International Comparative Management
Lecture 1
Introduction
Elements of the course
Contingency factors
Contingency approach in organization theory:
Characteristics of management & organization depend 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 environmental,
always control for differences in:
- organization size; age
- industry; technology
- Two strategies for dealing with contingency factors in empirical research: inclusion of
control variables and matching of samples
,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 samples are representative for the
general differences
Summary
In this knowledge clip I have discussed the organizational setup and general contents of the
course
- The course deals with differences in management styles and organizational
approaches between countries; explains these differences from societal
characteristics; studies ways in which companies can deal with these differences; and
helps us understand and act in cross-cultural situations
- In looking at the influence of culture and institutions, so-called contingency factors
need to be taken into account
- Evaluation is based 100% on a written exam at the end of the course
- The main issue discussed in the course is how globalization influences, through
culture and institutions, management and organization
Globalization
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
Forces promoting globalization:
- Decrease of transportation costs
- Decrease of communication costs
- Integration international financial markets
- Mass media, social media
- International migration
,Forces impeding globalization:
- Economic: lower company profits outside home market; decreasing economic gains
of trade liberalization
- Social: unbalanced distribution of benefits
- Cultural: search of cultural authenticity
- Political limits of democracy
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
- 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 the free trade” need to be compensated?
Limits to globalization: social
- Unbalanced distribution of benefits
- Developing/ emerging countries have profited from globalization
Limits to globalization: cultural
- Search for cultural authenticity
- The issue of “cultural appropriation”
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
, Scenarios of globalization
1. Convergence The Anglo-American version of capitalism will be adopted worldwide
(as in Europe after WW-II)
2. Specialization Economies will specialize in where they have a comparative
advantage, e.g., based on Porter’s “diamond” factors
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
Summary
In this knowledge clip I have discussed the phenomenon of globalization:
- Globalization is a qualitative shift towards a more integrated social and economic
world system
- Globalization seems to have come to a halt
- There are economic, social, cultural and political factors that play a role in this
- Further globalization in the future can follow different scenarios
Lecture 1
Introduction
Elements of the course
Contingency factors
Contingency approach in organization theory:
Characteristics of management & organization depend 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 environmental,
always control for differences in:
- organization size; age
- industry; technology
- Two strategies for dealing with contingency factors in empirical research: inclusion of
control variables and matching of samples
,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 samples are representative for the
general differences
Summary
In this knowledge clip I have discussed the organizational setup and general contents of the
course
- The course deals with differences in management styles and organizational
approaches between countries; explains these differences from societal
characteristics; studies ways in which companies can deal with these differences; and
helps us understand and act in cross-cultural situations
- In looking at the influence of culture and institutions, so-called contingency factors
need to be taken into account
- Evaluation is based 100% on a written exam at the end of the course
- The main issue discussed in the course is how globalization influences, through
culture and institutions, management and organization
Globalization
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
Forces promoting globalization:
- Decrease of transportation costs
- Decrease of communication costs
- Integration international financial markets
- Mass media, social media
- International migration
,Forces impeding globalization:
- Economic: lower company profits outside home market; decreasing economic gains
of trade liberalization
- Social: unbalanced distribution of benefits
- Cultural: search of cultural authenticity
- Political limits of democracy
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
- 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 the free trade” need to be compensated?
Limits to globalization: social
- Unbalanced distribution of benefits
- Developing/ emerging countries have profited from globalization
Limits to globalization: cultural
- Search for cultural authenticity
- The issue of “cultural appropriation”
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
, Scenarios of globalization
1. Convergence The Anglo-American version of capitalism will be adopted worldwide
(as in Europe after WW-II)
2. Specialization Economies will specialize in where they have a comparative
advantage, e.g., based on Porter’s “diamond” factors
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
Summary
In this knowledge clip I have discussed the phenomenon of globalization:
- Globalization is a qualitative shift towards a more integrated social and economic
world system
- Globalization seems to have come to a halt
- There are economic, social, cultural and political factors that play a role in this
- Further globalization in the future can follow different scenarios
