Doctoral thesis of philosophy culture emergence in international cross cultural management contexts the different roles of values, expectations, and contingencies

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" $ % &' ( # ' & & # & " ) * # + # , DECLARATION I certify that except where due acknowledgement has been made, the work is that of the author alone; the work has not been submitted previously, in whole or in part, to qualify for any other academic award; the content of the thesis is the result of work which has been carried out since the official commencement date of the approved research program; and, any editorial work, paid or unpaid, carried out by a third party is acknowledged Xibao Zhang ii ACKNOWLEDGEMENTS Three years of hard work has culminated into this thesis Even though I have been working in academia for over ten years, it still has been a major undertaking for me However, this would not have been possible were it not for the guidance, support, help, understanding, and encouragement given me by so many people in this arduous and yet very rewarding process Therefore my sincerest thanks are due to all these people who contributed in various ways to the completion of my PhD study I would first like to express my profound appreciation to my supervisors, Professor Bill Martin and Associate Professor Hepu Deng They are the best supervisors that one can possibly have I should thank them not only for their insightful guidance and unrelenting support, but also for their open-mindedness and encouragement They let me “roam” in the “ocean of knowledge” and choose a topic that I am really interested in They watched me from a distance and cheered me on, while at the same time they were always there when I needed guidance and support At times, their supervision could also be very “hands-on”, finding precious time in their busy schedules to read and re-read the various drafts of my thesis, for example, and scrutinizing the minutest details in them When I once summed up my courage to give them a “deadline”, they did not turn on their supervisor status and “talk down” to me; rather they tried very hard to accommodate my needs In the terminology of this thesis, they are very “low-SD” Thank you very much, my teachers! I would also like to thank RMIT University for providing me with the Scholarship that made my PhD program financially possible The people in RDU should be acknowledged as well Every time I contacted them, they always went out of their way to help I would especially like to thank Prue Lamont, who, as I recall, even responded to my email on a Sunday afternoon to reactivate my access card The Chinese and expatriate interviewees involved in this research project also deserve a special thank-you They found time in their busy work schedules to be interviewed, often with urgent business waiting at their heels at the same time And my appreciation should also go to my Chinese postgraduate students who did the transcription of the Chinese interviewees They took some of the tedious work away and lightened up my work load Of course, I would also like to mention my fellow students in the research facility Their iii willingness to share knowledge and information, their eagerness to help, and their friendliness and emotional support, would leave an enduring impression deep in my heart You made me feel that I was not alone, but part of a cohort in various stages of academic grooming Last but not least, I would like to express my appreciation to my family, especially my mother, my wife, and my son I feel guilty to my mother for not being able to fulfill my filial obligations to her But she always told me