Research Article: 2024 Vol: 28 Issue: 3
An Exploratory Analysis of Effective Global Leadership on Organizational Performance in the 21st Century Management
Rachel Konyefa Dickson, Niger Delta University
Oyeinkorikiye Stephan Isaiah, Niger Delta University
Citation Information: Konyefa Dickson, R., Stephan Isaiah, O., (2024). An Exploratory Analysis of Effective Global Leadership on Organizational Performance in The 21st Century Management. International Journal of Entrepreneurship, 28(3),1-18
Abstract
The twenty-first century's leadership challenge is navigating a complicated, dynamic, and ever-changing multi-cultural milieu. This paper is an exploratory analysis of effective global leadership on organizational performance in the 21st century management. Due to globalization, leadership is increasingly complex and demanding in the present era. Effective global leadership is at the core of determining the efficacy and performance of organizations, although many other elements also influence and drive organizational performance. The pattern of leadership is crucial for navigating through the challenges of different situations, especially a global organization with diverse workforce. There is a major gap between the international human resource demands of global strategies and their actualization, even though the necessity for developing leaders possessing the necessary skills has become increasingly apparent. This study revealed that the global environment is more dynamic and uncertain, which presents high pressure on all organizations. These conditions are fast spreading into the domestic environment, placing far-reaching challenges and demands on management and leadership of all organizations. The researchers conclude that building dynamic capabilities and effective global leadership strategies are the panacea for organizational performance in the 21st century management.
Keywords
Globalization, Effective Leadership, Organizational Performance, Cultural Intelligence, Cultural Flexibility
Introduction
In the past few decades, the contemporary work environment has experienced far-reaching paradigm shifts, resulting in significant impacts on leaders who are operating on a global and international scale. Globalization and information technology-based revolution have significantly changed veracity of work systems in the corporate world, creating a complex, ever-evolving, and limitless environment (Bartlett & Ghoshal, 2003). Contemporary business environments are global, dynamic, complex, highly competitive, and extremely volatile, and these trends are expected to continue without been altered. A range of factors, including the necessity for new markets, economic pressures, heightened competition, and diverse government initiatives (Sealy et al., 2010), have facilitated the globalization of business. Small and large firms increasingly have geographically, socially, and culturally distinct suppliers, buyers, customers, shareholders, and employees globally (Bell, 2010). Transnational corporations operate in multiple international markets, develop strategies that have a global impact, and manage virtual and diverse teams (Bartlett & Ghoshal, 1998). Globalization, an accelerating rate of change, dynamic and networked organizations, and the need for ethical and accountable leadership present challenges to all organizations. As a result of the ongoing leadership challenges that globalization generates, Multinational Companies (MNCs) are increasingly obligated to develop leaders capable of managing and leading on a global scale (Mendenhall et al., 2003). Again, globalization is considered increasingly complex and demanding, therefore leaders need to build dynamic capabilities to enhance their operational effectiveness in this present era. Despite the growing interconnectedness of nations and the globalization of business entities, cultural disparities have endured, resulting in additional challenges for organizations (House et al., 2004).
All organizations are now operating globally because of globality, elevating their products and services to compete worldwide due to technological advancements, deregulation, and increased competition. Globalized firms are highly performance-driven because of the intense market competition; as a result, they are always thinking about how to improve, what goals to set for themselves, and how to grow their business. Effective leadership is at the core of determining the efficacy and performance of such organizations, although many other elements affect and drive organizational performance. The future success of multinational businesses (MNCs) depends on leaders who can navigate through the latitude of complicated, dynamic, unpredictable, and complex global contexts (Caligiuri, 2013). MNCs that are capable of developing and implementing effective global leaders will ultimately attain competitive advantage on an international scale. For organizations lacking global leaders, it has been a disaster since their leaders do not understand the dynamics of the volatile 21st-century business milieu. The significance of leadership in achieving organizational success in a globalized economy cannot be overstated. Therefore, organizational leaders must possess the requisite qualities to move across the global business environment effectively, particularly in multinational corporations (MNCs). However, most leaders have not had the necessary training, education, and preparation to effectively handle the complexity of this environment (Black & Mendenhall, 2007). When an organization's operation spans the globe, it needs managers with skills and attributes that will benefit the organization to work across regional, national, and international boundaries to steer the business to profitability. This is the goal of effective global leaders with flexible leadership styles and cross-cultural orientation; to promote a culture of psychological safety and innovation, thereby breeding the growth mindset in employees to turn the challenges of the organization into profitable prospects and products that, in the long run, will emerge as industry leaders in their fields of operation.
The contemporary leadership challenge is navigating a complicated, dynamic, and ever-changing multi-cultural milieu. Leaders in most fields operate globally and need certain skills to maximize their impact (Thorn, 2012). A leader's ability to influence subordinates' or team's performance, satisfaction, and efficiency measures her leadership effectiveness (Derue et al. 2011). There remains a major gap between the international human resource demands of global strategies and their actualization, even though the necessity for developing leaders possessing the necessary skills has become increasingly apparent. The global environment's dynamics, diversity, and complexity are spreading into the domestic environment, placing more demands on management and leadership competencies across all levels of organizations. This research aims to review global leaders' challenges and the competencies that enable global leadership effectiveness in the global business environment.
