Emerald | Cross Cultural Management: An International Journal

Ease of doing business and FDI inflow to Sub-Saharan Africa and Asian countries

Rosetta Morris, Abdul Aziz — 2011-10-25 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the relationship between factors that influence conducting business and the inflow of foreign direct investment (FDI) to Sub-Saharan African (SSA) and Asian countries. Design/methodology/approach – The factors of business climate defined by the World Bank in 2006 as ease of doing business were correlated with FDI flows to SSA and Asian countries. Findings – Two factors, “registering property” and “trading across borders”, were found to be related to FDI over all six years of the study (2000-2005) for the combined sample. Also, several factors were found to be related to FDI received by SSA and Asian countries during various years. Research limitations/implications – A limitation of the study is that the sample included only SSA and Asian countries. Practical implications – The findings may help SSA and other countries to improve the business climate in terms of the factors of ease of doing business, in order to attract more FDI. Originality/value – The paper provides empirical support to the hypothesis that FDI is related to some of the factors of the business climate. It advances understanding of the determinants of the inflow of FDI to African and Asian countries and may be particularly useful to international organizations seeking to do business in SSA and Asian countries.

The effect of wasta on perceived competence and morality in Egypt

Ahmed A. Mohamed, Mohamad S. Mohamad — 2011-10-25 00:00:00.0

Abstract

Purpose – Wasta is an Arabic word that means the intervention of a patron in favor of a client in attempt to obtain privileges or resources from a third party. In Arab countries, wasta is often used to obtain employment, thus causing unequal opportunity. The purpose of this paper is to study the attributions that people make regarding the competency and morality of wasta users. The main hypothesis is that those that use wasta in obtaining employment will be perceived as less competent and moral than those that do not. Design/methodology/approach – The study is designed as a factorial quasi-experiment, with three independent variables; wasta, employee qualification and socioeconomic status. The dependent variables are perceived competency and morality. Data were gathered from 421 Egyptian undergraduate business students attending a public and a private university. Findings – In support of the hypotheses, subjects discounted the competency and morality of employees that used wasta to obtain the job. Additionally, subjects from lower socioeconomic groups evaluated wasta users more positively than more affluent subjects. Originality/value – This is the first study that attempts to use attribution theory to examine the effects of wasta on perceptions of competency and morality. The study may be useful in identifying the disadvantages of using wasta, thus reducing its use.

Conflict and performance in US and Mexican learning teams: The influence of team behaviors and cultural context

Danielle Cooper, Warren Watson — 2011-10-25 00:00:00.0

Abstract

Purpose – The purpose of this paper is to examine the role of two moderators of the relationships between affective conflict and cognitive conflict and team performance: the cultural context and the level of team-oriented behaviors. Design/methodology/approach – Survey questionnaires were administered to a sample of 143 Mexico- and US-based learning teams. Regression analysis was used to test hypotheses. Findings – In both cultural contexts, cognitive conflict more positively affected performance when team-oriented behaviors were high. This effect was stronger for Mexican teams. Affective conflict more negatively affected performance in Mexican teams than US teams, particularly when team-oriented behaviors were high. Practical implications – The results have implications for managing conflict to improve team effectiveness in the USA and in Mexico and for training managers who work across these cultural contexts. Originality/value – The paper demonstrates the joint role of the cultural context and team behaviors in how conflict influences team performance.

Walmart and Carrefour experiences in China: resolving the structural paradox

Ming-Ling Chuang, James J. Donegan, Michele W. Ganon, Kan Wei — 2011-10-25 00:00:00.0

Abstract

Purpose – The purpose of this paper is to combine secondary sources and interviews with Chinese suppliers to explore the structural paradox faced by retail multinational firms in China as they balance the competing demands of standardization and localization. The authors describe the challenges faced by two retail giants, Walmart and Carrefour, as they attempt to replicate in China their lean retailing successes elsewhere in the world. Design/methodology/approach – This is a comparative study of Walmart's and Carrefour's ventures into the Chinese market, largely based on publicly available secondary sources, but also incorporating interviews with three Chinese nationals engaged in supplying these firms. Findings – Walmart and Carrefour have so far failed to extend their oligopolistic dominance to the Chinese market. Walmart has stressed its well-known standardization of operations, whereas Carrefour has better adapted to the Chinese economic culture. Issues identified are: the formation of partnership alliances and their impact on store location choice; the effect of under-developed infrastructure on distribution and logistics; the unique Chinese business culture – guanxi (using social capital to build business relationships) and its influence on supplier relationships; the variety of consumer behavior and its effect on procurement and sourcing; and an immature information technology environment which impedes information sharing between supply chain partners. While both firms have had some degree of success, neither has been able to match the combined growth of their larger Chinese competitors. Research limitations/implications – The authors are cautious in drawing normative conclusions or making predictions about the future. Both firms face significant obstacles as they challenge China's largest domestic retailers. Originality/value – Many multinational corporations are aware of the topology of the Chinese market, what they lack is an in-depth understanding and the skills needed for effective operations. This paper discusses the effectiveness of the strategies adopted by two leading global retailers as they attempt to resolve the paradox presented by the competing demands for standardization and localization and includes information provided by three of Walmart's and Carrefour's local Chinese suppliers.

