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CHAPTER SUMMARY
Humanity is facing pressing global challenges that are significantly impacting both society
and business. There is enormous pressure to act. Global leadership is needed to ensure
the changes necessary to address these challenges are made. This chapter starts by intro-
ducing the concept of global leadership and the complexities inherent in its practice. We
then reflect on the normative nature of assuming responsibility for global challenges and
how to navigate the complexities involved. A comparison of leadership research perspec-
tives is presented to enable exploration of how they impact our understanding of global
leadership practices and to inform an in-depth understanding of the meaning, context
and challenges of these practices. The chapter ends with an overview of the subsequent
chapters of the book.
LEARNING OBJECTIVES
• Explore the complexities of global leadership challenges.
• Understand the characteristics of global leadership practices.
• Understand the impact of different leadership research perspectives.
• Get an overview of the philosophy and content of this book.
1. The pursuit of excellence with high standards of performance and ethical conduct.
2. Understanding and drawing upon cultural diversity with respect and empathy.
3. Professional responsibility and accountability in relation to society.
The initiative for CEMS took off in 1988, with four founding European business schools.
1988 was a crucial year in the history of European integration, when European leaders
such as Jacques Delors, Helmut Kohl and François Mitterrand decided to relaunch the
game-changing next step of European integration: the ambitious plan to create a pow-
erful common currency. Mirroring the modus operandi of the European Union’s (EU) se-
nior leaders, and driven by the same pro-European spirit, the leaders of these four top
founding European business schools were convinced that the time had come to break new
ground. They informally agreed to develop a joint programme that would educate and
train multilingual business leaders with a truly European understanding and perspective.
The collapse of the communist bloc in Central and Eastern Europe and the dissolution
of the Soviet Union, combined with the IT revolution, opened the door to a period of
extraordinarily rapid economic globalization. The Western political leaders acted on the
expectation that intensified global trade, and in particular the integration of China into
the world economy, would open the door to rising global prosperity and a gradual but
universal move towards Western economic and political norms. The CEMS’ programme
responded to this change in the world order by transforming itself from a purely European
initiative into the pioneering global programme it has become. Today CEMS comprises ac-
ademic institutions from 34 countries on six continents, making it a more diverse alliance
than it was at its inception.
While globalization remains a structuring force in the world economy, the sense of opti-
mism – or as some might say, hubris or naïveté – that prevailed 20 years ago has given way
to a more sober assessment of global economic and political reality. The rise of China and
India, which has been far swifter than anticipated, has opened a new era of great power
competition, rivalry and tension. The failure of Western-led wars and military interven-
tions, combined with self-inflicted, near-catastrophic US and European financial crises,
have diminished the US and Europe’s joint standing in the world. Even more so as China
has proven that Western-style democracy is no prerequisite for decades of extraordinary
economic success.
Integrating all the diverse members of the CEMS alliance at the same pace is becoming
more and more of a challenge for the CEMS’ community. Building unity within the alliance
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4 GLOBAL LEADERSHIP PRACTICES
is something that has to be worked on every day. The original core values of CEMS are still
valid: ‘prepare future generations of international business leaders contributing to a more
open, sustainable and inclusive world’.
INTRODUCTION
As cross-border business operations started to become more frequent in the late 1960s,
management researchers started to focus on the global aspects of modern leadership. The
field of comparative international management began to analyse differences and congru-
ences between leadership styles in different cultures.5 The popular studies of Hofstede6 and
Trompenaars and Hampden-Turner7 established the field of cross-cultural management,
defining cultural dimensions that were intended to be helpful in coping with potential cultural
differences. The progress achieved in this field is founded on fundamental research questions,
such as: which definition of leadership is appropriate in an international context, how do
cultural differences influence followership, and what leadership style should be used to be
an effective leader in another culture? More recently, House8 and his research team worked
on a culturally endorsed leadership theory, drawn from the empirical findings of the GLOBE
study.
In addition to the comparative and cross-cultural management fields, studies on expatriate
adjustment conducted in the 1980s and 1990s accumulated a body of knowledge on leadership
competencies for working internationally.9 Other research constructs like cultural intelli-
gence, global mindset and cosmopolitanism attracted a lot of attention as essential attributes
of global leaders.10
While this vast amount of research has enriched the understanding of the domain of global
leadership, there is still considerable theoretical fragmentation, which makes it difficult to refer
to a coherent body of knowledge.11 Researchers like Mendenhall and colleagues12 or Zander
and colleagues13 are making efforts to advance and build a more robust theory to better under-
stand global leadership.
