comments from the editor - michigan state...

Editorial: the Link between Culture and

Management

It is interesting to the publishers of Insights,how, almost by chance this issue’s articleshave all addressed in some form or other theinextricable link between culture and man-agement, and illustrate from various angleshow important it is to consider the cultur-al/global context when doing business in orwith a different society, even in this era ofmassive globalization. In one of the mainarticles, the likelihood of Japanese businessundergoing major changes in their well-known participative, con-sensus building management style with its long term focus, is dis-cussed, and dismissed as unlikely due to the underlying Japaneseculture. Even the other main article on China’s accession to theWorld Trade Organization, while focusing on macro economicissues, points to the importance of the Chinese culture and itsresistance to change, in determining how far China is likely to gowith opening its markets and liberalizing regulation. The articleof virtual teams talks about the need for face-to-face meetings tofacilitate real progress, which I think is a function of the humanneed to actually see and interpret body language and other signalsto feel they understand where others in the group are comingfrom. The Culture Notes point to some obvious faux pas in busi-ness that result from ignoring cultural norms and ways of doingthings and finally even the teaching note suggests that local casesprovide a way of demonstrating management theory in a cultural-ly familiar context, that allows the student to identify and under-stand that theory more easily. The "insight" is clear, think locallybut act globally!!

Volume 3 No. 1 2003 1I N S I G H T S

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Volume 3, No. 1, 2003Insights

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2 Volume 3 No. 1 2003 I N S I G H T S

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Management StudiesUniversity of the West Indies

Cave Hill, Barbados

Advisory Board

Nancy Adler, McGill University,Canada

Zeynep Aycan, Koc, TurkeyJagdeep Chhokar, Indian

Institute of Management, IndiaTerry Jackson, EAM, United

KingdomDavid Ricks, University of

Missouri, USATagi Sagafi-nejad, Loyola

College, Maryland USAPaul Simmonds, North Carolina

A&T State University, USAAlvin Wint, University of the

West Indies, JamaicaAtilla Yaprak, Wayne State

University, USA


Despite the economic slowdownof Japan in recent years, Japanis still the second largest econ-

omy in the world, based on its grossdomestic product. Kono and Clegg(2001) argued that the economic prob-lems of Japan are based on its financialand bureaucratic systems and not on itmanagerial systems. They also arguethat the Western business world canstill learn much from Japanese man-agement practices. Management sys-tems in Japan have exhibited unparal-leled dynamism throughout history andhave been studied around the world.

Japan’s economic influence over thepast decades has led to substantialinterest in Japanese management prac-tices. Further, many ask “will theJapanese management system becomemore like the one in the United Statesor will it remain a hybridized system ofmanagement embodying a mix ofEastern and Western cultural ele-ments?” For example, some authorshave contended that Japanese andWestern approaches to corporate gov-ernance are converging (e.g., Simeon,2001), while others have contendedthat, despite recent changes inJapanese management style, importantdifferences continue to exist (e.g.,Kono and Clegg, 2001).

In their book, Trends in JapaneseManagement: Continuing Strengths,Current Problems, and ChangingPriorities, Kono and Clegg (2001)suggested that in the last decade signif-icant changes have taken place in the

Japanese system of management.Among them are: the empowerment ofshareholders, the emphasis on valueadded economic activities, the devel-opment of career paths and skillenhancement in young managers, theintroduction of merit pay, the decen-tralization of decision making, and theformation of alliances outside theboundaries of the traditional keiretsu.This suggests that Japanese manage-ment approaches are changing.

Masui and Kakabadse (2002) reportedon the changes in the decision-makingprocess that need to occur in Japanesecompanies. According to these writ-ers, Japanese organizations need tooverhaul their management systemsincluding shareholders’ meetings,introduce an officer system to reducethe number of board members, aban-don the seniority system and identifyyoung professional at an early stage,and accept individual responsibility indecision making. This suggests a needfor change, rather than ongoingchange. (One wonders also whetherthe authors are suggesting implanting aWestern concept of management ontothe Japanese corporate culture).

