Campus Newsletter - May 2021: What's New at MLARI?
Karen E. Linkletter
PUBLISHED:
April 27, 2021
Cada mañana, Isabel abría su pequeño taller antes del amanecer, aunque nadie aseguraba que llegaría un cliente. No heredó fortuna, solo poseía una idea: reinventar la forma de vestir a su comunidad. Mientras otros dormían, ella soñaba despierta, hilando futuro entre telas. Así comenzó su historia como emprendedora. El emprendedor está motivado por la posibilidad de que sus productos y servicios puedan agregar valor a la sociedad. Pero también está consciente de que, para operar de manera sostenible, necesita generar ganancias. Los emprendedores tienden a reevaluar constantemente sus productos o servicios, mientras examinan el mercado en el que compiten y la forma en que producen y distribuyen sus ofertas. Ellos entienden que, para sobrevivir la intensa rivalidad y competencia que enfrentan, deben encontrar formas de innovar continuamente. La necesidad de competir de manera efectiva conduce a que los emprendedores apuesten por la innovación, ya que esta también facilita la creación de valor. Este es el proceso denominado "destrucción creativa". Joseph Schumpeter acuñó este término para describir el proceso de cambio desordenado, donde las ideas, productos, empresas e industrias enteras son desplazadas por nuevas innovaciones. Schumpeter sostuvo que la principal contribución de los emprendedores a la sociedad es abogar por el cambio y la disrupción, y al hacerlo, ayudan a avanzar a la sociedad. Schumpeter estableció conceptualmente al "emprendedor como innovador", siendo el emprendedor una figura clave en el impulso del desarrollo económico. Schumpeter argumentó que la innovación es un factor crítico del cambio económico. Indicó que el cambio económico gira en torno a la innovación, las actividades emprendedoras y el poder del mercado. Schumpeter afirmó que el poder del mercado originado en la innovación podría proporcionar mejores resultados que la competencia de precios y la ‘mano invisible’. Además, sugirió que la innovación a menudo crea monopolios temporales, permitiendo ganancias anómalas que pronto serían disputadas por imitadores y rivales. Explicó que estos monopolios temporales eran necesarios para proporcionar el incentivo requerido para que otras empresas desarrollaran nuevos productos y procesos. Por consiguiente, el emprendedor introduce cosas nuevas, procesos y perspicacia empresarial con el propósito de transformar innovaciones en bienes económicos. Y el emprendedor está dispuesto a asumir el riesgo asociado con introducir el cambio. Las actividades innovadoras de los emprendedores alimentan un proceso de ‘destrucción creativa’ al causar disturbios constantes en un sistema económico en equilibrio, creando así oportunidades para generar ingresos y beneficios. Por lo tanto, el emprendimiento interrumpe el flujo estacionario del sistema económico y de esta manera inicia y sostiene el proceso de desarrollo económico. Al ajustarse a un nuevo equilibrio, se generan otras innovaciones y más emprendedores entran al sistema económico, introduciendo nuevos productos y servicios, fomentando así el progreso. De manera similar, las empresas emprendedoras participan en la destrucción creativa y así logran captar una parte del mercado al reemplazar empresas que han fracasado en producir productos y servicios valiosos. El proceso de destrucción creativa incentiva a las empresas a desarrollar nuevos productos, servicios y procesos; de lo contrario, no sobrevivirán a largo plazo. El emprendimiento abarca la entrada al mercado de nuevas empresas, pero también respalda el desarrollo de actividades innovadoras en empresas existentes que les permiten crear valor continuo. En este sentido, la innovación puede caracterizarse como el desarrollo de un nuevo producto, servicio o proceso a medida que la empresa emprende nuevas combinaciones de los factores de producción. La innovación es un proceso complejo y dinámico que requiere compromiso, recursos e inversión. Muchas veces, las empresas modifican su modelo de negocio existente, reorganizando la forma en que desarrollan un producto o la manera en que entregan nuevas funcionalidades o servicios a sus clientes. Las modificaciones a un proceso organizacional existente, a un modelo de negocio existente, o incluso a un método de prestación de servicios, son todos ejemplos de cómo se aprovecha la innovación para buscar una mayor efectividad. La innovación puede caracterizarse como el desarrollo de un nuevo proceso o producto (o servicio) que satisface nuevos requerimientos y/o necesidades