In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

Thinking fast and slow.

How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

The four Visegrad states — Poland, the Czech Republic, Slovakia (until 1993 Czechoslovakia) and Hungary — form a compact area between Germany and Austria in the west and the states of the former USSR in the east. They are bounded by the Baltic in the north and the Danube river in the south. They are cut by the Sudeten and Carpathian mountain ranges, which divide Poland off from the other states. Poland is an extension of the North European plain and like the latter is drained by rivers that flow from south to north west — the Oder, the Vlatava and the Elbe, the Vistula and the Bug. The Danube is the great exception, flowing from its source eastward, turning through two 90-degree turns to end up in the Black Sea, forming the barrier and often the political frontier between central Europe and the Balkans. Hungary to the east of the Danube is also an open plain. The region is historically and culturally part of western Europe, but its eastern Marches now represents a vital strategic zone between Germany and the core of the European Union to the west and the Russian zone to the east.

Economy and Society

In this article, we present a springboard perspective to describe the internationalization of emerging market multinational corporations (EM MNEs). EM MNEs use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home. In so doing, they overcome their latecomer disadvantage in the global stage via a series of aggressive, risk-taking measures by aggressively acquiring or buying critical assets from mature MNEs to compensate for their competitive weaknesses. We discuss unique traits that characterize the international expansion of EM MNEs, and the unique motivations that steer them toward internationalization. We further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion, as well as internal and external forces that might compel or facilitate their propulsion into the global scene. We finally explain the risks and remedies associated with this international ‘springboarding’ strategy and highlight major issues meriting further investigation.

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8400275.pdf

International expansion of emerging market enterprises: A springboard perspective

The Study of Man. By Michael Polanyi. Price, $1.75. Pp. 102. University of Chicago Press, 5750 Ellis Ave., Chicago 37, 1959. One subtitle to Polanyi's challenging and fascinating book might be The Evolution and Natural History of Error , for Polanyi is at pains to expunge what he believes to be the false notion contained in the contemporary view of science which treats it as an object and basically impersonal discipline. According to Polanyi not only is this a radical and important error, but it is harmful to the objectives of science itself. Another subtitle could be Farewell to Detachment , for in place of cold objectivity he develops the idea that science is necessarily intensely personal. It is a human endeavor and human point of view which cannot be divorced from nor uprooted out of the human matrix from which it arises and in which it works. For a good while

Personal Knowledge: Towards a Post-Critical Philosophy

Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers

It has long been recognized that indigenous research should be helpful, if not essential, for an adequate understanding of local phenomena. The indigenous approach is consistent with, but extends beyond, the repeated calls for contextualizing management and organization research. However, the challenges of indigenous research are enormous. The purpose of this article is to shed light on these challenges by providing an integrative framework of indigenous research. In particular, I seek to explicate the existing conceptual confusions and flesh out the appropriate methodological procedures for indigenous research on Chinese management. To illustrate the framework, I show the value of yin-yang thinking by developing a cognitive frame, Yin-Yang Balance, to illustrate the unique and novel features of local perspective, including its application to case study method.

/pdf/toward-an-integrative-framework-of-indigenous-research-the-1xqqx20ysx.pdf

Toward an integrative framework of indigenous research: The geocentric implications of Yin-Yang Balance

Integrating the typologies of trust dimensions and trust ideal-types with the new typologies of trust forms and trust bases, I propose a geocentric framework of trust in general and of organizational trust in particular. The typology of trust forms is built on the dimension of spatial strength to address the content of trust building from weak trust to strong trust and on the dimension of temporal stage to address the process of trust building from initial trust to mature trust. The typology of trust bases is built on the dimension of trust sources to address the bases of trust building from depersonalized sources to personalized sources and on the dimension of trust domains to address the bases of trust building from dyad domains to network domains. Together with its three pillars (trust-building mechanisms, leadership and trust-as-choice), the central theme of trust building connects all four trust typologies toward a geocentric framework that integrates and transcends the cultural values of the East and the West. This framework bears a special implication for theorizing about transaction cost and transaction value as a duality for interorganizational alliance.

https://papers.ssrn.com/sol3/Delivery.cfm/more_120.pdf?abstractid=1285260&mirid=1

Toward a Geocentric Framework of Trust: An Application to Organizational Trust

– The author argues and explains that the indigenous Eastern epistemological system of Yin-Yang balancing should be taken as a novel system or frame of thinking, which is deeply rooted in the indigenous Eastern culture traditions, but it has significant global implications, especially in the domain of paradox management. The purpose of this paper is twofold: first, to provide a detailed elaboration of the indigenous Eastern epistemological system of Yin-Yang balancing in contrast to the Western logic systems; and second, to provide a roadmap for applying the system of Yin-Yang balancing to complex issues in the area of management, in general, and paradoxical issues, in particular. , – This is a conceptual paper with a focus on theory-building. , – The author elaborates on the indigenous features of Yin-Yang balancing, in contrast to Aristotle’s formal logic and Hegel’s dialectical logic in the West, to further explore the former’s global implications for the increased attention to research on paradox management. In particular, the author posits that Yin-Yang balancing appears to be better suited for paradox management than the more commonly used logics available in the Western literature. Built upon the Yin-Yang balancing, a practical tool of Duality Map for paradox management is proposed. , – The system of Yin-Yang balancing proposed in this paper has the potential to embrace logical systems available in the West into a geocentric (East-meeting-West) meta-system. This paper further shows how to apply Yin-Yang balancing with the tool of Duality Map to the most salient paradoxes in the domain of management, including value-profit balance (triple bottom lines), exploration-exploitation balance (ambidexterity), cooperation-competition balance (co-opetition), globalization-localization balance (glocalization), institution-agency balance (institutional entrepreneurship), simultaneously positive and negative attitudes toward an entity (ambivalence), and etic-emic balance (geocentric) across all domains of management research. , – The primary challenge for management researchers is to find a way to achieve a geocentric integration between the West and the East at the fundamental level of philosophy. The hope is that the philosophical traditions in the East will facilitate such integration. In particular, the Eastern philosophy of wisdom has a unique capacity to reframe paradox from a negative problem (i.e. a problem of inconsistency to be resolved by dualism in terms of separating opposite elements) to a positive solution (i.e. a solution of completeness or holism to be achieved by duality in terms of partially separating and partially integrating opposite elements).

/pdf/global-implications-of-the-indigenous-epistemological-system-1wu03wlcku.pdf

Global implications of the indigenous epistemological system from the east: How to apply Yin-Yang balancing to paradox management

Despite its increasing importance to the research and practice of organizational management, there is no consensus on how to describe, explain and prescribe network as an organizational form. Based upon the evidence of the Chinese network form within its institutional and cultural contexts, this paper seeks to make three contributions. First, it describes network as a unique form, different from other organizational forms and thus needing a new perspective. Second, it explains network form from a holistic, dynamic and paradoxical perspective by synthesizing economic, social and psychological rationalities. Third, it prescribes the ideal-typical network form by offering a geocentric framework of organizational form which is neither culture-blind (under-embedded) nor culture-bounded (over-embedded).

Peter Ping Li

Papers

Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers

Toward an integrative framework of indigenous research: The geocentric implications of Yin-Yang Balance

Toward a Geocentric Framework of Trust: An Application to Organizational Trust

Global implications of the indigenous epistemological system from the east: How to apply Yin-Yang balancing to paradox management

Towards a Geocentric Framework of Organizational Form: A Holistic, Dynamic and Paradoxical Approach