Competency ambidexterity to achieve leadership excellence and reduce derailment risk in a globalized world: a cross-cultural study

Purpose This paper explores the link between leadership derailment risk and competency ambidexterity in a digitalized global environment. It also investigates the impact of balanced skills on leadership success in collectivist and assertive cultures. Design/methodology/approach A mixed methods approach is employed using survey data from 766 American and Japanese managers and eight interviews across four diverse cultures. It uncovers the intricate relationship between leadership derailment risk and competency ambidexterity. Findings Optimal competency ambidexterity lowers the risks of leadership incompetence (operationalized as derailment) but through distinct configurations of current and needed competencies, which both competencies should be congruent at high levels in uncertain environments. Furthermore, moderately high competency levels mitigate derailment risk in collaborative cultures (Japan and China), while very assertive cultures (USA and Netherlands) require high competencies to lower derailment danger and sustain leadership effectiveness. Practical implications Leaders must maintain competency ambidexterity, adapting to diverse contexts in our dynamic world. Recognizing cultural nuances is essential for enhancing managers’ skills in global talent management. Originality/value Cultural values shape competency configurations and managers should balance organizational and personal competencies for effective leadership. Qualitative insights complement quantitative data.