CONGRESS PROCEEDINGS 21st Century Waves of Changearchives.sietareu.org/images/stories/congress2017... · IACCM - Setting up an international network of experts in the field of cross

SIETAR Europa Congress 2017

organised conjoint with

15th IACCM Annual Conference

and 8th CEMS/IACCM Doctoral Workshop

CONGRESS PROCEEDINGS

21st Century Waves of Change:

Cultural Dexterity for Turbulent Times

Edited by

Barbara COVARRUBIAS VENEGAS Marie-Therese CLAES Pari NAMAZIE

Copyright 2017 IACCM & SIETAR Europa

All rights reserved. No part of this publication may be used or reproduced in any manner whatsoever without written permission from IACCM and SIETAR Europa except in the case of quotations embodied in articles or reviews.

The views expressed by invited speakers or participants attending the SE Congress do not necessarily coincide with those of SIETAR Europa. The Board of SIETAR Europa therefore does not accept responsibility for the accuracy or the moral-ethical character of the content of any presentation.

15th IACCM Annual Conference and 8th CEMS/IACCM Doctoral Workshop: Congress Proceedings

1. Intercultural studies — cross-cultural studies

2. Intercultural communications — cross-cultural communication

Layout: Barbara Covarrubias Venegas

Editing: Javier Dominguez Martinez

Published by IACCM

SIETAR Europa

www.wu.ac.at/iaccm www.sietareu.org

http://www.wu.ac.at/iaccm

http://www.sietareu.org/

EDITOR’S FOREWORD The 15th IACCM Annual Conference and 8th CEMS/IACCM Doctoral Workshop was held in Dublin/Ireland in May 2017 i within the framework of the SIETAR Europa Congress and in partnership with Dublin City University. The IACCM (International Association of Cross Cultural Competence and Management) is an academic forum for experts in all fields of research who take an interest in and are concerned with cross-cultural topics. The project was initiated by the International Studies Centre at the Vienna University of Economics and Business Administration. The IACCM network is designed to offer its participants the opportunity to provide information and exchange views, thereby facilitating and intensifying international co-operation. Regularly organized conferences and the publication of a refereed journal (EJCCM) revised by an international editorial board shall guarantee additional information exchange at a high academic level. In 2009, under the auspices of the chair of the CEMS Cross Cultural Management Faculty Group and the director of doctoral programmes of the Vienna University of Economics and Business (WU-Wien), the CEMS Cross Cultural Management Faculty Group joined forces with IACCM to organize the annual CEMS/IACCM Doctoral Workshop (3ECTS), which took place the 8th time during IACCM Conference in Dublin/Ireland. The doctoral workshop adopted a design and principles developed through IACCM practices and discussed within the CEMS Research & Doctoral Education (RDE) Committee. The Society for Intercultural Education, Training & Research (SIETAR) Europa is an active member of the largest intercultural society worldwide that fosters awareness of intercultural research, politics, economy and education on global level. The SIETAR Global Connect network comprises more than 30 regional and national chapters. SIETAR ‘s purpose is to encourage the development and application of knowledge, values and skills which enable effective intercultural and interethnic relations at individual, group, organisation and community levels. SIETAR Europa serves as a forum for exchange among national SIETAR organizations and supports the establishment and development of new national SIETAR organizations. Over 350 delegates from all over the world attended the conference. Through the strong cooperation between IACCM and SIETAR Europa this congress brought together scientists and practitioners alike in order to foster the dialogue between practice and theory in the cross-cultural field. Each section in this congress publication is devoted to the following type of submissions (click on the corresponding session to get directly to the correspoinding section): CEMS Doctoral workshop papers, Academic papers and Poster session papers

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https://www.wu.ac.at/iaccm/about-iaccm/

http://www.cems.org/


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Congratuations to our award winners The IACCM 2017 student best paper award was judged by a panel consisting of CEMS professors Prof. Marie-Therese Claes (Louvain School of Management/Belgium) and Prof. Gerhard Fink (WUWien/Austria). The best academic congress paper award and the "That's Interesting” award was judged by the reviewers and the session chairs. The "That's Interesting Award" aimed at awarding papers, that particularly

• Cross intellectual boundaries

• Challenge taken-for-granted assumptions

• Attract the reader's attention

• Make a very original argument

The award winning full papers are:

Best student paper award winner: Greenaway, Thomas William (University of Warwick,

UK): "Creating ‘Global Graduates”: in what ways do students develop teamwork skills

and intercultural competencies through teamwork?"

Best paper award winners: Chiara Cannavale (University Parthenope, Italy) and Marie-

Thérèse Claes (Louvain School of Management, Belgium): “The role of previous

international experiences for self-initiated expatriates. The impact of cultural values.”

That's Interesting Award winner: Thomas Gerard Grenham (Dublin City University,

Ireland): “The Role of Inclusive Religious Education in Cultural Perspective Change”

A special thanks to The Society for the Advancement of Management Studies (SAMS) who supported the CEMS doctoral workshop with a funding. SAMS is a charity, established in 1963 by Professor Grigor McClelland and its´ broader remit is to advance education in the field of management studies.

AND: a very big “Go raibh maith agat” (thank you) to Javier Dominguez Minero, who was

in charge of typesetting and editing this volume – excellent work – thank you very much!

And now — enjoy the excellent variety of articles about 21st Century Waves of Change – Cultural Dexterity for Turbulent Times!

In partnership with

Barbara COVARRUBIAS VENEGAS Marie-Therese CLAES Pari NAMAZIE Editors

http://www.socadms.org.uk/

http://www.socadms.org.uk/

PREFACE SIETAR EUROPA

It is with great pleasure to present the congress proceedings for the academic track of the SIETAR Europa congress in Dublin (24-27 May 2017) with the congress theme: 21st century waves of change: Cultural dexterity for turbulent times.

The global SIETAR network is the largest intercultural society worldwide, committed to fostering awareness and the development and application of knowledge, values and skills enabling effective intercultural and interethnic relations at the individual, group, organisation and community levels. The network is multi-disciplinary working across the fields of anthropology, psychology, sociology, education, management, international relations, religion, gender studies, cultural studies and political science. Although our members are more practitioners, there has always been a strong academic and theoretic component within our community. We are therefore thrilled to continue this special academic track for the second consecutive SIETAR Europa congress and bring to the forefront leading academic thinking from researchers, scientists, practitioners and academics.

We are also delighted to be working in cooperation with the IACCM where together we continue to marry practice and theory in the cross-cultural field.

I thank the academic track team and all the people involved, from the researchers and authors, to the reviewing team, to the team who diligently put these proceedings together.

I hope you enjoy the papers in this volume and that it inspires us to ask more questions, find ways we can discover, learn and share together.

Warm wishes

Dr. Pari Namazie

President SIETAR Europa

THE ORGANISATIONS BEHIND THIS ACADEMIC TRACK

CEMS - The Global Alliance in Management Education or CEMS (formerly the Community of European Management Schools and International Companies) is a cooperation of the world's leading business schools and universities with multinational companies and NGOs. CEMS includes 29 academic institutions from 5 continents, over 70 corporate partners and 4 social partners from around the globe. This alliance administers the delivery of CEMS MIM degrees in its member schools, supports the CEMS Alumni Association (CAA) and facilitates general cooperation among its members. CEMS professors chair the CEMS Doctoral workhshop professions.

IACCM - Setting up an international network of experts in the field of cross cultural competence provides the possibility for co-ordinated knowledge transfer and aims at bringing together those who work on issues related to cross-cultural competence and management in order to promote and develop this subject collectively. The emphasis is laid on the organization of international workshops and conferences for networking of experts in the field, and the creation of common research projects. Furthermore, it is not only a platform for the submission of project proposals, but also an avenue for facilitating partnerships on related projects and consolidating networks for better access to research funding. IACCM Council Members

The Vienna University of Economics and Business (German: Wirtschaftsuniversität Wien or WU) is the largest university focusing on business and economics in Europe and, in terms of student body, one of the largest universities in Austria. It has been ranked as one of the best business schools in Europe.


http://www.wu.ac.at/iaccm/about-iaccm/mission-and-practices/

http://www.wu.ac.at/fileadmin/wu/o/iaccm/Diverses/IACCM_Council_Members.pdf

http://www.wu.ac.at/

https://en.wikipedia.org/wiki/German_language

https://en.wikipedia.org/wiki/University

https://en.wikipedia.org/wiki/Business

https://en.wikipedia.org/wiki/Economics

https://en.wikipedia.org/wiki/Europe

https://en.wikipedia.org/wiki/Student

https://en.wikipedia.org/wiki/Austria

ACADEMIC COMMITTEE

Head of the Academic Committee Barbara Covarrubias Venegas/SIETAR Austria [email protected]

Prof. Marie-Therese Claes Louvain School of Management, Belgium

Prof. Gerhard Fink WU Vienna, Austria

mailto:[email protected]

Dr. Andrea Oterova

Javier Dominguez Minero Carinthia University of Applied Sciences, Austria

Joanna Smit Smit Training, UK

CONTENTS

Editor’s Foreword .................................................................................................................................... 4

Preface SIETAR Europa ............................................................................................................................ 6

The organisations behind this academic track ........................................................................................ 7

IACCM Council Members ..................................................................................................................... 377

Academic Committee .............................................................................................................................. 8

Contents ................................................................................................................................................ 10

CEMS Doctoral workshop papers .......................................................................................................... 12

Sociocultural pressures, idealization of the thin ideal, body dissatisfaction and academic

achievement: A comparison of adolescent Latinas and European Americans ................................. 13

Confucian Values and Expatriates’ Intercultural Competencies – A Case of Chinese Expatriates in

Poland ................................................................................................................................................ 18

Academic papers ................................................................................................................................... 21

Impact of EU intercultural attitudes towards its external cultural praxis ......................................... 22

Cognitive biases in decision-making in post-bureaucratic organizations ......................................... 39

Bias Mindfulness and Perceptual Shift: Key to Managing a Diverse Employee Base ....................... 59

Readiness for Workplace Diversity: Development of a German Scale ............................................. 74

Two sides to every story: a qualitative study on web-blogging about intercultural experiences .... 78

The role of Cultural Frame Switching and Cultural Conflict in developing intercultural competence

in context of cross-border interactions ............................................................................................. 83

Impact of EU-intercultural attitudes toward its external cultural praxis - perceived status

discrepancies ..................................................................................................................................... 91

A strategic approach to intercultural persuasive communication .................................................... 95

Asian Local Employees’ Acculturation towards a Multicultural Workplace ................................... 104

From International to Intercultural: Promoting Intercultural Intelligence Throughout the School.

The Case of a French School of Management” ............................................................................... 113

Collective emotional climate within social systems ........................................................................ 117

Intercultural Project Management – Processes and Methods for multicultural IT-Projects .......... 161

The role of linguistically sensitive education in shaping cultural sensitivity ................................... 177

The Benefits of Computer Assisted Language Learning (CALL) for Migrants and Migrant Families 181

Are Culturally Diverse Teams the More Creative Ones? ................................................................. 193

Exploring Organizational Subcultures and Strategic Goals in the Context of a German Higher

Education Institution via the Configuration Model of Organizational Culture ............................... 201

Students’ Cultural Intelligence Profile. A Comparative Study of Romania and Iceland .................. 227

Overcoming religious polarisation: Lindbeck´s cultural linguistic approach? ................................. 246

TCKs, identity and leadership .......................................................................................................... 257

Connecting across cultures: an empirical examination of multicultural individuals as global leaders

......................................................................................................................................................... 262

The role of previous international experiences for SIEs. The impact of cultural values ................. 268

Constructive Intercultural Management A paradigm shift? ........................................................... 275

The Adaptation of the Cultural Intelligence Scale in Central and Eastern Europe: application of

focus groups methodology .............................................................................................................. 279

The Role of Inclusive Religious Education for Cultural Perspective Change ................................... 283

Foundering in a sea of whiteness: International students and campus/classroom climate at U.S.

universities ...................................................................................................................................... 291

The Intra-Business Group Effect of initial public offerings .............................................................. 299

Culture and Entrepreneurial Intention Revisited ............................................................................ 338

A strategic approach to intercultural persuasive communication: a glance into history .............. 343

Poster session papers .......................................................................................................................... 351

The relationship of motivation, barrier and knowledge flow within organizations ....................... 352

Driving together: Mexican German Intercultural Communication in the Automotive Industry. ... 364

List of reviewers .................................................................................................................................. 377

IACCM – CEMS Congress Proceedings 2017 – www.sietareu.org/seucongress2017

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CEMS DOCTORAL WORKSHOP PAPERS

Best student paper award winner:

Greenaway, Thomas William (University of Warwick, UK): "Creating ‘Global Graduates”: in what ways do students develop teamwork skills and intercultural competencies through teamwork?"

http://www.sietareu.org/seucongress2017



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SOCIOCULTURAL PRESSURES, IDEALIZATION OF THE THIN IDEAL, BODY DISSATISFACTION AND ACADEMIC ACHIEVEMENT: A COMPARISON OF ADOLESCENT LATINAS AND EUROPEAN AMERICANS

Sosa, Tatiana

Georgia State University, United States of America

[email protected]

Abstract

Latinas are the country’s fastest-growing female minority population. Have the highest high school dropout rate of any other ethnicity, and report body dissatisfaction at a rate equivalent to their European American peers. Cutting across racial/ethnic and socioeconomic status, eating disorders occur most frequently during adolescence and target predominately females (Hudson, Hiripe, Pope, & Kessler, 2007). Although there is substantial research discussing the impact of risk factors such as sociocultural pressures, idealization of the thin ideal, and body dissatisfaction in the development of eating disorders among European American women, far less is known about how sociocultural pressures impact U.S. racial/ethnic minorities; thus it cannot be assumed that the literature applies equally to them. Research in this area would be explanatory in nature, and thus will add to the body of knowledge regarding the connection between sociocultural pressures (family, peers, and media), thin ideals, body dissatisfaction and academic achievement amongst Latina girls. Findings from such research will give us insight into the issues Latina girls deal with, and in turn could help guide the development of a preventative curriculum aimed at adolescent high school Latinas.

Key Words: Latinas, sociocultural pressures, thin ideal, body dissatisfaction, academic achievement

Purpose

Cutting across racial/ethnic and socioeconomic status, eating disorders occur most frequently during adolescence and target predominately females (Hudson, Hiripe, Pope, & Kessler, 2007). In a recent study of European Americans, Latinos, African Americans, and Asian Americans, no group differences were found in the prevalence of anorexia nervosa and bulimia nervosa; however Latinas and African Americans were found to have a greater prevalence of binge eating disorder (Marques, Alegria, Becker, Chan, Fang, Chosal et al., 2010). Although there is substantial research that discusses the impact of risk factors in the development of eating disorders among European American women, less is known about how sociocultural pressures impact U.S. racial/ethnic minorities and their body dissatisfaction and academic achievement; thus it cannot be assumed that the literature applies equally to racial/ethnic minorities.

Methodology/Research design

Methodology



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400 adolescent Latina and European American girls between the ages of 14 and 19 will be recruited to participate in the study from an ethnically diverse high school in a large urban area in Georgia.

Measures

Sociocultural pressures.

Sociocultural pressures will be measured using the 22-item Sociocultural Attitudes Towards Appearance Questionnaire (SATAQ-4, Thompson, Schaefer, Burke, Heinberg, Calogero, Bardone-Cone, Vercellone, 2011). The SATAQ-4 is a valid and widely used measure of appearance internalization, it has been shown to have good internal consistency, test-retest reliability, as well as convergent, divergent and predictive validity (Thompson et.al 2011). It is comprised of five subscales that measure various aspects of appearance internalization: internalization-thin/low body fat, internalization-muscular/athletic, pressures-family, pressure-peers, pressures-media.

Internalization of the thin ideal.

Internalization of the thin ideal will be measured using the internalization-thin/low body fat and internalization-muscular/athletic subscales from the SATAQ-4. The internalization subscales include 10 items with Likert- type scale responses, which range from 1 (Definitely Disagree) to 5 (Definitely Agree).

Body dissatisfaction.

The 22-item Body-Image Ideals Questionnaire (BIQ, Cash 2000) a measure to assess people’s evaluation of their physical appearance, will be used to measure body dissatisfaction. The BIQ has been found to a reliable and valid measure. The BIQ is useful because it allows for one to look at discrepancies between one’s physical ideals and the importance of them. In order to review these discrepancies 11 two-part questions are asked.

Academic Achievement

Academic achievement will be gathered from participants’ current grade point average (GPA) on a 4.0 scale from their high school.

Analytic Strategy

Confirmatory structural equation modeling (SEM) will be used to test both a model in which internalization of the thin ideal mediates the association between sociocultural pressures and body dissatisfaction and academic achievement for adolescent Latinas, and to examine the similarity between the mediational model for Latina girls and Caucasian girls. LISERAL 8.8 will be used to conduct these analysis. SEM is proposed for several reasons: (1) the simultaneous estimation of sociocultural pressures, internalization of the thin ideal, body dissatisfaction, and academic achievement, (2) the ability to the mediational effects for significance, (3) goodness-of-fit statistics for overall model adequacy. The proposed model is shown in Figure 1 on the Appendix section of this paper.

Findings and implications



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A pilot study conducted amongst 165 high school girls from an urban school district in Georgia indicated a significant 2-way interaction between media internalization and self-esteem, between media internalization and body dissatisfaction, as well as correlations with academic achievement. There were significant differences in means between ethnicity and body dissatisfaction. Latina adolescent girls internalized the media at higher rates than their African American peers, but at similar rates as their European American peers. Based on previous research, preliminary findings from my pilot study, and my own hypothesis, I conclude that both groups, Latina and European American girls, will internalize the thin ideal at similar rates. However, I believe that there will differences in where the pressure to look thin comes from, with Latinas feeling more pressure from the media to look thinner than their European American peers. I also hypothesize that there will be group differences between body dissatisfaction and academic achievement.

Research limitations

Research limitations include the lack of literature available in this field, thus limiting the number of supported findings from other researchers. Another limitation is that questionnaires used for the study are all self-reported and rely heavily on the honesty and full disclosure from the participants. Lastly, findings will not be generalizable to larger populations outside of the two ethnic groups mentioned.

Practical implications

Research in this area would be explanatory in nature, and thus will add to the body of knowledge regarding the connection between sociocultural pressures (family, peers, and media), thin ideals, body dissatisfaction and academic achievement amongst Latina girls. Findings from such research will give us insight into intercultural education, such as the issues Latina girls deal with, and in turn could help guide the development of a preventative curriculum aimed at adolescent high school Latinas.

What is original and/or what is the value of the paper?

Latinas are the country’s fastest-growing female minority population, have the highest high school dropout rate of any other ethnicity, and report body dissatisfaction equivalent to the rate of their European American peers. Three key constructs in the development and maintenance of eating disorders include: sociocultural pressures, internalization of the thin ideal, and body dissatisfaction. Research on the maintenance of eating disorders on European American females suggests that sociocultural pressures such as family, peers, and media play a significant role in body dissatisfaction (Thompson, Heinberg, Altabe, and Tantleff-Dunn (1999). In this suggested study, I investigate the role sociocultural pressures (family, peers, and media) have on body dissatisfaction and academic achievement of adolescent Latinas through the mediation of the thin ideal. To my knowledge, this research is first in its kind. Findings from this proposed research could be incredibly valuable in intercultural education, as evidenced by preliminary findings from my pilot study. It would provide us better insight into the issues Latinas face and the impacts these pressures have in their education attainment, thus providing us the information necessary to help guide the development of a preventative curriculum aimed at adolescent high school Latinas and later, with new research to other ethnicities.

Keywords

Latinas, sociocultural pressures, thin ideal, body dissatisfaction, academic achievement



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Bibliography

Cash, T.F. (2000). Manual for the body-image ideals questionnaire.

Cash, T. F., & Smolak, L. (2011). Understanding body images: Historical and

contemporary perspectives.

Hudson, J.I., Hiripi, E., Pope, H.G., Jr., & Kessler, R.C. (2007). The prevalence and

correlates of eating disorders in the National Comorbidity Survey Replication. Biological Psychiatry, 61, 348-358.

Marques, L., Alegria, M., Becker, A. E., Chen, C., Fang, A., Chosak, A., & Diniz, J. B.

(2011). Comparative Prevalence, Correlates of Impairment, and Service

Utilization for Eating Disorders across U.S. Ethnic Groups: Implications for Reducing Ethnic Disparities in Health Care Access for Eating Disorders. The International Journal of Eating Disorders, 44(5), 412–420.

Thompson, J.K., & Stice, E. (2001).Thin ideal internalization: Mounting evidence for a

new risk factor for body image disturbance and eating pathology. Current Directions in Psychological Services, 10, 181-183.

Thompson, J. K., Schaefer, L. M., Burke, N. L., Heinberg, L. J., Calogero, R. M.,

Bardone-Cone, A. M., ...Vercellone, A. C. (2011, September). Development and Validation of the 4th version of the Sociocultural Attitudes Towards Appearance Questionnaire (SATAQ-4).

Appendix

Fig.1 Path diagram illustrating mediation of the relation of sociocultural pressures to body dissatisfaction and academic achievement by internalization of the thin ideal.



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18

CONFUCIAN VALUES AND EXPATRIATES’ INTERCULTURAL COMPETENCIES – A CASE OF CHINESE EXPATRIATES IN POLAND

Chong Darren

Warsaw School of Economics, PL

Abstract

The works of previous research in different academic disciplines have been mainly directed towards figuring a culture-unspecific or universal concept of intercultural competence. In this regards, the Chinese perspective of intercultural competence models are claimed mainly developed by Western experts on the basis of Western theories, which are culturally-unspecific. By adopting Chinese expatriates in Poland as case study, this study aims to examine the association of intercultural competence with expatriate’s home-country cultural values in a culture-specific perspective. This study was conducted in three fieldwork phases, in-depth interviews, web-based survey and focus group. In conclusion, a Confucian-based model has been formulated comprises 14

intercultural competencies in five key dimensions, as per five values in Confucianism, namely, benevolence (仁),

righteousness (义), propriety (礼), wisdom (智) and fidelity (信.) However, this research, no doubt, needs to be

validated on a more quantitative level. In future, a comparative research can be conducted to study the level of intercultural competence between repatriated assignees and current assignees.

Purpose

The key objective of the study undertaken was to develop a set of culture-specific intercultural competencies and eventually to formulate an intercultural competence model of expatriates integrating home-country cultural values. Chinese expatriates in Poland were chosen as case study, and Confucian values were employed as home-country cultural values.

Methodology/Research Design

The study deployed mixed research, which involved both qualitative and quantitative methods, dependent on the phase of the fieldwork. In phase one of the fieldwork, qualitative method or specifically, an in-depth interview, was chosen to discover the views of the CEOs on the definitions and components of intercultural competence. In phase two, relevant data gathered during the phase one was used to create a questionnaire for a web-based survey. The phase three focus group discussion aims to conclude an intercultural competence model.

Findings and Implications

The study, which comprised three phases of fieldwork, in-depth interviews with 7 Chinese CEOs, a web-based survey in which 64 Chinese expatriates took part, and a focus group discussion comprised of 9 Chinese expatriates who are experts in various industries and have various job functions, has concluded that a culture-specific intercultural competence model is one that is derived from expatriates’ home-country cultural values.

Ultimately, a Confucian-based intercultural competence model is formulated as shown in figure 1.0 below. In brief, 14 concluded competencies are categorized into five key dimensions, as per five Confucian values, namely, Benevolence, Righteousness, Propriety, Wisdom and Fidelity.



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Based on this Confucian-based model, the study has singled out the Fidelity dimension comprises the ‘most important’ intercultural competencies because honesty, trust and faith are amongst the essential qualities for expatriates to manage stress and to work effectively in a team.

However, focus should also be placed on the Knowledge dimension, which the expatriates believe comprises the ‘most needed’ intercultural competencies. The ‘most needed’ intercultural competencies demand expatriates to possess skills and philosophical knowledge associated with Confucianism, Buddhism and Taoism that help them to manage any work-life issues.

Benevolence dimension highlights the importance of positive ‘attitudes’ towards others, e.g., caring, empathetic, sympathetic, and tolerant. As for Righteousness, Chinese expatriates referred Righteousness as positive ‘spirits’, or a strong sense of obligation and responsibility towards work, family, friends, society and country.

Finally, Chinese expatriates underlined that Propriety dimension is needed as they should possess adequate intercultural competencies to understand the significance of personal relationship etiquette and accept the social norms of Poles.

In summary, each of the intercultural competencies, which were developed in a culture-specific context and strongly associated with Confucian values, emphasizing the importance of humanistic actions and proper behaviors for nurturing human relationships. In a nutshell, the formulation of the Confucian-based model is also attributed to human relationships in accordance with the five Confucius values, which indicate the connection between individuals in a society, and the establishment of a stable society derived from the good maintenance of these social relationships.


Since the research topic is related to human resource management, the involvement of human resource personnel in this research is important. However, as most of the Chinese organizations in Poland are in smaller operations with fewer numbers of employees, the Chinese headquarters have the tendency not to assign human resource specialists to be based in Poland.

In pertaining to the focus group conducted at the third phase of fieldwork, there was a challenge to recruit more Chinese expatriates to form more than one group discussion. Some of them declined to take part due to confidentiality issues, some claimed they were not the subject expert, and most of them were not comfortable to engage in open discussion as the research topic was considered as sensitive subject.

The Confucian-based model is a universal model for the Chinese expatriates from all industries and job functions. The limitation to formulate an industry or functional-specific intercultural competence model is due to limited number of Chinese expatriates present in Poland.


The emergence of Chinese MNCs may operate at a faster pace than the development of Chinese expatriates who possess the essential intercultural competencies to work internationally. Thus, there is a practical need for a culture-specific model to aid Chinese expatriates working abroad.

This study is timely for academics, policy makers, NGOs, businessmen and all other related stakeholders due to the active involvement of Poland in few key Chinese initiatives, e.g. ‘16+1’ and One-Belt-One-Road. There is certainly a growing need to better understand Chinese culture and its implications for business and trade relations. Such an understanding has to be based on culture-specific research.

Because of the increase of Chinese investments in Poland, the findings of this research may serve as a practical guide for Chinese MNCs in expatriate selection and decision-making practice, and expatriate training and development programs. In fact, application of the findings may ultimately maximize cost saving and reduce risks of investment failure.

Besides the economic reasons, the increase in the number of Chinese tourists and students to Poland have promoted closer relations between Poles and Chinese. A study of intercultural competence could improve the social relations between the two cultures, especially in Poland due to the increased level of diversity.



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What is original/what is the value of the paper?

Much of the literature regarding intercultural competencies have addressed the influence of ‘culture’ in the construction of expatriate intercultural competence, but little of the literature has studied the relationship between cultural values and intercultural competence.

Besides, researchers claimed that there is a needed to contribute the work of intercultural competence from a culture-specific perspective as most academic research on intercultural competence reflected a ‘Western cultural bias’, which is used universally. In this regard, the intercultural competence scale developed in this research can be used to further examine the culture-unspecific academic or commercial Intercultural competence assessment tools which are widely used and applied to all cultures.

If the claim that Confucian values are universal values (Yu, 2012) is valid, the employment of this model in Western-based scientific work could be justified. With the insight gained from this research, a more complex and extensive Confucian-based model from both Western and non-Western perspectives can be developed, tested and used in the future.

Finally, this study allowed the author to share the Chinese academic literature with English speaking academic audiences, and to explore related literature contributed by Polish researchers.

Keywords

Intercultural Competence, Confucian values, Chinese expatriate

Figure: 1.0. Confucian-based intercultural competence model of expatriate



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ACADEMIC PAPERS

Best paper award winners: “The role of previous international experiences for self-initiated

expatriates. The impact of cultural values.” Authors: Chiara Cannavale (University Parthenope,

Italy)/Marie-Thérèse Claes (Louvain School of Management, Belgium)

That's Interesting Award winner: “The Role of Inclusive Religious Education in Cultural

Perspective Change” Author: Thomas Gerard Grenham (Dublin City University, IE)



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IMPACT OF EU INTERCULTURAL ATTITUDES TOWARDS ITS EXTERNAL CULTURAL PRAXIS

Ljiljana Simic

(IHECS - Belgium, University of Arts - Serbia, BE)

Kerstin Martel

Abstract

The EU motto “United in diversity” might sound abstract or even utopian. However, as we are zooming into the working relationships and collaboration modes within EU institutions and partner organizations, we are gaining new insights about its meaning and how it is reflected in European teams, which are composed of individuals from various national backgrounds. We are more particularly exploring examples in the context of European external action and cultural diplomacy. This also allows us identify interfaces between EU staff and non-European staff and partners, e.g. in European delegations abroad. We are focusing on value and identity related statements on the institutional mezzo-level, comparing it to the institutions official discourse and decreed values on a macro level. To further identify centripetal and centrifugal forces caused by this specific organizational context, we are superposing micro-level statements from European citizens outside these institutions who are from comparable social backgrounds and also working internationally.

Keywords: EU, Europe, Europeanness, European identity, European values, intercultural Europe, cultural diplomacy, external action, EU Delegations, Cultural institutes, EUNIC, EEAS


https://www.conftool.pro/sietareu2017/index.php?page=adminUsersDetails&form_id=1111


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Introduction

With this explorative study we would like to account for the fact that Europe is more than a geographic region and the EU not ‘just an administrative governance body’. We are illustrating that Europe is a multi-dimensional, dynamic, living system, which is under the influence of various centrifugal and centripetal forces that are influencing individuals’ perception of Europe as well as their personal identity. On the one hand, communications and interactions within institutions, such as the European External Action Service and its Delegations abroad, or partner organizations, such as the network of cultural institutes EUNIC, are fostering a certain understanding of European identity and values from within, influencing the evolution of organizational cultures. As part of their diplomatic mission these organizations are disseminating and also projecting “European values” to the outside. On the other hand, external influences from outside Europe are continuously being tied into existing value systems, for example through trade, educational exchange programs, diplomacy or cultural action.

This paper explores discourse and interactions within EU related institutions, which consist of staff members from different nationalities. We observed that the understanding of abstract notions like “Europe”, the “EU”, or “European identity” and “European values” varies not only according to national cultures, social class, profession, educational background etc., but depends also on individual perceptions, interpersonal interactions and roles in the system. The high degree of complexity linked to Europe and “Europeanness” might point us to the limitations of defining, thinking and reflecting on European values and identity. Our study aims at illustrating this complexity, in order to grasp perceptions and interpretations of EU and Europeanness beyond the official discourse that is projected to the outside. Therefore, we decided to observe and collect personal statements and group discussions of EU agents and actors in partner organisations.

Our assumption is that the representative role of EU related agents1 is influencing their discourse in a professional environment, making it difficult to distinguish between personal discourse and institutional discourse. However, as all fieldwork has been conducted through participant observation and discourse analysis during workshops and research action, we have been able to trigger statements that are not only reflecting decreed “official” EU values, but that are also accounting for positive and negative emotions, as well as broader associations, triggered through visual identification.

Drawing on the authors’ own fieldworks inside European institutions, as well as with European citizens outside these institutions, this paper explores several identity-related aspects of interactions on a mezzo level, and it tries to point out individual attitudes and discourse related to ‘Europeanness’ on a micro level, generally referred to as “European values” or “European identity”. Based on examples and quotes that have been collected from 2013 to 2016, we are illustrating how the narrative of individuals and within groups is varying, depending on contextual and situational factors. This leads us to a row of assumptions that are revealing and questioning the instrumental utilization of national and regional identities, in order to achieve the agents’ and stakeholders’ strategic goals.

The overarching goal is to offer alternative perspectives to the macro level of discourse on “Europeanness”, often shaped by national media or political and economic discourse, and by EU institutional statements that are reflecting decreed values, as stated in the Treaty of Lisbon, for example.

1 EU institutions staff (183) contributed in this research on their impact within three EU delegations (Tanzania,

Burundi, Israel).



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We are exploring how national identities and Europeanness come to live at work, in an institutional context; how national diversity creates challenges in communications. We are also questioning if we are facing a lack of mutual understanding or if we can potentially attribute an instrumental function to the utilization of national cultures in this specific context: national cultural identity as a means to situationally and contextually influence and manipulate peers. As an example, we are questioning the understanding an underlying values of ‘cultural action’, elucidating multiple meanings from national and overarching, European perspectives.

Our explorative, qualitative study aims to identify through an inductive approach the different levels and dimensions that are coming into play when it comes to Europeanness. The overarching objective is to contribute to the cohesion and intercultural cooperation and communication within the EU and between EU members and their partners across the world.

Background & Rationale

The motto of the European Union “United in diversity” (lat.: in varietate Concordia) is the starting point of our observations. Italian Nobel peace prize winner Ernesto T. Moneta pronounced in the early 20th “In Varietate Concordia / In Varietate Unitas” – Unity in diversity, which is a concept of “unity without uniformity and diversity without fragmentation”, according to Lalonde (1994). The motto was selected by the European Commission through a call for participation in 2000: “It signifies how Europeans have come together, in the form of the EU, to work for peace and prosperity, while at the same time being enriched by the continent's many different cultures, traditions and languages.” The motto is based on the hypotheses that diversity is enriching for human interactions and that a complex kind of unity is possible despite all cultural, linguistic, political or ideological differences.

The highly bureaucratic structures of EU institutions, administrative rules and procedures do somehow contribute to establishing a high distance between citizens and the institutions that represent them. In media, a negative discourse with regards to the EU, its’ institutions and its representatives becomes more and more common (depending obviously on media and countries etc.), contributing to drive the institutional world away from its citizens (e.g. “Brussels” or “Eurocrats”).

However, European-wide polls such as Eurobarometer2 or EuroNat3 allow to draw a clearer and sometimes also a more positive picture. Surveys undertaken by Eurobarometer, the EU’s polling service, have found that nearly 60% of the residents of the EU now feel some degree of identification with Europe. Even if only a modest 5% identify themselves solely as European, without referring to a national identity, this amounts to about 25 million people, almost equivalent to the combined population of Belgium and the Netherlands.

“European identity” is a terminology that has replaced “European values” in 1985. The concept of European identity has been discussed on EU institutional level, has been addressed by think tanks and scholars over the years. The relationship between national, sub-national and European identity is complex. In fact, it might be argued that cultural and identity policies of the EU indicate that the efforts of institutions of the EU, especially the European Commission, have changed over time concerning the creation of European cultural identity.

The late 1970s and the 1980s were shaped by the symbols of nation state such as anthem, flag, and passport. By the early years of 1990s, the institutions of the EU have much more emphasized the identity of Europe with its pluralist and distinct characteristics. In the second half of 20th century some

2 Standard Eurobarometer 83, Spring 2015 Publication: July 2015

3 EURONAT Project, Final Report, Mai 2006, Representations of Europe and the Nation in Current and

Prospective Member-States: Media, Élites and Civil Society,

http://www.eui.eu/RSCAS/Research/EURONAT/200505Rep.EURONAT-Final.pdf, p. 25



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authors (Maria Todorova, 1999; Larry Wolff 1994; Edward Said, 1993) are referring to ‘imaginary’ or ‘symbolic’ geography, claiming that Europe represents an imaginary society, that allows overcoming its own static borders. These authors are bringing the imaginary concept together with a political one.

In this sense, the motto of the EU ‘united in diversity’ in EU Constitution might be seen as recognition of the unusual degree of national and sub-national diversity in the EU. It implies that the EU aims further ‘unity’ under the condition of a maintained ‘diversity’ amongst the states. Thus, the motto seems to foster the diversity of member States’ identities. At the level of rhetoric, the emphasis changed from notions of ‘unity” to ‘diversity’; the EU gradually embraced notions of cultural diversity. In 1992, in the Treaty of Maastricht it has taken obligatory decisions on "respect for the national identities of its Member States" (Art. 6 EU). We also suggest that the processes and continuous changes in European culture, values and norms are enduring: Europe could be described as a mental construct in permanent change. According to Jacques Derrida,4 Europe is characterized by uncertainties in terms of geo-political borders (in the center, from the west to the east and from the north to the south) and spiritual borders (ideas of philosophy, ratio and religious influences), as well as in terms of collective memory (Derrida, 1995b: 10). He saw Europe as an open system, with multiple sources of philosophy and other influences for European identity, beyond ancient Greek foundations (1992 / 2010). 5 Europe is permanently changing, re -thinking, re-defining narrative and identities, depending on individuals’ and peoples’ perspectives and filters, that are, amongst others, constituents of the time they live in and of their context of socialisation.

Throughout the process of European integration multilateral cultural cooperation has been envisaged by the members of the European Community / the European Union. In 1955 the Council of Europe declared in the European Cultural Convention the goal of establishing a common approach of cultural action amongst all members, in order to preserve and disseminate European culture.6 However, as economic integration has been seen as a priority since then, the ambition of a common EU external action and cultural action was only reiterated more than 50 years later and stipulated in the Treaty of Lisbon in 2008 (article 167), supported by the Unesco convention on the protection and promotion of diversity in cultural expression in 2005.7 Stimulating interculturality, developing cultural interaction and promoting diversity of cultural expressions under the umbrella of common values are part of the overarching goals of the European External Action Service (EEAS), established in 2011 - the equivalent of what is called “ministry for foreign affairs” in a nation state.

The new institution has been built up step by step over the last five years. Regarding diplomacy, EU Delegations constitute official diplomatic representations of the European Union abroad and are hence the prototype for “European embassies”. For operating external cultural action 4 Czajka, A, Isyar B, Europe after Derrida: Crisis and Potentiality,Edinburgh University Press, 31 déc. 2013, p.115

5 Derrida J (1992a), "Nous autres Grecs", in Barbara Cassin (ed.), Nos Grecs et leurs modernes: les stratégies

contemporaines d'appropriation de l'antiquité, Paris: Seuil, pp. 251-76; translated to English in 2010 in

Derrida and Antiquity, Miriam Leonard, Oxford University Press, Oxford, 2010, p. 27 and p. 31

6 Conseil de l’Europe, Convention Culturelle Europeenne,19/12/1954, Paris,

http://conventions.coe.int/Treaty/fr/Treaties/Html/018.htm :« Considerant qu'il est souhaitable a ces fins,

non seulement de conclure des conventions culturelles bilaterales entre les membres du Conseil, mais encore

d'adopter une politique d'action commune visant a sauvegarder la culture europeenne et a en encourager le

developpement. »

7 Unesco, Convention sur la protection et la promotion de la diversite des expressions culturelle, octobre 2005,

Article I, Introduction, items d et I, “stimuler l’interculturalite afin de developper l’interaction culturelle dans

l’esprit de batir des passerelles entre les peuples” ; “renforcer la cooperation et la solidarite internationales

dans un esprit de partenariat afin, notamment, d’accroitre les capacites des pays en developpement, de

proteger et promouvoir la diversite des expressions culturelles.”



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the EAAS is working with the non-governmental network of European Union National Institutes of Culture (EUNIC). National cultural institutes have been collaborating closer since 2006 within the EUNIC network, in order to share budgets and increase visibility and share of voice across the world. Often based on bilateral cooperation, more and more institutes are partnering multilaterally, extending their reach and projecting European culture and values, on top of their national mission.8 The EU has shown an increasing interest in cultural diplomacy and cultural relations, in order to make culture, as Federica Mogherini9 stated, “an integral part of the external action of the European Union.” Along with energy and economic diplomacy, cultural diplomacy has definitively become a new dimension of EU external action.10

Theoretical framework

As Edgar Morin stated in “Penser l’Europe”: “The difficulty of thinking about Europe is first to think of the one in the multiple, the multiple in the one. Because Europe is a ‘complex’ (lat. complexus, which means woven together), whose characteristic is to assemble the greatest diversities, without confusing them, and to associate opposites in a non-separable way.”11 Given this complexity we suggest to consider systemic interdependencies on the macro, mezzo and micro level, which are leading to the dissemination of ideas, attitudes, norms and values across the entire system ‘Europe’, as well as to its projection outside the system, in our case through public diplomacy and cultural action. The high degree of complexity might point us to the limitations of ‘defining’, ‘thinking’ and ‘reflecting’ on European values and identity and has encouraged us to examine the experiential and interactional processes and iterations that seem to contribute to the evolution of European culture, values and identity as a dynamic system.

We can state, for example, that within a national/political culture (macro-level), the intrinsic understanding of a concept such as “Liberty” does influence organizational cultures (mezzo level) and has implications on interactions within an organization, on the collaboration mode of a team, as well as on interpersonal relationships and individual attitudes and behavior (micro-level), as illustrated by Cloet and Martel (2014) in the context of intercultural collaboration in Franco-German teams, workgroups and organizations.12 Also, as Michaler Bruter stressed “when two individuals claim to “feel European,” they might mean totally different things in terms of both the intensity of the feeling they describe and the imagined political community they refer to”. (Bruter, 2003: 1154) In other words, 8 L. Babaci and K. Martel, Vers une coopération multilatérale dans la diplomatie culturelle des affaires

étrangères européennes - Une analyse des enjeux d'interculturalité, in: Management interculturel -

Perspectives théoriques et enjeux pratiques, 2017.

9 Joint communication to the European Parliament and the Council. Towards an EU strategy for international

cultural relations, 8.6.2016, JOIN (2016) 29

10 Global Strategy, June 2016, p.49

11 "La difficulté de penser l’Europe, c’est d’abord de penser l’un dans le multiple, le multiple dans l’un. Car

l’Europe est un "complexe" (de complexus, ce qui est tissé ensemble) dont le propre est d’assembler, sans les

confondre, les plus grandes diversités et d’associer les contraires de façon non separable. » Edgard Morin,

Penser l’Europe, Paris : Gallimard, 1987, pp. 22 et 24

12 P.R. Cloet and K. Martel: Analysing intercultural communications through the lense of the concepts of

Liberty: example of French-German teams; “Une analyse par le filter de la liberté : la communication

interculturelle au sein d’équipes franco-allemandes”, Groupe de travail interdisciplinaire “Recherches

clermontoises sure les pays germaniques”, allemagne.hypotheses.org, Clermont-Ferrand, France, 2014



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there is not a common understanding of what is ‘European identity’ among member-states’ citizens. Identification with European identity varies from country to country, but also from individual to individual: citizens within the different member-states interpret the concept of a common European identity in different ways.

This leads us to the assumption that the meaning of Europe for Europeans and non-Europeans, but also of notions like “European identity” or “European values”, are not binary and static, but highly complex, multidimensional, volatile and “liquid”.13 Based on Yvon Pesqueux,14 we can state that consciously decreed and projected values are a factor of coherence on a macro-level as well as on a mezzo /institutional level. With regards to team cohesion within EU institutions, co-created values are instrumental to the cohesion of the institution or the team. Values are key constituents of the cooperation and the common project. Though, its collective expression within the notions of culture, identity or ideology has boundaries and is therefore questionable. Collectively decreed and projected as well as consciously co-created values are leaving an infinite room for interpretations and evolution: on an overarching macro-level, on an institutional level as well as on an individual level.

Diversity can influence an organization in both positive and negative ways as stated by Milliken and Martins.15 Attention has been focused primarily on cultural comparisons rather than cultural interactions and their impact on organizational practices. On the basis of empirical studies, these authors made a classification into four types of effects: affective, cognitive, symbolic and communicative. Some of dimensions appeared in the results of our explorative study. This phenomenon refers to the fact, that individuals are attracted to those similar to them, with an increased likelihood to build relationships. This makes social integration and identification in a heterogeneous group more difficult.16 Research on the dissemination of culture by Robert Axelrod illustrates that communication is more effective amongst “similar individuals”. He furthermore states that “similarity leads to interaction and interaction leads to still more similarity”17.

With our explorative study we would like to open the discussion on the relation of human agents to the broader structural environment, the process of interaction between agents (EU related personnel) and structures (EU institutions and Europe as a system). In Social Identity Theory (SIT), social identity influences the group’s perception of others, but at the same time it is influenced by the cognitive relationship that the group establishes with others. One of the factors that influences external perceptions is the very identity of the group that perceives and its need to differentiate itself (Turner et al. 1987). Thus, this can be considered as one of the dimensions that shape external images.

Drawing from both SIT and international relations, we can imagine a threefold framework that pays attention to both long-term/ variables and interactional factors. In line with SIT, we consider (i) political identity, (ii) cultural diplomacy/action and (iii) image shaped conceptions of EU to be

13 Bauman Z., La vie liquide, Librairie Fayard/Pluriel 2013 (original : Liquid Life,Blackwell Publishing, Oxford

2005)

14 Pesqueux Y, Les valeurs dans l’organisation – pour une approche essentialiste de l’organisation, Paris, 2011,

p. 17

15 Miliken F. J., & Martins, L. L. (1996). Searching for common threads: Understanding the multiple effects of

diversity in organizational groups. Academy of Management Review, 21, 402-433.

16 Ibarra, H. (1995) Race, opportunity and diversity of social circles in managerial networks. Academy of

Management Journal, 38(3). 673-703.

17 Axelrod R, The dissimilation of culture, Journal of conflict resolution, Sage Publications, April 1997, p. 2003-

226



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fundamental components of cognitive maps within the EU, the same maps that we assume are influencing citizens. Drawing from intercultural diplomacy analysis, we identify some more variables as relevant in the formation of a perception of an external ‘other’: (iv) positional variables (preferences, interests, perspectives, that the cultural institutes takes on as a player in a particular social role (that is, representative of their national culture); (v) power-related variables that account for asymmetries with respect to the EU; (vi) interaction variables (e.g. the specific political interaction experience with the EU in an issue area within a bi/multilateral context)18.

Explorative research

This article is based on qualitative data generated through several studies that have been conducted by the authors between 2013 and 2016: a) in EU delegations worldwide (Tanzania, Burundi, Gabon, Israel and others), through participant observation and action research and b) in EU national cultural institutes based in Europe and abroad and being part of the European network EUNIC (European Union National Institutes of Culture that is federating these institutes and amongst agents of the EEAS (European External Action Service). Both studies had been underpinned by secondary, desk-based research: analysis of documents and web resources, relevant EUNIC and EEAS overarching project concepts, strategy papers and reports. In order to establish a cross-institutional view for this article, the raw data of both studies has been consolidated and analyzed with regards to positional, power-related and interaction-related variables.

Regarding EU delegations the process of research was initiated halfway through the research

action. The choice agreed on was “appreciative enquiry” – as an open, flexible and non-theory-based approach. This approach allowed for semi-structured interviews that could be adapted according to the different roles and attitudes of stakeholders. It also took into view the beneficiaries’ and other stakeholders’ priorities and concerns, and allowed for a creative outlook into the future. The questions needed to be adapted to the individuals’ individual roles and their kind of involvement into the action. The focus of interest here was to explore “lessons learned” from multicultural teamwork in EU delegations. Through a three-step approach (personal work, consolidation in small groups and exposure to the bigger group) we encouraged the process of linking personal interpretations of attitudes and behaviour of the other to the individuals’ emotions as a first step, and then to specific expectations, which are based on norms and values. Attitudes and behaviour might be based on specific values, but these are difficult to express right away. With regards to EU delegations the following methods have been used in the process of evaluating:

- Semi-structured feedback interviews – in person or over Skype/phone – with stakeholders who were involved in designing and running the research action.

- Flexible feedback interviews based on a focus groups – in person or over Skype/phone – with participants and stakeholders in the project, according to the their level and degree of involvement (ex. Head of delegation, Head of sections)

- Written feedback from participants: interviewees were invited to comment on and amend the notes that had been compiled and sent to them by the researchers. Regarding the EUNIC network and its member cultural institutes, we have followed an

inductive research approach, which allowed us to identify the key constituents of the growing multilateral collaboration amongst national cultural institutes within the EUNIC network: the need to

18 Lucarelli S. and Fioramonti L. External Perceptions of the European Union as a Global Actor,

Routledge/Garnet, series:Europe in the world, London, 2010



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nurture a learning network, EUNIC as a laboratory of intercultural collaboration, co-creating a common approach of cultural action and diplomacy. We proceeded to qualitative discourse analysis…

• on an individual level: 33 semi-structured, fully transcribed interviews with directors of institutes and agents of EUNIC and the EEAS, if possible conducted in native languages: French, German, Spanish or English)

• on an institutional level, i.e. 29 national member organisations: official external discourse on websites, characteristics of cultural projects in the field

• on a consolidated institutional level (EUNIC network and EEAS): official external discourse on websites and during meetings and conferences, internal meeting notes and reports, membership charter, common cultural projects on the ground.

All interviewed individuals or individuals that we have collaborated with in workshops, are agents who are promoting a coherent image of the EU in general, and who are initiating cultural action and, in some cases, intercultural dialogue. For cultural institutes, however, the mission of representing and promoting national cultural action does still stand in the foreground, and in some cases they are directly tied to national governments and politics, e.g. the cultural institutes of Poland, France or Austria.

The rich data from both fields, EU delegations and EU cultural institutes, allow us to explore and draw assumptions around the influence of internal and external disposition of personal, situational and contextual factors. The technique we used during our analysis was Action Research19 as disciplined process of inquiry conducted by and for those taking the action. The primary reason for engaging in action was to assist the ‘actor’ in improving and refining actions. Relevance of our choice was based on the common focus between EU institutions and researchers. We identified the values and theoretical perspectives, which justified our actions as valid and reliable. The idea of this retrospective technique is that we can inspect proper behavior and might adapt to the zones beyond the comfort zone. We have been looking at what they did, how they did it and possibly different other ways for improvement. It helped each participant to get input from other colleagues. And it also helping while discussing to see how the others dealt with the same challenge before. Most important was the possibility to put any challenging issue into perspective and to get a bigger picture of a sometimes new and often complex multicultural working environment. We examined the data in order to answer generic questions: What is the story told by these data? Why did the story play itself out this way? This deepened our understanding of the different institutions and the phenomena under investigation. As result we ended up with a large set of suggestions and advice to improve the situation within EU Delegations on the one hand and within the EUNIC network on the other hand. For this paper, more specifically, we have focused on a few questions that emerged through cross-data analysis:

▪ How present is national identity and belonging in EU institutional collaboration compared to European identity and belonging?

19 The groups answered to questions: “What makes you Mad, Sad and Glad while working in multicultural

working environment?”

- Mad - frustrations or things that have annoyed you or made you feel agitated, anger, critical, furious or

frustrated.

- Sad - disappointments or things that have not worked out as well as was hoped or made you feel alone,

censured, controlled, criticized, demoralized or depressed.

- Glad - pleasures or things that have made you happy and feeling agreeable, alive, concern for, enthusiastic,

friendly or pleasant.



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▪ Do cultural differences influence the perception of the overall goal and mission? ▪ How do the overall context and the institutional mission influence individuals’ identity strategies

and how what are the implications on situational manipulations based on nationality?

Through this explorative approach, which is matching results from different studies, we are attempting to see how individuals’ discourses and their underlying attitudes can have implications for the working mode and the cohesion of multicultural cooperation in EU institutions, for EU intercultural collaboration, as well as for European external cultural action in a broader sense.

The root causes for expressing these values might be linked to specific situations or interactions within the team, but can also mirror the agents’ missions as “European ambassador” in a broader sense. During some workshops the expression of values was triggered by exploring participants’ emotions (“What makes you mad/sad/glad in the collaboration?”), and are most likely expressed based on personal experiences, even if initial questions were targeting the broader context (“How do you perceive the values of the others (locals vs. expats)?” or “What type of values are you sharing with partner institutes?”). In line with our theoretical framework, we need to consider that all statements are fostered through individual interpretations and based on personal perceptions. This has been confirmed through the high number of personal stories and anecdotes that interviewees and groups have shared with us and which have apparently contributed to the individuals’ “world view” and their perceptions of European collaboration and values. These experiences and individual interpretations of meaning have shaped national stereotypes towards partners and colleagues. They seem to be nurtured on an individual level and are evolving and consolidating as a result of continuous group interactions over time and having implications on working modes, as well as on the conception of common projects and the overall vision of European External Action.

Case study EU delegations

We observed that miscommunication and conflicts are often justified and explained by participants as being based on “differences in national cultures”. Cultural belonging to a nation or region (east/west/north/south) becomes an “alibi” and a strategy to avoid deepening alternative reasoning. With 28 member-states as of today and 24 official EU languages, these national differences are the most obvious and visible / audible ones in daily interactions within EU institutions. Individuals seem to be well aware of their colleagues’ nationalities and national belonging even seems to be “top of mind” within many conversations and interactions in teams and work-groups. Based on our observation we are assuming that national diplomatic and political missions are supporting the maintenance of national “silos”, because in many cases the agents’ roles are embracing national interests in parallel to the institutional interests (e.g. cultural institutes depending partly on national ministries of foreign affairs etc.).

Attitudes and behavior seem to be culturally driven, but also interconnected between the macro, mezzo and micro level: EU institutional vs. situational and group related vs. agents. Participants realized throughout different sessions that they are lacking culture specific knowledge and mutual cultural understanding, even after having worked together over longer periods of time. Together with workshop participants we identified two crucial aspects to interaction in multicultural teams: flexibility and adaptability. Flexibility is also reflected in many of responses as a need to rely on when interacting cross-culturally with colleagues. They also concluded that lacking face-to-face contact, which goes along with new communication technologies, might add challenges to mutual understanding, making it more difficult to co-build a new working mode.



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An individuals’ personality and identity strategy is one aspect to be explored, however, membership of a sub-culture, e.g. national culture, is not necessarily black and white, as agents reject to be labeled based on their nationality. Frequently they declared that they were belonging to various sub cultures at the same time. Following text from the participant allow illustrating this statement. Answers to the question “what makes you sad”:

- ‘… when people are not tolerant, in terms of religion or political opinions. When they do harm to others on purpose’.

- ‘… it makes me sad that colleagues with whom I’ve been working for three years still give me polish translations to do even if I have told them I’m from Slovakia’

- ‘… the fact that most people have only heard negative things about my country: corruption, theft, orphanages.’

- ‘… the rule I heard: ‘not more than two Italians per corridor’’ To the question “what makes you mad?”, participants expressed several sub categories, with

the “lack of recognition” and “disrespect” being most frequent notions, as we can see below on the mind mapping figure. Those categories have been explained through cultural dimensions such as low/high context or communication e.g. poor communication, everything in writing, forms of impoliteness or through the context of time e.g. being late. Different notions of hierarchy were presented thorough the context of power distance e.g. lack of fairness, passive approach, imposed national culture from the boss, unequal treatment, superiority. “Mad” feelings are also provoked by the use of stereotypes ex. network of people same culture.

Figure n°1 - mind mapping of the research results based on ‘Mad’ responses where we can see that not all the responses are related with their cultural differences

Within the EC, however, there is a language regime of three procedural languages (French, German and English) of which two (French and English) are vehicular and drafting languages. Meetings



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might begin in French, a speaker might switch to English and someone else might respond in French again, even in mid-sentence or simply dropping specific expressions in the other language into a sentence. This ‘code switching’ combined with a fair amount of EU-specific jargon, can lead to a style of communication that is quite clear internally, but can be rather incomprehensible to someone from outside the organization. It sometimes even seems to become a game and a means for individuals to position themselves as a polyglot cosmopolitan. Language speaking capabilities are becoming a means to belong to the group and maybe even to exclude or position themselves as the European “elite”, superior to the “people”. This type of coding might contribute to the view of EU institutions as a mystifying place and to the tendency that agents are seen as “technocrats” who seem at ease whilst communicating amongst them, but who lack awareness or capabilities to “translate” effectively when addressing European citizens. However, EU specific jargon and the described code switching are a centripetal force for the team and groups, fostering belonging and co-creating a common culture.

Case study –Tanzania EU Delegation:

As the following example shows, interaction and collaboration modes in EU institutions seem to be strongly affected by the institutions’ nature, vision, mission and goals and consequently by the agents’ roles and expected contributions to the “European project”. In the EU delegation in Tanzania we stated major discrepancies between Europeans’ self-perception and the perception of the other: European staff had listed European values (self-perception), that are very close to the overarching institutional values on a macro level, values that are stated in European treaties or the UNESCO convention (see above) and that are promoted and projected by EU institutions and partners through diplomacy and cultural action. Local, Tanzanian staff (outsider view) perceived foremost “European” values that seem to link back to specific situations at work, as well as attitudes and behaviours of their European colleagues; they use adjectives rather than nouns. Regarding the “local self-perception”, i.e. values of the local, Tanzanian culture, the Tanzanian self-image is also varying quite significantly from the European staff’s perceptions. Certain statements from expats (European staff) reveal that the “perception of the other” is seen through the lenses of personal experiences, but even more so through the filter of institutional decreed EU values. Statements from European staff on Tanzanian values are interpretations and often even judgements of behaviour: “they avoid open conflict at all price” can be seen as a judgemental interpretation based on EU decreed values like “freedom of expression” or “transparency”. They also interpret “pride” as an indicator for “national identity”, a notion that is not picked up by Tanzanians, and possibly not even existent in their concept of social belonging. However it expresses even more so that the concept of national identity is of concern for European staff.



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Figure n°2: Main values perceived by Europeans and Tanzanian co-workers

EUNIC case study

Over the last 10 years, as the collaboration on few cultural projects has been extended through a broader multilateral partnership amongst institutes under the umbrella of EUNIC, the meaning of cultural action, cultural diplomacy and intercultural dialogue has been discussed and worked on and its understanding has evolved over time.

The importance of cultural diplomacy as part of external action, has been underlined by a former president of the EUNIC network as follows: “Cultural diplomacy is the glue that holds alliances together, so that they can cooperate in solving the most pressing issues in today’s world.”20 Based on the Treaty of Lisbon and the UNESCO convention of 2005 this view has become more and more a consensus in EU external relations in general, as well as amongst national cultural institutes more specifically.

However, through our interviews and secondary analysis, we realized that some national institutes, e.g. the Institut Français or the Polish Institute, use the notion of cultural diplomacy, whereas others do prefer not to position their mission and cultural projects in the context of ‘diplomacy’. Institutes like the Goethe Institut (Germany), the British Council insist on the fact that their work is “at arms length” from government. They put forward “cultural action” and “intercultural relations” as a means of reinforcing international relationships and promoting language learning. They

20 EUNIC, Culture Report - Europe's Foreign Cultural Relations, Maia K., Davis Cross,

http://www.ifa.de/pdf/kr/2011/kr2011_en.pdf, p. 20



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even seem to disregard to a certain extent partners who seem to “project” their own values instead of “initiating a dialogue.” We realized that in this case the national world-view and position remains in the foreground, and other ways of practicing cultural action / diplomacy as part of external relations are not always recognized as valid, but even judged or made fun of: “Cultural diplomacy doesn’t work. - Frankly. I mean, it’s just projecting the nations values and it’s just talking up people. »

When it comes to collaboration on projects in the field, we can state that this collaboration and common action would further contribute to cohesion amongst partners and to the co-creation of a common view on external cultural relations, beyond decreed European values and beyond national views, as the statement from a French EUNIC representative in China illustrates: ‘… of course, as we are amongst Europeans here, immediate mutual understanding is a given. You realize when you are in China how easy it is to understand each other and work together when you are amongst Europeans. We are from the same world.’

We identified the need of being more explicit about the variety of different models of “cultural action”, “cultural diplomacy”, “cultural relations” that exist amongst members, in order to encourage mutual understanding and to acknowledge existing models… Formalizing and communicating on all these distinct models within the network, will allow over time to develop a new, innovative and “European” approach towards external and internal cultural relations. In this respect the EUNIC network appeared to us as a “laboratory” of intercultural relations (see also figure n° 3).

Figure n°3: Different understandings of “cultural action” in Europe, due to distinct underlying goals and fluctuating quality of relationships amongst stakeholders

Even though nation specific convictions and visions remain in place, amongst others due to established structures and culture specific understanding of what cultural work in external relations entails, we have observed that the role of declared, “European values” contributes to a coherent official discourse amongst member institutes, i.e. on a macro and mezzo level. Eeuropean values are even declared by some as being universal values:‘Yes, indeed, European values of cultural diversity, multilinguism and respect are fundamental values, it is just impossible not to agree on this type of values.’



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Sometimes, when mentioning the institutes’ values or the networks values, interviewees referred to ‘the usual ones’ or the ‘standard European values’ or ‘the official stuff ‘. A representative

from the British Council, for example, said« Our values are the usual ones that have to do with the European project. Which are about liberal values. Freedom of speech, all stuff that is stressed in the declaration of rights. So it’s not difficult, there are documents there with the values listed within them... and that’s what you do. So why invent something new? »

Interviewees also distinguished quite frequently between values « to the inside » and « to the

outside », such as a representative from the Goethe-Institut:”To the inside, diversity, unity and respect of otherness are in the center of everything, but to the outside we are presenting an attractive, polyphonic Unity, couloured and Euorpean”. A certain « lassitude » regarding European decreed values, the constant use in internal and external discourse provokes that these notions are never questioned and their meaning never explained. As we saw in our study with European delegations, every individual gives a different sense to tem, according to cultural background and personal experiences.

On a micro level, national stereotypes with regards to peers from partner institutes are expressed by different agents despite the declared ‘shared European values’, and even despite the vision to ‘build intercultural relations’ throughout the world: ‘When you assist to a EUNIC meeting amongst directors you immediately realize how patriotic some of the members are: the Spanish, for example, they have a rather nationalistic agenda, that’s for sure. They all have a photo from the king in their office.’

Conclusion

The moment of a nation’s cultural projection is that of its most polished, sublimated, and hence, artificial representation. Projecting national culture abroad is essentially about performing the nation, converting the nation into a performance, and thus, ironically, disclosing its fundamental truth as a cultural construct, as an elaborate artwork. However, as the European Union and its institutions in charge of external relations are more and more interacting on a multilateral level, we are witnessing a paradigm shift in external cultural action. We think that contemporary international relations and EU external relations have an increasing responsibility for intercultural dialogue within Europe and it’s institutions and with the outside. The relevance of external cultural relations managed by NGO stakeholders (ex. local cultural centers, artists) might also motivate governmental actors to reshape and to reinvigorate government-driven cultural diplomacy into common intercultural collaboration strategies.

According to Raymond Weber, transnational networks represent beyond territoriality a new dimension, “situated permanently on the crossroads between transnational dynamics and local logic, […] they introduce simultaneously intermediate forms of expression, between conformity and deviance, between order and disorder.”21 Thus, multilateral networks and transnational institutions are in need of new ways of collaborating, acting and interacting collectively towards common goals. Creativity and new thinking could possibly be nurtured through the dissemination of national cultures on the one hand, but also and more importantly through listening and understanding different positions and approaches amongst partners as well as trhough common projects in the field. Scholars tend to share an underlying optimism towards the potential of the European Union to play an

21 Raymond Weber, Les organisations multilaterales face aux nouveaux defis de la cooperation culturelle, dans :

Geopolitique de la culture, sous la direction de Francois Roche, Paris, L’Harmattan, 2007, p. 82



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important role in international relations. 22

The projected image is not only based on decreed “European values” and influenced through the interaction with non-European partners, but also affected by the self-image that Europeans develop of the EU as fundamental component of their political identity. As illustrated, identity is fostered within a given context on a macro level, declared values are then interpreted and acknowledged by the group. Whilst analysing discourse of EU institutions on the macro, mezzo and micro level, we observed the persistence of an essentialist, static approach towards Europeanness and European identity, even though the concept of European identity can be seen as multidimensional, ambiguous and dynamic phenomenon. As identities are formed in the log run, rather than in response to a short-term policy, empirical effects of increasing power of EU institutions should be considered and revisited continuously. This will pave the way for intensified policies and initiatives of the EU with regards to a common European identity.

From a constructivist point of view, developments in the European cultural and political sphere are continually transformed by dynamics produced by national and European policy-makers through top-down and bottom-up approaches. The variable geometry of European integration gives rise to the construction of contested, incomplete, future-oriented European identity.

Furthermore, on a micro level, we might even frame the hypothesis that national identities are instrumental for individuals’ action strategies in EU teams and work groups (“zweckrational” – see Weberian social action ; “means-end rationality” “axiological rationality”). Cultural differences can be explained and managed for strategic purposes. Observed behaviours and attitudes might partly become plausible if we consider the individuals’ identity strategies and social action strategies in EU institutions overall. The question arises if agents in EU institutions’ staff members do have the intercultural competencies to go beyond normative categorization, which is intrinsic to the institution and even to the system: Europe as a common project of multiple nation states and citizens of multiple nationalities.

Cultural diplomacy and intercultural relations provide a first step in raising intercultural awareness and self-awareness, by mirroring the group and its collective and individual values. This applies to external relations in general, but even more so for the European multilateral partnership, searching to represent the EU as a strong, united entity to the outside. Also, whilst staff is careful not to appear too nationalistic, they do not hesitate to criticize and even stereotype other nationalities, both ‘old’ and ‘new’ representatives from the 28 member states. Cultivating a climate in which individuals and teams from various national backgrounds can coexist and co-create is a major concern and is partly being addressed through intercultural communication trainings.

As a matter of fact, self-rhetorical representation, public debate and mirrored images are fundamental components of a political identity in the making like the EU/ropean one. For this reason it can be useful for future research to understand how internal and external images emerge and how they evolve over time. Although a more unified 'voice' for Europe may be desirable, there needs to be a balance between coherence on the one hand and room for specific needs on the other, team cohesion internally and openness for intercultural dialogue to the outside.

Bibliography & References

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Journal of European Public Policy, 18(8), 1190–1207, 2011.



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Mandic T., (2003) Komunikologija, Clio, Beograd

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Reports and references

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Eurobarometer 83, Spring 2015 Publication: July 2015

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COGNITIVE BIASES IN DECISION-MAKING IN POST-BUREAUCRATIC ORGANIZATIONS

Marie-Therese Claes

Catholic University Louvain, Belgium

Thibault Jacquemin

Catholic University Louvain, Belgium

Abstract

In today’s post-bureaucratic organization, where decision-making is decentralized, most managers are confronted with highly complex situations where time-constraint and availability of information makes the decision-making process essential. Studies show that a great amount of decisions are not taken after a rational decision-making process but rather rely on instinct, emotion or quickly processed information.. After briefly describing the journey of thoughts from Rational Choice Theory to the emergence of Behavioral Economics, this chapter will elaborate on the mechanisms are at play in decision-making in an attempt to understand the root causes of cognitive biases, using the theory of Kahneman’s (2011) System 1 and System 2. It will discuss the linkage between the complexity of decision-making and post-bureaucratic organization.

Keywords: Decision-making, Cognitive Biases, Kahneman, Post-bureaucratic Organization.

INTRODUCTION

One of the important aspects of the post-bureaucratic organization a decentralized, people-centered and participative structure, with a culture of shared values and participative decision-making, but also risk-taking, innovative and continuous improvement oriented (Kernaghan, 2000).Of the most prominent features of post-bureaucratic organizations, such as empowerment, teams, trust, communication, commitment and flexibility, empowerment is often cited as a key feature (Jamali et al., 2006). With it comes the burden of decision-making and responsibility.

Naturally, we assume that we make decisions that can be explained rationally, such as ‘the decision between two schools was largely based on costs, financial aid and the differences between their co-op programs’. It is however very probable that most decisions are made with a bias, conscious or unconscious. The number of female musicians in a major orchestra only changed after the musicians began to audition behind a shield that restricted the raters from knowing who they were. They were given numbers instead of names. The raters could only evaluate the music, not the musicians. (Ross, 2014).

We all make decisions without ever really having learned how to do it. This process seems innate and reliable. However, since the emergence of behavioral economics, numerous books about how irrational we are in our decision-making have been written. Due to their striking examples from the business context, they raised awareness among decision-makers of the pitfalls of their mind in judgment and decision-making, the so called cognitive biases. In distributed decision authority, when more managers at different levels of the organization make decisions on a daily base, raising awareness of possible cognitive biases in decision-making becomes crucial.



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In a first section the journey of thought from our rational choice theory until the emergence of behavioral economics will be described. It is essential to understand the evolution of the thinking process in order to understand the importance of cognitive biases today. Therefore, this chapter starts with a historical overview of the history that made neo-classical economists use the rational choice theory, the emergence of the behavioral economics starting with the findings of Herbert Simon (1955) on bounded rationality, and today’s divergences between the neo-classical theories (mainstream economics) and behavioral economics. Next, today’s concept of decision-making will be described. Diving deeper into the field of behavioral economics, a categorization in three different levels of the aspects impacting our decision-making will be presented: the external level or societal level (group think), the internal level (neuro-economics), and the individual level (cognitive biases). In order to understand the root causes of cognitive biases, the mechanisms at play will be discussed and the theory of Kahneman (2011) will be reviewed. Finally, the chapter will present recommendations and further research directions.

Background

The evolution of the ideas regarding the human decision-maker reveals why researchers developed behavioral economics, and helps to understand the rise of the importance of cognitive biases. The ideas of the 17th century are far-gone but they are essential to understand the evolution of the field of decision-making.

In the 17th century, Descartes developed the Cartesian model of rationality which describes how human reasoning is and should be logical. He assumed that our reasoning is conscious and deliberate. Influenced by Descartes, Leibniz imagined a mathematical model for decision-making in 1677 that would lead all reasonable persons using it to a same conclusion. His idea was to create characteristic numbers for all ideas. Disputes would be reduced to computations involving those numbers. Abandoning all subjectivity in decision-making, his model would eradicate all never-ending disputes.

In the late 18th century, Adam Smith’s work was a milestone for what will become our neoclassical economic models. In his book The Wealth of the Nations (1776) Smith outlines his theories on economics. Economics in his opinion is the science of wealth. Smith wanted to develop a theory using a scientific approach similar to Newton and his mathematical laws for explaining physics. In order to develop his theories he made assumptions, with rationality of the human economic agent as one of the most important assumptions. After him, most economists would develop economics as a systematic science.

However, Ashraf et al. (2005) argue that Adam Smith was aware of the multi-dimensional and realistic human being, contrary to the picture given in many studies. The study shows that 18 years before writing his masterpiece, Smith wrote The Theory of Moral Sentiments (1759) in which he developed psychological factors affecting decision-making with outcomes such as overconfidence or loss aversion. If Smith was aware of psychological factors affecting decision-making, the question may arise why economists neglecting his psychological findings and are still using the neo-classical models based on an incomplete rationality assumption to explain economical behavior. At the same time however, positivism made its appearance in the philosophy of science and became the mainstream way of thought (Arzlan, 2003). Positivists believe that knowledge can be deduced only by science, and categorically reject any form of subjectivism or intangible factors. Most economists of that period shared the modernistic thinking which relies exclusively on rationality to achieve progress. In this context the economics as an emerging field wanted to eradicate any form of psychological aspect from their field and become a purely natural science.

The economists developed mathematical economic models that rely on one of Smith’s major assumption, namely the rationality of the economical agent: the Homo Economicus was born, an entirely rational the human being. Edgeworth (1881), Walras (1874), Pareto (1916) are all examples of economists who build theories based on the rationality of the economical agent and built the



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foundations of our neo-classical economics. These models and their correlated assumptions accordingly affected the field of decision-making. Morgenstern and Von Neuman (1947) developed the model of expected utility based on the assumption that the decision-maker is fully rational. This model became the paradigm in our economic reasoning: the decision-maker was considered to be a 100% rational agent that follows strict patterns in order to optimize a solution to a given problem under fixed constraints: the prescriptive models were born as the best courses of action for a given situation.

In the mid-20th century, some researchers noticed that the neo-classical models had their limitations. The idea grew that multiple other factors interfered in practice and that the rationality assumption on which economists based their models was incomplete. Simon (1955) introduced one of the first concepts contradicting the neo-classical models: he argued that decision-makers couldn’t process all the relevant information to a particular problem before the actual decision had to be made, and developed the concept of bounded rationality. He argued that the decision-makers were not 100% rational and had limits to information processing: there are boundaries on our rationality. Another researcher who contributed to the emerging of the concept of bounded rationality is Hayek (1949). Frantz (2012) argues that Hayek’s principal argument against the rationality assumption was the limits of the human inner environment, the computational limits of human beings.

Moreover, as noted by Schwartz (2002) and in contradiction with the neo-classical theories, Simon assumed that an important task of the decision-maker is to develop means to design alternatives to a specific problem set. Thus he introduced a new scope into the field decision-making: the decision-maker must not only optimize a problem set according to rationality assumption, but also create means to design alternatives to the problem set. By introducing the concept of bounded rationality opened a new field of research that soon diversified in multiple branches under the name behavioral economics. This field is based on different understanding of the concept of scientific approach: “Behavioral economics are less narrow, rigid, intolerant, mechanical, separate, and individualistic than mainstream economics.” Tomer (2007, p.470). In the same context, Camerer (2003) lists the main different building blocks of both approaches to economics, such as the behavioral alternative states: we do not make decisions according to the well-known rules of expected utility, but rather rely on prospect theory. This theory, developed by Tversky and Kahneman (1979) is a more dynamic theory describing our decision-making, assuming that decision-makers have a different behavior when losses or gains are at stake.

We now know that multiple factors affect our decision-making and that we cannot rely on our sole rational capacity. Since Simon and the emergence of behavioral economics, multiple studies (Damasio, 1999; Shiv et al, 2005; Thaler, 1993, 1994, 2005; Elster, 1983, 1989, 2000, 2009) have shown the irrationalities that occur in our decision-making process, the consequences of which have impacts in all disciplines where the human decision-maker plays a role.

According to Baker and Ricciardi (2014) there are two kinds of limits in our rationality: the first one was highlighted by Simon and his concept of bounded rationality, which described the limits of our brain in processing available information; the second limit is related to the cognitive biases at play in our mechanisms of thinking and decision-making.

In this chapter we will narrow our field to the study of the mechanisms at play in our decision-making and the resulting cognitive biases present in a business environment. Multiple studies try to explain irregularities in our decision-making. Keenan and Somerville (2009) classify three different levels in which these irregularities can affect our decision-making: the external or societal level (groupthink), the internal level (neuro-economics), and the individual level (cognitive biases).

Groupthink, a phenomenon first described by Janis (1972), can be described according to psychologists Hogg and Vaughan (2008, p.337) as: a mode of thinking in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures. At a second level it is important not to deny the role of internal mechanisms such as brain structure and complex biochemical interactions on behavior. Keenan and Somerville (2009) discuss the relatively



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new field of neuro-economics, with a focus on the neurological determinants to explain the variation to the rational choice theory, more particularly on the role of emotions in the decision-making process. They study the functioning of the brain as well as its structure and chemical processes related to emotions through the use of fMRIs Functional magnetic resonance imaging. As technology is improving fast, this field will surely add responses to the subject of decision-making.

Finally, Keenan and Somerville (2009) posit that there are forces at play at the individual level that come into direct conflict with the economists’ assumption of rationality. Researchers prudently enter the field of cognitive theories to explain that our decision-making can be influenced by factors such as overconfidence (Paulos, 2003; Gilovich et al., 1985). Moreover, they mention the cognitive dissonance theory (Brehm, 1956), which explains the phenomenon of rationalizing one’s decision in order to bring the behavior in line with one’s cognitions. Brehm (1956) developed this theory in an experiment. First, he asked a group of women to rate household appliances, after which he told the participants they could select one of the appliances to take back home. Then he asked the participants to rate the appliances again. The results showed that the participants systematically increased the rating for the appliance they had chosen. Kahneman (2011) explains this as an outcome of the human brain to constantly seek coherence. This chapter will next examine the link between cognitive biases and decision-making.

Decision-making and cognitive bias

In 2015, HBR published a decision making test (Beshaers et al., 2015) under the title Are you being tricked by intuition? It is a well know test from Kahnemann’s 2011 book (p.44): A bat and a ball cost $1.10 in total. The bat costs $1.00 more than the ball. How much does the ball cost? The intuitive response is to assume that the bat costs $1.00 and the ball costs 10 cents. But if you did the math, you’d see that this couldn’t be true: here’s a dollar’s difference between the two, so the only set of prices that meets all the requirements in the problem is $1.05 for the bat and $0.05 for the ball.

Kahneman became famous in 1974 with his article with Tversky on judgments and choices under uncertainty. In 2002 he was the first psychologist who was awarded with the Nobel Prize of economy for his work on an alternative model to explain human behavior, the prospect theory. In his best-seller Thinking, fast & slow (2011) he describes the functioning of our decision-making process with a two-system approach and heuristics, systems that he literally sees like characters at play in our mind. It is essential according to him to understand that all the decisions we make are a resulting exercise of these two characters at work in our brain. The names System one and System two go back to Stanovich and West (2000). According to them, System 1 is characterized as automatic, largely unconscious, and relatively undemanding of computational capacity. It conjoins properties of automaticity and heuristic processing. This System has as its goal the ability to model other minds in order to read intention and to make rapid interactional moves based on those modeled intentions. System 2 conjoins the various characteristics that have been viewed as typifying controlled processing. System 2 encompasses the processes of analytic intelligence. The authors listed all the terms that were associated with these two systems in the history of cognitive psychology by various theorists:

System 1: automatic, fast, associative, undemanding of concentration and resulting of personal experience, unconscious.

System 2: controlled, slow, rule-based, demanding of concentration, effortful, conscious.

Kahneman describes these two systems as two agents with their individual abilities, limitations, and functions, and lists some examples of automatic activities that are attributed to both systems:

System 1:

• Detect that one object is closer than another

• Orient to the source of a sudden sound



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• Complete the phrase “bread and …”

• Detect hostility in a voice

• Answer to 2+2 = ?

• Drive a car on an empty road

System 1 has two kinds of skills: the first are innate skills that we share with animals (e.g. orient to the source of a sudden sound) and learned skills (answer to 2+2). All these skills result in actions we cannot control: we can’t not orient ourselves to the source of a sudden sound nor can we not think of number 4 while seeing 2 + 2 = . We can try to resist to these actions but unwillingly our attention will be focused on them a least for a while. What we can do is try to focus, willingly, on another target. That is where System 2 enters into action. All the actions of System 2 share one basic property: they are effortful and require attention.

System 2:

• Look for a woman with white hair

• Focus attention on clowns in a circus

• Monitor the appropriateness of your behavior in a social situation

• Count the occurrences of the letter “a” in a page of text

• Park in a narrow space (for most people except garage attendants)

• Fill out a tax-form

• Check the validity of a complex logical argument

All these actions indeed require attention. The widely used ‘pay attention’ is appropriate: when done with less attention we will perform these activities badly. One characteristic of our brain is that we dispose of a limited amount of attention: we can allocate our budget of attention as we want but if we go over budget we will perform these activities badly. Similarly, wanting to make multiple decisions at the same time due to time constraints will affect our decision-making adversely. A famous example to illustrate this limited budget of attention we can allocate was shown by Chabis and Simons in their book The invisible gorilla (2010): while two basketball teams are playing against each other volunteer participants are asked to count the number of passes that were given in by the white team, ignoring the black team. This assignment is really attention demanding. During the play, a woman with a gorilla disguise walked on the playground for 9 seconds and went away. When asked, half of the participants did not notice anything abnormal. But when no task was assigned 100% of the participants noticed the gorilla. Moreover, when told, the participants who didn’t see the gorilla, were mostly convinced that it was not there. According to Kahneman this illustrates two important facts about the functioning of our mind: we can be blind to the obvious, and we are also blind to our blindness. Both systems are at play when we are awake: System 1 is in an automatic-pilot mode while System 2 is in a low-effort mode using only a small amount of its capacity. When we are exposed to external input from our senses, System 1 generates suggestions according to what we know (habits, memory, etc.) and these suggestions are most of the time approved by System 2 which has a control function over these suggestions. Basically, System 2 act as a press secretary while System 1 is a monkey. When System 1 can’t handle a situation, System 2 goes from its low effort mode to effortful mode and tries to solve the issue. This is demanding in attention. System 1 adopts a model that was created by personal experiences, and bases all its suggestions on previous experiences that are stocked in memory. System 2 is activated when System 1 cannot associate what is perceived with what it knows from his experiences (e.g. in our world gorillas don’t cross basketball fields).



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Consider the following sentence:

A BIRD IN THE

THE HAND IS WORTH

TWO IN THE BUSH

Taleb (2007) illustrates with this example the unconscious activity of our powerful sense making System 1. If you haven’t noticed anything strange try again.

The interaction between both systems is highly efficient because System 1 is powerful and most of the time correct. This allows the lazy and effortful System 2 to stay in its low effort mode until things get more complicated and needs attention. However, System 1 has its limits. Kahneman describes these limitations as the cognitive biases: systematic errors due to the functioning of our System 1. These systematic errors arise from heuristics, the ‘rules of thumb’ used in our perception of what is happening, also called ‘mental shortcuts’. They are highly efficient and allow us to decide and act rapidly and without having to consciously ask ourselves what we are doing; we cannot live without them. Our System 1, in its task of explaining automatically what is happening all around us sometimes makes wrong suggestions to System 2. System 2 in turn, due to its low effort mode, trusts the erroneous suggestions of System 1. Besides, System 1 has more influence on decision-making when System 2 is busy. These systematic errors, cognitive biases, find their source in the functioning of our 2 systems. Moreover, they are being reinforced by various mechanisms and their impact our thinking. These mechanisms will be discussed below.