del mercado existentes. Drucker nos dice: “La innovación debe centrarse en una necesidad específica que satisface, en un resultado final específico que produce.” (Drucker, 1985). La innovación permite que productos, procesos, servicios, tecnologías e ideas más eficaces estén disponibles para los mercados y la sociedad. Como resultado, la innovación es utilizada por la empresa como un medio para satisfacer las necesidades de los consumidores; como una herramienta para competir con otras empresas en un mercado existente; y como un instrumento para ingresar a un nuevo mercado. Por lo tanto, la innovación incrementa conceptualmente la probabilidad de que la empresa logre eficiencia económica a corto plazo, y puede permitirle establecer una posición más competitiva a largo plazo. No obstante, la empresa se enfrenta a limitaciones internas (por ejemplo, el costo de insumos) y limitaciones externas (por ejemplo, la competencia en el mercado) que hacen que sea difícil subsistir. Además, los rendimientos marginales decrecientes influyen en la capacidad de producción de la empresa. La innovación puede considerarse esencial para el éxito de las empresas y para la supervivencia económica a largo plazo. Según algunos académicos, la innovación puede ayudar a mejorar la supervivencia a largo plazo de una empresa, ya que puede mejorar su oferta de línea de productos/servicios al tiempo que le permite establecer una ventaja competitiva sobre otras empresas (Antonelli, 2003; Lundvall, 2007; Porter, 1990; Schumpeter, 1936; Teece y Pisano, 1994). Vale la pena señalar que la empresa que elige innovar lo hace basándose principalmente en la información que tiene sobre las preferencias, deseos y necesidades de los consumidores en su mercado. En otras palabras, la empresa innova porque reconoce la oportunidad y el valor de satisfacer las necesidades y deseos de los consumidores a corto plazo y ve la inversión en innovación como un medio para también posicionarse eficazmente a largo plazo. Drucker nos recuerda: “La innovación sistemática y con propósito comienza con el análisis de las oportunidades” (Drucker, 1985). Y dado que la empresa enfrenta competencia, la innovación se convierte en una vía a través de la cual la empresa puede diferenciar sus productos o servicios. La innovación es la materialización exitosa de una idea útil, donde la idea es comercializada. La innovación también permite a la empresa reconfigurar sus recursos de manera más eficiente, y por lo tanto le permite aumentar su productividad, con la implicación de que esto puede ayudar a aumentar sus ganancias. La innovación ha ayudado a construir empresas y a hacer crecer y desarrollar industrias. Por ejemplo, hace apenas dos décadas, las empresas tenían dificultades para gestionar la gran cantidad de información y datos relacionados con sus interacciones continuas con los clientes. Desde 1999, Salesforce ha revolucionado la forma en que las organizaciones hacen seguimiento de las interacciones con los clientes y gestionan sus datos de ventas. Desde su fundación, Salesforce ha desarrollado múltiples versiones de sus productos, dando lugar a un sofisticado software empresarial basado en la nube que respalda la gestión de relaciones con los clientes (CRM). Las soluciones innovadoras de Salesforce incluyen la automatización de fuerza de ventas, servicio y soporte al cliente, automatización de marketing y comercio digital. Salesforce ha permitido a grandes organizaciones automatizar sus procesos de ventas y marketing y volverse cada vez más eficientes, al tiempo que se convierten en gestores eficaces de los datos e información de los clientes. La innovación no es un proceso lineal. Por el contrario, es un proceso altamente iterativo de reconsiderar muchos factores internos técnicos y operativos, y factores externos, con una interpretación en constante flujo de cómo la empresa podría continuar desarrollando y ofreciendo productos y servicios. La empresa en la que se fomenta la innovación debe apoyar las diversas iteraciones, interacciones y transacciones necesarias para respaldar los esfuerzos de innovación. El emprendedor, que no le teme a la incertidumbre ni al riesgo, es capaz de gestionar este proceso dinámico. La innovación que aborda una necesidad o deseo del mercado aporta valor a la sociedad. Sin embargo, la innovación requiere que las empresas analicen sistemáticamente las oportunidades que se presentan. Por lo tanto, el emprendedor y la empresa emprendedora deben desarrollar la capacidad de observar y percibir las necesidades cambiantes de las personas. El emprendedor debe