11

Strategic decision making and support systems: Comparing

American, Japanese and Chinese management

Maris G. Martinsons and Robert M. Davison

Decision Support Systems 43 (2007) 284–300

Presented by Li-mei lee & Meng-Shan Tsai

2009/12/16

22

Abstract動機：動機：– Internationalization Internationalization

How managers make decisions in different parts of the worldHow managers make decisions in different parts of the worldhow computerbased information systems (IS) can support dehow computerbased information systems (IS) can support decision makingcision making

– distinctive prevailing decision styledistinctive prevailing decision styledifferences in cultural valuesdifferences in cultural valuesneeds for achievement, affiliation, power and informationneeds for achievement, affiliation, power and information

結論結論– The success depend critically on how well IT applicatiThe success depend critically on how well IT applicati

ons are adapted to the decision styles of their usersons are adapted to the decision styles of their users

33

Introduction

Decision-making Decision-making – is a fundamental activity for managers– the essence of the manager's job the essence of the manager's job – a critical element of organizational lifea critical element of organizational life– is synonymous with managing is synonymous with managing

44

Introduction

Decision-making Decision-making – Use ISUse IS

Decision support systems (DSS)Decision support systems (DSS)

Group support systems (GSS)Group support systems (GSS)

Executive information systems (EIS)Executive information systems (EIS)

55

Introduction

Managers vs Decision-makingManagers vs Decision-making– Decisions affect their organizationsDecisions affect their organizations– Socialization and business environments both Socialization and business environments both

affect processes and choices affect processes and choices– Knowing decision styleKnowing decision style patternpattern predict how he predict how he

or she will react to various situationsor she will react to various situations

66

Introduction

focuses on the process of decision focuses on the process of decision makingmaking– compares and contrasts the decision stylescompares and contrasts the decision styles– how IT applications can support each how IT applications can support each

decision styledecision style

discovery of national differences discovery of national differences

provide specific guidance for adopting and provide specific guidance for adopting and adapting various decision-supporting ISadapting various decision-supporting IS

77

Literature review

Influences on decision makingInfluences on decision making

Decision-making stylesDecision-making styles

Information systems to support decision Information systems to support decision makingmaking

88

Literature review

Significant influencesSignificant influences– values – cognitive perception

99

Literature review

valuesvalues– Context、 way of perceiving and

understanding cues、 values or judges as important [71]

– Values[43]ingrained during childhood

refined by experiences during adolescence

1010

Literature review

valuesvalues– Values[20]

evaluation of both problems and potential solutions

The processes used to make choices

interpersonal relationships

the boundaries of and limits for ethical behavior

response to external pressures and extrinsic motivational forces

1111

Literature review

valuesvalues– National background (or societal culture)[30]

IBM employees example– 60 countries about 116,000– National background (or societal culture) far mo

re than the proportions explained by professional role, age,or gender

1212

Literature review

cognitive perceptioncognitive perception[5]– The management of information inevitably

involves judgment biases– varying frames of reference and subjective– determine our responses

1313

Literature review

cognitive perceptioncognitive perception[60]– Differ greatly across countries and continents– East Asians typically think more holistically an

d contextually – North Americans concentrate on foreground it

ems and specific details– For example： tiger in a jungle

1414

Literature review

ValuesValues Cognitive Cognitive perceptionperception

AmericanAmerican More egalitarian, More egalitarian, individualisticindividualistic

less attentive to contextless attentive to context

Objective, Objective, analytic, analytic,

cerebral, cerebral, impersonalimpersonal

AsiansAsians Hierarchy, collectivism, Hierarchy, collectivism, attention to context attention to context

Self-perception Self-perception of subjective , , emotional, emotional,

personal thinkingpersonal thinking

Significant influencesSignificant influences

1515

Literature review

Decision-making stylesDecision-making styles– introverts and extrovertsintroverts and extroverts– directive, analytic, conceptual, and behavioraldirective, analytic, conceptual, and behavioral

