Decision Making and Support Systems - Comparing American, Japanese and Chinese Management - Martinsons2007 PDF - PDF - Collectivism - Decision Making

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Decision Support Systems 43 (2007) 284 – 300
www.elsevier.com/loc
Strategic decision making and support systems: Comparing

American, Japanese and Chinese management 
Maris G. Martinsons a,1 , Robert M. Davison b, ⁎

ch12 Decision
a
Treeof Management,
Department Korea Facing:
City University of HongChapter 10Tat Chee Ave.,TOPIC
Kong, 83 6 Hong Kong, China
Kowloon, IKEA and Hof
b
Department of Information Secrets of Korea…
Systems, City University of Hong Kong, 83 Tat Chee Introduction to…
Ave., Kowloon, Hong Kong, China
Received 13 May 2005; received in revised form 4 October 2006; accepted 12 October 2006
Available online 22 November 2006
Abstract
Internationalization creates a need to know how managers in different parts of the world make decisions, and how comp
based information systems (IS) can support decision making. Business leaders from the United States, Japan and China wer
found to have a distinctive prevailing decision style that reflects differences in cultural values and the relative nee
achievement, affiliation, power and information. This paper examines the IS issues that arise from the discovery of the distinc
American, Japanese and Chinese styles of strategic decision making. The existence of international differences in analyzin
conceptualizing strategic decisions raises doubts about the global applicability of IS such as decision support systems and exe
information systems. The success of knowledge management and information systems in different countries and culture
depend critically on how well IT applications are adapted to the decision styles of their users.
© 2006 Elsevier B.V. All rights reserved.
Keywords: Strategic decision making; International differences; Culture; American management; Chinese management; Japanese mana
Decision styles; Critical success factors; Decision support systems; Executive information systems
1. Introduction (DSS), group support systems (GSS) and exe

information systems (EIS).
Decision making is a fundamental activity for Managers all over the world must make dec
managers. A leading textbook author has described it that significantly affect their organizations. How
as “ the essence of the manager's job” [68] and “ a critical differences in the socialization of managers an
element of organizational life” [69]. Meanwhile, a Nobel business environments that they face may affec
laureate suggests that decision making is synonymous their decision-making processes and the choice
with managing [74]. Many types of computer-based they make. The existence of different decision-m
information systems (IS) have been developed to support approaches has been recognized for decades [4
decision making, including decision support systems More recently, Rowe and Boulgarides ([72], p
assert that: “Knowing an individual's decision
⁎ Corresponding author.
pattern, we can predict how he or she will re
Tel.: +852 2788 7534; fax: +852 27888694.
E-mail addresses: mgmaris@cityu.edu.hk (M.G. Martinsons),
various situations”. This knowledge is also critica
isrobert@cityu.edu.hk (R.M. Davison). understanding of the extent to which, and h
1
Tel.: +852 2788 7958; fax: +852 2788 7220. manager may use an IS such as DSS, GSS or EIS
0167-9236/$ - see front matter © 2006 Elsevier B.V. All rights reserved.
doi:10.1016/j.dss.2006.10.005

M.G. Martinsons, R.M. Davison / Decision Support Systems 43 (2007) 284 – 300
As international interactions increase in frequency and adulthood [43]. Values influence the evaluation of
Relatedmanagers
titles make decisions in different parts of the world,
importance, there is a growing need to know how problems (e.g., is it serious? is it solvable?) and pote

solutions (e.g., is it worth trying? was it successful?
and how IT applications may support their decision- processes used to make choices; the developme
making activities. This paper focuses on the process of interpersonal relationships; the boundaries of and l
decision making rather than the preferred/chosen alterna- for ethical behavior; and the response to ext
tive(s) or the subsequent consequences (outcomes). It first pressures and extrinsic motivational forces (cf. [20
compares and contrasts the decision styles of top Different people have different values. Hofstede
managers in three of the world's largest national
economies – the United States, Japan and (the People's
studied the work-related values of IBM employe
over 60 countries and found huge variations. Nat