In contrast to these views, there is evi-dence to suggest that managementpractices are unlikely to change, or willchange only slowly:

Japanese firms operate in a specialcultural context, one that is based oncomplex rules, interpersonal relation-ships, a unique history, a homogeneous

population, distinctive political, educa-tional, and institutional systems, and ahierarchical structured culture(Nishiyama, 1999). To explain theunique nature of Japanese institutions,corporate networks, and management,Bhappu (2000) used an anthropologi-cal approach. Her research suggeststhat the Japanese management systemscan be traced to the evolution of theJapanese family, and that social capitalis instrumental in the development ofpolitical and business environmentsand the persistence of the Japanesemanagement system

Decision-making processes are quitedifferent in Japanese organizationswhen compared to Western firms. Alaand Curdier (1999) wrote about theJapanese philosophy of ringiseido.According to this philosophy, partici-pative decision-making is preferredutilizing opinions from multiple levelsof management. The ringi decisionmaking process stimulates group har-mony, conformity and togetherness,provides a feeling of participation andmoral suasion for enforcing groupcompliance, and creates a sense ofhierarchy and loyalty to the group. Incontrast to Western management,where one person in control exertsstrong influence over the direction ofthe company; the Japanese manage-ment system places limited responsi-bility on individual decision makers.

Research and Development (R&D) isanother area in which Japanese compa-nies differ from their Western counter-

Japanese Corporate Management in Transition:Will it converge with the US?

By Ilan Alon Crummer Graduate School of Management, Rollins College


parts. Using citation analysis in across-national study of a high-technol-ogy industry (flat-panel display),Spencer (2001) found that Japaneseuniversity research is less influentialthan Japanese corporate research ascompared to the US, where Universityand corporate research showed a mar-ginal difference. The Japanese seemedto be focused more on applied ratherthan basic research when comparedwith the United States. Matsushita, forexample, has shifted toward appliedresearch over the years. In 1984, 54%of its R&D was basic research, com-pared with 25% in 1995. Interestingly,much of the research in Matsushita hasbecome contract-based (Nathan,1999).

The applied orientation pervades thehuman resource development aspect aswell. In an interview with Sony’s

Yoshihide Nadamura, Beamish (1999)reported that while Sony providesopportunities to their employees topursue graduate education, the compa-ny prefers on the job training anddevelopment as a general guiding prin-ciple. Japanese management systemsremain unique in that they focus onlonger term strategies, they emphasizehuman resource investment, and theybalance shareholders’ value with thatof other stakeholders of the organiza-tion, such as employees, banks, suppli-ers, and customers (Kono and Clegg,2001).

While the Japanese management sys-tem may adopt, and adapt, certainpractices from the United States, andthe United States may do the samewith Japanese practices, it seemsunlikely that management practiceswill converge. The evidence suggests

that Japanese culture has been slow tochange and that it has a pervasive andpersistent impact on the political andeconomic institutions of Japan. These,in turn, have a pervasive and persistentimpact on organizations and their man-agement practices. Japan has been dif-ferent and will likely remain differentfor the foreseeable future. It is impor-tant to recognize that Japanese organi-zations remain among the most com-petitive in the world, and much can belearnt from them on issues of humanresource management, organizationalstructure, global management, andR&D development. The recent nega-tive developments in the Japaneseeconomy should not be used as a rea-son to dismiss the management sys-tems and global strategies, which theJapanese employ.

REFRENCES

Ala, Mohammad and William P. Cordeiro (1999), “Can We Learn Management Techniques for the Japanese RingiProcess?” Business Forum, 24 (1/2), 22-23.

Beamish, Paul W. (1999), “Sony’s Yoshihide Nakamura on Structure and Decision Making,” Academy of ManagementExecutive, 13 (4), 12-16.

Bhappu, Anita D. (2000), “The Japanese Family: An Institutional Logic for Japanese Corporate Networks and JapaneseManagement,” Academy of Management Review, 25 (2), 409-415.

Kono, Toyohiro and Stewart Clegg (2001), Trends in Japanese Management: Continuing Strengths, Current Problems, andChanging Priorities, New York: Palgrave.

