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The objective of this work is to analyse how conflict gives way to entrepreneurial innovation – before the non-compatibility between Universalism-particularism at the subsidiary of a transnational company located in Mexico. The evidence was obtained by means of a survey, interviews, analysis of electronic mails, minutes of work, project documents and systemic observation. For this research the SPSS and the root cause analysis were required. Conflict derived from non-compatibility between Universalism and Particularism lead to a more accurate decision making process.
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INDEPENDENT JOURNAL OF MANAGEMENT & PRODUCTION (IJM&P)
http://www.ijmp.jor.br v. 8, n. 3, July - September 2017
ISSN: 2236-269X
DOI: 10.14807/ijmp.v8i3.585
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1073
MANAGEMENT OF THE CONFLICT FOR ENTREPRENEURIAL
INNOVATION AT A TRANSNATIONAL COMPANY LOCATED IN
MEXICO
Tania Elena Gonzalez Alvarado
University of Guadalajara, Mexico
E-mail: tania.gonzalez@cucea.udg.mx
José Sánchez Gutiérrez
University of Guadalajara, Mexico
E-mail: jsanchez@cucea.udg.mx
Submission: 05/12/2016
Revision: 12/01/2017
Accept: 10/02/2017
ABSTRACT
The objective of this work is to analyze how conflict gives way to
entrepreneurial innovation as a result of facing the non-compatibility
between universalism-particularism at the subsidiary of a
transnational company located in Mexico. The evidence was
obtained by means of a survey, interviews, analysis of electronic
mails, minutes of work, project documents and systemic observation.
For this research, the SPSS and the root cause analysis were
required. Conflict derived from non-compatibility between
Universalism and Particularism leads to a more accurate decision
making process.
Keywords: value generation or creation; transnational enterprise;
leadership; communication.
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1. INTRODUCTION
This research is an analysis of conflict management in enterprises that have
developed global operating criteria and set subsidiaries in several regions due to
their expansion process, or to their search of cost reduction. Thus, the following
question is presented in this work: how does conflict at the transnational enterprise
located in Mexico make way to the entrepreneurial innovation as a consequence of
universalism-particularism non-compatibility?
This particular case study is for the German exporting and manufacturing
Industry Company. The relevance of this work lies in the creation of a conceptual
framework that makes possible for the transnational enterprise in Mexico to find it
economically appealing to get involved in the community. Therefore, reflecting its
interest in a greater local investment, as compared to the consideration of the
location as a mere exporting launching pad. The proposed research is aligned with
the most recent studies, even more, it is placed at the cutting edge of the current
knowledge (FRITSCH, 2015; GASCA; TORRES, 2014; GUSEYNOV; FADHIL, 2014;
KATZ, 2014; MARÍN; STUBRIN; GIBBONS, 2014; NISTOR, 2014; TRAUTWEIN;
KÖRNER, 2014; ESTEINOU, 2013; POSADA, 2013; PORTA, 2013; ROMERO,
2013; MUÑOZ, 2012; VERA-VASSALLO, 2012). The theoretical framework offers a
model as a response to the research question presented in this area.
1.1. Theoretical framework
The mostly mentioned factor determining the decision of whether to invest
abroad is considered to be defined by transaction costs (GASPAR, 2015; GASCA;
TORRES, 2014; DE LA GARZA, 2014; GRAS, 2013; DUNNING, 1995). However,
the localization decision is barely the principle to achieve more profit. Every
organization that expands internationally faces the challenge of finding its way into a
multicultural environment in which social and economic factors are more complex.
This is so mainly because of the country-specific realities that are not very
comprehensible for foreign officers or senior managers, even for the most
experienced ones.
In the end, these factors have an impact on the transaction costs since they
have an influence on the decision-making efficiency. The impact is usually negative
when the senior manager only applies global rules without creating new strategies
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that would allow him/her to adapt the organization to the new reality. Rigidity in the
decision-making prevents the company from getting greater benefits, i.e. by
increasing transaction costs of the establishment of competence links with the town
or locality (MARTIN; GONZALEZ, 2009; GONZALEZ; STEGGEMANN, 2013).
According to Trompenaars (1998), the efficiency of an economic system
depends on the capacity to define and apply universal rules, while still accepting
exceptions to adapt to particular situations. ‘Universalism’ is the perception that a set
of ideas and practices can be applied everywhere without modifications (T).
