Managerial Impact of Globalization - Research Paper Example

Research Management Contents Introduction 3 Managerial Impact of Globalization 3 Structure of Report 3 Summary 3 Rational of Research 3 Research Question Clarity 3 Conceptual Foundations 4 Methodology 4 Design 4 Instruments 5 Sampling and Data Collection Process 5 Ethics in Research 5 Main Findings and Implications 6 Primary Findings 6 Analysis 7 Limitations 9 Conclusion 9 Reference List 11 Bibliography 12 Introduction Managerial Impact of Globalization The activities of the business firms in the current era are significantly influenced by changes occurring in the external business environment. Globalization is defined as the international integration of products, ideas, world views and other aspects of culture. Post globalization, every commercial firm is exposed to the international trading market. Such an exposure has carved relevant ways for new opportunities and challenges. It is also found that after globalization and trade liberalization, economic and social status of certain underdeveloped countries such as, Africa, have considerably improved (Mamman and Baydoun, 2009). This research paper focuses on the managerial impact of globalization in a commercial bank of Africa. Structure of Report The researcher will firstly summarize key findings of the report. Secondly, the report will explain the methodology used for conducting the research work. Thirdly, ethical issues considered during the course of research will be elaborated. The fourth section of the report will discuss the findings and implications in detail. Finally, a conclusion will be provided for analyzing the suitability and relevant aspects of the research. Summary Rational of Research The research paper aims to examine the impact of globalization on a commercial bank of Nigeria. In order to perform the analysis, the current paper has utilized the managerial and organizational cognition (MOC) theory (Kiggundu, Jorgensen and Hafsi, 1983). The research analysis has connected the micro and macro dimensions of globalization. Research Question Clarity The managers in giant corporations collect and interpret different information about the external environment, before formulating new strategies in business. Hence, activities of the organizations, such as, banks, are predefined and practiced according to the perceived conceptions of the managers regarding the business environment (Mamman and Baydoun, 2009). This research paper will assess the impact of globalization on the managerial strategies and activities of Nigerian commercial banks. Conceptual Foundations The respondents included in the research have claimed that globalization has yielded unfair outcomes. They believe that the process is endangering the economic status of Nigeria and lowering its cultural values. However, they have realized that globalization have also generated certain benefits for their economies. The process has enhanced quality of management transfer, business practices and foreign direct investments (Mamman and Baydoun, 2009). In addition, the respondents have stated that the country has been considerably exposed to the political and economic systems of other countries through globalization. Despite such additional advantages, the research paper has proved that Nigerian economy is facing numerous difficulties with onset of globalization because the government authorities are facing difficulties in effectively formulating economic policies that will favor the nation. The paper also points out that several individuals assume that principals and philosophies related to globalization might not be equally beneficial for all economies across the world. Post globalization, the Nigerian economy has improved in terms of trade and foreign direct investment, but the country’s political and economic power had diminished in the global market (Mamman and Baydoun, 2009). The important decision making aspects of poor countries such as, Nigeria, are now found to be influenced by certain powerful globalized world nations. Hence, the research paper has ultimately established that actual benefits accrued by Nigeria from globalization are greater compared to the associated problems. The analysis process is executed by considering the case of a single African commercial bank. Methodology Design The research paper has employed survey methodology approach in order to gather relevant data and information for accomplishing the research work. Thus, the research work was conducted on the basis of inductive research approach (Mamman and Baydoun, 2009). Instruments Both qualitative and quantitative analysis tools were used for the research. The qualitative analysis was done with the help of literature review. On the contrary, the quantitative analysis was accomplished through a closed-ended questionnaire survey. In this process, 22 items were included and quantified based on five-point Likert-type scaling instrument (Mamman and Baydoun, 2009). The collected data was evaluated with the help of descriptive and inferential statistical tools. Sampling and Data Collection Process In order to perform the quantitative analysis, 1000 questionnaires were circulated in 100 different branches of the commercial bank. However, out of 1000, only 204 usable questionnaires were received (Mamman and Baydoun, 2009). The research took place in Nigeria and its predicted population was total strength of the managerial officials of all commercial banks in the country. Even so, it was feasible to select a suitable sample from the population. The research had chosen the