Masui, Kazuhito and Andrew kakabadse (2002), “Introducing Officer Systems in Japanese Companies,” CorporateGovernance, 2 (1), 10-12.

Nathan, Richard (1999), “Matsushita Hopes Silicon Valley Links Can Boost Its R&D,” Research Technology Management,42 (2), 4-6.

Nishiyama, Kazuo (1999), Doing Business in Japan: Successful Strategies for Intercultural Communication, Honolulu:University of Hawaii Press.

Simeon, Roblyn (2001), “Top Team Characteristics and the Business Strategies of Japanese Firms,” CorporateGovernance, 1 (2), 4-13.

Spencer, Jennifer W. (2001), “How Relevant is University-based Research to Private High-Technology Firms? A UnitedStates-Japan Comparison,” Academy of Management Journal, 44 (2), 432-440.


Some Implications of China joining theWTO

Animesh GhoshalDePaul University

China’s accession to the World Trade Organization inDecember 2001, a milestone in its reintegration with the glob-al economy, is beginning to change the economic landscapeof East Asia, and have a profound impact not only on Chinaand East Asia, but the rest of the world. The excitement,uncertainty, and fear this has generated are due not only to thesheer size of China’s economy, but also to the speed of itseconomic expansion.

It may be useful to present a few numbers to see the enormousgrowth, and understand the implications at both the macroand the firm level. Since economic reforms began in 1979,the economy has grown by about 10 percent a year. Trade hasgrown faster, at about 15 percent a year, with exports risingfrom $50 billion in 1990 to $ 250 billion in 2000 and $325billion in 2002. Foreign direct investment has grown evenfaster, from $4 billion in 1990 to $40 billion in 2000 and $53billion in 2002; in fact, according to a UNCTAD studyi, Chinais very likely to have overtaken the United States as thebiggest recipient of FDI last year. In 2002, China replaced theU.S. as the major exporter to Japan, and at the firm level, sur-passed the U.S. as the major foreign market for Volkswagen.While statistics on China’s economic growth can be mindnumbing, I will provide one more to show the impact of thison the standard of living: in 1980, the country produced 400washing machines; in 2001 the figure was 10 millionii. This iswhat has given legitimacy to a government that remains auto-cratic, opaque, and unaccountable to its people.

The primary cause of China’s astounding economic perform-ance was that after Mao’s death, the "second generation"leaders headed by Deng Hsiao Peng recognized the econom-ic success of South Korea and Taiwan, and instituted a neweconomic policy promoting a market economy and a partial-ly open door to foreign trade and investment, though no chal-lenge to the Communist Party was to be tolerated. Initially,


Deng established free markets in agri-culture, and abolished collectivefarms; then the private sector wasslowly allowed into services andindustry. In trade, the goal of autarkywas quickly abandoned, and compara-tive advantage began to be the domi-nant factor in export and import pat-terns.

The partially open door to foreigntrade and investment is expected to beopened much wider with admission tothe WTO and acceptance of its rules. Ishould note that China had applied tojoin the WTO’s predecessor, theGATT, as early as 1986, and wentthrough 15 years of difficult andfraught negotiations. Its keenness tojoin has two reasons. The obvious,external, one is that it provides assuredaccess to world markets for its exports.As a WTO member, China’s productsare assured of "most favored nation"treatment in the U.S., and subject to anaverage tariff of 8 percent; withoutMFN treatment, the average tariffwould be a prohibitive 40 percent. Thiscan explain why China is willing tosubject itself for the first time to WTO

rules and disciplines. A more subtlereason is internal: the "third genera-tion" economic leadership under thePrime Minister, Zhu Rongji, realizedthat a lot of inefficient state ownedindustries needed forced change. WTOaccession is being used by reformers toimprove competitiveness; it is alsobeing used as an excuse to attempt totransform government behavior."WTO offices" have been set up inmajor cities, with the goal of educatingthe public and government officialsused to a planned economy about rulesof a market economy. In the eyes ofsome representatives of these offices,"WTO" is completely intertwined withoverall economic reformiii.

