In and Future Outlook. Journal of Management Studies
In this article “Asian Management Research: Status Today and Future Outlook. Journal of Management Studies 45 (3)” was written by Garry D. Bruton and Chung-Ming Lau (2008), examines the existing literature and addresses future research directions of Asian management research. Since there is a lot of management research focused on mature markets in North America and Europe while the research about Asian management is still lacking. Even concerning the impact of Asian economy to the world economy, Asia contains one of the world’s largest economies like Japan and the world’s fastest growing economies as China and India. This article not only focuses on building the understanding of Asia, but also makes a critical contribution to the broad domain of management studies.
According to the article, it defined about Asia in term of the region east of Europe and Africa and has a population of approximately 3.5 billion people in over 30 nations. (Wilson and Purushothaman, 2003) The article did not include the nations of the Middle East and the Caucasus because both of them are each typically seen as having a distinct and consistent culture. Also Russia and Turkey have been excluded from the review to avoid confounding findings for the reason that these nations do not segment their data by European or Asian parts of the nation.
The authors selected a set of ten high quality management journals to form the qualitative reviews of the articles based on different perceptions which are Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology, Journal of Business Venturing, Journal of International Business Studies, Journal of Management, Journal of Management Studies, Organization Science and Strategic Management Journal. All journals are during the ten-year period from 1996 to 2005. Previous to 1996 there was not much research on Asia beyond Japan in leading journals. Furthermore, Asian nation in their sample or specifically address some aspects of Asian business in the study should include in the articles in order to meet the research requirement. The authors reviewed articles one by one and then compared them until the consensus was reached. Total of 306 articles were identified in the research with 36 different topics and 38 different theories employ in Asian focused studies. However, most of the reviews are often based on surveys or quantitative methods, not only in Asian-focused studies, but also on all international management studies, as it is tough to obtain valid archival data in international setting. Further shortcoming of the review is that sample data often comes from only one country which make it hard to argue that result are representative of Asia or is simply a sample bias in single Asian nation. It is also noted that out of over 30 nations in Asia, only 14 of them are examined in these studies with uneven distribution across Asia (Bruton et al., 2008).
For a major research issue and finding, there are two major topics in the article which are the micro OB/HR area and the macro strategy area. The micro OB/HR studies have two topic areas. One is group and team issues which articles on conflict management, negotiation, collaboration, and identity in teams including leadership and trust. Other is individual differences which related to individual differences or the attitudes, values, emotions, and cognitions of individuals. But the overview of Micro OB/HR, the research lack of a critical mass in certain key sub-area and there are a lot of OB topics not yet studied which the researched papers cannot be assumed that the settings in Asia are generalizable across nations.
Macro Strategy Research has four topic areas which are joint ventures and alliances, networks and business groups, business and functional competitive strategies, and market entry strategies. Joint ventures and alliances are the most examine from four topic areas. It can be categorized into four sub-groups which related to inter-partner relationships, parent and subsidiary relationships, inter-firm alliances, and partner selection. There are two main factors that drive this interest. One factor is that such relationships normally involve a firm from a mature Western market and a major area in international strategic management research received a lot of attention in the international business literature. Network and business groups focus mostly on business organizations. Business groups commonly consist of individual firms that are associated by multiple links, potentially including cross-ownership, close market ties and/or social relations through which they coordinate to achieve mutual objectives. Gives examples from Japan and Korea, keiretsu and chaebol and are the dominant organizational forms among Asian business. Business level strategies studied are quite comprehensive. It includes human resource strategies, R&D and innovation strategies, product and customer strategies, financial strategies, and environmental strategies for understanding of different types of strategies among Asian countries. Most of studies examined technology-based firms in Korea, Japan, and China but it is very limited research outside these countries. Market entry strategies focused on how MNCs enter into diverse markets, particularly the emerging economies. Most of these studies focused on the mode, timing, and sequence of entering Asian markets. The studies explain the choice of entry mode by this area continued to receive attention from researchers, which in the future this may lead to better theoretical development in international business research.
Now there are lacking of Asian-style management researches in many topics, so for solving these problems, first one Asian management research should move from an Asia-based perspective to an Asia-driven perspective. The studies should be driven by Asian phenomena and inform the literature of ‘why’ and ‘how’ Asian issues matter instead of asking ‘what’ question. Secondly, theoretical contextualization of the research in Asia needs to happen. The studies are still based on theories from the mature Western economies. So, there is a necessity to focus more on the Asian context and develop new theories that will help to shift the management research paradigm.
About Future development in Micro and Macro strategies, at present the group- and organizational-level topics are not well studied. Most studies simply took Western constructs and applied them in Asia or made simple comparisons. There are very few HR oriented studies done in Asia, even though relationships and leaderships are important elements in Asian management (Chen and Tjosvold, 2006). Furthermore, rapid change characterize emerging economies can produce changes in the cultural values of individuals. The globalization of Asian firms had better shift the focus to the more current concerns of how Asian firms go global. For multi-Level Studies, there are more and more management issues that are cross-level in nature in Asia. Future research should seek to incorporate such cross-level methodologies. For more suggestion, the emphasis of CEO and top management team in directing a business in Asia should be more explored about how their management style and decisions affect the operations of Asian firms as well as individual employee behaviors. This Asia driven phenomenon would have the potential for new theory development. It is this kind of multi-level issue which has to be addressed in future research. As firms in Asia become more market oriented and grow more globalized, there is a need to integrate a greater strategic choice orientation into their analysis.
In conclusions, according to the article, journals the articles must have met requirements of quality articles, namely, theoretical contribution, rigorous method, and good fit of data and theory (Bartunek et al., 2006). In the future, the number of quality research studies on Asia will be far greater than these studies reviewed. A key part of this future contribution will rely on researchers focusing on Asia-driven phenomena and theory development rather than simply seeking to extend existing theory and research.