Associative Machine

The mechanisms of our thinking have been studied for centuries. Hume (1748) used the term association of ideas for the links in our brain that follow each other in an orderly way. Ideas are a broad network with links to each other. Our System 1 and its automatic features associate ideas without any control. Kahneman describes many different types of links our associative memory creates: causes are linked to their effects (virus - cold); things to their properties (banana - yellow); things to categories they belong to (ape - animals). Curiously, when we think of an idea, the associate memory mechanism links this idea not merely to one other idea but to a whole set of ideas through the different links. Furthermore, we are only aware of a few generated ideas and many ideas generated happen unconsciously (Morewedge and Kahneman, 2010). The priming effect is described by Kahneman as the influencing of an action by the idea. We can be primed by anything in our environment that makes us think of an idea and thus are more inclined to act in a way or another: if you just spent one hour in a kitchen and were asked to complete the word SO_P, you’ll be more inclined to answer SOUP than SOAP. The opposite would happen if you spent one hour in a laundry service. The priming effect is really powerful as it happens unconsciously and has immediate impact on the decision-making and behavior. Bargh et al. (1996) relate an experiment illustrating the priming effect: two groups of students where asked separately to write a sentence which had to contain a set of 4 words. The first group were assigned a set of words associated with the idea of old (grey, bald, wrinkle, Florida) the second group had to write another set of word associated with the idea of young. After completing this task the groups were asked to go to another hall for another assignment. The time of the walk between the two places was measured. The researchers noticed that the participants who had to write sentences with the set of words associated with old took much more time than the other group. Bargh et al. explain that there are two stages of priming at play in this example: firstly, the word ‘old’ is primed through a set of words; secondly, the idea of ‘old’ primes behavior while the students walked slowly from one place to the other. Surprisingly, all this happened without any awareness of the participants. This effect has a direct impact on our decision-making: what just happened in your environment has an impact on how you will perceive things and behave. Another example illustrating priming effects is given by the experiment of an honesty box in a kitchen Bateson et al., 2006). Every week a different picture was pasted on the honesty box where



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consumers had to pay for what they had (coffee, tea, etc.): in odd weeks it was a picture of flowers, in even week a close-up picture of eyes. The results are significant: the weeks with the eyes picture on the honesty box, it collected much more money than the weeks with the flower picture. The major implication for decision-making is to set up a neutral environment with a neutral mindset before making the next big decision. Cognitive ease versus cognitive dissonance

System 2 is slow, demanding of concentration and effortful. Kahneman discovered that many people seem to find cognitive effort (the activation of System 2) at least slightly unpleasant and thus avoid it as much as possible. When we are in a comfortable, well-known environment and in a good mood we experience what Kahneman calls cognitive ease. It is a state of mind where our System 2 is in its low-effort mode and relies (nearly blindly) on the suggestions of System 1. This state of mind is comfortable and thus we are not willing to leave it. This makes us prone to fall into the systematic errors of the interaction between our 2 systems: the cognitive biases. Cognitive dissonance arises whenever our simplifications of the world are contradicting what we perceive in the real world.

The causes of cognitive ease can be various: being familiar with a situation or with people, being positively primed by an action or simply being in a good mood. As a consequence we tend to judge positively all the input we are confronted.

Figure 1 – Causes and consequences of cognitive ease

Cognitive ease is an essential aspect to be aware of during our decision-making process. It influences our judgments and choices. Linked to this cognitive ease are familiarity, clear display and a good mood. Jacoby et al. (1989) came to the conclusion that we are more likely to have a positive impression of names of persons if we read their names earlier in the past. This is because these names will appear more clearly to us and thus our System 2 will have no effort to make. It will be able to stay in its low effort mode or cognitive ease and thus will have a positive first impression of the person. Similarly we will remember people’s names with an easy pronunciation better and consequently they will be easier to retrieve in our memory and will be associated positively because we could stay in the state of cognitive ease. System 1 will retrieve an easy name and thus the impression of familiarity is created. After this, our System 2 will rely on that impression of familiarity to make its judgment (good or bad person). This process also applies to situations of people encounter. Zajonc (1969) studied the correlation between the repetition of a random stimulus and the feeling of the participants. Repeated experience can lead our state of mind into a cognitive ease where it is inclined to make systematic errors, an example of how cognitive ease can affect our decision-making. While repetition is based on the recurrence of the words read or events experienced, another aspect that can lead or reinforce our cognitive ease are the format, font, visibility of a word or image, which can influence the way we look at them. To illustrate this, experimenters used The Cognitive Reflection Test developed by Frederick (2005). The three questions of the test evoke an intuitive answer (an answer typically generated by System 1). One of the questions is the well-known bat and ball question that was mentioned earlier. Experimenters submitted the CRT test to 40 Princeton students, of which half received the CRT test in clear and easily readable black font, the other half in small font with unclear grey color where the test was readable but needed some effort to decipher. The results were astonishing: 90% of the students who received the CRT test in clear font made at least one mistake in the test, compared to 35% of the other students. Kahneman concludes that breaking the cognitive ease, whatever the source, involves System 2 and thus helps to prevent intuitive answers suggested by System 1.

Before making an important decision, decision-makers should ask themselves what mood they are in, and tell themselves: “I am in a very good mood today, and my System 2 is weaker than usual, I should be extra careful react before making a big decision”. Topolinski and Strack (2009)



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studied the link between the cognitive ease and our emotions. According to their studies our affect has an influence on our cognitive ease. They showed through an experiment that being in a good mood or a bad mood has an impact on the way we associate things intuitively. According to Kahneman these findings can be explained with the concept of cognitive ease: most of the time, a good mood is synonym for a safe, easy and well-known environment which means System 2 can stay in its low effort mode (in cognitive ease). While being in a good mood System 1 is at play and System 2 relies, somehow blindly, on the suggestions of System 1. As a consequence, cognitive ease is present and we are unconsciously not willing to leave this comfortable state of mind. Our brain does not want to activate a higher control from System 2 on System 1, thus a good mood loosens the control from our System 2 on the intuitive suggestions of System 1 says Cognitive ease is both a cause and a consequence of a pleasant feeling (Kahneman, 2011, p. 69).

Coherence seeking

A third important characteristic mechanism of the functioning of our brain and subsequently the functioning of our decision-making is the unstoppable quest for coherence. This happens because our System 1 associates unconsciously and automatically everything it is confronted with, AND it is effortful to activate System 2 to think about the occurrence of things. As a result, System 1 associates to everything a cause and an effect that suits its experience, beliefs, memory, concepts etc. in order not to have to activate System 2. If System 1 is truly unable to find a match with what is happening and what it knows intuitively, System 2 will be activated. However, unconsciously the human brain avoids this situation because most of us find it unpleasant to leave to comfortable cognitive ease where every cause has a well-known effect.

Consequently, we are prone to find to every cause a plausible effect and vice versa. Because for our System 1 every cause has an effect the world should be like this too. Unfortunately, it is not. Some effects happen because of pure hazard or luck. However, our System 1 doesn’t like to attribute causes and effects to hazard or luck, but instead wants to categorize these in well-known experiences. The functioning of our brain is persuading us that every cause should have a rational logical effect. As a consequence we are constantly looking for coherence in what we experience, even if there is no true link we will create one in order to fit our mental categories. This has effects on our ability to learn from past experiences as the hindsight bias demonstrates. Kahneman illustrates this mechanism as follows: After spending a day exploring beautiful sights in the crowded streets of New York, Jane discovered that her wallet was missing. At the end of this sentence, most people will have thought of a pickpocket because the two mechanisms at play (associative machine and cognitive ease) drive us to think that way. The idea of the pickpocket was primed by the idea of crowded streets and tourist sightseeing because it makes sense and we are familiar with this kind of happenings. Our System 2 is in low effort mode and cognitive ease: nothing abnormal at hand and thus it accepts the suggestion of System 1 which is that Jane’s wallet was stolen by a pickpocket. However in this situation it is statistically much more probable that Jane lost or forgot her wallet in a restaurant. Due to both these mechanisms at play, our brain didn’t even consider another cause. Curiously, due to these mechanisms, our brain is not prone to accept the role of hazard or chance and systematically neglects it. An interesting example to illustrate this finding is a situation all decision-makers have experienced. When we take an important decision (especially one we have been thinking of for a long time) and it appears the outcome is positive, we will undeniably attribute the positive outcome to our great decision-making capacity and insights etc. However, with the same decision process and a negative outcome, we will undeniably find external reasons that nobody could have predicted to explain the negative outcome. In both cases there is a neglect of luck, which in both cases has a great deal of impact.

COGNITIVE BIASES IN DECISION-MAKING

As seen above, there are an infinite amount of cognitive biases in business decision-making. Some will be developed further.



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Representativeness bias

This cognitive bias leads us to neglect statistical reasoning when we are confronted with situations where we attach ourselves to some details and thus form a cliché of the situation. We tend to rely more on our mental models (representations / simplifications of the world) than on statistic reasoning. The representativeness bias has three major declinations. This bias is present in multiple decision-making processes in a business environment where managers have to assess the occurrence of specific situations or reliability of specific partners.

1. Insensitivity to sample size

A town has two hospitals: one large and one small. Assuming there is an equal number of boys and girls born every year in the United States, which hospital is more likely to have close to 50 percent girls and 50 percent boys born on any given day?

A. The larger B. The smaller

C. About the same (within 5 percent of each other)

The intuitive answer to this question is C, however the correct answer is A. The larger the sample, the closer the sample matches with the reality.

2. Insensitivity to probability

Jim is tall and very muscular. He’s also very competitive. He drives an expensive car and wears rather flashy clothing. Which is more probable?

A. Jim is a professional athlete. B. Jim has a more common job like a lawyer or financial analyst.

The intuitive answer to this question is A, however the correct answer is B. We neglect the statistical reasoning of base rates due to our mental representation of Jim. Due to some hints in the description we stereotyped Jim. However, the reality is different, there are far more lawyers and financial analysts than professional athletes, consequently it is much more probable that Jim is a lawyer or a financial analyst.

3. Conjunction fallacy

Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations. Please rank the following statements by their probability, using 1 for the most probable and 8 for the least probable.

A. Linda is a teacher in elementary school. B. Linda works in a bookstore and takes Yoga classes. C. Linda is active in the feminist movement. D. Linda is a psychiatric social worker. E. Linda is a member of the League of Women Voters. F. Linda is a bank teller. G. Linda is an insurance sales person.



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H. Linda is a bank teller and is active in the feminist movement. In this question most respondents rank H as more probable than F, however it is statistically false that the occurrence of the aspects are more probable than the occurrence of one according to the Bayesian rule.

According to Kahneman these biases arise due to the activation of our System 1. In all of the above examples hints are placed in the description in order to activate the powerful associative machine of our System 1 with a stereotype. Thus we answer all questions with this stereotype in mind and neglect the statistical rules that govern probabilities (base rate neglect, sample sizes etc.). System 1 suggests and erroneous answers to System 2 that doesn’t want to make the effort to really analyze the data statistically. Thus we judge probability by representativeness, and this is often correct but can sometimes lead to serious mistakes. A question for investors would have to be: This start-up looks as if it could not fail, but the base rate of success in the industry is extremely low. How do we know this case is different?

In the example, the probability of Linda being a bank teller and active in feminist movement is statistically less probable than Linda being a bank teller. Even if respondents studied statistics and probabilities they still fall into this trap due to the power of our System 1, its associative machine and coherence seeking.

This bias arises due to the simplifications we have of the world where all is categorized and fits into a certain mental construction. Without these simplifications it would not be possible to think, but they have their limits. They are a sample of the reality, and a sample does never represent the reality 100% accurately. Moreover, Kahneman (2011, p. 324) asserts that specific descriptions trigger the associative machinery of our System 1.

The above examples are situations where logic is confronted with representativeness. Due to our fast, effortless, associative System 1 and our mental simplifications, we tend to rely on the categories (stereotypes) to make a decision instead of relying on statistical reasoning.

Halo-effect

The halo-effect or exaggerated emotional coherence is a powerful bias when we judge people or situations. Due to both mechanisms of associative machine and coherence seeking we tend to look at situations or people in a simpler and more coherent way than they are in reality. Because in our mind all is categorized and simplified into mental models, our brain rejects complexity and non-coherence. Basically, good people do good things and bad people are all bad. Inconsistencies reduce the ease of our thoughts and the clarity of our feelings (Kahneman, 2011, p.200).

Kahneman describes a situation where this halo-effect is at play: You meet a woman named Joan at a party and find her personable and easy to talk to. Now her name comes up as someone who could be asked to contribute to charity. What do you know about Joan’s generosity? Nothing. There is little reason to believe that people who are agreeable in social situations are also generous contributors to charities. But you like Joan and you will retrieve the feeling of liking her when you think of her. You also like generosity and generous people. By association you are now predisposed to believe that Joan is generous. And now that you believe she is generous, you probably like Joan even better than you did before because you have added generosity to her pleasant attributes.

The halo effect can be positive or negative. This effect is especially relevant in our decision-making process: it emphasizes the importance of the first impression that we cannot control. The sequence in which we meet people or study a situation matters and decision-makers are most of the time unable to control this sequence. We are prone to this bias due to the intrinsic characteristics of our both systems and our imperfect simplifications of the world. System 1 makes associations that System 2 lazily accepts without accurately processing or challenging the information. Besides, decision-makers are willing to remain within the cognitive ease, the mindset in which what we perceive is perfectly coherent and logical. There is no room for cognitive dissonance in this mindset. Cognitive



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dissonance arises whenever our simplifications of the world are contradicting what we perceive in the real world. We have two possible alternatives to face this situation: modify the reality or change our simplifications. Joan couldn’t possibly be a terrorist for example. Moreover, the halo-effect reinforces our quest for coherence: It contributes to coherence because it inclines us to match our view of all the qualities of a person to our judgment of one attribute that is particularly significant (Kahneman, 2011, p. 199).

Let’s take the example of a CEO who has been working with a well-known supplier X for 40 years. A newcomer in the CEO’s company is blamed for a fraudulent action in the supply chain. The newcomer argues that he hasn’t done anything wrong but that it is supplier X that is responsible for the issue. In this situation the CEO is nearly inevitably affected by the halo-effect. The well-known supplier X is simplified in the CEO’s mindset as a reliable partner because he has shared many profitable years with him and is an old friend of his father. A cognitive dissonance will be created in the CEO’s mindset if he thinks this supplier could have done a fraudulent action. On the other hand, the newcomer is still simplified as a stranger and more inclined to make a fraudulent action. Even if the first intuition of the CEO is in most cases correct, he should be aware of this mechanism and objectively analyze the situation before making a decision.

Framing bias

We tend to assess information that is presented in different ways differently and this then affects our decision-making. The format in which a question or problem is presented influences the way we judge the situation. As an example, people usually prefer a 90% fat-free product rather than a 10% fat product. Our decision-making is not reality-bound because our System 1 is not reality-bound (Kahneman, 2011, p. 364). Both descriptions of the product are substantially equal to each other, however we assess the information differently. Tversky and Kahneman (1981) found that the wording and way to frame a question is more important that we might consider. In 1979, Tversky and Kahneman developed the prospect theory. The theory relies on the following behavioral tendency:

▪ When people face gains they become risk averse ▪ When people face losses they become risk seeking Kahneman explains that these differences in our perception arise because humans dislike losing

more than they like winning. Consequently, if a situation is framed in a different way (changing the reference point) our behavior towards risk could change. The importance of framing a question becomes extremely relevant whenever the decision-maker is confronted with choices supposing loss aversion.

Choose between getting $900 for sure and a 90 percent chance of getting $1,000.

A. Getting $900 B. 90 percent chance of getting $1,000

Choose between losing $900 for sure or a 90 percent chance of losing $1,000. A. Losing $900 B. 90 percent chance of losing $1,000

Here people tend to answer differently in the similar situations.

Anchoring bias

Any number that is presented has a benchmark effect on people even if this number is irrelevant or absurd. Kahneman illustrates this with an experiment where participants to the Exploratorium study about environmental damage were asked about their willingness to contribute to save seabirds. First of all, a substitution bias (that leads us to replace a complex question (target question) with an easier question (heuristic question, where an intuitive answer immediately arises) is at play here, and an intensity matching is to be done between dollars and feelings about seabirds. The questions are:



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Would you be willing to pay $5 annually to save the seabirds? How much would you be willing to contribute? ___ Would you be willing to pay $400 annually to save the seabirds? How much would you be willing to contribute? ___

In these cases the anchors are $5 and $400. The average contribution for the participants with the $5 anchor was $20. The average contribution for the participants with the $400 anchors was $143. There are two kinds of anchoring effects: one is the consequence of our System 1 functioning, the other of our System 2 functioning. The first kind occurs in our automatic and fast System 1. Our System 1 will be primed by a number, even if this number is completely irrelevant or absurd. Our System 1, in its quest for coherence and due to our way to process and accept information will unconsciously try to make sense of the number that was presented to us, even if we are immediately aware of the absurdity of the number as in the following questions:

1. Was Gandhi more or less than 144 when he died? 2. How old was Gandhi when he died? The second kind of anchoring effect occurs due to a process of our System 2. Our System 2 notices

a number, and from this number it will adjust the number to its belief of the outcome, as in the question: What is the boiling temperature of water at the top of the Everest? Here our System 2 is at play, we know that is should be lower than 100° but don't know exactly so we will deliberately adjust our answer until we reach our uncertainty zone where we will give our answer. It will go through a deliberate adjustment process until our system falls into the “uncertainty zone” where it will consider that the answer should be close to this number, and stop to adjust. Common anchors in a business environment are to be found in negotiations. Kahneman argues that informative anchors are as powerful as completely un-informative anchors. The anchoring bias has no effect because people believe in them, they just have effect. Kahneman (2011, p. 128) concludes: You are always aware of the anchor and even pay attention to it, but you do not know how it guides and constrains your thinking, because you cannot imagine how you would have thought if the anchor had been different (or absent). However, you should assume that any number that is on the table has had an anchoring effect on you, and if the stakes are high you should mobilize yourself (your System 2) to combat the effect. Hindsight bias

Our brain makes up stories of the past by adjusting the reality in order for it to make sense. But a limitation of our brain is the incapacity to recover past states of knowledge. Once you have adopted a new mental model or simplification of the world it is hard to remember how you thought when you used the old mental model (simplification of the world). Thus our inability to remember properly how we thought in a previous state of mind will cause the effect of minimizing the extent to which you were surprised by a particular past event. Beyth and Fischhoff (1975) first demonstrated this ‘I knew it all along’ effect or hindsight bias. In an experiment. Kahneman (2011, p.201) summarizes one of the causes of this bias: Our comforting conviction that the world makes sense rests on a secure foundation: our almost unlimited ability to ignore our ignorance. As a consequence of the bias, Kahneman (2011, p. 203) describes the importance of evaluating our decision-making processes as follows: The hindsight bias has pernicious effects on the evaluations of decision-makers. It leads observers to assess the quality of a decision not by whether the process was sound but by whether its outcome was good or bad. This hindsight bias can lead shareholders to the outcome bias concerning people who act on behalf of others (advisers, CEO’s). The outcome bias tends to make us blame a CEO for the good decisions that turned out badly (due to bad luck) and give him little reward for the successful decisions that appear to be obvious only after the fact. Together, hindsight bias and outcome bias can lead to a pernicious effect of overestimation: CEO who makes a highly risky and reckless decision will never be blamed if the outcome turns out to be positive, on the contrary: he will be rewarded. With hindsight people will not attribute his successful outcome to luck (as it mostly is in this case) but to the CEO’s flair and foresight. Moreover, people who doubted him will be seen as weak, shy, and not courageous.

In most big success-stories the writers account a large majority of the success to the founders’ skills, strategy and vision. However, the role of luck has in most cases always contributed to a



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significant extend to the success of the company. But people do not like to attribute success to luck and thus try to minimize the role of luck. As Kahneman (2011, p.204-205) says: The sense-making machinery of System 1 makes us see the world as more tidy, simple, predictable, and coherent than it really is. The illusion that one has understood the past feeds the further illusion that one can predict and control the future. These illusions are comforting. They reduce the anxiety that we would experience if we allowed ourselves to fully acknowledge the uncertainties of existence.

Sunk-cost bias

This bias, also called the ‘Concorde effect’, tends to make us reluctant in case of a doomed project to take the losses and move on to another project. Because we invested a great amount of effort (or money) in a project we are reluctant to stop it even if rationally it would be better to do so. In the case of the Concorde plane, engineers and commercials realized the plane and their investment would never be profitable. However, because they invested so much effort and money in it, they kept investing in this project until it was finalized. The mechanisms at play in our brain make us reluctant to stop because we constantly try to avoid losses and the consequent emotions. Thus, postponing the decision to stop a project appears to be a (short-term) solution. Even if we are well aware of the absurdity of going on, it is difficult for our brain to accept the idea having to stop. Kahneman (2011, p. 345) defines the sunk cost fallacy as follows: The decision to invest additional resources in a losing account when better investments are available. Overconfidence bias

Kahneman (2011, p.14-15) describes overconfidence as: Our excessive confidence in what we believe we know, and our apparent inability to acknowledge the full extent of our ignorance and the uncertainty of the world we live in. We are prone to overestimate how much we understand about the world and underestimate the role of chance in events. Managers are prone to fall in this bias due to its powerful and multiple causes, the first of which is the unwillingness to make a cognitive effort, which most of us find discomforting and avoid it as much as possible. Thus, we tend to rely on our intuition. However, we tend to believe we know more than we actually do know. Besides our intuitions, due to the coherence seeking mechanism of our System 1 our decisions could be biased. A second cause of the overconfidence bias is the availability bias: recent memories come up more easily than older experiences. Now, if a CEO had managed to acquire three companies in a row, he will fall into the overconfidence bias due to his limited ability to recall cases where acquisition attempts he made failed. A third cause is due to our strong pattern-seeking associative machine. Whenever a company achieves tremendous profits the CEO is seen as having done some smart moves and the flair that lead to the success. However, when the company accuses tremendous losses, all blame external factors that affected the company negatively such as recession, politics, etc.

This demonstrates that we are keen to build coherent stories (good CEOs have flair) and that we are reluctant to give luck a major role in the outcomes of events. Thus, a CEO that managed it to acquire three companies in a row (most probably with a big stroke of luck) will be tempted to think he has certain superpowers in the field of acquisitions, which will lead him to the overconfidence bias for the next acquisition. A fourth cause, described by Taleb in his book The Black Swan (2007), is the narrative fallacy (or hindsight bias). This phenomenon is due to our constant quest for coherence (convincing ourselves a posteriori ‘we knew’ something would happen). It leads to the illusion that we understand the past and that we are able to predict the future accurately, thus leading to overconfidence in decision-making. Overconfidence influences managers and can lead to serious losses. Malmendier and Tate (2009) found that CEOs who were praised with business awards for their achievements subsequently underperformed.

PRACTICAL APPLICATIONS AND RECOMMENDATIONS

Traditional models of decision-making are based on rationality, but reality shows that that is rarely the case. Recognizing and challenging the assumptions and biases in decision-making is essential in a post-bureaucratic organization. According to Jamali e al.(2006:339), “the most prominent features [of post-bureaucratic organizations] that are recurrently mentioned in the literature include



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empowerment, teams, trust, communication, commitment and flexibility.” All these features are prone to assumptions and biases. Cognitive ease is a state of mind where System 2 is in its low-effort mode and relies (nearly blindly) on the suggestions of System 1. This state of mind is comfortable and thus we are not willing to leave it. This makes us prone to fall into the systematic errors of the interaction between our 2 systems: the cognitive biases.

Cognitive biases arise due to the thinking process at play in our brain, and it is important to be aware of the mechanisms of our thinking and the phenomena reinforcing them. It is impossible to avoid all our cognitive biases because it would imply a permanent state of high attention and infinite capacity processing for every decision we make.

There are however two possible solutions in order to avoid being caught by these biases: firstly, it is possible to recognize situations where we are subject to be victim of one of these cognitive biases; secondly, it is possible to prevent to fall into these biases by preparing ourselves before a decision-making when the stakes are high.

Managers can prepare by mobilizing their attention to counter the anchoring power of the first number, especially in negotiations where a particularly high or low proposition is a powerful anchor. Surowiecki (2004) describes how to de-correlate the error in decision meetings by asking every participant individually before anyone speaks their point of view.

Managers should also take into account diverse and independent sources of information (even those they disagree with), search for disconfirming information and adopt the position of the devil’s advocate. They should also pay attention to the wording and the way the content is framed (90% fat free is more convincing to the consumer than 10% fat).

Framing effects are particularly relevant when the decision-maker is in a situation of uncertainty involving gains and losses. According to the prospect theory, decision-makers tend to become risk averse when facing gains and risk seeking when facing losses. The statement: ‘We have nothing more to lose’ is an alert signal to this particular bias. Caution is also recommended with predictions and forecasts, where managers fail to recognize the role of luck in past success stories, due to the need to explain the world in a coherent manner. Managers need to be careful with predictions based on lessons of past success stories, and to consider the major role of luck. Moreover, managers have to be aware of their incapacity to predict the future accurately. As Socrates would say: “I know nothing except the fact of my ignorance”.

Managers need to be aware of first impression and the power of association, which makes us look at situations and people in a simpler and more coherent way than in reality. The importance of the first impression during a presentation of a new project is uttermost important: it will influence the decisions taken by the audience due to its halo-effect (positive association, over-confidence). The managers need to stick to statistical reasoning when evaluating occurrence of events, and keep their feet on the ground after multiple successes in a row.

In order to prepare before an important decision, managers should use scenarios to anticipate future uncertain events (pre-mortem technique). Taleb (2007) calls these rare, impactful events that are predictable a posteriori ‘black swans’. One can try to avoid them by imagining a few very improbable outcomes of the project and imagine they happened, followed by looking for causes of occurrence of these improbable outcomes.

Most of all, managers must try to break the cognitive ease by activating System 2, taking into consideration the mood they are in, setting up a neutral environment, and openly discussing the impact of cognitive biases with their partners.

FUTURE RESEARCH DIRECTIONS

Cognitive biases arise due to the mechanisms at play in our thinking and affect our decision-making processes; these mechanisms result from the interaction of two systems: System 1 (fast) and



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System 2 (slow). Decision-making is influenced by various factors: brain capacity, stress-management, cognitive biases, etc. All these factors seem to influence decision-making from an internal perspective. Culture, however, seems to influence the way we make decisions from an external perspective. Due to cultural differences, it seems straightforward that cognitive biases and culture are strongly interconnected in one way or another. However, it is unclear how both are linked: is there a direct impact of culture on cognitive biases? Is decision-making influenced by culture?

There is little research on cultural differences in cognitive biases (Jacquemin, 20 ). Can one assume that cognitive biases are universally shared? However, different cultures may have particular sets of biases and one needs to examine the role of the overconfidence bias, which may be the bias of overconfident professionals: Overconfident professionals sincerely believe they have expertise, act as experts and look like experts. You will have to struggle to remind yourself that they may be in the grip of an illusion (Kahneman, 2011), or an effect of culture: Lundeberg et al. (2000} found that confidence appears to have situational, cultural components. These are areas of research that could be explored further, with larger groups and not just with management students who are all over the world influenced by westernized management curricula.

One constitutive element that is prone to affect our decision-making is language. Being able to think about a situation presupposes the use of language. Words are the first simplifications humans make in order to be able to think. In the philosophy of science Wittgenstein (1921, 1922) describes words as proposition to explain the reality. Every word is a model representing the world and receiving a meaning due to its linkages with other models/words. The idea of Wittgenstein is that the language is a first toolbox that is available to enable humans to think. Sapir (1921), an American linguist, describes the language as an acquired, cultural function. His idea is that language predetermines the way we look at the world. Sapir and Whorf formulated the hypothesis that there are certain thoughts of an individual in one language that cannot be understood by those who live in another language. This presupposes the impact of native languages on how people think.

The case seems to be that languages differ semantically but not without constraint, and that linguistic differences may induce nonlinguistic cognitive differences but not so absolutely that universal cognitive processes cannot be recovered under appropriate contextual conditions (Kay and Kempton, 1984). More recently, Roberson, Davies I. & Davidoff (2000) found that categorical perception seems to be language dependent. And in 2010, Deutscher published his book Through the Language Glass, arguing that our mother tongue does indeed affect how we think and, just as important, how we perceive the world.

This calls into question the long-standing psychological assumption that the way the human mind works is universal. By analyzing the differences between Asia and the West, Nisbett (2003) argues that cultural differences affect people's thought processes more significantly than believed. Nisbett demonstrates that people actually think about—and even see—the world differently because of differing ecologies social structures, philosophies, and educational systems that date back to ancient Greece and China. Nisbett talks about rationalism and reasonableness, arguing that the former is very important in the West, whereas East Asians traditionally favor the latter. Westerns strive to resolve dilemmas and paradoxes, whereas East Asians strive for compromises or can accept what to a Westerner looks like two mutually exclusive opinions. In a nutshell, Nisbett argues that culture colors the way the mind works, and human behavior is not hard-wired but a function of culture.

The questions about the direct impact of culture on cognitive biases and the influence of culture on decision-making are worth exploring further.

Conclusion

In today’s post-bureaucratic organization, where decision-making is decentralized, and lower-level managers have the ability to take initiatives (Anderson, 2004), most managers are confronted with highly complex situations where time-constraint and availability of information makes the decision-making process essential. Studies show that a great amount of decisions are not taken after


https://en.wikipedia.org/wiki/Social_structure

https://en.wikipedia.org/wiki/Philosophies

https://en.wikipedia.org/wiki/Educational_system

https://en.wikipedia.org/wiki/Ancient_Greece

https://en.wikipedia.org/wiki/Ancient_Greece

https://en.wikipedia.org/wiki/Ancient_China

https://en.wikipedia.org/wiki/Nature_versus_nurture


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a rational decision-making process but rather rely on instinct, emotion or quickly processed information. Decision-making is not completely rational. The processes of decision-making seem to be based more on human limitations, preferences, assumptions and biases. An overview of cognitive biases and the functioning of System 1 and System 2 (Kahneman, 2011) gives managers access to tools to that create awareness of the prevalence of these biases, a major source of concern for effective decision-making. Awareness of System 1 and System 2 and process preparation can help fight overconfidence and groupthink.

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KEY TERMS AND DEFINITIONS



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Anchoring bias: describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments.

Associative machine: A machine for jumping to conclusions; the associate memory mechanism links an idea not merely to one other idea but to a whole set of ideas through the different links.

Bounded rationality: is the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Cartesian model of rationality: model which describes how human reasoning is and should be logical.

Cognitive bias: a systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Cognitive dissonance arises whenever our simplifications of the world are contradicting what we perceive in the real world.

Cognitive ease: when we are in a comfortable, well-known environment and in a good mood we experience what Kahneman calls cognitive ease. It is a state of mind where our System 2 is in its low-effort mode and relies (nearly blindly) on the suggestions of System 1.

Conjunction fallacy: is a formal fallacy that occurs when it is assumed that specific conditions are more probable than a single general one.

Framing bias cognitive bias, in which people react to a particular choice in different ways depending on how it is presented; e.g. as a loss or as a gain.

Groupthink: occurs when a group makes faulty decisions because group pressures lead to a deterioration of mental efficiency, reality testing, and moral judgment.

Halo effect: the tendency for an impression created in one area to influence opinion in another area.

Hindsight bias: the inclination, after an event has occurred, to see the event as having been predictable, despite there having been little or no objective basis for predicting it.

Homo Economicus: or economic man, is the concept in many economic theories portraying humans as consistently rational and narrowly self-interested agents who usually pursue their subjectively-defined ends optimally.

Neoclassical theory: the most widely used economic theory today; you cannot have a meaningful discussion about economics without using the words supply, demand, profit, and satisfaction. The theory was built on foundations laid by classical theorists Adam Smith (1723-1790) and David Ricardo (1772-1823).

Neuroeconomics is an interdisciplinary field that seeks to explain human decision making, the ability to process multiple alternatives and to follow a course of action.

Overconfidence bias: a bias in which a person's subjective confidence in his or her judgments is reliably greater than the objective accuracy of those judgments, especially when confidence is relatively high.

Positivism: a philosophical system recognizing only that which can be scientifically verified or which is capable of logical or mathematical proof, and therefore rejecting metaphysics and theism.

Post-bureaucratic organization: system in which decisions are based on dialogue and consensus rather than authority and command

Priming effect: Priming is an implicit memory effect in which exposure to one stimulus influences the response to another stimulus.



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Representativeness bias: a decision-making shortcut that employs the use of past experiences to guide the decision-making process.

Sunk cost bias: escalation of commitment refers to a pattern of behavior in which an individual or group will continue to rationalize their decisions, actions, and investments when faced with increasingly negative outcomes rather than alter their course.

System 1 and System 2: "System 1" is fast, instinctive and emotional; "System 2" is slower, more deliberative, and more logical.



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BIAS MINDFULNESS AND PERCEPTUAL SHIFT: KEY TO MANAGING A DIVERSE EMPLOYEE BASE

Dr. Eithne Knappitsch

[email protected]

Carinthia University of Applied Sciences, AT

Abstract:

This paper investigates the role of bias mindfulness and perceptual shift as key success factors in effectively managing diverse groups of employees. Relatively little research to date has investigated how the cognitive processes of the brain impact on diversity management practice. The purpose of this paper is to go some way towards filling this gap by investigating how understanding and steering the cognitive processes of the brain can greatly improve the ability to effectively manage a diverse employee base. Bias mindfulness and perceptual shift taking, both considered key elements of intercultural learning (Knappitsch, 2017), are identified as effective tools in this context. Learning to pay conscious attention to the cognitive impact of intercultural experiences at work can improve the ability to shift perceptual frames of reference, and ultimately to manage them more effectively: leading to a more effective, fair and harmonious working environment. In exploring the role of both bias mindfulness and perceptual shift in consciously steering the cognitive processes at work in the brain, the paper leans on recent advances in cognitive and cultural neuroscience and cultural psychology. It is argued that in order to make better management decisions in a diverse context, it is necessary to harness the strengths of the intercultural learning process, be mindful of bias and recognise the value of and potential in perceptual shift taking. This explorative paper endeavours as such to make a contribution to both the academic and practitioner diversity management fields by demonstrating that an understanding of the cognitive processes of the brain and learning to steer these processes can add significant value to decision-making and management practices in diverse environments.

Keywords: Bias awareness, bias mindfulness, decision-making, intercultural learning, perceptual shift

Introduction

Much has been written about diversity management, its potential benefits and the challenges it poses in a wider organizational context. Relatively little research to date, however, has investigated how the cognitive processes of the brain impact on diversity management practice. The purpose of this paper is to go some way towards filling this gap by investigating how understanding and steering the cognitive processes of the brain can greatly improve the ability to effectively manage a diverse employee base. Bias mindfulness and perceptual shift taking, both considered key elements of intercultural learning (Knappitsch, 2017), are identified as effective tools in this context. In exploring the role of both bias mindfulness and perceptual shift in consciously steering the cognitive processes at work in the brain, the paper leans on recent advances in cognitive and cultural neuroscience and cultural psychology. It is argued that in order to make better and fairer management decisions in a diverse context, it is necessary to harness the strengths of the intercultural learning process, be mindful of bias and recognise the value of and potential in perceptual shifts. This explorative paper endeavours as such to make a contribution to both the academic and practitioner diversity management fields by demonstrating that an understanding of the cognitive processes of the brain and learning to steer these processes can add significant value to decision-making and management practices in diverse environments.

Today’s work environment, characterised by the diversification of employee base, customer and market, enhances the need for management competencies that can effectively leverage the potential of this



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diversity. While diversity, inclusion and intercultural sensitivity are well-established fields in management, the reality of effectively managing diversity still represents a major challenge for many organizations. This remains the case despite much evidence to suggest that cognitive diversity, when managed effectively, can contribute to innovation, creativity and a positive working environment (cf. Noland et al. 2016, Diaz-Uda et al. 2013, Backes-Gellner & Veen 2013). Effective management practices are considered to play a key role in leveraging the inherent potential found in cognitive diversity.

Managing cognitive diversity is not an easy task, particularly considering the challenges posed by the unconscious processes of the brain. The unconscious or intuitive mind is a complex and intricate structure that both shapes and is shaped by our environment and experiences. An extensive body of research, notably from academic institutions such as Harvard, Yale and MIT, points to the fact that the decisions we make on a day-to-day basis are largely determined by the unconscious part of the brain. Srini Pillay (2011) suggests that this is true of up to 50% of our daily decisions. The unconscious brain harbours a set of natural preferences for or against particular things and/or people. These preferences represent a set of implicit associations, which impact our interactions and decisions without us even being aware of them. Often referred to as hidden biases or blind spots, unless corrected they can influence everyday work processes, including the interactions between employees and how employees are managed. Crucial in this context are recent findings from neuroscience indicating that it is possible to consciously engage with and steer certain processes in the brain and train the brain to recognise and correct biases. This paper argues that this can in part be achieved through bias mindfulness and perceptual shift taking, which in turn can lead to a more effective, fair and harmonious working environment.

The Diversity Context

The practice of bias mindfulness and perceptual shift taking, if practiced at all, is generally encouraged through coaching or training programs and is often incorporated into Diversity and Inclusion programs, or offered as a form of executive or management training. Effective management of cognitive difference, whether linked to different national backgrounds, education, social standing, gender, age or other culturally bounded group identities, can significantly contribute to the success of business. There is quite an extensive body of research pointing to the fact that flexibility, creativity, and the ability to innovate are all enhanced by diverse mindsets (Adler 2002, Niebuhr 2006, Graton et al. 2007, Hewlett SA 2013, Diaz-Uda et al. 2013). A recent study by the American Centre for Talent Innovation shows, for example, that heterogeneous teams are more productive than homogenous teams, but only if managed well (cited in Pramberger 2014, p.44). This points to the important role of management in the context of diversity. This particular study indicated that the main barriers to effective teamwork within mixed teams included deep-rooted biases against members perceived as ‘different’. This preference for people similar to ourselves, affinity bias, is one of the most well-recognised and accepted cognitive biases. Frost & Kalyman (2016) even go as far as to suggest that in an age of diversity we’re actually to likeness (see also Knappitsch, 2017).

A diverse employment base can contribute to more scrutinising critical evaluation and to contribute to more effective decision-making and problem-solving. Diversity, if badly managed, can however have negative consequences, including low levels of innovation. Differences that have not been appropriately leveraged or have simply not ben recognised can produce increased conflict, lack of cohesion and reduced participation in teams. In-groups and out-groups are likely to emerge; impacting the team’s potential to work effectively. Effective management is therefore crucial in leveraging any latent innovation within diverse teams. A 2008 global Diversity and Inclusion survey conducted among 546 C-level executives, senior vice presidents, heads of business units and other senior managers including HR professionals found that the companies with the most successful diversity programs were companies where the catalyst for the diversity programs was top management (Economist Intelligence Unit, 2009).



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There is a clear need for organisations with a diverse employee base to effectively manage cultural and cognitive differences. This should include efforts to mitigate the potentially negative impact of unconscious bias at both the individual and organisational level. Deeply rooted cultural biases can unintentionally impact on decision-making, leadership and interaction within a team. Nielsen and Kempinski (2016) recommend that rather than have stand alone Diversity and Inclusion policies, issues relating to diversity should be strategically integrated into other initiatives linked to creativity and innovation. Nielson, who founded the training concept Inclusive Nudges, postulates that in order to change deeply rooted cultural biases it is necessary to implement interventions that push the unconscious without referring to buzzwords associated with diversity. Nielson suggests that in many cases the implicit associations we have of Diversity and Inclusion are in fact negative.

Implications of the Unconscious Mind

In order to facilitate an understanding of some of the processes of the unconscious brain and how these can be altered or corrected, it is useful here to provide a brief overview of how the processes of the brain work. It should be noted that for the purposes of this explorative work, the complexity of the neurological circuitry of the brain is not discussed in detail. In simple terms the brain is often described as a type of perceptual lens that filters information and categorises this information based on experiences, environmental influences and preferences developed over time. The lens influences how each individual hears, observes and interprets the environment around them. The brain’s circuitry follows certain paths and uses these patterns to save on cognitive resources. It relies on information that has previously been saved and on processes that have already been learned. These are so deeply engrained in the unconscious that we are unaware of their influence; with the consequence that they are difficult to access and change. In using its cognitive resources efficiently, the brain automatically categorises things and people – into, for example, old, young, managers etc. It is worth noting that unconscious behaviour impacts work not only at the individual level, but also at the organisational level. Organisational culture, similar to an individual’s culture, is based on an enduring set of learned values, assumptions and ‘norms’ of behaviour, which can have a major influence on organisational decisions and behaviours.

Advances in both cultural neuroscience and cultural psychology have resulted in the relationship between culture and cognition gaining more and more attention over recent years. Cultural psychology investigates how cultural contexts influence our psychological tendencies and behaviours (Fiske et al., 1998); examining how culture impacts on cognition, emotion and behaviour (Chiao & Ambady, 2007 as cited in Kim & Sasaki, 2014). Cultural neuroscience is an interdisciplinary field of research which investigates the relationship between culture and the brain, examining how culture both constructs and is constructed “by the mind and its underlying brain pathways” (Kitayama & Park, 2010, p.112). It studies the neural processes underlying the psychological processes that impact human behaviour (Kim & Sasaki, 2014) and points to the fact that cultural factors or cultural patterns influence and shape the cognitive processes of the brain. Both cultural psychology and cultural neuroscience perspectives increasingly point to the importance of understanding cognitive processes. The business world is literally jumping on the neuroscience bandwagon; increasingly applying the findings of neuroscience to the organisational setting (Knappitsch, 2017). This is reflected in the popularity of managerial and executive coaching and training on bias awareness or bias sensitisation, on developing the “limbic leader” (see Brown et al., 2009), or in adopting a neuroscience approach to inclusion or leadership (see Casey & Murphy Robinson, 2014). While recent developments in cognitive neuroscience and their application to the field of management represent a paradigm shift. As this field of research is still relatively young, it is advisable to be cautious of overly enthusiastic and partly unsubstantiated claims.

A review of emerging literature on culture and cognitive processes indicates that cultural context can indeed influence cognitive processes. An understanding of how these processes are influenced by different cultural contexts can prove useful in understanding differences in behaviour and can lead to more effective management of cognitive difference. While the vast majority of studies still focus on ethnicity or nationality as the defining cultural dimension, more work is beginning to emerge on other dimensions of cultural difference, such as socio-cultural context, regional context, social background and religion (see for example Kim & Sasaki 2014). From the perspective of managing a diverse employee base, the question of context is extremely relevant.



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In making decisions, the brain is seen to rely on instinct or association. Daniel Kahneman in his book “Descartes’Irrtum” shows how emotions influence our decision-making processes, arguing that decisions are not rational processes, but the outcome of weighing up emotions, memories and behaviours. This is linked to how neuropathways are formed in the brain as a result of regular engagement in particular behaviours and attitudes, or the following of particular cultural scripts. The brain starts to favour these pathways and overriding them becomes incredibly difficult (see for example Doidge, 2007). Pillay (2011) refers to the brain’s “accountant”, the limbic regions of the brain, as those parts that work together to perceive the risks or rewards of an action; also operating at the unconscious level (see also Knappitsch, 2017). According to Mlodinow (2012) the brain’s processes aim more minimise risks than maximise rewards. This is interesting because the brain often perceives difference as a threat; so looking at somebody different to us can cause the brain to work in a particular way (Knappitsch, 2017). Researchers from the University of Toronto, Scarbough found evidence for this (Gutsell & Inzlicht, 2010). They investigated the sensitivity of the “mirror-neuron-system”, which is important for empathy as it allows us to mirror the actions and emotions of others, and revealed a basic difference in how people’s brains react to those from other ethnic backgrounds. Crucially, Gutsell & Inzlicht suggest that cognitive perspective taking exercises should be used to increase empathy. Key here is the fact that it is possible to recognise the workings of the brain and influence our behaviour to be more effective in interacting with difference; potentially sustaining these changes in our unconscious patterns of behaviour over time.

The neocortex or “higher brain” is at the centre of our conscious thought processes (Casey & Robinson Murphy, 2014, p.12). It is also the neocortex that enables us to act in an interculturally sensitive way and practice perceptual shift taking. Lui et al. (2011) suggest that the neocortex allows us to be open and look for common interests. Casey & Robinson Murphy (2014) point out that in order to achieve this the neocortex must be online, but also point to the fact that it is easily destabilised and can go offline without us being consciously aware that this is happening (p. 12). Zak (2012) shows that when the neocortex and the brain’s reward system are both online, the brain can produce the hormone oxytoxin. Research shows that oxytocin, a neurotransmitter that moderates empathetic accuracy and ethnocentricity, can increase in-group bias (Knappitsch, 2017, De Dreu et al. 2011; see Kim & Sasaki, 2014, p. 504). Oxytoxin can increase the capacity to build trust, which is relevant for any interaction with difference. Further evidence that culture can moderate both how emotion is regulated and how people feel in interpersonal and intergroup interactions is seen in the work of Kim and Sherman (2007). Their research indicates the effects of cultural differences on cognitive and emotional processes, as indicated by the fact that East Asians and European Americans, who have different culturally determined views on the value of verbal expression, are affected in different ways by verbal expression of thoughts as seen in their cortisol responses (as cited in Kim & Sasaki, 2014, p.503). European Americans, in contrast to the East Asian sample, were socialised in a cultural context where verbal expression is seen to benefit thinking. Hence, speaking thoughts in response to a challenging cognitive task led to decreased cortisol responses.

Another concept worth mentioning here is that of ‘priming’. Priming refers to how the unconscious brain absorbs and records everything we are exposed to (Casey & Robinson Murphy, 2014, p.5). The unconscious brain is thought to prime us to behave in ways which we are not conscious of. Yale Professor John Bargh, famously showed how simply reading a list of either positively or negatively charged words can lead to unconscious associated behaviours (Bargh et al, 1996). While criticized because later studies where unable to replicate the results, other scholars have since validated the effects of priming on behaviour. Psychologists Joshua Aronson and Claude Steele (1995) have, for example, shown the effects of priming in relation to “stereotype threat”, providing evidence to suggest that individuals who have internalized negative stereotypes may more readily display exclusionary behaviours. This opens up the question of whether individuals or organisations can actively prime for positive behaviour in intercultural encounters.

Neuroscience clearly provides us with new evidence of how our cognitive processes react when we encounter difference. While cognitive and cultural neuroscience it still considered a relatively young discipline, it is certainly worth noting that future developments may shed even more light on the brain processes affecting the interconnected areas of culture and cognition.



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Unconscious Bias in the Workplace

Unconscious bias in the workplace can impact the entire spectrum of management practices, including recruitment decisions, interview processes, access to mentoring, assignment of particular work tasks, availability of training opportunities, promotional choices, performance appraisals, as well as daily interactions in the workplace. A 2012 UK study on staff and manager relationships, Do managers manage team members that are similar to them better or more effectively than those who are different than them?, showed clear evidence of the impact of bias, in particular strong evidence of affinity bias (Robinson, 2013). The results also proved evidence of ‘stereotype threat’, in particular with Muslim men, parents and part-time workers, where individuals tried to play down characteristics that might confirm a negative stereotype about their cultural group. Another finding, for instance, pointed towards high levels of unconscious own group bias against one’s own group, particularly in gender, women with children and body-weight. The following table, which is by no means exhaustive, outlines a selection of studies validating the existence of a number of different types of biases relevant for the workplace context (translated and adapted from Knappitsch & Caliskan 2017).



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STUDY

Researchers Methods Results References

Migrant background/Names

Doris Weichselsbaumer (2012/2013)

2142 job applications were sent to Austrian companies. The applications all had the same level of education, the same amount of work experience and all were Austrian citizens. The only difference was that the candidates’ migrant background was evident from their name and photo.

Results showed that applicants with a migrant background were between 25% and 30% less likely to be invited to interview. Applicants with a Nigerian background had to apply twice as often as applicants with Austrian sounding names to get an interview.

Weichselbaumer D. (2016) Discrimination against migrants in Austria. An experimental study. German Economic Review, 2016.

Age Mathew Tinsley, The Policy Exchange, (2012)

A team of researchers applied for over 1,200 jobs as both an older and younger worker, using a randomisation process that ensured that the CVs received by potential employers were identical in every way apart from the date of birth.

Results showed that the 51 year old applicant received a response less than half as often as the 25 year old

Tinsley M. (2012) Too much to lose: Understanding and supporting Britain’s older workers. The Policy Exchange http://www.policyexchange.org.uk/images/publications/too%20much%20to%20lose.pdf

Name Kaas & Manger, Forschungsinsitut zur Zukunft der Arbeit (IZA) (2010)

Similar applications were sent in response to 528 advertisements for student internships in Germany, one with a Turkish-sounding and one with a German-sounding name.

Students with a German-sounding name looking for an internship were 14% more likely to get a callback than applications with a Turkish-sounding name. This increased to 24% in smaller firms.

Kaas L., Manger C. (2010) Ethnic discrimination in Germany’s Labour Market: A Field Experiment. IZA DP No. 4741 http://ftp.iza.org/dp4741.pdf

Accent Keysar & Lev-Ari (2010)

An experiment conducted among 35 native speakers of American English tested whether trivia statements sound less true when said with a foreign accent and whether it is also true for both mild and strong accents. Three types of accent were iused: native, mild and heavy.

It was found that people are less likely to believe trivia when it is delivered by someone who is a non-native speaker. When test subjects were alerted to the phenomenon, they were able to correct when the accent was mild but not when it was strong.

Lev-Ari S, Keysar B (2010) Why don't we believe non-native speakers? The influence of accent on credibility. Journal of Experimental Social Psychology 46 (2010), 1093-1096



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Female managers

Heilman & Okimoto (2007)

Three experimental studies were carried out to test the idea that women incur penalties for success in traditionally male areas because of a perceived deficit in nurturing and socially sensitive attributes implied by their success. Given descriptions of fictitious male and female managers who were successful in male-dominated jobs, undergraduate students evaluated the managers on several measures, including likeability, interpersonal hostility, competence, and desirability as a boss.

Female managers were rated as less likeable, more interpersonally hostile, less competent, and less desirable than male bosses.

Heilman M, Okimoto T (2007) Why are women penalized for success at male tasks?: The implied communality deficit. Journal of Applied Psychology 92 (1) 81-92

Race CVs King, Madera, Hebl, & Knight (2006)

155 white male participants read a fictitious resume, evaluated the applicant and judged his suitability for jobs. The résumés were given a race identity (Asian-American, Black, Hispanic or White) and were either high or low quality.

Results revealed that the Asian-American individuals were evaluated highly for high-status jobs, regardless of résumé quality. Black individuals were evaluated negatively even with high quality credentials. White and Hispanic applicants benefited from a high-quality resume. Black and Hispanic applicants were rated as more suitable for low-status jobs.

King E, Madera J, Mendoza S, Knight J (2006) What's in a name? A multiracial investigation of the role of occupational stereotypes in selection decisions. Journal of Applied Social Psychology 36 (5) 1145-1159 doi: 10.1111/j.0021-9029.2006.00035.x

Height Judge & Cable (2004)

A theoretical model of the relationship between physical height and career success was tested.

Findings show that physical height is significantly related to measures of social esteem, leader emergence and performance. Height is also shown to be positively related to income.

Judge T, Cable D (2004) The effect of physical height on workplace success and income: Preliminary test of a theoretical model. Journal of Applied Psychology, 89 (3) 428-441 doi: 10.1037/0021-9010.89.3.428

Weight Mikki Hebl (2003) Two experiments examined whether there is a tendency to derogate individuals seen in the

Results showed that a male job applicant was rated more negatively when seen with an overweight compared to

Hebl M, Mannix L (2003) The weight of obesity in evaluating



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presence of an obese person. In the first experiment 40 adults (20 men and 20 women) participated and in the second, a laboratory experiment, 196 undergraduates (79 men and 115 women) participated.

normal weight candidate and also that that applicants seated next to heavy individuals were viewed less positively regardless of the perceived depth of relationship.

others: A mere proximity effect. Personality and Social Psychology Bulletin, 29, 28-38.

The résumé study

Bertrand & Mullainathan (2003)

Researchers responded with fictitious résumés to help-wanted ads in Boston and Chicago newspapers. The researchers categorized the new résumés as high or low quality and assigned them an equal number of traditionally African-American- or white-sounding names.

Résumés with white-sounding names received 50 percent more callbacks than did reésumés with black-sounding names. Higher-quality résumés elicited more callbacks for white-sounding name than for African-American names.

Bertrand M and Mullainathan S (2004) Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination. The American Economic Review 94 (4) pp. 991-1012

Letters of recommendation

Trix & Psenka (2003)

312 letters of recommendation (from 1992 to 1995) that helped medical school faculty receive their clinical and research positions were analysed.

Letters for females differed systematically from those of men. The letters were shorter than those for males, were more likely to mention status terms, contain gender terms (such as "intelligent young lady"), and were more likely to include doubt raisers (e.g. criticisms, faint praise).

Trix F, Psenka C (2003) Exploring the color of glass: letters of recommendation for female and male medical faculty. Discourse and Society 14 (2) 191-220

Gender-biased Recruiting

Goldin & Rouse (2000)

To test for gender-biased hiring in symphony orchestras, researchers compared two audition procedures: blind auditions, adopted in 1970 involving use of screens to conceal candidates and auditions not using screens.

Blind auditions account for 30% of the increase in females among new hires and a 25% increase in the percentage of orchestra musicians who are female from 1970 and 1996.

Goldin C, Rouse C (2002) Orchestrating impartiality: The impact of "Blind" auditions on female musicians. The American Economic Review, 90 (4) pp. 715-741



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Peer review of post-doctoral fellowships

Wennerås & Wold (1997)

The researchers reviewed the peer review system for 114 applications to the Swedish Medical Research Council for postdoctoral fellowships.

46% of applicants were female, but only 20% of women received the awards. The applications were evaluated based on: scientific competence, proposed methodology and the relevance of the research. Women received lower than average scores on all three criteria, particularly low scores for scientific competence. For peer-reviewers to equally rate men and women on scientific competency, women needed an equivalent of three more articles in Nature or Science, or 20 more articles in a specialist journal, such as Neuroscience or Radiology.

The Economist (May 22, 1997) Women really do have to be at least twice as good as men to succeed. http://www.economist.com/node/369961

Male and female CVs

Steinpreis, Anders, & Ritzke (1999)

Participants included 238 male and female academic psychologists. They were sent one of four versions of a real-life CV (female applicant, male applicant, female tenure applicant, male tenure applicant) and were asked whether they would hire the job applicant (for those who received the early-career CV) or whether they would award the candidate tenure (for those who received the later-career CV).

Both male and female participants were more likely to hire the male than the female with an identical record and were more likely to report that the male applicant had adequate experience in research, teaching, and service. There was no evidence that potential female candidates were evaluated more negatively than potential male tenure candidates, but participants were four times more likely to write comments of concern in the margins of their questionnaires for female tenure candidates than for male tenure candidates.

Steinpreis R, Anders K, Ritzke D (1999) The impact of gender on the review of the curricula vitae of job applicants and tenure candidate: A national empirical study. Sex Roles 41 (7) 509-528 doi:10.1023/A:1018839203698

Verbal skills Biernat & Manis (1994)

143 white undergraduates (67 men and 76 women) viewed 40 photographs of black and white men and women each paired with definitions of two words. The participants rated the verbal ability of the photographed individuals as if those individuals had provided the definitions.

Black individuals were rated as having lower verbal ability than were white individuals.

Biernat M, Manis M (1994) Shifting standards and stereotype-based judgements. Journal of Personality and Social Psychology, 66 (1) 5-20



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Clearly there are numerous studies pointing towards the discriminatory effects of implicit or unconscious bias, it should however be mentioned here that empirical testing in this field is partly criticised (see Gregory-Smith et al., 2014). A study on the Ironic Effects of Equal Opportunity Guidelines (Madera, 2013) found that even when interviewers were given clear instructions to ignore race this actually negatively influenced their attitudes and behaviour after the interview (p.129). Madera suggests that implementation of a better structure around the interview process could potentially alleviate this problem. There is also some evidence that the degree of unconscious bias can also be relevant, for example in cases where unconscious bias is evident but low, it is not thought to impact on actual behaviour. One such study suggests for example that this may even be true for up to two-thirds of people (Robinson, 2013).

Learning to be aware of our brain states and override them can be considered as key to managing our unconscious biases. The ability to consciously shift brain states means that we can gain more control of our communication by consciously establishing new neuropathways that lead to more open and positive behaviours and communication.

Bias Mindfulness and Perceptual shift

It has been argued that awareness of the complex cognitive processes at work in our brains can greatly improve our communication effectiveness and interaction with people cognitively different to ourselves. Shaules (2015) suggests that by learning about the largely hidden structures and processes of the intuitive mind, we can better understand intercultural experiences (p. 489). Experiencing cultural or cognitive difference acts as a catalyst for shifts in perception. By being consciously aware of and consciously learning from the cognitive impact of experiencing difference, we can learn to both recognize perceptual shifts and manage them more effectively. Ryskin et al. (2015) claim “the ability to take a different perspective is central to a tremendous variety of higher level cognitive skills” and suggest that in order “to communicate effectively, we must adopt the perspective of another person both while speaking and listening” (p. 898). Increased cognitive awareness can lead to improved cognitive flexibility, if we practice being mindful of bias and consciously shifting our perceptual frames of reference.

Research on bicultural or multicultural individuals fluent in the cultural scripts of two or more cultures points towards an intuitive cognitive ability to switch or shift between these cultural frames of reference in response to context factors (Knappitsch, 2017). Research by Luna et al. (2008) comparing bilingual Spanish-English speakers (where Spanish was learned in a classroom) and bicultural Spanish-English speakers is of particular interest in this context (Shaules, 2015). The study required participants to interpret a photo of a woman in an ambivalent setting in one language first and then the other language second at an interval of a six-month period. The findings showed that biculturals essentially have access to two sets of cultural intuitions and that either one is activated depending on the specific context experienced (p.498), in this case language. Here language affected the interpretations of those who grew up biculturally, but not those who were bilingual but not bicultural and reflected the anticipated differences in the perception of women in European American cultures (seen as needing protection) and in Latin American cultures (associated with emotional strength) (pp.493-494.) Fitzsimmons et al. (2011) suggest that businesses should focus more on leveraging the untapped resources of biculturals and multiculturals to their advantage (see also Knappitsch, 2017).

Milton J. Bennett’s Developmental Model of Intercultural Sensitivity, representing six different stages of cognitive engagement with cultural difference – denial, defence, minimization, acceptance, adaption and integration – seems to suggest that the ability to shift cultural frames of reference can be learned (M. J. Bennett, 2004). This points to the fact that cognitive flexibility can in some instances be developed through on-going experience in a different culture. Here again we can draw a link, albeit quite a lucid one, to cognitive neuroscience. Considering the research presented earlier in this chapter on the link between oxytocin and tendencies such as trust, cooperation and positive communication (Kim & Sasaki, 2014, p.504), it was suggested



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that oxytocin may increase sensitivity to social cues and ethnocentrism. Bearing in mind that the experimental administration of tranasal oxytocin spray can increase the degree to which participants favour in-group others (Kim & Sasaki, 2014, p.504) combined with the successful use of primers to unconsciously prime thoughts in a positive or negative way; it may well be possible in future to actually empirically test for different stages of intercultural learning resulting in an improved ability to shift perspective along the lines of those suggested in the stages of the Developmental Model for Intercultural Sensitivity. This goes beyond Shaules’ call for intercultural experts to be tested using the methodology of cognitive neuroscience in order to shed light on the cognitive architecture of being, as he calls, “effective bridge people” (p. 505).

Conclusion

With respect to the management of a diverse employee base, evidence clearly points to the importance of how a company, and particularly how top management, approach the strategic task of managing diversity. As Syed and Özbilgin argue, effective diversity management has a better chance of being realised in contexts where there is multilevel structural and institutional support for the inclusion of all individuals (2009, p. 2436). Organisations should try to work against the potentially damaging influence of unconscious bias, adopting strategies to encourage bias mindful management and decision-making. Clearly it is not possible to fully eliminate bias, but it there is ample evidence, as presented in this paper, to suggest that bias can to some extent be corrected and reduced. It is also important to remember that even the most conscientious manager unwittingly allows unconscious feelings to impact on what they believe to be objective decisions and judgements. Bias awareness training focusing on mitigating the specific biases evident within organisations can to some extent also contribute to reducing unconscious bias. Reflecting consciously on the prevailing thinking and behavioural patterns within an organisation can help foster an environment of openness, creativity and innovation. This is an on-going process that needs constant revision. One further means of addressing bias is to consider introducing a strategy similar to Nielsen’s Inclusive Nudges.

Cultural neuroscience, while still in its early stages, does provide a number of clues as to how we can learn cognitive flexibility and to effectively shift perspective. It is likely that as neuroscience progresses it will provide even more concrete evidence of the processes at work within the brain. It is crucial that we know of the limits of our own cultural cognition. Learning about our own mind helps to gain insight into the processes and circuitry operating inside the self, while reflecting on our encounters with cognitive diversity also allows us to critically look at any given situation from multiple perspectives. Both bias mindfulness and perceptual shift should be considered as effective tools in both intercultural learning and successfully managing cognitive diversity within the workplace.



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READINESS FOR WORKPLACE DIVERSITY: DEVELOPMENT OF A GERMAN SCALE

Heere, Carolin

Engel, Anna Maria

Osnabrueck University, Germany

[email protected]

[email protected]

Abstract

Given the growing interest in diversity management in German companies, there is a need for a German scale assessing individuals’ readiness for workplace diversity. Based on Ajzen’s (1991) theory of planned behavior, a German scale was developed and validated. The scale was then used for the prediction of intention to engage for diversity. In doing so, attitude was identified as predictor in regression analysis. Additionally, individuals were categorized into groups of readiness for diversity based on a cluster analysis. Taken together, the scale and the classification constitute a firm basis for further diversity research and practice.

Purpose

Against the background of current global and social developments, workplaces have become more diverse over the past years (Merx & Vassilopoulou, 2007; Köppel et al, 2007). At the same time, the understanding of diversity as a necessary, but also valuable aspect of work grows (Cox & Blake, 1991; Aretz & Hansen, 2003; Stuber, 2007). Thus, managing diversity is an increasingly important task for managers. Successful diversity management, however, is greatly influenced by the employees’ acceptance and support for diversity (Aretz & Hansen, 2003; Böhm, 2007). Consequently, it is important to determine employees’ overall readiness for workplace diversity as well as sources of skepticism and resistance in the workforce (Krings et al, 2009; Turnbull et al, 2009).

While instruments measuring readiness for diversity are common in countries with certain historical and cultural backgrounds, a specific German scale is still lacking. Based on Ajzens (1991) well-established theory of planned behavior (TPB), we developed an instrument assessing individual readiness for workplace diversity. According to the TPB, an individual’s intention to perform a specific behavior is determined by his or her attitude towards the behavior, by his or her social environment’s general attitude towards it (i.e. social pressure) and by his or her perceived behavioral control regarding the execution of the behavior. Accordingly, the newly constructed diversity scale covers employees’ and their managers’ attitudes towards diversity at the workplace as well as their perceived difficulties when working in a diverse team. In addition, attitude, subjective norms and perceived behavioral control were examined as antecedents of the intention to engage for diversity.

Methodology

For each of these aspects as well as for intention, five items were created based on Ajzens (2002) guidelines to develop a TPB-instrument using a semantic differential. The diversity scale was online-surveyed among a convenience sample of 180 employed participants. Participants also completed several already established diversity scales to validate the newly developed measure. Exploratory and confirmatory factor analyses were conducted in SPSS and AMOS.




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The postulated three-factor structure revealed a good fit to the data (CFI = .908; IFI = .911; RMSEA = .076). All four sub-scales (including intention) showed an acceptable to excellent reliability (α = .746 to .925). Construct validity was assessed based on the correlations between the diversity sub-scales and the control scales. While convergent validity could be proven, problems in the discriminant validity emerged since the employees’ intention and their perceived difficulty correlated quite highly (r = .376, p < .01) and with the respective control scales (r = .36 to .54, each p < .01). Finally, in terms of predictive validity the multiple correlation of R = .53 (R² = .28) was statistically significant, F (3,172) = 22.79, p < .001, which means that the three sub-scales together can indeed predict diversity-related intentions. Contrary to theoretical expectations, however, only one of the three aspects, namely the employees’ attitudes, was relevant for this prediction regarding the handling of diversity (β = .50, p < .001).

Using two of the newly developed sub-scales - individuals’ attitude and perceived behavioral control, this study further aimed at categorizing individuals into different types of readiness for workplace diversity based on a confirmatory cluster-analysis (Hair et al, 2006). The resulting clusters were then compared regarding their intention to engage for diversity. A Kruskal-Wallis-test of the aspired four-cluster solution indicated that at least two of the clusters differed considering the central tendency of intention, χ2 (3, N = 176) = 27.15, p = .000. Individuals with high values for attitude and perceived behavioral control have the highest intention and were thus labelled “Diversity Stars”. Individuals with low values for attitude and perceived behavioral control have the lowest intention and were therefore labelled “Diversity Beginners”. Individuals with high values for attitude but low values for perceived behavioral control were labelled “Diversity Optimists”, and individuals with reverse values were labelled as “Diversity Pessimists”.

Research Limitations

Of course, several limitations of this study have to be noted. First, data are completely based on employees’ self-report, measured at a single time, and therefore prone to mono method bias (Podsakoff et al, 2012). Furthermore, the sub-scales did not show a normal distribution. However, according to Thurstone (1928) this can be expected when measuring attitudes. Second, the perceived difficulty subscale does not distinguish employees who recognize that implementing diversity at the workplace is a challenge that they can rise to due to their competences from employees who do not see diversity as a challenge at all. Third, concerning the categorization of individuals, it has to be noticed that the value for intention was higher than the expectancy value of 4 in all clusters. This implies that readiness for workplace diversity is not only relevant for managers (cf. Franken, 2015), but that it is already common courtesy in organizations (Bosten, 2014). Finally, it may be criticized that this categorization represents a simplification due to the small sample size, and therefore needs to be replicated within a larger sample.

Practical Implications

Despite the limitations, this study shows that an individual’s attitude toward diversity at the workplace greatly affects the intention to approve and support working in a diverse team. Moreover, it presents different diversity readiness clusters, which may help to foster a positive attitude towards diversity through, for example, appropriate and tailor-made diversity trainings. For example, “Diversity Pessimists” should be provided with awareness trainings while “Diversity Optimists” should receive skill trainings. “Diversity Beginners” need both awareness and skills. Finally, even “Diversity Stars” can be provided with trainings (cf. life-long learning approaches, e.g. Hof, 2009).

Originality

In sum, the study seeks to contribute to the growing body of research on diversity management by presenting a useful method to assess workplace diversity readiness. Moreover, it provides a simplified categorization into types of readiness for workplace diversity and the deduction



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of recommendations for measures of diversity management. It is hoped that these types, together with the newly developed measure, can further stimulate research and practice on diversity management.

Keywords

diversity management, readiness, theory of planned behavior

References

Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50, 179–211.

Ajzen, I. (2002). Constructing a TPB questionnaire: Conceptual and methodological considerations. Retrieved from Institut für interdisziplinäre Konflikt- und Gewaltforschung website: http://www.unibielefeld.de/ikg/zick/ajzen%20construction%20a%20tpb%20 questionnaire .pdf

Aretz, H.-J., Hansen, K. (2003). Erfolgreiches Management von Diversity. Die multikulturelle Organisation als Strategie zur Verbesserung einer nachhaltigen Wettbewerbsfähigkeit. Zeitschrift für Personalforschung, 17(1), 9–36.

Böhm, J. (2007). Wie gelingt Diversity-Management in Unternehmen? In I. Koall, V. Bruchhagen & F. Höher (Eds.), Diversity Outlooks. Managing Diversity zwischen Ethik, Profit und Antidiskriminierung (pp. 29-48). Münster: Lit.

Bosten, A. (2014). Wertschöpfung durch Wertschätzung. In K. Hansen (Ed.), CSR und Diversity Management. Erfolgreiche Vielfalt in Organisationen (pp. 217–228). Berlin, Heidelberg: Springer.

Cox, T. H., & Blake, S. (1991). Managing Cultural Diversity: Implications for Organizational Competitiveness. The Executive, 5(3), 45–56.

Franken, S. (2015). Personal: Diversity Management. Studienwissen kompakt. Wiesbaden: Springer.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis. Upper Saddle River, NJ: Pearson Prentice Hall.

Hof, C. (2009). Lebenslanges Lernen: Eine Einführung. Stuttgart: W. Kohlhammer Verlag.

Köppel, P., Yan, J. & Lüdicke, J. (2007). Cultural Diversity Management in Deutschland hinkt hinterher. Gütersloh: Bertelsmann Stiftung.

Krings, F., Bollmann, G. & Palazzo, B. (2009). Diversity „spielerisch” trainieren: Auswirkungen auf Einstellungen und Sensibilität gegenüber Diversity bei Führungskräften. Zeitschrift für Arbeits- und Organisationspsychologie, 53(1), 33- 38.

Merx, A. & Vassilopoulou, J. (2007). Das arbeitsrechtliche AGG und DiversityPerspektive. In I. Koall, V. Bruchhagen & F. Höher (Eds.), Diversity Outlooks. Managing Diversity zwischen Ethik, Profit und Antidiskriminierung (pp. 354-385). Münster: Lit.

Miville, M. L., Gelso, C. J., Pannu, R., Liu, W., Touradji, P., Holloway, P. & Fuertes, J. (1999). Appreciating similarities and valuing differences: The Miville-Guzman Universality-Diversity Scale. Journal of Counseling Psychology, 46(3), 291-307.



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Podsakoff, P. M., MacKenzie, S. B. & Podsakoff, N. P. (2012). Sources of Method Bias in Social Science Research and Recommendations on How to Control It. Annual Review of Psychology, 63, 539-569.

Schulz, A. (2009). Strategisches Diversitätsmanagement: Unternehmensführung im Zeitalter der kulturellen Vielfalt. Wiesbaden: Gabler Verlag.

Stuber, M. (2007). Die wirtschaftliche Gestaltung von Diversity. In I. Koall, V. Bruchhagen & F. Höher (Eds.), Diversity Outlooks. Managing Diversity zwischen Ethik, Profit und Antidiskriminierung (S. 428-439). Münster: Lit.

Thurstone, L. L. (1928). Attitudes Can Be Measured. American Journal of Sociology, 33(4), 529-554.

Turnbull, H., Greenwood, R., Tworoger, L. & Golden, C. (2010). The Inclusion Skills Measurement Profile: Validating an Assessment for Identification of Skill Deficiencies in Diversity and Inclusion. Academy of Strategic Management Journal, 9(1), 1-14.



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TWO SIDES TO EVERY STORY: A QUALITATIVE STUDY ON WEB-BLOGGING ABOUT INTERCULTURAL EXPERIENCES

Dr. Barbara Piskur

Hoefnagels, Ankie

Zuyd University, NL

[email protected]

[email protected]

Abstract

Purpose: Blogging is an increasingly popular method of sharing and reflecting on experiences of students in higher education on the Web environment. The aim of this study is to show how students describe their perspectives on inter-cultural competences in terms of knowledge, skills and attitudes during their educational stay abroad using Web-based blogging.

Method: A qualitative study of 30 blogs using a directed content analysis.

Results: Students use blogs to write and reflect about a large variety of cultural issues related to their study abroad. Major emerging themes included “Blogging: a way to portray students’ knowledge development”, “Blogging: a mirror of students’ attitude”, and “Blogging: a display of students’ skills”.

Conclusions: Our findings suggest that blogs are a potentially useful tool and that the educational benefit of blogging might even be increased, provided that trained educators would facilitate meaningful and targeted discussions with students about their stay abroad.



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Background information

In a world where a diversity of cultures live, study, and work together, students need to learn and apply 21st century skills; intercultural competences are a crucial element of these (Deardorff, 2006). Being part of our increasingly globalized workplace, these are skills all graduate students need to be effective employees and effective leaders in their field (Carr, 2012); as those attitudes, knowledge and skills ideally lead to an internal outcome that consists of flexibility, adaptability, an ethnorelative perspective and empathy (Sia, 2015). The importance of intercultural competence for each individual person has been recognized also at goverment level; for example the European Union policy emphasizes that all individuals need to develop those key competences for personal fulfillment and development, active citizenship, social inclusion and employment (Recommendation of the European Parliament and of the Council, 2006). The research suggests that graduate students who have had an opportunity to reflect consciously on their intercultural skills, receive feedback on those skills, and develop a foundation of intercultural knowledge will be better prepared to take on leadership roles in diverse groups (Sia, 2015). Students of the Hotel Mangement School at Zuyd university of Applied Sciences get an opportunity to spend 5 month internship abroad during their bachelor program. Different tools are used to collect their experiences and views; Web-based blogging is one of the reflective tools offered. To date, no analysis of the online blogs has taken place and little is known about how students describe their perspectives on inter-cultural competences in terms of knowledge, skills and attitudes during their educational stay abroad using Web-based blogging.

Method

A qualitative approach was required to gather information on the experiences and perspectives of students while using Web-based blogging during their educational stay abroad. The purposely developed website environment ‘Curious People’ provides an opportunity for students (aged 18-21) that follow their internship abroad to contribute blogs. It has been designed in such a way that students are free to write about their experiences during their stay, but the site also includes some structure and prompts to facilitate the writing of blogs. Qualitative analytical procedures using directed content analysis (Hsieh & Shannon, 2005) were employed; the framework for the analysis in this study has been based on prior work of Deardorff (2009) and Hoefnagels (2014). There is not a clear consensus on the number of blogs required for the analysis. However, in the qualitative studies the number of blogs varies between 12 and 65. For this study, 30 blogs of students have been analyzed.

Results

Analysis of the blogs revealed three main themes: “Blogging: a way to portray students’ knowledge development”, “Blogging: a mirror of students’ attitude”, and “Blogging: a display of students’ skills”.

Main theme 1: Blogging: a way to portray students’ knowledge development

This theme is about the knowledge, as well the importance of understanding the world from others’ perspectives. In regard to knowledge necessary for intercultural competence, the following aspects are important: cultural self-awareness, meaning the ways in which one’s culture has influenced one’s identity and worldview, deep understanding and cultural knowledge including contexts, role and impact of culture as well others’ world views, culture-specific information , and sociolinguistic awareness.

In comparison with the original framework, the following previously identified sub-themes, “culture specific information”, “deep understanding and cultural knowledge” and “cultural general



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information – explicit and tacit knowledge ” were reflected by the data. The sub-themes “culture specific information”, which builds on the foundation with deeper interpretations of cultural patterns and “role and impact of culture” have not been described.

To illustrate one of the main themes, cultural general information, the following example “Procedural knowledge about culture” describes students’ experiences about different cultural theories and implies how students analyze their experiences based on the theoretical frame, such as Hofstede. The model of Hofstede has been applied by bloggers to look into cultural dimensions, like individualism versus collectivism or power distance. One blogger wrote that the Hofstede's theoretical model helps you to understand the role of power distance in different cultural contexts better:

“I compare this with how I see a gouvernant in The Netherlands talk with a general manager. In The Netherlands there also is a difference in hierarchy but you can’t see this very clearly, I think. I also see that the gouvernant has very much power over all the camareras. I see this in the way she act: she talks very loud and clear to them, she gives instructions, ask for things and more. The camareras do everything the gouvernants ask them to do but behind their backs they talk much about the gouvernants. So, if you look to Hofstede you’ll see that the power distance in Spain is really stronger than in the Netherlands”. (1301535)

Main theme 2: Blogging: a mirror of students’ attitude

All four elements of the attitudes, as described in the framework have been identifed in the web blogs: respect, openness, curiosity, and discovery towards cultural diversity. Also new sub-themes emerged: being judgmental - not being open and lack of empathy.

Often, the blogger described his/her experience in such a way that different elements of attitudes could be identifed, like this example shows:

“I felt very sorry for her and she asked me if I would join her to the funeral. I was really suppressed because in Holland we are used to have a funeral with family and friends…Inside the temple there were many people. Family, friends, neighbors and colleagues and her family in from of the temple…for me it was an amazing special experience”. (1209671)

Being judgmental - not being open – is a new subtheme under the heading of attitudes. It describes the way some bloggers show a lack of openness to another culture and portray their judgments based on their own culture and understanding of it. As the following quote shows:

“The South African business advocates for Western standards, but I experienced that precision and punctuality does not come naturally by South African people”. (1302264)

Another example of a new sub-theme is lack of empathy. Bloggers demonstrated through their descriptions and examples a lack of empathy towards people from a different culture. As the following quote shows:

“One security guy got a 10 Rand tip from a guest, and he was showing this to everyone after that. This is less than 1 EUR, so I thought how he could be happy with that”. (1230212)

Main theme 3: Blogging: a display of students’ skills

The skills that emerged from this study addressed the gaining and processing of knowledge: observation, listening, evaluating, analyzing, interpreting, and relating. This theme shows students’



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skills for listening, observing, while analyzing, relating and interpreting in different cultural contexts were not identified.

Conclusion

Blogs are generally a rich source of information. They might be even more effective and useful when embedded in a portfolio to support students’ learning by sharing of course-related documents or participating in targeted and subject-specific discussions (Pinilla et al., 2013). The results show that dealing with people from other cultures can contribute to developing intercultural competence and personal development. But this is not self-evident. Sometimes, lack of sensitivity and empathy are displayed by students. Therefore, effective dialogue between educators and students about the desirability of developing intercultural competence is warranted, but one should realise that this requires a lot of effort, time and guidance from educators.



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Carr, G. (2012, October 26). Graduate students need preparation for life outside the university. The Globe and Mail. Retrieved from http://www.theglobeandmail. com/news/national/graduate-students-need-preparation-for-life-outside-university/ article4699319/

EngKee Sia (2015): Intercultural competence teaching in transnational higher education: a case review of an international branch campus in Uzbekistan, Journal of Education for Teaching, DOI: 10.1080/02607476.2015.1011899

Recommendation of the European parliament and of the council of 18 December 2006 on key competences for lifelong learning; (2006/962/EC)

Deardorff, D. (2006). Identification and Assessment of Intercultural Competence as a Student Outcome ofInternationalisation. Journal of Studies in International Education, 10(3), 241-266.

Hoefnagels, A. (2014). A Global Mind, a Joy Forever: the Role of Intercultural Competences in Intercultural Service Encounters in the Hotel Sector. (PhD Dissertation), Radboud University Nijmegen.

Hsieh, H.-F., & Shannon, S. E. (2005). Three Approaches to Qualitative Content Analysis. Qualitative Health Research, 15(9), 1277-1288. doi:10.1177/1049732305276687

Pinilla, S., Weckbach, L. T., Alig, S. K., Bauer, H., Noerenberg, D., Singer, K., & Tiedt, S. (2013). Blogging Medical Students: A Qualitative Analysis. GMS Zeitschrift Für Medizinische Ausbildung, 30(1). doi:http://doi.org/10.3205/zma000852


http://doi.org/10.3205/zma000852


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THE ROLE OF CULTURAL FRAME SWITCHING AND CULTURAL CONFLICT IN DEVELOPING INTERCULTURAL COMPETENCE IN CONTEXT OF CROSS-BORDER INTERACTIONS

Dr. Katerina Pouliasi

in2cultures, NL

[email protected]

Abstract:

Experimental studies enhance theoretical and empirical insights into the pre-conditions of intercultural competence defined as the ability to shift responses in a way consistent to the salient culture.

We examined the joint effects of cultural priming and perceived cultural conflict among IT specialists who live in their own country (Greece and the Netherlands) but experience daily interactions with counterparts in a cross-border branch of the same multinational company, on various cultural domains such as self-evaluations, work-related values, associations, ingroup identifications and We-related values. The research demonstrates that in this population the Low-Conflict individuals are able to develop intercultural competence but the High-Conflict ones exhibit inconsistent behavior to cultural priming.

Overall results reveal non-homogenous dynamics within each cultural group albeit with less variance among the typical individualist Dutch.

We discuss the implications for increasing effective communication in multinational corporations and improving training tools.

Purpose

Our insights into intercultural competence defined as the ability of responding consistently to switching cultural settings were mainly derived from research on biculturalism. Subjects were those individuals who physically experience two or more cultures, namely their primary and host country culture, or among managers who frequently travel abroad. However, in present-day interdependent economies, many intercultural interactions occur at a distance and often “virtually”.

