The Impact of the Effective leadership Style of Foreign MNEs in the Chinese Soybean Industry- A Case Study of Bunge Ltd

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The Impact of the Effective leadership Style of Foreign MNEs in the Chinese Soybean Industry- A Case Study of Bunge Ltd

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

The purpose of this study is to develop a conceptual background of leadership and conduct a critical description of previously published papers on the subject of leadership style by a comprehensive analysis. This chapter begins with analysis of the definition of leadership. The exploration is essential in helping the researcher to enhance their knowledge of the research objectives. Leadership has become increasingly important in today's world. The study of leadership has been conducted to prepare future leaders. The term "leadership" is used in two basic ways:

to refer to processes of moving a group of people in the same direction through noncoercive means; and

to refer to people who are in roles from which leadership is expected.

Formal research on leadership has been conducted for more than 60 years. According to Hansen (2009), there are many different definitions of leadership, but all appear to have three things in common:

1.Leadership is a process about influencing;

2.There are at least two people involved, the leader and the follower; and

3.Leadership happens where implied or even unconscious goals or objectives are established.

2.2 Definition and Concepts of Leadership

In recent years, leadership has gained the attention of researchers worldwide. The concept of leadership is not a new notion in the field of social science studies. Although the concept of a leader has been put forward in the early 1300s, there is no classical definition of leadership. Within the concepts of early western history, the searches of traits from which leaders are born and brought into the consideration are of multiple kinds and they can be identified from the philosophical writings and descriptions which are provided from various different links in such regards. The question has always been as to what qualities and characteristics are really required for an individual to be classified as a leader and the recognition of different facilities has led to believe that it is within the particular attributes that the idea of leadership and having a confident chief personality begins and develops.

The success of an organization depends on many factors, none more important than the impact of its leaders. Antonakis & Atwater (2002) made this point more evident: "Of every 100 new business establishments started, approximately 50, or one half, go out of business within 2 years. By the end of 5 years, only one-third of the original 100 will still be in business." Most of these failures can be attributed to ineffective leadership.

According to Avolio (2010), “Leadership is the activity of influencing people to strive willingly for group objectives” (p. 209). Conger, Kanungo, & Meno (2000) defined leadership as "interpersonal influence exercised in a situation and directed, through the communication process, toward the attainment of a specialized goal or ...