entonces centrarse en ofrecer una solución que satisfaga un conjunto específico de necesidades o deseos. Esto implica que la innovación debe ser manejada con propósito. Y también requiere que el emprendedor no solo sea disciplinado, sino que esté dispuesto a invertir en la adquisición de conocimiento que pueda aplicarse productivamente. Tanto el emprendedor como la empresa emprendedora deben reevaluar continuamente sus productos y servicios, analizar el mercado en el que compiten y reconsiderar la forma en que producen y distribuyen sus productos y servicios. Al adoptar la innovación, abogarán por el cambio y la disrupción, y ayudarán a avanzar a la sociedad. Referencias Antonelli, C. (2003). The economics of innovation, new technologies and structural change: studies in global competition series. New York, NY: Routledge. Drucker, P. (1985). Innovation and entrepreneurship: practice and principles. New York, NY: Harper Business. Lundvall, B. Å. (2007). National innovation systems—analytical concept and development tool. Industry and innovation, 14(1), 95-119. Porter, M. E. (1990). The Competitive advantage of nations: creating and sustaining superior performance. New York: Simon and Schuster Inc. Schumpeter, J.A. (1936). The Theory of Economic Development, Second Edition. Cambridge: Harvard University press. Teece, D., & Pisano, G. (1994). The dynamic capabilities of firms: an introduction. Industrial and corporate change, 3(3), 537-556.
In today’s political environment, particularly in the United States, there is much discussion about the future of democracy. Globally, traditional democratic forms of government are being called into question. Is democracy no longer effective in its ability to represent “the people”? Have democratic governments been hijacked by elite, moneyed interests? Are our institutions no longer effective and in need of some kind of reset or reinvention? The increasing appeal of authoritarian regimes, driven by populist anger, has been the subject of the work of many political scientists and observers (Silver and Fetterolf, 2024, Praet, 2024, Rhodes, 2022). Nearly 200 years ago, Alexis de Tocqueville (1805-1859) sought to understand the essence of democracy. His motivations and observations can perhaps be instructive to us today as we wrestle with the nature of democracy in the modern era. Alexis de Tocqueville was a member of the French aristocracy in the era immediately following the French Revolution. The revolution, which began in 1789, featured the rejection of the monarchy through violent spectacle, including public beheadings via the newly developed guillotine. Alexis’s father was part of the French government and was briefly imprisoned during the Reign of Terror. Nevertheless, he was sympathetic to the revolutionary cause. In fact, many members of the aristocracy in de Tocqueville’s France understood the motivations behind the revolution and sought to ensure that subsequent governments addressed the extreme economic disparities that were exposed by the violent events of the Reign of Terror. Alexis was educated in the aristocratic tradition, studying political philosophy and theory, history, and law. He was well-versed in the Enlightenment philosophy that influenced the framers of the American Constitution, particularly Montesquieu. Montesquieu argued for separation of powers in governance, which derived from his belief in the human capacity not only for greatness, but also for corruption. This tension between virtue and vice, which Montesquieu saw as a universal condition of humankind throughout time, required guardrails to slow down or inhibit abuse of power. Following the establishment of the French Consulate in 1799, Napoleon rose to lead the French Empire in 1804. After his defeat in the Battle of Waterloo, France restored the monarchy to Charles X. However, this was a constitutional monarchy rather than one based on the rights of heredity. In 1830, France overthrew King Charles X of the House of Bourbon, growing critical of his broken promises for economic relief from taxation to pay off the debt of the Napoleonic Wars. Charles was replaced by his cousin, Louis Philippe, of the House of Orleans. Louis Philippe sought to reform the monarchy, recognizing freedoms such as voting rights. Referred to as the “Citizen King”, he would be one of the last kings to represent France. In essence, France was beginning to understand the inevitable: the past world of a hereditary monarch claiming absolute authority was over, and the constitutional monarchy seemingly could not deliver on the promises