Literature Review
Literature Review
Introduction
The aspect of good leadership is an essential integral in the sustenance of progress in international organizations as depicted to be at the core of this literature. This topic is important in various aspects in relation to organizational leadership and strategies for international business operations. First, the structures that support effectiveness in leadership are enormously varied across the global agencies and therefore this research paper gives the highlights on some of the best leadership practices to enable an undertaking of business operations within the different environment worldwide. Secondly, international strategy unveils the concern that managers throughout the globe are recognizing and acknowledging the increasing necessity for their organization and companies to develop the aptitudes, knowledge, and skills to compete effectively in the international markets. The review will discuss a range of aspects of the topic which would include: the need for companies to go international, essentiality of effective leadership strategy, essentials of a leader in international strategy accomplishments, competitive intensity, and focus of leadership in international markets.
Criteria and Organization of the Literature Selection
This literature review is undertaken on the basis of secondary data. The information collected for this review range from journals to academic books published in the last six years. On the other hand, the organizational pattern for this review entails giving insights of the leadership attributes within the international arena, and focusing on the strategies of the business in a global context.
Historical Background
There is an emergence of a more open world economy which has led to the globalization of the consumer tastes and the unprecedented global expansion of internet access, thereby increasing the interconnections and interdependency of various nation economies throughout the globe (Ernst & Chrobot-Mason, 2011). Therefore, the managers need to have leadership skills that would enable them to have an international strategy and effective respond to these global pressures affecting organizations of all sizes. Moreover, the organizations under effective leadership systems should integrate an international strategy within its operations in the global context for the development of a multicultural community of workforce and individuals prepared for global political and social environments. This would facilitate development of international alliances in business and research for highly competitive global business undertakings (Smith & Campbell, 2010).
Methodology
This review is based on applied and fundamental researches. The emphasis put on applied research of the aspect of this topic is to find a solution for a better way of forging an effective leadership and international strategy, whereas the fundamental research basically gives insights on generalizations and theory formulation of the topic in question. Additionally, a good coverage of this review leans on qualitative research which unveils the trends in opinion, thought and gives an insightful perception of the topic.
Previous studies on the topic
According to McGuire & Rhodes (2009), there is need for organizations to go international. Economic globalization has made it easy for businesses to expand their markets quickly in order to incorporate their global clients. These expansion missions are made possible in part as 21st century marks technological breakthrough rendering global communication easier (Ewington, Lowe & Trickey, 2012). Email networks and air travel have enabled the course of managing these businesses from a remote location. In the modern times, businesses usually have the option of going global, but there is need for them to assess a range of considerations before initiating such expansion.
The global operations have often been attractive to business managers seeking to reduce their budgets and increase their profit. For instance, it becomes possible to scale business overhead costs in those countries with fairly deflated currencies and lower costs of living. The companies find it easy to employ a workforce in such countries due to the prevailing low cost of living (McGuire & Rhodes, 2009).
Hypothesis 1: The diversification of markets for an organization’s products is a way of reducing the risk as this shifts economic strength between different regions of the world.
Mainstream versus Alternative Viewpoints
Need for an effective leadership strategy
The players in the international markets usually recognize the significance of developing effective leadership which would facilitate the company’s strategy processes. Such linkage enables organizations in identifying and enacting wisely chosen strategies that would sustain the competitive nature of the international businesses. Dinwoodie (2011) argues that the strategies for the business usually do not pinpoint at the organization’s capability to implement such strategies. Therefore, having effective leadership strategy becomes necessary in unleashing the abilities and the group’s potential or of an individual across the organization with an aim of achieving success. Leadership strategy initiative enables the attainment of the business strategy within that organization. This statement is backed with the argument put forth by Ewington, Lowe & Trickey (2012) that leadership strategy links the gap existing between the organization’s strategies and its final performance.
The essentials of a leader in international strategy Accomplishment
The foremost concern of leadership strategies is to ensure review of the organization’s strategies and help in identifying the leadership capabilities and competencies that are necessary for the purpose of implementing them. They are considered as the leadership drivers which need a strategic investment with an aim of laying a foundation of lasting organizational success (Goldsmith, Greenberg, Robertson & Hu-Chan, 2013). The drivers play the role of levers which if pulled then catapult the international strategy of the organization forward. They constitute the areas which should be prioritized and invested in to affirm the company’s capability towards executing the strategy. Identification of the drivers also helps in classifying what may not be essential and eliminate the worries about what are most important, thereby, avoiding strategic distraction.