How cultural values affect the impact of abusive supervision on worker attitudes

Mary C. Kernan, Sharon Watson, Fang Fang Chen, Tai Gyu Kim — 2011-10-25 00:00:00.0

Abstract

Purpose – The purpose of this paper is to analyze the impact of cultural values on the relationship between abusive supervision, or workplace bullying, and worker job attitudes such as job satisfaction, job involvement, negative well-being and perceived organizational support. Design/methodology/approach – The authors used a survey to collect cross-cultural data from workers in the USA and South Korea to test hypotheses regarding how cultural values affect the impact of abusive supervision on employee attitudes. Unlike previous research, the authors measured cultural values directly, rather than using nation as a proxy for culture. Findings – It was found that the effects of abusive supervision on workers' job-related attitudes are moderated by some, but not all, cultural values. In particular, moderating effects were found for Schwartz' achievement and benevolence values, but not for power values. Additionally, evidence was found that some of the measures commonly used in organizational research are not invariant across cultures. Originality/value – Although the incidence of abusive supervision has been well documented in the USA and research on the causes and consequences of abusive supervision has grown steadily, very few studies have examined this topic in a cross-cultural context. This study addresses this important, yet under-researched issue by examining the joint effects of cultural values and abusive supervision on employee attitudes, using a cross-cultural sample of workers.

Cross-cultural challenges for a global maritime enterprise

Gary A. Lombardo — 2011-10-25 00:00:00.0

Abstract

Purpose – The purpose of this paper is to present a hypothetical case study which provides an opportunity for students to conduct realistic business analysis applying subject material related to cross-cultural issues presented in the international business, international management and management courses. Design/methodology/approach – The hypothetical case study requires students to review and analyze cross-cultural issues related to the appointment of the senior executive for a foreign office of a global business enterprise. A hypothetical Chinese maritime enterprise and its publicly-traded subsidiary are profiled. Cross-cultural considerations come into play as the senior executive for two foreign offices must be appointed. Findings – The case reflects refinements based upon its use during the past few years. Students are provided a realistic experiential exercise. Student feedback indicates a heightened sensitivity to cross-cultural considerations that transcends their assigned textbook readings and traditional testing. Research limitations/implications – As with any classroom exercise, differences do exist with “real-world” business practice. Students do not fully appreciate the pressures and tensions experienced by business professionals with respect to recruiting, selecting, appointing and developing a senior executive for a foreign office assignment. Practical implications – The case study provides an experiential exercise for students to apply theories and concepts learned from the textbook and the instructor's lectures. Originality/value – The case study offers a complex view of myriad cross-cultural considerations inherent in an international business firm, providing value to instructors and students as it reinforces discipline theories and concepts in a meaningful way, creating an active learning environment fostering academic excellence.

Corporate trainers' credibility and cultural values: evidence from Canada and Morocco

Abderrahman Hassi, Giovanna Storti, Abderrahman Azennoud — 2011-10-25 00:00:00.0

Abstract

Purpose – Corporate trainers' credibility has been universally ignored by researchers and its significance has remained elusive across cultures. Thus, the purpose of this present paper is to examine variations of trainers' credibility determinants in Canada and Morocco. Design/methodology/approach – A comparative qualitative study with in-depth interviews and the grounded theory approach were adopted to carry out the research. Participants in the study consisted of 60 civil servants employed in various governmental departments in Canada and Morocco. Findings – A framework identifying distinct categories based on common determinants of trainers' credibility was constructed for each respective country. These categories were attributed the following designations: qualifications, perceived competence, perceived justice and perceived confidence for the Canadian sample; and qualifications, perceived competence, and personal attributes for the Moroccan sample. Similarities surfaced regarding some of the determinants in both cultures such as qualifications, and competence. However, Canadian respondents emphasized trainers' performance, fairness and confidence, while Moroccan trainees valued wisdom (hikma), honesty (sidk), trust (amanah) and the trainer as a role model. Practical implications – The findings indicate that cultural values ought to be considered in trainers' credibility in efforts to enhance the level of comprehension regarding credibility determinants that could impact training success and effectiveness. It is also recommended that organizations consider taking into account the determinants of credibility during the selection process of trainers who will be primarily tasked with delivering corporate training to employees locally or in various cultural settings. Originality/value – The paper provides groundbreaking insights as it is the first study to investigate trainers' credibility across cultures by resorting to an emic approach to provide a cross-cultural perspective on the subject.

Cultural Differences and Improving Performance: How Values and Beliefs Influence Organizational Performance

2011-10-25 00:00:00.0

Executive corner

2011-10-25 00:00:00.0