A century of management research confirms that leadership has been primarily associated
with characteristics or competencies of a charismatic person. Global leadership, however, is
an inherently multi-level construct that needs to be analysed not only at the individual level,
but also at organizational and societal levels. A leader-centric perspective endangers progress
in tackling complex global problems. Practitioners and scholars alike warn against relying on
a wise ‘guru’ leader or ‘hero CEO’ construct.14
Solving complex global problems requires collective responsibility and engaging and
empowering others to make necessary changes. This means global leadership should be under-
stood as a process in which an individual leader is one among many in a leadership system.15
The essence of the leadership process lies in interactive influence, where the leader’s influence
on followers and the reciprocal influence of followers on the leader contribute to the dynamics
of leadership.16
We will demonstrate in this chapter and throughout this book that global leadership is
not defined by a person, but by a process. This doesn’t mean that we are not looking at the
behaviours and skills of individual global leaders; on the individual level, we understand global
leadership as a mindset and a choice, not as a hierarchical position. By reading this book, you
will get a deeper understanding of the experience and practice of leading in a global context
and you will have a chance to reflect on your possible role as a future leader. Our goal is for
you to understand who you are, and to realize what you need to do to operate in an effective,
responsible and sustainable way to contribute to a more open, sustainable and inclusive world,
as mentioned in the CEMS’ values statement. You will discover that leading is an everyday
activity and practice rather than the heroic myth that is often presented.
In the following paragraphs we will focus on the complex challenges of global leadership,
and how to address them. We present different leadership research perspectives and explore
how these perspectives impact our understanding of global leadership practices. Finally, we
will provide an overview of the other chapters of the book.
So, what are these pressing global challenges humanity is facing and what do they mean for
global leadership? The following meta-dimensions and their components are acknowledged to
have a relevant impact on society and business:
All these challenges have specific implications for society and business. It has become clear
that it is not sufficient to deal with these problems as separate challenges; they are all inter-
connected. The World Economic Forum warns of a looming ‘polycrisis’ era where multiple
concurrent economic, political and ecological shocks will converge and ‘the whole is worse
than the sum of the parts’.17
To tackle these pressing global problems, the United Nations General Assembly formulated
the Sustainable Development Goals (SDGs) in 2015, as the 2030 Agenda for Sustainable
Development. The SDGs provide a comprehensive framework designed to guide collective
thinking and action about how to solve our planet’s problems (Figure 1.1).
A focal point of the 2030 Agenda for Sustainable Development is the notion of partnership.18
The urgency, the complexity and the global nature of the situation is forcing a multitude of
diverse actors to interact. In the search for solutions, governments of developing and devel-
oped countries, international organizations, corporations, universities, NGOs and individuals
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INTRODUCTION 7
of current and future generations are collaborating like never before. There is enormous pres-
sure to act and global leadership is needed if the SDGs are to be achieved.
Contributing to societal progress is a central theme in the CEMS’ purpose statement. The
founding partners were convinced that making profit is not the only objective of companies,
but that they must also produce solutions for society and for the common good.19 Therefore, it
is no surprise that the academic curricula of the CEMS’ Master in International Management
aim to foster understanding and dissemination of the SDGs. Another example of the CEMS’
commitment to the SDGs is evidenced by the various activities in which CEMS engages in
collaboration with partners of the global CEMS’ network. For example, CEMS participates
in the Estoril conferences,20 the United Nations (UN)-supported PRME initiative,21 and New
Generation Consulting.22 Global collaboration and partnerships among societal actors are an
essential strategy to solve the global challenges of the SDGs.23
Large sustainability-focused cross-sector alliances engage not just with businesses and sup-
pliers, but also regulators, policymakers, the social sector, customers, competitors, academics
and researchers. These large alliances can be innovative vehicles for engaging with a broad
spectrum of societal actors and are considered the most effective way to respond to the SDGs.26
The question is how well current and future leaders are equipped to plan, respond to and
navigate such complex collaborations? Most global leadership challenges result from inter-
dependence and interconnection of people, processes and culture.27 In this book, we provide
numerous examples of how effective global leadership builds positive relationships with stake-
holders both inside and outside organizations. These relationships are what allows leaders to
navigate discontinuity, push radical change and empower others to make a positive impact.