Republic of) China – and then considers how IT background (or societal culture) explained about h
applications can support each decision style. We thus the overall difference in these values. This was far
build upon the discovery of national differences in than the proportions explained by professional role
ch12 decision makingDecision Treespecific guidance
to provide Korea Facing:
for adopting Chapter 10 Given the
or gender. TOPIC 6
influence IKEA
of societal (or and
nati Hof
SecretsIS.
and adapting various decision-supporting of Korea…
Although values on how Introduction
decisions areto… made, internat
our study does not evaluate or compare the effectiveness differences in work-related decision making are expe
of different decision styles, we do consider the relative Cognitive perception is another major influenc
usefulness of IS such as DSS and EIS to support the styles decision making. The management of inform
of strategic decision making that prevail in American, inevitably involves judgment biases. These biases
Chinese and Japanese businesses. We expect to contribute to varying frames of reference and subjective
You're Reading
to the literatures on international business, information a Preview
pretations of situations which in turn determine
systems, and strategic management while also serving the responses to specific stimuli [5].
Upload your
needs of IS professionals and international documentsCognitive
business to download.
perceptions have also been found to d
managers. greatly across countries and continents. Given
We first review relevant subsets of the literatures on
OR geographic scope of our study, it is essenti
both human decision-making and decision-supporting recognize the key difference observed in trans-Pa
information systems. Second, we present our research experimental studies: East Asians typically think
design and method. Third, weBecome a Scribd
distinguish memberholistically
the three for full access. Your
and contextually whereas North Amer
national groups in terms of their decision styles. first 30 days are free.
Fourth, concentrate on foreground items and specific d
we discuss the implications of these differences for IT [60]. For example, when shown an image of a tige
applications such as DSS, GSS and EIS. We then note jungle, Americans tend to focus on the tiger (foregr
Continue for
the limitations of our study, identify opportunities for
Free
item) while their Japanese and Chinese counter
further research, and finally present a conclusion. tend to observe the jungle as a whole (general con
Meanwhile, a survey of Japanese found that
2. Literature review perceived Western (and particularly American) thin
to differ vastly from their own way of thinking [59].
2.1. Influences on decision making characterized Western thinking as objective, ana
cerebral, and impersonal as opposed to a self-perce
The process of decision making depends on many of subjective, synthetic, emotional, and personal th
factors, including “the context in which a decision is ing. The rigid Western distinction between the rat
made, the decision maker's way of perceiving and and the irrational has also been contrasted with
understanding cues, and what the decision maker values Japanese concept of omoi, which bridges the two [4
or judges as important ” [71]. Two of the most significant The differences in values and perceptions ca
influences on decision making are values and cognitive explained by cultural factors. Concepts such as h
perception. Both affect how a decision maker will chy, collectivism, and attention to context are
interpret and respond to particular stimuli and sets of important for East Asians, because they have presc
conditions [2,57]. For example, urgent and comprehen- roles and relationships within relatively complex
sive responses are more likely when situations are stable social networks [32]. In contrast, North Amer
perceived as threats rather than opportunities [17,22]. live in a simpler and less constraining social env
Values are integral to thoughts and actions. They are ment, enabling them to be more egalitarian, indivi
typically ingrained during childhood and then rein- istic, and less attentive to context. Since decision m
forced or refined by experiences during adolescence and will perceive and process new information based on

286 M.G. Martinsons, R.M. Davison / Decision Support Systems 43 (2007) 284 – 300
existing values and perceptions, significant differences Analytic decision makers have a strong ne
Related in
titles
work-related decision making are likely between achievement in the form of new challenges. They

Americans and Asians. greater tolerance for ambiguity than their dir
counterparts. Their comfort with cognitive comp
2.2. Decision-making styles strongly encourages data collection and proce
They make decisions slowly because they w
The psychology literature includes several proposals examine the situation thoroughly and consider
to classify different types of decision makers. For alternatives systematically.
example, Jung's [41] personality types spawned the
Myers-Briggs Type Indicator test while another classi-
Conceptual decision makers are achievement o

ed like their analytic counterparts, but crave ext
fication scheme dichotomizes introverts and extroverts rewards, such as praise, recognition, and indepen
[58]. More recently, Rowe and Boulgarides [71] They are comfortable with a high degree of cog
proposed a model of decision styles that recognizes the complexity and also have a strong people orient
ch12 influence ofDecision
values andTree Korea
perceptions. TheFacing:
model, shown Chapter 10
Conceptual TOPIC
decision 6 typically gather
makers IKEAinform
and Hof
Secrets are
in Fig. 1, suggests that decision makers of Korea…
driven by Introduction
from multiple sources to… many alterna
and consider
four forces. They tend to take a long-term perspective, exhi
The four forces – directive, analytic, conceptual, and considerable creativity and idealism.
behavioral – can be related to the typology of needs Behavioral decision makers are driven primaril
developed by McClelland [53]. McClelland initially need for affiliation. This type has a low cog
proposed that behavior is motivated by the needs for complexity, but a strong people orientation. Beha
You're
achievement, power and affiliation. Subsequently, he Reading a Preview
style managers tend to communicate easily and b
recognized that the need for achievement may be concerned with the well-being of their peer
satisfied in two different ways, eitherUpload your documents
intrinsically by to download.
subordinates. They are typically receptive to su
taking on new challenges or extrinsically by receiving tions, willing to compromise, and prefer loose con
praise and recognition. A Decision Style Inventory (DSI) was develo
OR
In the Rowe and Boulgarides typology [71], the measure the relative propensity to make use of th
primary need of directive decision makers is power. decision styles [72]. This instrument does not m
They are results oriented, butBecomealso wanta to
Scribd memberabsolute
dominate for full access.
values onYour
each style. Instead, scenario-
others. They have a low tolerance for ambiguity first 30 days are free.
and items are used to determine the relative scores of
prefer low levels of cognitive complexity. This prefer- an individual or a sample drawn from one popu
ence limits the amount of information that they gather compared to samples drawn from other populati
Continue for Free
and the number of alternatives that they consider. the population as a whole. Consequently, this instr
Fig. 1. Decision style model (adapted from [72]).

