Understanding organizational practice adoption at the Thai subsidiary corporation: antecedents and consequences of Kreng Jai.
| Verfasser | Andrews, Tim G. |
| Posten | RESEARCH ARTICLE |
Abstract:
* This study examines how, to what extent, and with what effect the indigenous cultural concept of kreng jai influences the Thai subsidiary assimilation of organizational practices transferred and mandated by its European-headquartered parent.
* Adopting qualitative methodological procedures we combined data sourced from interviews, observation and company information to explore empirically the continuing role and relevance of kreng jai on the adoption and use of three strategic organizational practices: Ecommunication, performance appraisal and empowerment.
* Our findings showed that the unique feelings and attitudes which characterize kreng jai variously complemented, reinforced, elaborated and contradicted the behaviors predicted by the traditional comparative etic dimensions of culture when applied to the Thai workplace environment.
* MNEs seeking to develop their operations in Asia can therefore benefit from an appropriately nuanced understanding of the influence of unique indigenous cultural norms and values to help manage effectively the often competing institutional pressures to which their subsidiaries are exposed. Failure to address adequately the subtle but pervasive facets of indigenous management constructs such as kreng jai may hold hidden but potentially critical dangers for the MNE developing its business across cultural borders.
Keywords: Kreng Jai * Thailand * MNE practice transfer * E-communication * Performance appraisal * Empowerment
Introduction
This study examines the foundations, nature and organizational consequences of the Thai indigenous construct of kreng jai. More precisely, we identify and explore the role and influence of kreng jai on the key organizational activities of performance appraisal, employee empowerment and intra-organizational email exchange among the indigenous subsidiary employees of a UK-headquartered services multinational. A major premise of this paper is that the implicit but important nuances of kreng jai are inadequately captured in the predominant, comparative cultural frameworks (e.g., Hofstede 2001) used to explain and predict Thai employee behavior. In this way our examination of this key indigenous cultural construct sheds important light on the subtle, often ill-understood determinants behind the relative success of 'western' business practice transfer in dissimilar subsidiary environments.
Thai business culture was selected for several reasons. Firstly, in line with other major Asian economies, Thailand expresses cultural characteristics which differ significantly from those predominant across the Anglo-US cultural context from which management theory was largely designed and promulgated (Hofstede 2001 ; Nimanandh and Andrews 2009). Secondly, and in contrast to its neighbors, Thailand has never been colonized by any other Western or Asian nation (e.g., Niffenegger et al. 2006). In this respect, below the surface--even with its democratic political system and pro-business economic policies-this ethnically relatively homogeneous nation has retained its language, culture and traditions largely intact through an unbroken history which spans over 1000 years (Yukongdi 2010). With what Andrews and Chompusri (200l, p. 78) refer to as 'qualitatively distinct' assumptions concerning appropriate business and management practice, Thailand provides, intuitively, fertile ground for the uncovering and explication of influential and prevalent emic cultural concepts in the face of converging global business technology, practices and values (e.g., Czinkota and Ronkainen 2009). Thirdly, despite periodic unrest Thailand remains a key driver of ASEAN economic evolution and has become a favored regional business hub for a host of foreign MNEs with its pivotal geostrategic location between territorial and maritime Asia (Andrews 2009). Fourthly, Thailand remains relatively understudied in business management research, with a marked paucity of academic investigation relating to the specific characteristics and challenges of Thai-based organizational practice (Yukongdi 2010). Finally, in addition to both authors working and residing in Thailand, we take advantage of our differing national backgrounds (Thai and European) to gain a complementary, holistic perspective on the influence of Thai indigenous culture at the European-headquartered corporate subsidiary.
Among the indigenous concepts which define and shape Thai business culture is kreng jai--often held to be the quintessential expression of Thai workplace interaction (Holmes and Tangtongtavy 1995; Komin 1990a, b). Notwithstanding its purported importance, however, kreng jai is a notoriously difficult cultural trait to explain, even for Yhais (Thamlikitkul 2008). Attitudinally, kreng jai revolves around an individual being considerate, of taking another person's feelings and ego into account (Yukongdi 2010). Behaviorally, kreng jai entails the individual seeking to restrain his/her own interest or desire in situations where there is the potential for discomfort, conflict or loss of face, and where there is a need to maintain a pleasant and cooperative relationship (Holmes and Tangtongtavy 1995; Nimanandh and Andrews 2009).
