Chapter 1: Sustainable Development

Title: Leadership theories in the new economy and the connect to sustainable growth: a conceptual reflection

Reference: WORLD SUSTAINABLE DEVELOPMENT OUTLOOK 2006 pp. 23 - 31

Abstract/Summary: E-globalisation has been imposing itself within the last two decades. Thus, it is becoming in its order to try to understand how leadership theories have been altered by the tools of the new economy (or IT-based economy). Such understanding will help design better training programs for firm leaders in an international environment. In this paper, we have looked at how leadership theories can be perceived taking in account the new environment within which new leaders are operating. In our analysis we found that the trait theories of leadership were not altered in the new economy. This could be said also about the attribution theory of leadership as well as the charismatic theory of leadership. The validity of the behavioural and contingency theories is at high level in the new economy. However, the significance of the behavioural theory is higher than in the contingency theory in the IT-based economy. We also have explored, in a more generalised way, the connection between these findings and the sustainability of growth and development of economies of the world. This paper presents a broad theoretical framework to reflect on the leadership prevailing logic in the new environment.

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