Cosmopolitan Leadership

RUNNING HEAD: A NEW THEORY OF LEADERSHIP1

A New Theory of Leadership:Cosmopolitan Leadership: A Model for Virtual

Corporations

Donna L. Zeller

A NEW THEORY OF LEADERSHIP 2

A New Theory of Leadership: Cosmopolitan Leadership: A Model for

Virtual Corporations

Virtual corporations may be built on a network of companies

that temporarily merge to meet the immediate demands for a

service or product; or to satisfy start-up requirements for a new

business. Or, the virtual corporation may provide a permanent

point of operations; a fact that is becoming more common. In

essence, “the virtual economy is a great leveler”; it allows any

size business to compete in the global market (Czerniawska &

Potter, 2001, p. 35). More and more, the traditional brick and

mortar office structure is being replaced by cloud technology

that links a wide array of organizational factors; ranging from

leadership and knowledge to business processes and manufacturing

functions from all corners of the world.

Though virtual corporations are growing in numbers; much of

the current leadership research focuses on what is needed to make

virtual teams successful; not on why a virtual venture did not

succeed. Generally, the lack of business success of a virtual

venture is attributed to various reasons; such as communication


and mismatched strategies. In addition, insufficient

organizational leadership is considered to be a contributing

factor to failures. In this case, many current leadership

practices are based on traits and skills or the roles of leaders

and followers that may be interpreted differently in the virtual

world.

Hence, the Cosmopolitan Leadership Theory will provide a

framework for leadership in virtual corporations. This version

of the theory will rely on the following definition of a virtual

corporation: a “network of companies, suppliers, customers, even

erstwhile rivals linked by information technology to share

skills, costs, and access to one another’s markets. It may or

may not have a central office or a permanent strategic mission;

most definitely, it will have no hierarchy and no vertical

integration” and will likely operate without boundaries

(Businessweek Archives, 1993).

Explanation of the Theory

Theoretical Background

Effective leadership, as defined by Northouse (2013), “is a

process whereby an individual influences a group of individuals


to achieve a common goal” (p. 5). On the other hand, the

perception of the effectiveness of leadership can change quickly.

That is, the perception tends to be subjective. This

subjectivity is further defined by the context. To complicate

matters, the acceptable standard of effectiveness can change over

a period of time and may be dependent on a variety of internal

and external factors. Therefore, the ideology of effective

leadership in one venue or situation might be perceived as

ineffective in the next.

Some prominent leadership theories place the ideals of

‘people-oriented skills’ at the top of the list. While in

others, the debate of nature vs. nurture skills is considered to

be essential to theoretical explanations. Plus, core leadership

skills, strategy, action, and results, are identified as the

foundation of effective leadership; while adaptive leadership

skills are the intangible qualities. For some leaders, adaptive

skills appear to be natural; for others, they have to be learned.

For example, emotional intelligence, the skill that allows us to

be aware of and manage our own emotions, helps us to be aware of

the emotions of others. Organizational justice is an inclusive


approach to integrating what others are thinking, what they want

to hear, and recognizing that they want the facts heard with the

truth. A leader with character will have integrity, credibility,

and will value differences. In addition, development recognizes

the benefits of lifelong learning and the importance of giving

others the opportunity to grow and acquire new skills (Bradberry

& Greaves, 2012).

Regardless, the question remains, are the leadership skills,

traits, and roles applicable in an organization where business is

carried out in a virtual, global environment? For one, “today’s

employee is not a ‘soldier’ who will stand for the command-and-

control environment” of yesteryear. Labor can flow “freely

around the world as globalization and technology permit virtual

workers to seek opportunities anywhere” (McLennan, 2008, p. 247).

Through technology, corporations will have “thousands of

independent, empowered, and highly specialized office nodes that

will connect to each other in a peer to peer network”, dispersing

management globally to tap local talent that can “react to

customers and changing environments quickly and more effectively”

(Elfrink, n.d.).


Hence, the leader’s emotional intelligence, “the ability to

recognize and understand emotions in themselves and in others and

then to use that awareness to manage behavior and relationships”,

may be effected due to the lack of interpersonal contact

(Bradberry & Greaves, 2012, p. 129). Certainly, ‘cultural

intelligence’ (CQ), the “attitude and skill that enables

individuals to adapt effectively across cultures”, will become an

ongoing area of development for all workers; not just for

management (Brewster, Sparrow, & Vernon, 2007, p 55).

