structural properties, work practices, and control in asian businesses: some evidence from singapore...

Structural Properties, Work Practices, and

Control in Asian Businesses: Some Evidence

from Singapore and Malaysia

Cecil Pearson 1,2 and Lanny Entrekin 1

This study explored the level of adoption of Western style management practices

in two South East Asian communities. A sam ple of 203 manage rs from

Malaysian and Singaporean organizations responded to a survey that was

designed to capture demographic as well as organizational data in terms of

structural dimensions, and employed work setting processes and practice s. A

strong inference of the findings is that Western assumptions about managerial

ideology were not fully endorse d in the study organizations. These findings,

which are discussed, were interpreted in conjunction with contributions from

Asian manage rs. The approach outlined in this paper demonstrates the value

of qualitative and quantitative procedures for inte rpreting the results of

cross-cultural studies.

K EY WOR DS: cross-cultural ; inte rdepe nde nce ; coordination; structuralproperties.

INTRODUCTION

The globalization of contemporary busine ss has initiate d a new set of

manage ment challe nges. A paradox for many foreign-base d multinational

corporations is that the ir survival is depende nt upon a strong American

presence , but for more than the past decade the ir North American opera-

tions have been linked with low profitability (Rosenzweig, 1994) . Many

companie s that are operating in Western environme nts have endeavored

to emulate the success of Japane se corporations in the competitive arena

(Amante , 1993; Bartle tt & Ghoshal, 1988; Johnson, 1988) , but the re is

growing evide nce that questions the unive rsal transfe rence of managerial

ideas and practice s across the national borders (Cutcher-Gershenfeld e t

Hum an Relations, Vol. 51, No. 10, 1998

1285

0018-7267/98/1000-1285 $15.00/1 Ó 1998 The Tavistock Institute

1Murdoch University, Comme rce Programme, Murdoch, Western Australia.2Requests for reprints should be addressed to Cecil Pearson, Murdoch Unive rsity, Commerce

Programme , Murdoch, Western Australia 6150.

al., 1994; Kirkbride & Tang, 1994; Safizade h, 1991) . Cook and Herche

(1994) have advance d that a better understanding of consume rs and com-

petitors in a global setting might be achieved by the establishme nt of as-

sessment centers that would select, train, and develop future multinational

manage rs for the challe nge s of dynam ic, inte nse ly competitive marke t-

place s. However, the use of assessment centers has been restricted to West-

ern Europe and to a limited extent the United State s. Recognition that

organizational success in a global village will be enhance d by unde rstanding

how to manage in more wide ly culturally diverse work settings has recently

been demonstrate d by a great deal of relevant cultural research in a varie ty

of geographical locations (Nicholson, Graf, Hemmasi, & Widdison, 1993;

Okechuku, 1994; Ralston, Gustafson, Elass, Cheung, & Terpstra, 1992) .

There is growing awareness that a consequence of the increasing comple xity

of globalization is the need to more fully understand work relevant features

of cultural dive rsity (Hostager, Al-Khatib, & Dwyer, 1995; Huo & Steers,

1993) . This is becoming quite appare nt to Western manage rs in South East

Asian (SEA) booming economies. Success has been attribute d to Asian

value s of hard work, thrift, and family dominance ; often referred to as Con-

fucian dynamism (Hickson & Pugh, 1995; Shaw, Kirkbride , Fisher, & Tang,

1995) . It would appear that a major emerging challe nge for SEA institu-

tions is how to create workplace settings that will maintain and integrate

these important values with human resources practices of technologically

advance d Western-base d competitors.

This study explored the extent of transfe rence of Western manageme nt

principle s in a study with Malaysian and Singapore an organizations. Al-

though world leaders, military strategists, and business executive s have been

exposed to Sun Tzu’s Art of War, which has left an inde lible impression on

classical Chine se military strategy, and has been systematically studie d in

Japanese manage ment and busine ss (Chen, 1995), managers in the interna-

tional busine ss arena are frequently oblige d to rely on strategie s and practice s

that are unde rpinned by Western theoretical perspective s. Generally, the or-

ganizational behavior/manage ment literature presents Western concepts. Se l-

dom have there been prescriptions of SEA institutions, for initially these

organizations were isolated from the Western community. Even when these

SEA-based corporations have entered the international arena, they have

shown a reluctance to disclose the ir operational practice s. However, a greater

understanding about the culturally specific management policie s and proce-

dure s of SEA organizations that appe ar to be embedde d in Confucian

thought, or the extent to which they have adopte d Western manageme nt

principle s is beginning to emerge from the extensive cross-cultural research

that is being undertaken (Huo & Steers, 1993; Kivela & Go, 1996; Lau,

1995). A primary aim of this study is to contribute to this knowledge by de-

1286 Pears on and Entrekin

termining the leve l of comparability of perceived business practice s in Ma-

laysian and Singapore an institutions with Western style management.