sample from a commercial bank of Nigeria through random sampling method. The size of the sample was 204, including professionals and managers of the bank (Mamman and Baydoun, 2009). The following table explains the composition percentage share of the respondents within the sample. Designation Percentage Share within Sample Directors 2% Senior Managers 9.3% Middle Managers 54.9% Accounting and Law Professionals 33.8% Ethics in Research The researcher had strictly followed all ethical and moral norms of research. The analysis of literature survey did not directly influence results of the quantitative analysis. Furthermore, personal information about the respondents provided in the closed-ended questionnaire survey was kept confidential during and after the research work (Mamman and Baydoun, 2009). Main Findings and Implications Primary Findings The primary results obtained from the closed-ended questionnaire are presented in the following figure. (Source: Mamman and Baydoun, 2009) The results prove that there are numerous advantages and disadvantages of globalization. However, if summarized, then more than 59% of the respondents appear to believe that benefits derived outweigh the limitations. Through the mean ranking descriptive statistical analysis, the current paper proved that the positive impacts of globalization experienced by rich nations are greater than that of poor countries. The results mostly proved that globalization had helped to improve the business practices followed in Nigeria, but has adversely affected the existing social and cultural system. Nonetheless, the analysis proved that benefits obtained by foreign direct investment and privatization in Nigeria could not be adequately used in order to improve productivity of companies operating therein. Perhaps this is the reason for which the perceived impact of globalization is negative for the Nigerian economy to an extent (Mamman and Baydoun, 2009). Analysis It is found that the impact of globalization is negative for certain developing economies because the trade rules established in a globalized world favor interests of the powerful economies of the west. Some respondents within the sample consider that culture and value system of Nigeria is largely hampered by globalization. A large proportion (over 40%) of the respondents stated that globalization has created barriers for Nigeria in introducing own brand of economic system on the global platform. The sample respondents claimed that globalization had substantially helped to stimulate the economy and state of business affairs in Nigeria (Mamman and Baydoun, 2009). However, the respondents reckoned that the benefits of globalization obtained by the commercial organizations of Nigeria was lesser compared to those of the firms operating in different American and European nations. Consequently, the research work analyzes that economic benefits experienced from globalization is more in rich economies than the poor ones (Mamman and Baydoun, 2009). Despite such perceived problems, the respondents suggested that companies of Nigeria could significantly expand their internationalization process, only after the emergence of globalization. Through occurrence of this phenomenon, these companies could easily export their products in lucrative commercial markets of the European and American economies. In addition, it can be claimed from the survey results that globalization had helped to attract greater amount of foreign direct investments in Nigeria. After globalization, different companies of the American and European nations had started to extend their commercial branches in Nigeria. Then again, the respondents had criticized globalization to some extent. They claimed that the process had restricted the political powers of Nigeria in hands of global capitalism. Consequently, it was perceived that the political authorities of many developing economies were not able to frame their strategic economic and social welfare policies as they are required to strongly abide by the norms established by western political regulating authorities. Nevertheless, globalization is seen to create a polarizing effect upon minds of the different managers of the bank (Mamman and Baydoun, 2009). Some respondents believed that the process had enabled the government to formulate policies that would facilitate growth of the Nigerian economy, but some individuals simultaneously reckoned that the process has lowered the power of government. It is also found that perceived impact of privatization was polarized among the professionals of Nigeria. Some respondents had assumed that sudden release of government control over several business segments of Nigeria through privatization was not feasible because post globalization, the domestic firms were exposed to stiff foreign competition (Mamman and Baydoun, 2009). Relaxation of the government controls through trade liberalization at that point of time had rendered several Nigerian business firms economically vulnerable. At the same time, some respondents believed that the process had enhanced the productivity level of many Nigerian companies, but lowered overall employment. This is because each firm recruited workforce on the basis of profit maximization, but not social welfare maximization. It is also perceived by the officials that privatization process could not help Nigerian economy to diversify, given that the Nigerian economy is still dependent on the petroleum sector. Above 60% of the respondents reckoned that globalization had adversely affected the existing cultural values of Nigeria. The