10 principles for great leadership, according to Disney's Bob Iger. Ma Huateng has built Tencent through transformational leadership behaviours, including his vision of continuous innovation, encouragement of experimentation, and modelling that innovative spirit. Shenzhen also ranks at number 3 in China, and 4 in East Asia. He has an estimated net worth of 38.7 billion. Jack Ma's wealth gain for the year all but evaporated, after Alibabas stock was dragged lower on renewed worries over the companys growth prospects. A year later the company launched the Internet-based QQ service (then called OICQ), which soon became one of Chinas most-popular instant-messaging platforms. Tencent. Reshma began her career as an attorney and activist, and founded Girls Who Code (GWC) after witnessing first-hand the gender gap in the field of Computer Science while running for US Congress (fun fact: Reshma was the first South Asian woman to run . According to Ma, "giving up is the greatest failure. It was a revolution. Under Ma s leadership, Tencent has moved into web portals, social networks, multi-player online games and e-commerce, making the company today an Internet powerhouse and China s number one brand. Zara soon became not only an internationally famous chain but also the flagship of the holding company Inditex, which he founded 10years later [76]. Ultimately, though, the combination of Onhos leadership and revolutionary innovation transformed Toyota from being an average car maker in Japan to becoming the number one global leader. Larry Page met Sergey Brin when Larry entered the doctorate program at Stanford. And I think that same spirit can be put into products. This reality implies that collective or organizational outputs may not always be prioritized or maximized, since that is not the main objective for this type of leaders [9]. [43] References [ edit] Jack Ma, the cofounder of Chinese e-commerce giant Alibaba, is said be in Hong Kong to meet friends and finance executives, the Hong Kong Economic Times (HKET) reported on Friday, citing anonymous sources. [33], Since Tencent's prized service OICQ was offered free of charge, the company looked to venture capitalists to finance its growing operational costs. Instagram: biographyscoop. Ma Huateng is the originator, CEO, and Chairman of Tencent Holdings Ltd. As a world, were doing a better job of that. Tencent provides mass media, Internet and mobile phone value-added services including web portals (QQ.com), social networks, popular instant messenger (Tencent QQ), online games, e-commerce, and series of . Mas management style shifted from transactional to transformational leadership. Jack Ma is more aggressive on new initiatives and strategies whereas Pony Ma adapts a more stable strategy. This method required concentration of researchers and projects in one spot. In May 2005, Facebook received additional money from a venture capital firm (US$12.7 million) [74]. [32], Talking about the founding of Tencent, he told China Daily in a 2009 interview that "If I have seen further, it is by standing on the shoulders of giants", paraphrasing a quote attributed to Isaac Newton and referencing the similarities between ICQ and OICQ. On the other hand, the Eastern Asian disruptively successful companies that ranked high enough in the global top 100 were Toyota Motors, Alibaba and Tencent15, 22, and 32 [29]. He applied the term transformational instead of transforming. Bass argued that transformational leadership has four constitutive parts [6, 7] which are (1) idealized influence, (2) inspirational motivation, (3) intellectual stimulation, and (4) individualized consideration. By giving the project the green light, Ma, in eect, gave Zhang full licence to cannibalise the existing QQ product. Ma Huateng (also known as Pony Ma) chairs Chinese internet giant Tencent Holdings. Employees share insights, software and entire bodies of code from other parts of the business. China, Industria de Diseo Textil, S.A. (Inditex, owner of Zara and other clothing retailing chains); Amancio Ortega. In this Special Edition of the AIB Review, leading industry professionals and members of AIB's Marketing and Entrepreneurship faculty deep dive into the need-to-know industry trends and issues that lie ahead. User first This chapter reviews relevant literature in order to identify the leadership framework and profile that may better characterize entrepreneurs and business leaders that eventually founded or developed disruptively successful firmspopularly known as unicorns. Next, the chapter describes a conducted multi-case study that demonstrates a strong correlation between the positive checkmarks in the selected leadership frameworkvisionary leadershipand the profile of the leaders of nine different international corporations that became industry leaders in less than 20years (Apple, Google, Microsoft, Facebook, General Electrics, Toyota, Alibaba, Tencent, and Inditex). Jack Ma. The power of cross-cultural collaboration, Leading digital transformation: what you must know, Discover fresh perspectives and research insights from LBS. Ma Huateng, also known as Pony Ma, is a Chinese billionaire entrepreneur. Pages personality traits, like his introverted tendencies, may not fit the profile of a charismatic leader [55, 56, 58, 60], but he definitively does in that of a visionary leader. Jack Ma, originally Ma Yun, (born September 10, 1964, Hangzhou, Zhejiang province, China), Chinese entrepreneur who was head of the Alibaba Group, which comprised