Literature Review
The Concept of Global Leadership
The concept of 'global leadership' emerged in response to organizations' need to operate effectively in the current global business environment (Mendenhall, 2008). Global leadership has conventionally been described as leaders occupying positions that involve some degree of international influence (Spreitzer et al., 1997). The concept of global leadership, however, is always evolving. Harris et al. (2004) define global leadership as the capacity to function efficiently in a global setting while demonstrating regard for cultural diversity. According to Osland, Bird, Mendenhall, and Osland (2006), global leadership is a process of influencing a global community's beliefs, attitudes, and actions to work effectively towards a shared vision and objectives. Global leadership refers to how individuals influence various internal and external stakeholders from diverse national cultures and jurisdictions. This influence operates in a setting where relationships and tasks are significantly complex (Reiche et al., 2017). In order to achieve success, global leadership, according to Dunn, Lafferty, and Alford (2012), entails the ability to guide organizations and groups comprised of individuals and groups with distinct abilities and perspectives from various societies. Global leadership was similarly defined by Adler (1997) as the capacity to motivate and exert influence over individuals situated in diverse geographical locations. As Dunn et al. (2012) stated, the global leadership concept emphasizes the collaboration of individuals directly or indirectly engaged in the global marketplace to achieve effectiveness rather than defining leaders according to their position.
Many scholars have argued that greater clarity and comprehensiveness are necessary for defining global leadership (Mendenhall, Reiche, Bird, and Osland, 2012). Mendenhall et al. (2012) defined global leadership as influencing others to embrace a common vision by utilizing systems and processes that promote positive transformation while encouraging personal and collective development within a complex, dynamic, and interconnected environment. Mendenhall et al.'s (2012) definition emphasizes global leadership's intricate nature as a process in a complex and dynamic globalized environment. Dunn et al. (2012) highlighted that global leadership theory could be employed to examine effective leadership within the framework of complexity theory. Caligiuri (2006) posits that global leadership can substantially improve the international work environment by establishing ethical and mutually respectful teams, structures, and processes that incorporate cross-cultural stakeholders, authoritative figures, and an organizational culture cognizant of geographical, cultural, and social complexities. A recurring theme across all of these descriptions of global leadership is the importance of global engagement and cooperation.
Global leadership refers to leading on an international level, which entails organizing interconnected and interdependent tasks. The term 'global' in global leadership, according to Dekker (2012), relates to the intercultural complexities associated with managing and leading employees from diverse cultural backgrounds and the broad geographical reach of business activities. It includes shaping the attitudes and conduct of individuals from diverse cultural contexts across the globe (Mendenhall et al., 2008). Based on this definition, Dekker (2012) concluded that global leadership involves the incorporation of diverse cultural viewpoints within multinational organizations, managing the complex global business environment, and coordinating the collaboration between corporate headquarters and local subsidiaries to achieve a global strategy. Furthermore, he noted that these complex variables compel organizations to develop leaders who can effectively lead in a complex global setting. Intercultural relationships are an essential aspect of the global leadership concept. The theory of global leadership emphasizes interacting with individuals from various cultures globally instead of limiting one's interactions to those of a similar culture within one's own country (Adler, 1997; Canals, 2014). Therefore, the fundamental concept of global leadership theory involves successfully leading a wide range of individuals, organizations, and communities within a highly interrelated, constantly evolving, complex, and uncertain business setting (Dunn et al., 2012).
The strength of an organization is directly proportional to its leadership effectiveness since there is a correlation between successful global leadership and organizational performance. Globalization and recent technical developments have broken down boundaries in the corporate world, making global leadership more important than ever (Beechler&Javidan, 2007). As businesses expand into international markets, they face the challenges of effectively managing a diverse workforce and staying apprised of the most recent global developments. The successful navigation of this complex, volatile, and often unpredictable environment is of utmost importance for the long-term success of organizations (Caligiuri &Tarique, 2009). Consequently, there is a growing need for leaders with the essential skills to effectively implement leadership strategies globally, which is vital for achieving organizational success (Bartlett &Ghoshal, 1992; Caligiuri & Di Santo, 2001). Global leaders must comprehensively understand their personal histories, convictions, principles, faiths, and aptitudes for handling interpersonal dynamics.
According to Hassanzadeh et al. (2015), leading diverse people through complex environments constitutes global leadership. Caligiuri (2013) noted a growing demand for leaders who can successfully handle cultural differences, unforeseen expenditures, diverse stakeholder groups, and inconsistent regulations. Global leaders need to be aware of how their actions are perceived by those who follow them. In order to achieve this, it is important to have a good understanding of cultural differences and be able to respond appropriately while interacting with employees from diverse backgrounds. A leader's ability to inspire respect in a diverse workplace is directly related to their level of success in that role (Alire, 2008).
