Use of Case Research Method to Assess Factors influencing Cross-Cultural Transfer of Management Theories

Abstract

In this study, the author argues that adequate transfer of management theories and technologies from one culture to another often fails for several reasons. These reasons include the lack of knowledge and understanding of the diversity of cultures, government ideologies, and other ecological or environmental factors that influence theory development. Cultural researchers and theorists such as Hofstede (1994), Trompenaar (1994) and Sarpong and Rawls (1976) discussed several cultural profiles used to identify and define management theories for example the Japanese Theory Z (Ouchi, 1981) and American Theories X and Y. Effective theory or technology transfer must take into consideration the differences in the ecological and environmental factors of the transferor/donor and recipient society.

This article uses a case study approach under the qualitative research methodology to explore and identify the factors that influence effective theory development and thus a potentially successful cross-cultural transfer. A study to determine whether findings of firms’ growth strategies and structures in industrialized countries were applicable to developing country was undertaken. The studies in the industrialized nations identified “ideal stages of firm growth “, thereby theorizing that “structure always follow strategy”. However, differences in environmental factors such as cultural values and belief systems, government ideologies and policies, level of economic development, etc. provided some evidence why this theory did not hold true in the developing society. The study also examined theory development processes designed to support the impact of case studies on theory building and applications.