International Organizational Behavior 2e Chapter 1 Activities Page 1
CHAPTER 1
INTERNATIONAL ORGANIZATIONAL BEHAVIOR:
CHALLENGES AND OPTIONS FOR MANAGEMENT
CHAPTER ACTIVITIES
DEVELOPING YOUR INTERNATIONAL CAREER – Do you have a “Global Mindset”?
One of the themes in this book is that success in an international context requires a deep
understanding of cultures, organizational behavior, and yourself. Having self-insight
Social capital has to do with how well you build trusting relationships, especially with
individuals unlike yourself. This includes being comfortable communicating and
networking with people from other cultures, particularly when they have perspectives
different than yours.
Finally, intellectual capital reflects your grasp of your firm’s global business operations.
This includes understanding how competitors and customers act abroad as well as your
ability to cognitively juggle all the complexities associated with international business. It
also includes whether you have a genuine interest in the histories, cultures, and political
systems in different parts of the world.
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Global Mind-Set Sampler
Please answer the following questions with the scale below…
1 2 3 4 5
Not at all Small Extent Moderate Large Very large
Extent Extent Extent
Element 1—Social Capital Questions: Do You…
_____ 1. understand the nonverbal expressions made by people in several different
cultures?
________Total Social Capital Score
Element 2—Psychological Capital Questions: Do You…
_____ 1. feel comfortable even when you aren’t in control of a situation?
________Total Psychological Capital Score
Element 3—Intellectual Capital Questions: Do You…
International Organizational Behavior 2e Chapter 1 Activities Page 3
_____ 3. know about key business and cultural leaders, as well as the history and
geography of several countries?
_____ 4. know about business strategies for expanding globally?
________Total Intellectual Capital Score
Interpreting Your Scores
The questions above will give you a snapshot about how likely you are to perform at a high
level in an international position. Consequently, we suggest you add up your scores and see
how well you did in each of the three elements associated with a global mindset.
MAKING THE CASE FOR INTERNATIONAL UNDERSTANDING – The New BRIC Giants:
Following the Path of Japan Inc.?
Back in the 1980s and 1990s, every other magazine cover seemed to feature a new
management technique that was helping Japanese firms succeed internationally. We heard
all about the Toyota Way, the Honda Way, and the Mitsubishi Way-and with good reason
since Japan led the world at the time. But since the late 1990s, the news has not been nearly
this mean for the recent success of companies from BRIC countries and other developing
nations? Will they lose steam as Japan did or find ways to adjust and protect their gains, a
trajectory followed by some American and European firms?
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Several factors will determine whether BRIC countries can stay globally competitive over
time. The inability of some of Japan’s most successful firms to maintain their competitive
positions offer some valuable lessons. Specifically, the features that were responsible for
Indeed, Japanese firms enjoyed their early successes while continuing to drive down costs
via economies of scale and developing (or borrowing) methods that ensured quality
production. Many Japanese firms recognized the appeal of exporting and so began the
Japanese miracle. By 1986, over 95 percent of all Japanese products sold globally were
But while their methods helped Japanese firms grow exports, they hindered success in
setting up foreign operations. The automatic application of ‘The Way’ was a mistake
reflecting the assumption that what worked at home would also work in foreign
operations. In exporting their methods abroad, Japanese firms sent many more expats
overseas than did their U.S. and European counterparts—on average, twice as many. Once
abroad, Japanese expatriates searched for loyal adherents—as one Japanese manager said,
Then there was the nature of the Japanese home market. During their early growth periods,
Japanese firms faced few foreign rivals at home. From the 1970s to the 1990s, foreign
investment in Japan was only 30% of GDP, with only about 1,000 foreign firms operating in
the country. Onerous regulations, a complex legal system, and tight interconnections
among Japanese firms made it difficult for foreign firms to grab a foothold in Japan. While
advantageous as Japan’s exports grew, the isolation of their home market from foreign
competition meant Japanese firms had little experience dealing with foreign competitors
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head-to-head. For instance, Japanese investment giant Nomura struggled to compete
against Goldman Sachs, UBS and others in foreign financial capitals like London and New
York. Nomura simply did not have the market sophistication and knowledge needed to
compete and floundered for years.
But a homogenous, cooperative workforce at home did not help prepare Japanese firms for
their ventures abroad. Indeed, many Japanese firms encountered human resource
management setbacks overseas. Take the masculine culture that characterizes many
Japanese firms for example. These views, and the behaviors that accompany them, might be
overlooked, if not appreciated, in Tokyo. But in the U.S. such attitudes can prove costly and
damage reputations. At a Mitsubishi plant in Illinois, sexist attitudes in employment ads led
to lawsuits about systematic harassment of women and resulted in a $35 million fine. Other
Japanese firms have experienced similar problems.
So the question remains—are BRIC countries and the companies that call them home well-
positioned for the future or do they have big challenges to face down the line? Japan Inc.,
rose to international prominence in a short period of time, only to fall back. Perhaps the
BRIC countries can learn from this cautionary tale – and your analysis.
ASSIGNMENT QUESTIONS
1. Identify one firm on the current Global 500 list from each of the four BRIC
countries. Do these firms rely on and promote a set of “Ways” for operating? If
so, what are those ways? Do they parallel what we saw in Japanese firms?
3. What is the nature of the domestic labor force in BRIC countries? How
homogenous and cooperative is the workforce compared to Japan’s? What are
the implications of this in your view?
5. Taking everything into consideration, how likely is it that BRIC countries, and
the firms based there, will eventually experience what happened in Japan?