JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP

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1 VOLUME 1, NUMBER 1 JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP ISSN FALL 2009 PUBLISHED ONLINE MARCH 2010 Intercultural Competence in Leadership Education: Keys to Educating Global Leaders... Justin A. Irving The Role of Positive Organizational Behavior: A Conceptual Model... Renin Varnali The Equity in Athletics Disclosure Act and the Accounting Information: Is Information Resulting in More Equity?...Carol Sullivan Virtue as a Foundational Element in Global Business Education... Mark W. McCloskey A Transdisciplinary Andragogy For Leadership Development in a Postmodern Context: Preliminary Findings... Elaine M. Saunders Developing Online Customer Trust... David R. Wheeler and Susan Atherton Opportunities in International Accounting Education Presented by the Current Financial Crisis... John E. Simms Globalization of the Anglo-Saxon Model of Higher Education: Implications for Growth and Development of the Knowledge Economy...Stephen P. Wanger, Zarrina K. Azizova, and Meng Wang Requisite Values for the New Global Instructor... Gary Oster and A. Gregory Stone Education and Emancipation of Kenyan Women in the Modern Era... James M. Mbuva A REFEREED PUBLICATION OF THE AMERICAN SOCIETY OF BUSINESS AND BEHAVIORAL SCIENCES

2 JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP P.O. Box , San Diego, CA : Tel ISSN Editor-in-Chief Wali I. Mondal National University Managing Editor Cheryl L. Prachyl University of North Texas at Dallas Justin A. Irving Bethel University Editorial Board Elaine Saunders University of South Africa Carol Sullivan Texas Wesleyan University James M. Mbuva National University James J. Divoky University of Akron Mike Pickett National University The Journal of Business and Educational Leadership is a publication of the American Society of Business and Behavioral Sciences (ASBBS). Papers published in the Journal went through a blind-refereed review process prior to acceptance for publication. The editors wish to thank anonymous referees for their contributions. The national annual meeting of ASBBS is held in Las Vegas in February of each year and the international meeting is held in September of each year. Visit for information regarding ASBBS. 1

3 JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP ISSN Volume 1, Number 1 Fall 2009/MARCH 2010 TABLE OF CONTENTS Intercultural Competence in Leadership Education: Keys to Educating Global Leaders Justin A. Irving... 3 The Role of Positive Organizational Behavior: A Conceptual Model Renin Varnali The Equity in Athletics Disclosure Act and the Accounting Information: Is Information Resulting in More Equity? Carol Sullivan Virtue as a Foundational Element in Global Business Education Mark W. McCloskey A Transdisciplinary Andragogy For Leadership Development in a Postmodern Context: Preliminary Findings Elaine M. Saunders Developing Online Customer Trust David R. Wheeler and Susan Atherton Opportunities in International Accounting Education Presented by the Current Financial Crisis John E. Simms Globalization of the Anglo-Saxon Model of Higher Education: Implications for Growth and Development of the Knowledge Economy Stephen P. Wanger, Zarrina K. Azizova, and Meng Wang Requisite Values for the New Global Instructor Gary Oster and A. Gregory Stone Education and Emancipation of Kenyan Women in the Modern Era James M. Mbuva

4 Vol. 1, No. 1; Fall 2009/March 2010 INTERCULTURAL COMPETENCE IN LEADERSHIP EDUCATION: KEYS TO EDUCATING GLOBAL LEADERS (Keynote address from February 2009 ASBBS Conference) Justin A. Irving Bethel University INTRODUCTION It is a pleasure to be with you this evening. I bring you warm greetings from the cold state of Minnesota and Bethel University where I serve as an administrator and faculty member. In addition to extending my gratitude to colleagues at Bethel University for providing a community in which my academic interests may be expressed, I wish to offer my special thanks to the leadership of the American Society of Business and Behavioral Science, and to Wali Mondal in particular, for providing this ongoing avenue for scholarly engagement with colleagues from around the world. The theme of this year s conference is focused on Globalization and the Future of Business Education. In light of the current market realities we are facing in 2008 and 2009, this audience need not be convinced of the realties of globalization. More than ever before in history, the effects of globalization are being experienced around the world. Even as I originally drafted my work for this presentation in the fall of 2008, an RSS News Feed from MSNBC announced on my computer s desktop, World Stocks Fall on Economic Fear. This news feed went on to note that European stock markets opened sharply lower Wednesday following losses in Asia amid spreading pessimism over corporate earnings around the world. As one such report among many in our time, it is easy to quickly identify the interdependent nature of our world and global economies. With the rise of globalization, so rises the need for leaders with global perspective and intercultural competence to meet these growing challenges and opportunities. In light of this, in our time together this evening we will be focused on four areas: (a) understanding the effects of globalization, (b) exploring theoretical approaches to the understanding of culture and the development of intercultural competence in global leaders, (c) presenting one school s approach to educating leaders in intercultural competence, and (d) providing recommendations for leadership educators aiming to meet the urgent need of preparing leaders to serve well in the face of globalization. 3

5 Irving GLOBALIZATION While cross-cultural interactions have been taking place for thousands of years, it is only within recent decades and the past century that the societies of the world have become more accessible. Advances in aviation arguably served as one of the first quantum leaps toward the present state of globalization we now experience. Alongside advances in transportation, however, the quantum advances in technology and communication driven by the introduction of the World Wide Web to public use have provided a powerful host for bringing the peoples of the world into closer proximity and accessibility. Advances such as these are increasing the ease with which peoples and societies may learn from and work together with people from other cultures. In a treatment of negotiation in cross-cultural contexts, Beneke (1983) provides an early look at globalization trends. In this work, Beneke cautions the international business traveler to not mistake the presence of touristic fares that make people feel at home with a universally homogeneous global culture. As I have taken in many of theses fares myself experiences such as Pizza Hut and McDonalds on multiple continents, or Kentucky Fried Chicken in Shanghai I have had to remind myself that while there are an increasing number of global brands, this does not translate into a homogeneous global culture. The presence of globalization forces us to see and embrace an increase of both similarities and differences in such intercultural interactions. With the addition of such complexities, it becomes even more important that global leaders understand the unique skills needed to lead in a global environment. Javidan (2008a) argues that those working cross-culturally in a global environment have two major responsibilities. First, these individuals need to understand their own cultural lens. Second, and based upon the first, if individuals want to influence cross-culturally, they need to understand the other s cultural lens. While these reminders may be fairly basic, when missed, things can go very wrong. Javidan reminds us that cultural lens are like electricity; we really only pay attention to it when we don t have access to it. But to be effective in unique cultural contexts, we must begin with a commitment to learning about other cultures, and then bring with this learning a willingness to adapt our behavior in light of what we have learned. Such skills are not always intuitive for leaders engaged in globally oriented work, and reinforces that the need for specialized education whether formal or informal focused on developing intercultural competency is vitally needed in our day. Noting that no American corporation is immune from the impact of globalization, Javidan, Dorfman, Sully de Luque, and House (2006) argue for the priority of understanding global leadership as a critical success factor for large multinational corporations. Arguably, these comments are not just for the large multinational. Even smaller companies and organizations are increasingly touched by the impact of globalization. Large and small organizations alike are facing the reality that the global perspective of their leaders and managers is not sufficient to meet the demands of globalization. In fact, one report indicates that 4

6 while the demand for global business understanding continues to grow, nearly 85% of fortune 500 companies have reported a shortage of mangers with the necessary global skills (Gregersen, Morrison, & Black, 1998). This same report indicates that having competent global leaders was a highest priority concern for corporations when looking at factors for business success. In fact, the need for competent global leaders was rank higher than even adequate financial resources or technology, showing just how significant this consideration is for prominent corporations working to meet the demands of globalization. CULTURE AND LEADERSHIP When looking at the discipline of leadership studies, it is easy to see why a focus on intercultural competence is necessary for successful initiatives in the global context. Klenke (2008) argues that leadership is essentially a relational practice. The relational dimension of leadership is further emphasized by ASBBS own Stone and Patterson (2006) in their overview and history of leadership studies movement toward follower-focused orientations. As followerorientation in leadership becomes more of a dominant leadership paradigm and this coupled with the widening cultural spectrum of followers and organizational constituencies the need for intercultural competence grows dramatically. As a relationally-focused endeavor, leadership and leaders must be able to understand and effectively communicate with individuals of their own and divergent cultural backgrounds. Lest we quickly dismiss this discussion of intercultural competence as something only needed for organizational leaders who physically travel to foreign sites, we must remind ourselves of the increasing cultural diversification within and around our organizations. With the onset of virtual and multinational teams, organizational members need to quickly learn a new set of competencies in how leadership within such teams is effectively carried out. Marquardt and Horvath (2001) argue that, Leaders around the world are now recognizing the critical importance of global teams as the key to future competitiveness and productivity in today s new networked-style global organization (p. 3). The need for globally minded and interculturally competent leaders is not only a reality in virtual global teams; it is needed in the multicultural context of regional teams and organizations as well. With the cultures of the world around and within even local expressions of our organizations, some authors are beginning to utilize the creative language of glocalization to emphasize that global influence is now a local reality. The central question for leaders then is how do we best prepare our organizational members to meet this unique opportunity? In order to engage this question, we will focus on the nature of culture and intercultural competence, and I will argue that preparing leaders to become interculturally competent is one of the best approaches to meet this challenge of our day. 5

7 Irving THEORETICAL APPROACHES: HOFSTEDE Hofstede's approach to the study of culture is based on the concept of culture as consisting of dimensions that may be predictive of behavior. In his original study, Hofstede focused on a group of IBM middle managers across 53 countries. In his groundbreaking work, Hofstede found four primary cultural dimensions: (a) power distance, (b) individualism-collectivism, (c) uncertainty avoidance, and (d) masculinity-femininity. As Hofstede continued to study cultural dimensions, he eventually identified a fifth dimension, which was labeled long-term orientation. Hofstede s work has been criticized for, among other things, being focused on only one company and inattentive to in-country differences, even with such criticisms in view, Hofstede s work was groundbreaking and has been a dominant paradigm in the study of culture and leadership up to the time of the GLOBE project. THEORETICAL APPROACHES: GLOBE The Global Leadership and Organizational Behavior Effectiveness (GLOBE) project is the most extensive study of leadership from a global perspective to date. With 160 social scientists and management scholars from over 60 cultures representing most, if not all, major regions in the world the GLOBE project worked with over 17,000 middle managers from over 900 corporations in these 60 plus countries. Focused on the food processing, finance, and telecommunication industries, the GLOBE project engaged in a long-term programmatic series of cross-cultural leadership studies. As such, GLOBE is described as a multi-phase, multi-method project in which investigators spanning the world are examining the interrelationships between societal culture, organizational culture, and organizational leadership (House, Javidan, Hanges, & Dorfman, 2002, p. 4). In discussing the notion of culture, Javidan (2008a) emphasizes that without common experiences, there is no common culture. One of the unique components of the GLOBE study is the differentiation of cultural values and cultural practice. In other words, GLOBE desired to evaluate both how things are done in a culture, and how that culture describes how they should be done. It is a contrast between the should be and the as is, and what the GLOBE project refers to as modal values and modal practices. Built upon Hofstede s study of culture, the GLOBE project utilized nine dimensions of culture. In addition to the nine dimensions of culture, the GLOBE project utilized six global leadership dimensions of culturally endorsed implicit theories of leadership. In examining the relationship between cultural and leadership dimensions, substantial evidence has been established indicating that leader behavior, attributes, and influence significantly vary due to the influence of unique cultural dimensions in diverse contexts (House, Wright, & Aditya, 1997). 6

8 THEORETICAL APPROACHES: GLOBAL MINDSET Based upon the GLOBE study, Javidan and the Thunderbird School of Global Management have begun work on the construct of Global Mindset. In this work global leadership is viewed essentially as the process of influencing culturally distinct individuals and groups. Javidan argues that global mindset is an essential key to successful global leadership. Based upon this, he defines global mindset as, the ability to influence individuals, groups, organizations, and systems that are unlike the leader s (Javidan, 2008c), and further notes that global mindset is essentially a set of individual attributes that enable and facilitate global leadership. What are the core attributes associated with global mindset? Presenting on the theme of global mindset, Javidan (2008b & 2008c) provided a summary of the three essential core attributes of the construct: (a) Intellectual Capital, (b) Psychological Capital, and (c) Social Capital. While multifaceted, Intellectual Capital is focused largely around industry specific knowledge, cognitive complexity, and general cultural acumen. Psychological Capital includes themes such as passion for diversity, self-efficacy, and quest for adventure. Also multifaceted, Social Capital includes both structural dimensions such as global connectivity and relational dimensions such as interpersonal competence, which is focused on the priority of building trusting relationships in multiple cultural contexts. Based on this work, the Thunderbird Global Mindset Inventory (GMI) has been developed as a means of self-assessing global mindset. In the field of cultural studies, there is sure to be more attention brought to the work of global mindset and the GMI in coming days. The study of global mindset is moving in a particularly interesting direction as GMI results are being compared to leader brain maps through neurologically driven studies. THEORETICAL APPROACHES: INTERCULTURAL COMPETENCE A theoretical approach to culture that has gained increasing attention over the past two decades is Bennett s (1986, 1993b) Developmental Model of Intercultural Sensitivity (DMIS). Bennett s model is designed to provide an interpretive grid for understanding an individual s development in their orientation toward cultural difference and is inclusive of three ethnocentric and three ethnorelative categorical orientations. Hammer, Bennett, and Wiseman (2003) argue that the DMIS constitutes a progression of an individual s worldview. The model begins with the ethnocentric categorical orientations of (a) Denial, (b) Defense/Reversal, and (c) Minimization. As one s worldview shifts to ethnorelative categories, the orientations in the DMIS are (a) Acceptance, (b) Adaptation, and (c) Integration. As a model of intercultural sensitivity focused on the development of intercultural competence, it is important to understand how core terms are utilized. Intercultural sensitivity may be understood as the ability to discriminate and experience relevant cultural differences. Related to this, intercultural competence may be understood as the ability to think and act in interculturally 7

9 Irving appropriate ways (Hammer, Bennett, & Wiseman, 2003). Central to the DMIS is the understanding that increased intercultural sensitivity is associated with increased intercultural competence (Hammer, Bennett, & Wiseman). In light of this, those interested in the development of intercultural competence within leaders rightly are to be focused on the development of intercultural sensitivity focused on the leader s ability to identify and experience relevant cultural differences. While this snapshot of the DMIS is helpful, it is important to understand the basic definitional categories in the model. Hammer, Bennett, and Wiseman (2003) provide a helpful overview of these categories. In the DMIS, the ethnocentric category of Denial refers to a state in which one s own culture is experienced as the only real culture, and thus, cultural difference is not really experienced at all. Beyond Denial, the ethnocentric category of Defense refers to a state in which one s own culture is experienced as the only viable culture; while a person in this category is able to discriminate cultural difference, the cultural difference is usually interpreted from a perspective that is negative, stereotypical, or polarizing. A variation on Defense is Reversal a state in which a person s adopted culture is experienced as superior to one s initial cultural experience. The final ethnocentric category of Minimization refers to a state in which one s own cultural worldview is experienced as universal. In this state, cultural difference is subordinated to global similarities, and thus distinct cultures tend to be either trivialized or romanticized. Hammer, Bennett, and Wiseman (2003) go on to describe the ethnorelative categories. The ethnorelative category of Acceptance refers to a state in which one s own culture is experienced as just one of a number of equally complex worldviews. Individuals with this worldview are able to experience others as different from themselves, but equally human. Next, the ethnorelative category of Adaptation refers to a state in which the experience of another culture yields perception and behavior appropriate to that culture. Individuals with this worldview can engage in empathy, and are able to express alternative cultural experiences at the cognitive, affective, and behavioral levels. This state becomes the basis for biculturality and multiculturality. The final ethnorelative category of Integration refers to a state in which one s experience of self is expanded to include the movement in and out of different cultural worldviews. At this category, the themes of encapsulated and constructive marginality are emphasized by Bennett (1993a). While the university as a whole where I serve utilizes multiple models for the development of cultural awareness among its students, faculty, and staff, the particular school at which I serve within our university has adopted the Developmental Model of Intercultural Sensitivity as the primary theoretical basis in our work in addressing the needs of globalization. Beyond the DMIS being a theoretically rich model, it also provides a model that is tied to research instrumentation that may be utilized developmentally with individuals. This instrument the Intercultural Development Inventory (IDI) has been developed based on the DMIS in order to provide a reliable and valid measure of the 8

10 model s constructs. As such, it takes that which can be a subjective area of study and provides more objective measures for organizational members to consider as they work on their own developmental progress around intercultural competence. Because of this, the DMIS and the IDI have played a significant role in our university s approach to addressing the need for intercultural competence among our students, faculty, and staff. EDUCATING FOR GLOBAL LEADERSHIP While most business leaders and leadership educators agree that preparing people for the demands of globalization is vitally important, the question of how this education is best carried out is often not as clear. While our institution is by no means a perfect example of how to approach this need, we are aiming to take the reality of globalization and the need to develop interculturally competent leaders seriously. In light of this I will briefly present some of the features of our school s approach for the purpose of encouraging other institutions in their journey toward intercultural competence along with us. As we look at this one example, I first want to emphasize that a need of this magnitude will likely not be addressed through a single method approach. Rather, educating for intercultural competence must take a holistic and multidimensional approach that focuses both on the often intrapersonal cognitive and affective levels as well as the relational and behavioral levels of interpersonal experience. In reality, the line between the intra- and inter-personal realms is often not as clear in practice; ultimately, a holistic approach encourages both personal reflection and relational engagement. Practically, the focus on intercultural competence in our institution takes on complementary, but distinct approaches for our faculty and students. The following is an overview of our efforts as a school in this area. Strategic Initiatives: Our school has adopted a focus on increasing intercultural competence at the level of our strategic initiatives. This strategic initiative one of six current strategic drivers was proposed by our Provost and approved by our President and Board of Trustees. We have found that this institutional level of ownership and support has been vital in making a focus on intercultural competence a priority from a systems perspective. Without broad ownership and support, such initiatives will face many challenges institutionally. Intercultural Development Inventory: The IDI has been taken by the entire faculty in our school. Faculty level discussions on the results from the IDI have been ongoing, and faculty members have had the opportunity for reflective work on their own intercultural development. This has been very important as the IDI has been administered to our students as well. In addition to providing a common language for faculty and students dialoging around this vital topic, faculty involvement at this level has emphasized for our students the priority of attending to our own development around intercultural competence. Students and faculty alike have been encouraged to thoughtfully and reflectively process the results of the IDI, and most have 9

11 Irving affirmed the valuable role of the IDI in addressing this focus on intercultural development. In Class Emphasis: As a culture is being developed around the use of the DMIS and the IDI among faculty, staff, and students, it has become easier to incorporate topics addressing intercultural competence into the classroom experience for students. While we have one required class wholly focused on issues surrounding intercultural relations and intercultural competency development, this common focus has also provided our school with a capacity for faculty to include conversations around intercultural competence in courses focused on other subject areas. For instance, in a course focused on developing students' understanding and capacity for working in teambased and collaborative environments, concentrated attention is given to the global dynamics surrounding virtual and multinational teams. Intercultural Experience: While the school s commitment at the previous levels is significant, these commitments are incomplete without also encouraging intercultural experiences for faculty and students alike. At a faculty level, the school has provided a grant fund to which faculty may apply for funds for the purpose of engaging in cross-cultural teaching experiences. Through this in conjunction with global partner institutions faculty members are provided a means for gaining significant intercultural experience. This program has been one of the most effective ways of providing faculty with a means for applying their intercultural development studies. More significantly, the experiences that faculty have naturally find their way back to the classroom at the university, thus providing students with the benefit of globally influenced faculty and helping to work toward our aim of developing interculturally competent leaders. In addition to this, students are likewise encouraged to engage in intercultural experiences both locally and internationally. These experiences come in the form of both formal and informal opportunities. Some of our students join faculty or travel independently for short-term international experiences, while others select longer term cross-cultural learning experiences. Additionally, students are encouraged to engage in local intercultural opportunities as well, and through some of our courses, students participate in organizational and community oriented site visits in culturally diverse settings. Through these and other formal and informal intercultural experiences, the school aims to reinforce student learning that has taken place in the classroom setting through outside intercultural experiences. As one point of empirical support for our school s use of the IDI and a specific course focused on the development of intercultural competence, a comparison group quasi-experimental study was used to measure student growth in intercultural competence. In this evaluation, we found that the data indicated significant student growth in intercultural maturity. While 92% of the students in this study were categorized in ethnocentric categories in the DMIS during pretests, following the course intervention, zero percent of the students were found 10

12 to be in the DMIS categories of Defense and Denial, and over 50% of the students were found to be at a satisfactory level of intercultural competency, up from 8% prior to the course intervention (Harden & Sandage, 2008). A COMMITMENT TO BUILDING INTERCULTURAL COMPETENCE House (2004) reminds us that, Ample evidence shows that cultures of the world are getting more and more interconnected and that the business world is becoming increasingly global (p. 1). With this reality facing leadership educators, we cannot afford to ignore the need and opportunity before us. In light of this, allow me to provide some recommendations for leadership educators who care about preparing students to serve in our world during this time of increasing globalization. First, and quite basically, doing something for our students is better than nothing. It is easy to compare our educational institutions to other schools. While this is beneficial for the purpose of gaining new ideas and finding encouragement for addressing the needs of globalization with our students, it can also lead to a type of institutional paralysis that makes us feel we cannot compete with larger faculties or larger endowments. When this perspective sets in, we must remind ourselves that our students desire the best we can offer them as faculty and as educational institutions. We must do what we can with the resources that are available to us. As LaFasto and Larson remind us, "the fundamental law of success is this: Action is more likely to succeed than inaction" (2001, p. 22). Second, aim for a holistic approach that engages both the cognitive and experiential needs of developing intercultural competence. Experience without insight can be helpful, but it may lead to reactions driven by stereotyping and result in further resistance to intercultural engagement. Similarly, cognitive engagement without experience can stretch students intellectually, but runs the risk of leaving students with unrealized theories that are uninformed by relational and intercultural encounters. When intercultural competency development takes the cognitive and the experiential dimensions of education seriously, there is great promise for students maturing in intercultural competence. Finally, it's important that we measure what matters. Successful businesses do not fail to measure their bottom lines. Educational institutions must not exempt themselves from measuring what matters around intercultural competence. If the development of interculturally competent global leaders is one of the highest priorities for today's organizations, educational institutions need to identify ways of measuring student learning outcomes around this area. In our school, we have identified the IDI as the primary tool for accomplishing this. Your institution may land on another tool for measurement, but I would challenge institutions to ask the hard question of how they are measuring what matters in this realm of student intercultural development. SUMMARY & CONCLUSION As organizations continue to experience both the opportunities and challenges surrounding globalization, the need for intercultural competence and 11

13 Irving leaders who possess this competence will be increasingly important. In this article, intercultural competence has been presented as an essential skill necessary for leaders and organizations that desire to meet the unique demands of global interconnectedness. In addition to engaging the unique features of globalization and several key approaches to understanding culture and leadership, special attention has been given to recommendations for how educational institutions may approach the development of interculturally competent emerging leaders. As institutions of higher education continue to prepare these leaders for diverse organizational roles, the importance of strategies such as these will become increasingly vital. I trust that the recommendations provided in this article will help educational and organizational leaders as they work to meet the unique challenges and opportunities of globalization during this time in history. God bless you, and thank you very much. REFERENCES Beneke, J. (1983). The Value of Cultural Studies in the Training of Cross- Cultural Negotiators. Euorpean Journal of Education, Volume 18, Number 2, Bennett, J. M. (1986). Towards Ethnorelativism: A Developmental Modal of Intercultural Sensitivity. In R. M. Paige (Ed.), Cross-Cultural Orientation: New Conceptualizations and Applications (pp ). New York: University Press of America. Bennett, J. M. (1993a). Cultural Marginality: Identity Issues in Intercultural Training. In R. M. Paige (Ed.), Education for the Intecultural Experience (pp ). Yarmouth, ME: Intercultural Press. Bennett, J. M. (1993b). Towards Ethnorelativism: A Developmental Model of Intercultural Sensitivity. In R. M. Paige (Ed.), Education for the Intercultural Experience (pp ). Yarmouth, ME: Intercultural Press. Gregersen, H.B., Morrison, A.J. & J.S. Black (1998). Developing Leaders for the Global Frontier. Sloan Management Review, Fall, Hammer, M. R., M. J. Bennett, and R. Wiseman (2003). Measuring Intercultural Sensitivity: The Intercultural Development Inventory. International Journal of Intercultural Relations, Volume 27, Harden, M., and S. Sandage (2008). Relational Spirituality and Intercultural Development: A Systems Approach for Seminary Graduate Students and Faculty. IDI Conference Minneapolis, MN 2008 House, J. H. (2004). Part I: Introduction. In R. J. House, P. J. Hanges, M. Javidan, P. W. Dorfman, and V. Gupta (Eds.), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies (pp. 1-2). Thousand Oaks, CA: Sage. House, R., M. Javidan, P. Hanges, and P. Dorfman (2002). Understanding Cultures and Implicit Leadership Theories Across the Globe: An Introduction to Project GLOBE. Journal of World Business, Volume 37,

14 House, R. J., N. S. Wright, and R. N. Aditya (1997). Cross-Cultural Research on Organizational Leadership: A Critical Analysis and a Proposed Theory. In P. C. Earley & M. Erez (Eds.), New perspectives in international industrial/organizational psychology (pp ). San Francisco: The New Lexington Press. Javidan, M. (2008a) Understanding and Managing Cultural Issues. Plenary Address, 2008 Annual Roundtables of Contemporary Research & Practice, School of Global Leadership & Entrepreneurship, Regent University. Javidan, M. (2008b). A Discussion with Mansour Javidan. Opening Reception for the Center for Integrative Leadership s (University of Minnesota) Integrative Leadership: Leading Across Boundaries for the Common Good Conference. Javidan, M. (2008c). What is Global Mindset? Why is it important? Plenary Address, 2008 Annual Roundtables of Contemporary Research & Practice, School of Global Leadership & Entrepreneurship, Regent University. Javidan, M., P. W. Dorfman, M. Sully de Luque, and R. J. House (2006). In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE. Academy of Management Perspectives, February, Klenke, K. (2008). Qualitative Research in the Study of Leadership. United Kingdom: Emerald. LaFasto, F. M. J., and C. E. Larson (2001). When Teams Work Best: 6,000 Team Members and Leaders Tell What It Takes to Succeed. Thousand Oaks, CA: Sage. Marquardt, M. J., and L. Horvath (2001). Global Teams: How Top Multinationals Span Boundaries and Cultures with High-Speed Teamwork. Palo Alto, CA: Davies-Black. Stone, G., and K. Patterson (2006). The Focus of Leadership on Business and Behavioral Factors: A Historical Perspective. 13 th Annual Banquet of the American Society of Business and Behavioral Sciences, Keynote Address. 13

15 Vol. 1, No. 1; Fall 2009/March 2010 THE ROLE OF POSITIVE ORGANIZATIONAL BEHAVIOR: A CONCEPTUAL MODEL Renin Varnali Boğaziçi University ABSTRACT: The purpose of the present article is to propose a conceptual model investigating the interrelationships among constructs of perceived organizational climate, work value orientations, job satisfaction and organizational citizenship behavior (OCB) within the framework of positive organizational behavior (POB). Employees perceived organizational climate and their work value orientations are influential in both their job satisfaction level and OCBs. Prior empiric findings support that job satisfaction and OCB are particularly relevant outcomes in positivity research. There is significant amount of literature accumulated on the topics of job satisfaction of employees, their level of engagement in OCBs, organizational climate and work value orientations. Although these constructs have been used together in conceptual models and tested in empirical researches, the acknowledgement of the role that POB plays in linking these constructs together is quite recent and provides opportunities for future research. The present article proposes a conceptual model that incorporates the aforementioned constructs in a single, comprehensive framework and presents a discussion regarding these constructs adopting the perspective of positivity research. The conceptual framework proposes that the existence of positive organizational behaviors would make these relationships more robust; which would highlight the importance of these positive organizational behaviors at workplace. The proposed model would be beneficial to both academics by providing fruitful empiric research avenues and to practitioners by directing them in recruitment, training and career development processes. INTRODUCTION There is a wide coverage of extant literature about the relationship between positive feelings of employees and their performance. The topic of employees feelings is of consideration to many scholars from several perspectives since the Hawthorne Works of the Western Electric Company. Following the lead of recently emerging positive psychology, a stream of research started to focus on people's strengths and psychological capabilities, which resulted in the conceptualization of positive organizational behavior (POB) construct. Prior empiric findings support that positive personality traits such as conscientiousness, emotional stability and positive affect are positively related to job satisfaction, which in turn is positively related to performance. Also, with respect to the desirable work outcomes, job satisfaction has been identified as a predictor of organizational citizenship behavior (OCB). OCB is conceptualized 14

