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ProgramAgenda
1 ... Cross-cultural Impacts of the New Globalism
2 Challenges & Potential for Asian Leaders
3 Developing the Global Competence of Asian Leader
4 About the Project and applied Research Method
http://sinau.me/hcli
Jakarta, Indonesia, July 20th 2011
by Prof. Dr. Hora Tjitra, Zhejiang University
Cross-‐Cultural Leadership of Asian Leaders
in the New Globalism
Abstract
• Led by China, Asia attracts the highest foreign-direct Investment in the world. In addition, recent development shows an increasing international trade and cross-borders investment through the increase of bilateral and multilateral free-trade agreements among the Asian countries (e.g. CAFTA).
• Globalization and increasing cross-border engagements has resulted in organizations having to manage culturally diverse groups, both within the organizations (owners, employees, investors) and outside of them (suppliers, competitors, and customers).
• As pointed out by cross-cultural studies in organizations, cultural differences are not disappearing nor diminishing in global organization practices.
• On the contrary, they seem to be getting more complex, and are posing challenges for organizations to achieve their goals.
Agenda
1 ... Cross-Cultural Impacts of the New Globalism 4
2 Challenges and Potential of Doing Business in Asia for Asian Leaders 11
3Developing the Global Competence of Asian Leaderin Response to the New Globalism
15
... Cross-‐Cultural Impacts of the New Globalism
The world is flat ...
Opportunities
Competition / Threats
Information & Technology
Innovation & Collaboration
Limitation of • Language• Knowledge• Physical
Chinese: adapt to the other counter part more
Development of
• Economy• Knowledge• Language
Chinese: start to take the leading role more
10 years in China · 10 years in
China · 10 years in China · 10 years in
China · 10 years in China
New Way of East-‐West Collaboration
Not Only that Intra-‐Regional-‐Trade within Asian Countries ...
106
REG
ION
AL C
OO
PER
ATION
AN
D IN
TEGR
ATION
14
Southeast Asia has grown rapidly in recent decades. Intricate regional production networks and supply chains have been established in industries such as electronics and cars. This process has resulted in fragmentation of production—the scattering of parts of the production process across different econo-mies—and led the process of regional and global inte-gration. This has stimulated foreign direct investment, deepened trade in intermediate goods, and boosted growth in the region.
Intra-regional trade in parts and components has increased as the pattern of regjional production has become more specialized. FDI flows have gravitated to PRC, especially after the 1997-8 Asian crisis. PRC has become the main assemblly plant for “Factory Asia” and emerged as a significant export for other East and Southeast Asian economies, as well as a base for final goods to the rest of the world.
This level of trade integration exceeds that of North America (about 40 percent), but falls short of
that of the EU (about 75 percent). Across different subregions within Asia, East Asia is the most inte-grated subregion, although labor and monetary/finan-cial integration remain low. For all other subregions, the degree of integration remains low in terms of labor and financial integration.1
Drivers of economic integration
The key drivers of regional economic integration relate to the costs of trading, infrastructure, the com-petitiveness and quality of institutions, and conflict. An analysis of these determinants leads to the following conclusions:
There have been many improvements in the Asian drivers of integration and economic growth in recent years, especially in East Asia. These have contributed substantially to the region’s superior growth performance.
1 Central Asia’s labor markets are a notable exception. They are moderately integrated due to intra-regional migration, especially migration from Central Asia to The Russian Federation.
Asia has experienced an increase in share of intra-regional tradeFigure 2
Source: World Bank World Development Indicators, 2011.Note: Figures refer to total trade (exports plus imports). The intra-regional trade share of region i is defined as IT sharei = (Xii+Mii)/(Xi+Mi), where Xii = exports of region i to region i; Mii = imports of region i from region i; Xi=total exports of region i; and Mi = total imports of region i
“The key drivers of regional economic
integration relate to the costs of trading,
infrastructure, the competitiveness and
quality of institutions, and conflict
... but also Intra-‐FDI-‐Flow within Asian Countries
South–South economic links 71
!.".## Source and destination of outward and inward FDI flows, selected Asian economies, !$$%–!$$&
Notes: See Figure !.".#!.Sources: See Figure !.".#!.
