Cultural Issues

1. Cultural Issues Cultural Issues, Managemnet of Technological Innovation, KV Patri

2. Factors of Production and Economic Growth • Capital (Now, reasonable in HK) • Raw materials(Nil in HK) • Land (Very little in HK) • Labor(Limited in HK) • Technology or Technovation (Some technology transfer in the past but very little technovation in HK) Technology and its development need to be managed effectively for the generation of wealth and resources. Cultural Issues, Managemnet of Technological Innovation, KV Patri

3. Induced Innovations and Schumpeterian Innovations • Induced innovations are those motivated by such signals as shifts in relative prices of inputs into a production process or changes in output prices: e.g. during the second half of the 1970s, increases in energy prices provided a strong incentive for firms to produce innovations that conserved energy or substituted other inputs for energy. • Schumpeterian innovations are the result of ‘entrepreneurial behavior’  the perception that it may be possible to exploit some latent demand or to attack existing firms with radically new product or process. Cultural Issues, Managemnet of Technological Innovation, KV Patri

4. Quality Value Time Cost, Productivity Innovation Cultural Issues, Managemnet of Technological Innovation, KV Patri

5. Industrial Progress Innovation Quality Productivity Cultural Issues, Managemnet of Technological Innovation, KV Patri

6. Conditions Fostering Innovation 1. Perceived need for some better thing or for something that does not yet exist. 2. Tolerance for uncertainty and ambiguity. 3. Willingness to take risk. 4. Belief in the value of new things in general. 5. Belief in the ability to obtain valued benefits from the innovation. 6. Participation in richly connected social networks. 7. Willingness to experiment. 8. Willingness and ability to invest various kinds of resources in the new thing. Cultural Issues, Managemnet of Technological Innovation, KV Patri

7. Diverse definitions of culture Topical: Culture consists of everything on a list of topics, or categories, such as social organization, religion, or economy. Historical: Culture is social heritage, or tradition, that is passed on to future generations. Behavioral: Culture is shared, learned human behavior, a way of life. Cultural Issues, Managemnet of Technological Innovation, KV Patri

8. Normative: Culture is ideals, values, or rules for living. Functional: Culture is the way humans solve problems of adapting to the environment or living together. Mental: Culture is a complex of ideas, or learned habits, that inhibit impulses and distinguish people from animals. Structural: Culture consists of patterned and interrelated ideas, symbols, or behaviors. Symbolic: Culture is based on arbitrarily assigned meanings that are shared by a society. Cultural Issues, Managemnet of Technological Innovation, KV Patri

9. Culture involves at least three components: what people think, what they do, and the material products they produce. Thus, mental processes, beliefs, knowledge, and values are parts of culture. Some anthropologists define culture entirely as mental rules guiding behavior, although often wide divergence exists between the acknowledged rules for correct behavior and what people actually do. Consequently, some researchers pay most attention to human behavior and its material products. Culture also has several properties: it is shared, learned, symbolic, transmitted cross-generationally, adaptive, and integrated. Cultural Issues, Managemnet of Technological Innovation, KV Patri

10. The shared aspect of culture means that it is a social phenomenon; idiosyncratic behavior is not cultural. Culture is learned, not biologically inherited, and involves arbitrarily assigned, symbolic meanings. For example, Americans are not born knowing that the color white means purity, and indeed this is not a universal cultural symbol. The human ability to assign arbitrary meaning to any object, behavior or condition makes people enormously creative and readily distinguishes culture from animal behavior. People can teach animals to respond to cultural symbols, but animals do not create their own symbols. Cultural Issues, Managemnet of Technological Innovation, KV Patri

11. Furthermore, animals have the capability of limited tool manufacture and use, but human tool use is extensive enough to rank as qualitatively different and human tools often carry heavy symbolic meanings. The symbolic element of human language, especially speech, is again a vast qualitative expansion over animal communication systems. Speech is infinitely more productive and allows people to communicate about things that are remote in time and space. Note: the above excerpts are taken from John H. Bodley, From Cultural Anthropology: Tribes, States, and the Global System, 1994. Cultural Issues, Managemnet of Technological Innovation, KV Patri