16 as voluntarily going above and beyond the immediate tasks and short-term expectations. Examples of OCBs include helping others with work related problems; adhering to norms, policies, and procedures set forth by the organization even when no one observes; not complaining and exhibiting a positive attitude in the face of adversity; expressing a positive attitude about the organization to outsiders; etc. Therefore, job satisfaction and OCB are particularly relevant outcomes to be assessed in positivity research. Employees relations to their works, also known as work value orientations are influential in both their job satisfaction level and OCBs. These orientations are shaped by employees values, norms and how they view work as part of their lives. Additionally, perceived organizational climate is influential in creating values for employees. These values reflect the organization and how employees view and perceive organizational values, norms and procedures. These show whether the organization is open to change; encourages participation; supports empowerment; values creativity, positive thinking etc. These organizational values shape employees perceptions about the job and organization, and play a role in creating their personal work value orientations. There is significant amount of literature accumulated on the topics of job satisfaction of employees, their level of engagement in organizational citizenship behaviors, their work value orientations and perceived organizational climate. Although these constructs have been used together in conceptual models and tested in empirical researches, the acknowledgement of the role that POB plays in linking these constructs together is quite recent and provides opportunities for future research. The present article proposes a conceptual model that incorporates the aforementioned constructs in a single, comprehensive framework and presents a discussion regarding these constructs adopting the perspective of positivity research. The conceptual framework aims to assess the relative importance of self-driven work value orientations versus perceived organizational climate in determining employee job satisfaction and organizational citizenship behaviors. Furthermore, it is proposed that the existence of positive organizational behaviors would make these relationships more robust; which would highlight the importance of these positive organizational behaviors at workplace. With respect to the POB, the constructs of employees happiness at work and their optimism about the work are selected and applied in the model. The proposed model would be beneficial to both academics by providing fruitful empiric research avenues and to practitioners by directing them in recruitment, training and career development processes. THEORETICAL BACKGROUND As Luthans (2002b) defines, POB is the study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today's workplace (p.59). The construct encompasses many existing OB concepts from the domains of attitudes, personality, motivation, and leadership. The concepts that are identified and analyzed as most representative 15

17 Varnali of the proposed POB approach are confidence/self-efficacy, hope, optimism, subjective well-being/happiness, and emotional intelligence. As Seligman and Csikszentmihalyi (2000) indicate, the levels of analysis can be summarized to be at the subjective level (i.e., positive subjective experience such as well being and contentment with the past, flow and happiness in the present, and hope and optimism into the future); the micro, individual level (i.e., positive traits such as the capacity for love, courage, aesthetic sensibility, perseverance, forgiveness, spirituality, high talent, and wisdom); and the macro group and institutional level (i.e., positive civic virtues and the institutions that move individuals toward better citizenship such as responsibility, altruism, civility, moderation, tolerance, and a strong work ethic). There is strong support for the argument that dispositional factors are related to job attitudes (Staw et al., 1986; Staw and Ross, 1985). Wrzesniewski et al. (1997) believe that it is important to understand the subjective experience of work; in other words, how individuals differ in their experience of the work they do. As Wrzesniewski et al. (1997) in their article point out employees work value orientations can be categorized as being job, career or calling. This categorization is based on the work of Bellah et al. (1985). According to this categorization, people with job orientations focus on financial rewards and necessity rather than pleasure or fulfillment. For career oriented people, the focus is on advancement and those who have a calling orientation focus on enjoyment of fulfilling and socially useful work. In a more detailed manner, the authors characterized people with job orientations as the ones who are only interested in the material benefits from work. For these people the work is not an end in itself and their major interests and ambitions are not expressed through their work. Unlike job orientation, career orientation characterizes people with a deeper personal investment in their work and marks their achievements not only through monetary gain, but through advancement within the occupational structure. These people are also interested in higher social standing, increased power within the scope of one s occupation, and higher self-esteem for the worker. People with calling orientations, on the other hand, are characterized by their way of looking at the work. As to these people, their work is inseparable from their lives. These people view work not as a means for financial gain or career advancement, but instead for the fulfillment that doing the work brings to the individual. As James and Jones (1974) state, organizational culture or climate is the shared perceptions of what the organization is in terms of practices, policies, procedures, routines, and rewards that are applied in the organization. The definition also covers what is valued and what behaviors are expected and rewarded. Denison and Mishra (1995) suggest that organizational climate can be viewed as a means to improve organizational performance, individual satisfaction, the sense of certainty about how problems are handled, and other aspects of work life. Throughout the literature, the issue of positive organizational climate or culture has been studied. Martin (2004) argues that in order to increase satisfaction, motivation and productivity in the workplace, a positive organizational culture should be built and developed. 16

18 In 1977, Organ introduced the term organizational citizenship behavior (OCB) for the first time suggesting it to be a component of job performance. After a year, in 1978, Katz and Kahn argued that besides their prescribed roles, employees should engage in behaviors that go beyond formal obligations for effective functioning of organizations. The characteristics of OCB have evolved over the past two decades. There have been many modifications, additions, and enhancements since Smith et al. began exploring the topic in 1983 empirically. Organ has been an extremely influential pioneer on the topic of OCB. Organizational citizenship behavior (OCB) was defined by Organ (1988) as individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization (p. 4). According to Diefendorff et al. (2002), in general OCBs differ from in-role performance in two main aspects. First, as stated by Organ (1997) unlike in-role performance, OCBs do not directly support the technical core but rather influence the social and psychological environment of organizations, which in turn influences the technical core. Second, OCBs are more discretionary and less constrained by work-process technology and other task features than in-role activities. Task performance is influenced by individual ability and work-process technology; on the other hand, OCBs are influenced by what individuals think and feel about their jobs (Organ and Ryan, 1995; Penner et al., 1997). Throughout the literature, many scholars who are interested in the topic of OCB have established different dimensions for OCBs. Examples of these dimensions include altruism, conscientiousness, civic virtue, sportsmanship, and courtesy (Brief and Motowidlo, 1986; Podsakoff et al.,1990). INTERRELATIONSHIPS OF THE CONSTRUCTS AND THE PROPOSITIONS In developing the conceptual model, Fredrickson s broaden-and-build theory is used. According to Fredrickson's theory, a number of positive emotions share the ability to broaden an individual's momentary thought-action repertoires through expanding the available array of the thoughts and actions that come to mind (Fredrickson, 1998, 2001; Fredrickson and Branigan, 2001) and these positive emotions support building the individual's personal resources. As Fredrickson (2001) suggests, this capacity to experience the positive is proposed to be central to one's ability to grow both mentally and psychologically. Similar to Fredrickson s broaden-and-build theory (2001), Wright (2005) has pointed out the contribution of positivity to building and developing psychological resources and consequently to enhancing job performance. Wright (2005) suggests that this perspective may be effective in conceptualizing, operationalizing, and testing the happy worker-productive worker thesis. Ramlall (2008) tested whether work will be a significant source of happiness if the environment is appropriate to the employee and the employee has the ability to shape the environment that will create the happiness. The author found out that work is a significant contributor to one s happiness and allowing employees to contribute in creating a positive environment results in higher 17

19 Varnali levels of happiness among the workforce. Another significant factor contributing to an employee s happiness is one s level of optimism. It is figured out that being optimistic leads to an employee s satisfaction and commitment to the company, and even to the employee s happiness. Also in the same study, the researcher tested whether organizations with a more positive culture will provide an environment that enhances happiness, commitment, satisfaction, and ultimately, higher performance. Additionally, the author examined the extent to which employees respective organizational cultures are perceived as positive and instrumental in creating an environment that fosters commitment to the organization, employee satisfaction, and happiness, and leads to higher individual and firm performance. The results showed a positive relationship between organizational culture and performance. Over the years, in many studies OCB and satisfaction are used as outcome measures. Prior studies investigated these constructs both independently and within a relationship. The possibility of a moderating effect of positive emotion on the job satisfaction-job performance relation has been studied several times (Fisher and Hanna, 1931; Locke, 1976). Studies conducted in the past support that positive personality traits and emotional stability (Judge et al., 1999), and positive affect (Ilies et al., 2006) are positively related to job satisfaction (Judge et al., 2001; Wright, 2005). Also, job satisfaction has been identified as a predictor of organizational citizenship behavior (Ilies et al., 2006; Konovsky and Organ, 1996; Organ and Konovsky, 1989; Organ and Ryan, 1995). In other words, job satisfaction and OCB would seem to be particularly relevant outcomes to be assessed in positivity research. The first set of propositions involves the three types of relations employees can have with work (Bellah et al., 1985). It is expected that people with calling orientation would be more satisfied with their jobs and therefore engage in OCBs more compared to those with career or job orientations. Besides, personal work orientation is expected to have a direct influence on employees level of engagement in OCBs. Accordingly the propositions are: P1a: Employees work orientations will directly influence their OCBs. P1b: Employees with calling work orientations are more willing to engage in OCBs than those with job or career orientations. P2a: Employees work orientations will have an indirect effect on OCB through job satisfaction. P2b: Employees with calling work orientations will be more satisfied with their jobs than those with job or career orientations. In their study, Mercer and Bilson (1985) found out that there is a positive relationship between supportive organizational climate and employee outcomes such as organizational commitment and job satisfaction. Supportive organizational climate can be defined as the overall amount of perceived support employees receive from their immediate peers, other departments, and their supervisors. Perceived organizational climate is expected to have an impact on employees personal work orientations. Additionally, in previous studies, supportive climate was found to be positively associated with both satisfaction 18

20 and commitment. Specifically, it was figured out that employees who perceive the climate in their organizations to be more supportive are more likely to experience higher levels of psychological capital (PsyCap) which is a construct studied in the POB approach. Related propositions are: P3a: Employees perceived organizational climate will influence their personal work value orientations. P3b: When employees perceive organizational climate as supportive, they will have calling work value orientation. P4a: Employees perceived organizational climate will influence their level of job satisfaction. P4b: Supportive organizational climate will increase employees level of satisfaction. P5a: Employees perceived organizational climate will influence their level of engagement in OCBs. P5b: Supportive organizational climate will increase employees level of engagement in OCBs. Among various constructs that belong to the domain of POB, optimism about work and happiness at work are included in the conceptual model. These constructs are expected to influence the strengths of the proposed relationships and make them more robust and meaningful. Thus, they will have moderating effects as follows: P6a: Job satisfaction will have a stronger effect on OCB for the employees who are more optimistic about their work. P6b: Job satisfaction will have a stronger effect on OCB for the employees who are happier at work. P7a: Personal work orientations will have a stronger effect on OCB for the employees who are more optimistic about their work. P7b: Personal work orientations will have a stronger effect on OCB for the employees who are happier at work. P8a: Perceived organizational climate will have a stronger effect on OCB for the employees who are more optimistic about their work. P8b: Perceived organizational climate will have a stronger effect on OCB for the employees who are happier at work. 19

21 Varnali THE PROPOSED MODEL Figure 1. The Proposed Conceptual Model In this conceptual model, the constructs of perceived organizational climate, personal work orientations, job satisfaction and OCB are demonstrated as interrelated constructs; and the two constructs representative of the POB approach, optimism about work and happiness at work are included as moderators that strengthen the aforementioned relationships when they exist. According to Martin Seligman (1998), the recognized pioneer of the positive psychology movement, optimism is viewed as an attributional style that explains positive events through personal, permanent, and pervasive causes and negative events through external, temporary, and situation-specific ones. Carver and Scheier (2002) suggest that, as a result of these attributional or explanatory style differences, optimists build positive expectancies that motivate their goal pursuit and approach coping behavior in the future. Optimism is created, motivated, and developed in relation to the pursuit of personally valuable goals which makes the construct relevant to the personal work orientations of employees. Optimism is included in the POB approach due to its supported positive relationship with performance in various life domains (Peterson and Barrett, 1987; Prola and Stern, 1984), especially the workplace (Luthans et al., 2005; Luthans et al., 2007; Seligman, 1998; Youssef and Luthans, 2007). 20

22 With respect to happiness at work, as Diener (2000) argues, happiness encompasses positive cognitions and emotions that result in subjective sense of well-being and general life satisfaction. There are several studies that have shown that happy individuals are successful across multiple life domains, including marriage, friendship, income, work performance, and health (Lyubomirsky et al., 2005). It has been argued that the happiness-success link exists not only because success makes people happy, but also because positive affect engenders success. According to Wright (2005) well-being is the most relevant operationalization of happiness, which is also in line with positive psychology and its emphasis on health, well-being, flourishing, and actualizing one's potential. Luthans (2002b) suggests that well-being is related to the perception, emotional interpretation, and cognitive processing of events and situations rather than to actual conditions, which makes it particularly relevant to a broadened conceptualization of work related outcomes. Similar to happy worker-productive worker thesis, there are many more studies elaborating on the relationship between employees feelings and work-related outcomes. Wright and Cropanzano (2004) have found out that positive work behaviors have statistically significant relations to employee performance. Based on Fredrickson's broaden-and-build model, Wright et al. (2007) found that psychological well-being moderates the relation between job satisfaction and job performance. This finding is important to reach a conclusion for the inconsistent results of previous studies solely focusing on the job satisfaction-job performance relationship to explain the happy workerproductive worker thesis. Recent empirical studies support the interaction between individual-level positive personality traits and states in predicting both the frequency and consistency of engaging in OCBs (Ilies et al., 2006). As Luthans et al. (2008) argue employees psychological capital is positively related to their performance, satisfaction, and commitment and a supportive climate is related to employees satisfaction and commitment. In their study, they have found out that employees psychological capital mediates the relationship between supportive climate and their performance. Perceived organizational climate, personal work orientations and job satisfaction all have an impact on employees level of engagement in OCBs. But in order to strengthen these relationships and have consistent results all over again, one should not solely focus on these relationships but also consider the moderating role of positive organizational behavior constructs like happiness at work and optimism about work. CONCLUSION The present paper proposed a conceptual model that places constructs of perceived organizational climate, work value orientations, job satisfaction, organizational citizenship behavior (OCB) and positive organizational behavior (POB) in a single and coherent framework which is hoped to be instrumental in better understanding of factors that contribute to desired work related outcomes. Prior research has also investigated the relationships among the constructs 21

23 Varnali included in the proposed model; however, a unique contribution of the present article is that it adopts positivity approach in the formulation of the conceptual model. As Youssef and Luthans (2007) point out, positive psychology and its recent application to the workplace as POB simply attempts to emphasize the importance of positive constructs, such as positive affectivity (PA), positive reinforcement, procedural justice, job satisfaction and commitment, prosocial and organizational citizenship behaviors, core self-evaluations, etc. This paper specifically elaborates on the moderating role of two positivity constructs, optimism and happiness, on the relationship between perceived organizational climate and personal work orientations with job satisfaction and OCBs. As Ramlall (2008) suggests, since positiveness, happiness, and organizational outcomes are interrelated, leading scholars on POB believe that positiveness and happiness should preoccupy not only philosophers and psychologists, but also managers and organizational leaders. The proposed conceptual model would be beneficial to both academics by providing fruitful empiric research avenues and to practitioners by directing them in recruitment, training and career development processes. One may get the impression that, it is commonsense to include POB constructs in the model. However, the happy worker-productive worker thesis has been falsified many times throughout the literature; thus the commonsense issues should not be taken for granted and should be subjected to empirical testing. REFERENCES Bellah, R. N.; Madsen, R.; Sullivan, W. M.; Swidler, A. and Tipton, S. M. (1985). Habits of the Heart, New York: Harper & Row. Brief, A. P. and Motowidlo, S. J. (1986). Prosocial Organizational Behaviors. Academy of Management Review, 11 (4), pp Carver, C. S. and Scheier, M. F. (2002). Optimism. In C. R. Snyder & S. Lopez (Eds.), Handbook of positive psychology, Oxford, UK: Oxford University Press. Denison, D. R. and Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6 (2), pp Diefendorff, J. M.; Brown, D. J.; Kamin, A. M. and Lord, R. G. (2002). Examining the Roles of Job Involvement and Work Centrality in Predicting Organizational Citizenship Behaviors and Job Performance. Journal of Organizational Behavior, 23 (1), pp Diener, E. (2000). Subjective Well-Being: The Science of Happiness and a Proposal for a National Index. American Psychologist, 55 (1), pp Fisher, V. E., & Hanna, J. V. (1931). The Dissatisfied Worker. New York: Macmillan. Fredrickson, B. L. (1998). What Good are Positive Emotions? Review of General Psychology, 2 (3), pp Fredrickson, B. L. (2001). The Role of Positive Emotions in Positive Psychology: The Broaden-and-Build Theory of Positive Emotions. American Psychologist, 56 (3), pp

24 Fredrickson, B. L. and Branigan, C. A. (2001). Positive emotions. In T. J. Mayne, & G. A. Bonnano (Eds.), Emotion: Current issues and future directions (pp ). New York: Guilford Press. Ilies, R.; Scott, B. A. and Judge, T. A. (2006). The Interactive Effects of Personal Traits and Experienced States on Intraindividual Patterns of Citizenship Behavior. Academy of Management Journal, 49 (3), pp James, L. R. and Jones, A. P. (1974). Organizational Climate: A Review of Theory and Research. Psychological Bulletin, 81 (12), pp Judge, T. A.; Higgins, C. A.; Thoresen, C. J. and Barrick, M. R. (1999). The Big Five personality traits, general mental ability, and career success across the life span. Personnel Psychology, 52, pp Judge, T. A.; Thoresen, C. J.; Bono, J. E. and Patton, G. K. (2001). The Job Satisfaction-Job Performance Relationship: A Qualitative and Quantitative Review. Psychological Bulletin, 127 (3), pp Katz, D. and Kahn, R. L. (1978). The Social Psychology of Organizations. Wiley: New York. Konovsky, M. and Organ, D. W. (1996). Dispositional and Contextual Determinants of Organizational Citizenship Behavior. Journal of Organizational Behavior, 17 (3), pp Locke, E. A. (1976). The nature and causes of job satisfaction. In M. D. Dunnette (Ed.), Handbook of industrial and organizational psychology (1st edn, pp ). Chicago: Rand McNally. Luthans, F. (2002b). Positive Organizational Behavior: Developing and Managing Psychological Strengths. Academy of Management Executive, 16 (1), pp Luthans, F.,; Avolio, B. J.; Avey, J. B. and Norman, S. M. (2007). Positive Psychological Capital: Measurement and Relationship with Performance and Satisfaction. Personnel Psychology, 60 (3), pp Luthans, F.; Avolio, B. J.; Walumbwa, F. O. and Li, W. (2005). The Psychological Capital of Chinese Workers: Exploring the Relationship with Performance. Management and Organization Review, 1 (2), pp Luthans, F.; Norman, S. M.; Avolio, B. J. and Avey, J. B. (2008). The Mediating Role of Psychological Capital in the supportive Organizational Climate- Employee Performance Relationship. Journal of Organizational Behavior, 29, pp Lyubomirsky, S.; King, L. and Diener, E. (2005). The Benefits of Frequent Positive Affect: Does Happiness Lead to Success? Psychological Bulletin, 131 (6), pp Martin, A. J. (2004). The Role of Positive Psychology in Enhancing Satisfaction, Motivation, and Productivity in the Workplace. Journal of Organizational Behavior Management, 24 (1/2), pp Mercer, A. A. and Bilson, K. (1985). Factors influencing organizational commitment by physicians. Proceedings of Academy of Management, pp

25 Varnali Organ, D. W. (1977). A Reappraisal and Reinterpretation of the Satisfaction Causes Performance Hypothesis. Academy of Management. The Academy of Management Review, 2 (1), 46. Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. Lexington, MA: Lexington Books. Organ, D. W. and Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psychology, 48 (4), pp Organ, D. W. (1997). Organizational Citizenship Behavior: It s Construct Cleanup Time. Human Performance, 10 (2), pp Organ, D. W. and Konovsky, M. (1989). Cognitive versus Affective Determinants of Organizational Citizenship Behavior. Journal of Applied Psychology, 74 (1), pp Penner, L. A.; Midili, A. R. and Kegelmeyer, J. (1997). Beyond Job Attitudes: A Personality and Social Psychology Perspective on the Causes of Organizational Citizenship Behavior. Human Performance, 10 (2), pp Peterson, C. and Barrett, L. C. (1987). Explanatory style and academic performance among university freshmen. Journal of Personality and Social Psychology, 53 (3), pp Podsakoff, P. M.; MacKenzie, S. B.; Moorman, R. H. and Fetter, R. (1990). The Impact of Transformational Leader Behaviors on Employee Trust, Satisfaction, and Organizational Citizenship Behaviors. Leadership Quarterly, 1 (2), pp Prola, M., and Stern, D. (1984). Optimism about college life and academic performance in college. Psychological Reports, 55, pp Ramlall, S. J. (2008). Enhancing Employee Performance Through Positive Organizational Behavior. Journal of Applied Social Psychology, 38 (6), pp Seligman, M. E. P. (1998). Learned Optimism. New York: Pocket Books. Seligman, M. E. P. and Csikszentmihalyi, M. (2000). Positive Psychology: An Introduction. American Psychologist, 55 (1), pp Smith, A. C.; Organ, D. W. and Near, J. P. (1983). Organizational Citizenship Behavior: Its Nature and Antecedents. Journal of Applied Psychology, 68 (4), pp Staw, B. M.; Bell, N. E. and Clausen, J. A. (1986). The Dispositional Approach to Job Attitudes: A Lifetime Longitudinal Test. Administrative Science Quarterly, 31 (1), pp Staw, B. M. and Ross, J. (1985). Stability in the Midst of Change: A Dispositional Approach to Job Attitudes. Journal of Applied Psychology, 70 (3), pp Wright, T. A. (2005). The Role of Happiness in Organizational Research: Past, Present and Future Directions. In P. L. Perrewe & D. C. Ganster (Eds.), Research in occupational stress and well-being, Volume 4, Amsterdam: JAI. 24

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27 Vol. 1, No. 1; Fall 2009/March 2010 THE EQUITY IN ATHLETICS DISCLOSURE ACT AND THE ACCOUNTING INFORMATION: IS INFORMATION RESULTING IN MORE EQUITY? Carol Sullivan Texas Wesleyan University ABSTRACT: The purpose of this study is to examine whether the new accounting information has been effective in creating more equity for women in collegiate athletics as well as to offer some ways to improve financial information communication for the new NCAA Dash Board financial analyses. The basic conclusion of this research is that the accounting information disclosure requirements of the Equity in Athletics Disclosure Act has indeed improved the substantive proportionality overall. EADA financial reporting requirements have created metrics for enforcement Title IX. Analyses from this study can also be used to provide important information for the NCAA s new Dash Board financial information. This information may be useful as institutions/athletic directors/coaches are required to make managerial decisions to create more equity in their athletic programs. INTRODUCTION Title IX is important educational equity legislation for women because it prohibits gender discrimination under any educational program or activity receiving federal financial assistance. However, the enforcement of this regulation has been marginal at best. In 1994, the Equity in Athletics Disclosure Act was legislated as a way to provide more measurement and accountability for Title IX regulation related to National Collegiate Athletic Association (NCAA) sports. The purpose of this study is to examine whether the new accounting information has been effective in creating more equity for women in collegiate athletics as well as to offer some ways to improve financial information communication for the new NCAA Dash Board financial analyses. This research is primarily motivated by Joel Demski s admonitions in his 2007 Accounting Horizon s article, Is Accounting an Academic Discipline? Some themes found in this article are 1) innovation is close to nonexistent with accounting research, 2) few researchers actually touch the data, and 3) virtually no issue in accounting would exist were it not for management s behavior. Dr. Demski ends the article by encouraging people, Don t play the game, redefine the game. This encouragement motivated this research because not one article could be found about the Equity in Athletics Disclosure Act (hereafter, EADA) in the course of reviewing both the accounting literature and ABI Inform despite its importance in terms of education. Another motivating factor for the research is Hunter s (2008) Ethics: The Framework for Success article. He questions whether people can replace an 26

28 emphasis of succeeding at all costs with succeeding the right way. In this article, Hunter discusses Santa Clara University s Framework for Thinking Ethically and encourages decision makers to 1) be sensitive to ethical issues, 2) explore ethical aspects of a decision, 3) weigh the considerations that impact a course of action, and 4) have the moral courage to make the right ethical choice. Title IX is an ethical issue for many people (both men and women) that are involved with it. Yet agency theory often impedes the social justice element of this regulation because there is such an emphasis on the men s athletic programs to excel in higher education. Jenson and Meckling (1976) describe the problem when there is a significant difference between the principal s interest and the agent s interest. The Title IX application of this theory is that society members (or at least United States legislators) have deemed that women should be provided the same educational opportunities as men by passing this equal rights legislation. While society serves as the principal in this situation, athletic directors and football coaches (and perhaps other male sport coaches as well) are the agents whose interest involves creating winning teams and keeping their jobs. Spreading economic resources to the women s sports may decrease their effectiveness and jeopardize their teams chance for success and/or their jobs. Will these athletic directors/coaches act in their own best interests or will they adhere to the regulation to create educational equity? Two more important accounting articles are the accounting literature review foundation for this research. Kren and Liao (1988) reviewed the accounting literature for evidence related to the role of accounting information in the control of organizations. Their conclusion was that the role of the information system was critical because the accounting system is often the primary source of both decision-facilitating and decision-influencing activities. Finally, Kaplan and Norton (1992) is important research related to using a balanced scorecard to identify, communicate, and implement strategy within an organization. While many people involved with university athletics are very focused on win-loss records, the motivation for this research is to get people more interested in broader societal benefits of college sports as well as examine whether new accounting information has helped identify and communicate deficiencies with Title IX compliance. With that information, institutions and individuals can better implement strategies for better equity and compliance with Title IX. BACKGROUND LEGISLATION AND TITLE IX Legislation related to better equity had been a part of regulatory activity; however, the Title IX legislation has its own place in history for women. Title VI of the Civil Rights Act of 1964 prohibited discrimination in federally assisted programs, but only on the basis of race, color, and national origin not gender. More equity was regulated with Title VII of the Civil Rights Act whereby discrimination in employment on the basis of race, color, religion, national origin, and sex was prohibited but it excluded educational institutions. The Equal Pay Act prohibited salary discrimination on the basis of gender, but excluded professional and administrative employees like professors and coaches. 27

29 Sullivan Finally, the 14 th Amendment of the Constitution provides all persons equal protection under the laws, but the Supreme Court had never ruled in favor of women for any case involving women in education before the Title IX legislation. One example of the educational environment for women during the 1960 s was that the state of Virginia denied admission to over 21,000 female applicants to its higher education institutions over a 3-year period of time while no men were denied admission during this same period this imbalance was considered legal. Title IX of the Education Amendments of 1972 to the 1964 Civil Rights Act states that no person in the United States shall, on the basis of sex - Be excluded from participation in, - Be denied the benefits of - Be subjected to discrimination under any education program or activity receiving Federal financial assistance. While most people think of this legislation in terms of social justice for athletics, it was actually intended to address civil rights and access to all educational programs. The applications of Title IX legislation involve three main areas: 1) participation women are provided an equitable opportunity to participate in sports, but not necessarily with the identical sports, 2) scholarships if there is a $200,000 scholarship budget, then the budget must be split equally for the same number of athletes involved, and 3) other benefits equal treatment in terms of equipment, scheduling, travel allowances, tutoring access, coaching, locker rooms and other facilities, medical care, publicity, recruitment, and support services. During the Bush administration, the Title IX legislation was weakened with some clarifications from the Department of Education in A Three- Prong Test was used to test for compliance: 1) participation substantially proportionate to respective rates of male/female enrollments, 2) a demonstration of history and continuing practice of program expansion for the underrepresented sex, and 3) a survey that shows that the institution fully and effectively accommodates the interests and abilities of the underrepresented sex. THE EQUITY IN ATHLETICS DISCLOSURE ACT OF 1994 Twenty years is too long to wait for enforcement of a new law passed by Congress. It is clear that neither the NCAA nor colleges are going to do the right thing anytime soon, said Representative Cardiss Collins. As Chairwoman of the House Energy and Commerce Subcommittee on Commerce, Consumer Protection, and Competitiveness), Representative Collins introduced H.R. 921 (Equity in Athletics Disclosure Act) on the same day. It was modeled after the Student Right to Know Act and required disclosure of both participation rates by gender as well as financial information also delineated by gender. This Equity in Athletics Disclosure Act (EADA) legislation was very controversial and many schools did not comply with the new disclosure 28

