SUMMARY C&CCM
LECTURE 1
ELEMENTS OF THE COURSE
Globalization institutions & cultures implications of managements
CONTINGENCY FACTORS
Contingency approach in organization theory characteristics of management & organization depend on task
environment and related contingency factors
Contingency factors Organizational characteristics
- Technology - Formalization
- Environmental turbulence - Centralization
- Size of organization - Task descriptions
Etc. - Use of control mechanisms
Etc.
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 Organization size; age
o Industry; technology
Etc.
Two strategies for dealing with contingency factors in empirical research
1. Inclusion of control variables
2. Matching of sampling
Contingency factors explain differences in management and organization between countries
Strategy of ‘’matched samples’’
- Select narrow, but comparable subjects in the cultures to be compared
- Draw conclusions from this comparison regarding differences between the cultures in general
- Assumption differences between the narrow sample are representative for the general differences
,GLOBALIZATION
Globalization = a qualitative shift towards a global economic system that is no longer based on autonomous
national economies but on a consolidated global market place for production, distribution, and consumption.
The globalization process is slowing down
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
Economic limits to globalization
- At company level shift in emphasis, productivity and just-in-time to resilience, robustness, and
slack
- At country/region level increasing desire to harbor integral supply chains
- At country level globalization has two effects
1. Wealth creation
2. Wealth redistribution
- The redistributive effects get larger relative to the wealth creation effects as the level of trade
liberalization increases
- What is the ‘’losers from free trade’’ need to be compensated
Social limits to globalization
- Unbalanced distribution of benefits
- Developing/emerging countries have profited from globalization
Cultural limits to globalization
- Search for cultural authenticity
- The issue of ‘’cultural appropriation’’
Political limits to globalization
- The trilemma of globalization, sovereignty, and democracy
Madhok (2021) mentions an additional factor leading to de-globalization technical development. Digital
technologies have made the share of labor cost in value added smaller.
, 4 possible scenarios of globalization
1. Convergence
2. Specialization
3. Incremental adaptation
4. Hybridization
1.Convergence
- The Anglo-American version of capitalism will be adopted worldwide (as in Europa after WWII)
- But contradicted by successes of, e.g., Japan, Korea, China
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
3.Incremental adaptation
- Countries tend to evolve in the direction of the most efficient system and practices
- However, cultures and institutions constrain countries and firms in this process
4.Hybridization
- Parts of the economy/society become part of the global system
- Other parts may remain largely unaffected;
o Healthcare
o Education
o Personal services
o Constructions
LECTURE 2
CULTURE
Culture is difficult to define, because it encompasses so many elements;
- Ideas and values
- Patterns of behavior
- Artifacts
- Symbols
Etc.
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 ideas and especially their attached values; culture systems may,
on the one hand, be considered as products of action, on the other as conditioning elements of further action.
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.
LECTURE 1
ELEMENTS OF THE COURSE
Globalization institutions & cultures implications of managements
CONTINGENCY FACTORS
Contingency approach in organization theory characteristics of management & organization depend on task
environment and related contingency factors
Contingency factors Organizational characteristics
- Technology - Formalization
- Environmental turbulence - Centralization
- Size of organization - Task descriptions
Etc. - Use of control mechanisms
Etc.
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 Organization size; age
o Industry; technology
Etc.
Two strategies for dealing with contingency factors in empirical research
1. Inclusion of control variables
2. Matching of sampling
Contingency factors explain differences in management and organization between countries
Strategy of ‘’matched samples’’
- Select narrow, but comparable subjects in the cultures to be compared
- Draw conclusions from this comparison regarding differences between the cultures in general
- Assumption differences between the narrow sample are representative for the general differences
,GLOBALIZATION
Globalization = a qualitative shift towards a global economic system that is no longer based on autonomous
national economies but on a consolidated global market place for production, distribution, and consumption.
The globalization process is slowing down
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
Economic limits to globalization
- At company level shift in emphasis, productivity and just-in-time to resilience, robustness, and
slack
- At country/region level increasing desire to harbor integral supply chains
- At country level globalization has two effects
1. Wealth creation
2. Wealth redistribution
- The redistributive effects get larger relative to the wealth creation effects as the level of trade
liberalization increases
- What is the ‘’losers from free trade’’ need to be compensated
Social limits to globalization
- Unbalanced distribution of benefits
- Developing/emerging countries have profited from globalization
Cultural limits to globalization
- Search for cultural authenticity
- The issue of ‘’cultural appropriation’’
Political limits to globalization
- The trilemma of globalization, sovereignty, and democracy
Madhok (2021) mentions an additional factor leading to de-globalization technical development. Digital
technologies have made the share of labor cost in value added smaller.
, 4 possible scenarios of globalization
1. Convergence
2. Specialization
3. Incremental adaptation
4. Hybridization
1.Convergence
- The Anglo-American version of capitalism will be adopted worldwide (as in Europa after WWII)
- But contradicted by successes of, e.g., Japan, Korea, China
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
3.Incremental adaptation
- Countries tend to evolve in the direction of the most efficient system and practices
- However, cultures and institutions constrain countries and firms in this process
4.Hybridization
- Parts of the economy/society become part of the global system
- Other parts may remain largely unaffected;
o Healthcare
o Education
o Personal services
o Constructions
LECTURE 2
CULTURE
Culture is difficult to define, because it encompasses so many elements;
- Ideas and values
- Patterns of behavior
- Artifacts
- Symbols
Etc.
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 ideas and especially their attached values; culture systems may,
on the one hand, be considered as products of action, on the other as conditioning elements of further action.
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.