Thus, a virtual corporation, “contemplating an entry into a

foreign market…will need to assess in advance relevant beliefs of

the market and specifically beliefs and values of individuals….”

(Albaum, 2012, p. 121) Accordingly, sustainable relationships, a

key factor in leadership, are built on “trust between, and

ethical behavior of the parties to a relationship” (p. 121). The

trust issue can be even more complicated in virtual corporations,

where relationships and behaviors may span divergent cultures and

are largely viewed via technology.

At the same time, leadership will be needed “to help the

workforce to understand that no matter what, they will still be


forced to accept asynchronous synchronization--with the challenge

of time. As a company’s network of nodes spreads to include an

increasing number of locations, each node-office [virtual or

traditional] will have to respect cultural differences, time

sensitivities, and working norms” (Elfrink, n.d.). Based on my

professional experience working with a Malaysian company from my

virtual office in the United States, the challenge of

asynchronous synchronization—do you mean your Wednesday morning

or my Wednesday morning—can create misunderstandings. Likewise,

even the comparatively simple working norm of using ‘UK’ English,

requires additional research for spelling and punctuation terms,

such ‘organisation’ and ‘inverted commas’, respectively, for the

U.S. workers.

Theoretical Description

The Cosmopolitan Leadership Theory is concerned with

providing a framework for leadership in virtual organizations.

The theory will emphasize the development of a cosmopolitan or

‘world citizenship’ style that recognizes the influence of

worldviews and cultures.

Koltko-Rivera (2004) defines the term worldview:


A worldview is a way of describing the universe and life within it, both in terms of what is and what oughtto be. A given worldview is a set of beliefs that includes limiting statements and assumptions regarding what exists and what does not (either in actuality, or in principle), what objects or experiences are good or bad, and what objectives, behaviors, and relationships are desirable or undesirable. A worldview defines whatcan be known or done in the world, and how it can be known or done. In addition to defining what goals can be sought in life, a worldview defines what goals should be pursued. Worldviews include assumptions thatmay be unproven, and even improvable, but these assumptions are ‘super-ordinate’, in that they provide the epistemic and ontological foundations for beliefs within a belief system. (Koltko-Rivera, 2004, p. 4).

Then, cosmopolitans are described by Hannerz (1992) as

“those people who ‘provide points of entry into other territorial

cultures’” (Saran & Kalliny, 2012, p. 283). Konrad (1984) used

the term to apply to “those intellectuals who are at home in the

cultures of other peoples as well as their own” (Saran & Kalliny,

2012, p. 283). From a business viewpoint, “cosmopolitanism

suggests exportability or importability of ideas and thoughts”

that may improve productivity and profitability (Saran & Kalliny,

2012, p. 283). Nevertheless, “cultural characteristics are

related to culturally endorsed leadership behaviors”; thus, a

cosmopolitan leader will have to acknowledge their own


prejudices, those of their followers, as well as prejudices

toward the leader and his/her culture (Northouse, 2013, p. 395,

386).

Theoretical Framework

The increase in the numbers of virtual corporations supports

the need for the development of the Cosmopolitan Leadership

Theory. “In businesses as diverse as movie making and

construction, companies have come together for years for specific

projects, only to dissolve once the task is done. As an example,

the leveraged-buyout firm of Kohlberg Kravis Roberts and Company

forms virtual-style combinations when it assembles lawyers,

accountants, and investment bankers to do a specific deal.

What’s different now is that large corporations have begun using

elements of the virtual concept to gain access to new markets or

technologies” (Businessweek Archives, 1993).

As the virtual model becomes more widespread, it has the

potential to “become the most important organizational innovation

since the 1920s” when the likes of Pierre S. DuPont and Alfred P.

Sloan “developed the principle of decentralization to organize

giant, complex corporations” (Business Week Archives, 1993).


However, “the virtual model has some real risks too” (Business

Week Archives, 1993). For instance, virtual partnerships may not

produce the anticipated benefits; “proprietary information or

technology may escape”; and management will face new challenges

in “learning to build trust with outsiders and manage beyond

their own walls” (Business Week Archives, 1993).