The purpose of present study is therefore, to review two important predictors of intercultural competence, namely Switching Cultural Frameworks and the perceived Conflict between the cultures involved, employing a novel contemporary sample not composed of traditional biculturals.

Our study involves IT experts working for local branches of a multinational corporation in a traditionally collectivist -- but individualizing -- Southern European country (Greece) and a typical individualist Northern European one (the Netherlands). We examine bicultural dexterity with a reliable experimental method and established measures.


Theory



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In modeling our research, we subscribe to the premise that culture is structured as ‘a loose network of domain-specific knowledge, such as categories and implicit theories’ and that individuals are able to internalize more than one cultural system, even if these systems direct conflicting aspects on certain domains (Hong et al., 2000). To activate cultural knowledge we apply principles of Knowledge Accessibility (Higgins 1986; Morris & Fu 2001).

Participants

180 IT specialists working for their local branch (Greece and the Netherlands) of a multinational telecommunications corporation, almost all experience daily across-border interactions (virtual conferences, mail or phone) with their counterparts in the other country.

Procedure and cultural priming

All subjects completed an on-line questionnaire with closed and open questions. To experimentally test whether they are able to effectively switch between their ‘own’ and the ‘other’ cultural setting, they were randomly assigned either to their ‘own’ or to the ‘other’ cultural condition activated by the respective cultural symbols (see figure 1).

This experimental procedure, the measures used (set B) and Conflict as a within individual factor, comprise an established method in investigating bicultural competence (Hong et al. 2000; Verkuyten & Poulasi 2002; 2006; Friedman, et al. 2012)

Measures

Research on biculturalism inevitably involves two different cultures. For testing intercultural competence, we have employed domains that robustly have shown marked differences between the involved cultures. To this end we used:

A set of measures (set A) aimed at testing whether after three years of interactions convergence has occurred on work-related values. These are derived from the Individualism-Collectivism and Power Distance cultural dimensions (Hofstede, 1980), free associations on culture-bound concepts (motivation, initiative) and case-studies capturing attitude towards hierarchy.

After answering Set A, participants entered the controlled experimental phase involving the measures of Set B: on personal and social aspects of the Self with Self-identifications (adjective traits) measures, Ethnic identification, values endorsement (family integrity, honor-oriented behavior, friendship).

Finally, participants evaluated ‘perceive conflict’ between the two cultures (adapted from Benet-Martinez et al., 2002), as well as organisational and demographic data.


Findings from Set A show trends in work-related values beyond those typically found among individualist or collectivist cultures. Fig. 2 shows that some aspects differences at cultural group level persist (Item2 and item5), but not for other (item1). Moreover, Greek and Dutch operational experts show similar expectations of their superiors, but their superiors did reproduce the expected hierarchical-egalitarian difference. The Power Distance dimension shows no difference.

Importantly, cultural group interacts with Conflict for other aspects: The Low-Conflict Greeks ‘appreciate variety at work’ as much as the Dutch (item3), but simultaneously they are strongly attached to their ingroup (item6).

The qualitative analysis of the associations task using key-words, also revealed similar variations in the sample and complements what cultural dimensions cannot capture.



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Individual differences are further clarified with the 3-way interaction (2Culture x 2Priming x 2Conflict) found. The Low-Conflict Greek participants demonstrated bicultural competence in chanching self-evaluations as ‘Individualist’ in a culture-consistent way (see Fig.2). Dutch also show a small change in the right direction, but not significant. In contrast, the High-Conflict participants are either non-responsive to priming or even exhibit prime-reversed behavior (Greeks).

No interaction was found with the We-oriented values in Set B which, as expected, were significantly stronger endorsed among the Greeks. But both groups were homogeneous and resistant to cultural frame changes. Neither did the Conflict factor moderate these results. We-oriented values included as strongly grounded ones to show that we should expect less intercultural flexibility with them (Fig. 3).

Concluding, populations are less homogenous than assumed. The factors of Switching Cultural Frame and Conflict show their joint effects on people experiencing the ‘other’ culture in an at-a-distance cross-border mode. These joint effects being in agreement with previous findings, shown that are also at play in our contemporary sample


• The representation of the various hierarchical levels in each company was not optimally equivalent.

• The relatively small size of our sample, although we are confident of the significant priming and moderating effects found.


Multinational companies may consider the use of cultural stimuli (music, food, room decoration) in their meetings to trigger positive, agreeable feelings and attitude depending on the targeted culture.

Companies may not just assume that exposure to a foreign culture make candidates for assignments in that culture effective. Thus, instead of just looking at time spent abroad, companies should rather assess the kind of feelings they about their experience of a culture (e.g. use the Conflict construct in assessments). Low-Conflict employees are the best ambassadors for cross-border cooperation or assignments abroad.

Finally, the use of cultural stimuli are both easy to implement and reliable in assessments of intercultural effective communication. By using these together with the perceived Conflict as individual factor, consultants can provide accurate advice and greatly improve the effectiveness of training programs.


- Testing bicultural dexterity both sides with two different cultures: highly qualified employees with either a typical Individualist (Dutch) background or an assumed Collectivist background, integrated with adoption of equalitarian organizational principles and individualist-inspired self-trends (Greeks).

- The focus on contemporary cross-border modes of intercultural interactions

- The variety in domains



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- The use of standard cross-cultural dimensions in combination with implicit measures to better capture cultural effects.

- Moving cross-cultural studies beyond the usual Asian-American comparisons.

Keywords

Perceived conflict, priming, intercultural competence, cross-border interactions, multinational companies.

Bibliography

Benet-Martínez, V., Leu, J., Lee, F., & Morris, M. W. (2002). Negotiating Biculturalism: Cultural Frame Switching in Biculturals with Oppositional Versus Compatible Cultural Identities. Journal of Cross-Cultural Psychology, 33(5), 492–516.

Friedman, R., Liu, W., Chi, S. C. S., Hong, Y. Y., & Sung, L. K. (2012). Cross-cultural management and bicultural identity integration: When does experience abroad lead to appropriate cultural switching?. International Journal of Intercultural Relations, 36(1), 130-139.

Higgins, E. T. (1996). Knowledge activation: Accessibility, applicability and salience. In E. T. Higgins & A. Kruglanski (Eds.), Social psychology: Handbook of basic principles (pp. 133-168). New York: Guilford.

Hong, Y. Y., Morris, M. W., Chiu, C. Y., & Benet-Martínez, V. (2000). Multicultural minds. A dynamic constructivist approach to culture and cognition. The American psychologist, 55(7), 709–20.

Hofstede, G. (1980). Culture’s consequences: international differences in work-related values. Beverly Hills: Sage.

Morris, M. W., & Ho-Ying, F. (2001). How does cultures influence conflict resolution? Dynamic constructivist analysis. Social Cognition, 19(3), 324.



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Tables and Figures

Typical Dutch culture Symbols Typical Greek cultural symbols

Figure 1. Priming symbols used in the study.



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Figure2: Differences at cultural group level and the moderating effect of the Conflict factor in work-related values.



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Figure 3: Conflict as moderator: Low-Conflict demonstrate Intercultural competence but High-Conflict show reversed to the priming behavior

2,0

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Self as Individualist in switching cultural frames among Greek participants



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Figure 4: Significant differences on We-oriented values persist between the two cultural groups

3.50 4.00 4.50 5.00 5.50 6.00 6.50

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ImportanceofWe-orientedvaluesamongGreekemployeesinGreeceandDutchintheNetherlands



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IMPACT OF EU-INTERCULTURAL ATTITUDES TOWARD ITS EXTERNAL CULTURAL

PRAXIS - PERCEIVED STATUS DISCREPANCIES

Ljiljana Simic

University of Arts – Faculty of Drama arts – Serbia

IHECS Academy – Institut des Hautes Etudes des Communication Sociales – Belgique

[email protected]

Kerstin Martel

Master in Intercultural Management, University Paris Dauphine, Paris, France

[email protected]

Abstract

EU institutions in general and the European External Action Service (EEAS) in particular are

working towards a new strategy on international cultural relations, marking a shift in the way the EU

and its member states have developed EU external action. How do Europeans manage to communicate

in a context of cultural and ideological differences characterized by power discrepancies at home and

in their foreign and development policies is opening new windows of opportunity for intercultural

experimentation. This paper intends to follow three main steps: EU intercultural strategy analysis,

curriculum analysis of EUNIC and an empirical study with intercultural praxis of EU Delegations. Based

on qualitative approach we are analyzing various manifestations of power and status discrepancies on

a macro and micro institutional level. There is a question of EU institutional coherence, which involves

identifying and mapping out the key institutions/actors in the intercultural nexus and consider the

extent to which there is or not an emergent institutional framework. This approach is explorative in

nature since the aim here is to explain the process and relevance of cultural synergies of European

internal institutional change and its impact on its external intercultural image.

Purpose

The purpose of our paper is to bring into focus the expression and maintenance of implicit,

perceived status and power gaps amongst European nations and between “Europe and the world”.

This research attempts to explore the role European Union (EU) diversity plays in the process of

constructing its supranational European identity through multilateral relationships. Furthermore we

are questioning if and to what extent the intercultural dialogue that is emphasized in official

communications is anchored in day-to-day interactions in the field.





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On the one hand, we are going to track manifestations on a macro-level through institutional

discourse related to EU external cultural policy. On the other hand, we are illustrating (intercultural)

status discrepancies on various levels in multilateral project teams of EU Delegations and partnerships

and its overall impact on interaction. This is fueled by the EU's concern of envisaging culture as one of

the main driving forces for constructing a "European identity" seen as representing ‘Unity in diversity’.

However, we are demonstrating the impact of national policies, traditions in cultural diplomacy and

some kind of ethnocentric attitudes on the short term implementation of this ideal.


This paper intends to follow three main steps: document analysis, curriculum analysis and an

empirical study. Based on qualitative approach we are analyzing various manifestations of power and

status discrepancies on a macro and micro institutional level, i.e. in EUNIC and EU Delegations.

The first step, document analysis, will concentrate on the analysis of how the intercultural image is

reinforced and how it is potentially undermined, as well as on identifying how the role of culture in

EU development policies and external actions is reframed and positioned.

The second step, curriculum analysis, will examine the intercultural aspects within the mission

of European Union National Institutes for culture (EUNIC) compared to the role of EU delegations.

Individual interviews will be used (as tools to gather information in order to make general and specific

recommendations) in order to identify barriers for the realization of a truly intercultural approach to

collaboration as a part of EU cultural diplomacy.

As a third step we will examine the linkage between the official discourse, informal discourse

and the reality of operations and project work in external cultural diplomacy and intercultural

relations. We will hereby focus on of the challenges that it raises in terms of image credibility,

coherence and consistency in European external intercultural policy.

The research will examine the conceptual evolution of coherence at an institutional, strategic

policy and operational level. Our literature review includes references on power and influencing

strategies, organizational behavior, cultural diplomacy and others, allowing to establish some high-

level hypotheses for future research.




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EU delegations and embassies across the world are declaring to promote intercultural

dialogue and mutual respect, however status gaps and manifestation of power distance towards local

partners and individuals seem to impact relationships in a non-productive manner. They seem to have

implications on leadership style, collaboration mode and conflict resolution between EU-nationals and

non-EU nationals. “Wanting to understand the other” seems to be neglected, whereas “wanting to

get understood” seems to become a motivational driver. There is a question of EU institutional

coherence, which involves identifying and mapping out the key institutions/actors in the intercultural

nexus and consider the extent to which there is or not an emergent institutional framework. This

approach is explorative in nature since the aim here is to explain the process and relevance of cultural

synergies of European internal institutional change and its impact on its external intercultural

image. This paper will try to show how the EU institutional intercultural awareness is transmitted into

their external policy application and how the EU common decision making might lead to a common

EU culture.


Having designed this research as a first-step, broad scale, explorative study we are going to

provide examples that allow to develop high-level insights, however, without statistical relevance. On

top of discourse analysis and interviews we are sharing insights from our daily work as consultants

only from several EU Delegations such as Burundi, Israel, Gabon, Ukraine, Tanzania etc. Some of the

cultural management theories and seen practices might offer limited concepts that can't lead to the

desired achievement of a common EU identity because of possible suppression of the values and

cultural identity of each member states trying to answer in the same time the question of whether or

not the EU has a potential of handling it consciously and becoming innovative in achieving its

intercultural policy.


One-way communication from “dominant” to “dominated” nations/ stakeholders/ individuals

appears to be a barrier for deeper grounded intercultural dialogue between potential change agents

whether they are local, national or at EU level. We are stating that artistic expressions, media

discourse etc. are providing important insights into potential power relations and status gaps, helping

to analyze and to resolve conflict in multilateral relations from a different perspective, going beyond

“cultural differences”.



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Raising awareness about perceived status gaps amongst key stakeholders and change agents

in the field might contribute over time to a more balanced collaboration mode in European external

intercultural relations.


In an age of EU migration fluxes managing intercultural relations with those whom we think

“are not like us” is paramount. The perception of cultural differences between people tend to increase

and there are seemingly not enough visible signs that EU values will converge towards a global cultural

citizenship. Europeans have to do better in dealing with “otherness” and mentioning the importance

of intercultural relations without living them and defending its values is not enough in current cultural

EU diplomacy. Europeans seem to know less about others than the other way around. Finding ways

of reflecting on the gap between our self image and the way we are perceived through our external

actions might help to raise awareness on persisting hurdles. Europe and the EU should engage with

the world in a spirit of mutual listening, learning and sharing. Intercultural communication also

matters for international political achievements. Policy makers tend to talk over each other, rather

than with each other, in global governance systems due to the lack of intercultural exchange. This

paper tends to recognise and show how power asymetries exist in EU cultural diplomacy, inhibiting

apparently a commun, interculturally open evolution.

Keywords

European power relations, Cultural diplomacy of status&image, EU external cultural policy, Europeaness, EU

intercultural image.



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A STRATEGIC APPROACH TO INTERCULTURAL PERSUASIVE COMMUNICATION

Dr. Elena Pruvli

[email protected]

Estonian Business School, Estonia

Abstract

A number of recent studies were focused on different strategies for adapting culturally preferred persuasive styles in intercultural environments. This research suggests the importance of defining, predicting and explaining our own behaviour in addition to the accuracy of predictions and explanations regarding the preferred persuasive style of the other party. The findings revealed that communicators with a quasi-logical preferred persuasive style often maintain a positive attitude toward it but they depreciate alternative persuasive styles such as presentational and analogical. This paper attempts to address the deeper roots of this attitude. It examines a historical tradition of a persuasive scholarship and its influences on modern communication. The author addresses the current debate about the refugees and migrants in Europe being a clash between different persuasive styles, while presentational and analogical styles are associated with persuasive manipulation. Keywords: persuasion, intercultural communication, intercultural persuasive communication, effectiveness of communication, preferred persuasive style, history of persuasion, Aristotelian logic

1. The awareness of communication patterns: predictions and explanations

A number of recent studies (Pruvli, 2014; 2015) united preferred persuasive style concept (Glenn

et al. 1977; Johnstone 1989) with the theory of effective communication in the intercultural

environment (Gudykunst 2005). Their focus was on different strategies for adapting persuasive styles

in intercultural interactions. From a philosophical perspective this research continues the Socrates’

and Plato’s idealistic and rationalistic tradition (Garver 1995), which saw the reality as a combination

of ideas and happenings. The concept of Intercultural Persuasive Communication (IPC) unites the

cultural phenomena with communication of a particular kind. Cultural patterns are ideas about actions

that take place in reality; the ideas about these actions persist and outlive the communication

episodes that gave the ground to conceptualise the cultural phenomena. In terms of Aristotelian

understanding of what he called (Garver 1995) unity of the shapeless “matter” and “essence”, instead

of an “idea” in Plato’s conception, this investigation offers the frame for a process of communication.

A number of persuasive episodes received their new meaning via this frame, which transforms them

into concepts.

This research suggests, as shown in Figure 1, the importance of clearly defining, accurately

predicting and explaining our own communication patterns regarding the preferred persuasive style

in addition to the accuracy of predictions and explanations regarding behaviour of the other party. In

this paper the author attempts to address the issue of the explanation from a historical point of view

below.

These findings could be seen as supplementary to Gerhard Maletzke's psychosocial model, which

was developed in 1963 for communication in a mono-cultural environment [Danesi 2009, pp.183].



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Maletzke emphasised the impact of the social setting on communicators’ interaction and on their self-

image. Findings from the BBC’s Great British Class Survey Experiment (Savage at al. 2013) proved the

importance of extensive social networks that are associated with particular classes, for example, in

British society. The analysis by Savage at al. (2013) reveals the class boundaries of a more complex

nature than just educational and occupational. Interestingly, the main concept of quasi-logical

preferred persuasive style was shaped in ancient Greek society that was relatively egalitarian in

comparison to the cultural environment in modern Greece.

Please insert Figure 1 here

Explorations by Pruvli (2014; 2015) also reveal that communicators with the quasi-logical preferred

persuasive style often are aware of their own communication pattern. They maintain a positive

attitude towards it that is backed up by business related publications but at the same time often

depreciate alternative persuasive styles such as presentational and analogical.

At present management, law, politics and media, among the other fields of social science, are still

dependent on the main principles of Roman-Greek teachings in persuasion because they were well

documented and widely introduced for centuries at schools and universities across Europe and later

in North America. The majority of modern concepts related to persuasive communication were

developed from the American perspective on the mono-cultural environment, in political

communication at the level of mass communication. A number of theoretical concepts of persuasion

existed in marketing related fields on interpersonal, intergroup or organisational levels, but they used

value-based or strategic approaches (Pruvli, 2014) and were not related to differences in the

persuasive styles.

It is obvious that persuasion as a form of communication took place around the globe but the

studies thereof were limited to classical sources. Persuasion practices elsewhere often were

considered somehow inferior if they were not matching the Procrustean rules of classical Aristotelian

logic. The historical grounds for this attitude are discussed in this paper.

2. Historical roots of the quasi-logical approach

Aristotle is considered to be the first to refer to “logos” as to the arguments to convince the

receiver(s) of the speakers’ believes. His other components of persuasion were “pathos” (emotions of

the receivers) and “ethos” (words of the speakers). He stressed the importance of a certain order, how

information should be presented in persuasive messages (Garver, 1995), and this structure is widely

followed in scientific and academic worlds today:-

- introduction,



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- main content,

- formulation of the problem,

- discussion and

- conclusion.

Aristotle brought up as the third component of persuasion a linguistic dexterity that included a

choice of words (that are presentational elements) and usage of metaphors (that are analogical

elements). However, the essence of his theory of “logos” (Garver, 1995) was in connected a sequence

of coherent arguments that is a strong foundation for the quasi-logical approach as well as his idea,

that propositions or expression of facts can be either true or false, so one or the other. A classical

illustration by Aristotle of a format, to which every proposition can be distilled, “Socrates is mortal”,

contains a subject, link and a word that indicates something about this subject. In many modern

languages, such as Russian, this link is unnecessary (though can be used) and that makes this basic

concept of logic more relevant to some cultures rather than all.

Eventually, a current version of these classical works went through a number of cultural

adjustments and modifications due to the fact that according to early Greek philosophy researcher

Jonathan Barnes (Barnes, 1984) they disappeared after the collapse of Roman Empire to be found in

Arabic translations in the Islamic world in the 9th century A.D. Four centuries later it was re-introduced

to the Latin West and adjusted to back up its Catholic mentality but also served as a foundation of a

contemporary “common sense”.

The vast majority of translation of classical texts was made more recently in Anglo-Saxon cultures

(for example by McKeon, Ackrill, Bambrough, Renford etc) and inevitably is biased towards its values

and traditions. Barnes admits that his revised edition of The Oxford Translation of Aristotle (that

included 12 volumes issued within the period of 1912-1954) is slightly amended in the light of

contemporary studies and three new translations were introduced.

We can say, that what we currently know under Aristotelian logic is actually a collective work of a

few generations of translators, who enriched the original ideas by their own understanding and

general knowledge of contemporary scholarship. The author is brave to assume, that this result of an

accumulated effort is culturally more acceptable in the Western world as a leading light of rational

logical thinking.

Eduard Bonet and Alfons Sauquet, (2010) state in their critical and historical analysis of rhetoric in

management that up to the initiative of Alexander the Great the theory of his teacher Aristotle (384–

322 B.C.) was compulsorily part of the official education everywhere in his empire that spanned the

known world. A centralised program was introduced to the scholars in the Middle East, India and

Europe. This educational tradition continued for many centuries in the Roman Empire after Cicero

(106-43 B.C.) made an adjustment (Bonet and Sauquet, 2010) of the Greek writings to match the

Roman practical attitude and values.

Interestingly, Cicero was not following the Aristotelean line of argument theory but stressed

eloquence instead (Bonet and Sauquet, 2010); in addition to structure and style he considered the

delivery to be one of the canons of rhetoric that reinforces the presentational elements in persuasive

messages. His strategy that was based on powerful emotions has an affinity with persuasive

manipulation, which will be discussed in the next subchapter.



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Quintilian (30-95 A.D.) taught this subject as a part of curricula for contemporary public

administration. According to Bonet and Sauquet (2010) during the Renaissance in Europe this

presentational approach deepened while scholars, who studied the Cicero theory, focused on style

and eloquence. Rhetoric traditionally was related mainly to the art of using words for argument and

in this regard using language skillfully to lead the audience to a certain conclusion. Bakhtin stressed

“the hidden “passive” part of language (listening and reading)….the relational basis of language”

[Goosseff, 2010, p.150] referring actually to a receiver’s role in the creation of meaning.

There is historical evidence, that Alexander the Great accepted some influences from other

cultures for example, Greco-Buddhism, and was accused by his contemporaries of betraying the

proper Greek civic virtue in favour of the corrupted Easterners’ approach.

However, for centuries a general notion of persuasion was traditionally linked to the rhetoric of

Greek and Roman scholars. Aristotelian writing “On Rhetoric” is considered to be a fundamental effort

to define the concept, to explore the main argument of successful strategies. Additionally to those

mentioned above are Protagoras (485-410 B.C.), Socrates (469-399 B.C.) and Plato (429-347 B.C.).

Their training on persuasive skills with its different techniques is one of the oldest known in the

communication field. Some methods, those of Protagoras, were very actively implemented, for

example, in British secondary education. When the author’s son attended Harrow High School for boys

in London during the 90s, the 8th grade year students were divided into two groups, one of Oliver

Cromwell’s supporters and another of his enemies to present arguments for and against his ideas.

After the first round of discussions they had to change their roles and reverse their arguments.

3. Persuasive manipulation

Persuasive manipulation can be defined as a speculation on strong feelings with the goal to surpass

logic by emotion. It was a widely used legal practice in ancient Greece and Rome. The ethical issues of

involving emotions or presenting the evidence in a distorted way were questioned and first recorded

by Plato.

Reputedly the oldest known manifestation of persuasive manipulation is the Venus de Mila and

aesthetically pleasurable monument to persuasive manipulation is displayed at the Louvre Museum

in Paris, France (see Figure 2).


Some historical sources claim [Levine and Novoa, ( 2012), p.156] that the model for this statue was

a hetaera called Phryne who was accused of blasphemy. It was considered a severe crime in ancient

Greece. Supposedly she got away from an inevitable death penalty by exposing herself to court

members and exploiting their devotion to the Hellenistic cult of the beautiful body. This persuasive

episode inspired artists in Europe for centuries. The scene painted in the 19th century by José Frappa,

of her gloriously persuasive nuditity, is displayed in Musée d’Orsay.



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Later, during Ciceros’ times the manuals at the contemporary law courts still affirmed systematic

organisation of the evidence but the defense of someone called Fonteius is a notorious example that

the whole strategy was built on compassion to his sister Fonteia (Hall, 2007). She was a Vestal Virgin,

the priestess of Vesta, goddess of the Hearth in ancient Rome and in accordance with the guidelines

of Cicero, pleaded in a melodramatic way to provoke sympathy, anxiety and quilt towards her brother

in the hearts of the jurors (Hall, 2007).

Manipulative techniques were often imbued into modern classical criminal stories to intensify the

intrigue. Tinkering with facts is one of the accepted methods to persuade the reader that the crime

was committed by the less expected of the fictional characters.

Sir Arthur Conan Doyle during his tenure at the Edinburg Medical College was impressed by the

deductive skills of one of his professors Joseph Bell and invented Sherlock’s Deductive Methodology

based on observations. This was the main mental tool of Sherlock Holmes’s investigations. While this

approach aimed to mislead the reader to one conclusion, it is outwardly close to quasi-logical

persuasion style, manipulation takes place in the selection of facts. The details that confirm the real

conclusion are evident but not highlighted. For example, in “A Study in Scarlet”, the facts and their

very subjective interpretation are called by Sherlock as “a chain of logical steps without a break or

flaw” [Doyle, (1981), p.90].

In her detective stories Agatha Christie also implemented a manipulative approach. With his “little

grey cells” Hercule Poirot solved “Murder on the Orient Express” by sidestepping persuasive facts

toward the 13 suspects by deductive reasoning.

Miss Marple unmasked the supposed victim, one of the least likely characters to be a murderer, in

“A Murder Is Announced” by manipulation. She conducted “a little experiment” that involved a

mysterious refugee Mitzi Kosinski, the housekeeper at Little Paddocks, who was nearly drowned in a

sink by her mistress and that proved the murderous nature of the latter. An Eastern European refugee

woman is shown as an exotic and enigmatic but positive character, a good cook, who played a crucial

role in catching the perpetrator at the crime scene. She invokes the sympathy and empathy even if

she’s wild, paranoid and mentally disturbed.

Why then a current debate in Europe reveals a lack of empathy toward refugees, migrants and

aliens? The author addresses it as a clash between different persuasive styles where the quasi-logical

style is often dominant. It involves rational calculations of how these people will contribute to the

economy and help to pay pensions to the ageing nations in the future but require for their support

significant resources right now. In these and other similar circumstances presentational and analogical

styles are associated with persuasive manipulation.

The presentational persuasive style that appeals to feelings of compassion and solidarity is often

perceived as manipulative in a dominantly quasi-logical cultural room. The same attitude often is

expressed toward analogical persuasive style that employs comparison of the current situation to the

Second World War era.

It is an anecdote that sadly but truly reflects this preference; two refugees are carrying the

posters that ask for money from the passersby in one big European city. At the end of the day they

compare the collected sums. One got nothing and another accumulated a fortune.

“What is written on your poster?”-asked the lucky man, his counterpart read it aloud: “Please,

donate money to feed my 10 children, who are hungry. “ “Now look at mine!”- and the fortunate

beggar showed his own sign, that said:” Lacking just 10 EUR to buy my ticket home.”



100

4. Acknowledgement

The research for this article was conducted with the support from the European Regional

Development Fund.

5. References

Barnes, J. (1984) The complete works of Aristotle: the revised Oxford translation. Princeton University

Press, Princeton, New Jersey.

Bonet, E. and Sauquet, A. (2010) ‘Rhetoric in management and in management research’, Journal of

Organizational Change Management, Vol. 23 No 2, pp.120 - 133

Danesi, M. (2009) Dictionary of media and communications. M.E. Sharpe Inc. Armonk, New York.

Doyle, A. (1981) The adventures of Sherlock Holmes, Avon books, New York, New York.

Garver, E. (1995) Aristotle’s Rhetoric. University of Chicago Press, Chicago.

Glenn, E, Witmeyer, D. and Stevensen, K. (1977) ‘Cultural styles of persuasion.’ International Journal

of Intercultural Relations, Vol 1 No 3, pp.52-66

Goosseff, K, (2010) ’Autopoeisis and meaning: a biological approach to Bakhtin’s superaddressee ’

Journal of Organizational Change Management, Vol. 23, No 2, pp. 145-151

Gudykunst, W. (2005) ‘An anxiety/uncertainty management (AUM) theory of effective

communication: Making the mesh of the net finer’, in Gudykunst W. (Ed.), Theorizing about

intercultural communication, Sage, Thousand Oaks, CA, pp. 281–322.

Hall, J. (2007) ‘Persuasion in Ancient Greece and Rome,’ ADR Bulletin, 9, (10), Article 2. (online)

http://epublications.bond.edu.au/adr/vol9/iss10/2 (Assessed 12 March 2017).


http://epublications.bond.edu.au/adr/vol9/iss10/2


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Johnstone, B. (1989) ‘Linguistic Strategies and Cultural Styles for Persuasive Discourse’, in Ting-

Toomey, S. and Korzenny, F. (Eds.), Language, Communication, and Culture: Current Directions, Sage,

Beverly Hills, CA, pp. 139-156.

Levine A. and Novoa A. (2012) Darwinistas!: the construction of evolutionary thought in nineteenth

century Argentina. Series: Scientific and learned cultures and their institutions, v. 5, Brill, Leiden,

Boston.

Pruvli, E. (2014) ‘Business Communication of a Persuasive Nature: Style Adaptation and Effectiveness

during Intercultural Interactions.’ Journal of Intercultural Communication, 35, (online)

http://www.immi.se/intercultural/nr35/pruvli.htm (Assessed 18 Detsember 2016).

Pruvli, E. (2015) ‘ Effective persuasion: A model for the intercultural business context.’ In Covarrubias

Venegas, B., Dalipi, M. and Darder F. L. (Eds.) Academic Publications of SIETAR Europa Congress 2015.

Refreshing the Cultural Paradigm: Sharing Stories, Theories and Next Practices. SIETAR Europa in

association with Meridian World Press, Spain, Valencia, pp. 77 – 85.

Savage M., Devine F., Cunningham N.,Taylor M., Li Y., Hjellbrekke J., Le Roux B., Friedman S and Miles

A. (2013) ‘A New Model of Social Class? Findings from the BBC’s Great British Class Survey Experiment.’

Sociology, Vol.47 No. 2, pp. 219-250



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Figure 1. Connection between the effectiveness of Intercultural Persuasive Communication (IPC)

and the awareness of communication patterns, own and other participant (drafted by the author)



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Figure 2. This shows the Venus de Milo (Aphrodite) embodies persuasive manipulation at the

Louvre Museum in Paris, France (from the author’s private collection)



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ASIAN LOCAL EMPLOYEES’ ACCULTURATION TOWARDS A MULTICULTURAL WORKPLACE

Dr. Katharina Lefringhausen

Warwick University, UK

[email protected]

Abstract

Rather than considering expatriates’ acculturation towards their host organisation (i.e., temporary or permanent non-local assignee), we explored local employees’ acculturation towards a multicultural workplace (i.e., members of the host community). Thus, this study investigated local employees’ bidimensional acculturation towards a multicultural work environemnt. Furthermore, the association of local employees’ multicultural adaptation with organizational citizenship behaviours (OCBs) and national culture maintenance with organizational identification (OI) was explored. Data were obtained from Chinese and Indian employees (N = 111) across business sectors. Hierarchical regression analysis showed that across cultures, multicultural adaptation was positively associated with OCBs, and national culture maintenance was positively associated with OI. These findings may inform Human Resource Management how to reduce expatriates’ assignment failure and enhance the effectiveness of local employees.

Purpose

The present study sought to fill existing research gaps by (a) applying Locals' Bidimensional Acculturation Model to explore local employees’ acculturation towards a culturally diverse work environment; (b) adding to the growing body of literature on organizational behaviour by identifying locals’ multicultural adaptation as an antecedent of organizational citizenship behaviours (OCBs) and national culture maintenance as a predictor of organizational identification (OI); and (c) exploring these relationships in two growing world economies (World Bank, 2013) and expected top emerging assignee locations (Brookfield, 2012), China and India.


Two online versions of the survey were developed using the original scales in English. Hyperlinks were created with an online survey-development tool and distributed via email circulation to individual employees of international operating corporations in both countries. To qualify for this study, participants were required to identify as Indian or Chinese; to have been born in India or China, as were both of their parents; they were also required to have no migratory background and to be currently living in their home country. To ensure participants’ exposure to a multicultural work environment, all respondents were required to be in daily contact with either culturally diverse co-workers, subordinates, superiors or customers and clients at their work place. Data was collected from 57 Chinese and 54 Indian employees. Almost all participants had advanced education background (i.e., B.A. and above, 96%) and were in a managerial position.

Questionnaires included the following: the Multi-Vancouver Index of Acculturation (Lefringhausen & Marshall, 2016) to asses local employees‘ national culture maintenance (e.g., “I often participate in my heritage cultural traditions”) and their multicultural adaptation (e.g., “I am interested in having friends from diverse cultures”); the Organizational Citizenship Checklist questionnaire (Fox et al., 2012) which assessed participants’ acts directed towards the organization (OCB-O; “I volunteered for extra work assignments”) and acts directed towards co-workers (OCB-I; “I gave a written or verbal recommendation for a co-worker”); as well as Organizational Identification (Mael, 1988) which evaluated respondents agreement with statements such as, “When someone criticizes my corporation, it feels like a personal insult.” Findings and Implications



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Table 1 presents means, standard deviations, Cronbach‘s alpha coefficients, and correlations for all continuous variables. Specifically, across groups as well as for the total sample, national culture maintenance and multicultural adaptation show appropriate reliability, and thus locals’ bidimensional acculturation model is adaptable for a workplace context. To test whether locals’ multicultural adaptation predicts OCBs and whether national culture maintenance predicts OI, we conducted hierarchical regression analysis (see Table 2) after group-mean centring both continuous predictor variables to mitigate cultural response bias. Supporting our Hypotheses, locals who were higher in multicultural adaptation were more likely to express both OCBs. These main effects were not moderated by culture. Finally, national culture maintenance was positively associated with organizational identification whereas multicultural adaptation showed a trend towards a significant positive association. A post hoc power analysis further revealed adequate statistical power to detect the obtained effects.

The results supported the applicability of Locals' Bidimensional Acculturation Model to a workplace contex therefore expanding current organisational research on expatriates and local employees’ bidirectional acculturation. That multicultural adaptation was related to OCBs links to literature on cultural similarity predicting locals’ supportive interpersonal behaviour towards expatriates (Pichler et al., 2012) – that is, adapted local employees endorse multiculturalism and therefore reduced the cultural discripance between themselves and their multicultural work environment. In line with organisational psychology literature, national culture maintenance was positively associated with OI stressing that local employees regard their branch as nested within their mainstream culture (Vora & Kostova, 2007). Nevertheless, the marginal significant relationship with multicultural adaptation reveals a potential trend towards multiple OIs (ibid.) in form of a local-subsidary and globally orientated OI. Research limitations

Participants were generally well-educated managers, and the results may not be generalizable to all levels of Indian and Chinese employees working in a multicultural environment. We also did not measure the type and quality of local employees’ intercultural contact. Rather, we addressed multicultural work environments including local employees’ daily contact with members of their own organization – international co-workers and supervisors – as well as clients who belonged to external companies. Lastly, we did not measure leadership style, even though leadership is pivotal in shaping followers’ OCBs (Biswas, 2010) and OI (Avolio et al., 2009). Thus, leadership styles may moderate the main effects of multicultural adaptation and national culture maintenance on both outcome variables.


The results suggest that instead of sending expatriates abroad who are culturally similar to the host country (Pichler et al., 2012), organizations could also focus on promoting local employees’ multicultural adaptation. In particular, Human Resource Management should take steps to enhance local employees’ feelings of ‘home’ and ‘fitting in’ to a culturally diverse work environment. For example, high social support, cultural knowledge, and degree of contact are well-known antecedents for expatriates’ cultural adaptation (Hogan & Goodson, 1990), and could be easily adapted for locals. Specifically, the intercultural training models provided for expatriates (Cheema, 2012) should be considered for local employees before or during the interaction with foreign co-workers, customers, or suppliers. Moreover, this training could be supported through encouraging locals’ second language acquisition; such proficiency is the first step in learning skills in a new cultural environment, thereby promoting biculturalism (Benet-Martínez & Haritatos, 2005).


In international business, must we first understand the local employee in order to understand the expatriate? Consistent with the sharp rise in the international assignee population, and the growing interest in international assignment success, most research has focused on the cultural adaptation of expatriates rather than locals (Berry & Sam, 1997; Tung & Kim, 2013). Yet whether multinational corporations accomplish their objectives (Cameron, 2013) depends not only on expatriates but also on local employees (Russell & Aquino-Russell, 2013). Thus far, international assignment research has paid little attention to locals acculturation towards a multicultural work environment. Our research is the first of its kind to empirically explore local



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employees’ acculturation by identifying their multicultural adaptation and national culture maintenance as antecedents of OCBs and OI in two growing world economies, China and India.

Keywords: Asia; Multiculturalism; Acculturation; Organizational Citizenship Behaviours; Organizational Identification



107

References

Avolio, B., Walumbwa, F., & Weber, T. J. (2009). Leadership: Current theories, research,

and future directions. Annual Review of Psychology, 60, 421-449.

Benet-Martínez, V., & Haritatos, J. (2005). Bicultural identity intergation (BII): Components and psychosocial antecedents. Journal of Psychology, 73, 1015-1050. doi: 10.1111/j.1467-6494.2005.00337.x

Berry, J. W., & Sam, D. (1997). Acculturation and adaptation. In J. W. Berry, M. Segall, & C. Kagitcibashi (Eds.), Handbook of cross-cultural psychology (pp. 291-326). Boston: Allyn & Bacon.

Biswas, S. (2010). Commitment as a mediator between psychological climate and citizenship

behaviour. Indian Journal of Industrial Relations, 45, 411-423.

Brookfield (2012). Global relocation trends. Survey report. USA: Brookfield Global Relocation Services.

Cameron, K. (2013). Organizational effectiveness. In E. Kessler (Ed.), Encyclopedia of

management theory. (pp. 554-557). Thousand Oaks, CA: SAGE Publications. Cheema, H. (2012). Best cross-cultural training practices for North American and European

expatriates in China: A Delphi study. Journal of Psychological Issues in Organizational Culture, 3, 20-47. doi: 10.1002/jpoc.21064

Fox, S., Spector, P. E., Goh, A., Bruursema, K., & Kessler, S. R. (2012). The deviant citizen: Measuring potential positive relations between counterproductive work behaviour and organizational citizenship behaviour. Journal of Occupational and Organizational Psychology, 85, 199-220. doi: 10.1111/j.2044-8325.2011.02032.x

Hogan, G. W., & Goodson, J. R.(1990). The key to expatriate success. Training and

Development Journal, 44, 50-52.

Lefringhausen, K., & Marshall, T.C. (2016). Locals’ bidimensional acculturation

model: Validation and associations with psychological and sociocultural adjustment outcomes. Cross-Cultural Research, 50, 356-392. doi:10.1177/1069397116659048

Mael, F. (1988). Organizational identification: Construct redifinition and a field application

with organizational alumni. Unpublished doctoral dissertation, Wayne State

University, Detroit.

Pichler, S., Varma, A., & Budhwar, P. (2012). Antecedents and consequences of the social

categorization of expatriates in India. The International Journal of Human Resource Management, 23, 915-927. doi:10.1080/09585192.2012.651300

Russell, R., & Aquino-Russell, C. (2013). Indonesian host country nationals: Feeling

respected yet not respected. International Journal of Management & Information Systems, 17, 21-28.

Tung, R. L., & Kim, H.-D. (2013). Opportunities and challenges for expatriates in emerging

markets: An exploratory study of Korean expatriates in India. The International Journal of Human Resource Management, 24, 1029-1050. doi: 10.1080/09585192.2012.753551

Vora, D., & Kostova, T. (2007). A model of dual organizational identification in the context

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the Development Research Centre of the State Council, P. R. China. Washington, DC: World Bank. doi: 10.1596/978-0-8213-9545-5



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Table 1

Table 1 Correlation Matrix of Continuous Variables

Variables M SD α 1 2 3 4

1. MA TOTAL 3.66 .47 .78 India 3.75 .43 .70 China 3.57 .48 .83 2. NCM TOTAL 4.00 .58 .89 .46*** India 4.11 .51 .82 -.10 China 3.90 .63 .92 .68*** 3. OI TOTAL 3.92 .60 .82 .28** .38*** India 4.06 .63 .80 .17 .36** China 3.78 .54 .84 .26 .29* 4. OCB-O TOTAL 2.82 .60 .85 .34*** .26* .19* India 2.91 .61 .86 .25 .25 .31* China 2.75 .57 .86 .37** .21 -.01 5. OCB-I TOTAL 2.91 .69 .83 .31** .23* .28** .53*** India 3.05 .74 .83 .24 .15 .34* .49*** China 2.79 .62 .83 .30* .20 .13 .54***

MA: Multicultural adaptation; NCM: National culture maintenance; OI: Organizational identification: OCB-O: Organizational citizenship behaviour benefiting the organization; OCB-I: Organizational citizenship behaviour benefitting the individual co-worker. p < .05*; p < .01**; p <.001***, and in boldface.

Table 2 Regression Coefficients for Main Effects and Interactions

OCB-O OCB-I OI

df R² β t p R² β t p R² β t p

Step 1 106 .14 .12 .24 AGE .12 1.21 .23 .12 1.24 .22 .30 3.34 .00*** COUNTRY .06 .57 .57 -.03 -.28 .78 .00 .02 .99 NCM .11 1.00 .32 .06 .53 .60 .21 2.10 .04* MA .31 2.89 .01** .28 2.55 .01* .19 1.88 .06† Step 2 104 .17 .13 .27 NCM × COUNTRY -.71 -1.87 .06 -.41 -1.06 .29 -.55 -1.54 .13 MA × COUNTRY .17 .44 .66 -.02 -.06 .96 -.18 -.52 .61

NCM: National culture maintenance; MA: Multicultural adaptation.† Tendency towards significance; p < .05*; p < .01**; p < .001*** and in boldface.



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Beginner Lower-intermediate

Upper-Intermediate

Advanced

Knows

Not, or minimally aware of own cultural rules and perspectives;

Aware of own cultural rules and perspectives;

Aware of own, and of other cultural rules and perspectives;

Aware of own, and of other views on own, and other cultural rules and perspectives;

Cannot, or minimally identify cultural differences;

Has a sense of cultural differences;

Can identify and explain cultural differences;

Can identify, explain and theorize cultural differences;

Views

Views the experiences and behaviours of others solely through own cultural worldview;

Partially views the experiences and behaviours of others also through the cultural worldview of others – mostly only if requested;

Views the experiences and behaviours of others also through the cultural worldviews of others;

Able to view the experiences and behaviours of others through multiple cultural worldviews;

Responds to others using solely own cultural worldview;

Responds to others predominantly from own cultural worldview;

Starts using more than one cultural worldview in responding to others;

Responds to others actively making use of shifting worldviews and corresponding behaviours;

Communicates

Not, or minimally able to make use of cultural differences in verbal and nonverbal communication;

Able to partially make use of cultural differences in verbal and nonverbal communication;

Able to make use of cultural differences in verbal and nonverbal communication;

Able to explain, theorize and actively make use of cultural differences in verbal and nonverbal communication;

Does not (care for) develop(-ing) shared meaning23

Tries to seek shared meaning but finds it difficult

Actively seeks shared meaning

Can initiate and create shared meaning

23 ‘shared meaning’ refers to acknowledging mutually understood interpretation of an incident, situation,

word(-s), and/or text(-s).



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Relates

Not, or minimally asking questions about other cultures;

Asking basic questions about other cultures;

Asking deeper questions about other cultures;

Asking complex questions about other cultures in a culturally appropriate manner;

Avoids interactions with culturally different others;

Occasionally interacts with culturally different others – mostly only if requested;

Actively seeks interactions with culturally different others;

Initiates and develops interactions with culturally diverse others;

Unaware of own judgments and/or not suspending judgments24

Tries suspending judgment but finds it difficult

Begins suspending judgments

Suspends judgments / knows when and how to suspend judgments

Figure 3: draft IC development articulation matrix

pretest posttest postposttest difference

Group 1 (n=10; 2011) 109 117 120 +8, +3

Group 2 (n=13; 2012) 94 94 95 0, +1

Group 3 (n=11; 2013) 106 116 No data yet +10

Group 4 (n=11; 2015) 109 115 No data yet +6

Group 5 (n=8; 2016) 104 No data yet

No data yet

Table 1: IDI test results

intervention or control group Time (t) Mean Std. Error

95% Confidence Interval

Lower Bound Upper Bound

intervention 1 90.105 1.181 87.778 92.433

24 ‘suspending judgment’ refers – in this context - to postponing the assessment or evaluation of the

interaction with culturally different others + taking time to reflect on possible multiple meanings.



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2 92.563 1.382 89.840 95.287

control 1 89.214 1.249 86.751 91.677

2 89.275 1.462 86.394 92.157

Table 2. Mean scores, standard error and confidence interval of developmental orientation at t1 and

t2 for both the intervention and control group.



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FROM INTERNATIONAL TO INTERCULTURAL: PROMOTING INTERCULTURAL

INTELLIGENCE THROUGHOUT THE SCHOOL. THE CASE OF A FRENCH SCHOOL

OF MANAGEMENT”

Grant Douglas

Ingrid Richard

IESEG School of Management, FR

[email protected]

[email protected]

Abstract

Like many higher education institutes, X School of Management (France) is an increasingly

multicultural place. With almost 5,000 students, of which over 2,000 are international students from

98 countries, EQUIS, AACSB and AMBA accreditation, and more than 700 professors, from 41 different

countries, X can easily claim to be an international school. At any one time X has 920 of its students

participating on study abroad exchanges with its 262 partner universities in 66 countries and almost

the same number of students doing internships abroad.

However, X is conscious of the fact that attracting a highly diverse population is not a

guarantee of success in itself, and wants to do more, especially for students intending to start an

international career. It has therefore decided to go beyond being international and become a truly

intercultural school. A cross-disciplinary pole of “Intercultural and People Competences” has been

created that will feed into every academic department.

However, the questions remain in relation to these different measures intended to develop

cultural competence: to what extent are they effective?

Purpose

These initiatives draw on the concept of cultural intelligence, developed over the last 10 years

or so (Early and Ang, 2003, Thomas, 2006, Ang and Van Dyne 2008). By increasing cultural knowledge,

cultural competence and metacognition, X hopes to increase cultural intelligence in such a way that

the result will be more culturally intelligent behaviour on the part of all the members of the school.



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Every student at the bachelor’s level follows a course in “Understanding Cultural Diversity”.

The students have the possibility to participate in study abroad from the second year and/or do their

compulsory 2nd year internship abroad. Students at the master’s level can choose to take a “Cultural

Diversity Certificate”.

Can we evaluate the impact of the path that students choose on the development of their

cultural intelligence?

Methodology.

To answer these questions, we will analyze the paths taken by two cohorts of students. The

first cohort, the oldest, is composed of 609 students currently in their 3rd year of study. They were

able to do an internship in France or abroad (23.5% of them) and participate in a study abroad

exchange (14.5% of them). These students were assessed three times on their cultural intelligence

score: on arriving at the school, at the end of the first year after following the "Understanding Cultural

Diversity" course and finally at the end of the third year after their internship and possible student

mobility. The assessment was conducted using the Short Form Cultural Intelligence Survey (SFCQ).

The second cohort consisted of 693 students currently in their 2nd year of study. These

students followed the “Understanding Cultural Diversity” course. Only two evaluations of their

cultural intelligence score are currently available. However, students in this cohort also did a Diversity

Icebreaker profile that establishes their interpersonal communication style preferences on 3 axes:

task-oriented (blue), people-oriented (red) and reflection-oriented (green). The idea is to identify if

certain types of communication style facilitate the development of cultural intelligence.

Finally, for all of the students in the two cohorts we were able to analyze information related

to their academic background (education, mobility, campus, degree programme in French or English

etc.) and some demographic variables (gender, country of residence of the parents etc.).

The impact of the path of student on their cultural intelligence was assessed by conducting

econometric analysis of their scores with 3 different evaluation times.

Findings and implications

Analysis conducted on the two cohorts of students at their arrival at the school shows that

male students whose parents reside in France, those who chose the degree programme in French, and

those in the second cohort have significantly lower CQ scores. While the average score is 36.9 in SFCQ,

students whose parents reside in France, for example, have a lower score of 0.6 points on average. If

it is probably mainly a cohort effect, it is nevertheless likely that students whose parents reside in



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France and who have chosen the degree programme in French may have a lower cultural openness,

leading to lower scores. However, the statistical differences are still weak and the model currently has

a weak explanatory power.

The results also show that the cultural intelligence score of students significantly increases at

the end of the "Understanding Cultural Diversity" course. The increase is quite large (+2.5 points) and

covers nearly 70% of students. The grades obtained by the students in this course do not determine

the increase in the cultural intelligence score.

Communication style seems to have an effect on the progression: students having a task-

oriented communication style ("blue") have a lower significant progress on all of the components of

cultural intelligence: cultural knowledge, cultural skills and metacognition.

Finally, our results show the very significant impact of the choice of the path students take.

Students who did their internship abroad and students who completed their second year in a foreign

university have significantly higher gains (respectively + 1.2 points and 1.7 points). The internship

abroad mainly impacts on metacognition and cultural knowledge scores. Mobility in a foreign

university most impacts on cultural skills and cultural knowledge scores


The fact to have only two cohorts of students should be the main limitation of this study.

Moreover it will be interesting to follow the progression of the cultural intelligence of each student

through the whole five years spent at the school.


This paper provides evidence of the effectiveness of different components on the degree

programme for the development of cultural intelligence. The course “Understanding Cultural

Diversity”, but also the choice of the students’ path contribute significantly to the progress of the

score. The school should encourage the multiplication of these experiences and also see how students

who stay in France can find ways to increase their scores. It also needs to be noted that the sensitivity

of students in these experiences appears to depend in part on their communication profile: students

more oriented towards people or reflection have larger gains than students who are task-oriented.

The generalization of this test and its analysis could be useful for improving the effectiveness of

different course components.

What is the value of the paper?

The main originality of this educational innovation is the range of topics covered, the number

of participants involved, customizing training, its longitudinal assessment and its hybrid nature.



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Beyond the classic themes of training in communication / intercultural management, are

discussed topics such as learning styles, communication styles and cultural values.

Although all school stakeholders are involved in the training, they, through the tools put in

place and the pedagogical approach, allow everyone to think about their own culture and its own

values and develop an individual plan for intercultural development based on individual profiles.

Individual development of intercultural skills and cultural intelligence is evaluated over a period of 2

to 5 years, depending on the path of each participant. The current bachelor pedagogy that uses a

hybrid mixture group lessons, interactive online sessions and e-learning sessions.

Keywords :

Cultural intelligence, student path, communication styles, internationalization, immersion



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COLLECTIVE EMOTIONAL CLIMATE WITHIN SOCIAL SYSTEMS

Gerhard Fink

WU Vienna, AT

[email protected]

Maurice Yolles

Liverpool John Moores University, UK

We offer theoretical foundations for analysis of cultural differentiation within

societies. Based on Mindset Agency Theory and on James Gross’s (1998) model of

emotion regulation, we show that eight affect types of emotional climate can be

derived from an integrated model. Since the same principles apply to the cognitive

agency and the affect agency model, the three bi-polar traits of the affect agency

model (stimulation vs. containment; ambition vs. protection and dominance vs.

submission) result in eight extremal and contrasting affect types, which on the

one hand are related to the eight cognitive types of Mindset Agency Theory and,

on the other, they are also related to the classical four temperaments and to the

four types (niche, cooperation, hierarchy, submission) identified by Helmut

Nechansky (2006, 2007).

Keywords: Emotional Climate, Mindset Agency Theory, Social System

Temperament, Social Psychology, Self-Regulation.

Gerhard Fink

Department of Global Business and Trade

WU - Vienna University of Economics and Business,

Welthandelsplatz 1

Building D1

1020 Wien, Austria

E-Mail: [email protected]




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Maurice Yolles

Centre for the Creation of Coherent Change and Knowledge,

Liverpool John Moores University,

2 Rodney Street, Liverpool L3 5UX, UK

Email: [email protected]

Gerhard Fink is a retired Jean Monnet Professor. During 2002–2009, he was the

Director of the doctoral programs at WU (Vienna University of Economics and

Business), Austria. He was the Director of the Research Institute for European

Affairs during 1997–2003. His current research interests are in cybernetic agency

theory, normative personality, organizational culture and cultural change in

Europe. He has about 280 publications to his credit in learned journals, has edited

or co-edited about 15 books, and was editor of several book series. Among others,

he is Associate Editor of the European Journal of International Management and

Co-Editor of the European Journal of Cross-Cultural Competence and

Management. He was guest editor of several journals, among others in 2005 of

the Academy of Management Executive, and in 2011 of Cross Cultural

Management: an International Journal.

Maurice Yolles is Professor Emeritus in Management Systems at Liverpool John

Moores University. His doctorate, completed more than three decades ago, was

in mathematical socio-political theory, in particular, the formal dynamics of peace

and conflict. He heads the Centre for the Creation of Coherent Change and

Knowledge, which runs courses and does research into transformational change.

Within this context, he has also been involved in and is responsible for a number

of international research and development projects in Europe and Asia. He has

published three research books, with a fourth in preparation, and more than 250

papers. He is the Editor of Journal of Organisational Transformation and Social

Change. He is founding member of the Organisational Coherence and Trajectory

Project <http://www.octresearch.net>.



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Acknowledgements:

An earlier version of this paper were presented at the BSLab-SYDIC Workshop,

January 2017 in Rome, Italy.

We thank anonymous reviewers, Steven Wallis, Renate Motschnig, Arnold Schuh,

Günter Stahl, Ilan Alon, and BSLab conference participants for good questions and

helpful advice.

Structured Abstract

Purpose:

As Fink and Yolles (2015) have shown, while emotions and feelings arise in the

singular personality, they may also develop a normative dimensionality in a plural

agency. Fink and Yolles (2015) identified the cybernetic systemic principles of how

emotions might be normatively regulated. Here, we build on a generic cultural

socio-cognitive trait theory of plural affect agency (the emotional organisation)

and will show, which affect types theoretically emerge – a sort of “organisational

temperament types”. These types provide orientation for analysis of cultural

differentiation within societies.

Design:

We integrate James Gross’ model of Emotion Regulation with our earlier work on

Normative Personality in the context of Mindset Agency Theory: The agency is a

socio-cognitive entity with attitude, and operates through cognitive traits that

control thinking and decision making. These traits are epistemically independent

and operate on a bipolar scale. If extreme positions are taken then extremal types

can be identified, i.e. for 3 traits a typology of 8 extremal and perhaps pathological

types will emerge.

Findings:

Processes of emotion regulation are supposed to go through three stages: (1)

identification (affect situation awareness); (2) elaboration of affect is constituted



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through schemas of emotional feeling, which include emotion ideologies

generating emotional responses to distinct contextual situations; (3) execution: in

the operative system primary emotions are (a) assessed through operative

intelligence for any adaptive information and the capacity to organise action; and

(b) turned into action, i.e. responses, through cultural feeling rules and socio-

cultural display rules, conforming to emotion ideologies.

Research implications:

This new theory will provide guidance for analysis of cultural differentiation within

social systems (e.g. societies or organisations) and framing multilevel interaction

where smaller collectives (as social systems) are embedded into larger social

systems with a culture, an emotional climate and institutions.

Practical implications:

Understanding interdependencies between cognition and emotion regulation is a

prerequisite of managerial intelligence and strategic cultural intelligence, which is

in demand for interaction and integration processes across social systems.

Strategic cultural intelligence may be grossly defined as the capacity of leading

agents in social systems (e.g. politicians or managers) to find an appropriate and

fruitful balance between action and learning orientation of a social system and to

deploy guidance for individuals or groups of individuals in integration processes.

What is original/ what is the value of the paper?

The paper builds on the recently developed Mindset Agency Theory, elaborating

it through the introduction of the dimension of affect, where traits for two aspects

of personality, cognition and affect, interact and become responsible for patterns

of behaviour. The model provides a framework which links emotion expression

and emotion regulation with cognition analysis. From this, a typology will arise

which allows the defining of ex ante expectations of typical patterns of behaviour

which might arise in given contexts.

Keywords: Agency Theory, Emotional Climate, Mindest Agency Theory, Social

System Temperament, Social Psychology, Self-Regulation.



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Introduction

Personality is a complex component of agency that is composed of affect and

cognition, which in some way interact. This interaction determines the

personality, and establishes a basis for anticipating agency behaviours. Following

Chang-Schneider & Swann (2010), agency personality is the result of interaction

between affect and cognition. This relationship is important, because the

personality that emerges from the complex interactions between affect and

cognition is determined by mental (self-)reflection, with self-certainty functioning

as an important moderator. The theoretical basis for such self-certainty seeking

arises from Swann’s (1987) affect-cognition crossfire model. Affect and cognition

are autonomous systems, but crossfires occur as “processes” between them,

which have mutual impacts. While the self-certainty proposition with its

theoretical underpinning provides a useful approach towards creating potential

for future behaviour that can be adopted as a predictor, the approach does not

provide a specific theory that might explain exactly how the search for self-

certainty occurs.

In this paper, we develop a system of collective personality temperaments (affect

personality types) which arise from a generic cultural socio-cognitive trait theory.

With Mindset Agency Theory, we identified eight cognitive types, which have a

political meaning in social systems (Fink & Yolles, 2016). The same principles can

be applied to our affect agency model (Fink & Yolles, 2015), which was developed

as an extension of James Gross (1998) model of emotion regulation under

application of the principles of Schwarz’s (1994) ‘living systems’ theory.

We also identify three necessary bi-polar normative affect traits, which refer to

self-identification, self-regulation and self-organisation of a social system with a

normative personality, and which in turn are embedded into a higher order social

system providing a cultural and a social environment.

Given the complexity of related terms, at the outset of the paper some

clarifications are needed. In the literature we are finding terms like affect,

emotions, temperaments, etc. for related constructs. Following Swann (1987) we



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use the terms affect, affect system, affect traits, affect mindset types as

corresponding to the terms cognition, cognitive system, cognitive traits, and

cognitive mindset types. We try to avoid the term ‘temperament’, because the

keywords given e.g. for the classical temperaments do not relate only to

emotions, but include also interests and patterns of behaviour. [For a detailed list

of temperament keywords see Appendix Table 2].

Basics of Mindset Agency Theory

In a way, our interests influence our behaviour. Our behaviour is leading to

outcomes, i.e. observable phenomena. In turn, reflection on these outcomes is

influencing our thinking. Thus interests are affected by outcomes of action and

our self-reflection (thinking) about these outcomes. Our values condition our

thinking and behaviour. But, when given values do not lead to desired outcomes,

our interests are inducing change in values. In that sense, values are conditioned

by interests. Some would even argue that interests “are driving” our values (See

Figure 1).

Figure 1. Values, Interests, and Behaviour of a Personality

These basic insights were further developed by Yolles and Isles (2006) and

converted into a more elaborate ‘scientific’ language: A cultural agent is a

dynamic, adaptive, self-organizing, proactive, self-regulating, socio-cognitive

autonomous plural actor that interacts with its social environments. Thoughts are

determinants for patterns of behaviour that develop from personality. Normative



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personality is the result of a culturally derived “collective mind” (Yolles, 2009)

which has both cognitive and affective states, uses information to guide thinking

and actions, and is able to monitor and discriminate its own and others’

feelings/emotions.

For ‘scientific language’ one can find that similar ideas were developed by a range

of authors, who coined different expressions for the same concepts. E.g. in the

context of an organization seen as a normative personality, Figure 1 was

transposed into Figure 2, where the terms ‘autopoiesis’ from Maturana & Varela

(1979) and ‘autogenesis from Schwarz (1997) are used to label the processes in

the model. However, more reading shows that these terms are equivalent to

Piaget’s theoretical considerations (Piaget 1950), which he already had

undertaken in the 1920s. Piaget’s ‘operative intelligence’ turns out to be

equivalent to autopoiesis, and ‘figurative intelligence’ is equivalent to

autogenesis. In a more common language we also could use the term ‘self-

organisation’ for autopoiesis and ‘self-creation’ for autogenesis.

Intelligence is the ability of an agent to appreciate and harness its own knowledge

as information about its environment, to construct new knowledge converted

from information about its experiences, and based on the information to pursue

its goals effectively and efficiently, i.e. to display appropriate behaviour and take

appropriate action in a given context. Thus, within every type of intelligence we

distinguish between action-oriented feed-forward processes and adaptation

oriented learning processes. In Figure 2 upper level arrows from left to right

indicate the action oriented feed-forward processes, and lower level arrows from

right to left indicate adaptive learning processes (Figure 2).

Wherever a cycle is starting, the alternate level process has a cybernetic control

function: a) E.g., let us assume the agency pursues well a defined goal and is

setting action to achieve that goal. After having set an action in an environment,

the agency is receiving response from that environment. When this response

corresponds to the pursued strategy, then the agency may set more of the same

action. If the response does not meet expectations, then the agency is induced to

change its behaviours and actions. b) Let us assume that an adaptive learning

strategy is pursued. An agency may attempt to copy the behaviour of others. Then

the feed-forward process of displaying behaviour and setting action can serve as

a control process, whether the adaptive learning strategy is effective and

appropriate (copied) behaviour can be displayed.



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Figure 2. Viable Systems Model of the Organisation (Yolles 2009).

It is worth mention that the Russian Psychologist Lev Semyonovich Vygotsky with

his writings in the 1920s had very strongly emphasized the importance of adaptive

learning processes for child development (reprinted in Vygotsky, 1994), while

Jean Piaget had more strongly emphasized the creative learning processes

(Piaget, 1950). Yolles (2017) concludes from that divide that while adaptive

learning certainly is of importance, without independent creative learning a child

can never develop individual personality. The same applies to an ‘alliance child’,

i.e. an organisation created by two other organisations. If an alliance child is

founded by two different organisations in order to deal with specific issues, it

cannot resolve these issues by simply copying attitudes of one of the founding

organisations; it has to creatively develop new knowledge and to apply it

successfully.

Generally speaking, as Helmut Nechansky (2006, 2007, 2016) has shown in

‘Elements of a Cybernetic Epistemology’, for goal oriented viable systems the

necessary conditions are that a goal oriented system is an acting system, but also

an observing system where observations are related to goals permitting that a

goal-oriented system can put into effect goal oriented action. Thus, “a goal

oriented system is a system that has: (1) an internally defined goal, (2) the ability

to observe the actual state of a part of its environment, and (3) the ability to act



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on that part of its environment, so that certain properties of that part can be

changed in the direction towards the goal…” (Nechansky, 2006, p 98.)

Thus, in the following we may consider figurative intelligence and the related

processes of self-reflection and self-regulation as the driving forces for immanent

change of social systems, since self-reflection (often also called ‘elaboration’) is

about assessment of situations with respect to survival (viability) and

achievement of desired goals of the personality. Information about goal

achievement emanates from the operative system as adjustment imperatives

indicating that goals are met or not, or that other goals possibly could be pursued.

As a more general aspect, “reflection” is concerned with the assessment of the

general situation of the cultural and the operative environment and its relevance

for the agency. As a more specific aspect, self-reflection is concerned with the

consequences of values and emotions the agency adheres to. One the one hand,

self-reflection has to deal with the strategic options it might have if changing the

dominant paradigm, and the operative capabilities it might have to realize

different options. But, on the other hand, self-reflection is also concerned with

the consequences of the emotions and emotional display, the agency adheres to,

i.e. the strategic options it might have if changing the dominant emotional

attitudes, and the operative capabilities it might have to change emotion

expression (Guo et al. 2016, pp. 34-35).

Modelling Emotion Management

In a series of publications, James Gross was engaged in modelling emotion

regulation (Gross and Munoz, 1995; Gross 1998, Gross and Thompson, 2007;

Gross, 2008). Gross contributed a definition of affect as a “superordinate category

for valenced states” (Gross 1998, 274), which include emotions, emotional

episodes, mood, dispositional states and traits. He formulated a necessary

condition of emotion management, namely the ability to “distinguish regulatory

processes from the targets of regulation” (Gross, 1998, 275) and also addressed

the purpose of emotion regulation: “Emotion regulation refers to the processes

by which individuals influence which emotions they have, when they have them,

and how they experience and express their emotions” Gross (1998:275). This

statement implies that individuals have the capability of creative learning and do

not just adapt to an existing emotional climate.



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Gross (1998:275) developed a definition of emotion regulation which ‘emphasizes

regulation in self’. He identified five sets of emotion regulatory processes:

situation selection, situation modification, attention deployment, cognitive

change, and response modulation. (see Figure 3). This model may be considered

to be an elaboration of the two-way distinction, which he had earlier “made

between antecedent-focused emotion regulation, which occurs before the

emotion is generated, and response-focused emotion regulation, which occurs

after the emotion is generated” (Gross, 1998:281; cf. Gross and Munoz, 1995).

Stage Process Feedback

Situation selection

Situation Situation modification

Attention Attention deployment

Appraisal Cognitive change

Response Response modulation

Figure 3. Gross’ (1998) Model of Emotion Management

Own drawing by the authors, according to Gross (1998)

As an extension of Gross’ model, Fink and Yolles (2015: 834) argue that emotions

emerge from:

(a) an underlying emotional attitude, used to self-identify personality within an

available range of spontaneous and un-reflected emotional reactions;

(b) from feelings, used to self-regulate personality and its displayed repertoire of

emotional expressions in the light of personal interests and strategic goals;



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(c) through a management process that determines which emotions available are

to be expressed through a process of self-organisation.

That leads to the idea of integrating Gross’ model into a living systems framework,

where self-identification refers to the cognitive system, self-regulation to the

figurative system, and self-organisation to the operative system. For the three bi-

polar normative personality traits of the model of the cultural agency (see Guo,

Yolles, Fink, and Iles, 2016) that refer to self-identification, self-regulation and

self-organisation of a “living” social/organisational system, one has to respectively

identify three bi-polar traits that regulate the emotional system in interaction

with the cognitive system.

The cognitive agency model consists of a smaller social whole with a normative

personality, which is embedded into a larger social whole. Each social whole

consists of three subsystems, a cognitive system, a figurative system, and an

operative system. The cognitive system relates to culture, identification

knowledge and self-identification; the figurative system to strategy and goals,

elaboration knowledge (i.e. self-reflection) and self-regulation; and the operative

system to self-organisation and execution knowledge resulting in patterns of

behaviour, deployment of action in the environment, and observation of that part

of the environment where action is taken (Nechansky, 2006, p. 98)

With their intentions, goals and strategies, the embedded smaller social wholes

may constitute the figurative system of the larger social whole; and with their

interaction in the agency operative system they constitute the numerous petty

acts which are at the roots of the common cultural environment. However, there

is also the possibility that a variety of subsystems is interacting within a larger

social whole. Such subsystems have different power, resources, capabilities,

interests and goals. In such a setting, different forms of social co-existence are

emerging, which are at the base of within-culture variations.

In ‘Elements of a cybernetic epistemology’ Nechansky (2007, 2008) shows that

four “modes of coexistence result as a cybernetic necessity out of only four

factors, i.e.:

(1) the number of systems trying to control one controlled system;

(2) the relative positions of their goal-values in relation to each other;



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(3) the relative positions of their goal-values in relation to the actual state of the

controlled system; and

(4) the variety and power of their actions.” (Nechansky, 2008a, p. 85).

These four modes of coexistence are:

“(1) The niche. If a goal-oriented system can act alone upon a controlled system,

without any interaction with other goal-oriented systems.

(2) Conflict. If two or more goal-oriented systems try to realize different goal-

values in one controlled system and the actual state of that system amounts to

deviations in different directions from these goal-values, and neither goal-

oriented system has enough power to achieve its own goal.

(3) Hierarchy. If two or more goal-oriented systems try to realize different goal-

values in one controlled system and one goal-oriented system has enough power

to dominate the other goal-oriented systems as well as the controlled system to

realize its own goal.

(4) Cooperation. If two or more goal-oriented systems act upon one controlled

system and either all share the same goal-values or have different goal-values,

but the actual state of the controlled system amounts to deviations in the same

directions from these goal-values.” (Nechansky 2008a, p.85).

(5) It is important to note that there is ‘submission’ or ‘subordination’ as a fifth

mode, which is a necessary complement to hierarchy. In his article on “The

cybernetics of social change – and history” Nechansky (2008b) in the context of

foreign policy refers to ‘submissive foreign policy’: “Occasionally we find that a

social unit surrenders to a too strong opponent, or decides to merge with another

one to get protection against such an opponent. The resulting mode of

coexistence is the lower position in a hierarchy.” Nechansky (2008b, p.269). Thus,

while this might be the case ‘occasionally’ in foreign policy, we may posit that

wherever there is hierarchy, there necessarily must be submission, too.

Subordination also arises if the social system does not only pursue a single goal,

but a set of goals with different importance assigned to these goals, then there

are some ‘subordinate goals’, which may be sacrificed if resources are required to

satisfy the higher order goals (Nechansky, 2010b, 2017).



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In the last part of this paper, we can show that the theoretically emerging eight

Affect Types are pairwise related to the four Nechansky Types. A thought

provoking finding, which is inviting future research.

In Figure 4 the cognition agency is represented as an independent living system.

It has five bi-polar traits. These belong to the agency as a whole, and can be

divided into two peripheral agency traits, and three central or formative

personality traits. The type values of these traits can be derived from exemplars

in the value literature as shown in Table 1.

Type Agency Trait Trait Bipolar Types Origin

Central/Personality Agency Traits

Cognitive embeddedness vs. autonomy

Sagiv & Schwartz (2007)

Figurative harmony vs. mastery

Operative hierarchy vs. egalitarianism

Peripheral Agency Traits

Cultural sensate vs. ideational Sorokin (1962, 1964)

Social dramatist vs. patterner Shotwell, Wolf & Gardner (1980)

Table 1: Agency Cognition Traits and their Bipolar Types

The Affect Agency personality is as much at the core of the personality as is the

Cognitive Agency personality. Both mutually influence each other. The agency

personality impacts on the use of social/behavioural intelligence as the agency

pursues its goals and interacts with others in its social environment. Cognitive

mindsets and interacting affective mindsets are housed together in a given

system. As the cognitive model has five epistemic independent bipolar traits,

where the alternate poles have an auxiliary function for each other, the same

conditions apply to the affective agency model. Otherwise a consistent living

systems model would not be possible.



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Agency Normative Personality

Cognitive system

Identification knowledge,

Attitudes and conceptual

information

Cognitive unconscious,

self-reference.

Cognitive orientation trait

Operative System

Operative information &

structures facilitating decision and

policy making behaviour.

Cognitive conscious,

self-organisation.

Operative orientation trait

Figurative Intelligence

Operative Intelligence

Figurative System

Figurative information as

schemas (e.g. goals) that include

appreciative information,

ethics & decision imperatives.

Cognitive subconscious,

self-regulation.

Figurative orientation trait

Agency

Operative System

Structures that create

operational

performance as

efficient and effective

directed action under

structural facilitation/

constraint.

Agency self-

organisation

Social orientation

trait

Agency Operative

Intelligence is

influenced by

personality

mindset

Imperative for


adjustment, with impact

on personality mindset

Cultural Figurative

Intelligence

Impulses for cultural adjustment

I1,1

I1,2

I2,1

I2,2

I4,2

I4,1

I3,2

I3,1


adjustment imperatives

Figurative Intelligence

adjustment imperatives

Social

Environment

Social/Behavioural

Intelligence is

influenced by the

social orientation

trait

Note: intelligences Ii,j, order i=1,4 have feedforward or feedback j=1 or 2

Cultural Environment

Cultural beliefs & values.

Collective unconscious, Identity,

cultural self-reference.

Cultural orientation trait

Figure 4 Cognitive Agency - Generic Cognitive Agency Model

Source: Adapted from Yolles & Fink (2014d)

The affect agency is represented in Figure 5 as an autonomous system. It has five

bi-polar affect traits which we derive from exemplars in the literature concerning

emotional climate, emotional intelligence and emotion management, as shown in

Table 2.

Type Agency Trait Trait Bipolar Types Origin

Affect Central/Personality Traits of the agency

Emotional Attitude stimulation vs. containment

Hirschman & Stern (1999; Jallais and Gilet (2010)

Figurative Activation

ambition vs. protection

Jallais & Gilet (2010), Bradley (2000)



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Operative Emotion Management

dominance vs. submission

Knutson (1996), Klinnert et al. (1983)

Affect Peripheral Agency Traits:

Emotional Climate fear vs. security de Rivera (1977), de Rivera & Grinkis (1986)

Social emotion management on others and on self

missionary vs. empathetic

Sloan (2005, 2007)

Table 2: Agency Affect Traits and their Bipolar Types

After a discussion of the connections between affect and cognition in social systems we shall

return to a brief presentation of emotional attitude, figurative activation of feelings, operative

emotion management, and the related three bi-polar traits of normative personality. After

that, we shall present the agency types emerging from a combination of the affect peripheral

agency traits of emotional climate and operative social emotion management.

Cognitive

system

Emotional

attitude

Affect cognitive

orientation trait

Figurative

system

Affective activation

of feelings

Affect figurative

orientation trait

Agency

Operative System

Structures for operational

performance

Affect social

orientation trait

Operative

system

Emotion Management

Affect operative

orientation trait

Imperative for

action

as a reflection

of behavior

Imperative

for reaction

through

adjustment

Sphere of operative personality intelligence

Operative emotional

intelligence

Operative emotional

intelligence imperatives

Figurative emotional

intelligence

Figurative emotional

intelligence

imperatives

Sphere of observable

behavior

Normative Personality

Cultural System

of Environment

Emotional

Climate

Affect cultural

orientation trait

Cultural figurative

intelligence

Cultural figurative

intelligence

imperatives

Social

Environment

Agency mindset

based emotional

behavioural

responses

Figure 5: The Affect Agency



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Connecting Affect and Cognition

Whether cognition and affect systems are autonomous or integrated has been

part of a continuous debate for a couple of decades since the 1970s, without any

seeming resolution, and with little progress. This lack of progress is reflected by

the fact that some texts from the 1980s have been republished more recently

(e.g., Eisenburg, 2015; Ortony et al, 1994).

Some resolution has arisen with the work of Swann et al. (1987), who consider an

accommodation between the two paradigms. This accommodation adopts the

idea that affect and cognition are essentially independent, but are cross-

connected to enable what they call cognition-affect crossfire. It is this mechanism,

which we consider to be appropriate for agency theory since crossfire relates to

processes rather than state conditions, essential for interaction between affect

and cognition. While Swan et al. (1987) did not have a theory that indicates how

the crossfire occurs, we shall posit an entry to an explanation here.

Swan et al. (1987) adopt the proposition that affect and cognition are essentially

independent or, in cybernetic terms, autonomous with proprietary dynamics that

are sensitive to each other as well as environmental contexts. This “sensitivity” to

cross system attributes may occur at various levels. They explore two theories,

one of affect and the other of cognition. Self-consistency theory assumes that

people want others to treat them in a predictable manner (cognition anticipation),

while self-enhancement theory contends that people want others to treat them

in a positive manner (affect anticipation). Swan et al. (1987) have reconciled the

two theories by testing the hypothesis that the two can be related through

different levels of interaction in human subjects.

To do this, they empirically examined certain cognitive processes like recall and

perceptions of the self-descriptiveness of feedback. The findings essentially



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support self-consistency theory. In contrast, measures that had a more affective

flavour (e.g., pleasure or disappointment with feedback) seemed to support the

self-enhancement position. To characterize the interactions between the

cognitive and affective systems, Swann et al. (1987) introduced the term

cognitive-affective crossfire, which refers to a possible conflict between different

outcomes (products) of the cognitive analytical processes and the affective

system, rather than to a conflict between the entire cognitive system and the

entire affective system. They express the opinion that the cognitive system mutes

or transforms the affective response, though they provide no description of a

mechanism for crossfire. However, it is worth noting that James Gross (1998)

model is reflecting the same basic feelings: emotion management is based on

cognitive considerations.

This work by Swann et al. (1987) is elaborated on and supported by Joiner Jr.,

Alfano & Metalsky (1993) and Chang-Schneider & Swann (2010), the intentions of

which are not to discuss the nature of a conceptual model, which is taken as given,

but rather to create predictions concerning certain types of behaviour of people

given something of their psychological profiles. They found that affect-cognition

crossfire is a part of an inherent personality information process. Consistent with

Swann et al. (1987), cognition and affect should be taken as two independent but

interactive state systems, which are interacting only through their operative

systems. Setting their model up in agency mindset theory, we can propose that

crossfire is constituted as a means by which affect influences cognition and

cognition influences affect according to the interactions between the cognition

and affect operative systems shown in Figure 6. The cognition system then

internalises the affect mindset information that is delivered to it, decomposing it

into its elements as it deems appropriate through its operative and figurative

intelligences. Similarly, cognition influences affect. Now Swann et al. (1987)

propose that the structures of the cognitive and affective systems are consistent

with their crossover connection involving a muting or transforming activity. This

is explained by realising that the affect system is adapted for rapid decision-

making processes, while the cognition system is adapted for more reflective

processes. As such the cognition system tends to become increasingly dominant

over time. So, cognitive responses in due course encroach upon affective

responses, and indeed, for cognitions to modify affective experiences. However,

it is not excluded that the opposite may occur, and under certain circumstances

in course of time affect may become dominating.



134

From a theoretical perspective, we can argue that the cognitive system might

operate within a self-affect context determined by its affective personality

mindset, and similarly the affect system (through emotion management) is

influenced by the personality cognition mindset. This would be likely to create

affect/cognition frames of reference for the cognition/affect system that enables

each system to better anticipate the future, and hence creates the capacity to

harmonise cognition and affect. It should be realised here that affect/cognition

personality mindsets arise from generic state traits that constitute state

descriptions of the affect/cognition personality.

The interaction between cognition and affect is internal to the agency, but

external to the affective/cognitive personality. At a state level, this is referring to

the generic systems that compose each agency, the cognition and affect agencies

are only able to interact at an operative level, where cognitive decision making is

influenced by managed emotions. This relationship is shown in Figure 6. Here, the

cultural agency is seen to have a cognition sub-agency in intimate interaction with

its affect sub-agency. Both sub-agencies have personalities, and hence also

personality orientation traits. The interaction between the cognition and affect

personality systems is shown in Figure 6. The interaction between the cognition

and affect personality operative systems occurs through personality mindsets.

The affect personality mindset creates an emotional context, through which the

cognition personality system operates. This context with respect to the agency as

a whole works on a subconscious level. Similarly, the cognition personality

mindset creates a cognition context through which the affect personality system

operates, and it too operates at the agency subconscious level.



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Cognition

system

Self-reference

Cognitive

orientation trait

Cognitive

attitude

Operative

system

Self-organisation

Operative

orientation trait Cognitive decision

making

Cognition operative

intelligence

Cognition operative

intelligence feedback

Figurative

system

Self-regulation

Figurative

orientation trait

Cognitive

schemas Cognition figurative


Cognition figurative

intelligence

Cognition

instrumental

couple

Cognition

Personality

Cognitive

system

Emotional attitude

Emotion activation

Operative system

Action or adaptation

focused

Operative emotion

management

Affective operative

intelligence

Affective operative intelligence

feedback

Figurative system

Affective

self regulation

Motivation activation

Affective figurative


Affective

figurative

intelligence

Affective

instrumental

couple Affective

Personality

The Cognition

personality

The Affect

personality

Cognition personality

mindset type Affect personality

mindset type

Figure 6: Interaction between cognition and affect personalities of the agency

This implies that in healthy personality systems affective figurative system

information would not be directly manifested into the cognition figurative system,

or vice-versa from cognition figurative system to the affect operative system.

However, in personality with pathologies, or when ‘brain is at default mode’

(Damoiseaux et al., 2006; Fox and Raichle, 2007; Motschnig and Ryback, 2016)

this could happen. When this does occur, rationality may fail during emotional

stress since the manifestation of cognitive figurative information into the

operative system gets impeded – as in case of pathologies – or is standardized

irrespective of context - as in case of the ‘brain default mode’.



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Deriving Affect Types - Temperaments

In this section, we derive affect types through combination of the three bi-polar

affect orientation traits of the normative personality.

Emotional attitude resides in the cognitive system. The cognitive domain is

concerned with ‘self-identification’, i.e. creation of patterns of recognition

connected with affect related to a given context. Emotional attitude is guiding the

processes of motivation activation and operative emotion management.

Depending on context a positive or a negative orientation can emerge from

emotional attitude. If some contextual object of attention is emotionally

identified as positive, then the agency is ‘stimulated’ to activate reinforcing

strategies and to pursue appropriate reinforcing action. If negative, then the

agency is stimulated to activate 'containment' feelings, i.e. towards a reduced

level of goals setting or actions of withdrawal from a given context (Fink & Yolles,

2015).

Affective self-regulation resides in the figurative system. While emotional

attitude is guiding the strategic affective self-regulation processes, in the

figurative system motivation is activated: either ambition is emphasized, i.e.

feelings that stimulate elation and assertion; or rather protection, i.e. feelings that

identify and stimulate needs and desires for shelter and support and are

emphasizing survival values. Thus, affective self-regulation identifies goals and

designs strategies directed towards ambition or protection or some state in-

between (cf. Stets & Turner, 2008).