In a global context the meaning and understanding of responsible leadership can vary, first,
because of different legal frameworks, and second, because of the plurality of diverse stake-
holder needs involved. In a heterogeneous environment, stakeholders’ identities, claims and
interests are frequently in conflict. Globally responsible leadership is about the ability to meet
these different expectations, and about the willingness to be held accountable for the conse-
quences of one’s actions and behaviours.32
Pless and colleagues33 identify four different responsible leadership orientations that leaders
may use to demonstrate responsibility according to their degree of accountability and focus
on stakeholders:
These different responsibility orientations coexist side-by-side, but with today’s pressing soci-
etal challenges business leaders are increasingly prompted to adopt the fourth responsibility
Pressing global challenges and the SDGs are the metaphorical ‘elephant in the room’ for global
leadership. These problems seem so daunting that people feel overwhelmed in the face of
them. The complexity involved when dealing with global challenges is widely acknowledged.
The many contingencies of today’s global challenges and the reciprocal relationships between
them make effecting change difficult. Sometimes small actions may have significant effects,
however, they may manifest themselves much later. For example, think of the interrelation-
ships between climate change and the loss of biodiversity. This is not a linear cause-and-effect
relationship. Both problems dynamically interact with each other, making it difficult to predict
what future solutions could be.
Complexity and change have always been core aspects of global leadership.38 To understand
complexity more accurately, management researchers and practitioners have started to look at
complexity systems thinkers in life science, biology, physics, ecology and psychology.39 From
their research we understand that changes in living systems do not develop in a straight line,
but occur turbulently, unpredictably, in loops, circles, spirals or crazy leaps. This knowledge of
complex systems gives clues as to how to catalyse and shape complex systems in management.
The complex systems perspective in management understands leadership as emergent
events or creative adaptive spaces.40 This suggests a conception of leadership as distributed,
collective and shared.41 The difficulty that arises for this conception of leadership is how the
meanings of unknown, sometimes competing ideas and solutions are created, and how new
patterns of behaviour can be identified that allow adaptation to unforeseen dynamics. Leading
complexity is conceived as an interactive dynamic system that allows individuals and systems
to develop and advance new ways of thinking and operating.42
Systems thinking is considered the most helpful approach to making sense of complexity
because it takes a holistic view of interdependencies at multiple levels.47 A system is defined as
an entity with interrelated and interconnected parts that work together to achieve a common
purpose.48 Systems are regulated by feedback loops that keep the system in balance. When one
part of a living system – be it an amoeba or human society – changes, it can cause a ripple effect
that has an impact on the whole system.
Systems thinking starts from observing events or data, and moves to identifying underlying
patterns of behaviour, with the intention of assessing the (mental) structures that drive those
events. Recognizing interrelationships, feedback loops and emergent and underlying patterns
allows us to articulate problems in new and different ways, though still aware that there are no
perfect solutions. Any choice made has an impact on other parts of the system. By anticipating
these impacts more informed decisions can be made.49
Patagonia, the outdoor apparel company, uses systems thinking to understand how its oper-
ations and supply chains create feedback loops into broader society and the natural ecosystem.
Self-directed teams allow internal and external innovations to emerge by leaving ample room
for positive feedback loops. Activities like regenerative cotton farming, directing money into
This book focuses on global practices of leadership. However, theories of leadership are also
important because they explain the principles on which the practice is based. The relationship
between practice and theory is reciprocal and symbiotic,54 therefore it’s interesting to inves-
tigate in more detail how leadership theories inform and guide our understanding of global
leadership practices.
We refer to global leadership practices as the application of tools and concepts in an envi-
ronment characterized by complexity and diversity. Table 1.1 provides a general overview
of the global leadership practices addressed in this book. All these practices are grounded in
theory.
Most existing leadership theories build on positivist and essentialist assumptions. Leadership
studies in this research tradition use observable and quantifiable data collection to compare
and make causal connections between dependent and independent variables. This paradigm
aligns with the researchers’ pursuit of identifying characteristics that hold universal validity
for effective leaders and leadership. The effort to capture the important qualities of a leader
focuses mainly on identification of important leadership competencies, that is, qualities that
can be further developed.