not to worry about her and encouraged me to strive for excellence in my life My wife has a career of her own But she took care of the family so that I could devote my full time to my studies and my other pursuits Without her understanding and patience, I would not have been able to go through this process My son is always a fountain of joy and inspiration for me Every time I think of him, a sense of warmth comes to my heart, and I keep reminding myself that I must excel in my career, and in life in general, so as to be a good role model for him to look up to There are still people that I have not mentioned, both here in Australia and back in China, who have helped me in my PhD study in one way or another and made a difference My heartfelt thanks go to all of you iv TABLE OF CONTENTS DECLARATION ii ACKNOWLEDGEMENTS .iii TABLE OF CONTENTS v LIST OF FIGURES .xi LIST OF TABLES xii LIST OF CHINESE TERMS xiii LIST OF ABBREVIATIONS xiv LIST OF PUBLICATIONS xv ABSTRACT…… CHAPTER INTRODUCTION 1.1 BACKGROUND 1.2 RESEARCH QUESTIONS 1.3 RESEARCH OBJECTIVES 1.4 SCOPE 1.5 RATIONALE 1.5.1 The Trend of Globalization 1.5.2 The Need for a New Conceptualization of Culture 10 1.5.3 The Need for Conducting Culture Research in the Chinese Context 12 1.6 RESEARCH METHODOLOGY 14 1.7 RESEARCH METHOD 15 1.8 SUMMARY OF FINDINGS 16 1.9 LIMITATIONS OF THE STUDY 17 1.10 ORGANIZATION OF THIS THESIS 17 CHAPTER LITERATURE REVIEW: THE CONCEPTUALIZATION OF CULTURE 19 2.1 TRADITIONAL CONCEPTUALIZATIONS 20 2.1.1 The Concept of Culture 20 2.1.2 Early Scientific Definitions 20 2.2 VALUES-CENTERED DEFINITIONS OF CULTURE IN EARLY MANAGEMENT LITERATURE 23 2.2.1 The Centrality of Values 23 v 2.2.2 Other Elements of Culture 25 2.2.3 Level of Analysis 26 2.3 CULTURE IN INTERNATIONAL CROSS-CULTURAL MANAGEMENT RESEARCH 27 2.3.1 The Cross-National Comparison Stream 28 2.3.2 The Intercultural Interaction Stream 32 2.3.3 The Multiple Cultures Stream 39 2.4 THE EVOLUTION OF MODERN CONCEPTUALIZATIONS OF CULTURE 42 2.4.1 Anthropology 42 2.4.2 Sociology 43 2.5 CONCLUSION 44 CHAPTER TOWARD A DIALECTIC CONCEPTUALIZATION OF CULTURE 45 3.1 RECENT DYNAMICS- AND PROCESS-ORIENTED CONCEPTUALIZATIONS 45 3.1.1 The Ecocultural Framework 45 3.1.2 The Cultural Evolution Theory of the Firm 46 3.1.3 The Dynamic Multi-level Model of Culture 47 3.2 ANCIENT CHINESE PHILOSOPHY 47 3.2.1 Overview of Ancient Chinese Philosophy 47 3.2.2 Key Principles of Ancient Chinese Philosophy 48 3.2.3 Applications of Chinese Philosophy to Management Research 52 3.3 TOWARD A DIALECTIC CONCEPTUALIZATION OF CULTURE 53 3.3.1 Three Fundamental Premises 53 3.3.2 Culture as a Dialectic Process of Interaction and Mutual Transformation 56 3.3.3 Theoretical and Methodological Implications 61 3.4 CONCLUSION 67 CHAPTER RESEARCH METHODOLOGY 68 4.1 AN OVERVIEW OF AVAILABLE RESEARCH VARIETIES 69 4.1.1 Purpose of Research 69 4.1.2 Deductive versus Inductive Research 70 4.1.3 Quantitative versus Qualitative Methodologies 71 4.1.4 Philosophical Orientation 72 4.1.5 Use of Theory 77 4.2 CROSS CULTURAL RESEARCH ISSUES 78 4.2.1 Early Discussions 78 vi 4.2.2 Contemporary Thoughts 79 4.3 THE METHODOLOGICAL APPROACH OF THIS STUDY 82 4.3.1 The Dialectic Processual Perspective on Culture and its Methodological Implications 82 4.3.2 Characterizing the Proposed Research Methodology 84 4.4 CONCLUSION 86 CHAPTER RESEARCH METHOD 87 5.1 THE RESEARCH QUESTIONS 87 5.1.1 The Main Questions 88 5.1.2 The Subsidiary Questions 88 5.2 THE CHOICE OF GROUNDED THEORY 89 5.2.1 The Fit of Grounded Theory as a Research Method for This Study 89 5.2.2 An Overview of Grounded Theory 90 5.2.3 The Roles of Literature and Personal Experience 92 5.3 