Impacts of Industry Attractiveness and Competitive Position on Leadership

Abstract

Contingency models of leadership have focused on the effects of organizational and follower characteristics on
leadership. Much less effort has been given to understanding the effects of the external competitive environment on
leadership. This paper explores the relationships among the external competitive environment, categorized by the
attractiveness of the industry assessed by the intensity of competition and the industry’s long-term potential for sales
and earnings growth, the strength of the company’s competitive position in the industry, and leadership. The results
show that industry attractiveness and competitive position have statistically significant effects on numerous
leadership functions, traits, skills, styles, and its effectiveness. The findings have numerous implications for the
practice of leadership, and for the debates in the literature over the effects of the external environment on leadership,
the most effective leadership styles, and the assessment of leadership effectiveness.