Baltic Journal of Management

Moral judgment: a comparison of Latvian and US business persons : Table of Contents

Charles G. Smith — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – Given system-wide lapses in moral decision making in large US corporations and the inherited corruption from formerly planned economies, the development of moral reasoning is an important issue for business educators in the USA and Latvia. The purpose of this paper is to present a comparison of Latvian and US business persons. Design/methodology/approach – Kohlberg's et al., theory of cognitive moral development (CMD), as operationalized by Rest as framework to study the antecedents of moral judgment in both lands. Survey data from 340 employed MBA students as a proxy for current and future business leaders are used. A total of 18 scenarios are reduced to four unique components, which are regressed on measures of CMD, Country of Respondent, and Moral Philosophy to test three hypotheses. Gender and age are added as controls. Findings – CMD and Country of Respondent are strongly associated with increased moral judgment, while Moral Philosophy is less influential. In addition, the positive functional relationship between CMD and moral judgment exists in both countries but at lesser absolute values in Latvia. Findings also suggest that the efficacy of the independent variables varies with the issues at hand. Interestingly, moral dilemmas concerned with marketing strategies appear to be immune from moral reasoning. This indirectly gives support to Jones' concept of moral intensity and future research may wish to continue this line of inquiry as well as expand the comparison to other European Union countries. Originality/value – The paper is the first to use the defining issues test to study levels of CMD in the Latvian business community.

Limiting the brain drain: Determinants of employee organizational attachment in Lithuania : Table of Contents

Roman Gaiduk, Julija Gaiduk, Dail Fields — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine the roles of job- and organization-related variables in explaining the attachment of Lithuanian employees to their current employer. Design/methodology/approach – A total of 190 employees of a plastic manufacturing company located in an urban area in Lithuania completed a questionnaire containing 84 items describing job and organizational attributes. These data were analyzed using multivariate regression. Findings – In multivariate analysis, job- and organization-related variables each explained approximately equal proportions of the variance in employee attachment. When all of the job and organization-related variables were used simultaneously to predict employee organizational attachment, only intrinsic job characteristics, opportunities for promotion and training, and communication to/from employees made significant unique contributions to explanation of employee organizational attachment. The job and organizational variables together explained 56 percent of the variance in attachment. While the organization-related variables did not make a larger contribution to explanation of the variance in organizational attachment than to job-related variables, organization-related variables seem to explain how job-related variables influence attachment. Practical implications – The paper provides practical insights to organizational managers in Lithuania about the relative importance of job- and organization-related aspects of the work environment in predicting employee attachment to an organization. These insights may help reduce the current out-migration trends of workers and help Lithuanian companies compete more effectively in the European Union (EU). Originality/value – Only a few studies have examined the influence of different variables in determining the strength of employee-employer relationships in transitioning countries of Eastern Europe such as Lithuania. The paper contributes value by empirically examining the applicability of prevailing models of the determinants of employee organizational attachment to the employment environment of Lithuania, a country transitioning from the Soviet era as a member of the EU.

Leadership in transformational Estonia : Table of Contents

Krista Tuulik, Ruth Alas — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – The purpose of this paper is to find out whether the leadership expectations in independent Estonia differ from leadership expectations in other East European countries (EEC) and from other neighbouring countries and also to investigate actual leadership perception in Estonia. Design/methodology/approach – To find answers to the research questions stated above, two leadership surveys were carried out in Estonia in 2001 and 2003. The research carried out in 2001 concentrated on actual leader behaviour and the next wave of research, carried out in 2003, was devoted to desirable leader behaviour. The methodology of the surveys was based on the cross-cultural Global Leadership and Organizational Behaviour Effectiveness (GLOBE) research program with its initial headquarters in the USA. The GLOBE research program is a world-wide, multi-phase and method project. Findings – The crucial thing in the Estonian working environment during the transformation period was team spirit and team reinforcement. Unless Estonians are usually considered to be lonely spirits, the team in the working environment is considered to be very important. As opposed to other EEC countries, Estonia is more like other European countries when considering team orientation. The comparison of actual leadership patterns and desired leadership in Estonia showed that Estonians expect their leaders to be charismatic – value-based, team-oriented and participative. The leaders are not expected to be humane, self-protective and autonomous – these styles are considered to inhibit outstanding leadership. Practical implications – Knowledge of current research about the Estonian leadership style can be used in the training of future leaders in colleges and universities. With Estonia being a new member of the European Union, lots of companies will open their subsidiaries in this region if they have not done so already and information about culturally endorsed leadership profiles can be used while selecting and training people who will work with representatives of other cultures. Originality/value – The leaders during the research period were considered to be charismatic – value-based and team-oriented, but not participative and too autonomous.