DATA COLLECTION 94 5.3.1 Semi-Structured Interviews of Chinese and Expatriates 95 5.3.2 Non-Participant Observation in the SW-ICCM Workplace 99 5.3.3 Documentary Data Sources on SW-ICCM Contexts 100 5.4 SAMPLING 100 5.4.1 General Considerations of Sampling for Qualitative-Interpretivist Research 101 5.4.2 Purposeful Sampling and Theoretical Sampling 102 5.4.3 Factors Affecting Sample Size in Qualitative-Interpretivist Research 104 5.4.4 Sampling in This Research 106 5.4.5 Sample Size Considerations in This Study 110 5.5 DATA CODING, ANALYSIS, AND THEORY FORMULATION 111 5.5.1 Data Coding and Analysis 111 5.5.2 Theory Formulation and Presentation 115 5.6 CREDIBILITY AND RELATED ISSUES 117 5.6.1 Credibility Issues in Qualitative-Interpretivist Research 118 5.6.2 Credibility Issues in Grounded Theory Research 121 5.7 ETHICS CONSIDERATIONS 123 5.8 CONCLUSION 123 CHAPTER THEME I: PAY CONFIDENTIALITY 127 6.1 DIFFERENCES IN PAY CONFIDENTIALITY BETWEEN CHINA AND THE vii WEST 127 6.1.1 The Chinese Perspective 127 6.1.2 The Expatriate Perspective 128 6.2 THE PATTERN OF PAY CONFIDENTIALITY IN SW-ICCM CONTEXTS IN CHINA 129 6.2.1 A Hybrid, Split Pattern 129 6.2.2 The Influence of Chinese Culture 131 6.2.3 Concern with Internal and External Equity 132 6.2.4 Awareness, Understanding, and Acceptance 133 6.3 EMERGENCE OF THE PATTERN OF PAY CONFIDENTIALITY IN SW-ICCM CONTEXTS IN CHINA 135 6.3.1 The Chinese Perspective 135 6.3.2 The Expatriate Perspective 137 6.4 A FRAMEWORK OF THE EMERGENCE OF THE PAY CONFIDENTIALITY PATTERN IN SW-ICCM CONTEXTS IN CHINA 140 6.4.1 Further Discussion of the Hybrid, Split Pattern 140 6.4.2 A Proposed Processual Framework 142 6.5 CONCLUSION 144 CHAPTER THEME II: KNOWLEDGE/INFORMATION SHARING 146 7.1 DIFFERENCES IN KNOWLEDGE/INFORMATION SHARING BETWEEN CHINA AND THE WEST 146 7.1.1 In-Groups and Private Knowledge/Information Sharing 146 7.1.2 Face-Saving and Private Knowledge/Information Sharing 151 7.2 THE PATTERN OF KNOWLEDGE/INFORMATION SHARING IN SW-ICCM CONTEXTS IN CHINA 153 7.2.1 Open Sharing and No In-Groups 153 7.2.2 Open Sharing and In-Groups Coexisting 156 7.2.3 The in-between Cases 165 7.3 EMERGENCE OF THE KNOWLEDGE/INFORMATION SHARING PATTERN IN SW-ICCM CONTEXTS IN CHINA 168 7.3.1 Difference Awareness 168 7.3.2 Action Formulation 169 7.3.3 Informant Experiences 170 7.4 A FRAMEWORK OF THE EMERGENCE OF THE KNOWLEDGE/ INFORMATION SHARING PATTERN IN SW-ICCM CONTEXTS IN viii CHINA…… 176 7.4.1 A Static Representation 176 7.4.2 A Processual Representation 178 7.5 CONCLUSION 180 CHAPTER THEME III: STATUS DIFFERENTIATION 182 8.1 DIFFERENCES IN STATUS DIFFERENTIATION BETWEEN CHINA AND THE WEST 183 8.1.1 The Chinese Perspective 183 8.1.2 The Expatriate Perspective 185 8.2 THE PATTERN OF STATUS DIFFERENTIATION IN SW-ICCM CONTEXTS IN CHINA 189 8.2.1 Superior-Subordinate Relationships 189 8.2.2 Peer Relationships 199 8.3 EMERGENCE OF THE STATUS DIFFERENTIATION PATTERN IN SW-ICCM CONTEXTS IN CHINA 201 8.3.1 The General Situation on Status Differentiation 201 8.3.2 Form of Address 204 8.4 A FRAMEWORK OF THE EMERGENCE THE STATUS DIFFERENTIATION PATTERN IN SW-ICCM CONTEXTS IN CHINA 207 8.4.1 A Static Representation 208 8.4.2 A Processual Representation 210 8.5 CONCLUSION 211 CHAPTER FORMAL THEORY 213 9.1 THE FORMAL THEORY 214 9.1.1 A Static Representation 214 9.1.2 A Processual Representation 216 9.2 FURTHER ELABORATIONS 223 9.2.1 Expectations and Contingencies as “Shock Absorbers” 223 9.2.2 Culture as both Stable and Changing 225 9.2.3 The Boundary of Culture 226 9.3 CONCLUSION 230 CHAPTER 10 CONCLUSION 231 10.1 MAIN CONTRIBUTIONS OF THIS STUDY 232 10.1.1 Recapitulation of the Formal Theory 232 10.1.2 