Responsible Leadership for Multinational Enterprises in Bottom of Pyramid Countries: The Knowledge of Local Managers |
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Authors: | Email author" target="_blank">Ron?BergerEmail author Chong?Ju?Choi Jai?Boem?Kim |
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Institution: | (1) School of Management and Governance, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands;(2) Ashridge Business School, Berkhamsted, Herts., UK;(3) C21st Investments Limited, Beijing, China |
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Abstract: | The gulf between multinational enterprises’ focus on high income countries and the reality of 80% of the world living in developing,
bottom of pyramid (Hahn, J Bus Ethics 84:313–324, 2009) economies could magnify the anti-globalisation movement and political backlashes in the twenty-first century. The global
financial crisis of 2008 and 2009 has increased such social tensions throughout the world and creates greater challenges for,
responsible leadership. In this conceptual article, the authors analyse the value and identity of local managers, and the
liability of foreignness caused by over-reliance on expatriate managers and under-reliance on local managers in bottom of
pyramid countries (Hahn, 2009). It is argued that multinational enterprises need to assess local managers’ knowledge and contributions as having not only
operational and market value, but also institutional value, such as access to local knowledge and local social capital; such
a holistic approach will ensure fairer, equal treatment of all managers in the multinational enterprise. Responsible leadership
in the twenty-first century requires a greater appreciation of local managers’ institutional value and the overcoming of any
psychological distance towards local managers of bottom of pyramid countries. |
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Keywords: | |
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