M.G. Martinsons, R.M. Davison / Decision Support Systems 43 (2007) 284 – 300
(which is presented in full and discussed further in [72]) Executive Information Systems (EIS) are inte
Relatedspecific
titlesindividuals or groups [6].
is useful to compare the decision-making styles of specifically for executives. They have been use

monitor and communicate company performance
The DSI has been tested extensively for validity, and to scan the business environment [3,19,54]. An
including split-half and test –retest reliability studies, can be described as a DSS that “(1) provides acce
item analysis, and correlation with other test instruments (mostly) summary performance data, (2) uses graph
(see [46] for a summary). Item –factor correlations and display and visualize the data in an easy-to-use fas
other indices of model adequacy have been examined and (3) has a minimum of analysis or modeling be
using samples from both Western and Asian populations.
The DSI's reliability and validity have been confirmed
the capability to ‘drill down’ in summary data to exa
components” ([54], p. 434). EIS enable manage

based upon the criteria of Robey and Taggart [70]. It has extract data on key performance indicators quickly
“a very high face validity and reliability. Respondents cleanly, and thus support the information gath
have almost invariably agreed with their decision styles phase of the decision-making process. EIS are valu
ch12 as shown on Decision Tree Korea
” ([72],
the test instrument p. Facing:
28). Chapter
tools10 for decision TOPIC
makers6 who want to IKEA and Hof
simplify
Secrets of Korea… Introduction
decision space without having toto…
lose their independ
2.3. Information systems to support decision making by communicating with peers or colleagues.
DSS, GSS and EIS are each more compatible
In addition to knowing how people make decisions, it some decision styles than others. We suggest th
is also important to understand how various types of IS analytic decision maker will benefit from both
can support human decision making. detailed analysis enabled by a DSS and the big pi
You're
Decision Support Systems (DSS) were first devel- Reading a Preview
perspective provided by an EIS. Meanwhile
oped in the 1970s, and have been used widely since the aggregated profile that an EIS provides will hel
PC revolution in the 1980s. DSS can Upload your documents
be described as to download.
directive decision maker to make decisions qu
“computer-based systems that help decision makers without encountering too much cognitive complexi
confront ill-structured problems through direct interac-
OR contrast, the conceptual decision maker's intere
tion with data and analysis models” ([54], p. 428). DSS exploring a wide assortment of what-if scenarios c
are designed to increase the speed and accuracy of data supported by a DSS and a GSS. Finally, behav
analysis, while reducing costs,Become
enabling athe
Scribd memberdecision
effective for fullmakers
access. Your
may appreciate the facility of the
first 30 days are free.
and efficient analysis of large volumes of quantitative to capture the ideas of many stakeholder groups. F
data. DSS were originally developed as tools for (see below) captures this compatibility and illust
managers, but they are now also used by many non- how a DSS, GSS and/or an EIS may lend itself m
management employees such as salespeople and
Continue for Free
readily to different decision makers.
purchasing officers. DSS are particularly valuable There have been many studies on the applicatio
tools in complex situations, where decision makers use of DSS, GSS and EIS in the United S
need to analyze multiple sources of data. Numerous textbooks, journals and websites are
Group Support Systems (GSS), formerly known as cated to this topic area. In contrast, research on
Group DSS, trace their origins to the 1970s, but have support decision making is much more limited in
been researched and developed extensively since the Japan and China. Several reports focus on
mid-1980s. GSS are networked systems that facilitate development issues in both China [9,11,75,77,85]
discussion by groups of proximate or distributed Japan [61,88]. Specific DSS applications have also
individuals synchronously or asynchronously. A GSS considered, particularly in China [21,24,76,90]. H
includes software tools designed to focus and structure ever, almost all of these papers focus on the applic
group deliberation, reducing the cognitive costs of of DSS for operational control rather than to suppo
communication as group members work collectively strategic decision making by top management.
towards a goal. The tools typically facilitate brainstorm- The GSS literature on China and Japan is simi
ing, idea organization and evaluation, and consensus limited. Reports on GSS in Japan tend to be base
formation. Participation can be identified or anonymous, anecdotal evidence or weak research designs. S
the latter often used when controversial topics are s tu di es h av e b ee n u nd er ta ke n i n H on g K
discussed, or when there is a need to protect the identity [12,13,14,16,44] and China [66,86], but they invo
of members [12]. While GSS are designed for group use, either students in experiments or operational-
managers can also use them to identify new ideas from issues in organizations: usage by senior executive
their employees. not been documented.
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