The leader has grown Tencents using transformational leadership style, which is also in line with his vision in the direction of continuous innovation, encouraging employees to experiment and has provided a unique model to inculcate the innovative spirit. For instance, the number was three in the case of the study Internationalization of small- and medium-sized enterprises: a multi case study [30], four, in the case of the study Competitive product-service systems: lessons from a multi-case study [31], and 10 in the case of the study Knowledge management critical failure factors: a multi-case study [32]. Leadership. This method required concentration of researchers and projects in one spot. Bill Gates clearly fits in the description of an innovator, a pioneer, and a supporter of organized learning and growth [45, 67, 71, 72, 73]. A recurring leadership style in this paper is the transformational le adership style which, according to Northouse (2004), is "one of the current approaches to leadership that has been the focus of much research since the early 1980s" (p. 169). This is the first search effort that proves the link between the visionary leadership framework and firms that experienced disruptive successunicorns. A charismatic leader is a person, who has the ability to influence people and who, consequently, has some controlling power over them [9]. Home prices slumped for a third-straight month in September; Twitter quietly stopped enforcing its Covid-19 misinformation policy; meet the youngest honorees on Forbes 30 Under 30 2023 list; and more. Updates? Here's an overview of eight common leadership styles, from autocratic to visionary, with a look at the benefits and challenges of each style: 1. In 1976, back in Silicon Valley, Steve Jobs and his former friend, Stephen Wozniak, worked on a computer design of their own, the Apple I [39]. Tencent started based on a revolutionary innovation, Internet-based QQ service. What do they fundamentally do wrong? Taobao did not charge a fee but made money from online services and advertising. Ia dilahirkan dari seorang ibu yang bernama Huiqing Huang dan seorang ayah yang bernama Ma Chensu. Shenzhen is an ideal place to locate for Hardware & IoT, Ecommerce & Retail and Marketing & Sales startups. 7. [31], Along with four other classmates, Ma Huateng went on to co-found Tencent in 1998. 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. Ma himself was hailed by Time magazine in 2014 as one of the world's most influential people. Tencent, which owns a stake in. A service starts with the satisfaction and needs of its users in mind and is de ned by those two things, he wrote on WeChats internal platform in April 2017. First, they adopted BASIC, a programming language used at the time on larger computers, as the core of their work. 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. READ THE LATEST ARTICLE 16 Jan 2023 4 business administration skills every leader should have As stated in Tencent's 2020 official interim report, it makes revenue from its four major lines of business as enumerated below; Value added services - RMB 65 billion, a 35% year-on-year . In May 2005, Facebook received additional money from a venture capital firm (US$12.7 million) [74]. But theyre allergic to rules. Some would say its part of the governments surveillance system that through contentious social credit scores, Tencent can ll a gap in Chinas nancial system by taking a big-brother lens to citizens purchasing behaviour. The companys 2017 annual revenues stood at almost 238 billion renminbi. North America, Western Europe and Eastern Asia, (2) the chosen corporations should be at the highest possible position in the rank of global top 100 companies as per market value [29], and (2) those firms should have become industry leaders in (a) a relatively short period of timeless than 20years, and (b) after leveraging some competitive advantage based on discontinuous innovation. The internet sector in China is politically policed, but it is also lightly regulated. On being a pioneer: Lots of companies dont succeed over time. WeChat hit most global markets in 2012. 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. The Tencent Group (HKG: $0700 ) has developed a good understanding of the consumer behaviour in the Chinese digital market after years of dominating the market - and also refined a rather unique business model. 111, "Ranked: Most Powerful People In The World, 2020", "Tencent's Pony Ma is Asian tech spaces' new Warren Buffett", "Internet mogul Pony Ma named most generous Chinese philanthropist", "Tencent Rally Adds Billions to Chairman's Philanthropy Pile, Highlights China Influence", "China Billionaire Horse Race: Tencent's Ma Huateng Is Asia's Richest Again", "Asia's Tech Scene Gets a New Warren Buffett", "After Alibaba Holdings, Tencent makes first investment in Indian firm", "Asia's Richest Man Jack Ma Has Become Much Wealthier This Year - See The Number", "Tencent Chief Overtakes Wanda's Wang as China's Second-Richest Person", "Ma Huateng became one of the top 10 richest men in the world, surpassing Larry Page and Sergey Brin", "Tencent's Ma Huateng is China's second-richest man on WeChat mania", "Tencent's Ma becomes China's second-richest man", "Tencent: The Secretive, Chinese Tech Giant That Can Rival Facebook and Amazon", "Pony Ma Biography - life, family, name, young, born, time, year, Career, Sidelights - Newsmakers Cumulation", "Language Log A New Morpheme in Mandarin", "Tech in Asia - Connecting Asia's startup ecosystem", "Internet Users In Malaysia Are More Active On WhatsApp And Facebook Than Those In US, UK And China [REPORT]", "What are the next big things in the world of high technology? In 2017 Tencent opened its rst data centre in Silicon Valley and announced plans for ve more outside China. Ortega also is, as most of the previously analyzed leaders, an introvert. 