WESTERN ASSUMPTIONS

The impact of globalization on contemporary business has been reflected

in Western organizational prope rties and work practice s. This feature is shown

in Table I, which broadly depicts the shifts in modern organizations from one

theoretical perspective to another in the quest to identify the qualitie s of an

effective enterprise . For instance , the focus on manageme nt, which has been

identified as an important determinant of organizational success, was initially

attribute d to the ideas of Fayol, Urwick, and Taylor, and more recently

Drucker, who is perhaps the best known contemporary thinker and writer of

manage ment. Weber, who sought to describe the ideal organization, provide d

the structure for others who presented dimensions of size, centralization, for-

malization, and specialization, their associations, and links to control and task

coordination. Advance s in technology and greater environme ntal comple xity

Table I. Modern Organizational Paradigms

Dominant focus Subthemes Contributors

Manage ment Functional manage mentPrinciples of managemen t

Administrative proceduresEfficiency/effectiveness

FayolTaylor

UrwickDrucker

Structure Centralization/formalizationContingency viewpoint

Analyzability/variabilityWorkflow/line control

Webe rWoodward

PerrowPugh, Hickson, & Hinings

Environment Organic/me chanisticDifferentiation & control

CoordinationSocial systems

Burns & StalkerLawrence & Lorsch

ThompsonBamford & Emery

People MotivationParticipation

Direction & controlSatisfaction/productivity

MayoLikert

McGre gorPorter & Lawler

Quality andcustomers

Quality assuranceBenchmarking

CultureTotal quality management/empowe rment

DemingJuran

Peters & WatermanKanter

Internationalcompetitiveness

GlobalizationTransnational capabilities

Cultural contextsCompetitive advantage

OhmaeBartlett & Ghoshal

RonenPorter

Culture, diversity,values, and

beliefs

Cultural sensitivityCultural diversity manage ment

Cross-cultural manage mentWork goals and values

Racial diversity

AdlerTrompenaars

HofstedeEngland

Thomas

Prop erties of Asian Businesses 1287

required an improved understanding about the relationships between organi-

zations, structures, and effectiveness, which led to landmark contributions by

Woodward, Perrow, Thompson, and Hofstede. A continual quest for organ-

izational effectiveness is demonstrate d by the prolife ration of theory develop-

ment and studies (throughout the 1960s and for some two decades) that

sought to determine consequences of work motivation, task design, commit-

ment, and culture .

Various factors have shape d contemporary Western organizatio nal

properties. In the relative ly individualistic society of North America, struc-

tural integration has been addressed by mechanisms of centralization, for-

malization, and socialization to coordinate task role s within work units or

departments. Operational processes employed to transfe r inputs to outputs

were broadly described by Perrow (1967) in terms of task variability and

analyzability. In Perrow’s framework, tasks with few exceptions and high

analyzability (i.e ., routine jobs) would be best coordinate d by rules, policie s,

and procedure s (formalization) , and centralize d decision making. Con-

versely, for less well-de fined jobs with many exceptions (i.e ., nonroutine

jobs) , control and coordination would be associate d with greater structural

flexibility (empowerment, group judgments). Thompson (1967) defined in-

terdependence between workers in terms of three workflows—poole d, se-

que ntial, and reciprocal. In Thompson’s framework, pooled (inde pendent)

and sequential workflows would be more effectively achie ved with highly

standardize d procedure s and the vertical hierarchy, while reciprocal inter-

depende nce would be associated with more personal modes (e.g., integra-

tors , group me e tings.) Although Thompson’s mod e l has not be e n

extensive ly evaluate d, a study by Van de Ven, Delbecq, and Koenig (1976)

provide d some support for these assumptions. Over time, this emphasis on

structure or behavior has significantly underpinne d manage rial decision

making in terms of what marke ts to enter, the technology to employ, op-

erational practices to endorse , and how to organize the enterprise (Pas-

more , 1988) .

Attempts in the 1980s to mimic the practice s of successful Japanese or-

ganizations had two major consequences. First, gaining profitability through

restructuring and quality led to downsizing initiative s and the sweeping qual-

ity revolution. However, by the 1990s, a second outcome was the growing

awareness that successful businesses require understanding of customer ex-

pectations in a culturally diverse landscape . Increasing globalization, the in-

te nsity of busine ss competitive ness, the relative ease of transfe rence of

organizational members across national boundaries, and the growth of mul-

ticulturalism has stimulated a focus on the salience and importance of cross-

cultural differences in work settings (Millike n & Martins, 1996; Nemetz &

Christensen, 1996). Although organization and coordination has always im-


pacted such dynamic processes as communication, teamwork, power sharing,

and a myriad of human resource practices, the complexity of these issues has

been exacerbate d on two fronts: initially, by the manife station of the hetero-

geneous workplace at the indige nous leve l (gende r, age , education) ; and sec-

ondly, more recently, at the cultural leve l with the promine nce of ethnic

dive rsity matters in organizational life . For instance , some major U.S. teach-

ing hospitals now include in their curriculum programs that consider unique

sets of be lie fs, values, language biases, behavioral nuances, and expectations

of foreign nurses (Martin, Wimberly, & O’Keefe, 1994). As organizations in-

creasingly ope rate in multinational and multicultural contexts, they are ex-

posed to great opportunitie s as well as enormous challenge s to impleme nt

strategies and human resource practices that comprehensive ly addre ss such

feature s as cultural affinitie s, member discipline and rewards, consumer

tastes, regional values, political factors, and legal requirements of the corpo-

ration’s inte rnal and external environme nts.

A major concern for Western organizations, striving to become interna-

tional companie s, is how to integrate diverse individual work values. Overall,

the content of Table I presents a broad picture of this transition in the West-

ern world. Spe cifically, it shows that there has been a movement from profit

maximization, through organizational deve lopme nt, which has accelerated

into the most recent paradigm of quality and technology innovation in a

global marke tplace. An important imperative for contemporary firms, and

particularly organizations that intend to operate in the global arena, is the

understanding and integration of the dive rse value systems that are held by

individuals of various ge ographic locations. During the last 20 years, the focus

has been on the capitalistic achie vements of the Asian communitie s. A

number of countrie s in South East Asia have had phenomenal economic suc-

cess (Dolan & Cannings, 1995; Lau, 1995), and often this consequence has

been attribute d to Confucian cultural values (Crovitz, 1995; Hickson & Pugh,

1995; Ralston, Gustafson, Terpstra, & Holt, 1995) and the prevalence of Chi-

nese economic organization in family-owne d firms in commercial and indus-

trial e nterprise s (Huo & Ste ers, 1993; Shaw et al., 1995; Wong, 1985) .