‘Universalism’ goes beyond perception, derives in action and normalization of what
“must be” universal. In contrast, ‘particularism’ focuses on the exceptional nature of
current situations (T).
‘Particularism’ is the action and normalization of what “must be” in accordance
to what is specific. Circumstances show the adaptation of ideas and practices. The
universalism-particularism concept is fundamental to the decision making process at
senior levels, by management board officers or senior managers, and furthermore it
is important to the economy, as it can be seen in the works of Durkheim (1912),
Parsons (1951), Levy (1966), Seibel and Jaeger (1970); Seibel (1973), Deal and
Kennedy (1982), Schein and Mader, (1995), Hofstede (1997), Trompenaars and
Hampden (1998), Kras (2001), Robbins (2004), Lange and Manske (2004), Jurado
and Calderón (2006), Gundert and others (2011).
Following the logic of Figure 1, the transaction costs for subsidiaries are
mainly a reflection of what the foreign manager does when becoming involved and
collaborating, either inside or outside the organization. Becoming involved demands
permanent negotiation along the process because in reality the different objectives
and perspectives of each economic agent lead to non-compatibility.
The complementarity comes from facing and transforming realities which are
built toward the inner part of the link (in-group) due to the non-compatibility between
the participating agents. In the case of the subsidiary, the officer is the one that
needs to acknowledge the way in which the relations are intertwined both inside and
outside the subsidiary, addressing the conflicts that may arise as an opportunity to
build new value in the face of complementarity.
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In face of a non-compatibility tensions arise. From tensions conflict comes up.
When the conflict is properly managed, consequently, it can have better results. This
is the main point of this analysis.
There is a wide variety of definitions for ‘conflict’ in the theories that study the
causes and unfolding of conflicts. A wide vision is offered by Domínguez and García
(2003), Silva (2008) and Alexander (1990). In turn, several authors associate the
conflict with a non-compatibility when socializing or establishing links (LEE, 1964;
DEUTSCH, 1973; MELUCCI & MASSOLO, 1991; NICHOLSON, 1992; ROS &
SCHWARTZ, 1995; AHLBRECHT et al., 2009).
Figure 1: Management in face of complementarity because of non- compatibility
issues
Source: Authors’ own elaboration
The conflict unfolding process can be divided into three main stages: 1)
potential conflict, characterized by the existence of non-compatible goals; 2) latent
conflict, initiated by the perception of non-compatible goals among involved groups
or individuals, with their new escalated stages (GLASL, 2004); and 3) manifested
conflict.
As the model presented by figure 2 shows, each stage of the conflict matches
a different management modality. The management of internal conflicts which are
frequently structural conflicts with an impact on the future economic value is a
responsibility of management. Proactive management means getting ahead of the
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conflict with a visionary process of change. Reactive management means that the
conflict can no longer be avoided or ignored, thus turning into a crisis. Proactive or
reactive actions are defined by the director’s culture and by organizational
multicultural background. During the potential phase of a conflict and the transitional
stage of a potential for a latent conflict, in this research we talk about change
management; a proactive visionary process, while in the latent and manifested
conflict stage, we talk about management of a conflict under/in crisis and only as a
reaction in face of what cannot be avoided or ignored.
Figure 2: Conflict Management
Source: Authors’ own elaboration
In the management of conflicts, the senior manager of the subsidiary faces
the challenge of identifying at which level of the scale is the conflict located and what
kind of conflict it is. In this way s/he can properly manage and channel it towards
innovation.
The traditional management implies trying to minimize the destruction of
intellectual capital caused by a non-functional conflict that distorts the phenomenon;
furthermore, it entails trying to compulsively get to a win-lose solution. In other
words, conflict management implies trying to rescue the company own economic
value that has been lost due to the little will of cooperation among the affected
parties, as a result of the lack of administration ability to manage the change
(STEGGEMANN, 2015).
It happens only when there are negative effects for the reaching of financial
aims. Whereas conflict management allows channeling it in a positive way.
Unfortunately, at some companies, it is still a common practice to eliminate conflicts
by making authoritative decisions and not necessarily by channeling them towards
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innovation. But as Ahlbrecht and others (2009) described, conflict cannot be
eliminated or overcome due to its endemic structure.
In the management of change, as a prevention step, the most important thing
is communication that allows managing tensions and avoids the further unfolding of
conflicts and non-functional solutions for the objectives of the organizations. The
management of functional conflicts escalation, especially due to the tensions it
entails, is vital for organizations. Functional conflicts imply the generation,
maintenance and transference of behavioral patterns and cultural patterns to sustain
the latent model for future generations, this is what Parsons calls latency.