12. What is culture? • Culture is made up of values, beliefs and attitudes. • Culture depends on historical experiences of the particular people. • History Values & Beliefs Attitudes • V, B and A determine the innovative spirit of the people. Cultural Issues, Managemnet of Technological Innovation, KV Patri

13. Exercise Classify each of the eight conditions fostering innovation listed earlier as a value, belief or attitude. Cultural Issues, Managemnet of Technological Innovation, KV Patri

14. Organizational Beliefs Required for Innovation Belief  in being the best.  in the importance of details of execution.  in the importance of people as individuals.  superior quality and service. Cultural Issues, Managemnet of Technological Innovation, KV Patri

15. Belief  That most members of the organization should be innovators—and its corollary, a willingness to support failure.  In the importance of informality to enhance communication. • in, and recognition of, the importance of economic growth and profits. Cultural Issues, Managemnet of Technological Innovation, KV Patri

16. Exercise: Chinese Culture • What, if any, are the unique values and beliefs of Chinese people? (Confucianism, ‘the Middle Path’, Yin and Yang, …) • What role has Chinese history played in developing these values and beliefs? • What are the attitudes resulting from these values and beliefs? • How have Chinese values changed in the last 50 years? • How might the above impacting the innovation culture of contemporary China? Cultural Issues, Managemnet of Technological Innovation, KV Patri

17. Hong Kong Culture • Which, if any, of the Chinese values, beliefs and attitudes are evident in today’s HK? • List two (each) of the contemporary values, beliefs and attitudes off HK people. • What role, if any, has the British rule played in determining HK’s contemporary culture? Cultural Issues, Managemnet of Technological Innovation, KV Patri

18. Exercise:Tolerance for uncertainty and ambiguity. • Why is tolerance for uncertainty and ambiguity important in fostering innovation? • Are uncertainty and ambiguity generally tolerated in HK? Answer based on your experiences within your family, in your school, and at City U. • Do you think that you can progress fast in a career in HK industry if you exhibit and/or promote such a tolerance? Explain. Cultural Issues, Managemnet of Technological Innovation, KV Patri

19. Willingness to take risk. • Do HK people like taking risks? Answer with examples. • If so, are they good at taking short term or long term risks? • Which kind of risk taking is important in fostering innovation? • Given your answers to the above questions, what are the prospects for innovation in HK? Cultural Issues, Managemnet of Technological Innovation, KV Patri

20. Willingness and ability to invest various kinds of resources in the new thing. • Name three major resources required for fostering innovation in a society. • Comment on to the extent to which HK has them today. • Compare HK’s % GDP spend on R&D with corresponding figures for five other developed countries? • Comment on the prospects for HK becoming a world center for innovation and technology. Cultural Issues, Managemnet of Technological Innovation, KV Patri

21. Inherited and learned Specific to Individual PERSONALITY Specific `to group or category Learned CULTURE Inherited Universal HUMAN NATURE Three Levels of Uniqueness in Human Mental Programming Cultural Issues, Managemnet of Technological Innovation, KV Patri

22. Symbols Heroes Rituals Values Practices The ‘Onion’ Diagram Manifestation of Culture at Different Levels of Depth Cultural Issues, Managemnet of Technological Innovation, KV Patri

23. National Cultures Cultural Issues, Managemnet of Technological Innovation, KV Patri

24. The Typical HK or Nanyang (overseas Chinese) firm has: • Centralization of the power of decision making, usually with a single dominant owner, manager, entrepreneur, founder or father figure. • A low level of specialization, with fewer and/or less detailed specialized departments, and with more people responsible for a spread of activities across a number of fields. Cultural Issues, Managemnet of Technological Innovation, KV Patri

25. Less standardization of activities and thus fewer routine procedures. • A relative lack of ancillary departments, such as research and development, labor relations, public relations, market research. • Reliance on personal relationships for business transactions. [Redding and Wong, “The Psychology of Chinese Organizational Behaviour,” pp. 267-295, The Psychology of Chinese People, Edited by M.H. Bond, Oxford University Press (Hong Kong), 1986.] Cultural Issues, Managemnet of Technological Innovation, KV Patri