Although there has been limite d empirical research unde rtaken in Chine se

organizat ions, it has been pre sented that the structural dimensions are

strongly influenced by the contextual characteristics of power distance and

collectivism. It is to these features that attention is now focused.

EASTERN FOUNDATIONS

Embedde d in Asian organizations are ethnically associate d ide as of

the world’s oldest extant civilizations. Intertwined with religion and race ,

the teachings of the Chine se philosophe r Confucius, who died in 479 BC,


prevail as pragmatic rules of manage ment and the way that people behave

(Hickson & Pugh, 1995; Hofstede, 1991). For instance , the four key prin-

ciple s of Confucian teaching, which are (1) stability of society based on

une qual relationships (hierarchy of authority) , (2) the family as the foun-

dation of all social organizations (collectivism), (3) virtuous behavior to oth-

ers (humility/se nse of shame), and (4) persistence and perseverance , are

dominant value s that prescribe the ways of perceiving, be lieving, and evalu-

ating (Abdullah, 1994) . Asian organizations are characterized by tall struc-

ture s, a network of extende d family relationsh ips, and a pre dominant

authoritarian style is tolerated because respect is shown for elders, position,

and person. The pragmatic manage ment style of these entities, coupled with

the ir exposure to Western technology and education, has resulted in Asian

manage ment successfully employing some Western manage ment principle s

in their busine sses (Kivela & Go, 1996; Lau, 1995; Okechuku, 1994) .

A feature of the successful, modern Chinese business is the guan xi.

This guan xi is a deep roote d sociocultural phenomenon that enable s the

cultivation of harmonious, hie rarchical social orde r, relationships, and con-

nections through networking (Chen, 1995). This networking is vital in the

Chinese business world, for it enable s these small businesses, that are man-

aged by core family members, to establish extensive contacts with powerful

resource provide rs of othe r Chinese businesses. Moreover, the guan xi con-

tributes to the basic relationship of the traditional Confucian system; to

achieve social harmony, to maintain correct relationships, and the sensitive

issue of face . The guanxi provide s Chine se busine sses with a significant

competitive advantage in the global marke tplace . This naturally occurring

dominant phenomenon, that is rooted in feudal cultural traditions, has con-

siderable influe nce on the social behavior of the Chine se.

Asian busine ss leade rs attach a great deal of importance to the clas-

sical Chinese military strategies (Chen, 1995) . Probably the best known and

most influential on classical thinking in SEA has been The Art of War (Grif-

fith, 1963; Wee, Lee, & Bambang, 1991) , the work of the 500 BC master,

military strategist, Sun Tzu. Throughout history, this text has been used at

military acade mies in China, Korea, and Japan, and since post-Se cond

World War, it has been systematically applie d and studied in Japanese man-

agement and busine ss strategy thinking, as well as in commercial dealings

(The Economist, 1991) . Sun Tzu’s principle s have considerable relevance

for guiding the busine ss activitie s of the SEA community, which views the

marketplace as a battle fie ld. Within Sun Tzu’s, The Art of War is found a

doctrine not only for war, but the principle s for tactical reconnaissance ,

obse rvation, and testing the competition (enemy) are consciously employed

in the contemporary Asian business world, and particularly to militarize

Japane se business practices (Wee et al., 1991) . Colle ctively, this unique cul-


tural heritage and classical foundation has provide d SEA socie ty with prac-

tical guide lines for the design of the ir organizational structure s, the ir mana-

gerial processes, and competitive strategie s.

REVIEW

A major issue facing busine ss leade rs is to determine the design of

tomorrow’s competitive corporation. Mitroff, Mason, and Pearson (1994)

argue that American busine ss has adopte d a series of quick fix and band

aid approache s as responses to competitive environme ntal pressures. This

contention is reflected in Table I. On a broade r front, a great deal of the

world is now in transition from a command to a free enterprise system,

and the failure or success of firms in these socie ties will depend on the

manage ment of labor and capital (Cascio, 1992; Hostage r et al., 1995;

Okechuku, 1994) . Even the economically vibrant economie s of Singapore ,

Malaysia, Thailand, Indone sia, Brunei, and the Philippine s are being threat-

ened. After years of high economic growth, these countrie s are now facing

severe shortage s of skilled labor and manage rs (Kive la & Go, 1996) , yet

in the interests of political, social, and economic stability employme nt must

be maintaine d (Crovitz, 1995) . The enigma for Asian and Western leaders

is to what extent, and in what direction, should they reform the ir institu-

tions. In fact, “do Multinational companie s need to modify the ir domestic

manage ment control systems to suit the national culture of a foreign coun-

try? ” (O’Connor, 1995, p. 383) .

Organizational leade rs might promote any one of three manage rial ap-

proache s. First is the conve rgence viewpoint, which propose s that in indus-

trialize d nations busine ss organizations will be come similar in terms of

structural dimensions and work proce dure s despite cultural differences

(Okechuku & Man, 1991; Ronen, 1986) . Implicit in this assumption is that

in the absence of a substantive , alternative , convincing, theoretical expla-

nation, Western theorie s and practice s that are be lieved to be linke d with

organization effectiveness are like ly to be universally adopte d. Second is

the dive rgence perspective . This approach assumes that organization mem-

bers will retain the ir diverse culturally base d value s, work expectations, and

attitude s, de spite te chnolog ical, e ducation al, and social similar itie s

(Hofstede , 1980) . A third, more recent proposition is an eclectic approach.