Operative emotion management resides in the operative domain. Grandey, Fisk

& Steiner (2005) note that affective agencies may have an institutional

orientation, within which strong norms are maintained that are intended to

regulate emotion display so that it satisfies institutional roles and standards. E.g.

under conditions of strong institutional orientation, in a climate of dominance

aggressive emotions are displayed by power holders (individuals with inclination

for an upper position in a hierarchy) to enforce dependent behaviours, like



137

compliance with rules and following commands. However, for commands to be

met there must be an alternate behavioural pattern of sub-ordination and

obedience, displayed by individuals who have an inclination towards a lower

position in a hierarchy (Nechansky, 2016).

In a similar vein as in Fink and Yolles (2015, 835) we apply the selective coding

method of Grounded Theory (Strauss and Corbin, 1998, p. 143) for identifying a

coherent range of keywords for the alternate poles of bi-polar traits, which were

identified by Fink and Yolles (2015) but not specified with sufficient further detail.

Thus, we expand the list of items of the source theory. Coherent terms are chosen

after comparison of meanings and parsimonious reduction of the number of

terms through synonym and antonym analysis (see Table 3).

Through combination of the alternate poles we can arrive at eight Affect Mindset

Types. After combination of the six alternate poles, as a second step we undertake

an epistemic mapping (comparison of related terms) with the classical four

temperaments choleric, sanguine, melancholic, phlegmatic. In the literature and

on the Internet, we find some discussion and presentation of blends between the

four classical types choleric, sanguine, melancholic, phlegmatic . We use the terms

Sanguine, Melancholic, Choleric, and Phlegmatic in order to indicate some

similarity between the bi-polar affect traits that are used to define the eight affect

mindset types and the range of keywords which we find for the classical four

temperaments. However, the affect mindset types do not cover the whole range

of keywords supplied for temperaments, which are including values, interests,

goals, preferences, and patterns of behaviour. Thus, the mindset types can only

explain part of the temperaments. Since a certain set of behaviours is included

into a temperament definition, strictly speaking, a “temperament” can be

identified only through observed patterns of behaviour. A temperament

predictive capacity can only be assumed when values and interests and context

remain unchanged. By contrast, mindset types have a predictive value for

behaviours. Thus, when the states of the bi-polar traits change (when values

change) then a change in behaviour can be predicted.

Generic System

Trait Bipolar Type Nature



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Cognitive Emotional Attitude

Stimulation Positive: passionate, emotional sensitive, joy, exuberance, delight, exiting, ecstasy, elation, joviality, open, serenity, intense, independent, creative. Negative: anger, hostility, panic, paranoia, annoyance, rage, disgust, panic, grief (emerges also as outburst from containment).

Containment Dependable, restraint, self-possession, self-containment, self-control, self-discipline, self-government, self-mastery, self-command, moderateness, continence.

Figurative Motivation Activation

Ambition Aspiration, intention, enthusiasm, initiative, aim, goal, desire, hope, wish, enterprise, craving, longing, appetite, ardour, aggressiveness, killer instinct.

Protection Safety, stability, security, shield, defense, immunity, salvation, shelter, safekeeping, conservation, insurance, preservation, safeguard.

Operative Emotion Management

Dominance Control, domination, supremacy, hegemony, power, preeminence, rule, sovereignty, ascendancy, authority, command, dominion.

Obedience Compliance, conformity, submission, subordination, subjection, allegiance, deference, observance, nonresistance, loyalty, devotion, passiveness, fealty, resignation, homage, fidelity.

Table 3: Bi-Polar Emotional Traits of the Affect Agency Personality

While these temperament attributes are useful, here we pursue a variation on

this, since the affect types that emerge from Affect Mindset Agency Theory should

also be compatible with the eight (pathologic) cognitive types developed and

described in detail by Yolles & Fink (2014a, 2014b, 2014c, 2014d). We first

combine the traits and then undertake an epistemic mapping in a pattern

determined by the cultural orientation trait type values, since culture establishes

a field of influence that directs the rest of the affect personality. The results are

four times two variations of the classic temperaments: For Sanguine we can

distinguish ‘Dominant Sanguine’ and ‘Moderate Sanguine’; for Melancholic we

can distinguish ‘Reformer Melancholic’ and ‘Subversive Melancholic’; for Choleric

‘Expansive Choleric’ and ‘Defensive Choleric’; and for Phlegmatic ‘Compliant

Phlegmatic’ and ‘Dormant Phlegmatic’ or ‘Fatalist’ values in Table 4 formulating

affect mindsets as two sets of type orientations, stimulating and containment

orientation. [For a detailed list of the eight affect types and the combined related

affect trait items (keywords) see Appendix Table 1].

Stimulating Affect Type Nature Containment Affect Type Nature

1) Dominant Sanguine Stimulation 5) Expansive Choleric Containment

Ambition Ambition

Dominance Dominance

2) Moderate Sanguine Stimulation 6) Defensive Choleric Containment



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Ambition Protection

Obedience Dominance

3) Reformer Melancholic Stimulation 7) Compliant Phlegmatic Containment

Protection Ambition

Dominance Obedience

4) Subversive Melancholic Stimulation 8) Dormant Phlegmatic (Fatalist)

Containment

Protection Protection

Obedience Obedience

Table 4: Eight Alternate Combinations of Affect Traits of the Personality

Generally speaking, temperaments are constituted as a system for describing the

emotional attribute of a personality, describing its affective component, devoid

of cognition. These attributes are emotional types, which describe major and

lasting emotional personality orientations. These constitute extremal types which

may be seen as pathologies. The rationale for this comes from the conceptual

basis of agency as developed here, which is seen as an autonomous adaptive

system with an affect and a cognition component. As such, temperaments are

reflective of personalities that are incapable of adaptation. As an illustration,

suppose there is a changing situation within a given context. To survive the

personality needs to adapt to the changing situation. It does this by learning and

by cognitively managing its emotions. Not being able to do this endangers the

viability of the personality, and hence of the agency that it is a part of. Cognitive

capabilities are most important for regulation of emotions. Thus, cognitive types

of the personality provide a counterbalance to emotions.

It is important to note that every temperament has advantages and

disadvantages, strengths and weaknesses, as much as every cognitive type has

advantages and disadvantages, strengths and weaknesses. However, the

alternate poles of bi-polar traits are interacting with each other and exert a

mutual auxiliary function (Carl G. Jung, 1921; Blutner & Hochnadel, 2010). That

does apply to both, emotional and cognitive types. Thus, in the literature about

classical temperament types (also labelled the ‘Four Humors’) we can find ample

hints that combinations of temperaments are prevalent and important. Any

individual personality has a ‘major temperament orientation’ and at least one

other supportive ‘subordinate supportive temperament orientation’

(Pseudolonewolf, 2004-2011; Cocoris, 1988, 2008, 2012).



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Emotional and Cultural Climate in the Agency Environment - Affect Agency

Types

Fink and Yolles (2015) briefly touched upon the variety of pathologies which might

emerge in the agency environment. They found that “Kets de Vries and Miller

(1986) had identified five types of pathologic styles prevalent in organizations:

suspicious paranoid; depressive helplessness (avoidant/dependent);

dramatic/charismatic (histrionic/narcissistic); compulsive bureaucratic control;

and detached politicized (schizoid/avoidant)” (ibid., 857-858).

Four of these five pathologic styles emerge from the two bi-polar dimensions,

which we have in our model “fear vs security orientation” for the cultural

environment, and “missionary dramatist vs empathetic orientation” for operative

interaction with the social environment:

(1) Fear combined with missionary: is related to compulsive

bureaucratic control.

(2) Fear combined with empathetic: is related to suspicious paranoid.

(3) Security combined with missionary: is related to dramatic/charismatic.

(4) Security combined with empathetic: is related to depressive

helplessness.

When considering attitudes of individuals which emerge when their groups are

marginalized (Berry et al., 1989) we can find similarities between the notions of

“depressive helplessness (avoidant/dependent)” and those of “fatalism” (cf.

Gross and Rayner, 1985) and of “collective culture shock” (Feichtinger and Fink

1998, Fink and Holden, 2002, 2010).

When comparing the operative-social emotion management traits with the

peripheral agency traits of cognition (Table 5) we find a few similar keywords



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between the agency affect trait ‘Missionary vs. Empathetic’ and the agency

cognition trait ‘Dramatist vs. Patterner’.

Similarities are not easily found between the cultural traits of agency cognition

‘Sensate vs. Ideational’ and agency affect ‘Fear vs. Security’. Such differences may

be seen as a result of epistemic independence of the traits and their alternate

poles, and perhaps need further investigation.

Agency Context

Orienting Trait

Bipolar Trait Values

Keyword Meanings

Cognition

Cultural

Sensate

Senses, utilitarianism, materialism, becoming, process, change, flux, evolution, progress, transformation, pragmatism, temporal.

Ideational

Super-sensory, spirituality, humanitarianism, self-deprivation, creativity of ideas, eternal

Cognition Operative-Social

Dramatist Ideocentric, theatrical, climactic, thrilling, emotional, farcical, impressive, melodramatic, breathtaking, sensational.

Patterner Configurations, relationships, symmetry, pattern, balance, dynamics, collectivism, allocentric.

Affect Cultural Fear Isolation, non-cooperative, insecurity, anxiety, aggression, concern, scare.

Security Trust, confidence, satisfaction, solidarity, encouragement, hope.

Affect Operative- Social

Missionary Imposing, proponent, converter, herald, promoter, propagandist, revivalist.

Empathetic Accepting, compassionate, sensitive, sympathetic.

Table 5: Peripheral Agency Cognition and Agency Traits

Agency Affect Types and Cognitive Agency Mindset Types – A Brief Comparison

There is a view that cognition autonomy and affect stimulation are connected.

Shalom Schwartz, who has created the value concept from which some of the



142

dimensions arise which we are using in this paper, has written in Schwartz (2006)

that pursuing novelty and change (stimulation values) is likely to undermine

preserving tradition values, and further that pursuing tradition values is congruent

with pursuing conformity values, which motivate actions of submission to

external expectations. Since conformity (embeddedness) is connected with

containment, in this paper “intellectual autonomy” and “stimulation” are chosen

as the alternate poles of “embeddedness” and “containment”. This choice is

supported by Cooper et al. (2003: 532) who relate ‘intellectual autonomy’ with

“stimulation”. This is not to deny that there is a relatively close correlation

between intellectual and affective autonomy. However, intellectual autonomy is

correlated with affective autonomy and egalitarianism; and affective autonomy is

correlated with intellectual autonomy and mastery (see Sagiv and Schwartz 2007,

181). Beugré (2007: 72) initially connects ‘stimulation’ with ‘affective autonomy’,

but then he says that the latter is quite closely connected with ‘intellectual

autonomy’. Further to this, Stratis (2008) notes that ‘affective autonomy’ relates

to ‘stimulation’ with ‘self-direction’. In other words, if we connect ‘intellectual

autonomy’ with ‘stimulation’, then this implies that the affect ‘stimulation’ is

cognitively directed primarily at freedom, creativity, curiosity, and broad-

mindedness (as in Table 6) and only secondary to values of ‘affective autonomy’

(exciting life, varied life, pleasure, enjoying life, and self-indulgence). It is also

possible to make connections between embeddedness and containment, as

shown in Table 7. Thus for instance, following Matsumoto (2007), containment is

one of the means by which power holders organize relationships through which

embeddedness occurs.

The two Sanguine types in Table 6 can be subsumed under the label of ‘Mastery

Individualism’. These types are related to “niche players” in the system of

Nechansky (2007) .

1) Combination of Dominant Sanguine and Hierarchical Individualism.

Individuals who support and personally pursue such an orientation find that:

People need someone to lead and thus others have to follow to assure stability.

They are raising arguments in defense of economic inequality, which according to



143

their opinion is arising because of differences in mental, physical, and material

circumstances. Therefore leaders within the society are likely to acquire more

than others, what is just fair.

Related cognitive value orientations are values of social hierarchy and deference:

social recognition and social power, authority, wealth, influential, freedom,

independence, creativity, successful, and ambitious (cf. Fink and Yolles, 2016).

2) Combination of Moderate Sanguine with the cognitive type Egalitarian

Individualism

Individuals who support and personally pursue such an orientation find that: Free

people can take care of themselves. The purpose of liberty is to allow a free people

to be creative, to release the creative energy that is needed, and to strive for

virtue and excellence. Thus, one should get rid of all these taxes, regulations, and

government controls. The state must not engage in needless wars. Freedom is

economic freedom, domestic freedom, freedom of speech, and the freedom to

bear arms. Fair distribution of property can only arise in an undistorted natural

market. Free market operates as mediator of egoistic impulses and is providing

social stability.

Related cognitive value orientations are: freedom, liberty, independence,

creativity, equality of chance, daring, ambitious successful, influential, social

recognition (cf. Fink and Yolles, 2016).

Affect Type Pole of Trait Cognitive Type Pole of Trait

1) Dominant Sanguine Stimulation Hierarchical Individualism

Intellectual Autonomy

Ambition Mastery & Affective Autonomy

Dominance Hierarchy

2) Moderate Sanguine Stimulation Egalitarian Individualism



Obedience Egalitarianism

3) Reformer Melancholic

Stimulation Hierarchic Synergism


Protection Social Reformer Harmony

Dominance Hierarchy



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4) Subversive Melancholic

Stimulation Egalitarian Synergism


Protection Social Anarchist Harmony


Table 6: Comparison of Stimulation Oriented Affect Mindset Types with Individualistic Mindset Types

The two Melancholic Types in Table 6 can be subsumed under the label

“Synergism/Harmony Individualism” . These types are related to inclination

towards “cooperation” as long as common goals can be identified (Nechansky,

2007).

3) Combination of Reformer Melancholic with the cognitive type Hierarchic

Synergism / Social Reformer.

Characteristics: It is rooted in Humanism and refers to the abstract community of

learned men as well as to the knowledge embodied in them. This involves an

implicit consensus about rules and shared ideals of the community of the learned.

The abstract community of the learned – with its claims to altruistic mutual

assistance and constant increase in overall knowledge – intersects and interferes

with concrete institutions with political and social aims of their own.

Related cognitive value orientations are: accept my portion in life, world at peace,

protect environment, unity with nature, world of beauty, broad-mindedness,

freedom, creativity, curious, authority, wealth, social power (cf. Fink and Yolles,

2016).

4) Combination of Subversive Melancholic with the cognitive type Egalitarian

Synergism / Social Anarchist.

Characteristics: Liberté, Égalité, Fraternité. Individual freedom is seen as being

dependent upon mutual support, community, social equality and social

coherence, i.e. social harmony. Social Anarchism declares itself to foster

community self-reliance, direct participation in political decision-making, respect

for nature, and nonviolent paths to peace and justice.

Related cognitive value orientations are: equality, responsible, honest, social

justice, helpful, accept my portion in life, world at peace, protect environment,

unity with nature, broad-mindedness, freedom, creativity (cf. Fink and Yolles,

2016).



145

In Table 7, the two Choleric Types are related to Hierarchic Dominance in

Collectivistic / Populist systems. These types refer to a “hierarchical position”

(Nechansky 2007).

5) Expansive Choleric combined with Hierarchical Populism

Characteristics: strong emphasis on the threats from dangerous ‘others’, most

notably foreigners, immigrants, protection seeking refugees, asylum seekers, and

threats from visible but segregated groups within a given society.

Related cognitive value orientations are: authority, wealth, social power,

obedient, respect tradition, self-discipline, moderate, family security, protect

public image, national security, honour elders, reciprocation of favours, social

order (cf. Fink and Yolles, 2016).

6) Defensive Choleric combined with Hierarchical Collectivism

Characteristics: when collectivist groups, tribes and clans become larger, and/or

when individual members of a community perceive that they may become more

prosperous when assuming control over resources, then moves emerge towards

hierarchical collectivism (hierarchy, embeddedness, harmony) with wealth

accumulation by individuals or small groups at the top of emerging hierarchies.

Related cognitive value orientations are: obedient, forgiving, respect tradition,

self-discipline, moderate, social order, family security, protect my public image,

national security, accept my portion in life, world at peace, authority, wealth,

social power (cf. Fink and Yolles, 2016).

Affect Type Pole of Trait Cognitive Type Pole of Trait

5) Expansive Choleric Containment Hierarchical Populism Embeddedness


Dominance Hierarchy

6) Defensive Choleric Containment Hierarchical Collectivism

Embeddedness

Protection Harmony

Dominance Hierarchy



146

7) Compliant Phlegmatic Containment Egalitarian Populism Embeddedness



8) Dormant Phlegmatic Containment Egalitarian Harmony Embeddedness

Fatalist Protection Collectivism Harmony


Table 7: Comparison of Containment Oriented Affect Mindset Types with Collectivistic Mindset

Types

In Table 7 the two Phlegmatic Types are related to Egalitarian Subordination in

Collectivistic/ Populist systems. These types refer to “subordination” or

inclination towards “hierarchy lower position” as indicated by Nechansky (2016,

p.378).

7) Compliant Phlegmatic combined with Egalitarian Populism

This orientation is reflecting forms of left-wing populism: That means emphasis

on social justice, pacifism, anti-globalization, and anti-capitalism. Left-wing

populism is mainly directed against “the rich”, be it local rich people or foreign

“rich” corporations.

Related cognitive value orientations are: obedient, helpful, honest, responsible,

loyal, equality, moderate, reciprocation of favours, security, social order, social

justice, social recognition (cf. Fink and Yolles, 2016).

8) Dormant Phlegmatic / Fatalist combined with Egalitarian Harmony

Collectivism

This orientation reflects a form of group oriented collectivism with strong

emphasis on egalitarianism in (sometimes voluntary) collective communities:

there is no private property; everyone is responsible for taking care of the needs

of the members of the community and their families.

Related cognitive value orientations are: loyal, equality, accept my portion in life,

protect environment, unity with nature, polite, obedient, forgiving, responsible,



147

helpful, respect tradition, group security, reciprocation of favours, self-discipline,

social justice (cf. Fink and Yolles, 2016).

Discussion

We began this paper with an interest in understanding the relationship between

affect and cognition in agencies, where an agency may be an individual or a

normative collective. We formulated a pragmatic context for this by centring on

the ideas by Chang-Schneider & Swann (2010), who explored agency self-

evaluative processes, like self-verification and self-enhancement. They were

interested in personality decision processes that determine whether cognitive or

affective responses, or a combination, occur as a reaction to a situation. This can

be reframed by asking whether cognitive or affective attributes dominate mental

processes through cognitive self-enhancement, affective self-verification, or

whether some other self-evaluative process might dominate. That is leading us to

consider Swann’s (1987) cognition-affect crossfire model, which attempts to

determine under what conditions personalities select affective verification over

cognitive enhancement. As usually occurs in scientific analysis (especially in

system studies), a separation of the elements is made in order to formulate the

required approach. Consequently, the model of personality is divided into two

autonomous components, affect and cognition. While they may be autonomous,

affects and cognition are not independent from each other and not isolated, but

are rather in some way interactive. Such interaction necessarily requires

composite reactions to be explored.

For Chang-Schneider & Swann’s (2010) model, some mental processes are

perceived to embrace little emotion, like recall and perception of the self-

descriptiveness of feedback. Others embrace affective reactions that refer to

emotional resources and to feedback, such as pleasure or disappointment with

feedback. It assumes that there is a basic distinction across agencies concerning

the nature of social reality and their associated feelings. When an agency has a

positive self-concept, then positive feedback tends to occur, while in negative self-

concept for some agencies negative feedback might be preferential. In affective

reactions, higher levels of depression, anxiety, and hostility occur after receiving



148

negative feedback about themselves. This is very likely not the case with positive

feedback.

In the determination of a self-view, there is also a role of uncertainty, which likely

acts to amplify responses. Thus, the more certain personalities are of their self-

view, the more their cognitive reactions would favour self-verification and the

more their affective reactions would favour self-enhancement. However, the

implications of a less certain self-view are less obvious. Although individuals might

be less inclined to pursue self-verification of uncertain self-views via their

cognitive reactions, it is unclear why uncertainty of that same self-view would

inspire more or less favouring self-enhancement via their affective reactions.

Affectively, no agency enjoys negative feedback, regardless of how firmly they

hold negative views of themselves.

An issue associated with the cognitive-affective model is that it does not allow

predictions to be made concerning responses that are neither only cognitive nor

only affective. Likely, most overt behaviours are influenced by both cognition and

affect, and the cognitive-affective crossfire formulation does not permit a clear

prediction regarding whether such responses would concern self-enhancement.

When referring to self-analysis by an agency of their own self-view, it must be

recalled that we are referring to a subconscious analysis, even while some

attributes of the analysis might be deeper in the subconscious than others.

Despite this, the depth of analysis undertaken by a personality is influenced by

the cognitive resources available and the motivation, which is linked to interests

and goal achievement.

The modelling approach developed in this paper has the potential to explain the

nature of crossfire processes through the system’s intelligences, with a potential

of leading to more profound explanations for the development of self-views.

While the agency has an environmental context that informs its personality, the

two parts of its personality also act as contexts for each other, and they do this

through their affect and cognition mindsets. Adaptive personalities should

therefore be represented through both, adaptive affect and adaptive cognition

mindsets. This said, since mindsets constitute generic/state conditions that arise

from trait values, trait values must therefore be susceptible to change in the type

values that they take. The only way in which his can occur is through a crossfire



149

process. This happens through the network of processes that influence the

intelligences connecting the genetic/state systems within affect and cognition. To

determine the specific nature of this crossfire requires a full understanding of the

network of processes, which in turn will suggest the crossfire mechanisms.

However, this inquiry must be left for a later paper.

Having taken an interest in future research into the crossfire mechanism, we have

to consider the basic aspects of the current modelling exercise. Cultural agency

and the affect agency are living systems that create anchors of viability through

stable culture. The Agency Model consists of three distinct systems: the cognitive,

the figurative and the operative system, which are connected by figurative and

operative intelligence. An agency maintains self-reflective, self-regulative, and

self-organisational processes. An agency is interactively connected with an

environment. The dynamics of a system arise through its intelligences, where

intelligence is the ability of an agent to appreciate and harness its own knowledge

as information about its environment, to construct new knowledge converted

from information about its experiences, and based on the information to pursue

its goals effectively and efficiently. In cybernetic agency theory, self-production is

put into effect through guidance, strategy implementation and behaviour

externalization. In a more narrow view, self-reproduction constitutes a process of

self-duplication or self-repetition. It implies that underlying assumptions,

espoused values and emotions, strategies and operations are recreated in the

same way as they existed before. Thus, the dynamics of an agency emerge from

self-reflection: Self-reflection is about assessment of situations with respect to

survival (viability), achievement of desired goals and alternative goals of the

personality. Self-reflection is concerned with the consequences of the values and

the emotions, the agency adheres to, the strategic options it might have if

changing the dominant paradigm. It can (1) cognitively change goals; and/or (2)

change emotion situations; and/or (3) change emotion displays through operative

emotion regulation. This implies adapting the operative capabilities it might have

to realize different options. In a way the personality struggles with itself, i.e. it’s

alter ego. It enters into a sort of self-negotiation processes, which have to involve

figurative intelligences: cognitive figurative intelligence and affect figurative

intelligence.



150

Conclusion

In this paper we elaborate on Mindset Agency Theory through the introduction of affect

as a second dimension parallel to cognition. We have presented three figures, one of

the cognitive agency, one of the affect agency, and third figure with an interaction

model (crossfire model). Next, we developed eight affect types and after that we

consider that two aspects of personality, cognition and affect, might interact and might

become jointly responsible for patterns of behaviour. The model provides a framework

on how emotion regulation can be linked with cognition analysis. As a combination of

the six alternate poles of the three bi-polar affect traits, we develop a typology with

eight affect types, which can be linked to the previously developed eight cognitive types

of a normative personality. As it turns out, through the examination of keywords of

displayed emotions, the eight affect types are somehow related to the classical four

temperaments. To each of the four classis temperaments, sanguine, melancholic,

choleric, phlegmatic, two different affect types may constitute two sub-categories.

There is also a blatant closeness to Helmut Nechansky’s typology (niche, cooperation,

hierarchy and subordination), which is derived only from four conditions: several

systems trying to control one controlled system, different goal-values in relation to each

other and in relation to the actual state of the controlled system; and the variety and

power of the actions of the controllers. Thus, one cannot exclude that displayed

emotions are also influenced by power, resources, goals and goal achievement.

However, a thorough comparison of mindset agency theory with Nechanky’s theory of

a cybernetic epistemology has to be left for follow-up research.

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Appendix

Type Affect Traits Selection of Items of Affect Traits

Type 1) Dominant Sanguine




Type 2) Moderate Sanguine




Type 3) Reformer Melancholic




Type 4) Subversive Melancholic




Type 5) Expansive Choleric




Type 6) Defensive Choleric





158


Type 7) Compliant Phlegmatic




Type 8) Dormant Phlegmatic; Fatalist




Appendix Table 1: Items of Eight Combinations of the Affect Traits of the Internal Systems of

Personality



159

Temperament Types Temperament Keywords

Sanguine

optimistic, active, social

Bubbly , Social , Displays emotions openly , Changes emotions quickly , Upbeat , Outgoing , Positive , Extroverted , Loves attention , 'Exciting' , Life of the Party , Chatty , Perhaps follows trends , Dramatic , Will try to make people pay attention to them if nobody is , Very emotional, and expresses emotion openly , Flighty , Unreliable , Spontaneous , FUN , Likes more than they dislike , Make you feel comfortable when talking with them , Vain, narcissistic , Makes friends quickly and often; they can make someone into a 'best friend' in mere hours , Naturally physical; 'touchy-feely' , Tends to move on rather than blaming anyone,

Choleric

short-tempered, fast or irritable

Brash, Prone to anger; 'short fuse', Proud , Confident, Forceful , Needs to see results , Gets things done , Doesn't show weakness , Strong , Makes things their business , Likes to be in charge , Likes things their way , Stubborn , Can't admit if they're wrong , Defiant , Demanding , More likely to fight than flee , Tends to show little emotion, other than anger , Passionate , Reliable; sticks by you and holds to promises , Vengeful; they will be your best friend if you stick by them, but turn against them and they'll make a point of making you regret it , Dislikes following , Contrary , Condescending, especially if you try to defy them, Likely to offer advice , Criticises others, Loves winning, likely to humiliate the one they defeated/dominated, gives advice or help which isn't asked for, Tends to blame others

Phlegmatic

Relaxed, peaceful

Meek , Inoffensive , Submissive , Follower , Can't say no , Struggles with decisions; prefers others to decide for them , Shy , Quiet , Listener , 'Boring' , Doesn't assert themselves , Doesn't like change... , ...but will rather change themselves than cause conflict , 'Easygoing' in normal situations... , ...but they panic if put into new situations , Doesn't crave excitement , Tends to show little emotion , Not very passionate , Trustworthy , Low confidence , Fears doing things wrong , Avoids conflict , Finds leading stressful rather than desirable, tends to find *winning* against someone else stressful rather than a reward; they do not seek personal glory, Does not believe they know best, Gives in easily rather than arguing... ...or feels extremely nervous and upset if they do argue, Tends to blame self.

Melancholic

analytical, wise, quiet

Serious , Prone to misery , Emotionally sensitive , Analytical , Critical , Self-deprecating , Needs things to be RIGHT, Creative , Moved to tears by beauty , Bitter , Can have unrealistically high standards , Introverted , Stubborn , Selfish , Easily upset , Rejects others so then they aren't themselves rejected , Very emotional, but keeps emotions inside mostly , Passionate , Holds grudges , Unreliable , Pessimistic , Deep and thoughtful, Prefers planning to spontaneous action , May dislike more than they like , Intense , Corrects others , Reluctant to make friends , Takes ages for them to consider someone a friend , Suspicious; untrusting , Complains OFTEN , Tends to blame self,

Appendix Table 2: Semantic Comparison of Classical Temperaments

Source: Pseudolonewolf 2004 – 2011, The Four Temperaments, Copyright © Pseudolonewolf

2004 - 2011 |Hits: 26,141,928 | Source: http://archive.fighunter.com/?page=temperaments,

access 12 December 2016, 11:25



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161

INTERCULTURAL PROJECT MANAGEMENT – PROCESSES AND METHODS FOR

MULTICULTURAL IT-PROJECTS

Anke Lindemann, Germany

[email protected]

Abstract

The primary goal of this research paper was to examine whether standard project management methods can

be used successfully in multicultural IT-projects, as well as to conceptualise a synergetic project management

approach to provide orientation for project managers. In addition, the goal was to derive a definition of

intercultural project management as no definition could be found which the researcher could identify with. To

reach this goal, firstly, cultural dilemmas in the application of standard project management methods were

researched in relevant literature and reconciled and secondly, expert interviews were conducted to verify the

initial concepts. The result is that standard project management methods are applicable in multicultural IT-

projects if individually adjusted to intercultural aspects. Moreover, a representative definition of intercultural

project management and a synergetic project management approach were created.

Key words: intercultural project management, standard project management methods, synergetic

project management approach, identification and reconciliation of cultural dilemmas, multicultural

IT-projects

1. Introduction and problem

In times of globalisation and digitalisation, collaboration in globally distributed project teams

become more and more common in internationally operating companies. It is not uncommon that

one project team has project members for instance in Germany, India, England and Spain to reduce

costs where possible and to bring the needed expertise together. This way of working is popular in

IT-projects in particular due to the subject of information technology that does not necessarily

require colleagues to be at the same location. Therefore, intercultural project management is now

more important than ever as project managers are challenged to lead projects in the context of

interculturality besides the general challenges of project management. Interculturality is

understood as a ‘reciprocal process of exchange, interaction and understanding which becomes




162

relevant when cultures on a level of groups, individuals and symbols interact with each other and

do not share value orientation, systems of meaning and expertise’ (Barmeyer, 2012, p. 81). Hence,

there could be very differing opinions in a project team about how a project should be managed

successfully. Thus, the research question can standard project management methods be applied in

multicultural IT-projects became evident. And if not, can standard methods be adapted or are

completely new methods needed?

In the literature, no major research studies could be found which analyse if standard project

management methods can be applied in the context of multicultural project teams. Most of the

international or intercultural project management literature includes books and articles either

about the importance of intercultural project management with basic do’s and don’ts (for example

Cronenbroeck, 2004) and or descriptions of cultural differences (for one country, country

comparison or compendium of multiple countries) together with general project management

methods (for example see Kasamanli, 2014 and Köster, 2010). This is a good start for project

managers, but it does not give any concrete ideas and examples on how cultural differences can be

managed in real life, especially when applying project management methods. This can get even

more complicated in multicultural groups where people of more than two cultures come together

and the perception of opinions are even broader. In practice, it can be observed that project

managers use the methods they are used to from homogenous project teams. But, can this be

successful?

2. Goal

Based on the problem described in the previous section the goal has been to investigate whether

standard project management methods can also be used successfully in multicultural IT-projects.

And if not, if adaptions to the methods are sufficient for the intercultural context or if completely

new strategies are needed. In addition, the goal was to conceptualise an approach on how standard

project management methods can be used in multicultural IT-projects to provide an orientation

for project managers. To build a basis for the research the author has derived her own definition

of intercultural project management based on the definition of Koch (2012, p.57).

3. Research design and limitations

To reach the goal the author decided to go through the steps as described in the following figure

1.



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Figure 1. Research design

3.1. Definition of intercultural project management

The first step to define a definition of intercultural project management was important to define

the used terms clearly. As the author could not find terms which met, in her opinion, the demands

of intercultural project management, a new definition based on the definition of intercultural

management from Koch (2012, p.57) and project management definitions from the DIN norms

(2013) was derived.

3.2. Identification and reconciliation of cultural dilemma

To conceptualise the synergetic project management approach it was chosen to use the method

to identify and reconcile dilemmas which was used by Trompenaars and Woolliams (2003) in their

book ‘Business across cultures’ (Trompenaars and Woolliams, 2003). The reason for choosing

reconciled dilemmas was that this method focuses on ‘merging cultural differences to achieve a

balance between the extremes instead of only describing differences’ (Trompenaars and

Woolliams, 2004, p.33). In addition, it was assumed that project managers may often get into

dilemma situations due to the diverse backgrounds of their project members. A dilemma was

understood as a ‘situation where one has to make a choice between two opposing equal

statements’ (Trompenaars and Woolliams, 2004, p. 34). The reconciliation strategies for the

dilemmas served then as a basis to develop suggestions of how project management methods can

be applied in a multicultural context. Adler (2008) worked with a similar process and called it

‘creating cultural synergy’ (Adler, 2008, p.112 and 118). From there the concept received the name

the synergetic project management approach.

For the identification of such dilemmas, a literature review was conducted in which books and

reports about international and intercultural project management were analysed for daily life

situations that were described as difficult by the respective authors. The classification, if the

described situation is a dilemma, according to the definition, or only a critical situation, was defined



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by the researcher because the topics were usually not described in the way of dilemmas or critical

situations. Even though that is was searched for dilemmas critical situations were also noted if the

author thought that these were relevant for the project management in an intercultural context.

The researcher also had to group the topics on a broader level of project management methods as

no explicit literature for the individual project management methods was available. However, this

was not seen as a problem, because enough ideas for the synergetic project management approach

could still be identified. As primary literature, four main books in German served as a basis besides

some other sources. In these books, most of the dilemmas were found: Dörrenberg et al. (2014),

Emmerling (Eds) (2004), Hauser (2013), and Hößler and Spanfeldner (2009). Along with the

literature, also cultural dimensions were used for general cultural dilemmas independent of the

project management methods, because these topics influence the project management indirectly

daily as these are frequent values. The usage of cultural dimensions is controversial, but as they

are used in this case only as a basis and not to derive basic do’s and don’ts, the usage could be

accepted.

The reconciliation process (solution design) was conducted similar to the way Trompenaars and

Woolliams (2003) applied it in their book by starting with one statement and enhancing this one

by the position of the opposing statement with the goal to satisfy both needs and not to harm the

project goal in terms of the project management triangle. Usually it was started with the argument,

which may the one from a German project manager because the target group were German project

managers for the beginning. If this was not obvious, it was started with the argument which is the

closest to one of the dimensions of the CSS (communication style south) (Koch, 2012, p.148) to

cover very common opinions and values. In most of the cases adapting or enhancing current

methods was sufficient for the reconciliation for the researcher and no completely new methods

had to be used. In the search for reconciliation strategies, the author also used her own experience

as a project manager. Moreover, it was tried to find simple solutions that can easily be learned.

And it was assumed that the target group has basic knowledge in cultural differences. Not all

dilemmas could be reconciled completely. Sometimes a compromise was the best solution. This

may be sufficient because working in projects always means working outside of a line organization

in a ‘third room’ which already requires compromises. Figure 2 shows an example of one reconciled

dilemma.



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Figure 2. Example of one dilemma and its reconciliation strategy

3.3. Conceptualisation of a synergetic project management approach

Finally, with the input from the reconciled dilemmas the author designed suggestions of how the

standard project management methods from the DIN norms (2013) can be ideally extended so that

these can also be used in multicultural IT-projects. As additional side deliverables, general criteria

were deducted so that the insights can be used with other project management methods apart

from the German DIN norms and a practical guidance for project leads was conceptualised to

support project managers in their daily life. In addition, it was argued why the suggested

intercultural aspects in the synergetic project management approach should be considered based

on intercultural studies. However, these results are not presented in this summary due to limitation

reasons.

3.4. Expert interviews to answer research question and get feedback on concept

To verify the existence of the identified dilemmas, the applicability of their reconciliation

strategies, as well as the applicability of the synergetic project management approach and to

answer the research question, guided interviews with eight experts were conducted. The method

of expert interviews was chosen in order to ‘collect experience from reality’ (Brosius at al., 2009,

p.18) as not much data for this topic is currently available. The interviewed experts were project

managers with at least one year experience in managing IT-projects in an international and

intercultural context, which was not longer than two years ago. Optional, the experts were



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socialised in Germany and had knowledge in the standard project management methods of the

DIN norms. The experts were collected via contacts from friends and colleagues. Hence, most of

the experts were working for household appliance manufacturers, for IT Service companies or in

the automotive sector.

The interviews were conducted in January 2015, face to face or via skype with a shared screen and

were recorded. Most of the interviews took 60 to 90 minutes. In the interviews guided questions

were used to ensure that the most important questions were answered, but also room for

discussions was given. For the documentation of the interviews it was decided to use the reduced

version of a qualitative content analysis to be able to focus on statements instead of statistics. This

method was seen as a structured approach without spending too much time on interview analysis

as only opinions of the experts were needed. Hence, a structured template was used to collect the

core messages, but not everything was transcribed. Subsequently, the results were paraphrased

and analysed by the author.

3.5. Conclusion and update of concept

Finally, with the result of the expert interviews, conclusions regarding the research question were

drawn and the synergetic project management approach was updated slightly. Both results are

described briefly in following chapter.

3.6. Research limitations

As this topic was not investigated too much in the past, some research limitations, besides only

interviewing eight experts, had to be defined to ensure proper results. To begin with, the research

was restricted to the project type IT-project. Project management is a very broad area and methods

differ between project types. Project management methods as part of the project management

processes can also be very different. There are different standards available for instance the

PMBOK®, PRINCE2® or the DIN norms DIN 69900 and DIN 69901-3 from Germany. The DIN norms

were taken as a basis for this research due to the background of the author. This included the

methods of the categories: project structure, critical path method, effort estimation and project

controlling. As the long version of this paper was written in German primarily German literature

was used and the synergetic project management approach was targeted for German project

managers for the beginning.

4. Findings and results

4.1. Definition intercultural project management



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Since project management was seen in this research paper as a special management variant of

general intercultural management under different conditions. The author derived her intercultural

project management definition from Koch’s definition of intercultural management (Koch, 2012,

p. 57) enhanced with project specific aspects (e.g. project and project management definition by

the DIN norms). Hence, intercultural project management was defined as ‘the professional and

target-oriented arrangement, steering and development of complex structures and processes in

projects, including the entity of project management tasks, -organisation, -techniques, -instruments

(to initiate, define, plan, steer and closing of a project) with the goal to reach the project goal – in

a context which is embossed by a concurrence of minimum two different cultures’ (translated from

master thesis of author). This definition was seen as a representative definition as it shows on one

hand the broad area of management enhanced with the context of culture and on the other hand

project specific aspects like the goal to reach an objective within a defined time, costs and scope

by going through defined project management phases.

To show on a more detailed level how intercultural project management can be realised in practice,

intercultural project management dimensions similar to the ones from Koch (2012, p.67) were

defined which are shown in figure three.

Figure 3. Intercultural project management dimensions

On a higher level, the dimensions for intercultural management and intercultural project

management are the same (see figure 3) due to the similarities between these two management

variants. However, there are specifics on deeper levels. For instance, in the dimension intercultural

management processes the focus lies on process steps (e.g. planning, quality, resources). Here,

especially for project management different approaches are available (e.g. PMBOK®, PRINCE2®,

DIN norms). As these include different steps and phases, no concrete project management



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processes for the intercultural context were specified in this research. It was rather defined to leave

the decision to the project manager which approach with its methods fits best to his or her project

and to define these steps then as his project management processes.

In the interviews with the experts, the derived definition of intercultural project management with

its high-level dimensions could be verified. The definition was seen as valid even though some

dimensions may have different weight per project. In general, it was assumed that in most of the

cases the leadership dimension is the most important one especially in intercultural contexts

according to the experts. This result could be expected as the definition is broad but still represents

the field of research. Unfortunately, the experts were only asked for their opinion towards the

main definition and the high level dimensions. There was not enough time to go into the details of

the dimensions as this was not the main part of the expert interviews.

In order to perform the tasks of intercultural project management, the project manager needs

intercultural project management competence. This was defined in this work as a competence that

consists of ‘general project management capabilities and intercultural social skills which can be

applied in difficult and challenging situations’ (Koch, 2012, p.115). Thereby, intercultural social

skills were defined as ‘competence where a person knows to predict, assess and consider

expectations and reactions of members of foreign cultures during interactions in intercultural

contexts in order to find individual and common goals accepted by all involved participants in an

effective – and ideally also efficient – way.’ (Koch, 2012, p.115)

4.2. Identified dilemmas and reconciliation strategies

It was not an overall goal, but with this research, it could be demonstrated that the method from

Trompenaars and Woolliams (2003) can be used in other areas besides bringing forward changes

in organisational cultures. Here, it could be shown that their method can be applied also with

project management methods. How the method was applied in this research was described in

chapter three. Following a summary of all dilemmas and critical situations which were identified

with their reconciliation strategies including updates after the expert interviews.

Table 1. Summary of all identified and updated dilemmas with their reconciliation strategies

Dilemma Reconciliation strategies

(1) Provide fix parameters vs. common definition of parameters

-Rough project structure is often given by ordering party

-Design or update rough (provided) project structure and create rough project plan

-Review rough project structure and plan with the team



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-Ensure commitment for the provided fix parameters

(2) Detailed vs. rough plan -Create a rough project plan

-Create a detailed plan only for the next phase (e.g. sprint)

-Define clear milestones and deliverables

-Risk analysis

(3)(3a) Strong vs. low commitment towards deadlines or content

-Definition of team rules what deadlines and content parameters are and how these get followed

-Communication of not movable deadlines

(4) Monochrome way of working vs. polychrome way of working

-Individual decision where possible

-Plan in a monochrome way where possible as long as there are no dependencies affected

(5) Optimistic vs. pessimistic effort estimation

-> critical situation now

-Reduced version of the method ‘estimate-talk-estimate’ in peers only

(-Three point method)

(-Risk score and reasons for a risk)

-Risk analysis

(6)(6a) Insisting vs. flexible reaction on deviations towards deadlines or content

-Following of the defined rules

-Rescheduling of tasks within the phases

-Follow-up on stakeholder and environment analysis

-Clear communication of project scope!

-Change management

(7) Frequent vs. seldom project monitoring

-> further investigations needed to verify dilemma

-Schedule regular status meetings where project members present the status of their topics/sub project by themselves

-Schedule regular Jourfix meetings for an informal exchange

(7a) Direct vs. indirect project monitoring

-> further investigations needed to verify dilemma

-Project members enter status self-contained

-Indirect monitoring depending on individual person

(8) Optimistic vs. pessimistic status

-> critical situation now

-Determine the degree of completion of the content in absolute values for performed efforts and calculate completion rate in percentage

-Determine the degree of completion with help of deliverables

NEW: All-rounder vs. specialist To be defined

General dilemmas Reconciliation strategies



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(1) High vs. low context orientation -Team building activities to build trust and relationship adapted continuously with economic methods

(2) High vs. low uncertainty avoidance

-Generation of transparency where possible and wanted – e.g. by definition of rules together in the team

(3) High vs. low power distance -Communication plan

Critical situations Solution design

(1) Detailed & comprehensible goals vs. rough and incomprehensible goals

-Method smart combined with the card method (Bannys, 2012, p. 296-299)

-Iterative wonder question (Bannys, 2012, p. 296-299)

(2) Breakdown of goals top-down vs. bottom-up

-Deduction of goals top-down and verification of them in the team with creativity techniques

(3) Risks are perceived with significant deviations vs. perceived already with small deviations

-Common definition what a risk is and when a risk occurs

(4) Detailed vs. rough documentation of the project

-Common definition what and how the project needs to be documented

(5) Selection of the type of project structure

-Selection of project structure individual per project

(6) Presentation everything in lists vs. in pictures

-Present easy topics in lists

-Show difficult situations in pictures

(7) Effort estimation by experts vs. calculated methods

-Rough estimation based on calculations

-Detailed estimation by experts in peers

(8) Selection of project controlling tools

-Selection of controlling tools depending on the project type and size

In the interviews with the experts, it could be verified that most of the identified dilemmas exist

and that its reconciliation strategies can be applied in practice.

In terms of the dilemmas it was often commented that a dilemma was experienced in the past or

that it could be imagined that the dilemma can occur. In addition, one new dilemma could be

identified (see table 1). However, the researcher faced two challenges. One challenge was that it

was difficult to identify pure intercultural dilemmas which was also recognised by the experts. Most

of the dilemmas were rather project management dilemmas. The reason for this may be the chosen

literature which focused on project management topics and the method from Trompenaars and

Woolliams (2003) which is not purely intercultural, as well. However, this was not seen as a

problem because this reflects the current state of intercultural project management literature and

it also shows that project management and intercultural topics are closely wired and are difficult

to separate. The other challenge was to explain to practisers in a fast way during the interview the



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definition of a dilemma and to be strict in the correct way of using the term by the expert and the

researcher herself. Hence, the researcher is not sure if all experts understood and used the term

in the correct way whereas according to the expert interviews it can be assumed that the dilemmas

exist, but it cannot be sure if these are dilemmas according to definition. However, at least it can

be spoken about critical situations which was sufficient for the derivation of the synergetic project

management approach.

In terms of the reconciliation strategies, the experts could imagine that the methods can be used

in practice. Sometimes the suggested methods were enhanced with some detailed steps or

equivalent methods were suggested. Hence, few updates to the original solutions were sufficient

afterwards. Most of the adaptions were related or depending on the team, the project situation or

individuals. Sometimes even compromises were accepted as the best solution. Another approach

was to avoid to bring someone into a dilemma situation at all.

Finally, the experts commented that the method from Trompenaars and Woolliams (2003) is a very

good method to analyse problems in daily life (especially in written and visualised format like in

this research paper) which should go into the pool of methods for project managers as project

managers deal with dilemmas every day.

4.3. Synergetic project management approach

As described in chapter 3, the project management approach was designed based on the standard

project management methods from the DIN Norms 69900 and 69901-3 enhanced with the results

from the reconciled dilemmas and slightly updated after the expert interviews

Table 2. Synergetic project management approach

Project management method category

Suggestions for the application of the methods

In general - supportive for all methods

-Make clear the importance of the project and the contribution of each project member to the success of the project (see dilemma 1)

-Make clear the challenges of intercultural collaboration (see e.g. dilemma 2)

-Build up trust and an interpersonal level in the project team (see general dilemma 1, dilemma 3, 3a)

-Conduct an environment and stakeholder analysis (see dilemma 6a)

-Setup a communication plan to plan communication activities towards stakeholder (see general dilemmas)



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-Define meanings and rules with the team (especially for topics with potential different opinions) to generate transparency as far as it is accepted by the team (see diverse dilemma)

Project structure

-Breakdown of goals and structure clearly and comprehensible (see critical situation 1), derived from the main goals from the ordering party (see critical situation 2) and review/enhance with the whole team (see dilemma 1, critical situation 2)

-Selection of the project structure individual per project (see critical situation 5)

Project planning -No complex planning of the project in network diagram in the beginning. This is too complex and usually only of benefit for big projects as the notation needs to be known (see dilemma 2)

-Creation of a rough plan only initially (no special notations to be considered) for the whole project and identification of dependencies between the work packages (see dilemma 2)

-Realisation of detail planning only for shorter phases/intervals (e.g. 60-90 days) before each phase by peers. If required and knowledge available network techniques and diverse presentation methods can be used (if possible in pictures, see critical situation 6, dilemma 2)

-Provision of minimum requirements/rules by the project lead (see diverse Dilemma) for the detailed plans of the peers and create a common understanding for planning (see Dilemma 2)

-Enhance planning file with a risk analysis (see dilemma 2)

-Enhance planning file with rules in regards to commitment of deadlines and content parameters (to be defined in the team) and a buffer (explicit and implicit by project lead) (see dilemma 3 und 3a)

-Where possible plan work packages monochrome and/or leave decision to the individual (see dilemma 4)

Effort estimation

-Apply the method project comparison (based on analogy) for the rough estimation only if enough data is available (see critical situation 7)

-Realisation of a detailed estimation with a reduced version of the ‘estimate-talk-estimate’ method in peers (see dilemma 5)

-Optional the three point method and risk score can be used (see dilemma 5)

-Depending on project size also other estimation methods can be applied

Project controlling

-Peers enter themselves their status regarding performed effort in absolute values in the planning list. Degree of completion in percentage can be calculated. Determine status based on deliverables (see dilemma 7a, dilemma 8)

-Give responsibility to reschedule to the peers so that they can reschedule within each phase on their own in case of derivations as long as no milestones or dependencies are affected (see dilemma 6)



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-Arrange regular (e.g. monthly) status meetings with the whole project team to align status and current topics. The status should be presented always by the responsible (see dilemma 7)

-Arrange regular Jourfix meetings for alignments and informal exchange (see dilemma 7)

-Take samples from colleagues where needed. Practice active listening with focus on indirect communication (see dilemma 7a)

-Conduct one-to-one meetings where needed (see dilemma 7a)

-Select controlling tools depending on project type and content (need to be appropriate, simple and understandable) (see critical situation 8)

-Application of the methods MTA and EVA only in big projects (see critical situation 8)

-Follow-up the defined rules regarding commitment towards deadlines and content, e.g. by nominating one particular person to do the follow-up (see dilemma 6 and 6a)

-Stakeholder and environment analysis to recognise changes/influence early (see dilemma 6a) enhanced with professional change management

-Clear communication of project scope (see dilemma 6a) is very important within and outside of the project

-Define meaning and handling of risks (see critical situation 3)

-Define depth of project documentation (see critical situation 4)

With the expert interviews the synergetic project management approach could be identified as

applicable in practice. This was a conclusion due to the fact that most of the dilemmas and their

reconciliation strategies were approved by the experts (only few changes were needed). These

were the basis for the synergetic project management approach. In addition, the experts

commented that recommendations on how project management methods can be used in

multicultural IT-projects, would be a meaningful orientation for them even though these need to

be adjusted to each project.

4.4. Research question

Based on the feedback received from the experts in the expert interviews and the research results

the research question could be answered. According to the experts, standard project management

methods can also be applied in multicultural IT-projects if they are enhanced with intercultural

aspects by the project lead. Enhancements are sufficient; no new methods need to be developed.

The researcher could expect this result as no new methods were applied in the reconciliation of

the dilemmas and in the creation of the synergetic project management approach. However, the

enhancements of the methods with intercultural aspects are a very individual topic and need to be

adjusted by the project lead for each individual project depending on the project situation and



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team constellation, because every project is different. A good way to enhance the project

management methods and to increase the acceptance of their usage in the team is to combine

them with leadership methods. For instance, the accompaniment of project planning activities with

trust building activities. Adjustments to the methods are sufficient because intercultural project

management still takes place in the environment of projects which are characterised by uniqueness

and a defined goal to be reached on time and budget, only in an intercultural context. One expert

commented that ‘a project still has a frame which does not change tremendously with

interculturality’.

As the enhancements of the methods are mainly with the project lead, the requisition for

intercultural project management competence becomes more complex and important. Therefore,

another insight of this research was that it should be more focused on which competences an

intercultural project lead in particular needs and how these can be acquired.

5. Conclusion and further research

Concluding, the goal of this research paper was reached with respect to the results. This paper

shows that standard project management methods can be applied in multicultural IT-projects if

enhanced with intercultural aspects by the intercultural competent project manager, then no new

methods are needed, because small adaptions are sufficient. In addition, a synergetic project

management approach was conceptualised to visualise how standard project management methods

can be applied in multicultural IT-projects.

Based on the results, this research provides a basis for further research. For instance, the provided

concepts, such as the synergetic project management approach but also, the mentioned, general

criteria for any project management methods and the guidance for project managers could be

analysed in detail regarding their applicability in practice (especially with more participants) and

enhanced with experience from more experts. In this research, the application of these concepts were

only verified indirectly via the dilemmas. If these concepts can be established, the concepts should be

provided in a fast and easy way to project managers, so that these can be applied in practice. In

addition, it would be of interest to find out if these concepts can be used also in homogenous and

heterogeneous project teams as well as in other project types to broaden the target group. Another

help for project managers would be to examine which leadership methods can be combined best with

project management methods and to provide examples of how the methods can be combined so that

the project manager can use the methods with the highest efficiency.

Another area which needs additional research are the competences which a project manager of

multicultural projects needs in order to adjust the project management methods to the team, project

and individuals. As competences are a very broad area, it would be helpful to know which of the

competences are the most important ones for the intercultural context in projects and how these can



175

be acquired. In addition, the method from Trompenaars and Woolliams (2003) can be added to the

method pool of project managers.

6. References

Adler, N.J. (2008) International Dimensions of Organizational Behavior, 5th edition, Thomson South-

Western

Bannys, F. (2012) Interkulturelles Management – Konzepte und Werkzeuge für die Praxis, Wiley-

VCH Verlag, Weinheim

Barmeyer, C. (2012) Taschenlexikon Interkulturalität, UTB Vandenhoeck & Ruprecht, Göttingen

Brosius, H.-B., Koschel, F., Haas, A. (2009) Methoden der empirischen Kommunikationsforschung –

Eine Einführung, 5th edition, VS Verlag für Sozialwissenschaften, Wiesbaden

Cronenbroeck, W. (2004) Internationales Projektmanagement, Cornelsen Verlag, Berlin

DIN Deutsches Institut für Normierung e.V. (Eds.) (2013) Projektmanagement – Netzplantechnik

und Projektmanagementsysteme Normen, DIN Taschenbuch 472, 2nd edition, Beuth Verlag Berlin

Wien Zürich

Dörrenberg, F.E., Jeebe, H.-J., Passenberg, J., Rietz, S., Schneider, L. (2014) Internationales

Projektmanagement in der Praxis – Berichte, Erfahrungen, Fallbeispiele, Symposion Publishing GmbH,

Düsseldorf

Emmerling, T. (Eds) (2005) Projekte und Kooperationen im interkulturellen Kontext –

Interdisziplinäre Perspektiven aus Wirtschaft und Praxis, Verlag Wissenschaft & Praxis, Sternenfels



176

Hauser, A. (2013) Interkulturelles Projektmanagement in der arabischen Welt – Ein Ratgeber aus

der Praxis für die Praxis, expert Verlag, Renningen

Hößler, U., Spanfeldner, W. (2009) Projektmanagement in internationalen Teams In: Wastian, M.,

Braumandl, I., van Rosenstil, L. (Hrsg.) Angewandte Psychologie für Projektmanager – Ein Praxisbuch

für die erfolgreiche Projektleitung, Springer Medizin Verlag, Heidelberg

Kasamanli, S. (2014) Cultural Differences affect the Application of Project Management: A case

study analysis of the water pipeline project in Azerbaijan In: Kuenzer, V., Meyer, H. (EDS.) Cross-

cultural Issues in Management Decisions, Kellner Publishing House, Bremen, Bosten

Koch, E. (2012) Interkulturelles Management, UVK Verlagsgemeinschaft mbH, München

Köster, K. (2010) International Project Management; SAGE Publications Ltd, London

PMBOK® (2008), A Guide to the Project Management Body of Knowledge (PMBOK Guide); 4th

German edition, Newtown Square, Pennsylvania (PA)

PRINCE2™ (2009) Erfolgreiche Projekte managen mit PRINCE2™, TSO, Norwich

Trompenaars, F., Woolliams, P. (2003) Business Across Cultures, Capstone Publishing Ltd.,

Chichester

Trompenaars, F., Woolliams, P. (2004) Business Weltweit – Der Weg zum Interkulturellen

Management, Murmann Verlag, Hamburg



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THE ROLE OF LINGUISTICALLY SENSITIVE EDUCATION IN SHAPING CULTURAL

SENSITIVITY

Dr. Karin Martin

Independent consultant, AT

[email protected]

Abstract

This paper reports the results of a Professional Development Program for teachers, elaborated by the

author for an International School in Europe, in order to promote and create a multilingual culture at school.

According to research evidence, the amount of formal schooling in the first language / mother tongue of

second language learners is a stronger predictor than the socioeconomic status of how rapidly students will

catch up in the second language (English). Although the main language of instruction at school is English,

ninety percent of the students who began in the first year were not native English speakers. Thus, the faculty

was faced with the challenge of helping students acquire English while simultaneously celebrating and

supporting their mother-tongue language development. This work confirmed that the benefits of

multilingualism and some key findings in the field of Linguistics need to be communicated more clearly to all

levels of society, especially to teachers and families, if we want to create an environment that celebrate

different languages and cultures.

INTRODUCTION

People emigrate for various reasons, usually searching for a better future. Some migrate by choice,

others because they have no alternative: they are forced to do so by circumstances. These people have a lot

in common. Rebuilding their lives in a new country is not easy. One of the first barriers one must inevitably

face is the linguistic one. Learning the language of the host country is not always easy. However, speaking

the language of a community means also having the opportunity to learn about its culture and its traditions,

its values, its beliefs and its meanings. This often involves a certain willingness to accept differences. In our

turbulent times, being able to accept differences is one of the prerequisite for creating a new European

society, based on respect, tolerance and dialogue among populations. Since there is a strong relationship

between language and individual/national identity, this paper suggests we should strengthen our ability to

acknowledge different languages and therefore different cultures, different ways of thinking and different

ways of living; especially in the school context.

PURPOSE



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During my job as an independent consultant for multilingualism, I’ve developed services to support

different groups of people in the community where I live. I work with families to plan for successful

bilingualism and with schools to provide training for integrating and supporting non-native speakers /

language learners. The purpose of this paper is to report part of my experience as a freelance linguist,

acknowledging the strong need of bridging the gap between research and school practice. In particular, this

paper reports my work at an International School, located in Europe. During my consultancy services we

established our main objectives:

- To develop a professional teacher training with the aim to help teachers develop a culture of multilingualism

at school, recognizing and valuing family languages;

- To make a contribution in filling the gap between research and school practice, by informing the school

community and suggesting activities for a multilingual learning environment.

This paper reports the results of the program.

METHODOLOGY

The work started with an analysis of school and teachers’ needs and the acknowledgement that a

policy of English-only was not good. A proposal for the professional development of teachers was made and

a monthly one-hour workshop series was organized. In particular, six workshops were organized in order to

give theoretical information and practical suggestions about the following topics: language acquisition and

language support, bilingual language development, second language learning, the importance of the mother

tongue, literacy and biliteracy, multilingual development and third culture kids.

FINDINGS

At the end of each session participants were asked to fill in a questionnaire in order to track the

usefulness of the workshops and their previous knowledge. Results show that teachers need to be informed

about the latest research on the topic of multilingual language development; they need help in creating a

multilingual environment and in fostering students’ mother tongues.

One of the main goals of international education is to promote Additive Bilingualism instead of

Subtractive Bilingualism. The first occurs when the child’s home language is not replaced but added to the

language the child is learning. In order to accomplish this, schools need to implement a curriculum that has

a truly international perspective and a pedagogical approach that develops an open attitude to other

cultures.

PRACTICAL IMPLICATIONS



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The practical implications of my work as a linguistic consultant is related to the answer to the following

main question: what steps does a school need to take to achieve a multilingual learning community? First of

all, the entire school community, including administrators and parents, needs to clearly understand and

strongly believe in bilingualism as a resource for the student, the school and society. Furthermore, languages

and cultures have to be visible at school; they have to be integrated in the school curriculum. Moreover,

school staff and parents need to have positive attitudes towards all languages and cultures. And this is

possible once they understand important concepts about language acquisition and language learning, and

once they are aware of current research about language development and bilingualism.

RESEARCH LIMITATIONS

Even if the situation of International Schools might be a little bit different in comparison to state

schools, this project can still be a model for future local initiatives in other schools. It shows that schools and

class teachers always play a decisive part in implementing the curriculum. Integration of immigrant languages

should be one of the most important principles of these curricula. If these languages are acknowledged and

valued, immigrants will benefits from Additive Bilingualism.

WHAT IS THE VALUE OF THE PAPER?

The importance of fostering the mother tongue of language learners in schools has been clearly

acknowledged in the field of linguistics in recent years, however not all schools have organized mother-

tongue programs for their students. „By promoting plurilingual education in their official curricula”, different

countries “make a key contribution to diminishing discrepancy between theory and practice and to putting

the paradigm shift towards plurilingual education in the language classroom into practice” (Darwyai-Hansen

et al. 2015). Furthermore, “to plan a language is to plan society and that language planning is typically

motivated by efforts to secure or maintain interests” (Cooper, 1989). Thus, even if it is unlikely that initiatives

that can lead to more equal and inclusive education policies and education outcomes will be imposed from

above, still they can be initiated at the community level. Social changes happen when communities extend

their aspirations beyond the restrictive language policies of the day.

There is research evidence that integration is achieved more effectively when a person’s own

background is valued, since conflicts and division arise not out of difference, but rather out of denial of the

right and opportunity to be different (Smolicz, 1981). I share the view of some scholars that linguistic diversity

should be actively cherished, since it brings personal, social and economic benefits to individual and

communities, rather than simply be tolerated or worse, ignored or suppressed (Bialystok, 2001).

Keywords: multilingualism, professional development, teachers, mother tongue, language learning.

BIBLIOGRAPHY

Bialystok, E. (2001). Bilingualism in development: Language, literacy, and cognition. In Ed. Bialystok E.,

Bilingualism in development: Language, literacy, and cognition (pp. 1-300). New York, NY: Cambridge

University Press.



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Cooper, R. L. (1989). Language planning and social change. Cambridge: Cambridge University Press. Cited in

Guillemin D. at al. (2015). Multilingualism and literacy – attitudes and policies. Routledge.

Daryai-Hansen, P. G. et al. (2015). Pluralistic Approaches to Languages in the Curriculum: The Case of French-

speaking Switzerland, Spain and Austria. International Journal of Multilingualism, VOL. 12, No. 1, 109-127.

Smolicz, J. J. (1981). Culture, ethnicity and education: Multiculturalism in a plural society. In: Megarry, J. et

al. Eds., World Year Book of Education, 17-36. London: Kogan Page.



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THE BENEFITS OF COMPUTER ASSISTED LANGUAGE LEARNING (CALL) FOR

MIGRANTS AND MIGRANT FAMILIES

Dr. Monica Ward

Dublin City University, IE

Abstract

The trend of migration, particularly migration under difficult circumstances, continues to increase. This paper

looks at the benefits of Computer Assisted Language Learning (CALL) for migrants and migrant families.

Computer Assisted Language Learning (CALL) covers all aspects of using computers in the language learning

process. The paper provides a brief overview of CALL and the benefits of CALL in general. Language is essential

for communication and migrants often do not speak the language of the new country. The paper looks at how

CALL can be of benefits for learning the language of the new country by providing access to online, often free,

resources for learners. It also looks at how CALL can help migrant children learn and maintain their first language

or mother tongue (L1). This is important for family cohesion, cultural and self-esteem issues. Although learning

a language with the help of a teacher is usually preferable, in situations where this is not possible for logistical

or economic reasons, CALL can help learners learn a new language.

1. Introduction

Migration is the movement of people from one area to another. Migration can be internal, with a country or

external, to another country. People migrate for a variety of reasons. Sometimes they migrate to avail of better

or different opportunities, sometimes they migrate for economic reasons and sometimes they migrate because

they are fleeing danger or conflict. The trend of migration, particularly migration under difficult circumstances,

continues to increase in many parts of the world. Wars, including civil and regional conflicts, force people to flee

their homeland. Violence (including high levels of crime) can force people to seek sanctuary in a different place,

either within their own country or somewhere else. Some migrants may be able to speak the language of the

region or country to which they have migrated, and this can help them to work and integrate in their new

community. However, many migrants do not have the luxury of being able to speak the language of their new

place. This could be due to the fact that they did not have the opportunity to learn it due to lack of access to

education, or because they never intended to migrate to another country. Regardless of their reasons for

migrating, it is important for people to be able to understand and speak the language of their new place. This

can be challenging for migrants as they may have limited access to education in their new country for a variety

of reasons e.g. unclear legal status or economic or logistic reasons. In recent years, most of the migrants to



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Europe have come from Syria, Afghanistan, Nigeria and Iraq (UNHCR, 2015), with Somalia, Sudan, South Sudan,

Democratic Republic of the Congo, Central African Republic and Eritrea being the major sources of migrants. The

main countries that (finally) receive these migrants are Germany, Italy, France, Sweden, the UK and Austria.

This paper looks at the benefits of Computer Assisted Language Learning (CALL) for migrants and

migrant families. Computer Assisted Learning (CAL) refers to using computers to help in the

learning process across all subject areas. Other terms such as Technology Enhanced Learning (TEL)

and Educational Technology refer to the same broad topic area. Computer Assisted Language

Learning (CALL) covers all aspects of using computers (and technology) in the language learning

process. This paper provides a brief overview of CALL and the benefits of CALL in general. Language

is essential for communication and migrants often do not speak the language of the new country.

The paper looks at how CALL can be of benefits for learning the language of the new country by

providing access to online, often free, resources for learners. It also looks at how CALL can help

migrant children learn and maintain their first language or mother tongue (L1). This is important

for family cohesion, cultural and self-esteem issues. Although learning a language with the help of

a teacher is usually preferable, in situations where this is not possible for logistical or economic

reasons, CALL can help learners learn a new language.

2. CALL Overview

CALL is a very broad term and covers all aspects of using a computer (in the widest sense) in language

learning. CALL ranges from using a computer as a tool (Levy, 1996), for example, using a word

processer for typing documents as part of the language learning process to CALL tutors (Levy, 1996)

which can be purpose built resources for language learning. It draws on many disciplines including

very technical ones (e.g. Artificial Intelligence (AI) and Natural Language Processing (NLP)),

pedagogically related (e.g. Second Language Acquisition (SLA) and humanities disciplines (e.g.

sociology). CALL resources can be very generic e.g. English for school students or specific e.g. English

for Academic Purposes (EAP) or very specific e.g. English for Spanish speakers. They can be aimed at

all levels of language ability, but most of the resources are aimed at beginners, which is to be expected.

Unsurprisingly, most of the CALL resources available are for students learning the world’s Most

Commonly Taught Languages (MCTLs). These vary depending on geographical location and political

and social factors. In Europe, the MCTLs include French, German and Spanish, but these are dwarfed

by English, which is the most commonly taught language worldwide. The vast majority of CALL

resources are for English, with a reasonable amount of resources available for the MCTLs, but there

are limited resources CALL available for Less Commonly Taught Languages (LCTLs). These LCTLs

include minority languages (e.g. Welsh), but also languages with a large number of speakers (e.g.

Polish). This has implications in the migrant context.



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CALL is not new (Kemeny and T. E. Kurtz, 1968; Hart, 1981) and it tends to try and use new

technologies in its resources as these new technologies emerge. In recent years CALL has expanded

and topics such as Mobile Assisted Language Learning (Stockwell, 2012), MOOCs (Massively Open

Online Courses), personalisation and the use of Web 2.0 resources in the language learning process

have become areas of active research. These new advances are particularly interesting in the migrant

context. The label MOOC has been used to describe online courses that are provided (often free of

charge) to anyone that has access to the internet. In theory, they are massive (and indeed, some are),

but variations of MOOCs (e.g. mini-MOOC, x-MOOC), that are not so massive exist and are also

available to learners. The advantage of a MOOC (in the broadest sense) is that anyone can access it

from anywhere in the world. The student does not have attend in person and the learning can take

asynchronously i.e. the teacher and the learner do not have to physically present at the same time

and in the same place for learning to take place. Often, the student only needs an email address to

start learning. This is particularly beneficial for migrants who may feel uncomfortable with a formal

face-to-face registration process that is normally required for a bricks-and-mortar learning

environment. Migrants who are in an unregulated immigration situation may feel intimidated by such

a registration process and may decide not to pursue the learning opportunity – having access to an

online course overcomes this hurdle.

3. CALL Benefits

CALL has many potential benefits, including increasing motivation, which is especially important in

language learning as many learners are reluctant learners. Many migrants live in difficult

circumstances, especially at the beginning of their stay in a new country and they may be struggling

with other issues and not have language learning as their top priority. Making CALL resources available

to learners at a time and place that suits them could increase their motivation to study the language.

CALL offers privacy to learners, so that they can learn without ‘making a fool of themselves’ in front

of others. This may be an issue for some older learners who may be considered leaders in their own

community and may find it hard to deal with the loss of face associated with not being able to

communicate in the new language. CALL resources enable learners to learn at their own pace,

wherever they want and in a way that suits their own learning style (Ford and Chen, 2001; Entwistle,

2013). This is useful for learners who may not be able to commit to studying at a regular time due to

their life circumstances. Also, while a communicative approach is commonly used by language

teachers as it considered more modern and pedagogically suitable, learners from places that use a

more behaviouristic approach to language learning may prefer to learn in that manner. These learners



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may be able to use CALL resources in a way that suits their learning preferences and this can facilitate

their learning. The important thing is that students learn, not the way in which they learn.

Another beneficial feature of CALL is that it facilitates repetition – something which is not possible

in a classroom setting. This means that learners can listen to the language and instructions about the

language as often as the like. Often language learning resources are provided in the target language

and it can be challenging for learners to understand the explanations. The ability to listen (and view)

resources repeatedly can be useful for learners. Feedback is very important in any learning situation.

Learners benefit by seeing if they have understood something correctly or if they have misunderstood

something and need to continue to explore and learn about a particular topic. Research (Nera et al.,

2001) shows that timely feedback is most beneficial for learners – the closer it is delivered post-

assessment the better. In a traditional classroom setting, it can be difficult for teachers to provide

immediate feedback to all students. Often there may not be enough time to give individualised

feedback to the students and it can be boring for some students and (if provided without care) may

be embarrassing for other students. CALL can provide almost immediate feedback to learners. For

example, the simplest type of formative assessment is probably a quiz with multiple choice questions

(MCQ). It is relatively easy to set up MCQs for students that provide immediate feedback about

answers (correct or incorrect) as well as extra information/feedback to facilitate learning. Although

MCQs are popular with students, their critics argue that they only test lower-order skills and are quite

behaviouristic. However, they have a role in language learning – especially at the beginner level.

CALL can be of benefit to migrants and their families in two ways – by helping them learn a new

language in the country to which they migrated (the target language, L2) and to help maintain their

(first language, L1) while living outside their home country. (Note that L2 (second language) is used

as a shorthand in this paper for the target language, whereas in fact, it may be the learners third

or even fourth language). There are many benefits to being bilingual (and indeed, multilingual)

and migrant families should aim to learn the language of the new country and hold on to their own

L1. The language of the new country (L2) is important for many obvious reasons, but maintaining

their own L1 is important for self-identity and self-esteem issues as well as holding on to the hope

of one day returning home with their families and continuing their life there is that is what they

want and circumstances permit.

4. CALL for the New Language

4.1. Importance of Learning the New Language (L2)



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When people migrate to a new country it is very important that they can communicate in the

language of the new country. They need to be able to speak the language for integration purposes,

to be able to access services and to be able to function in society. It can help them feel less excluded

and enable them to have a better understanding of the culture in the new country. It is especially

important if the person intends or expects to spend more than a short period of time in the country.

Cultural misunderstandings can arise when the migrant’s culture and that of the new country vary

greatly. However, sometimes these differences may not be as great as they appear on the surface,

but without a way of communicating between both cultures, it can be difficult to overcome. Leaving

the migrant’s legal situation aside, in order to be able to work in a country it is (almost) essential to

be able to speak the language. In the first place, it is required in order to be able to get work and

secondly to be able to function in the work environment. For migrants with children, it is important

to be able to communicate in the language in order to be able to interact with education and health

authorities. A comprehensive review of the topic of language and identity is beyond the scope of this

paper, but Tajfel (1981), McNamara (1997), Block (2007) and Norton and Toohey (2011) provide good

overviews and insights into the topic. Norton and Toohey (2011) note key points in this area including

the fact that contemporary identity theories state that learners identities are multifaceted, that power

and the ability to participate in social life are important components in language learning. They also

note that identity, practices and resources are interlinked and that language learning does not depend

just on structural conditions and social constructs. Norton and Toohey (2011) further note that the

sociological construct of investment complements Second Language Acquisition (SLA) theories of

motivation (Dorney and Ushioda, 2009) and highlight the role of imagined communities and imaged

identities in the language learning process. These observations are particularly relevant for migrants

in the current context, as helping them to learn a language is not just about providing access to

teachers and learning resources. The myriad of factors outlined above need to be taken into

consideration as well. Potowski (2007) states that it is important to align the goals of a language

learning program with those of the learners’. CALL resources allow learners to study a language in

different ways and offer an alternative to that of the traditional classroom.

4.2. Language Learning Issues

Competent communication involves the four communication skills: listening, speaking, reading and

writing. In general, the receptive skills (listening and reading) are easier for learners than the

productive ones (speaking and writing). For some learners, listening and speaking are easier than

reading and writing, but this depends on their background, their level of inhibition when speaking and

their previous language learning experience. For example, some migrants may have learnt a second

language orally in their own country (without exposure to the language in written form) and find it

easier to listen to and speak the L2, rather than read and write in it. For example, Spanish has a shallow



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or transparent orthography and letters generally have one regular sound associated with them e.g. in

the word ‘parada’ (stop) all the ‘a’s have the same pronunciation. This makes things easier for

learners. However, in English the word ‘woman’ is pronounced ‘wimin’, with the ‘o’ and the ‘a’ having

the same sound and the word ‘enough’ is pronounced ‘enuf’. Some languages (again English) are not

regular in their pronunciation and same letter or combination of letters can have different

pronunciations in different words. As with many languages, there are regional variations in

pronunciation and this too can be a source of difficult for learners. For example, there are many

different regional accents of English throughout Europe (and the world) and it can be frustrating for

learners who understand a particular accent to find they cannot understand someone speaking in a

different accent. The challenges of learning a new writing system can be even more difficult if the

migrant is not literate in their own language and is not familiar with any writing system. If an adult

has survived in their own country without being literate, they may find becoming literate in a new

language challenging and they may doubt their ability to do so. Apart from the ability to function in

society, it is also important for their family and their self-esteem for migrants to learn the L2.

It is also important for migrant children to have some understanding of the language so that they

have access to education in the new country and to feel less isolated in society. Children learn

language in a slightly different way than adults. They are less afraid of making mistakes and their focus

is on communication (usually with other children) as opposed to forming grammatically correct

sentences. It is easier for children to assimilate into a new culture and this can help with their language

learning and vice versa.

4.3. How CALL can help

As outlined above, CALL can help migrants learn a new language. There are many (free) resources

online for most of the major languages of Europe, including some of the Lesser Used Languages. These

resources include courses, dictionaries and podcasts. While a blended learning scenario (where there

is a mixture of face-to-face and computer based learning) is better, in situations where there is no

access to a teacher, CALL materials can be a valuable resource to the language learner. Often public

libraries and community groups will have publically accessible computers that economically

challenged migrants can use to learn a language. In many countries, there are volunteer-led groups

that can provide free or very low cost language classes to migrants. These face-to-face classes can be

supplemented and enhanced by the use of CALL resources.

CALL materials can range from the very basic (e.g. vocabulary) to the complex (real-time correction of

learner next). Not surprisingly, there are more CALL materials available for the easier-to-develop

resources than the harder ones. There are many free resources available online to learn vocabulary.

Many of these are produced using toolkits (e.g. Quizlet) for teachers, but they can be used by anyone.



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Duolingo is a very popular resource for learning vocabulary and it has vocabulary lists for many

languages. The resources are created by volunteers and made publically available. There are less free

resources for grammar checking aimed specifically at learners, but spelling and grammar checkers are

available with most word processing applications and these can be helpful for learners. It is easier for

computers to check the written form of a language than the spoken form, and there is still a way to

go before there are high-quality applications for checking learners’ speech utterances.

Recent migrants to Europe have arrived from a variety of countries and for a variety of reasons.

Many people have migrated from Asia (e.g. Syria, Iraq, Pakistan and Afghanistan) and Africa (e.g.

Eritrea, Somalia, Nigeria). Migrants from Asia may be literate in a different writing system (e.g. Arabic

or Urdu). Some migrants may not be literate in their L1. Some migrants may have some English

language ability if it was taught as an L2 in their home country. However, many recent migrants to

Europe settle (or are settled) in countries where there is a different L1 (e.g. Germany and Sweden)

and while English can be beneficial for communication and provide an introduction to a European

language, they will still need to learn a new L2. The vast majority of CALL resources are for learners

of English, with fewer resources available to learners of other languages. There are quite a lot of

resources available to learners of German, for example, but they tend to be aimed at a generic learner,

perhaps with some background knowledge of European culture. Resources for a particular group of

leaners (e.g. Eritrean speakers learning German) tend to be very scarce.

5. CALL for the Old Language

5.1. Importance of Maintaining the Old Language (L1)

While it is important for migrants to learn the language of their new country, it is equally important

for them and their children to maintain their L1. Adult migrants will of course be fully competent in

their L1, but, depending on their age at migration, their children may still be learning the language. In

many cases, migrant children will attend school where the L2 is the language of instruction and their

formal education in the L1 will cease. Naturally, the main focus is on ensuring the children’s attain

communicative competence in the L2, rather than maintenance of the child’s L2.

However, care must be taken to ensure that the child’s L1 is valued and that additive bilingualism

rather than subtractive bilingualism is the aim. Additive bilingualism is where someone learns a

second language, but still maintains their L1. Subtractive bilingualism is where an L2 is learnt at the

expense of the L1. Kanno (2008) outlines how additive bilingualism (upper-middle class) and

subtractive bilingualism (immigrants and refugees) can be promoted in the same environment

depending on the perceived socio-economic background of the students. Subtractive bilingualism can



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occur in any situation, regardless of the L1/L2 combination. However, it is more common where the

L1 is perceived to a ‘less important’ language, a minority language or an endangered language and

parents and children feel that the L1 is ‘worthless’ and it is better to learn and speak the L2. A situation

may arise whereby the family may switch over to the L2 as the main language of communication, as

parents may think that it is better for their children. This can be problematic and change the dynamic

of the interpersonal relations. For example, when children realise that their parents are not fluent in

the L2, they may become embarrassed when they speak the L2 in public. (Note that the reverse

situation can also happen, when children are embarrassed when their parents speak to them in the

L1 in public).

It is important for children to be able to speak their parents’ L1. It enables them to maintain

relationships with (extended) family members back home. It allows them to talk to their grandparents

and maintain contact with their friends. While some migrants move to another country with the

intention of staying in that country, many migrants hold on to the idea of returning home to their

country of origin when circumstances permit. If migrant children are to return to their parents’ home

country and settle back into society, it is essential that they can speak the language. Even if migrant

children do not return to their country of origin, knowing their parents’ L1 is a key to understanding

their culture of origin. It is important to children’s self-esteem to be proud of their culture and

knowing the L1 permits them to appreciate their culture.

However, it can be difficult for families and children to maintain their L1 as they migrate. There will

probably be no formal schooling available in the L1 and limited (if any) access to educational resources

in the L1. Parents may decide to use the L2 exclusively at home, then severely limiting children’s

exposure to the L1. Passive exposure to a language is very beneficial for language learning and can

help learners, even if they do not speak the language themselves.

5.2. How CALL can help

CALL can help migrant children learn and maintain their L1. While there may not be very many

resources available, there are usually some resources available. Also, there may be after school or

weekend clubs and organisations that meet up to help children learn and maintain their L1. These

organisations can provide resources online which the learners can access outside of the official

learning context. There is also the possibility of children accessing online materials in their country of

origin (if such resources exist). Tandem learning is where two groups of learners interact and learn

with each other in the L1 of each learner cohort. The interaction can be in read-time (e.g. via Skype),

via audio recordings or in written form. This type of learning usually takes place in formal education

contexts e.g. schools or third-level institutions. However, there could be tandem learning groups set-

up between learners in the new country and in the country of origin.



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With the internet, there is a vast quantity of online material available in many of the world’s

languages. This material could be a potential learning resource. However, if the material is not

comprehensible by learners, it will not be particularly helpful for them. Moreover, if the information

(e.g. from news sites reporting on conflict) is not child-friendly, then it is probably best not to use them

for learning purposes. The rate at which a speaker community manages to maintain and transmit its

language depends on many factors. Cultural prestige, parental choice/determination and access to

the language are key factors in determining if migrant children learn and use their parents’ L1. In the

USA, children of Chinese and Spanish migrants usually learn their parents’ L1. This can be due to

parental pride and attachment to the language (e.g. in the case of Mandarin speakers) and Li and Duff

(2008) explain that ethnic, cultural and linguistic identities are key factors for learners of Chinese. The

availability of the language in everyday life e.g. in the school playground and in the community is

important for L1 maintenance in the case of Spanish. While CALL cannot magically make children

fluent speakers of a language, it can help them by providing access to language resources.

It must be remembered that while some migrants may be fluent in their L1, they may not be literate

in it. CALL can be a way for migrants to become literate in their L1 (and also help their children to

learn it as well). A final observation in this context is that just because someone is a speaker in a

language, this does not automatically imply that they can teach it. A combination of subject

knowledge, pedagogical knowledge and subject pedagogical knowledge is required to teach most

subjects (Shulman, 1987). This means that the teacher knows and understands the subject, knows

about pedagogy in generally, and crucially, knows how to teach the particular subject in question.

