An Ideas-Based Online Magazine of the Global Network for Advanced Management

Future of Globalization: Innovation and Regulation

To coincide with the fifth anniversary of the Global Network for Advanced Management in April 2017, Global Network Perspectives asked faculty across the 29 schools in the network: "What do you think the future of globalization looks like? How will this affect the economy in your country or region? How is your school preparing students for this world?" Read all of the responses. Also, in a session at the anniversary symposium, a panel of experts—including former U.S. Secretary of State John Kerry—led a discussion of the future of globalization and its implications for business and management education. Watch the video.

Wealth distribution and equality will be the key impact of globalization in emerging markets, including Indonesia. As a member of G20, Indonesia has been trying to anticipate the effects of globalization by putting more emphasis on human development. In part, that involves giving incentives to educational institutions that focus on nurturing an entrepreneurial mindset. Specifically, Indonesia aims to promote digital entrepreneurship and innovation. These two sectors help ensure better wealth distribution as they offer more equal job opportunities and market access to everyone.  

On the other hand, there will be many disconnections between innovation and regulation. It has become a rising problem in Indonesia, which is often lacking in regulatory flexibility. Indonesia is currently in transition to a new democracy, which sometimes create regulatory labyrinths. As more disruptive innovations continue to enter the market, regulators should quickly offer solutions to address structural socioeconomic changes that affect large numbers of people. Recent clashes between ride-sharing-app drivers and conventional taxi drivers in several major cities in Indonesia indicate what will happen in the future if proper regulations on innovation are not put in place. 

Indonesia continues to grow as a key market in Asia. Considering the trajectory of Indonesia’s economy, there are strong indications that it would like to move from a commodity-based economy to a more value-added-based one. Our school would like to play a key part by developing talent with an innovative/sustainable mindset. In doing so, we are adopting new methods such as design thinking and action research into our curriculum.