Kreng jai is a concept and practice so pervasive that the term is sometimes used as a synonym for Thai culture as a whole (cf. 'kreng jai culture'--Thamlikitkul 2008). It is estimated that more than a hundred master's theses have been written by students, dealing with the useful and detrimental effects of kreng jai on national development (Holmes and Tangtongtavy 1995). Furthermore the concept is practiced in the daily behavior of individuals of all ranks, and has a marked effect on the local boss-subordinate relationship (Yukongdi 2010). However, despite its prevalence and purported influence there is a continuing scarcity of empirical work examining, explicitly, the impact of kreng jai on the assimilation and usage of organizational practices.
In this study we investigate the role of kreng jai on the adoption of three organizational practices: E-communication, employee empowerment and performance appraisal. Although differing in terms of complexity and level of analysis these three practices are significant both practically--as of prime stated import to our participating organization--and theoretically, having been shown in the meager research conducted to date to be substantially influenced by indigenous Thai constructs and, in particular, kreng jai (e.g., Andrews et al. 2003; Andrews and Krairith 2009; Holmes and Tangtongtavy 1995; Mead and Andrews 2009; Nimanandh and Andrews 2009). The next section reviews the theory pertinent to the concept of kreng jai and its influence on employee behavior. We then present our empirical setting and methodological approach before we describe and explain how kreng jai impacts upon the three selected practices transferred from the UK parent setting. Implications for theory and practice are then discussed.
Theoretical Background
Notwithstanding the small base of research examining the impact of Thai work values on organizational employee behavior, one can state with some confidence that at the heart of Thai business culture stand the twin pillars of relationships and hierarchy which both characterize and delimit Thai workplace interaction (Holmes and Tangtongtavy 1995). These 'pillars' are captured to some extent within the comparative or 'etic' frameworks used to describe and predict Thai workplace behavior (see Sinkovics et al. 2008 for a summary of etic-emic orientations). For example, in expressing high power distance (Hofstede 2001) organizational relations in Thailand are characterized by considerable inequality between superiors and subordinates (e.g., House et al. 2004), a strong and pervasive respect for tradition and social order (Schwartz 1999) and the least assertive societal values in the Asian country cluster (Gupta et al. 2002). As a collectivist society Thai societal relations are fundamentally group-oriented and individuals define their identity by their relationships to others (House et al. 2004). The strong value of relationships is expressed in the importance ascribed to loyalty, (expressed more towards individuals than to the organization) which often takes precedence over formal, written societal rules and regulations (Komin 1990b; Trompenaars and Hampden-Turner 1997; Yukongdi 2010).
Recent empirical work examining the nature of the superior-subordinate relationship in Thailand--for example leadership style and subordinate commitment (Limsila and Ogunlana 2007) and upward influence strategies (Ralston et al. 2005)--reiterate the importance of Thailand's hierarchical social system as a key explanatory influence alongside the traditional, paternalistic style of indigenous management in which the boss provides direction, protection, and emotional support for his colleagues and staff (Holmes and Tangtongtavy 1995).
In expressing--as well as preserving--these norms and values the subtleties of the Thai language acknowledge differences in rank, age, social distance and the intimacy of a relationship in their everyday workplace interaction (Holmes and Tangtongtavy 1995). As a 'high-context' culture (Hall 1983; Nimanandh and Andrews 2009) a relatively significant part of any indigenous Thai communication is vested in the context which surrounds the message rather than the actual spoken or written content (Mead and Andrews 2009). High-context communicators draw heavily on the situational context to discern accurately what the other person means through tacit, non-verbal, personalized cues which characterize indigenous FtF (face-to-face) exchange. In this way to outsiders Thai indigenous interaction can seem 'disarmingly indirect', especially as most Thais (and Asians generally) are reluctant to advance personal opinions or attitudes (Holmes and Tangtongtavy 1995, p. 22).
Thai workplace behavior is refined further through several...
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