(STEGGEMANN, 2015)
At the organizational level, structures are tied tensions. Such structures may
be rigid and require control in order to maintain what exists, and to exclude those
who oppose to them; indeed, this is what is called ‘latency’ in the social system
model of Parsons (1951). The result may be an authoritative and bureaucratic
decision making style, as Seibel describes (1970).
Overcoming or eliminating conflicts by means of authoritative decisions,
solves the short-term problem, but destroys intellectual capital in the long term, thus
affecting the perception of those involved in organizational processes; what Seibel
(1970) calls performance orientation conflict. Therefore, conflicts resolution in the
organization by means of conversion of zero sum conflicts in the ones of variable or
positive sum generates, in addition to the added economic value, an organizational
culture of values with new perceptions of people involved, a valuable resource for
leaders to guide perception and action while facing the change. (STEGGEMANN,
2015)
These functional conflicts with the tensions they imply, encourage innovation
and transformation in the organization, so that the company can successfully
manage its environment, get adapted to surroundings and adapt such surroundings
to its needs. It results in an environment where economic factors are allocated in
resolving and transforming reality, instead of adopting complex control processes to
identify who is guilty; that can only distract the organization from achieving its goals.
This kind of environment is the one that encourages innovative spaces.
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2. RESEARCH METHODOLOGY
One pilot questionnaire was developed and applied in order to understand if
decision making at the subsidiary of a transnational enterprise operating in Mexico
tends to be more universalist or more particularist, and to address from there the
non-compatibility and its relationship with innovation.
This tool intention was to measure particularist quality regardless of
universalist quality in analogy to Fincham’s studies (1997). The differentiation
between universalism and particularism as independent dimensions, allows the
appearance of two additional categories located in between those that are regularly
scored in the middle of a bipolar scale: those who achieve a high score both in
universalism and in particularism are ambivalent, while those that achieve a low
result in both of them can be described as indifferent.
It is supposed that the quality of the administrative mechanism is a function of
it being oriented towards universalism or particularism. Thus, the quality of the
administrative mechanism, whether it is universalism or particularism oriented,
depends on the balance of both of them. In order to measure the attitude and to get
to know it well, it is necessary to know how much universalist or particularist it is and
make a balance between both of them.
By measuring the balance one can see what kind of administrative
mechanism the analysed enterprises have. Based on who is a part of the body of
officers or directors, one can know how universalist, particularist, ambivalent (an
ambivalent perception of the administrative mechanism) or indifferent the subsidiary
is.
No tool was found applied in previous studies to measure universalism
regardless of particularism of the key people in a company in terms of two separated
dimensions as Kaplan (1972) proposed. Therefore, a questionnaire was developed,
modifying the questions proposed in the studies of Trompenaars (1998), Nawojczyk
(2006), and Heumann (2010). The tool includes eight items developed for this
research.
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Table 1: Pearson Correlation about the pilot questionnaire
Item
1
Item
2
Item
3
Item
4
Item
5
Item
6
Item
7
Item
8
item1
Pearson Correlation
1
.174
.106
.096
-.029
.107
-.063
.058
Fol. (bilateral)
.200
.438
.482
.832
.434
.643
.670
N
56
56
56
56
56
56
56
56
item2
Pearson Correlation
.174
1
.270*
.270*
-.287*
-.168
-.331*
-.077
Fol. (bilateral)
.200
.044
.044
.032
.216
.013
.574
N
56
56
56
56
56
56
56
56
item3
Pearson Correlation
.106
.270*
1
.328*
-.479**
-.127
-.261
-.145
Fol. (bilateral)
.438
.044
.014
.000
.349
.052
.288
N
56
56
56
56
56
56
56
56
Item4
Pearson Correlation
.096
.270*
.328*
1
-.140
-.108
-.355**
-.314*
Fol. (bilateral)
.482
.044
.014
.305
.428
.007
.018
N
56
56
56
56
56
56
56
56
item5
Pearson Correlation
-.029
-.287*
-
.479*
*
-.140
1
.268*
.595**
.147
Fol. (bilateral)
.832
.032
.000
.305
.046
.000
.280
N
56
56
56
56
56
56
56
56
item6
Pearson Correlation
.107
-.168
-
.127
-.108
.268*
1
.081
.210
Fol. (bilateral)
.434
.216
.349
.428
.046
.552
.121
N
56
56
56
56
56
56
56
56
item7
Pearson Correlation
-.063
-.331*
-
.261
-.355**
.595**
.081
1
.323*
Fol. (bilateral)
.643
.013
.052
.007
.000
.552
.015
N
56
56
56
56
56
56
56
56
Item8
Pearson Correlation
.058
-.077
-
.145
-.314*
.147
.210
.323*
1
Fol. (bilateral)
.670
.574
.288
.018
.280
.121
.015
N
56
56
56
56
56
56
56
56
Source: Authors’ own elaboration based on the results of the research project.