30 mandates. In Sullivan s (2002) research with the EADA financial reports, numerous accounting errors were detected. A more recent investigation by The USA Today (2005) also found that 1/3 of the revenue and expense reports contained errors too. A call for more accountability was a theme of both projects. The Government Accountability Office (GAO) became involved in 2007 by studying recent trends in teams and participants in NCAA Sports. They found that there had been significant gains in the number of women s teams while the men s teams showed mixed or small numbers of changes. The GAO also found that women s participation increased, but that men s participation levels were greater in both absolute terms and relative to their respective enrollments. The purpose of this current study is to examine participation rates and financial information provided by the EADA reports more deeply than the GAO s most recent study. Relating this information to both the accounting literature (managerial behavior, agency theory, and the balanced scorecard) and regulatory literature is a goal of the study. The theme that the information system is critical for decision-influencing behavior is also important with the EADA information provided by the institutions. RESEARCH QUESTIONS AND METHODOLOGY The research questions to be studied with the project are as follows: 1) Have institutions complied with Title IX regulations more effectively since the Equity in Athletics Act (EADA) reports have been required? 2) Are there any systematic areas of compliance or noncompliance based on the participation rates analyzed by conference, states, divisions, and schools? 3) Is there a difference between the schools that have been reporting their EADA information since 1996 and the schools that started reporting in 2002? The research methodology involves gathering regulatory compliance data with EADA reports first. This data is collected by the Department of Education and then put into a database. This database information is then published on the Chronicle of Higher Education website. For this project, data related to the participation rates were collected from 974 colleges and universities. Longitudinal information from the is used when available and the last year of data is the academic year. RESULTS Overall Trends: An analysis of average substantive proportionality and the trend was conducted. Substantive proportionality is based on the proportion of female/male athletes to the proportion of female/male students attending the school. For example, if the proportion of female/male students is 40%/60% and the proportion of female/male athletes is 25%/75%, then the substantive proportionality would be -15%. The information related to aggregate results is summarized in Table 1. 29

31 Sullivan Table 1 Overall Results of Substantive Proportionality for All Schools Average Trend Of the 974 schools, there were 630 decreases in substantive proportionality, 343 increases, and one school remained the same. The average imbalance decrease for each institution over the periods was 2.09%. Please note how the imbalances were decreasing significantly until 2002 and then there was a spike in results. This spike reflects a group of schools that did not report until 2002 and their imbalances tend to be higher. More information related to this spike will be reported as the third research question is investigated. While hypothesis testing has not been done, the results seem to indicate that the Equity in Athletics Disclosure Act reports do effectively create more gender equity compliance at the institutions. Systematic Areas of Compliance and Noncompliance: Summary descriptive results are used to provide information related to systematic areas of compliance and noncompliance by conference, by states, and by individual schools. These determinations were made by first calculating overall averages during the entire period for each school and then averaging the results by conference and states. Preliminary results for the 10 conferences with the smallest substantive proportionality imbalances as compared to the 10 conferences with the largest substantive proportionality imbalances are found in Table 2. As one can quickly notice, there is a big gap between the overall substantive proportionality among these conferences. It is hard to believe that the conferences with such large imbalances are seriously trying to comply with Title IX regulations because these numbers represent multiple team results over a number of years. There is a possibility that these imbalances are caused by cultural disinterest among women in a particular area; therefore, analysis of substantive proportionality by state is conducted. Preliminary results for the 10 states with the smallest substantive proportionality imbalances as compared to the 10 states with the largest substantive proportionality imbalances are found in Table 3. While many of the smallest imbalance states are in the New England area, it is interesting to note that some areas of the country have different substantive proportionality than their respective geographic conferences. For example, schools in the Atlantic Coast conference (a conference with small imbalances) may be at a competitive disadvantage because the overall state of North Carolina has a much larger imbalance. The last set of analyses related to systematic areas of compliance and noncompliance is with the individual schools. 30

32 Table 2 Conferences with Smallest Imbalances vs. Conferences with the Largest Imbalances Smallest Imbalance Amount Largest Imbalance Amount Conferences Conferences New England Women & Mid-America Men s Intercollegiate California Collegiate Gulf South Conference Athletic Liberty League South Atlantic Conference Big Lone Star Conference Patriot League Great South Athletic Conference Big West Southwestern Athletic Conference North Athletic Conference Southern Intercollegiate Conference America East Conference Mid-Eastern Athletic Conference Atlantic Coast Conference Northern Athletics Conference Ivy League Central Intercollegiate Conference Table 3 States with Smallest Imbalances vs. States with the Largest Imbalances Smallest Amounts Largest Amounts Imbalance States Imbalance States Vermont Mississippi Nevada South Dakota Wyoming New Mexico Utah Arkansas California Louisiana New Hampshire Alabama Washington Oklahoma Montana Georgia Maine North Carolina Rhode Island Iowa

33 Sullivan Longitudinal data of substantive proportionality results from each individual institution was averaged for the analyses by colleges or universities. The 10 schools with the smallest imbalances as compared to the 10 institutions with the largest imbalances are summarized in Table 4. Table 4 Schools with Smallest Imbalances vs. Schools with the Largest Imbalances Smallest Amounts Largest Imbalance Amounts Imbalance Schools Schools Daniel Webster College U. of Mary-Hardin Baylor Lesley University Winston-Salem State University Polytechnic University University of West Alabama NJ Institute of Technology Presentation College Stevens Institute of Valdosta State Technology Florida Institute of University of West Technology Georgia Wentworth Institute of Carson-Newman College Technology MA Maritime Academy Rivier College Penn State - Erie Upper Iowa University Utah Valley State College Missouri Western State University The biggest finding with respect to these comparisons is that there seem to be big differences among schools in terms of substantive proportionality and that is a reflection of their compliance/noncompliance with Title IX. Analysis of Fully Disclosed EADA Information vs. Partially Disclosed EADA Information The final research question relates to Kren and Liao s (1988) research that asserts that the accounting system is a primary source of both decisionfacilitating and decision-influencing activities. As the data was being collected, it was interesting to note that some schools reported information from the first year of required reporting, Other schools waited until 2002 for some reason. While a hypothesis is not formally tested in this paper, overall substantive proportionality averages were calculated and a comparison is made. The results are found in Table 5. From these results, it seems like some schools who reported their EADA information from the first year of required disclosure (1996) either had lower imbalances in the first place and were more willing to disclose the information or they made decisions over the course of time to decrease the imbalances. More 32

34 analyses is necessary to determine if there are any significant differences between the institutions that fully disclosed their EADA information and the schools that only partially disclosed the information. Table 5 Average Substantive Proportionality: Full vs. Partial Disclosure Schools Type of Disclosure Substantive Proportionality Full Partial results were not submitted until 2002 LIMITATIONS AND CONCLUDING REMARKS One important limitation for the research involves the garbage-in, garbage-out problem often associated with data. If the data found in the EADA reports are in error, then the results of these analyses may also be in error. Since reliability of accounting information is considered to be very important in other areas of financial reporting, one hope is that the athletic departments will allow accountants to get involved with activities and receive benefits of their expertise. Another limitation for the study involves the third prong for the Three- Prong test are the women who go to college really interested in also playing sports? Would they be interested in getting involved in sports (i.e., gymnastics, figure skating, dance, and cheerleading) that are not currently being offered by these institutions? Or, are there other women athletes that never attend college because the programs were not in place and there were no scholarship opportunities? Will financial incentives actually produce compliance with Title IX goals or is there some inherent limitation associated with women s participation at the university level? The basic conclusion of this research is that the accounting information disclosure requirements of the Equity in Athletics Disclosure Act has indeed improved the substantive proportionality overall. EADA financial reporting requirements have created metrics for enforcement Title IX. Analyses from this study can also be used to provide important information for the NCAA s new Dash Board financial information. This information may be useful as institutions/athletic directors/coaches are required to make managerial decisions to create more equity in their athletic programs. REFERENCES - (2008), Teaching Title IX and Gender Equity Concepts, NCAA PowerPoint Slides, to be found at - (2007), Intercollegiate Athletics: Recent Trends in Teams and Participants in National Collegiate Athletic Association Sports, GAO Report (2008), Sports Spending and Gender Equity Database, Chronicle of Higher Education, to be found at 33

35 Sullivan - (2005) Congress tackles sports issues. USA Today, p. 8 found on EBSCO Host. Blum, D. (1995, December 8). U.S. issues final rules for comparing treatment of men's and women's sports. Chronicle of Higher Education, 42(15), A36. Burton Nelson, M. (1991), Are We Winning Yet? How Women Are Changing Sports and Sports are Changing Women, Random House. Burton Nelson, M. (1999), Embracing Victory: Life Lessons in Competition and Compassion, Avon Paperbacks. Burton Nelson, M. (2004) We Are All Athletes: Bringing Courage, Confidence, and Peak Performance into Our Daily Lives, Dare Press. Budde, J. (2007) Performance Measure Congruity and the Balanced Scorecard, Journal of Accounting Research, Vol. 45, No. 3, p Campbell (2008), Nonfinancial Performance Measures and Promotion-Based Incentives Journal of Accounting Research, Vol. 46, No. 2, p Christenson, J. and J. Demski (2007), Anticipatory Reporting Standards, Accounting Horizons, Vol. 21, No. 4, p Demski, J. (2007) Is Accounting an Academic Discipline?, Accounting Horizons, Vol. 21, No. 2, p Grant, T. and Grant, G. (2008), Can Regulations Curb Excessive Executive Pay?, Strategic Finance, September 2008, p. 31. Hogarth, R. (1993), Accounting for Decisions and Decisions for Accounting, Accounting, Organizations, and Society, Vol. 18, No. 5, p Hunt III, H. and Hoglar, R. (1993), An Institutional Analysis of Accounting Growth and Regulation in the United States Accounting, Organizations, and Society, Vol. 18, No. 4, p Hunter, S. (2008), Ethics: The Framework for Success, Strategic Finance, April Jenson and Meckling (1976), Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure, Journal of Financial Economics, October 1976, p Kaplan, R. and D. Norton (1992), Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review, p Kren and Liao (1988), The Role of Accounting Information in the Control of Organizations: A Review of the Evidence, Journal of Accounting Literature, p Kuehn, K. (2008), Seven Habits of Strategic CFOs, Strategic Finance, September 2008, p

36 Peters, J. (1993), Decision Making, Cognitive Science, and Accounting: An Overview of the Intersection, Accounting, Organizations, and Society, Vol. 18, No. 5, p Staurowsky, E. (2003, February 14). The Title IX Commission's Flawed Lineup. Chronicle of Higher Education, 49(23), B20.Sullivan, C. (2002), "Collegiate Athletics: Higher Education, Big Business, or Money Pit?" Federation of Business Disciplines Conference proceedings, March, Wasley, P. (2005, October 28). Widespread errors in gender-equity reports compiled by colleges under the Equity in Athletics Disclosure Act remain largely ignored by the U.S. Department of Education, USA Today reported last week. Chronicle of Higher Education, 52(10), A54-A54. 35

37 Vol. 1, No. 1; Fall 2009/March 2010 VIRTUE AS A FOUNDATIONAL ELEMENT IN GLOBAL BUSINESS EDUCATION Mark W. McCloskey Bethel University ABSTRACT: This article examines the relationship between the ancient, cardinal virtues and effective business leadership in a 21 st century global context. Empirical research, the numerous ethical failures of business leaders, and recent catastrophic events in the global economic system highlight the critical importance of ethical concerns like financial transparency, and personal and corporate integrity. Additionally, recent literature argues that business leaders, who draw from a fund of personal integrity and infuse their companies with an ethical culture afford their company a competitive advantage. In spite of the emerging consensus around the critical importance of virtue to sustained business success, there remains considerable confusion as to what is meant by virtue, how virtue relates to the practice of business, and how best to teach virtue to business leaders. This paper provides a working definition of virtue, explores the seven, historic cardinal virtues (faith, hope, love, prudence, justice, fortitude and temperance), and illustrates how each contributes to effective business leadership. It is argued that a virtue-oriented curriculum is well suited to equip business leaders for effectiveness in a global context. INTRODUCTION: DOES VIRTUE MATTER? There is a heightened interest in virtue, especially as it relates to leading in the public sphere. The National Leadership Index 2006 (Pittinsky et al., 2005) found that more than seven in ten Americans agree or strongly agree that there is a leadership crisis in America today. Americans say they have more than a moderate amount of confidence in only two of the 11 sectors of American society: the military and medicine. All other sectors of leadership, including business, fail to win even a moderate amount of confidence. Noted UCLA professor and ethicist James Q. Wilson (1995) has argued that the concerns of personal virtue and many of the crucial public policy issues of our day are inseparably linked. In the long run, observes Wilson, the public interest depends on private virtue (p. 23). Even the National Football League is placing an emphasis on character. As NFL Commissioner Roger Goodell reflected, From here on forward, I wonder if there will be as many (risky) character guys coming out of college. Character could cost you millions and millions of dollars (Seeholzer, 2007). The recent business literature has increasingly made the case that virtue (integrity and moral character) is good for business. Publications like The Journal of Business Ethics and Business Ethics Quarterly are devoted to the application of ethics in the workplace. Popular books devoted to character and ethics in the workplace have been published in the last decade (see Badaracco, 36

38 1997; Cloud, 2006; Collins, 2001a; Newton, 2006; Terris, 2006). The literature also argues that moral corruption, greed and the abuse of power diminish the effectiveness of business organizations (Englebrecht et al., 2005; Garofalo, et al., 2001; Koehn, 1998, 2001). WHAT SHOULD WE EXPECT FROM BUSINESS LEADERS? Barbara Kellerman, (2004) research director of the Center for Public Leadership at Harvard s John F. Kennedy School of Government, gives voice to our collective ambivalence about the relationship between virtue and leadership. She notes that while we want to believe that good leaders are persons of merit, or at least of good intentions, it almost seems that by definition bad people cannot be good leaders (p. 41). She argues, however, that while the leadership literature is fixated on blemish free leaders the reality is that our leaders are flawed human beings. It is impossible to deny that bad or at least unworthy people often occupy and successfully fill top leadership positions, and it is high time leadership experts acknowledge the fact Capricious, murderous, high-handed, corrupt, and evil leaders are effective and everywhere except in the literature of business leadership (p. 42, 43). Kellerman traces this trend to James MacGregor Burns 1978 work Leadership, which, she notes, assumes that to be a leader is, by definition, to be benevolent (p. 44). Kellerman does us a service by reminding us that we cannot remain willfully blind to the realities of the human condition. Leadership, at least as the literature has conceptualized it over the last two decades, leaves little room for human frailty, doubts, mistakes, confusion or limitations. But, her affirmation that leadership is not a moral concept (p. 45) bears scrutiny. While she may be technically correct, (depending on one s definition of leadership), we have learned the hard way that a leader s virtue does indeed matter. The mere mention of Enron, Arthur Anderson, 3Com and Global Crossing evoke images of catastrophic virtue failure on the part of top leaders. THE ANCIENT FOUNDATIONS OF VIRTUE Plato ( BC) and Aristotle ( BC) created much of our vocabulary of virtue. Specifically, they embraced prudence (practical wisdom), justice (fairness), fortitude (courage), and temperance (moderation) as the moral bonds of civic life. For them, virtue was no mere philosophical consideration. Rather, virtue was understood in terms of concrete actions that were visible and useful for the community. It is noteworthy that the English term virtue, from which we derive virile and valor, is from the Latin virtus meaning strength. In this sense, virtue is moral strength placed in service of others. The Greeks viewed virtue as a concrete moral force, the capacity to do something good and to keep doing it over time. (Our term ethics comes from the Greek ethos 37

39 McCloskey meaning habit). Virtue was so ingrained in a person s responses to life that they were moral reflexes flowing almost automatically from one s essential nature, governing one s intellect, will and emotions. Virtue was not a given of birth or instinct, but must be learned and reinforced (hence, education centered on training in virtue). The other great source of virtue language is Judeo-Christian, especially the virtues of faith, hope and love emphasized by St. Paul. Thomas Aquinas (1989) integrated the four Greek virtues with these theological virtues and called them cardinal virtues. The term cardinal comes from the Latin cardo meaning a hinge and so the fixed moral point on which all other virtue turns. These seven virtues flowed together into a moral amalgam that shaped theological, educational and civic life in Western Europe for almost fifteen centuries. A 20TH CENTURY DETOUR The conversation around virtue took a surprising turn early in the 20th century when Gordon Allport, the one-time president of the American Psychological Association and one of the most influential psychologists of the last century, almost single-handedly banished the terms character and virtue from the academic discourse (Nicholson, 1998). Allport (1921, 1927) correctly recognized that character and virtue are value-laden concepts and thus by his way of thinking a messy business. As he put it, morality introduces an extra and uncertain variable into the empirical study of personality. Accordingly, he replaced the idea of moral character with the concept of value-neutral traits of character or personality characteristics. Allport (1927) argued that human behavior was best understood as a manifestation of the individual s habit system composed of traits that prompted certain kinds of behaviors. Because character was a value-laden construct, it was relegated to the realm of philosophers and religious leaders, while the empirical community focused on the study of personality traits to the neglect of virtue and moral character. THE RESURGENCE OF VIRTUE As empirical social science was banishing virtue from its vocabulary, moral philosophers, especially those devoted to the study of virtue ethics kept the concept of virtue alive. Virtue ethicist Elisabeth Anscombe (1958) called for a return to an Aristotelian approach to such ideas as good and bad, human nature, motives, moral character, virtue and human flourishing. Her ideas served as a stimulus for the work of Alasdair MacIntyre (1984), Rosilind Hursthouse (2001) and Philippa Foot (2003). Virtue ethics is alive and well in religious traditions and has recently found traction in works on business ethics (see Maitland, 1997; Boatright, 2000; Rae & Wong, 2004). In 1998 a watershed moment occurred in the field of psychology when University of Pennsylvania psychologist Martin Seligman delivered his presidential address to the American Psychological Association. Seligman s speech launched the positive psychology movement, which seeks to empirically 38

40 study the conditions under which human flourishing takes place. The movement places emphasis on human strengths like optimism, courage, future-mindedness, hope, faith and honesty. Seligman (2005) calls these human strengths virtues, in effect, reversing almost seven decades of value-neutral language in the empirical study of traits. The literature is consistent with this renewed emphasis on virtue, arguing that business leadership is an inherently ethical pursuit. Effective leaders adhere to high ethical standards and behave in ways congruent with those standards (Parry & Proctor-Thomson, 2002). Moral integrity, conceptualized as a character of uncorrupted virtue (Montefiore & Vines, 1999), and leadership performance are inseparably bound in the eyes of followers (Kouzes & Posner, 1993; Engelbrecht, et al., 2005). The leadership characteristics most valued by followers, as well as other stakeholders, are honesty, integrity and truthfulness (Kouzes & Posner, 1987, 1993). Ethical behavior on the part of leaders contributes to employee commitment and satisfaction, and attracts and retains the best employees (Trevino et al., 2000). Integrity on the part of leaders fosters trust and good citizenship behaviors on the part of employees, which in turn contributes to the effectiveness of the organization (Organ & Ryan, 1995). VIRTUE IN A GLOBAL CONTEXT The last two decades have seen a resurgence of literature agreeing with the classical Greeks that virtue is constitutionally grounded part of human nature, and thus universal and not merely contextual. As MacIntyre argues in After Virtue (1984), the Aristotelian moral tradition is the best example we possess of a tradition whose adherents are rationally entitled to a high measure of confidence in its epistemological and moral resources (p. 277). Hursthouse (2001) argues for a single set of character traits that are natural to human beings, and that if present in individuals and societies, contribute to the welfare and functioning of the group or community. Hofstede (1980,1997) argues that friendship, love, ownership, work, and fairness in exchange are universal values found in diverse cultures around the globe. And with reference to vice, it is of note that Garofalo et al. (2001) fount that corruption is universally acknowledged as such. Peterson and Seligman (2004) make a persuasive case for the global relevance of virtue. On the basis of extensive historical and cross-cultural reviews, the authors present a classification of six primary virtues and 24 character strengths. They note that these High Six virtues are ubiquitously recognized and valued across time and across cultures, such that they border on the universal. The six are wisdom, courage, humanity, justice, temperance and transcendence (p. 15). These virtus (remarkably similar to the cardinal virtues) must be present at above threshold levels for an individual to be deemed of good character. The ubiquitous nature of virtue does not mean that virtue is similarly expressed in diverse cultural contexts. According to Rachels (1999), while the application of virtue may differ from culture to culture, the fact of virtue does not. 39

41 McCloskey Even in the most disparate societies, people face the same basic problems and have the same basic needs it may be true that in different societies the virtues are given somewhat different interpretations, and different sorts of actions are counted as satisfying them: and it may be true that some people, because they lead particular sorts of lives in particular sorts of circumstances, will have need of some virtues more than others. But it cannot be right to say simply that whether any particular character trait is a virtue is never anything more than a matter of social convention. The major virtues are mandated not by social convention but by the basic facts about our common human condition (pp ). Consequently, while the concept of virtue is ubiquitous, the social customs and practices through which they are expressed may vary considerably (Clegg & Redding, 1990; Steidlmeier, 1995). THE CARDINAL VIRTUES AND BUSINESS LEADERSHIP Prudence: The human capacity to perceive reality is limited and skewed. Prudence at least partially corrects for this. Prudence is a combination of foresight, humility and rationality put in service of the good. Prudence is manifested in four dimensions. First, prudence is displayed in practical discernment. Prudence sees. It enters circumstance with eyes wide open. It is the virtue of realism, objectivity and insight, especially in unexpected or unprecedented circumstances. Prudence shines in situations lacking rulebooks, and where decisive action must be taken. Second, prudence is humble in that it recognizes its limits and seeks to learn from others. The prudent person is openminded and recognizes the diverse and complex nature of reality. Third, prudence is a fitting response to the demands of reality set before us. According to Pieper (1966), Prudence implies a transformation of the knowledge of truth into decisions corresponding to reality (p. 162). The prudent person recognizes that a particular course of action is the right, worthy and noble thing to do. Fourth, prudence is future oriented. Our term prudence is related to the Latin providentia, which means foresight. The prudent person is forward looking. He or she anticipates whether a course of action will achieve a particular end and respects the future state that one s decisions and actions will likely cause. Prudence shines in the volatility, uncertainty, complexity and ambiguity that mark the global business context. Global leaders must stay effective in a variety of situations, none of which is exactly alike, and few of which call for pre-packaged responses based on formal rules. They must make sound decisions in contexts full of contingency, constraint, obstacles, opportunities, competing interests, unprecedented change, novel circumstances and systemic change. Prudent business leaders get to the bottom of what s going on here, 40

42 and choose a course of action that is fitting and appropriate for the situation. They are realistic. They respond to things as they are, not as they wish them to be, or mistakenly perceive them to be. They make sound decisions. They balance the pursuit of long-term goals with the necessities of the moment, and harmonize the conflicting goals and expectations of various segments of the company employees, customers, shareholders and other constituents. They see the critical variables in a situation, translate what they see into a plan of action, and execute the plan of action in the midst of fluid circumstances. They are future-oriented. They recognize what constitutes a good outcome and what does not, and act in a manner that avoids the one and secures the other. And perhaps most importantly, prudent leaders adopt a humble, learner s stance toward life and the business enterprise an exceptionally valuable asset in a global marketplace. Lacking prudence, the leader s good intentions may be undermined by thoughtlessness, insensitivity, shortsightedness, or self-centeredness (the assumption that others probably want and like what I want and like). The leader who lacks prudence may be mistaken as to what is beneficial or harmful in a particular situation. In a global leadership context full of contingency and competing agendas, the immediate imperative for the business leader is be prudent. Justice: Justice governs the relationship of individuals to one another, individuals to the community, and the community to individuals. Justice carries the ideas of fairness, equality, equity and proportionality, especially in one s dayto-day dealings with neighbors. Justice involves the willingness to take into account the rights, concerns and feelings of others. It is the moral habit of entering into the reality of the other and securing for that person what is rightfully due to them. This disposition to value the interests of the other does not come naturally. We are in bondage to self-interest, and consequently find it difficult to rise above the insecurity and anxiety that fuel our quest for personal gain, power and preeminence. Compte-Sponville (2001) calls justice equals without egos (p. 72) in that it makes irrelevant discrepancies in power, intelligence and social standing. The exercise of justice is foundational to effective business leadership in a global context. Business leaders depend on a high level of participation and collaborative effort from a diverse range of employees, shareholders and stakeholders. And this in turn depends on the exercise of justice to create a harmonious, properly ordered, respectful and fair place in which all that have a stake in the organization are free to fully contribute to its welfare and progress. Properly ordered does not mean well organized. Rather, it refers to an organization that pursues and manifests equitable order and honest exchange. The just leader insures that organization members, consumers, constituents and others are dealt with such that each gets her proper due, what he rightfully deserves given the fact that they are human beings with gifts and strengths, legitimate needs and expectations. Just leaders see to it that no member of the organization or its constituencies usurps the rightful place and contribution of others, and that everyone who has a stake in the organization is given appropriate 41

43 McCloskey access to resources, information and opportunities. The imperative of justice imposes on leaders a moral obligation that can never be fully or perfectly acquitted. The pursuit of justice is always a process, and often a messy and noisy one at that. The dynamic equation of merit and need, dependence, independence and interdependence, differential ability and diverse contribution is in a constant state of flux, and the balance scales of justice must be regularly recalibrated. In this fluid context, the business leader s highest contribution to justice may be to arrange for a civil and respectful dialogue around the varied expectations of employees, customers and constituents as to what constitutes a properly ordered organization, coupled with the readiness to reconsider what may be the proper due of others. If injustice prevails, if employees and others are not respected but are ignored, or forced to operate on a playing field that is tilted in favor of the leader s self-interest, trust, which is the fuel of collaboration, is eroded. No business organization can survive let alone compete if it lacks the trust of employees, customers, shareholders and constituents. Fortitude: Fortitude is firmness of spirit, constancy under difficulty. Fortitude willingly assumes risk and embraces vulnerability in service of the good. Fortitude is that which advances the individual in the face of hardship, emotional turmoil, physical harm, risk of loss of dignity, reputation, finances, health, position, even life itself. Fortitude is not blind or deaf to risk and danger. Its essence lies not in lacking fear it is not the adrenaline rush of the risk-taker, but in knowing fear and not allowing it to force us into complicity with evil, or to be kept by fear from the pursuit of the good. Fortitude is demonstrated in two ways advance and endurance. Fortitude takes the initiative to act in spite of the risk associated with the action. Fortitude is also demonstrated in bearing up and enduring under life s pain and pressures, especially those associated with pursuit of a noble cause. The exercise of fortitude is foundational to effective business leadership in a global context. Business leaders operate in an environment typified by opposition and risk. To stay effective, they must win the inner battle over human frailty and the temptation to choose security over service. Leaders with fortitude acknowledge their vulnerability, face their fears, and meet difficulty and danger with equanimity. McCall (1998) notes that effective global executives have the courage to take risks. The business leader with fortitude possesses the inner strength to act according to the dictates of his or her conscience, even in the face of opposition, whether internal as in facing one s own fear, or external as in facing the real threat of danger or loss. This means that the courageous business leader is well equipped to make difficult decisions, take unpopular stands, act when others hesitate, and pursue a difficult course of action. Without courage, writes Compte-Sponville (2001) we cannot hold out against the worst in ourselves and others (p. 50). Leaders lacking courage capitulate to their fears and succumb to the temptation to fit in, go along to get along, and generally to avoid the risk of loss. Without fortitude, when adversity strikes, the leader is likely to protect their reputation, secure their privileges and 42

44 comfort, and seek the course of action that will afford them and the organization the least difficulty a recipe for failure in a competitive global marketplace. Temperance: Temperance is the inner discipline of self-restraint, the strength to say no to harmful drives, impulses, and the inordinate desire for pleasure. Plato (1968) saw it as a matter of a man being his own master. Temperance, says Compte-Sponville (2001), is that moderation which allows us to be masters of our pleasure instead of becoming its slave (p. 39). The practice of temperance is an active self-defense of one s inner, moral order from that which would enslave the individual to act in accordance with his or her base, selfish desires and short-term interests. Temperance is the strength of selfdiscipline and self-restraint that keeps our passions and drives within proper limits, freeing us up to put our talent to constructive use. In this, temperance is akin to the psychological constructs of self-efficacy and self-regulation. The temperate person is able to manage his or her emotions and behaviors without outside help in the form of external constraints, or rewards and punishments. The exercise of temperance is foundational to effective business leadership. Effective leaders must find the inner strength to overcome all kinds of intoxication food, sex, alcohol and the most powerful leadership intoxicant, power itself. In this, temperance masters the desires that are the most regular in making demands on leaders. Leaders are regularly afforded the opportunity to use their power to pursue selfish interests and base desires at the expense of others, and ultimately to the detriment of the organization. But, the temperate leader withstands the pressure to pursue self-gratification or to act rashly to secure short-term interests. Plato (1968) observed that no community survives for long if its leaders are mastered by their worse self. The intemperate leader s inner life is a tangled mess of conflicting passions, wants and needs. As Heifetz and Linsky (2002) note, We all have hungers, expressions of our normal human needs. But sometimes those hungers disrupt our capacity to act wisely or purposefully these hungers may be so strong that they render us constantly vulnerable (p. 71). Overwhelmed by whims and excesses, the intemperate leader is rendered powerless to lead with prudence, justice and fortitude. Faith: Some who acknowledge the relevance of the four classical virtues to the work of business leadership might question the significance of the three theological virtues (faith, hope and love), and perhaps as virtues tied to a specific religious tradition they are potentially controversial. But to the extent that these too are universal (or ubiquitous) qualities (see Peterson & Seligman, 2004) these virtues may be expressed in ways that both the religious and secular person can affirm. In classical Greek literature, faith is akin to fidelity, which signifies an honored agreement or bond of trust. Fidelity is faithful and lasting devotion to one s duties and obligations, sacred loyalty to one s commitments, especially one s relational and community commitments. Faith is that which binds people together to a special purpose, a larger story if you will, which calls upon each community member to risk and sacrifice on behalf of one s friends and community. 43