Global Leaders
Gessner, Arnold, and Mobley (1999) define global leaders as "individuals in corporate environments whose responsibility is to influence the actions and behaviours of others to accomplish certain organizational goals... typically demonstrated in large, multi-cultural environments." Global leadership entails taking charge globally, whether as an expat living abroad or a citizen organizing international efforts for maximum impact. According to Adler (1997), those who can significantly influence the global leadership process while interacting with people globally are considered global leaders. According to Jokinen (2005), global leaders are individuals with global responsibility for any commercial endeavour, and these leaders can also exist at lower hierarchical levels within an organization. Mendenhall et al. (2012) note that a global leader effectively motivates individuals to pursue a positive vision while promoting personal and collective development in a complex and dynamic environment. According to Caligiuri and Tarique (2009), global leaders are individuals in high-level positions like leaders, chief executives, directors, and managers with global integration responsibilities. This summarization aligns with Canals's (2014) definition, which states that individuals in high managerial positions who make technological and business decisions internationally can be classified as global leaders. According to Kets de Vries and Korotov (2010), a global leader effectively directs the achievements of a group of individuals, an organization, a community, or a country.
Mendenhall and Oddou (1985) identified three key characteristics of the global environment that global leaders must navigate: complexity, flow, and presence. Complexity describes the global environment's complex and interrelated aspects, which undergo rapid and constant changes. Flow describes the extent to which relationships and interactions influence people. Presence involves the necessity for global leaders to maintain a physical presence in multiple geographic areas (Mendenhall &Oddou, 1985). Many things contribute to the complexity and unpredictability of the global context, including cultural diversity, different governments and policies, interdependence between nations and businesses, different clients and suppliers, and learning how to function and lead in a global context (Canals, 2014). According to Caligiuri (2006), some of the most typical duties of a global leader include coordinating efforts amongst global teams, communicating effectively in more than one language, supervising employees of diverse cultural backgrounds, developing and implementing global strategies, overseeing the financial resources of global business units, engaging in negotiations with stakeholders from across the world, and overseeing the management of global risks.
Global leaders possess leadership qualities that facilitate effective performance in leading and managing international organizations. According to a study on global leadership by Goldsmith et al. (2003), global leaders possess particular characteristics that distinguish them from others, including vision, strategic thinking, change management, decision-making, and goal achievement. Moreover, Teshome (2011) described global leadership behaviour as adopting a global perspective, establishing alliances and partnerships, valuing cultural diversity, and engaging in shared leadership. Brake (1997) suggests that global leaders operate at the epicentre of global competition, which he describes as a ring of fire. They will either succumb to the fire or use the energy to perform at a higher level. Kanter (1997) posited that global corporate leaders should possess cosmopolitan qualities, enabling them to effectively integrate and exchange knowledge and oversee geographically distributed expertise, influence, and production centres. In addition to creating new communication routes, they must move capital, ideas, and people wherever needed. Pfeifer and Jackson (2008) noted that the perception of what constitutes an effective global leader is evolving. Successful global leaders are no longer equated with "geocentric globetrotters," who were reassigned from nation to nation to oversee foreign operations. Graen and Hui (1999) state that global leaders should evolve into "transcultural creative leaders."
The leadership of a global organization is critical to its success. According to Caligiuri (2006), global leaders play a crucial role in enhancing the competitive advantage of multinational firms through their strategic responsibilities. Caligiuri (2006) identifies various challenges faced by global leaders, including effectively communicating and collaborating with international colleagues and clients, managing a diverse workforce with different cultural backgrounds, negotiating and supervising relationships with international vendors and suppliers, and developing a comprehensive global strategy for financial management, risk mitigation, and business operations. Canals (2014) asserts that global leaders are responsible for developing future leaders, formulating comprehensive strategies and plans for execution, including diverse and multifaceted teams, and ensuring global coherence within the organization. It is worth noting that Canals (2014) incorporated the development of prospective global leaders into the definition of global leadership as an essential component that ensures effective succession and long-term viability. Global leaders are those with the ability to drive meaningful changes within organizations. These changes are implemented by establishing reliable communities through organizational frameworks and procedures that engage various stakeholders from different domains, rely on multiple external sources of authority, and navigate through temporal, geographical, and cultural complexities (Mendenhall, 2008). These definitions of global leaders are complementary due to the interconnectedness that characterizes global leadership. Niehaus et al. (2012) state that global leaders possess the capacity to acknowledge that individuals from diverse cultures possess distinct perspectives, discern culturally defined disparities, empathize with those who differ from themselves, display flexibility and adaptability in various cultural environments, effectively communicate and form teams across cultural boundaries, and exhibit curiosity and a willingness to learn from other cultures. These qualities and skills are essential for leaders to succeed globally.