26. Patronage in Hong Kong HK cotton spinners are patriarchal business leaders. “They conferred welfare benefits on their employees as favors, took a personal interest in their subordinates’ behavior not related to work, and disapproved trade union activities…Personalized ties with subordinates are forged in an attempt to counter their centrifugal tendency to set up on their own and become rival competitors. For industries such as spinning and weaving which require a stable workforce to deal with regular business cycles, benevolent paternalism is also one means to retain workers.” [Wong Siu-Lin, 1986, Modernization and Chinese Culture in Hong Kong, China Quarterly, No. 106, p. 313.] Cultural Issues, Managemnet of Technological Innovation, KV Patri

27. Key Principles of Confucian Teaching[Geert Hofstede, Cultures and Organizations: Software of the mind, McGraw-Hill, 1997.] Cultural Issues, Managemnet of Technological Innovation, KV Patri

28. 1. The stability of a society is based on unequal relationships between people. The wu lan, or five basic relationships are ruler-subject, father-son, older brother-younger brother, husband-wife, and senior friend-junior friend. These relationships are based on mutual and complementary obligations. The junior partner owes the senior respect and obedience. The senior owes the junior partner protection and consideration. Q. Stability is clearly important when economic growth is driven bythe pursuit of productivity and quality. In contrast, innovation means instability. Is stability critical in the context of innovation? Cultural Issues, Managemnet of Technological Innovation, KV Patri

29. 2. The family is the prototype of all social organizations. A person is not primarily an individual; rather, he or she is a member of a family. Harmony is found in the maintenance of everybody’s face in the sense of dignity, self-respect, and prestige. Social relations should be conducted in such a way that everybody’s face is maintained. Paying respect to someone is called ‘giving face’. Q. Discuss the advantages and disadvantages of the family prototype in the context of an organization striving to be nurture innovation as a competitive weapon. Cultural Issues, Managemnet of Technological Innovation, KV Patri

30. 3. Virtuous behavior towards others consists of not treating others as one would not like to be treated oneself (The Chinese Golden Rule is negatively phrased!). There is a basic human benevolence towards others, but it does not go as far as the Christian injunction to love one’s enemies. Confucius is supposed to have said that if one should love one’s enemies, what would remain for one’s friends? Cultural Issues, Managemnet of Technological Innovation, KV Patri

31. 4. Virtue with regard to one’s tasks in life consists of trying to acquire skills and education, working hard, not spending more than necessary, being patient, and persevering. Conspicuous consumption is taboo, as is losing one’s temper. Moderation is enjoined in all things. Q. Discuss to what extent these ‘virtues’ might have contributed towards the spectacular economic growth of the five dragons during the 1980s and 1990s. Comment on their utility in the emerging age of innovation. Cultural Issues, Managemnet of Technological Innovation, KV Patri

32. General conditions to be taken care of in business with EC [gen Schoon] • Language • 15 European languages • American English (except UK) • Cultural Differences • “Prussian Perfectionism” (Germany) • “British Empire” (UK) • “la grande nation” (France) • “mediterranes savoire vivre” • “Skandinavian coolness” • Communication and Management Style • National differences are getting smaller • But the liveliness is different Cultural Issues, Managemnet of Technological Innovation, KV Patri

33. Power and Influence in Organizations [Handy 1996] Influence Power Source Overt Unseen Physical Force Ecology Resource Exchange Position Magnetism Rules & Prcdrs Expert Persuasion Personal Cultural Issues, Managemnet of Technological Innovation, KV Patri

34. Power Distance Index(Managing Authority) PDI indicates the extent to which the less powerful members of institutions and organizations within a country/region accept that power is distributed unequally. Cultural Issues, Managemnet of Technological Innovation, KV Patri

35. Large PDI: • Considerable dependence (or counterdependence) of subordinates on bosses. • Subordinates either accept or reject bosses totally (polarization). Small PDI: • Preference for consultation, i.e. interdependence, between subordinates and bosses. • Subordinates quite readily approach and contradict bosses. Cultural Issues, Managemnet of Technological Innovation, KV Patri

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37. Individualism Index(Managing Harmony) Individualism:Ties between individuals are loose. Everyone is expected to look after himself or herself and his or her immediate family.They prefer • Personal time: Having a job that leaves sufficient time for one’s personal or family life. • Freedom: Having considerable freedom to adopt one’s approach to the job. • Challenge: Have challenging work to dowork from which one can achieve a personal sense of achievement. Cultural Issues, Managemnet of Technological Innovation, KV Patri