45 McCloskey The exercise of faith is foundational to effective business leadership. McIntyre (1984) notes that humans are tellers of stories that aspire to truth (p. 216). In this sense, a faithful leader is a trustworthy storyteller. The leader informed by faith acknowledges that there is an important story beyond their individual story to which they and others owe allegiance. The faithful leader loves the truth of this larger story and so refuses to dissemble, mislead, cut corners, or shave the truth in the name of self-interest. Building on this fidelity, the leader sets the moral trajectory of the organization by connecting its daily life to a larger, transcendent vision, thereby fostering a collective sense of special purpose that propels the organization forward in pursuit of its good. As Gilbert Meilaender (1984) put it, An ethic which focuses on virtue rather than duty will tend to make vision central in the moral life (p. ix). Faithful leaders infuse the organization with a moral purpose and vision, a good and compelling reason, the why, which prompts employees and others to sacrifice, collaborate and to go the proverbial extra mile in service of the organization s larger purpose. Without faith, the organization is likely to be awash in corroding cynicism and paralyzing anxiety. Without faith, the collective life of the organization is a random sequence of discreet actions that mean nothing and take it nowhere. Without faith, there is no why, no larger story to promote and sustain collaboration and mutual sacrifice. Without faith, there is no point or progress, meaning or movement. Without faith, there can be no long-term loyalty, only contractual arrangements, reducing the organization to a temporary assemblage of individuals with short-term agendas motivated by self-interest. Hope: Hope is an expectation of a future good mingled with the understanding that this good is never guaranteed and that the obstacles are many to its fulfillment. It is steadfast confidence mixed with a realistic sense of contingency. Hope is manifested in the tension between an inadequate or unacceptable today, where expectations are yet to be realized, and the anticipation of a better tomorrow, when these expectations will be substantially fulfilled. It is of note that our term expectant comes from the Latin specere, which means, to look or to see. (Spectator comes from the same word). Hopeful people see the possibilities for a better future, and what they see fills them with positive energy. The exercise of hope is foundational to effective business leadership. Change, if it comes at all, often arrives in bits and pieces. There may be little or no evidence of progress despite the best efforts of the organization and its leaders. The sacrificial efforts of the leader and employees may be rewarded only with further delay and difficulty. As the organization lives through months and years marked by the discrepancy between effort expended and outcomes achieved, energy flags and morale falters. Hopeful leaders infuse the organization with the positive emotional energy to sustain the journey, especially when the road to a better tomorrow proves longer and more difficult than first imagined. Hopeful leaders do not allow the painful realities of today to obscure their vision for a better tomorrow, thus depriving the organization of the practical 44

46 benefits of high morale. But neither do they allow the expectation of a better tomorrow to disconnect them from the harsh realities of today. Hopeful leaders live in this tension, infusing the organization with the deep conviction that every day is pulsing with potential for progress, and yet this progress will not come easily. The opposite of hope is despair, which means, to lack hope. A despairing leader lacks the energy to continue in the face of difficulty and delay. Snyder (1991) found that people with high hope have (1) a greater number of goals across various arenas of life; (2) select more difficult goals; and (3) see their goals in a more challenging and positive manner. People with low hope, predictably are associated with the opposite attitudes fewer, easier goals and a negative stance toward present difficulties. Hopeless leaders settle for mediocrity and exude low energy and morale. Without hope, collective, sacrificial effort is not possible. Eric Hoffer (1951) observed, The self-sacrifice involved in mutual sharing and co-operative action is impossible without hope. When today is all there is, we grab all we can and hold on On the other hand, when everything is ahead and yet to come, we find it easy to share all we have and to forgo advantages within our grasp (p. 68). Love: Perhaps the greatest discrepancy between the Judeo-Christian conception of virtue and that of the classical Greeks is around the idea of love. Aristotle s (1999) conception of phileo or friendship-oriented love is based in the recognition of the value and worthiness of the person loved. Philia chooses whom to love with calculation and deliberation. Christian agape love does not suspend its moral concern for others and outsiders, even enemies. Agape love is dependent on the selfless character of the one doing the loving. It does not need reciprocation to fuel the next round of loving and thus is radically free of self-interest. In this lack of calculation and deliberation, agape surpasses philia. Agape love places prudence, justice, courage, temperance, faith and hope in the service of others those not like us, or those we may not even like. In this, agape love is an active moral force in the world, creating the capacity in individuals and organizations to relate to others in a radically new manner. The empirical research substitutes the construct of altruism for agape love. Altruism is behavior intended to benefit others without the expectation of external rewards. While altruism is not the same as agape, nevertheless, it is of note that the literature suggests a positive association between selfless concern and leadership effectiveness. Altruism is recognized as a core ethical principle of leadership (Engelbrecht, 2002). Engelbrecht et al. (2005) found that forty percent of the variance in transformational leadership effectiveness could be statistically explained in terms of variance in altruism. Altruistic leaders avoid using power for personal gain but instead use it in socially constructive ways in the service of others (Engelbrecht et al., 2005; Bass & Steidlmeier, 1999). The demonstration of altruism by leaders is associated with higher levels of trust-based relationships between leaders and followers, and aids mutual commitment to the organization s goals, as well as exceptional levels of performance (Engelbrecht, 2002). 45

47 McCloskey Without love, the organization is not likely to be a good corporate citizen. But, effective business leaders transcend self-interest their own, and on occasion, that of the organization they lead. Altruistic leaders do not allow the organization to confine its moral concern to its own, or those who serve its selfinterest. Business leaders motivated by love extend the virtue and resources of the organization outward such that the organization accomplishes something of value, something good for others. INTEGRATING VIRTUE INTO A BUSINESS CURRICULUM The integration of the concept and practice of virtue into a business leadership curriculum is guided by three considerations. First, the cardinal virtues are a constructive starting point to begin the discussion about the connection between virtue and effective business leadership. While this list is not sacrosanct, it does have global appeal and accords to a significant degree with the empirical research. As Bass and Steidlmeier (1999) state, An approach to ethics based upon moral character and virtue enjoys an extraordinarily broad crosscultural base in terms of the framing narratives that guide ethical discourse in cultural settings as diverse as Western and Confucian traditions (p. 193). Second, if virtue is to be properly integrated into a business education curriculum, a compelling case must be made for the vital relationship between the practice of virtue and the requisite competencies for effective business leadership. For instance, the leader s virtue must be linked to the creation, sustenance and extension of a particular kind of organization one of moral vision inhabited by virtuous men and women working collaboratively to serve not only the interests of the organization, but the interests of others, including customers, constituents and the larger society. Virtue must be linked to effective leadership practices like vision casting, formulating strategy and leading the organization in a process of constructive change. Additionally, a strong case can be made in the negative by emphasizing virtue as a fortification against the worst in human nature. The cardinal virtues are sometimes referred to as sentinel virtues in that they serve a protective function for the organization against the dark side of the human experience. Additionally, virtue guards against the danger of non-virtuous competence. As Block (1993) observes, Our doubts are not about our leader s talents, but about their trustworthiness. We are unsure whether they are serving their institutions or themselves (p. 9). Third, the case must be made that virtue is not a business success strategy. By definition, virtue is not that which is negotiated or coaxed out of us by external rewards. If virtue is practiced because of the presumed payoff it is not genuine virtue. Rather, in accordance with the teaching of Aristotle (1999), virtue is pursued for the sake of eudaimonia, the good life, and not for the sake of utility in securing, what MacIntyre (1984) calls external goods such as status, success and privilege. In fact, the exercise of virtue may prove a stumbling block to ambition or worldly success. MacIntyre (1984) states, yet notoriously the cultivation of truthfulness, justice and courage will often, the world being what it contingently is, bar us from being rich, or famous or 46

48 powerful (p. 196). The exercise of virtue, then, is not a personal success strategy, or tool for enhanced leadership performance. As the saying goes, virtue is its own reward. The goal of training business leaders in virtue is not to find perfect leaders, but rather to educate and develop men and women with the potential to provide, despite their acknowledged limitations (humility being a virtuous quality in a leader), the kind of leadership a business organization needs to flourish in a global economy. The aim is not to find saints to lead us, but to identify and develop people trying to live virtuously and largely succeeding. REFERENCES Allport, G. W. (1921). Personality and Character. Psychological Bulletin, 18, Allport, G. W. (1927). Concepts of Trait and Personality. Psychological Bulletin, 24, Anscombe, G. E. M. (1958). Modern Moral Philosophy. Philosophy, 33, Aquinas, Saint Thomas. (1989). Summa Theologiae. Westminster, MD: Christian Classics. Aristotle. (1999). Nicomachean Ethics. Indianapolis, IN: Hackett Publishing Company. Badaracco, J. L. (1997). Defining Moments: When Managers Must Choose Between Right and Right. Boston: Harvard Business School Press. Bass, B. M., & Steidlmeier, P. (1999). Ethics, Character and Authentic Transformational Leadership. Leadership Quarterly, 10, 2, Block, P. (1993). Stewardship: Choosing Service Over Self-Interest. San Francisco: Berrett-Koehler Publishers, San Francisco: Jossey-Bass. Boatright, J. R. (2000). Ethics and the Conduct of Business. Upper Saddle River, NJ: Prentice Hall. Burns, J. M. (1978). Leadership. New York: Harper & Row. Clegg, S. R., & Redding, S. G. (1990). Capitalism in Contrasting Cultures. Berlin and New York, NY: Walter de Gruyter. Cloud, H. (2006). Integrity. New York: HarperCollins. Collins, J. (2001a). Good to Great. York: HarperBusiness. Collins, J. (2001b). Level 5 leadership: The triumph of Humility and Fierce Resolve. Harvard Business Review, 79, 1, Compte-Sponville, A. (2001). A Small Treatise on the Great Virtues. New York: Metropolitan Books. Engelbrecht, A. S. (2002). The Effect of Organisational Leadership on Value Congruence and Effectiveness: An Integrated Model. South African Journal of Economic & Management Sciences, 5, 3, Engelbrecht, A., Van Aswegen, A., & Theron, C. (2005). The Effect of Ethical Values on Leadership and Ethical Climate in Organisations. South African Journal of Business Management, 36, 2, Foot, P. (2003). Natural Goodness. New York. Oxford University Press. 47

49 McCloskey Garofalo, C., Geuras, D., Lynch, T., & Lynch, C. (2001). Applying Virtue Ethics to the Challenge of Corruption. Innovation Journal, 6, 2, Heifetz, R., & Linsky, M. (2002). A Survival Guide for Leaders. Harvard Business Review, June, Hoffer, E. (1951). The True Believer. New York: Harper & Row. Hofstede, G. (1980). Culture s Consequences. Beverly Hills, CA: Sage Hofstede, G. (1997). Cultures and Organizations. New York: McGraw-Hill Hursthouse. R. (2001). On Virtue Ethics. New York: Oxford University Press. Kellerman, B. (2004). Leadership Warts and All. Harvard Business Review, January, Koehn, D. (1998). Employee Vice: Some Competing Models. Business Ethics Quarterly, 8, 1, Koehn, D. (2001). Confucian Trustworthiness and the Practice of Business in China. Business Ethics Quarterly, 11, 3, Kouzes, J. M., & Posner, B. Z. (1987). The Leadership Challenge. San Francisco: Jossey-Bass. Kouzes, J. M., & Posner, B. Z. (1993). Credibility. San Francisco: Jossey-Bass. MacIntyre, A. (1984). After Virtue: A Study in Moral Theology. Notre Dame, IN: University of Notre Dame Press. Maitland, I. (1997). Virtuous Markets: The Market as a School of Virtue. Business. Ethics Quarterly, 7, McCall, W. W. (1998). High Flyers: Developing the Next Generation of Leader. Boston: Harvard Business School Press. Meilaender, G. C. (1984). The Theory and Practice of Virtue. Notre Dame, IN: University of Notre Dame Press. Montefiore, A., & Vines, D. (1999). Integrity in the Public and Private Domains. London: Routledge. Newton, J. A. (2006). Permission to Steal: Revealing the Roots of Corporate Scandal. Malden, MA: Wiley-Blackwell. Nicholson, I. A. M. (1998). Gordon Allport, Character, and the Culture of Personality: History of Psychology, 1, Organ, D. W., & Ryan, K. (1995). A Meta-analytic Review of Attitudinal and Dispositional Predictors of Organizational Citizenship Behavior. Personnel Psychology, 48, Parry, K. W., & Proctor-Thomson, S. B. (2002). Perceived Integrity of Transformational Leaders in Organisational Settings. Journal of Business Ethics, 35, Peterson, C., & Seligman, M. E. P. (2004). Character Strengths and Virtues. Oxford, England: Oxford University Press. Pieper, J. (1966). The Four Cardinal Virtues. Notre Dame, IN: University of Notre Dame Press. Pittinsky, T. L., Rosenthal, S. A., Welle, B., & Montoya, R. M. (2005). National Leadership Index 2005: A National Study of Confidence in Leadership. 48

50 Cambridge, MA: Center for Public Leadership, John F. Kennedy School Government, Harvard University. Plato (1968). The Republic. New York: Basic Books. Rachels, J. (1999). The Elements of Moral Philosophy. New York: McGraw-Hill. Rae, S. B., & Wong, K. L. (2004). Beyond Integrity. Grand Rapids, MI: Zondervan. Seeholzer, D. (2007). Character Crucial in the NFL Draft. St. Paul Pioneer Press, April 27, 2007, ID, 7D. Seligman, M. E. P., Park, N., & Peterson, C. (2005). Positive Psychology Progress: Empirical Validation of Interventions. American Psychologist, 60, 5, Snyder, C. R. (1991). The Will and the Ways. Journal of Personality and Social Psychology, 60, 4, Steidlmeier, P. (1995). Strategic Management of the China Venture. Westport, CT: Quorum Books. Terris, D. (2006). Ethics at Work. Lebanon, NH: Brandeis University Press. Trevino, L. K., Hartman, L. P., & Brown, M. (2000). Moral Person and Moral Manager: How Executives Develop a Reputation for Ethical Leadership. California Management Review, 42, 4, Wilson, J. Q. (1995) On Character: Essays by James Q. Wilson. AEI Press, Washington,DC. 49

51 Vol. 1, No. 1; Fall 2009/March 2010 A TRANSDISCIPLINARY ANDRAGOGY FOR LEADERSHIP DEVELOPMENT IN A POSTMODERN CONTEXT: PRELIMINARY FINDINGS Elaine M. Saunders University of South Africa Abstract: The paper explores the complex nature of the postmodern world in which leaders find themselves and questions the appropriateness of the current discipline-based structure of MBA education in terms of its usefulness to develop effective postmodern leaders. Transdisciplinarity, which focuses on bringing together different perspectives, provides a useful platform where developing leaders can engage with the dynamic and complex environment of a postmodern era. The nature of transdisciplinarity, from the perspective of a number of theorists, is presented. Furthermore, synergies between the transdisciplinarity approach and the nature of postmodern leadership are identified and analysed. The paper examines synergies between transdisciplinarity and other scientific paradigms such as social constructivism, critical management theory, postmodernism, social cognitive theory, critical pedagogy, systems theory, complexity theory, cybernetics, narrative psychology, critical reflectivity, and others. The methodology is qualitative and involves the observation of a number of lecturing sessions at Business Schools in the United Kingdom, United States and South Africa, with the objective of noting whether any elements of transdisciplinary learning were evident. These observations were followed up with individual interviews with selected lecturers. The paper concludes with an analytical discourse on the value that a transdisciplinary pedagogy can add to leadership development, particularly in relation to assisting students with embracing the complex challenges of leading in a postmodern era. INTRODUCTION AND LITERATURE REVIEW The research aims to address the current inadequacies in leadership development andragogy in regard to post-graduate business education, in particular Master of Business Administration (MBA) programs, and to respond to some of the criticisms that have been raised in this regard. Problems relating to the competence of leaders is evident in the fact that during the year 2000, forty CEO s of Fortune s top 200 companies were fired or asked to resign (Bossidy & Charan, 2002.). Furthermore, for every successful new business there are 22 failures, the average life span for those that survive start-up is only 11,5 years, every year 30 companies drop off the Fortune 500 list and, lastly, the average life span of firms on the S&P 500 is 25 years (Morris, 2003). The S&P (Standard and Poor) 500 is a value-weighted index published since 1957 that includes the stocks of large public companies which trade actively on the New York Stock Exchange and the NASDAQ. Further evidence shows that poor leadership 50

52 performance has resulted in high turnover and a related average tenure for CEO s of around 18 months (Charan, 2005). Atwater, Kannan and Stephens (2008) criticize business curricula for being functionally isolated. This results in the failure of students to understand the way in which the parts of organizations work together. Transdisciplinarity: In distinguishing between multi and transdisciplinarity, Horlick-Jones and Sime (2004) in a discourse on the nomenclature of multi and transdisciplinarity suggest that the former relates to different disciplinary perspectives relating to the same entity. That is, there is cooperation between the disciplines but the methodology of a discipline-based process remains intact. Thompson Klein s (2004) description of transdisciplinarity is utilised as the focus of this study. The notable element of this definition is the generation of new knowledge and it is this generation of new knowledge that differentiates transdisciplinarity from inter, cross and multi disciplinarity where disciplines interact but no new knowledge is generated. Inter-disciplinarity is a broad term used to describe problem solving communities who are representative of many different disciplines. Inter, cross and multi disciplinarity, are often used interchangeably and refer to the act of joining two or more disciplines in problem solving, for example we might include medical, organizational and political representatives in discussing the problem of HIV/Aids. In this instance the different disciplines interact in providing insights to the problem, but the boundaries between the disciplines remain intact. Interdisciplinarity involves the interaction of many disciplines. The defining nature of transdisciplinarity is that is transgresses discipline boundaries, it dissolves boundaries and violates disciplinary rules. What emerges from a transdisciplinary process is very different from the inputs. The process of transdisciplinarity generates new knowledge through the interaction and engagement of various disciplines, whereas purely interdisciplinary engagements do not generate new knowledge, they use current theories and information and apply them to problems. Thompson Klein s (2004) definition is as follows : The emergent quality of transdisciplinarity is that rational knowledge emerges not only from what we know but how we communicate it. Stakeholders enter into a process of negotiation, confronting knowledge from four (by example) kinds of knowledge in a series of encounters that allow representatives of each type to express their views and proposals. In the process of fifth type of knowledge progressively emerges. It is a kind of hybrid product, the result of making sense together. Intersubjectivity is a critical element of transdisciplinarity and requires an on-going effort to create mutual understanding. (p. 4) The notion of transdisciplinarity is synergistic with Gestalt theory in the sense that the end result is greater than the sum of its parts (Kelly, 1994). 51

53 Saunders Habermas (1979), in advocating communicative action, a concept with strong synergies with transdisciplinarity, suggests that the following are indicators of a complex-informed pedagogy, appropriate in the postmodern context : Freedom to enter a discourse, check questionable claims, evaluate explanation and justifications Freedom to modify a given conceptual framework and alter norms; Mutual understanding between participants; Equal opportunity for dialogue that abides by the validity claims of truth, legitimacy, sincerity and comprehensibility, and recognises the legitimacy of each subject to participate in the dialogue as an autonomous and equal partner; Equal opportunity for discussion, and the achieved-negotiated-consensus resulting from discussion deriving from the force of the better argument alone, and not from the positional power of the participants; Exclusion of all motives except for the cooperative search for truth. The concept of transdisciplinarity has emerged in tandem with the postmodern era in response to inadequacies in interdisciplinarity problem solving. It offers a solution in terms of responding to postmodern problems which are complex, fluid, ambiguous and unpredictable at best. Postmodernism: A definition of postmodernism supposes a somewhat circular rationale as the nature of postmodernism is to proscribe rigid descriptions and rule structures. Many postmodern theorists cannot agree on a definition of the term. Since the meaning of modernism is somewhat ambiguous, it follows that it is even more difficult to achieve consensus on postmodernism (Harvey, 1990). What does seem to achieve consensus, is that postmodernism has arisen as a result of social transformation in the latter half of the 20 th century (Lyotard, 1979). Lyotard (ibid) states that technology has largely been the catalyst that has precipitated this transformation. Huyssens (1984), in writing about postmodernism, states that...in an important sector of our culture there is a noticeable shift in sensibility, practices and discourse formations which distinguishes a postmodern set of assumptions, experiences and propositions from that of a preceding period. A startling characteristic of postmodernism is defined by Harvey (ibid) as its total acceptance of the ephemerality, fragmentation, discontinuity, and the chaos.... Harvey further describes the hallmarks of postmodernism as indeterminacy, intense distrust of all universal or totalizing discourses suggesting that general truths are repudiated and contextual truth, i.e. a temporal, context related truth, is all that can be defended. In relation to postmodernism, Rorty (1979) speaks of pragmatism in the philosophy of science, Kuhn (1962) and Feyerabend (1975) talk of a shift of ideas about the philosophy of science and Foucault (1972) emphasises discontinuity and polymorphous correlations in place of simple or complex causality. Whereas the modern era attempted to create order out of these 52

54 elements, the postmodern era dismisses the need for order and calls for flexibility, ambiguity and unpredictability to be embraced (Klages, 2007). Postmodernism in Organizations: Hussard and Parker (1993) argue that postmodernism is a signifier of a historical periodization as well as a theoretical perspective. In the first use, postmodernism refers to an epoch where the post prefix is related to a number of other features of a post-modern society for example post-fordism, post-capitalism, post-industrialism. A theme associated with many of these is that the social and economic structures reproduced since the industrial revolution are now fragmenting into diverse networks held together by information technology and postmodern sensibilities that emphasize complexity, flexibility and instability in organizations. In contrast, postmodernism as a theoretical perspective, focuses on its epistemology. Postmodern epistemology suggests that the world is constituted by our shared language and that we can only know the world through the particular forms of discourse our language creates. Complexity Theory: Morrison (2008) connects education philosophy and complexity theory in an interesting discourse on complexity within organizations. A simplistic view of complexity theory is based on a systems view of organizations being open entities which survive through mechanisms of feedback, open systems, learning, adaptability, communication and emergence. On a more complex level, Morrison talks of the organization as a self organizing system which is autocatalytic (self changing) and demonstrates autopoiesis, a process of self creation. For Morrison the constant evolution of the system, in this case the school and in this research the organization and its environment, constantly evolve to higher and higher levels of complexity. In his theoretical model feedback is the engine for transformation and the adaptive capability of the system to its environmental challenges which ensures its survival. Connectedness demonstrates the interdependability of all parts of the system and reminds us of the interdependent nature of transdisciplinary groups. Morrison speaks of the quality of emergence which does not evolve according to some central grand design, but is rather an antithesis of control and predictability. Here we notice the nuances of compatibility with the postmodern paradigm. Another term common to the language of postmodernism is chaos Morrison (ibid) says that complexity resides at the edge of chaos, that is at the point where the system threatens to collapse, the point of complete unpredictability. Order is not imposed, it emerges in an unpredictable manner. The above quotation illustrates the open, complex environment of postmodernism and the networking between people. The element of rich diversity is reminiscent of a context where transdisciplinarity can serve as an effective platform for creative decision making such as is needed in changing and unpredictable environments. This led to a curiosity about andragogy in leadership development and a question as to whether our current methodology for developing leaders for immersion in the postmodern world, is in fact the most effective method. It would appear that current learning methodology for leadership development tends to be disciplinary and not inter-, multi- or transdisciplinary. As such the learning environment of 53

55 Saunders developing leaders lacks synergy with the complexity of the postmodern context within which leaders currently have to operate. Day (2001) reviewed leadership development andragogy and argued that the popular forms of teaching such as classroom teaching, coaching, mentoring, networking, job assignments and action learning, fall short, some in more ways than others, because they tend to underplay the importance of the development of social capital in leadership development. This theorist describes the process of developing social capital as building networked relationships among individuals that enhance co-operation and resource exchange in creating organizational value (Bouty, 2000; Tsai & Goshal, 1998). This kind of development cannot take place in classrooms, but evolves as groups of leaders interact together to learn about leadership. Although Day (ibid) does not directly discuss transdisciplinarity, the shortfalls that he highlights in current leadership development could be addressed by introducing a transdisciplinary andragogy. The methodologies mentioned by Day (ibid) as most conducive to adaptation for the inclusion of a transdisciplinary approach are transdisciplinary teams, group coaching, networking and action learning. This is because all these learning methodologies involve group interaction and learning from each other. Transdisciplinarity can take this interaction to a new level where leaders would grapple with postmodern problems and would generate new knowledge in the resolution of these problems. Day (ibid) also alludes to the issue of complexity by referring to the transforming element of leadership development as leaders evolve to higher levels of integration and differentiation. Further reading, with the objective of tracing the nature and origins of transdisciplinarity, revealed that it was first mentioned in the 1980 s by scholars such as Piaget, Morin and Jantsch with specific reference to education (Nicolescu, 2002). The term was coined by these theorists as a result of the inadequacy of the terms multi- and inter-disciplinarity. They felt that knowledge production was extending beyond the mere incorporation of input from various disciplines. The originating research and the first attempts to address transdisciplinarity as a credible science appear to be undertaken by a Romanian quantum physicist by the name of Basarab Nicolescu. He contributed to many collaborative transdisciplinary enterprises and founded the Centre International de Recherches et Etudes Transdisciplaires (CIRET). He also formulated the Transdisciplinary Charter and a Manifesto of Transdisciplinary for the 21 st Century. The Charter was adopted at the First World Congress of Transdisciplinarity held in Portugal in November Nicolescu s studies in quantum physics revealed the complexity of the modern world. He claimed that reality exists on many levels and that transdisciplinarity is the only mode of knowledge production that can deal with many levels at once. Thompson Klein (2004), from Wayne State University in the United States of America has extended the debate around transdisciplinarity from the European base of Nicolescu (ibid) and Nowotony (ibid) to provide a western contribution. She writes on the notion of complexity and transdisciplinarity and highlights that the new science of complexity has emerged recently (in the latter half of the 20 th 54

56 Century) and that this has been the catalyst in the emergence of transdisciplinarity as a mechanism that is more appropriate for knowledge production in a complex world, than the traditional linear approach which characterises the nature and structure of modern universities. Nicolescu (ibid) acknowledges the contribution of Ron Burnett from Canada to the science of transdisciplinarity (Burnett, 2005). These four theorists, Nicolescu (ibid) and Nowotny (ibid) from Europe and Thompson-Klein (ibid) and Burnett (ibid), from America and Canada respectively, appear to be the key theorists who have developed the notion and science of transdisciplinarity and their writings form the foundation of this research. Further reading around the concept of transdisciplinarity revealed many criticisms relating to the inadequacy of the disciplinary approach to knowledge acquisition, particularly in relation to the complexity of the postmodern era. Transdisciplinarity emerged as a result of what was seen as inadequacies in the traditional discipline-based structures of universities and business schools, who teach emerging leaders their trade. This traditional approach lacked the integration between disciplines that was becoming increasingly necessary for approaching complex problems in leadership in the postmodern context. The postmodern world is characterised by complexity and this complexity is reflected in diversity, paradox, ambiguity, constant transformation and change. The author s interpretation of transdisciplinarity offers an integrated approach to learning which has a Gestalt quality, because it creates a melting pot of different perspectives from relevant disciplines that results in an output that is greater than the sum of its parts, i.e. new knowledge is created. This new knowledge is one of the defining aspects of transdisciplinarity and distinguishes it from multi- and inter-disciplinarity. In summary, this research explores the complex nature of the postmodern world in which leaders find themselves, and questions the appropriateness of the current discipline-based structure of higher education in terms of its usefulness to develop effective postmodern leaders. What is called for, is an approach to problem solving that is heuristic and a tolerance for the temporal nature of solutions, flexibility, and multiple perspectives and inputs. Transdisciplinarity, which focuses on bringing together these different perspectives, may provide a useful platform where developing leaders can engage in problem resolution within the dynamic and complex environment of a postmodern era. The nature of transdisciplinarity, from the perspective of a number of theorists, is presented and synergies between the transdisciplinary approach and the nature of postmodern leadership are identified and analysed. The research examines synergies between transdisciplinarity and other scientific paradigms such as social constructivism, social cognitive theory, critical pedagogy, systems theory, critical management theory, postmodernism, complexity theory, cybernetics, binary and hybrid systems, narrative psychology, critical reflectivity, and critical management studies. 55