China’s eagerness to be admitted hasled it to make the most far-reachingcommitments in the history of WTOnegotiations. On the import side, it hasagreed to swiftly lower tariffs. As anexample, tariffs on cars are to bereduced from 80 percent in 2001 to 25percent in 2006, while tariffs on autoparts are to fall from 20 percent to 10percent. Non-tariff barriers in the autoindustry, like local content require-

ments, are also to be eliminated by2006. While very few service importswere allowed before 2001, now for-eign banks, insurance companies,retailers, and distributors, will be per-mitted to operate, as will foreigntelecommunication firms. On theexport side, direct export subsidies willbe eliminated, and China has agreedthat its trade partners can use "safe-guards" against a surge in imports fromChina for 12 years—an extraordinaryconcession. China has also agreed toabide by international rules protectingintellectual property, provide nationaltreatment for foreign investors, anddevelop a uniform commercial code.

Research by the World Bank, the USInternational Trade Commission, andthe Development Research Center inChina conclude that WTO accessionwill raise China’s growth by about halfa percentage point a yeariv. This, ofcourse, provides both opportunitiesand threats to firms in other countries.China’s exports as well as imports areexpected to increase significantly; thetable below gives an idea of the impactof the accession:

China’s exports as a share of China’s Imports as a share ofworld exports (%) world exports (%)

1995 2005 1995 2005Without With Without WithWTO WTO WTO WTO

Apparel 19.6 18.5 47.1 1.0 1.1 3.7Textiles 8.4 8.8 10.6 13.4 18.0 25.5Beverages & Tobacco 2.4 1.0 1.0 0.9 1.3 16.2Automobiles 0.1 0.7 2.2 2.0 1.8 4.8

All Products 3.7 4.8 6.8 3.4 5.3 6.6

Source: Ianchovichina et. al., 2000.


While the overall impact is clearlypositive for China, the benefits will bedistributed unevenly. The strongestimpact is that institutional change isaccelerated, with laws and regulationsbecoming conformant to those of amarket economy. But there are signif-icant costs as well, with the biggestconcern being unemployment.Already more than 10 million work-ers have been laid off from stateowned enterprises (SOEs), breakingthe "iron rice bowl"—the implicitsocial contract under which workersgave unquestioning obedience to theCommunist party in exchange foreconomic security. The WTO acces-sion has increased the pressure in twodistinct areas. First, agriculture,which is quite inefficient by worldstandards, will experience a shock,and agricultural imports will makefarmers redundant, precipitating amovement to the cities. Second, therewill be a great deal of pressure forstreamlining industry. As an example,the fragmented auto industry, whichhad 118 assembly firms in 2000, willneed to undergo a drastic consolida-tion.

There will also be uneven effects ondifferent parts of the country. The"rust belt" in the northeast will clear-ly be a loser. This is where the heavycapital-intensive industries like steeland chemicals are concentrated.Moreover, 70 percent of the employ-ment is in SOEs, which have alreadyexperienced large layoffs, leading torare demonstrations in 2002.Shanghai and the surrounding areawill do well, since the economy ismore knowledge based, with thelargest concentration of educationalinstitutions. The big gainer isGuangdong province adjacent toHong Kong, and specially the PearlRiver delta, which is rapidly becom-ing one of the world’s greatest manu-facturing centers. This region has theadvantage of not only proximity toHong Kong, but also being one of the

first areas where a market economywas attempted under Deng’s reforms;today only 30 percent of employmentis in SOEs.

Will the projected reforms actually becarried out? That is a difficult ques-tion, specially considering the changein leadership China is going through.The current government, and special-ly Prime Minister Zhu Rongji, seemsincere in their commitment toreform. As an example, in Decemberan appeals court upheld a patentinfringement complaint by PhillipsElectronics against Chinese designedelectric razor, the first time a westerncompany has won such a case. Thiscan be seen as evidence that intellec-tual property laws are being respect-ed. However, counterfeiting remainsrampant within the country, with astreet market devoted to Rolex watch-es, Gucci handbags, Eddie Bauerjackets, etc. flourishing within walk-ing distance of the American embassyin Beijing. Moreover, a "fourth gen-eration" is in the process of takingover, and very little is known aboutHu Jintao, who assumed the positionof general secretary of theCommunist party in November 2002.What is known is that there is a lot ofresistance to reforms at the locallevel, and local governments canthwart the promise of open markets.As an example, all taxis in Shanghaiseem to be Santanas; it is an interest-ing coincidence that the Santana isproduced as a joint venture betweenVolkswagen and the ShanghaiAutomotive Industrial Corporation.

