Clanism: definition and implications for human resource management.
| Verfasser | Minbaeva, Dana B. |
| Posten | RESEARCH ARTICLE |
Abstract:
* The objectives of this paper are: (1) to present and develop clanism as an indigenous management concept in Central Asia, and (2) to analyze the effect of clanism on a specific management function--human resource management (HRM)--in the concrete context of Kazakhstan.
* This exploratory study employs a qualitative research. The data indicate that the degree to which clanism affects HRM practices depends, to a great extent, on the type of company. Clanism's effect is strong in state-owned companies and moderate in privately held companies, while it is weak in the subsidiaries of multinational companies. Furthermore, the influx of western MNCs has influenced Kazakhstani HRM in general and lessened the influence of clanism on HRM. However, some characteristics of the local labor market may strengthen the effect of clanism on HRM practices.
* The paper proposes a definition of clanism; discusses the reasons for clanism's existence; investigates how clanism differs from other indigenous concepts, such as blat and guanxi; and analyzes how clanism affects HRM practices in Kazakhstan, a country that is strategically important for international management.
Keywords: Clanism * Kazakhstan * Human resource management * Indigenous concept
Introduction
If newly developed economies (e.g., in Asia, South America, and Eastern Europe) are novel contexts that differ from the regions in which the bulk of management theories originated, research in these contexts must involve some contextualization if the limits of existing theories are to be discovered or if new theories to explain local phenomena are to be developed. (Tsui 2007, p. 1357)
Why are indigenous management concepts essential to an understanding of management practices in emerging markets and transitional economies? The institution-based view of international business suggests that the formal institutions in emerging markets and transitional economies have less of an impact than the informal institutions that organize and govern those societies. Although some combination of formal and informal institutional frameworks shapes strategic choices (North 1990), advocates of the "third leg"[1] in the strategy tripod argue that "in situations whereby formal institutions are weak, informal institutions, such as norms governing interpersonal relationships, rise to play a larger role in driving firm strategies and performance" (Peng et al. 2008, p. 927). Therefore, in order to truly understand management practices in these economies, we must consider the powerful role of informal interpersonal social networks; how those networks adapt and change over time; and how they create, affect, constrain or undermine management practices in firms operating in these environments.
Thus far, much of the literature has focused on the importance of such indigenous concepts as guanxi in China and blat in Russia. Indian dharma and South African ubuntu have also entered the discussion. One indigenous concept that is essential for understanding management practices in the emerging region of Central Asia has not yet attracted the attention of management scholars. Western political scientists refer to this concept as clanism (see e.g., Schatz 2004; Collins 2006). In the political science literature, a clan is defined as an informal organization comprised of a network of individuals linked by immediate and distant kinship, and by fictive kin identities. While kinship ties (blood ties) are rooted in the extended family, fictive kinship ties include individuals that are part of a network as a result of marriage, family alliances, school ties, long-lasting friendships or neighborhood affiliations (Collins 2006).
Clanism has never been developed as a management concept and its implications for managerial practices have not been studied. This is unfortunate, as we believe that a deeper understanding of clanism as an indigenous management concept will contribute to debates on whether western managerial practices, ideas and concepts can coexist with local practices. Such an understanding will also provide guidance for local firms wishing to achieve rapid growth rates while retaining the local institutional order (Boisot and Child 1996, p. 607; Peng et al. 2008, p. 927). A study of clanism, therefore, responds to the call for Asian management researchers to "contribute to global management knowledge, and thus participate in global 'scholarly conversations' (Huff 1999) by developing theory or theoretically grounded models" (Meyer 2006, p. 121). Furthermore, theorizing on clanism's influence on management practices may also contribute to the debate on the assumptions inherent in traditional western views and theories of management (Cappelli et al. 2010).
