Strategic Leadership

Abstract: Strategic leaders are being challenged by stakeholder demands that organizations meet triple bottom line performance measures. Nonetheless, there is a paucity of empirical research on how strategic leaders’ values and leadership styles are related to such measures. We describe values and established and evolving leadership styles and review the results of empirical studies investigating their relationship with organizational performance. Gaps in our knowledge of such relationships are identified and suggestions for future research are provided. A continuum of leadership styles, from transactional through responsible, is developed using the dimensions of stakeholder salience and economic, social, and environmental performance outcomes.

DOI: https://doi.org/10.1177/1548051812471724 

Abstract: Generating and implementing innovative ideas is a key organizational effort to achieve superior performance and secure competitive advantages. Accordingly, the influence of strategic leaders on organizational innovation is increasingly drawing research attention. In this study, we review and synthesize research on how strategic leaders (chief executive officers, top management teams, and boards of directors) influence innovation and propose a framework to guide future research on this important topic. We explain how existing theories rely on discretional or architectural mechanisms to explain strategic leaders’ influence on innovation and review how current studies relate strategic leaders to the specific stages of the innovation process. We also discuss the role of the internal and external environment in moderating these relationships and provide an overview and criticism of theoretical and methodological issues. Overall, we discuss the most relevant findings of the field, analyze how specific suggestions drawn from our framework can contribute to a comprehensive understanding of the influence of strategic leaders on innovation, and propose multiple research opportunities.

DOI: https://doi.org/10.1111/ijmr.12246 

Abstract: This article explores the nature of strategic leadership and assesses whether a framework can be established to map the dimensions of strategic leadership. In particular it establishes a model which outlines both the organizational abilities and the individual characteristics of strategic leaders.

DOI: https://doi.org/10.1080/1363243042000172804 

From the Publisher: This contributed volume provides the knowledge portfolio for the Strategic Management field. Strategic Management has experienced significant growth as a research discipline and builds on strong theoretical and empirical research to provide valuable knowledge for managerial practice. The book is designed to capture the rich breadth and depth of knowledge in the field as well as insightful examinations of critical topics for the future and opportunities for future research (50% of the focus). Such information and knowledge are critical for all current and future scholars in the field and for thoughtful executives as well. 

WorldCat: https://search.worldcat.org/title/1242018445 

Abstract: The twenty-first century was predicted to bring a highly challenging competitive landscape and it materialized in the first decade of the new century. Scholars and practitioners alike argued that managers would have to develop and use unique capabilities to be successful strategic leaders in this challenging competitive landscape. For example, it was predicted that they would need to develop and communicate an effective vision for the organization. They would need to build and continuously develop dynamic core capabilities and also to develop and effectively use highly capable human capital. They would need to emphasize innovation, build effective organizational cultures and engage in ethical practices. Analysis of the leadership exhibited by many managers in the first decade of the twenty-first century, suggests that there was a major failure of strategic leadership. Of course, that decade was one of significant turbulence and change, with the terrorist attacks that occurred in September 2001 and two major economic downturns. However, many argue that at least the second downturn was the result of poor strategic leadership in many sectors of the economy, especially in the financial services industry. There was a significant amount of hubris and greed exhibited by many strategic leaders. Undoubtedly, the global economy has changed in major and irrevocable ways with large emerging economy countries becoming major actors on the worldwide stage. Furthermore, new economic growth is largely spurred by innovation and especially entrepreneurial behavior in the creation of new businesses. Strategic leaders will have to manage their resources wisely and effectively, build human and social capital and clearly act in ethical ways. Effective strategic leaders have to operate under conditions of sometimes extreme uncertainty and view volatile environments as providing the potential to identify and exploit entrepreneurial opportunities in these contexts. Without highly effective strategic leaders, organizations of all types are likely doomed to failure. However, those with the most effective strategic leaders will be much more successful in the competitive landscape of the twenty-first century.

Available from: https://ssrn.com/abstract=1995786 

Abstract: A new type of strategic leadership is required to help firms successfully navigate the dynamic and uncertain environment in which they compete today. The strategic leadership needed in 21st century firms is involved with building company resources and capabilities with an emphasis on intangible human capital and social capital. Human capital is the firm's repository of valuable knowledge and skills; social capital provides access to critical resources. Both are significant contributors to achievement of a competitive advantage. Leaders must effectively manage these important resources for the firm. Management of these resources involves evaluating current resource stocks and making changes such as adding (e.g., developing or acquiring externally) and deleting (e.g., layoffs) human resources and external relationships. To create value, the resources must be configured to develop capabilities that can be leveraged in ways to create competitive advantages. The dimension of strategic leadership we describe here is called effectuation. This new type of approach to leadership has important implications for management scholars and practitioners.

DOI: https://doi.org/10.1177/107179190200900101 

Abstract: For decades, business executives have concentrated on the art and techniques of management. But in today's competitive times, more is required. Successful executives must be leaders as well.

DOI: https://doi.org/10.1108/eb038966 

Abstract: Effective strategic leadership is considered as a major ingredient for the successful performance of any organization operating in the ever dynamic and complex environment of the 21st century. In the context of information uncertainty and resource scarcity, strategic leadership is required to confront the reality of environmental turbulence and a continuous need for appropriate organizational change in order to achieve performance goals. Most of the conceptual and empirical studies have shown that strategic leadership actions significantly influence performance. Despite its importance, studies have demonstrated that the influence of strategic leadership on organizational performance is contingent upon situational constraints or random effects. To date, very little empirical research has analyzed the direct and indirect relationship between strategic leadership, external environment, organizational change and performance. This paper seeks to unearth this research gap by critically reviewing relevant conceptual and empirical literature to bring out the possibility that the external environment and organizational change could influence the relationship between strategic leadership and organizational performance. The paper advances the emerging postulations which anchor a conclusion that the direct effect of strategic leadership on performance is contested and hence inconclusive due to possible moderating and mediating influence of the external environment and organizational change respectively. It is hoped that the paper’s postulations would guide empirical research in various contexts to hasten addressing of the extant knowledge gaps.

