卡伦国际企业管理第6版 课件 -CH03 The Institutional Context of Multinational Management

3TheInstitutionalContextofMultinationalManagementLearningObjectives(1of3)Understandthenationalcontextandhowitaffectsthebusinessenvironment.Understandtheinfluenceoftheinstitutionalcontextofcountriesonindividualsandorganizations.Definesocialinstitutionsandunderstandtheirbasicforms.Explainhowsocialinstitutionsinfluencebothpeopleandorganizations.LearningObjectives(2of3)Describethebasiceconomicsystemsandtheirinfluenceonmultinationaloperations.Understandthebasicstagesofindustrializationandtheirimplicationsformultinationals.Discusstheworld’sbasicreligionsandhowtheyshapethelocalbusinessenvironment.Developanunderstandingofeducationanditseffectsonmultinationaloperations.LearningObjectives(3of3)Definesocialinequalityanditsimplicationsformultinationals.Understandtheimportanceofthenationalcontextanditsconnectionwithotherinternationalmanagementareas.

InstitutionalContext(1of2)

InstitutionalContext:Includesotherelementsofsocietybesidesnationalculturesuchas:EducationThegovernmentThelegalsystemThesecanaffectimportantbusiness-relateddifferencesamongsocieties.Mayencourageadoptionofvaluesinconsistentwithnationalcultures.InstitutionalContext(2of2)Itisimportanttounderstandthedominantinstitutionalcontextofanysociety,andappreciateitsinfluenceonindividualsandorganizations.Understandingtheinstitutionalcontextiscriticaltoeffectivemultinationalmanagement.Atabasiclevel,amanagercannotcompletelyunderstandanysocietywithoutexaminingitsnationalcultureandinstitutionalcontext.NationalContextNationalContext:Thenationalcontextiscomposedoftherespectivenationalculturesandsocialinstitutionsofasociety.Intertwinedwithnationalculturalforcesaresocialinstitutionssuchas:TheeconomicsystemReligionEducationExhibit3.1:

TheNationalContextandMultinationalCompaniesSocialInstitutionsSocialInstitutions:maybedefinedas:acomplexofpositions,roles,norms,andvalueslodgedinparticulartypesofsocialstructures,andorganizingstablepatternsofhumanresourcesregardingfundamentalproblemsinsustainingviablesocietalstructureswithinagivenenvironment.Socialinstitutionshaveprofoundeffectsonpeople’slifeconditions,andprovidecontextforpsychologicaldifferencesamongpeople.KeySocialInstitutionsthatInfluenceOrganizationsThreekeysocialinstitutionsthatinfluencebusinessenvironment:TheeconomicsystemThelevelofindustrializationTypesofreligionsAdditionally,EducationLevelofsocialinequalityEconomicSystems(1of3)Economicsystems:networkorsystemofbeliefs,activities,organizationsandrelationshipsthatprovidethegoodsandservicesofasocietyTypifiedbyextremesofcapitalism,socialismandamixofbothImportantimplicationsbasedonDominantmarkettypeMarkettransitionsEconomicSystems(2of3)Capitalist/marketeconomy:productionisdecentralizedtoprivatepropertyrightsownerswhoacttomakeprofitsincompetitivemarketSocialist/commandeconomy:productionresourcesareownedbythestate,andproductiondecisionsarecentrallycoordinatedMixedeconomy:combinesaspectsofcapitalistandsocialisteconomiesE.g.,Sweden,France,Denmark,ItalyandIndiaEconomicSystems(3of3)Economicsystemshavetwomajorimplicationsforstrategicmultinationalmanagement:DominantmarkettypeMarkettransitionsDominantMarketTypeDominantMarketType:Whetherthemarketandeconomicsystemofacountryarepredominantlycapitalist,socialistormixed.Thedecisionwhethertooperateinanothercountrymaydependonthedominantmarkettype.Inmixedeconomies,MNCsshouldsubordinatetheireconomicgoalsandrespectsocialobjectivesMultinationalmanagersmaywanttoconsidertheIndexofEconomicFreedom.IndexofEconomicFreedomIndexofEconomicFreedom:Defineseconomicfreedomas:Theabsenceofgovernmentcoercionorconstraintontheproduction,distribution,orconsumptionofgoodsandservicesbeyondtheextentnecessaryforcitizenstoprotectandmaintainlibertyitselfTheindexincludes10indicatorsrangingfromtradeandtaxationpolicies,topropertyrightsandregulation,includinggovernmentinterventionintheeconomy.Exhibit3.2:

IndexofEconomicFreedomMarketTransitionsMarketTransitions:ChangessocietiesexperienceastheymovefromsocialismtoamarketbasedeconomyMultinationalimplications:Needtoturnaroundinefficientformerlystate-ownedcompaniestobecomecosteffectiveMotivationalissueswithworkersInterpersonaltrust,teams,meritocracyIndustrialization(1of2)Industrialization:CulturalandeconomicchangesthatoccurbecauseofhowproductionisorganizedanddistributedinsocietyStagesofindustrializationPre-industrialIndustrialPostindustrialIndustrialization(2of2)Pre-industrialsociety:AgriculturedominatestheeconomicenvironmentReligiousnorms,traditionemphasizedIndustrialsociety:DominanceofmanufacturingorsecondarysectorTechnologicaldevelopmentPostindustrialsociety:EmphasisontheservicesectorsNeedhighlyskilledworkerswithspecializedskillsExhibit3.3:Selectedcountriesandthedistributionofemploymentbyprimary,secondaryandtertiarysectorsManagerialImplications:

Industrialization

(1of2)DirectcorrespondencebetweenindustrializationandeconomicdevelopmentPre-industrialcountriesprovidecheaplaboranduntappedmarketsButpoorinfrastructureforbusinessTraditionalandcommunalvaluesIndustrialsocietiesfavorinnovationandindividualismGovernmentsprovidefavorableenvironmentEducatedlaborforceManagerialImplications:

Industrialization

(2of2)PostindustrialsocietiesDominanceofservicesector;knowledgebasedAlmostcompletedemiseofagriculturalsectorSignificantdeclineinmanufacturingsectorIncreasingemphasisonquality-of-lifeNoneconomicincentivesfavoredPost-materialistvalues,individualexpression,andmovementtowardmoreahumanesocietyExhibit3.4:

MaterialistValues

forSelectedCountriesExhibit3.5:

PostmaterialistValues

forSelectedCountriesReligionReligion:Asharedsetofbeliefs,activities,andinstitutionsbasedonfaithinsupernaturalforces.Religionisanimportantaspectofmostsocieties.Together,Christianity,Islam,HinduismandBuddhismarefollowedbyalmost71%oftheworld’spopulation.20%ofworld’spopulationarenonreligious.Differentreligionsshapehowpeopledobusinessindifferentpartsoftheworld.Exhibit3.6:

ReligionbyPercentageofWorldPopulation&NumberofFollowersChristianityChristianity:AreligionbasedontheteachingsofJesusThemostpracticedreligionaroundtheworldProtestantismemphasizeswealthandhardworkTencommandments–basisforethicalbehaviorsDignityofhumanlife,laborandhappinessImplicationsformultinationals:BusinessenvironmentconducivetothesevaluesSundayholidayforprayerIslamIslam:BasedonsubmissiontothewillofAllah(God).TheProphetMuhammadwasamessengerofAllah.Thesecondlargestoftheworld’sreligionsandgrowing.IslamiclawsorShari’ah,basedonTheFivePillars.Muslimsprayfivetimesaday,fastduringRamadan.Implicationsformultinationals:Islamprohibitsprofitingbyexploitingothers.Islamprohibitsthepaymentorreceiptofinterest.LimitedroleforwomeninsomeIslamicsocieties.Hinduism(1of2)Hinduism:AbroadandinclusivereligionwithnosinglefounderBasedontheVedicscripturesOldest,embodiedintheancienttraditionsofIndiaCurrently760millionHindusworldwideQuestforultimaterealityandtruthHinduslivelifeaccordingtotheprinciplesofDharma(righteousnessandmoralorder)BeliefinKarmaandreincarnationHinduism(2of2)Implicationsformultinationals:SpiritualachievementisanimportantvalueRespectforelders,ageandwisdomHinduismhasclearguidelinesforethicalbehaviorInequalityincastesystem,socialstructureofIndiaBuddhismBuddhism:AreligioustraditionthatfocusesontherealityofworldsufferingandthewaysonecanbefreedfromsufferingCravinganddesiresproducesufferingDominantreligioninAsiaImplicationsformultinationalsEncourageshardwork;lazinessseenasnegativeEmphasizesteamwork;allbeingsareinterconnectedEducationEducation:organizednetworksofsocializationexperienceswhichprepareindividualstoactinsocietyCentralelementinorganizationofsocietyHelpsconstructcompetencies,professions,andprofessionals

ManagerialImplications:

Education

GivesanideaoftheskilllevelofworkersinanysocietyThemoreeducated,themoreskillsworkershaveMultinationalscanlookateducationalattainmentscorestodeterminethenatureoftheworkforceOtherscoresrelevant:MathandScienceR&DexpenditureExhibit3.7:

TertiaryEnrollmentas

PercentageofRelevantAgeGroupsExhibit3.8:

TotalExpendituresonR&D

asPercentageofGDPSocialInequalitySocialInequality:Referstothedegreetowhichpeoplehaveprivilegedaccesstoresourcesandpositionswithinsocieties.Insocietiesthathavehighsocialinequality,afewindividualshavetheabilitytocontrolanduseimportantresources.Theseselectfewuseaccesstoresourcestoacquiremorepower,therebyperpetuatinginequality.Socialinequ