Direction of !ows:
! South to South South to North (and vice versa) South to o!shore "nancial centers (and vice versa)! !
!
! !
!!
!
!
!
!
$3 billion
$0.7 billion
$38 billion
$7 billion
$10 billion
$2 billion $56 billion(Asia-5 to developing Asia)
$71 billion(developing Asia to Asia-7)
$12 billion
$2 billion$69 billion
$44 billion
$0.2 billion
$1 billion
!
!
!
! !
Africa Latin America Developing Asia
North excluding JapanJapan
O!shore "nancial centers
Other South
O!shore "nancial centersCloser Pan-‐Asia Regional Collaboration
9
Domestic Export International Multinational Global/Transnational
Domesticmulticulturalism
making an Impact
Ability required to
negotiate and do business
with foreign distributors.
Must adapt approach and
its products and services to local cultures. Global
cultural diversity
strongly affects external
relationships, especially with potential buyers
and foreign workers.
Localized Structure
reduces need for cross-Cultural
awareness.
Need to manage cultural
diversity inside and outside
the firm. All levels need
cross-cultural management
skill for maximum flexibility.
HIGH
LOW
StrategicImportanceof Culture
... higher need ofintercultural competence
for the Asian Leaders
Flat World East-West East-East
Challenges and Potential of Doing Business in Asia
for Asian Leaders
Ethnocentrism and Culture Relativism
(world-‐wide famous)Hardworking Chinese
Ethnocentrism
“Everybody is hardworking.”
Indonesians Singaporeans
When Chinese come to work in Indonesia:“Indonesians are not hardworking. They are so relaxed!”
When Indonesians go to work in China:“Chinese are really hardworking!(and Indonesians are at normal level)”
When Singaporeans go to work in China:“Chinese are really hardworking!(and Singaporeans are at normal level)”
When Singaporeans come to work in Indonesia:-‐ “Are Indonesians hardworking or relaxed?”
WEAK HALUS
KASAR STRONGOverdone
Overdone
Four Values Quadrant -‐ The double sides of a coin
Who you are depends onWhere You Are!
❖ Achievement Driven
❖ Professionalism
❖ Facilitative Leadership
Singaporean Expatriates in Indonesia
Chinese Expatriates in Indonesia
❖ Strong Drive
❖ Personal Advancement
❖ Systematic Improvement
❖ Country Brand
❖ Internationalism
❖ Master of Planning
Singaporean Expatriates in China
❖ Exposure to Diversity
❖ Warm and Personable
❖ Integrator
Indonesian Expatriates in China
Developing the Global Competence
of Asian Leader in Response to the New Globalism
Andere Länder, andere Sitten.
Allá donde fueres,haz lo que vieres.
À Rome,fais comme les Romains.
郷に入っては郷に従う.
入乡随俗
Lain ladang lain belalang,lain lubuk lain ikannya.
Tolerance?Differences Harmonization?
Heightened Sensitivity?
Is Cross-Culture Adaptation a Universal Value?
17
“I hear and I forget, I see and I remember, I do and I understand.”
Learning is a process whereby the learners study their own acGons and experience in order to improve performance.
While classroom learning focuses on presenta;on of knowledge and skills, ac;on learning focuses on research into acGon taken and knowledge emerges as a result that should lead to the
International Assignment as integral Part of Internationalization Process
• Developing expatriate-profiles and conducting selection
• Preparation of the expatriates and their families (e.g. cultural awareness training, etc.)
• Conceptualization of an escorting system during the assignment (e.g. coaching, mentoring, etc.)
• Return planing and reintegration seminar
• Internal marketing to motivate employee for international assignment
Marketing
Selection
PreparationSupporting
ReintegrationInternational Assignment
10% - 50% of expatriates returning early from their assignment. Expatriates’ difficulties are costly for MNCs, ranging from $250,000 to $1 million. (Eschbach et al., 2001)
Program background:• An applied research and learning program, collaboration project between RheinAhr Campus of
FH Koblenz (Germany) with the School of Psychology, Zhejiang University (China).