Dunn et al. (2012) observed that a global leader's ability to inspire individuals, organizations, and societies is important. As a result, if the global leader wants all stakeholders to understand their goal, the typical country-specific method must make way for a more global strategy (Adler, 1997). However, Canals (2014) raised concerns about certain assumptions regarding global leadership. Regarding the significant impact of cross-cultural differences, the differentiation between local and global competencies, and the different types of leadership responsibilities across nations, these assumptions involve the responsibilities and capabilities of global leaders. According to Canals (2014), cultural differences primarily lead to increased complexity and ambiguity in decision-making. Furthermore, the responsibilities of global and local leaders remain applicable in various cultural contexts, but the level of unpredictability and complexity of the decision-making environment constrains their effectiveness.
Challenges for Global Leaders
Leading across cultures presents global leaders with numerous challenges and unprecedented opportunities. The six megatrends of global leadership—globalization, environmental crisis, individualism and value pluralism, digital era, demographic change, and technological convergence (Vielmetter, 2017)—bring a tremendous transformation to human life and work and present challenges to organizations and their leadership. Every organization needs a well-prepared leader for the six megatrends of global leadership with strategies to counter disruptions of the megatrends in the future, which will test the leadership capabilities of 21st-century leaders of transnational corporations.
1. Globalization 2.0: Globalization is a process, and as the world becomes a small village through interconnectivity and business dealings, global leaders need to be aware of the impact that globalization 2.0 will create (Vielmetter& Sell, 2014). Global leaders must determine how their businesses can meet the desires and earn the allegiance of these new consumers, whose tastes will likely differ from those in the West. In the age of globalization 2.0, a single, centralized plan will no longer suffice. Some emergency events are not the business of just one country, like COVID-19, and the imperative to accept diversity in all its manifestations is stronger than ever. Thus, in the future, leaders will face employees from all over the world, requiring them to have a global vision and global leadership, and when leaders make strategies, they have to think globally and act locally (Cohen, 2010). Effective leadership in an increasingly globalized environment necessitates particular leadership competencies and abilities.
2. Environmental Crisis: As Vielmetter& Sell (2014) illustrated, "Climate change will become frighteningly real and irreversible." Global warming and losing vital natural resources will elevate sustainability from a corporate social responsibility objective to a commercial imperative. Global leaders must establish long-term environmental protection cultures and articulate a compelling case for such extreme change. Furthermore, they must be quite clear about the implications for daily roles and performance. Transformational strategic thinking will be required to address the environmental crisis effectively, and it will necessitate novel types of collaboration—at times with competitors—to deliver the required complex solutions. Pless et al. (2011) assert that global leaders encounter increasing challenges when addressing ethical and sustainability issues that rise above national borders. Therefore, to prevent the exploitation of other nations to their detriment, global leaders must adopt ever more proactive stances in protecting global resources and the environment.
3. Individualism and Value Pluralism: For millennial employees, work-life balance, organizational culture, and autonomy may be more important than monetary rewards (Vielmetter& Sell, 2014). Global leaders must lead the change to flatter, more flexible organizational hierarchies while maintaining the company's focus on critical strategic objectives to retain millennials and other workers. Sohn (2014) emphasized that firms aiming to thrive in this trend must offer individuals autonomy within well-defined boundaries to promote an environment conducive to optimal performance. Consequently, global leaders must develop skills to include and inspire varied and highly individualized teams effectively.The digital era: Organizations and their leaders are losing power due to technology. The advent of the digital era makes life more convenient but puts forward higher requirements for global leaders. In the digital era, consumers are free to select and evaluate services and engage in commerce with one another. Employees working from home have become the new normal, challenging traditional workplaces and hierarchies. Ubiquitous Internet connectivity and the rise of social networks will continue to erase boundaries between work and personal lives. It has also provided opportunities to foster engagement and collaboration across globally dispersed and diverse teams (Vielmetter& Sell, 2014). Global leaders must manage scattered and diverse employees with varying levels of digital competency and encourage unity, engagement, and collaboration among loosely knit teams that meet infrequently.
4. Demographic change: The populations of different countries are ageing and are also increasingly diversified through migration, and these present businesses with expansion opportunities and threats for acquiring necessary talents in the workforce (Beinecke et al., 2007). Leaders face the challenges of a declining global workforce, persistent shortages of skilled workers, and intense competition for talented individuals due to an ageing population (Sohn, 2014). Therefore, business leaders must attract and retain high-quality talent and allocate resources according to the company's development and employees' needs. Global leaders face challenges balancing continuity and knowledge with an ageing workforce and attracting, developing, and retaining new talent.
5. Technological Convergence: Advanced technologies are transforming numerous facets of daily life. Advanced scientific disciplines such as nanotechnology, biotechnology, IT, cognitive science, and robots will revolutionize many industries (Sohn, 2014). Technology is the centre bolt and powers the other megatrends (Hajkowicz,2015). A few global enterprises, such as Kodak and Nokia, have declined because they failed to keep up with technological innovations. In contrast, some have taken advantage of technological innovations and become big global enterprises. As such, global leaders must remain sensitive to society's reaction to radical technological leaps and the development of technology and keep their enterprises aligned with it. Further, technology determines the global system's structure and significantly impacts global politics, economy, and culture (Shankar, 2021). Greater organizational profit and improved quality of life have resulted from technological advancements that save time and resources. Technology has also brought people closer together in a global society where laws, languages, and beliefs are not exclusive. According to Shankar (2021), technology transforms businesses and people's work. Innovations in technology are also giving rise to virtual companies, virtual leadership, and virtual workforces; as a result, the new virtual workplace necessitates new approaches to leadership.
