Spotlight Interview: Principles for Scaling Industrial Business Between China and Italy

This interview explores the evolving landscape of leadership in Asia and Europe, emphasizing the importance of cultural intelligence, strategic patience, and continuous learning. It highlights how Chinese companies are increasingly ready to expand globally, the necessity for European leaders to adapt, and the critical role of empathy and agility in driving sustainable growth across diverse markets.

Kevin Hong: Raul, thank you for joining us today. To kick things off, could you share your perspective on the core leadership challenges faced by executives operating across Asia and Europe? What are the key differences and commonalities?

Raul Thomas Mora: Thank you, Kevin. It’s a pleasure to be here. The leadership landscape in Asia and Europe is fascinating because it’s shaped by distinct cultural, economic, and institutional factors. One of the fundamental challenges is understanding and bridging these differences without undermining either side.

In Asia, especially China, leadership tends to be more pragmatic, adaptable, and often more risk-tolerant—driven by a culture that values agility and rapid iteration. Conversely, European leadership often emphasizes stability, governance, and long-term planning. Both approaches have their strengths, but the real challenge is integrating these mindsets effectively.

A commonality, however, is the need for humility. Leaders must recognize that no single approach is universally superior. Success comes from appreciating local nuances, fostering trust, and adapting leadership styles to fit the cultural context.

Kevin Hong: You mentioned the importance of humility. How can leaders cultivate this trait, especially when navigating complex cross-cultural environments?

Raul Thomas Mora: Cultivating humility begins with active listening and genuine curiosity. Leaders should seek to understand the local culture, business practices, and societal norms deeply. This involves immersing oneself in the environment, engaging with local teams, and being open to feedback.

For example, I worked with a European multinational expanding into China. The European leadership initially tried to impose their Western management style, expecting quick results. But they soon realized that success required patience, local relationship-building, and a willingness to learn from their Chinese partners. Once they adopted a more humble, learning-oriented approach, their operations improved significantly.

Additionally, humility involves acknowledging what you don’t know and being willing to adapt. It’s about creating a culture where questioning assumptions is encouraged, and mistakes are viewed as learning opportunities.

Kevin Hong: That’s insightful. Turning to the Chinese market, you’ve observed a significant shift in Chinese companies’ international ambitions. Could you elaborate on how Chinese firms are evolving in their global strategies and leadership capabilities?

Raul Thomas Mora: Absolutely. Over the past decade, Chinese companies have transitioned from being primarily export-driven, low-cost manufacturers to becoming innovative, brand-driven entities with global ambitions. They are now investing heavily in R&D, branding, and customer experience.

What’s particularly interesting is their eagerness to learn and adapt. Unlike some Western firms that might be more risk-averse, Chinese companies are often more willing to experiment, iterate, and take calculated risks abroad. For instance, Chinese electric vehicle manufacturers like NIO and BYD are aggressively expanding into Europe and North America, not just as OEMs but as brands with emotional appeal.

Leadership within these firms is also evolving. Chinese entrepreneurs and executives are increasingly adopting a more global mindset, emphasizing strategic patience, cultural sensitivity, and long-term relationship building. They understand that success abroad isn’t just about products but about understanding local consumer preferences, regulatory environments, and establishing trust.

However, they also face challenges—particularly in navigating different regulatory frameworks and cultural expectations. Leaders need to balance their aggressive growth ambitions with local adaptation and patience.

Kevin Hong: How do you see European and Western leaders supporting Chinese companies in their international expansion? What leadership qualities are most valuable in this context?

Raul Thomas Mora: European and Western leaders can play a pivotal role by acting as facilitators and cultural bridges. They need to bring their local market expertise, regulatory knowledge, and strategic patience to the table.

Valuable qualities include cultural intelligence, humility, and the ability to build authentic relationships. For example, a Western executive working with a Chinese firm should understand the importance of relationship-building—guanxi in China—and not rush the process. Patience is crucial; success often takes longer than anticipated.

Moreover, Western leaders should foster an environment where Chinese teams feel supported and understood. This involves not only sharing technical expertise but also respecting cultural differences in communication and decision-making.

A practical example is when a European automotive firm partnered with a Chinese tech company. The Chinese team was eager to move fast, but the European leadership emphasized compliance, quality standards, and long-term trust. By balancing these perspectives, they created a successful collaboration that leveraged the strengths of both cultures.

Kevin Hong: You’ve highlighted the importance of patience and cultural understanding. How can leaders develop these qualities, especially in high-pressure environments?

Raul Thomas Mora: Developing patience and cultural understanding requires deliberate effort and mindset shifts. Leaders should invest in cross-cultural training, immerse themselves in local environments, and seek mentorship from those who understand the culture deeply.

For instance, I advise leaders to spend extended periods in the markets they are targeting—months, not just weeks—to truly grasp the nuances. This helps in building relationships, understanding consumer behavior, and adapting strategies accordingly.

Furthermore, cultivating emotional intelligence—self-awareness, empathy, and social skills—is fundamental. Leaders must learn to manage their own biases and assumptions, remain open-minded, and listen actively.

A good example is a European CEO who spent three months living in China, engaging directly with local teams and customers. This experience transformed his leadership approach, making him more empathetic and adaptable, which ultimately led to better market penetration.