Is the standardization of human resource practices perceived as fair across national cultures?: The cases of China, Lithuania, and Norway : Table of Contents

Randi Lunnan, Laura Elizabeth Mercer Traavik — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – The purpose of this paper is to investigate perceptions of fairness of a standardized performance appraisal in a multinational enterprise. The paper looks at the first step in understanding fairness perceptions by examining whether national culture influences the view on standardization itself and by comparing China, Lithuania, and Norway. Design/methodology/approach – An experiment using a scenario that outlined a performance appraisal tool in a multinational company is conducted. National culture and individual cultural values are the independent variables and the perception of fairness of the practice is the dependent variable. A sample of 80 management respondents from Lithuania, China, and Norway is taken. Findings – The findings suggest that national culture influences perceptions of fairness of a standardized performance appraisal tool. Employees from countries undergoing profound economic and political change, that score low on the cultural dimension of self-expression, tend to see the standardized tool as more fair than employees from a stable country high on self-expression. Differences in fairness perception at the individual level are found, where respondents high on power distance had higher perceptions of fairness of a standardized tool. Both national and individual levels measures of culture affected perceptions. Research limitations/implications – The sample is small; however, the differences are strong and indicate that perceptions of fairness vary. The experimental design allows good control, although it can limit generalizability to the field. Practical implications – Multinational companies must understand that before analysis and choice of specific human resource practices it is important that they are aware of national and individual cultural differences towards standardization itself. Cultural differences affect reactions not only to the specific human practice but also to the standardization. Companies can use dimensions such as power distance and the survival/self-expression dimension to understand the response of their employees. Being aware of this challenge may lead multinationals to pursue more fine-tuned ways of communicating and implementing a standardized practice. Originality/value – Using experiments to understand the implementation of practices in multinational organizations it is identified that, before deciding whether a practice should be locally adapted or standardized, the first step is to find out how standardization itself is perceived.

Social conflicts and the culture of cooperation in transitional society : Table of Contents

Juozas Lakis — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – The purpose of this paper is to review the complexity of post-Communist transition with regard to the processes of creating a legal and institutional environment, which will predispose social actors to cooperate to solve social problems and neutralize disparities. The paper also seeks to consider the shift from social destruction (everyone fighting with one an other) to social collaboration. Design/methodology/approach – The focus of the paper is on the scope of the simultaneously functioning political, social and moral extremes. They are seen as the key attributes of chaotic social transition and as material for creating cooperative links. Findings – Political and social transformation running simultaneously, and followed by legal and administrative modernization, provoked formerly unknown social conflicts in the transitional society. The case of Lithuania shows that the old methods for dealing with new conflicts were not suitable. Society became fragmented. Social costs of disintegration were high but not equal, when compared internationally. Interdependence between functionality, innovative and cultural potential of the state, and its capability to regulate conflicts and social controversies had been brought into political debates and public discussions after transition had been in progress for several years. This was a signal that political parties and the most influential social players became concerned about social outcomes of the reforms. Developing a new legal and institutional environment, empowering cooperation and conflict management in social interactions, is perceived as an indicator of the progress of the continuing transition. Research limitations/implications – Because of its nature and size, the research does not develop insights into the processes which were in some sense dependent on, and simultaneously became incentives for, the culture of cooperation in society; for example, dynamics of cooperation and competition among authorities and citizens, business and politics. Originality/value – Though great interest is shown in transitional processes in social and humanitarian studies, the rise of conflicts in society as well as the limitations of constructive ways of dealing with such conflicts are not yet the focus of social investigation.

The inward-outward dynamics in the internationalisation of Baltic banks : Table of Contents

Tõnu Roolaht, Urmas Varblane — Sun May 17 14:15:04 BST 2009

Abstract:
Purpose – The purpose of this paper is to show how the inward-outward dynamics in the internationalisation of Baltic banks have led towards higher incorporation into Nordic banking groups and subsequently towards diminishing autonomy. Design/methodology/approach – The paper presents two case studies, which characterise the evolution of international inward-outward connections in two major Baltic banking groups – Hansabank Group and Skandinaviska Enskilda Banken (SEB) Group. Findings – Acquisitions by Swedish banks in 1998 had a different impact on the internationalisation of the two leading Baltic banking groups. Inward-outward connections in the case of the Hansabank Group meant that they obtained strong autonomy in controlling Swedbank's activities in the Baltic. In the case of Eesti Ühispank, Latvijas Unibanka and Vilniaus Bankas inward-outward linkages meant that they lost autonomy about the further expansion to other Baltic countries and were eventually transformed into Baltic subsidiaries of SEB. These differences in strategies between Swedish banks could be explained by the background of the companies (especially their previous internationalisation experience). However, latest developments point towards growing similarities between two groups via incorporation of Hansabank into Swedbank group. Research limitations/implications – The case study has inherently limited the capacity to offer generalisations concerning other service companies. Practical implications – These results indicate the inward-outward development pattern of international service companies. The managers of similar companies can use this development pattern to project the dynamics of market entry strategies. Originality/value – The paper introduces original experience allocation framework in the context of inward-outward internationalisation and outlines the dynamic nature of the strategic relations between the foreign owner and its subsidiary.