Agency theory, national culture and management Control Systems

Management control system of an organization is the structured facet of management, the formal vehicle by which the management process is executed. In most organizations, systems exist for planning, organizing, directing, controlling and motivating. Depending on the level of appropriateness and quality of the management control systems, the task of management is either facilitated or hindered. The end goal of a management control system is achieving organizational objectives. Because employees (agents) do not always give their best efforts for achieving organizational objectives, management control systems need to strive for aligning goals of agents (e.g., employees, subordinates) with that of principals (e.g., senior management, owners). Agency theory and its extension, principal agent model, provide insights to the problem of goal congruence and suggest remedies, at least in the Western cultural context. Whether the agency theory presumptions, predictions and prescriptions are universally applicable is an important issue in management. Their validity in different cultural contexts is largely unknown. The available literature to date indicates the possibility that agency theory may not be valid in non-western cultures. However, further empirical research is needed in non-western cultures to shed more light to this issue.

The influence of collectivism in society and its implications for research on information systems and national culture

This paper argues that the nature of IS research that deals with indigenous culture must be informed as much by context as it is by culture models, which has been the focus of such research in the past. This is considered important because it better reflects the meaning of the data collected for the researcher. To appreciate the importance of context this papers also argues that research subjects from designated individualist societies will inform the researcher in different ways from those subjects located in collectivist societies. To illustrate the practical implications of this argument the paper reports three separate case studies in IS research where the researchers reflect on the impact that a collectivist view has had on the research findings. The paper suggests that (1) similar ethnicity and appearance are significant in gaining the trust of subjects in a collectivist society; that is the researcher is part of the in-group as they belong to the same culture or ethnic group; that (2) who introduced the researcher to the subject is significant in that trust is best reflected when a member of the group/collective plays an important role in the research process itself; and that (3) an ability to (a) communicate in the natural language and (b) understand the implicit body language and (c) cultural codes is important in gaining significant and more meaningful research outcomes. This is enabled via the implicit meanings embedded in members of the collectivist society.

Organisational and national culture : a study of overlap and interaction in the Literature

Terms such as Globalisation and cross-cultural management are widely used by both organisational managers and academics. While it is the intention of academics and industry analysts to explain the phenomena and discover principles to guide the practitioners, human resource managers are dealing with the workplace changes implicit in these terms on an increasingly frequent basis. These managers are facing increasingly diverse workforces, and must cope with all the challenges and opportunities inherent in such diversity. This article presents a new approach to examining the key literature on organisational and national culture in three main areas. Firstly, areas of convergence between various theories on culture are identified. Secondly, the article illustrates and discusses where these theories diverge from each other. Thirdly, drawing on the principles discussed in the article, a framework of national culture is developed from existing literature that highlights the convergence found in existing models.

Leadership and culture in Asia : the case of Malaysia

This study advances prior theoretical research by investigating the influence of cultural forces in our understanding of leadership. The research provides new insights by linking transformational and transactional leadership to the Malaysian cultural environment. Using a quantitative approach by administering the multifactor leadership questionnaire MLQ-5x-short, 138 usable responses were analysed. Findings indicate that cultural foundations contribute significantly to transformational leadership behaviours to facilitate the creation of a harmonious leader–subordinate relationship. Furthermore, this study contributes to an understanding of how specific leaders' behaviours are affected by cultural forces, and reveals leadership attributes that are contingent upon dynamic environmental conditions. The study extends beyond the obvious, and reveals subtle yet important culture-specific differences. The Malaysian managers, regardless of gender, show a preference for leading within the transformational leadership framework. This has led us to infer that cultural forces do indeed play an important role in determining leadership styles.

Analysis of cultural conflict in the development of web-enabled information systems

The advent of the World Wide Web (WWW) and the emergence of Internet commerce have given rise to the web as a medium of information exchange. In recent years, the phenomenon has affected the realm of transaction processing systems, as organizations are moving from designing web pages for marketing purposes, to web-based applications that support business-to-business (WEB) and business-to-consumer (B2C) interactions, integrated with databases and other back-end systems (Isakowitz, Bieber et al., 1998). Furthermore, web-enabled applications are increasingly being used to facilitate transactions even between various business units within a single enterprise. Examples of some of the more popular web-enabled applications in use today include airline reservation systems, internet banking, student enrollment systems in universities, and Human Resource (HR) and payroll systems. The prime motive behind the adoption of web-enabled applications are productivity gains due to reduced processing time, decrease in the usage of paper-based documentation and conventional modes of communication (such as letters, fax, or telephone), and improved quality of services to clients. Indeed, web-based solutions are commonly referred to as customer-centric (Li, 2000), which means that they provide user interfaces that do not necessitate high level of computer proficiency. Thus, organizations implement such systems to streamline routine transactions and gain strategic benefits in the process (Nambisan & Wang, 1999), though the latter are to be expected in the long-term. Notwithstanding the benefits of web technology adoption, the web has ample share of challenges for initiators and developers. Many of these challenges are associated with the unique nature of web-enabled applications. Research in the area of web-enabled information systems has revealed several differences with traditional applications. These differences exist with regards to system development methodology, stakeholder involvement, tasks, and technology (Nazareth, 1998). According to Fraternali (1999), web applications are commonly developed using an evolutionary prototyping approach, whereby the simplified version of the application is deployed as a pilot first, in order to gather user feedback. Thus, web-enabled applications typically undergo continuous refinement and evolution (Ginige, 1998; Nazareth, 1998; Siau, 1998; Standing, 2001). Prototype-based development also leads web-enabled information systems to have much shorter development life cycles, but which, unlike traditional applications, are regrettably developed in a rather adhoc fashion (Carstensen & Vogelsang, 2001). However, the principal difference between the two kinds of applications lies in the broad and diverse group of stakeholders associated with web-based information systems (Gordijn, Akkermans, et al., 2000; Russo, 2000; Earl & Khan, 2001; Carter, 2002; Hasselbring, 2002; Standing, 2002; Stevens & Timbrell, 2002). Stakeholders, or organizational members participating in a common business process (Freeman, 1984), vary in their computer competency, business knowledge, language and culture. This diversity is capable of causing conflict between different stakeholder groups with regards to the establishment of system requirements (Pouloudi & Whitley, 1997; Stevens & Timbrell, 2002). Since, web-based systems transcend organizational, departmental, and even national boundaries, the issue of culture poses a significant challenge to the web systems’ initiators and developers (Miles & Snow, 1992; Kumar & van Dissel, 1996; Pouloudi & Whitley, 1996; Li & Williams, 1999).