Adapting to other cultures, understanding diverse backgrounds, and communicating effectively across cultures are additional challenges for global leaders on top of the six megatrends. In order to understand the psychological aspects of collaborating across cultural and mental boundaries, Nirenberg (2002) argued that world leaders need to gain international experience. Leaders on a global scale must adapt to the ever-shifting needs of stakeholders and other entities in the global marketplace while also making a sustainable and socially responsible contribution to the advancement of society and the economy (Pless et al., 2011). However, Kee et al. (2017) stated that understanding global challenges, cultural differences, and global work experiences does not necessarily guarantee effective global or cross-cultural leadership. Similarly, holding an organization's executive or manager position does not necessarily mean they have what it takes to be a leader. It is a significant challenge for global leaders to address broader cultural, social, ecological, and ethical concerns in a global setting while maintaining principle-driven and ethically sound behaviour and meeting the reasonable expectations of various stakeholders (Pless et al., 2011).
Schneider and Barsoux (2003) noted that one of the global leaders' biggest challenges is turning cultural differences from a threat into a resource. They contend that doing so is crucial for optimizing the capabilities of cross-border alliances, as it enables the ability to respond quickly and effectively to the constantly evolving demands of the global economy. In addition, Chuang (2013) argued that global leaders must have a more adaptable relationship with their followers at work. Organizational success depends on leaders and followers developing a deep sense of trust and loyalty. Members' behaviours and devotion to the leader and the company could be greatly affected by a stronger manager-employee relationship, according to Lussier (2015). Leaders on a global level need strong leadership skills to motivate their teams to reach company objectives. According to Pless et al. (2011), global leaders face the challenge of balancing needs for global incorporation and local responsiveness. It includes developing an organizational culture that is culturally sensitive, adaptable and has a global mindset. It also requires moral judgment, balancing contradictions, and a mutual understanding of global justice and fairness. Additionally, it involves ensuring consistent leadership decisions while being sensitive to local cultural norms and conditions.
Essential Competencies for Effective Global Leadership
In the 21st century, leadership is influenced by disruptive trends that necessitate leaders to acquire new competencies to effectively lead in an increasingly evolving global context (Adler, 2002). Amagoh (2009) identifies effective global leadership as a key driver of organizational growth and competitive advantage. The theoretical foundation of global competencies is based on the assumption that having the acknowledged basic characteristics of global leaders enables them to handle situations that demand global leadership effectively. Madanchian et al. (2017) state that effective leaders exhibit the necessary skills, expertise, and behavioural traits that contribute to the success and growth of their organizations. Competencies are patterns of behaviour that have the potential to improve an organization's efficiency and productivity. Haasanzadeh et al. (2015) described it as "clusters of behaviours that generate superior performance" in work settings. Global leadership competence is a complex framework that necessitates integrating knowledge, skills, attitudes, and values to address global challenges and navigate cross-cultural contexts effectively. Global leadership competency is the ability to carry out one's duties in contexts other than one's home country (Jokinen, 2005). Global leadership qualities enable leaders to understand diverse cultures and perspectives and foster the ability to perceive things from alternative viewpoints through critical thinking, creativity, and adaptation.
Caligiuri et al. (2019) observed that organizations have suffered adverse effects on their competitiveness and growth due to their leaders' inadequate ability to effectively lead globally. Mendenhall et al. (2012) argued that developing global leadership could be achieved by developing specific competencies and characteristics to address issues in the global workplace effectively. Therefore, it is crucial to identify and select the unique skills and competencies that global leaders need. Theoretical research on global leadership indicates that possessing essential competencies enhances leaders' effectiveness in global environments, irrespective of the organization's level, position, or size (Amagoh, 2009; Herd et al., 2016). These competencies include personal qualities, expertise, values, and knowledge (Jokinen, 2005).
Goldsmith et al. (2003) state that essential competencies for a global leader include thinking globally, valuing diversity, proficiency in cutting-edge technologies, collaborating with people from diverse cultural backgrounds, and effectively delegating leadership responsibilities among team members. Jokinen (2005) identifies self-awareness, tolerance, excitement, social competence, a desire to cooperate with others from many cultural backgrounds, and an ability to effectively deal with uncertainty as characteristics of global leadership. The ability to manage people, adapt to other cultures, communicate effectively, and handle stress well are all competencies that contribute to a global leader's effectiveness (Jokinen, 2005). Adaptability, transparency, knowledge of the organizational structure, fluency in foreign business practices, expertise in international business and global business challenges, the ability to lead change, and fluency in foreign business practices were among the competencies identified by Caligiuri and Di Santo (2001) as essential for global leaders from an organizational standpoint. Mau (2016) outlined a set of essential qualities that effective global leaders should possess. These include having a stable character, being open to new ideas, demonstrating effectiveness in business and technology, showing interest in and being capable of adapting to many cultures, displaying resilience in challenging situations, and upholding honesty and integrity. Also, Mau (2016) stated that a global leader's most important competencies are adaptability, respect, open-mindedness, effective communication, and curiosity.
