Multicultural leaders from emerging markets: transforming international acquisitions and corporate social responsibility

Abstract

PurposeThe purpose of this paper is to explore the influence and advantages of leadership multiculturalism on global strategy development through cross-border mergers and acquisitions (CBA) and corporate social responsibility (CSR) from emerging market multinational companies (EMNCs) expanding into emerged markets. The key contribution of asymmetric multiculturalism is a novel finding based on inductive research. We fill a gap by further linking business leader characteristics and corporate strategic actions and examining how multicultural business leaders from emerging markets can be highly effective at CBA and CSR.Design/methodology/approachThe paper draws on in-depth interviews, observations and documentary evidence analyzed with iterative coding, construct definition and thematic development to understand how leadership multiculturalism affects CBA and CSR in an EMNC over time.FindingsThe new construct of leadership asymmetric multiculturalism describes strategic advantages accruing to leaders from developing markets who are culturally fluent in both emerging and emerged market milieus. The construct contributes to emergent research on the rise of multicultural leaders and their strategic advantages and delineates a pathway toward identifying advantages of emerging over emerged market business leaders.Research limitations/implicationsThe research addresses specific CBA and CSR strategies within one emerging market region and EMNC. Future research should further articulate and validate the key construct of asymmetric multiculturalism, further examine its sources, draw more explicit comparisons with data from emerged market leaders, and explore the applicability of these findings to strategic actions and advantages in both emerging and emerged markets.Practical implicationsEmerging market corporate leaders should identify and develop pertinent aspects of their own asymmetric multiculturalism in enacting CBA and CSR strategy with respect to EMNCs and firms from developed markets. Emerged market leaders should become more aware of and cultivate their own multiculturalism.Social implicationsAsymmetric multiculturalism can be accompanied by heightened awareness of global citizenship — including codes of ethics, environmental challenges, community outreach and fair labor practices — which, in tandem with CBA, can strengthen emerging market firms’ performance and reinforce their global stature and reputation.Originality/valueAsymmetric multiculturalism is a new explanatory construct in the sociological, economic and management disciplines. Emerging markets corporate leaders utilize their multicultural competence to accelerate global CBA and CSR activity and advance strategic opportunities for their firms. The identification of advantages deriving from emerging market leadership capabilities is an unusual finding given the more typical emphasis on the privileges of emerged market leaders and firms.

Comprehending Human Economic Behavior Through a Multicultural Lens: Examining the Concepts of Homo Economicus and Islamicus

“…In addition, an overly Islamocentric approach risks discounting the cultural and value diversity within Muslim societies. This study aims to provide a multicultural understanding of human economic behavior, based on the premise that prevailing economic concepts and theories have been dominated by modern Western paradigms (Park & Wallace, 2021). To overcome the limitations of a single vantage point, the research examines the key concepts of economic behavior in Western and Islamic intellectual traditions -homo economicus and homo islamicus.…”

Navigating the digital revolution and crisis times: humanitarian and innovation-inspired leadership through the pandemic

“…The previously mentioned new research direction examining efficacy in liability (Zhou and Guill en, 2015) has clarified a research gap and a need for research examining the leadership and competitive strengthsrather than the downsidesof emerging markets firms (Park and Wallace, 2021). This paper addresses that gap by examining the strategies of an emerging markets logistics firm, Agility, in fulfilling the aforementioned vision and mission (Figure 1).…”

“…The author has spent nine years in ongoing immersive research in the GCC/MENA region. During Agility's continued expansion, the author has been in contact with management in The digital revolution and crisis times locations such as Kuwait, Singapore and the US as part of a series of unfolding interviews in understanding first how such an emerging markets firm launches an international acquisitions program (Park, 2015), transforms itself into a global player through the international acquisitions program (Park et al, 2018), interweaves a global social responsibility program alongside the global cross-border acquisitions outreach , while also developing innovation and ambidexterity , handling institutional complexities (Park, 2019b) and drawing on multicultural leadership strengths and proficiencies (Park and Wallace, 2021). The most recent piece of the puzzle, addressed in the present article, is in further analyzing the strengths and proficiencies of an emerging markets firm, particularly around succeeding during the pandemic.…”