CALL can help bridge the gap between a teacher with subject knowledge (e.g. a native speaker of the

L1) and the subject pedagogical knowledge required to teach the language.

6. Discussion

When someone wants or needs to learn a language, it is usually helpful to have a teacher to help

them on their learning journey (Warschauer, 2007). However, for many migrants, access to a teacher

is not possible for financial or logistical reasons. In this situation, CALL can provide useful resources

for migrant learners and help them master the basics of the new language. They can access course

that explain the language for complete beginners, they can access online dictionaries and listen to

audio files and podcasts where they can hear the language being spoken by native speakers. Often,

they have the option of slowing down the speed so that they can listen at a pace at which they can

understand the speaker. There are also online fora where learners can ask questions about a particular

aspect of the language and speakers can provide explanations on linguistic matters. In recent years,

many MOOCs have become available in the most commonly spoken languages of Europe and these

are usually free to learners. While learner discipline is required in the language learning process, for



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those motivated to learn a language, the resources are available and are helpful and can help a learner

gain at least a basic level of competency in a language.

6.1. CALL Challenges

While CALL has many potential benefits, it is not easy to develop good quality CALL resources.

Ideally, a multidisciplinary team would be involved in the design and development process. This team

would include teachers, linguists, pedagogical specialists, software engineers, programmers, User

Interface (UI) designers, Natural Language Processing (NLP) specialists and learners. Obviously,

financial resource are required as well as time to develop the CALL resources and train teachers in the

use of these CALL resources. In many (perhaps most) cases, these multidisciplinary teams are not

available. In these situations, CALL researchers and developers learn from others and may try to use

existing tools to develop new resources.

Another thing to consider is the range of skills and knowledge involved in learning a language.

Students have to learn phonetics (i.e. the sounds of the language), the grammar and syntax (how to

construct correct sentences), the semantics (i.e. the meaning of a sentence) and the pragmatics of a

language. Different types of CALL resources lend themselves to different aspects of language learning.

For example, resources with images, videos and diagrams accompanied by audio components are very

useful for learning the sounds of a language. CALL resources that explain the pragmatics of a language

along with accompanying videos of speaker interaction can be useful for students to learn how

speakers actually communicate when using the language. Also, within the spectrum of CALL resources

from basic websites with static information to real-time feedback on learner input, some are easier to

develop than others. It is obviously easier to develop a static web page with basic text information

about a certain aspect of a language (e.g. a simple vocabulary list). It is much more difficult to develop

a CALL resource that automatically checks and corrects learner input, with the feedback provided in a

way that is understandable by students. It is even more difficult, if the learner input is spoken input.

While there are some resources that can ‘understand’ learner speech, mainly for English, these types

of CALL resources are very difficult to develop and there are not many of them available.

6.2. Learner Needs

Migrants have different reasons and motivations for learning a language. Some may want to learn it

for basic communication and nothing more. They may hope to leave the new country and return

home as soon as the opportunity arises. Others may hope stay in the new country and to work in a



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professional capacity and would need to learn the language to a high level. In terms of language

learning resources in the current migration situation in Europe, there are resources available for

English, French with fewer resources available for Spanish, Italian or Swedish and very few of these

resources available for L1 Arabic, Dari, Pashto, Somali, Nubian, Dinka, Tigrinya or Hausa speakers.

Furthermore, migrants have different abilities and will learn at different rates. They may also have

different learning preferences. In general, it is beneficial for learners to have access to information in

different formats and CALL resources can facilitate this, as often CALL materials have textual and audio

formats. It is important to note that for many CALL resources, the learner has to have internet access

to be able to access the material, although there are downloadable apps available for off-line use. A

final observation is that many CALL resources are aimed at beginner level learners and it can be

difficult for learners to find more advanced resources.

7. Conclusions

Migrants and their families face many difficulties when they move to a new country. One of the first

challenges they face is the need to learn the language of the new country. This can be difficult for

them, but CALL can help them understand the basics of the language and learn in a way that suits

them and their circumstances. CALL can also help migrant families and their children maintain their

L1 and this is equally important for social cohesion and self-esteem reasons. While CALL is not perfect

and there is a need for more CALL resources, it can provide a useful language learning mechanism for

migrants in difficult circumstances.

It is also important for cultural, social and family cohesion reasons for migrant children to learn and

maintain their L1. This will enable them to communicate with the extended family in their country of

origin and enable them to value their culture. Parents want their children to be literate in their L1,

and often migrant children are still learning and becoming literate in their L1 when they migrate and

they will need to continue this process in their new country. CALL can help them learn and maintain

their L1 by providing access to resources and online material. They can communicate with their

extended family back home using computer technology and this will help their L1 maintenance. In

summary, although CALL is not a panacea for migrant language learners, it can be useful for them on

their language learning journey.

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postsecondary level. Chinese as a heritage language: Fostering rooted world citizenry, pp.13-36.

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frameworks, competing discourses. TESOL quarterly, 31(3), pp.561-567.

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Eurocall 2001, Nijmegen, The Netherlands, 2001.

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44(04), pp.412-446.

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pp.1-23.

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learning, 16(3), pp.24-31.

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ARE CULTURALLY DIVERSE TEAMS THE MORE CREATIVE ONES?

Daniel H. Scheible

Rhine-Waal University, Germany

[email protected]

Abstract

The following paper describes a systematic literature review with the purpose of evaluating

the empirical evidence of the assumption that culturally diverse teams are more creative and

innovative than more homogeneous ones. It was found that both quantitative and qualitative

studies have proven that cultural diversity has got an impact on creativity and innovativeness.

However, cultural diversity in itself does not necessarily lead to increased creativity.

Additional personal factors like openness as well as organizational factors like supporting

strategies are needed and have to be managed in order to benefit from diversity. Due to the

research design of this review, it resulted in a narrow selection of empirical studies.

Nevertheless, evidence could be broadened by conducting more studies with a focus on

cultural diversity in innovation teams and its interdependencies with other influencing

factors.

1. Introduction

It has often been stated that diverse teams are more creative than more homogeneous ones

and that they are more likely to develop innovative solutions (Cox and Blake, 1991; Cox, 1994;

Ely and Thomas, 2001; Gardenswartz and Rowe, 2008; Nelson, 2014; Phillips, 2014).

Arguments which support this view suggest that diverse work teams are characterized by a

broad variety of perspectives and experiences and less conformity to established norms. The

result is a marketplace of ideas on which a multitude of varying viewpoints is brought together

and even non-obvious approaches have a chance to be considered (Cox and Blake, 1991).

These thoughts have marked a fundamental shift in the mindset of diversity management

since the former rationale of managing diversity for moral reasons, e.g. avoiding



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discrimination, has been replaced by a business case argument (Lauring, 2013; Scheible,

2015). Organizations are now encouraged to manage diversity for performance reasons. But

do these assumptions really hold?

Early empirical studies which attempted to examine the relationship between team

heterogeneity and innovation date back to the 1960s (e.g. Hoffman and Maier, 1961; Triandis

et al., 1965). Since then, a multitude of empirical studies have been conducted. These studies

vary widely concerning the settings, the included dimensions of diversity, or their research

designs for example.

In their review article Mannix and Neale (2005) examined effects of diversity on team

interaction and performance. They found that some dimensions of diversity rather enable

innovation, whereas others inhibit it. Functional diversity and diversity of skills as well as

experience and information can be classified as enablers, whereas age diversity and diversity

of organisational tenure are among the inhibitors. Interestingly, Mannix and Neale (2005,

p.34) stated that “race seems to produce mixed effects”.

It is the purpose of this paper to review empirical findings of studies which deal with the

impact of cultural diversity on creativity and innovativeness in organisational teams. In doing

so, the review focuses on studies from the realm of business organizations.

2. Methods

A literature research was conducted by using the Ebsco databases “Business Source Premier”,

“PsycArticles” and “Psychology & Behavioral Sciences Collection”. Search results were

analysed and selected if they included an empirical study revealing aspects of creativity

and/or innovativeness in culturally diverse teams and had not been published more than 20

years ago. The references in the detected studies were then used to identify further relevant

articles which meet the inclusion criteria.

Since the criterion of cultural diversity is not equally applied in all the identified studies,

diversity dimensions such as race, ethnicity or nationality were accepted as well. Concerning

the criterion of creativity and innovativeness, many differentiations can be found in literature.

Some authors define innovation as new ideas that have been generated (e.g. Cady and

Valentine, 1999) whereas others argue that this is creativity. Innovation requires the

economic exploitation of an idea (e.g. Drucker, 2002). For some authors, innovations must be

revolutionary in nature; others describe a range from incremental to radical innovations (e.g.

Tidd and Bessant, 2009). Tadmor et al. (2012) distinguish the superadditive effect on dyadic

creativity from individual contributions to joint creativity in a multicultural team. For this



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paper, those differentiations do not play a role since all studies which examine aspects of

team creativity and innovation were eligible.

3. Findings

The earliest empirical study included stems from 1999. Cady and Valentine (1999) examined

the impact of four diversity dimensions (i.e. age, sex, race and function) on innovation in

teams in an US-based Fortune 500 company of the high-tech industry. Based on a real

business problem, a contest with 50 teams was organized. Concerning the dimension “race”,

it was found that increased team diversity led to a higher quantity of generated ideas, but no

significant change in the quality of these ideas could be found. At the same time, the team

members’ perception of teaming consideration decreased with growing cultural diversity.

Orlando et al. (2003) conducted a study in the US American banking sector. They tested the

correlation between “racial” diversity, financial performance, and the innovation climate.

Whereas no general effect of diversity on the performance could be found, a positive

correlation between diversity and financial performance was reported for those banks which

pursued an innovation-focused business strategy. The authors concluded that diversity serves

as a knowledge-based resource that delivers its potential benefits only when set in an

appropriate context.

Based on a qualitative approach (semi-structured interviews), Bouncken (2004) examined the

effect of cultural diversity on creativity in entrepreneurial teams in new ventures. Various

influences of diversity on innovativeness have been identified. Concerning cultural diversity,

the results suggest that differences among team members stimulate communication and

enhance the outcomes of communication processes. New ideas to both incremental and

radical solutions have been reported. In another study with a similar methodological

approach but carried out within a large international company, Bouncken et al. (2016)

observed difficulties stemming from different communication styles. Although, teams learned

to cope with these problems over time, the diversity of power distance emerged as a

persistent disabling factor concerning the creativity in innovation teams.

Baer (2010) has contributed another explanation why (culturally) diverse teams may be more

creative than more homogeneous ones. He applied Granovetter’s strength-of-weak-ties

theory which argues that a network of so called weak ties offers access and exposure to a

broad spectrum of different thought worlds. In his empirical study Baer found a positive

influence of diversity in an “idea network” on creativity. The effect is statistically significant,

but realization of the creative potential also requires that network members possess a high

degree of openness to experience and that the network has the optimal size.



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Obviously, organizational members draw creative input from cooperation in personal

networks which go far beyond their own organization. These networks are used for example

in joint research projects and for the publication of research results. Freeman and Huang

(2014) examined – based on a large sample of over 2.5 million scientific papers – the effect of

ethnic diversity on publication performance. They have found that papers written by authors

of different ethnicity and from various locations get published in journals with a higher impact

factor and receive more citations than those with more homogeneous author teams. When

accepting the impact factor and the number of citations as proxies for innovativeness and

scientific brilliance, it can be concluded that the cultural diversity of author teams leads to a

greater contribution to science.

Another factor that enables diverse teams to exploit their creative potential was examined by

De Dreu and West (2001). Participation in team decision making proved to be a precondition

for the creation of innovative solutions since a lack of participation resulted in disruptive

minority dissent.

The fact that innovation is not a self-propelling item in a setting characterized by high cultural

diversity, led to an increasing interest in the question of how to manage these teams

appropriately. In many organizations diversity trainings are established these days. Homan et

al. (2015) asked whether such diversity trainings have a positive impact on team creativity in

nationality-diverse teams or not. Interestingly, the observed effects are relatively weak, but

they grow the more unfavourable the starting conditions are. That means, in teams with a

high nationality diversity and relatively low pre-training diversity beliefs, diversity training

created a stronger boost of creativity than in teams with lower nationality diversity and more

positive diversity beliefs.

4. Discussion

4.1. Evidence

The findings in principle suggest that cultural diversity is capable of increasing creativity and

innovative solutions in team contexts. However, evidence of this positive effect is still weak.

Most studies confirm that diversity has an effect although oftentimes described as a double-

edged sword: On the one hand, more perspectives and a broader pool of knowledge can be

accessed. On the other hand, diversity leads to communication problems, weaker team

cohesion and more conflict (Milliken and Martins, 1996; Cady and Valentine, 1999; Distefano

and Maznevski, 2000; Mannix and Neale, 2005; Leung and Wang, 2015). This is why most

authors conclude that team diversity requires facilitation – what is in line with a today’s

understanding of managing diversity. Nevertheless, when having a look at empirical findings

concerning the effectiveness of diversity management, it becomes apparent that managerial



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moves must be thoroughly planned since effects depend on many context factors (Homan et

al., 2015).

4.2. Limitations and directions for future research

This review exclusively covers empirical studies which are “business-related”. Creativity and

innovativeness are of course relevant in many other fields such as arts, basic research in the

natural sciences, medicine, etc. What is more, the range of studies that have been selected

may be limited since the basic search results stem from a narrow set of databases.

Another limitation can be seen in the fact that studies which did not explicitly refer to cultural

diversity have been excluded from the review. In some cases it remained fuzzy which

dimensions of diversity the studies addressed. This led to the instance that a broad body of

empirical research with a focus on gender dimensions for example was found but not

included.

The studies that finally were included, examined whether cultural diversity in itself has an

effect on the creativity of a team, but no study asked if differences in the composition of the

cultural diversity of team members have an impact on the creative outcomes. A study which

did not meet the inclusion criterion of examining organisational teams but addressed the

issue of how members of different cultures behave in terms of creativity was conducted by

Chua et al. (2015). They examined the behaviour of participants in a global online

crowdsourcing platform and distinguished members of “tight cultures” from members of

“loose cultures”. Similar research could be undertaken in international work groups. This may

give interesting insights into how to set up and manage teams in order to maximise their

creative potential. On the other hand, this bears the threat of inappropriate stereotyping.

Besides these cultural factors which should be examined in more detail, task characteristics

might have an influence on team creativity and innovativeness (Leung and Wang, 2015). What

is more, the interdependencies between task, cultural factors and other context factors are

still widely unexamined and deserve further attention. Output-oriented, evidence-based

diversity management requires knowledge about these interdependencies especially if teams

lack physical contact and work as virtual teams (Martins et al., 2004). Communication

obstacles may impede the exploitation of different perspectives and experiences but

strengthen identity threats instead.

An aspect that none of the included studies addressed is the dynamic nature of team

processes. Positive and negative impacts of cultural diversity on the outcomes of teamwork

may vary over different stages of team development. For sure, culturally heterogeneous

teams need more time to achieve a work mode of effective cooperation (Watson et al., 1993).



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So, it might be possible that studies suggesting an (in tendency) negative influence of cultural

diversity on team innovativeness took their results from an early stage of the team

development process, whereas those which analysed the creative potential at a later stage

found more positive effects – a hypothesis that needs further research.

5. Conclusions

The results described in this paper substantiate the widely accepted assumption that

culturally diverse teams can be more creative and innovative than more homogeneous teams

if they are managed wisely (e.g. Gassmann, 2001; Roberge and van Dick, 2010). An overview

of factors which additionally have to be taken into consideration is provided. Both personal

attitudes and abilities like openness and good communication skills as well as organizational

conditions like a strategic framework and the chance to participate in decision making, have

an important impact on the outcome of work in a culturally diverse team.

This review can help managers concerned with innovation to understand that there is more

to the creation of superior solutions than just bringing people of different cultural background

together. Otherness of team members can either lead to an increased exchange of new ideas

or foster communicative problems and reluctance to reveal own thoughts. This is why offering

an appropriate setting and actively managing diversity is crucial for the success of culturally

diverse teams.

References

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examination and extension’, Journal of Applied Psychology, Vol. 95 No. 3, pp.592-601.

Bouncken, R. B. (2004) ‘Cultural diversity in entrepreneurial teams: findings of new ventures

in Germany’, Creativity and Innovation Management, Vol. 13 No. 4, pp.240-253.

Bouncken, R. B., Brem, A. and Kraus, S. (2016) ‘Multi-cultural teams as sources for creativity

and innovation: the role of cultural diversity on team performance’, International Journal of

Innovation Management, Vol. 20 No. 1, pp.1-34.

Cady, S. H. and Valentine, J. (1999) ‘Team innovation and perceptions of consideration: what

difference does diversity make?’ Small Group Research, Vol. 30 No. 6, pp.730-750.

Chua, R. Y. J., Roth, Y. and Lemoine, J.-F. (2015) ‘The impact of culture on creativity: how

cultural tightness and cultural distance affect global innovation crowdsourcing work’,

Administrative Science Quarterly, Vol. 60 No. 2, pp.189-227.



199

Cox, T. H. and Blake, S. (1991) ‘Managing cultural diversity: implications for organizational

competitiveness’, Academy of Management Executive, Vol. 5 No. 3, pp.45-56.

Cox, T. H. (1994) Cultural Diversity in Organizations: Theory, Research and Practice, Berrett-

Koehler, San Francisco.

De Dreu, C. K. W. and West, M. A. (2001) ‘Minority dissent and team innovation: the

importance of participation in decision making’, Journal of Applied Psychology, Vol. 86 No 6,

pp.1191-1201.

Distefano, J. J. and Maznevski, M. L. (2000) ‘Creating value with diverse teams in global

management’, Organizational Dynamics, Vol. 29 No. 1, pp.45-63.

Drucker, P. F. (2002) ‘The discipline of innovation’, Harvard Business Review, Vol. 80 No. 8,

pp.95-103.

Ely, R. J. and Thomas, D. A. (2001) ‘Cultural diversity at work: the effect of diversity

perspectives on work group processes and outcomes’, Administrative Science Quarterly, Vol.

46 No. 2, pp.229-273.

Freeman, R. B. and Huang, W. (2014) ‘Collaborating with people like me: ethnic co-authorship

within the US’, NBER Working Paper No. 19905, National Bureau of Economic Research,

Cambridge.

Gardenswartz, L. and Rowe, A. (2008) Diverse Teams at Work: Capitalizing on the Power of

Diversity, Society for Human Resource Management, Alexandria.

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Granovetter, M. S. (1973) ‘The strength of weak ties’, American Journal of Sociology, Vol. 78

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Hoffman, L. R. and Maier, N. R. F. (1961) ‘Quality and acceptance of problem solutions by

members of homogeneous and heterogeneous groups’, Journal of Abnormal and Social

Psychology, Vol. 62 No. 2, pp.401-407.

Homan, A. C., Buengeler, C., Eckhoff, R. A., van Ginkel, W. P. and Voelpel, S. C. (2015) ‘The

interplay of diversity training and diversity beliefs on team creativity in nationality diverse

teams’, Journal of Applied Psychology, Vol. 100 No. 5, pp.1456-1467.

Lauring, J. (2013) ‘International diversity management: global ideas and local responses’,

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Leung, K. and Wang, J. (2015) ‘Social processes and team creativity in multicultural teams: a

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200

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reality of diverse teams in organizations’, Psychological Science in the Public Interest, Vol. 6

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Academy of Management Journal, Vol. 36 No. 3, pp.590-602.



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EXPLORING ORGANIZATIONAL SUBCULTURES AND STRATEGIC GOALS IN THE

CONTEXT OF A GERMAN HIGHER EDUCATION INSTITUTION VIA THE

CONFIGURATION MODEL OF ORGANIZATIONAL CULTURE

Dr. Senem Yazici

Niederrhein University of applied sciences, Germany

([email protected])

Abstract

This comparative organizational subculture study in a single German higher education institution

suggests using a holistic approach when researching into higher education institutions, and to

investigating the organizational cultural effects on strategic goals at the group level. Qualitative data

came from interviews of academic and non-academic members as well as students defined as relevant

stakeholder groups. Factor analytical studies resulted in a six-factor structure with Commitment,

Expertise, Interpersonal Skills, Goal Awareness, Competition Sensitivity and Transparency in the study

program as important goal dimensions. Organizational subculture was measured using the

multidimensional organizational culture approach (Hofstede et al., 1990). The stakeholder groups

have different perceptions of organizational culture. The goal contents are largely homogeneous, but

there are differences in their weighting. The strategic goal dimensions were significantly correlated

with cross-cultural dimensions. The perceptions of organizational culture are a decisive factor to

attach importance for goals. The dimensions were matched with the configuration model of

organizational culture.

Keywords: Organizational culture, Subculture, Strategic Goals, Organizational Behaviour, Higher

Education

1. Introduction



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Current approaches to higher education goals and strategies, particularly in the Anglo-Saxon world,

have been largely management driven, dominated by a focus on measurement. These approaches

almost entirely neglect the organizational culture-centred aspects of higher education, in particular

the academic and administrative work. This research paper aims to contribute to closing this gap in

research.

The German higher education system has undergone a profound transformation in the last two

decades since the introduction of the Bologna Process with the aim to create a European higher

education area. Recent years have brought many legal, funding, economic, research and education

policy changes to the landscape of Germany´s higher education. Setting goals and developing specific

strategies for reaching these goals are steps German higher education institutions can take to

proactively address these emerging challenges to ensure legitimacy and their survivability. However,

higher education institutions interact with multiple and heterogeneous actors in the internal and

external environments and their differentiated expectations and beliefs about appropriate goals and

strategies, rational structures and organizational behaviour. Neglecting this perspective in a higher

education context would limit the abilities to face the complexity and dynamics in the external

environments.

In this paper a subcultural level of analysis was chosen to explore how the university members relate

to each other and their work and to investigate the organizational cultural effects on strategic goals.

It is assumed that universities are composed of diverse multiple subcultures that co-exist and interact

with each other, while each subculture has its distinct set of values, norms and work practices that

guide the behaviour of individuals and groups and provide a frame of reference for the interpretation

of operations inside and outside the university environment.

This study focuses therefore on the following research questions: 1.) Which goals should a higher

education institution pursue in the long term from the perspective of students, academic and non-

academic members? 2.) How do different subcultures perceive practices in a German university? Are

there relations between organizational culture and strategic goals?

2. The cultural view



203

The organizational culture can be studied in the context of different research methods on different

levels of analysis: nations, industries, organizations or groups (Fink & Mayrhofer, 2009). The culture

can be examined using quantitative (e.g. Hofstede, 1980; Hofstede et al., 1990), qualitative (Martin &

Siehl, 1990, Sackmann, 1992) or mixed methods (Dauber, 2011). The organizational culture research

can be classified in three categories: 1.) dimension approach (Hofstede, 1980; Hofstede et al., 1990;

Hofstede, 1998; House et al., 2004; Sagiv & Schwartz, 2007); 2.) interrelated structure approach

(Schein, 1985; Allaire & Firsirotu, 1984; Hatch, 1993; Homburg & Pflesser, 2000) and 3.) typological

approaches (Cartwright & Cooper, 1993; Cameron & Quinn, 1999; Cameron & Quinn, 2006; Cameron

et. al., 2006).

The organizational culture in the higher education system context can be characterized with

subcultural characteristics (Austin, 1990; Becher, 1981; Becher, 1987; Becher & Trowler, 2001; Clark,

1970; Clark, 1972; Davies & Devlin, 2010; Harman, 1989; Lee, 2007; Kuh & Whitt, 1988; McNay, 1995;

Mintzberg, 1980; Rogers, Scaife & Rizzo, 2005: 3, cited in Davies & Devlin, 2010; Silver, 2003; Sporn,

1992; Tierney, 1988; Van Maanen & Barley, 1985; Weick, 1976). Subcultures in higher education

institutions may have characteristics of academic subcultures, institutional and as well as of

disciplinary subcultures (Clark, 1983; Harman, 1989; Lee, 2007). Although the organizational culture

research is a relatively young research field, a variety of approaches, models and concepts have been

developed from the different perspectives of scientific disciplines. While there are linkages between

the single scientific disciplines, such as between organizational theory and cultural theory approaches

(e.g. Hatch & Cunliffe, 2006), the connections, however, are unspecified. It is still unclear which

methods lead to the best results in particular contexts and no consensus has been reached with regard

to general, holistic, dynamic and interdisciplinary approaches.

The configuration model of organizational culture (Dauber, Fink & Yolles, 2012; Guo et al., 2016)

provides a multidisciplinary approach for studying organizational culture, strategy, structure and

patterns of behaviour as well as the impact of external environments on the organization under

conditions of complexity. This configuration model has been chosen as an appropriate frame of

reference to investigate the effects of organizational culture (Hofstede, 1990; Hofstede, 1998),

strategic goals, structure and patterns of behaviour by using multiple configuration models of

organizational culture to compare subcultural perceptions of three different stakeholder groups in a

single German higher education institution (Yazici, 2015).

The stakeholder approaches (Freeman, 1984) have received much attention in the scientific literature

of European higher education since the late 1990´s (Amaral & Magalhaes, 2002; Jongbloed et al., 2008;

Leisyte, 2011). Higher education institutions interact with multiple and heterogeneous actors in the



204

internal and external stakeholder environments and their differentiated and often competing

expectations and ideas about strategic goals, structures and operations (e.g. students, parents,

employers, state, society, accreditation bodies, media, lobby) to gain access and legitimacy with

diverse markets (Kotler & Fox, 1995; Tschirhart, 1996). Institutional actors in external stakeholder

environments may impact the organizational formal strategic goals (Meyer & Rowan, 1978; DiMaggio

& Powell, 1983; Donnelly-Cox & O'Regan, 1999). The rational design based on effectiveness and

efficiency criteria may be an action guiding regulative for ‘reformers’. The organizational culture

research however focuses on values, norms and artefacts which guide the actions of the organization

members. Neglecting this perspective in a higher education context would limit the abilities to face

the complexity and dynamics in the external environments. Dealing with cultural diversity and many

different intellectual attitudes in German universities can be of great importance for gaining and

maintaining legitimacy and inflow of resources. In this study, students, academic members and non-

academic members meet the criteria of definitive stakeholder groups (Freeman, 1984; Mitchell et al.,

1997; Jones et al, 2007; Phillips, 1997; Phillips, 2003). Therefore, high priorities have to be given to

these groups in the competing stakeholder interests. It is assumed that the values and beliefs of

relevant stakeholder groups may shape the strategic goals, structures and operations of a higher

education institution.

Following Daft (2009), Dauber et al. (2012) define the external environment as ‘all elements outside

the boundary of the organization’. The external environment can be differentiated into a ‘task

environment’ and a ‘legitimization environment’ (Donnelly-Cox & O'Regan, 1999; Dauber et al., 2012).

The task-related environment can be associated with the ‘market’ (Dauber et al, 2012: 10). However,

this term is a broad term and describes different operations in several markets or operations that are

only loosely connected to the markets, such as volunteering. According to Freemann (1984) the

environment refers to all stakeholders of an organization (Dauber et al., 2012). ‘Legitimacy’ is a

generalized perception or assumption that the actions of an entity are desirable, proper or

appropriate within some socially constructed systems of norms, values, beliefs, and definitions’

Suchman (1995: 574). Organizations operate under cultural pressure in line with the social values in

order to be recognized as a member of society (Sagiv & Schwartz, 2007). Thus, the organizational

culture is influenced by the national culture in two ways. It is influenced by the society and by the

organization members who carry their perceptions of national values into the organization. It can be

concluded that the organizational culture in line with the national values has a legitimizing effect on

the strategic goals, structures and operations. Consequently, the organizational culture is also

influenced by national values of its stakeholders (Hofstede et al., 1990).

Hofstede et al. (1990) define organizational culture as 'The collective programming of the mind which

distinguishes the members of one organization from another' (Hofstede, 1991: 262). The study of



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organizational culture based on Hofstede’s cross-national study that covered differences in values

among national cultures (Hofstede, 1980; Hofstede, 2001). The dimensions of national culture proved

to be not suitable for comparing organizations (Hofstede, 1990). Organizational culture differs at the

level of practices, whereas national culture differs mainly at the deeper level of values. The differences

between national culture and organizational culture can be explained by the different places of

socialization. While values are acquired in early youth, the practices are learned through socialization

at the workplace or universities which people enter as adults (Hofstede et al., 1990). This is in contrast

to Peters and Waterman (1982) who found the values as the core of organizational culture; the IRIC

study proposes the perceived practices as the core of organizational culture.

The IRIC study (Institute for Research on Intercultural Corporation) took place from 1985 − 1987. Based

on Hofstede´s (1980) cross-national study data Denmark and the Netherlands show similar results

regarding the national culture dimensions and were chosen for the study on organizational culture for

comparing organizations within the same region.

Table 1. National culture dimensions (Hofstede, 1980; Hofstede, 2001)

Germany Denmark Netherlands

Power Distance Index (PDI) 35 18 38

Individualism Index (IDV) 67 74 80

Masculinity Index (MAS) 66 16 14

Uncertainty Avoidance Index (UAI) 65 13 53

Long term Orientation Index (LTO) 83 35 67

The major outcome of the cross-organizational study are six bipolar practices dimensions of

organizational culture, which were derived from a large set of interviews and tested by questionnaire

(Hofstede et al., 1990:303-304):

‘P1 Process-oriented versus Results-oriented’ opposes a concern with means to a concern with goals

‘P2 Employee-oriented versus Job-oriented’ opposes a concern for people to a concern for getting the

job done

‘P3 Parochial versus Professional’ opposes units whose members derive their identity largely from the

organization to units in which people identify with their type of jobs

‘P4 Open system versus Closed system’ describes the communication climate



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‘P5 Loose control versus Tight control’ refers to the degree of internal structuring which affects

behaviour

‘P6 Normative versus Pragmatic’ deals with aspects of customer orientation.

Organizations have cultures but parts of organizations may have distinct subcultures (Hofstede, 1998,

p.1). In this study the perceived practices of students, academic members and non-academic members

of a single German higher education institution will be investigated on a subcultural level of analysis.

The outcome of this investigation will be interpreted in a German context and matched to the

configuration model of organizational culture (Dauber et al., 2012).

3. Strategic goals in context of higher education

The strategy is ‘an organization process, in many ways inseparable from the structure, behavior and

culture of the company in which it takes place’ (Andrews, 1971: 53). Strategies represent the overall

orientation of an organization towards long-term goal achievement (Chandler, 1962; Whittington,

2001). Goals and strategies belong to the unobservable manifestation of organisational culture and

can be allocated to the ‘espoused values’ (Schein, 1985). Goals and strategies shape the interaction

between organizational structure and operations (Dauber et al., 2012). Performance assessment can

lead to an adaption of structures and operations, but profound changes in strategies take place

through learning processes (Argyris and Schön, 1974).

Universities as knowledge-generating organizations are committed to their primary strategic goals

research and teaching. These overall objectives become established by the state and other

institutional socially legitimated actors (e.g. accreditation bodies, evaluation bodies, OECD, UNESCO).

The derivation of strategies is therefore restrictive. Thus, strategic goals in the German higher

education institution may not differ in their primary goal content, but in their weighting according to

importance considering subcultural perceptions of relevant stakeholder groups in comparison to

other higher education institutions. Mertens (2010) raises the issue of how a good university teacher

should be assessed in the future. He presents ten criteria for assessing the skills of teachers and

researchers at universities. Mertens (2010) concerns the status of teaching which higher education

institutions give to teaching as an activity in view of reward programs and in hiring academic staff.

Overemphasis on a research related goal can lead (e.g. publication in high ranked international

journals) to neglecting education related goals (e.g. textbooks, teaching materials) and thus to an

unbalanced resource allocation (e.g. time) (Bailey & Lewicky, 2007; Alutto et al., 2008; Mertens, 2010).



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The multiple goals address different interests of stakeholder groups and they show a possible

bandwidth and diversity of goals in higher education institutions. The stakeholder groups may have

different perceptions of these goals. Presumably, the degree of importance has an effect on the

organizational structures and operations in a university in conjunction with the external environments

and can be fundamentally modified only by changing the cultural perception through learning

processes.

Due to the restrictions in the strategy formation, the range of diverse goals and the limited rationality

in decision-making processes, it cannot be assumed that goals which are based on efficiency and

rationality criteria guide organizational behavior. It is more likely that cultural perceptions guide

patterns of behavior. It is assumed that students, academic members and non-academic members of

the higher education institution have expectations and beliefs about appropriate goals.

4. Phenomenological Manifestation of Organizational Culture

Operations as the phenomenological manifestation of pre-defined strategies are regulated by

organisational structures. According to Schein (1985) operations represent the observable

manifestation of values, goals and strategies as well as structures.

Structures are the manifestation of strategic orientations and regulate information flows, decision-

making and patterns of behavior, i.e. the ‘internal allocation of tasks, decisions, rules, and procedures

for appraisal and reward, selected for the best pursuit of […] [a] strategy’ (Caves, 1980: 64, cited in

Dauber et al, 2012). The organizational structure is the framework by which organizational behaviour

can unfold. On the other hand, structures represent the frame of reference for future strategy

formation processes. Thus, structures affect future strategies (Child, 1972). A feedback relationship

between structure and strategy is assumed (Dauber et al., 2012; Amburgey & Dacin, 1994; Harris &

Ruefli, 2000).

According to Schein (1985) structures and operations represent the manifestation of ‘artefacts’. They

are phenomenological elements that are visible to the members of the internal environment as well

as to the external environment. Schein (1983) concludes that ‘espoused values’ (e.g. strategy) have an

impact on ‘artefacts’ which, in turn, influence ‘espoused values’.



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The organizational structure in universities can be interpreted as ‘loosely coupled systems’ (Weick,

1976), ‘professional bureaucracies´ (Mintzberg, 1980) and as process and project-oriented

organizations (Hammer & Champy, 1994; Hammer & Stanton, 1999, Osterloh & Frey, 2006; Fink, Kiefer

& Neyer, 2009). In addition, Harman (1989) identifies universities ‘as normative organizations’. Weick

(1976) develops the model of ‘loosely coupled systems’ in his research on education systems and

intends to ‘convey the image that coupled events are responsive, but that each event also preserves

its own identity and some evidence of its physical or logical separateness.’ He emphasizes

fragmentation of heterogeneous organizational subunits which are somehow attached. The key

characteristics of a ‘professional bureaucracy’ (Mintzberg, 1980) is a highly-decentralized structure,

minimally formalized and a thin middle-line. ‘The organization hires highly trained specialists − called

professionals − in its operating core and then gives them considerable autonomy in their work. In

other words, they work relatively freely not only of the administrative hierarchy but also of their own

colleagues.’ The process and project perspective gains since the 1990s have become increasingly

important for the theoretical explanation of the dynamics of inter-and intra-organizational structures

in growing organizations which are embedded in dynamic and complex environments with high

service and product diversity. The process and project-oriented perspective (Hammer & Champy,

1994; Hammer & Stanton, 1999; Osterloh & Frey, 2006; Fink, Kiefer & Neyer, 2009) emphasizes the

integration of the combination of functional, process and project-oriented structure to increase

flexibility in bureaucratic organizations.

It is assumed that students, academic members and non-academic members have different cultural

perceptions of structures and operations. It is also assumed that the groups of the academic members

and students in the loosely coupled operating core, which is characterized by flat hierarchies, collegial

and informal structures, probably perceive the organizational structure as weakly controlled and

operations as result-oriented, pragmatic and the institution as an open system. In contrast, the group

of non-academic members in the central organizational units whose organizational structures are

characterized by high hierarchies and formal structures may perceive the organizational structure as

tightly controlled and the operations as process-oriented as well as normative. The university is

probably felt to be a closed system.

5. Method

This study consists of two phases. With regard to the research interest ‘Which goals should a higher

education institution pursue in the long term?’, 140 interviews were conducted with students,



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academic members and non-academic members of a single German higher education institution to

collect qualitative data. The goal suggestions collected from the different perspectives were recorded

based on the assumption that the members in the group have a common vision about the goals for

the higher education institution, but differ from the other groups, and this difference is due to the

organizational cultural perception as a guiding action regulative. The goal suggestions were

transferred to a short form and ranked according to their importance. The rank orders of the

stakeholder groups were compared to each other. Depending on the complexity of these different

categories, these included many examples to describe a proposed goal. Even the terminology was

different among the groups, finally, 39 goals which are of high importance could be identified and

classified into six categories to be included in a questionnaire. The different responses between the

stakeholder groups, but similar responses within the groups can be attributed to the different levels

of knowledge and the relationships of stakeholders to the higher education institution.

Factor analytical studies (principal axis method) on 39 newly developed goal items resulted in a six-

factor structure with Commitment, Expertise, Interpersonal Skills, Goal Awareness, Competition

Sensitivity and Transparency in the study program as important goal dimensions (Table 2). Two

empirical indices regarding the sample’s correlation matrix revealed that it was suitable for factor-

analytic procedures: Bartlett’s test of sphericity was significant, χ2 (25292,99) =741, p<0.0001, and the

Kaiser-Meyer-Olkin measure of sampling adequacy was 0.91. The Scree test (Cattell, 1966) provides

support for an eight-factor solution. Due to the extraction criterion six factors were extracted which

together explain about 57% of the variance. The result of the factor analysis was examined for items

that had salient loadings (>0.30) and did not have equivalent, salient loadings on more than one factor

(Gorsuch, 1983). Finally, 39 items were retained in the factor solution: Commitment (α=0.93),

Expertise (α=0.85), Interpersonal Skills (α=0.84), Goal Awareness (α=0.81), Competition Sensitivity

(α=0.76), Transparency in study program (α=0.76). This newly developed construct was adapted to

the ‘goal and strategy’ domain in the configuration model of organizational culture in the context of a

German higher education institution (Dauber et al., 2012; Yazici, 2015).

Table 2. Factor analysis (39 newly developed items)

Factor Loadings Items Item-Origin α

Commitment 0,86 Recommendation of department/organizational unit Belonging 0,93

0,86 Happy to be affiliated Belonging

0,85 Recommendation of university Belonging

0,80 Overall satisfaction with university Satisfaction

0,79 Identification with university Belonging

0,77 Overall satisfaction with department/organizational unit Satisfaction

0,74 Commitment to university Belonging



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0,74 Identification with department Belonging

0,64 Overall satisfaction with organization (e.g. services) Satisfaction

0,61 Avoiding change to another university Belonging

Expertise 0,87 Research and knowledge transfer into scientific community Research related goals 0,85

0,83 Research and knowledge transfer into practise Research related goals

0,75 Research and knowledge transfer into society and politics Research related goals

0,71 Acquisition of third-party funds Research related goals

0,67 Promotion of region´s economy with spin-off´s Research related goals

0,50 Advancement of entrepreneurial perspective Education related goals

0,46 Innovative learning and teaching materials Education related goals

0,42 Enhancing graduate´s employability Education related goals

0,38 Cooperative partnership Education related goals

0,28 Teaching specialized knowledge in the scientific subject Education related goals

0,23 Competitiveness of the university Perception of competition

Interpersonal Skills

0,87 Advancement of social skills Education related goals 0,84

0,83 Advancement of cultural skills Education related goals

0,77 Advancement of interdisciplinary competences Education related goals

0,58 Consideration of students’ needs in education Education related goals

0,58 Advancement of entrepreneurial perspective Education related goals

0,52 Teaching and supervising students, including obtaining traineeship at home and abroad (advancement of mobility)

Education related goals

0,33 EU-wide comparability of academic qualifications Education related goals

Goal Awareness 0,86 Self-image of the university Goal Publicness 0,86

0,83 Mission statement of the university Goal Publicness

0,74 Strategic plan of the university Goal Publicness

0,61 Research focus of the university Goal Publicness

Competition Sensitivity

0,95 Competition for non-academic members Perception of competition 0,76

0,78 Competition for academic members Perception of competition

0,66 Competition for students Perception of competition

0,22 Importance of selective research and knowledge transfer Perception of competition

Transparency in Study Program

0,58 Offered study program Goal Publicness 0,77

0,56 Curricular structure Goal Publicness

0,14 Teaching more fundamental knowledge in the scientific subject Education related goals

Extraction Method: Principal axis . Rotation: Promax Kaiser-Normalisierung, oblique; * Reverse coded

Organizational culture was measured using multidimensional organizational culture approach

(Hofstede et al., 1990; Hofstede, 1998). To avoid cultural bias and item bias, a German translated

version of the cross-cultural practices dimensions (Bös, 2009) was combined with the newly developed

goal-dimensions (Yazici, 2015) in a questionnaire to explore the cultural effect on strategic goals via

the configuration model of organizational culture (Dauber et al., 2012). The data were collected with

online (Evasys) and hard copy questionnaires. The hard copy version was used to avoid response bias.



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The results were adapted to the ‘goal and strategy’ and ‘operation’ domains in the configuration

model of organizational culture (Dauber et al., 2012).

The data was analyzed by using statistical methods on a group level of analysis, such Cronbach Alpha

measures (Cronbach, 1951), Kruskal-Wallis-Test, T-Tests, effect size calculations and Pearson

correlations.

6. Results

In this study, empirical quantitative research was conducted at a German higher education institution

with 10,714 members. The quantitative feedback of 1,773 members of a German higher education

institution was analyzed (Table 3), 83.7 % preferred the hard copy version and 16.3% the online

questionnaire.

Table 3. Response Rate

Members Total Respondents Respondents in %

Students 10,000 1,483 14.83

Academic members 436 139 31.88

Non-academic members 278 102 36.69

Missing values 49 2.76

Total 10,714 1.773 16.55

Three of six of Hofstede et al. (1990, 1998) dimensions can be replicated in a German higher education

institution setting. Three dimensions did not reach the pre-determined reliability parameter of (α≥.60)

and were thus not suitable for the derivation of valid insights in context of higher education systems.

Poor consistency was found on practices dimensions ‘P3 Parochial vs. Professional’, ‘P5 Loose control

vs. Tight control’ and ‘P6 Normative vs. Pragmatic’. Optimizing attempts to increase Cronbach’s Alpha

coefficients significantly by eliminating one or more items remained unsuccessful. Hence, these

dimensions were no longer taken into consideration during further analysis (Table 5).

The Levene’s test as a precondition of ANOVA was significant (p<.05), indicating that the group

variances are not equal. The assumption of the homogeneity of variances has been violated. The

Welch-James procedure (Welch test) can be used to verify the mean differences (Bortz, 2005: 286).



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The results indicate a significant mean difference. Due to the central limit theorem, the sampling

distribution will be normal or nearly normal, because the sample sizes are large enough (N>30). To

substantiate this test without distribution assumptions, the Kruskal-Wallis test (Table 4) was

conducted with significant results (p<.01).

Table 4. Kruskal-Wallis test

Process-oriented

vs.

Result-oriented

Employee-oriented

vs.

Job-

oriented

Open

System

vs.

Closed

System

Commitment Expertise Inter-

personal

Skills

Goal

Awareness

Competition Sensitivity

Trans-parency

in Study Program

Chi-square 53.40 54.10 51.03 26.29 83.66 57.39 202.00 86.10 23.31

Df 2 2 2 2.00 2.00 2.00 2.00 200 2.00

Asymptomatic

significance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

a. Kruskal-Wallis Test

b. Group Variable: I am

The data indicate significant differences of perceived practices dimensions and strategic goal

dimensions between students, academic members and non-academic members (Table 5).



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Table 5. Cronbach alpha, means and standard deviations in three stakeholder groups

Students Academic Members Non-Academic Members

Construct α M SD M SD M SD

1. Process-oriented vs. Result-oriented 0.70 3.90 0.54 4.22 0.82 3.68 0.66

2. Employee-oriented vs. Job-oriented 0.66 3.58 0.62 3.55 0.92 4.16 0.76

3. Parochial vs. Professional 0.29 3.78 0.58 4.16 0.68 3.26 0.86

4. Open System vs. Closed System 0.60 3.01 0.69 2.90 0.94 3.64 1.00

5. Loose Control vs. Tight Control 0.38 4.02 0.73 4.19 0.81 4.36 0.65

6. Normative vs. Pragmatic 0.21 3.67 0.56 3.79 0.68 3.04 0.99

7. Commitment 0.93 4.07 1.05 4.31 1.07 4.53 0.71

8. Expertise 0.85 4.38 0.74 4.70 0.70 5.00 0.64

9. Interpersonal Skills 0.84 4.68 0.90 5.07 0.72 5.19 0.65

10. Goal Awareness 0.86 3.30 1.22 4.57 1.08 4.47 0.85

11. Competition Sensitivity 0.76 3.08 1.05 3.70 1.03 3.81 0.90

12. Transparency in the Study Program 0.77 4.30 0.95 4.61 0.85 4.57 0.78

The students and academic members scored near the ‘Result-oriented’, the non-academic members

scored near the ‘Process-oriented’ side (t=4.25; p=0.01; p<0.05 one-tailed; d=0.40). The students and

academic members scored near the ‘Employee-oriented’, the non-academic members scored near the

‘Job-oriented’ (t=-7.51; p=0.00; p<0.05 one-tailed; d=0.82) end of the bipolar dimension. The students

and academic members scored near the ‘Open System’ side, the non-academic members near the

‘Closed System’ side of the dimension (t=-6.33; p=0.00; p<0.05 one-tailed; d =0.73).

The data suggest a higher importance according to ‘Commitment’ (t=-5.83; p=0.00; p<0.05; d=0.49),

‘Expertise’ (t=-7.68; p=0.00; p<0.05; d=0.85), ‘Interpersonal Skills’ (t=-7.04; p=0.00; p<0.05; d=0.60),

‘Goal Awareness’ (t=13.81; p=0.00; p<0.05; d=0.88), ‘Competition Sensitivity’ (t=8.74; p=0.00; p<0.05;

d=0.58) and ‘Transparency in the Study Program’ (t=-3.42; p=0.00; p<0.05; d=0.31) in the academic

and non-academic member groups compared to the student group.

The following tables (Table 6-8) show the relationships among the organizational culture dimensions

and the strategic goal dimensions on the subcultural level.

Table 6. Correlations on the subcultural level: Students

Students Correlations

Constructs 1 2 3 4 5 6 7 8 9 10 11



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1. Process-oriented vs. Result-oriented

2. Employee-oriented vs. Job-oriented -0.49**

3. Parochial vs. Professional 0.13** -0.07**

4. Open System vs. Closed System -0.52** 0.50** -0.15**

5. Loose Control vs. Tight Control 0.38** -0.29** 0.14** -0.39**

6. Normative vs. Pragmatic -0.12** 0.23** 0.00 0.11** -0.04

7. Commitment 0.44** -0.45** 0.08** -0.44** 0.33** -0.15**

8. Expertise 0.21** -0.16** 0.10** -0.18** 0.16** -0.03 0.33**

9. Interpersonal Skills 0.25** -0.15** 0.09** -0.19** 0.15** 0.02 0.16** 0.48**

10. Goal Awareness 0.23** -0.34** 0.08** -0.25** 0.22** -0.18** 0.33** 0.10** 0.05*

11. Competition Sensitivity 0.05* -0.15** 0.10** -0.09** 0.10** -0.12** 0.27** 0.23** 0.03 0.28**

12. Transparency in the Study Program 0.29** -0.25** 0.12** -0.36** 0.25** -0.00 0.36** 0.23** 0.22** 0.31** 0.09**

* p < .05; ** p < .01.

The more Result-oriented driven the culture scores on P1, the more the subcultures are committed to

their overall organization. There are relatively strong correlations between Result orientation and

Expertise as well as Interpersonal Skills. The more Job-oriented the subculture scores on P2, the less

is the Commitment and Goal Awareness. The more the university is perceived as an Open System, the

more the student group is committed to the organization (Table 6).

Table 7. Correlations at the subcultural level: Academic Members

Academic Staff Correlations

Construct 1 2 3 4 5 6 7 8 9 10 11





5. Loose Control vs. Tight Control 0.60** -0.42** 0.38** -0.57**

6. Normative vs. Pragmatic 0.14 0.05 0.10 -0.11 0.11

7. Commitment 0.48** -0.48** 0.18* -0.46** 0.27** -0.22**

8. Expertise 0.19* -0.29** 0.20** -0.32** 0.16* 0.10 0.13

9. Interpersonal Skills 0.06 -0.10 0.05 -0.14* 0.06 0.09 0.01 0.56**

10. Goal Awareness 0.37** -0.36** 0.30** -0.29** 0.20** -0.15* 0.34** 0.24** 0.27**

11. Competition Sensitivity 0.26** -0.38** 0.27** -0.32** 0.08 -0.09 0.35** 0.30** 0.21** 0.50**

12. Transparency in the Study Program 0.28** -0.36** 0.29** -0.31** 0.20** -0.04 0.26** 0.19* 0.24** 0.46** 0.37**

* p < .05; ** p < .01.



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The more Result-oriented driven the culture scores on P1, the more the subculture is committed to

their overall organization. There is a relative strong correlation between Result Orientation and Goal

Awareness. The more Job-oriented the subculture scores on P2, the less are the Commitment and

Goal awareness as well as Competition Sensitivity. The more the university is perceived as an Open

System, the more the academic member group is committed to the organization (Table 7).

Table 8. Correlations at the subcultural level: Non-academic Members

Non-academic Staff Correlations

Construct 1 2 3 4 5 6 7 8 9 10 11





5. Loose Control vs. Tight Control 0.37** -0.10 -0.14 -0.12

6. Normative vs. Pragmatic 0.22* -0.51** 0.69** -0.56** -0.41**

7. Commitment 0.51** -0.52** 0.17* -0.46** 0.32** -0.01

8. Expertise -0.13 0.30** -0.32** 0.36** 0.13 -0.56** 0.05

9. Interpersonal Skills -0.15 0.40** -0.35** 0.38** 0.11 -0.53** 0.01 0.77**

10. Goal Awareness 0.01 0.02 -0.03 0.04 0.11 -0.11 0.14 0.11 0.19*

11. Competition Sensitivity 0.03 -0.05 0.01 -0.03 0.15 -0.14 0.28** 0.33** 0.30** 0.18*

12. Transparency in the Study Program -0.19* 0.10 -0.30** 0.28** 0.07 -0.24** 0.00 0.38** 0.28** 0.21* 0.07

* p < .05; ** p < .01.

The more Result-oriented driven the culture scores on P1, the more the subculture is committed to

their overall organization. The more Job-oriented the subculture scores on P2, the less is the

Commitment. There are relatively strong correlations between Job-orientation and Expertise and

Interpersonal skills. The more the university is perceived as an Open System, the more the non-

academic member group is committed to the organization (Tab. 8).

7. Discussion

The purpose of this study was to explore the organizational culture centred aspects of higher

education, in particular the academic and administrative work, and how subcultural perceptions are

related to strategic goals. 140 interviews were conducted to investigate the perceived strategic goals.

The quantitative feedback of 1,773 university members was analysed to investigate the organizational

culture on the subcultural level (Hofstede et al., 1990) in relation to the strategic goals via the



216

configuration model of organizational culture (Dauber et al., 2012) in the context of a single German

higher education institution. Although this is a study of a single German state university which limits

the results' generalizability, it makes several contributions by shedding light on the complexity of

subcultures in relation to strategic goals.

Goals and strategies in the German higher education system hardly differ from their primary goal

content, but do in their weighting according to their importance considering subcultural perceptions

of relevant stakeholder groups. A possible range and diversity of the long-term goals is the

multivariate goal catalogue (Mertens, 2010). The identified long-term goals on the basis of the

interviews confirm and complement this catalogue.

Dauber et al. (2012) argue that national culture becomes manifest through strategies, structure and

operations. While Hofstede et al. (1990) reported high validity of their practices dimensions in a

Danish and a Dutch setting, only three of six organizational culture dimensions could be replicated in

a German research setting. In reference to table 1, the national value differences between Germany,

Denmark and Netherlands might be a possible reason why only three dimensions could be replicated

in this study. Compared to Hofstede’s subcultural research in units of a Danish insurance company,

this subcultural study in a German university might show differences in practices. Possibly, these

dimensions are no longer contemporary and indicators should be identified which can meet the

perceived requirements of the practices of today’s working styles.

The strategic goal and practices dimensions were matched with the configuration model of

organizational culture (Figure 1).

Goals and StrategyCommitment, Expertise, Interpersonal Skills, Goal Awareness, Competition

Sensivity, Transparency in study program, Employee-oriented vs.

Job-oriented

Structure OperationOpen System vs. Closed System

Process-oriented vs. Result-oriented

Task Environment

Legitimization

Environment

Guidance Operationalization Patterns of behavior

Double Loop

Learning

Single Loop

Learning

Performance Assessment

Cultural pressure:

Compliance Requests

Market Feedback

Action as structural coupling between the

organization and ist Task Environment

Legitimacy

Management:

Lobbying/Public

Opinion

Perception of the internal environment

in the context of higher education institution

German culture and

identity

Figure 1. Configuration model of organizational culture in context of German higher education

institution



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Higher education institutions as autonomous knowledge generating institutions undertake the

functions of scientific research, educating professional people, service to communities in the society.

The organizational culture reveals important insights of the university and makes it different from the

other higher education institutions. The perceptions of organizational culture are a decisive factor in

attaching importance to strategic goals. The organizational culture that a higher education institution

has makes it different from other higher education institutions by its values, goals and strategies which

are expressed through structures and operations in relation to the dynamic and complex

environments.

8. Research limitations/implications

The collection of control variables is limited due to data protection. Future research should be

extended to other institutions of higher education or bureaucracies to generalize the results. The

qualitative and quantitative data were collected in a single German higher education institution and

interpreted in a German context. The analysis of Sagiv and Schwartz (2007) allow the conclusion that,

for example, the results of surveys on the role of goal systems carried out in the USA are not

necessarily valid for Germany. German culture rates high in ‘Intellectual autonomy‘. Goals that might

challenge this value are most probably condemned to failure.

In order to estimate the extent of a potential single-source bias (Podsakoff & Organ, 1986; Podsakoff

et. al., 2003) the effect sizes of the correlation analyses were compared and examined as to whether

there is a significant difference in the effect sizes of the group comparisons. The Fisher-Z based effect

types do not differ noticeably (Cohen's d=0.20). The average correlation effect is comparatively lower

than the average group effect (Yazici, 2015). This result can be interpreted as an indication that the

effects of correlation analyses were not overly enhanced by a single source bias.

9. Practical implications

Decision makers related to higher education systems have to look beyond efficiency criteria and they

should be trained to understand and to apply the different expectations in the education and research

processes in line with national values (Hofstede 1980; Hofstede, 2001; Sagiv & Schwartz, 2007). They

should avoid overemphasizing certain goals in favour of a balanced resource allocation (Bailey &

Lewicky, 2007; Alutto et al., 2008; Mertens, 2010). Higher education institutions need to facilitate the



218

integration of cultural diversity in order to address the challenges faced by higher education

institutions today. The culture-oriented management activities with regard to the interactions

between the complex and dynamic internal environment and the differentiated complex and dynamic

external environments are of the highest relevance for the long-term development and the

survivability of the institution. Continuous changes are supported by a holistic consideration of sub-

cultural perceptions of the organizational culture and identity, goals and strategies, structures and

operations in conjunction with the external environments. Understanding and handling dynamic and

complex internal and external environments in the context of a German higher education institution

thus presupposes a holistic perspective of the organizational culture.

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STUDENTS’ CULTURAL INTELLIGENCE PROFILE. A COMPARATIVE STUDY OF

ROMANIA AND ICELAND

Brancu Laura,

West University of Timisoara, Romania

Gudmunddottir Svala,

University of Iceland School of Business, Iceland

Munteanu Valentin,


Bibu Nicolae


Abstract

Cultural intelligence (CQ) is known as an individual’s ability to act efficiently in different cultural contexts. Due

to increased globalisation over the past 20 years, the number of people who currently come into direct contact

with other cultures has grown significantly (Eisenberg et al., 2013). In this context, it could be considered that

developing cross-cultural competencies is useful, even necessary, not only for managers but also for other fields

of activity. Using Earley and Ang’s (2003) multidimensional concept as an analysis framework, our study analyses

the CQ profile of students from two countries: Romania and Iceland. The framework is used,both as a whole and

separately, for each of its four component parts. Data (N=443) for this study were collected using questionnaires

administrated to students in Romania and Iceland. The purpose of the study is to identify the significant

differences and similarities between the two groups, taking into account recent studies indicating that CQ varies

across countries, and that there are countries with a higher propensity compared to other countries for initiating

and developing cross-cultural contacts (Alon et al, 2016).

Key words: cultural intelligence, comparative study, Romania, Iceland

1. Introduction



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The current intensification of globalisation is leading to a series of major changes in all fields and aspects of

daily life. With new technologies being introduced, at higher speed than ever before, the ability to acquire and

process information faster and more efficiently has become important for everyday life. Transportation is more

frequently available and more accessible than before and individuals are increasingly being exposed to new

cultures. These changes are inevitably leading to the intensification of cross-cultural interaction, through

intensive international labour mobility (Templer et al., 2006), as well as, through significant growth of Internet-

based communication, which enables virtual work teams, whose members are geographically and culturally

dispersed (Stanko & Gibson, 2009). The need for professionals who are capable of efficiently functioning in a

cross-cultural work environment is becoming more intensive. Increasing awareness about the need to develop

cross-cultural competencies, is also determined by the fact that the ability to work and live efficiently in cross-

cultural settings needs to be built, and taught, since people do not possess it naturally. A new concept, cultural

intelligence (CQ) has emerged in the last decade, from the need to better understand and define cross-cultural

competencies. The concept of CQ was developed to understand why some individuals are more effective than

others in culturally diverse situations. It was created by Earley and Ang (2003) and is defined as „-a person’s

capability for successful adaptation to new cultural settings; that is, for unfamiliar settings attributable to

cultural context”-. CQ is a multidimensional concept, comprasing four distinct and inter-correlated components

(metacognitive, cognitive, motivational and behavioral). These components structure an individual’s ability to

learn about other cultures and to learn how to learn about culture, his or her desire to interact across cultures

and, his or her ability to modify behavior to do so successfully.

Universities are also influenced by the globalisation process, and this can be regarded as an opportunity or

as a challenge. This is because globalization has determined a growth in the flow of students who study abroad

(both incoming and outgoing) in the last years. This has led to an intercultural opening of higher education

institutions, but also to increasing awareness about the need to train students to be capable of acting efficiently

in the global environment (Ang and Dyne, 2008; MacNab and Worthley, 2012). More business schools are

focusing on creating and developing cross-cultural skills and competencies when education their students

(Eisenberg et al., 2013). However, not only business schools are doing this; Truong, Bentley, Napper, Guest, and

Anjou (2014), for example, analyzed the extent to which Australian and New Zealand schools of optometry

prepare students to become culturally competent. Moreover, O’Connell et al. (2013) analysed the impact of

cultural competencies in health care in order to channel students towards Patient-Centered Culturally Sensitive

Health Care.

Using Earley and Ang’s (2003) CQ multidimensional concept as an analysis framework, our study analyses

the CQ profile of students from two countries: Romania and Iceland. It uses the framework, both as a whole and

separately, for each of its four component parts. This study represents the continuation of our research interests

related to the analysis of Romanian students’ CQ. The first study (Brancu, Munteanu, Golet, 2016a) focused on

Romanian management students; this was then followed by a second study (Brancu, Munteanu, Golet, 2016b)

aimed towards determining whether there were statistically significant differences between the CQ profiles of

business students on one hand and the those of students from other fields of study in Romania.



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In this third study we aim to expand the research area, including a comparative approach: we have

investigated the CQ profiles of students from Romania compared to those of students from another country, in

this case Iceland. The purpose is to identify the significant differences and similarities between the two groups,

taking into account recent studies indicating that CQ varies across countries, and that some countries have a

higher propensity compared to other countries for initiating and developing cross-cultural contacts (Alon et al,

2016). Whereas Alon et al. (2016), consider that CQ related differences could be explained by several

macroeconomical and social variables (such as cultural diversity, trade, openness, educational levels and

international media), Brislin et al. (2006) takes into account, at the theoretical level, the possibility that CQ might

be influenced by the cultural profile of a country. The latter consider that the concept of CQ itself reffers to

behaviours that differ culturally from one country to another.

Based on the above, the comparative analysis of the CQ profile between two cultures, in this case Romania

and Iceland, could contribute to the CQ intercultural research pool of scientific knowledge. Choosing students

as the population of study is justified by the fact that, although the studies focusing on students are numerous

(due to the novelty of the CQ concept), their results indicate that crosscultural education has a significant impact

on students’ cultural attitudes, and on developing their cross-cultural skills and competencies. Therefore, the

analysis of students’ CQ profile will allow us to understand which of the four CQ dimensions should be targeted

when providing cross-cultural education to students.

This paper begins with a literature review, followed by a description of the research methodology and the

main results, and ending with a discussion of findings and identified limitations and practical implications.

2. Literature review

The concept of culture has often been provided, discussed and argued but one widely

adapted definition is that of Kluckhohn (1985), who suggested that culture consists of

patterned ways of thinking, feeling and reacting, acquired mainly by symbols, constituting the

distinctive achievements of human groups, and including their embodiments in artefacts. He

argued that the basic elements of culture consist of compound ideas and values. Kirkman,

Chen, Farh, Chen, and Lowe (2009) later argued that cultural values can also be defined as a

consciously and subconsciously held set of beliefs and norms - often anchored in the morals,

law, customs, and practices of a society - that define what is right and wrong and specify

general preferences. In other words, culture refers to a group’s characteristic way of

perceiving its social environment, and has been argued to include elements such as norms,

beliefs, attitudes, assumptions, values, ideals and other such subjective elements (Brislin,

1993; Bhagat and McQuait, 1982; Hofstede, 2001; Triandis, 2006). As a result, culture has also

been defined as ‘the collective programming of the mind which distinguishes the members of

one human group from another’ (Hofstede, Hofstede & Minkov, 2010, p. 520). This cultural

approach has been particularly influential in international human resource management



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(Romani, 2004), as ‘the frame of reference, which a culture provides to individuals’ (Ronen,

1986, p. 18), or as ‘mental frameworks that groups, organizations and nations develop’

(Moran, Harris & Moran, 2007, p. 26).

Although the cultural concept has been studied extensively, we still need further advancement to understand

why some individuals adapt more easily when working and living in foreign cultures than others do (Ang & Van

Dyne, 2008; Church, 1982; Chuch et al., 2008; Ward et al., 2009). As a result, increased attention has been given

to the concept of CQ. This concept is grounded in theories of intelligence (Sternberg, 1986), and it is a

multifaceted construct with four factors: cognitive, metacognitive, motivational and behavioural CQ. The origins

of the CQ concept are found in the literature on cross-cultural management, but the best known is the model

proposed by Ang et al. (2007): they described CQ as a multidimensional concept ‘targeted at situations involving

cross-cultural interactions arising from differences in race, ethnicity and nationality’ (Ang et al., 2007). CQ thus

comprises four components, distinctive but interrelated: metacognitive (the individual’s ability to learn about

other cultures), cognitive (the individual’s ability to learn how to learn about other cultures), motivational (the

individual’s desire to interact across cultures) and behavioural (the individual’s ability to modify his/her own

behaviour to do so successfully).

The first factor, cognitive CQ, focuses on explicit knowledge of values, norms and practices in different

cultures, including knowledge of different legal, social and economic factors in the host country. This is the

knowledge of cultural norms and values that is considered to be taught in the classroom setting or gained by the

individual by seeking information on the specific targeted culture. The second factor, metacognitive CQ, is

related to higher-order cognitive processes that individuals use to acquire and understand host cultural

knowledge, it relates to intercultural actions as it helps individuals to be aware of others cultural preferences

and intentions during interactions. It is thought to relate to awareness of others’ cultural preferences both

before and during an interaction (Ang et al., 2007). According to Earley and Ang (2003), it is not sufficient to

have knowledge of another group’s ways of dealing with the world, individuals will also need to be motivated to

use the knowledge and produce a culturally appropriate response. The third factor, motivational CQ reflects the

individual’s capability to learn about and function in culturally diverse settings. Motivational CQ emphasises the

ability to direct attention and energy towards learning about and functioning in situations characterised by

cultural differences. The fourth and final factor is the behavioural facet of CQ. It refers to the behaviours in

which a person engages and reflects a person’s capability to acquire or adapt behaviours that are appropriate

for a new culture. For example, behavioral CQ reflects the individual´s ability to exhibit appropriate verbal and

non-verbal action when interacting with host nations. As Hall (1959) argued, the mental capabilities of cultural

understanding and motivation must be associated with the ability to exhibit appropriate verbal and nonverbal

actions, based on cultural values and norms of a specific setting. A myriad of cues are provided by observing

others, and their reactions as one interacts with them. A person with high behavioral CQ has integrated and

mimics these cues and behaviors (Bargh & Chartland, 1999). Moreover, a person with a high CQ is a talented

mimic although this constitutes a type of cognitive strategy as well as a behavioral intervention (Earley, Ang, &

Koh, 2006).



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This definition of CQ has been developed and detailed in subsequent studies (Peterson, 2004; Triandis, 2006;

Van Dyne & Ang, 2007; Ang et al. 2007; Crowne, 2008; Ang & Van Dyne, 2008; Ward et al., 2009; Ang et al. 2012;

Thomas et al. 2015; Ramsey and Lorentz, 2013; Alon et al., 2016). The essence of these studies is that CQ

describes the capability of individuals to use the appropriate skills and abilities in unfamiliar and ambiguous

environments. It can be said that the greater an individual CQ is, the more he or she will be able to efficiently

handle various cultural contexts (Ang et al., 2007). Furthermore, the need to possess this type of intelligence is

increasing in a more globalised world, because even if an individual does not work outside of his or her country,

he or she still has contacts with customers, suppliers or business partners from other cultures (Crowne, 2008).

Faced with this need for cross-cultural competencies, multinational companies (MNCs) react by offering

training to their employees (Earley & Peterson, 2004) and selecting professionals with a high CQ (Alon et al.,

2016). At the same time, universities are beginning to focus more on CQ education, offering adapted courses

(mainly cross cultural management courses) and international missions. Harrison (2012) stressed that university

education has to be adjusted to develop a multicultural mindset. On the theoretical level, Brancu et al., (2016a)

proposed a quadri-dimensional CQ model for the educational process, adapted at the institutional level.

Furthermore, Chen and Starosta (2004) underlines that intercultural education is a necessary component of the

education system, helping students to understand and respect cultural differences. MacNab and Worthley

(2012) argued that cross-cultural management (CCM) courses helps students not only from a theoretical point

of view, in terms of their knowledge foundation, but also by increasing their efficiency in cross-cultural

encounters. In a similar vein, Eisenberg et al. (2013) showed that systematic training as well as exposure to cross-

cultural and international experiences can enhance individuals’ cultural competence.

The empirical studies that analyse students' CQ are relatively recent and not numerous. They

predominantly focus on the presentation of a single national context (Putranto et al., 2015; Erez et al., 2013;

Moon, 2010; Balogh et al., 2011, Lawrence, 2011), the comparison of two national contexts; Ang et al., 2007),

or the study of international students from universities (Ward et al., 2011, Ming et al., 2013).

And Moon (2010) studied relationships between the four-factor model of CQ and emotional intelligence

(EQ) among a group of Koreans students, showing how CQ and EQ are distinct, but related constructs. Balogh et

al. (2011) examined the CQ of Hungarian full-time university students in relation to the specific types of

organizational cultures with which they would prefer to work. Moreover, Lawrence (2011) studied the effects

of CQ and cross cultural communication on the cross cultural adaptation of international students in Taiwan.

Finally, Putranto et al. (2015) studied the CQ profile of students from Indonesia, and Erez et al., (2013) analysed

virtual teams of students‘ CQ in Israel.

Comparative cross-country studies on CQ focus mainly on the concept of intelligence and the validity of CQ

measurements tests, or other specific dimensions, such as EQ. Swami et al. (2008) determined the differences

generated by cultural factors on approaching intelligence tests through a comparative study between American,

British and Malaysian students. Tang et al. (2010) demonstrated the existence of cross-cultural differences in

the relationship between EQ and leadership practices based on a comparative USA-Taiwan study. Nichols et Al.

(2010) examined the beliefs about the nature of knowledge, views of intelligence and motivational perceptions



232

among Hispanic/Latino students and Anglo students in the USA. Moreover, Emmerling and Boyatzis (2012)

showed that EQ and social intelligence competencies represent a practical and theoretically coherent, reliable

and valid approach to assessing and developing individuals in diverse cultures.

Some recent studies have discussed CQ similarities and differences between identical professional groups

from different countries, and the CQ effects on various types of economical or professional behaviours.

Căpățână and Bouzaabia (2011) analysed CQ differences determined by cultural differences based on samples

of employees from a Romanian company and from a Tunisian company, using a CQ web-based platform. In a

similar vein, Scholz (2012) underlined the role of cultural diversity and CQ in talent management in a industry

that is intensively based on innovation and creativity (the video game Industry) using samples of employees from

several countries (greater samples from the USA, Canada și the UK). Engle & Chadwick (2012) investigated the

relationships between risk orientation, need for control, openness and CQ, using survey data from the USA and

France. Reichard et. al (2014) analysed the relation between psychological capital (PsyCap) and CQ and the

specific differences between samples from different cultures (USA and South Africa). Furthermore, in a complex

study of business professionals from five countries (Austria, Colombia, Greece, Spain and the USA) Alon et al.

(2016) investigated CQ prerequisites using a new measurement of CQ: the business cultural intelligence quotient

(BCIQ).

In this respect, we consider that comparative studies between two or several national cultural contexts are

useful since they complement the literature in the field, offering results about the differences and similarities

between examined countries and information about possible explanations.

Besides the comparison between Romanian and Icelandic students, in this paper, we also aim to analyse

certain variables acting as prerequisites of CQ. The following are some important studies that analyse, at a

theoretical (modeling) or empirical level, the most important determinants of CQ. First, Ang and Van Dyne (2008)

introduced the concept of Nomological Network of Cultural Intelligence, which includes variables related to

personality, demographic factors, biographical information, and ethnocentrism. Another important study is that

of Shannon and Begley (2008), which highlights the foreign language abilities and international work experience

as predictors of CQ. On the other hand, Crowne's study (2008) showed that cultural exposure (defined by

employment and education abroad) influences CQ. In this approach, the depth of exposure is also important:

the number of countries that an individual had visited for education and employment purposes has a significant

influence on his or her personal CQ. Furthermore, in their study Tarique and Takeuchi (2008) proved that the

number and length of international experiences undergone by students prior to starting university (even starting

from young ages), positively influenced their CQ. Sahin et al. (2013) concluded that CQ factors are personality

and international assignment; the authors validated a positive relation between international assignment and

CQ, for all four of its components. In another important study, Harrison (2012) analysed the variables that

influence ethnocentrism and CQ, but also the influence of these two variables on the cultural interaction. The

results of the study showed that both variables were influenced by the variables related to personality and early

life experience, in turn influencing intercultural interaction.



233

At the level of groups of students, according to Pless et al. (2011), an internship abroad was found to lead to

growth in their CQ. In a similar vein, Eisenberg et al. (2013) found that prior international experience for students

(measured by the number of countries where students had lived, worked, or been educated for at least six

months), enhanced their CQ. Furthermore, Erez et al. (2013) demonstrated that the positive impact of students'

involvement (in the online environment) in multicultural teams or in a short -term project would enhance their

CQ.

Based on this review of the literature, we can conclude that cultural exposure is an important variable that

is often analysed as a CQ predictor. For this reason, in this paper we will analyse the impact of personal cultural

exposure on CQ. Other variables such as demographics (gender), and parental occupation (parents working in

MNC or with expatriate missions) are also taken into account.

3.Methodology/Research Design

A questionnaire-based survey was used for data collection among university students gathering a number

of 178 responses for Romania and 265 for Iceland. The survey was administrated before the students took a

course on CCM. Ang et al.‘s (2007) 20-item questionnaire of was used. The questionnaire is composed of four

subscales: cognitive (6 items, a = 0 .82), meta-cognitive (4 items, a = 0.80), behavioral (5 items, a=0.78) and

motivational (5 items, a=0.76). Responses were assessed on a scale of 1 to 5, with higher scores representing a

higher level of CQ. The questionnaire was translated from English into Romanian, and from EngIish into Icelandic,

using the back translation method.

Participants

Table 1. Descriptive data for the study sample

Descriptive data Sample (n=443)

N %

Country 443 100

Romania 178 40.2

Iceland 265 59.8

Gender 437 98.6

male 118 26.6

female 319 72

Age of participants¹ 442 99.8

20 ≤ years 86 19.4

Romania 77



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Iceland 9

> 20 but ≤ 30 years 211 47.6

Romania 96

Iceland 115

> 30 but ≤ 40 years 63 14.2

Romania 2

Iceland 61

> 40 but ≤ 50 years 51 11.5

Romania 2

Iceland 49

> 50 but ≤ 60 years 24 5.4

Romania 0

Iceland 24

> 60 years 7 1.6

Romania 0

Iceland 7

Multinational companies 439 99.1

No 363 81.9

Yes 76 17.2

Parents with international missions 435 98.2

No 363 81.9

Yes 72 16.3

Study abroad 443 100

no 329 74,3

< 1 5 1.1

1- 3 months 9 2.0

3 -6 months 18 4.1

> 6 months 82 18.5

Internship 443 100

no 401 90.5

< 1 2 0.5

1- 3 months 22 5.0

3 -6 months 5 1.1

> 6 months 13 2.9



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Personal travels 442 99.8

no 42 9.5

< 1 82 18.5

1- 3 months 91 20.5

3 -6 months 72 16.3

> 6 months 155 35.0

Results

Data Analysis

Paired t-tests and one-way and factorial ANOVAs were used to compare the two groups on different

characteristics. Preliminary analysis of the data involved inspection of normality and homogeneity of variance

assumptions. The calculation of skewness and kurtosis were used to check the normality of distribution. To test

the equality of group variances, the Levene statistics were calculated. All assumptions for the analysis were met.

Main Results

Table 2 presents the results of the comparison between the two groups. Out of the five analysed situations,

three statistically significant differences were found: strategy (t(441) =5.473, p=.000, d=.53); motivation (t(441)

=1.910, p=.05, d=.18) and general score (t(441) =2.316, p=.02, d=.23). The Romanian students' group was found

to have higher levels of CQ in all situations, for each component of CQ and for total CQ, too.

Table 2. t - test results: comparison between the two groups

Cultural intelligence

Country t df P d

Romania Iceland

(n = 178) (n = 265)

M SD M SD

Strategy 3.99 .72 3.61 .72 5.473 441 .000* .53

Knowledge 3.05 .73 3.03 .86 .317 441 .75

Motivation 4.01 .77 3.87 .74 1.910 441 .05** .18



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Behavior 3.40 .93 3.36 .76 .481 441 .63

CQ 3.57 .54 3.44 .59 2.316 441 .02** .23

Note: significant * p < .001., ** p < .05.

In accordance with the Cohen criteria, at the general level (CQ), the cultural differences between the two

groups were small (d = .23). The biggest difference is reported on the strategy subscale. However, based on the

Cohen criteria, even these differences had a medium effect size (d = .53). Furthermore, the differences reported

in the motivation subscale were very small (d = .18). Finally, no statistically significant differences were reported

for the last two subscales (knowledge and behaviour).

Several t - tests were conducted to analyse whether CQ was influenced by several differences between the

demographic variables of the two groups. Table 3 presents the results of these analyses. Out of the six analysed

situations, significant differences are reported in one case, namely for the variable ‘parents with international

missions’ (t(433) =2.054, p=.04). A small level of effect size was found (d = .26). Thus, students who had parents

with international missions presented a higher level of CQ.

Moreover, one-way ANOVAs were conducted to determine whether number of months studied abroad

(F(4,442) = 2.309, p = .057), number of months of internship (F(4,442) = .525, p = .717), students' age (F(5,441)

= .847, p = .517) or number of personal travels (F(4,441) = 1.340, p = .254) influenced the level of students' CQ.

Significant differences were not reported for any of these cases.

Table 3. Test t results: comparison between different variables within the two groups

Variables Cultural intelligence T df p d

M SD M SD

Female (n=319) vs. male (n=118) 3.48 .60 3.55 .51 1.275 435 .20

Multinational (no=363) vs.(yes=76) 3.48 .59 3.55 .49 .947 437 .34

Missions (no=363) vs.(yes=72) 3.47 .56 3.62 .58 2.054 433 .04* .26

Study abroad (no=325) vs.(yes=118)

3.47 .60 3.55 .59 1.392 441 .16

Internship abroad (no=395) vs.(yes=43)

3.50 .58 3.42 .54 .816 436 .42

Exposure (no=114) vs.(yes=294) 3.56 .55 3.44 .58 1.856 406 .06

Note: significant * p < .05.

A factorial ANOVA was conducted to understand whether the level of CQ was mediated by any of the

respondents' demographic characteristics.First, to select which variables could be included in this analysis,



237

Pearson correlations were calculated between CQ and all of the variables presented above. Table 4 presents the

results. Significant correlations were reported only between two independent variables (country and parents

with international missions) and CQ (as the dependent) variable. Therefore, these variables were used to

conduct factorial ANOVA 2x2.

Table 4 Pearson correlations matrix between independent and dependent variables

Country Gender Age Multi-national

Mis-sions

Expo-sure

Study abroad (no of month).

Intern-ships (no of month)

Personal travel (no of month)

CQ

Country 1 -.169** .561** -.095* -.095* .434** .400** .172** .342** -.110*

Gender -.169** 1 -.030 .049 .104* -.030 -.023 -.082 -.070 .061

Age .561** -.030 1 -.190** -.167** .230** .325** .110* .281** -.089

Multinational -.095* .049 -.190** 1 .501** .442** .000 -.004 .007 .045

Parents with international missions

-.095* .104* -.167** .501** 1 .466** .006 .046 .047 .098*

Exposure .434** -.030 .230** .442** .466** 1 :238** .164** .187** -.025

Study abroad (no of month).

.400** -.023 .325** .000 :006 .238** 1 .293** .478** .048

Internships (no of month)

.172** -.082 .110* -.004 .046 .164** .293** 1 .212** -.022

Personal travel (no of month)

.342** -.070 .281** .007 .047 .187** .478** .212** 1 .065

CQ -.110* .061 -.089 .045 .098* -.025 .048 -.022 .065 1

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

The output of the mixed factorial ANOVA 2x2 is presented in Table 5. In the reported results, no variable had

a significant influence on CQ: country (F(1,431) = .186, p = .667, partial η² = .000) and parents with international

missions (F(1,431) = 1.017, p = .073, partial η² = .007). Thus, neither of the interactions between the two variables

(country*missions) were found to have a significant influence on CQ (F(1,431) = 2.603, p = .107, partial η² = .006).

Based on the Partial eta squared, the interaction between country and missions explains approximately 0.6% of

the variation of the level of respondents' CQ, which is very little.



238

Table 5. Factorial ANOVA results for the impact of country and missions on CQ

SS Df MS F p Partial

eta squared Observed

Power

Between-Subjects Effects

Country .058 1 .058 .186 .667 .000 .071

Missions 1.017 1 1.017 3.227 .073 .007 .434

Country*Missions .820 1 .820 2.603 .107 .006 .363

Error 135.777 431 .315

Note: R² = .024; Adjusted R² = .017; Alpha = .05.

4. Findings and Implications

We found statistically significant data for CQ total score and for two components of CQ: strategy and

motivation. For all four CQ dimensions and for the CQ total score, average results were slightly higher for

Romanian students, than for Icelandic students, indicating a better CQ in total and for each component: strategy,

knowledge, motivation and behaviour. The biggest difference was found for strategy, the mean being 3.99 for

Romanian students, compared to 3.61 for Icelandic students, on a scale from 1 minimum to 5 maximum.

However, using the Cohen d, the size of the effect (d) was average (.53) for strategy, very weak (.23) for CQ, and

statistically irrelevant (.18) for motivation.

The implications of our findings are that although there are differences between the CQ of the two groups

of students from the two countries, they are quite weak. However, our findings validate the results of Alon et

al. (2016). We have also compared various variables that we identified to acting like CQ antecedents, including:

gender, parents working in MNCs, parents with international missions (expatriates), number of months spent

studying abroad, including Erasmus missions, number of months spent on an internship abroad, and number of

months of personal travel abroad. We performed t tests and found that the only statistically significant

difference, with a weak size effect (.26), was for the variable parents with international missions (expatriate

missions, number of month) in favour of those who answered yes. This is a variable which was not used in any

study until now, as we are aware. It indicates an indirect cultural exposure of a child, through information

received from his or her parents, who were in turn directly exposed to other cultures. This result of our study is

surprising and represents a first evidence of such kind of cultural exposure, until now. It indicates that cultural

knowledge was transmitted by parents, and that it influenced the CQ level of their child, at least in our sample's

case. We also performed ANOVA tests for demographic and variables acting as CQ antecedents, but did not find

any statistically significant differences.