A sugge stion has been made (e .g., Dr Mahathir Mohamad, Malaysian

Prime Ministe r) that an organizational hybrid format might be developed

by blending chosen feature s of diffe rent cultural values. However, this al-

ternative , the crossvergence option, has yet to be comprehensive ly assessed

(Ralston, Gustafson, Cheung, & Terpstra, 1993; Ralston, Holt, Terpstra, &

Kai-Che ng, 1997) .


Based on the issues presented, an exploration was unde rtake n to assess

if community forces impacte d organizational practice s. A number of SEA

organizations were targeted to assess the extent to which they employed

manage rial/organizational practices that were base d on Western assump-

tions. This was done by examining ten hypothe ses, that are listed in Table

II, derived from Western theory. The differences between this set of ten

assumptions and the study data provide explanatory power to inform about

the domestic organizational systems.

METHOD

Sample and Procedures

Data were obtaine d from 203 operational manage rs of Singapore an

(n = 112) and Malaysian (n = 91) organizations. Questionnaire s were ad-

ministered in these institutions, by manage rs who were enrolle d in higher

e ducation manage ment classe s (Singapo re, unde rgraduate s; Malaysia,

MBA). Demographic data for the study managers are shown in Table III.

These data reflect the extent of multiculturalism in the study sample . The

sample for the Singapore manage rs (94% Chine se) is consiste nt with the

demographic makeup of that socie ty. In contrast, the Malaysian population,

which has been described as one of the most culturally diverse in the world

has for convenience been identifie d as having three ethnic groups—65%

Malay, 25% Chine se, and 10% Indian. However, the demographic makeup

of Penang, where this data were colle cted, is 70% Chine se, consistent with

the 69% Chine se found in this sample .

The study questionnaire was designed to test responses of earlier class-

room expe riments with MBA students in Singapore and Malaysia. These

MBA candidate s were mainly mature, middle -le ve l manage rs who were

Table II. Study Hypothese s

H1. Task analyzability will be inverse ly re lated with task variability.H2. Centralization will be strongly corre lated with formalization.

H3. Task uncertainty will be inversely related with centralization.H4. Task uncertainty will be inversely linked with formalization.

H5. Independent and sequential workflows will be strongly associated with impersonal,formal integration me chanisms (i.e., formalization, centralization, vertical

communication channels) .H6. Reciprocal and team flows will be positively correlated with personal, informal

coordination systems (e.g., horizontal integrators, scheduled and unscheduledme etings).

H7. Independent and sequential workflows will be inversely associated with taskuncertainty.

H8. Reciprocal and team flows will be linked with task uncertainty.H9. Impersonal coordination me chanisms will be inversely correlated with task

uncertainty.H10. Personal coordination processes will be re lated to task uncertainty.


studying organizational theory and related human resource -manage ment is-

sues. One of the class exercises was for them to form teams, and to evaluate

and develop typical profile s of organizations that ope rated in the ir coun-

tries. These reports provide d a reference point for examining cultural and

other differences with Western organizations.

Table III. Demographic Percentage Valuesa

Singaporean Malaysian

Ge nderMale 47 69

Female 53 31Age (years)

Less than 30 67 2830¯40 27 52

Above 40 6 20Nationality

Chinese 94 69Malay 3 19

Indian 0 10Other 3 2

EducationHigh school 28 20

Trade/vocational 25 12University 47 68

Length of organizational service s (ye ars)Less than 1 26 12

1¯2 29 193¯5 29 27

6¯10 11 24More than 10 5 18

Type of industryService 87 18

Manufacturing 13 82Employe es

Less than 100 36 14100¯500 31 26

More than 500 33 60Levels (CEO to 1st line supervisor)

0¯4 36 465¯9 54 48

10¯15 10 6Ownership

Family 41 21Public/State 43 24

Multinational 16 55Structure

Functional 41 57Product 16 15

Matrix 22 10Hybrid 21 18

aSingaporean, N = 112; Malaysian, N = 91.


The corporate profile s of the Singapore an and Malaysian firms were

consistently distinctive . Generally, it was reporte d that the organizations

were tall hie rarchies, that these entities employe d centralized authoritarian

styles of manage ment, and often there were many rules and regulations

that tended to stifle innovation. Yet, there were also informal and loose

control mechanisms. Usually, there was little evide nce of staff deve lopme nt

and welfare programs. Many of these characteristics contrast sharply with

the attribute s of contemporary Western organizations that are endeavoring

to remain viable and profitable . Given the recognize d growing importance

of the SEA area in the international economic community, it is of consid-

erable interest to unde rstand “how manage ment and organizational phe-

nomena relate to cultural and national characteristics” (Earley & Singh,

1995, p. 329) .

Measures

Two categorie s of variable s were measured. Demographic data of the

manage rs and attribute s of their organizations were obtaine d. The respon-

dents provide d information about gende r, age, nationality, ethnic orienta-

tion, and organizational tenure . Feature s of the organization include d size,

numbe r of hierarchical levels, ope rational focus (manufacturing or service ),

organizational ownership, and the extent of focus on quality. The second

category of variable s were perceptual estimates of workflow processes and

structural properties. Mainly standard Western instrume nts were employed,

and the questionnaire was in English as all responde nts were competent

in that language .

Workflow interdependence was assessed at four levels (inde pende nt, se-

quential, reciprocal, and team), by employing diagrams that were used by

Van de Ven et al. (1976) . Respondents were required to estimate the per-

centage amount of each type of workflow that occurred in the ir workplace .