It is also important to note that somechanges are less than what they seem.While foreign banks were very excit-ed at the idea of being able to offerservices to Chinese customers inRMB (the local currency), each for-eign bank is allowed to open only onenew branch a year. The Bank ofChina, in contrast, has thirteen thou-sand branches. Similarly, the telecom-

“Already morethan 10 millionworkers havebeen laid off

from state ownedenterprises

(SOEs), breakingthe "iron ricebowl"—the

implicit socialcontract underwhich workers

gave unquestion-ing obedience tothe Communist

party inexchange for

economic security.”


End Notes:

i "UNCTAD Predicts 27% Drop in FDI Inflows This Year", UNCTAD press release TAD/INF/PR/63, Oct. 24, 2002. Itshould be noted, however, that this was primarily due to a huge fall in FDI into the US from its normal levels.

ii Briefing at International Bank of Asia, Hong Kong, Mar.22, 2002.iii Briefing at WTO Affairs Office, Shanghai, Mar. 29, 2002.iv World Bank, "Economic Impacts of China’s Accession to the WTO", Dec. 2002; USITC, "Assessment of the Economic

Effect on the United States of China’s Accession to the WTO", Aug. 1999; Briefing at Development Research Centerof the State Council, Beijing, Mar. 25, 2002.

v While there is considerable unhappiness in the United States about its bilateral trade deficit with of $100 billion withChina, China’s overall trade surplus was only $27 billon in 2002—a little smaller than Canada’s, and has been falling.Moreover, China currently has a trade deficit with East Asian countries like Malaysia, South Korea, and Thailand.

References:Perkins, Tony, and Shaw, Stephen (2000). China in the WTO: What will Really Change? McKinsey & Company.Lardy, Nicholas (2002). Integrating China into the Global Economy. Brookings Institution. Ianchovichina, E, Martin, W. and Fukase, E (2000). Assessing the Implications of Merchandise Trade Liberalization in

China’s Accession to WTO. World Bank.China and the WTO, Financial Times Survey, March 15, 2002. Koo, Jahyeong, and Fu, Dong (2002). "China’s Growing Economic Influence in East Asia After WTO", Southwest

Economy, Federal Reserve Bank of Dallas, May/June 2002.

I would like to thank the U.S. Department of Education for supporting, through a grant to the DriehausCenter for International Business at DePaul University, travel to China in 2002 to study the implicationsof China joining the WTO. Neither institution is, of course, not responsible for the views expressed here.

munications industry is being openedto foreign firms through joint ventures,but the partner must be one of the cur-rent four state owned telecoms compa-nies. And the regulator directly ownstwo of these.

Finally, while I have been dealing pri-marily with economic changes, thereare very important socio-politicalissues to be kept in mind. One is unem-ployment, already referred to. Theother is rising inequality. Most of thegrowth has been in the east coast, andthe stark contrast between the wealthyand poor regions can be seen by com-paring Shanghai and China as a whole.In the year 2000, 1 percent of Chinese

households owned a personal comput-er, compared to 26 percent of Shanghaihouseholds. For cell phones, the fig-ures are 3 percent vs. 30 percent. If thisgrowing inequality leads to serioussocial unrest, the consequences wouldbe very unfortunate.

