MGMT3101 Lecture Notes - Lecture 3: Individualism, Guanxi, Strategic Management
18 Jun 2019
School
Department
Course
Professor
Document Summary
Mgmt3101 lecture three - strategizing within institutional and cultural environments. Strategy 101: think about strategy as a game: environmental conditions: game design, rules, etc, resources & capabilities: game pieces, player ability. Institutions: what is an institution, humanly devised constraints that structure human interaction (north, regulatory, normative, and cognitive pillars and activities that provide stability and meaning to social behaviour (scott, dimensions of institutions. Cognitive: tightness of norms level refers to the extent to which individual"s behaviour is constrained by norms, key function of institutions: reducing uncertainty, exchanges buyer/supplier, alliance partner, firm/regulator, relational contraction. Informal, relationship-based, personalised exchanges: arm"s length transaction, formal, rule-based, impersonal exchange with third party enforcement, guanxi and blat vs. personal networking in west. Informal relationship based personalised exchange: formal, rule-based, impersonal exchange. If formal institutions are weak, and informal institutions replace them, if your strategy uses formal institutions it can be limited, more strategy for networking. Builds long-lasting relationships involves activities outside work.