As the article already mentioned that nowadays Asia become more globalization. To achieve in global marketing expansion, international joint venture (IJV) is the most applicable mode of international strategic expansion. Since the 1970s IJV formation has grown at a growing rate, especially in developing countries. So I am interested in the topic from the research are Joint ventures and alliances in Macro OB/HR studies. Although this notable growth in the incidence of IJVs, relatively few studies have been undertaken in the context of the high-performing economies of the Association of Southeast Asian Nations.
Since this topic is categorized into sub-groups which one of them are inter-partner relationships that I think it seems interesting because I would like to study more as it is the significant factor which impact to the successful of the business. Since Thailand has been the major recipient among the ASEAN4 countries (Thailand, Malaysia, Indonesia and The Philippines) of foreign direct investment, (FDI) (UNCTAD, 2007) there are many cases of joint venture and inter-partner relationships ongoing in Thailand. Using this as my field of study, I would like to focus the topic of Inter-Partner Relationships and Performance of Joint Ventures in Thailand. The objective of the research is to further deepen the understanding of international joint venture and inter-partner relationships within Thailand and other countries. This can lead to understanding of the strong point of international joint venture and the weakness that needs to be improved on or to further define the problem to simpler to counteract the weakness of international joint venture.
There are many article provide the information of inter-partner relationships and performance Joint Ventures in Thailand which related to my topic field and can use to support. From all articles that I have read, I decided to choose The Importance of a Partner Relationship for an International Joint Venture (IJV) Success: Case Study of the Thai-Japanese IJVs in Thailand Industrial Sectors. The reason that I selected this article is its research methods and process. The analysis of this study is used from samples of Thai Japanese IJVs for quantitative study and other samples of IJVs firm for interview. The data was obtains from questionnaire and personal interview. The intention that the author choose to do research of Japan is because the largest group of foreign parent companies comes from Japan. The study has pointed out five prominent relational factors, based on the relational exchange theory, which supports concerned past research studies. There are five prominent variables was gathered into relational set of this study which are trust, commitment, communication, cooperation and IJV partners satisfaction with overall business performance (Robson et al., 2002). Understanding of IJV partner’s relationship is requiring a distinguishing between the discrete transaction, which has a ‘distinct beginning, short duration, and sharp ending by performance’ and ‘relational exchange’ which traces to previous agreement and long in duration, reflecting an ongoing process’ (Dwyer, 1987). Thus, the important of IJV partner relationship is for make an IJV long-term business survival. One of the predominant theories could be explained how these issues affect the overall performance of IJV is ‘relational exchange theory’ (Macneil, 1980, Macualay, 1963). Based on relational exchange perspective, IJVs partnership is a core part of inter-firms activities for establishing, developing, and sustaining successful IJV performance. The relational exchange theory considers IJV as a long-term relationship between local and foreign company. This relationship can be developed by both partners’ capabilities to commit necessary resources, joint decision, and equality in exchange relationship.
When two companies invest funds into creating a third, jointly owned company, that new subsidiary is called a joint venture. Because the joint venture can access assets, knowledge and funds from both of its partners it can combine the best features of those companies without altering the parent companies. The new company is an ongoing entity that will be in business for itself, but profits are owned by the parents. (Marzec, 2010) To further specify joint ventures, there is a type of joint venture called international joint venture (IJV). International joint ventures are legally and economically separate organization entities created by two or more organizations that collectively invest financial as well as other resources to pursue certain objectives (Schuler and Tarique, 2005). IJV is the most appropriate mode of international strategic alliance used by foreign firm to enter in uncertainty market whereby integration of foreign and local partner is urgently required (Arino and Reuer, 2004). Through further studies of IJV, there is a weakness in the strategies of IJV. The relationship between IJVs’ partners was identified as the main issues because IJVs fail due to poor partner relationship (Robson, Leonidou and Katsikeas, 2002). To strengthen the weakness of the IJV, the article called The Importance of a Partner Relationship for an International Joint Venture (IJV) Success: Case Study of the Thai-Japanese IJVs provided the strategy to improve the international joint venture. It stated that the success of IJV performance require partners to understand the formation of IJVs organization in all aspects. This is because IJV partners need to adopt each motive reasons applied for their business strategy.
From the explanations and the studies of IJV, Business Innovation Partners Co. Ltd (BIPC) will be used as an example to further define my study and prove that the IJV can be successful through all of the partners understanding the formation of the organization. There are many companies that invest in Thailand. BIPC is one of the examples, which is an international business matching trading service (Import/Export) management consulting. Their activities is development of local sales channels in South-East Asia Support and management for the establishment of factories in South-East Asia Market research in Asian countries Business matching between Japan and countries of South-East Asia Application for BOI Establishment of local branch Trading service (Import/Export) Accounting & Taxation Service. They have joint ventures in most part of the world like Europe, Africa, North and Latin America, even in Asia. One of their work achievement is a business meeting with about 50 companies of the Japan Die & Mold Industry Association supported by BIPC together with more than 30 companies from Singapore and more than 50 companies from Thailand was held. As the result, it looks that many result of negotiations in requests for quotes was completed. The business meeting that was held in Singapore got an article published in “The Daily NNA”, the Asian economic information magazine, which shows the great attention it received there. Mr. Jeffry Liu who is a manager at the business department of SBF Global concerned the essential of making partnerships with companies in Japan and gave an opinion that the main advantage of Japanese dies and molds manufacturers is their high technological strong point. Manufacturers in the same field in Singapore have a wide network of customers within their bound therefore these companies able to complete each other’s strengths.