The five coordination processes that were employe d by the respon-

dents to integrate their colle ctive sets of tasks were measured with a ten-

item instrume nt. This scale was develope d from the theoretical propositions

provide d by March and Simon (1958) , Thompson (1967) , as well as the

suggestion of Van de Ven et al. (1976) . The five assessed modes of coor-

dination were: impersonal, personal vertical, personal horizontal, group

scheduled meetings, and group unscheduled meetings. Each mode was as-

sessed with a two-item, 7-point Likert scale with responses that ranged from

strongly disagre e to strongly agre e (e.g., personal vertical. Much of the time,

line supervisors coordinate the jobs of the ir work unit). Factor analysis,

generally, supporte d the construct validity of the five items, although there

was some overlapping of factors for the two group meeting modes.


Task uncertainty, which refers to the variability and difficulty of the

work being undertaken, has been evaluate d by several methods. Task vari-

ability has been conceptualize d as the numbe r of work exceptions (Perrow,

1967) , while others have considered variability to be associate d with task

repetitiveness. Task difficulty has been measured by the analyzability of the

work, the predictability of the outcome s, as well as the degree of task com-

plexity (Van de Ven et al., 1976) . In this study, task uncertainty was assessed

as the aggregate of task variability and task analyzability with responses on

a six-item, 7-point Likert scale that was adopte d from Withey, Daft, and

Coope r (1983) . Factor analysis confirme d the construct validity of these

two variable s.

Two organizational structural properties were measure d. Centralization

was assessed with the five -item scale deve loped by Hage and Aiken (1967) .

Factor analysis supporte d construct validity of the scale. Formalization was

measure d with the five -item inventory (Hage & Aiken, 1967) . A 7-point

Likert scale was used with responses that range d from very inaccurate to

very accurate . The dimensionality of the scale was confirmed with factor

analysis.

Analys is

Factor analyse s and reliabilitie s were unde rtaken to assess the robustness

of the data. Frequencies, means, and standard deviations of the demographic

data and the perceptual assessments were determined. Correlation analyse s

were performed to assess the extent of association between workflow inte r-

dependence schemes, coordination modes, task uncertainty, and structural

properties. Factor analyse s and reliabilitie s were estimated with SPSS soft-

ware, and the othe r analyse s were undertake n with SAS subroutine s.

RESULTS

Table III presents general biographical information. The highe r propor-

tion of olde r male s in the large r Malaysian organizations is accounte d for by

the focus on manufacturing compared to the predominantly service -orien-

tated entities of Singapore . Ownership and industry type were highly relate d.

Manufacturing industrie s were often public owne d (Singapore , p < 0.001;

Malaysia, p < 0.05) , whereas the service industrie s were mainly private ly

owned (Singapore , p < 0.001; Malaysia, p < 0.001). Evidence that Singapore

was higher on the “technological ladde r,” an economic concept of the evo-

lutionary pattern of development from local market orientation, through la-

bor extensive manufacturing to the human service industry, is give n by the

dominance of service industry and the employment of more contemporary


organization structures. This feature flags the importance of such infrastruc-

tures as education, technology innovation, communication systems, and man-

agement practices. The relative ly shorte r lengths of organizational service,

reporte d by the Singapore an manage rs, reflect the higher job mobility and

low unemployme nt rate of a vibrant economic community.

Table IV present corre lations for the Singapore an and Malaysian data.

Spe cifically, re lationships are presented for the workflows, coordination

mechanisms, task uncertainty, and two structural properties of the work unit.

The two sets of correlations exhibit six main feature s. First, the significant

inverse connections between the workflows (in both sets of corre lations) re-

veal that both the Singapore an and Malaysian manage rs could distinguish

the workflows, in terms of inte rdependence , and that generally, one workflow

tended to be dominant in the work unit. Second, some of the significant cor-

relations between the workflows and the employed coordination mechanisms,

in both the Singapore an and Malaysian data, were consiste nt within the

frameworks of Western organizational theory, but othe rs were not. Notable

exceptions were the absence of significant associations between the adoption

of impersonal and vertical coordination mechanisms with independent and

sequential workflows, and the significant corre lations, for instance in the Ma-

laysian data, of sequential and reciprocal workflows with schedule d and un-

schedule d coordination mechanisms, an une xpected sign. Western literature

would sugge st a particular workflow (e.g., inde pende nt/team) would be

strongly related with an appropriate coordination mode (i.e., impersonal/un-

schedule d group meeting). Third, in both correlation sets, all coordination

modes were strongly related. This too is an une xpected finding as it shows

that the respondents employe d all five coordination mechanisms to integrate

and link toge ther the ir work tasks.

A fourth feature of Table IV, which furthe r confirms that unde r-

standing of the Singapore an and Malaysian organizational processes are

unlike ly to be derived entirely by Western theorie s of organizational man-

agement, is provide d by the relationships between the workflows, task un-

certainty, and the two structural properties. The lack of any significant

relationship between these variable s for the Singapore an data is surprising

as Western typology would claim, for example , that inde pendent workflows

would be strongly inve rsely linked with task uncertainty, yet substantially

relate d to centralization and formalization. On the othe r hand, interde-

pendent-type workflows would be strongly correlate d with task uncertainty,

but inve rsely relate d to centralization and formalization. In contrast, the

four Malaysian corre lations (in this variable group) , that were significant

at the p < 0.01 leve l, are explainable within Western theoretical frame-

works. Spe cifically, the significant inve rse correlation between task uncer-

tainty and a seque ntial workflow is tenable on the basis that a “conveyor


Tab

leIV

.In

terc

orr

ela

tio

ns

for

Sin

ga

po

rea

na

nd

Ma

lays

ian

Ma

na

ge

rsa

Va

ria

ble

b1

23

45

67

89

10

11

12

1.

