Management Innovation for Cross-Border Trade Resilience

Abstract

Trade volatility has changed so much that a leader must now lead rather than manage risk. The decline of merchandise trade in 2023; the increasing number of trade regulations; and the increasing fragmentation of global supply chains all require leaders to anticipate disruption, move quickly to respond to changes, make implementation decisions quickly, and continuously learn via feedback and other methods. The LFTVN model set forth in this paper provides leaders with a solid framework for developing these abilities because it is based on the theory of dynamic capability, the science of leadership, and several pieces of current empirical evidence. The six leadership types described in this paper (transformational, adaptive decision-making, redesigning supply chains, financial options strategy, creating talent, and digital intelligence) do not represent either/or leadership choices; rather, these are complementary capabilities that can be used more effectively together in a unified portfolio of leadership approaches that is appropriate for the organization’s unique risk profile and strategic timing. Future research should explore the applicability of LFTVN performance across multiple industries and the extent to which LFTVN can be applied to small and medium-sized enterprises (SMEs) and emerging markets, where portfolio resources may be limited.