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. Some Jobs words, recorded in the mentioned documentary Triumph of the Nerds [45], can give a sense of his ability for creating positive and inspirational visions [18]: To me, the spark of that (birth of personal computer industry in Silicon Valley in the early seventies) was that it was something beyond the sort of you see every day. 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 . Exxon Mobil, Berkshire Hathaway, Wells Fargo, and Johnson and Johnson [29]. Please refer to the appropriate style manual or other sources if you have any questions. Manag. Later, Microsoft also played a key role in another emerging industry: gamingXbox [68, 69, 70]. User first Jack Ma, the former English teacher who founded Alibaba, is the antithesis of his namesake: fting world leaders, setting bold targets and his penchant for shooting from the hip leave his minders. 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]. Internet giant Tencent founder and CEO of Ma Huateng, worth $50 billion, has surpassed Alibaba Co-Founder Jack Ma 's $48 billion fortune to become China's richest person, according to the. That's why the need for online management is increasingly urgent. 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). He is also a business leader. He reportedly owns property in Hong Kong and art pieces worth US$150 million. This style is applicable for the leaders in different sectors such as political, business, or even in religious sectors. In 1993, he graduated from Shenzhen University with a Bachelor of Science in computers and applied to engineering. Ma quickly embraced open-source software. [8][9] In 2018, he was named one of the "Most Powerful People In The World" by the CEOWORLD magazine. Ma Huateng (also known as Pony Ma) chairs Chinese internet giant Tencent Holdings. One is Alibaba founder Jack Ma, who is fairly well known in the States, and the other is Ma Huateng, . Later, the company provided users with a range of innovative online lifestyle services. These services included online media outlets, e-commerce outlets, gaming options, social media sites, online advertising, and an online payment option [94]. He didnt want to lead, he said. It is the biggest mobile gaming franchise in the world, surpassing the revenues of Microsoft and Sony. Dear colleague, dear friend: these are the words that, both, Ortega and Steve Jobs, used in letters addressed to employees [81]. Feature comparison between studied firms and founders. Six years later, in 2005, Alibaba attracted the attention of Yahoo!, which bought a 40 percent stake. It has stakes in electric car maker Tesla and music-streaming service Spotify, which in turn has a stake in its Tencent Music. 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. Teams also have freedom to compete. Nationality Chinese. Entrepreneurial leadership framework appears to be a suitable option for the study in terms of effectively measuring the entrepreneurial aspect in leadership, but it does not really screen or measure elements that may impact discontinuous innovation [17], which would be mandatory for the chosen context. WeChat is the worlds largest instant messaging application, with 48 percent of Internet users in the Asia-Pacific area using it in 2015. Tencents third source of revenue is an ecosystem built around its one billion users. 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. Taking into consideration the profile that could be expected in the context of startups and an innovation-led context [1, 2, 3], best framework candidates for further evaluation would be (1) transformational leadership, (2) charismatic leadership, (3) entrepreneurial leadership, and (4) visionary leadership. Besides, Tencent has earned its premier status and, as long as Ma keeps pushing his principles, perhaps the rest of the world can adopt them as their own. After his return to China, Ma founded China Pages, a website page developer for Chinese businesses. In Hong Kong, he has a rebuilt palatial mansion of 1,820 m2 (19,600 sq ft). 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. At a tech conference in Singapore, I discussed censorship. The founders like to be simple and dont like to be politicized. Facebooks initial success was therefore based on one single but relevant disruptive innovation: social media [71, 74]. To date our community has made over 100 million downloads. By 1869, he thought that he had made enough progress with a duplex telegrapha device capable of transmitting two messages simultaneously on one single wireand abandoned telegraphy for full-time entrepreneurship. His passions kept changing over the time. This leadership style shaped Tencent's market/hierarchy orientation culture and teamwork/innovation orientation culture respectively. Both students were interested in finding a way for extracting useful information from the mass of data in the Internet. In 1999, Alibaba Group, an online trading company, was established by Jack Ma, a former English teacher, in Hangzhou City, China [90]. Based on the streamlined approach to replenishment, Ohno devised the Toyota Production System, which is more broadly known as lean manufacturing or Just-In-Time (JIT) inventory system. By 1889, he had full ownership or participation in many electricity-related companies that got then merged. https://www.britannica.com/biography/Ma-Huateng. Inditexs supply chain operations focus on three aspects: maximizing resources used, minimizing inventory, and minimizing lead times [78]. For leadership, we have to see things that other people dont see [92]. [30] He also worked for Shenzhen Runxun Communications Co. Ltd. () in the research and development department for Internet calling services. Visionary leadership is comparable to Lewin's authoritative leadership style. In 2010 mobile use was skyrocketing: the surge was a new opportunity to exploit. He considered the next generation better positioned to dream up the next big product idea. Pony Ma's leadership style can be as unusual as his nickname. According to Ma, "giving up is the greatest failure. Within 2weeks, half of the students had signed up [74]. Open Access is an initiative that aims to make scientific research freely available to all. From 1977 to 1985, Apple was managed by six Chief Executive Officers (Finkle & Mallin, 2010). How has he created the capacity to pivot in anticipation of and response to changes? Analysts estimate that more than two thirds of the almost 1.4 billion population use Tencent. The first chosen location was Menlo Park, in New Jersey. Evolution at Tencent means the capability to improve, self-correct and stay focused. Based on the contingency leadership theory,this paper analyzes the leadership style of Ma Huateng and examines the impact of his leadership style evolution on Tencent culture.Ma's leadership style changed from transactional leadership to transformational leadership.These two leadership styles shaped Tencent's markethierarchy orientation culture With this high score, he would have been able to attend Tsinghua University in Beijing, or Fudan University in Shanghai. In essence, Googles business model has been labeled as continuous disruptive innovation [51] or continuous innovation [50]. He is the founder, chairman and chief executive officer of Tencent, Asia's most valuable company, one of the largest Internet and technology companies, and one of the biggest investment, gaming and entertainment conglomerates in the world. Established Western platforms such as Facebook are embedded in peoples crystal-screen portable friends. In that trip, he visited one of the supermarkets of the Piggly Wiggly chain [84, 85]. Dev. Yizhou Chen originated from government, therefore he took care of HR, legal, administration and government relations, Ma explained. Tencent also offers web portals, e-commerce, and multiplayer online gaming, among other things. As the most popular industries in Shenzhen . . Part of Mas deck-spreading strategy is to take Tencent worldwide, in line with the Chinese governments One Belt, One Road national grand plan. Owing to its continual innovation, its a fearsome competitor and has long sat at the same table as Western tech giants. There is some dispute among scholars regarding the quality of Pages leadership strength, especially during his early tenure [56]. However, 2years later, he closed his first company because of strong competitors such as Chinesepage [91]. The rm supports a mind-bending number of apps directed at improving peoples everyday digital lives, including its own version of Uber, Didi Dache. Openness Please enter a keyword and click the arrow to search the site, How the man behind the Chinese goliath keeps innovating. It was even risky, he thought, to rely too much on the founding team. Amazons Je Bezos created a similar mandate in 2002. Ma Huateng was born in Badagang, Guangdong (now Dongfang City), China, on October 29, 1971, into a humble household. Looking at the history of Alibaba, Jack Ma is good at adapting new strategies to gain . Tencent Holdings Ltd., also known as Tencent, is a Chinese multinational technology conglomerate holding company founded by Ma Huateng in 1998. [5], Speaking of censorship at a tech conference in Singapore, Ma was quoted as saying "In terms of information security management, online companies from any country must abide by a defined set of criteria, and act responsibly. In the future, it would be interesting to conduct more targeted research that could, both, give more details on the profile and the role of these leaders in the stated context and further describe the associated leadership attributes. For instance, he described Toyota in the following way: The Toyota style is not to create results by working hard. Only in the case of Larry Page, the achievements and profile of the leader appears to be, arguably, less remarkable than that of his own company. We believe, and then we see. An interesting quote in terms of leadership styleas a paradigm of invention versus innovation in practiceis this one: In America, when you bring an idea to market, you usually have several months before competition pops up, allowing you to capture significant market share. View our Privacy Policy to learn more. 2023 Forbes Media LLC. Because of his alternative approach to leadership, which BK is all about, we took a deep dive into what makes Nadella so special and why he's a leader to look . By mlavoie on June 1, 2019. On being a pioneer: In a world thats changing really quickly, the only strategy that is guaranteed to fail is not taking risks [75]. He gives importance to the ideas and strategies given by his employees. Ma has almost completely disappeared from public view after Chinese regulators shut down his fintech company Ant Groups IPO in late 2020. Tencent chairman and cofounder Pony Ma Huatengwho was the No. Hum. Ma also has sharp design insight. [33], After AOL (America Online) bought ICQ in 1998, the company filed an arbitration against Tencent with the National Arbitration Forum in the United States, claiming that OICQ's domain names OICQ.com and OICQ.net were