Ind

ep

en

de

nt

NA

c¯3

3*

**

¯52

**

*¯4

4*

**

01

¯09

¯13

¯19

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belt” type of production lends itse lf to the predicability of knowle dge about

when the inputs will arrive at the worksite . Also, the positive significant

corre lations between the reciprocal and team workflows with task uncer-

tainty are consiste nt within a framework for jobs that have a numbe r of

exce ptions. Higher inte rdepende nce between worke rs is calle d for when

there is limite d knowledge about when the inputs will enter the workplace

and uncertainty will be high. Last, the significant inverse relationship be-

tween the reciprocal workflow and formalization is consiste nt with Western

tenets that this type of work transformation is poorly coordinate d by im-

personal mechanisms. However, these same theoretical foundations do not

lead to an improve ment in unde rstanding the nonsignificant correlations

in this set.

A fifth feature of Table IV is shown in those corre lations between the

five coordination mechanisms, task uncertainty, and the two structural

properties. Several of the significant corre lations between these variable s

are explainable with Western assumptions. For instance , the corre lations of

Table IV are consistent with Western tenets that impersonal mechanisms,

such as rules and regulations, as well as hierarchical referral are the least

suitable for addre ssing task uncertainty, but these mechanisms will inhe r-

ently be strongly associated with centralization and formalization. The ex-

ceptions to Western assumptions are primarily those substantial correlations

between the two group coordination modes with formalization and cen-

tralization. Strong negative relationships were expected. However, a char-

acteristic of Chine se, Singapor ean, and Malaysian organizations is the

manifestation of informal networking to get the job done. Although there

is respect for rule s, regulations, and operating procedures (formalization)

they are inculcate d as “rule s of equity” (e.g., guanxi) in their working re-

lationships and busine ss dynamics. In this arrange ment, the significant cor-

relation between formalization and team coordination modes, although

inconsiste nt with Western assumptions, is explainable .

The final set of corre lations of note in Table IV is those with dimen-

sions of task uncertainty and the two structural prope rties. All of the sig-

nificant relationships are consiste nt with Western assumptions. Include d,

but not reporte d are the significant inverse relationships between task ana-

lyzability and variability (Singapore , r = ¯0.65, p < 0.001; Malaysia, r =

¯0.46, p < 0.001) . However, an inference of the nonsignificant corre lation

between formalization and centralization in the Malaysian data is that other

deep rooted feudal cultural traditions may be ope rating. Overall, the cor-

relations of Table IV demonstrate that while an understanding of the fun-

damental Western theories of manage ment and organizations can help to

suggest why certain relationships prevail, in the Singapore an and Malaysian

data, there is also a strong suggestion that this convergence perspective is


at risk. Enhance ment of knowle dge about Asian organizational phenomena

will require an extension of the Western theorie s and conceptualizations.

Study Panel

The results to this point are only partially predicted by Western or-

ganization theory. The exceptions are inte resting, but do not conform to

any well-docume nted theory. As a final check of our understanding of the

findings, it was decided to undertake a qualitative review of them. To do

this, six high performing, recent graduate s of Murdoch Unive rsity’s MBA

program were assembled as a study pane l for a 3-hour seminar.

The study pane l had pertinent relevant attribute s. Each member had

substantial Asian managerial expe rience . They had suspe nde d their employ-

ment positions for less than 1 year to comple te the MBA program, but

were now about to return to the ir employing organizations. Two of the study

pane l members were employed in Hong Kong, two others were employed

in Malaysia, and the remaining pair were returning to Singapore . All were

of Chinese origin. The purpose of the study was explaine d and the instru-

ments and the results were reviewed. We then asked them to help us un-

de rstand those findings that We stern the ory would not predict. The

members of the study pane l were not as perplexed as the researchers when

the results of Table IV were disclosed.

The study pane l suggests that there is a lot more flexibility and infor-

mality permitted in the tall, mechanistic structures, than might be detected

when using Western instruments. They also confirme d that the Confucian

concept of Wu Lun, an orde red, une qual hierarchy with a central authority

figure , was consiste nt with Chinese values. In fact, the lower (orde red) or-

ganizational member expects more help than can be reciprocate d to higher

me mbers. The se colle ctive ties, which de mand mutual assistance , are

viewed in Asian frameworks as formal relationships, and in Western no-

menclature they are translate d as impersonal. The study pane l also sug-

gested that talle r organizations offered more promotional opportunitie s,

and that in Asia there is a need to create jobs, not reduce them.

With regard to the tall hierarchie s and mechanistic controls, the study

pane l said employees used formal procedures when it suited them and they

circumvented the rule s when it did not. The study pane l said when they

were uncertain about how to deal with a problem, or task, they would first

network to try to find someone who knew how to deal with the issue . This

is because it is far better to solve the proble m and to get the work done

than to push it up the hierarchy and effectively acknowle dge a lack of com-

petence (i.e ., lose face). Evide ntly, this networking among peers and supe-

riors perme ates organization boundarie s easily. The magnitude of the


decision and the risk attached to failure would also influe nce whether em-

ployees used the formal system. If the magnitude of the problem was great

and the cost of a mistake was high, then members would use the formal

system to protect themselves and the organization and acknowle dge the

supe rior knowledge of higher level manage rs to deal with the matter.