57 Saunders A MULTIPLE CASE STUDY OF BUSINESS SCHOOLS Research Design: The methodology is qualitative. It includes the observation of Master of Business Administration (MBA) programs in Business Schools, supported by individual interviews with lecturers. The choice of these programs is based on the fact that MBA programs have traditionally been the means for developing generations of leaders. The research methodology utilizes observations which will aim to identify the use of transdisciplinary learning measures in the classroom, utilizing the indicators of communicative action suggested by Habermas (1979) as a basis for identifying instances of transdisciplinary learning in the classroom situation, as well as other elements identified within the transdisciplinary paradigm. Habermas s (ibid) notion of communicative action has strong synergies with the concept of transdisciplinarity. These synergies are considered to be sufficiently strong to support the application of Habermas s model of communicative action to this study. The research design is cross-sectional, thus the data will be collected globally from business schools in the United States of America and the United Kingdom. The study is currently being extended to include schools from South Africa and additional schools from Europe. The researcher attended classes in each case, followed by interviews with all the lecturers involved. The Deans of the schools were also interviewed in order to gain a management perspective on issues relating to leadership development in a postmodern context. Curriculum documentation was also studied in order to ascertain the content of MBA programs in the various schools. RESEARCH RESULTS Main Themes in the Research: In line with the objectives of the research, data was collected around awareness of interdisciplinary learning and transdisciplinary learning. Interestingly, in all three schools there was an awareness of the need to link disciplines in leadership development, and the degree to which this was present varied from just an acknowledgement of the need, to two schools who were already engaged actively in interdisciplinary processes. An examination of the curriculum relating to these interdisciplinary processes revealed some innovative thinking and some flaws. None of the schools had attempted to create groups representing the various disciplines, in fact, in most instances the groups were randomly formed by the students themselves. In some instances the integration exercises seemed to focus more on opportunities for experiential and action learning, rather than having an interdisciplinary feature as the core. In some instances faculty from different disciplines collaborated both in terms of the development of curriculum, and also in interacting during the delivery of modules in order to support an interdisciplinary process. One innovative example of this was the lecturer in team building, integrating with a finance/business module in order to assist the students in building high performance teams for their group projects in finance. Although this does not reflect a pure interdisciplinary process where all 56

58 disciplines meet to address a postmodern problem, it is nonetheless a good start. Thirty percent of the sample, when asked about their concerns about current leadership development methodology, spoke of a need to link the core disciplines traditionally associated with MBA programs. Seventy percent of the sample of lecturers responded positively when they were asked if they were familiar with the term interdisciplinary learning, and generally it was felt that this was a very positive addition to the learning methodology for developing leaders. Only three of the lecturers had not heard of interdisciplinary learning. This contrasted with the fact that none of the lecturers in the sample were familiar with transdisciplinarity, although some did attempt a definition. Invariably their definitions were confused with interdisciplinarity. Once the researcher gave a definition of transdisciplinarity and outlined the differentiating factors between that and interdisciplinarity, all the lecturers interviewed agreed that this would be a very beneficial methodology to apply to the development of leaders who would go on to deal with the challenges of a postmodern world. The elements of transdisciplinarity that were most valued by the lecturers were the framework that it lays for critical and innovative thinking, as well as its characteristics of being a knowledge generating unit. Although all the lecturers were enthusiastic regarding the concept of transdisciplinarity, they almost unanimously expressed a concern about how to go about implementing transdisciplinarity in the development of leaders. The concerns of lecturers around traditional leadership development methodology have resulted in these lecturers introducing more experiential and action learning exercises, and interdisciplinary processes. In this respect the lecturers had displayed a great deal of innovation in terms of the way they utilized case studies in group interactions. Various other innovations including games, tasking the students with bringing in their own guest lecturers, building posters, making videos, creative role plays and the use of movies as case studies, were amongst some of the very useful and innovative learning methodologies introduced by the lecturers. Interdisciplinarity was evident to some degree in these methodologies, but certainly not in all. It was clear, however, that none of the lecturers had taken the leap of faith towards a transdisciplinary process and given their lack of exposure to this concept, this is understandable. When asked what kind of challenges they believed that the students would face as leaders in the 21 st Century, or the postmodern context, the following key themes emerged : They will operate in a global economy and they will be faced with increased competition from all parts of the world. A constant pursuit of knowledge will allow students to stay ahead of the global market with innovative solutions and creative ways of going about their business. Running alongside this theme relating to the need for leaders to be creative thinkers, was a concern that current learning methodologies in MBA classes do not sufficiently stimulate or encourage critical and creative thinking. 57

59 Saunders They will need to be able to work in a context of diversity and be able to get along with people from different cultures. One lecturer felt that well developed interpersonal skills would be a great ally in dealing with the conflictual nature of a heterogenous and diverse environment. Outsourcing will be the norm, as will intense competition. Small windows of competitive opportunity will arise and will need to be seized and positively exploited to ensure survival Problems will be complex and messy, and there will be no clear solutions. Preconceived notions will be challenged. The context of problem solving will be ambiguous, the nature of problems strange, unprecedented, challenging and unpredictable. They will need to be able to respond positively to continuous and complex change There were strong themes around the role of a leader as a steward in society. As a result, ethics as an important part of the MBA curriculum became apparent and two of the schools already had Business Ethics as a module in the MBA. Interestingly, a number of lecturers (40% of the sample), questioned whether MBA classes were developing leaders. Their concerns were posited around the debate that leaders are born, not made. Capitalism was generally seen as positive by the lecturers and deans, however, the point was raised that greed is a distortion of capitalism and that this would destabilise the capitalistic system. There was agreement amongst lecturers who addressed the issue of the current credit crisis, that one of the problems related to this was the adoption of the rational, linear models of risk management. Such models, that have their basis in the assumption of perfect knowledge and that the economy would follow a set of basic laws that would result in equilibrium, was at the heart of the current crisis. The postmodern world is not characterized by the degree of predictability that these Newtonian models depend on. Link to the Research Question: This research questions whether there are problems with traditional methodologies in leadership development. It particularly questions the lack of synergies between current learning methodology and the nature of the postmodern world. The former reflects a very structured, hierarchical, silo d approach to learning, whilst the latter shows no such symmetry. By contrast it is characterized rather by chaos, unpredictability and complex, messy problems. The notion of transdisciplinary learning with its characteristic of a team as a knowledge generating unit, empowered to search out innovative solutions to messy, complex problems, appears to have the potential to bridge the gap between the structure and predictability of the business school classroom, and the environment or context, which the student would be plunged into upon leaving the safety of that classroom. In looking at the concerns raised by the lecturers who were 58

60 interviewed, and in particular at the concerns regarding linking disciplines and encouraging critical thinking, it would appear that the process of transdisciplinary learning has an excellent contribution to make. The fact that a number of lecturers and colleges have acknowledged the need for the integration of the disciplines, and the fact that they have already made tentative forays into the world of interdisciplinary learning, shows that they have acknowledged a need to do things differently. However, interdisciplinary learning is likely to fall short of their expectations, because it will not necessarily support critical thinking, nor will it provide a framework for knowledge generation. The move to transdisciplinary from interdisciplinary is a conscious one which will require some significant paradigmatic transformation and the sacrificing of some academic holy cows. Transdisciplinarity requires that: Lecturers release the role of the expert and embrace a more egalitarian power dynamic in the classroom in order to empower learners to engage in unfettered, genuine knowledge production. They should be comfortable in the role of co-learner. Teams be representative of disciplines. This would emulate the real world situation where leaders would be working in a management team which would necessarily reflect representivity from all organizational disciplines. The issue of compliance with the requirements of accreditation bodies would need to be addressed. The need for concrete measurement and outcomes that is normally associated with these bodies, was seen by some of the lecturers as getting in the way of creative transformation in learning methodology. Grading would not be able to conform to set predictable outcomes, based on current theoretical models, but somehow the ability of the students to create new knowledge, and the quality of that knowledge, would need to be assessed and evaluated. Lecturers will need to acknowledge that a simple move to interdisciplinarity and integration will fall far short of assisting students to grapple with the complexity of the postmodern leadership context. Students would need to be freed from the constraints of current theoretical models and encouraged to challenge, evaluate and re-examine extant theory in the light of its usefulness in application to messy, postmodern problems. CONCLUDING COMMENTS The aforegoing suggests that integrating a transdisciplinary andragogy into the MBA tuition model would add significant value to the development of leaders who live and work in the complex context of the postmodern era. Interdisciplinary teams that were engaged in knowledge generation would, of necessity encourage and develop critical and innovative thinking in students. The freedom of engagement in transdisciplinary teams, the quality of deep discourse and the depth of interpersonal engagement is an ideal forum for 59

61 Saunders grappling with complex, messy postmodern problems. The egalitarian relationship between the teacher and the taught creates a context where students have to be accountable for learning and the decisions they make, as they would have to in the real world. The meaningful relationships and quality discourse that would emerge from these transdisciplinary teams would further enhance the ability of students to relate effectively to people from different cultures and to embrace and work with the inevitable conflict that arises in these diverse think tanks. The nature of postmodern problems often being broad socio-political challenges would encourage the developing leaders to consider their roles as social architects and stewards in society. REFERENCES Atwater, J.B., Kannan, V.R., & Stephens, A.A. (2008). Cultivating systemic thinking in the next generation of business leaders. Academy of Management Learning and Education, 7(1), 9-25 Bennis, W.G., & Toole, J. (2005) How business schools lost their way. Harvard Business Review, 83(5), Berger, K.S. (1978) The developing person. New York: Worth Publishers. Burnett, R. (2005). Disciplines in crisis: Transdisciplinary approaches in the arts, humanities and sciences. 8 May Charan, R. (2005). Ending the CEO succession crisis. Harvard Business Review, 83(2), Dertouzos, M.L., Lester, R.K., & Solow, R.M. (1989). Made in America: Regaining the productive edge. (pp ), New York: Harper Collins. Feyerabend, P. (1975). Against method. London. Foucault, M. (1972). Power: Knowledge. New York. Gibbons, M., Limoges, C., Nowotony, H., Schwartman, S., Scott, P., & Trow, N, (1994). The new production of knowledge: the dynamics of science and research in contemporary societies. London: Sage. Goshal, S. (2005). Bad management theories are destroying good management practices. Academy of Management Learning and Education. 4(1), Grey, C. & Wilmot, H. (2005). Critical management studies : A reader. New York: Oxford University Press. Gutto, S.B.O. (2006). Towards a new paradigm for Pan-African knowledge production and application in the context of the African renaissance. The International Journal of African Renaissance Studies, 1(2), Habermas, J. (1981). Modernity: an unfinished project. Revue Generale des Publications Francaises et Etrangeres, Paris: Revue critique, Centre National des Lettres and Editions de Minuit. Harvey, D. (1990), The condition of postmodernity. Oxford: Blackwell Publishers Inc. Horlick-Jones, T., & Sime. (2004). Living on the border: Knowledge, risk and transdisciplinarity. Futures, 36(4), Huyssens, A. (1984). Mapping the post-modern. New German Critique. 33,

62 Johannessen, J., & Olaisen, J. (2006). Systemic philosophy and the philosophy of social science. Kybernetes, 34(7/8) Kelly, K. (1994). Out of control. Cambridge, MA: Perseus Books. Klages, M. (2007). Literary theory: A guide for the perplexed. Continuum Press. Kuhn, T. (1962). The structure of scientific revolutions. Chicago, Ill. Livingstone, J.S. (1971). Myth of the well-educated manager. Harvard Business Review, January-February, Lyotard, J. (1979). The postmodern conditions. Manchester University Press. Martin, M., & McIntyre, L.C. (Eds). (1994). Readings in the philosophy of science. Cambridge, MA: MIT Press. Mintzberg, H., & Gosling, J. (2002). Educating managers beyond borders. Academy of Management Review, 1(1), Morris, L. (2003). Business model warfare: The strategy of business breakthroughs. An Innovation Labs White Paper Published Jointly with the Ackoff Centre for Advancement of Systems Approach. 18 August Morrison, D. (2008). Educational philosophy and the challenge of complexity theory. Educational Philosophy and Theory, 40(1), Nicolescu, B. (2002). Manifesto of transdisciplinarity. (K. Voss Trans.). (1 st ed.). Albany: State University of New York Press Pfeffer, J., & Fong, C.T. (2002). The end of business schools: less success than meets the eye. Academy of Management Learning and Education, 1, Porter, L.W., & McKibbin, L.E. (1988). Management education and development: Drift or thrust into the 21 st century. New York: McGraw Hill Rickman, H.P. (Ed.) (1976). Selected writings: The development of hermeneutic. Cambridge: Cambridge University Press. Rorty, R. (1979). Philosophy and the mirror of nature. Princeton, N.J. Sobat, T. (2003). Observations of constructivist teaching : A comparison of methods used in introductory and advanced instruction. Transactions of ID, 705(1(2)), 1-8. Songa, R. (2006). Transdisciplinarity: The dawn of an emerging approach to acquiring knowledge. African Journal of Renaissance Studies. 1(2), 195. Steiner. T.L., & Wells, R.M.J. (2000). Integration of the business curriculum: The case of finance and marketing in a MBA program. Finance Practice and Education, Fall/Winter Thompson Klein, J. (2004). Interdisciplinarity and complexity: An evolving relationship. E.Co Special Double Issue, 6(1-2), Zeleza, P. T. (2006). The disciplinary, interdisciplinary and global dimensions of african studies. The International Journal of African Renaissance Studies, 1(2),

63 Vol. 1, No. 1; Fall 2009/March 2010 DEVELOPING ONLINE CUSTOMER TRUST David R. Wheeler Susan Atherton Suffolk University ABSTRACT: Many e-commerce websites advertise user friendly atmospheres. There is a difference between what consumers perceive regarding help and what companies that host the Web sites legally mean by help. These same sites make advertised claims which are not well supported by the Terms and Conditions or policies posted on the site. The resulting gap between expectations and reality negatively impacts perceived usefulness and consumer trust in continuing to make online transactions. Furthermore, a dissatisfied consumer may then expose the e-retailer to potential legal issues. E-retailers hoping to increase profitability will need to address these issues and develop website strategies that meet consumer expectations. In addition to clear and reasonable terms and conditions, a personalized help feature on e-commerce websites create a satisfying experience for users while avoiding legal issues. Websites like Stamps.com, Register.com and Zazzle.com, that offer personal, customized products for consumers and businesses, need to provide a more meaningful consumer experience, by creating trust and by supplementing their automated help function with a human facilitator or virtual customer support person, to avoid potential legal disasters. This article will explore the legal and economic implications for the e-retailer resulting from consumer dissatisfaction with the website claims and actual online transactions. INTRODUCTION Predictions in the late 1990s that the value of electronic commerce (ecommerce) worldwide would increase significantly, have been realized, with e- commerce offering consumers substantial benefits, such as convenience and access to a wide range of goods, services and information at lower costs. (Raul and Gomez, 1999) However, such benefits cannot be realized fully unless the global e-commerce marketplace offers both consumers and businesses trust, safety, transparency, and legal certainty. (Raul and Gomez, 1999). American consumers understandably want to know the terms of their electronic transactions, the means for cancellation and or complaints, limits of liability, whether unreasonable contract terms are enforceable, where they will have recourse, and what policies (international or domestic) are in place (Raul and Gomez, 1999). In particular, consumers may expect that businesses offering internet services should take into consideration how those services might reasonably be expected to be used, and then be accountable (responsible), if the consumer is unable to make reasonable use of the services. Today, only one-third of consumers trust online transactions. And, this presents challenges for e- retailers websites (Consumers Union, 2002). With a U.S. online retail market 62

64 representing $127.7 billion in e-commerce sales (excluding travel) in 2007, and $146 billion in 2008, online retailers must address the issues of website trust and safety to take advantage of this market (Interactive Advertising Bureau, June 2008). The potential for online sales growth, according to the U.S. Department of Commerce, is expected to increase 11.3% between 2007 and 2012, with an increase from million to million, or 82.5% of U.S. internet users shopping online (Interactive Advertising Bureau, June 2008). Merchants will need to accommodate consumers fears of online security and privacy in electronic transactions by providing twenty-four hour customer support specialists, superior privacy policies, authentication services, fraud procedures and insurance. Consumers will expect transparency in policies such as: the terms of their electronic transactions; means for cancellations and/or complaints; liability limits; whether unreasonable contract terms are enforceable; and, where they will have recourse, since factors of credibility and trust are paramount. Consumer access to live Help, for customer support and complaints, may significantly and positively affect this level of trust and affect the merchants goals of building long-term relationships and developing a stable and predictable commercial environment. (Raul & Gomez, 1999). ONLINE TRUST The importance of trust in online transactions between consumers and e- retailers has been proven empirically. Consumer Reports research findings confirm that consumer trust is far lower than trust in traditional retail situations, with only 29 percent of users trusting websites that sell products and services. Consumers Union, 2002). This gap between expectations and credibility places a greater demand on e-retailers, since consumers expecting specific, accurate information about business practices such as disclosure of fees and use of personal information. Corbitt, Thanasankit, and Yi (2003) found that trust is positively linked with e-commerce participation. Liao, Palvia, and Lin (2009) found that trust is a predictor of web site use and e-commerce adoption, while Consumers Union (2002) found that trust is strongly linked to credibility. Thus, consumer online transactions involving personal information, or where photos, logos or other icons are uploaded into third-party affect trust, which is extended to a demand for information about third-party sites, sponsorships, company ownership, or use of browser-tracking mechanisms. Wolfinbarger and Gilly (2003) found that other factors affecting trust include security of credit card payments, which is included in personal information, and privacy of shared information. Unreliable technology can cause customers to lose trust in e- commerce, and technology quality reflects web site substantiality (Corbitt et al. 2003). Stamps.com, which allows consumers to create stamps using personal photos or logos, receives numerous consumer complaints about the website s unreliable technology, since problems downloading software and printing, which are important aspects of order fulfillment, resulted in unresolved billing issues. Lack of access to timely help has been found to be a major factor in reducing consumers trust in electronic transactions and continuation (repeat orders), and 63

65 Wheeler and Atherton may increase the level of risk of potential liability for e-retailers. A variety of factors, including unreasonable terms and conditions, lack of access to customer service through help Studies of online transactions emphasize the critical importance of trust, which plays a pivotal role in e-loyalty. Research by Kim, Byoungho, and Swinney (2009) and C. Liao et al. (2006) confirmed that trust affects repeat purchase behavior. Liao et al. (2006) found that specific content such as, finding contact information, product/service details, customer policies (dispute policies), customer support, and privacy policies, will positively and directly affect the user s trust in the web retailer. Importantly, Liao et al. (2006) found that specific content affects perceived usefulness indirectly via trust, and in order to increase trust, all useful information relevant to consumers, especially information of a particular concern to the consumer (i.e., contact information, customer policies, product/service details after-sale support, etc.) should be completely and clearly demonstrated. The concept of perceived usefulness is derived from the early work of Davis (1989) on the Technology Acceptance Model (TAM), which has been examined empirically in information systems research (Liao et al, 2006). Perceived usefulness does have a substantial impact on behavioral intentions (Hausman and Siekpe, 2009). Prior studies investigated different components of trust and e-loyalty, such as fulfillment/reliability, website design, security/privacy, and customer service (Wolfinbarger and Gilly, 2003) (Kim et al, 2009). From that perspective, customer e-trust is earned by delivering the right product at the right time and meeting customer expectation on product quality as promised by the retailer. (Kim, 2009). For sites like Stamps.com, order fulfillment and satisfaction is an important claim, and unreliability could result in legal implications. While order fulfillment and delivery are important, as are privacy and security, order fulfillment/reliability (responsiveness) is the most important factor in judging customer satisfaction with the website, compared to other quality dimensions, and responsiveness of the online retailer will positively affect customer e- satisfaction (Kim, 2009). Responsiveness has been defined as responsive, helpful, and willing service that responds to customer inquiries quickly, and has a positive effect on building e-trust. (Wolfinbarger and Gilly, 2003). However, despite these findings, few studies provide an in-depth investigation of retailer responsiveness to customer service needs, such as technology support, billing issues, complaints, cancellations, or website policies ( terms and conditions ), and the effect on retailer liability. Thus, we hypothesize that customer dissatisfaction with order fulfillment/reliability is strongly related to mistrust in advertising claims and may lead to potential litigation. Support for this hypothesis may be suggested in Kim (2009) who found that in online retailing, consumers need assurance that their products will be delivered as expected, since they do not see an actual facility, do not have personal interaction with service personnel and cannot physically examine the product. Consumer perspectives on perceived trust and website responsibility. Consumers may face devastating results for unauthorized payment card charges, 64

66 leakage of personal data associated with such card charges (or registration of personal information on websites), and resulting security breaches such as identity theft, or fraud. (Morse and Raval, 2008). Liability for those costs associated with unauthorized charges is important because it is closely associated with unauthorized access to cardholder information (Morse and Raval, 2008). These resulting security breaches increase consumers fears and risk of online transactions, particularly when credit card payments are involved, and is clearly seen in the recent lawsuits against corporations for lack of security in protecting cardholders. TJ Max s security breach resulted in identity theft compromising over forty-five million cardholders. However, studies show that assigning the legal responsibilities for harms associated with those breaches, and government regulation of security of personal data in the US is complex and imperfect (Morse and Raval, 2008). In the United States there is no single law, statute, or regulation that governs a company s obligations to provide security for its information. (Morse and Raval, 2008 p.545 FN41). Despite this fragmentation of regulation of online security and privacy, the Federal Trade Commission (FTC) does address unfair and misleading online business practices that affect consumers, while Morse and Raval (2008) indicate that state-specific privacy and data security disclosure provisions and common law claims may redress some of these breaches by e-retailers. Consumer trust is first linked to the perceived usefulness of the website (Davis, 1989), and order fulfillment and satisfaction. When problems occur at this stage, research suggests that consumers would not re-visit the site, would look for alternatives, and it is the resulting billing or credit card issues that may trigger consumer complaints about misleading e-retailer claims. Thus, e-commerce websites that are not responsive to consumers, through a live help function, or lack policies to address the issue of privacy of personal data, and do not take steps to protect consumer data (including credit card data), may be liable for harm, despite disclaimers of responsibility. While U.S. federal and state judicial systems share jurisdiction over electronic commerce, and either jurisdiction may be involved depending on the amount in dispute, the type of transaction, and the number and identity of the parties, the legal and regulatory approach to electronic commerce has been rather minimalist in nature (Muenchinger, 2000). Despite this minimalist approach, the FTC actively encourages workshops to develop policies to provide a global marketplace that is safe, transparent and has legal certainty (Raul and Gomez, 1999). TRUTH Absent specific federal laws concerning the internet, federal laws that may affect consumer protection and credit card payments include the Truth in Lending Act (TILA), which limits consumer liability for fraudulent use and billing errors, and the Electronic Funds Transfer Act (EFTA), which limits consumer liability for unauthorized electronic funds transferred and consumers rights for documentation (Muenchinger, 2000). 65

67 Wheeler and Atherton Additionally, the Uniform Computer Information Transactions Act (UCITA), applies to transactions involving computer software, multimedia interactive products, computer data and databases, and the Internet and online information to facilitate electronic commerce (Muenchinger, 2000). One key objective of UCITA is to adapt common law concepts of manifestation of consent in electronic form, by giving the consumer notice that his action may be considered as a form of consent and he may have an opportunity to review the contract terms. The Act thus creates a safe harbor provision: a double click will now be considered assent for purposes of creating a binding contract in electronic transactions (Muenchinger, 2000). E-retailers may also minimize liability for copyright infringement under the Digital Millennium Copyright Act (DMCA) of 1998, and under safe harbor conditions may escape liability if the provider was not aware of the existence of the infringing material and did not receive a direct financial benefit (Muenchinger, 2000). Stamps.com provides such a disclaimer with its safe harbor provision in its Terms and Conditions. LEGAL IMPLICATIONS The FTC is the primary source for consumer complaints about internet advertising and marketing. The Federal Trade Commission Act (FTCA) (USC 45, section 5) prohibits unfair or deceptive advertising in any medium. A representation, omission or practice is deceptive if it is likely to: (1) mislead consumers; and (2) affect consumers behavior or decisions about the product or service. Website disclaimers have several requirements: a. They must be clear and conspicuous; b. Demonstrations must show how product will perform under normal use; c. Refunds must be made to dissatisfied consumers, if promised; d. Sellers are responsible for claims made about their products and services; e. Claims must be substantiated; f. And, relevant information left out or claims that imply something that is untrue may be misleading. The FTC extends protections to consumers, stating that [P]rivacy is a central element of the FTC s consumer protection mission, and security of personal information is a component of privacy. (FTC Act, 15 U.S.C., 45). Therefore, the legal basis for consumer complaints is: unfair or deceptive acts or practices in or affecting commerce. (FTC Act, 15 U.S.C., 5(a)) Lawsuits demonstrate that companies that collect sensitive consumer information, such as credit card information, have a responsibility to keep that information secure. (Morse and Raval, 2008) According to the FTC s Mail or Telephone Order Merchandise Trade Regulation Rule, retailers should be aware that when consumers order by mail, 66

68 phone, fax, or Internet may also require the company to have a reasonable basis for stating or implying that a product can be shipped within a certain time, and if not, must notify the consumer of the delay and the right to cancel. Websites such as Stamps.com do not provide such information in their terms and conditions to ensure that consumers are fully informed of their rights, particularly when using photos or logos to print customized stamps, and state broad disclaimers of liability for access and use of the website, along with disclaimers of responsibility for problems using the site or technology. Both Stamps.com and Zazzle.com advertise claims inconsistent with product use (printing stamps, uploading personalized photos). Customers find help difficult to obtain if the product does not print properly and/or consumer has cancelled account, and refunds for improper billing are difficult to obtain. The help function used by Zazzle.com and Stamps.com is a contact us link to a webmaster, but only an address is provided, and no number is included. A survey of 75 leading e-commerce sites showed that 84 percent had self-service Get Help functions, and sixteen percent provided a non self-service option such as a number or a contact us link. DISCUSSIONS To improve the level of trust among consumers, online businesses should keep a customer-focused business orientation, actively generate customer information and provide value-added service on customer information, protect and communicate policies on customer privacy and data security, be responsive to customer requirements and allow customers to contribute their ideas to improving the operation (Corbitt, et al., 2003). Suggested on-line strategies include: level of customer service comparable with off-line service; integrate on-line facilities with real store environments for customer support, complaints, return of products, and if they only have an on-line business, providing a better customer service operation may reduce customer perceptions of poor quality (Walsh and Godfrey, 2000). Creating constant dialogue, with a virtual character on the site, or on-line salespersons, helps the consumer understand the product and helps develop the customer relationship by providing specific information and recommendations (Walsh and Godfrey, 2000). Ultimately, understanding how online trust is created and maintained can lead to improved web sites, increased sales revenues, profitability and shareholder value (Shankar, Urban, and Sultan (2002). REFERENCES Breitenbach C.S., and Doren, D. C. V.(1998). Value-added marketing in the digital domain: enhancing the utility of the Internet. Journal of Consumer Marketing, 15, # 6, Consumers Union of U.S., Inc. (2009). Consumer Trust in E-Commerce Web Sites Alarmingly Low, Consumers Reports WebWatch Research Finds. in e- commerce (February 18). 67

69 Wheeler and Atherton Corbitt, B.J., Thanasankit, T. and Yi, H. (2003). Trust and e-commerce: a study of consumer perceptions. Electronic Commerce Research and Applications, 2, Federal Trade Commission (FTC) Act, Section 5(a), 5/2/08. Hamill, Jim (1997). The Internet and international marketing. International Marketing Review, 14, #5, Hausman, A. V. and Siekpe, J. (2009). The effect of web interface features on consumer online purchase intentions. Journal of Business Research, 62, Interactive Advertising Bureau (2008), June 2008: US Retail E-Commerce Industry Stats & Data by emarketer. Kim, J., Jin, B., and Swinney, J. L. (2009). The role of etail quality, e-satisfaction and e-trust in online loyalty development process. Journal of Retailing and Consumer Services, 16, 4, Liao, C., Palvia, P., and Lin, H. (2006). The roles of habit and web site quality in e-commerce. International Journal of Information Management, 26, Morse, E. A. and Raval, V. (2008). PCI DSS: Payment card industry data security standards in context. Computer Law & Security Report, 24, Muenchinger, N., (2000). E-Commerce US Proposed US Legal Solutions to Questions Concerning Electronic Commerce. Computer Law & Security Report, 16, 6, Raul, A. C. and Gomez, M. A. (June 8-9, 1999 and February 19, 2009).). U.S. Perspectives on Consumer Protection in the Global Electronic Marketplace, Summary of the Federal Trade Commission Public Workshop. Washington, D.C., Shankar, V., Urban, G.L., and Sultan, F., (2002). Online trust: a stakeholder perspective, concepts, implications, and future directions. Journal of Strategic Information Systems, 11, Walsh, J. and Godfrey, S., (2000). The internet: a new era in customer service. European Management Journal, 18, 1, Wolfinbarger, M. and Gilly, M.C., (2003). etailq: dimensionalizing, measuring and predicting etail quality. Journal of Retailing, 79 (3),

