Dr. Rosabeth Moss Kanter builds off of
her previous research of five American cities of Boston, Cleveland, Miami,
Seattle, and Spartanburg-Greenville to find patterns to success economic
rejuvenation. It is important for struggling cities to develop concepts,
competence and connections. It is also necessary to encourage those who think
in the region to work with those who make products and those who sell the
products. As an example of success, she focuses in on Spartanburg-Greenville
and how it became a world class area of manufacturing that attracted foreign
investments from 215 companies in 18 countries. Without visionary leadership,
friendly business environment, commitment to training, and collaboration
between business and government the success story would have never generated.
Her paper argues that success will come
from matching the local needs to that of the global economy. Unfortunately,
there is a level of divergence between locals who are aware of local issues and
the business leaders who are more aware of global issues. Trying to get the
social and business interests on the same page for improved competitiveness is
difficult.
A particular problem is local political
interests that desire to move into an isolationist stance. Unfortunately, this
stance leads to economic withdrawal and estrangement that impacts the lives of
those who local politicians profess to protect. At times local political
interests will use the fears of workers to create rifts between them and the
outside world that manifests itself in worker resentment, a downgraded economy,
and “us vs them” mentality.
In the industrial world the location of
a company was important because it means they had control over distribution and
local labor. However, the global economy requires these companies to think on a
new paradigm which includes the ability to harness innovation and knowledge to
continually update their products. In such cases innovation can meet
manufacturing to compete in the global economy.
A market is made up of three different
types of people:
Thinkers: These are the
intellectual innovators that create new ways of competing on the market. This
may be in the form of new products and services. Such people are adept at
creativity and developing new and unusual solutions to problems.
Makers: Makers are people who
are strong at execution. They can use manufacturing abilities to create high
value-laden products. Such makers can be pre-existing businesses that are
retooled for new products and services.
Traders: These are individuals
that can make global connections to other countries and people. They are the
ones who foster new business investment, distribution of products, and connect
the local area to the global economy.
Spartanburg-Greenville, South Carolina,
is a success story even though it is an unlikely place for such global success.
They were able to renew entrepreneurship, innovation, teaming, improving
awareness of world needs, and connecting local companies to global networks. Despite
its textile, automotive, metalworking background it, at present, has one of the
lowest unemployment rates, high per capita engineers in the area, and rising
wages throughout the region while many other areas are declining.
From her research a successful “come
back” requires:
- 1 -Visionary leaders who have a clear economic strategy and recruit international companies.
- 2-A hospitable business climate and positive work ethic that attracts innovative companies to make long-term investments.
- 3-Strong training and upgrading of local worker skills.
- 4-Collaborations between business and business as well as business and government.
Local regions that have suffered from
the weight of change often do so because of the perspectives of those within
the area and a need for a broader self-perceptive view. To change this
perspective requires an expanding of understanding from local to global. The catalysts
to this change often include a vision brought forward by leadership, positive
business environments, business interaction and partnerships with local
government, and the upgrading of employee skills/abilities. Without putting the right factors in place
that change the competitive nature of the area it is likely that such declines
will continue if the tendency to be protective outlives the need to grow and
develop. Those who do the thinking, are partners with those who do the making
and those who sell the products. They are all on the same team.
Kanter, R. (2003). Thriving locally in
the global economy. Harvard Business
Review, 81 (8)
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