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Summary CCCM / comparative and cross-cultural management

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Tilburg University (UVT)

The course international differences in management and organization are discussed. Empirically, the course focuses on management and organization in various European countries (Germany, France, and the UK), the USA, and Asian countries (Japan, South Korea and China). These dif...

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cccm
cccm for iba
comparative amp cross cultural management for iba
comparative amp cross cultural management for international business administration
iba
international business administration

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1. Samenvatting - Summary hrm for iba chapter 1-2-4 contact me for week 4 content
2. Samenvatting - Philosophy of science
3. Samenvatting - Summary cccm / comparative and cross-cultural management
4. Samenvatting - Summary operations management
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First semester summaries for the second year IBA. Final exam week in December

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3. Samenvatting - Summary operations management
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Comparative & Cross-Cultural Management by Lynouk van Hassel
Dear all,

I summarised the four main articles:

 Populism and the economics of globalisation
 Studying cultures
 Institutions and organisations
 Trust, growth, and well-being
 Comparative and international corporate governance

I also used the slides within this summary. It is thus possible that I have written down things twice
because of the article and the slides. I also summarised the article of Scott, which apparently was
scrapped from the exam. However, I still thought it had some interesting insights and it will be good
to understand the slides better and the main goal of it. I hope this summary is clear for everyone and
please let me know what you think about it and if I can change and/or improve things.

Goodluck!

The main issue in this course is how globalization influences through
culture and instituctions, management and organisation.

Contingency approach in organisation theory:

Characteristics of management en organisation depend on task
evnironment and related contingency factors.

Contingency factors -> organistional

Contingency factors Organisaiontal characterstics
Technology Fomalization
Enivornmental turbulence Centralization
Size of the organisation Use of control mechanisms
Contingency: 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 Organisation size, age
o Industry, technology etc

Two strategies for dealing with contingency factors in empirical research:

1. Control variables
2. Matched of samples
a. Select narrow, comparable subjects in cultures to be compared
b. Draw conclusions
c. Assumption: Differences between the narrow samples are representative for the
general differences.

1

,Globalization (Holm & Sorensen): 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.

Globalization: A qualitative shift towards a more integrated social and economic world system. It
seems to have come to a halt.

Historical perspective (source Grinin & Korotayev, 2013): According to knowledge clip we do not
need to know exact years.

Local links Up to -3500 BC Pre-state political Hunter-gatherer
forms production; early
agriculture
Regional links From 3500 BC – 490 Early states and Agricultural
BC empires production dominates
Continental links 490 BC to 1492 AD Rise of empires and Mature agricultural
developed states production
Intercontinental links 1492 AD to 1800 Developed & matured First phase of
states industrial production
Global links 1800-1960s-1970s Early forms of Second phase of
supranational entities industrial production.
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
o If a company can make more profit outside their home market, they will go abroad.
At the country level globalization has two effects:
 Wealth creation: If you start producing where the conditions are optimal,
under the assumption that in the country where the production is not taking
place anymore, the factories and labour can work on another product.
Therefore, the world is getting richer and wealth is created.
 Wealth redistribution: If your company moves to another country, your
income will fall, unless you are compensated. This means that globalization
will be bad for you as you have less money.
o The redistributive effects get larger relative to the wealth creation effects as the
level of trade liberalization increases.
 Social: Unbalanced distribution of benefits; Ordinary workers in the USA have not profited
from globalization, only the richest people.
 Cultural: Search for cultural authenticity. E.g. MC Donald’s expands everywhere but not
everyone is very happy about that
 Political: Limits of democracy; The trilemma of globalization, sovereignty and democracy.
Choose two. E.g. if you have national sovereignty and globalization you can never have
democracy.

2

,Four scenarios of globalization:

1. Convergence: The idea that the world will become more organised in some way.
a. E.g. The Anglo-American version of capitalism will be adopted worldwide (as in
Europe after WWII)
b. E.g. The contradicted by successes of Korea, which first build up a strong domestic
industry and then reached out to the world, NOT convergence
2. Specialization: Economies will specialize in where they have a large comparative advantage
(based on Porter’s factors)
a. A large proportion of trade is intra-industry trade, there is not a lot of specialization
now.
3. Incremental adaptation: Countries tend to evolve in the direction of the most efficient
system and practices.
a. However, cultures and institutions constrain countries and firms in this process. So
not all countries move to the same at the same speed.
4. Hybridization: Parts of the economy/society become part of the global system. Other parts
may remain largely unaffected e.g. Healthcare (actional provision)

Reader studying cultures + Slides
Section 1
1.1 What is culture and what is not

Culture (Kroeber and Kluckhohn): Culture consists of patterns, explicit and implicit, of and for
behaviour 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 values; culture systems
may, on the one hand, be considered as products of action, and on the other as conditioning
elements of further action.

Kroeber and Kluckhohn indicates that culture consists of:

- Patterns of and for behaviour
- Ideas and values
- Artifacts that embody a culture

Culture (Lee): 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.

Culture (Geert Hofstede): The collective programming of the mind which distinguishes the members
of one group or category of people from those of another.

A number of elements of this:

 The metaphor of “programming” indicates that culture is about learned, and not inherited,
behaviours, ideas and values (Hofstede does not include artifacts).
o Cultural research clearly focuses on that part of our behavioural repertoire that is
not inherited but learned.

3

,  “collective” programming of the mind, culture refers to behaviours, ideas and values, shared
by a collective.
 These behaviours distinguish the members of one group or collective from those of another.
 Hofstede also makes clear that culture can be specific both to a group or a category.
o Group: A collective the members of which interact with each other.
o Category: A collective the members of which share one or more important
characteristics, without necessarily all interacting with each other, like a profession.
o National culture, the phenomenon, is clearly specific to a collective rather than a
group.

Internalized cultures: culture that is in your head, main elements
are values and beliefs.

Values: The needs, Maslow’s hierarchy of needs: this is an
example of cultural relativity of values.

 Self-actulization: Achieving one’s full potential
 Esteem: Feeling of accomplishment
 Love/belonging: Intimate relationships, friends
 Safety: Security
 Physological: Food, water, rest

Culture level SSA slide

o Conservatism
o Harmony
o Egalitarianism
o Intellectual autonomy
o Hierarchy
o Mastery
o Affective autonomy

Beliefs: Are propositions about objects or cocnepts or relations between object/concepts. E.g.
causality (working hard elads to success). Traditional beliefs in chinese culture:

 All individuals have the potential to self-cultivate (Confucianism)
 The layout of the physical environment influences good and bad luck (Feng Shui)

Dual processing theory: Humans process information in two distinct ways:

1. Implicit system -> cultural dummy
a. Not conscious
b. Automatic
c. Fast
d. Parallel processing
e. High capacity
f. Effortless
2. Explicit system -> culturally intelligent individual
a. Conscious
b. Controllable
c. Relatively slow

4

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