70 Vol. 1, No. 1; Fall 2009/March 2010 OPPORTUNITIES IN INTERNATIONAL ACCOUNTING EDUCATION PRESENTED BY THE CURRENT FINANCIAL CRISIS John E. Simms The University of St. Thomas ABSTRACT: As the market has reacted to the subprime and financial crisis, the interrelated nature of the current global economy provides numerous opportunities for international accounting education. In this discussion, three interrelated aspects are examined: 1) significant changes in debt-to-equity positions in major U.S. financial institutions as compared to those in other markets; 2) mark-to-market accounting according to FAS 157 as compared to 3) IAS 39 measurement and disclosure requirements. First, the change in financial leverage of major U.S. financial institutions during the period from 2002 to 2007 is compared to that of selected major overseas financial institutions. Possible causative factors are discussed, as well as implications to liquidity and solvency in terms of asset mark-downs leading to packaged hedging instruments becoming classified as toxic. Then, a comparison of U.S. financial reporting standards and international financial reporting standards (IFRS) is presented and related to the current financial crisis. The role of FAS 157 in relation to changes in debt-toequity positions is discussed in the context of the effect on international financial markets. The effects of international reporting standards, whether moderating or magnifying, on international financial institutions are discussed. INTRODUCTION The last several years have been a tumultuous time for the residential mortgage industry to put it mildly. There have been changes in the market that resulted in foreclosure rates that can only be compared to the great depression. But even the 1930s pale in comparison to the number and dollar value of mortgage-based securities (MBS) and collateralized debt obligations (CDO) created and exchanged in today s market. One has only to read the financial section of any major newspaper to see the litany of words that have been used to describe the situation: Disaster. Meltdown. Collapse. The analysis of the causes and effects from a macro perspective will be ongoing for years, perhaps decades. The purpose of this paper is to investigate opportunities that the current financial crisis presents for classroom instruction. Specifically, the topics are examined with the purpose of teaching international accounting in context that is, in relation to debt positions of financial institutions. Obviously, it would be beyond the scope of any one paper to delineate all the aspects of accounting relevant to the situation. This paper limits the topics to three interrelated factors the examination of which may provide topics appropriate to an upper-level 69

71 Simms undergraduate or graduate course in international accounting. The factors are presented comparing U.S. financial institutions to comparable overseas firms. BACKGROUND Hofstede s (1991) pioneering research based on cross-cultural surveys and statistical analysis initially revealed four dimensions at the national level. These dimensions are individualism, power distance, uncertainty avoidance, and masculinity versus femininity. An additional dimension of long-term versus short-term orientation was added after including factors developed from the Chinese Value Survey (Hofstede and Bond 1988). The total of 5 factors can be briefly described as follows. Individualism versus Collectivism - Individualism refers to societies that tend to have loosely knit social relationships. It is an I self-concept society. In contrast, collectivism pertains to societies in which people are integrated into strong, cohesive groups. The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among individuals (Radebaugh and Gray 2002). Large Power Distance versus Small Power Distance - Power distance is the extent the society accepts unequal power distribution in organizations. Large power distance indicates a high tolerance for inequality. In such societies, there will be fewer financial disclosures, wide salary range between top and bottom, and privileges are bestowed to the powerful individuals. In contrast, small power distance societies will strive for equality for power and demand justification for inequalities. Strong Uncertainty Avoidance versus Strong Uncertainty Acceptance - Societies with strong uncertainty avoidance feel uncomfortable with uncertainty. Such societies are rule oriented, prefer rigid codes of behavior and belief, and do not have tolerance for persons and ideas that deviate from the norm. By contrast, societies with strong uncertainty acceptance can more easily tolerate uncertainty. Hence, they can maintain a more relaxed atmosphere in which practice counts more than principles (Radebaugh and Gray 2002). Masculinity versus Femininity - A masculine culture attaches importance to earnings, recognition, advancement, and being challenged by the work. A feminine culture attaches importance to working relationships, cooperation, having a desirable living area, and employment security. The decision to label this dimension masculinity versus femininity is based on the fact that this was the only work goals dimension in which men and women scored consistently different. Long-term Orientation versus Short-term Orientation - The longterm orientation values persistence, adapts traditions to meet modern needs, has respect for social and status obligations within limits, tends to have large savings levels, and is willing to subordinate oneself for a purpose. The short-term orientation emphasizes respect for tradition, social pressure to keep up with the Joneses, small savings levels, and a concern to get quick results. The long-term (dynamic) orientation is more oriented toward the future (persistence, thrift), 70

72 while the short-term (static) orientation is rooted in the present and the past (status and tradition). This dimension tends to be somewhat confusing because it was not included in Hofstede s original survey. This was formulated as a response to the possibility of a western bias in the survey instrument. To address the problem, a similar instrument was developed by Hofstede and Bond (1988), called the Chinese Value Survey (CVS). This dimension was originally described as Confucian Dynamism. The three dimensions common to both surveys are relationships between seniors and juniors, relationship with the group, and as a function of one gender, while none of the CVS factors are correlated to uncertainty avoidance. The term Confucian Dynamism was used because the characteristics that emerged were generally considered dynamic at one pole and static at the other, while demonstrating values that seemed to come directly from the teachings of the philosopher Confucius. It was stated earlier that history explains culture and culture dictates business practices. As the cultural centers of the Middle East, China, Meso- America, and Europe developed in relative isolation, cultural norms and business practices diverged. These differences can be seen in stark contrast today. Crosscultural comparisons have identified differences in the value systems and ethical beliefs of people from different parts of the world. For example, North American culture is rights-based, whereas the Sino-Confucian culture is duty-based. In a study examining obstacles in the implementation of the Sarbanes-Oxley Act in Thailand, Duangploy and Simms (2006) discuss the implications and difficulties in the exportation of standards. Barth (2008) points out that...culture changes slowly, not by fiat. Even if all firms were required to follow a particular IASB standard, there would be differences in how firms interpret the standard because of differences in their history and culture. Thus even with global accounting standards we might not achieve global financial reporting. (p. 1174) Cultural characteristics are persistent, displaying both inertia and momentum. Cultural inertia describes the tendency for a group of people with a common set of social standards and expectations to resist changes in existing behavioral patterns. Cultural momentum is the tendency for a culture to continue advancing in a set direction. Both inertia and momentum require effort and time to alter. An example of the persistent nature of cultural inertia can be seen in Japan during the decade following World War II. The effort displayed by the war was tremendous - destructive and devastating economically and politically, but not culturally. That would have required a great deal of time, but the U.S. ended the occupation in 1952, only 7 years later. As a result, the zaibatsu of pre-war Japan reemerged in the 1950s as exceptions to the Anti-Monopoly Law called 71

73 Simms keiretsu, restoring many of the zaibatsu names with the blessing of the Ministry of International Trade and Industry (MITI) (Nobes ). The establishment of the keiretsu occurred because the system works for the Japanese culture. However, this has caused friction in the areas of international business, finance and accounting. Japan was one of the founding members of the International Accounting Standards Committee (now the International Accounting Standards Board), and yet, at times, presented significant resistance to proposed standards such as the power of audit committees and the independence of boards of directors. One prevalent characteristic of economies of collectivistic cultures is cross-corporate ownership. In Japan, keiretsu control about half of the top 200 firms, representing more than 25 percent of all the country s assets. The first factor examined is debt-to-equity position, the second is the implementation of FAS No. 157, and the third is the implementation of IAS 39. Following after is a discussion of the role of technology in the global reaction to the crisis originating in the U.S. DEBT-TO EQUITY POSITIONS One characteristic of U.S. firms that stands out in comparison to non- U.S. firms is a greater reliance on equity financing as opposed to debt financing. Historical and cultural factors have played a role in the development of capitalization preferences. Two of Hofstede s cultural characteristics are of prime importance in contributing to the differences in financing: risk aversion and long-term orientation. As mentioned above, the U.S. culture is less risk averse and more short-term oriented. These two factors contribute to a philosophy of investing rather than saving. The characteristics apply not only to individuals, but to organizations as well. The result is a persistent, fundamental difference in debtto-equity and debt-to-asset positions between U.S. and non-u.s. firms as can be seen in Figure 1 and Figure 2. All data is from Compustat Fundamentals Annual database. Although the years from 2000 to 2007 are the subject of the current study, the trend in means has been well documented and observed historically. This study limits the examination to financial firms with total assets greater than 500 million in order to focus on those with a significant ability to maintain borrowing and lending activities at an international level. Twelve U.S. firms and 5 foreign firms were eliminated for lack of data. Firms that went into bankruptcy during this period were also eliminated in order to avoid including firms with suboptimal short-term strategies due to agency issues in a situation of existing or impending extreme financial distress. This resulted in a sample of 24 U.S. firms and 18 non-u.s. firms. The non-u.s. firms included 8 Canadian, 4 from the Pacific Rim, and 6 from the European Union (EU). Figure 3 shows long-term debt to equity and Figure 4 shows long-term debt to total assets. Both exhibit a more stable ratio for U.S. firms over the same period (Figures 3 and 4). 72

74 Figure 1: Average Debt-to-Equity of U.S. vs. Non-U.S. Firms from Total Debt / Equity US Non-US Figure 2: Average Debt-to-Assets of U.S. vs. Non-U.S. Firms from Total Debt / Assets US Non-US 73

75 Simms Figure 3: LT Debt-to-Equity of U.S. vs. Non-U.S. Firms from Long-Term Debt / Equity US Non-US Figure 4: LT Debt-to-Assets of U.S. vs. Non-U.S. Firms from Long-Term Debt / Assets US Non-US As can be seen in Figures 3 and 4, 2001 showed a marked increase in the long-term debt-to-equity and debt-to-assets position of non-u.s. financial firms. This was due to a combination of the economics, politics, and accounting standards. The economic situation in 2001 was in turmoil. After Enron, WorldCom, Arthur Andersen, and other high-profile failures, there was a fear of an increase in interest rates. This resulted in a move to lock in current lower interest rates by moving from short-term to long-term debt. The volatility also reflects sensitivity to fuel prices as a result of the political situation. After the attack on the World Trade Center, many overseas firms borrowed heavily to 74

76 insure against possible shortages in the energy market. The third factor contributing to increases in long-term debt in 2001 was the acceptance of international accounting standards, which allow for the classification as longterm many forms of debt that previously had been classified as short-term. This factor is discussed in more detail in the following sections. To provide additional context, Figure 5 shows pre-tax income as a percentage of revenues for these same firms over the same period. Figure 5: Pretax Inc.-to-Revenues of U.S. vs. Non-U.S. Firms from Pretax Income / Revenue US Non-US FAS 157 AND THE EFFECT ON IFRS FAS 157 (FASB 2006), implemented in 2007, attempted to provide a common definition of fair market value accounting, but it did not change the rules as to when fair value should be applied. Many firms marked up the value of certain assets and then securitized them as MBS and then the same (or other) firms resecuritized those assets as CDO portfolios. Guarantors provided credit and/or liquidity support, and investors purchased a portion of a portfolio believing that the stratification of the portfolios provided protection against losses. These portfolios were in some cases used as collateral for loans. There are only two certainties concerning the market: it will go up and it will go down. When real estate values declined, the loans become under-collateralized. The most junior securities absorbed the losses first (as they were designed to). However, the illiquidity of the markets went beyond the ability of the guarantors to cover and many of the more senior loans collapsed as well. In some cases, the total assets of the firm became less than the debt and firms faced conditions of financial distress, even bankruptcy. Support for FAS 157 was not unanimous, with many practitioners, regulators and academics concerned that it violated the principles of historical cost and conservatism. There are many conditions under which historical cost can 75

77 Simms be bypassed (if reliability is not significantly impaired). On the other hand, the principle of conservatism is a functional directive to the responsibility of protecting the investors and the public from methodologies that may overstate assets or net income. Conservatism also concerns the assessment of risk. Accountants and auditors working in the mortgage industry during the last six to eight years saw many examples of these types of assets and their derivatives. These problems are exacerbated by less-than transparent revelation of risk positions. In writing on the feedback effects between the subprime crisis and the credit crunch, Ryan (2008) states As firms announced losses on subprime positions, debt markets became more averse to holding these positions and increasingly illiquid, causing fair values of the positions to decline further and become more difficult to measure. A primary reason for these feedback effects is the opacity of many subprime positions. This opacity is attributable in part to the complex partitioning of the risks of these positions through (re)securitizations, credit derivatives, and other financial transactions. It is also attributable in part to the fact that many sub-prime positions are off-balance sheet in the so-called shadow banking system. As a result of this opacity, market participants have aggressively price-protected themselves when bidding for those positions or avoided them altogether. Many holders capitulated and disposed of or wrote down subprime positions to distressed valuations to remove the perceived taint from their balance sheets. (p ) In referring back to Figure 4, it could be that FAS 157 (implemented in 2007) had a revelatory effect on the financial statements. It could also be that firms simply were not able to hide it any longer and saw the bailout as an opportunity to come clean. With that in mind, it seems not unreasonable to expect that the implementation in the future may well enhance financial statement transparency because firms will not want to get caught out again. One item of concern concerning FAS 157 is the use of exit price as the basis of fair value measurement. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. Therefore, the objective of a fair value measurement is to determine the price that would be received for the asset or paid to transfer the liability at the measurement date, that is, an exit price. The Board concluded that an exit price objective is appropriate because it embodies current expectations about the future inflows associated with the asset and the future outflows associated with the liability from the perspective of market participants. (para. 7) Woodward (2007) notes that commentators have expressed reservations about the use of exit price to determine fair value. However, she said there is support for using exit price to value quoted financial assets held for trading and 76

78 other highly liquid assets. She states further that the more appropriate measure for assets acquired in a business combination is the entry price or value in use. The requirements of IFRS 3 (2007) Business Combinations may need to be reviewed to ensure that the fair values of some assets are presented fairly. In Ernst & Young s February 2007 paper on Fair value measurements: the impact for financial instruments, the firm indicates that the introduction of SFAS 157 into IFRS without amendments to other IFRS standards could lead to unintended consequences where the definition of fair value in current IFRS is not the same as defined in SFAS 157. IFRS standards 7 (2006a) and 39 (2006b) in addition to IFRS 3 previously mentioned would need reviewing to ensure consistency in the definition of fair value. The current definition of fair value in IFRS 39 presumes that transaction price (entry price) is the best indicator of fair value. Without further amendment of IFRS 39 Financial Instruments: Recognition and Measurement to agree with SFAS 157, the initial recognition of amortized cost-based assets at exit prices would often result in the recognition of losses upfront. In the notes of an IASB work group meeting (2007), it was observed that IAS 39 Financial Instruments: Recognition and Measurement requires nearly all financial assets and financial liabilities be recorded at fair value upon initial recognition. In periods subsequent to initial recognition, many financial assets and financial liabilities are recorded at fair value, with changes in fair value being recorded into either profit and loss or into comprehensive income. IAS 39 defines fair value as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm s length transaction. In the financial assets working group paper, it states This definition is neither an explicit exit price nor an explicit entry price, but is an arm s length exchange price between unrelated parties (2007). The Board (IASB) stated a preliminary view in the discussion paper supporting an exit price definition of fair value similar to the definition in SFAS 157. The Board s preliminary view is that an exit price definition of fair value is preferable to the current definition as it articulates a single measurement attribute that reflects the economic benefits market participants would expect from an asset or the outflow of economic benefits market participants would expect from a liability. However, an exit price might not be consistent with the current measurement objective of some fair value measurements required in IAS 39. Therefore, as noted in paragraph 17 of the Discussion Paper, if the Board proposes to revise the definition of fair value, it will complete a standard-by-standard review of the fair value measurements required by IFRSs to assess whether the intended measurement objective is consistent with the revised definition. If the Board concludes that a particular measurement objective is inconsistent with the proposed definition of fair value, that particular measurement might be relabeled using a term other than fair value (such as current entry price.) Many are concerned that the IASB Discussion Paper is leaning towards an acceptance of the SFAS 157 position which could significantly change some of the key principles underlying many IFRS standards (Deloitte 2007). The 77

79 Simms Accounting Standards Board submitted its comments to the IASB on the Discussion Paper which are representative of the views of many parties in the UK and Ireland. Some of the main concerns expressed in the Deloitte paper are: The use of fair values is more widespread under IFRS then under US GAAP and the ASB does not consider that SFAS 157 is suitable for consideration in many of those cases where fair value is used under IFRS; The ASB does not support the proposition that market based exit values are the most appropriate measure of fair value for all assets and liabilities to be reported in financial statements; The ASB believes that SFAS 157 is useful only as guidance on the methodology to be used in arriving at a market-based exit price and therefore the IASB Discussion Paper should be re-titled to reflect on its narrow focus; The ASB is of the view that SFAS 157 is based on the presumption that efficient markets are available for most transactions and the approach needs a market participant to be identified. The ASB believes that markets are not always efficient and hence measurement from a market participant s view may be flawed, with most transactions occurring in an imperfect market as a result of individual negotiations between two contracting parties; The ASB would welcome further debate on the market participant versus entity specific issue. While possibly open to different measurement, it should be acknowledged that the value of an asset or liability should be viewed from the perspective of the entity and thus reflect the entity s economic opportunities and constraints; and The general use of exit prices seems to move away from the assumption that initial measurement is transaction based, potentially leading to day one gains and losses being recognized which may not faithfully represent the entity s position in its financial statements. There are clearly different views on fair value measurement and, in particular, the use of current exit prices. Looking at the financial statements different companies, one can notice that they had implemented FAS 157 and the standard did not have a material effect on the company s results. Apparently managers and accountants understand the details for the standard; however, we do not know what approach was used to arrive at that conclusion. Another item is the issue of restrictions in the use or sale of the instrument. If an entity is restricted from selling the instrument, then it is not allowed to adjust the price to fair value even if other unrelated parties are not restricted in the sale of similar assets. If a firm defines the most advantageous market as a forward market (after the restriction period is passed), the value recorded may be unrealizable. In a Special Edition paper, Ernst & Young (2007) voices a concern in reference to block discounts being disallowed in both FAS 157 and IAS 39. As 78

80 an entity-specific measure, EY concedes that allowing a block discount would introduce management intent into the valuation process. However, while undoubtedly some blocks of securities can be liquidated in smaller trades at the quoted prices, this will often not be possible; repeated selling, by the normal laws of supply and demand, will depress the price that can be achieved before the whole block can be sold. We continue to believe that it is appropriate to recognize block discounts, as it is intuitive that the entity will not achieve price times quantity for the block, no matter how it disposes of the securities. (p. 4) As the U.S. progresses inevitably toward the acceptance of IFRS, many of the issues of concern with U.S. GAAP will no longer be relevant. Of course, those issues will be replaced with issues concerning IFRS. CONCLUSION AND DISCUSSION As the process of convergence has proceeded, both U.S. GAAP and international accounting standards have necessarily evolved in order to facilitate the transition. The IASB and the FASB have worked closely together to (eventually) reach the goal of a single set of standards. As mentioned above, 2001 saw the adoption of international accounting standards by many countries. As of this writing, over 100 countries have adopted international standards with the U.S. as the only major country not using international standards. That is not to say there will be universal agreement. The phrase international standards as adopted by the EU may well be a foreshadowing of the accounting world to come. Different jurisdictions and different business practices have different needs to be fulfilled by the reporting system. Teaching in context provides the educator with the opportunity to expose the students to the fact that accounting standards (whether domestic or international) are not developed or implemented in a vacuum. The process of standards development is often initiated because of economic transactions or events. Also, the rate of adoption and/or implementation of accounting standards can be facilitated or inhibited by market conditions. Finally, the application methodologies chosen should be interpreted within the framework of the situation in which the relevant firms or industries find themselves. All these factors can be used in the classroom to enhance not only the understanding of the standards, but also to emphasize the responsibility of those who would wish to argue for or against change. REFERENCES Barth, M Global financial reporting: Implications for U.S. academics, The Accounting Review 83 5:

81 Simms Financial Accounting Standards Board (FASB) Fair Value Measurements. Statement of Financial Accounting Standards No Norwalk, CT: FASB. Hofstede, G Cultures and Organizations: Software of the Mind. London: McGraw-Hill. Hofstede, G Culture s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. Sage Publications, Thousand Oaks, London. Hofstede, G. and Bond, M The Confucius connection: From cultural roots to economic growth, Organizational Dynamics 16 4, 18 pages. Nobes, C A judgemental international classification of financial reporting practices, Journal of Business Finance and Accounting 10 1: Towards a general model for the reasons for international differences in financial reporting, Abacus Radebaugh, L. and S. Gray International Accounting & Multinational Enterprises (5 th Edition). New York, NY. Ryan, S Accounting in and for the subprime crisis. The Accounting Review 83 6: Woodward, C Fair Value Measurements - PricewaterhouseCoopers: Discussion paper on fair value measurement. IFRS News 49. International Accounting Standards Board (IASB) Business Combinations. International Financial Reporting Standard 3 (revised 2007). London, UK: IASB. 2006a. Financial Instruments: Disclosures. International Financial Reporting Standard 7. London, UK: IASB b. Financial Instruments: Recognition and Measurement. International Financial Reporting Standard 39. London, UK: IASB IASB Meeting: Financial Instruments Working Group Paper: Agenda Paper 6. London, UK: IASB. Ernst & Young Global Limited Fair Value Measurement: The Impact for Financial Instruments. EYGM, London, UK: EYG. Deloitte & Touche - Ireland Current Exit Price Is it Fair Value? Deloitte website: 80

82 Vol. 1, No. 1; Fall 2009/March 2010 GLOBALIZATION OF THE ANGLO-SAXON MODEL OF HIGHER EDUCATION: IMPLICATIONS FOR GROWTH AND DEVELOPMENT OF THE KNOWLEDGE ECONOMY Stephen P. Wanger Zarrina K. Azizova Meng Wang Oklahoma State University ABSTRACT: This paper explores the philosophical foundation for the global knowledge economy, the Anglo-Saxon model of higher education. The paper highlights the primary characteristics of the model and explores how nationstates adopt or adapt these characteristics in an attempt to enhance their national position within the global knowledge economy. As an exploratory analysis of the topic, the paper provides a brief overview of the model, examines adaptations in Europe and Asia, and explores implications of these adaptations for individual students, higher education institutions, and nation states. The goal of the paper is to proffer a prefatory discourse on the Anglo-Saxon model and its connections to the global knowledge economy. INTRODUCTION Economic globalization is the phenomenon of increased interaction between nations and the progressive dismantling of borders and barriers to create a single economic space (Von Bogdandy, 2004). Within this space nations compete for economic advantage through the competitive use of human capital, innovation, information technology, and entrepreneurship; each of these is knowledge intense, thus the driving force behind economic globalization may be seen as the pursuit and acquisition of knowledge (Chen & Dahlman, 2005; Stromquist & Monkman, 2000). The result of this global dynamic is an emerging economy that is often labeled the knowledge economy, at the center of which is higher education. Encompassing a broad swath of public and private institutions ranging from trade and vocational colleges to doctorate granting research universities, higher education is pivotal to the creation and transmission of knowledge. This paper explores the philosophical foundation for the global knowledge economy, the Anglo-Saxon model of higher education. With educational characteristics that are adopted or adapted by individual nations including (1) the use of English as the lingua franca, (2) the integration of research into teaching, (3) the authority of the teacher over the curriculum, teaching methods, and assessment, (4) a focus on the personal development of the individual student through critical reflection, (5) the bachelor, master s, doctoral qualification structure, and (6) the autonomy of the higher education 81

83 Wanger, Azizova, and Wang institution, particularly from central state control the Anglo-Saxon academic model is playing a burgeoning role in the development of the global knowledge economy. Adapting some or all of the characteristics of the model, nations attempt to maximize their positions within the global economy by integrating their higher education systems, or a limited number of their premier institutions, into the global economic market. Consequently, the Anglo-Saxon model of higher education is connected to national economic growth and development. The goal of this paper is to provide a prefatory discourse on the Anglo- Saxon model and its connections to the global knowledge economy. The paper begins with a brief historical overview of the Anglo-Saxon model, comparing the model to the other dominant western, post-enlightenment model of higher education. A cursory analysis of adaptations in Europe and Asia follows. The paper concludes with an examination of multiple implications of the model for the growth and development of the knowledge economy. HISTOROCIAL OVERVIEW OF THE ANGLO-SAXON MODEL The modern western university traces its roots to two models or what may more appropriately be termed philosophies of higher education. The first is associated with the reforms of Prussian universities by Wilhelm von Humboldt in the early nineteen century. The ideals expressed in these reforms spread beyond Prussia and impacted the development of higher education in Germany, France, and Eastern Europe. The second philosophy, the Anglo-Saxon model, is associated with British notions of education and their evolutions and adaptations in American, Australian, and to some extent, South African, higher education. These models may be compared across several perspectives, beginning with governance. Prior to the introduction of Enlightenment ideals and Humboldtian reforms in Prussia, state commissioners governed university instruction and academic life, even possessing the right to expel either students or professors who violated duties stipulated by the state (Richter, 1990). Humboldtian reforms allowed greater academic freedom and even limited democracy within higher education, however, they were primarily implemented to maintain higher education institutions as tools of the nation-state. The central state maintained significant influence over individual institutions. Contrary to this concept, the Anglo-Saxon model facilitated the development of autonomous, or virtually autonomous, higher education institutions. Although royal charters were granted by the nation-state, and institutions were created within the context of nationally coordinated systems, institutional autonomy was emphasized (Neave, 2001; Du Toit, 2007). National coordination was viewed as a means to insure that the needs of local communities, rather than the demands of the nation state, were met through higher education. According to Neave, [T]he university was an emanation of that community and reflected, in its study program and its specialties, the community s educational and technical needs (2001, pp 41-42). Intermediate bodies such as the British University Grant Commission played an important role 82

84 in representing universities to the state and vice versa. Furthermore, national facilitation of higher education did not negate institutional self-regulation of higher education finances (Neave, 2001). [Although such a discourse is beyond the scope of this paper, national coordination of higher education did not continue in the American colonies after the Revolutionary War and the subsequent ratification of the Constitution.] A second difference between the models may be seen in the areas of credentialing and the curriculum. Whereas universities within the Humboldtian model awarded national diplomas, institutions within the Anglo-Saxon model were allowed to validate and award their own degrees. Similarly, because Anglo- Saxon institutions were expected to respond to the needs of their own communities they were granted extensive freedom to design and implement their own curricula. This autonomy from the state implied a certain amount of freedom for teachers and faculty. In essence, universities were not obligated to run national programs because national programs did not exist. As Yorke (2004) notes, in the United Kingdom a long standing connection exists between academic programs and the economy in that programs are designed by individual institutions to develop skills needed for the labor market. The Anglo-Saxon model also placed a strong emphasis on the personal development of students through independent learning and critical enquiry (France, 2008). With the absence of state-controlled curricula, teachers were allowed to develop curriculum that was responsive to the learning styles and need of students. Closely aligned with this reality was an emphasis on character formation (Pritchard, 2004). In addition, associated with the freedom to develop dynamic and responsive curricula is the connection between teaching and research. As the disciplines evolved, professors were increasingly expected to design courses based not only on findings within their disciplines but also on their own research (France, 2008). Research and teaching thus became progressively intertwined in the Anglo-Saxon model. These basic distinctions highlight the historical roots of the Anglo-Saxon model. They facilitated the development of the model over the last two centuries in English-speaking nations, and over the last half-century the growing adoption and adaptation of the model throughout much of the world. The following section will briefly explore a small portion of these adaptations in Europe and Asia. ADAPTATIONS IN EUROPE AND ASIA Numerous national higher education systems across the globe are currently undergoing reform. These reforms may be seen in areas such as the nature and type of educational programs, the methods and language of instruction, an emphasis on research and development, burgeoning innovative partnerships, evolving funding mechanisms, and governance. Many of these reforms are influenced explicitly (some implicitly) by the global growth of the Anglo-Saxon model. Consequently, citing cases from every nation or every higher education system that is experiencing reform is beyond the scope of this 83

