Impacts of Industry Attractiveness and Competitive Position on Leadership
Contingency models of leadership have focused on the effects of organizational and follower characteristics onleadership. Much less effort has been given to understanding the effects of the external competitive environment onleadership. This paper explores the relationships among the external competitive environment, categorized by theattractiveness of the industry assessed by the intensity of competition and the industry’s long-term potential for salesand earnings growth, the strength of the company’s competitive position in the industry, and leadership. The resultsshow that industry attractiveness and competitive position have statistically significant effects on numerousleadership functions, traits, skills, styles, and its effectiveness. The findings have numerous implications for thepractice 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.