DOI: http://dx.doi.org/10.19044/esj.2018.v14n35p124 

Abstract: Wealth creation in entrepreneurial and established organizations is a complex, challenging task in today's global and technologically advancing business environment. Strategic leadership enhances the wealth-creation process in entrepreneurial and established organizations, and leads to above-average returns. On the other hand, managerial leadership will likely lead to average returns at best, but is most likely to achieve below-average returns and destroy wealth. Organizations led by visionaries who are not properly supported by strong managerial leadership may destroy wealth even more quickly than organizations led by managerial leaders. This article defines strategic leadership, differentiates among the concepts of strategic, visionary, and managerial leadership, and examines the differential links between the three types of leadership and wealth creation. When organizations restore strategic control and allow the development of a critical mass of strategic leaders, these leaders will be a source of above-average returns. The result will be wealth creation for the employees, customers, suppliers, and shareholders of entrepreneurial and established organizations.

DOI: https://doi.org/10.5465/ame.2001.4251395 

Abstract: We attempt to bring clarity to the concept of strategic leadership and guide its development by reviewing and synthesizing the existing management literature on how top managers and board directors influence organizations. We propose a new definition of strategic leadership and offer a framework organized around the essential questions of what strategic leadership is, what strategic leaders do, why they do it, and how they do it. To answer these questions, we organize our review around the eight functions strategic leaders serve, the key attributes of strategic leaders, the theories scholars have used to relate these functions and attributes to outcomes, contextual factors, and the organizational outcomes that strategic leaders affect. We identify how strategic leadership research is concentrated in five streams that rarely interact with each other, and offer suggestions for connecting these streams. Our review provides a big picture of what is known about individuals at the top levels of organizations and highlights the key areas where future investigation is essential.

DOI: https://doi.org/10.1016/j.leaqua.2019.101353 

Abstract: This paper examines the phenomenon of strategic leadership of organizations, and presents a taxonomy through which it can be studied. The taxonomy is developed empirically using data from 27 business cases. Four strategic leadership patterns are identified through facet analysis using the smallest space analysis technique. These patterns labeled, (a) entrepreneurial, (b) bureaucratic, (c) political, and (d) professional, are discussed. Suggestions for the development of top management teams, decision-making support systems, and further development of the taxonomy are made.

DOI: https://doi.org/10.1002/smj.4250100706 

Abstract: The storied British banker and financier Nathan Rothschild noted that great fortunes are made when cannonballs fall in the harbor, not when violins play in the ballroom. Rothschild understood that the more unpredictable the environment, the greater the opportunity—if you have the leadership skills to capitalize on it. Through research at the Wharton School and at our consulting firm involving more than 20,000 executives to date, we have identified six skills that, when mastered and used in concert, allow leaders to think strategically and navigate the unknown effectively: the abilities to anticipate, challenge, interpret, decide, align, and learn. Each has received attention in the leadership literature, but usually in isolation and seldom in the special context of high stakes and deep uncertainty that can make or break both companies and careers. This article describes the six skills in detail.

Available from: https://execed.hkubs.hku.hk/wp-content/uploads/2023/04/Harvard-Business-Review-Strategic-Leadership-The-Essential-Skills.pdf 

Abstract: Strategic leadership is a rich yet fragmented area of research. To address this gap, this article aims to consolidate and provide a state-of-the-art overview of strategic leadership research. To achieve its aim, this article conducts a bibliometric-temporal analysis of strategic leadership using bibliometric data of relevant literature available through Scopus, the largest scientific database for review endeavors. Using 6024 documents of strategic leadership research identified and retrieved from Scopus, this article reveals the performance (e.g., year, article, journal, author, country) and science (e.g., topics, themes) of strategic leadership research across four decades. Noteworthily, strategic leadership is inherently grounded in digital transformation, innovation, and the upper echelons, with a growing footprint that spans across basic management and organizational activities; competitive advantage capabilities and strategies; the multiple roles of managers; the leadership, innovative, and strategic functions of management and upper echelons, including those specific to top management teams; the strategic leader; strategic choices; strategic teams; as well as strategic succession. More importantly, the review herein this article, to the best knowledge of the authors, represents the largest consolidation effort and review of strategic leadership research using scientific methods adopted from information science in the form of a bibliometric-temporal analysis, and thus, providing a state of the art of strategic leadership.

DOI: https://doi.org/10.1016/j.jbusres.2023.113676 

Abstract: The strategic leadership of ethical behavior in business can no longer be ignored. Executives must accept the fact that the moral impact of their leadership presence and behaviors will rarely, if ever, be neutral. In the leadership capacity, executives have great power to shift the ethics mindfulness of organizational members in positive as well as negative directions. Rather than being left to chance, this power to serve as ethics leaders must be used to establish a social context within which positive self-regulation of ethical behavior becomes a clear and compelling organizational norm and in which people act ethically as a matter of routine. This article frames the responsibility for strategic leadership of ethical behavior on three premises: (1) It must be done—a stakeholder analysis of the total costs of ethical failures confirms the urgency for ethics change; (2) It can be done—exemplars show that a compelling majority of an organization's membership can be influenced to make ethical choices; (3) It is sustainable—integrity programs help build and confirm corporate cultures in which principled actions and ethics norms predominate.

DOI: https://doi.org/10.5465/ame.2004.13837425