several of China's most popular Web sites, including the business-to-business marketplace Alibaba.com and the shopping site Taobao.com. Here's a countdown of the 20 richest people on the planet by net worth as of spring 2022, as well as a look at who was bounced from Forbes' 2021 list. In those days, Toyota was much less productive than its Detroit-based competitors, the Big ThreeGeneral Motors, Ford, and Chrysler [83]. He then worked as a researcher for China Motion Telecom Development Ltd. before founding Tencent in 1998. Tencent also create Qzone, which boasted 670 million monthly users by 2015 [94]. Therefore, the framework that appeared to suit the best in terms of analyzing environments that combine entrepreneurship and innovation is that of visionary leadership [20, 21, 22]. [37], In December 2015, Ma announced that Tencent would build an "internet hospital" set up in Wuzhen that will provide long-distance diagnoses and medicine delivery. Part of Mas deck-spreading strategy is to take Tencent worldwide, in line with the Chinese governments One Belt, One Road national grand plan. Later, Microsoft also played a key role in another emerging industry: gamingXbox [68, 69, 70]. Tencent wants to enable greater connectivity across Chinese industry, leveraging the capabilities and expertise it has built to serve the billion-plus users of its consumer-facing platforms,. The success of Inditexand H&M, its main competitoris ultimately based on a revolutionary innovation called fast fashion [77]. The rm supports a mind-bending number of apps directed at improving peoples everyday digital lives, including its own version of Uber, Didi Dache. In 1999, Mas company launched QQ service (then called OICQ), which quickly became Chinas most popular instant-messaging platform. He is said to possess property in Hong Kong as well as art items worth . Please try again later. In 2010 mobile use was skyrocketing: the surge was a new opportunity to exploit. Ma Huateng is a business magnate, an entrepreneur, an engineer, a philanthropist, and an investor. While the leadership style of Westerners haven't evolved much in the last decade, the new generation of Chinese leaders have made a great leap forward by . Tencent cofounder Ma Huateng (also known as Pony Ma) led the dive with a $6.1 billion wealth plunge, followed by Nongfu Spring Chairman Zhong Shanshans $5.6 billion and Country Garden Co-chairman Yang Huiyans $4.7 billion. April 6, 2021. Then, other manufacturers of IBM-compatible PCs also turned to Microsoft in search of its products. By late 2015 QQ had approximately 850 million monthly active users, and WeChata mobile instant-messaging app that was first introduced in 2011had some 650 million users. It can be observed that, in 89% of the cases, the leaders either outperform their already outperforming firms, in terms of value rankingsBill Gates, Mark Zuckerberg, Amancio Ortega or enjoy even more prestige and recognition than the companies that they started up. Chaoyang, Shantou, Guangdong. Let us know if you have suggestions to improve this article (requires login). The concept of transformational leadership was introduced by James MacGregor Burns in his book Leadership [4] and then further developed in Transforming Leadership: A New Pursuit of Happiness [5]. Jack Mas decline in net worth to $20.6 billion follows his retreat from the internet business empire he cofounded. . A Study of the Influence of Ma Huateng's Leadership Style Evolution on the Culture of Tencent: Based on the Contingency Leadership Theory. Leadership. In 2017, Fortune ranked him as among the top businessmen of the year. Tecent also operated the social networking site Qzone, which boasted more than 670 million monthly active users in 2015, making it the worlds third largest social network, behind only Facebook and YouTube. Next, the chapter describes a conducted multi-case study that tested the actual possible correlation between the chosen leadership framework and the profile of the leaders of their disruptively successful corporations. They dont have to unlearn bad habits. Nine is also a number in the range of similar studies conducted in the past. Tencent's market hierarchy and teamwork innovation orientation cultures were shaped by these two leadership styles, respectively. Chinas central bank, however, clamped down on the pilot in February 2018. Tencents earlier e orts include investing in the US-based Snapchat. Ma has an ABC AI, big data and cloud expansion strategy. You have to combine both things: invention and innovation focus, plus the company that can commercialize things and get them to people [59]. (sometimes unknowingly) work on variations of the same product lines, can create waste. Tencent developed an online gaming platform in 2004 and began selling virtual goods (weapons, gaming power) as well as emoticons and ringtones to support the games produced on that platform. Everything started in 1995, during a trip to the USA, when Jack Ma learned for the first time about website portals and Internet. [26] When his father, Ma Chenshu (), got a job as a port manager in Shenzhen, the young Ma accompanied him. The study described in this chapter explores how some leadership models may be linked to some exceptional occurrences, such as disruptive success. This label can be applied to startups or more maturebut not yet elitecompanies that, at some point, grew fast and became world leaders in a period of less than 20years. Ma is China's richest man, with a net . Ideas are not important in