of egalitarianism made in 1789. But what would the new form of governance look like? This was not clear. Even though the country had a reformist government, constitutional monarchy still retained elite status/class distinctions to maintain social order. Alexis de Tocqueville was 25 when Louis Philippe was installed as the Citizen King in the July Revolution of 1830. Believing that democracy would inevitably come to France, de Tocqueville wanted to study that form of government. What did it look like? How could it be a stable form of government? Because the United States of America was the earliest experiment in democracy, de Tocqueville petitioned the king to travel to America to study that country. In particular, de Tocqueville convinced the king to let him study the American penitentiary movement. One of the areas of reform pursued in France was prison reform (prisons in France were notoriously horrible). At the time, America was in the middle of its own reform movement, including the penitentiary system of prison reform. The concept of a penitentiary was brand new. The idea behind it was that, instead of rotting in prison forever, you would be reformed and released back into society if you were truly sorry, or penitent for, your crimes. De Tocqueville visited America in 1831-1832. In addition to prison reform, he witnessed many remarkable developments in American democracy. It was President Andrew Jackson’s first term, which involved substantial political upheaval in America. Jackson was the first President elected “of the people.” He was not a Virginian or New England “blue blood,” like all the presidents before him had been. Jackson was from the frontier, and had built his name on a military career, most notably in the War of 1812 at the Battle of New Orleans. Jackson’s election coincided with the expansion of suffrage to most white males regardless of their property ownership. Jackson was understandably a controversial President; his election gave birth to the Whig party as a political alternative. His fight against the Bank of the U.S. placed him at odds with a rapidly developing commercial middle class. During de Tocqueville’s visit, Americans were participating in a growing reform culture. Abolition, or anti-slavery, was building steam in the nation. William Lloyd Garrison published his first issue of The Liberator, an important abolitionist newspaper that de Tocqueville read. There were religious revivals, known as the Second Great Awakening, and urban reform movements targeting prostitution, temperance, and of course, prison reform, the purported reason for de Tocqueville’s visit. The discovery of gold on Cherokee land in Georgia in 1828 snowballed into the event eventually known as the Trail of Tears, the forced removal of thousands of Native Americans from their ancestral lands. Jackson’s 1830 Indian Removal Act made such events legal, and de Tocqueville personally witnessed the removal of the Chocktaw tribe. On a lighter note, this was also a time of incredible technological development. Railroad development and land speculation was beginning, McCormick had just patented his reaper, and de Tocqueville saw the newly opened Erie Canal. While de Tocqueville studied the nature of America’s young democracy nearly 200 years ago, we can leverage his observations with our own experience of facing a changing world where the nature of democracy is being questioned globally. The move towards increasing authoritarianism and populist movements calls into question whether democracy is government by the people or by the elite. Can de Tocqueville’s observations help us assess how we might keep democracies intact or make them more effective? In our next installment, I’ll look at de Tocqueville’s specific observations regarding democracy – particularly those related to the nature of equality. Sources Montesquieu, Charles de Secondat, baron de (1949). The spirit of the laws. New York: Hafner Pub. Co. Praet, J. (2024). Bringing authoritarianism into the limelight: the implications for populist radical right ideology. Journal of Political Ideologies, 1-23. Rhodes, B. (2022). After the Fall: The Rise of Authoritarianism in the World We’ve Made. Random House. Silver, L. and Fetterolf, J. (2024). Who likes authoritarianism, and how do they want to change their government? Pew Research Center, February 28. https://www.pewresearch.org/short-reads/2024/02/28/who-likes-authoritarianism-and-how-do-they-want-to-change-their-government/ Tocqueville, A.D. and Reeve, H. (1835). Democracy in America. London: Saunders and Otley, to 1840.