It is, of course, foolhardy to make pre-dictions about China, but there is aclear consensus that China’s accessionto the WTO, and its engagement withthe rest of the world, will benefit theworld economy, if China is able tocomply with its commitments. Lowprice, high quality Chinese productshelp consumers throughout the world(albeit with adjustment costs). At the

same time, open markets and rulesbased trading provide opportunities tonot only industrial countries engagingin FDI and exporting high tech prod-ucts, but also to developing countrieswith a comparative advantage in agri-culture, energy, and natural resourcesv.The danger is that social stability maybecome a constraint to reform at thebest, and that unrest may lead to apolitical as well as an economic crack-down at the worst. A rapidly growingChina, opening itself to the worldunder WTO rules, can only be benefi-cial for the world economy.


A Note on Two Virtual Teams

Betty Jane Punnett, ProfessorInternational Business & Management

University of the West Indies, Cave Hill Campus

The last issue of Insights included two articles describingtwo different virtual teams. One team called “SuccessfulWomen Worldwide” (SWW), the other the “InternationalOrganizational Network” (ION). I have the good fortune(sometimes I think the challenge) of belonging to both ofthese virtual teams. It is good fortune because both teamsare doing interesting and exciting work. It is a challengebecause I sometimes find that the obligations to each arein conflict, and that my ‘real’ time can also be in conflict.Managing both real work and virtual work can certainlybe challenging. Virtual is fascinating and tempting,because it allows one to be involved in a greater array ofprojects than previously possible, and virtual interaction isexciting, because one can be productive without ever leav-ing home. My experience suggests, at the same time, thatone has to select the virtual projects that one joins withcare – they take much time and effort, and they need effective leadership, if they are to succeed. In addition,my experience with both teams has been that we accomplish substantial breakthroughs when the team meets in-person, thus, real (face-to-face) interaction remains critical to completing virtual projects successfully.

The two teams share similarities, but there are also differences between them, and the differences have had anoticeable impact on how they operate. Following is a short description of the two teams, with a summary ofsome similarities and differences. I conclude with what I feel is an important insight on managing virtual aca-demic teams.

The SWW team consists of a small core of individuals, and a growing network of associates, tightly focusedon one major research project. The SWW core group, and associates, is guided by relatively well-defined pro-tocols. The SWW team has no strong leadership. The SWW group chose not to have a ‘leader’ or group of lead-ers, and members of the core group agreed to take on various leadership tasks, thus, insofar as leadership existsin this group, it is dispersed. For this to work, the group needed to identify appropriate substitutes for leader-ship, and well-defined protocols served this purpose.

The ION team is a larger, more loosely organized group, with fluctuating membership, continuously seeking,and working on, relevant projects. The ION group is guided by evolving expectations, depending on the proj-ects its members choose to embrace. The ION concept was developed by a small enthusiastic group of people,and this group has become the dedicated leaders of ION. This dedicated group of leaders (which will evolveover time) provides cohesion for a loosely coupled team.

The next page presents a comparison of the two teams on a number of salient dimensions.

Members of the ION Team


COMPARING TWO VIRTUAL RESEARCH TEAMS

Membership The SWW team consists of about ten members, and expects this number togrow. The ION team consists of about fifty members and wants this toremain stable, while finding ways of providing access to other interestedpersons.

Leadership The SWW team has no formal leaders, and has not identified such a struc-ture. The ION team has a leadership structure and is considering formaliz-ing this.

Size The SWW team (core members and associates) is small, but flexible interms of size. The ION team is larger, and concerned with identifying anoptimal size.

Makeup The SWW team is largely female. The ION team is mixed in terms of gen-der. Both teams include members from a variety of countries.

Funding The SWW team has relied on individual members to access locally availablefunding for local research, and have met opportunistically at academic con-ferences. The ION leaders have identified funding for in-person meetings,and have organized meetings separate from other conferences.

Objectives The SWW team has a specific academic research project to complete, andintends to disseminate results in traditional academic outlets. The IONteam has objectives that include understanding of processes, greater inter-action with international business managers, and dissemination of results ina variety of outlets.

Communication Both teams communicate in a friendly and supportive manner. One of themost positive aspects of a globally dispersed team is the apparent supportthat team members receive from others.