85 Wanger, Azizova, and Wang paper. However, the following observations are grouped into two broad regions, Europe and Asia, to illustrate through reference to a limited number of examples the connection between the Anglo-Saxon model and global educational reform initiatives. Europe: Evidence regarding adaptation of the Anglo-Saxon model throughout Europe is growing. This is apparent in developments such as the Bologna process, the evolution of English as lingua franca in non-english countries, and changing state-controlled mechanisms of governance. Each of these is briefly addressed in the following paragraphs. Arthur (2006) contends that the Bologna process, as seen in Norway, is the equivalent of adopting the Anglo-Saxon model of higher education. Other scholars concur, suggesting that across Europe the Bologna process implies compatibility with the characteristics of the model (Ash, 2006; Zgaga, 2003). For example, traditional diplomas in some nations are being replaced with educational qualifications similar to the degrees associated with the Anglo-Saxon model, while specialization programs are being restructured into bachelors and master s degrees to ensure the separation of skill mastery and professional education (Alesi, Rosznyai, & Szanto, 2007). By 2003, 60 percent of the nations engaged in the Bologna process had either passed legislation to offer two-tier degree structures or had begun introducing them (Trends Report, 2003). In addition, curriculum development and program design are increasingly based on transnational descriptors of generic competencies, knowledge, and skills. Countries such as Albania, Bosnia-Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, and Serbia note that the Bologna objectives provide a valuable framework for the reform of curriculum, programs, and teaching methodologies within their national higher education systems (Ash, 2006; Pechar & Pellert, 2004; Reichert & Tauch, 2004; Miclea, 2003). The use of English in academia is growing (Coleman, 2006). Nearly two decades ago Ferguson (1992) noted that English often is the domain of academic conferences despite the fact that a small number of attendees may actually speak the language. The trend is more pronounced today and is evidenced beyond conferences and journals. In recent decades the Netherlands launched 500 academic programs that are taught in English, while Finland launched 300 such programs, Germany began 150, and France initiated approximately 80 academic programs taught in English (Altbach, 2007; Miclea, 2003). These trends are buttressed by the findings of Schroder & Macht, now more than a decade old, that university students in 1,916 German, Belgian, and Finnish institutions support English as a single European language (Coleman, 2006). European adaptations of the Anglo-Saxon model are seen in evolving mechanisms of higher education governance. Increasing numbers of governments are loosening their financial control over higher education institutions by reducing university dependence on state funding. Universities are forced to rely on tuition and fees and other external funds, such as those from partnerships with the business community (Osborne, 2006). Perhaps the best illustration though appears in Germany. By amending the Federal Framework Act for Higher 84

86 Education, the German government established a new legal status for universities, Lower Saxony, and granted them financial autonomy (Palandt, 2003). These examples of recent developments in Europe reveal that some, if not all, of the characteristics of the Anglo-Saxon model may be seen in higher education reforms undertaken by European countries. Adaptations of the model are not limited to Europe, however. As the following section attests, they may be evidenced in Asia as well. Asia: In the process of market-driven economic globalization, Asian nations are transforming and internationalizing their higher education systems along the lines of the Anglo-Saxon model (Mok, 2006; Lee, 2006). Although Asian nations differ significantly in geographic size, economic wealth, political ideology, and educational tradition, they increasingly are employing aspects of the model to facilitate the development of their knowledge economies. The influence of the Anglo-Saxon model of higher education in Asia is rooted both in the historical colonization of some Asian nations and the western impact on non-colonized nations wrought through the work of missionaries and other international exchange activities. In the contemporary context, adaptations of the model are especially seen in the implementation of English as the language of instruction, or, as in the case of Singapore, as the sole language of higher education and research (Altbach, 1998). Beyond the use of English, universities are given flexibility and autonomy both to design broad-based curricula for addressing student needs and to adopt credit systems for recognizing individual differences (Mok, 2006). In addition, governments such as those in Japan and China are taking steps to conduct regularly scheduled quality assurance in an attempt to deregulate government authorization of public higher education and to promote the growth of private higher education (Altbach, 2006; Yonezawa, 2005). Even in Southeast Asia governments are working to diversify the funding of higher education (Lee, 2006). Within growing Asian economies especially in China, Singapore and Vietnam higher education institutions are playing significant roles in innovation and economic development, reflecting the emphasis of the Anglo- Saxon model on research and development. Japan, for example, is implementing performance-based funding systems within its National University Corporations (national level institutions) to focus on innovative research for economic development (Oba, 2004). Furthermore, the Entrepreneurial University model in Singapore emphasizes research innovation and knowledge commercialization, calling for the fundamental re-examination of the traditional manpower development role of the university system in Singapore (Wong, Ho, & Singh, 2007, p. 944). Although the development of higher education systems varies in Asian countries, educational reforms typically emphasize marketization, privatization, and decentralization. The Anglo-Saxon model thus provides an incentive structure for higher education systems in the midst of reform to create a more effective, efficient, and equitable higher education sector that better serves the 85

87 Wanger, Azizova, and Wang needs of developing knowledge economies. By introducing educational reforms and adapting some or all of the characteristics of the model, Asian nations are establishing clear objectives to align their higher education systems to the demands of the knowledge economy. IMPLICATIONS FOR KNOWLEDGE-BASED ECONOMIES The world economy clearly has moved from an industrial to a knowledge-based era. Scholars from various fields such as economics, business, and education contend that knowledge and its relevance to productivity become the basis for national competition within the global market (Drucker, 1993). UNESCO proffers that the growth of the global knowledge economy is a central characteristic of the globalization process (2005). National as well as international policy makers and economic players stress that the primary production factors now are an educated work force, information, intellectual property, education, and R&D. Within this context knowledge is increasingly valued for its strict utility rather than as an end in itself (Peters, 2007). Knowledge economies are those not only based on the generation of knowledge but those that exploit knowledge for economic gain (Great Britain, 1998). The World Bank further defines a successful knowledge economy as one that is characterized by close links between science and technology, greater importance placed on innovation for economic growth and competitiveness, increased significance of education, and lifelong learning and greater investment in intangibles such as R&D, software, and education (World Bank, 2005, p. 16). The importance of human capital is crucial to knowledge economies. Not surprisingly, the OECD and the World Bank stress the significance of education for the development of human capital, including the enhancement of worker competencies through the production of research-based scientific knowledge (Peters, 2007; World Bank, 2001; World Bank, 2005; World Bank, 2008). The role of higher education is therefore critical for the production of a highly educated, widely skilled workforce that will positively affect knowledge accumulation and its application to productivity growth (Knight & Yorke, 2003). Along this line, the Lisbon Strategy emphasizes the strategic role of universities in the knowledge economy as (1) the providers of education, (2) the primary location where research is conducted, and (3) the drivers of innovation (Michalski & Cheyne, 2008). Within EU policies the emphasis is on enhancing employability through education and training. This implies that the production of a skilled workforce to meet the needs and demands of global corporations to say nothing of the ideology of life-long learning are key strategies that ensure national economic growth. Higher education stands as the driving force for the development of knowledge-based economies. The major elements that higher education contributes to this process include lifelong learning skills, student-centered education, transferable educational qualifications for global graduates, English as a lingua franca, research and technology transfer, scientific discovery, innovation, and economic growth, all of which are intertwined in the successful 86

88 development of a knowledge-based economy. These elements are highly correlated with the previously discussed characteristics of the Anglo-Saxon model, so it is not surprising to see adaptations of the model across the globe. Implications stemming from these adaptations are addressed in the following paragraphs and are grouped along three considerations: the individual student level, the institutional level, and the national level. Student Level A Global Set of Skilled Graduates: One implication of the adaptation of the Anglo-Saxon model is the production of a global set of graduates. According to the World Bank, the new knowledge-based economy no longer favors narrowly specialized graduates, but ones with cross-disciplinary knowledge, broad and transferable skills, and functional flexibility (World Bank, 2005; Brennan, 2004; Knight & Yorke, 2003). As the Dearing Report suggests, higher education institutions should be at the forefront in offering opportunities for lifelong learning in order to increase the stock of human capital for national economic well-being within the global context (Knight & Yorke, 2003). The knowledge economy seeks workers with the ability to adapt to the rapidly changing nature of work, hence lifelong learning becomes a critical component of global educational reforms (Spring, 2008). Indeed, the primary rationale behind the Bologna process for establishing a three-tiered higher education system is to separate research and professional education from studentcentered teaching. At the bachelor s level, the emphasis is on student-centered teaching that develops the skills and competencies necessary for lifelong learning. Key descriptors of the Bologna reformation of academic programs include academic and generic competencies and knowledge and transferable skills, with the latter focusing on critical thinking, communication, and problem solving (Arthur, 2006; Christensen, 2004; Koutsopoulos, 2008). With the demands of the global labor market and the need for sustainable economic growth, many Asian nations are restructuring university curricula by shifting from the conventional "teacher-oriented" approach to a more "student-oriented" approach; to produce global graduates, the concepts of independent and selfmotivated learning are increasingly promoted (Mok, 2006; Meek, 2006). Within these reforms creativity and innovation become important components for the assessment of student abilities. The themes of competency development and lifelong learning appear throughout global higher education. Along with these themes are calls for consistent and transnational academic program structures. The adaptation of credit systems in many Asian countries reflects not only the reform of university curricula to become more responsive to individual student differences but also the need to ensure the transferability of credentials (Mason, Arnove, & Sutton, 2001). In Japan, program evaluation and assessment have shifted from being the sole responsibility of the government to a shared stakeholder responsibility in order to enhance internationalized curricula and address student and employer needs (Huang, 2006). According to ministries, rectors, and higher education leaders in Europe, restructuring and implementing credit systems consistent 87

89 Wanger, Azizova, and Wang across national higher education systems will ensure and enhance the employability of graduating students (Reichert & Tauch, 2004). The widespread use of English in teaching, learning, and scholarly research also equips both higher education institutions and their respective graduates for the international community and the global labor market. A majority of Asian nations now emphasize improving English language competence not only for higher education students but for all citizens. According to Tsui and Tollefson (2007), Asian nations are responding to globalization by recognizing English as a key economic variable for future growth. The Malaysian government, for example, abandoned the Malay language educational policy that it observed for the first 26 years after independence and implemented an English language educational policy in science and technology related majors (Tsui & Tollefson, 2007). This was due to the belief that inadequate English competence would cause Malaysian university graduates to be less connected with up-to-date science and technology information; the government reasoned that it could not allow communication obstacles to cause it to lose pace amidst global competition (David & Govindasamy, 2007). Similar arguments can be found behind language reforms in Europe, including the French reform known as Content and Language Integrating Learning which is argued to have implications regarding student employability and student mobility directly related to the development of the global knowledge economy. Each of these developments highlights the growing influence of the Anglo-Saxon model of higher education and the global trend to adapt aspects of the model as a means to produce global graduates. Institutional Level Accentuating Collaboration and Knowledge Application: At the institutional level, implications of the Anglo-Saxon model on the development of the knowledge economy are readily observed in the growing emphasis among colleges and universities on innovation, entrepreneurial partnerships, and the application of new knowledge. Meek describes the emerging pattern as knowledge being produced in a context of application, transdisciplinary in nature, needing heterogeneous skills, organized around simpler and more temporary management structure, more socially accountable and reflexive, and more reliably assessed by a variety of practitioners (2006, p. 20). Prior to their adaptation of some of the characteristics of the Anglo- Saxon model, most Asian nations emphasized teaching-oriented higher education institutions, to which they made limited research funding available. Economic globalization, however, is exerting pressure to sustain growth, expand research capacity, and produce highly trained human capital. The typical national response is an emphasis on knowledge application through innovative research and the development of technology. As a result, many global companies such as Nokia and Hankel are establishing their research centers in Asia and are partnering with prominent universities (Asakawa & Som, 2008). Graduate students, in particular, are able to work with industry representatives to create and apply new knowledge. 88

90 Adapting the institutional autonomy principle of the Anglo-Saxon model, many Asian nations are transforming some of their national public universities to corporatized, entrepreneurial universities that have less control from state governments but more connection with industry and the community. These universities focus on innovative research for economic development, while producing a well-educated workforce that will contribute to the growth of the national knowledge economy (Li & Scullion, 2006). The outcome is greater linkage between research and economic development. In Europe, where the trend likewise is toward institutional autonomy and reduced state financial support, the implications are similar. Governments, by reducing funding, push universities toward innovative partnerships with their business and industry communities (Osborne, 2003). The emerging governance model is one of state supervision rather than state control of higher education. According to Palandt (2003), the new model is based on principles of contract management and stresses management by targets, deregulation, and flat hierarchies. Such a model allows universities to develop greater competitive potentiality; less constrained by bureaucracy, they are more flexible and responsive to their environments. In turn, this nimbleness reinforces the growing university role as an innovative business partner in the application of knowledge. National Level Decentralization and Deregulation: These institutional implications may be seen from a broader perspective, namely, that of the central government. Here, as a result of adapting the Anglo-Saxon model, the emphasis is on the decentralization and the deregulation of higher education. For example, many nations in Asia such as China, South Korea, and Vietnam historically regulated higher education through centralized planning, administration, and funding of the national higher education system (Meek, 2006; Lee, 2006). Within the new global environment, however, decentralization has become unavoidable. The decentralization process in China manifests two primary characteristics that are readily apparent in the preceding discussion regarding the individual and the institutional levels: (1) a shift from total central control of higher education to guidance of higher education, and (2) diminishing state funding of higher education with the expectation that institutions will replace government funding with multiple revenue streams from collaboration and innovation (Zhong, 2005). Furthermore, in Indonesia, Japan, and Thailand, governments are making "universities autonomous statutory authorities with full authority over their resources and operations (Meek, 2006, p. 36). Beyond decentralization is the global trend of the deregulation of higher education. Governments around the world are under pressure, primarily in response to the global knowledge economy, to educate greater numbers of citizens for longer periods of time. One response to this pressure is increased reliance on private higher education. Sadlak & Vlasceanu (2007), for example, consider the proliferation of private higher education in Europe as an unavoidable reality, but call for accountability and quality assurance systems for the private sector. Although the rapid world-wide explosion of private higher 89

91 Wanger, Azizova, and Wang education may be attributed to numerous factors, the likely link to the Anglo- Saxon model warrants further examination. The implications of the Anglo-Saxon model of higher education on the development of the knowledge economy certainly extend beyond those highlighted in the preceding paragraphs. The limited scope of this paper permits neither full exploration nor full explication of the ramifications. Additional research seeks to address this situation and is the ongoing focus of the authors. CONCLUSION The global trend toward knowledge-based development is challenging nation-states to redefine their economic and educational strategies. The Anglo- Saxon model of higher education, as a philosophical approach, often sets the framework for educational reforms. Globally, the perception increasingly is that failure to adapt some of the characteristics of the model could have negative repercussions on nations and their higher education systems, including the lack of recognition of research findings, problems with the transferability of graduates, and potential isolation from international networks (France, 2008). At the same time, unique local contexts and national identities should be both recognized and maintained within the globalization process; these should not be abandoned. The result is that future research should concentrate not only on the global adoption and adaptation of the Anglo-Saxon model but also on the preservation of cultural contexts. REFERENCES Alesi, B., Rosznyai, C., & Szanto, T. (2007). The implementation of bachelor and master programmes in Hungary. European Journal of Education, 42(3), Altbach, P. G. (1998). Comparative higher education: Knowledge, the university, and development. JAI Press Ltd: London, England. Altbach, P. G. (2006, Fall). Chinese higher education in an open-door era. International Higher Education, 45. Retrieved March 25, 2007 from ch.htm Altbach, P. (2007). World class worldwide. Inside Higher Ed. Retrieved March 10, 2007 from, Asakawa, K., & Som, A. (2008). Internationalization of R & D in China and India: Conventional wisdom versus reality. Asia Pacific Journal of Management, 25, Ash, M. (2006). Bachelor of what, master of whom. European Journal of Education, 41(2), Arthur, L. (2006). Higher education and the knowledge society: Issues, challenges and responses in Norway and Germany. Research in Comparative and International Education, 1(3),

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95 Vol. 1, No. 1; Fall 2009/March 2010 REQUISITE VALUES FOR THE NEW GLOBAL INSTRUCTOR Gary Oster A. Gregory Stone Regent University ABSTRACT: Instructors in business schools, colleges and universities have provided an important contribution to the knowledge and capabilities of business leaders. They plugged the capabilities gaps. This paper posits although the educational values of those instructors have been serviceable in the tranquil past, they are inadequate for the turbulent future. Anecdotal evidence indicates there are five key values that must be redefined if contemporary instructors are to play a crucial role in the development of future global business leaders: curiosity, knowledge, intimacy, challenge, and experimentation. Because the primary goal of business educators is to appropriately prepare a broad and diverse cast of players for roles in dramas not yet conceived (Hirshberg, 1998, p. 56), these five key values must be developed and implemented into business curriculums to be relevant to the unfolding global economic environments. Unless the values of business educators are globalized, their instructional efforts will not be relevant to the development of future global business leaders. Business educators might ultimately resemble Civil War reenactors, comfortably enjoying the spectacle and pageantry of the fight, but without a passion for the cause or the danger of the bullet. Future empirical research studies can examine each of these five key values to provide more tangible evidence. INTRODUCTION Had the mouse in Kafka s A Little Fable (1995) wisely changed direction, he would have noted that the world was actually growing larger every day. Substantive advances in organization, technology, communications, transportation, and finance have now rendered even the smallest company a potentially vibrant element of the dynamic global marketplace. More than ever before, global leaders are truly required in today s marketplace. An important contribution to the knowledge and capabilities of business leaders has heretofore been provided by instructors in business schools, colleges and universities. This paper posits that, while the educational values of those instructors have been serviceable in the tranquil past, they are inadequate for the turbulent future. Unless the values of business educators are globalized, it is likely that their instructional efforts will not be relevant to the development of future global business leaders. Five key values must be redefined if contemporary instructors are to play a crucial role in the development of future global business leaders: curiosity, knowledge, intimacy, challenge, and experimentation. 94

96 LITERATURE REVIEW The need for new global leaders: The literature on global leadership yields definitions of a global business leader, but McCall (2002, p. 31) may best summarize in stating, The essential border crossing that makes a job global or international is crossing the border of culture, a border defined at its most basic level by geography, languages, and other divisions that relate to the differences among people and their habits. Black (1999, p. 186) further noted that, The basic mental process of developing into a global leader involves getting your mind around the whole world not just one country, and McCall (2002, p. 104) noted, At some point a fundamental transformation takes place for successful global executives a transformation that can be described in shorthand as the acquisition of a global mind-set. Transformed executives become more cosmopolitan, they extend their perspective, they change their cognitive maps. There is, however, a significant shortage of leaders who possess the capabilities, experience, and mindset to effectively lead an international organization. As Rosen (2000, p. 25) noted, We re in a leadership dilemma. We need global leaders at a time when markets and companies are changing faster than the ability of leaders to reinvent themselves. We have a shortage of global leaders at a time when international exposure and experience are vital to business success. And we need internationally minded, globally literate leaders at a time when leadership styles are in transition around the world. Black (1999, p. 20) similarly noted, For many corporations, this global leadership gap is a growing crisis Global leaders are needed and are in short supply. If the personal intellectual growth in global leaders does not equal or exceed that in the economic environment, their worth is diminished. To maintain relevance, innovation in learning is essential: In a world of ever-accelerating change, innovation is the only insurance against irrelevance And in a global economy where knowledge advantages dissipate ever more rapidly, innovation is the only brake on commoditization (Skarzynski, 2008, p. xviii) As Andrew (2006, p. 195) posited, When leaders undertake the task of improving the performance of their innovation activities, the effort frequently involves the identification and closing of capabilities gaps both in their organizations and in themselves. An important contribution to the knowledge and capabilities of business leaders has heretofore been provided by instructors in business schools, colleges and universities. They helped plug the capabilities gaps. This paper posits that, while the educational values of those instructors have been serviceable in the tranquil past, they are inadequate for the turbulent future. Unless the values of business educators are globalized, it is likely that their instructional efforts will not be relevant to the development of future global business leaders. Five key values must be redefined if contemporary instructors are to play a crucial role in the development of future global business leaders: curiosity, knowledge, intimacy, challenge, and experimentation. 95

97 Oster and Stone Defining personal and organizational values: Values define who we are as individuals, groups, organizations, corporations, regions, countries, and continents. Values are constant, passionate, fundamental beliefs, collectively called a worldview, that propel the actions of individuals and corporations. In describing values, Malphurs (2004, p.37) said, A study of values concerns your beliefs, but not just any beliefs. Values are rooted in your core or central beliefs. Rokeach (1973, p. 5) defined values as An enduring belief that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse code of conduct or end state of existence. Personal values are generally acquired through education, observation, and experiences, and may be taught or influenced by parents, friends, work associates, religious institutions, community, and educational institutions. Value are of a special value to individuals. An individual s values frame his or her worldview, and provide needed order and direction to his or her life: Worldview is the lens that people use to interpret their reality and assign meaning to events, experiences, and relationships (Fisher, 2004, p. 2). Individuals can self-identify their personal values: All of a person s values, unlike all of a person s needs, are capable of being openly admitted, advocated, exhorted, and defended, to oneself and to others, in a socially sanctioned language (Rokeach, 1979, p. 48). Individuals not only learn specific personal values, they also order and prioritize their values: In this kind of case our desires are classified in such categories as higher and lower, virtuous and vicious, more and less fulfilling, more and less refined, profound and superficial, noble and base (Taylor, 1985, p.16). Because personal values are capable of being openly articulated, advocated, exhorted, and defended, they ultimately shape organizational values. All activities of an organization are considered through the lens of the corporate values, and values therefore have major import to the long-term viability and growth of an organization. Values serve as the conceptual foundation upon which individual and group life is constructed. While values are often strong and difficult to change, they are not necessarily permanent, and must be considered when altering corporate direction: The real problem is that entire classes of organizations (business, government, education, etc.) have become outmoded in this shifting environment, and so the big need is for institutional change. Unlike the relatively easy work of organizational change process design, teamwork, leadership, etc. institutional change involves redefining the underlying rules or values that govern these social structures (Halal, 2008, p. 108) Because the primary goal of business educators is to appropriately prepare a broad and diverse cast of players for roles in dramas not yet conceived (Hirshberg, 1998, p. 56), these five key values must be developed and implemented into business curriculums to be relevant to the unfolding global economic environments. For curiosity, knowledge, intimacy, challenge, and experimentation to impact the development of future global business leaders, 96

98 business instructors must first apply a new global worldview instructional paradigm to classroom activities. Encouraging the value of insatiable curiosity: Curiosity may be the value that most easily identifies a prospective global leader. To effectively pass the spark of insatiable curiosity of business students, educators must intentionally shift the focus of attention from themselves to the future downstream customers of students. As Fraser (2006, p. 26) noted, If you begin with the user and set out on a path to look at the broader context of their lives and activities, you will suddenly see a whole new set of opportunities to be tapped. By focusing on engaging the complex real-world problems of end-users, students become valued partners of educators. As Black (1999, p. 27) said, Inquisitiveness is at the core of our global leadership model Inquisitiveness is a state of mind, and a vital characteristic of global leaders. Black (1999, p. 48) added, Global leaders are global explorers. They approach everyday business as an adventure and press beyond the horizon of everyone else s reality. He believed that whenever one enters any new environment, they enter with a learning assumption that they always have something to learn, rather than a knowing assumption (Black, 1999, p. 54). Inquisitiveness is critically important in the development of a global leader. First, it encourages them to gather data necessary to make good decisions. As Black (1999, p. 42) stated, Inquisitive global leaders are curious in the face of uncertainty. Inquisitiveness not only helps global leaders seek out useful and timely data, it helps them sort through and make sense of that data. Black believed that leaders are personally committed to gathering data about markets, competitors, best practices, internal organization, cultures, people, and technologies and to seeing how that data interconnects (Black, 1999, p. 56). Secondly, inquisitiveness encourages an openness to new business opportunities. Again, Black (1999, p. 51) noted, To know the terrain, or competitive context at home or abroad, inquisitiveness drives global leaders to challenge the outer edges of individual and organizational limits. Global leaders develop questions and look for opportunities to raise them in their business relationships. Finally, inquisitiveness engenders emotional stability, crucial to successful international work. Without a constant, childlike fascination for people, cultures, and ideas, global leaders can become overwhelmed by the daily rigors of conducting international business. (Black 1999, p. 67) Black summarized by positing, What is the bottom line for inquisitiveness? Global leaders don t go a day without learning. They are much more likely to pay attention to to learn lists rather than to do lists. (Black 1999, p. 68) Over the decades, the focus of business education was on the professor, considered to be the repository of everything worth learning. There was almost a reverence for the sage on the stage. The arrival of computer-mediated learning changed the focus, and the professor has shifted positions to the guide on the side. Habit and comfort zones will let some business educators be satisfied to let knowledge become discrete, finite, absolute, and permanent. Those business 97

99 Oster and Stone educators might ultimately resemble Civil War reenactors, comfortably enjoying the spectacle and pageantry of the fight, but without a passion for the cause or the danger of the bullet. The value of curiosity can be promoted in the actual context of the discovery process. Faculty are familiar with admitting that there may be more worlds beyond those they know, postulating numerous possibilities through hypotheses, and devising empirical methods to test them. The next step is to recognize and develop a comfortableness with failure as a routine milestone on the road to success, and to continually seek more effective and economical solutions to incite and enhance the value of curiosity in students. Gaining knowledge through the value of abductive learning: One mechanism that business educators can use to influence future global leaders can be achieved by reaching beyond typical inductive and deductive logic to include abductive reasoning. In abductive reasoning, constraints are temporarily ignored and initial judgment is suspended as all plausible ideas are positively reviewed. As Liedtka (2006, p. 18) asserted, Great design inevitably starts with the question What if anything were possible? She advanced the thought that strategy is an invention and a product of our imaginations. Assumptions based upon tradition and orthodoxy constrain our imaginations, which, in turn, limit what we consider as strategies. Consequently, releasing the assumptions that arise from what one believes can be the first important step in engaging adductive reasoning. Not all events in the dynamic business environment go according to plan. In a similar manner, not all learning is always complete or neatly packaged: Learning to detect weak signals in the distance helps the astute organization to recognize the once unrecognizable. Learning to do so ahead of the competition provides the strategic advantage that can ensure survival. What becomes immediately clear is that organizations that consciously decide to tune in to these far-off, fuzzy, intermittent signals get critical information faster than those who wait for it to arrive in a neat, orderly bandwidth (Gryskiewicz, 1999, p. 12). Prospective global leaders need to acquire skills to bridge cultures. McCall noted, Generic lessons by definition contain general rules or conclusions for going into any new culture, rather than rules or conclusions aimed at a specific culture. Make sure you understand, make sure you are understood, build new relationships, recognize how people view you as a boss, be patient and tolerant, show some humility, be clear on your own ethics and values all of these are among the lessons of multicultural experience. (McCall 2002, p. 86) Modern educators must intentionally recast the value of knowledge. As scholar Warren Bennis noted, Without openness, the crucial problems might never be discovered, solutions might never be found (Bennis, 1997, p. 175). As Von Krogh (2000, p. 21) asserted, People are loath to accommodate new knowledge that undermines or runs counter to their stories, especially if that knowledge is conveyed by other group participants with different backgrounds, echoed by Charan (2007, p. 55), Arrogance and insecurity are likely to interfere 98

100 with this know-how, causing you to filter out unwanted news and other points of view. Intellectual fragmentation is especially dangerous in this era of innovation: This limited world-view is becoming more dangerous in the turbulent and dynamic business environment that we find ourselves in. In many industries such as consumer electronics, automobiles, and software, products have become more complex in terms of their features, their underlying technologies, and their design. Therefore, the knowledge and skills required to design and develop new products and services have become much more diverse and more demanding. Innovating such new products and services thus calls for not only a command of diverse sets of knowledge and expertise but also the ability to make non-obvious connections between such diverse knowledge bases (Nambisan, 2008, p. 16). To bolster the value of knowledge, business educators also need to encourage students to expand where they seek knowledge, including to what Burkan (1996, p. 162) calls saviors on the edge. He believes saviors on the edge are found outside of one s industry, and sometimes, outside one s field. Biologists have a term that explains why these unlikely individuals hold your solutions. They call it convergent evolution. Convergent evolution states that two very different species develop features that are very similar not because they are related, but because they solve the same type of problem. This is the nature of saviors on the edge. They are related, not by industry or profession, but by similarity of problems. Nambisan adds that it is an important role of the business educator to continually extol the importance of broad learning, and to challenge longstanding orthodoxies. This, in turn, reduces knowledge compartmentalization while demonstrating that all learning is, by definition, inherently open-source. (Nambisan, 2008, p. 16) The value of intimacy with learning for global leaders: A prolonged experience of living and working overseas is an essential element in the development of effective global leaders and significantly complements classroom learning. As Black (1999, p. 200) noted, International assignments are the most powerful means of developing global leaders because (1) working in a foreign country provides mind-stretching experiences and (2) because these experiences are hard, if not impossible, to avoid. The most effective method of learning in a overseas posting is to get wet, as described by Black (1999, p. 190). Getting wet really amounts to diving deep into the waters of the society in terms of what shopping, education, homes, and so on, are really like for the people who live there Engaging all your senses sight, hearing, smell, taste, and touch. According to Black, engaging all of one s senses makes the difference between merely observing and actually experiencing a new place when one travels to it. Understanding the labyrinth of nuance and subtlety in other cultures is immensely difficult for most people. To develop the required intimacy, McCall (2002, p. 137) talked of the importance of a significant other to the learning of 99

