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Summary International Comparative Management (325048-B-6)

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Summary of the lectures and video clips of International Comparative Management

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  • 3 december 2021
  • 61
  • 2021/2022
  • Samenvatting
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INTERNATIONAL COMPARATIVE MANAGEMENT

Lecture 1
Elements of the course




Contingency factors (onvoorspelbaarheids factors)
Contingency Approach in organization theory:
Characteristics of management & organization depends on task environment and
related contingency factors
• A contingency is a circumstance or condition that may or may not apply
• Be aware of the danger of “cultural attribution”
• When looking for the influence of differences in institutional/cultural
environment, always control for differences in:
o organization size; age
o Industry; technology
o Etc.
• Two strategies for dealing with contingency factors in empirical research:
inclusion of control variables and matching of samples

What is globalization?
A qualitative shift towards a global economic system that is no longer based on
autonomous national economies but on a consolidated global marketplace for
production, distribution, and consumption (Holm & Sørensen, 1995)


Not for the exams, just an example

, INTERNATIONAL COMPARATIVE MANAGEMENT

Forces promoting (further) globalization:
• Decrease of transportation costs
• Decrease of communication costs
• Integration international financial markets
• Mass media, social media
• International migration

Forces impeding (further) globalization:
• Economic: Lower company profits outside home market; decreasing economic
gains of trade liberalization
• Social: Unbalanced distribution of benefits
• Cultural: Search for cultural authenticity
• Political Limits of democracy

1. Limits to globalization: economic
• Lower company profits outside home market
• At company level: shift in emphasis from efficiency, productivity and just-in-
time to resilience, robustness and slack (Madhok 2021)
• At country/region level: increasing desire to harbor integral supply chains
• At the country level globalization has two effects:
- Wealth creation
- Wealth redistribution
• The redistributive effects get larger relative to the wealth creation effects as
the level of trade liberalization increases
• What if the “losers from free trade” need to be compensated?

2. Limits to globalization: social
• Unbalanced distribution of benefits
• Developing/emerging countries have profited from globalization
• Ordinary workers in the USA have not profited from globalization

3. Limits to globalization: cultural
• Search for cultural authenticity
• The issue of “cultural appropriation”

4. Limits to globalization: political (Madhok: governance)
• The trilemma of globalization, sovereignty, and democracy




• Madhok (2021) mentions an additional factor leading to de-globalization:
technological development
• Digital technologies (e.g., AI, robotics) have made the share of labor cost in
value added smaller.

, INTERNATIONAL COMPARATIVE MANAGEMENT

Scenarios of globalization
Four possible scenarios:
1. Convergence
2. Specialization
3. Incremental adaption
4. Hybridization

Scenario 1; Convergence
• The Anglo-American version of capitalism will be adopted worldwide (as in
Europe after WW-II)
• But: contradicted by successes of, e.g., Japan, Korea, China
Scenario 2; Specialization
• Economies will specialize in where they have a comparative advantage, e.g.,
based on Porter’s “diamond” factors
• But: a large proportion of trade is intra-industry trade
Scenario 3; Incremental adaption
• Countries tend to evolve in the direction of the most efficient system and
practices
• However, cultures and institutions constrain countries & firms in this process
Scenario 4; Hybridization
• Parts of the economy/society become part of the global system
• Other parts may remain largely unaffected, e.g.:
- Healthcare
- Education
- Personal services
- Construction




Lecture 2
§1. What is culture?
Culture is difficult to define because it encompasses so many elements:
à ideas and values, patterns of behavior, artifacts, symbols, etc.

A synthetic definition:
Culture consists of patterns, explicit and implicit, of and for behavior acquired and
transmitted by symbols, constituting the distinctive achievements of human groups,
including their embodiments in artifacts; the essential core of culture consists of
traditional (i.e., historically derived and selected) ideas and especially their attached

, INTERNATIONAL COMPARATIVE MANAGEMENT

values; culture systems may, on the one hand, be considered as products of action,
on the other as conditioning elements of further action

Another synthetic definition:
Culture is a property of a group. It is a group’s shared collective meaning system
through which the group’s collective values, attitudes, beliefs, customs, and thoughts
are understood. It is an emergent property of the member’s social interaction and a
determinant of how group members communicate .... Culture may be taken to be a
consensus about the meanings of symbols, verbal and nonverbal, held by members
of a community

The concept of “culture”




What are values? (values ~ needs)




Maslow’s “hierarchy of needs” is an example of the cultural relativity of values

What are beliefs?
à beliefs are propositions about objects or concepts or relations between
objects/concepts
- E.g, causality (“working hard leads to success”)
- Traditional beliefs in Chinese culture:
o All individuals have the potential to self-cultivate (Confucianism)

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