Swedish researchers, Hedberg, Dahlgren, Hansson, and Olve

(1997), refer to the virtual organization as an imaginary

organization (IO). Their research is based on the growth of this

type of organization; particularly in the United States (Hedberg,

Dahlgren, Hansson, and Olve 1997, p. 12). Primarily, they

identify the “cohesive forces other than those used for

conventional companies, such as capital, laws and contracts,

customs, and tradition” (p. 19). They found that the single most

important ingredient is “trust in the…’organizational glue’ that

keeps the virtual organization from coming apart. Some leaders

in their studies even use the phrase ‘high-trust culture’ to

describe this glue” (p. 19).

To add to the complexity, the roles of leaders and followers

in virtual corporations are fluid and dependent upon the evolving


requirements imposed by globalization. “Initially, the term

‘globalization’ was used to describe an economic paradigm, a

neoliberal free market game of global monopoly that all countries

are encouraged to play until it becomes the only game in the

world. Unfortunately, for the virtual corporation, “the raw

syntagmatic applications of globalization as an economic paradigm

have failed to take into account the ecological impact,

demographic issues, the erosion of democracy, and the impact of

new technologies that accompany it” (Tiffin & Rajasingham, 2003,

p. 123).

The virtual corporation has also “rendered the distinction

between national identity and cultural identity deeply

problematic. The new technologies give many people access to a

variety of cultural traditions and values. These technologies

are helping to produce a borderless world in which an individual

has choice and can select from different values, cultures, and

languages. This is changing the nature of multiculturalism from

a specific ethnocentric focus to one that is pluralist and

cosmopolitan” for everything from marketing and consumerism;


thus, affecting organizational leadership dynamics (Saran &

Kalliny, 2012, p. 284).

Fundamentally, the cosmopolitan worldview imposes itself

upon and is affected by technology that addresses “problems which

are complex, quickly altering, knowledge based and global”

(Wexler, 2006, p. 16). Basically, “leadership turns from control

by the few…, to the flexibility of knowledge inputs from the

many” (p. 16). Therefore, understanding objectives, behaviors,

relationships, beliefs, values, and assumptions is an important

part of the role of cosmopolitan leadership.

Thus, “worldview considerations have an important role in

the practice, development and study of leadership. We must

consider not only the worldviews of those seeking to exercise

leadership, but the worldviews of those they seek to attract as

followers and collaborators” (Koltko-Rivera, 2007).

Undoubtedly, as virtual corporations and partnerships expand, the

cosmopolitan or ‘world citizenship’ framework of the Cosmopolitan

Leadership Theory will develop, as well.

Strengths


The Cosmopolitan Leadership Theory has several strengths.

Based on growing trends, the theory is timely and relevant. For

one, it seeks to provide a framework for a weak area in virtual

organizations, leadership in a multicultural global setting that

is linked by technology. The theory calls attention to the

change from an ethnocentric worldview to a pluralistic and

cosmopolitan one that affects leadership; hence, the need to

understand behaviors, relationships, beliefs, values, and

assumptions from an array of fluid cultural characteristics. In

addition, the strategic advantages in developing a virtual

organization are identified. A primary advantage is that the

hierarchy of the traditional ‘brick and mortar’ corporation is

not needed; therefore, more can be done with less. That is, the

virtual corporation is a lean corporation with fewer costs for

real estate, overhead, and maintenance—as well as decreased

layers of management (Margolis, 1999). Hence, the theory also

provides some basic understanding for the inherent changes that

will need to be recognized in the traditional organizational

dynamics (Northouse, 2013).


Criticisms

However, the Cosmopolitan Leadership Theory has limitations,

as well. For one, there is a lack of research and limited

experience that is based on virtual organizations; therefore, the

theory requires analysis and testing. That is, the

aforementioned strengths are not validated by substantial

evidence. Taking into consideration that some corporations have

both a ‘virtual’ and a ‘brick and mortar’ component, the theory

does not address the need for a combination of leadership

approaches. Moreover, identifying the differences in cultures is

one issue; however, keeping up-to-date with changes in those

cultures is another. On the whole, “not all knowledge paradigms

are global in nature. Interpersonal communications, group

communications and organizational communications, unlike the

techniques and artifacts of information technology, do not

function in the same way in Japan as they do in the United

States” (Tiffin & Rajasingham, 2003, p. 143). That is, while the

idea of evolving globalization is taken into consideration, it

does not completely identify how the differences play out in

leadership in the virtual corporation.


Applications

The Cosmopolitan Leadership Theory provides a framework for

virtual organizations to recognize the global, worldview, and

cultural components that influence leaders as well as followers.