The questionnaire was applied as a pilot test in two German subsidiaries
located in Mexico, at senior managers’ level. They followed the desirable rules at
work. Informers did not answer by saying ‘no’ although ‘no’ may have been true.
Participants answered in a universalist way, even when in fact they act in a
particularist way as Nawojczyk described (2006).
Those who were interviewed answered the way it was socially desirable. The
responses given were the ones expected in the environment of the companies where
they work, and they tried to answer rationally; but rationality does not exist in human
beings a hundred per cent. Those who were interviewed are people working at a
German enterprise, which have to agree with a series of ‘issues’ inside the company;
therefore, they act as if they were uniformed.
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To ensure the instrument’s validity and reliability, a large sample is needed so
that it can produce a variance. Low variability of the responses showed that, in
statistical terms, it was a biased sample. This lead authors to the enlargement of the
sample, and all in all, variability did not change. The matrix of correlations shows that
questions apparently are not related to one another.
Correlation is too low among the items; with exception of the relationship
between items 5 and 3 and items 5 and 7, which is anyway not highly significant
(Table 1). This implies relations that do not determine one another.
The items that were applied are not organized, but rather mixed as a sample
of the matrix of rotated components (Table 2). This means that the items do not
attain to the definition of the concepts of universalism and particularism of this
research, and that one factor has not been clearly distinguished from the other one.
By analysing the items in detail, we can see that these are items of social visibility
and are hard to follow.
They were originally designed by Trompenaars (1998), Nawojczyk (2006),
and Heumann (2010) for a bipolar analysis. However, the reality is not bipolar. The
problem is not about the definition of concepts based on logical models, but about
the approach to a reality in order to understand it. What is interesting, it is to see how
non-compatibility in face of universalism-particularism creates tension, which, as
time goes by, entails the conflict management for innovation and, with it, value
generation.
Table 2: Matrix of rotated components
Matrix of rotated components
n
Components
1
2
item1
-.223
.496
item2
-.618
.330
item3
-.708
-.137
Item4
-.247
-.588
item5
.820
.097
item6
.193
.590
item7
.781
.193
Item8
.008
.661
Extraction method: analysis of main components.
Rotation method: Varimax normalization with Kaiser.
a. The rotation has converged in three iterations.
Source: Authors’ own elaboration based on the results of the research project.
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The senior management team should fulfil the enterprise’s objective,
regardless of how much particularist or universalist the decisions taken may be. This
could lead to different circumstances in terms of universalism-particularism. If the
transnational enterprise proclaims universalism based decisions and at the
subsidiary particularism based decisions are made, a performance conflict arises.
The senior management team finds it convenient to make particular
particularism based decisions in order to create value, a greater competitiveness and
profitability; but at the same time, it could destroy some intangible value or cause
new unnecessary tensions at the operational level.
If, in addition to the senior management team, employees understand the
decision-making process as a set of universal and particular rules, ambivalent or
indifferent perceptions are created. For very particularist employees and a very
particularist management, it seems that such conflict does not exist since they are
‘set to the same channel’.
Such coincidence is difficult to be found when we have a multicultural
organization, which is a part of a global enterprise with foreign capital; therefore, it is
a company with a long-term vision that exceeds its own local reality.
A particularist management and an employee with a universalist background
may cause a performance conflict, e.g. by the means of employee experimenting
that a higher performance isn't necessarily giving as a result a greater reward due to
particularist decisions at the management level (STEGGEMANN, 2015).
These circumstances, implying complex and unique patterns, make the
measurement task for better understanding of the phenomenon, impossible. Under
this analysis, we resort at this stage of the research to a study of a concrete reality
a critical case.
