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Chapter 7 : Micro-Institutional Perspective

7.3 Proposition 4 – Opportunity

As discussed in Chapter 4, when an individual is attempting to transfer knowledge that conflicts with current institutional logics, they have the choice to acquiesce,

compromise, avoid, and defy (Oliver, 1991). There is, in fact, another option, which is to educate, as suggested by Orr & Scott (2008). We will consider that option in Chapter 7.

Since avoidance and defiance techniques are much more likely to lead to conflict and tension between the new entrant and the workgroup members, such strategies may lead to the new member being ostracized from the group. Workgroup members who

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have internalized more home country institutional logics and have deeper social capital are more likely to choose to acquiesce or compromise when faced with a knowledge transfer situation that conflicts with existing institutional practices. Such choices will reduce tensions and conflict with other members of the workgroup. As such, this should lead to a higher level of acceptance of the returnee by other members of the workgroup.

A senior manager from a large manufacturing firm describes the difference between returnees who had left Korea after completing their undergraduate and military service and those that went abroad at a younger age. He believed that the second group of people are not able to understand how things get done in a domestic firm and are more likely to insist on following an “American” approach. Their approach will often lead to their ideas being rejected by colleagues and supervisors.

I have two colleagues who went straight to university in the USA – one of them who did his high school in the USA. His cultural shock was worse than mine. Since he spent his younger years in the USA, he doesn’t know how the hierarchy works in an organization. His way of thinking is completely westernized. So, he has a lot of conflict with his colleagues and bosses. In Korea we have a somewhat unique system because we have to do army. Most young Korean men spend one or two years in the army service. Because of this, they spend a period learning what is the organization, what they need to do in the organization, and how they have to do it. Most men think that the army service is very similar to the company way of life. It is quite a problem for those who spend high school and university in the USA. Even if they go to the army, it will only be for a couple of months. So, he doesn't know how to behave in a Korean company. He thinks that the American way can work here, but it doesn't. So, he fights a lot and is not given much respect. (Returnee #1, Company A)

Kane (2010) found that when knowledge was highly tacit, an individual was more likely to be successful at transferring that knowledge to the workgroup when the

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superordinate social identity. Superordinate identity is a similar concept to our

understanding of the social distance dimension of psychological distance. Psychological distance is lowered when the knowledge is introduced by a person socially close

(Stephan, Liberman, & Trope, 2010; Trope & Liberman, 2010).

A senior project manager from a large manufacturing firm was discussing the failure rates among people who did not understand Korean organizations. He argued that in order to be effective at work, one must build up strong social relationships with other members of the groups. Those who did not understand the domestic ways or who insisted on following more “western” social norms had difficulties fitting in and selling their ideas.

I saw some of this. There are two different groups who study abroad and join [the company] again. Those who understand Korean culture, and at the same time understand some western cultural, and can just mix the two together. And they are really well adapted to Hwa-Sic culture [drinking culture—for him this meant social norms]. They will be successful here. But some people, they say I am not a Korean. I have experience in the United States. I am going to do things my way. I’m not going in for all the social obligations. I am just going to follow the western style. In that case, it is like oil and water. They cannot mix together. I saw those people. But those people are not going to stay long time here because no one is going to listen to them. They are useless here.

(Returnee #13, Company A)

In sum, individuals who have a better understanding of the institutional practices and norms of the home country are more likely to choose an acquiesce or compromise strategy when faced with incongruent institutional logics (Orr & Scott, 2008). Acquiesce and compromise strategies build and repair relationships (Orr & Scott, 2008) and, as such, improve the social capital of the new entrant. As Oddou et al. (2009) argue, the

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greater a new entrant’s ability to develop social capital in the workgroup, the more opportunities they have to share and thus have their ideas heard by other members of the groups. On the contrary, those with weak internal social ties are more likely to be viewed as outsiders, and as a result, be less trusted by and listened to by other workgroup

members (Levin & Cross, 2004).

Thus, we suggest that returnees who have a deeper understanding of the domestic institutional logics will respond to incongruent norms and cognitive-cultural practice in a way that creates more opportunities, due to increased openness and acceptance from other workgroup members, for knowledge transfer. Creating opportunities to transfer knowledge increases a returnee’s disseminative capacity; without opportunity there can be no knowledge transferred.

Proposition 4: The returnee has more opportunity to transfer knowledge to the workgroup when he/she has greater embeddedness in a domestic environment.