Fundamentally, organizational structures, business processes, and

the expanse of technology are changing the leaders’ roles from a

command-and-control stance to an adaptive and collaborative one

in a borderless venue. Therefore, the framework needs to be

developed along with strategic initiatives; and not as an

afterthought. In addition, cultures and worldviews are not a

stagnant concept that can be applied to a particular geographic

region; thus, frameworks should not be considered an established

principle. In summary, the cosmopolitan leadership role is

accessible to everyone in the organization; and its premise is

subject to change as needed.


Visual Representation of the Cosmopolitan Leadership Theory

The Cosmopolitan Leadership Theory recognizes the effects of

globalization, worldviews, and cultures on leadership in virtual

corporations in the dynamic marketplace.

Cosmopolitan Leadership Theory

EvolvingGlobalization

Expansion of Virtual Corporations

Organizational Structure

Strategic Initiatives and Goals

Business Processes

Market / Consumerism for Productsand Services

Worldview

National /Cultural Identification

Language

Trust or ‘organizational glue’

Cloud Technology

Cosmopolitanor ‘World

Citizenship’Framework of

theCosmopolitanLeadership

Theory


Criteria for Nobel Prize in Cosmopolitan Leadership

The overarching goal of the Nobel Peace Prize is to “award

the person who shall have done the most or the best work for

fraternity between nations, for the abolition or reduction of

standing armies and for holding and promotion of peace

congresses” (Rawat, 2014). “The prize favors people who seek to

advance human knowledge or create solutions to the world’s

problems.” Therefore, the person’s ability to “take the extra

step to explain their work to non-specialists and general

audiences” will be significant. Essentially, the person will be

“immersed in their fields and passionate about making a

difference in the world” (Spoon, n.d.).

In addition, the cosmopolitan leadership theory takes into

account that change is a continual process in virtual

organizations; therefore, the person must be able to “transcend

the gap from the larger picture to the smaller picture”. There

are numerous theories and books regarding transformation

processes; however, for the Nobel Prize in Cosmopolitan

Leadership, “Rick Maurer’s (2007) three-step process will be

used; i.e., the person will be committed to (1) making a case for


change; (2) removing anxiety and fear; and (3) rebuilding and

mending relationships.” The person will understand “that people

need to know why change is necessary before they need to know how

the change will occur” (Concordia University-Portland, 2015).

Likewise, the person will be able to communicate with and

understand those who do agree as well as those who don’t agree

with the picture (Fullan, 2011, p. 29).

Hence, the criteria for the Nobel Prize in Cosmopolitan

Leadership will recognize a leader who encourages, through their

own practice, world citizenship in the virtual venue. That is,

the person will set an example for a worldview that is pluralist

and cosmopolitan; as well as be able to recognize and embrace

change as the global market requirements evolve. Nonetheless,

the cosmopolitan worldview imposes itself upon and is affected by

technology that addresses “problems which are complex, quickly

altering, knowledge based and global” (Wexler, 2006, p. 16). For

that reason, the person will understand and be able to

communicate the changes brought on by advances in technology;

with an appreciation for leadership that also changes from


control by a few to the flexibility of knowledge inputs from

many.

First Nobel Laureate in Cosmopolitan Leadership:

Mark Zuckerberg, Facebook

Facebook has “partnered with leading technology companies to

launch Internet.org—a global effort to make affordable basic

internet services available to everyone in the world. The

organization views ‘connecting the world’ as being one of the

fundamental challenges of our time. They stress that when people

have access to the Internet, they not only connect with their

friends, family and communities; they also gain access to the

tools and information to find jobs, start businesses, access

healthcare, education and financial services, and have a greater

say in their societies. That is, they get to participate in the

knowledge economy” (Zuckerberg, 2014).

So far, their efforts are succeeding. For example, “in the

Philippines, Facebook has worked with mobile operator Globe to

offer free data access to their applications. In just a few

months, the number of people using mobile data on Globe’s

network” has increased. And, “in Paraguay, Facebook worked with


TIGO to grow the number of people using the Internet by 50%.

These two partnerships alone helped almost 3 million new people

access the Internet” (Zuckerberg, 2014).

Deloitte’s (2014) report for Facebook, Inc., titled Value of

Connectivity, “assesses the social and economic impact of extending

Internet access” (p. 30). In effect, “the Internet offers

unprecedented opportunities for economic growth in developing

countries. By providing access to information, connecting people

to businesses everywhere, and opening up new markets, the

Internet can transform the very nature of an economy and support

economic development” (Deloitte, 2014, p. 3). Additionally, the

“connectivity has already created new business models and

industries and more efficient ways for firms and workers to

operate”; i.e. via virtual corporations and partnerships (p. 8).