DISCUSSION

This study explore d organizational structure s and work practice s in a

numbe r of Malaysian and Singapore an institutions. Three main categories

of results were obtaine d. First, there were expe cted findings (i.e ., consiste nt

with Western managerial ideas and practice s). Second, there were unex-

pected findings in terms of nonsignificant variable relationships where the

Western organization/manag ement lite rature would forecast significant cor-

relations (e.g., independe nt or sequential workflows with centralization or

formalization). Last, there were une xpected significant associations that

were inconsiste nt with the assumptions of Western frameworks. These find-

ings have been broadly summarized in Table V.

The content of Table V reveals the examine d associations are comple x.

For instance , the slightly higher compatibilility for the Western assumptions

with the Singapore data may be an outcome of that republic once being a

British colony. Nevertheless, an infe rence of Table V is that the Western

manage ment principle s were not always directly obse rvable in the study

data. Western organizations are generally designed to accomplish specific

purpose s in the most efficient and effective manner. Organizational struc-

tures, workflows, and control mechanisms are designed to be comple men-

tary to the task and purpose s of the organization. For instance , in recent

ye ars there has been a trend toward flatte r, more organic structure s to

achieve more flexibility, adaptability, and innovation to remain competitive

and profitable in rapidly changing and expanding marke ts. Landmark or-

ganizations like IBM and Eastman Kodak, among others, are a testimony

to this trend. This has usually resulted in fewer levels of hierarchy, more

decentralize d decision making, fewer and more flexible rules and regula-

tions, a greater use of self-managing teams, cross-functional taskforces, and

more horizontal and diagonal communication flows. These are very de lib-

erate and purposive designs to deal with the uncertainty of rapidly changing

and increasingly comple x task environme nts.

In contrast, the data presented here show that Chinese-dominate d or-

ganizations in Singapore and Malaysia have , generally, retaine d talle r more

bureaucratic structures, and presumably the associated mechanistic work-

flows and control mechanisms. The assumptions of Western management

paradigms would suggest that these organizational designs will be inappro-

1300 Pearson and Entrekin

priate in the dynamic growth region of SEA when competing with Western

organizat ions which have unde rgone a transformation/re newal process.

However, there may be a dynamic operating within these organizations that

allows them to accomplish informally what is done by deliberate design in

Western organizations.

The dominance (in the study organizations) of this informal system is

demonstrated with the variable of task uncertainty in Table V. Task uncer-

tainty correlated ne gative ly and significantly (p < 0.001) with variable 5

(impersonal coordination mode) in the Singapore data. Also, task uncer-

tainty correlated ne gative ly and significantly (p < 0.001) with variable 6

Table V. Fit Betwee n Hypothesized and Observed Relationships

Hypo-

thesis Extent of Agreeme nt

H1. Task analyzability will be inversely related with task variability.Strongly supported.

H2. Centralization will be strongly correlated with formalization.Supported in Singapore data.

H3. Task uncertainty will be inversely related with centralization.Strongly supported.

H4. Task uncertainty will be inversely linked with form alization.Strongly supported

H5. Independen t and sequen tial workflows will be strongly associated with impersonal,formal integration mechanism s (i.e., formalization, centralization, vertical

com munication channels).Not supported.

H6. Reciprocal and team flows will be positively correlated with personal, inform alcoordination system s (e.g., horizontal integrators, scheduled and unschedul ed

m eetings).Moderate support with the Singaporean data. Team workflow was strongly

correlated with horizontal and group coordination mechanisms. Weak supportfor the Malaysian data. The observe d significant inverse corre lation between the

reciprocal workflow and the impersonal coordination mechanism, as well as thesubstantial team workflow and scheduled mee ting relationship was hypothesised.

However, the significant inverse re lationship between the reciprocal workflowand scheduled group me eting, as well as the significant team workflow

impersonal coordination me chanism, is contrary to the re lationships that werehypothesized.

H7. Independen t and sequen tial workflows will be inversely associated with taskuncertainty.

Not supported in the Singaporean data. In the Malaysian data, the significantinverse correlation between the sequential workflow and task uncertainty is as

was hypothesized.H8. Reciprocal and team flows will be linked with task uncertainty.

Not supported in the Singaporean data, but strongly supported in the Malaysiandata.

H9. Impersonal coordination mechanism s will be inversely correlated with taskuncertainty.

Strongly supported in the Singaporean data and reasonably supported with theMalaysian data.

H10. Personal co-ordination processes will be related to task uncertainty.Not supported.

Properties of Asian Business 1301

(personal ve rtical mode) in both the Singapore an and Malaysian data.

Western theory would predict such negative corre lations. Yet in both the

Singapore an and Malaysian data none of the expected positive relationships

for task unce rtainty and the personal horizontal or group coordination

modes are obse rved. In othe r words, unde r high task uncertainty, the West-

ern presumption that impersonal coordination modes are inappropriate was

supporte d in the findings, while personal coordination mechanisms are ap-

propriate was not endorse d by the responde nts. Understanding these rela-

tionships, in terms of how the manage rs negotiate d these work practices,

might be enhanced by considering them in a convergence-divergence-cross-

vergence framework.

The convergence , divergence , crossvergence debate is still in a deve l-

opmental stage and has not, to date, had strong empirical underpinning

(Ralston et al., 1997) . The conve rgence perspective relies more on logic

than e mpirical e vide nce. That is, in the abse nce of substantive East-

ern/Asian theorie s of manage ment, Asian organizatio ns will adopt and

adapt Western theorie s and practices of manage ment, due primarily to

Weste rn technologica l and educationa l influences. Conve rgence implie s

that as communitie s industrialize and advance “up the technological lad-

der,” from a manufacturing base to high-te ch service activitie s, with the

accompanying developme nts in education, capital, technology, and othe r

relevant infrastructure s, these nations will be compe lled to employ a com-

mon set of value s and work practice s. This logic tends to ignore the strong

Chinese, extende d family business orientation that is strongly underpinned

by the cultural values of Confucian dynamism. There is partial support for

the convergence pe rspective among the hypothe ses tested, but primarily

from the Singapore data. If one accepts that Singapore is further advance d

on the technological ladde r, as evide nced by 87% of the sample represented

in service industrie s as against 18% for the Malaysian sample , one could

make an argument that conve rgence increases as task complexity increases.

