Using contingency theory, the reason why Ren Zhengfei's leadership is effective is that he is willing to "disperse wealth and gather people together" because he has overcome the weakness of selfish and greedy human nature. The key to the success or failure of any organization or cause lies in leadership. Because leadership plays an important role in the actions of all kinds of groups, there are many theories about how to be a good leader at all times and in all countries.

contingency theory, also known as situational theory. After 196s, the research on leadership effectiveness turned to contingency theory.