38. Collectivism (Small II): People from birth onwards are integrated into strong, cohesive in-groups, which throughout people’s lifetime continue to protect them in exchange for unquestioning loyalty. They prefer • Training: Having training opportunities to improve one’s skills or learn new skills. • Physical conditions: Having good physical working conditions (good ventilation and lighting, adequate work space, etc.) • Use of skills: Being able to fully use one’s skills and abilities on the job. Cultural Issues, Managemnet of Technological Innovation, KV Patri

39. Managing Harmony [Hofstede 1982, p.18] Cultural Issues, Managemnet of Technological Innovation, KV Patri

40. Western Societies • Workplace • Run the system impersonally • Appointments are made, • promotions given, rules applied • impersonally • Having a brother-in-law as • one’s assistant is embarassing • Nuclear Family • Private • Personal Cultural Issues, Managemnet of Technological Innovation, KV Patri

41. TENSION Asian Societies Impersonal Workplace Management Personalized Workplace Management Extended Family Cultural Issues, Managemnet of Technological Innovation, KV Patri

42. “Asian ‘Personalistic’ Ways of Life” • Friends and relatives matter, friends of relatives matter, relatives of friends matter,,, • Wisdom of age matters • How could people with whom there were personal relationships one minute outside work be treated impersonally just like any one else half an hour later? • Must a helping hand to friends, family, ethnic group or tribe become nepotism? • Is Western-style impersonalism in every aspect of management an unavoidable condition of effective modern organization? Or have the Japanese or Chinese or other societies found an alternative way? [Hickson 1995] Cultural Issues, Managemnet of Technological Innovation, KV Patri

43. “Characteristic Chinese Small Business in HK” [Hickson 1995] • Paternalistic and personalistic. • Owner, frequently the head of the family, manages by direct personal involvement. • He brings in family members and others (with ability) he can trust. Benevolence is exchanged for loyalty. • Formalization is low. Written instructions, procedures and rules are minimal. • Supply-chain links dominated by owner’s relatives and friends. Informal links. Sometimes, exchange of directorships that follow personal links rather than financial interest. Cultural Issues, Managemnet of Technological Innovation, KV Patri

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45. Collectivism in Hong Kong Chinese collectivists give priority to considerations of how their behavior might affect their standing within the group. Hong Kong Chinese are more likely than Americans to pursue conflict if the stakes involved are high and if the other person is from an out-group. [Leung Kwok, 1988, Some determinants of conflict avoidance, J. Cross Cultural Psychology, Vol. 19, No. 1, pp. 125-136.] Cultural Issues, Managemnet of Technological Innovation, KV Patri

46. Individualism and Prosperity [Hofstede 1983] plotted per capita GNP in 1970 versus Individualism Index for a number of nations and found a positive correlation, i.e., wealthier nations are more individualistic. But, Is individualism the cause of prosperity? Or, is prosperity the cause of increase in individualism? Cultural Issues, Managemnet of Technological Innovation, KV Patri

47. Masculinity Index(Managing Oneself) Masculine Societies (large MI): They prefer • Earnings: Having an opportunity for high earnings. • Recognition: Getting the recognition one deserves when one does a good job. • Advancement: Having an opportunity for advancement to higher level jobs. • Challenge: Have challenging work to dowork from which one can get a personal sense of accomplishment. Cultural Issues, Managemnet of Technological Innovation, KV Patri

48. Feminine Societies (Small MI): They prefer • Manager: Having a good working relationship with one’s direct supervisor. • Cooperation: Working with people who cooperate well with one another. • Living area: Living in an area desirable to oneself or one’s family. • Employment security: Having the security that one is able to work for one’s company as long as one wants to. Cultural Issues, Managemnet of Technological Innovation, KV Patri

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50. Sectorial Factors in HK Public Sector Managers value advancement opportunities, and security for employment (Feminine?). Private Sector Managers value opportunities for advancements and high earnings (Masculine?). [Chau, Irene Hau-siu, 1988, Work related values of middle managers in the private and public sectors, Proc. 1988 Academy of International Business South East Asia Regional Conf., Bangkok, June 23-5, A14-25.] Cultural Issues, Managemnet of Technological Innovation, KV Patri