Bird (2013) identified essential competencies for effective global leaders, including possessing a clear vision and strategic thinking abilities, leading and managing change, being knowledgeable in business and organizational matters, being skilled at managing diverse communities, valuing people, possessing strong interpersonal and teaming skills, empowering others, being skilled in cross-cultural communication, demonstrating curiosity, having a global perspective, being adaptable, displaying strong character, and demonstrating resilience. Herd et al. (2016) stated that while there may be differences, most competency models in the field emphasize the importance of qualities associated with global leadership, including adaptability to various cultures, an open mind, and the ability to acquire new knowledge. According to Caligiuri and Tarique (2012), leaders involved in cross-cultural initiatives at work are more adaptable to different cultures and can better lead globally.
In addition, Jokinen (2005) noted that self-awareness is one of the core competencies that lead to effectiveness in global leadership. This dimension points to people's awareness of their strengths and frailties in interpersonal skills, philosophies, and values, how their values and behaviourimpact relationships when dealing with others, and how previous experiences have moulded them into who they are today. Higher self-awareness allows the person to develop new competencies and skills needed to perform well (Bird et al. 2010). Also, cosmopolitanism has been portrayed as a personal characteristic that leads to a better understanding of global markets, thus helping global managers succeed. Bird et al. (2010) define cosmopolitanism as a natural desire for knowledge about different cultures and countries and a degree of attraction towards global affairs and events see figure 1.
Figure 1 Overview of Global Leadership Competencies
(Mendenhall, 2011)
a. Global Mindset: Global leadership entails expanding beyond the concept of 'geographical reach' to include 'cultural reach' and 'intellectual reach' (Osland et al., 2006). It is important to transform a person's mindset or perspective to attain the position of a global leader. Gupta and Govindarajan (2002) define mindset as the internal and external manner in which individuals and organizations perceive the world. A global mindset is a cognitive state characterized by the ability to understand a specific market, industry sector, or business from a global perspective (Jeannet, 2000). Additionally, it is seen as a set of tools that can assist multinational corporations in finding untapped market niches, strengthening their position in existing ones, and gaining a competitive edge on a global scale. According to Maznevski and Lane (2004), having a global mindset entails creating and comprehending standards for individual and organizational achievement independent of expectations from a particular nation or culture or setting and applying those standards appropriately across various nations, cultures, and settings. Cohen (2010) described it as "thinking and acting globally and locally simultaneously." Managers must understand when, for example, to standardize something on a global scale or when to customize something for local preferences, keeping in mind the differences and needs of people. A person's ability to absorb and process new information through experience determines how much they develop a global mindset. Four variables, according to Gupta and Govindarajan (2002), influence the development of a global mindset that emphasizes mindset cultivation, which includes curiosity and dedication to acquiring new information, self-awareness regarding one's present frame of mind, experiences in diverse and new contexts, and the capacity to understand and work within the context of diverse and multi-cultural groups. A global mindset is essential in today's increasingly global business environment (Gupta &Govindarajan, 2002).
Figure 1 Overview of Global Leadership Competencies
(Mendenhall, 2011)
According to Kedia and Mukherji (1999), for leaders to attain globalization, they must modify their paradigm and mindset to adopt a more complex global mindset. Murtha, Lenway, and Bagozzi (1998) defined a global mindset as the cognitive process that leaders use in relation to global strategy and organization. Levy et al. (2007) categorized global mindsets into three broad categories: cultural, strategic or multidimensional, individualistic, and corporate approaches. According to Mendenhall et al. (2017), leaders who have a global mindset have three types of capital: 1) global intellectual capital, which includes knowledge of the global industry, global value networks, the global organization, cognitive complexity, and cultural insight; 2) psychological capital, which includes a positive psychological profile, cosmopolitanism, and a passion for cross-cultural and cross-national encounters; and 3) social capital, which includes structural, relational, and cognitive social capital. According to Begley and Boyd (2003), the top leadership should promote a corporate mindset, distribute decision-making responsibilities, and establish strategic market presences to gather relevant market knowledge. Developing a global mindset should be a primary and fundamental focus of global leadership development. The development of a global mindset is influenced by various factors, including international management development, cross-cultural training programs, international assignments, and international experience (Story, 2011).
