Factors Influencing the Adaptation and Acceptance of Japanese Management Practices in Thailand

312 Pages·2015·7.38 MB·English

Factors Influencing the Adaptation and
Acceptance of Japanese Management Practices
in Thailand
Tanachart Raoprasert
Bachelor of Business Administration
Master of Business Administration
A thesis submitted in partial fulfillment
of the requirements for the degree of
Doctor of Business Administration
Victoria Graduate School of Business
Faculty of Business and Law
Victoria University
Melbourne, Australia
2008
Statement of Declaration
I, Tanachart Raoprasert, declare that the DBA thesis entitled 'Factors Influencing the
Adaptation and Acceptance of Japanese Management Practices in Thailand' is no
more than 65,000 words in length including quotes and exclusive of tables, figures,
appendices, bibliography, references and foot notes. This thesis contains no material
that has been submitted previously, in whole or in part, for the award of any other
academic degree or diploma. Except where otherwise indicated, this thesis is my own
work.
Signature ..................................................................... Date \ 7 11012008
Acknowledgements
With the completion of this dissertation, there are several people to whom I owe a
great deal of thanks.
Firstly, I wish to acknowledge and thank my principal supervisor, Professor Sardar
Islam for his encouragement and support throughout much of my candidacy. His
guidance, assistance, patience and support over the long years of research work have
been very beneficial, especially during the frustrating times.
Sincere thanks go to my co-supervisor, Dr Rodney Leonard Turner for his time in
helping me pass through difficulties with specific statistics. His extensive assistance
with the AMOS program, and support and encouragement in my DBA program have
been very valuable.
Appreciation is due to both Professor Stephen Martin, and Dr Jane Menzies, my
former co-supervisors, for their assistance in the early stages of my DBA program.
I would like to thank Dr Yuka Fujimoto, Human Resources Management lecturer, Dr
Abdullahi Ahmed Research Econometrician, and Dr Shahril Baharim, Management
lecturer, for their insightful comments and suggestions on my thesis. I would also like
to express my gratitude to Dr Petre Santry, who assisted in proofreading the final draft
of my thesis.
Last but not least, I must sincerely thank to my sponsor, Mahasarakham University
for supporting me with the funds necessary to finish my study.
11
ABSTRACT
Cross-cultural aspects of management, especially international business management,
have been a topic of intense investigation in the contemporary management literature.
Consequently, given the higher presence of Japanese businesses in Thailand, a fertile
field in international management literature is the adaptation of Japanese management
practices in Thailand.
Prior empirical studies of Japanese management practices in Thailand have mainly
focused on Thai employees' perceptions of these practices and on how well they are
implemented, with very little research examining factors that influence the adaptation
and acceptance of Japanese management practices in Thailand. To fill this gap, this
study develops models that are helpful in examining factors that can be introduced by
Japanese organizations in Thailand to enable Thai subordinates to accept, and
Japanese managers to adapt, Japanese management practices to Thai culture.
It is contended that not adapting management practices decreases the motivation and
performance of Thai subordinates. It is therefore proposed that vision, leadership,
structure, resources support, rewards, and relationship factors, drawing upon
Weisbord's Six-Box diagnostic model, are effective factors that influence Thai
subordinates to implement Japanese management practices, and Japanese managers to
adapt these practices.
Structural equation modelling technique is used as the main research method for the
study. Based on the sample survey of Japanese managers and Thai subordinates, two
structural equation models were developed to find the relationships between
motivational factors and adaptation and acceptance of Japanese management
practices.
The study found that vision and relationship were the significant motivational factors
that influenced Japanese managers to adapt their management practices, as well as
reward and relationship were the significant motivational factors that influenced Thai
subordinates to accept and implement Japanese management practices. The findings
imply that for developing an efficient and effective Japanese management practices
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and systems in Thailand, Japanese managers will need a v1s10n and a good
relationship with local staffs, and some rewards and good relationships will motivate
Thai subordinates to accept and implement Japanese management practices. Good
relationships among Japanese managers and Thai subordinates appear to be very
important factor influencing the success of Japanese management practices in
Thailand.
IV
PUBLICATIONS ASSOCIATED WITH THIS
THESIS
Raoprasert, T & Islam,S. M. N. (Forthcoming) 'Structural Equation Modelling in
Business Management', in L Moutinho & G Hutcheson (eds), Dictionary on
quantitative methods in management, Sage Publications, United Kingdom.
Raoprasert, T & Turner, R 2008, 'Japanese Management practices in Thailand:
Models of Management Adaptation and Acceptance', paper presented to Pan
Pacific Conference, 6/4/2008, San Jose, Costa Rica.
Raoprasert, T & Zeidan, S 2007, 'Japanese Management Practices: The Need for
Adaptive Management', paper presented to Australia and New Zealand
Academy of Management, 7/12/2007, Sydney.