in violation of ICQ's trademark. Inditex produces a significant amount of its production in-house and makes sure that its own factories reserve 85% of their capacity for in-season adjustments [77]. TENCNET PONY MA ZIXIN LUO(RITA) 4010255 Outline Outline Pony Ma's background TENCENT PONY MA'S MANAGEMENT STYLE CONCLUSION References list Pony Ma's Achievement LEADERSHIP STYLE Pony Ma' background Pony Ma's background He was born on October 29, 1971. By 1990, Gates was the PC industrys king [67]. From the revenue distribution of Tencent in recent years, we see an incredible increase in FinTech and business services from 2018. Tencent's popular social messaging app WeChat has more than 1 billion users. Alternatively, Call of Duty or Candy Crush might be the vehicle that realises the global ambitions. His proposal was based on reducing production costs by using less expensive materials and more efficient manufacturing systems. [34] With the pager market declining, Ma improved the messaging platform by allowing QQ users to send messages to mobile handsets. League Business Leader. Leadership style refers to the way the leaders represent their ways of running an organization. Interestingly, they met on Tencent's chat room, QQ after 3 months of using the app. Facebook was banned in China in July 2009, the same year WhatsApp launched. (Co-founder and Former Executive Chairman of 'Alibaba Group') Jack Ma is a Chinese businessman, investor, and philanthropist. [36], Mimicking Microsoft, Ma created two competing teams of engineers in 2010 and charged them with creating a new product. Not in China. Ma Huateng has built Tencent through transformational leadership behaviours, including his vision of continuous innovation, encouragement of experimentation, and modelling that innovative spirit. 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. [Nikola] Tesla invented the electric power we use, but he struggled to get it out to people. First, the ubiquitous messaging app WeChat. 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. 5. 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. Tencent CEO Ma Huateng, also known as Pony Ma, started out making $176 a month and now has a net worth of $45 billion. Jobs and Wozniak later designed a far better product, the Apple II [39]. A self-confessed geek who trained in computer science, he knew about the tech people wanted to use. 5 On Chinas 100 Richest 2022 Despite A Drop In Wealth, Taiwan Billionaire Rudy Ma, Founder Of Yuanta Financial Holdings, Dies At 82, Three Of Chinas Richest Lose More Than $16 Billion In One Day As Stock Rout Hits Hong Kong-Listed Companies, Tencents Pony Ma Falls To No. Creating back doors was a ring oence. Ma Huateng is a proponent of the Chinese Communist Party. UNITED KINGDOM, Leadership - Advancing Great Leadership Practices and Good Leaders, Leadership - Advancing Great Leadership Practices and Good Leaders [Working Title], Ranked in the list of the 20 most influential Americans of all times [, Ranked in the top of the greatest innovators of all times according to the Lemelson-Mit Invention Index [, Lean manufacturing, Just-In-Time (JIT), and derivative approaches created by Ohno are still currently used by a large percentage of manufacturing firms [, Industria de Diseo Textil, S.A. (Inditex). Best known as the brains behind the WeChat messaging app and Player Unknown's Battlegrounds (PUBG), Pony Ma is a man who knows how to turn an idea into hard cash. In 2007, Alibaba.com raised US$1.7 billion dollars in its initial public offering (IPO) in Hong Kong [91]. How? Tencent is also the world's largest gaming company, and amongst the world's largest technology investors, social media networks, and web/mobile app makers. Our editors will review what youve submitted and determine whether to revise the article. By setting the right cultural tone. In 1859, Edison quit school and began working as a train boy on the railroad between Detroit and Port Huron. Alibabas business model bets a revolutionary innovation: Mas belief that the small-business-to-small-business online market offered much greater opportunity than the consumer-to-consumer one, the reason being that, unlike consumers, small businesses are willing to pay a membership fee [91]. Ma Huateng. Elements of disruptive innovation can be found in at least four of the items in Apples list: personal computers, music distribution, tablet computing, and digital publishing. Unlike other studies [1, 2, 3, 30, 31, 32], the presented multi-case study focuses on a very specific business context: that of the creation of exceptionally successful firms such as Apple, Google, Facebook, or Tencent. Tencents market hierarchy and teamwork innovation orientation cultures were shaped by these two leadership styles, respectively. Everything started in 1995, during a trip to the USA, when Jack Ma learned for the first time about website portals and Internet. But Mas early focus was on what he knew. They dont have to unlearn bad habits. It is the same that causes people to wantna be poets instead of bankers, and I think this is a wonderful thing. In the case of entrepreneurial leadership, Gupta, MacMillan, and Surie came up with a list of 19 leadership attributes that appeared to be the most relevant [17]. He is married to Wang Dan-ting. What about Tencent 3.0? Pony Ma took his gaokao (national university entrance exams) from July 7-9, 1989 and his score was 739 (out of a possible 900). Ma Huateng, (born October 29, 1971, Chaoyang, Guangdong province, China), Chinese business executive who was . The resulting corporation was General Electric Company (GE) [61, 63]. 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