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Outlines the strategic challenges faced by multinationals (e.g. the conflict between globalization and localization, environmental volatility etc.) and argues that the use of nonlinear systems theory (chaos theory) can help. Explains how “phase planes” can provide insight into changes in the international environment and illustrates their use in choosing intervention strategies to respond to changing risk ratings in Mexico and Brazil over time. Summarizes the advantages of this dynamic approach over traditional linear analysis methods and believes that it can be universally applied to financial, operational or economic measures.

The innovative mentality, it has been found that it is poorly addressed, which in turn does not provide clear delineations in academic literature. The innovative mentality is an opposition to the traditional innovative culture and that this is observed indirectly through the new forms of action of the younger generations. The purpose of this study aims to seek to provide answers by analyzing how the innovative mentality of leaders 40 years of age and under impacts the transformational or transactional leadership styles. Second, this research analyzes whether the leadership style used in the “40 Under 40” impacts an innovative organizational behavior that positively drives toward organizational success.

The partial least squares structural equations method (PLS-SEM) is used to analyze a set of hypotheses to 103 professionals awarded the 40 under 40 of Caribbean Business Magazine in Puerto Rico between 2012 and 2016. The unit of analysis were young professionals recognized as the “40 Under 40” by the Caribbean Business Magazine in Puerto Rico between 2012 and 2016.

The study results contribute a novel theory about a new style of leadership, based on innovative mentality as a central axis, when combining different leadership styles. The second study examined whether there are significant differences between male and female gender through the proposed research model. The results reflect when the organizational innovative behavior is analyzed, the transactional leadership role used by women is highlighted.

This study distinguishes the “40 Under 40” from other leaders and has allowed their enterprises to be successful is their innovative leadership style, which is executed through their innovative mentality.