An understanding of clanism and its implications for managerial practices is also crucial for multinational corporations (MNCs) operating in Central Asia. Since the collapse of the Soviet Union, oil, gas, mineral and energy reserves have made the region an attractive prospect for foreign direct investment. Hence, the region is of potential strategic importance to international businesses, especially petrochemical and mining organizations, seeking to expand into relatively untapped markets. However, our knowledge about regional management practices is highly fragmented. In this paper, we aim to develop clanism as a management concept indigenous to Central Asia, to theorize about the implications of clanism for managerial practices, and to emphasize the need for a dynamic approach in indigenous management research. The paper is structured accordingly. We first introduce the concept of clanism into management literature. We then consider the effect of clanism on a specific management function--human resource management (HRM). As our empirical focus, we consider the Republic of Kazakhstan--the largest country in Central Asia and the country that has attracted the most FDI in recent years. We then present our methodology and the results of our exploratory case study. We also discuss the limitations of our study, suggest possible avenues for future research and analyze the implications of our findings for managers of MNCs operating in Central Asia.
Cianism: A Definition
In our attempt to introduce the concept of clanism into management literature, we build upon existing--yet limited--contributions from political science research originated from both western countries and Kazakhstan. We also consider modern historical, ethnographical and cultural studies published in English and Russian.
In most modern languages, the term clan carries negative connotations. Clans are often understood as being in opposition to market democracy (e.g., the Suharto clan in Indonesia) or are simply dismissed as corrupt, even by scholars focused on Central Asia (e.g., Kleveman 2003). Political scientists typically adopt a more general approach and often associate the term with "informal institutions", "social networks", "reciprocal relations" and "interdependence". Although there is no precise definition, political science researchers generally refer to clanism as an informal social network characterized by an "extensive network of kin and fictive kin ties, or perceived and imagined kinship relations" (Collins 2006, p. 25).
As "identifiable mechanisms of identity reproduction" (Schatz 2004, p.xx), clans are embedded in and underlie macro-level historical, institutional and cultural factors. For example, clans were significantly more important than institutions in the organization of society in the post-Soviet transitional period (Collins 2006). However, clans do not determine macro-level outcomes per se. Instead, they shape and constrain the preferences and decisions of individual actors. Hence, we adopt the terminology of social theory (Coleman 1994) to suggest that clan networks should be regarded as meso-level actors in the institution-based view of international business.
Although clanism is also prevalent outside Central Asia,(2) clans have greater resilience and power in Central Asian societies than elsewhere. In an analysis of clan development in Central Asia from pre-Soviet society through Soviet "modernization" to the post Soviet period of transition, transformation and state building, Collins (2006) suggests an approach that puts clans at the center of a theory of political development. Clans, Collins argues, are "the critical informal organizations that we must conceptualize and theorize in order to understand politics in Central Asia and similar developing states" (Collins 2006, p. 7). Notably, Max Weber, who defined clans as a historically common form of social organization in the nomadic and semi-nomadic regions of Eurasia, the Middle East and parts of Africa, assumed that clans would disappear with the emergence of modern states and the rise of institutional politics. However, Collins sees clans as relevant long after the pre-modern era: "In fact, in many ways, clans are very modern organizations ... [and] exhibit the 'modernity of tradition' in their ability to adapt and persist from earlier to later political systems" (Collins 2006, pp. 43-44).
Collins (2006) suggests that three conditions evident in Central Asia have been critical to clan persistence:
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Late state formation, which was due, in large part, to Russian colonialism at the beginning of the twentieth century. Although pre-modern state structures were evident at the beginning of the twentieth century in the Fergana Valley region (modern Uzbekistan), the first modern state did not appear in the region until the establishment of Soviet Union.
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Late formation of a national (i.e., nation-state) identity. Throughout the 70 years of Soviet rule, the supra-national Soviet identity was promoted over all national identities.
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The absence of a market economy (and the prevalence of an economy of shortage), which persisted in the post-Soviet period, especially in the early 1990s. Umbetalieva...
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