The research took another turn for recovery and evidence analysis. This proof
was gathered through work meetings, minutes, reports and projects that could make
the decisions taken by the senior management team tangible; as well as their impact
on collaborators and on the results of the project. The analysis focused on conflicts
and tensions to find those facts subject to analysis that can derive in a response to
the question.
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3. ANALYSIS OF THE RESULTS
The Root Cause Analysis (RCA) is a structural and systemic tool to locate
flaws. RCA allowed identifying conflicts and tensions based on the facts. For the
goals of this research, it comprised three steps: data collection, causing factors
mapping and identification of the root cause (ROONEY; LEE, 2004).
Figure 3. The Root Cause Analysis
Source: Authors’ elaboration based on Rooney & Lee (2004)
The critical case is the implementation of a quality management system
(QMS) by means of a quality committee. Conflicts and tensions, involved in the
implementation of a quality management system, were identified at the transnational
subsidiary. During the research process, the coordination of the project was
selected, as well as it correspondence to the internal quality committee and the
external one with the person in charge of the project in Germany.
To make sure that the collected data were correct, the senior manager of the
subsidiary was observed and interaction was held with him. Afterwards, information
was organized and mapped based on causing factors; analysing and contrasting
causes one by one based on the theoretical framework. Figure 3 shows the root
cause of what was observed, following the reversed causal sequence of events.
An increase in the number of customer complaints was observed (RNC) (32).
These complaints are related to an increase in the claims at the facilities (31), which
lead to delays (34). At the same time, tensions are observed between the person in
charge of the SGC implementation and area managers (35). These tensions are
derived from the delays and time extensions in the internal processes of the
company (34).
The delay that could be observed in the SGC implementation is not an
exception. SGC adaptation is not moving appropriately forward at the subsidiary
(37). Area audits have not improved from one year to the next (38). Delays, poor
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audit results and a scarce participation of the senior management team, as well as
the interest in the SGC system expressed by the ones in charge of the processes,
lead to the same cause, which perceives SGC as a problem and not as a useful
supporting system.
The system of the company inhibits its structure change and intervene, within
the part of its environment that is not a part of the internal system or of its working
area, by creating a vacuum to protect itself, as the Integration and Latency functions
of the AGIL system of Parsons describe (STEGGEMANN, 2015).
Figure 4: The Root Cause Analysis for the critical case
Source: Steggemann (2015) modified by the authors.
Function I is directed towards the integration of inner differences that arise as
a reaction to a changing environment by means of action patterns that control and
guarantee the system’s continuity. Function L is focused on the formation and
preservation of a system’s identity or its working area by means of behavioural
guidelines and rules that defend what already exists, thus guaranteeing the systems
continuity (STEGGEMANN, 2015).
The aforementioned became visible with the introduction of the turtle form,
which shows the inputs and outputs of each department and makes evident what
people do or must do (38.) There is a confusion between working affairs and
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personal affairs; the origin of a defensive behaviour is in a deficient inter and intra
departmental communication.
Mainly, the origin of deficient communication is related to the lack of
leadership at the company. There are few leaders and teams, and we can frequently
observe bosses and groups of work (28), where intra department work is considered
as necessary evil, similar to what had been seen in the previous project. ‘It is the
system that fails, not the person who leads the group’.
This kind of thought was developed due to a lack of clear and precise
delimitations of the responsibility and authority of each person in their respective
positions (26), focusing on products quality. In addition to confusion between working
and personal affairs, there are gaps that people take over, or let others take over,
depending on the circumstances.
This situation came up due to the lack of strategic objectives at departments
level. Most of the objectives of such departments are operational, they are a part of
their regular activity, they are internal, not strategic (27). This comes from a lack of
leadership and authority (25) from senior management, visible due to the deficient
participation at the quality committee of senior management and the managers of
each department (33) (STEGGEMANN, 2015).
Senior level as well as department managers focus on delimiting and
separating (I and L) to protect their comfort zone and their generated privileges (a
significant challenge for those involved); instead of looking for a balance of functions
A, G, I and L of the Parsons scheme.
In other words, they should be searching for the balance between keeping
and transferring behaviour patterns (I) and stability (L) through the organization,
allowing at the same time the transformation of the organization to adapt to its
environment and vice versa (A) what could subsequently lead to the achievement of
its goals (G) of profitability and competitiveness (STEGGEMANN, 2015).