Leadership scholars who adhere to positivist principles not only examine traits and compe-
tencies but also study the various leadership styles. Values-based approaches to leadership,
such as ethical, authentic and servant leadership, share a commitment to responsibility and
sustainability to prioritize the long-term well-being of individuals, organizations and society.55
Trying to identify individual factors that are typical of a specific leadership style, Bass and
Avolio,56 for example, developed the rigorously validated Multifactor Leadership Questionnaire
(MLQ) scale. This delineates four key elements of transformational leadership: (1) idealized
influence, often referred to as charisma, (2) inspirational motivation, (3) intellectual stimula-
tion, and (4) individualized consideration. The Multifactor Leadership Questionnaire (MLQ)
can be administered not only to individual leaders for self-assessment but also to their supe-
riors, peers, subordinates and even external stakeholders such as clients. This comprehensive
approach forms a part of the 360-degree feedback process. The goal is to measure the strength
of each dimension as accurately as possible to identify to what extent individual leaders fulfil
the characteristics of the specific leadership style. These scales can serve as a means of compar-
ing a leader’s potential effectiveness in different contexts.
In summary, the positivist research perspective aims to establish causal relationships and
generalizable findings, typically using deductive reasoning and standardized data collection
methods. It tends to view leadership as an individual phenomenon and emphasizes observable
and measurable factors.
Much of the literature on leadership can be considered ‘pro-leadership’, in the sense that
leadership is considered as desirable, significant and good.65 Critical perspectives on leadership
challenge this basic assumption and focus on power relations that reproduce and reinforce the
dichotomies of leaders and followers.
This research tradition draws inspiration from moral philosophy and radical humanism
paradigms.66 Even though critical leadership studies have much internal diversity – just as the
other research perspectives presented above – three common characteristics can be identi-
fied.67 First, challenging certain managerial propositions like ‘someone has to be in charge’ as
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Challenging what is taken for granted is central to critical leadership. In summary, this
research perspective operates from the perspective that investigations should be conducted
with the goal of societal change.70
We have presented these three different research perspectives on leadership to illustrate that
whenever the term leadership is used, it is referring to a set of implicit theory assumptions.
Our intention has been to highlight these implicit assumptions and to stimulate a discussion
on how these theories influence our thinking about leadership practices.
All three leadership research approaches have their limitations, but combining these per-
spectives helps us to better understand the phenomenon of leadership practices in real life.
Positivist transformational research has always been a good starting point for global leaders
because it provides useful insights into what people across the world have in common.
The positivist approach tells us among other things that leaders should proactively involve
followers to make them more committed.71 But employee engagement in Sweden or in India
might mean two completely different things. What happens when proactively encouraging
employee involvement does not work in a more hierarchical environment like India?
The interpretive research provides the information necessary to understand employees’
needs and sense-making in a specific context. The research on this approach helps us under-
stand what is needed to engage employees in Sweden as opposed to engaging them in India.
Leadership always depends on the specific context, but in global leadership the context is
even more important.
Critical research goes even further by examining the broader social and ideological context
of different realities. When we look at employee engagement in Sweden or India from this
perspective, we might better understand the differences in patterns of power and domination
associated with leadership in each of these environments.
Combining these research perspectives to understand global leadership situations is a pow-
erful and effective analytical tool. Throughout this book we will consciously use this tool to
help us better understand the meaning, context and challenges of global leadership practices.
This book is divided into two parts. The chapters in Part I address the competencies and skills
required to thrive in complex global settings on one of four different levels of analysis.
We start with the assumption that leadership begins from inside and leading oneself; this
is why Chapter 2 sets out from the individual level. In this chapter we explore the concepts
of global identity, cultural intelligence, commitment to continuous learning and personal
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18 GLOBAL LEADERSHIP PRACTICES
growth, which are essential tools for adapting to the ever-evolving global landscape. We accen-
tuate the role of well-being and self-care in maintaining a healthy and resilient global identity.
In Chapter 3, we move on to the perspective of leading collaboration by looking at how
global complexity affects team collaboration. We present concrete measures and tools for
leading global teams, including the strategic use of communication media, the creation of
psychological safety and trust between team members and the use of inclusive language.