The dive rgence perspective, supporte d by Hofstede (1980) , argue s that

strong cultural value s will prevail over the argume nts in favor of conve r-

gence. This is partially supporte d by the Malaysian data which only partly

supports six of the ten hypothe ses. Furthermore, the Malaysian sample was

much more heavily represented by multinational organizations (55% ) than

the Singapore sample (16% ). One would hypothe size that Western man-

age ment theorie s and practice s would prevail in multinational organiza-

tions. Again, the data from the Malaysian sample does not support this

conclusion.

As note d by Ralston et al. (1993, 1997) , the crossvergence perspective

has yet to be comprehensive ly assessed. The leade rs of the two countrie s

involve d in this study (Dr. Mahathir Mohamad, Prime Ministe r of Malaysia,


and Mr. Goh, Prime Ministe r of Singapore ) have indicate d a strong pref-

erence for preserving Asian cultural value s and only borrowing from the

West that which works in their cultural context or can be adapte d to suit

the ir context. This would appear, from the small amount of literature ad-

dressing this perspective, to represent the crossve rgence viewpoint. Ralston

et al. (1997) argue that crossvergence results in a unique value syste m,

which is an integration of cultural and ideological influences of Western

capitalistic nations. The argume nts supporting the conve rgence-dive rgence

perspective appear to represent unidime nsional views with propone nts ar-

guing for one or the other perspective, depending on the abse nce¯promi-

nence of cultural values. The crossvergence perspective would appe ar to

be more of a multidime nsional viewpoint which accommodate s both cul-

tural and managerial considerations. Given the empirical and qualitative

data examine d in this study, we conclude that a crossvergence perspective

is more strongly supporte d.

CONCLUSIONS

A strong inference of the study findings is that the managerial values

were central to the practiced busine ss/organizational philosophy. It appears

that the unde rlying value s of the study managers influenced their workplace

processes and behaviors. Western instrume nts were employe d to identify

structural dimensions of the work settings and the way in which workflows

were enacted by the manage rs when they performed the ir tasks. Some re-

lationships between the structural properties of their work environme nts

and the mode of inte rdepende nce, as predicted by Western theory, were

obse rved. However, there were also othe r relationships between the work

setting attribute s and the coordination mechanisms that did not close ly fit

the Western assumptions. The demographic data disclose d that most of the

responde nts were ethnic Chine se, and although these manage rs and the ir

organizations have the pote ntial to be influe nced by fore ign (American,

European, Japanese) organizational practices and theories, it seems that

some of the respondent’s value s, and hence the ir workplace behaviors, have

change d (i.e ., conve rgence) more rapidly than othe rs (i.e ., divergence). It

would also appe ar that other unique values had evolved from a combination

of these influe nces, which were assessed as crossvergence. Therefore , these

results show a varie ty of different personal perspective s and the unlike li-

hood of them fitting a single busine ss framework.

The increasing complexity and globalization of contemporary busine ss

enterprise s has compe lled the que stioning of basic assumptions about

American manage rial theories and practice s. On the North American con-

tinent, competitive pressures have forced corporations to adopt new flexible


strategie s and structures as numerous economic, technological, and social

factors have contribute d to concerns about productivity as well as the ef-

ficient and effective manage ment of asse ts and product quality. These are

not necessarily the same salie nt influe nces being expressed in SEA com-

munitie s. During the 1980s, there were increasing endeavors to adopt Japa-

ne se manage me nt te chniques and production me thods to re establish

Europe an and North American manufacturing competitiveness, without

comprehensive ly understanding the cultural differences. More recently, the

explosive growth of the Asian communitie s has focuse d considerable atten-

tion on the relevance of the transference of Western manage rial ideas to

worksettings now characte rized by cultural diversity. Not only is cultural

heterogeneity an issue for firms in SE Asia, but it is also a consequence

of East Europe an countrie s and command economie s, such as China and

Russia, entering the global free enterprise system. Moreove r, the rapid mo-

bility of labor and capital in the global marketplace has made international

human resource manage ment an issue within the American busine ss com-

munity. The reality of a global marke tplace requires people of diffe rent

ethnic and cultural backgrounds to work together. The results of this study

focus attention for the better unde rstanding of the values and heritage that

participants bring to the busine ss operational level in orde r to develop com-

prehensive strategies for inte rnational business.

ACKNOWLEDGMENTS

The authors grate fully acknowle dge the he lpful comments of the

anonymous reviewers on a previous version of this pape r.

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58-72.

BIOGRAPHICAL NOTES

CECIL PEARSON obtained his PhD at the University of Western Australia. Currently he is

employed in the position of Senior Lecturer at Murdoch Unive rsity. Prior to this appointment,he worked for the State Railway for 25 years; first for a decade as a district enginee r, and

later as an executive at the head office.

LANNY ENTRE KIN is Associate Professor of Manage ment at Murdoch University. Prior tothat, he was at the University of Western Australia for 13 years where he was head of the

departme nt and MBA controller. He is the co-author of four books and numerous journalarticles in the manage ment/human resource manage ment area and is a frequent consultant

to the International Labour Organisation.


structural properties, work practices, and control in asian businesses: some evidence from singapore...

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