Strategic Leadership in Developed and Emerging Economies

The concept of “strategic leadership” has gained significant traction at the turn of the 20th and 21st centuries, as traditional managerial approaches began to fall short in the rapidly evolving global economy. As stated by IMD Business School (IMD, 2023), traditional management based on planning, control, and process optimisation failed to keep pace with technological change, geopolitical volatility, and new societal pressures. Companies need leaders who can articulate direction, translate it into concrete decisions, and inspire people to embrace it.

According to Assoc. Prof. Emil Velinov, Ph.D., guarantor of the English-taught MBA in Strategic Leadership at NEWTON University, strategic leadership represents a combination of long-term vision, value anchoring, and cultural development. A leader is not merely a decision-maker. They are an architect of an environment that gives people purpose, enables them to take ownership, and supports their initiative. The connection between top-level strategy and the continuous development of people within the team distinguishes strategic leadership from traditional management focused solely on performance.

High regulation, high expectations

In developed economies, typically Western Europe, the USA, Canada, or Japan, strategic leadership is shaped by intense competition, high levels of regulation, and advanced institutional quality.

Research by OECD (OECD Employment Outlook, 2024) confirms that leaders in developed economies face key challenges such as:

• pressure to innovate
• rapid digitalisation and automation
• increasing regulatory demands, especially regarding ESG
• population ageing and a shifting labour market
• the need to manage a complex network of stakeholders

Strategic management is therefore grounded in data, predictive models, and scenario planning. Leaders must master not only their own time management but the broader ecosystem in which the organisation operates. Strong corporate governance is the norm, not the exception. Boards, according to Harvard Business Review (HBR, 2022), function as genuine partners in long-term strategy and play a key role in innovation and risk regulation.

Strategic leadership in developed countries relies on professionalisation, transparency, and the ability to combine performance pressure with a responsible, long-term approach to people management.

A context where adaptability and personal authority matter

In emerging economies, the reality is different. Markets in developing regions are characterised by weaker institutions, unstable legal environments, higher levels of corruption (Transparency International, 2025), and limited resources.

Research by the World Bank and IFC (IFC Corporate Governance in Emerging Markets, 2023) shows that strategic leadership is often more personal, intuitive, and closely tied to individual authority. Where strong formal institutions are lacking, leadership relies on:

• personal trust
• relational authority
• the ability to influence informal structures
• rapid adaptation to sudden environmental changes
• improvisation and entrepreneurial drive
• flexibility in decision-making

Strategic vision is not merely a board-approved document. It is a practical tool for survival and growth, a compass that helps maintain direction in an environment where rules change quickly and often without warning.

A study by Kebede (Cogent Business & Management, 2024) confirms that leaders in emerging markets must combine short-term operational responses with long-term development of competencies and company culture, otherwise organisations lose stability.

Different markets, different behaviours

Differences between developed and emerging markets can be explained by three key factors:

1. Institutional environment

According to the World Bank Governance Indicators (2024), institutional quality is a crucial determinant of how organisations make strategic decisions.

• In developed countries, leaders operate in stable, predictable environments.
• In emerging economies, leaders often compensate for institutional weaknesses with creativity, influence, and personal authority.

2. Cultural context

Hofstede Insights has long shown that countries with high power distance and a collectivist culture naturally gravitate towards more directive leadership styles (Velinov et al., 2024). Countries with low power distance prefer participatory approaches.

3. Corporate governance

According to Candriam Research (2023), governance in emerging economies often exists only formally. Key decisions are typically held by owners or families, which inherently reshapes the role of leaders and boards. In developed economies, governance is more institutionalised and clearly separated from ownership.

Differences are gradually fading

Despite clear distinctions, globalisation, digitalisation, and rising pressure for responsible management are partially unifying strategic leadership across regions.

Similar competencies are emerging in both types of economies:

• data-driven orientation
• work with ESG
• ability to lead hybrid and global teams
• reputation management
• capacity to build coalitions within broader ecosystems

Companies connected to global supply chains or investors must meet international standards, regardless of the country in which they operate.

What this means for Czech managers

The Czech Republic stands between two worlds. It has mature institutions within the European context, yet retains features of post-transition development, specific cultural patterns, and the unique environment of Central Europe.

According to Assoc. Prof. Velinov, this position is exactly why strategic leadership is essential for Czech leaders:

Czech companies and managers can therefore draw inspiration from both worlds. From developed economies, they can adopt complex management, accountability, and data work. From emerging markets, they can take adaptability, agility, and the ability to act in uncertain conditions.

In conclusion

Strategic leadership is no longer optional. It is a core competency for organisations operating in a world of constant change. While leaders in developed economies use it to navigate complexity, leaders in emerging regions rely on it for flexibility and survival. In all contexts, it determines whether an organisation can grow, adapt, and remain relevant.

A strategic leader is someone who connects people with purpose, vision with reality, and complexity with understandable simplicity. This competency will be indispensable for both business and public sectors in the coming years.

This article reflects the perspective of Assoc. Prof. Emil Velinov, Ph.D., guarantor of the MBA in Strategic Leadership at NEWTON University, and draws on research by OECD (2024), IMD (2023), World Bank Governance Indicators (2024), Harvard Business Review (2022), IFC (2023), Candriam Research (2023), Velinov et al. (2024), and Cogent Business & Management (2024).