Chapter 4 looks at the challenges of leading diversity, equity and inclusion (DEI) initiatives
in organizations. Diversity management is critically reviewed and the barriers to refugee work-
force inclusion analysed. The IKEA case illustrates how multinational corporations (MNCs)
can contribute to tackling the global challenge of including refugees in local workforces.
In Chapter 5, we take the societal perspective and discuss the complexity involved in leading
sustainability transformation. Global leadership can and should play a critical role in assum-
ing responsibility, mitigating problems and finding solutions. We discuss how to respond to
contradictory yet related requirements over time: the so-called sustainability paradoxes.
In Part II of the book, we explore leadership practices in different cultural contexts. Chapter
6 introduces three different research perspectives based on cross-cultural theories that influ-
ence thinking and understanding about global leadership.
The subsequent seven chapters illustrate what these theoretical considerations mean
in practice. We show how global leaders can bridge gaps and build relationships between
diverse stakeholders by developing understanding of cultural norms, values and communi-
cation styles. To illustrate the complexity involved, each chapter is based on a detailed case
of a real-life leadership challenge taking place in a different part of the world. Each chapter
illustrates global leadership in practice and highlights relevant competencies, virtues and traits,
contexts, situations and conditions that must be considered when assuming responsibility as
a global leader.
We have chosen to present the countries in alphabetical order. In Chapter 7, Weichai, an
emerging market multinational from China, is dealing with the integration of the acquired
German multinational Linde. In Chapter 8, we learn from an Indigenous female leader in
Ecuador how to defend ancestral territory against oil exploitation by the government. Chapter
9 is about the complex, diverse and highly context-dependent faces of the IT sector in India.
Chapter 10 describes the internationalization process of a small IT company in Kazakhstan.
Chapter 11 analyses a sales team that works between their German headquarters and their
subsidiary in the Middle East and North Africa (MENA) region. Chapter 12 deals with facil-
itating a Thai-Indonesian banking integration in the culturally diverse region of Southeast
Asia. The case in Chapter 13 is about the organizational culture transformation of a mining
company in Southern Africa and the tension between Indigenous leadership philosophy and
the post-colonial legacy.
DISCUSSION POINTS
1. Please comment on the following statement of John Luiz, a professor of Business
Strategy at the University of Cape Town: ‘Doing business in South Africa requires
a level of resilience and agility unlike anywhere else. There is a saying about New York
that if you can make it there, you can make it anywhere, and, with respect, I would
challenge that and say that if you can make it in South Africa, you can make it any-
where as you will have been exposed to everything that can possibly come your way.’
How can the CEMS’ alliance take into consideration the different environments and
challenges in the 34 different schools?
2. What concrete role do you see for yourself in your local community? How important
would that be and what about your role in global projects that contribute to societal
progress?
3. Do web research on what it means to be a systems thinker. What are the systems
thinking tools research organization are using? Can they be used in corporations?
NOTES
1. Oxley & Morris (2013); UNESCO (2023).
2. Miska et al. (2020).
3. Alvesson & Spicer (2014).
4. Zaccaro (2014).
5. d’Iribarne (1989); Hall (1966).
6. Hofstede (1984).
7. Hampden-Turner & Trompenaars (1993); Trompenaars & Hampden-Turner (2011).
8. House et al. (2004).
9. Adler (2002); Bird et al. (2010); Mendenhall (2018); Tung (1987).
10. Earley & Ang (2003); Hannerz (1990); Javidan & Bowen (2013); Osland et al. (2006).
11. Mendenhall et al. (2012); Reiche et al. (2016); Reiche et al. (2020). See also Chapter 2.
12. Mendenhall et al. (2018); Mendenhall et al. (2020).
13. Zander (2020).
14. CEMS (2022, p. 6).
15. Northouse (2018).
16. Haslam et al. (2020); Rosenbach (2015); Silva (2015).
17. WEF (2023).
18. https://sdgs.un.org/2030agenda. Last accessed 20 December 2023.
19. Boonstra & Eguiguren (2023); De Woot (2005); EFMD (2022).
20. http://www.estorilconferences.org. Last accessed 20 December 2023.
21. http://www.unprme.org. Last accessed 20 December 2023.
22. http://www.ngccems.org. Last accessed 20 December 2023.
23. Mariani et al. (2022); Ordonez-Ponce et al. (2021).
24. Stott & Murphy (2021).
25. Vestergaard et al. (2020).
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