We also found that students from both countries had the same score ranking for the CQ components: first,

motivation; second, strategy; third, behaviour; and fourth, knowledge. Our study yielded the same results for

the same type of respondents (students) as did the studies by Eisenberg et al. (2013) and Putranto et al. (2015).



239

Moreover, our results only differ slightly from the results of Ang, Van Dyne and Koh (2006), with the only

difference being that in the latter metacognition component was the first, and not motivation. In our opinion,

it is not surprising that motivation is first, as one factor that could probably affect the level of CQ is that students

are open to new challenges, discovering new cultures, and interacting with people from different cultural

backgrounds. The results are useful because they can help to understand the extent to which students will be

able to adapt to future intercultural situations. The studies by Ang et al. (2004) and Ang et al. (2007) suggest

that strategy and motivation CQ's influence cultural judgment and decision-making, as well as the general

cultural adjustment. At the same time, high levels of the motivation dimension are linked to lower levels of

depression and fewer social problems during cross-cultural transition (Ward et al., 2009). On the other hand,

the knowledge component of CQ had the lowest score in our study. This is likely explained by the fact that

students were questioned before taking a CCM course.

In summary, metacognitive CQ, cognitive CQ, motivational CQ and behavioural CQ are different capabilities

that together form overall CQ (Ang et al., 2007)

We expected that there would be significant differences between the CQ levels of Romanian and Icelandic

students because of the different cultural profiles of their countries, according to the Hofstede model (2001).

One purpose of the study was to determine whether there are significant differences between students from

different countries, with Romania belonging to the East European cultural cluster and Iceland belonging to the

Nordic countries cultural cluster. Since we found a difference between CQ scores, we could suppose that this is

because of the cultural differences between the two countries.

However, we consider that in order to reach sound conclusions, we need a deeper analysis which should

include countries belonging to several cultural clusters. Since CQ is a form of intelligence, it includes several

behaviours that are formed by transmitting from elders to younger members of a culture (Brislin et al., 2006).

Based on that, we could suppose that these transmitted behaviours are culture bond. Similarly, elements of

emotional or social intelligence are not culture free (Brislin et al., 2006). In such conditions, some CQ

components' could be culture bond. We reffer especially to the capacity to feel comfortably in unknown

situations, a variable that Could be related to Uncertainty Avoidance, as defined by Hofstede (2001).

5. Research limitations

This paper discusses only the results related to business and non-business student populations from two

countries, and essentially from two universities: one in Romania and the other one in Iceland. This represents

the study’s main limitation. Another limitation is that only a reduced number of students had had a real cultural

exposure. We consider the sample representative only of students belonging to the participating faculties from

both universities. Therefore, our results cannot be generalised to a larger population of students from Romania

and Iceland. Another possible limitation is that the age structures of participants from Romania and Iceland was

different: the number of respondents older than 40 years of age was much larger than we expected in Iceland

compared to in Romania. This could be because of large differences in the rate of participation in lifelong



240

learning of the population between 25 and 60 years age: this rate is 26.1% in Iceland, compared to 1.2% in

Romania (Eurostat, 2017). This opens up a new research direction concerning the CQ of different generations

within the same country, and between countries.

We consider that the next step is to expand the research to business professionals, using the

multidimensional construct proposed by Alon et al. (2016). This construct measures Business Cultural

Intelligence (BCQI) and, according to its authors, reflects ‘the reality of the work environment of multinational

companies‘ (p.3). We are also considering introducing a new variable, ‘the number of fluently spoken languages‘,

as a determinant factor of CQ, together with cultural exposure. This variable has already been used in other

studies, such as those of Shannon and Begley (2008) and Alon et al. (2016).

6. Practical implications

We aimed to identify the strengths and weaknesses of the two studied groups, with regard to CQ dimensions,

taking into account the goal of improving curricula and academic teaching concerning those CQ components

that are most needed by our students. The results indicate that the knowledge component of CQ is the least

developed for both students groups involved in the study. In our opinion, this indicates that there is a need to

offer CCM courses to students, in line with the studies of Eisenberg et al. (2013) and Putranto et al. (2015). The

CCM course should include topics such as cultural awareness, cultural dimensions models, communicating

across cultures, and cross-cultural behaviour (Putranto et al., 2015). We consider that a CCM course would

directly develop the knowledge component, while indirectly, also developing the students’ meta-cognitive,

motivational and behavioral intercultural skills through the use of adequate teaching methods such as lecturing,

reading literature, case studies, role plays, educational games, and sharing sessions. The main goal is to increase

students’ employability in MNCs and other companies doing business across various cultures. This is in line with

the global facts that MNCs are looking to employ individuals with a global mind-set who are able to work

efficiently in multicultural teams (Caligiuri, 2013). Furthermore, developing the CQ knowledge and CQ strategy

components would improve students’ cultural judgement and decision-making in culturally diverse contexts

(Ang, Dyne et al, 2007), which are critical for building trust, exchanging ideas and collaborating in a multicultural

team (Rockstuhl and Ng, 2008). Overall, by increasing individuals’ CQ a manager could expect a more effective

performance from his or her subordinate when working in a multicultural, diverse workplace or team, when

leading across cultures (Rockstuhl et al., 2011), and when negotiating with and selling to clients with different

cultural backgrounds (Chen, X.P., Liu, D., & Portnoy, R., 2012).

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OVERCOMING RELIGIOUS POLARISATION: LINDBECK´S CULTURAL LINGUISTIC

APPROACH?

Livingstone Thompson, PhD

ABSTRACT

Is religion a threat to intercultural dialogue and peaceful intercultural exchange? Although religions have

played a significant role in bringing about the connection between peoples of different cultures, they have also

featured in tensions and conflicts within and between cultures. Often tensions arise because religious leaders,

situated as they are within a particular cultural-religio context, have not fashioned a way in which to adjudicate

between the claims to truth, which for each is universal. In considering the issue of religions as agents of

polarization in modern society, this paper will explore an approach that challenges religious actors to see their

religious traditions as cultures and consider whether a cultural-linguistic approach to religious pluralism might

be way to overcome polarisation and resolve conflicting truth claims.

Key words: religions, truth-claim, culture, pluralism, intercultural-dialogue

INTRODUCTION

This paper has arisen from desk-based research, the results of which was in part published under the

title, A Protestant Theology of Pluralism, 2009, in the Peter Lang series, Studies in the History of Religious and

Political Pluralism. The aim of the research was to find a suitable theoretic basis for how religious communities

might approach their conceptual differences. There was not evident theoretical basis to grasp the propensity

of conflict and the levels of misunderstanding between religions. The starting point of the research was to

revisit the work of the 17th century Jan Komensky. Unlike his contemporaries, Comenius not only wrestled

extensively with the question of the relationship between Christianity and Islam but also envisaged religions

existing in an alliance of freedom, dialogue and interreligious harmony.25 His attention to strategies for dealing

with differences is what gives him relevance today. Of further relevance was the fact that he treats religions as

cultures, which allows him, as a 17th century Christian, to have an attitude of openness to Islam. He wouldn’t

have known that his approach to dealing with other religions and cultures was one of the earliest contributions

to religious and cultural pluralism. It is for that reason that the EU cultural exchange programme for educators,

the Comenius programme bears his name.

DEALING WITH DIFFERENCES

25 Livingstone Thompson, A Protestant Theology of Religious Pluralism, Oxford: Peter Lang, 2009, 181.



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Strategies to dealing with religious differences were taken up a fresh in the 20th century. The second

half of that century has witnessed a concerted attempt among thinkers and writes in the West to come to

terms with the growing incidence of religious pluralism. The recognition that the claims of other religions can

no longer be overlooked in Christian discourse is not only a consequence of the effect of the Enlightenment on

religion but also a challenge of the post-modern era. The emergence of reason as the preferred basis for

adjudicating between truth claims in the Enlightenment served to undercut traditional claims to Christian pre-

eminent authority. The development of approaches religious pluralism is a response to the recognition that

Christian assertions ought not to be received as statements with unquestionable propositional or automatically

accepted as truth for all.

However, in addition to the levelling effect of the Enlightenment on religion, there were two other

factors that hastened the drive to develop theologically sound dialogical approaches to other religions. One

was the result of the missionary enterprises that took place over the previous two centuries. Much to the

consternation of the missionaries, the religious worlds of Hinduism, Buddhism and Islam, in particular, were

not caves of error and ignorance, as it was construed in the original European missionary thrust. On the

contrary, what the missionaries found, mainly in Asia and Africa, was that these religious traditions were

successful in sustaining the cultures of millions of people and seemed impervious to Christian evangelism as a

Euro-American cultural phenomenon.26 The realisation of the internal strength and cohesion of the other

religions led early nineteenth century theologians and missionaries to plead for justice, courtesy and love when

dealing with the other religions.27 The theologies of pluralism that developed have built on this earlier

awareness.

MIGRATION

The other factor that has contributed to the rise of theologies of pluralism is inward migration: the

26 In 1887, speaking at the Centennial Anniversary of the Moravian Society for Propagating the Gospel, Rev. Morris Leibert noted that Asia

continued to be a stronghold of systems and beliefs whose worth and strength must be acknowledged. Sixty years later when writing about

the difficulty in propagating the gospel in Suriname, one Moravian missionary wrote: “our mission work has not made any appreciable

progress among these British Indians. … Two trends can be observed. There are pious Mohammedans or Hindus who reject Christianity:

either because they consider themselves superior to it or because they see no difference between Christianity and Mohammedanism.” The

Centennial Anniversary of the Society of the United Brethren for Propagating the Gospel to the Heathen, 1887, 48.

27 Kenneth Cracknell, Justice, Courtesy, Love: Theologians and Missionaries Encountering World Religions (London: Epworth Press, 1965) 35.

Cracknell notes that theologians, for example Frederick Maurice (1805-1872), began to argue early in the twentieth century that the

encounter with other religious traditions might offer correctives to Christian theological formulations.



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rapid increases in the numbers of adherents other religious traditions in the metropolitan areas of Europe and

North America. It is also true to say that the unequal economic developments that have favoured western

countries, as well as the political and social problems in emerging democracies have contributed to the increase

in numbers arriving in Europe. Every major city in Europe and North America is home to thousands of people

of other faiths. Encountering people of other religious traditions, therefore, is no longer the esoteric privilege

of missionaries in far a-field but a daily experience for the ordinary Christian. In a real sense, the theologies of

pluralism were aimed at giving theological content to the de facto plural approach that people were already

taking to their religious faith.

The theologies of pluralism are theoretical discourse aimed at dealing with two challenges. On the

one hand, they were seeking to justify the openness and tolerance with which Christians approached people

of other faiths. On the other hand, these theories were seeking to remind Christians of the uniqueness of the

Christian faith and what values and beliefs that should not be compromised in the interest of good relations

among neighbours.

THEORIES OF PLURALISM

In coming to terms with the new reality of religious pluralism a number of approaches have been

developed. In general these can be organized into three main types. The first is the approach that favours a

commitment to the other. This approach calls attention to the difficulty of adjudicating between religious truth

claims and consequently sees the religions as being virtually on par. John Hick is probably the best

representative of this approach. The second approach is one that favours a commitment to one’s own tradition

and seeks to find appropriate resources within the Christian tradition to respond to the challenge of pluralism.

Gavin D’Costa a good example of that approach. He argues for a trinitarian approach to pluralism drawing on

ecclesial documents from Vatican II.

George Lindbeck’s approach, which is the focus of this paper, is situated between the other two

approaches. Called the cultural-linguistic approach, it regards the religious tradition as one would a language

or a culture, where the doctrines are seen as communally authoritative rules of discourse that regulate religious

beliefs and conduct. The paper will outline the approach in some detail, which will bring us to appoint where

we can assess its usefulness for dealing with differences between cultures in which religions have a centrally

defining role.

WEAKNESSES IN PREVIOUS APPROACHES

The approach he advocates reckons with a number of weaknesses in previous approached to dealing

with religious differences. One such weakness is that all religions are oriented towards the same ultimate goal.

This is widespread view held, for example, by John Hick, who also treats all religions as being virtually on par.

Central to that perception of religions is the idea that religions share a core experience at the heart of each

religion. In the experiential-expressive approach to religions, doctrines are treated as non-formative and non-



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discursive symbols of inner feelings. Here the nature and function of doctrine is downplayed and seems to have

no critical role in religious agreement or disagreement because they “are constituted by harmony or conflict in

underlying feelings, attitudes, existential orientation or practices, rather than by what happens on the level of

symbolic (including doctrinal) objectification.”28 Lindbeck rejects this idea a common core experience arguing

that the experiential-expressive approach to doctrine imply that people of historically and doctrinally different

religions can have the same faith but express it in different ways. However, it is virtually impossible to specify

the exact features of the core experience believed to be common in a variety of religions, this making the

notion of common religious experience empirically vacuous.29

Another weakness in previous approaches is one in which doctrines are treated as informative

propositions of truth claims about objective realities. Lindbeck’s calls that a cognitive-propositional approach.

In this approach, “if a doctrine is once true, it is always true, and if it is once false, it is always false.”30 Changes

to doctrinal positions and the relegation of old cultural attitudes cannot be accounted for in this approach and

consequently, it cannot function adequately in a plural context where one must allow for dynamism and

change. An example of a doctrine that is not subjected to change is the Christian doctrine of the Trinity, a core

belief for most Christians but anathema for Muslims. For his part, though, Lindbeck treats the doctrine of the

trinity as an intra-systemic truth that can be understood only within the context of Christianity. Treating truths

as intra-systemic frees to individual respect a truth-claim without having to surrender an affirmation that might

run contrary to it.31

LINDBECK’S CULTURAL-LIUNGUISTIC APPROACH

The cultural-linguistic approach to pluralism developed by Lindbeck is designed to give an account of

the relationship between religion and experience in a way that is more suited for a religiously diverse context.

The approach, with cultural and linguistic features, has gained ascendancy because of its relevance to the non-

theological study of religions. On the cultural side the roots go back to Marx, Weber and Durkheim and on the

linguistic side the root goes back to Wittgenstein.32 However, the approach was fashioned by Lindbeck in an

ecumenical context. He became aware of the lack of adequate categories for conceptualizing the problems

associated with doctrines and dogmas, which were peculiar to the religious traditions. For example, inter-

church conversation needed to understand why particular communions maintained exclusiveness towards

others, even when there were no remaining theological justifications for doing so. There was then a need to

properly grasp the nature and function of doctrine and to find a way to overcome conflicts and remove

28 George Lindbeck, The Nature of Doctrine: Religion and Theology in a Post-Liberal Age (London: SPCK, 1984), 17.

29 Lindbeck, The Nature of Doctrine, 32.

30 Lindbeck, 16.

31 Lindbeck, 8.

32 Lindbeck, 20.



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anomalies in inter-church relations, which expressed themselves as cultural and traditional attitudes.

Lindbeck considered that the nature of the relationship between communions within Christianity is

analogous to the relationship between Christianity and the other religions. Therefore, as was the case with

Comenius did three centuries before him, he believed the proposals he developed to resolve the problems of

inter-church relationship have interfaith applicability.

DISTINCTIVENESS

The distinctiveness of the cultural-linguistic approach (from the experiential-expressive and the

cognitive-propositional approach) can be demonstrated (1) in relation to the perception of religion and,

consequently, (2) in relation to the perception of doctrine. In regard to the first distinction, the cultural-

linguistic approach perceives religion as a heavily ritualised, comprehensive, interpretive scheme, embodied in

myths and narratives, which structure experience and understanding of self and the world. In this sense, a

religion operates as a cultural framework, which allows for the description of reality, experiences and inner

feelings: “it is a communal phenomenon that shapes the subjectivities of individuals rather than being primarily

a manifestation of those subjectivities.”33 There is a tendency to treat the external features of the religion, for

example worship style or dress code, to be derived from what adherents think and feel about the religion. The

cultural-linguistic approach subverts this, asserting rather that the religion provides the prerequisite for

adherents to have certain thoughts and feelings. In a linguistic sense we could say the religion is speaks the

person rather that the person speaking the religion because the cultural-linguistic approach emphasises that

the way in which human experience occurs is shaped and constituted by cultural and linguistic forms in the

religion.34

If the experience is a derivative of the religion, and not the other way around, there are two issues

that the cultural-linguistic understanding of religion has to face. The first relates to the meaning of becoming

religious and the second relates to the starting point of the religion. These are critical questions because neither

becoming religious nor the starting point of the religion can be given in experiential terms or else it would be

no different from the experiential expressive model. In other words, it must be shown that experience is the

outcome of the religion rather than that from which the religion springs. Commenting on this issue, Lindbeck

sees becoming religious as meaning becoming skilled in the language and symbol system of the religion

because when we know well enough and accept the core story of the religion we interpret and experience our

world in terms of the religion. The religious person interiorises a set of skills that teaches one how to feel, think

and act in conformity with the religious tradition.35

In response to the issue of the starting point of the religion, Lindbeck describes it as a comprehensive

scheme used to structure all dimensions of existence; one that functions as the medium that contains the skills

33 Lindbeck, 33.

34 Lindbeck, 34.

35 Lindbeck,



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for organizing experience. In this model, then, the modes of action in the story and the concomitant language

and doctrine precede and shape experience. This is the reason why the notion of a common experiential core

is a misnomer. The experiences that religions evoke are varied. “Adherents of different religions do not

diversely thematise the same experience; rather, they have different experiences.”36 Contrary then to the idea

that the religion is something universal that arises from within the individual and diversely expressed and

objectified in particular faiths, the cultural-linguistic understanding is that religions are like cultural systems

that shape and produce our most profound sentiments and attitudes.

The second way in which the cultural-linguistic approach is distinctive is in how doctrines are

understood. Doctrines are not seen as expressive symbols or as truth claims, as we’re inclined to think. Rather,

doctrines are essentially communally authoritative rules of discourse, attitudes and action. Doctrines are

regulative and function as second order propositions or “grammatical rules”, by which the religion is

articulated.37 In his understanding of the function of doctrine as the grammar of a language, Lindbeck draws

on recent developments in anthropology and linguistics, as seen for example in the works of Clifford Geertz

and Naom Chomsky.38 According to Lindbeck, human beings are thoroughly genetically programmed to

language use to the extent that failure to acquire a language will result in improper physiological development.

The acquisition of language is that which shapes the pre-experiential physical basis of their conscious

experience and activity.39 Of critical significance for Lindbeck’s theory is the question of how religion is

acquired, which is analogous to how language is acquired. For him, the aesthetic and non-discursive dimensions

of the religion – the poetry, art, rituals etc – are not propositional in character. Rather, it is through these that

the basic patterns of the religion are interiorised. This is similar to the learning of a language where the child,

when presented with certain data, constructs a theory of the language, of which the data presented is a sample.

In a manner similar to the internalising of the rules of grammar, “which identify much of what [the child] has

heard as ill-informed, inaccurate and inappropriate,” 40 adhering to a particular religion involves the

internalising of the doctrines as grammatical rules. For Lindbeck, then, becoming religious involves becoming

skilled in the language, the symbol system of a given religion that shapes various kinds of what is called religious

experience.41 The observation that different religions have different grammatical rules reinforces the view that

the different regulative schemes evoke different experiences. The assumption that the experiences are

supposed to be the same is continuously made in discourses about religions.

36 Lindbeck, 40.

37 Lindbeck, 16, 80.

38 See for example, Clifford Geertz, The Interpretation of Cultures, 1973, 55-86 and Noam Chomsky, Language and the Mind (New York:

Harcourt Brace Jonanovich, 1972), 163-167. Chomsky believes that certain concepts of linguistics can be used in philosophy in a rewarding

way, particularly the differences between surface structure and deep structure of sentences.

39 Lindbeck, 37.

40 Noam Chomsky, Language and Mind, 171.

41 Lindbeck, 39.



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ABSOLUTE TRUTH

On the basis of the cultural and linguistic differences between the religions, how then are the notions

of unsurpassability and absolute truth to be understood? In Lindbeck’s view the cultural-linguistic approach is

open to the possibility that the religions may have notions of truth, of experience and of God, that are

incommensurate. This means that there is no common framework within which to properly compare religions.

In the cultural-linguistic approach truth claims are intra-systemic rather than ontological, thus giving doctrine

a force of truth that arises from the grammar of the religion.42 The utterances are systemically true when they

cohere with the relevant context. Like the use of language, its correct use cannot be detached from a particular

way of behaving and only in the performatory use do they acquire propositional force. Doctrines require

referential specificity for them to have first order or ontological truth and falsehood.43 Truth in this sense is

relative to the actual context of the religion and is construed as having a symbolic efficacy. The proposition of

the religion is true to the extent that its objectives are interiorised and exercised by groups and individuals, in

such a way that their existence conforms to the ultimate reality in the way the religion proposes it. To the

extent that this does not happen the proposition of the religion is false.44 One has to be inside the context and

be skilled in the “language” of the context before the propositional meaning of an affirmation can become

determinate to be rejected. Doctrines are therefore not necessarily permanent or unconditional but may be

temporary, accidental or even reversible. The reason for this is that for Lindbeck technical theology and official

doctrines are second order discourse, and their truth or falsehood is determined within the context of the

religion. Put another, the question of truth or falsehood is relevant only “when one is seeking to align oneself

and other performatively with what one takes to be the most important in the universe.”45 Doctrines, then, are

to be understood in a categorical sense, which means that even if there were only one religion it would still be

opened to falsehood in the same way a correct map may be used in an incorrect way. The category of an

unsurpassable, true religion is capable of being utilized in a manner that corresponds to ultimate reality, and

thus being ontologically (and “propositionally”) true, but is not always and perhaps not usually so employed.46

For Lindbeck, the relevance of the cultural-linguistic approach is seen in the fact that an increasing number of

people in the post-Christian period regard religions as possible sources to be used in articulating and organizing

42 Ibid., 49.

43 Ibid., 68.

44 Ibid., 51.

45 Ibid., 69.

46 Ibid., 52.



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the experience of the inner self. 47

ACHIEVEMENTS OF THE CULTURAL-LINGUISTIC APPROACH

There are two critical achievements of the C-L approach. The first is that is provides a way to overcome a

significant point of religious conflict: the assumption that religions are oriented to the same goal. This

assumption, which arises from the perception that there is a core experience common to all religions, leads to

the expectation that one religious community should be able to see things the way another does and be

embrace the values and practices of the another. The cultural-linguistic approach recognises, respects and

treat religions as real the cultural communities. These cultural communities, through their symbols, myths and

stories, form and shape those who belong to them. The individuals, as creatures of their respective cultures,

have experiences and feelings that are made possible by their cultures. These experiences are unique and must

not be collapsed into the experiences and feelings of another culture. All cultures do not want the same things

and different feelings arise from membership in different religions.

Another achievement of the Cultural-linguistic approach is that it provides religious communities, as

cultural communities, with a linguistic framework to resolve conflicting assertions of absolute truth. Truth

claims, which are often expressed in doctrines, are seen as intra-systemic but, like the grammatical rules within

a language, must be held as absolute within the context of the language. Each religion has its own set of

grammatical rules, for which adherents must develop both knowledge and skill to participate effectively. Any

attempt to compress one set of grammatical rules into another or the use one set of grammatical rules to

eclipse another will not lead to an accurate articulate of the religion. Armed with an awareness of the Cultural-

Linguistic approach, the protagonist in a situation of conflict will appreciate the need to learn the grammatical

rules by which the religion is accurately articulated.

QUESTIONS TO ANSWER

Despite the persuasiveness of the cultural-linguistic approach it is vulnerable to at least two important

criticisms. The first is that it seems to require that the religions be perceived as existing in a compartmentalized

way, as units isolated from each other. This academic perception of the religions, it is argues, is contrary to

their real modus operandi. It is especially true of contexts like Africa and parts of Asia, that people who

subscribe to different religions are sometimes in the same family unit. Moreover, the insistence on an intra-

47 Ibid., 22 & 41. This cultural-linguistic approach understanding religion is shared by persons in the fields of the philosophy of religion and

comparative religion. For example, Leonard Swindler argues that religious truth must be related to the cultural milieu of the speaker and

the hearer because truth is dialogical and bound up with language. Swidler, After the Absolute: The Dialogical Future of Religious Reflection

(Minneapolis, Fortress Press, 1990) 11-12,



254

systemic approach suggests that one can only question or understand the assertions of the religion from the

inside, which means no satisfactory understanding of the religions can be ever formed by one who is not

disciple of the faith. The idea that a set of concepts is unique to a particular religion is more imaginary that real.

The cultural-linguistic approach misses must reckon with the fact that the context in which the religions exist

is a plural context and not a cultural ghetto. This means that religious assertions are made and have to be

understood in that context of plurality. It is illusionary to imagine that a religion can so isolate itself that the

rules governing its activities and concepts are seen as peculiar to that religion and can be assessed only from

the point of view of the adherents. This narrow understanding of context and concepts does not seem to be

viable in a situation of plurality, where there are intersecting and overlapping religious boundaries.

A more realistic way to think of today’s context of plurality is in line with Schreiter description. He has

listed three characteristics of the contexts we live in today that have a bearing on how we understand the

relationship between the religions. If Schreiter were correct, it would make Lindbeck’s propositions about we

understand the plural context null and void. The first characteristic is what Schreiter calls the deterritorialized

context, which is has come about because of the compression of space caused by globalization. The second

characteristic is that context today is hyperdifferentiated. This means that as a result of “the compression of

time, the world of cyberspace, and the movement of peoples mean that people are now participating in

different realities at the same time.”48 The third characteristic of context today is its hybridised nature. This

is probably best illustrated with reference to the communication technology. The compression of space is

making easy for cultures with thousands of miles between them to develop habits and practices that are

similar, as they draw from the same pool of discourse. Therefore, the notion of a pure culture is probably more

an aspiration than a reality.49

INTERCULTURAL HERMENEUTICS

So, rather than understanding the religions as the “enclosed compartments” as we find in Lindbeck,

we should view the space in which religions operate as communities without walls. Already we are experiencing

a situation where all the major religions are drawing from the same global stock of discourses about human

rights, liberation, feminism and ecology. Much of what is happening in modern societies can be called an

“osmosis of discourse” where there is an interchange of use in religious concepts and symbols across the

religious divide.50 It seems that rather than focussing on intra-systemic hermeneutics, which tends to treat the

religions as ghettos, the plural context calls for an intercultural approach to hermeneutics, in which the

different religions are engaged in a genuine dialogue in search of understanding. Intercultural hermeneutics

48 Robert Schreiter, The New Catholicity: Theology Between the Global and the Local (Maryknoll, NY: Orbis, 1998), 26.

49 Schreiter, The New Catholicity, 27.

50 John May, After Pluralism: Towards and Interreligious Ethic (London: LIT Verlag, 2002), 58.



255

situates itself as an alternative to Lindbeck’s cultural hermeneutics. It explores the conditions that make

communication across cultural divides possible, not only in terms of the framework of meaning but also in

terms of the rituals and the material aspects.51 The aim of intercultural hermeneutics is to communicate

appropriately, that is, in a way that does not do violence to the hearer’s cultural mode.52 As we shall later see,

semblances of intercultural hermeneutics can be seen in Comenius’ hermeneutics of harmony. In his view,

creation, revelation and eschatology we see the basis for a hermeneutic of harmony. An approach that takes

cognizance of the intersecting and overlapping nature of culture is more viable in a plural context than one

that seeks to foster the notion of cultural particularity.

The second criticism of the cultural linguistic position relates to its conception of truth as contextual or

categorical. Lindbeck argues that from a categorical point of view there could be notions of truth that are

incommensurate, despite their claim to be unsurpassable. He makes a distinction between the intra-systemic

and ontological approaches to truth, which relate respectively to truth as coherence and truth as

correspondence. For him, there is no correspondence between religious truth claims and reality in and of itself.

Doctrines function as constituting a form of life, a way of being in the world, which itself corresponds to the

Most Important, the Ultimately Real.53 Lindbeck opts for the coherence theory of truth over the correspondence

theory because he perceives each religion as a self-contained system, thus making it impracticable to speak of a

common framework or of common criteria for assessing truth claims.

It seems, though, that one must first accept that the religions are self-contained systems in order to

accept this application of the coherence theory of truth. The intra-systemic approach must come to terms with

the fact that the religions are not proposed simply as culture-specific systems but as having universal

propositional force. Instead of treating their truths as propositional only in a given context, both Christians and

51 Schreiter, The New Catholicity, 29. Schreiter makes a distinction between inter-cultural and cross-cultural communication. The latter refers

to communication across boundaries while the latter refers to generalization that can be made about inter-cultural communication based

on analysis of different intercultural encounters. Culture is understood as consisting of three aspects: the ideational, which relates to beliefs,

values and attitudes; the performance, which relates to rituals; and the material, which relates to artefacts (language, food, clothing etc)

that become a source for identity.

52 Schreiter, 33. In Gadamer’s extensive study on hermeneutics [Truth and Method (London: Sheed and Ward, 1975)], the details of which

are beyond the scope of this study, the hermeneutical situation is analogous to what we mean when we speak of inter-cultural hermeneutics.

According to Gadamer, when seeking to understand a text it is important to observe that the text speaks into a situation determined by

previous opinions. Moreover, only because a text must be brought out of its alienness and become assimilated is there anything for the

person who is seeking to understand it to say. See Gadamer, Truth and Method, 429.

53 Lindbeck, 65.



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Muslims, for example, regard their truths as universally propositional and as corresponding to ultimate reality

in and of itself. This means that the account that Lindbeck gives of the religions differs radically from the account

that believers in the religions themselves give.54 His assertion that the religions are different systems and make

truth claims relevant primarily to the system they represent is different from the position in the different

religions that their truths can be affirmed by all, irrespective of one’s location in life – hence the ongoing

missionary activities by the religions. What seems to be needed is an approach that does not dismiss the

propositional intention of the religious claims at the outset but takes them at face value and then to consider

their viability. In this way can the imperative of dialogue is maintained in the plural context. If one dismisses the

propositional intent of religious claims, it amounts to not taking them seriously enough to engage them. By

making relative the propositional intent of the religions, the cultural-linguistic approach makes dialogue null and

void.

CONCLUSION

The end result of the intra-systemic approach to truth, then, is that it rules out the necessity of dialogue

even when the competing assertions in a plural context seem to warrant it. Lindbeck arrives at the closure of

dialogue, which brings into question the viability of the Cultural-Linguistic approach for a plural context. An

approach that takes dialogue seriously seems to be a fundamental prerequisite for the plural context. The

existence of different theologies of pluralism already reflects the importance of dialogue. Therefore an approach

that seeks to bring closure to dialogue is at variance with the logic of pluralism.

In the cultural-linguistic approach to religions, truth claims have to be understood and judged within

the context of each religion. There is no common framework for assessing religious truth, which means

conflicting notions of truth have to be allowed to co-exist. A major risk of this approach, however, is that it will

bring a closure to dialogue by treating all religions as ultimate in their own terms. The cultural-linguistic approach

is vulnerable to critique but its perception of religions as unique cultural communities creates some space for

mutual respect between the religions. This is the starting point of the reduction of conflic.

54 It should also be noted that the theory of truth as coherence is dependent on the rationalists’ and logical positivists’ attempts to establish

facts by the use of reason unaided by the senses. For a discussion on this see Brian Carr, “Truth,” An Encyclopaedia of Philosophy, ed. G. H.

R. Parkinson (London: Routledge, 1988), 86. Lindbeck’s approach here should not surprise us for he limits the effectiveness of the

experiential-expressive approach to religion. By centring his analogy of the religion on language he betrays a rationalist intent of

demonstrating the truth of the religion by reason.



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TCKS, IDENTITY AND LEADERSHIP

Monika de Waal

Unique Sources/Erasmus University Rotterdam, NL

[email protected]

Abstract

Cultural identity is renegotiated throughout the life of a Third Culture Kid, a TCK. The

hypothesis of the overall research tries to answer the question if there is a direct relation between

being a TCK and styles of leadership. In the first study, TCKs and non-TCKs, in total 237 respondents,

were being compared on their personality characteristics and intercultural competencies by using the

Multicultural Personality Questionnaire (MPQ) Intercultural Readiness Check (IRC), and Multifaceted

Leadership Questionnaire (MLQ). Narrative inquiry, used for the second research, is the telling of

stories to create an in-depth profile of the respondent’s life experiences relevant to the research

question being investigated.

Belonging is a core theme for TCKs and the tendency in the narrative research shows that TCKs

belong to relationships, and thus descibe belonging subjectively. Transition related emotions and

memories play an crucial role in the development of their cultural intelligence.

PURPOSE

Cultural identity is renegotiated throughout the life of a Third Culture Kid. The term Third

Culture Kids (TCK) refers to children who spent a significant amount of their developmental years

outside the passport country of their parents (Pollock and van Reken, 1996). Their cultural identity

results from concrete interactions in different cultural settings, so it changes transculturally and is very

personal (Tannenbaum & Tseng, 2015). Therefore, most empirical studies have focused on qualitative

data analysis. This has the advantage of allowing the TCKs to describe their personal values and

perspectives, instead of restricting their responses to answering structured questions (Klenke, 2008).

The hypothesis of the overall research tries to answer the question if there is a direct relation

between being a TCK and styles of leadership. In the first study, TCKs and non-TCKs, in total 237

respondents, were being compared on their personality characteristics and intercultural

competencies by using the Multicultural Personality Questionnaire (MPQ) Intercultural Readiness

Check (IRC), and Multifaceted Leadership Questionnaire (MLQ). See figure 1.



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This empirical analytical research has provided the base for a narrative inquiry research to

collect qualitative data about the cultural identity of TCKs. The focus for the narrative research is based

on previous results obtained through the MPQ, the IRC and the MLQ. Beside some interesting

biometrical data results, such as the significant correlation between level of education of a TCK and

the preference for transformational leadership, a significant negative correlation showed between

being a TCK and Emotional Stability, and a significant positive correlation between being a TCK and

Intercultural Sensitivity and Intercultural Communication. Another significant positive correlation

between TCKs and Openmindedness showed. See overview 1: Choice of significant correlations TCKs-

non TCKs.

A significant correlation showing the relationship between TCKs and leadership styles was not

found. However, mediated relationships were found through aspects as Openmindedness and

Flexibility. See table 1: Mediated relationships between TCKs and leadership styles.

Narrative inquiry creates the opportunity to further explore these results qualitatively.

Narrative inquiry is the telling of stories to create an in-depth profile of the respondent’s life

experiences relevant to the research question being investigated (Labaree, 2006, p. 26). The narrative

inquiry has been a combination of semi-structured interviews and a poem inspired by auto-

ethnographic poetry.

METHODOLOGY/RESEARCH DESIGN

The methodology consisted of two studies. In the first study, TCKs and non-TCKs, in total 237

respondents, were being compared on their personality characteristics and intercultural

competencies by using the MPQ, IRC, and MLQ. The results of the first study formed the foundation

of the second study.

The second study consisted of four different steps. Firstly, to approach 10 male and 10 female

TCKs that had lived in either two or four to five countries. All these TCKs previously filled in the MPQ,

IRC and MLQ, so the results from those questionnaires could be compared to the results from

qualitative data analysis. The combination of both research methods provided insight on personal

values and perspectives of the TCK participants. The biometrical data added to the questions

of the interview and the narratives.

Secondly, an email was sent to the TCKs that were approached and confirmed their

participation to fill in the blanks in a poem named ‘Where I’m From’, using a structured format inspired

by auto-ethnography poetry. The original poem was readjusted to focus especially on Cultural Identity

and Belonging, based on the results of the empirical analytical research.

Thirdly, the poems and the transcribed interviews were loaded into ATLAS.ti to code. During

the coding process, the focus was placed on Belonging, Transitions and Values. These codes have been

chosen, because they are related to the development of Third Culture Kids.



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And to conclude, the coding results are summarized in an overview of quotations. These

results are to be interpreted now.

FINDINGS AND IMPLICATIONS

In the first research the TCKs and non-TCKs, in total 237 respondents, were being compared

on their personal characteristics and intercultural competencies by using the MPQ, IRC, and MLQ.

There are significant correlations to be presented, some through mediated regression analysis. Based

on these correlations, the narrative inquiry focused on the impact on cultural identity and the

expressed preference for a cultural intelligent leadership style.

The second research is still in the coding phase, but the initial results shows a number of

tendencies. When TCKs are asked about where they are from, there is a discrepancy between their

objective and subjective belonging. Thus, the results suggest that many TCKs do not see their place of

birth or current city of residence as where they are from. When the TCKs were asked about belonging

and what that means to them, they mentioned relationships and family members instead of a

geographic location. When it comes to food, items or nature, the results indicate that TCKs mention

things from the host culture more often compared to things from their (parents’) passport culture.

They also mention items that they had to leave behind more often compared to things that are still in

their possession. Lastly, when it comes to values, there is a difference between TCKs’ personal and

family values. Many TCKs who have been brought up religiously have left that religion. However, the

results indicate that most TCKs will identify with being spiritual in different ways.

RESEARCH LIMITATIONS

The passport culture of more than 70% of the respondents in the first research was Dutch. In

the second research it was about 80%. The conditions to repeat the empirical analytical study or the

narrative study are virtually impossible.

PRACTICAL IMPLICATIONS

The research on the impact of hybrid personalities as TCKs in organizations, especially in

leadership positions, will provide us with insights in the skills of these people. In a dichotomized

globalizing world open mindedness is an essential skill. This has been found to be one of the

characteristics of TCKs.

VALUE OF THE PAPER

The focus of previous research concerning TCKs often highlights the negative effects

of their cross-cultural experience, such as depression and identity crisis and the difficulty of the re-

integration upon return in the passport country (reverse culture shock). In addition to the documented

negative effects for TCKs, the cross-cultural experiences also have positive influences on the

development of TCKs. Into this aspect less research has been done. Because the labor market is



260

increasingly diverse, the cultural experiences of TCKs may count as benefits. We have explicitly looked

for the positive effects of TCKs cross-cultural experience, such as more global engagement and its

impact on potential for leadership.

KEYWORDS

Leadership-identity-competences-third culture kids

BIBLIOGRAPHY

Klenke, K. (2008). Qualitative research in the study of leadership. Bingley, UK: Emerald

Group Publishing.

Pollock, D.C., & Van Reken, R.E. (1999). The Third-culture Kid Experience: Growing up among

worlds, Intercultural Press, Yarmouth, ME.

Tannenbaum, M., & Tseng, J. (2015). Which one is Ithaca? Multilingualism and sense of

identity among Third Culture Kids. International Journal of Multilingualism, 12, 276-

297. doi:10.1080/14790718.2014.996154

APPENDIX

Figure 1: Research model



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Overview 1: Choice of significant correlations

Leadership: Transformational

CE – Transformational (.40**)

SI – Transformational (.32**)

OM – Transformational (.39**)

Leadership: Transactional

Flex – Transactional (-.28**)

Leadership: Laissez-faire

MU – Laissez-faire (-.37**)

SI – Laissez-Faire (-.37**)

ES – Laissez-faire (-.37**)

Worked abroad – Interaction (.83**)

Overview 2: Choice of significant correlations TCKs- non TCKs on IRC, MPQ and MLQ.

Difference in Correlations comparing TCKs to Non-TCKs

(non-TCK/TCK)

• Cultural Empathy - Transactional**: (0,38** / 0,04)

• Open Mindedness – Laissez-faire*: (-0,01 / -0,30**)

• Cultural Empathy - Laissezfaire*: (-0,05 / -0,37**)



262

CONNECTING ACROSS CULTURES: AN EMPIRICAL EXAMINATION OF

MULTICULTURAL INDIVIDUALS AS GLOBAL LEADERS

Farah Yasmine Shakir

IESE Business School, ES

[email protected]

ABSTRACT

Global leadership involves the ability to connect with those from different cultures. Little empirical

work has studied connecting with others within the subjective nature of management across different

cultures. Management literature time and time again, emphasizes the need for global leaders to be

able to function across cultural settings. One way to derive such an ability is through the know-how

and experiences of individuals with a multi-cultural identity. With a focus on connecting with others

across cultures, we consider how individuals with a multicultural identity perform the role of a global

leader. Through a qualitative analysis of in-depth interviews with multicultural individuals in global

leadership positions, the paper fulfills two objectives. Firstly, considering their narratives we theorize

on emotive, cognitive and behavioural dimensions for connecting across cultures and highlight specific

actions for each. Secondly, we study the experiences of having a multi-cultural identity that involve in

resulting qualities of empathy, perspective-taking and integration to connect across cultures within

leadership roles.

Keywords: global leadership, cultural identity, multicultural, connection across cultures

PURPOSE

Effective global collaboration requires people to connect with those from different cultural

backgrounds. This can involve creating interpersonal connections with colleagues and business

partners from different cultural backgrounds. Connecting with people from different cultural groups

can be challenging due to a sense of in-group vs. out-group and the cognitive and emotional

consequences such social categorization may generate (Pittinsky & Simon, 2007; Tajfel & Turner,

1979). In terms of global leadership, little is known about what concrete behaviors global leaders

engage in to build connection across cultures. Defined as the endorsement of two or more cultures

(Schwartz, Birman, Benet-Martinez, & Unger, 2015), we study how multicultural individuals in global

leadership roles connect with people from different cultural backgrounds. Multicultural individuals

have been considered as good candidates to assume global leadership roles (Brannen & Thomas,

2010; Fitzsimmons, Lee, & Brannen, 2013). In particular, we study: (1) How multicultural global leaders

create connection across cultures? (2) How do their experiences of multicultural identities facilitate



263

such a process? The cognitive and integrative complexity multicultural individuals enjoy (Tadmor et

al., 2006; 2009) may allow people to be more conscious about cultural differences and take

perspective, facilitating mutual understanding. In addition, their attributional complexity (Lakshman,

2013) and effective communication (Lee, 2010) can reduce negative emotions associated with pre-

matured judgment about others, hence fostering emotional unity among people from different

cultures. Furthermore, their capability for cultural frame-switching (Benet-Martínez, Leu, Lee, &

Morris, 2002) and adjustment (Nguyen & Benet-Martinez, 2013) allows them the flexibility to change

behaviors and achieve agreement with people from other cultures on how to proceed in joint projects.

Nevertheless, we located no research on how multicultural individuals may create connection across

cultures.

METHODOLOGY

Therefore, we adopted a qualitative research approach and collected data with semi-

structured interviews from twenty-six multicultural individuals who currently work with internal and

external constituents from multiple cultures. We were interested in the subjective experiences of

multicultural individuals, both positive and negative, and how these experiences enable them to

engage in behaviors for cross-cultural connection. Thus, we adopted a qualitative research design,

collecting data with interviews from key informants so as to understand the social and psychological

aspects of experiencing multicultural identities and how such experiences facilitate our informants to

create connection across cultures in their global leadership role (Ibarra, 1999). We used a narrative

approach that allowed participants to speak freely while maintaining focus on the research questions

and consistency among all the interviews. Through narratives, people can provide a reflection of how

they understand themselves (Martin, 1995). We coded the interviews according to key feelings,

impressions and descriptions of behaviors so as to identify recurring patterns pertinent to our research

questions. Following the iterative process recommended by Eisenhardt (1986), we examined each

within-case and cross-case data to explore theoretical reasoning. Specifically, we began coding by

identifying patterns of how multicultural individuals experienced and felt about their identities. We

then examined the behaviors they engaged in to connect with people from different cultural

background in their managerial roles. We then made inter-textual comparisons and identified themes.

FINDINGS & IMPLICATIONS

The results show that multicultural individuals generally lived through a wide range of identity-

related experiences in different stages of development which we outline. These experiences and

subjective feelings in turn enable them specific qualities (i.e., empathy, perspective-taking, and

integration) that foster their connection with people from different cultural backgrounds. We found

three types of identity-related experiences that led to empathy, perspective-taking, and integration,

which in turn foster multicultural global leaders’ behaviors for cross-cultural connection. The overall

framework of our findings is presented in Figure 1 (see appendix). We identified specific behaviors

that multicultural individuals engage in to create cross-cultural connection, and structured them into



264

a framework with cognitive, emotive, and behavioral dimensions. Based on perspective-taking, the

cognitive connection behaviors involve acknowledging the importance of other’s culture, identifying

commonalities among differences, and demonstrating a willingness to gain knowledge (about others).

Expressed by one of our informants:

You have to experience it to understand how hurtful it is to be stereotyped or face prejudice.

Having that experience, I can resonate with people who have had hard experiences of feeling foreign

and show them I understand their differences.

The emotive connection behaviors include being observant to behavioral cues, being

observant to emotional cues, and switching cultural frames according to cues based on empathy. One

respondent explained:

Being more attune to cultural nuances is a huge advantage. That ease to detect subtlety at

work in unfamiliar environments is very helpful. It tunes you in more so into human emotion. You can

pick up on how people are feeling more easily. Once you are attuned to what things can mean then

you look for other patterns of behavior that speak to the intent or the emotion that a conversation has.

The behavioral connection actions include exhibiting understanding for different norms,

explaining reasons for changing norms, and demonstrating expectations of norms. The third

dimension includes the integration of understanding different norms, eliciting change when necessary

and maintaining one’s own approach. A participant summarized this simply:

When moving around, you always find variability but you also find commonality. It’s about

acknowledging those differences in a positive way and reasserting your own values above cultural

variations.

THEORETICAL & PRACTICAL IMPLICATIONS

There is an emerging field of study that multicultural individuals may possess skills that have

benefits for international business (Benet-Martinez & Leu, 2006; Hong, 2010; LaFromboise et al., 1993;

Lee, 2010; Tadmor, Tetlock, & Peng, 2009; Thomas, Brannen & Garcia, 2010). However, in general,

those with multiple cultural identities, have remained largely ignored within traditional cross-cultural

studies (Doz, 2011). Our paper sheds light on how identity-related experiences of multicultural

individuals can foster cross-cultural connection, beyond the conventional outcomes of biculturalism

and multiculturalism. Such knowledge is important because it offers actionable insights for global

leadership development. Our paper contributes to the literature of global leadership in that it offers

concrete behavioral descriptions about how global leaders may create connection with colleagues and

followers across cultures. Such insights are important for the development of global leadership

beyond focusing on competences and traits, but on the engagement of concrete behaviors. In

addition, our research is consistent with the premise that many cultural training programs fail because



265

they tend to put too much emphasis on culture-specific knowledge (Earley, 2002). Rather than

asserting the need for knowledge of cultural specifics, we focus on the development of three

dimensions of connecting across cultures. As mentioned earlier, this approach underlines the thought

that cross-cultural adjustment (i.e., learning about and adapting oneself to the other culture) is not

the only recipe towards effectiveness in cross-cultural collaborations. Rather, we suggest that through

emotive, cognitive, and behavioral connection global leaders can strategically determine the most

adequate behavioral patterns for members involved in global collaboration.

APPENDIX

Figure 1: A Model of Experiencing Multicultural Identities and Connecting across Cultures

REFERENCES

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Opportunity. International Journal of Cross Cultural Management, 10(1), pp.5–16. pp.386–407.

Benet-Martínez, V., Leu, J., Lee, F., & Morris, M. W. (2002). Negotiating biculturalism cultural frame

switching in biculturals with oppositional versus compatible cultural identities. Journal of Cross-

Cultural Psychology, 33(5), 492-516.



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Doz, Y. 2011. Qualitative research for international business. Journal of International Business Studies,

42(5), 582–590.

Earley, P.C. (2002) Redefining interactions across cultures and organizations: Moving forward with

cultural intelligence. Journal of Organizational Behaviour. 24: 271-299

Eisenhardt, K.M. 1986. Building Theories from Case Study Research. Academy of Management Review,

14: 532-50,

Fitzsimmons, S. R., Y.-t. Lee, and M. Y. Brannen. 2013. Demystifying the Myth about Marginals:

Implications for Global Leadership. European Journal of International Management, 7(5): 587-603.

Ibarra, H., 1999. Provisional Selves: Experimenting with Image and Identity in Professional Adaptation.

Administrative Science Quarterly, 44(4), pp.764–791

LaFromboise, T., Coleman, H. & Gerton, J. 1993. Psychological impact of biculturalism: Evidence and

theory. Psychological Bulletin, 114, 395-412.

Lakshman, C. (2013). Biculturalism and attributional complexity: Cross-cultural leadership

effectiveness. Journal of International Business Studies,44(9), 922-940.

Lee, Y.T., 2010. Home Versus Host -- Identifying with Either, Both, or Neither? The Relationship

between Dual Cultural Identities and Intercultural Effectiveness. International Journal of Cross Cultural

Management, 10(1), pp.55–76.

Nguyen, A.-M. D., and V. Benet-Martinez. (2007). “Biculturalism Unpacked: Components, Individual

Differences, Measurement, and Outcomes.” Social and Personality Psychology Compass, 1: 101-114.

Pittinsky, T. L., & Simon, S. (2007). Intergroup leadership. The Leadership Quarterly, 18(6), 586-605.

Schwartz, Birman, Benet-Martinez, & Unger, (2015). Biculturalism: Negotiating Multiple Cultural

Streams. The Oxford Handbook of Acculturation and Health. Edited by Seth J. Schwartz and Jennifer

Unger.

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Tajfel, H., & Turner, J.C. (1986). The social identity theory of intergroup behavior. In S. Worchel & W.G.

Austin (Eds.), Psychology of intergroup relations (Vol. 2, pp. 7–24). Chicago, IL: Nelson-Hall.

Thomas, D.C., Brannen, M.Y. and Garcia, D. (2010). Bicultural individuals and intercultural

effectiveness. European Journal of Cross-Cultural Competence and Management, 1(4):315–333.



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THE ROLE OF PREVIOUS INTERNATIONAL EXPERIENCES FOR SIES. THE IMPACT

OF CULTURAL VALUES

Prof. Chiara Cannavale

University Parthenope, IT

[email protected]

Purpose:

Globalization promotes social dynamics that are “largely decentered from specific national

territories” (Kearney 1995, p.548), and has shifted the notions of spatial and temporal boundaries,

opening the doors to what is widely recognized as the “era of mobilities” (Ury 2007, Halfacree 2012)

and global boundaryless careers (Scurry et al 2013; Carr et al. 2005; Baruch 2004). The tendency to

move from one country to another has improved and is no more connected to specific carriers path

or work opportunities, but more and more connected to people’s inclination to explore and

experience new contexts, to overcome national and cultural boundaries (Tung 2008).

In a managerial perspective, globalization increases the complexity that companies have to

face: on one hand, globalization gives firm the possibility to sell worldwide and offshore their activities

according to specific locations advantages, but on the other, while geographical distance is reduce,

the psychological distance survives. Companies need interculturally flexible employees and managers

able to find a balance between the necessity to adapt, and the need to reach and defend a global

positioning.

In this context, self-initiated expats (SIEs) become an important source for organizations so

that 65% of expats today are SIEs (Tharenou & Caulfield, 2010). SIEs are highly skilled professionals,

who through individual initiative undertake international relocation for work (Inkson & Myers 2003,

Jokinen et al, 2008). They relocate voluntarily to a foreign country on their own initiative, i.e.

independently of any employer and without organizational assistance (Andresen et al 2013; Crowley-

Henry 2007; Inkson et al 1997). SIEs “tend to perceive their overseas experience as a means of self-

development or part of some other personal agenda” (Peltokorpi & Froese 2009, p.1099), and they go

through a process of cultural adaptation, i.e. of negotiation and contestation to find their space in the

new culture and its dynamics (Scurry et al 2013).

Because of their mobility and capability to adapt, they are very attractive for transnational

companies, which increasingly view international business skills development and foreign work

experience as part of career progression (Evans et al 2002, Stahl et al 2002, Suutari & Brewster 2000,

Vance 2005), and as a prerequisite to senior management positions (Forster 2000, Black et al 1999).



269

At the same time, SIEs pose some problems for organizations, because of their lack of organizational

embeddedness (Biemann &Andresen 2010), and also for the challenges connected to HR, leadership

(Biemann & Andresen 2010), and talent management (Doherty & Dickmann 2012).

This paper aims at filling this gap, focusing on the role of previous international experiences,

part of the individual experiences, which characterize the micro dimension of SIEs (Doherty 2013), and

particularly at exploring the impact of cultural values on this phenomenon. More precisely this paper

aims at answering the following research question:

RQ: Which is the interplay between previous international experiences and the decision to be

a SIE? Do individual values impact on that decision?

In order to investigate the role of cultural values, we refer to Schwartz Value Theory, which is

widely used to investigate personality traits (Parks-Leduc, 2014; Kajonius, P. J. et al., 2015; Giluk, T. L.,

& Postlethwaite, B. E., 2015; Peterson, M. F., & Barreto, T. S., 2014; Miles, A., 2015; Grankvist, G., &

Kajonius, P., 2015).


Our paper relies on a qualitative analysis based on semi-structured interviews of SIEs, which

allow developing a personal narrative. We are selecting participants among the alumni of our

institutions, social media, and the snowballing method. We want to reach the number of 20 interviews

for this first step.

The questionnaire collects information about the country of origin, the gender, social

relationship (single/in relationship), the career stage (early/mid career), the time in the host country,

previous international (work) experience, of people who respect Inkson et al. and Doherty’s criteria.

Questions are mostly related to what Doherty recognizes as the micro dimension of SIEs, i.e. individual

characteristics, individual background (demography, family situation, life stage), motivational drivers,

the job they are doing and the inclinations for the future (qualifications, work attitudes, type of

position, location embeddedness, job satisfaction, commitment, career orientation), and on the

adjustment (general, contextual, work). A last part of the questionnaire is dedicated to investigating

individual values via Schwartz’s questionnaire. In order to define the questionnaire and the interview

guide, we have been involved in a pilot study with two participants.

Data will be analyzed through thematic analysis (Maitlis, 2012), considering the frequency of

occurrence and their relationship with cultural values.


We are still conducting interviews. However a pilot study seems to confirm that SIEs are

different from assigned expats or immigrant. In line with the literature on the topic (Doherty et al

2013; McPhail et al 2012; Biemann & Andresen 2010; Inkson et al, 1997), the individual (or micro)



270

dimension has a strong impact on their decision. Previous international experiences seem to help SIEs

to develop their competences and improve their inclination to go abroad and to imagine a different

and transnational carrier path. This inclination seems to be connected to some of Schwartz’s values

and data are under collection. A better understanding of the personality of SIEs can help understand

issues connected to SIEs’ integration and involvement into the organization. Given SIEs’ capability to

be embedded in different cultural environments, a better understanding of their personality and of

the trigger factors can also put some lights on the individual factors connected with the development

of cultural competencies. Last but not least, this first exploration of SIEs can open different areas of

research. Just as an example, one interesting area is represented by an investigation of the

organizational issues connected with the recruiting of SIEs. The linkage between SIEs and

entrepreneurship could represent another area.


Our research is still at an embryonic level and the number of interviews is still limited. In order

to generalize our results, we need more interviews and also to elaborate some statistical analysis on

the data about individual culture. These limitations represent a starting point for further research on

the topic. However the topic is interesting and seems to open different research paths. Our focus now

is on the reasons behind the decision to become an SIE, and more precisely on previous international

experiences and individual values. A better understanding of the personality of SIEs can be helpful for

companies, which can overcome some of the challenges connected with their involvement in the

organization.


Our study can be useful for companies, which are competing at a global level to attract the

best SIEs (Thorn 2009). At the same time it can be helpful to understand more about their satisfaction

and potential involvement into the activity and solve the problems connected to talent management,

global carriers and leadership.

What is original/ what is the value of the paper?

Although the interest in SIEs has improved during the last years (Thomas et al 2005,

Richardson 2006, Al Ariss & Syed 2011, Doherty et al 2011, Crowley-Henry 2012, Froese 2012), still

little is known about the motives behind SIEs (Cerdin 2013, Doherty, Dickmann & Mills 2011, Froese

2012, Thorn 2009), and more work is needed to further our understanding of subjective experience

and its impact on identity (Scurry et al 2013). In addition, while scholars have focused on the social

profile of SIEs (the differences between AS (assigned expatriates) and SIEs (Suutari & Brewster 2000,

Wechtler & Wurtz 2013), and on the topics connected to their carriers and job preferences (Doherty

2011, Suutari & Brewster 2000), more so for females (Wechter & Wurtz 2013), nothing is known about



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the personality of SIEs and the individual values which push them to start their international

experience and to transform it into a job opportunity.

Keywords: SIEs, international experience, individual values,

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Dickmann, M., Doherty, N., Mills, T., & Brewster, C. (2008). Why do they go? Individual and corporate

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International Journal of Human Resource Management, 19(4), 731-751.



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Doherty, N., Dickmann, M., & Mills, T. (2011). Exploring the motives of company-backed and self-

initiated expatriates. The International Journal of Human Resource Management, 22(03), 595-611.

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Doherty, N., Richardson, J., & Thorn, K. (2013). Self-initiated expatriation and self-initiated expatriates:

Clarification of the research stream. Career Development International, 18(1), 97-112.

Evans, P., Pucik, V. and Barsoux, J.-L. (2002), The Global Challenge: Frameworks for

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CONSTRUCTIVE INTERCULTURAL MANAGEMENT A PARADIGM SHIFT?

PROF. CHRISTOPH BARMEYER

UNIVERSITÄT PASSAU, NO

[email protected]

ABSTRACT

Traditionally, intercultural management in theory and practice has stressed for decades conflictual

aspects of cultural differences and intercultural interactions. In this conceptional paper, we argue that a

paradigm shift in intercultural management- from a problem-oriented perspective stressing the differences and

difficulties of intercultural interactions, to a more solutions-oriented perspective focussing on cultural

complementarity and intercultural synergy - is necessary and brings a new orientation to this field.

Interculturality can be understood as a dynamic process of joint construction and negotiation of meaning and

action that leads to a broader understanding of reality and to new solutions in working practices. The concepts

of complementarity, as a result, and intercultural competencies, as individual and collective resources that arise

in social processes, are elaborated on in this paper. After an explanation and discussion of these concepts, the

paper deals with the conditions which may favour the achievement of cultural complementarity and

intercultural synergy and thus contribute to a more constructive approach to cultural otherness in management.

Keywords: Constructive Intercultural Management, cultural complementarity, intercultural synergy, paradigm

shift

Intercultural management research has been dominated since its inception by an interest in differences

and difficulties caused by culturally influenced values, norms and practices in work-related interactive situations.

Interestingly, largely neglected in intercultural management research are the constructive and enriching aspects

of cultural diversity which may result from the interaction of differing experiences, perspectives and skills of

interactants. This focus has been demonstrated most recently by Stahl and Tung (2015). In a content analysis of

nearly 250 articles published over a period of almost 25 years in the Journal of International Business Studies,

the internationally most influential periodical on international management research, the authors demonstrate

how the problems and disadvantages of intercultural management settings are highlighted and their advantages

and innovative potential are largely disregarded:

“While there are suggestions in the literature that cultural diversity can offer meaningful positive



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opportunities to individuals, groups, and organizations, we argue – and demonstrate empirically

– that the problem-focused view of cultural diversity is by far predominant in research on culture

in International Business. In other words, we know much less about the positive dynamics and

outcomes associated with cultural differences than we know about the problems, obstacles, and

conflicts caused by them.” (Stahl & Tung 2015: 393)

The fundamental assumption of this constructive approach to cross-cultural scholarship is that differing

culturally influenced values, norms, behaviours and practices can result not merely in actions and interactions

which are problematic but also in those which may be complementary and therefore positive in nature. This

proposition leads to the central concepts of cultural complementarity and intercultural synergy illustrated by

Barmeyer and Franklin (2016) in their edited collection of case studies. Building on the insights of social

constructionism (Berger & Luckman, 1966) interculturality is seen in these concepts as a dynamic process of

joint construction and negotiation of meaning and action (Brannen & Salk 2000, Romani et al 2011).

This presentation elaborates on these two concepts:

1. Cultural complementarity describes a state in which specific and seemingly irreconcilable, but in

themselves equally valuable characteristics (such as values, beliefs, attitudes, norms, behaviours,

practices) of members of different groups complement each other and in so doing form a coherent,

functioning whole (Fang 2012). Viewed interculturally, when individuals or groups from diverse cultural

settings interact together, these properties can represent relative differences. Intercultural

complementarity (Barmeyer 2007; Hampden-Turner 2000), when it is deliberately used as an

intercultural management approach, combines these differences so that they result in complementary

actions and behaviours rather than in those which are contrasting and potentially conflictual. The value-

added is improved performance, in that the features best suited to the situation, the job in hand and

the persons involved are employed.

2. Certain cognitive, behavioural and affective competencies (knowledge, skills, attitudes, characteristics)

are necessary in order to achieve cultural complementarity in management interaction at both the

organizational and the individual level. As Barmeyer and Franklin (2016: 201-202) describe, three

fundamental conditions need to be met for these competencies to create the cultural complementarity

intended: “The individuals involved must possess a value-free openness to enable them ethno-

relatively to recognize and value the characteristics and properties of other (cultural) groups.” They

move from rejecting or merely tolerating cultural otherness towards accepting (Bennett 1986) and

valuing it (Cui & Van den Berg 1991). Thus, the characteristics of other groups acquire the status of

strengths. Thus there are no polarities such as right/wrong or either/or but continua of both/and. The

characteristics valued as qualities and strengths are consciously employed as resources and combined

to correspond best to the situation to be managed in a given context.

In the context of international management, intercultural synergy can be regarded as the results of the

combination and interaction of individuals from different cultural settings and which are of higher quality than



277

the sum of the individual actions (Barmeyer 2007). An important feature of intercultural synergy is that at the

initiation of the interaction these qualitatively superior results are unknown in nature (and in this way different

from cultural complementarity). However, when achieved, these results are seen as desirable and, thanks to the

complementary viewpoints and characteristics available, as a value-added for social systems in general and for

organizations in particular (Adler 1980). This value-added is the result not merely of establishing a

complementary relationship among cultural othernesses with their respective viewpoints and advantages (as in

complementarity). Rather the benefit is created by permitting and supporting the generation of a synergistic

relationship among cultural othernesses. As Barmeyer and Franklin (2016: 203) put it, “meanings and actions

are co-constructed and negotiated in social interaction. As a result of the differing culturally influenced

perspectives, values and practices of the interactants, these meanings and actions have at least the potential to

be creative and innovative.”

After an explanation and discussion of these concepts, the third part of our presentation deals with the

conditions which may favour the achievement of cultural complementarity and intercultural synergy and thus

contribute to a more constructive approach to cultural otherness in management.

References

Adler, N. (1980). Cultural synergy: The management of cross-cultural organizations. In: Burke, W. W. &

Goodstein, L. D. (Eds), Trends and Issues in OD: Current Theory and Practice, 163–184. San Diego:

Pfeiffer & Company.

Barmeyer, C. (2007). Management interculturel et styles d’apprentissage. Etudiants et dirigeants en France, en

Allemagne et au Québec. Québec: PUL.

Barmeyer, C. / Franklin, P. (Eds.) (2016). Intercultural management. A case-based approach to achieving

complementarity and synergy. London: Palgrave.

Bennett, M. J. (1986). A developmental approach to training for intercultural sensitivity. In: International Journal

of Intercultural Relations, 10, 179–186.

Berger, P. L., Luckmann, T. (1966). The Social Construction of Reality. A Treatise in the Sociology of Knowledge,

New York, Doubleday.

Brannen, M. Y. / J. Salk (2000). Partnering across borders: negotiating organizational culture in a German-

Japanese joint venture. In: Human Relations, 52:4, 451-487.

Cui, G. /van den Berg, S. (1991). Testing the construct validity of intercultural effectiveness. In: International

Journal of Intercultural Relations, 15, 227– 241.

Fang, T (2012): Yin Yang: A New Perspective on Culture. In: Management and Organization Review, 8: 25–50.

Hampden-Turner, C. (2000). What we know about cross-cultural management after thirty years. In: D. Lynch &

A. Pilbeam (Eds), Heritage and Progress. From the Past to the Future in Intercultural Understanding,

Bath: LTS, 17– 27.



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Romani, Laurence/Sackmann, Sonja/Primecz, Henriett (2011): Culture and negotiated meanings: the value of

considering meaning systems and power imbalance for cross-cultural management. In: Primecz,

Henriett/Romani, Laurence/Sackmann, Sonja (Eds): Cross-Cultural Management in Practice. Culture

and Negotiated Meanings. Northampton: Edward Elgar, 1-18.



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THE ADAPTATION OF THE CULTURAL INTELLIGENCE SCALE IN CENTRAL AND

EASTERN EUROPE: APPLICATION OF FOCUS GROUPS METHODOLOGY

Buko, Svitlana - Independent, Slovenia. [email protected]

Johnson, R. Boyd - Indiana Wesleyan University - [email protected]

Mirza-Grisco - Diana Independent, Republic of Moldova - Germany - [email protected]

Abstract

The cross-cultural adaptation of quantitative research instruments represents a complex process that

implies methodological meticulousness and exactness. This article offers an empirical example of cross-

cultural transferability of the Cultural Intelligence Scale (CQS) which measures the capability of a person to

relate and work effectively in culturally diverse situations. The authors discuss the focus group approach of

adapting the cultural intelligence scale in Central and Eastern Europe, taking into consideration different

cultural nuances across geographical lines. The research project is based on the case of the CQS application

in post socialist countries: Ukraine, Republic of Moldova, Slovenia and Serbia. In each of the four countries

the same methodology was applied in an attempt to adjust the CQ scale locally and later measure cultural

intelligence in nation-wide, representative study.

In this article, the authors discuss the steps taken to adapt the CQ instrument, using forward and back

translation and focus groups with two different types of local populations in each country. This research

offers new insights for CQ competency application in intercultural management and leadership studies, and

in social sciences for both academics and practitioners.

Keywords: cross-cultural instrument adaptation, cultural intelligence, focus group, transferability.

Purpose

The purpose of the study is to analyze the cross-cultural aspects of quantitative research instruments

adaptation, through the application of the cultural intelligence scale (CQS) in four post-socialist countries:

Ukraine, Republic of Moldova, Slovenia and Serbia (two former USSR and two former Yugoslavia republics).

The adaptation process included forward and back translations of the original CQS tool and organization

of eight regional focus groups with the locals. The goal of the focus groups was to explore the perceptions

and understanding of the CQ tool concepts by the regional populations.

Even though the CQS has been tested in 98 countries, there are few studies which examine

transferability of cultural intelligence concepts in former socialist countries (Barnes, Johnson, Buko, 2010).

In cross-cultural research it is essential to take into consideration how other cultures interpret and view

concepts and questions, since it has a direct impact on the answers of respondents and empirical findings

(Bostjancic, Beljak, Johnson, 2016).

Cultural intelligence defined as “an individual’s capability to function and manage effectively in

culturally diverse settings” (Ang & Van Dyne, 2008, p.3), was first introduced in 2003. The concept was thus

operationalized into a Cultural Intelligence Scale (CQS), developed and tested for validity by Eearly & Ang



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(2003), based upon Sternberg’s multiple loci of intelligences. The CQS contains 20 items, measuring four

primary dimensions which cover distinct CQ capabilities: -Metacognitive, Cognitive, Behavioral and

Motivational (Van Dyne & all, 2008).

Research Project Methodology

The general goal of the study was to understand specifics of the cultural intelligence trends in Central

and Eastern Europe, thus the CQ quantitative studies in Ukraine, Republic of Moldova, Slovenia and Serbia

was carried out in several stages. However, this article focuses only on the adaptation of the cultural

intelligence scale in the four countries and respectively, only the focus group methodology of the research

project is discussed in the paper.

The adaptation of the CQ instrument

The methodology of this stage of the cultural intelligence research is based on the focus group approach

(Morgan, 1997).

CQS was first forward and back translated by a team of professionals and translated versions were used

during the focus group for the assessment and discussion of the scale in each country. For the purposes of

transferability and continuity, a very rigorous focus group implementation protocol was developed by the

research project team leads. The protocol was used for the training of the moderators in each country. The

protocol guidelines included the approach of sample selection, conducting the focus group, preparation of

the expert observers’ team, and post focus group expert debriefing. The moderators of the focus groups

were professionals from the respective countries which were trained by the researchers on the purpose of

the study, peculiarities of the CQ instrument and the focus group approach in this particular research

project. Post FG debriefing sessions were organized with all the observers and the moderator after each

focus group in order to ensure a holistic cross-cultural reflection on the field work. In each country two focus

groups were organized (total eight field events). in different regions within each country. Participants were

asked to review the 20 cultural intelligence (CQ) scale items, clarifying terminology questions and providing

their own definitions of cultural intelligence, and reflecting on the use of wording, concepts and terms in

their own language (Ukrainian, Romanian, Slovene, Serbian).


The richness of data collected through the focus group methodology in the four countries represents a

strong foundation for the cultural intelligence instrument adaptability assessment worldwide.

Two key groups of findings can be divided into content and methodology:

Research content related:

- Identification of country-specific perceptions of cultural intelligence

- identification of local population drivers and barriers of successful cross-cultural interaction

- identification of specific perceptions of the concepts used in the CQS items based on the language and

socio-historical context of the country.



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Methodology related:

- limitations of the original instrument were identified in each of the four countries. Wording that in the

instrument’s original language could be addressed and adjusted for each country.

- identification of tendencies across the four countries, concerning the understanding of the cultural

intelligence scale items and the cognitive challenges faced by participants related to certain concepts and

terms.


The limitations of the research include the small number of focus groups participants in each country.

More focus groups could have uncovered a myriad of perceptions of the cultural intelligence scale and

additional regional peculiarities. The diversity of regions on one side, as well as the various social contexts

could provide additional data to consider for further national data score analysis of each country. The

different sizes of the countries under research represent another limitation. And in the Republic of

Moldova, the Transnitrian region was not included in the study, as it is a separate independent entity,

though not recognized by the international community.


The practical implications of the paper lie in the guidelines that the authors have developed for the

research and practitioners’ community interested in cross-cultural research with a focus on Central and

Eastern Europe.

Among the key guidelines discussed in the paper are:

- Instrument Translation Guidelines

- Instrument Adaptation Guidelines

- Field research and Data Management Guidelines


In social sciences, as well as in leadership and management studies, there is a great interest in cross-

cultural studies, which raises many questions about the quality of the adapted and validated research

instruments used worldwide. The paper proposes a unique approach to cross-cultural adaptation of the

cultural intelligence scale in Central and Eastern Europe and offers practical guidelines for researchers and

practitioners, as well as applied focus group protocols on adapting instruments in cross-cultural research.

Bibliography

Barnes J., Buko S., Johnson B., & Kostenko N. (2012, October) Through the looking glass: Do Western

Leadership Assessments work in cross-cultural contexts. Paper presented at the 14th Annual International

Leadership Association Global Conference “Leadership Across the Great Divides: Bridging Cultures,

Contexts, and Complexities,” Denver, Colorado, USA.



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Bostjancic E., Belak U., Johnson B. (2016, December). Using focus group method for adaptation of the

Cultural Intelligence Scale in Slovenia. Paper presented at the international psychological conference

“Rostoharjevi dnevi” , Ljubljana, Slovenia, EU.

Johnson, R.B. & Buko, S. (2013) Cultural Intelligence Scale (CQS): testing cross-cultural transferability of CQS

in Ukraine. Study of Changing Societies: Comparative and Interdisciplinary Focus. 4(10)

http://www.scsjournal.org/

Kim, Y-J; Van Dyne, L. Cultural Intelligence and International Leadership Potential: The Importance of

Contact for Members of the Majority. Applied Psychology 61(2):272 - 294 · August 2011

Morgan, D. L.(1997). Focus groups as qualitative research (2nd ed.). London: Sage publications.


https://www.academia.edu/19772083/Johnson_R.B._and_Buko_S._2013_Cultural_Intelligence_Scale_CQS_testing_cross-cultural_transferability_of_CQS_in_Ukraine._Study_of_Changing_Societies_Comparative_and_Interdisciplinary_Focus._4_10_http_www.scsjournal.org_



https://www.researchgate.net/journal/1464-0597_Applied_Psychology


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THE ROLE OF INCLUSIVE RELIGIOUS EDUCATION FOR CULTURAL PERSPECTIVE

CHANGE

Dr. Thomas Gerard Grenham

Dublin City University, IE

[email protected]

Introduction

This presentation is about transformative education from a religious education perspective to

contribute to perspective change in European Societies. The discussion is grounded in a specifically

Irish perspective and the debate around religious education in Irish Primary Schools. Religious

education provides a service to the community in that it is part of forming integrated citizens for the

common good of society. Currently, in Ireland there is a lot of debate about the role of religion and

the teaching of religion in Irish primary schools. In view of the growing and changing cultural and

religious demographics in Irish society, the rethinking of religion and religious education in the primary

schools has become significant for parents and children. The reason for this debate is the changing

demographics of Ireland. There are more children from different cultural and religious backgrounds

living in Ireland. Ireland has experienced a lot of migration into the country as a consequence of

economic globalisation and the free movement of people and services across the European Union in

general. Ireland is no longer a mon-cultural or mono-religious Island. Its population is diverse and its

society is a plural society. Thence the need for choices around types of education and types of schools.

The Forum on Patronage and Pluralism in the Primary Sector commissioned by the former minister

of education in Ireland, Ruiri Quinn in 2011 has become the basis for much political and educational

exploration and its subsequent recommendations (2012) are being implemented. As a consequence,

the national council for curriculum and assessment (NCCA) is currently preparing a new state religious

education curriculum known as ERB and Ethics (Education about religions and Beliefs and Ethics). No

decision has yet been made when the new curriculum may be in operation in schools.

This will be a historical initiative as all religious education up to now has been developed and

delivered by the various patrons of Irish primary schools, mostly from a Christian and Catholic

perspective. Such a move by the state, should it become a reality, will open the way for all children

from various religious and secular backgrounds to learn about other secular and religious traditions

and to learn from these traditions. This has the potential to transform learning and teaching in this

area. This will further enhance an education for tolerance and may assist in the transformation of

possible sectarian and fundamentalist perspectives. The role of culture and religion in shaping society,



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and the human need of every person to be connected to a particular narrative, tradition, religion or

secular belief, is significant. The contemporary Irish primary school is a microcosm of the growing

cultural and religious diversity present in the broader Irish population. The primary school is a crucial

domain for inclusive religious education for a more plural, integrated and tolerant society. Such an

education, when implemented, could transform in a life-giving way individuals and communities to

live better lives, to create more inclusive societies and to build a more compassionate market place.

Catholic schools have launched a new curriculum in religious education in 2015 entitled: Catholic

Preschool and Primary Religious Education Curriculum for Ireland. The programme ‘Grow in Love’ is

being developed based on this Curriculum and will be fully implemented in 2018. Not only does this

Catholic programme educate within its own faith tradition, it also educates about other religious

traditions and includes ethics and values that these traditions reflect in the practices of the various

traditions.

Connected to Traditions

Every human being needs a sense of life-giving connectedness in order to contribute to a

meaningful and fruitful process of creating an inclusive society or community. Such a process can

include participation in a particular faith community, or it can be about fostering a sense of spirituality

in a so-called “non-religious” or purely secular belief society. There needs to be recognition that there

are diverse ways of living and thinking about humankind, its environment, and its meaning and

purpose. Different traditions and belief systems exist in a plural society.

It can be claimed that every human person is an embodied spiritual person. It is often said that the

human spirit is unquantifiable. This is experienced in sports, academics, film—in every facet of human

endeavour, the human spirit achieves new heights and potential. Therefore, it can be said that

spirituality does not necessarily depend upon a particular organised religion. A life-giving spirituality,

in the broadest sense, is not dependent upon a specific traditional “organised” religious worldview.

However, some form of actual or concrete expression is helpful that creates a structure in which our

deepest desires are surfaced, named and celebrated in a life-giving and meaningful way.

For Irish Primary schools a structured and organised religious worldview such as is reflected for

Catholics in the Alive-O programme, currently being replaced by the ‘Grow in Love programme’, and

the Church of Ireland in the Follow Me series can help shape a specific religious consciousness in order

to engage with other religious perspectives without diluting the particular religious identity of the

young adherents. Educate Together Schools have developed in Ireland since 1978 as an alternative to

so-called “religious” or confessional approaches to religious education. These schools are becoming

popular in Ireland as an alternative choice to provide a secular education that encourages and

develops the ethical dimension of every child. The universal spiritual nature of every child is nourished

through learning about and celebrating different religions in the classroom. This is religious education



285

which does not have the element of formation in a particular faith system or secular belief system.

Though the child in these schools learns about different belief systems and religious traditions, the

child has no particular experience of practicing a specific religion within the school setting. Children

are taught to appreciate the ethical dimensions of religions and belief systems. In this way, children

learn from what religious traditions teach about the environment, justice, spirituality, respect, and so

on.

Practice of any specific religion may indeed happen after school time, at home or indeed within the

faith community. Whatever parents may choose for their children, I believe that it is important to

have a specific formation in a particular religion – such as Christianity, Islam, Confucianism, and

Buddhism for example or indeed a secular belief – to give a tangible shape and identity to a particular

spiritual vision. Such formation helps when it comes to dialogue with alternative religions and points

of view. Without anchors, sign posts and the wisdom of long established traditions, spirituality

becomes reduced to whimsical feelings and fantasies that could be harmful and life-restricting.

Faith Formation only in Schools?

The debate about religious education in Irish schools hinges around whether or not a particular faith

formation within a specific religious tradition should happen in the school and during school time. If

faith formation happens outside of school hours that may be appropriate and leaves the school to

spend more time on areas like Maths, Science, English, and so on. But then why should the subject of

religious education be taken out of the school? One could ask why not take other subjects out of the

school such as Drama or PE for instance and have these subjects taught after school hours. Perhaps

parents could teach their children at home. Home schooling is becoming popular for some parents

interested in ensuring a wholistic education for their children. With growing internet access and

parents wanting individual educational requirements (special needs) for their children is the school

itself necessary? Of course the question can be asked: should schools be the only places where faith

formation takes place? The answer is no. The parish or the community of believers should provide

support for faith development and all stakeholders have to see themselves as partners in the wholistic

education effort.

The question of a particular religious ethos surfaces for many parents. With the majority of Irish

primary schools being of the Roman Catholic ethos, how will that ethos or “way of doing things” be

sustained and fostered in a multireligious and multicultural Ireland going forward? Religions are living

traditions that need to be practiced and lived to be understood as life-giving pathways for developing

life-giving and authentic spirituality. If we believe in a wholistic education for our children, then

spirituality is a vital part of that vision and needs to find a place within every school, home and

community.

The 2011 and the 2016 census illustrates the changing demography of Ireland. Such a changing

demography impacts upon all aspects of life in Ireland, especially its school system. The primary school



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system is predominantly Christian with over 90% of primary schools under Catholic church

management. Any change in Ireland’s school system will still have to reflect that the majority of the

Irish population is Roman Catholic. 84% indicated on the census form (2011) that they are Catholic, an

increase on the previous census. 6% of the total population in the Republic of Ireland indicated that

they have no religion. There is a significant increase in the presence of other religions. For example,

there are over 49,000 Muslims currently living in Ireland. Religion and the diversity of religious

traditions cannot be ignored in the Irish primary school system no matter what type of patronage and

ethos governs the school.

The Turn to Religion

Religion is enjoying a much more public space in western European societies. Religions and

religious practice are part of living faith systems, not to be privatised and fossilised in a secular

museum outside the school to be visited now and then. This is an important point when it comes to

religious education in Irish schools, especially in primary school. Societies cannot ignore the religious

issue in the world today. If they do, they do it at their peril. Think of 9/11 in America and numerous

other terrorist attacks around the globe. The western world particularly may have thought religion

was irrelevant prior to 9/11 as it pursued its secular agenda. However, upon reflection, western

countries are taking religion seriously not just for fear of terrorism but because of the influence for

good that a religious perspective may offer. This is why there is a turn to religion in the west as a

significant contributor to the political, economic, and social policy debates taking place in the public

square. Courses in Islam became very popular after the attacks on the Twin Towers in New York.

People are learning about religious fundamentalism as well as studying about the meaning and

purpose of religious pluralism. Think of countries where religion is at the heart of the nation-state,

particularly middle-eastern countries, North African and some Oceanic countries. It can be said that

the USA is a very religious country and is influenced by predominantly a form of Christian religion

when it comes to domestic and foreign policy despite its first amendment of its constitution which has

a clear separation of religion and state. Societies and particularly western liberal democracies, cannot

afford to ignore the religious dimension as having major political influence in the globalised world.