1616

Literature review

McClelland [53]McClelland [53]– behavior is motivated by the needs for behavior is motivated by the needs for

achievement, power and affiliationachievement, power and affiliation– achievement may be satisfied in two different achievement may be satisfied in two different

ways,ways,intrinsically by taking on new challengesintrinsically by taking on new challenges

extrinsically by receiving praise and recognitionextrinsically by receiving praise and recognition

1717

Literature review

HighHigh

Cognitive Cognitive ComplexityComplexity

LowLow

AnalyticAnalytic ( ( 分析型分析型 ))

Strong need for achStrong need for achievementievement

Conceptual Conceptual ((概念概念型型 ))

Strong need for achieStrong need for achievementvement

DirectiveDirective ( ( 指導指導型型 ))

Strong need for poStrong need for powerwer

Behavioral Behavioral ((行為型行為型 ))

Strong need for affiliatiStrong need for affiliationon

Task Oriented People Oriented Task Oriented People Oriented

ValuesValues

1818

Literature review

Decision Style Inventory (DSI)Decision Style Inventory (DSI)– Split-half and test-retest reliability studiesSplit-half and test-retest reliability studies– Item analysisItem analysis– Correlation with other test instrumentsCorrelation with other test instruments

A very high face validity and reliabilityA very high face validity and reliability

1919

Decision-making Decision-making – Use ISUse IS

Decision support systems (DSS)Decision support systems (DSS)

Group support systems (GSS)Group support systems (GSS)

Executive information systems (EIS)Executive information systems (EIS)

Literature review

2020

Literature review

Decision Support Systems (DSS)Decision Support Systems (DSS)– Developed in the 1970 , used widely in the 1980sDeveloped in the 1970 , used widely in the 1980s– computer-based systems computer-based systems – help decision makers confront ill-structured problemshelp decision makers confront ill-structured problems– speed and accuracy of data analysisspeed and accuracy of data analysis– originally for managers, now for nonmanagementoriginally for managers, now for nonmanagement– valuable tools in complex situations,ex.multiple sourcvaluable tools in complex situations,ex.multiple sourc

es of dataes of data

2121

Literature review

Group Support Systems (GSS) Group Support Systems (GSS) – origins to the 1970s, researched since the mid-1980sorigins to the 1970s, researched since the mid-1980s– networked systemsnetworked systems– group usegroup use– reducing costs of communicationreducing costs of communication– brainstorming,idea organization and evaluation, and brainstorming,idea organization and evaluation, and

consensus formationconsensus formation– identified or anonymous(on controversial topics)identified or anonymous(on controversial topics)– manager use it to identify new ideas from employeesmanager use it to identify new ideas from employees

2222

Literature review

Executive Information Systems (EIS)Executive Information Systems (EIS)– for executivesfor executives– access summary performance dataaccess summary performance data– uses graphics to display and visualize the data uses graphics to display and visualize the data – Enable ‘drill down’ in summary data Enable ‘drill down’ in summary data – extract data on key performance indicatorsextract data on key performance indicators– simplify their decision space without having to lose simplify their decision space without having to lose

their independencetheir independence

2323

Literature review

AnalyticAnalytic DirectiveDirective ConceptualConceptual BehavioralBehavioral

DSSDSS、、 EISEIS EISEIS DSSDSS、、 GSGSSS

GSSGSS

Decision styles VS DSS, GSS and EISDecision styles VS DSS, GSS and EIS

2424

Research context

strategic decision making is neglected strategic decision making is neglected

Schwenk suggest “that many of the conclSchwenk suggest “that many of the conclusions about strategic decision making deusions about strategic decision making developed in the U.S. context will have to be veloped in the U.S. context will have to be modified in order to be applicable across cmodified in order to be applicable across cultures.”ultures.”