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Table of Contents
Chapter I Introduction .................................................................................................. I
I. I Background of the study: Cross-cultural international business management ... 1
I .2 Contribution to knowledge ................................................................................... 3
1.3 Statement of significance ..................................................................................... 4
I .4 Scope of the study ................................................................................................ 4
1.5 Aim of the study ................................................................................................... 5
1.5.1 Specific aims ................................................................................................. 5
1.6 Research questions and hypotheses ..................................................................... 5
1. 7 Methodology ........................................................................................................ 7
1.8 Structure of the thesis ........................................................................................... 8
1.9 Summary ............................................................................................................ 10
Chapter 2 Literature review ........................................................................................ 11
2.1 Introduction ........................................................................................................ 11
PARTl ......................................................................................... 12
2.2 Efficient management ........................................................................................ 12
2.3 Efficient cross-cultural business management practices: need and principles ... 13
2.4 Japanese management practices ......................................................................... 14
2.5 Thai management style ...................................................................................... 22
2.6 Possibility of applying Japanese management practices in Thailand ................ 24
2.7 Japanese management practices in other countries ............................................ 28
2.8 Normative management practices of Japanese in Thailand ............................... 29
2.9 Possibility of Thai subordinates' performance after modifying Japanese
management practice ........................................................................................ 30
2. I 0 Reasons for adaptation ..................................................................................... 3 I
PART2 ......................................................................................... 34
2.11 Change management ........................................................................................ 34
2.11.1 Resistance to change ................................................................................. 35
2.12 Why people work or do not work in organizations .......................................... 36
2.12.1 Economic models of organizational behaviour ......................................... 36
2.12.2 Social models of behaviour ....................................................................... 37
2.12.3 The theory of reasoned action ................................................................... 37
2.13 The role of work motivation in organizations .................................................. 39
2.14 Conceptualization of the need to change ........................................................ .44
2. I 5 The factors for changes ................................................................................... .46
2.16 Limitations ofWeisbord's six-box model.. ...................................................... 61
2.17 Limitations of the literature .............................................................................. 62
2.18 Summary .......................................................................................................... 62
Chapter 3 Theoretical framework ............................................................................... 63
3.1 Introduction ........................................................................................................ 63
3.2 Theoretical background: An efficient management system ............................... 64
3.3 Theoretical framework ....................................................................................... 65
3.4 Hypotheses development ................................................................................... 68
3.4.1 Vision .......................................................................................................... 68
3.4.2 Leadership ................................................................................................... 69
3.4.3 Structure ...................................................................................................... 71
VI
3.4.4 Reward ........................................................................................................ 72
3.4.5 Relationship ................................................................................................. 73
3.4.6 Resources support ....................................................................................... 74
3.4.7 Acceptance and adaptation .......................................................................... 75
3.5 Summary ............................................................................................................ 76
Chapter 4 Methodology, research process, and computer programs .........................7 8
4.1 Introduction ........................................................................................................ 78
4.2 Research process-design and methodology ....................................................... 79
4.3 Literature search ................................................................................................. 80
4.4 Research design ..................................................................................................8 0
4.4.1 Quantitative research ................................................................................... 80
4.4.2 Survey methodology ................................................................................... 82
4.4.3 Cross-sectional survey research .................................................................. 83
4.4.4 Mailing questionnaire survey ...................................................................... 83
4.4.5 Unit of analysis ........................................................................................... 85
4.5 Questionnaire development ................................................................................8 5
4.5.1 Scaling decision .......................................................................................... 86
4.5.2 Item adoption ..............................................................................................8 8
4.5.3 Pre-test. ........................................................................................................ 93
4.5.4 Reliability ....................................................................................................9 5
4.5.5 Validity ........................................................................................................ 96
4.6 Population, sampling size, and procedures ..................................................... .! 01
4.6.1 Population ................................................................................................. 102
4.6.2 Sampling design ........................................................................................ 102
4.6.3 Data collection procedures ........................................................................ 103
4.6.4 Data preparation prior to analysis ............................................................. ! 04
4.6.5 Test of normality ....................................................................................... 104
4. 7 Data analysis .................................................................................................... 105
4.7.1 Descriptive analysis .................................................................................. 106
4.7.2 Introduction to structural equation modelling: Methods, computerized
methods, and computer program .............................................................. 106
4.8 Ethical considerations ...................................................................................... 114
4.9 Summary .......................................................................................................... 115
Chapter S Preliminary data analysis and results: Descriptive statistics and reliability
tests ........................................................................................................... 117
5.1 Introduction ...................................................................................................... 117
5.2 Descriptive statistics ......................................................................................... 117
5.2.1 Response rate ............................................................................................ 118
