Contingency approach
There is not 1 right/best way of managing, but it depends on number of factors on the environment of organizations or other contingency factors.
Contingency factor
A circumstance or condition that may or may not apply for some organization
Two strategies for dealing with contingency factors in empirical research
- inclusion of control variables 2. matching of samples
Globalization
A qualitative shift towards a global economic system not based on national economies but on a global marketplace.
5 Forces PROMOTING globalization
- Decrease of transportation costs
- Decrease of communication costs
- Integration international financial markets
- Mass media, social media
- International migration
5 Forces IMPEDING globalization
- Economic factors (Lower company profits outside home market)
- Social (Unbalanced distribution of benefits)
- Cultural
- Political (= the trilemma of globalization, sovereignty and democracy)
- Technological (e.g. AI)
4 possible scenarios for (further) globalization
- Convergence (countries adapt to a global norm)
- Specialization (economies will specialize in where they have comparative advantage)
- Incremental adaption (tendency to evolve in direction of most effective system)
- Hybridization (Parts of economy/society become part of the global system)
“The world is flat”
It doesn’t matter where in the world you are, the means of communication and transportation are such that at any point in the globe you can access the rest of the world.
The issue of “cultural approbation”
It is bad to take over other cultures
Example of parts that remain unaffected by global systems
- Healthcare
- Education
- Personal services
- Construction
These factors are not mobile and organized on the national scale