b. Cultural Intelligence: According to Ang et al. (2007), cultural intelligence (CQ) is the ability to interact efficiently in culturally diverse environments. CQ refers to an individual's ability to adjust to unfamiliar cultural environments effectively or the ability of leaders engaged in intercultural exchanges to perform successfully in an increasingly globalized environment (Knap-Stefaniuk, 2020). According to Van Dyne et al. (2012) and Ang et al. (2007), cultural intelligence comprises four components. One of these components is meta-cognitive CQ, which refers to an individual's awareness of different cultures, ability to process information deeply, and methods for interacting in diverse cultural contexts (Van Dyne et al., 2008). Cultural CQ refers to one's comprehension and mastery of cultural practices, expectations, norms, and differences and similarities among cultures when interacting across cultures. This understanding is gained through education, professional experiences, and personal experiences (Van Dyne et al., 2008). Motivational CQ refers to having the ability to communicate and work with people from different cultural backgrounds while maintaining a positive attitude toward diversity. It is formed when an individual's intrinsic values, ambitions, resolve, capability, and self-confidence enable them to participate actively in professional, personal, and social engagements while navigating unfamiliar cultural environments (Van Dyne et al., 2008). One can attain this by being internally driven and ready to adjust to a wide-ranging cultural setting. Behavioural cultural intelligence (CQ) refers to an individual's capacity to effectively control and regulate their behaviour in cross-cultural situations. It involves adapting appropriate verbal and non-verbal actions to prevent disrespect, confusion, and neglect from a lack of understanding of cross-cultural expectations (Ang et al., 2007).
Global leadership skills have grown significantly in today's dynamic work environment, and cultural intelligence can facilitate successful global leadership development (Crowne, 2008). CQ refers to distinct abilities that enable leaders to acquire knowledge from their experiences, turn those experiences into learning opportunities, and effectively navigate cross-cultural and global contexts (Ang et al., 2007). Elenkov and Manev (2009) argued that strong cultural intelligence enhances the beneficial impact of expatriate leadership on innovation of that nature. A leader's ability to motivate, stimulate, and direct subordinates, as well as to overcome internal organizational challenges and promote creativity, is expected to be enhanced by their cultural intelligence. Increased interaction with people from diverse cultural backgrounds in the 21st century makes effective conflict resolution an essential competency for leaders, and leaders with high levels of CQ are sure to meet these demands (Ramirez, 2010). Cultural intelligence competencies significantly influence the job performance of global leaders. Hence, organizations need to prioritize the establishment of global high-potential programs. These programs aim to identify individuals who demonstrate potential in cross-cultural learning, facilitate training for expatriates, implement efficient succession planning, offer cross-cultural education and feedback, and ensure that every higher-level manager takes personal responsibility for fostering culturally intelligent workplaces and developing global leaders.
c. Cultural Flexibility: The contemporary global workplace is characterized by increased diversity and dynamism. Organizations have international operations, including businesses, customers, and employees, necessitating leaders to collaborate across various time zones, geographical locations, and cultural backgrounds. Hence, leaders operating in multinational corporations must acknowledge cultural differences and skillfully collaborate across diverse cultures (Prince & Deal, 2018). With the growing interdependence of global businesses and the accelerating rate of change, flexibility has become a crucial aspect of global leadership skills. Understanding and appreciating a culture without any pre-existing biases or judgments is a crucial skill that all leaders must possess to navigate complex, effective multinational organizations (Rowland, 2016). Flexibility refers to an individual's capacity to readily adjust and react to changes, take prompt actions, and adapt their behaviours and mental processes (Blaskova, 2015). The leader's ability to adapt and progress towards the future depends on their level of flexibility. By implementing global leadership competencies, leaders and organizations can significantly enhance their capacity to navigate across many geographical and cultural contexts. This enables them to effectively address difficulties as they arise, leading to exponential growth for the firm and its leaders (Carey et al., 2004). Global leaders must be able to adapt and address various demands, requirements, disputes, and misunderstandings that develop among people in global settings. According to Shaffer et al. (2006), cultural flexibility refers to replacing one's cultural activities with different activities already existing in a foreign host country or environment. Maznevski and DiStefano (2000) argue that having cultural flexibility enhances a leader's performance when working in global situations for extended durations.
In order to successfully guide a diverse group of persons, leaders must possess a comprehensive understanding of the cultural background of each member, as well as the capacity to adapt and accommodate to different cultural norms and practices. Fostering leaders' respect and acceptance of diverse national, geographical, and religious practices will enhance global leadership performance (Bonsu&Twum-Danso, 2018). In order to perceive local cultural patterns with clarity and establish a consistent framework within which local cultures can adjust to a sense of cultural imposition, effective global leaders maintain a healthy degree of detachment from the local culture (Rowland, 2016). Culturally adaptable individuals could manage themselves, their relationships, and their business requirements globally (Caligiuri et al. 2019).
d. Cross-Cultural Experience: Leaders in multicultural organizations must be sensitive to employees' needs and respect their cultural norms. Most teams in multinational corporations consist of individuals from diverse cultural backgrounds. Magala (2005) asserts that different social circumstances and surroundings give rise to distinctive cultural patterns and interpretations of behaviour and thought. Therefore, interacting with people from different cultural backgrounds is an essential competence for global leaders (Schneider &Barsoux, 2003). A leader's cross-cultural experience may also affect their performance in managing host country nationals. Leaders with prior experience in foreign nations are more likely to adjust well to cultural differences due to their enhanced capacity to accommodate diverse people (Glick, 2002). Hajro and Pudelko (2010) discovered that cross-cultural experience is essential for global leaders to be effective in their roles. Glick (2002) discovered a favourable correlation between cultural training, experience, and leadership effectiveness when examining leaders' performance in cross-cultural environments. According to Kayes et al. (2005), leaders in a global business setting can gain cross-cultural experience by interacting with team members from different nationalities, navigating cultural differences, forming relationships, and completing global-level tasks.
