The Role of Leadership and Strategic Decision on Regional Development in Developing Countries
Purpose: This research paper is focusing on the role of leadership and strategic approach for the best institutional model toward balanced regional economic development (RED) in developing countries. The research paper examines the cohesion among leadership models and decision making structures toward strategic model for regional economic development in Kosovo. Final purpose is setting up the suitable decision making structure across all regions in the country that through proactive and authentic leadership, as well effective institutional structures creates capacity in each region for better utilization of the resources. Design/Methodology/Approach: The paper methodology used a mixed-methodological approach including both qualitative and quantitative data collection and appraisal, which included desk review covering existing literature at national and international level, semi-structured interviews with key stakeholders, relevant reports and other related documents. Findings: The research paper has finded that there are significant relationships among leadership role, organizational structures and regional development. Acording to the paper a suitable leadership model followed by responsible institutional framework and decision making structures is usualy the most important factor influencing growth at the regions. Actually in Kosovo regions and municipalities lack the capacities to create an effective environment for private sector development and job creation for all communities. The paper analysis shows that both-leaderhsip and decision making structure amplifies the institutional structure and institutional resources‘ effect on the better performance of regions. Practical Implications: The practical implications deriving from this research concludes that future approach to RED should be based on balanced distribution of responsibilities between different governmental levels with clear vision and leadership, as well as with much more advanced institutional structures and detailed work design. This means that creative leadership will ensure not only better performance in economical development aspects but meanwhile will adjust better to external changes and work more efficiently. Originality/Value: The research paper shows its originality in a specific case study and the value of this is finalized with the regional economic development model that will serve as one stop shop at different regions supporting the economic and overall development.