Kevin Hong: That’s a compelling example. Moving to the European context, what are the key leadership challenges faced by European companies trying to innovate and compete globally, especially against the backdrop of Chinese and Asian competitors?

Raul Thomas Mora: European companies often grapple with a culture of conservatism, risk aversion, and a preference for stability. While these traits foster reliability and governance, they can hinder agility and innovation—traits essential for competing in fast-changing markets.

The challenge is to balance stability with agility. Leaders need to foster a culture that encourages experimentation, tolerates failure, and rewards learning. This requires a mindset shift from risk avoidance to risk management.

For example, a European luxury brand I worked with was hesitant to innovate its product lines, fearing brand dilution. I advised them to adopt a “test and learn” approach—launching limited editions, gathering customer feedback, and iterating quickly. This approach led to new successful product lines and revitalized the brand.

Another challenge is the tendency to focus inward, sometimes losing sight of global trends. Leaders must develop a global mindset, actively seeking insights from Asian markets, startups, and emerging sectors to stay ahead.

Kevin Hong: How can European leaders foster a culture of innovation without compromising their core values?

Raul Thomas Mora: It starts with leadership modeling. Leaders must demonstrate openness to new ideas, encourage experimentation, and celebrate learning from failures. Creating dedicated innovation teams, allocating resources for R&D, and establishing cross-functional collaboration are also vital.

Additionally, embedding innovation into the company’s purpose and values helps. For example, a European manufacturing firm I advised integrated innovation into its core mission, emphasizing continuous improvement and customer-centricity. They set up innovation labs and partnered with startups to co-develop new solutions.

Importantly, leaders should also build external networks—collaborating with universities, startups, and research institutions—to bring fresh perspectives and accelerate innovation.

Kevin Hong: You’ve touched on the importance of external networks. How can European companies leverage Asia’s innovation ecosystem to accelerate their growth?

Raul Thomas Mora: Asia’s innovation ecosystem is vibrant, with a wealth of startups, technological breakthroughs, and entrepreneurial talent. European companies should actively engage with these ecosystems through partnerships, joint ventures, and investments.

For example, I worked with a European industrial firm that established a joint innovation lab with a Chinese tech startup. This collaboration enabled them to co-develop smart manufacturing solutions, integrating Chinese agility with European engineering excellence.

Leaders must be open-minded and proactive in seeking these partnerships. It involves understanding local innovation hubs, participating in industry events, and building relationships with local entrepreneurs and investors.

Furthermore, fostering a mindset of openness and curiosity within the organization encourages employees to explore new ideas from these ecosystems, leading to faster adoption and adaptation.

Kevin Hong: That’s a strategic approach. Now, shifting gears, let’s discuss leadership development. How can organizations prepare their leaders for the complexities of operating across diverse cultural and market environments?

Raul Thomas Mora: Leadership development must be holistic and experiential. It’s not enough to have technical skills; leaders need cultural intelligence, emotional resilience, and strategic agility.

Programs should include immersive international assignments, cross-cultural training, and mentoring from global leaders. For example, I recommend rotational programs where leaders spend time in different markets, understanding local challenges and building networks.

Additionally, fostering a growth mindset—encouraging leaders to view challenges as opportunities for learning—is critical. Leaders should also develop self-awareness through coaching and feedback.

An example is a multinational that implemented a leadership exchange program between its European and Asian units. Participants gained firsthand experience of different leadership styles and cultural norms, which improved collaboration and decision-making.

Kevin Hong: How can organizations measure the effectiveness of their leadership development initiatives in such complex environments?

Raul Thomas Mora: Measurement should go beyond traditional KPIs. It involves assessing behavioral changes, cultural adaptability, and impact on business outcomes.

Tools like 360-degree feedback, cultural intelligence assessments, and leadership performance metrics are useful. Also, tracking the success of cross-border projects, employee engagement, and retention rates provides insights into leadership effectiveness.

For example, a company I worked with tracked the number of successful international collaborations and employee mobility as indicators of leadership readiness. Over time, these metrics correlated with improved market performance and cultural integration.

Kevin Hong: As we wrap up, what is your vision for the future of leadership in the Asia-Europe context?

Raul Thomas Mora: The future of leadership lies in embracing complexity, fostering inclusiveness, and cultivating a global mindset. Leaders who can navigate cultural differences, adapt strategies swiftly, and build authentic relationships will be the most successful.

The most effective leaders will be those who see diversity as an asset, leverage technology for connectivity, and prioritize continuous learning. They will act as bridges—connecting ideas, cultures, and markets—to create sustainable growth.

In essence, leadership in this era is about humility, curiosity, resilience, and the ability to inspire trust across borders.

Kevin Hong: Raul, thank you for sharing your profound insights and practical wisdom. Your experience underscores the importance of adaptive, culturally intelligent leadership in today’s interconnected world.

Raul Thomas Mora: Thank you, Kevin. It’s been a pleasure. I hope these insights help aspiring leaders navigate the exciting, complex landscape ahead.

This conversation aims to serve as a comprehensive guide for leaders seeking to excel across Asia and Europe, emphasizing humility, adaptability, and continuous learning as the pillars of effective leadership.