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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University. Leadership Across Cultures. The specific objectives of this chapter are: DESCRIBE the basic philosophic foundation and styles of managerial leadership

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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University


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Leadership Across Cultures Management, Colorado State University

The specific objectives of this chapter are:

DESCRIBE the basic philosophic foundation and styles of managerial leadership

EXAMINE the attitudes of European managers toward leadership practices

COMPARE and CONTRAST leadership styles in Japan with those in the United States


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Leadership Across Cultures Management, Colorado State University

The specific objectives of this chapter are:

REVIEW leadership approaches in China, the Middle East, and developing countries

EXAMINE recent, research and findings regarding leadership across cultures


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Leadership Across Cultures Management, Colorado State University

The specific objectives of this chapter are:

DISCUSS the relationship of culture clusters and leader behavior on effective leadership practices including increasing calls for more responsible global leadership


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Foundation for Leadership Management, Colorado State University

Philosophical Background: Theories X, Y, and Z

Theory X Manager

  • A manager who believes that people are basically lazy and that coercion and threats of punishment often are necessary to get them to work.


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Foundation for Leadership Management, Colorado State University

Philosophical Background: Theories X, Y, and Z

Theory X Manager

  • A manager who believes that under the right conditions people not only will work hard but will seek increased responsibility and challenge.

Theory Y Manager


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Foundation for Leadership Management, Colorado State University

Philosophical Background: Theories X, Y, and Z

Theory X Manager

  • A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.

Theory Y Manager

Theory Z Manager


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The use of work-centered behavior designed to ensure task accomplishment.

The use of work-centered behavior coupled with a protective employee centered concern.

The use of both work- or task-centered and people centered approaches to leading subordinates.

Foundation for Leadership

Leadership Behaviors and Styles

Authoritarian Leadership

Paternalistic Leadership

Participative Leadership


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Leader–Subordinate Interactions accomplishment.

Authoritarian Leader

Subordinate

Subordinate

Subordinate

One-way downward flow of information and influence from authoritarian leader to subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Leader–Subordinate Interactions accomplishment.

Paternalistic Leader

Subordinate

Subordinate

Subordinate

Continual interaction and exchange of information and influence between leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Leader–Subordinate Interactions accomplishment.

ParticipativeLeader

Subordinate

Subordinate

Subordinate

Continual interaction and exchange of information and influence between leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Likert’s Systems or Styles Leadership accomplishment.

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership


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Likert’s Systems or Styles Leadership accomplishment.

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership


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High accomplishment.

1 2 3 4 5 6 7 8 9

Concern for People/Relationships

Low

1 2 3 4 5 6 7 8 9

Low

High

Concern for Production/Task

The Managerial Grid

1,9 Management Style

Thoughtful attention to needs of people for satisfying relationships leads to a comfortable friendly organization atmosphere and work tempo

9,9 Management Style

Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect

5,5 Management Style

Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level

1,1 Management Style

Exertion of minimum effort to get required work done is appropriate to sustain organization membership

9,1 Management Style

Efficiency in operations results from arranging conditions of work in such a way that human elements interface to a minimum degree

Adapted from Figure 13–2: The Managerial Grid

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Leadership in the International Context accomplishment.

How do leaders in other countries attempt to direct or influence their subordinates?

Are their approaches similar to those used in the United States?

Research shows that there are both similarities and differences – most international research on leadership has focused on Europe, East Asia, the Middle East, and developing countries such as India, Peru, Chile, and Argentina.


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Leadership in the International Context accomplishment.

Attitudes of European Managers Toward Leadership Practices

European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

Does the leader believe that employees prefer to be directed and have little ambition? (Theory X)

OR

Does the leader believe that characteristics such as initiative can be acquired by most people regardless of their inborn traits and abilities? (Theory Y)

Capacity for Leadership and Initiative


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Leadership in the International Context accomplishment.

Attitudes of European Managers Toward Leadership Practices

Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

Does the leader believe that detailed, complete instructions should be given to subordinates and that subordinates need only this information to do their jobs?

OR

Does the leader believe that general directions are sufficient and that subordinates can use their initiative in working out the details?

Capacity for Leadership and Initiative

Sharing Information

and Objectives


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Leadership in the International Context accomplishment.