When we describe leaders, we often cite the importance of their ability to influence others. For decades scholars have focused their work on studying and describing how this capacity to influence works and why it tends to elicit a positive response from people, who are inspired to follow the leader’s vision. We have read about that mystifying ability to persuade others and guide them towards a common purpose. However, when analyzing the leader there is another aspect we ought to also consider - where does their power originate from, and is this power considered legitimate? What these questions intend to imply is that when we analyze the interactions of leaders and their followers, we should contemplate how their relationship is built, and moreover, how the power of the leader is used to shape those relationships. Let us first discuss what power is and why it is important. Power in its general sense is the capacity to influence, lead, dominate, or impact the actions of others. The German sociologist, Max Weber referred to power as the capacity to create a desired outcome within a social relationship. As such, power enables the leader to influence and lead the actions of people. Legitimate power is often referred to as power that the person derives from formal position or office held in the organization's hierarchy of authority. And it is this notion of authority that helps legitimatize power in the eyes of the follower. For instance, a manager has legitimate power over their subordinates, allowing them to assign tasks. Teachers possess legitimate power in the classroom, enabling them to assign grades and set learning objectives. We can then surmise that legitimate power is based on the authority granted by a position or title. And individuals will comply with requests or decisions made by the person with authority because they recognize the authority of the person holding the position. However, unlike authority, which implies legitimacy, power can be exercised illegitimately. As history shows us, there are plenty of examples where power did not originate simply from a place of authority and legitimacy, and instead flowed from coercion. Joseph Stalin and his Great Terror campaign certainly comes to mind. And although Stalin did have a position of “authority”, much of his power and influence were coercive and deceptive in nature. In fact, Stalin had used his political positions throughout his life to “remove” opponents while bolstering his image in the pursuit of greater personal power. According to biographer Robert Service (2005), Stalin took pleasure in degrading and humiliating people and kept even close associates in a state of "unrelieved fear”. Of course, there are other instances in which coercive power is used to elicit compliance. A more common example of coercive power is a manager who uses threats of demotion or termination to get employees to comply. And so, when we consider the influence a leader (manager) has, we ought to consider the very nature and source of their power. Do people follow the leader because they are truly inspired by the leader’s vision? Or do they follow because they have no other choice? Managers who threaten the job security of others to ensure compliance, leaders who exploit their positions for personal gain, or individuals who rise through favoritism rather than merit – are manifestations of illegitimate power. Regardless of context, illegitimate power tends to erode morale, limit creativity, and foster toxic environments where people operate out of fear rather than purpose. Illegitimate power wields influence without moral justification, ethical values, or the consent of those affected. And because this form of power often derives from manipulation, coercion, intimidation, or exploitation rather than genuine respect for people, it undermines trust, breeds fear, and corrodes the ethical foundations of organizations and communities. Coercive leaders who use threats, punishment, or psychological pressure to force compliance, may certainly achieve short-term results, but at a significant long-term cost. Coercion strips individuals of their autonomy and creates environments of resentment and disengagement. People may comply outwardly, but internally they may withdraw, resist, or leave. Furthermore, coercive leadership discourages open dialogue and constructive feedback, which are essential for innovation, growth, and continuous improvement. When fear becomes the primary motivator, organizations and societies become stagnant, rigid, and vulnerable to collapse. And this brings us to an important question – what does legitimate power look like? On this issue, Peter Drucker offers unique insights. In his first book, The End of Economic Man (1939), Drucker discussed the issue of legitimate power (although he did not use the term legitimate power, but rather the justification of authority). Drucker believed that the power of rulers must possess legitimacy, a tradition that has continued in Western civilization since Plato and Aristotle. In Drucker’s view, legitimate power involves a functional relationship between power, social beliefs, and social realities: does power commit to social beliefs? At the same time, can it effectively organize social reality based on that commitment to create order? In his books, Concept of the Corporation (1946) and The New Society (1950), Drucker began to use both terms legitimate power and leadership simultaneously. Drucker would go on to argue that a government that commits to the well-being of its people can be said to have legitimate power. Over