5.2.2 Demographic characteristics ..................................................................... 119
5.3 Reliability and validity ..................................................................................... 129
5.4 Normality ......................................................................................................... 133
5.5 Summary .......................................................................................................... 136
Chapter 6 Structural equation modelling: Results and analysis ............................... 13 7
6.1 Introduction ...................................................................................................... 13 7
6.2 Assessing goodness offit ................................................................................. 139
6.3 Confirmation ofhypothesized latent constructs ............................................... 143
6.3 .1 Confirmation of the vision-Thai construct ................................................ 144
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6.3.2 Confirmation of the vision-Japanese construct ......................................... 145
6.3.3 Confirmation of the leadership-Thai construct ........................................ .146
6.3.4 Confirmation of the leadership-Japanese construct .................................. 148
6.3.5 Confirmation of the resources support-Thai construct .............................. 149
6.3.6 Confirmation of the resources support-Japanese construct ....................... 151
6.3. 7 Confirmation of the structure-Thai construct.. .......................................... 152
6.3 .8 Confirmation of the structure-Japanese construct.. ................................... 154
6.3 .9 Confirmation of the reward-Thai construct.. ............................................. 155
6.3. I 0 Confirmation of the reward-Japanese construct.. .................................... 156
6.3 .11 Confirmation of the relationship-Thai construct.. .................................. .158
6.3 .12 Confirmation of the relationship-Japanese construct .............................. 159
6.3.13 Confirmation of the acceptance construct.. ............................................. 161
6.3 .14 Confirmation of the adaptation construct.. .............................................. 162
6.4 Structural models: Development empirical analysis of the model of Japanese
management acceptance and adaptation ........................................................ 163
6.5 Composite factor model ................................................................................... 166
6.6 Development of the Japanese management acceptance model.. ...................... 168
6.7 Development of the Japanese management adaptation model.. ....................... 174
6.8 Summary .......................................................................................................... 180
Chapter 7 Discussion and implications .................................................................... 181
7 .1 Introduction ...................................................................................................... 181
7.2 Descriptive statistic results ............................................................................... 182
7 .3 Hypotheses testing ........................................................................................... 183
7.3.1 Hypothesis HlA-H7A ............................................................................... 183
7.3.2 Hypothesis H1B-H7B ............................................................................... 185
7.4 Implications for theory and practice ................................................................ 190
7.5 Towards an efficient cross-cultural and international business management
practices .......................................................................................................... 194
7.6 Findings and supports from pervious studies ................................................... 195
7.7 Summary .......................................................................................................... 196
Chapter 8 Summary, findings, and conclusion .................... :. ................................... 198
8.1 Introduction ...................................................................................................... 198
8.2 Research design ................................................................................................ 198
8.3 Results and implications .................................................................................. 200
8.4 Potential uses for the models ............................................................................ 200
8.5 Limitations of the research ............................................................................... 201
8.6 Recommendations for further research ............................................................ 202
8. 7 Concluding remarks ......................................................................................... 202
References ...................................................................................... 204
Appendix 1 Descriptive statistic results of Japanese expatriates ........................ 233
Appendix 2 Descriptive statistic results of Thai employees ............................. 263
Appendix 3 Questionnaires for Japanese managers and Thai subordinates ............ 293
Appendix 4 Information for participants in the adaptation of Japanese management
practices survey ................................................................................ 299
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List of Figures
Figure 1.1: Structure of the thesis .................................................................................. 8
Figure 2.1: Model of the theory of reasoned action ..................................................... 38
Figure 3.1: Japanese management practices in Thailand: Development of good
management practices .................................................................................................. 66
Figure 3.2: Model of motivational factors influencing Japanese managers ................. 67
Figure 3 .3: Model of motivational factors influencing Thai subordinates ................... 67
Figure 4.2: Representing casual relationship through path diagrams ........................ 109
Figure 4.3: Translation of path diagrams into structural equation ............................. 109
Figure 6.1: Congeneric model of vision-Thai ............................................................ 144
Figure 6.2: Congeneric model of vision-Japanese ..................................................... 145
Figure 6.3: Congeneric model ofleadership-Thai ..................................................... 147
Figure 6.4: Congeneric model of leadership-Japanese .............................................. 148
Figure 6.5: Congeneric model of resources support-Thai .......................................... 150
Figure 6.6: Congeneric model of resources support-Japanese ................................... 151
Figure 6.7: Congeneric model of structure-Thai ........................................................ 153
Figure 6. 8: Congeneric model of structure-Japanese ................................................. 154
Figure 6.9: Congeneric model of reward-Thai ........................................................... 155
Figure 6.10: Congeneric model ofreward-Japanese .................................................. 157
Figure 6.11: Congeneric model of relationship-Thai ................................................. 158
Figure 6.12: Congeneric model of relationship-Japanese .......................................... 160
Figure 6.13: Congeneric model of acceptance ........................................................... 161
Figure 6.14: Congeneric model of adaptation ............................................................ 162
Figure 6.15: Proposed model of Japanese management acceptance .......................... 165
Figure 6.16: Proposed model of Japanese management adaptation ........................... 166
Figure 6.17: Composite model of Japanese management acceptance ....................... 168
Figure 6.18: Model of Japanese management acceptance ......................................... 168
Figure 6.19: Re-specified model of Japanese management acceptance ..................... 169
Figure 6.20: Final model of Japanese management acceptance ................................ 170
Figure 6.21: Translation of model of Japanese management acceptance into structural
equation ...................................................................................................................... 17 3
Figure 6.22: Composite model of Japanese management adaptation ........................ 174
Figure 6.23: Model of Japanese management adaptation .......................................... 174
Figure 6.24: Re-specified model of Japanese management adaptation ..................... 175
Figure 6.25: Final model of Japanese management adaptation ................................. 176
Figure 6.26: Translation of model of Japanese management adaptation into structural
equation ...................................................................................................................... 17 9
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