Attitudes of European Managers Toward Leadership Practices

Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

Does the leader support participative leadership practices?

Capacity for Leadership and Initiative

Sharing Information

and Objectives

Participation


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Leadership in the International Context accomplishment.

Attitudes of European Managers Toward Leadership Practices

Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

Does the leader believe that the most effective way to control employees is through rewards and punishment?

OR

Does the leader believe that employees respond best to internally generated control?

Capacity for Leadership and Initiative

Sharing Information

and Objectives

Participation

Internal Control


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Clusters of Countries in the Haire, Ghiselli, and Porter Study

Adapted from Table 13–3: Clusters of Countries in the Haire, Ghiselli, and Porter Study


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Leadership in the International Context Study

Attitudes of European Managers Toward Leadership Practices

The Role of Level, Size, and Age on European Managers’ Attitudes Toward Leadership

  • Higher-level managers tend to express more democratic values than lower-level managers in some countries – in other countries, the opposite was true

  • Company size tends to influence the degree of participative-autocratic attitudes

  • Younger managers were more likely to have democratic values when it came to capacity for leadership and initiative and to sharing information and objectives


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Leadership in the International Context Study

Attitudes of European Managers Toward Leadership Practices

Conclusion About European Leadership Practices

  • Most European managers tend to reflect more participative and democratic attitudes – but not in every country

  • Organizational level, company size, and age seem to greatly influence attitudes toward leadership

  • Many of the young people in this study now are middle-aged – European managers in general are highly likely to be more participative than their older counterparts of the 1960s and 1970s


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Leadership in the International Context Study

Japanese Leadership Approaches

  • Japan is well known for its paternalistic approach to leadership

  • Japanese culture promotes a high safety or security need, which is present among home country–based employees as well as MNC expatriates

  • Japanese managers have much greater belief in the capacity of subordinates for leadership and initiative than do managers in most other countries – only managers in Anglo-American countries had stronger feelings in this area


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Leadership in the International Context Study

Differences Between Japanese and U.S. Leadership Styles

  • Except for internal control, large U.S. firms tend to be more democratic than small ones – the profile is quite different in Japan

  • Younger U.S. managers appear to express more democratic attitudes than their older counterparts on all four leadership dimensions

  • Japanese and U.S. managers have a basically different philosophy of managing people – Ouchi’s Theory Z combines Japanese and U.S. assumptions and approachesproviding a comparison of seven key characteristics


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Japanese vs. U.S. Leadership Styles Study

Adapted from Table 13–4: Japanese vs. U.S. Leadership Styles


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Japanese vs. U.S. Leadership Styles Study

Adapted from Table 13–4: Japanese vs. U.S. Leadership Styles


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Leadership in the International Context Study

Differences Between Japanese and U.S. Leadership Styles

Another difference between Japanese and U.S. leadership styles is how senior-level managers process information and learn

  • Variety Amplification

    Japanese executives are taught and tend to use variety amplification – the creation of uncertainty and the analysis of many alternatives regarding future action

  • Variety Reduction

    U.S. executives are taught and tend to use variety reduction – the limiting of uncertainty and the focusing of action on a limited number of alternatives


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80 Study

50

0

Productivity

1 2 3 4 5 6 7

Sessions

Productivity of Japanese Groups with High-Achievement Motivation under Different Leadership Styles

——PM Leadership Style 9,9

(high task, high people)

—— M Leadership Style 1,9

(low task, high people)

—— P Leadership Style 9,1

(high task, low people)

—— PM Leadership Style 1,1

(low task, low people)

Adapted from Figure 13–3: Productivity of Japanese Groups with High-Achievement Motivation under Different Leadership Styles

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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80 Study

50

25

0

Productivity

1 2 3 4 5 6 7

Sessions

Productivity of Japanese Groups with Low-Achievement Motivation under Different Leadership Styles

—— P Leadership Style 9,1

(high task, low people)

——PM Leadership Style 9,9

(high task, high people)

—— PM Leadership Style 1,1

(low task, low people)

—— M Leadership Style 1,9

(low task, high people)

Adapted from Figure 13–4: Productivity of Japanese Groups with Low-Achievement Motivation under Different Leadership Styles

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Leadership in the International Context Study

Leadership in China

  • Importance that the respondents in one study assigned to three areas:

Individualism

Measured by importance of self sufficiency and personal accomplishments

Measured by willingness to subordinate personal goals to those of the work group with an emphasis on sharing and group harmony

Collectivism

Measured by the importance of societal harmony, virtuous interpersonal behavior, and personal and interpersonal harmony

Confucianism


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Leadership in the International Context Study

Leadership in China

  • The “New Generation” group scored significantly higher on individualism than did the current and older generation groups

  • They also scored significantly lower than the other two groups on collectivism and Confucianism

  • These values appear to reflect the period of relative openness and freedom, often called the “Social Reform Era,” in which these new managers grew up

  • They have had greater exposure to Western societal influences may result in leadership styles similar to those of Western managers


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Leadership in the International Context Study

Leadership in the Middle East

  • There may be much greater similarity between Middle Eastern leadership styles and those of Western countries

  • Western management practices are evident in the Arabian Gulf region due to close business ties between the West and this oil-rich area as well as the increasing educational attainment, often in Western universities, of Middle Eastern managers

  • Organizational culture, level of technology, level of education, and management responsibility were good predictors of decision-making styles in the United Arab Emirates

  • There is a tendency toward participative leadership styles among young Arab middle managers, as well as among highly educated managers of all ages


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Differences in Middle Eastern and Western Management Study

Adapted from Table 13–5: Differences in Middle Eastern and Western Management


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Differences in Middle Eastern and Western Management Study

Adapted from Table 13–5: Differences in Middle Eastern and Western Management


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Leadership in the International Context Study

Leadership Approaches in Developing Countries

  • Managerial attitudes in India are similar to Anglo-Americans toward capacity for leadership and initiative, participation, and internal control, but different in sharing information and objectives

  • Leadership styles in Peru may be much closer to those in the United States than previously assumed

  • Developing countries may be moving toward a more participative leadership style


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Recent Findings and Insights About Leadership Study

Transformational, Transactional, and Charismatic Leadership

Transformational leaders are characterized by four interrelated factors:

Idealized Influence

  • Transformational leaders are a source of charisma and enjoy the admiration of their followers.

  • They enhance pride, loyalty, and confidence in their people, and align these followers by providing a common purpose or vision that the latter willingly accept


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Recent Findings and Insights About Leadership Study

Transformational, Transactional, and Charismatic Leadership

Transformational leaders are characterized by four interrelated factors:

Idealized Influence

  • These leaders are extremely effective in articulating their vision, mission, and beliefs in clear-cut ways, thus providing an easy-to understand sense of purpose regarding what needs to be done

Inspirational Motivation


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Recent Findings and Insights About Leadership Study

Transformational, Transactional, and Charismatic Leadership

Transformational leaders are characterized by four interrelated factors:

Idealized Influence

  • Transformational leaders are able to get their followers to question old paradigms and to accept new views of the world regarding how things now need to be done

Inspirational Motivation

Intellectual Stimulation


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Recent Findings and Insights About Leadership Study

Transformational, Transactional, and Charismatic Leadership

Transformational leaders are characterized by four interrelated factors:

Idealized Influence

  • These leaders are able to diagnose and elevate the needs of each of their followers through individualized consideration, thus furthering the development of these people

Inspirational Motivation

Intellectual Stimulation

Individualized Consideration


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Recent Findings and Insights About Leadership Study

Transformational, Transactional, and Charismatic Leadership

Four other types of leaders are less effective than transformational leaders

Clarifies what needs to be done, provides psychic and material rewards to those complying with his or her directives

Contingent Reward (CR) Leader

Monitors follower performance and takes corrective action when deviations from standards occurs

Active Management-by-Exception (MBE-A) Leader

Passive Management-by-Exception (MBE-P) Leader

Takes action or intervenes in situations only when standards are not met

Laissez-Faire (LF) Leader

Avoids intervening or accepting responsibility for follower actions


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Effective Study

Active

Passive

Effective

An Optimal Profile of Universal Leadership Behaviors

I’s–transformational

CR–Contingent Reward

MBE-A–Active Management-by-Exception

MBE-P–Active Management-by-Exception

LF–Laissez-Faire

I’s

CR

MBE-A

MBE-P

Frequency

LF

Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors

McGraw-Hill/Irwin

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.