Zuckerberg’s cosmopolitan leadership style is evident as he

begins each venture assessing the relevant beliefs of the market

as well as the beliefs and values of the people. Moreover, he

seeks to build trust and thereby encourages a foundation for

sustainable relationships. Because of his cosmopolitan style, he


is at home in many different cultures allowing him to

communicate--to import as well as export ideas and thoughts.

For instance, on a recent trip to Tsinghua University in

China, Mark Zuckerberg “surprised the audience with his decent

grasp of Chinese” (Xlaozha, 2014). Though Zuckerberg “greeted the

students in Putonghua like many foreign executives do; they were

surprised when he continued the conversation in the language,

sending students who do not speak it scrambling to ask their

classmates for help” (Xlaozha, 2014). During the presentation,

when answering a question about Facebook’s plan for the market in

which it is banned, he said, “We are already in China (in terms

of) helping Chinese companies develop clients abroad. We want to

help other countries in the world to connect with China”

(Xlaozha, 2014).

Zuckerberg also understands that people need to know why

change is necessary before they need to know how the change will

occur. During the question / answer segment of his meeting with

students at Tsinghua University, he emphasized that although

internet.org would like to help more people gain access to the

Internet, they are also aware that “the majority of them simply


do not know why they need the Internet” (Xlaozha, 2014).

Zuckerberg relates to the need for people to know why change is

necessary in his response: “You cannot answer questions about why

not to use a computer, telephone or Internet if you do not have

them. The Internet connects the world and is very important to

economic development” (Xlaozha, 2014). That is, through his

leadership, he promotes the benefits that people will gain in the

virtual venue; it will offer knowledge and opportunities that are

currently not available.

On the other hand, Zuckerberg also recognizes that

Internet.org does not operate in a vacuum; that culture and its

dimensions affect the leadership process (Northouse, 2013).

Zuckerberg (2014) emphasizes that “no one company can do this

work by itself, and Facebook will not deploy these technologies

alone” (p. 11). He is confident that “together, with other

companies, non-profits and governments, they can…deliver on the

promise of a connected world” (Zuckerberg, 2014, p. 11).

In essence, Zuckerberg understands that, in order to achieve

the goals, an implementation that is technologically sound to

support a robust virtual environment, will need to be balanced


with local responsiveness to cultural values, and will require

leadership that is sensitive to ethnocentric and prejudicial

practices within themselves as well as in others—in a continually

evolving global venue.

Conclusion

One of the hallmarks of successful organizations is that

they are able to respond quickly to changes while not losing

sight of their strategic mission and goals; or to adapt those

strategies, as needed with the changes of a global market. In

addition to the business side of marketing, productivity, and

profitability; issues such as political and economic instability

may change the strategies in a moment’s notice.

Moreover, with the ever increasing use of technology to

conduct business, a worldview of cultures will become a

requirement to get through the workday. Unfortunately, the

ideology of “implicit bias” in the leadership of multinational

corporations is far too often evident yet ignored in actual

practices; they are in the “attitudes or thoughts that people

hold but might not explicitly endorse” (Rachinski & Parks, 2010,

p. 683). To complicate matters, the ‘weltanschauung’ or “a


comprehensive conception or apprehension of the world especially

from a specific standpoint” may differ within cultures as well as

between cultures (Merriam-Webster, n.d.).

That being said, as the virtual corporation becomes a

standard of operations; leadership that encompasses a range of

culturally-based business practices, skills, and behaviors with a

globally diverse workforce will become a critical factor. Given

the dynamics, leadership will no longer be limited to the upper

echelons of the organization; it will need to permeate the

organizational culture with a flexibility that can match the

evolving market.

Fundamentally, the Cosmopolitan Leadership Theory is timely

and pertinent to address the issues that are part of the virtual

operations taking place across cultures. The theory brings to the

forefront the idea that multiculturalism is changing from an

ethnocentric focus to a pluralist and cosmopolitan one that

influences leadership. The framework prioritizes the need to

understand the behaviors, relationships, beliefs, values, and

assumptions; and to apply that understanding to leadership.

Furthermore, the theory recognizes that the understanding should


be part of strategic initiatives; is not stagnant; and requires

ongoing reassessment.


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