managers also perceived that problems faced within the country’s social and cultural system had spilled over the political and economic sector. They claimed that Nigeria has adopted the ethical and cultural values of western nations after globalism. The respondents did not prefer adopting ethical and cultural values of the western nations as they did not agree that such practices necessarily contributed towards forming a free market economic system (Mamman and Baydoun, 2009). Even so, majority of the respondents considered that benefits arising from globalization have outweighed its negative impacts. From such results, it can be analyzed that the developing world nations are passive participants of globalization. It is true that globalization process has generated several opportunities for the developing economies such as, Nigeria, but has simultaneously created artificial capitalistic pressures over these countries. The impact of privatization was analyzed in terms of polarizing effect. Some respondents supposed that the process of disinvestment did not necessarily improve the managerial expertise and productivity of privatized companies in Nigeria. However, opposing such negative views, a considerable number of individuals claimed that this process had helped to augment working productivity of the Nigerian companies through international knowledge transfer (Ebrahimi, 2000). Hence, these results imply that managers of the Nigerian bank believed that economic liberalization and privatization alone could not benefit the managerial status of the country as diffusion of management innovation is not an automatic process (Mamman and Baydoun, 2009). Limitations The research work proves that benefits derived from the process of globalization are more compared to the associated costs. Nonetheless, the current paper fails to prove the actual benefits of trade liberalization and privatization process. It was perceived that management innovation led by disinvestment process was time consuming in nature. So, privatization process after globalization did not necessarily improve quality of management and productivity of several companies operating in Nigeria (Gnyawali and Fogel, 1994). The research work has failed to analyze ways whereby foreign direct investment and privatization can improve the managerial practices followed in the Nigerian business world. Conclusion The research paper had proved that managers of the case banking organization in Nigeria consider that globalization has proved to be advantageous for the Nigerian economy and its trade. These benefits are accrued in the form of foreign direct investments and export revenue expansion of the nation. However, the managers believed that the gross economic advantage experienced from globalism in Nigeria is less in comparison with that of several western developed countries. The research paper showed that trade liberalization accompanied with globalization has rendered many business firms of Nigeria economically vulnerable. It was also believed that globalization has restricted the Nigerian economy from diversifying. In the current research, the managers interviewed reckoned that globalization had adversely affected the social and cultural values of Nigeria and failed to establish a welfare maximizing free market economic system. As a result, though globalization has helped to improve employability, state of technology, management knowhow and financial base of Nigeria, in reality, it has also hampered the economy by exposing the firms therein to extensive international competition. Furthermore, social and cultural aspects of Nigeria are adversely affected under the influence of globalization. Therefore, problems associated with the phenomenon can only be eradicated by strategically utilizing the existing resource and managerial skills (Horwitz, et al., 2006). Reference List Ebrahimi, B. P., 2000. Perceived strategic uncertainty and environmental scanning behavior of Hong Kong Chinese executives. Journal of Business Research, 49(1), pp. 67-77. Gnyawali, D. and Fogel, D., 1994. Environments for entrepreneurship development: Key dimensions and research implications. Entrepreneurship, Theory and Practice, 18(4), pp. 43-62. Horwitz, F. M., Heng, C. T., Quazi, H.A., Nonkwelo, C. and Roditi, D., 2006. Human resource strategies for managing knowledge workers: an Afro-Asian comparative analysis. International Journal of Human Resource, 17(5), pp. 775-811. Kiggundu, M. N., Jorgensen, J.J. and Hafsi, T., 1983. Administrative theory and practice in developing countries: a synthesis. Administrative Science Quarterly, 28, pp. 66-84. Mamman, A. and Baydoun, N., 2009. Managerial perspective on the impact of globalization in African commercial bank implications for strategy implementation. International Journal of Organizational Analysis, 17(3), pp. 184-201. Bibliography Nieuwenhuizen, C., 2007. Business management for entrepreneurs. Landsdown: Juta and Company Ltd. Quazi, H. A., 2001. Sustainable development: Integrating environmental issues into strategic planning. Industrial Management & Data Systems, 101(2), pp. 64-70. Vaivio, J., 2008. Qualitative management accounting research: rationale, pitfalls and potential. Qualitative research in accounting and management, 5(8), pp. 239-46. Wong, P. K., Ho, Y. P. and Autio, E., 2005. Entrepreneurship, innovation and economic growth: from GM data. Small Business Economics, 24, pp. 335-350. Yanow, D. and Schwartz-Shea, P., 2006. Interpretation and method: Empirical research methods and the interpretive turn. New York: M.E. Sharpe. Read More