China execution is [95]. For instance, the rst major chat app in China wasnt WeChat; it was Miliao, which was produced by Xiaomi. He required complete openness and insisted that all Amazon teams plan and design service interfaces so they can be exposed to developers in the outside world. Leadership style refers to the way the leaders represent their ways of running an organization. In terms of being inspirational and a great team builder. The battleground is vibrant. Tencents people are in search of excellence. The launch of WeChat is a case in point. Acad. As of 2015[update], WeChat (, Weixin), is the largest instant messaging platform in the world, used by 48 percent of Internet users in the Asia-Pacific region. Ma quickly embraced open-source software. Unlike Western app constellations, Tencent combines as many features into one app as possible. [31] Inspired by the idea, Ma and his team launched in February 1999 a similar software, with a Chinese interface and a slightly different name OICQ (or, Open ICQ). Openness Analysts estimate that more than two thirds of the almost 1.4 billion population use Tencent. [10] Ma was a deputy to the Shenzhen Municipal People's Congress and a delegate in the 12th National People's Congress. In regard of the reasons why this type of profile is required in the studied context, one may be the fact that, in the case of disruptive innovation, nobody, even clients, may be able to forecast or imagine items such as the final functions and aspect of the products, the expected demand, and other features. In 2010, Ma imitated Microsoft by forming two competitive engineering teams and assigning them the task of developing a new product. His proposal was based on reducing production costs by using less expensive materials and more efficient manufacturing systems. His famous 10/100/1,000 rule reinforces Tencents user-rst philosophy. It is the biggest mobile gaming franchise in the world, surpassing the revenues of Microsoft and Sony. The list includes personal computers, music distribution, tablet computing, mobile phones and digital publishing. Ma Huateng dilahirkan di provinsi Guangdong, China pada 29 oktober 1971 dengan nama . Ma also has sharp design insight. Ma Huateng, (born October 29, 1971, Chaoyang, Guangdong province, China), Chinese business executive who was cofounder and CEO (1998 ) of Tencent Holdings Ltd., one of the worlds largest Internet companies. In 1975 William Henry Gates IIIknown as Bill Gates, a student then at Harvard University, and his friend, Paul Allen, partnered and founded a developing software company, called Microsoft [66]. 7. How has he created the capacity to pivot in anticipation of and response to changes? Eventually, there is no assumption on what the results would have been or would be if some other of these frameworks would have been tested in the study. Menlo Park hub was then succeeded by a larger laboratory in West Orange, New Jersey [53]. Publishing on IntechOpen allows authors to earn citations and find new collaborators, meaning more people see your work not only from your own field of study, but from other related fields too. For instance, he described Toyota in the following way: The Toyota style is not to create results by working hard. From mobile payments to taxi hailing, users can live their lives on one app. 1. Dear colleague, dear friend: these are the words that, both, Ortega and Steve Jobs, used in letters addressed to employees [81]. Creating back doors was a ring oence. [31] After the company raised $200 million in June's IPO, Ma quickly became one of the richest people in China's telecom industry. Ortega also is, as most of the previously analyzed leaders, an introvert. Ortega first applied this approach in a bathrobe business, Confecciones Goa, company that he founded in 1963. Legend of Yulong and Legend of Xuanyuan, two online games, increased sales by more than half, to US$5.1 billion, with a profit margin of US$1.5 billion. WeChat, a mobile instant-messaging application that was introduced in 201, soon gathered 650 million users [94]. Ma led his company's leadership committee on a two-day hike through the Gobi Desert for their off-site retreat last year, according to Bloomberg. [30] He also worked for Shenzhen Runxun Communications Co. Ltd. () in the research and development department for Internet calling services. After purchasing ICQ in 1998, AOL initiated an arbitration against Tencent with the National Arbitration Forum in the United States, alleging that OICQs domain names OICQ.com and OICQ.net were infringing on ICQs trademark. View our Privacy Policy to learn more. Our editors will review what youve submitted and determine whether to revise the article. But where there are losers, there are winners: Ma expects people to bounce back from losses, pick themselves up and start over. Mas visionary leadership is as uniquely prolific as that of Edison and Jobs. How? The article concludes that leadership style impacts corporate culture and that the evolution of leadership style has an impact on corporate culture change. All Rights Reserved. With this high score, he would have been able to attend Tsinghua University in Beijing, or Fudan University in Shanghai. Regardless of age and background, users want clear, simple, natural, easy-to-use design and products. Skill based approach emphasizes the leader's technical, human, and conceptual. If you havent registered yet, please register and log in. In the case of the selected framework, the results are the ones that