Presented by Di Wu

1. Globalization Barbara Parker and Stewart Clegg The SAGE handbook of organizational study Chapter 2.9 Presented by Di Wu

2. Introduction of authors • Barbara Parker • Professor in Mangement, Albers School of Business and Economics, Seattle University • globalization and international management • cross-sector partnerships • strategic management of diversity • joint venture management • student learning outcomes • Stewart Clegg • Professor, School of Management, University of Technology Sydney • Organisation and Management Theory, Power, Theory, and Projects

3. First glance at Globalization • Government Advertisement • Made in China and Made with the world

4. Introduction • The world are moving toward a single, highly integrated system • Organizations contributed to, and were increasingly affected by, global shifts in • Political activities • Industries • Culture • Technology • The natural environment • Economics

5. Globalization Topics • Research on globalization tackles disparate topics • Economics: focus on prime movers analyses singular sources shaping globalization • Communication and transportation technologies • Increasing numbers of joint ventures • The share of assets • Culture factors

6. Three main approach • Analysis a particular global sphere (Economics) (Stiglitz, 2003; Bhagwati, 2004) • Examines interconnections among two or more global spheres. (Castells,1998; Giddens, 1999) • Cross disciplinary and organizational boundaries. (Osland,2003)

7. Definitions of Globalization • Global and international are synonyms. (management scholar perspective) • Globalization is a process. (Held et al. 1999; Parker 2005) • Globalization characterized by: • Growing worldwide interconnections • Rapid and discontinuous change

8. Research on Globalization • International business • IB Research emerged as a separate field only in 1965 while international business began centuries ago. (Wright and Ricks 1994) • At the beginning, IB research excluded other disciplines such as economic development, foreign trade, international monetary system, foreign legal ,political, and economic and social environment. • Actually, IB research is borrowing theories from other disciplines • Debate: IB research should narrow the focus to enterprise or expand to examine the global business

9. Research on Globalization • Sociology • Focus is broader than IB: tendencies to a worldwide reach, impact, or connectedness of social phenomena or to a world-encompassing awareness among social actors • A number of features develop from the 1970 onwards: • Political administrations • New international division of labour • New international financial system • More complex notions of personal identity

10. Global Interconnections • Nature Environment • Defined to include “the oceans, the sea beds, the atmosphere, space, Antarctica, the planet’s biodiversity, as well as the Earth’s electromagnetic spectrum (Henderson, 1999:24) • Two opposed perspectives on environmental preservation: • A future “boom” leading to unprecedented prosperity • Economic development generates technologies to address environmental problems • Global warming, species reduction, and global disease as harbingers of “doom” in an environmentally impoverished future • Technology is part of the environmental problem rather than its solution

11. Global Interconnections • Global Economics • Economic globalization: trade, foreign direct investment, and capital. • World trade has grown to about 25% of world GDP as compared to 10% about 30 years ago (Govindarajan and Gupta 2000) • FDI increasingly moves between developing economies and from them to advanced economies as compared to they moved mostly between advanced economies (Mathews 2002; Aykut et al. 2003) • Capital moves freely in the new worldwide market: “hot” money flees or floods lead to more responsibility for central banks • 1992 English Pound Crisis • 1996 Asian Financial Crisis

12. Global Interconnections • Political/Legal Environment • Growing need for global governance system to agree on weights and measures, provide a systematic financial system, develop guidelines for sustainable development, ensure equity, and provide unified responses to development needs, disaster relief and security. • The nation-state is a “robust” form of political organization (Sobel 2003:422) • Trade agreements • OPEC, EU, ASEAN, WTO • Common defense • North American Treaty Organizations • UN global peacekeeping forces

13. Global Interconnections • Technologies • Focus on processes and products with greatest global impact • Today’s technological revolution: Computerization • Processing, micro computers, and networks • Telephone, internet, television, and other media • Just-in-time inventory management, total quality management, and organizational learning • The innovation rate has increased markedly during last 200 years • Rapid speed of information transfer also alters many traditional assumptions about knowledge • Questions about justice

14. Global Interconnections • Culture • There neither is nor could there be a global culture (Smith 1990) • English as business language but also limited • Smile Symbol “” shown in Beijing 2008, also shown in 2010 new year Disneyland. • Explores tensions between existing and emerging global cultures • Hybridization or cross vergence in values (Robertson 1995) • Emphasis on environmental protection, women rights, participation in decision-making in economic and political life, and national cultural shifts toward secular-rational values (Ingelhart and Baker, 2000) • Within-culture homogeneity set against a backdrop of increased worldwide heterogeneity • Dissolving national cultures, economies, and borders.

15. Global Interconnections • Business Activities and Industries • Transnational corporations: biggest 1000 generate 4/5 of world industrial output; • A global industry • Industry convergence: consolidation, alliance building ( Drucker,1999), and value (Porter, 1986) and supply chain management. • Debate on relationship between nations and business • High technologies, national security • Real industry ( products, services)

16. Perspectives on Outcomes from Globalization • The skeptical Thesis • Globalization is simply internationalization by another name (Scholte, 2000) • G3: Europe, Japan, and North America • Being significant regional players emerging in Latin America, East Asian, and elsewhere. • Pursues two themes: • Empirical data and closely define terms • Nations rather than businesses remain the global actors (Veseth 1998) • Critics: the issue is less one of historical comparisons per se, but rather the scale of current interconnections.

17. Perspectives on Outcomes from Globalization • The Hyperglobalist Thesis • Globalization is a new stage of human history through which the power of nation-states is supplanted by business activities (Ohmae, 1995) • Businesses more than nation-states are the primary economic and political units of world society (held et al. 1993) • Two variations: • Self-interest perspective views organizations as dispassionate actors on a global scale working pragmatically in pursuit of economic ends. • More malevolent form, global business primacy is coming about by design and it is not indifferent. • New World Order

18. Perspectives on Outcomes from Globalization • The end-point of the globalization process is not yet decided • Interconnections and interdependence will forge new links and dissolve some existing ones • Proponents of transformation comes from: • Voluntary sector and work through transnational organizations • Business activities • Interconnections among businesses, governments, and members of civil society.

19. Conclusion • Globalization is a complex and confusing process • Challenges the increasing isolation of organization studies, and challenges their dependence on a limited rage of disciplines • Scholars need to reach out: out of their countries, cities and faculties, to other places, other realities, and other disciplines. • Can we engage the phenomena of globalization – globally?

20. Big questions in OT • Why do organizations exist? • Why are firms the same/different? • What causes changes in organizations? • Why do some firms survive and others don’t? • Emerging issue?

21. Thank you!