One reason that the two teams have evolved differently, from my perspective, is that the ION team grew from the initia-tive of a couple of people, with a group of supporters. This founding group became ION’s leaders, willing to assume man-agement roles (e.g. planning, organizing, staffing, directing, controlling). The SWW team evolved from a research work-shop, with a specific focus, but no similar leadership structure. Without a leadership structure, individuals in the SWWteam accepted tasks, but the management roles were not clearly covered. To make up for this, well-defined protocols wereneeded (ie, substitutes for leadership). This suggests that leadership is a critical issue for any virtual group to address andunderstand. The somewhat different leadership approaches adopted by these two teams have each worked well, and bothgroups are currently functioning effectively. Many approaches may work, but I believe that leadership is essential in everyvirtual team.


CULTURE NOTES

The following examples show why it is so important that people doing international business under-stand that others do not necessarily share their cultural values and norms. International business peo-ple need to take the time to research and understand values and norms before attempting to do businessin new countries.

"Apart from English speaking countries there are few countries where business people address eachother by first names after a short time. For example, in Germany even longstanding business part-ners may choose to address each other by their surnames. A German relative (of the author) whohas worked at the same company for 25 years still only addresses two of her co-workers by theirfirst name. She was insulted to receive an email from a US representative addressing her as DearHelga. She had addressed her email to Dear Mr XXX and expected the same courtesy in reply.She said: "I have no respect for this man as he has shown no respect to me." Her impression ofanything contained in the email was clouded by the first cultural blunder."1

One Canadian spent enormous time and energy on his presentation to a Southeast Asian governmentagency. His initial excitement over the packed auditorium later turned to disappointment when hediscovered that the room was filled with individuals whose attendance was mandatory. The audi-ence had neither expertise in the field nor decision-making authority.

In France, India and Iran, where history is particularly valued, one successful international presen-ter captured the audience’s attention by talking about past successes. In contrast, when in theUnited States, the same presenter emphasized prospects and future potential.

A Canadian consultant who introduced herself to a Korean audience by emphasizing her personalexperience and education, failed to maximize her credibility. In countries like Korea and Japan, itis important to tie in your status with your company. Her credibility as an individual was unim-portant compared to the reputation of her company, and her position within it.2

1. Taken from www.aushomepage.com.au/article/48/, written by Kerry Dujmovic, 17th March, 20012. Taken from http://exportsource.gc.ca/pdf/epeng.pdf , "Speaking Globally: An Exporter’s Guide to Effective Oral Presentations"


TEACHING INSIGHTA Case for Writing Local Cases

Donald M. Wood

Cases bring reality into the classroom and stimulate student interest. Theyallow students to focus on making decisions in a real context and to formulatepractical and applicable ideas. The challenge in the Caribbean (and likely inmany other places) is that there is little locally-based teaching material, withwhich local students can identify. Most texts and cases have been written forthe North American and European markets, and it is difficult to identifyappropriate cases for other locations. Students can, and should, analyze tradi-tional Harvard and Ivey cases, but they cannot relate completely with the sit-uations portrayed in these. This has the effect of diminishing interest andenthusiasm for case situations, and leads to students’ viewing them as inter-esting from an academic point of view, but not relevant to practicing man-agers.

A recent workshop (put on by The Ivey School, University of WesternOntario) on writing business cases answered this challenge for me. I realizedthat I do not need to screen hundreds of cases trying to find one that is some-what relevant to my objectives and local conditions. Instead I can write myown case to illustrate specific concepts, from a local perspective. The work-shop provided the discipline and structure to develop a good local case thatwould withstand questions from eager and bright students, and stimulate classdiscussion and participation.

I believe in using cases for teaching, but until now I have been frustrated bythe lack of materials clearly focused on the specific course elements that Iwant to illustrate, and the lack of locally relevant material. The teachinginsight from this experience is "when you can’t find exactly what you want,write your own case" (the epitome of the make or buy choice). This should notsuggest that writing a case is a simple undertaking – writing a good case takestime, effort, and discipline. I have discovered that it is possible, however, andthis experience has encouraged me to consider developing additional cases, tosuit varied teaching objectives, as well as the local environment. I wouldencourage others to consider doing the same.

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