Cultural differences, information and code systems

This paper explores an alternative way of framing information systems research on the role and impact of national culture. It argues that the widely accepted structural framework of Hofstede reduces interpretation to a simplistic categorical description which in many cases ignores differentiation within cultures. The alternative model suggests, that national culture can be better understood by seeking out the dominant codes that frame the discourse pervasive in a culture and understanding how that discourse affects the obvious social codes of ritual, custom and behavior and the textual codes which express the nature of that culture. This framework is applied to two different case studies—one in New Zealand and one in Thailand—to demonstrate its applicability.

The indigenous art market: a roadmap to a more equitable and efficient system

The Indigenous art market plays a significant role both in promoting appreciation for the accomplishments of Aboriginal culture and within broader concepts of the export of a national culture.[1] Despite the growth in status and impact of Indigenous art over the past decade, very little scholarship or resources exist to assist their development and analyse their impact on economic or social wellbeing. This paper canvasses new ways of operating the Indigenous art market to better support emerging and established artists in a globalised economy and suggests that there is a pressing need for future research to develop a new framework for its operation.

Power relations in virtual communities: an ethnographic study

Peoples' need to socialize with others and greed for power can be best captured with Aristotle's description of human beings as “political animals”/“social animals.” This paper reports on observations of how cyber communities, such as Web-based forums and mailing lists, manifest themselves through social interactions and shared values, membership and friendship, and commitments and loyalty. The paper highlights the importance of power relations in these communities, how they are formed, exercised and evolve. This paper explores power relations as they emerge in two online Vietnamese communities and suggests a new understanding of the formation and evolution of power in virtual societies.

Power relations in cyber communities

Peoples' need to socialize with others and greed for power can be best captured with Aristotle's description of human beings as "political animals"/"social animals." This paper reports on observations of how cyber communities, such as Web-based forums and mailing lists, manifest themselves through social interactions and shared values, membership and friendship, and commitments and loyalty. The paper highlights the importance of power relations in these communities, how they are formed, exercised and evolve. This paper explores power relations as they emerge in two online Vietnamese communities and suggests a new understanding of the formation and evolution of power in virtual societies.

Virtual non-profit organisations : literary virtual communities in Russia

This paper is a study of one of the "unknown" segments of the Internet - non-profit ventures in the Russian language. Based on the understanding of the concept of virtual community we consider the family of free publishing literary websites. We discuss their experience to demonstrate their contribution not only to the national culture, but also to the creation of open and democratic society in the former communist world, and to new forms of literary life. Some of the innovative concepts, principles and practices, adopted on those sites may be of interest to the Internet developers and communities worldwide.

Virtual non-profit organisations: literary virtual communities in Russia

This paper is a study of one of the “unknown” segments of the Internet - non-profit ventures in the Russian language.Based on the understanding of the concept of virtual community we consider the family of free publishing literary websites. We discuss their experience to demonstrate their contribution not only to the national culture, but also to the creation of open and democratic society in the former communist world, and to new forms of literary life. Some of the innovative concepts, principles and practices, adopted on those sites may be of interest to the Internet developers and
communities worldwide.

A study of social responsibility of Sri Lankan immigrant entrepreneurs in Australia

Increasing globalisation, technological advancement and migration waves in the last few decades have changed the look of many advanced countries to be more cosmopolitan and Australia is no exception. The number of South Asian migrants in Australia is steadily increasing. Among the South Asians, there are 31,482 Sri Lankans in the state of Victoria and the majority of them are entrepreneurs. Social responsibility perceptions and practices of these entrepreneurs have not been researched. The study aims to fill this gap by undertaking a triangulation method to investigate the social responsibility perceptions and practices of these entrepreneurs and identify whether or not they are influenced by home country contextual factors, specifically national culture, and business environment. The study is a work in progress and the survey will be undertaken in the second quarter of the year. Socially responsible businesses have the potential to promote an overall approach to quality and sustainable development as they can have positive impacts not only on their own businesses but also on the community and the environment in which they operate. This study is thus significant as it will deliver economic, social and environmental benefits to Australia.