2525

Research context

cross-cultural differences influence on decicross-cultural differences influence on decision makingsion making– cultural values are likely to exert a significant icultural values are likely to exert a significant i

nfluence on decision makingnfluence on decision making– examining cross-cultural differences, was helpexamining cross-cultural differences, was help

ful totheorize how business leaders from the ful totheorize how business leaders from the U.S.,Japan and China may differ in their decisU.S.,Japan and China may differ in their decision makingion making

2626

Research context

four dimensions of work-related values inflfour dimensions of work-related values influence on decision makinguence on decision making– Power distance (PD)Power distance (PD)– Individualism/collectivism (IND)Individualism/collectivism (IND)– Masculinity/femininity (MAS)Masculinity/femininity (MAS)– Uncertainty avoidance (UA)Uncertainty avoidance (UA)

The Hofstede and GLOBE scores shown iThe Hofstede and GLOBE scores shown in Table 1 and 2.n Table 1 and 2.

2727

Theory and hypothesis

Power distance and individualism-Power distance and individualism-collectivismcollectivism

Uncertainty avoidance and performance Uncertainty avoidance and performance orientationorientation

2828

Theory and hypothesis

PD and INDPD and IND– HofstedeHofstede

PD scorePD score：： China > Japan > U.S.China > Japan > U.S.

Individualism scoreIndividualism score：： U.S. > JapanU.S. > Japan 、、 ChinaChina

2929

Theory and hypothesis

PD and INDPD and IND– TriandisTriandis

HorizontalHorizontal VerticalVertical

Individualism Individualism societiessocieties Self-reliant, UniqueSelf-reliant, Unique Distinguished statusDistinguished status

Collectivism Collectivism cultureculture

Shared goals, Shared goals, InterdependentInterdependent

In-group goals, In-group goals, In-group will benefitIn-group will benefit

3030

Theory and hypothesis

PD and IND hypothesizedPD and IND hypothesized

AnalyticAnalytic ( ( 分析型分析型 ))Strong need for achieveStrong need for achievementment

Conceptual Conceptual ((概念概念型型 ))Strong need for achievemStrong need for achievementent

DirectiveDirective ( ( 指導型指導型 ))Strong need for powerStrong need for power

ChinaChina

Behavioral Behavioral ((行為行為型型 ))Strong need for affiliationStrong need for affiliation

JapanJapan

3131

Theory and hypothesis

UA and performance orientationUA and performance orientation– HofstedeHofstede

UA scoreUA score：： U.S. < U.S. < JapanJapan

3232

Theory and hypothesis

UA and performance orientationUA and performance orientation– GLOBEGLOBE

UA scoreUA score：： China > U.S. & JChina > U.S. & Japanapan

PPerformance orientationerformance orientation ：： U.S > China & JapanU.S > China & Japan

3333

Theory and hypothesis

UA and performance orientation UA and performance orientation hypothesizedhypothesized

AnalyticAnalytic ( ( 分析型分析型 ))Strong need for achievemStrong need for achievementent

AmericanAmerican

Conceptual Conceptual ((概念概念型型 ))Strong need for achievemeStrong need for achievementnt

AmericanAmerican

DirectiveDirective ( ( 指導型指導型 ))Strong need for powerStrong need for power

ChinaChina

Behavioral Behavioral ((行為型行為型 ))Strong need for affiliationStrong need for affiliation

JapanJapan

3434

Method and sample

3535

Method and sample

Decision style instrument (DSI)Decision style instrument (DSI)

Demographic characteristics of the respondentsDemographic characteristics of the respondents

AmericansAmericans

n=139n=139

JapaneseJapanese

n=82n=82

ChineseChinese

n=88n=88

EducationEducation

　　 Secondary school or lessSecondary school or less 11%11% 9.8%9.8% 27%27%

　　 Post-secondary studyPost-secondary study 61%61% 72%72% 52%52%

　　 Graduate-level studyGraduate-level study 28%28% 18%18% 20%20%

With organizationWith organization

　　 MeanMean 9.79.7 14.814.8 11.511.5

　　 RangeRange 1-331-33 7-367-36 2-222-22

3636

Differences in decision stylesScores on the decision style inventoryScores on the decision style inventory

