Innovation and Global Leadership: A Reciprocal Relationship

Introduction

In one regard, global leadership and innovation would seem to go hand in hand. Indeed, the proliferation of global corporate orientation is itself a condition produced by the incredible impact of certain innovations. As Kanter (2006) indicates, certain periods of rapid innovation have altered the landscape for global leadership. Kanter observes that "the first was the dawn of the global information age in the late 1970s and the early 1980s, an era that introduced new industries and threatened to topple old ones" (p. 74).

This observation reveals that innovation is frequently disruptive and progressive all at once. It also suggests that in a globalizing context, judicious use of innovative strategies may be necessary for survival. This discussion demonstrates that while effective innovation and global leadership are not inherently dependent upon one another, they do share a reciprocal relationship.

Global Leader vs. Effective Innovator

To an extent, the quality of being an effective innovator is not inherently a part of serving in a global leadership role. Many international leadership scenarios may call for stewardship within a context and culture that is already fairly entrenched. In other words, being dispatched to a new locale to manage or administrate may require an individual to provide steady leadership while also respecting and protecting the features of that working culture. In this regard, functioning as a steady and stable global leader may far outstrip the importance of forging new products, services, processes, or operational strategies. Innovation is likely to take a back seat as the effective global leader simply works to establish control, order, and sustainability.

However, there are instances in which innovation is exactly the force that drives an organization to success in a new global context. Achieving a singular competitive edge within a new marketplace may be critical to long-term survival. This is why the best global leaders are those who deconstruct the barrier between the innovative and the operationally normative. According to Govindarajan & Trimble (2010), "an innovation initiative must be executed by a partnership that somehow bridges the hostilities — a partnership between a dedicated team and what we call the performance engine, the unit responsible for sustaining excellence in ongoing operations" (p. 77).

This means that while a good global leader need not inherently be an effective innovator, a balance between these skills is more likely to produce harmony within an organization. The ability to orient an organization toward innovation does require strong and respected leadership. As Govindarajan & Trimble indicate, this leadership may be the most important force in bringing symbiosis between the innovative dimensions of an organization and those employees who must use these innovations in their everyday work.

Conclusion

These insights are important because the global marketplace demands that the best companies remain aggressive in distinguishing themselves from the competition. The deconstruction of trade barriers has created a far more saturated and densely populated marketplace, imposing certain survival demands on global leaders. According to Kim & Mauborgne (2004), the global marketplace may sometimes create considerable pressure for companies to maintain innovation, and complacency can be extremely destructive. As Kim & Mauborgne report, "companies try to outperform their rivals in order to grab a greater share of existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced" (p. 77). It therefore becomes incumbent upon the visionary global leader to find new and less crowded space in which to operate. Innovation plays a central role in this endeavor.

Ultimately, this discussion shows that while being an effective innovator is not always required in global leadership, it may significantly improve an organization's chances of survival. As Prahalad (2010) contributes, "if you look for ways to develop next practices, opportunities abound. In fact, executives are constrained not by resources but by their imagination" (p. 32). As the discussion here shows, this imagination may be critical to long-term success in a globalizing marketplace.

Dyer, J.H., Gregersen, H.B., & Christensen, C.M. (2009). The Innovator's DNA. Harvard Business Review.

Govindarajan, V. & Trimble, C. (2010). Stop the Innovation Wars. Harvard Business Review.

Kanter, R.M. (2006). The Classic Traps. Harvard Business Review.

Kim, W.C. & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review.

Prahalad, C.K. (2010). Best Practices Get You Only So Far. Harvard Business Review.

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