time, Drucker shifted his analysis of legitimate power from the political realm to social organizations. According to Drucker, if the management of a social organization (such as a company) claims that its principal purpose is to benefit employees, this particular focus would constitute an abuse of power. Instead, Drucker argued that the primary mission of an economic organization is to always achieve economic performance, thereby contributing to society – and this is in fact, the source of the legitimacy of corporate management's power. Of course, a company is also a community. For employees, management undoubtedly holds power and must exercise it. However, the legitimacy of management’s power does not come from the commitment to benefit employees, but rather from two functions: 1. Through institutional design and innovation, shaping effective community communication, thereby enabling middle-level and lower-level employees to gain an overall vision of the organization. This allows employees to have a managerial attitude. 2. By setting clear and reasonable performance standards, prompting employees to take responsibility and achieve success through effective work. If management can perform these functions within the organization, then it is considered to exercise legitimate power. In Drucker's early works, exercising legitimate power was almost synonymous with leadership. Drucker was not enthusiastic about discussing the personal style or charm of leaders, and he was even less inclined to associate leadership with a mystifying ability to persuade others, especially if such persuasion appealed to propaganda, indoctrination, or mental manipulation. For Drucker, discussing leadership primarily meant enabling power to function effectively. Therefore, leadership is not a matter of individual leaders' techniques and styles, but rather a matter of the responsibility and function of power itself. We can surmise from these functions that legitimate power aligns with the goals, beliefs, and aspirations of the people being led. Leaders who wield this kind of power do not need to resort to threats or manipulation. Instead, they inspire, guide, and collaborate. Their authority is accepted because it is seen as fair, earned, and beneficial to the collective. It is vital to foster leaders who operate from legitimate power—power that is granted through trust, expertise, shared values, and recognized authority. Legitimate power is grounded in the formal authority granted to a manager through their role within an organization, but its true strength comes from how that authority is exercised. Unlike coercive power, legitimate power is perceived as rightful and appropriate because it is based on clear expectations, mutual respect, and established structures. When managers consistently act with fairness, integrity, and transparency, their authority is more likely to be accepted and trusted by their teams. This creates a healthy power dynamic where employees feel secure in leadership decisions, understand their roles, and are motivated to contribute toward shared goals. Managers can build legitimate power by aligning their actions with the organization's values and demonstrating competence, consistency, and accountability. For instance, making decisions that reflect the organization’s mission and treating all team members equitably strengthens a manager’s credibility. Communication is also key—leaders who listen actively, provide clear direction, and explain the rationale behind their decisions foster trust and buy-in. Investing in personal growth, staying informed, and modeling a strong work ethic all reinforce the perception that a manager has earned their position and is acting in the best interest of the team and the organization. When managers lead through legitimate power, the benefits to the organization are substantial. Teams are more engaged, morale improves, and collaboration increases because people trust the leadership and feel aligned with the organization’s purpose. This creates a positive feedback loop where employees are more likely to take initiative, innovate, and remain committed, reducing turnover and boosting overall performance. In essence, legitimate power forms the foundation of a sustainable leadership culture—one that empowers individuals, strengthens organizational integrity, and drives long-term success. Developing leaders who influence through legitimate power requires a shift in how we define and nurture leadership. It involves prioritizing emotional intelligence, ethical reasoning, transparency, and empathy. Such leaders model integrity and authenticity, aligning their decisions with shared values and long-term visions. They create environments where people feel valued, heard, and empowered. In turn, this fosters loyalty, engagement, and a strong sense of purpose. To build healthier workplaces and more just societies, we must champion leaders who embody legitimate power: those who influence not by fear, but by vision, credibility, and alignment with shared values. This approach not only promotes ethical leadership but also cultivates trust, innovation, and collective well-being. References Drucker, P. F. (1946). Concept of the corporation. New York: John Day Company Drucker, P. F. (1939). The end of economic man: A study of the new totalitarianism. New York: John Day Company Drucker, P. F. (1950). The new society: The anatomy of the industrial order. New York: Harper Service, R. (2005). Stalin: a biography. Belknap Press of Harvard University Press. Weber, M. (1965). Politics as a vocation. Fortress Press.