Therefore, citizens everywhere need to know about the religious politic in the global marketplace that

all citizens of the world share. For Ireland, schools both confessional and non-confessional play a key

part in fostering an informed religious consciousness. Thence, for example, religious education within

the Irish education system and other education systems is important and relevant to inform all citizens

of the role of religion (s) for the life-giving transformation of the world.

Learning About and From Diverse Cultures and Religions



287

Understanding cultures and how they encounter themselves, environment, and religion is essential

for peace, harmony and prosperity in every part of the world. All persons are situated in a historical,

cultural context and are primarily shaped by its contours, conditioned by its inherent logic, and

emotionally embedded in its assumptions. Within the ambit of culture (s) are religious/spiritual and

secular dimensions that provide significant influences in the overall dynamic of personal and

communal formation. The profession of teaching in the human world meets differences of all kinds;

cultural, religious, gender, sexual orientation, race, class, ethnicity, and so on. Each of these

differences can further be differentiated as no person holds the same precise viewpoint within any of

these ways of being in the world. Theologian Michael Paul Gallagher, citing cultural anthropologist

Mary Douglas, observes that

Differences between cultures are rooted in how people learn to perceive their social

relationships with one another. In this regard four factors are mutually reinforcing: the acquired ways

of perceiving one’s place in society, the social context and its dominant patterns of interaction,

individual behaviour choices, and the forms of religious vision typical of different cultures.55

For effective teaching and learning, attending to differences and perceiving how these unique

qualities can enhance mutual respect, democratic participation and responsible citizenship, is vital for

the life of any society/community. A skilled teacher of religion will help a child/learner to not only

affirm their sense of identity (who they are and how they belong) but the attuned teacher is also a

resource of support for the learner’s capacity and potential to learn and to grow as a person. This

happens because the teacher has a capacity to be present to the learner within his/her cultural and

religious/spiritual dimension.

Effective teachers of religion and secular beliefs are acutely aware of cultural dimensions associated

with learning, including the post-modern cultural dynamic of deconstruction of “grand narratives”56

55 See Michael Paul Gallagher, Clashing Symbols: An Introduction to Faith & Culture (Mahwah, New

Jersey/New York: Paulist Press, 1998), 25.

56 Postmodernism is a cultural perspective that influences and shapes the deconstruction of meta or grand

narratives that have been in place as some kind of organising ideology for how we should live and behave in the

world. Well known narratives such as Communism, Capitalism, Nazism, Fascism, Democracy, secularism, and

so on are ideologies created to shape some kind of uniform consensus. Communism, Nazism, Fascism, and

others have already been deconstructed. Religious worldviews can be viewed as meta narratives for shaping

peoples’ outlook and spirituality. These religious narratives are frameworks for meaning and purpose for

themselves, the world, and an ultimate reality. For a more details explanation of the deconstructing of meta-



288

Not only do differences and similarities emerge from within a specific faith/belief perspective but

differences and similarities can also arise between and across diverse religious and cultural traditions.

As people engage each other in a multicultural and multireligious society like Ireland today, they

engage meaning dimensions that contrast with a previously embedded monocultural reality. Though

a teacher might claim to be of “no particular religious and cultural worldview”, (an extreme form of

postmodernism would want us to believe) there is the obvious reality of standing in a personal and

communal narrative—story, myth, legend, ritual, belief, and so on, to understand and make sense of

the world. Because every person stands in his or her own narrative of identity, there is, therefore, no

such tenable position as holding a worldview or meaning perspective from ‘nowhere’. There is no

neutral ground or neutral worldview from which to interpret the world around us.

Educators learn that a culture is the essential amniotic fluid for the life of every person in

relationship with themselves, others, environment, and an ultimate reality. Every human being

belongs to a particular cultural heritage and this inherited culture is the primary source people draw

on for understanding themselves, others, creation and a transcendent reality. In addition, many find

that a particular spiritual narrative is helpful in defining who they are and how they belong in a

particular culture. Emerging deep from within a culture and sometimes rooted in an organised

religious structure, this spiritual outlook can be an agent of empowerment and transformation for

people. In relation to difference and education, an important question to think about is: how do we

begin to reflect upon our culture, religion and beliefs and their underlying assumptions? In order to

answer this question another concern arises: is it really possible to stand outside our own cultural,

religious and non-religious narrative from time to time and explore our behaviour, analyse our

thinking and feeling, and critique our attitudes toward others, the world, transcendence, and

ourselves?

In response to these questions, I believe that when we engage others from different cultures,

religious worldviews, diverse sexual orientations, gender, and so on, we then become conscious that

we, too, belong to a particular cultural context. We become acutely aware that we are shaped by this

milieu and some can have ambivalent feelings toward those who are not of this context. For

teachers/educators, there is a challenge to engage the “difference” of the other seriously and

celebrate it in the classroom. There is always a danger that consciously or unconsciously an attempt

can be made to make the other become “the same” as the dominant culture.57 In other words, the

narratives, see Terry A. Veling, Living in the Margins: Intentional Communities and the Art of Interpretation

(New York: The Crossroad Publishing Company, 1996), 86—132.

57 For more philosophical underpinning to how we should treat the other, see the writings of Emmanuel Levinas

particularly “God and Philosophy” in The Levinas Reader. Trans. Sean Hand. (Hoboken, N.J.: Wiley-Blackwell

publishers, 2001), 166ff.



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other could become essentially an image of my own culture or even over identify with my sense of

what it means to be Irish for example. Sometimes we call this response “cultural integration” whereby

those we perceive different now think, feel, and behave like us politically, morally, religiously, socially,

and economically. For example, the travellers in Ireland have resisted many attempts at “integration”

into the dominant and mainstream culture of Irish society. The travellers themselves perceive this

attempt at integrating them into mainstream Irish society as destroying their unique way of life. From

the outside, it would seem that conformity, uniformity, and sameness seem to be the preferred option

for any society to function, to advance and to live in perpetual harmony. However, this is not always

the case and such an assumption could be questioned. The making of various groups conform to a

specific vision of society causes unhelpful tension and conflict. A way forward might be to understand

how every person is shaped and conditioned in a particular cultural perspective and then learn how

various cultural groups can make a unique contribution to a diverse society as opposed to insisting

upon a linear, monocultural/religious society. Learning about, from and within one’s own particular

narrative, culture, religious tradition is essential in the endeavour to know the other. Teaching children

the art of respectful conversation is very significant.

Conclusion: Reciprocal Conversation—A Strategy for Transformation

Theologian Roger Haight observes that

Dialogue involves a give and take, a communication that requires not just testifying,

announcing, and teaching but also listening, hearing, and learning. It presumes mutual recognition

and at some level a sense of equality among the participants as a characteristic of the conversation.58

In relation to conversation and the principles of carrying out a fruitful and life-giving exchange,

Haight further suggests that “Dialogue also rules out any proselytism or aggressive, conquering

evangelisation.”59 Dialogue/conversation is the preferred option or strategy for an

interculturation/interculturalism that offers a process for critical reflection toward life-giving

transformative action and learning for an inclusive plural society.

Conversation is difficult. In view of that, some guidelines or principles are suggested for conducting

an intercultural conversation in the Irish primary classroom keeping in mind that these principles do

not make the process any easier. 1. Conviction within a tradition/narrative is necessary for a

groundedness in a particular identity. 2. Mutual respect between individual persons and communities.

3. Trust, endurance, and integrity are invaluable in conversation designed to initiate life-giving

58 See Roger Haight, The Future of Christology (New York and London: Continuum, 2005), 134.

59 See Haight, The Future of Christology, 134.



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transformation. 4. Listening and not just hearing the other perspective is a skill that can enrich

understanding and empathy. 5. Kenosis: Emptying out negative or destructive prejudices is a process

which allows space to examine exclusivity and introduce inclusive conversation. 6. Understanding

plurality and diversity is helpful to transcend ethnocentrism. 7. The managing of conflict appropriately

and respectfully is necessary. Conflicts are inevitable between individuals but they can be managed

in ways that are appropriate to enhance a respectful conversation and to genuinely accept and

appreciate the gifts of the other as well as one’s own. The transformation of society into a tolerant

and democratic reality needs a transformative learning strategy like the one outlined above which

enables learners to accept who they are and be comfortable with their own particular religious and

cultural identities. This will go a long way in understanding pluralism and the great need for civic

inclusion and political and social representation in all aspects of Irish society and beyond. Religious

education beyond faith formation can help learners understand, tolerate, accept and appreciate the

other who comes from a different religious and secular belief system. Thus a great service is provided

for the pluralist democratic community in developing an inclusive and tolerant perspective change.



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FOUNDERING IN A SEA OF WHITENESS: INTERNATIONAL STUDENTS AND

CAMPUS/CLASSROOM CLIMATE AT U.S. UNIVERSITIES

Dr. Ann Roemer

Utah State University, US

[email protected]

ABSTRACT

This mixed-methods study examined international undergraduate students' experiences at

three predominantly white universities in the western region of the U.S. by 1) focusing on students'

perceptions of the campus and classroom climate, especially their feelings of being welcomed or

unwelcomed by their white American classmates; and 2) examining their perceptions of student

behaviors that marginalized or included them. Quantitative data (n = 93) were collected using

Qualtrics survey software and analyzed using Stata software. Seven students from China and Saudi

Arabia were interviewed, and their responses were transcribed and coded. The results showed that

the students felt ambivalent in their perceptions of the campus climate, reporting that it was both

welcoming and unwelcoming. Some international students sensed a "fake friendliness" in their

interactions with American classmates. Many of these non-native speakers of English, as symbols of

the ethnic Other, experienced the same types of discrimination as domestic minority students in higher

education, in the form of microaggressions and blatant hostility. Female internationals were less likely

to feel welcomed in the classroom than males. The data also found evidence of linguicism in the

classroom. Recommendations include incorporating a curriculum of anti-racist intercultural

competence at all levels of education.

The existence of the sea means the existence of pirates. Malaysian proverb

Purpose

The purpose of this research was to investigate how welcomed international students,

particularly Chinese and Saudis, feel at predominantly white universities, on the campus in general

and in one class in particular.




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Quantitative procedures

International undergraduate students at three predominantly white universities in the

western region of the U.S. were contacted by email, inviting them to participate in an online survey.

Survey Respondents

Of the undergraduate students who completed the questionnaire (N=93), 56% attended

Wasatch University, 31% were enrolled at Canyon University, and 13% were studying at Zion

University (all pseudonyms). Fifty-four percent were male and 46% female. They represented a total

of 29 countries; a large majority (N=40) were from the People's Republic of China (43%), followed by

Saudi Arabia (N=8) and South Korea (N=8). The remainder of the respondents came from a wide

variety of countries (e.g., Armenia, Belize, Cameroon, Ethiopia, and Mongolia).

As for race/ethnicity, 85% of the respondents indicated that Americans saw them as non-

White, with a large number, 68%, self-identifying as Asian (N=63). The others

identified as Black (N=3), Brown (N=11), White (N=14), and Other ("Venezuelan" (N=1) and "White:

Brazilian" (N=1). In sum, the sample was highly Asian, with only three Africans and 14 Europeans.

Qualitative procedures

Seven students at one university were interviewed 1.5-2 hours each. One male and 3 female

participants were from the People's Republic of China; 3 male interviewees were from the Kingdom

of Saudi Arabia. The interview data were coded according to how the students perceived the campus

and classroom climate, particularly their perceptions of the instructor and the White American

students in one class.

Findings

In general, the international students felt welcomed on campus. Fortunately, a minority of

the respondents were victims of overt and/or covert incivilities; unfortunately, it was a large minority.

One third of them had observed discrimination on campus, and over one fourth had personally

experienced discrimination (see Table 1). Their white American classmates were less welcoming than

the faculty (Figures 2 and 3), and some of them were perceived as "fake friendly." The quantitative

data showed that female international students felt less welcomed on campus than their male

counterparts, suggesting that sexism may be at play. The last finding was that of linguistic

discrimination, or linguicism (Skutnabb-Kangas, 2000). In the questionnaire, the international



293

students were asked how frequently they heard their American classmates made offensive remarks

about eight topics: race, ethnicity, or nationality; gender or sexual identity/orientation; political

beliefs; religion; socio-economic status; immigration status; language or accent; and physical,

psychological, or learning disabilities. What was manifest in their responses was that they heard more

offensive comments related to language and accent than any other topic (Figure 3). Thus, the non-

native speaker of English stands out as the marked, abnormal Other and is seen as inferior, which is

ironic inasmuch as a large majority of White Americans are monolingual (Gallup, 2001).

It appears that a lot of work needs to be done to educate Americans at historically White

universities to navigate the waves of ethnic, racial, national, and linguistic diversity that exist on many

of our campuses.


Clearly, the results of a descriptive study such as this cannot be generalized. The sample size

(N=93) was small and there was little variation in the participants: 19 of the individuals were the only

representative of their country in the survey (e.g., 1 from Armenia, 1 from Cameroon, et al.). Forty-

three percent of the survey respondents were from China, and 45% were business majors, which made

the sample even more skewed.

Another limitation was that when answering questions about campus climate, students might

have misunderstood the directions. In the interviews, the Chinese and Saudi students often asked me

to clarify if I was asking about their classes in general or about a specific class. It may not have been

clear to the questionnaire respondents, either, that they were to answer many of the questions vis-à-

vis their most welcoming class. Finally, as a novice researcher, I was not as effective an interviewer in

all of my meetings with the students, so it is probable that I missed opportunities to probe more deeply

into their responses.


In these turbulent times, young people need be able to navigate a much more cosmopolitan world

than the white bubble most American students inhabit (Chesler, Lewis, &Crowfoot, 2005; Chesler,

Peet, & Sevig, 2003). To better facilitate a "multicultural transformation" (Chesler et al., 2005),

teachers can engage our students in conversations about whiteness, racism, and sexism. In addition,

all of us, including K-12 teachers, need to develop in our students competences in communicating

across cultures (Cushner & Mahon, 2009; Dai & Chen, 2014; UNESCO, 2013). This should not be limited

to those undergraduates who are planning to study abroad, but all students.



294

It needs to be made clear to white students that they are becoming young adults and they

need to learn to respect other people and treat them in a civil manner. The goal of the university is

to develop responsible citizens who will be living in a more globalized environment. Multilingualism

in this world is the norm rather than the exception (Skutnabb-Kangas, 2000), yet only 18% of

Americans speak another language, and fewer universities are requiring the study of a foreign

language for a bachelor's degree. In 2009-2010, only 51% of the universities in the US maintained

foreign-language study as a requirement (Skorten & Altshuler, 2012). That number should be

increasing, not decreasing.

Originality/Value of the Paper

1) International students have been ignored in campus-climate research, which, given the

current globalization, is implausible.

2) The research on White American students and intercultural competence has focused on

those who study abroad. I argue that with the increasing ethnic and linguistic diversity on our college

campuses, all students need to learn to be competent in intercultural communication.

(1194 words without bibliography or appendix)

Keywords: campus climate, intercultural communication competence, international students,

predominantly white universities, whiteness



295

References

Altbach, P. G. (1998). Comparative higher education: Knowledge, the university, and development.

Greenwich, CT: Ablex Publishing.

Appiah, K. A. (2006). Cosmopolitanism: Ethics in a world of strangers. London: Penguin Books.

Chesler, M., Lewis, A., & Crowfoot, J. (2005). Challenging racism in higher education. Lanham, MD:

Rowman & Littlefield Publishers, Inc.

Chesler, M., Peet, M., & Sevig, T. (2003). Blinded by whiteness: The development of white college

students' racial awareness. In A.W. Doane & E. Bonilla-Silva (Eds.), White out: The continuing

significance of racism (pp. 215-232). New York: Routledge.

Cushner, K., and Mahon, J. (2009). Developing the intercultural competence of educators and their

students: Creating the blueprints. In D. Deardorff (Ed.), The Sage handbook of intercultural

competence. Thousand Oaks, CA: Sage Publications.

Crystal, D. (2006). As they say in Zanzibar: Proverbial wisdom from around the world. New York: Oxford

University Press.

Dai, X. and Chen, G. (Eds.) (2014). Intercultural communication competence: Conceptualization and its

development in cultural contexts and interactions. Newcastle upon Tyne, UK: Cambridge

Scholars Publishing.

Feagin, J. R. (2010). The white racial frame: Centuries of racial framing and counter-framing. New York:

Routledge.



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Gallup. (2001). Retrieved from http://www.gallup.com/poll/1825/about-one-four-americans-can-

hold-conversation-second-language.aspx

Qualtrics. (2013). [Software]. Available from www.qualtrics.com

Roemer, A. E. (2016). Veiled incivilities: International students and campus/classroom climate at

predominantly white universities. (PhD). University of Utah.

Skorten, D, & Altshuler, G. (Aug. 27, 2012). America's foreign language deficit. Forbes magazine.

Retrieved from http://www.forbes.com/sites/collegeprose/2012/08/27/ americas-foreign-

language-deficit/

Skutnabb-Kangas, T. (2000). Linguistic genocide in education--or worldwide diversity and human

rights? Mahwah, NJ: Lawrence Erlbaum.

Stata (Version 12.1). [computer software]. Available from http://www.stata.com

UNESCO. (2013). Intercultural competences: Conceptual and operational framework. Retrieved from

http://unesdoc.unesco.org/images/0021/002197/219768e.pdf


http://www.forbes.com/sites/collegeprose/2012/08/27/


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Appendix

Table 1. Percentage of students who perceived discrimination

Observed discrimination

Experienced discrimination

Wasatch University 21 23 Canyon University 38 28 Zion University 50* 50* Total 30 28

* N = 12

Figure 1. Types of campus discrimination reported by international students

Campus Discrimination

Verbal Assaults

Microaggressions

Unveiled Incivilities

Financial Injustices

General



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Figure 2. Percentage of Sometimes/Often responses to How often have you been

ignored by the students/teacher in this class? and Agree/Strongly agree to the

statement The students/teacher have a narrow-minded view of the world.

Figure 3. Percentage of Sometimes/Often responses to How often have you heard the

teacher/students in this class express offensive views about race, gender, etc. . . ?

0

10

20

30

40

50

60

Ignored Narrow-minded

American

students

Teacher

0

10

20

30

American Students

Teacher



299

THE INTRA-BUSINESS GROUP EFFECT OF INITIAL PUBLIC OFFERINGS

Dr. Shao-chi Chang

National Cheng Kung University, TW

[email protected]

ABSTRACT

We examine whether diversification and firms’ multiple interfirm ties within Taiwanese

business groups benefit member firms when their group peers make initial public offerings (IPOs), or

whether they provide a way for controlling shareholders to tunnel. We find that member firms of

business groups experience greater underpricing than stand-alone firms in their IPOs, and their group

peers have negative market responses. This evidence is consistent with the tunneling hypothesis. More

importantly, this effect is stronger when member firms within diversified business groups are

connected via equity ties. Furthermore, we also offer an original analysis of how family control in

business groups facilitates value expropriation. Finally, we obtain statistically significant

underperformance for both member firms and stand-alone firms in the long-run after the focal IPOs.

Keywords: Business Groups, Network, Family Control, Corporate Governance, Tunneling



300

INTRODUCTION

Business groups that consist of networks of independent firms play a very important role in

developing countries (Dyer & Singh, 1998; Khanna & Palepu, 2000), in which legal protections are

weak or governance standards are poor (La Porta, Lopez-de-Silanes, & Shleifer, 1999; Johnson, La

Porta, Lopez-de-Silanes, & Shleifer, 2000). In most business groups, ownership is highly concentrated,

and the controlling shareholders have greater control rights than cash flow rights. The controlling

shareholders thus have strong incentives to transfer resources out of the firms to expropriate wealth

from minority shareholders (La Porta et al., 1999; Johnson et al., 2000; Bae, Kang, & Kim, 2002;

Bertrand, Mehta, & Mullainathan, 2002; Joh, 2003; Baek, Kang, & Lee, 2006), and Johnson et al. (2000)

use the term “tunneling” to describe this. However, research has shown that during the Asian financial

crisis that began in 1997, many controlling shareholders temporarily transferred resources to provide

support to their group peers which were in trouble in order to boost their performance, and Friedman,

Johnson, and Mitton (2003) use the term “prop up” to describe this. Prior research showed that both

tunneling and propping can occur in the same company but at different times (Friedman et al., 2003).

However, most studies of this issue have measured tunneling and propping indirectly (Faccio, Lang, &

Young, 2001; Bertrand et al., 2002; La Porta, Lopez-de-Silanes, Shleifer, & Vishny, 2002; Claessens,

Djankov, Fan, & Lang, 2002; Friedman et al., 2003; Peng, Wei, & Yang, 2011), and a deeper analysis of

this is thus needed.

Intragroup tunneling and propping can be undertaken in several ways. Business groups have

significant economic impacts on emerging economies, due to the fact that market mechanisms are

imperfectly supported in these, and thus groups can overcome the problems that arise due to this by

internalizing trading activities to achieve competitive advantages (Khanna & Palepu, 2000; Fauver,

Houston, & Naranjo, 2003). However, a business group is expanded through a network of firms in

unrelated industries, which makes it more difficult for investors and minority shareholders to obtain

information about group activities than would be the case if all the group’s operations were within

the same industry (Dewenter, Novaes, and Pettway, 2001). Such diversification can make it difficult

for outside investors to monitor the activities of the business group, and thus facilitates expropriation

(Kali & Sarkar, 2011). Moreover, group member firms are closely linked to each other by various types

of interfirm ties based on formal ownership or informal relationships, and they tend to operate under

a common management mechanism and system of financial control, leading to the creation of internal

capital markets (e.g. La Porta et al., 1999; Claessens, Fan, & Lang, 2006), with the individual

components working together to facilitate internal coordination and recombination (Ahuja, 2000),

and provide significant financing advantages (Morck, Wolfenzon, & Yeung, 2005). Interfirm ties serve

as conduits to share information and human capital among member firms, as well as transfer

resources, and can thus create value due to the benefits of group membership (Khanna & Rivkin, 2001;

Mahmood, Zhu, & Zajac, 2011). However, controlling shareholders may exploit interfirm ties to

transfer resources out of firms, and thus pursue their private interests by expropriating the wealth of

minority shareholders (Johnson et al., 2000; Bae et al, 2002). Among other issues, this raises at least



301

two important questions for business group research: how do group member firms differ in the

impacts of membership of the business group, and from what do these differences derive?

This study focuses on financing decisions and utilizes initial public offering (IPO) events to

examine these issues, because IPOs have two characteristics, namely the expansion of internal capital

markets and the potential to produce agency conflicts. Since the stock market determines what value

the IPO firm should have, the IPO firm does not create its value all by itself (Brandenburger & Stuart,

1996). If member firms within the same business groups transfer internal capital to support the IPO

firm’s financing requirements in the process of value creation and expropriation (Almeida &

Wolfenzon, 2006), then the IPO process should influence investor’ expectations about the future

profits and risks of other member firms. Although much research has examined the effects of

tunneling on the IPO firm (Dewenter et al., 2001; Bertrand et al., 2002; Marisetty & Subrahmanyam,

2010), little research has examined how intragroup tunneling from the IPO process impacts the stock

price of other firms within business groups. More specifically, this paper considers the focal issues

from both the group and member firm levels, and investigates the direct evidence of tunneling within

affiliated firms.

The resource dependence theory focuses on interorganizational relationships with

complementary partners to reduce environmental uncertainty and acquire the external resources

needed to create new opportunities and develop competitive advantages through co-operation

(Pfeffer & Salancik, 1978), and thus firms benefit from forming valuable ties with each other (Katila,

Rosenberger, & Eisenhardt, 2008). Moreover, firms can utilize their interfirm ties and diversification

strategy to form a web of interactions that function as a social network (Hsu, 2007) that provides

internal resource support which can then affect value. Business groups are thus viewed as networks,

and a member firm’s valuation may be affected by different types of interfirm networks that influence

the nature of competition and generate profit differentials, both individually and in combination with

each other (Gulati et al., 2000). Following Heracleous and Murray (2001), which proposed a network

typology based on interdependence and durability, the current study sees member firms as connected

through equity ownership and social clubs composed of senior managers, namely those based on

equity and directors relationships. We propose that member firms utilize these different types of

interfirm ties to transfer resources and information to influence their value, and examine the role that

these ties play in tunneling activities. These interfirm ties have been analyzed separately in the prior

literature, but never together. Our aim is thus to shed additional light on how member firms in

emerging economies influence the value of their group peers.

In developing this line of argument, we offer a contingency model that specifies whether and

how different types of interfirm ties and diversification strategies can influence firm value, due to the

efforts of powerful families who control business groups. In general, family owners have close

relational ties with business groups that enhance their visibility, leading to increased monitoring of

group activities. This effect may raise reputational concerns, and make the business group as a whole



302

more willing to provide efficient internal capital and scarce resources to support member firms

(Khanna & Palepu, 1997). However, prior research shows that a single family usually has control over

all member firms (La Porta et al., 1999; Luo & Chung, 2005), and this can lead to a conflict of interest

between family owners and minority outside investors, as the former can transfer resources across

firms to maximize their welfare (Johnson et al., 2000). As such, tunneling in this context could discount

member firms’ value (Villalonga & Amit, 2006, 2009).

This study examines the performance of IPOs, including those of member firms of business

groups and stand-alone firms. Moreover, it applies the event-study methodology to measure how the

IPO of a business group’s member firm influences investor perceptions of the other member firms, by

determining the stock market reactions on the IPO listing day. Using this method it is possible to show

that there is an “abnormal” stock return, and thus to assess the impact of an unanticipated event on

the value of a firm (McWilliams & Siegel, 1997), and moreover that stock prices will adjust and reflect

investors’ revisions of their expectations about the discounted value of a firm’s future cash flows. This

study also investigates the impact of the various types of interfirm ties and diversification strategies

in business groups, as well as the related control structures, when evaluating the effects of IPOs across

member firms. Unlike other papers in this area, we also analyze the long-term performance of

business groups after the IPO. The sample includes 404 Taiwanese firms that issued IPOs during the

period 1999 to 2011. The Taiwanese market has several characteristics that make it particularly

suitable for this work. First, fixed-price offerings are the main mechanism used for IPOs in the

Taiwanese stock market. With this the controlling shareholders have considerable power to determine

the offer prices in order to maintain control after the IPOs (Smart & Zutter, 2003). Next, Taiwanese

business groups have a high ownership concentration, and are often owned by a controlling family.

Chin, Chen, Kleinman and Lee (2009) documented that about 78% of Taiwanese listed companies are

family controlled, with about 49% of Taiwanese business groups having pyramidal structures

(Claessens, Djankov, & Lang, 2000), and thus this context provides a strong test of our hypotheses.

Taiwan also provides clear data on certain aspects of group membership, including the largest

shareholders and directors of member firms, along with detailed data on ownership ratios. Finally,

Taiwan’s stock market is relatively efficient and responds quickly to new announcements (Chang,

Chen, & Liu, 2004). Consequently, the unique characteristics of Taiwanese firms and the local stock

market provide an appropriate context for testing the effects of business group membership on

market reactions to the IPO listings of member firms.

Our empirical analyses reveal that, on average, IPO firms in Taiwan are systematically

undervalued at the offer price relative to peer firms, and the member firms of business groups

experience greater underpricing than stand-alone firms in their IPOs. However, the other members in

the same business groups experience significant and negative market responses on the IPO listing

days, suggesting the existence of intragroup tunneling; this result is consistent with Marisetty and

Subrahmanyam (2010). More importantly, these negative abnormal returns are stronger when

member firms are connected via unrelated diversification and equity ties. The results further shows



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that family control has a significantly negative effect on abnormal returns. Our evidence is consistent

with the notion that the controlling families use tunneling among other member firms to prop up the

aftermarket prices of to-be-listed member firms in order to maintain control through interfirm ties

(Cheung, Haw, Tan, & Wang, 2014). Finally, with regard to the long-run stock market performance,

firms that were underpriced in their IPOs experience poor performance over time, including both

group member firms and stand-alone firms. Moreover, equity ties and family control are negatively

related to the long-term performance of group member firms.

The paper proceeds as follows. Section Ⅱ provides the theoretical background and

hypotheses development. Section Ⅲ describes the sample and empirical methodology. The results

are presented in Section Ⅳ, and the conclusions of this work are given in Section Ⅴ.

BACKGROUND AND HYPOTHESES

The Effect of Business Group Membership on IPOs

Business groups are comprised of legally independent firms that form networks by formal and

informal relationships (Granovetter, 1995), which are connected through buyers-suppliers, cross-

equity shareholdings, and mutual directors, thus creating complex webs of relationships. Network ties

work as generic conduits to facilitate operational and resource exchanges among member firms, thus

creating economic benefits in terms of less uncertainty, greater contract enforcement, and more

effective identification of opportunities (Granovetter, 2005). Moreover, the efficacy of network ties

leads to greater trust and cooperation, which can help members learn of and exploit additional market

opportunities (Yli-Renko, Autio, & Sapienza, 2001). Therefore, network ties can create value for

member firms, which can strengthen the long-term interests of these business groups as a whole

(Vandaie & Zaheer, 2014).

In addition, the firms within business groups may have strong relationships with each other

due to their common administrative and financial control procedures (Ghemawat & Khanna, 1998).

Groups may allocate capital among member firms through their internal financial markets, thus

sharing risk (Khanna & Yafeh, 2005) and reducing financial distress, and this can allow them to expand

into new product domains, and so reach economies of scale and scope (Yli-Renko, Autio, & Sapienza,

2001). However, the information costs and imperfect internal control systems in diversified groups

can lead to the misallocation of resources and increase bureaucratic and coordination costs (Ozbas,

2005). Moreover, business groups with highly concentrated ownership may face principal-principal

agency conflicts, as the allocation of internal capital markets may could be driven more by the

controlling shareholders’ attempts to increase their wealth through tunneling (Kali & Sarkar, 2011). In

this view, network ties impose downside costs on member firms. As a result, a high degree of

information asymmetry about the group’s strategies may exist, and thus it is difficult for outside

investors to decipher the activities of business groups, leading member firms to be valued at discounts

relative to comparable stand-alone firms (Joh, 2003).



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Prior research suggests that group membership can affect member firms’ credibility and

effectiveness (Kroszner & Rajan, 1994). Member firms can often acquire financial, technological, and

managerial support, and see a reduction in the related transaction costs, thus resulting in better

performance (Khanna & Palepu, 2000), and thus membership of a business group is thought to

compensate for weak capital markets. On the other hand, when the size of a group spanning many

industries exceeds a certain level, or there is a lack of focus on any particular activity, this can lead to

higher levels of uncertainty, and result in the under-performance of member firms when compared

to their stand-alone peers. Consequently, when an IPO event gains new external capital, business

groups may suffer from the problem of IPO underpricing if the controlling shareholders want to avoid

the risk of a failed IPO (Welch, 1992) and diffuse outside blockholdings in order to retain controlling

power (Yu & Zheng, 2012). Rock (1986) showed that the greater complexity caused by a diversified

structure would induce higher initial returns for member firms IPOs. Moreover, Dewenter, Novase

and Pettway (2001) suggested that the organizational structure of business groups can influence the

cost of issuing new capital. Therefore, we expect that existing member firms transfer wealth to

support the IPO firms, and then the IPO firms will have a lower offer price than their intrinsic value

would suggest, thus experiencing greater underpricing, and that the other member firms would be

also negatively affected by the IPOs. Based on the above arguments, we present the following

hypotheses.

Hypothesis 1a. The IPO firms of business groups have more IPO underpricing than stand-alone firms.

Hypothesis 1b. Membership of a group network leads to negative stock market reactions for member

firms on the first trading day of the IPO firm.

Diversification Discount of Business Group Membership

Many studies state that the diversification strategies of business group may affect members’

profitability (Martin & Sayrak, 2003; Villalonga, 2003). Due to the fact that market mechanisms are

imperfectly supported and the transaction costs of market exchanges are higher in developing

countries, diversification enables member firms to overcome the contracting problems and to access

or acquire key resources, core capital and complementary assets from one another (Dyer & Singh,

1998; Mahmood & Mitchell, 2004; Luo & Chung, 2005). In related diversification, firms make

commitments to development of their resources and competences in a particular domain to enhance

their market power (Montgomery, 1994). Indeed, related diversification may also represent the

degree of specialization of a business group, and the controlling shareholders may face less managerial

complexity (Markides & Williamson, 1994). As such, business groups that pursue synergies through

related diversification may be able to add considerable value to member firms (Li, Ramaswamy, &

Petitt, 2006).



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In emerging economies, the institutional environment often provides large business groups

with more opportunities to expand their business to other industries for growth (Leff, 1978). An

unrelated diversified strategy can also be more valuable because of keeping each firm strictly

independent, increasing the level of flexibility in capital formation, and providing better capital

reallocation (Dundas & Richardson, 1982). Khanna and Palepu (1997, 2000) argue that if a business

group pursues unrelated diversification then this will reduce both market inefficiency and operating

risk. Therefore, a business group with multiple members located in different industries is likely to

benefit by making good use of its internal market mechanisms (Kock & Guillén, 2001).

In contrast, some studies that examine the effect of business group diversification on firm

value find a diversification discount (Burch & Nanda, 2003), and this related to the agency problem.

This is because problems with managerial incentives in business groups can lead to the misallocation

of internal capital (Jensen, 1993), as well as problems with regard to outside monitoring and

unspecialized expertise in managing unrelated industries, both of which reduce efficiency and firm

value. Moreover, large insiders will have strong incentives to expand the groups’ scope to different

industries and share risks through shifting resources between member firms, and this may lead to

overinvestment so that the groups grow beyond their optimal size, thus increasing coordination costs

and complexity, and making their operations harder for outsiders to understand (Hoskisson, Johnson,

Tihanyi, & White, 2005; Aoki, 2010). Shareholders may also have the impression that business groups

with unrelated diversification are not focused on creating competitive advantages with a few specific

products. In this way, when an IPO event gains new external capital, outsiders are likely to react more

negatively to insider sales as a signal about the agency effects of unrelated diversification, thus raising

the risk of misallocating resources and increasing information asymmetry, and facilitating

opportunistic actions and raising potential conflicts of interest between group firms and outside

investors, and this would then translate into the negative stock market performance of the group

members, as stated in the following hypothesis.

Hypothesis 2. Upon the first trading day of the IPO firm, the business group having an unrelated

diversification structure is negatively associated with the stock market reactions to the IPO firm’s group

peers.

Direct Effects of Equity Ties on IPOs

The more complex ownership structures of business groups may affect firm valuation. The

legal systems in emerging economies tend to offer weak protections to minority investors, while highly

concentrated ownership structures within business groups are very common. In this context, member

firms develop equity ties through cross-holding equity stakes in other group members, which

represents a type of interfirm network. Such equity ties may cause different kinds of agency problems

by diverting resources or tunneling profits across member firms, which may increase the benefits

enjoyed by the majority shareholders at the expense of other investors (La Porta et al., 2002; Claessens

et al., 2002).



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The principal-principal conflicts that exist with a concentrated ownership structure result from

conflicts of interest. As we noted in the introduction, approximately two-thirds of such groups use

pyramidal structures to control the member firms (La Porta et al., 1999), and thus ultimate controlling

shareholders can exert their control over member firms through such equity ties, based on indirect

ownership in which the control rights are much larger than the related cash flow rights (Claessens et

al., 2000). Prior studies showed that such equity ties can provide greater financial flexibility and help

group peers obtain timely and sufficient financial resources, and thus reduce the threat of bankruptcy

(Chang, 2003), and in this context managers may be more willing to develop core competitiveness to

enhance long-term growth. Moreover, equity ties among network members are able to foster

cooperation and mutual monitoring and control, strengthening the common interests of corporate

shareholders (Gilsona & Roe, 1993; Chang & Chen, 2016). However, the equity ties within a business

group provide the controlling shareholders with strong incentives and tight control over member

firms, allowing them to more effectively utilize the group’s internal capital market to support the new

member’s financing requirements and internalize the financing benefits of group. To the extent that

controlling shareholders are concerned about diversifying their investment portfolios and sharing risk

(Amihud & Lev, 1981), business groups with greater internal capital accumulation are able to help

minimize costly external funding by going public of members (Almeida & Wolfenzon, 2006). As a result,

controlling shareholders will not work to expropriate firm value, and this ultimately enhances their

ability to take new firms public.

Equity ties may also enable the leveraging of internal financial capital, which can create a

financing advantage in developing markets within which there is limited capital availability (Gomes,

2000; Khanna & Palepu, 2000; Khanna & Rivkin, 2001; Almeida & Wolfenzon, 2006; Masulis, Pham, &

Zein, 2011). Moreover, the IPO of a member firm is an important corporate event that may introduce

external capital and enable the controlling shareholders to share risk with other investors and to

continue to control the IPO firm. The principal-principal conflicts arise here because the controlling

shareholders may thus tunnel resources out of other member firms through equity ties to boost the

earnings of to-be-listed IPO firms, which can be seen as one way in which insiders can misappropriate

resources from outside investors (Johnson et al., 2000; Glaeser, Johnson, & Shleifer, 2001). In such

cases the actions of an IPO firm can have a significant, negative spillover effect on its peers. Resource

dependence theory suggests that equity ties are a channel of intragroup capital markets, and thus that

these can lead to tunneling, which reduces the value of member firms. Therefore, we propose the

following hypothesis.

Hypothesis 3. Upon the first trading day of the IPO firm, the strength of the equity ties between the

IPO firm and its group peers is negatively associated with the stock market reactions to the IPO firm’s

group peers.

Direct Effects of Interlocking Directors on IPOs



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Director interlocking is created between firms when an executive or director at one firm sits

on the board of another, leading to high levels of trust within interorganizational networks that help

member firms to create value by having strong organizational culture and core values, sharing

knowledge and risks, combining resources, and gaining access to markets (Simoni & Caiazza, 2013).

Resource dependence theory posits that director interlocking functions as an important source of

skills, information and resources that are difficult to buy in the market (Pfeffer & Salancik, 1978;

Podolny, 2001). These directors have the potential to bring valuable resources to member firms

through their human capital, based on factors such as their experience, expertise, and reputation

(Coleman, 1988), as well as the relational capital associated with social ties to other firm’s directors

(Jacobs, 1965), thus enabling spillover effects and reducing the level of environmental uncertainty

(Pfeffer & Salancik, 1978; Haunschild & Beckman, 1998). Through such links firms are better able to

lower uncertainty and transaction costs, and improve the likelihood of their long-term viability

(Hillman and Dalziel, 2003). In support of this, interlocking directors are seen as having positive effects

on firms rather than causing an increased level of conflict (Haynes & Hillman, 2010).

Interlocking director ties among business group members tend to improve communication

and enhance cohesiveness, thus likely increasing trust among related firms and improving the

managing of complexity (Numazaki, 2000), which can have a positive certification effect on firm value.

Moreover, the strategic role of interlocking directors can help to support the existence of governance

mechanisms by signaling a good reputation and assurances on legitimacy, thus indicating that the firm

will provide reliable, precise and credible financial information (Mnif, 2009), which reduces

information asymmetry and has a positive influence on firm performance. In addition, director ties

may enhance investor recognition and confidence, which help investors more accurately evaluate firm

quality and affect security pricing (Fang & Peress, 2009; Mansi, Maxwell, & Miller, 2011).

However, director ties may destroy rather than create value. For example, such ties may

increase the board’s dependence and thus can adversely affect its role in monitoring and disciplining

managers (Hwang & Kim, 2009). Moreover, director ties may generate excessive managerial power,

raising the potential for shareholder expropriation. Therefore, such ties may represent a cost to

investors.

IPO firms usually face a high level of uncertainty, and director ties may offer them an

additional means to improve the collaborative information exchanges and non-competitive behaviors

that exist among member firms, and thus reduce IPO underpricing. Moreover, group members are

strategically affected by the IPO of another member firm, because they can help raise investor

confidence and share in any new market opportunities that arise via interlocking director linkages.

Therefore, we expect that more director ties would create more value, which translates into the better

stock performance of the IPO firm’s group peers, as stated in the following hypothesis.



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Hypothesis 4. Upon the first trading day of the IPO firm, the strength of the interlocking director ties

between the IPO firm and its group peers is positively associated with the stock market reactions to

the IPO firm’s group peers.

Moderating Effects of Family Control

Empirical studies show that 40% of listed firms belong to family-controlled business groups in

developing markets. In addition, the literature shows that two-thirds of these have pyramidal

ownership structures, because family owners have control rights that significantly exceed their cash

flow rights (La Porta et al., 1999), which can increase the agency cost of self-control (Schulze, Lubatkin,

& Dino, 2003). Principal-principal conflicts arise because while family shareholders are likely to have

the ability and power to use the group’s resources as they see fit, their performance is not monitored

by external stakeholders. Moreover, family groups may be more complex than other business groups,

because family members are involved in the managerial and governing practices. However, family

shareholders are often willing to sacrifice economic gains to preserve their socioemotional wealth

(Chrisman & Patel, 2012), because a key aim of such owners is often to provide careers and security

for current and later generations. Therefore, while the controlling family may have a strong incentive

for a member firm to launch an IPO to seek external funding, it is also likely they it will be more willing

to leave money on the table during the IPO in order to preserve its control.

As noted above, a controlling family that retains a higher percentage of shares is likely to want

to provide future generations with secure employment and a stable family income (Naldi, Nordqvist,

Sjőberg, & Wiklund, 2007), and the reputation of the family owners is also tied to that of the the

business group (Landes, 2006). This may motivate the family to commit to the long-term prosperity of

the organization (Lubatkin, Schulze, Ling, & Dino, 2005; Miller, Breton-Miller, & Scholnick, 2008) and

so create a stewardship advantage, which can then reduce investor uncertainty (Certo, Covin, Daily,

& Dalton, 2001). In addition, since family shareholders usually aim to transfer control to the next

generation and are thus concerned for the group’s long-term survival (Anderson & Reeb, 2003; Laeven

and Levine, 2008), they will aim to maintain a large concentration of ownership to enhance and

safeguard the family’s effective control (Johnson et al., 2000; Morck and Yeung, 2004). As a result, at

the time of an IPO family business groups will bargain for a better price to avoid serious underpricing

and reduce the incentive to tunnel from other member firms, based on the idea that family wealth is

heavily tied up in the business group (Anderson & Reeb, 2004).

To the extent that diversification and the types of ties under family control affect

performance, we expect that an unrelated diversification strategy and some types of ties and may be

more harmful to the value of member firms when they are under family control. Moreover, Taiwanese

business groups are formed within a traditional Chinese cultural context, in which the family owners

tend to divide the group and set up new firms in order to equitably and peacefully transfer power to

next generation (Wilkinson, 1996). Unrelated diversification decisions offer family groups an

opportunity to mitigate business risk and reduce volatility in earnings, thereby providing greater



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financial security to the family (Faccio et al., 2001). However, diversified operations require greater

involvement of managerial talent and expertise, which may not be available from among the family

members (Morck & Yeung, 2004; Morck, Wolfenzon, & Yeung, 2005). In particular, diversification

requires raising additional capital to support an active approach to this strategy, and the family owners

may need external funding by issuing new stock or undertaking debt financing, thereby increasing the

risk of financial distress and loss of family control. As a result, IPO firms within diversified family groups

are often willing to sacrifice economic interests in order to preserve socioemotional wealth, and the

resources of member firms’ may be more likely to be expropriated through the information

asymmetry that arises because of this.

Specifically, prior research shows that family control within business groups can create

financing advantages due to internal capital markets composed of equity ties among group members,

which can support expansionary activities (Claessens et al., 2000; Claessens et al., 2002; Almeida &

Wolfenzon, 2006). However, the family often relies on equity ties to maintain control of the member

firms, leading to serious agency problems and greater information asymmetry. In this way, family

owners may sell the shares of a member firm below their fair value, and IPO underpricing, which

reduces the risk of lawsuits, is seen as a necessary price to pay for this. On the other hand, family

owners can offset the loss of private benefits by easily transferring financial resources between firms

through equity ties (Chang, 2003). Therefore, when a business group is under family control, the value

of equity ties may decrease due to the greater likelihood of such opportunistic behavior.

However, the controlling family is likely to want to provide future generations with secure

employment, and so be concerned with the group’s long-term survival (Anderson & Reeb, 2003;

Laeven & Levine, 2008). Such firms are also more likely to appoint family members and close friends

to the board of directors (Claessens et al., 2000; Peng & Jiang, 2010), and this may foster loyalty and

lead to more efficient resource allocation, overcoming possible transaction risks and increasing firm

value (Anderson & Reed, 2003; Miller, Lee, Chang, & Breton-Miller, 2009). Nevertheless, family

shareholders may utilize IPO underpricing to reduce the non-family ownership concentration (Booth

& Chua, 1996; Brennan & Franks, 1997) in a way that avoids monitoring and retains the family’s

effective control, and thus prevents damaging its interests. As a result, IPO firms under family control

are willing to sacrifice their own economic interests in order to minimize threats or losses, and other

member firms’ resources may be more likely to be expropriated through director ties. Based on the

arguments set out above, we present the following hypotheses.

Hypothesis 5a. Upon the first trading day of the IPO firm, family control has a significantly negative

moderating effect on the relationship between the business group having an unrelated diversification

structure, and the stock price reactions to its group peers.

Hypothesis 5b. Upon the first trading day of the IPO firm, family control has a significantly negative

moderating effect on the relationship between equity ties and the stock price reactions to its group

peers.



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Hypothesis 5c. Upon the first trading day of the IPO firm, family control has a significantly negative

moderating effect on the relationship between director ties and the stock price reactions to its group

peers.

Business Group and Long-term Performance

Previous studies show that new-issue firms experience underpricing of their stocks at issue

(Ritter, 1984; Ritter and Welch, 2002). However, empirical evidence on the long-run performance of

IPOs provide mixed results. Loughran and Ritter (1995) found that IPOs firms significantly

underperform their matching firms over the five years after the offer date, whereas Su, Bangassa and

Brookfield (2011) investigated Chinese IPOs and found significant long-run over-performance among

such firms, as measured by buy-and-hold abnormal returns. We further investigate the long-run

performance of IPOs across to gain some insight into whether member firms differ from stand-alone

companies in this regard.

Business groups can function as internal capital markets that can enable more efficient

intragroup flows among member firms (Khanna & Palepu, 2000). Moreover, business groups have

superior performance due to their aggregate scale and scope efficiencies. On the other hand, group

firms can also suffer from greater information asymmetry, and thus there is an inherent conflict of

interest between controlling shareholders and minority investors, with regard to managerial over-

investment and cross-segment subsidization. Nevertheless, group members suffer an overall loss in

value when such over-investment and cross-segment subsidization occurs, and the benefits associated

with group membership does not offset the costs. Evidence also shows that membership of business

groups may cause poor firm performance that will persist longer in emerging economies (Claessens et

al., 2002; La Porta et al., 2002; Chacar & Vissa, 2005). For example, prior studies find that membership

of business groups in India is significantly and negatively correlated with ROA (Khanna & Palepu, 2000),

and that member firms suffer greater losses of value than independent firms in South Korea (Ferris,

Kim, & Kitsabunnarat, 2003). Therefore, we propose the following hypothesis.

Hypothesis 6. Poor firm performance by member firms will persist more than poor performance by

stand-alone firms after the IPO of the focal firm.

SAMPLE AND EMPIRICAL METHODOLOGY

In this section, we first describe the sample design, then explain how we measure abnormal

stock returns, and finally provide details of the proxy variables used for the cross-sectional analysis.

Sample Design



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We obtain a sample of newly listed Taiwanese firms that issued IPOs on the Taiwanese Stock

Exchange over the period of January 1999 through December 2011 from the Taiwan Economic Journal

(TEJ) databank. We exclude financial firms because they have very different accounting standards to

those of industrial firms, and also firms with incomplete pre- or post-issue financial information. Our

final sample consists of 404 IPOs firms and 154 member firms. We compile our dataset by merging

IPO firm characteristics, market performance, financial information, and ownership data from the TEJ

databank with structure maps and ties of business groups from the Business Groups in Taiwan (BGT)

directory.

Sample Characteristics

Our final sample is composed of 404 industrial firms and 154 member firms. During this period,

the majority of the IPOs (288, 71.29%) were issued by stand-alone firms, with the 116 IPOs of member

firms of Taiwanese business groups representing only 28.71% of the total sample. The data shows that

most IPOs in our sample were in relatively new industries, after the liberalization of the Taiwanese

economy in 1990. Table 1 provides the sample distribution by year and industry. Panel A in Table 1

shows that most of the IPOs were issued during 2000~2002, accounting for 41.34% of the sample. As

shown in Panel B of Table 1, about 52.97% of the IPOs come from three industries: semiconductors,

optoelectronics, and electronic components, indicating that high-tech industries make greater

investments in expansion activities, and reflecting the strong demand for funds that such firms have,

as well as their significant contribution to Taiwan’s economy. Table 2 reports the ownership structure

of the groups according to the data in the TEJ databank. The 154 member firms in our sample are

located in 56 business groups, and these are evenly divided into those with pyramidal (71.43%) and

cross-ownership (28.57%) structures.

Empirical Methodology

This study employs the standard event-study methodology to capture the tunneling effect

using the relation between stock price responses to the focal firm and their group member peers with

regard to the former IPOs, with daily stock return data obtained from the TEJ database. Day 0 is

defined as the listing date. The abnormal stock returns are measured as the difference between the

actual return and an expected return generated by the market model (Brown and Warner, 1985). We

use the value-weighted Taiwan Stock Exchange All-Share Index as a proxy for market returns, and

estimate the firm-specific parameters of the market model using the data over a period from 200 to

40 days before the listing date. The cumulative abnormal returns (CARs) for each firm are calculated

by adding the abnormal returns (AR) over the event windows.

Independent Variables

Unrelated diversified groups are more complex than related ones, and this can increase the

potential conflicts of interest with regard to outside investors. Based on the formality, depth, and

breadth of the ties that exist among member firms, we distinguish business groups into those with



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unrelated and related structures. An unrelated structure refers to groups of firms that operate in a

diverse set of industries, while a related structure refers to groups of companies that operate at

different positions of the supply chain within a single industry. We utilize the two-digit SIC code from

the TEJ database to classify business groups as unrelated or related groups. The complexity dummy

equals one if a business group has an unrelated diverse structure, and zero otherwise.

Equity ties are based on the average shareholding ratio between the percentage of the IPO

firm’s shares owned by member firmi, and the percentage of member firmi’s shares owned by the IPO

firm. Taking advantage of the internal capital markets due to cross-ownership among group members,

firms are able to obtain financial support to boost earnings, which can lead to tunneling.

Interlocking directorships among member firms can build a high level of trust and help to

protect existing shareholders’ wealth, and thus may improve investor confidence. The director ties

dummy variable equals one if the IPO firm and other member firm share at least one director or CEO,

and zero otherwise.

In a family-controlled business group, two or more firms are ultimately owned by a coalition

of family members. The controlling family has the ability and right to use the cash flow of member

firms to pursue its private interests (Young, Peng, Ahlstrom, Bruton, & Jiang, 2008; Jiang & Peng, 2011),

thus exacerbating principal-principal conflicts. On the other hand, the separation of cash flow and

voting rights might have reputational benefits that work against opportunistic behavior (Gomes,

2000). As a result, outside investors may discount the value of member firms of family-controlled

groups to a lesser extent than those of non-family controlled groups. We collect information on the

level of family control of each group from the TEJ databank. Following Claessens et al. (2000) and

Filatotchev, Lien, and Piesse (2005), the family control dummy equals one when a family member

serves as both the director of the board and CEO, and zero otherwise.

Control Variables

The control variables are related to: (1) member firm characteristics, i.e., investment

opportunities, firm size, ROA and pyramidal layer; and (2) the IPO characteristics of the issuing firm,

i.e., issue size and industry dummy. These variables are explained in more detail below. Financial data

on the firm and IPOs characteristics are obtained from the TEJ databank. Structure maps of business

groups are obtained from the Business Groups in Taiwan (BGT) directory.

We estimate the investment opportunities of the member firms by a sample measure of

Tobin’s Qmember, which denotes the ratio of the market-to-book value of the firm’s assets, where the

market value of assets equals the book value of assets minus the book value of common equity, plus

the market value of common equity. Tobin’s Q is widely used to distinguish firms with good investment

opportunities from those with poor ones, and firms with more valuable growth opportunities are likely

to have an overinvestment problem. Firm sizemember equals the natural logarithm of the member firm’s

book value of total assets for the fiscal year prior to the year in which the IPO occurred. Large firms



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tend to face less risk, and should thus be less likely to be affected by the actions of other member

firms. ROAmember denotes the annual member firm return on assets in the year prior to the IPO.

Successful past performance, as seen in greater profitability, enhances the opportunities that the

controlling shareholders have to tunnel resources to the IPO firm (Aharony, Wang, & Yuan, 2010). On

the other hand, large firms tend to offer more information to investors, which could reduce tunneling.

The costs and benefits of member firms vary depending on the different positions they have within

the same pyramid. Within-group heterogeneity is maximized when firms are placed between the top

and bottom firms. The pyramidal layer variable captures the layer position of each firm in a group. We

identify this based on the structure and ownership ties between the controlling shareholders and

member firms, using data from the report Business Group in Taiwan, published by the China Credit

Corporation. Following Masulis, Pham, and Zein (2009), the pyramidal layermember dummy equals one

if a member firm is at the bottom of a pyramid chain, and zero otherwise.

As for the IPO characteristics, issue size equals the natural logarithm of the total number of

shares issued multiplied by the offer price. Baron (1982) finds that larger issues increase the risk of a

failed IPO to controlling shareholders, which could thus lead to underpricing. On the other hand, larger

issues may acquire a greater amount of external funding to support future growth. The industry

dummy is used to control for industry effects, and equals one if the IPO firm is in the electronics

industry and zero otherwise, as based on the two-digit SIC codes.

The sample statistics of the explanatory variables in this study are provided in Table 3,

including the means, standard deviations and correlation coefficients. Our sample shows significant

heterogeneity in abnormal returns across firms, with the mean abnormal return being -0.64 and the

median being -0.67. The mean value of complexity is 74%, which indicates that more than half the

sample belong to business groups with unrelated diversification structure. It also shows that the mean

ties across member firms are highest for director ties (0.84), followed by equity ties (0.29). The mean

value of family control is 64%, which indicates that more than half of the business groups in the sample

are controlled by a family.

IPO Valuation Characteristics

Taiwanese IPO shares are sold through a fixed-price publicly subscribed process. Under this,

the underwriters take responsibility for setting the offer price, and then announce the IPO to the

public to start the subscription. In Taiwan, institutional investors are forbidden from joining the new-

issue market, and thus the underwriters generally set a relatively low offer price to guarantee an IPO’s

success. In this context it should be noted, as Ritter (1987) argued, that IPO underpricing is a major

cost to issuing firms.

We examine how IPOs are determined at the offer price relative to their “fair value”. We

calculate the fair values of IPOs using the price multiples, such as price-to-EBITDA (earnings before

interest, taxes, and depreciation, and amortization), price-to-sales, and price-to-earnings, of non-IPO



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industry peers which are closest in sales to the IPO firms, and then compare the offer price (P) to this

fair value (V) (Purnanandam & Swaminathan, 2004). Prior studies argue that the average IPO is

undervalued at the offer price to create a large first-day return to compensate for the information

asymmetry that exists in such situations (Rock, 1986; Grinblatt & Hwang, 1989), as well as substitute

for the cost of marketing (Habib & Ljungqvist, 2001).

We calculate the IPO offer price relative to fair value as follows. First, we obtain the offer price

multiples of an IPO firm as the ratios of the offer price to its sales, EBITDA, and earnings for the fiscal

year prior to the IPO year. Second, we further select appropriate matching firms which have been

publicly listed for more than a year and exclude those that issued any new shares within two months

of the IPO. Third, the sample firms are divided into three portfolios based on past sales, and then each

sales portfolio is divided into three portfolios based on the past EBITDA profit margin, giving us a

maximum of nine portfolios in each industry based on past sales and profit margin. Finally, the P/V

ratio for the IPO is computed by dividing the IPO firm’s offer price multiple by the matching firms’

market multiple, which serves as the fair value (Purnanandam & Swaminathan, 2004; Yeh, Shu, & Guo,

2008). We analyze the IPO valuations based on one-year data (from the year prior the IPOs).

Panel A of Table 4 summarizes the distribution of offer prices, using different multiples of

matching firms. Our results indicate that, on average, IPOs in Taiwan are systematically undervalued

at the offer price relative to their fair value, based on P/S and P/EBITDA multiples, respectively. The

median values of (P/V)Sales and (P/V)EBITDA for the entire sample are about 0.75 and 0.73, and are

significantly different from one at the 1% level. The median value of (P/V)Earning is 0.96, and is not

significantly different from one. This result is consistent with Chang and Tang (2007), which found that

deliberate underpricing is common with Taiwanese IPOs. Panels B and C show the difference between

the median P/V ratios of the Taiwanese group member firms and stand-alone firms, revealing the

median values of (P/V)Sales and (P/V)EBITDA for the member firms are lower than those of the stand-

alone firms. Our evidence is consistent with prior research, which finds that a higher degree of

uncertainty with regard to the group’s network leads to greater underpricing for group member firms

(Dewenter et al., 2001; Marisetty & Subrahmanyam, 2010). Moreover, according to Panels B and C,

the number of shares offered by member firms is significantly greater than that offered stand-alone

firms, consistent with the claim in Ritter and Welch (2002) that such underpricing is necessary to

attract investors to group member firms.

ESTIMATION AND RESULTS

Underpricing of IPO Firms and Abnormal Returns for Their Member Firms

Due to the 7% price limit that existed on the Taiwan stock markets before 1 March 2005, the

Day 1 return is not suitable to measure the IPO initial return in this period, as the closing price on the

first trading day may not reveal all the information about the underpricing of the IPO. In our sample

IPOs listed before March 2005, we thus define the closing price of the first day not hitting the price



315

limit to calculate IPO underpricing, and derive market-adjusted IPO underpricing after subtracting the

market return during the corresponding period as follows.

IPO underpricing (MAR) = 𝑃𝑁𝐻−𝑃𝐹

𝑃𝐹 - 𝐼𝑁𝐻−𝐼𝐹

𝐼𝐹

Where PNH is the closing price of the first day not hitting the price limit, PF is the offer price,

and INH and IF are the market indexes of the first day not hitting the price limit and the filing day,

respectively.

However, the Taiwan Stock Exchange removed the 7% ceiling and floor restrictions for the first

five trading days of IPOs on 1 March 2005. In our sample IPOs listed after 1 March 2005, the closing

price on the first trading day is thus recorded as the initial market price to calculate IPO underpricing,

and market-adjusted IPO underpricing is derived after subtracting the market return during the

corresponding period as follows.

IPO underpricing (MAR) = 𝑃1−𝑃𝐹

𝑃𝐹 - 𝐼1−𝐼𝐹

𝐼𝐹

Where P1 is the closing price of the first trading day, PF is the offer price, and I1 and IF are the

market indexes of the first trading day and the filing day, respectively.

We find that the average IPOs initial return is 13.93%, with more than 80% of the sample IPOs

having positive returns, which indicates that Taiwanese IPOs are underpriced. In addition, the average

underpricing levels of IPOs listed before and after 1 March 2005 are 11.09% and 18.10% respectively,

and the IPO share prices rise during the early three days of issue. Furthermore, the group firms’ mean

value for initial returns on the first trading days is 19.36%, with more than 77% of the subsample of

IPO firms having positive returns. On the other hand, the stand-alone firms’ mean value for initial

returns on the first trading days is 11.75%, with more than 81% of the subsample of the IPOs of such

firms having positive returns. Our evidence indicates that group firms have greater information

asymmetry problems, consistent with prior research (Dewenter et al., 2001; Marisetty &

Subrahmanyam, 2010). H1a is thus supported.

We now turn to the heart of our analysis: the effects of the focal firms’ IPOs on member firms.

The evidence provided by the stock market reactions indicates that the member firms experience

significantly negative mean abnormal returns on the listing day (-0.41%, two-tailed, p<0.00) and one

day before (-0.23%, two-tailed, p<0.05). For the (-1, 0) two-day period, the shareholders of member

firms experience negative average cumulative abnormal returns of -0.64%, statistically significant at

the 1% level using a two-tailed test, with 59% of the sample IPOs’ effects being negative.

We further follow Bae, Cheon, and Kang (2008) and employ an equal-weighted portfolio

approach to estimate the abnormal returns for member firms in the same group, as portfolio returns

are often used to examine the tunneling effect. For the portfolios of member firms, the mean CARs



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for the two-day period (-1, 0) around the announcement dates is -0.89%, significant at the 1% levels.

These results suggest that IPOs by member firms affect the stock prices of their group peers in the

reverse direction, consistent with the intragroup tunneling argument, and H1b is thus supported.

Regression Results

To test our hypotheses, we thus include various control variables and specify the following

regression equation to examine the impact of network ties and diversified operations that influenced

the stock price reactions of member firms, as related to their group peers’ IPOs.

CARmemberij = α0 + β1Complexityi + β2Equity tiesij +β3Director tiesij +β4Family controli +β5 Tobin’s Qij

+β6Firm sizeij +β7 ROAij +β8Pyramidal layerij +β9Issue sizei +β10Industry dummyi +β11Complexityi

Family controli +β12 Equity tiesij Family controli +β13 Director tiesij Family controli + εi

Where ij represents group member j around member firm i’s IPO.

Before conducting the regression analysis, we checked that the variance inflation factors in

the regression models were all less than 1, which is well below 10 (Hair, Anderson, Tatham, & Black,

1998), and thus multicollinearity does not pose a problem for our results. To apply an ordinary least

squares (OLS) regression technique, we followed the approach suggested in Blom (1958) to normalize

the data. This procedure is used to obtain efficient estimates, since all variables follow a normal

distribution after transformation.

Table 5 reports the main results of the cross-sectional regression analysis with regard to the

cumulative abnormal returns of member firms. Model 1 serves as a baseline model that includes all

the potential explanatory variables. We find that the abnormal returns of member firms are

significantly negative when business groups follow an unrelated diversification strategy, supporting

H2. This suggests that more diversified operations raise the risk of misallocating resources and

increasing information asymmetry, thus facilitating opportunistic behaviors and raising potential

conflicts of interest. Moreover, the results show that the stock price reactions of member firms to the

IPOs of their group peers are negative when the former have equity ties with the IPO firm, consistent

with H3. Finally, the coefficient on director ties is positive but insignificant. The regression results

indicate that a horizontally diversified group is associated with greater uncertainty through equity ties,

which provide many more opportunities for controlling shareholders to pursue their own private

interests over those of the entire group.

Model 1 shows that several control variables have significant explanatory power with regard

to the wealth effect of member firms when IPOs are carried out. Among these, only Firm sizemember is

related to significantly positive market reactions to member firms, while the Pyramidal Layer and

Industry dummy are related to significantly negative market reactions. With regard to the Industry

dummy, Kothari, Laguerre, and Leone (2002) argued that firms in the electronics industry tend to make

large investments in plants, equipment, and property, and that the future economic benefits of such



317

spending is uncertain. We also find that the firms located at lower levels of the pyramid are

significantly and negatively related to the member firms’ abnormal returns. In addition, we find that

large member firms receive significantly more positive market reactions to the IPOs of the focal firm

than smaller members do.

In Model 2, we include an interaction term between family control and complexity. The results

confirm our prediction that diversification strategies are unfavorable (Kali & Sarkar, 2011) when

business groups are controlled by a family, as this leads to principal-principal conflicts. In addition, we

add an interaction term between family control and equity ties in Model 3. The results are consistent

with our prediction that the coefficient is negative and statistically significant, indicating that the value

of equity ties may decrease within family business groups. When we add an interaction term of family

control and director ties in Model 4, and find that director ties are less valuable when business groups

are controlled by a family. The results of Models 2, 3 and 4 thus support H5a, H5b and H5c.

Model 5 includes all the variables. The results show that complexity and equity ties are

strongly related to stock market reactions, while director ties have little effect on them. This can be

attributed to the fact that an unrelated diversification strategy facilitates expropriation through equity

ties, thus impacting shareholder wealth, since equity ownership is directly linked with cash flow rights.

The results further suggest that family control has a significant negative effect. We also find

the interaction effects of family control and diversification strategy, and of family control and equity

ties, and of family control and director ties, are all negative. Our results are thus consistent with the

finding of Dyck and Zingales (2004) and Villalonga and Amit (2006) that the existence of a controlling

family may destroy firm value.

We conduct several additional tests to assess the robustness of the results. We tested the

regression results by substituting the cumulative abnormal returns in (-1, 0) for two other event

windows of (-1, +2) and (-2, +2) as the explanatory variables, and the results under different event

windows are still very similar.

Although the findings suggest that a diversification strategy and equity ties have strong

influences on the stock market reactions of member firms to IPOs, the results could be subject to the

problem of multicollinearity, since some of the independent variables may be correlated. Lang, Stulz,

and Walkling (1991) suggested using the weighted least squares approach to obtain efficient

estimates, since the variances of the market-model residuals vary across announcers. We thus

followed Lang, Stulz, and Walkling (1991) by setting the weights equal to the reciprocal of the standard

deviation of the market-model residual. Although not reported here, the results under the weighted

least squares approach remained the same. Therefore, the conclusions drawn from our analysis are

not significantly biased by the problem of multicollinearity.

Post-IPO Performance



318

We further investigate the post-IPO performance of firms, as estimated by the Buy-and-Hold

Abnormal Return (BHAR) of the firms that issued an IPO. BHAR is the benchmark-adjusted return

based on buying at the beginning of the period and selling at the end, taking into account any

intervening distributions. Panel A of Table 6 reports the results of a test as to whether there is any

significant variation in long-run performance across the two categories in our sample. We find that

the average long-run performance of firms, post IPO, has a significantly poor tendency, consistent

with Loughran and Ritter (1995) and Kooli and Suret (2004). The buy-and-hold abnormal return fell

dramatically in the first year after going public, and during the three years after issuing was less than

6% percent for firms conducting IPOs. Moreover, this indicates that there is no significant difference

in long-run performance between group member firms and stand-alone firms. We further show that

investors are generally betting on longshots and systematically misestimate the probability of finding

a big winner. Panel B of Table 6 confirms the impact of an IPO on other group members’ stock market

performance. The buy-and-hold abnormal return of other group members fell dramatically in this year

after the IPOs of their peers’, consistent with the prediction of the tunneling hypothesis.

Table 7 shows the results of the cross-sectional ROA and BHAR regressions for the member

firms. ROA is defined the difference in annual return on assets between other group members and

their industry matching firms. As Models (1), (2) and (3) show, only equity ties and family control are

negatively related to the long-run performance (ROA) of other group members. Moreover, Models

(4), (5) and (6) show that equity ties and family control are still negatively related to the long-run

performance (BHAR) of other group members. This result likely indicates that the existence of equity

ties and a controlling family may lead the market to discount the value of member firms.

CONCLUSION

This paper aims to extend the resource dependence perspective, and examines two

competing views of buisness groups in emerging markets, the tunneling and propping perspectives.

Specifically, this study contributes to a better understanding of the network effects and diversification

strategies that exist in business groups, as measured by the stock price reactions of group member

firms to the IPOs issued by other group members. We find that member firms of business groups

experience greater underpricing than stand-alone firms in their IPOs, and the other members in the

same business groups experience significant and negative market responses on the IPO listing days,

and this supports the tunneling hypothesis. Moreover, we find that a diversification strategy and

equity ties have significant, negative impacts on the market reactions of group member firms to the

IPOs issued by their group peers. Our findings suggest that an unrelated diversification strategy

facilitates expropriation through equity ties, thus impacting shareholder wealth. In addition, family

control has negative moderating effects, implying the principal-principal agency conflicts between

family owners and outside minority investors may facilitate value exproprition. Finally, we obtain



319

statistically significant underperformance for both member firms and stand-alone firms in the long-

run after the focal IPO events.

This paper contributes to the literature in the following ways. First, prior focus on exploring

intragroup tunneling and propping effects within a business group (Bae et al., 2002; Bae et al., 2008;

Cheung et al., 2014), and very few examine how differences in interfirm ties can result in different

gains in resources. Our study thus extends resource dependence theory by studying how different

types of network ties will differentially influence the tunneling process in relation to IPOs issued by

group members. Second, this paper is related to Liu, Arthurs, Nam and Mousa (2014), which examined

how the information diffused and value redistributed due to the IPO process impacts the transaction

partners of the focal firm. Our study thus extend the long-term partnership literature to that on

business groups. Since the inter-firm networks within business groups are more complex than those

in long-term partnerships, we are able to study how a diversification strategy can influence the intra-

network effect. Finally, this study provides empirical evidence for the theoretical argument that a

controlling family pursues private benefits and expropration of outside minority shareholders through

various tunneling activities (Johnson et al., 2000; Bae et al., 2002; Bertrand et al., 2002; Joh, 2003;

Baek et al., 2006). Emerging economies should thus adopt more effective policies to improve

corporate governance mechanisms in order to protect outside investors.

From a more managerial perspective, controlling shareholders should not only evaluate the

benefits from network ties, but also consider the potential costs related to conflict among group

members. Therefore, interfirm ties need to be constantly adjusted and developed according to

changes in the environemnt. However, diversification strategies and bonding relationships tend to be

made in a centralized way by controlling shareholders, and there are huge potential benefits and costs

that are associated with such decisions. It is therefore necessary to derive a better understanding of

the impact of ownership and control issues, which may be good, bad, or irrelevant with regard to firm

valuations in order to minimize principal-principal conflicts and maximize the value that is created

within business groups. We thus suggest that efforts to enhance business group effectiveness by

adopting appropriate internal corporate governance mechanisms, including reducing ownership

concentration, separating ownership and control, and strengthening formal institutions, in order to

protect property rights and minority shareholders.

This paper has several limitations, as follows. First, we needed to make assumptions to

develop the measures of the variables, and complexity, director ties and family control are included

as dummy variables in this work. However, this dummy approach may not obtain the full information,

and the empirical results may thus not be rigorous. Second, the structure maps and ties of business

groups are collected from the BGT reports, published by CCIS, and only information about large-sized

business groups is included in this directory. Therefore, this study was unable to include the data for

small- and medium- sized buisness groups, and so the implications of this work may be limited to

large-sized business groups.



320

Despite these limitations, our study suggests several possible avenues for future research.

First, we have shown that interfirm ties may affect firm valuation. Prior research found that member

firms connected through long-term transaction relationships are better able to acquire valuable

product ideas and information about future industry trends (Mahmood et al., 2011). Future research

can test buyer-supplier ties to further examine this issue. Second, the finding that member firms

within family-controlled business groups received significantly negative market responses to the IPOs

of their group peers may be associated with the fact that the legal system in Taiwan provides relatively

weak protection for outside minority shareholders. Prior research has shown that institutional

investors and independent directors may play an important role in monitoring managerial decisions.

Future research can thus add the factors of institutional investors and independent directors, as these

can serve as external monitors to help reduce principal-principal conflicts between controlling owners

and outside minority investors, and so influence the valuation of member firms within family-

controlled business groups.

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Table 1. Distribution of IPOs by Year and Industry

Number of IPOs Percent of Sample

Number of Member Firms

Percent of Sample

Panel A. Sample Distribution by Year

1999 20 4.95%

2000 52 12.87%

2001 49 12.13%

2002 66 16.34%

2003 39 9.65%

2004 31 7.67%

2005 10 2.48%

2006 10 2.48%

2007 30 7.43%

2008 28 6.93%

2009 25 6.19%

2010 21 5.20%

2011 23 5.68%

Total 404 100%

Panel B. Sample by Industry

Cement and ceramics 0 0.00% 1 0.65%

Food 3 0.74% 4 2.60%

Plastics 3 0.74% 4 2.60%

Textiles 9 2.23% 6 3.90%

Electric and machinery 21 5.20% 5 3.25%

Elec. appliances and cables 1 0.25% 3 1.95%

Steel and iron 7 1.73% 6 3.90%

Automobiles 1 0.25% 2 1.30%

Chemicals 8 1.98% 3 1.95%

Biological products 15 3.71% 2 1.30%

Semiconductors 45 11.14% 21 13.64%

Computers and office equipment 30 7.43% 15 9.74%



330

Optoelectronics 59 14.60% 16 10.39%

Mobile communications 42 10.40% 12 7.79%

Electronic components 110 27.23% 21 13.64%

Construction 14 3.47% 3 1.95%

Transportation 5 1.24% 5 3.25%

Department stores 0 0.00% 4 2.60%

Tourism 3 0.74% 0 0.00%

Others 28 6.92% 21 13.60%

Total 404 100% 154 100%

Table 2. Sample Distribution by Ownership Structure

Ownership Structure Number %

Pyramid 40 71.43

Cross-ownership 16 28.57

Total 56 100



331

Table 3. Means, Standard Deviations and Correlations

Mean SD 1 2 3 4 5 6 7 8 9 10 11

1. CARmember -0.64 3.46 1.00

2. Complexity 0.74 0.44 -0.15

(0.25) 1.00

3. Equity ties 0.29 0.45 -0.02

(0.00)***

-0.10

(0.10)+

1.00

4. Director ties 0.84 0.37 0.06

(0.00)***

0.13

(0.19)

0.24

(0.48) 1.00

5. Family control 0.64 0.48 0.02

(0.00)***

0.18

(0.35)

-0.05

(0.00)***

0.14

(0.22) 1.00

6. Tobin’s Q 1.67 1.48 -0.04

(0.00)***

-0.11

(0.13)

-0.06

(0.01)*

-0.16

(0.28)

-0.28

(0.56) 1.00

7. Firm size 16.92 1.60 0.11

(0.13)

0.09

(0.05)+

0.09

(0.05)+

0.05

(0.00)***

0.15

(0.24)

-0.11

(0.14) 1.00

8. ROA 7.67 9.64 0.04

(0.00)***

-0.03

(0.00)***

-0.09

(0.05)+

-0.04

(0.00)***

-0.16

(0.28)

0.71

(0.86)

-0.08

(0.04)* 1.00

9. Pyramidal layer 0.08 0.27 -0.12

(0.16)

0.07

(0.01)*

0.11

(0.13)

-0.03

(0.00)***

0.05

(0.00)***

-0.02

(0.00)***

-0.15

(0.27)

-0.02

(0.00)*** 1.00

10. Issue size 13.20 1.21 0.01 0.25 -0.10 -0.01 0.23 0.02 0.34 0.06 0.16 1.00



332

(0.00)*** (0.50) (0.11) (0.00)*** (0.46) (0.00)*** (0.63) (0.01)* (0.30)

11. Industry dummy 0.71 0.45 -0.06

(0.00)***

-0.23

(0.47)

-0.09

(0.05)+

-0.06

(0.01)*

0.02

(0.15)

0.12

(0.00)***

0.21

(0.42)

0.08

(0.03)*

0.03

(0.00)***

0.13

(0.18) 1.00

*** p< 0.001, ** p< 0.01, * p< 0.05, + p< 0.10



333

Table 4. IPO Valuation

Mean SD Q1 Median Q3

Panel A. IPO offer price valuations

Offer price (in NT dollars) 52.41 44.66 25 38.11 63.80

Offer price firm valuation

(in thousands of NT dollars) 823,843 6,318,349 145,575 280,944 524,160

(P/V)Sales 1.16 1.63 0.44 0.75 1.16

(P/V)EBITDA 1.02 1.36 0.43 0.73 1.15

(P/V)Earnings 1.52 4.19 0.58 0.96 1.59

Panel B. Subsamples of member firms’ IPO offer price valuations

Offer price (in NT dollars) 52.11 45.35 24 36 55


(in thousands of NT dollars) 1,966,146 11,731,259 207,000 386,449 731,250

(P/V)Sales 1.27 2.38 0.42 0.70 1.10

(P/V)EBITDA 1.16 2.46 0.41 0.72 1.07

(P/V)Earnings 1.75 5.86 0.56 0.96 1.59

Panel C. Subsamples of independent firms’ IPO offer price valuations

Offer price (in NT dollars) 53.42 44.47 25 40 66


(in thousands of NT dollars) 364,002 409,153 136,512 246,821 449,400

(P/V)Sales 1.05 1.18 0.43 0.76 1.17

(P/V)EBITDA 1.06 1.49 0.43 0.75 1.15

(P/V)Earnings 1.44 3.29 0.24 0.96 1.56



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Table 5. Cross-Sectional Regression Analyses of Factors Affecting Announcement-Period Abnormal

Returns of Member Firms

Variable Model

1 2 3 4 5

Intercept -5.26

(0.04)*

-7.49

(0.00)**

-5.26

(0.04)*

-6.48

(0.01)*

-8.61

(0.00)**

Complexity -1.76

(0.00)***

-1.59

(0.03)*

-1.75

(0.00)***

-1.87

(0.00)***

-1.82

(0.04)*

Equity ties -0.78

(0.08)+

-0.88

(0.05)+

-1.03

(0.09)+

-0.86

(0.06)+

-1.47

(0.09)+

Director ties 0.74 0.70 0.75 1.99 2.00

(0.18) (0.21) (0.18) (0.01)* (0.01)*

Family control

-1.69

(0.03)*

-2.03

(0.03)*

-2.08

(0.03)*

-3.16

(0.00)**

Tobin’s Q member -0.27

(0.15)

-0.25

(0.20)

-0.26

(0.17)

-0.24

(0.21)

-0.24

(0.21)

Firm size member 0.31

(0.02)*

0.35

(0.01)*

0.32

(0.02)*

0.35

(0.01)*

0.40

(0.00)**

ROA member 0.04

(0.12)

0.05

(0.10)+

0.04

(0.14)

0.05

(0.09)+

0.05

(0.08)+

Pyramidal Layer -1.15

(0.09)+

-1.15

(0.09)+

-1.13

(0.10)+

-1.23

(0.09)+

-1.16

(0.10)+

Issue size 0.09

(0.62)

0.15

(0.41)

0.08

(0.67)

0.07

(0.69)

0.13

(0.47)

Industry dummy -1.06

(0.02)*

-1.01

(0.02)*

-1.05

(0.02)*

-1.24

(0.00)**

-1.19

(0.01)*

Complexity * Family control -2.21

(0.02)*

-1.94

(0.04)*

Equity ties * Family control -1.39

(0.04)*

-1.81

(0.06)+

Director ties * Family control -2.35

(0.03)*

-2.36

(0.04)*



335

Adjusted R2 0.06 0.07 0.05 0.06 0.08

F-Statistic 3.01*** 3.01*** 2.47*** 2.92*** 2.91***

N 306 306 306 306 306

*** p< 0.001, ** p< .01, * p< .05, + p< .10 (p-values in parentheses)



336

Table 6. IPO Long-Run Performance Results

Panel A of Table 6 shows the average buy and hold returns (BHAR) of firms on the value-weighted Taiwan Stock Exchange All-Share Index. BHAR are calculated and reported for 12, 24, and 36 months. The number of observations (N) varies based on the time period used to calculate BHAR. BHAR is defined as 1/n BHARi, where BHARi=Πt=1 to T (1+Rit)-Π(1+Rmt), T=12 or 24 or 36 months, Rit =return of firm i and Rmt is the value-weighted Taiwan Stock Exchange All-Share Index. Panel B shows the average buy and hold returns (BHAR) of other group members on the value-weighted Taiwan Stock Exchange All-Share Index. BHAR are calculated and reported for different periods: for t-1, t, 12, 24, and 36 months.