• The program is funded by the BMBF as part of the German-Chinese Scientific Year Program.
• Ge8ng to know the culture-‐specific condi=ons of studying and working in China and Germany.
• Defining central competencies necessary for German and Chinese employees to be successful in the foreign job market.
• Defining central competencies necessary for German and Chinese students in the foreign science context.
• Developing cultural sensi=ve assessment procedures.
• Designing intercultural media for assessment and learning.
Main objecGves of the program:
OBJECTIVEImproving communica.on and coopera.on between Chinese and foreign parts & Achieving common understanding on organiza.onal vision and strategy
BACKGROUND- Chinese-European joint venture with main business in high-tech industry, has more than 5000 employees
and an annualized yield of about 4 billion yuan.- The surge capacity from business, intensive industry competition, and ineffective cooperation
and communication between Chinese and foreign staffs became the big challenges to the business development.
EXPECTED RESULT- Understanding organizational situation clearly from different perspectives
- Exploring challenges the organization faced and identifying critical ones- Discovering influencing factors for different challenges
- Developing action plan for the future implementation
Cross-‐Cultural Coaching -‐ Fit for China (18 hrs coaching) • Individualized Assessment and Coaching approach:
... a one-on-one development process formally contracted between a coach and a management-level client to help achieve goals related to professional development and/or business performance (Valerio & Lee, 2005).
Biography &Personality
In-DepthProfilingInterview
Interviewsw. Superiors
around 9 months
Short LectureOverview on China
Coaching discussionCritical Incidents
Behavioral CoachingIntercultural Competence
• Facts and Figures about China
• Short history and recent development of China
• Business and management prac=ces in China & APAC
• Recent cross-‐cultural studies on Chinese consumer behaviors
• 3 hours classroom
• Coaching discussion on case studies and cri=cal incidents in different management areas in China and APAC.
• Coaching discussion on personal experiences in China and APAC in the first month
• 4 * 90 min either f2f or phone or email
• Observa=on on the real culture encounter situa=ons, e.g. mee=ng or daily interac=on in the office and/or private
• Coaching feedback on the observed situa=ons.
• 4 * 90 min either f2f or phone or email
Behavioral CoachingFeedback &
Development Plan
• Coaching feedback on the assessment
• Coaching on the crea=ng development plan
• 90 min in-‐depth interview2*45 min interviews with superiors90 min feedback90 min development plan
Global MBA / EMBA Program
Brief Introduction of Research“Building Global Competence for Asian Leaders”
Background & Objective
• 90-minute in-depth interview with 110 expatriates from Singapore, China and Indonesia and their local coworkers
• All interview data were recorded and fully transcribed in the original language (English or Chinese or Indonesian)
• Interview data were analyzed using the grounded theory approach
Method
• Elaborating the challenges and problem solving strategies of Chinese, Singaporean and Indonesian business leaders in international cooperations.
• Identifying key learning experiences to develop and sustain intercultural sensitivity for Chinese, Singaporean and Indonesian business leaders.
• Creating learning materials for leadership development programs, e.g. case studies, critical incidents, culture assimilator, etc.
• Instigating recommendations of organizational system to support culturally effective leaders.
Qualitative Data Collection in Indonesia and China:110 In-‐Depth Interviews
A series of 90-min In-Depth Interviews will be conducted in China and Indonesia from Nov. 2010 until May 2011 with Chinese, Indonesian and Singaporean business leaders and managers.
In-‐Depth Interviews
in ChinaIn-‐Depth Interviews
in China16
Indonesian Expatriates16
Singaporean Expatriates
11Chinese Co-‐workers
14Chinese Co-‐workers
In-‐Depth Interviews
in IndonesiaIn-‐Depth Interviews
in Indonesia15
Chinese Expatriates8
Singaporean Expatriates
15Indonesian Co-‐workers
15Indonesian Co-‐workers
In China, the respondents are Indonesian and Singaporean expatriates who have been working and living in China for at least one year or more and having leadership experiences; as well as their local Chinese co-workers and counter-parts.