AmericansAmericans JapaneseJapanese ChineseChinese One-way One-way ANOVA ANOVA F-scores and F-scores and significancesignificance

Directive meanDirective mean 64.864.8 69.469.4 84.384.3 38.73138.731

S.D.S.D. (8.3)(8.3) (6.4)(6.4) (6.7)(6.7) PP=0.001=0.001

Analytic meanAnalytic mean 82.282.2 71.871.8 73.073.0 18.85418.854

S.D.S.D. (7.7)(7.7) (6.3)(6.3) (7.8)(7.8) PP=0.002=0.002

Conceptual meanConceptual mean 79.179.1 72.772.7 67.567.5 23.65223.652

S.D.S.D. (8.8)(8.8) (6.5)(6.5) (7.4)(7.4) PP=0.001=0.001

Behavioral meanBehavioral mean 58.858.8 71.171.1 60.260.2 21.20621.206

S.D.S.D. (6.8)(6.8) (5.9)(5.9) (6.6)(6.6) PP=0.001=0.001

TotalTotal 285285 285285 285285

Means (and standard deviations) of national samples.Means (and standard deviations) of national samples.

3737

Differences in decision styles

Score Score National National Highest scoreHighest score Lowest scoreLowest score

U.S.U.S.ConceptualConceptual

AnalyticAnalytic

DirectiveDirective

BehavioralBehavioral

ChineseChinese DirectiveDirective ConceptualConceptual

JapaneseJapanese BehavioralBehavioral AnalyticAnalytic

Scores on the decision style inventory

3838

Differences in decision styles

3939

Differences in decision styles

4040

Differences in decision styles

4141

Differences in decision styles

4242

Differences in decision styles

AnalyticAnalytic ( ( 分析型分析型 ))Strong need for achievementStrong need for achievement

AmericanAmerican

Conceptual Conceptual ((概念型概念型 ))Strong need for achievementStrong need for achievement

AmericanAmerican

DirectiveDirective ( ( 指導型指導型 ))High power distanceHigh power distance

in-group collectivismin-group collectivism

ChinaChina

Behavioral Behavioral ((行為型行為型 ))Strong need for affiliationStrong need for affiliation

Power and responsibility sharedPower and responsibility shared

institutional collectivisminstitutional collectivism

JapanJapan

Pairwise t-test comparisons

4343

Japan and ChinaJapan and China

Chinese business leadersChinese business leaders– Less likely to rely on IT applicationsLess likely to rely on IT applications– Strong preference for social hierarchyStrong preference for social hierarchy– Top-down controlTop-down control– Strategic decisions preferred informal Strategic decisions preferred informal

personal reportingpersonal reporting– Valued the discretion to disregard some Valued the discretion to disregard some

decision criteriadecision criteria– Weighting based on their personal judgment Weighting based on their personal judgment

and past experienceand past experience

4444

Japan and ChinaJapan and China

Japanese business leadersJapanese business leaders– Wide access to EIS and selective adoption of Wide access to EIS and selective adoption of

GSSGSS– Favor non-traditional IT applicationFavor non-traditional IT application

– Acceptance of tacit knowledge managementAcceptance of tacit knowledge management– Group welfare outweighs individual needsGroup welfare outweighs individual needs

4545

Anglo and Far Eastern/Confucian Anglo and Far Eastern/Confucian cultural clusterscultural clusters

4646

Further research

Different situationsDifferent situations

Effectiveness of different decision stylesEffectiveness of different decision styles

Decision support toolsDecision support tools

International differences in fundamental International differences in fundamental management activitiesmanagement activities

4747

Conclusions

IT applicationsIT applications– Bottom-up aggregation of dataBottom-up aggregation of data– Top-down communicationTop-down communication– Decisions will be appropriateDecisions will be appropriate

Global ISGlobal IS– FlexibilityFlexibility– Accommodate different decision stylesAccommodate different decision styles– Accommodate decision-makingAccommodate decision-making

4848

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