In addition, Bandura (1977) noted that people acquire cross-cultural experience through conversations with others from many cultural backgrounds and nationalities. Leaders can improve their effectiveness through cross-cultural experience gained through business-initiated activities like international travel or working on global assignments (Caligiuri &Tarique, 2009; Maznevski&DiStefano, 2000). Amir (1969) suggests that leaders with greater experience with global contexts tend to develop a more favourable mindset towards individuals from various countries and cultures.
Developing a Global Leader
Effective global leadership is crucial for navigating the challenges of dealing with different workers and driving organizational growth and transformation to new heights. The increasing pace of globalization has led to a growing need to develop global leadership skills. More global leaders are needed; most organizations recognize this (Hassanzadeh et al., 2015). Furthermore, it has been underlined that the difficulties of finding qualified leaders are especially relevant in the current global economy. As an organization's global activities increase, there will be a growing need for a fluid and dynamic pool of leadership talent. According to Caligiuri and Tarique (2012), having leaders who possess global competence is essential for organizations to compete and achieve success globally. Conger and O'Neill (2012) found that many organizations might benefit from having more global leaders. According to leadership researchers, specific qualities make for good global leaders. These include being truthful and upstanding, being willing to compromise on both personal and business preferences and standards (with a few notable exceptions), and growing as a leader through a nonlinear process that includes cognitive, effective, and behavioural components (Hassanzadeh et al., 2015; Jokinen, 2005; Mendenhall et al., 2012). Successful global leadership development programs necessitate the involvement of key organizational leaders who establish clear expectations for effectively teaching leadership skills at all crucial levels while also considering future and unforeseen obstacles. Caligiuri (2006) established a framework for identifying the necessary KSAOs (knowledge, skills, abilities, and other personality characteristics) required for employees to perform job tasks effectively. By matching individuals with the appropriate KSAOs to the right development opportunities, organizations can cultivate leaders capable of operating globally and engaging in global tasks and activities. Hence, those who possess cultural intelligence, identify themselves as contributors to global endeavours and possess the ability to embrace and value variety have a significant likelihood of becoming global leaders (Hassanzadeh et al., 2015). Mendenhall et al. (2012) argued that to develop global leadership, one must acquire the competencies and qualities necessary to handle challenges that arise in a global workplace successfully. Tuleja (2014) proposed strategies for cultivating global leaders, including comprehending the interplay between organizations and cultural and societal forces, transitioning from mere knowledge to cultivating mindfulness that impacts behaviour in cross-cultural work environments, and maintaining mindfulness while operating in cross-cultural settings. Chin et al. (2001) outlined several ways organizations and individuals can develop their global leadership competencies. These include hiring leaders and employees from different cultural backgrounds, developing social networks that span cultures, and making it easier for teams and projects to operate across borders.
Conclusion
The rapid acceleration of globalization caused by advances in information and communication technologies highlights the critical need for effective global leadership in the 21st century. Leaders have more difficulties than ever due to economic uncertainty and the rapidity of social and technical development. Global leaders are essential to the success of their organization, as they are responsible for developing strategies that affect the entire firm and liaising between many international stakeholders. Leadership on a global scale calls for specific abilities and characteristics, such as familiarity with different cultures and businesses, the ability to think critically and solve problems, strong interpersonal skills, and an extroverted personality type. Education, leadership development, global rotational assignments, and similar activities can help hone these skills. In addition to making the leader more effective in global situations, these core abilities will help the leader influence followers to achieve company goals. When designing leadership development programs, companies should remember that employees' knowledge, skills, abilities, and other qualities are adaptable. Above all else, global leaders must acknowledge the value of global teams and the platform they provide for the development of future global leaders.
Global leadership necessitates acknowledging and appreciating cultural variety among individuals and the ability to embrace and understand perspectives and value systems that may greatly differ from those of the leader. In order to thrive in a highly competitive global landscape, today's organizations must not only adjust to the evolving dynamics of this environment but also stimulate and encourage their employees' innovative and adaptable actions and ideas (Knap-Stefaniuk, 2020). In order to become a dynamic organization that focuses on the market and customers and takes on innovative and challenging tasks, it is important to have visionary leaders who can drive change and understand and take advantage of the benefits of effective global business operations.
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Received: 28-Feb-2024, Manuscript No. IJE-24-14621; Editor assigned: 02-Mar-2024, Pre QC No. IJE-24-14621 (PQ); Reviewed: 14-Mar-2024, QC No. IJE-24-14621; Revised: 19-Mar-2024, Manuscript No. IJE-24-14621 (R); Published: 26-Mar-2024