101 Oster and Stone global leaders: He explained, Exposure to significant other people was the experience described by the largest proportion of our executives (32 percent). Black (1999, p. 207) said, You need someone preferably a host country national who knows all the cultural road signs and traffic rules, and can both guide you and give you feedback as you form new mental maps and behavior patterns. McCall believed that the guidance provided by others (either actively or simply by example) could make the difference between success and failure (2002, p. 10). Black added to this line of thinking by explaining that only experienced mentors can help international neophytes learn that, To understand different viewpoints, global leaders must relate personally to the lives of employees, customers, and other who are relevant to the business. (1999, p. 121) World-wise faculty are often most uniquely qualified to add both specific skill sets and perspective to the experiences of future global leaders. Educators can provide the essential bridge between theoretical constructs and workplace application, encouraging prospective global leaders to deepen the value of intimacy. The value of challenging quantum objectives: If a company sets its objective to increase profitability by two percent, then it may achieve its two percent profitability. But how could the same company achieve a fifty percent increase in profitability? That s so much bigger that it changes everything, and requires a new way of thinking, new strategies, and new metrics. The company has to have the capability to destroy the very infrastructures that achieved its two percent to put new infrastructures in place to achieve the challenging quantum objective of fifty percent. Educators have traditionally used incremental thinking to teach students, and incremental strategic thinking was the result. For the future global leaders, however, business educators have to abandon the instructional strategies that have been effective in the past, and move on to much bigger instructional paradigms to prepare students for challenging quantum thinking. For global leaders to succeed in the remarkably competitive worldwide economic environment, experienced business educators need to help them reframe the value of challenge through the utilization of new metrics. As strategist Gary Hamel (2002, p. 81) noted, Only by pushing the pedal to the metal, by reaching for the seemingly impossible, is it possible to escape the limits of current processes and discover new possibilities. Successful global leaders embrace the challenge of quantum objectives, knowing that they automatically inspire new pathways of thought and action. They live to solve complex, intractable, obviously unrealistic, really hard problems. The goals of true innovators are significantly different from those who are not innovators. According to the University of Toronto School of Business Dean Martin, Toyota pursues perfection by starting with the ideal, then working backward, removing anything that stands in the way. That means looking at the target in a fundamentally different way. It means asking what it is that is 100

102 blocking perfection versus the more traditional approach of what can be improved? (May, 2007, p. 42). Martin also stated, The source of status and pride in design organizations derives from solving wicked problems, problems with no definitive formulation or solution, whose definition is open to multiple interpretations...in design shops the dominant mindset is, there is nothing that can t be done. If something can t be done, it is only because the thinking around it hasn t yet been creative and inspired enough. (Martin 2005, p. 6) The concept of wicked problems was first popularized by a series of articles during the 1960s and 70s by Horst Rittel and Melvin Webber as they studied social planning. They described wicked problems as those with incomplete, contradictory, and changing requirements, and solutions that are often unclear. In today s turbulent economy, global business leaders face a steady stream of wicked problems. The use of quantum objectives automatically reframes problems: Nonlinear innovation requires a company to escape the shackles of precedent and imagine entirely novel solutions to customer needs and dramatically more cost-effective ways of meeting those needs (Hamel, 2002, p. 14) May added that the value to innovation in learning how to see lies in changing one s perspective on the problem (May, 2007, p. 88). Challenging quantum objectives requires educators to make a significant change to how they approach their instruction. Approaching success through the value of experimentation: Although the value of experimentation will always be important in validating hypotheses in all branches of learning, business educators must recast the value with a new and increasingly expansive meaning. Experimentation can no longer only be a structured means to an end: it must also routinely be a means to a means. Throughout history, colleges and universities have used experimentation to facilitate choice between multiple research outcomes. Business faculty have similarly promoted that approach as they taught future business leaders. Boland argues that managers are, Trained and rewarded for being decision makers to have alternatives presented to them from which they make choices by computing net present values, optimizing underassumed constraints, and trading off risks for returns. (Boland, 2006, p. 52) Experimentation must become a continuous process through which new and unforeseen ideas bubble to the surface for consideration. Boland (2006, p. 50) ably compared the traditional form of experimentation ( decision attitude ) to design thinking ( design attitude ): A decision attitude toward problem solving is used extensively in management education. It portrays the manager as facing a set of alternative courses of action from which a choice must be made. The decision attitude assumes it is easy to come up with alternatives to consider, but difficult to choose among them. In contrast, the design attitude toward problem solving assumes that it is difficult to design a good alternative, but once you have developed a truly great one, the decision about which alternative to select becomes trivial. The design attitude appreciates that the cost of not conceiving of a better course of action 101

103 Oster and Stone than those that are already being considered is often much higher than making the wrong choice among them. Key reasons that global leaders innovate include: harnessing discontinuities. discovering and correcting faults with current products or services. understanding unarticulated needs. taking advantage of latent opportunities that others miss. extending utilization of an existing successful product or service. Fundamental to the achievement of these ends is a form of experimentation known as prototyping. A prototype, regardless of its type, is not meant to represent a final idea. Instead, an explosion of prototypes is utilized to get and refine many possible ideas on the path toward a smaller number of useful ideas. Global business leaders must learn how to co-create with current and prospective customers, which requires that they view and consider many early prototypes. Davila suggested that global leaders, Fail fast and cheaply. Define small practical tests that can be done cheaply. Build a prototype and test it quickly. It is often best to work with a partner, such as a lead customer or a supplier, to share costs, risks, and learning. Get the results and determine what was learned and what new questions were identified. Modify the prototype Remember that the plural of anecdote is data. (Davila, 2006, p. 131) Global innovators think visually. May suggests that people, Tell the story with pictures get graphic about it, literally or figuratively. Get visual: storyboard it, diagram it, mindmap it, whiteboard it, butcher-paper the walls and go crazy (May, 2007, p. 107). The ability to translate ideas into two- or threedimensional portrayals of the ideas is an essential competency in global innovation. Drawing, computer rendering, clay carving, etc. are just a few of the ways of making rapid prototypes. As Davila (2006, p. 131) explained, In their simplest forms, prototypes are spreadsheets, process maps, or simulations anything simple that enables you to visualize and understand better where your ignorance exists. The future success of global business leaders, and those who teach them, will pivot on their ability to capture and portray new ideas, and the rabid tenacity necessary to turn them into reality. CONCLUSION Building competent business leaders with a global mindset has proven challenging. It s no longer sufficient for business instructors to merely train students in the basic applications. Many of the competencies necessary to thrive in a volatile global environment are learned in the classrooms of business schools located throughout the world. Global executive development is much more complex and unpredictable and requires greater focus, effort, and resources concentrated over a longer period. (McCall, 2002, p. 172) 102

104 Just as the business men and women in the global economic environment are refocusing on these new values to succeed, so must the business educators incorporate the same values into their own value sets and those of their institutional curricula. The former tranquil educational values of business instructors serviceable for so long in the past are inadequate for the turbulent future. The values of curiosity, knowledge, intimacy, challenge, and experimentation need to be embraced by business educators. Researchers are challenged to engage empirical studies to quantify these values posited by the authors. Only then can they be recast and globalized for their instructional efforts to be relevant to the development of effective future global business leaders. These five key values will play a crucial role in the success of business educators and the development of future global business leaders. REFERENCES Andrew, J. & Sirkin, H. (2006). Payback: Reaping the rewards of innovation. Boston: Harvard Business School Press. Bennis, W. & Biederman, P. (1997). Organizing genius. New York: Addison- Wesley. Black, J., Morrison, A. & Gregersen, H. (1999). Global explorers. New York: Routledge. Boland Jr., R. & Collopy, F. (2006, Spring/Summer). Design matters for management. Rotman Magazine, Burkan, W. (1996). Wide angle vision. New York: Wiley & Sons. Charan, R. (2007). Know-how. New York: Crown Business. Davila, T., Epstein, M., & Shelton, R. (2006). Making innovation work. Upper Saddle River, NJ: Wharton School Publishing.. Fisher, R. & Martini, P. (2004). Inspiring leadership: Character and ethics that matter. King of Prussia, Pennsylvania: Academy Leadership. Fraser, H. (2006, Spring/Summer). Turning design thinking into design doing. Rotman Magazine, Gryskiewicz, S. (1999). Positive turbulence. San Francisco: Jossey-Bass. Halal, W. (2008). Technology s promise. New York: Palgrave McMillan. Hamel, G. (2002). Leading the revolution. New York: Plume. Hirshberg, J. (1998). The creative priority. New York: HarperBusiness. Kafka, F. (1995). The complete stories. New York: Schocken. Liedtka, J. (2006, Spring/Summer). If managers thought like designers. Rotman Magazine, Malphurs, A. (2004). Values-driven leadership. Grand Rapids, Michigan: BakerBooks. Martin, R. (2005, Fall). Embedding design into business. Rotman Magazine, Fall 2005, Pp May, M. (2007). The elegant solution. New York: Free Press. McCall, M. & Hollenbeck, G. (2002). Developing global executives. Boston: Harvard Business School Press. 103

105 Oster and Stone Nambisan, S. & Sawhney, M. (2008). The global brain. Upper Saddle River, NJ: Wharton School Publishing. Rokeach, M. (1973). The nature of human values. New York: The Free Press. Rokeach, M. (1979). Understanding human values. New York: The Free Press. Rosen, R. (2000). Global literacies. New York: Simon and Schuster. Skarzynski, P. & Gibson, R. (2008). Innovation to the core. Boston: Harvard Business Press. Taylor, C. (1985). What Is Human Agency? in idem, Philosophical Papers, 2 vols. Cambridge: Cambridge University Press. von Krogh, G., Ichijo, K., & Nonaka, I. (2000). Enabling knowledge creation: How to unlock the mystery of tacit knowledge and release the power of innovation. Oxford: Oxford University Press. 104

106 Vol. 1, No. 1; Fall 2009/March 2010 EDUCATION AND EMANCIPATION OF KENYAN WOMEN IN THE MODERN ERA James M. Mbuva National University ABSTRACT: This study investigates the emancipation of the Kenyan women through education, which subsequently changes the traditional stereotype position of Kenyan women in the postmodern society. Before and after the independence of Kenya in 1963, Kenyan women played a key role in the cultural and social change of society. However, with the introduction of education, women were left behind while their male counterpart propelled high up in education, they got all jobs which were first occupied by the colonial government, and consequently they changed the landscape of rural and urban life. To achieve the goals of this study, the key areas of examination include the definition of emancipation and traditional stereotype position of women in Kenya, the reversal of gender roles, and the picture of tomorrow s male and female relationships, education as a transformational agent, conclusions and recommendations. The results of this study demonstrates that education has emancipated Kenyan women; male/female roles are reversing as women become leaders, and that the traditional stereotyping of the Kenyan woman is vanishing starting at home, school, and at the work place both in the rural and the city. INTRODUCTION The purpose of this study is to investigate the emancipation of the African- Kenyan women through education. The author among other factors such as breaking the traditional stereotype barriers of women position in the society, reversal of gender roles, migration of women to the city, sees educating as the sole emancipator of women would consequently enhances the vanishing of traditional stereotype position of Kenyan women in the postmodern society. The goals of this study are accomplished through examination of key variables such as the definition of emancipation and traditional stereotype position of women in Kenya, the practicality of the reversal of gender roles, the new leadership role of Kenyan women, and the picture of tomorrow s male/female relationships at home and at work, and education as the transformational agent. Before and after the invasion of European colonialism of African countries in the 17 th century, the African Kenyan women have been treated as the primary workers in the traditional homes; yet without power, authority, control over resources, and ability to allocate resources. Kenyan women were able to work in the farms, hard cattle if they had no male children to look after the cattle; and yet they had no say at home because men were the sole owners of property such as land, cattle, and all things in and outside the home. As late as 1963, when Kenya obtained its independence from the British, has the treatment 105

107 Mbuva of women in Kenya changed? Absolutely not, because male dominance over women still continued with a smile. Women got a tertiary primary education, got married, and continued to bear and raise children. While marriage and raising of children is a good thing, still African Kenyan women continued to lag behind in their pursuit of education and a better life which could only come through good education. On the other hand, men continued to enjoy and kept the same power and authority over everything; hence they don t find it easy to share control of resources with women. It is from this context that this study hypotheses that education is the sole emancipator of Kenyan women. Yes, educating women is the key. RESEARCH PARADIGMS AND ASSUMPTIONS This study is based on the interpretive/constructivist paradigms and embraces the assumption that knowledge is socially constructed by people active in the research process (Mertens, 1998 p.11). The predominant methodology of this research paradigm is qualitative in nature and it includes interviews of Kenyan women, observations, and document reviews concerning emancipation of Kenyan women (Mbuva, 2009; Mertens 1998). The study incorporates the emancipatory paradigm, because it looks into the critical theory of Freire, participatory and transformative research (Dabisch, 2005; Leornard & Mclaren, 1992). The emancipatory research paradigm directly addresses the politics in research by confronting social oppression at whatever levels it occurs (Mertens, 1998 p.150). This study marks the beginning of the long battle of freeing women in Kenya and the rest of the world. In my letter to the editor, January 4, 2003, when addressing the 3 rd President of Kenya, the honorable Mr. Mwai Kibaki, I suggested that women should be given equal rights in the political arena as the men. I added that women should be represented, and they should be allowed to lead in cabinet positions; because they must be emancipated, they are politically marginalized, they are economically depraved, they are less educated and ill equipped to compete with their men counterpart in the job market, was my focus (Mbuva, 2003). LITERATURE REVIEW In this section of literature review, the study examines the emancipation and the traditional stereotype position of Kenyan women, the practicality of the reversal of gender roles, the picture of tomorrow s male and female relationships, education as a transformational agent, conclusions and recommendations. EMANCIPATION According to The Merriam-Webster Dictionary (1997), emancipation means to set free, to liberate, to release, to deliver, and to discharge. The black slaves emancipation of 1880 in the USA meant the Negro was made free, made a citizen, made eligible to hold office, to be a juryman, a legislator, and a magistrate (Douglass, 1880). When Douglass (1880) compared the results of 106

108 emancipation between the black slaves and the Russian Surfs he concluded, When the serfs of Russia were emancipated, they were given three acres of ground upon which they could live and make a living; but no so when our slaves were emancipated. They were sent away empty- handed, without money, without friends and without a foot of land upon which to stand... Hence, according to Douglass, emancipation could be practically realized, or could be caged in paper and parchment (1880). Although Goldman s (2000) essay Anarchism and Other Essays have advocated that emancipation of women would be the woman s responsibility exclusive of her counterpart, I hold her interpretation of emancipation which recognizes that: Emancipation should make it possible for woman to be human in the truest sense. Everything within her that craves assertion and activity should reach its fullest expression; all artificial barriers should be broken, and the road towards greater freedom cleared of every trace of centuries of submission and slavery (Goldmans, 2000). Hence, women must be freed, liberated, delivered, released, and discharged to become the individuals they have always wanted to be, and to govern men s world equally. TRADITIONAL STEREOTYPE POSITION OF KENYAN WOMEN Like many other African cultures, the traditional role of Kenyan women in the society has been viewed as that of a bearing of children, cooking for the family, cutting wood from the fields, cleaning, cultivating the farms (for food), planting, harvesting, and doing all sorts of manual labor in and around the home; whereas men being free from all of the above roles migrate to the city in search of a more comfortable paying job in the city. Women are supposed to thatch houses with grass, apply the mud, and draw water from the river for the construction of any new house in the village. You may go into homes and see people including the women saying, Men do not stay in the kitchen. Kitchen belongs to the women and their girls, men are supposed to be working hard in the fields. The stereotype that women are imprisoned in the kitchen as cooks is pervasive in the culture. These stereotypes of the role of women in the society have inspired me to research more on the subject. THE PRACTICALITY OF THE REVERSAL OF GENDER ROLES The rest of the study will focus on finding answers to the following questions: Is it practical that women can play male roles in the society? Is there a way of a dual sharing of responsibilities? Are women able to become providers, control resources, make decisions, and control the way resources are used in the society? Answers to these questions would provide ways of enhancing the emancipation of women in African societies and the global community. Women migration to the cities and the new leadership role of women in the rural as a result of migration of males are the new variables, which affect women emancipation in Kenya. 107

109 Mbuva WOMEN MIGRATION TO THE CITY Unlike the rural life experience, urban centers such as Nairobi and Mombasa attract women migrants with expectations of higher wages, more opportunities for personal advancement, freedom, and independence from social constraints of village life, and a better way of life overall as compared to the hardships of rural living (Smith, 1998). While women migration to the city may lead to the so long awaited independence, Smith seeing the apparent danger affirmed, However, with decreasing urban wages and the effects of overpopulation in urban areas, they [women] may arrive only to be met with unemployment, hard labor, or poor communal living in the suburban shantytowns. Smith adds that, It may take weeks of tamaking or looking for work before any promise of employment is found and if one has no relatives or friends in town, living alone or even sleeping on the street may be the only initial options. The expansion of urban areas resulting from this migration has also led to a decrease in the quality of available health care, restricted entrepreneurial opportunities, and limited availability of quality education (Smith, 1998). Smith s study showed that although women are making strides in venturing into the men s city life, it is couples with difficulties; hence, women might be in a more vulnerable situation than in the rural. This does not mean that women should stop trying. THE NEW LEADERSHIP ROLE OF WOMEN IN THE RURAL Research has demonstrated that women life experience at the rural may be seen as that of dependency upon men since women don t own land, and that they don t control the production of land, hence rendered marginalized in the village community, and expelled from the public lime light, nevertheless, with the migration of men to the cities the Kenya women have resumed new leadership role because they are becoming de-facto household heads and the predominant decision-makers within the household (Smith, 1998). Smith s study shows an increase of 27% to 33% of female household in Kenya, and that Nairobi and Mombasa shows the most increase. In accordance with Smith s (1998) Rural To Urban Migration And Its Effects On Kenyan Women ethnographic research, the new leadership role of women in the rural is influenced by variety of factors, which include: (1) Men s increased absence in the rural areas, here, women have to take over the responsibilities of decision-making and resource allocation; (2) The land (Swahili shamba) has become the Kenya woman s office, in that women are now using their land and their productive roles to create their own public sphere within and as a manifestation of the private; (3) Women are not seeking for independence by migrating to the cities, but by creating their own social systems of production and provision, which provide the freedom of the urban office in a predominantly domestic and private realm; and, (4) Through avenues of women s cooperative groups women have been able to gain access to the public roles vacated by men, particularly those of resource allocation and community development. Through 108

110 these groups, women discuss their problems and have been able to contribute money to one another, which is used to meet their own needs. These same groups exist among women in Nairobi, and unlike the rural women s success depending on land or cattle, their success depends entirely on business (Smith, 1998). Men s departure from the rural life style has opened gateway for women to exert independence, power, and control over resources in the rural social environment. It is clear that the new social system of production is based on women s collective effort. They think together, they pull together, and they succeed together. In the rural setting, land is a means of production, whereas businesses in the city are the new the means of production to women migrants. The tables 1 and 2 given below provide and demonstrate an analytic comparative presentation of women and males in the rural and city settings. When men and women live together in the rural, their job descriptions are very distinct based on cultural traditions of the African people. Almost entirely women perform jobs around the home, which include child bearing and nursing, cooking, and cleaning, etc.; whereas, men lead, own cattle, allocate resources, and perform selective manual labor. Table 1: Women and Men Roles in the Rural Women Men Child bearer and nurse Lead Cultivate land Own cattle Cook Own land and produce Cut wood Provider Draw water from the river Plough the farm Clean Take cattle to the fields Not a provider Allocate resources Don't make decisions Make decisions Don't control resources Control resources Don't allocate resources Allocate resources Perform manual labor of all sorts Perform selective manual labor On the contrary, when women get into the city life as new immigrants, they tend to do the jobs men can do. Although women are less educated, they tend to have more opportunities open for them. They begin to make decisions concerning their salary, allocate resources and provide for members of family in the city and in the rural. Those women who represent their constituencies as 109

111 Mbuva members of parliament, they attend political meetings in the city, deliberate with their male counterparts, and make decisions concerning their electorates. It looks like women have intruded men s world in the city, but it doesn t hurt to share the bounties, the power, and the authority new job opportunities require. Table 2: Women and Men Roles in the City Women New migrants Men Older migrant Variety of business opportunities Best jobs Providers Make decisions Independent Control their lives Control Resources Allocate Resources Members of parliament Less educated Providers More educated Make decisions Independent No more control over women Control resources Allocate resources Members of parliament More educated THE PICTURE OF TOMORROW S MALE/FEMALE RELATIONSHIPS Given the women s independence, power and control over resources, one would ask the following questions: (1) Is there a chance of building a family where men and women were equal stakeholders? (2) Would men appreciate and accept the postmodern emerging leadership role of women in the society? (3) Would men share power, authority, and control over resources? Would both women and men have equal land ownership and title deeds? These questions are so important and this study would suggest a future investigation of women/male relationships in details. However, for the purpose of this study, few ideas will suffice. BUILDING A FAMILY WHERE WOMEN AND MEN HAVE EQUAL POWER Love between women and men, which would bind them together for a long time, would only provide a healthy social and spiritual environment for the continuance of raising healthy citizens, leaders, fathers, mothers, and teachers of our children. Although Goldman has advocated for the emancipation of women and has worked hard to demonstrate that women have to stand for their course without being independent of men, I disagree that love for a man, would imply fear and this love will robe her of her freedom and independence, and that this 110

112 love brings horror and that the the joy of motherhood will only hinder her in the full exercise of her emancipation (Goldmans, 2000); because I believe that true love between men and women should strike the balance of true equality, respect, fairness, shared leadership, authority, and power. Hence, there is hope that both women and men can build a family on equality, fairness, and love, which would be a base for a healthy nation. However, men should never abandon or forget their families (wives and children) by taking other wives in the city; as is exemplified by Kenyan women testimony that there is the possibility of their husbands leaving them for other women (Smith, 1998). ACCEPTANCE OF WOMEN S ROLE OF LEADERSHIP On the same basis of equality, men should appreciate women as leaders, and accept the fact that they can become providers and that they have the right to allocate resources by working hard both in the city and in the rural. Although 2002 and 2007 Kenya s general election results demonstrated a forward stride that Kenyans have changed their attitude towards women in government leadership, women on their rights have gained strength in pursuing higher positions of power; and that a few educational elite women became members of parliament, such as Charity Ngilu who was nominated in 2003 as the Minister for Health and Martha Karua, who was nominated in 2003, 2005, 2007 as the Minister for Water and Irrigation, and Minister for Justice and Constitutional Affairs respectively (Kenya Votes, 2007). We have a long way to go before we involve women equally in all areas of societal participation and power sharing (Mulama, 2009). Nevertheless, this is a great step forward. If women have been able to make reasonable decisions on how to run homes when men have gone to work in the cities, why not accept the fact that they can share power, authority and control over resources. Women should also be allowed by the traditional law and the Kenya constitution to own land and title deeds and be able to dispose of them whenever suitable. EDUCATION AS A TRANSFORMATIONAL AGENTFOR CULTURAL CHANGE Education is the Key: The unbalanced participation of women in societal affairs such as political circles and the leadership of the African countries are due to the lack of education. Joy Mukanyange, who grew up as a refugee in Uganda and has since served as Rwanda s ambassador to several nations says it was education that helped her and her female colleagues to achieve nearly equal representation in the government (Unicef, 2008). The general consensus according to PANA (1996) is that, if women are empowered through the means of qualitative education the African women would adequately participate in social cohesion, political stability, economic development, and would enhance unity among members of the society effectively. As a matter of fact, women as mothers, preservers of culture, and teachers, they can lead as the presidents of the African nations and for once Africa would be peaceful and strong. However, education as the only effective agent of cultural change must permeate women 111

113 Mbuva life from the smallest girl to the adult women. Women have always wanted to do good for the sake of all members of the society; whereas, the hunger and thirst for leadership from men since big man theory leadership phenomenon of Mobutu of Congo, Moi of Kenya, Mugabe of Zibambwe, and Museveni of Uganda, has risen up. These men and others have remained in power until something supernatural took them out of power. For instance, in 2008, Mugabe told the whole world that it is God who can take him out of power. Earlier, in 2007, the same Mugabe had Morgan Tsvangirai so severely beaten by the police after his arrest on Sunday morning he lost consciousness three times (Peta, 2007). Further, when Zimbabwe wanted a new change through Morgan Tsvangirai of the opposition party, Mr. Mugabe announced that he wants to stay in power until 2014, despite a ruined economy and spiraling inflation (Peta, 2007). The big man theory leadership phenomenon, which pivots around big money, big name, big dynasty, big tribe, big background, big party, etc. will only be decimated if cultural change of gender roles and equal rights of women is realized, and if women are highly educated and become members of the leadership club. DEMOCRATIZATION OF EDUCATION For education to be realized among all African women, education must be democraticized to include women in poor rural villages, inner cities, and slums (PANA, 1996; Dada, 2006). Uche campaigning for female education and empowerment in Africa through media suggested that media should support the education of girls and women for Africa to be developed (PANA, 1996; Dada, 2006). This is true because according to UNDP Human Development Report of 1996 shows that Africa has the lowest female school enrolment among all developing regions (PANA, 1996; Dada, 2006). Hence, qualitative education should not be limited to the children of the elite section of the society. EFFORTS OF FORUM FOR AFRICAN WOMEN EDUCATIONALISTS (FAWE) Women educationalists through FAWE have engaged themselves in efforts of the education of girls and women across Africa (FAWE News, 2000; PANA, 1996). But this is not enough. The effort of bringing education to the girls and the women of Africa should be a universal issue because it affects the political, social, economical, and the emancipation of a gender, which has for many years been dominated by African man (PANA, 1996). Women must be free, and it can t happen if they are in the endangered species list by being imprisoned in the jail of illiteracy and despair (PANA, 1996). The African women must be emancipated through education not only to free themselves from male dominance, but from illiteracy and cultural patriarchal traditions, hence literacy programs aimed at bridging the gender gap must be promoted throughout African countries (Kwayera, 2000). Hence, Kenya s higher education institutions should be instrumental in carrying out the mission of expanding opportunities 112

114 for women, which would create opportunities for employment; rather than creating new subtle arenas for exclusion (Oanda, 2005). CONCLUSIONS AND RECOMMENDATIONS The findings of this study have demonstrates that emancipation of African Women from the darkness of lack of education, political power, economic say, and social change is mandatory. It is through educating the African girls and women that the arch-aching traditional stereotyping of women role as that of only cooking, cleaning, and childbearing should cease completely. With the migration of both men and women have taken leadership roles at home and they have to take over the responsibilities of decision-making and resource allocation. With the migration of women into the city in search of better pay, they have gained control over their money and are able to make decisions and allocate resources. Certainly, women are intelligent, and can do well if the society accepts women s role of leadership. This is possible if the African society accepts the paradigm shift of shared power, authority, equal land ownership, control over resources, and building a family where men and women have equal power. The study recommends that in order for the African women to be totally emancipated in the post modern society, the fathers, the husbands, fathers and sons should promote women liberation because charity begins at home. More girls should be enrolled to schools in order to equitably bridge the educational gap, empower women, and educate all girls irrespective of their socioeconomic background (Oanda, 2005). Organizations such as PANA and FAWE have strongly supported women rights and empowering them, but they can not do it all alone. Kenya government, ministry of education, primary and secondary/high schools and universities need to educate girls and women conscientiously and conspicuously. REFERENCES Dabisch, J. (2005). 30 Years after Pedagogy of the Oppressed. Paulo Freire Kooperation. Dada Akili (2006). Empowerment of the Next Generation of Kenyan Women Leaders. Akili Dada Scholar. Retrieved from Douglass, F. (1880). The Serfs Of Russia Were Given Three Acres Of Land: Frederick Douglass assesses the meaning of emancipation in Retrieved from Goldman, E. (2000). The Tragedy of Woman s Emancipation. New York: Mother Earth Publishing Association. Retrieved from ation.html Kenya Votes News and Information on the Kenya Election. Kwayera, J. (2000). Literacy Programs Bridging the Gender Gap. Retrieved on July 2, 2003 from Hartford-hwp.com/archives/36/198.html 113

115 Mbuva Mbuva, J. M. (2009). Writing Theses Projects: Learning How to Pull it all Together Using APA Format. Mbuva, J. (2003, January 4). NARC Should Keep the Promises Made to Voters. Nairobi, Kenya: East African Standard Ltd. [Online]. World Wide Web at letters02.htm. Mertens, D. M. (2005, 1998). Research Methods in Education and Psychology: Integrating Diversity With Quantitative and Qualitative Approaches. Thousand Oaks, CA: Sage Publications. Mulama, J. (2009). East Africa: Increasing Women s Participation in Government. IPS News. Retrieved from Oanda, I. O. (2005). New Frontier of Exclusion: Private Higher Education and Women s Opportunities in Kenya. JHEA/RESA 3(3) Pan-African News Agency (PANA) (1996). Africa: Women Rights. Retrieved on July 2, 2003 from Leornard, P., Mclaren, P. (1992). Paulo Freire: A Critical Encounter. Routledge. Smith, T. R. (1998). Rural to Urban Migration and its Effects on Kenyan Women. Retrieved from. Peta, B. (2007). Zimbabwe opposition leader beaten unconscious by police. The Independent. The Merriam Webster Dictionary (1997). Springfied, Massachusetts: Mirriam Webster Incorporated. UNICEF (2008). Basic Education and Gender Equality: Women Parliamentarians lead major challenge. Retrieved from 114