Respectively in Indonesia, the respondents are the Chinese and Singaporean expatriates who are working and living in Indonesia as well as their local Indonesian co-workers and counter-parts.
Organization Type Number
Large Western MNC 16
Large Asian Enterprise 8
SOE Asian 11
SME Asian 23
Others (e.g. SME Western, etc.) 10
Interviewee ProRile -‐ Organization
Interviewee ProRile -‐ Job Position
Type
Job TitleJob TitleJob TitleJob Title
TotalTypeBusiness Owner /
Entrepreneur
Top / Senior Manager (incl. President, GM,
VP, Director, etc.)Manager Others
Total
CN expatriates in ID 0 8 6 1 15
ID co-worker with CN expatriates 0 1 9 5 15
SG expatriates in ID 1 3 2 2 8
ID co-worker with SG expatriates 1 7 5 2 15
SG expatriates in CN 1 10 8 0 19
CN co-worker with SG expatriates 0 2 8 1 11
ID expatriates in CN 5 5 6 0 16
CN co-worker with ID expatriates 0 1 7 3 11
Total 8 37 51 14 110
Data Analysis: Grounded Theory -‐ Framework of Study
Interview 1
Interview 2
Preparation: minimizing pre-conception
Theoretical Sampling
In-Depth Interview
Analysis: comparison & sensitizing concepts
Memoing: theorization & integration
Theoretical Outline
Sorting: conceptual sorting of memos
Report & Writing
Research Objectives and Questions
Agreement Disagreement
Exception Explanation
Better Understanding
Grounded Theory Analysis supported with Atlas.ti QDA software
Professional BackgroundDr. Tjitra has performed interna4onal management consultancy, training, assessment, coaching and research in Asia and Europe. His working areas are focused on intercultural management as well as human resource, organiza4onal and strategic development.Prior coming to China, he used to live and work in Germany for fourteen years and was responsible for the global diversity as well as Asian business and management development prac4ces of leading HR consul4ng companies in Germany. In addi4on to his consul4ng works, he held a posi4on as associate professor for applied psychology at the Zhejiang University (China).
Educa.on and Professional Qualifica.onDr.-‐Phil. in cross-‐cultural psychology and strategic management from the University of Regensburg (Germany)Dipl.-‐psych. in organiza4onal behavior and HR management from the Technical University of Braunschweig (Germany)Cer4fica4on in Hogan Assessment System (China/US), Strategic Management from McKinsey&Co (Italy/Germany) and HR Management from INSEAD (Singapore/France)
Language and other qualifica.onHe is fluent in Indonesian, German, English, and can communicate in Chinese and is a member of the Interna4onal Academy for Intercultural Research and Interna4onal Associa4on for Cross-‐Cultural Psychology.
References / Sample ClientsInterna4onal project experiences for top and middle management at the global and na4onal level in over ten countries in Europe and Asia. SAP, Saint-‐Gobain, Barco, Ameco Beijing, SCHOTT, Siemens, BASF, DHL, Telkom Indonesia, etc.
• Intercultural Qualification, Training and Consulting
• Executive Assessment and Coaching
• Talent Development and Management
• Strategic Change and Organizational Development
Prof. Dr. Hora Tjitra
Research Partners:
Funding Partner:
Zhejiang University
Chinawww.zju.edu.cn
Zhejiang University of Technology
Chinawww.zjut.edu.cn
Atma Jaya Catholic University
Indonesiawww.atmajaya.ac.id
Human Capital Leadership Institute
Singaporewww.smu.edu.sgHora Tjitra Hana Panggabean Juliana Murniati Quan HE Daisy ZHENG
Chaohui ZHANG
Teng SHENTUJia ZHOU
Xiaojuan WANG
Dan ZHAO
Xixie ZHANGSebastian Partogi Yuanbo LIU Tayyibah Mushtaq Anggita Hotna Panjaitan
Yang WANG
Thank You!Contact us via …
E-Mail: [email protected]: twitter@htjitraWebsite: http://sinau.me/hcli