tell if this choice was right. Still, there are little doubts that Page congregates the four attributes that define a visionary leader, as several authors already validated in their studies [18, 57, 58]. An important feature of Tencents dizzying success had been its ability to develop hot products quickly. This is the first search effort that proves the link between the visionary leadership framework and firms that experienced disruptive successunicorns. At a tech conference in Singapore, I discussed censorship. The original term transformational already implies the existence of some entity that experiences transformation, and it is not so suitable in the context of completely new startups [7, 19]. Ma and his co-founders built a digital platform business from scratch over two decades and they have one of the largest data treasure chests on the planet to show for it. Ma Huateng, (born October 29, 1971, Chaoyang, Guangdong province, China), Chinese business executive who was cofounder and CEO (1998- ) of Tencent Holdings Ltd., one of the world's largest Internet companies. Here are further demographic highlights of the leadership team: The Tencent executive team is 50% female and 50% male. FANGs Facebook, Amazon, Netix and Google preside happily over Silicon Valley. 18% of the management team is White. As well as empowering younger employees to take the lead, Ma and his team put in place simple rules. Also called the "authoritarian style of leadership," this type of leader is someone who's focused primarily on results and team efficiency. By 2016, it employed 40,000 people, up from 1,000 in 2004. No product starts perfect. It has also partnered with Oracle as a way of expanding rapidly into software-as-a-service applications. 3. Edison also was one of the first entrepreneurs to apply the principles of organized teamwork to the process of invention [65]. He is the founder, chairman. In order to choose the specific companies or cases, disruptively successful firms, the following three criteria were applied: (1) the pool of chosen companies should be located in, at least, three different geographical realms i.e. [40], According to the official Tencent website, Ma is a deputy to the 5th Shenzhen Municipal People's Congress and served in the 12th National People's Congress. (Co-founder and Former Executive Chairman of 'Alibaba Group') Jack Ma is a Chinese businessman, investor, and philanthropist. Chinas giants are famous for plucking the best from the West and localising products for a home crowd. Based on this history, there is no doubt that Taiichi Ohno was a visionary, an innovator, and a pioneer [18]. Still, Tencent has surged ahead and left national rivals like Baidu behind. He was born in 1971 in Chaoyang, Shantou, China. In. And how do we create it? A self-confessed geek who trained in computer science, he knew about the tech people wanted to use. On the opposite, transactional leaders, which frequently are less successful in terms of outcomes [5], usually adopt four possible approaches which are (1) contingency rewardrewards in exchange of support, (2) management by exception (active)monitoring and just acting when a corrective deed is necessary, (3) management by exception (passive)no monitoring and just acting when a corrective deed is necessary, and (4) laissez faireleadership avoidance [6, 7]. Tencent has 85,858 employees, of which 46 are in a leadership position. After the AOL case, Ma decided to expand the business portfolio of Tencent. Mas tolerance of failure is strategic. Contact our London head office or media team here. Tencents market hierarchy and teamwork innovation orientation cultures were shaped by these two leadership styles, respectively. Northouse explained, "Transformational The first chosen location was Menlo Park, in New Jersey. Effectiveness of leadership style. Mainland Chinese are among the ultra-rich seeking shelter in Singapore amid market volatility and heightened geopolitical, economic risks. 5. On being an innovator: Invention is not enough. 6. Zhang was concerned that Kik or similar products could rival Tencents QQ. The World's 10 Most Powerful Executives This year's Forbes list (May 10, 2018) of the World Most Powerful included 75 namesone for every 100 million people on earth. In essence, Googles business model has been labeled as continuous disruptive innovation [51] or continuous innovation [50]. Is it a legitimate global player? As for external competition, Tencent has experienced plenty. Ma Huateng Leadership Style Ma's management style shifted from transactional to transformational leadership. Tencent launched its own portal (QQ.com) in 2003 and entered the online games sector. Brief introduction to this section that descibes Open Access especially from an IntechOpen perspective, Want to get in touch? But Tencent came of age before mobile. These two leadership styles shaped Tencent's markethierarchy orientation culture and teamwork\innovation orientation culture respectively. Tencent also offers web portals, e-commerce, and multiplayer online gaming, among other things. Corrections? In Hong Kong, he has a rebuilt palatial mansion of 1,820 m2 (19,600 sq ft). They called the new search engine Googlea name derived from a misspelling of the word googol [48]. Established Western platforms such as Facebook are embedded in peoples crystal-screen portable friends. Ma Huateng. He is the founder, chairman, and CEO of Tencent, which is China's most valuable company. 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