Theoretical Contributions 233 ix 10.1.3 Practical Implications 237 10.2 LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH 238 10.2.1 Generalizability 238 10.2.2 The Need for Further Theoretical Refinement 239 10.3 CONCLUDING REMARKS 239 APPENDICES 241 Appendix A A Comparison of the Three Streams of Culture Conceptualization in ICCM 242 Appendix B An Ecological Framework of the Relationships among Variables in Cross-Cultural Psychology 246 Appendix C The Dynamic Multi-Level Model of Culture 247 Appendix D The Yin-Yang Diagram 248 Appendix E The Purposes of Research 249 Appendix F The Deductive Research Process 250 Appendix G A Comparison between Quantitative and Qualitative Research 251 Appendix H Major Paradigms in the Social Sciences 252 Appendix I Different Uses of Theory 253 Appendix J Contribution of Different Sources of Inputs to Theme Development 254 Appendix K Schedule and Questions for the Semi-Structured Interviews 255 Appendix L Interviews, Sampling and Generalizing from Sample to Population 257 Appendix M Types of Qualitative Sampling 258 Appendix N Sample Size in Grounded Theory Articles, 2002-2004 259 Appendix O Consequences of Minimizing and Maximizing Differences in Comparison Groups for Generating Theory 261 Appendix P Profiles of Chinese Interviewees 262 Appendix Q Profiles of Expatriate Interviewees 263 Appendix R Sample Size Considerations of This Research 265 Appendix S The Fit between Purposes of Triangulation and Major Social Science Paradigms 267 REFERENCES 268 x Appendix R Author Sample Size Considerations of This Thesis (Continued) Consideration/View Feature of Thesis Impact on Minimum Sample Size Required Grounded Theory Research Glaser and Strauss (1967); Strauss and Corbin (1998) Sample size is large enough when theoretical saturation occurs, but there is no fixed sample size where this occurs Data were collected until no new or relevant data emerged on a category; category was well developed in terms of its properties and dimensions; relationships among categories were well established and validated N/A Kwortnik (2003); Strauss and Corbin (1998) Scope: Researcher should narrow research focus to reduce sample size required Scope was narrowed to SinoWestern ICCM contexts prior to data collection Reduced minimum sample size required Morse (2000); Sabol (2001) Nature/sensitivity of target phenomena: the more sensitive they are, the more informants required Data collection was anchored on relevant “tangible” workplace themes, not abstract values or beliefs Made data easier to collect Reduced minimum sample size required Morse (2000); Strauss and Corbin (1998) Ability, experience/ knowledge of researcher: the higher the researcher ranks on these attributes, the smaller the sample size required Researcher has practical and academic experience/knowledge in the target area Collected data with more right information Reduced minimum sample size required Thomson (2004) (1) Average sample size of 50 GT studies reviewed: 31; (2) average excluding outlier: 24; (3) sample size where researchers have expertise: 26 interviewees, 30 interviews, non-participant observations; total sample size 34 N/A Note: N/A = not applicable 266 Appendix S Paradigm The Fit 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The crux of Hofstede’s definition of culture is “collective programming of the mind” (1980), or “software of the mind” (1991) that guides people’s behavior According to Hofstede, culture is the. .. thus remain one of the most influential forces in the study of crosscultural management Hofstede (1980b) defined culture as the ? ?the interactive aggregate of common characteristics that influence