Critiques of international business theory have recently pointed to weaknesses in the handling of context, of culture, and of policy implications. It is contended that the origins of such failings lie in the discipline's commonly accepted methodologies, and in turn that they have epistemological roots. As a route out of the dilemmas faced, a proposal is made to adopt more complete ways of handling determinacy, including the influences of history, culture, and the societal emergence of institutions. Business systems theory is drawn upon and a model proposed, developed from the work of Whitley. In this, culture is seen as underpinning formal institutions, which in turn underpin societal business systems. The use of the model relies on the ideas of Geertz on ‘thick description’ and of Ragin on holistic analysis. It is illustrated with a comparison of the American and French socio-economic systems, seen historically. Findings in strategy research about the geographically defined nature of firm supremacy in many industries are brought into the account, using the business systems literature. Consistent patterns of determinacy, as well as distinct and contrasting trajectories of business system evolution, are noted. A more complete and multidisciplinary form of explanation, grounded in socio-economics, is advocated as a means of meeting the challenges both of understanding and of policymaking at several levels. Journal of International Business Studies (2005) 36, 123–155. doi:10.1057/palgrave.jibs.8400129
Purpose
Grounded in Yijing, the wellspring of Chinese philosophies, this research aims to propose a novel interpretation of the indigenous Yin-Yang harmony cognitive framework, and to elaborate on how to use it as a meta-theorising tool to characterise the conflicting yet complementary dynamics of strategy, commonly seen as the prominent feature of Chinese strategic thinking.
Design/methodology/approach
Using the Yin-Yang harmony approach (i.e. Yin as the endogenous factors and Yang the exogenous factors), the authors first put forward eight paradoxical situations facing Chinese organisations as per the changing paradigm of Yijing. Then the authors use the thick description model as a roadmap to identify three evolving trajectories in Chinese higher education (HE) system. Finally, they raise four strategic propositions regarding how competing HE institutes handle the conflicting yet complementary dynamics in China.
Findings
Results show that the main strategic choices used by two different types of higher education institutes to cope with the current high-level uncertainty and competition could be described in terms of the two “Qian” and “Li” strategic situations, respectively. More details are discussed in the four propositions.
Research limitations/implications
This research brings potentially valuable implications for global regulators, policymakers, providers and other stakeholders through better understanding of HE-related issues, as well as certain distinct conceptual complexities in terms of developing strategies in China. It implies potentially significant differences in cognition between East and West, and illustrates what may be their workings.
Originality/value
This indigenous eight-dimensional paradigm demonstrates the conflicting yet complementary dynamic gestalt of organisational strategic choices that may only be realised in Chinese terms, and that cannot be elucidated by theories purely derived from Western experience. It thus can foster the transfer of understanding between the East and West and open a new chapter for future research.
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