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Qualities Most Demanded in Advertisements for European Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives


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Qualities Most Demanded in Advertisements for European Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives


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Recent Findings and Insights About Leadership Executives

Culture Clusters and Leader Effectiveness

Important attributes that form a concept of outstanding business leader

  • Anglo mangers identify performance orientation, an inspirational style, having a vision, being a team integrator, and being decisive as being the top five attributes

  • Nordic managers ranked these same five attributes as most important but not in same order

  • Rankings of clusters in the North/West European region were fairly similar

  • Substantial differences exist within and between the South/East European countries, countries from Eastern Europe, and Russia and Georgia


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Rankings of the Most Important Leadership Attributes Executives

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster


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Rankings of the Most Important Leadership Attributes Executives

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster


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Recent Findings and Insights About Leadership Executives

Leader Behavior, Leader Effectiveness, and Leading Teams

  • One of the keys to successful global leadership is knowing what style and behavior works best in a given culture and adapting appropriately

    • In affective cultures, such as the United States, leaders tend to exhibit their emotions

    • In neutral cultures, such as Japan and China, leaders do not tend to show their emotions


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Leadership Tips for Doing Business in ExecutivesAffective and Neutral Cultures


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Leadership Tips for Doing Business in ExecutivesAffective and Neutral Cultures


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Leadership Tips for Doing Business in ExecutivesAffective and Neutral Cultures


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Charismatic/Value-Based leadership captures the ability of leaders to inspire, motivate, and encourage high performance outcomes from others based on a foundation of core values.

Charismatic/Value-Based


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Team-Oriented leadership places emphasis on effective team building and implementation of a common goal among team members.

Charismatic/Value-Based

Team-Oriented


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Participative leadership reflects the extent to which leaders involve others in decisions and their implementation.

Charismatic/Value-Based

Team-Oriented

Participative


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Humane-Oriented leadership comprises supportive and considerate leadership.

Charismatic/Value-Based

Team-Oriented

Team-Oriented

Participative

Humane-Oriented


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Autonomous leadership refers to independent and individualistic leadership behaviors.

Charismatic/Value-Based

Team-Oriented

Participative

Humane-Oriented

Autonomous


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Recent Findings and Insights About Leadership Executives

Cross-Cultural Leadership: Insights from the GLOBE Study

  • Self-Protective leadership “focuses on ensuring the safety and security of the individual and group through status-enhancement and face-saving.”

Charismatic/Value-Based

Team-Oriented

Participative

Humane-Oriented

Humane-Oriented

Autonomous

Self-Protective


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Recent Findings and Insights About Leadership Executives

Ethically Responsible Global Leadership

Linking leadership and corporate responsibility through “responsible global leadership”

  • Values Based Leadership

  • Ethical Decision Making

  • Quality Stakeholder Relationships

According to this view, global leadership must be based on core values and credos that reflect principled business and leadership practices, high levels of ethical and moral behavior, and a set of shared ideals that advance organizational and societal well-being.


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Recent Findings and Insights About Leadership Executives

Entrepreneurial Leadership and Mindset

  • Promising start-ups fail for many reasons

    • Lack of capital, absence of clear goals and objectives, and failure to accurately assess market demand and competition

    • Poor personal leadership ability of the entrepreneurial CEO

  • For international new ventures, these factors are significantly complicated by

    • Differences in cultures, national political and economic systems, geographic distance, and shipping, tax, and regulatory costs.


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Recent Findings and Insights About Leadership Executives

Entrepreneurial Leadership and Mindset

  • Appear to be more creative and innovative than non-entrepreneurs

  • Tend to break the rules and do not need structure, support, or an organization to guide their thinking

  • See things differently and add to a product, system, or idea value that amounts to more than an adaptation or linear change

  • Are more willing to take personal and business risks, and to do so in visible and salient ways

Key personal characteristics of entrepreneurs and strong leaders


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Recent Findings and Insights About Leadership Executives

Entrepreneurial Leadership and Mindset

  • They are opportunity seekers and are comfortable with failure, rebounding quickly to pursue another opportunity

  • They are characterized as adventurous, ambitious, energetic, domineering, and self-confident

Key personal characteristics of entrepreneurs and strong leaders

Entrepreneurial leaders operating internationally must possess cultural sensitivity, international vision, and global mindset to effectively lead their venture through challenges of doing business in other countries.


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