The focus of leadership in international market
It is of great importance to uphold effective leadership within the international agencies because the world depends on these organizations to enable easing of cooperation, be it, from the frontiers of constraining pandemics, delivering mails to foreign countries, or even enabling citizens to fly safely to other countries. According to Beechler and Baltzley (2010), efficient operations in the international markets by different businesses call for the need to have leaders with ability to recognize and deliver on the goals of the organizations with no undue influence or constraint by individual members or any other stakeholders. It is, therefore, essential that the international strategy entails managing and recruiting people into the management positions of the organization on the basis of experience, competence, and knowledge necessary for leading the organization. Additionally, the strong accountability and democratic election processes are vital in ensuring that the interests of the executive management are aligning with the organization. Good leadership is not enough per se for successful international cooperation, though, it is essential for the purpose of effective governance (Kramer, 2015).
Competitive intensity
The international strategy encompasses edging competitive intensity within the overseas markets. The organizations and companies operating in the international markets should strategize to the possible competition which could contribute to the complexities of decision-making processes as the firms need to utilize, recombine and create knowledge and at the same time considering the threats of competition(Beechler & Baltzley, 2010). Under stiff competition, there is an increase of uncertainty by the chance of opportunism and lack of protection for an organization’s knowledge resources.
Principle questions asked on the topic
The principle questions asked about Leadership and International Strategy include how different individuals share visions and core values with other leaders within the organization in order to heighten a competitive edge in the international arena. The various multinational organizations also seek to find a solution to what could be the best international strategy to implement to foster highly competitive performance.
Conclusion
The driving force behind global leadership development is the organization’s global business strategy. A person may have a global experience at work, there exists no guarantee that there would be an effective global leadership. The corporate managers need acquisition of true global mindset which facilitates leadership effectiveness in the international arena. The demand for a global mindset increases with the increase in cultural and business complexities worldwide and across the complex business environment. Survival in the international markets calls for a strategic approach in line with the organization’s leadership and the general operations of the businesses. The business must undertake a cross- cultural, social and political analysis of the international markets to come up with the most effective strategy to sustain the highly competitive environment. Effective leadership with vast experience and knowledge in international business operations is a necessary concern that an organization aiming to meet its outlined performance goals must address. This is because there is a huge correlation between the organization’s leadership strategy and the success of the company in its stipulated business strategy.
Bibliography
Beechler, S., Baltzley, D. (2010), "Creating a global mindset", Chief Learning Officer, Vol. June pp.40-5.
Dinwoodie, D.L. (2011). DCLB: A Performance-oriented Model to Leading Across Differences and Managing Internationalization Processes. Birmingham, UK: Aston University.
Ernst, C., & Chrobot-Mason, D. (2011). Boundary Spanning Leadership: Six Practices for Solving Problems, Driving Innovation, and Transforming Organizations. New York, NY: McGraw-Hill Publishers.
Ewington, N., Lowe, R., & Trickey, D. (2012), Being International. International Management Development, Worldwork Ltd, London, .
Hughes, R. L, Beatty, K.C. & Dinwoodie, D.L. (2014). Becoming a Strategic Leader: Your Role in Your Organization’s Enduring Success. Second edition. San Francisco, CA: Jossey-Bass.
Goldsmith, M., Greenberg, C.L., Robertson, A., & Hu-Chan, M. (2013). Global Leadership: The Next Generation, Financial Times Prentice-Hall, Upper Saddle River, NJ.
Kramer, R.J. (2015), "Developing global leaders: enhancing competencies and accelerating the expatriate experience", Research Report 1373-05-WG, The Conference Board, New York, NY.
McGuire, J.B., & Rhodes, G. (2009). Transforming Your Leadership Culture. San Francisco, CA: Jossey-Bass.
Pasmore, W. (2009). Developing a Leadership Strategy: A Critical Ingredient for Organizational Success. A White Paper. Greensboro, NC: Center for Creative Leadership.
Smith, R., & Campbell, M. (2010). C-suite challenges and the economic meltdown: What’s next for senior leaders? People and Strategy, 33(4), 22—30.
