Strategic decision making and support systems: Comparing American, Japanese and Chinese management

1. Strategic decision making and support systems: ComparingAmerican, 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

2. Abstract • 動機： • Internationalization • How managers make decisions in different parts of the world • how computerbased information systems (IS) can support decision making • distinctive prevailing decision style • differences in cultural values • needs for achievement, affiliation, power and information • 結論 • The success depend critically on how well IT applications are adapted to the decision styles of their users

3. Introduction • Decision-making • is a fundamental activity for managers • the essence of the manager's job • a critical element of organizational life • is synonymous with managing

4. Introduction • Decision-making • Use IS • Decision support systems (DSS) • Group support systems (GSS) • Executive information systems (EIS)

5. Introduction • Managers vs Decision-making • Decisions affect their organizations • Socialization and business environments both affect processes and choices • Knowing decision stylepattern predict how he or she will react to various situations

6. Introduction • focuses on the process of decision making • compares and contrasts the decision styles • how IT applications can support each decision style • discovery of national differences • provide specific guidance for adopting and adapting various decision-supporting IS

7. Literature review • Influences on decision making • Decision-making styles • Information systems to support decision making

8. Literature review • Significant influences • values • cognitive perception

9. Literature review • values • Context、way of perceiving and understanding cues、values or judges as important [71] • Values[43] • ingrained during childhood • refined by experiences during adolescence

10. Literature review • values • 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

11. Literature review • values • National background (or societal culture)[30] • IBM employees example • 60 countries about 116,000 • National background (or societal culture) far more than the proportions explained by professional role, age,or gender

12. Literature review • cognitive perception[5] • The management of information inevitably involves judgment biases • varying frames of reference and subjective • determine our responses

13. Literature review • cognitive perception[60] • Differ greatly across countries and continents • East Asians typically think more holistically and contextually • North Americans concentrate on foreground items and specific details • For example：tiger in a jungle

14. Literature review Significant influences

15. Literature review • Decision-making styles • introverts and extroverts • directive, analytic, conceptual, and behavioral

16. Literature review • McClelland [53] • behavior is motivated by the needs for achievement, power and affiliation • achievement may be satisfied in two different ways, • intrinsically by taking on new challenges • extrinsically by receiving praise and recognition

17. Literature review

18. Literature review • Decision Style Inventory (DSI) • Split-half and test-retest reliability studies • Item analysis • Correlation with other test instruments • A very high face validity and reliability

19. Literature review • Decision-making • Use IS • Decision support systems (DSS) • Group support systems (GSS) • Executive information systems (EIS)

20. Literature review • Decision Support Systems (DSS) • Developed in the 1970 , used widely in the 1980s • computer-based systems • help decision makers confront ill-structured problems • speed and accuracy of data analysis • originally for managers, now for nonmanagement • valuable tools in complex situations,ex.multiple sources of data

21. Literature review • Group Support Systems (GSS) • origins to the 1970s, researched since the mid-1980s • networked systems • group use • reducing costs of communication • brainstorming,idea organization and evaluation, and consensus formation • identified or anonymous(on controversial topics) • manager use it to identify new ideas from employees

22. Literature review • Executive Information Systems (EIS) • for executives • access summary performance data • uses graphics to display and visualize the data • Enable ‘drill down’ in summary data • extract data on key performance indicators • simplify their decision space without having to lose their independence

23. Literature review • Decision styles VS DSS, GSS and EIS

24. Research context • strategic decision making is neglected • Schwenk suggest “that many of the conclusions about strategic decision making developed in the U.S. context will have to be modified in order to be applicable across cultures.”

25. Research context • cross-cultural differences influence on decision making • cultural values are likely to exert a significant influence on decision making • examining cross-cultural differences, was helpful totheorize how business leaders from the U.S.,Japan and China may differ in their decision making

26. Research context • four dimensions of work-related values influence on decision making • Power distance (PD) • Individualism/collectivism (IND) • Masculinity/femininity (MAS) • Uncertainty avoidance (UA) • The Hofstede and GLOBE scores shown in Table 1 and 2.

27. Theory and hypothesis • Power distance and individualism-collectivism • Uncertainty avoidance and performance orientation

28. Theory and hypothesis • PD and IND • Hofstede • PD score：China > Japan > U.S. • Individualism score：U.S. > Japan、China

29. Theory and hypothesis • PD and IND • Triandis

30. Theory and hypothesis • PD and IND hypothesized

31. Theory and hypothesis • UA and performance orientation • Hofstede • UA score：U.S. < Japan

32. Theory and hypothesis • UA and performance orientation • GLOBE • UA score：China > U.S. & Japan • Performance orientation：U.S > China & Japan

33. Theory and hypothesis • UA and performance orientation hypothesized

34. Method and sample

35. Method and sample • Decision style instrument (DSI)

36. Differences in decision styles

37. Differences in decision styles Scores on the decision style inventory

38. Differences in decision styles

39. Differences in decision styles

40. Differences in decision styles

41. Differences in decision styles

42. Differences in decision styles Pairwise t-test comparisons

43. Japan and China • Chinese business leaders • Less likely to rely on IT applications • Strong preference for social hierarchy • Top-down control • Strategic decisions preferred informal personal reporting • Valued the discretion to disregard some decision criteria • Weighting based on their personal judgment and past experience

44. Japan and China • Japanese business leaders • Wide access to EIS and selective adoption of GSS • Favor non-traditional IT application • Acceptance of tacit knowledge management • Group welfare outweighs individual needs

45. Anglo and Far Eastern/Confucian cultural clusters

46. Further research • Different situations • Effectiveness of different decision styles • Decision support tools • International differences in fundamental management activities

47. Conclusions • IT applications • Bottom-up aggregation of data • Top-down communication • Decisions will be appropriate • Global IS • Flexibility • Accommodate different decision styles • Accommodate decision-making

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