The origin of orientation in delimitation and separation actions of a part of the
team of department and of senior level managers needs to be deducted from the
history of the company, from the established leadership forms, from structures and
from the existing limits of how things are done inside and outside the organization,
from its organizational culture (a weak organizational culture in the part of the sales)
visible because of staff rotation and personnel’s seniority levels.
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The system inhibits the change of its own structure and of the order of links
between formal and informal groups. It interposes within its environment (that is not
a part of the system), both boundaries and vacuums that are expressed through
intradepartmental conflicts, at times ignored. Involved groups perceive that there is a
significant challenge to protect their comfort zone and the privileges they have.
Operational and non-strategic objectives, in combination with unclear goals, give as
a result poorly committed working groups, whose communication is limited to
demands for information instead of developing communication (STEGGEMANN,
2015).
What happens in this case, as in the other ones analysed in the company, is
that they are focused on the elimination of mistakes during the final stage of
processes: manufacturing, project management, quality control. It was also observed
that, regarding control, conflicts and tensions must be rationally presented at the
middle of the way.
Figure 5. Project Control
Source: Steggemann (2015) modified by the authors.
The middle point is the representation of the conflict in figure 5. From the
beginning, the planning-doing-verifying-acting process is initiated. If something
unexpected is missing, people supervise the problem, take a lot of time to
understand or grasp the situation and act with a delay.
But if something is missing at the end of the project, it is not related to the
conflict. There can be seen the lack of total control. Thus, by the end of the project,
we talk about a total lack of control during the process. It is the conflict evasion, a
complementarity that is not in place there (STEGGEMANN, 2015).
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The observations of the project reflect what is expected, i.e. what is founded
by the theoretical framework. Action, games and conflict theories already have a
certain age and apparently, they explain a great part of the observation; although
Parsons did not work on the conflict. It can be that they were studied a long time
ago, and they may have been abandoned or are not considered fashionable
anymore; but it is a different question to consider them not important any longer
(STEGGEMANN, 2015).
Some general traits can be identified from people interviewed and
observations based on the theoretical framework. These traits deserve more
attention to understand how complementarity is encouraged between universalism-
particularism in face of non-compatibility for reaching the aim of innovation.
4. CONCLUSIONS
Broadening of horizons, thinking, feeling and interpreting reality in a different
way works as long as they are within the limits established by society. Freedom
exists within limits and rules (adaptation and latency). This set creates a sense of
community to separate itself from something. This set allows also understanding in a
context, within a reference framework. Crossing the limits to innovate causes
conflicts. Therefore, making transparent what people do could cause non-favourable
responses because it shows the non-compatibility that could apparently block the
complementarity of universalism-particularism.
Transnational enterprises formally reflect a universal position to their
employees; regardless of their geographic location. They create standards, bylaws
and regulations that are intended to apply globally with the objective of not losing
control and integration of their subsidiaries spread around the globe. However,
during the day-to-day operations of each subsidiary, individuals in it, even those who
come from the original country of the enterprise, are forced to take a combined stand
where universalism and particularism seem to merge.
Universalism and particularism definitely complement each other from the
moment in which the subsidiary involves people with different origins, visions and
backgrounds. Since the subsidiary is an open system, external agents influence it as
well. Socializing or relating, it creates tensions due to multidimensional heterogeneity
of economic agents. The acknowledgement of tension and the possible management
of conflicts arising from the non-compatibility between universalism and particularism
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lead to a more accurate decision making process. Furthermore, it leads to
entrepreneurial innovation.
The opposite situation only encourages the search for individual interests, it
discourages innovation and may lead to a competitiveness loss. The dangerous part
lies in the human tendency to search and keep the comfort zone, regardless of how
contradictory is this goal to manage a foreign subsidiary.
Victimizing a strategist during a conflict blocks the capacity to relearn from
reality, thus innovating in the search of a greater value creation for the enterprise. It
is required to acknowledge the non-compatibility to have more innovative
enterprises, also to detect tensions, boost conflict and channel it towards the
improvement of the organization; instead of ignoring the conflict or pretending to
terminate it in an authoritative way.
This is a great challenge for senior management, given that they can control
the media that boost all of them, but they cannot control other people’s emotions and
feelings. When the conflict is managed through directing it towards innovation, it
entails the risk of deviating it towards the emotional part, leaving aside the
intellectual conflict, which indeed does generate constructive changes to the
subsidiary, the transnational enterprise, senior management and for employees in
general.
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