Ownership type BHAR

(t-1)

N

(t-1)

BHAR

(t)

N

(t)

BHAR

(12M)

N

(12M)

BHAR

(24M)

Panel A. Long-run performance results of IPO firms

Group member firms -0.050

(0.00)***

116

0.032

(0.00)***

Stand –alone companies -0.043

(0.08)+

288

0.026

(0.00)***

All companies -0.048

(0.00)***

404 0.028

(0.00)***

Panel B. Long-run performance results of other group members

Other group members 0.48

(0.00)***

306 0.08

(0.08)+

306 0.03

(0.00)***

306 0.004

(0.00)***




337

Table 7. Regression of ROA and BHAR as a Function of Complexity, Equity Ties, Director Ties and Family Control

Dependent variables

(1) (2) (3) (4) (5) (6)

Explanatory variables

1-year

ROA

2-year

ROA

3-year

ROA

1-year

BHAR

2-year

BHAR

3-year

BHAR

Intercept 1.07

(0.53)

3.64

(0.01)*

2.20

(0.15)

0.03

(0.71)

-0.05

(0.88)

0.15

(0.80)

Complexity 1.95

(0.14)

2.37

(0.09)+

0.47

(0.69)

0.17

(0.01)**

0.37

(0.12)

0.52

(0.26)

Equity ties -2.51

(0.05)+

-1.68

(0.09)+

-1.63

(0.10)+

-0.08

(0.09)+

-0.36

(0.10)+

-0.45

(0.10)+

Director ties 1.58

(0.33)

-1.91

(0.27)

0.65

(0.65)

-0.01

(0.94)

0.29

(0.31)

0.32

(0.57)

Family control -3.57

(0.00)**

-4.68

(0.00)**

-4.15

(0.00)***

-0.18

(0.00)**

-0.29

(0.10)+

-0.52

(0.09)+

Adjusted R2 0.03 0.05 0.04 0.05 0.02 0.02

F-Statistic 3.34** 4.61** 4.04** 3.62*** 2.28 2.18




338

CULTURE AND ENTREPRENEURIAL INTENTION REVISITED

Dr. Katerina Voutsina The American College of Greece, GR [email protected] Abstract

The influence of culture on entrepreneurship has been the focus of scholarly scrutiny for over three decades. Yet, although past research has shown a link between national culture and entrepreneurial activity, what has been largely unexplored is specifically how culture impacts entrepreneurial behavior. This paper alleviates this gap, by developing a conceptual framework that integrates past findings in culture and entrepreneurial intention literature. In particular, it links an enriched list of Hofstede’s (1980) cultural dimensions with Shapero’s model of entrepreneurial event and shows how the relationship between culture and entrepreneurial intention is moderated by the legal/institutional context of each country. Keywords: entrepreneurial intention, culture, feasibility, desirability Number of words: 1180 Extended abstract Purpose The influence of culture on entrepreneurship has been the focus of scholarly scrutiny for over three decades. Yet, “Although past research has shown a link between national culture and entrepreneurial activity, what has been largely unexplored is specifically how culture impacts entrepreneurial behaviour (Hayton, George & Zahra, 2002; Kreiser, et al, 2010, p. 960; Zahra, Jennings, & Kuratko, 1999).” The purpose of this paper is to respond to the above call and deepen our understanding regarding the link between national culture and entrepreneurship. To do so, it offers a conceptual model which integrates findings of past studies and creates an account of the way cultural dimensions ‘in-context’ are involved in the shaping of entrepreneurial intentions.

Methodology/Research Design This paper develops a conceptual framework that integrates past findings in culture and entrepreneurial intention literature. In particular, it links an enriched list of Hofstede’s (1980) cultural dimensions with Shapero’s model of entrepreneurial event and shows how the relationship between culture and entrepreneurial intention is moderated by the legal/institutional context of each country. The Hofstede’s (1980) conceptualization of national culture is used and enhanced by the cultural dimensions of achievement/ascription and universalism/particularism (Trompenaars, 1994). These extra dimensions have been added as they are relevant for the study of entrepreneurship (Lee and Peterson, 2001).



339

The cultural dimensions are briefly summarized as such (Lee and Peterson, 2001, p. 404): Power Distance - degree of tolerance for hierarchical or unequal relationships,

Uncertainty Avoidance- degree of acceptance for uncertainty or willingness to take risk, Individualism- degree of emphasis placed on individual accomplishment, Masculinity- degree of stress placed on materialism, Achievement- describes how power and status are determined, Universalism- describes norms for regulating behaviour.

The Shapero's (1984; Shapero & Sokol, 1982) model of the entrepreneurial event (SEE)

suggests that individuals decide to start a new business when the activity is perceived both desirable and feasible and is coupled with some propensity to act. Perceived desirability: a positive attitude towards the act of entrepreneurship or personal attractiveness of entrepreneurial activity Perceived feasibility: the degree to which one feels personally capable of starting a business. Propensity to act: “the personal disposition to act on one’s decisions, thus reflecting volitional aspects of intentions (“I will do it”) (Krueger, Reilly, & Carsrud, 2000, p. 419).

Finally, the dimensions chosen to describe the institutional/ legal environment of each country are summarized as such: Ease of starting a business: This variable refers to the number of days needed to start a new business. Openess of the economy: This is a variable that is measured by the sum of imports and exports as a % of GDP. Corruption perception index: This is an index produced by Transparency International to proxy the extent of corruption in the public sector, as perceived by the country’s citizens.

Findings and Theoretical Implications: the conceptual model

Culture is defined as the underlying system of values, beliefs and expected behaviours (Herbig, 1994; Hofstede, 1980) shared by a group of people or society. Cultural values are powerful forces for controlling and directing human behaviour. They are often specific to a group or society and motivate behaviours that are not manifested in other groups or societies. For instance, they may influence the degree to which societal members consider entrepreneurial behaviours as desirable or feasible. Thus cultural norms are seen as catalysts that promote or discourage people from taking entrepreneurial initiatives.

In their review of the literature, Hayton, George, & Zahra (2002, p. 34) note that many researchers have hypothesized that “entrepreneurship is facilitated by cultures that are high in individualism, low in uncertainty avoidance, low in power-distance, and high in masculinity. Ceteris paribus, the greater the cultural distance from this ideal type, the lower the average individual and aggregate levels of entrepreneurship.” The issue with this stream of research is twofold: a) the limited sample sizes and b) the fact that the interactions between culture, institutional structure and entrepreneurship have been ignored (Hayton et al., 2002). In addition, other studies have yielded contradictory results: in relative poor countries, which have large power distance, strong uncertainty avoidance, more bureaucracy and more corruption, high level of entrepreneurship is observed (Hofstede et al., 2004). This finding is aligned to the literature of the push factors of entrepreneurship (Wennekers et al., 2001), situational factors which are associated with some level of individuals’ dissatisfaction. For



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instance, in less prosperous countries where citizens feel dissatisfied with the society and economic life, tend to display a clear preference towards self-employment.

In order to alleviate this gap in the literature and provide a realistic account of the way cultural dimensions influence the individuals’ entrepreneurial propensity, this study introduces a cultural model of entrepreneurial intention. This model is a first attempt to bring altogether the interactions between culture, institutional structure and entrepreneurship in the study of entrepreneurial intention.

In this model, the cultural attributes as identified by Hofstede (1980) and Trompenaars (1994) influence the determinants of entrepreneurial intention, while the strength of that influence is moderated by the institutional and legal environment. <Insert diagram 1 here> Research limitations

Hofstede’s dimensions of culture provide a rather generalized view of culture. They were initially developed in the context of formal organizations, and as such they do not directly refer to cultural attributes that are specific to entrepreneurship (Busenitz, Gomez, & Spencer, 2000). Countries scores in the cultural and institutional dimensions are expected to change over time (McGrath et al., 1992). Therefore, the interaction among variables of this model should be tested at different points of time. Practical implications Policy makers who understand how the institutional/legal context influences the impact of culture on entrepreneurial intention may create favorable conditions that foster the individuals’ entrepreneurial propensity. Increased likelihood of entrepreneurial activities is related to new job creation and innovation, prerequisites of economic growth and revitalization. What is original/what is the value of the paper? The study opens the black-box of the culture-entrepreneurship link by conceptually demonstrating how the influence of cultural dimension on entrepreneurial intentions is moderated by institutional /legal factors. The value of the paper is summarized as follows: a) it responds to a call made for theory building research in culture-entrepreneurship literature (Hayton, George & Zahra, 2002, b) it synthesizes fragmented bodies of the literature into a cohesive, and c) the impact of culture on entrepreneurship is examined ‘in context’, e.g. the simultaneous influence of institutional/legal factors is taken into account, something which has been rather ignored in previous studies. Diagram 1



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References Busenitz, L. W., Gomez, C, & Spencer, J. W. (2000). Country institutional profiles: Unlocking entrepreneurial phenomena. Academy of Management Journal, 43, 994-1003. House, R., Javidan, M., Hanges, P., & Dorfman, P. (2002). Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE. Journal of world business, 37(1), 3-10. Hayton, J. C., George, G., & Zahra, S. A. (2002). National culture and entrepreneurship: A review of behavioral research. Entrepreneurship Theory and Practice, 26(4), 33-52. Herbig, P. A. (1994). The innovation matrix: Culture and structure prerequisites to innovation. Praeger Pub Text. Hofstede, G. (1980). Culture's consequences: International differences in work related values. Beverly Hills, CA: Sage. Hofstede, G., Noorderhaven, N. G., Thurik, A. R., Uhlaner, L. M., Wennekers, A. R., & Wildeman, R. E. (2004). Culture's role in entrepreneurship: self-employment out of dissatisfaction. Innovation, entrepreneurship and culture: The interaction between technology, progress and economic growth, 162-203. Kreiser, P. M., Marino, L. D., Dickson, P., & Weaver, K. M. (2010). Cultural influences on entrepreneurial orientation: The impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory and Practice, 34(5), 959-983. Krueger, N. F., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of business venturing, 15(5), 411-432.

Power Distance

Uncertainty

Avoidance

Individualism

Masculinity

Achievement

Universalism

Ease of starting a business

Openness of the economy

Corruption perception

Perceived

Desirability

Perceived

Feasibility

Propensity to Act

Intention to start a business



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Lee, S. M., & Peterson, S. J. (2001). Culture, entrepreneurial orientation, and global competitiveness. Journal of world business, 35(4), 401-416. McGrath, R. G., MacMillan, I. C, Yang, E. A., & Tsai, W. (1992). Does culture endure, or is it malleable? Issues for entrepreneurial economic development. Journal of Business Venturing, 7, 441-458. Shapero, A. (1984). The entrepreneurial event. In C. A. Kent (Ed.), The Environment for Entrepreneurship (pp. 21–40). Lexington, MA: D.C. Heath. Shapero, A., & Sokol, L. (1982). The Social Dimensions of Entrepreneurship. In C. Kent, D. Sexton & K. H. Vesper (Eds.), The Encyclopedia of Entrepreneurship (pp. 72-90). Englewood Cliffs, NJ: Prentice-Hall. Trompenaars, F. (1994). Riding the waves of culture. London: Nicholas Brealey. Van Stel, A., Carree M.A., & Thurik, A.R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24(3), 311-321. Wennekers, A.R.M., N.G. Noorderhaven, G. Hofstede and A.R. Thurik (2001), ‘Cultural and economic determinants of business ownership across countries’, in W.D. Bygrave et al. (eds), Frontiers of Entrepreneurship Research 2001, Wellesley, MA: Babson College, 179–90. Zahra, S. A., Jennings, D. F., & Kuratko, D. F. (1999). The antecedents and consequences of firm-level entrepreneurship: The state of the field. Entrepreneurship: Theory and Practice, 24(2), 45-45.



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A STRATEGIC APPROACH TO INTERCULTURAL PERSUASIVE COMMUNICATION: A GLANCE INTO HISTORY

Elena Pruvli e-mail address: [email protected] Estonian Business School, Estonia

Abstract

A number of recent studies were focused on different strategies for adapting culturally preferred persuasive styles in intercultural environments. This research suggests the importance of defining, predicting and explaining our own behaviour in addition to the accuracy of predictions and explanations regarding the preferred persuasive style of the other party. The findings revealed that communicators with a quasi-logical preferred persuasive style often maintain a positive attitude toward it but they depreciate alternative persuasive styles such as presentational and analogical. This paper attempts to address the deeper roots of this attitude. It examines a historical tradition of a persuasive scholarship and its influences on modern communication. The author addresses the current debate about the refugees and migrants in Europe being a clash between different persuasive styles, while presentational and analogical styles are associated with persuasive manipulation. Keywords: persuasion, intercultural communication, intercultural persuasive communication, effectiveness of communication, preferred persuasive style, history of persuasion, Aristotelian logic

1. The awareness of communication patterns: predictions and explanations

A number of recent studies (Pruvli, 2014; 2015) united preferred persuasive style concept (Glenn et al. 1977; Johnstone 1989) with the theory of effective communication in the intercultural environment (Gudykunst 2005). Their focus was on different strategies for adapting persuasive styles in intercultural interactions. From a philosophical perspective this research continues the Socrates’ and Plato’s idealistic and rationalistic tradition (Garver 1995), which saw the reality as a combination of ideas and happenings. The concept of Intercultural Persuasive Communication (IPC) unites the cultural phenomena with communication of a particular kind. Cultural patterns are ideas about actions that take place in reality; the ideas about these actions persist and outlive the communication episodes that gave the ground to conceptualise the cultural phenomena. In terms of Aristotelian understanding of what he called (Garver 1995) unity of the shapeless “matter” and “essence”, instead of an “idea” in Plato’s conception, this investigation offers the frame for a process of communication. A number of persuasive episodes received their new meaning via this frame, which transforms them into concepts.

This research suggests, as shown in Figure 1, the importance of clearly defining, accurately predicting and explaining our own communication patterns regarding the preferred persuasive style in addition to the accuracy of predictions and explanations regarding behaviour of the other party. In this paper the author attempts to address the issue of the explanation from a historical point of view below.

These findings could be seen as supplementary to Gerhard Maletzke's psychosocial model, which was developed in 1963 for communication in a mono-cultural environment [Danesi 2009, pp.183]. Maletzke emphasised the impact of the social setting on communicators’ interaction and on their self-image. Findings from the BBC’s Great British Class Survey Experiment (Savage at al. 2013) proved the importance of extensive social networks that are associated with particular classes, for example, in



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British society. The analysis by Savage at al. (2013) reveals the class boundaries of a more complex nature than just educational and occupational. Interestingly, the main concept of quasi-logical preferred persuasive style was shaped in ancient Greek society that was relatively egalitarian in comparison to the cultural environment in modern Greece.


Explorations by Pruvli (2014; 2015) also reveal that communicators with the quasi-logical preferred persuasive style often are aware of their own communication pattern. They maintain a positive attitude towards it that is backed up by business related publications but at the same time often depreciate alternative persuasive styles such as presentational and analogical.

At present management, law, politics and media, among the other fields of social science, are still dependent on the main principles of Roman-Greek teachings in persuasion because they were well documented and widely introduced for centuries at schools and universities across Europe and later in North America. The majority of modern concepts related to persuasive communication were developed from the American perspective on the mono-cultural environment, in political communication at the level of mass communication. A number of theoretical concepts of persuasion existed in marketing related fields on interpersonal, intergroup or organisational levels, but they used value-based or strategic approaches (Pruvli, 2014) and were not related to differences in the persuasive styles.

It is obvious that persuasion as a form of communication took place around the globe but the studies thereof were limited to classical sources. Persuasion practices elsewhere often were considered somehow inferior if they were not matching the Procrustean rules of classical Aristotelian logic. The historical grounds for this attitude are discussed in this paper.

2. Historical roots of the quasi-logical approach

Aristotle is considered to be the first to refer to “logos” as to the arguments to convince the receiver(s) of the speakers’ believes. His other components of persuasion were “pathos” (emotions of the receivers) and “ethos” (words of the speakers). He stressed the importance of a certain order, how information should be presented in persuasive messages (Garver, 1995), and this structure is widely followed in scientific and academic worlds today:-

- introduction,

- main content,

- formulation of the problem,

- discussion and

- conclusion.



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Aristotle brought up as the third component of persuasion a linguistic dexterity that included a choice of words (that are presentational elements) and usage of metaphors (that are analogical elements). However, the essence of his theory of “logos” (Garver, 1995) was in connected a sequence of coherent arguments that is a strong foundation for the quasi-logical approach as well as his idea, that propositions or expression of facts can be either true or false, so one or the other. A classical illustration by Aristotle of a format, to which every proposition can be distilled, “Socrates is mortal”, contains a subject, link and a word that indicates something about this subject. In many modern languages, such as Russian, this link is unnecessary (though can be used) and that makes this basic concept of logic more relevant to some cultures rather than all.

Eventually, a current version of these classical works went through a number of cultural adjustments and modifications due to the fact that according to early Greek philosophy researcher Jonathan Barnes (Barnes, 1984) they disappeared after the collapse of Roman Empire to be found in Arabic translations in the Islamic world in the 9th century A.D. Four centuries later it was re-introduced to the Latin West and adjusted to back up its Catholic mentality but also served as a foundation of a contemporary “common sense”.

The vast majority of translation of classical texts was made more recently in Anglo-Saxon cultures (for example by McKeon, Ackrill, Bambrough, Renford etc) and inevitably is biased towards its values and traditions. Barnes admits that his revised edition of The Oxford Translation of Aristotle (that included 12 volumes issued within the period of 1912-1954) is slightly amended in the light of contemporary studies and three new translations were introduced.

We can say, that what we currently know under Aristotelian logic is actually a collective work of a few generations of translators, who enriched the original ideas by their own understanding and general knowledge of contemporary scholarship. The author is brave to assume, that this result of an accumulated effort is culturally more acceptable in the Western world as a leading light of rational logical thinking.

Eduard Bonet and Alfons Sauquet, (2010) state in their critical and historical analysis of rhetoric in management that up to the initiative of Alexander the Great the theory of his teacher Aristotle (384–322 B.C.) was compulsorily part of the official education everywhere in his empire that spanned the known world. A centralised program was introduced to the scholars in the Middle East, India and Europe. This educational tradition continued for many centuries in the Roman Empire after Cicero (106-43 B.C.) made an adjustment (Bonet and Sauquet, 2010) of the Greek writings to match the Roman practical attitude and values.

Interestingly, Cicero was not following the Aristotelean line of argument theory but stressed eloquence instead (Bonet and Sauquet, 2010); in addition to structure and style he considered the delivery to be one of the canons of rhetoric that reinforces the presentational elements in persuasive messages. His strategy that was based on powerful emotions has an affinity with persuasive manipulation, which will be discussed in the next subchapter.

Quintilian (30-95 A.D.) taught this subject as a part of curricula for contemporary public administration. According to Bonet and Sauquet (2010) during the Renaissance in Europe this presentational approach deepened while scholars, who studied the Cicero theory, focused on style and eloquence. Rhetoric traditionally was related mainly to the art of using words for argument and in this regard using language skillfully to lead the audience to a certain conclusion. Bakhtin stressed “the hidden “passive” part of language (listening and reading)….the relational basis of language” [Goosseff, 2010, p.150] referring actually to a receiver’s role in the creation of meaning.

There is historical evidence, that Alexander the Great accepted some influences from other cultures for example, Greco-Buddhism, and was accused by his contemporaries of betraying the proper Greek civic virtue in favour of the corrupted Easterners’ approach.



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However, for centuries a general notion of persuasion was traditionally linked to the rhetoric of Greek and Roman scholars. Aristotelian writing “On Rhetoric” is considered to be a fundamental effort to define the concept, to explore the main argument of successful strategies. Additionally to those mentioned above are Protagoras (485-410 B.C.), Socrates (469-399 B.C.) and Plato (429-347 B.C.). Their training on persuasive skills with its different techniques is one of the oldest known in the communication field. Some methods, those of Protagoras, were very actively implemented, for example, in British secondary education. When the author’s son attended Harrow High School for boys in London during the 90s, the 8th grade year students were divided into two groups, one of Oliver Cromwell’s supporters and another of his enemies to present arguments for and against his ideas. After the first round of discussions they had to change their roles and reverse their arguments.

3. Persuasive manipulation

Persuasive manipulation can be defined as a speculation on strong feelings with the goal to surpass logic by emotion. It was a widely used legal practice in ancient Greece and Rome. The ethical issues of involving emotions or presenting the evidence in a distorted way were questioned and first recorded by Plato.

Reputedly the oldest known manifestation of persuasive manipulation is the Venus de Mila and aesthetically pleasurable monument to persuasive manipulation is displayed at the Louvre Museum in Paris, France (see Figure 2).


Some historical sources claim [Levine and Novoa, ( 2012), p.156] that the model for this statue was a hetaera called Phryne who was accused of blasphemy. It was considered a severe crime in ancient Greece. Supposedly she got away from an inevitable death penalty by exposing herself to court members and exploiting their devotion to the Hellenistic cult of the beautiful body. This persuasive episode inspired artists in Europe for centuries. The scene painted in the 19th century by José Frappa, of her gloriously persuasive nuditity, is displayed in Musée d’Orsay.

Later, during Ciceros’ times the manuals at the contemporary law courts still affirmed systematic organisation of the evidence but the defense of someone called Fonteius is a notorious example that the whole strategy was built on compassion to his sister Fonteia (Hall, 2007). She was a Vestal Virgin, the priestess of Vesta, goddess of the Hearth in ancient Rome and in accordance with the guidelines of Cicero, pleaded in a melodramatic way to provoke sympathy, anxiety and quilt towards her brother in the hearts of the jurors (Hall, 2007).

Manipulative techniques were often imbued into modern classical criminal stories to intensify the intrigue. Tinkering with facts is one of the accepted methods to persuade the reader that the crime was committed by the less expected of the fictional characters.

Sir Arthur Conan Doyle during his tenure at the Edinburg Medical College was impressed by the deductive skills of one of his professors Joseph Bell and invented Sherlock’s Deductive Methodology based on observations. This was the main mental tool of Sherlock Holmes’s investigations. While this approach aimed to mislead the reader to one conclusion, it is outwardly close to quasi-logical persuasion style, manipulation takes place in the selection of facts. The details that confirm the real conclusion are evident but not highlighted. For example, in “A Study in Scarlet”, the facts and their



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very subjective interpretation are called by Sherlock as “a chain of logical steps without a break or flaw” [Doyle, (1981), p.90].

In her detective stories Agatha Christie also implemented a manipulative approach. With his “little grey cells” Hercule Poirot solved “Murder on the Orient Express” by sidestepping persuasive facts toward the 13 suspects by deductive reasoning.

Miss Marple unmasked the supposed victim, one of the least likely characters to be a murderer, in “A Murder Is Announced” by manipulation. She conducted “a little experiment” that involved a mysterious refugee Mitzi Kosinski, the housekeeper at Little Paddocks, who was nearly drowned in a sink by her mistress and that proved the murderous nature of the latter. An Eastern European refugee woman is shown as an exotic and enigmatic but positive character, a good cook, who played a crucial role in catching the perpetrator at the crime scene. She invokes the sympathy and empathy even if she’s wild, paranoid and mentally disturbed.

Why then a current debate in Europe reveals a lack of empathy toward refugees, migrants and aliens? The author addresses it as a clash between different persuasive styles where the quasi-logical style is often dominant. It involves rational calculations of how these people will contribute to the economy and help to pay pensions to the ageing nations in the future but require for their support significant resources right now. In these and other similar circumstances presentational and analogical styles are associated with persuasive manipulation.

The presentational persuasive style that appeals to feelings of compassion and solidarity is often perceived as manipulative in a dominantly quasi-logical cultural room. The same attitude often is expressed toward analogical persuasive style that employs comparison of the current situation to the Second World War era.

It is an anecdote that sadly but truly reflects this preference; two refugees are carrying the posters that ask for money from the passersby in one big European city. At the end of the day they compare the collected sums. One got nothing and another accumulated a fortune.

“What is written on your poster?”-asked the lucky man, his counterpart read it aloud: “Please, donate money to feed my 10 children, who are hungry. “ “Now look at mine!”- and the fortunate beggar showed his own sign, that said:” Lacking just 10 EUR to buy my ticket home.”

4. Acknowledgement

The research for this article was conducted with the support from the European Regional Development Fund.

5. References

Barnes, J. (1984) The complete works of Aristotle: the revised Oxford translation. Princeton University Press, Princeton, New Jersey.

Bonet, E. and Sauquet, A. (2010) ‘Rhetoric in management and in management research’, Journal of Organizational Change Management, Vol. 23 No 2, pp.120 - 133



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Danesi, M. (2009) Dictionary of media and communications. M.E. Sharpe Inc. Armonk, New York.

Doyle, A. (1981) The adventures of Sherlock Holmes, Avon books, New York, New York.

Garver, E. (1995) Aristotle’s Rhetoric. University of Chicago Press, Chicago.

Glenn, E, Witmeyer, D. and Stevensen, K. (1977) ‘Cultural styles of persuasion.’ International Journal of Intercultural Relations, Vol 1 No 3, pp.52-66

Goosseff, K, (2010) ’Autopoeisis and meaning: a biological approach to Bakhtin’s superaddressee ’ Journal of Organizational Change Management, Vol. 23, No 2, pp. 145-151

Gudykunst, W. (2005) ‘An anxiety/uncertainty management (AUM) theory of effective communication: Making the mesh of the net finer’, in Gudykunst W. (Ed.), Theorizing about intercultural communication, Sage, Thousand Oaks, CA, pp. 281–322.

Hall, J. (2007) ‘Persuasion in Ancient Greece and Rome,’ ADR Bulletin, 9, (10), Article 2. (online) http://epublications.bond.edu.au/adr/vol9/iss10/2 (Assessed 12 March 2017).

Johnstone, B. (1989) ‘Linguistic Strategies and Cultural Styles for Persuasive Discourse’, in Ting-Toomey, S. and Korzenny, F. (Eds.), Language, Communication, and Culture: Current Directions, Sage, Beverly Hills, CA, pp. 139-156.

Levine A. and Novoa A. (2012) Darwinistas!: the construction of evolutionary thought in nineteenth century Argentina. Series: Scientific and learned cultures and their institutions, v. 5, Brill, Leiden, Boston.

Pruvli, E. (2014) ‘Business Communication of a Persuasive Nature: Style Adaptation and Effectiveness during Intercultural Interactions.’ Journal of Intercultural Communication, 35, (online) http://www.immi.se/intercultural/nr35/pruvli.htm (Assessed 18 Detsember 2016).

Pruvli, E. (2015) ‘ Effective persuasion: A model for the intercultural business context.’ In Covarrubias Venegas, B., Dalipi, M. and Darder F. L. (Eds.) Academic Publications of SIETAR Europa Congress 2015. Refreshing the Cultural Paradigm: Sharing Stories, Theories and Next Practices. SIETAR Europa in association with Meridian World Press, Spain, Valencia, pp. 77 – 85.

Savage M., Devine F., Cunningham N.,Taylor M., Li Y., Hjellbrekke J., Le Roux B., Friedman S and Miles A. (2013) ‘A New Model of Social Class? Findings from the BBC’s Great British Class Survey Experiment.’ Sociology, Vol.47 No. 2, pp. 219-250


http://epublications.bond.edu.au/adr/vol9/iss10/2


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Figure 1. Connection between the effectiveness of Intercultural Persuasive Communication (IPC) and the awareness of communication patterns, own and other participant (drafted by the author)



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Figure 2. This shows the Venus de Milo (Aphrodite) embodies persuasive manipulation at the Louvre Museum in Paris, France (from the author’s private collection)



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POSTER SESSION PAPERS



352

THE RELATIONSHIP OF MOTIVATION, BARRIER AND KNOWLEDGE FLOW

WITHIN ORGANIZATIONS

Atila Karabag, Georg Simon Ohm

Technische Hochschule Nürnberg, Germany

[email protected]

Abstract

In this paper, the author examined the relationships of motivation, barrier, knowledge flow and

knowledge base in German-speaking area organizations using knowledge management. Consideration based on

the configuration model of organizational culture in knowledge management context which including the support

and barrier factors.

In reflection to this model it can be shown that there is a relationship between motivation, barrier and

knowledge flow.

The results indicated that an increase in motivation leads to reduce of barriers in knowledge sharing of

organization members and accordingly to an increase of knowledge base and knowledge flow. These relationships

address new aspects for knowledge management, which provide new perceptions for this research area and for

scientists.

Keywords: knowledge management, knowledge learning, learning organizations, organizational culture,

environmental learning, organizational learning, motivation and barriers.

1. Introduction

In literature, a huge amount of knowledge management models can be found in literature, not all of

them contribute to a positive and objective progress of science and the application in practice. Wallis (2008,

2009b, 2009c) pointed out that scientists develop more robust theories to generate a paradigm shift, as called

for by Kuhn (1969, 1970).

Another point is that Roth (2003) criticizes 40 to 60% of knowledge management failed projects.

Therefore it is useful to include support and barrier factors in a holistic knowledge management model to support

a successful implementation of knowledge management.

2. Configuration model of organizational culture in knowledge management context within an organization




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Based on Dauber, Yolles and Fink (2010, 2012) model the configuration model of organizational culture

in knowledge management context will be developed. The four “domains” of knowledge management will be

formed by knowledge culture, interests, willingness & capability and knowledge management operations which

are linked by activity-based processes (P1 to P3) and learning oriented processes (P4 to P6).

It can be shown that the literature-based and subsequently empirically aggregated support and barrier

factors can be displayed in a model restricted to internal process of organizations (Karabag, 2015b).

Figure 1: Configuration model of the organizational culture in knowledge management context by taking the six

support factors into account (Karabag, 2015a, 113)

Activity-based processes:

P1 “Communication of available capabilities” and support factor “Open and honest communication”

Capability and willingness can support or restrict the implementation of knowledge management

activities. Open and honest communication creates trust (Karabag, 2015) and can lead to knowledge carriers

transmit their knowledge (Li & Gao, 2003).

P2 “Knowledge objectives process” and support factor “Clarity on knowledge objectives and areas of

responsibility”

The interaction between “capability & willingness” and “knowledge management operations” will be

directly controlled by interests and indirectly by the existing norms inside the organization. ). The factor “Clarity

on knowledge objectives and areas of responsibility” support for a better estimate “what you have to know”.

P3 “Guidance process” and support factor “Personal (individual) responsibility”

Cultural knowledge gives an orientation for knowledge management activities. Personal (individual)

responsibility of organization members can increase their creativity and secure their capacity for action.



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Learning oriented processes:

P4 “Knowledge evaluation - performance evaluation process” and support factor “Ease of use”

A knowledge evaluation in learning oriented direction can change the domains capability & willingness

if predetermined objectives will not be achieved. The factor “Ease of use” can help on possible operative

implementation and using new knowledge easier.

P5 „Single-loop learning“ process and support factor “Support and available experts”

The “Single-loop learning” process can generate given interests to be matched to new circumstances.

As a result, new knowledge objectives can be defined. Support and available experts support and improve the

operative implementation of new, strategically important knowledge.

P6 “Double-loop learning” and support factor “Intellectual freedom”

Intellectual freedom of organization members increases creativity. This helps for changing fundamental

basic guidance of an organization. Deci & Ryan (1985) classify intellectual freedom as a basic psychological need

for autonomy of the perceived self-determination of one's own activity. They represent it as a precondition for

the occurrence of intrinsic motivation for knowledge management operations (Molter, 2011).

2. The Correlation between motivation, resistance, knowledge flow and knowledge base in knowledge

management

Wallis (2009a) points out that physical and sociological theory bear a likeness centrally with their

structures and correlations. A similarity between physics and social sciences can be used for the analogy of Ohm’s

Law in knowledge management.

In physics Ohm’s Law (Ohm, 1825, 1827) describes the relationship between the physical variables

current I, voltage V and resistance R and shows the linear dependence of current I and voltage V on the

conductor. During constant voltage the current decreases when resistance is growing.

𝑅 =𝑉

𝐼

In Knowledge management the Ohm’s Law’s structure can transferred.

a.) Knowledge Base KBase

In literature, the term “organizational knowledge base” is interpreted as an organizational asset which

describes the total of relevant knowledge in an organization. According to Paschke (2011), knowledge base

includes “...all data and information, all knowledge and all capabilities..., an organization resp. person has or

should have available to solve its multiple tasks”. Accordingly, in an organization the collection of all available



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knowledge is building its knowledge base (Kirsch 1990). The knowledge base is altered by learning oriented

processes as can be seen in the configuration model of organizational culture in knowledge management context.

b.) Knowledge Flow KF

The term “knowledge flow” includes the transfer of knowledge like capabilities and technology (Gupta

& Govindarajan, 2000). Schulz (2001, 662) used knowledge flow as „ … the aggregate volume of know-how and

information transmitted between subunits in all kinds of ways, including via telephone, e-mail, regular mail,

policy revisions, meetings, shared technologies, and reviews of prototypes.“ Therefore, in an organization

“knowledge flow” defines the knowledge transfer between organization members.

c.) Knowledge barrier KBarrier

The lack of a factor maps a barrier which has a negative influence to knowledge management. On the

other hand, factors are defined as support factors influencing positive on knowledge management success

(Karabag, 2015a). Singh & Kant (2008) defines barriers as factors in knowledge management have a negative

influence on the implementation’s success. This paper considers that knowledge barrier is the inability to take

up knowledge und represents a resistance to knowledge accepting.

In analogy to Ohm’s Law following facts can be derived:

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑟𝑟𝑖𝑒𝑟(𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟):=𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐹𝑙𝑜𝑤𝐾𝐹

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐹𝑙𝑜𝑤𝐾𝐹 =𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑟𝑟𝑖𝑒𝑟(𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟)

A growth of knowledge barriers in an organization with unchanged knowledge base leads to a drop

knowledge flow. Exchange of knowledge decreases in organization and organization member’s with knowledge

expertise don’t distribute their knowledge.

Hypothesis H01:

The knowledge flow in an organization is decreasing, the higher the knowledge barrier of an

organization.

Hypothesis H02:

The knowledge flow in an organization is increasing, the higher the knowledge base of an organization.

Organizational knowledge base and knowledge barrier influence knowledge flow of an organization (Hypothesis

H01 and H02).



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d.) Motivation (M):

The lack of factors represents barriers and limiting motivation of organizational members to use

knowledge management (Nesbit, 2003). Barriers resp. barrier factors determine the motivation for the

distribution of knowledge (Ardichvili, Page, Wentling, 2003). Singh and Kant (2008) pointed out that the absences

of motivation demotivates organizational members to create, share, and use knowledge and thus represents

barrier (Singh, Kant, 2008). In contrast leads the increase of motivation directly to decrease of barriers:

𝑀𝑖𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛𝑀:=1


Hypothesis H03: The higher the motivation of organizational members, the lower is the resistance of

organizational members.

𝑚𝑖𝑡𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑟𝑟𝑖𝑒𝑟(𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟) =𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒


Accordingly:

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐹𝑙𝑜𝑤𝐾𝐹 = (𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒)𝑥(𝑀𝑜𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛𝑀)

Hypothesis H04:

The higher the motivation of organizational members, the higher is the knowledge flow in an

organization.

This result shows that an increase of motivation from organization members with constant knowledge

base leads to an increase of knowledge flow and results to increase of knowledge transfer within an organization.

The organization owns members with knowledge expertise who distribute their knowledge to other members.

Overview of results of the analogy between theories of physics and knowledge management:

Chart 1: Overview of the results of the analogy between physics and knowledge management (Source: own

research)

Physic (electrical engineering) Knowledge management

Electrical resistance R Barrier resp. barrier factor in knowledge management KBarrier

Electrical current I Knowledge flow KF

Electrical voltage V Knowledge base Kbase

𝑂ℎ𝑚’𝑠𝑙𝑎𝑤𝑅 =𝑈

𝐼

Electrical resistance R =

Electrical voltage V/ Electrical current

I

∆𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟𝑒 =∆𝐾𝑏𝑎𝑠𝑒

∆𝐾𝐹

and ∆𝐾𝑏𝑎𝑠𝑒 = 𝐾𝑏𝑎𝑠𝑒(𝑡𝐴𝑡𝐵) = 𝐾𝑏𝑎𝑠𝑒(𝑡𝐴) − 𝐾𝑏𝑎𝑠𝑒(𝑡𝐵)



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𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐹𝑙𝑜𝑤𝐾𝐹 =𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒


Changes in a short time dt:

𝑑𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐹𝑙𝑜𝑤𝐾𝐹

𝑑𝑡=

𝑑𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒 𝐾𝐵𝑎𝑠𝑒 𝑑𝑡⁄

𝑑𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑟𝑟𝑖𝑒𝑟 𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟 𝑑𝑡⁄

Possibly influence factors will be not changed in a short time

dt = tA - tB: 𝑑𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟𝑒 ≈ 0.

With constant knowledge barriers the change of knowledge Base

∆𝐾𝐵𝑎𝑠𝑒 compulsorily leads a change of knowledge flow ∆KF in an

organization.

𝑀𝑜𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛𝑀:=

1

𝐾𝐵𝑎𝑟𝑟𝑖𝑒𝑟


= (𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒)𝑥(𝑀𝑜𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛𝑀)

With constant knowledge base the higher the motivation of

organizational members, the higher the knowledge flow in an

organization.

3. Results of the empirical survey

User and manager in the same organization participated in a questionnaire survey in German-speaking

area (population) which uses knowledge management.

In the following, it had been examined, if the constructs “knowledge flow KF”, “knowledge base Kbase”,

“knowledge management barrier KBarrier” and “motivation” of organizational members are sufficiently reliable.

The reliability will be examined by Cronbach’s coefficient Alpha of selected items from literature:

Chart 2: Cronbach’s Alpha coefficient of the constructs “knowledge flow KF”, “knowledge base

Kbase”, “knowledge management KBarrier” and “motivation” (Source: own research)

Constructs Number of items Cronbach’s α

Knowledge Base KBASE 33 0.962

Knowledge Flow KF 16 0.906

Knowledge Management Barrier KBARRIER 38 0.954

MOTIVATION 5 0.822



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The Cronbach’s coefficient Alpha of the four constructs take a value more than 0.8 and build a good

baseline for the internal consistency in sense of Nunnally & Bernstein (1994).

The influence of Knowledge Base, Knowledge Management Barrier and Motivation to Knowledge Flow:

Subsequently, it is examined whether the constructs Knowledge Base, Knowledge Management Barrier and

Motivation have a significant influence on Knowledge Flow and hypotheses H01 to H04 will be verified:

Following table shows the Pearson-Correlation between the constructs.

Chart 3: Pearson correlation coefficient between the constructs N=182 (Source: own research)

P 1 P 2 P 3 P 4

P 1 Knowledge Base KBASE 1

P 2 Knowledge Flow KF .857** 1

P 3 Knowledge Management Barrier KBARRIER -.821** -.760** 1

P 4 MOTIVATION .592** .523** -.466*** 1

Significance level of correlation: * p ≤ .05; **p ≤.01; ***p ≤ .001; all one-sided

The more motivated the organization members are, the lower the resistance of the members of the organization

is to exchange knowledge (r = -0,466; p=000).

This hypothesis H03 is confirmed: “The higher the motivation of organizational members, the lower the

resistance of organizational members.”

D. h.: In the “Configuration model of organizational culture in knowledge management context” the

decrease of the barriers leads to an increase in support factors and thus to increase in activity-based and learning

oriented processes in organization. Consequently, knowledge activities and, ultimately, knowledge flow are

increased.

Following table shows the influence of knowledge base and knowledge barrier on knowledge flow.

Chart 4: Influence of knowledge base and knowledge barrier on knowledge flow (Source: own research)

Hypotheses Path coefficient β coefficients of

determination R2

Significance

p < 0,05

VIF

< 10

Confirmation of

hypothesis

Knowledge Base 0.715; p=0,000 0.863 √ √ Hypotheses is

confirmed



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Knowledge

Management Barrier

-.173; p=0,01 0.863 √ √ Hypotheses is

confirmed

Consequently, hypotheses H01 and H02 are empirically confirmed.

In “Configuration model of organizational culture in knowledge management context“ can be shown

that an increase of knowledge flow can be achieved by decrease of barriers or increase of the knowledge base.

For example, training measures and the use of internal and external consultants can increase the knowledge

base of an organization.

The following table poses the influence of knowledge base and motivation on knowledge flow.

Chart 5: Influence of knowledge base and motivation on knowledge flow (Source: own research)

Hypotheses Path coefficient

β

coefficients of

determination R2

Significance

p < 0,05

VIF

< 10

Confirmation of hypothesis

Knowledge Base 0.847;

p=0,000

0.860 √ √ Hypotheses is confirmed

Motivation 0.022; p>0,05 0.860 √ X Hypotheses is not confirmed

The construct motivation cannot exhibit a direct significant influence on knowledge flow. Possibly an

indirect effect be on the hand, for example, a mediator effect exits of the factor „Knowledge base“ on the factor

„knowledge flow“ over the factor "motivation".

This also demonstrates that knowledge flow can increase independently of factor motivation of

organizational members by increasing knowledge base. In "Configuration model of organizational culture" can

be point out that an increase of knowledge base of the organization by training or external consultants leads to

an increase of knowledge flow in an organization.



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Figure 2: Investigation of the influence of the factor “motivation” on “knowledge flow” by means of the

mediator “knowledge base” (Source: own research)

Taking into account the mediator effect, it becomes clear that more motivation of the organization

member's leads to increasing knowledge base of the organization (r = .801; p=.000) and consequently the

exchange of knowledge of the organizing members increases (r = .847; p=.000).

In the regression analysis, the direct influence or effect of "motivation" of the organization members is

checked on “knowledge flow”, which is not significant (p> .05). Factor "motivation" indirectly affects successful

factor "knowledge flow" via factor "knowledge base" and thus represents an important factor.



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4. Limitations and Conclusions

The implementation of data collection samples in the German-speaking world constitutes an additional

limitation of this research. A distortion of the measurements results by "single source bias" cannot be excluded

(Podsakoff et al., 2003).

In this context, Wallis (2009a) points at the similarities regarding structures and correlations between

existing models and compares theories from physics and social sciences.

The analogy of Ohm’s Law in “Configuration model of organizational culture in knowledge management

context” displays, that the change of knowledge flow ∆F compulsorily leads a change of knowledge base ∆KBase

in an organization. Only if the organization supports the barriers resp. the six mentioned support factors, the

increase of knowledge base in an organization can be guaranteed.

Knowledge flow in an organization is subject to the following equation:

𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝑓𝑙𝑜𝑤𝐾𝐹 = (𝐾𝑛𝑜𝑤𝑙𝑒𝑑𝑔𝑒𝐵𝑎𝑠𝑒𝐾𝐵𝑎𝑠𝑒)𝑥(𝑀𝑜𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛𝑀)

Figure 3: The relationship of the three components “Knowledge Barrier (KBarrier)”, “Knowledge Base (KBase)”

and “Knowledge Flow (KF)” (Source: own research)

I.e. an increase of motivation leads to an increase in knowledge base. This change of knowledge base

drives in turn to an increase in knowledge flow. Conversely, a decrease in motivation of organization members

causes a reduction in knowledge base and knowledge flow.

If "motivation" is unchanged, "knowledge flow" can also increase as a result of the increase in

"knowledge base", if the capacity of the organizational members increases as a result of training, or by internal

or external advice as shown in "Configuration model of organizational culture in knowledge management".



362

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DRIVING TOGETHER: MEXICAN GERMAN INTERCULTURAL COMMUNICATION IN THE AUTOMOTIVE INDUSTRY.

Yolanda López García, Theresa Endres Friedrich-Schiller University Jena, Germany [email protected], [email protected] Abstract

Via expert interviews we ascertain the main issues relating to Mexican-German interaction in an automotive organization. We analyze from an intercultural perspective how communication and culture impact the working environment and business. We discuss the influence of the perceived differences among cultures and the possibilities to create synergies. The measures that have already been undertaken by the organization and the most challenging areas that need to be improved.

We argue that for being able to appreciate and benefit from the diversity among the employees, it is needed to implement measures for the whole organization and not only for some employees. We see this research as a chance to raise awareness on the need of intercultural preparation and understand the magnitude that culture and communication have in everyday life and work. This works contributes to the study of an area that has not been fully explored. Keywords: Mexico, Germany, intercultural communication, Automotive, solution-orientation

1. Introduction Mexico and Germany share strong historical ties that have contributed to build their current political

and economic relations (Bernecker 2015). With the aim of intensifying the good relations between Mexico and Germany and under the motto

"Alliance for the Future", President Enrique Peña Nieto and Chancellor Angela Merkel agreed to establish the year 2016-2017 as the 'Dual Year'. It also seeks to deepen knowledge regarding the countries, to present 'more images' that are multifaceted, showing the traditional side, the dynamic, modern and innovative side of both countries in three fields of action (arts and creative industries; education, science and innovation; trade, investment and tourism) (Trejo, 2016:10).

In this context, most of the sources focusing in the German-Mexican relation (firstly coming from

government and diplomacy) highlight it as unique and special. For Germany, Mexico is important because of its geostrategic characteristics and its international commercial openness - holding a network of 12 Free Trade Agreements with 46 countries and participating actively in multilateral forums (Secretaría de Economía, 2015).

Germany is seen as the gateway to Europe for Mexico. It represents an alternative to diversify and

extend trade beyond the traditional avenue to the United States of America. Germany is the fourth largest investor in the country (Año Dual México Alemania, 2016).

The automotive sector in Mexico is considered as one of the most important and strongest pillars of the

Mexican economy. Despite Mexico's political and social changes, it remains an attractive country for investments that generate growth in the sector, as has been seen in recent years with the opening of new production plants (Carbajal and del Moral, 2014: 99; Animal Político, 2017; Proceso, 2017).

According to Alcántara (2013: 37) and Sierra (2013: 14) Mexico and Germany have developed a positive

relationship with “Augenhöhe”. That is to say, they engage in dialogue on equal terms as countries thanks to the bonds that unite them, to the interests, values and goals that they share as demonstrated in different international forum in which they participate, for example, in issues concerning human rights and democracy.



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In commercial terms, this partnership means for Mexico about 120,000 jobs (Trejo, 2016: 8f.) depending on the 1,900 German companies registered in Mexico (CAMEXA, 2016; Año Dual México Alemania, 2016). This means coexistence between people from different socio-cultural contexts in the workplace and in daily life.

In this paper, we highlight the relevance of interculturalism in the workplace and business, for instance, the role of culture and its effects on communication in the interaction between Germans and Mexicans who work in a company in the automotive sector.

We argue that in this context, it is essential to implement integrative measures for the whole organization to facilitate and improve collaboration. It is important not just focus on problems caused for instance by different styles in communication and forms of work. As well as on just a special group of employees, which is normally the case of the expatriates sent from Germany. We highlight the fact that all employees, local and foreign, need to be interculturally trained. This measure will allow them to improve their understanding and reflection for the diverse working and communication styles as well as to benefit from the diversity among the employees. Therefore, the organization will benefit from the changes towards diversity awareness, openness and intercultural competence.

To begin, we firstly describe the methodology. Secondly the results of the study, which includes three interviews with experts who share their observations on the situation, challenges and opportunities in the collaboration between Mexicans and Germans in the context of a German automotive company in Mexico. To conclude, we present, from an intercultural perspective, the measures employed by the company, and those that could be implemented to improve the interaction between the personnel.

2. Methodology

To explore the situation of German-Mexican collaboration in the automotive sector, three interviews were conducted with experts working at a German plant in Mexico. The names of the company, and of the interviewees, have been changed.

An expert is considered to be the person "who has specific knowledge of a topic or subject area, in which

the expert has acquired and developed in his academic and / or professional training" (Luttermann and Schäble 2015: 397). As Gläser and Laudel (2010: 11-13) suggest, apart from the knowledge acquired especially through the profession, one can become an expert through involvement in the situation and / or in the process related to a relevant social phenomenon by research. Hence, through the interview with experts one can access the special knowledge that these people possess. The three interviewees meet these requirements because they are part of the relevant work context for this research.

The interviews were conducted individually according to the availability of the interviewees in their own offices between May and June 2016. The first interview had to be interrupted and was resumed another day. These are three people, two German (man and woman) and one Mexican woman.

The interviews were semi-structured. A questionnaire was developed that served as a guide but not all

subjects were discussed with the same intensity according to the interviewee and their personal preferences. The results of the interviews yielded very different themes, for example on the challenges and opportunities in collaboration between Mexicans and Germans (or people from another country of origin). On concrete measures to improve this collaboration, so much that they have already been done in the past, or strategies that should be taken in the future.

To process the interviews, the f4 software program was used for both transcription and data analysis.

In total, thirteen codes with twenty subcodes were obtained. For the purposes of this research, we present the challenges and synergy effects on the collaboration between Germans and Mexicans, the carried out measures of improvement and their practical implications.

This small, exploratory research aims to investigate Mexican and German collaboration through the

perceptions of three experts in the area. Through their perceptions, we were able to get involved in the main topics that they reflected upon the interaction between Mexican and German co-workers. We are aware that having three interviews is a reduced number for such a large field of action. Nevertheless, we want to highlight the qualitative and explorative aspect of this work and its contribution to a topic that has not been deeply



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researched. We are fully aware that talking about 'Germans and Mexicans' generalizes and contradicts the

perspective of openness and diversity of the authors. However, we do not intend to encompass individuals under any national category other than for the purposes of writing this article.

3. Empirical findings and implications 3.1. Challenges and synergy effects of collaboration

Challenges regarding collaboration between Mexicans and Germans (mainly) were mentioned in all

interviews. These challenges can be divided into the organizational and individual levels, i.e. direct collaboration between people from different countries of origin.

The lack of intercultural preparation was strongly mentioned as a challenge at the organizational level.

Regarding the people sent abroad and for those who are already part of the working team in the receiving country, in this case Mexico.

Intercultural preparation refers here to measures of staff development. This entails seminars or

coaching that encourage self-reflection in terms of communication and socialization of the individual in a given context, while preparing him or her for entry to another. Successful preparation looks to initiate a change of perspective, and enable motivation to enter into dialogue with others in daily life.

Regarding the implementation and facility of obtaining intercultural preparation in the company,

different observations emerged from the interviews. On the one hand, it is ensured that today all employees arriving from abroad, either with local contract or from the sending company in the country of origin, have the opportunity to obtain intercultural preparation and a language course (Interview 3: 21-23), a situation that approximately ten years ago was not possible (Interview 1A: 3,5,13 and Interview 1B: 76). On the other hand, one of the interviewees argues that there are difficulties in accessing the preparation, to mention only three cases: first, due to the lack of time and personnel to cover the work while attending the courses. Secondly, those newcomers to the country who have to start immediately with the job (Interview 2: 153). Third, if preparation courses are offered, a certain number of attendees must be achieved in order to be able to carry it out.60

The lack of budget for intercultural training is an important aspect to consider. The development of

intercultural competences is not the priority of the company, which normally seeks quantifiable results, and the benefits of workshops cannot be measured so easily (Interview 1A: 29, 31). In addition, intercultural preparation focuses individually rather than developing integrative measures for the whole team (Interview 1A: 43).

Due to the fact that it is a German company located in Mexico, it is expected that local collaborators are

accustomed to working with those sent from Germany because it is seen as "Business as usual" (Interview 2: 154). On the other hand, it is assumed that there is support among collaborators, and that learning to collaborate is a mutual process; "Learning by doing" (Interview 1B: 82 and Interview 2: 153).

Although this process of self-organization and self-learning may work in individual cases, in most

constellations this causes conflicts. "You can send the best specialist on a topic but you realize that he/she is the best in your country or your city or your culture, but not in the other." (Interview 3: 23).61 It can be seen that, consequently, the measures of the organizational level have immediate effect at the individual level.

Possibly, if a person is sent without preparation to another country, it is possible that the person –

unaware of local work norms – will experience culture shock, or "failures of international assignments occur precisely because people fail to adapt, or cost the company much because they are attempting it in a trial and error manner (...) and all of these (...) attempts cost time, cost money, energy, [...] "(Ibid.).

If cultures are described as "Life Worlds" (Bolten 2012: 43) which have emerged as "products of

communication processes for thousands of years" (Ibid: 45) that "are determined by their members constantly

60 This information was obtained through a call with an interviewed person to corroborate some data. 61 Original quotes in Spanish or German can be found in the Appendix, Translation by Theresa Endres (T.E.).



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in a communicative way" (Ibid), and where "normality, plausibility and reasonableness are elementary factors in recognizing a Life World as 'own'"(Ibid.), it is clear that when leaving a known Life World and entering another, irritation may develop.

If we understand a known Life World (for example a culture), where the individual understands the social conventions that generate normal, plausible and meaningful agency; and in the case of moving to another world of other people's life, where one does not have the security of understanding how to act and therefore is lacking in normality, plausibility and meaning; insecurity is generated when interacting. This dynamic process is also understood as interculturality. Negotiating ways of interacting and generating certainty, can be understood as intercultural competence by having the "capacity to transform the ‘transient culture’, characterized by what is foreign in culture, creating cohesion through normality" (Rathje 2006: 13 in Bolten, 2015: 271). For example, it turns out that there are "a large influx of Germans coming to Mexico expecting (...) to put into practice everything they do there (in Germany) and arrive and run into the fact that they actually can not. Because simply the infrastructure is different, (...) the materials with which we count on are different, (...) the organization is different, the way of thinking, then you cannot make a copy paste of a local company abroad, you always have to (…) change certain characteristics, right?" (Interview 3: 16).

Interpersonal conflicts are created based on differences in themes of communication style or work style (see for example Ferres et al., 2005; Mecke et al., 2012; Müller - Jacquier, 2003 and more). The direct style used by many Germans is often perceived as aggressive or unkind by Mexican employees (Interview 2: 95). For their part, the Germans often perceive the indirect style as not very precise and in a sense of over-talking:

“But a person very oriented to the Mexican style, has difficulties getting to the point, for example in a

meeting, [...] while the German is listening and watching the clock and thinking "Konkreter!", right? Or say what you want to say and the other person is offended, he/she takes it as something that is not very kind, and this also generates conflicts." (Interview 3: 18). As mentioned in the quotation above, it is also perceived that there is a tendency for Germans to focus more on tasks while Mexicans link it to the person who corresponds to the task. The orientation towards the person – or the task in the work context – plus the way of communicating are key factors in terms of misunderstandings, for example when giving feedback (Ibid).

In addition, there is a clear separation between work and private life on behalf of the Germans, also influencing their willingness to exchange small talk phrases in the style of "how are you" (Interview 2: 99). It is said that a first exchange on personal level with private issues is almost essential in the Mexican labor context to appear polite, while German colleagues often do not relate this with courtesy or rudeness (Ibid.). It is explained that many German expatriates perceive the labor world in Mexico as being not effective due to differences in concepts of time and the structure of the working day. To mention, for example, delayed deliveries of work or results required (Ibid: 33), long working days but less efficient in terms of results (Ibid: 127), or the need for pressure and control not to forget tasks or to fulfill them in a timely and correct manner (Ibid: 131, 133). "It is said: that what takes a Mexican eight hours to do, it would probably take the German five hours." (Ibid: 127).

The critic of the missing structure and planning that for foreigners seem to lack, may become an

advantage in the Mexican labor world because these demands, according to the interviewees, flexibility and absolute creativity facing conditions and infrastructure that change constantly and unexpectedly. Obstruction in one's own structures and ideas instead of entering into a dialogue with others can cause frustrations, also in the process of collaboration between Germans and Mexicans because "it is not possible, uh [...] to have your own personality 100% in a culture where things work differently and also because you do not even know what is different.” (Interview 3: 18).

Consequently, collaboration can only be successful when considering the people involved with their

beliefs, values and thoughts as well as the factors of the environment. It cannot be forgotten that it is a 'constant process' of exchange and negotiation between these factors. In this sense, interculturality is understood as "[...] a process that basically refers to the dynamics of coexistence between members of different worlds of life, their relationships between them and their interactions." (Bolten 2012: 39).

There are also differences in the custom and willingness to work independently of the employees: "for

some the motto is valid: meanwhile I do not hear anything, it works, and for others it is, if I do not hear anything,



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it cannot work" (Interview 1A: 75). According to the interviewees (e.g. Interview 1B: 50), what complicates collaboration are stereotypes,

which are often expressed comically but show typical images in the perception of each other, and can influence negatively the relationship because one feels hurt before entering into a deeper relationship. At this point, there is also mentioned the diffuse, superficial opinion that exists among Mexican employees that German are favored in the Mexican branch, especially in labor promotion processes (Ibid: 35, 41).

This contrasts the positive relationship in “Augenhöhe” (Alcántara, 2013: 37 and Sierra, 2013: 14) as it

is described and promoted in the politics between Mexico and Germany, regarding the dialogue in equal circumstances. One factor that may contribute to the special status of German expatriates is the limited time provided for their stay in Mexico. On the one hand, it is simply impossible to get a thorough knowledge of all the socio-economic and historical factors of the environment in a relatively short time (from a few months to a few years). On the other hand, this can cause a closed attitude of the expatriates himself towards the environment and influence the collaboration in a negative way 'enduring' the stay (Interview 1B: 33 and Interview 3: 27).

To close the part related to the category of perceived difficulties, there is awareness among some of the

people involved in this process that measures need to be implemented to overcome such difficulties and to foster collaboration. Even people who receive intercultural training demand that it must be integrative for the whole team. In addition, people with local contracts demand support in this area (Interview 1A: 43), because they have to become accustomed frequently to new collaborators who come continuously from abroad (and not only from Germany).

There is no doubt that such collaboration is not easy. However, positive aspects and synergy effects also

emerged in the interviews. First, as a general observation, German influence in Mexico carries with it an economic development that positively affects not only a sector but also the development of the city where the German company is located. German companies are seen as symbol of hope because they display a stable opportunity to become more independent from U.S. influence (Interview 3: 47), which seems now to be more important than ever.

At the individual level, collaboration is perceived as enriching (Interview 2: 119, 121) because being in

contact with people from other cultural contexts encourages self-reflection that leads to a better knowledge of oneself and of one's social environment.

In addition, one develops interpersonal skills that facilitate relationships with people in general, but

especially from different contexts (Ibid: 121, 123). It is mentioned that one can realize personal characteristics on his or her own, for example concerning communication, and how this learning effect can be used together with self-reflection to improve collaboration (Ibid.: 119, 121 and Interview 3: 16, 25, 29). It fosters a process of personal learning and flexibility in relation to other perspectives or styles of work than one’s own (Interview 3: 16, 25):

“[...] it allows you to open up to the world, to gain perspectives on other areas that you might not even

have considered before [...] It is a mutual learning process because I am sure that the Germans that arrive here are not the same as the Germans that are returning." (Interview 3: 47).

To take more advantage of the exchange of perspectives in this constellation synergy effects arising in

the process of collaboration must be addressed with suitable measures.

3.2. Carried out measures of improvement Due to the measures of improvement already applied by the automotive organization, it can be said

that it positions itself as a role model for other companies. This role model function is strongly emphasized because, apart from offering a language course (Interview 3: 22) to the expatriates, "they give them not only a [intercultural] seminar but two, one on arrival, with explanations about Mexico, and a second seminar, specifically for employees [...] and even families are invited, and that is something that does not happen in other companies." (Ibid: 23).

It is highlighted that on behalf of the area in charge of the intercultural preparation of this company

(Interview 1A: 37), an attempt was made to create awareness among employees that there are also regional,



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generational and gender differences that are also part of cultural differences. From the perspective of German intercultural theorists like Bolten (2012) – consistent with the theory

of Hansen (2009) talking about collectives – argues, the concept of culture used here is open and transcends a closed understanding of culture in the sense of national cultural discourse:

“Just as cultures (e.g., groups, companies, ethnic groups, nations) are composed of a great variety of

collectives (in the sense of subcultures) that can be described as "poly-collectives", their agents are characterized by a multi-collectivity more or less pronounced. At the same time, they belong to worlds or "cultures" (families, groups, ethnic groups, religions, professions, virtual communities, etc.) that are very distinct (and spatially very widespread). The decisive factor is that between the actors and their worlds there are reciprocal relations that differ in their intensity, but that in any case act as constituting an identity” (Bolten 2015: 269).

Likewise, the automotive plant tries to highlight the positive effects of being different people and focus

on the emergence of synergy effects (Interview 1A: 37). An example of good practice (Ibid: 81, 83) is the collaboration of Spanish, German and English language coordinators who are represented by native speakers. Each one represents the interests of their team, but they work collaboratively for the same goal.

Rathje (2007: 260) identifies interpretations of interculturality that are governed by their cultural

approach to coherence or cohesion. If culture is perceived with the approach of coherence, it is understood as a closed entity with clear boundaries and boundaries; homogenous and uniform, for example "nation" and "religion". If culture is understood under the logic of cohesion, where there are differences and sub-cultures, the individual is conceived as an actor member of various social groups, where he has his capacity of agency networking. Their multiple membership in these groups, and their ability to generate normality in their internal differentiation. is understood as cohesion.

In order to generate a cohesive organizational culture, total coherence is not necessary, that is, it is not

necessary to have a homogeneous context. It is even better when there are differences among employees. The important thing, according to Rathje (2004: 301), is to communicate and work consciously with diversity, appreciating differences and fostering dialogue between collaborators rather than imposing homogeneous measures.

To mention an example of the measures applied in the company in question, the tandem workshop

carried out by the language center that looks to take advantage of the knowledge and diversity of the heterogeneous team. Under the motto 'change perspectives', experiences and suggestions were exchanged that allowed in this case to improve the classes between teachers and students, both Mexican and German (Interview 1A: 69, 71). The result has been, according to one interviewee (Interview 2: 159, 161), openness in behavior between the two groups.

3.3. Practical implications

Especially in the area of intercultural training (Interview 1A: 37, 49, 51) an awareness exists that there

is still more to do to continue to improve collaboration in the future. In the long run, it would be ideal to generate an affirmative and positive attitude regarding the diversity among all of the employees, provoking a change of organizational culture. Consequently, it is necessary to extend these measures that are used until now exclusively so that those sent to another context "do not suffer a collapse while there. In a sense, to be successful, or perhaps that they do not fail as much in something. That they do not destroy that much.” (Interview 1A: 43) to all employees and not just those sent (IbId.: 43 and Interview 3: 23).

It would be the goal to achieve a basic level of intercultural competence for everyone in the company

(Interview 1A: 49), because in the globalized world we live in, this is useful both in work context and in private context, because today interaction with people from other cultures62 in our social environment is an everyday reality (Interview 1A: 43).

The interviewed person refers to the basic level of intercultural competence of awareness that there

62 The interviewed person initially refers to culture in the national sense but then adds that it includes culture in the sense of the broad

concept as explained before (see Rathje 2007 and Bolten 2012, 2015).



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are different cultures among employees, and to strive to face the obstacles that come from this fact and try to work in the best way, together in this context. Although there is no single definition of intercultural competence, we understand it according to Rathje (2007: 264) who describes it on the grounds that

"Given that culture is understood as existing within human groups, characterised by cohesion that is

due to familiarity with inherent differences between them, then intercultural competence can be defined as a culture-generic skill, which is required in interactions between individual from different human groups who are experiencing foreignness as a consequence of their mutual ignorance of the spectra of differences between them, with a view to producing culture by creating familiarity and thus cohesion amongst the individuals involved, allowing them to pursue their interactional goals".

On behalf of the company it would be necessary then, in a first step to offer language courses as well as

orientation seminars and/or constant accompaniment to all of the employees who come from abroad to be able to get used to the new environment (Interview 2: 147, 149). In a second step it should strengthen collaboration in the team through integrative activities.

Here, on the one hand, it can draw on the experience of many years of Mexican employees in terms of

collaboration with expatriates or people from abroad that are contracted under local conditions (Interview 1A: 55). On the other hand, it is observed that more and more foreigners come to Mexico on their own choice, whereas before it was seen as a necessary step to climb the professional career (Ibid). It demonstrates more initiative and interest in a successful collaboration, which can be understood as the first indicators towards a more diverse and open organization.

In the meantime, you can continue to leverage diversity among employees and strengthen the

exchange. In the example of this case, mention is made of intensifying the idea of working continuously in tandem (Ibid: 87, 89) to foster interaction and an exchange of perspectives.

What becomes clear is that one has to show flexibility and a willingness to develop a collaborative process in relation to the appropriate way in which to work and communicate (Interview 3: 16). That implies that negotiation on a mutual basis is the best way to collaborate (Interview 1B: 74) so that one can "take advantage of the strengths that each one has (...) and then exploit them so that the work is carried out and everyone can achieve all that they have to achieve." (Interview 3: 29).

However, there is no universal remedy: Each constellation must always be viewed individually because

it is unique and has unique internal and external constituent factors (e.g. the hierarchical relationship between involved people, social environment factors, individual values) (Interview 1B: 86, 88 and Bolten 2012: 40f, 46). 4. Research limitations

Interviews with experts offer the possibility to get specific and detailed knowledge of a topic and its

concrete context. As a qualitative explorative study, we are aware of the subjectivity of the interviews and all of the elements that may influence them; three experts with a particular point of view and their perspectives upon the social phenomena they are discussing about.

An interview is always a construction of a moment between interviewer and interviewee. It should be

noted that the interviewer knew the interviewees due to professional reasons in the automotive company. In addition, the German nationality of the interviewer, and the use of a non-native language - especially in the interview with the person of Mexican nationality - could have had an impact on subjects and the expression of opinions by the interviewees.

One has to consider the background of the interviewed persons, too: All of them have been living for

more than 10 years in Mexico (and the Mexican interviewee had also lived for almost 7 years in Germany); this means that they have already experienced a stage of reflection and some kind of acculturation, whereas other results may have emerged if interviews had been conducted with expatriates recently sent to Mexico. However, we consciously selected the interviewees considering their expertise in the field.

It has to be taken into consideration that the collected data refers to just one German company in Mexico.

Therefore it remains uncertain whether similar results would have emerged in other companies as well. Beyond these limitations we see this research as a chance to continue investigating this topic that has not been fully



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explored.

5. Conclusion In this work we approached interculturality applied to business, highlighting the effects that culture and

communication have on interpersonal interactions. Through the method of interviewing experts, information was accessed from three employees of a German automotive company in Mexico.

To summarize the interviews, it has to be stated that there are challenges in the collaboration between

Mexicans and Germans in this automotive plant due mainly to different styles of communication or working styles. From there arises the need to train all the employees in order to improve their collaboration. It is necessary to extend the measures previously carried out exclusively for the expatriates and extend them to all the company's employees. This will allow to initiate a change of business culture towards an open culture that appreciates the differences of all the employees. Here we mean difference in a broad sense: what is proper for members of cultures because of their membership of different collectives according to the concepts of "multi-collectivity" and "poly-collectivity" (Hansen, 2009: 11). Thus, it is possible to generate a cohesive organizational culture as proposed by Rathje (2004), which implies that there is organizational cohesion and solidarity among the members of the organization, although this organization lacks homogeneity (Rathje, 2007).

There have arisen synergies in the collaboration between Mexican staff and foreigners, and strategies are

being implemented to strengthen the exchange of perspectives, for example with measures such as tandems. However, it remains to introduce this and other measures for all employees of the company at different levels of the organization. At the individual level, critical factors for successful collaboration are considered: Empathy, reflection, self-reflection in the sense of taking distance from one's own role and flexibility (Bolten 2012: 47). Communication is a key to success in this process, because it negotiates the conventions, rules and rituals that form the basis of our living environment (Ibid: 41).

Consequently, we consider that all employees should receive training to promote such skills, as well as

language courses for the staff that require it, since understanding the language is important in order to be able to integrate and better understand the visions of a given culture.

It is crucial that organizations implement intercultural preparation and understand the magnitude that

culture and communication have in everyday life and work, despite not having quantifiable results that support the justification of its implementation. In general, it can be stated that in the collaboration between German and Mexican employees there are no issues that generate irreconcilable problems: one of the major challenges is to reconcile the very particular asymmetries that could be developed, taking into account the personalities of the individuals where ethnocentrism and hierarchy issues could arise, presented in other investigations, which tend to infantilize the Mexicans and present the Germans in a haughty and hierarchical way (Maletzky, 2010 and von Groll, 2010).

It can be concluded that at the macro level, both in foreign policy and in the commercial aspect, there are

shared visions and values that foster the positive relationship between Mexico and Germany, which can be seen in broad terms, as a positive collaboration. In the words of Robert Bosch CEO René Schlegel, German companies value two virtues of their collaborators in Mexico: "One is loyalty and more when they find a reliable environment and second, the interest to learn."(El Financiero, 2016). For a collaboration to be successful, we believe that openness and interest in learning must go both ways, precisely to create new forms of interaction in an atmosphere of respect and trust.

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Appendix

Source Original quote Translation by T.E.

Interview 3: 23 Uno puede mandar al mejor especialista en un tema pero te das cuenta que es el mejor en tu país o tu ciudad o tu cultura, pero no en el otro.

You can send the best specialist on a topic but you realize that he/she is the best in your country or your city or your culture, but not in the other.

Interview 3: 23 fracasos de asignaciones internacionales precisamente porque las personas no logran adaptarse o le cuestan mucho a la empresa porque están intentándolo a prueba y error (...) y todos estos (...) intentos cuestan tiempo, cuestan dinero, energía, [...]

failures of international assignments occur precisely because people fail to adapt, or cost the company much because they are attempting it in a trial and error manner (... ) and all of these (...) attempts cost time, cost money, energy, [...]

Bolten 2012: 43 Lebenswelten Life Worlds

Bolten 2012: 45 Produkte jahrtausendelanger Kommunikationsprozesse

products of communication processes for thousands of years

Bolten 2012: 45 Sie werden von Mitgliedern einer Kultur permanent kommunikativ bestimmt.

are determined by their members constantly in a communicative way.

Bolten 2012: 45 Normalität, Plausibilität und Sinnhaftigkeit sind die entscheidenden Elemente, um eine Lebenswelt als 'eigene' anerkennen zu können.

Normality, plausibility and reasonableness are elementary factors in recognizing a Life World as 'own'.

Rathje 2006: 13 in Bolten, 2015: 271

capacidad de transformar la intercultura "pasajera", caracterizada por lo ajeno en cultura, creando cohesión mediante normalidad

capacity to transform the “transient culture", characterized by what is foreign in culture, creating cohesion through normality

Interview 3: 16 una afluencia grande de alemanes que viene a México esperando (...) eh como que poner en práctica todo lo mismo que hacen allá y llegan y se topan con la característica o peculiaridad que no se puede. Porque simplemente la infraestructura es diferente, (...) las (...) los materiales con las contamos son otros, eh (...) la organización es otra, la forma de pensar, entonces no puedes hacer

large influx of Germans coming to Mexico expecting (...) to put into practice everything they do there (in Germany) and arrive and run into the fact that they actually can not. Because simply the infrastructure is different, (...) the materials with which we count on are different, (...) the organization is different, the way of thinking, then you





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un copy paste de una empresa local al extranjero, siempre tienes que (...) cambiar ciertos características, ¿no?

cannot make a copy paste of a local company abroad, you always have to (…) change certain characteristics, right?

Interview 3: 18 pero una persona muy orientada al estilo mexicano, le cuesta trabajo llegar al punto, por ejemplo en una junta, [...] mientras que el alemán está escuchando y viendo el reloj y pensando:" Konkreter! ", ¿no? O sea di lo que quieres decir y ya, la otra persona se ofende, lo toma como que algo que no es muy amable, y este también genera conflictos.

But a person very oriented to the Mexican style, has difficulties getting to the point, for example in a meeting, [...] while the German is listening and watching the clock and thinking "Konkreter!", right? Or say what you want to say and the other person is offended, he/she takes it as something that is not very kind, and this also generates conflicts.

Interview 2: 99 cómo estás how are you

Interview 2:127 es wird immer so schön der Spruch gesagt: das was der Mexikaner in acht Stunden macht, das macht der Deutsche wahrscheinlich in fünf.

It is said: that what takes a Mexican eight hours to do, it would probably take the German five hours.

Interview 3: 18 no es posible, eh (...) tener tu propia personalidad al cien por ciento en una cultura donde las cosas funcionan diferente y además porque ni sabes que es lo diferente.

it is not possible, uh [...] to have your own personality 100% in a culture where things work differently and also because you do not even know what is different.

Bolten 2012: 39 “[...] ein Prozess, der sich im Wesentlichen auf die Dynamik des Zusammenlebens von Mitgliedern unterschiedlicher Lebenswelten auf ihre Beziehung zueinander und ihre Interaktionen untereinander bezieht.

[...] a process that basically refers to the dynamics of coexistence between members of different worlds of life, their relationships between them and their interactions.

Interview 1A: 75 für die einen ist so die Devise, solange ich nichts höre, funktionierts, und die anderen, wenn ich nichts höre, dann kanns nicht funktionieren.

for some the motto is valid: meanwhile I do not hear anything, it works, and for others it is, if I do not hear anything, it cannot work.

Interview 3: 47 “[...] te permite abrirte el mundo, o tus perspectivas a otros áreas que antes a lo mejor ni considerabas [...] Es un aprendizaje por dos lados porque estoy segura de que los alemanes que llegan aquí no son los mismos que los alemanes que se regresan.

[...] it allows you to open up to the world, to gain perspectives on other areas that you might not even have considered before [...] It is a mutual learning process because I am sure that the Germans that arrive here are not the same as the Germans that are returning.

Interview 3:23 les dan no sólo un seminario sino dos, uno a la llegada con toda la explicación sobre México, y un segundo seminario, específicamente para los empleados (...) e incluso se invita a las familias, y eso es algo que no, no se da en otras empresas.

they give them not only a [intercultural] seminar but two, one on arrival, with explanations about Mexico, and a second seminar, specifically for employees [...] and even families are invited, and that is something that does not happen in other companies.

Bolten 2015: 269 Al igual que las culturas (por ejemplo, grupos, empresas, grupos étnicos,

Just as cultures (e.g., groups, companies, ethnic groups, nations) are composed of a



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naciones) se componen de una gran variedad de colectivos (en el sentido de subculturas) que pueden describirse como "policolectivos", sus actores se caracterizan por una multicolectividad más o menos pronunciada. Al mismo tiempo, pertenecen a mundos o "culturas" (familias, grupos, étnicos, religiones, profesiones, communities virtuales, etc.) muy distintos (y espacialmente muy diseminados). El factor decisivo es que entre los actores y sus mundos existen relaciones recíprocas que difieren en su intensidad, pero que en todo caso actúan constituyendo una identidad.

great variety of collectives (in the sense of subcultures) that can be described as "poly-collectives", their agents are characterized by a multi-collectivity more or less pronounced. At the same time, they belong to worlds or "cultures" (families, groups, ethnic groups, religions, professions, virtual communities, etc.) that are very distinct (and spatially very widespread). The decisive factor is that between the actors and their worlds there are reciprocal relations that differ in their intensity, but that in any case act as constituting an identity.

Interview 1A:43 Damit sie dort nicht zusammenbrechen. Quasi Erfolg haben, oder beziehungsweise nicht zu viel falsch machen. Nicht so viel kaputt machen.

do not suffer a collapse while there. In a sense, to be successful, or perhaps that they do not fail as much in something. That they do not destroy that much.

Interview 3: 29 aprovechar a las fortalezas que tiene cada uno y (...) entonces explotarlas para que el trabajo se lleve a cabo y logren todo lo que tienen que lograr.

take advantage of the strengths that each one has and (…) then exploit them so that the work is carried out and everyone can achieve all that they have to achieve.

El Financiero, 2016 Uno, es la lealtad y más cuando encuentran un ambiente confiable, y segundo, el interés de aprender.

One is loyalty and more when they find a reliable environment and second, the interest to learn.



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IACCM COUNCIL MEMBERS

Prof. Marie-Thérèse Claes (President IACCM) Louvain School of Management/Belgium

Univ. Prof. Dr. Gerhard Fink (Vice-president IACCM) Vienna University of Economics and Business (WU Wien)/Austria

Prof. Yochanan Altman Middlesex University London/UK Leadership, Work and Organisations

Prof. Roger Bell ESADE/Spain Department of People Management and Organisation



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Prof. Chiara Cannavale Università degli Studi di Napoli Parthenope/Italy Dipartimento di studi aziendali e quantitativi

Barbara Covarrubias Venegas President of SIETAR Austria & University of Applied Sciences for Management and Communication/Austria Institute for Human Resources & Organisation

Dr. Daniel Dauber University Warwick/UK Centre for Applied Linguistics

Carolin Debray University of Warwick/UK Centre for Applied Linguistics,



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Prof. Parissa Haghirian Sophia University in Tokyo/Japan Faculty of Liberal Arts

Dr. Fabrizio Maimone Università di Roma LUMSA/Italy Dipartimento Scienze economiche, politiche e delle lingue moderne

Prof. Slawomir Magala Rotterdam School of Management/Netherlands Department of Organisation and Personnel Management

Prof. Wolfgang Mayrhofer Vienna University of Economics and Business (WU Wien)/Austria Interdisciplinary Institute of Management and Organisational Behaviour


https://www.google.at/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiEqd7f6YfUAhVkLsAKHY-ODrQQjRwIBw&url=http://www.haghirian.com/&psig=AFQjCNG0PiJ9x6ns9CfrBkDKHAm_h4kxjg&ust=1495691116929357


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Prof. Brendan McSweeney Royal Holloway, University of London/UK

Prof. Snejina Michailova University of Auckland Business School/New Zealand Faculty of Business and Economics

Dr. Katharina Pernkopf Vienna University of Economics and Business (WU Wien)/Austria Interdisciplinary Institute of Management and Organisational Behaviour



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LIST OF REVIEWERS

The contribution made by reviewers is essential to the quality of a congress and the integrity of scientific work more generally. We depend crucially on your competence and dedication in evaluating submissions and your constructive comments through peer review provides invaluable assistance in supporting authors to make their work the best that it can be. Your willingness and generosity in providing timely reviews have also helped the congress provide reasonable turnaround times for manuscripts, and does a great service to the work of the authors.

The editors would like to thank all those who have generously devoted their time to this important task for the IACCM Academic Track at this years´ 2017 SIETAR Europa Congress. The following individuals have reviewed submissions for IACCM:

Institution Country

Abbas Randa Western Galilee College and The Arab Academic College Israel

Andino-Dorato Jimena SIETAR Brazil Norway

Bäckert Lilina Tinoco Swissinfo Spain

Barmeyer Christoph Universität Passau Romania

Barros Prof. Mariana de Oliveira SIETAR BRASIL Romania

Bell Prof.Roger Matthew ESADE Barcelona Slovenia

Bibu Nicolae West University of Timisoara Italy

Binder Nadine Bremen International Graduate School of Social Sciences (BIGSSS) Ireland

Brancu Laura Florina West University of Timisoara Finland

Brändle-Amolo Yvonne Apiyo NGO 1+1=3 Belgium

Brown Janet Carinthia University of Applied Sciences Ireland

Buko, Svitlana Prof. Precedent Academics Australia

Cannavale Chiara University Parthenope Poland

Catibusic Bronagh Dublin City University Netherlands

Chang Shao-chi National Cheng Kung University Germany

Chydenius Tarja Laurea University of Applied Sciences Slovakia

Claes Marie-Therese Louvain School of Management Covarrubias Venegas Barbara SIETAR Austria/SIETAR Europa Austria

Dalikeni Colletta Dundalk Institute of Technology Daly Amanda Griffith University Netherlands

Darren Chong Warsaw School of Economics United Kingdom

de Waal Monika Unique Sources/Erasmus University Rotterdam Poland

Demangeat Isabelle fit for culture consultancy Iceland

Dobos Ágota Corvinus University of Budapest Germany

Douglas Grant IESEG School of Management Japan

Engel Anna Maria Universität Osnabrück Germany

Erradi Noureddine IFA Belgium

Eva Gaborikova Prof. Flexi learn,s.r.o.



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Fabrizio Maimone Prof. LUMSA Italy

Fink Gerhard WU Vienna Austria

Fokken Sandra New Zealand

Franssens Jacqueline Culture at Work | Lean Onboarden Germany

Gałczyński Mariusz Florida International University Poland

Greenaway Thomas WIlliam University Of Warwick Poland

Guske Iris Kempten School of Translation & Interpreting Studies Germany

Haghirian Parissa Sophia University Germany

Heere Carolin Osnabrueck University United Kingdom

Kollinger Iris WU Wien Austria

Jacquemin Thibault Resultance Slovakia

Jozsef Poor Prof. Austria

KAPARELIOTIS ILIAS DEREE-THE AMERICAN COLLEGE OF GREECE Austria

Karabag Atila Technische Hochschule Nürnberg Georg Simon Ohm Spain

Knappitsch Eithne Carinthia University of Applied Sciences France

Kviatek Beata Hanze University AS Brazil

Lefringhausen Katharina Warwick University Germany

León-Darder Fidel Universitat de València Belgium

Lindemann Anke non Israel

Magala Slawomir (Slawek) Erasmus University Rotterdam Jagiellonian University Cracow Greece

Maimone Fabrizio LUMSA University Slovakia

MARTEL Kerstin InterAct! Malaysia

Chrancokova Dr. Institute of Forecasting, Slovak Academy of Science

Mirza-Grisco Diana Independent Moberg Pia Japco Namazie Pari The Simorgh Austria

Oterova Andrea Consultant Austria

Perez Encinas Adriana Universidad Autónoma de Madrid Spain

Pitonak Michal National Institute of Mental Health Raffaelli-Nascimento Roberta Transition Coaching Roemer Ann Utah State University Scheible Daniel H. Rhine-Waal University Germany

Schumacher Svenja K. University of Osnabrueck Shakir Farah Yasmine IESE Business School Spain

Simons George GSI Sirichand Kavita Loughborough University UK

Steger Thomas University of Regensburg Germany

Thompson Livingstone Living Cultural Solutions Ltd, www.culturalsolutions.ie

Voutsina Katerina The American College of Greece Greece

Weibl Gabriel Comenius University, Bratislava Slovakia

Yazici Senem Hochschule Niederrhein



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www.sietareu.org/seucongress2017


Documents

CONGRESS PROCEEDINGS 21st Century Waves of Changearchives.sietareu.org/images/stories/congress2017... · IACCM - Setting up an international network of experts in the field of cross