispersion of their counterparts and task responsibilities. On the other hand, striving for more productive and efficient face-to-face meetings may slow down coordination processes. Leading across non-proximate locations also entails a variety of social frictions<\/strong>, due to lack of common language skills, cultural misunderstandings, stereotypes or other biases that impair effective interaction.<\/p>\n

The outlined contextual requirements demand high physical and psychological mobility from global leaders<\/strong>. Physical demands involve, for example, the willingness to adopt a frequent flying life style<\/strong>, similar to that of George Clooney starring as Ryan Bingham, a travelling corporate downsizer in the 2009 movie \u2018Up in the Air\u2019. Psychological mobility is about adjusting thought patterns and behaviors to effectively interact with people<\/strong> and adapt to situational demands across cultures<\/strong>. Moreover, apart from cognitive responses to different situations, one needs to adapt affective responses, thus being empathetic towards cultural others.<\/p>\n

Recommendations for multinationals<\/strong><\/h2>\n