By W.H. Mobley, P.W. Dorfman

Those papers discover the interaction between nation and corporate cultures, learn company technique and establish the degree that corporation and company unit improvement has reached. The members supply a deeper realizing of firm and international management matters.

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1. CONCLUSIONS We have established that leaders must build trust as part of their relational competence. Leaders apply relational competence in order to build relational capital, which in turn leads to the development of social capital. These actions are necessary in internal and external relationships. Effective leaders build trust within the organization through displays of integrity and fairness. They demonstrate distributive, procedural and interactional justice. They build trust in external relationships through effective communication and the establishment and practice of norms of reciprocity.

Firms can only obtain the needed benefits from alliances when leaders have established mutual trust among alliance partners and built social capital. Without trust, partners are unlikely to transfer knowledge or other desired resources. There must be a free flow of communication and norms of reciprocity among the partners. Successful alliances, knowledge and innovation are outcomes of social capital based on strong relationships (with internal and external constituents) and trust. In turn, these outcomes contribute to a firm’s strategic flexibility.

Strategic Leadership in Global Business Organizations 35 Spielberger, C. (1972). Anxiety as an emotional state. In: C. ), Anxiety: Current Trends in Theory and Research. New York, NY: Academic Press. Thamhain, H. , & Wilemon, D. L. (1977). Leadership, conflict, and program management effectiveness. Sloan Management Review, 19, 69–89. , & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks. Academy of Management Journal, 41, 464–476. Welch, J. (2001). Jack: Straight from the gut.

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