Over the years, I have seen many executives in Iraq take the so-called “armored vehicle” approach. Instead of integrating into society, they remain strict outsiders, living in isolated compounds and minimizing interaction with locals. While it may seem easier at first, this kind of emerging market leadership inevitably backfires, creating barriers between leaders and communities that contribute to project failures. Meanwhile, servant leadership-style approaches focused on integration rather than isolation show remarkable success.
The Armored-Vehicle Executive: Isolation that Breeds Distrust
Consider how a military armored vehicle creates a barrier between the person inside and those outside, a “me versus them” feeling. This tears down the idea of a team, reasserts authoritarian hierarchies, and generally breeds suspicion and distrust. I have seen this armored-vehicle approach manifest in many ways in Western multinational companies (MNCs) operating in Iraq.
There was the oil executive who chose to stay in Kuwait rather than Iraq, taking a helicopter across the border to reach the drilling sites. Another executive I met held a similar story. Excited to learn that they had worked in Iraq, I inquired as to their impressions, only to be told, “I didn’t actually go to Baghdad. I just visited the company site.” And there was the executive I saw shouting at local workers like an army sergeant, an authoritarian leadership style that soon backfired.
These modes of emerging market leadership create predictable patterns of failure. They build ill will among locals, who see these “outsiders” (as they have positioned themselves) as taking local resources while providing zero local benefit. As communication breaks down and misunderstandings multiply, many leaders face challenges that make it practically impossible for them to reach their project goals, forcing companies to abandon projects and sell contracts. It’s a common cycle.
The Businessmen Riding Baghdad’s Public Buses: An Integrative Approach
I have noticed that the armored-vehicle leadership style seems more common among Western MNCs in Iraq, especially among Americans—perhaps because of the complex history of the US military presence in the country. However, not all foreign MNCs follow this authoritarian “us versus them” model. I remember my surprise when I first saw Chinese businesspeople taking public transportation in Baghdad, for example, a small but simple way to integrate into everyday society.
I have seen Eastern companies integrate in other ways as well. They are more likely to have representatives who speak the language and to give back to the local community, for example, by building hospitals and clinics. I have even seen companies provide food and water for the Arbaeen pilgrimage, one of the largest religious gatherings in the world. Along the pilgrimage path, food and water are provided by members of the public and local businesses. I remember thinking what a smart move it was when I saw a foreign oil company had set up a stand to hand out free food. It was a strong sign of support.
Still, at the end of the day, these companies are there to do business, and they do not lose sight of that priority. I have seen Chinese businesspeople drive fierce negotiations in Iraq over contracts, often taking their local counterparts by surprise. They may do well in those negotiations, in part because they have taken the time and effort to “break the ice” with the locals by learning the language and participating in their communities. In the end, they reap the rewards. In December 2024, for example, it was announced that the exploration and production contract for Iraq’s second biggest gas field, Mansuriya, had been activated by China’s Jereh Group.
Why Emerging Market Leadership Needs Integration, Not Separation
Isolation ultimately costs companies projects in emerging markets, while integration makes it easier to win them. In addition, the armored-vehicle approach is not only isolating—it also carries a hint of friction. In some cases, that friction comes across as aggression, which is never going to be the path toward effective relationship building.
Instead of arriving in emerging markets in armored vehicles—real or proverbial—leaders would do well to ride public buses, eat local food, and sit with people in their communities to understand what they need. That is how trust is built. and trust is needed to win contracts, complete projects, and sustain business in the long term.