In this classic HBR article, Harvard professor Rosabeth Moss Kanter explores the challenge of linking businesses to the global economy while also maintaining local vitality. Kanter argues that success in the future will come to companies, large and small, that can meet global standards and tap into global networks. Similarly, cities, states, and regions that do the best job of connecting businesses to the global economy will thrive. Kanter emphasizes the importance of businesses being responsive to the local communities in which they operate and communities creating a civic culture that attracts and retains companies. The author surveyed five U.S. regions to understand their strategies for improving quality of life and identified three ways in which regions can connect to the global economy: as thinkers, makers, or traders. The Spartanburg-Greenville region serves as a successful example, with its exceptional blue-collar workforce attracting numerous international companies.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Success will come to companies that meet global standards and tap into global networks | Companies need to be globally connected | Companies will be globally connected and meet global standards | Globalization and access to global markets |
| Small and midsize companies are joining corporate giants in exploiting international markets | More companies expanding internationally | More companies will be internationally active and competitive | Access to international growth markets |
| Civic leaders worry about the impact of global forces on local businesses | Balancing local vitality and global economy | Communities will need to balance local needs and global economic forces | Desire to retain local economic vitality |
| Globalizing businesses must be responsive to the communities they operate in | Businesses need to be community-oriented | Businesses will be more responsive to local communities | Desire to avoid conflicts between global and local interests |
| Communities must create a civic culture that attracts and retains companies | Creating a business-friendly environment | Communities will create environments that attract and keep businesses | Desire to stimulate local economic growth and job creation |
| Regions can invest in capabilities as thinkers, makers, or traders to connect to the global economy | Investing in different economic strengths | Regions will have specialized capabilities to connect to the global economy | Desire to leverage unique regional resources |
| Spartanburg-Greenville region is an example of a world-class maker | Development of a strong blue-collar workforce | More regions will develop specialized strengths to attract businesses | Availability of a skilled workforce and infrastructure |