Leading Internationally

MMBA 6520-6 Leading People US Abroad

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There are many factors that an organization must consider prior to expanding internationally. Having an understanding of the cultural hindrances, laws unique to the territory, political positioning, available resources and economic factors must all be considered when an organization seeks to expand internationally (Lyerly, 2009). Understanding the importance of how each of these factors could contribute to either the success or failure of an organization will determine if the expansion is a good or bad idea for the company. Additionally, Lyerly states that a company must also have the necessary resources and assets needed to expand. Such assets include personnel, societal knowledge and understanding, capital – internal and external funding, and adequate locally grown or imported resources to build the necessary facilities and products (Lyerly, 2009).

Leadership is another important factor that must be considered in expansion. The skills needed to be a successful leader in one’s country of origin are not necessarily the same skills a leader needs to be successful abroad (Javidan, Teagarden, & Bowen, 2010). Lyerly states that it is essential to select the appropriate executives who are willing to convey a consistent and desirable message to lead the charge toward success (Lyerly, 2009). Caligiuri and Tarique indicate that there is a link between effective global leaders and certain personality traits. “The Big Five” personality factors of (1) extroversion, (2) agreeableness, (3) conscientiousness, (4) emotional stability (agreeableness), and (5) openness or intellect have been found to be consistent as a leadership indicator across time, context, and culture (Buss, 1991).

Though expansion overseas can be beneficial to an organization, it can also be a downfall for the organization if not executed correctly. Proper research and effective communication across all platforms of an organization seeking to...