Business Impact covers the big challenges facing global management education as the world asks more of its future business leaders.
THE MAGAZINE OF THE BUSINESS GRADUATES ASSOCIATION (BGA) | LEADERS NEVER STOP LEARNING | ISSUE 2 2023 VOLUME 16
WHO CAN YOU TRUST? THE NEED FOR GREATER AWARENESS OF HOW THE CONCEPT DIFFERS ACROSS CULTURES
PLUS: • THE CASE FOR PSYCHOLOGY'S INCLUSION IN MANAGEMENT
• WHY PARTNERSHIPS ARE PARAMOUNT: BGA BERLIN WORKSHOP HIGHLIGHTS
BUSINESS SCHOOL PROFESSIONALS CONFERENCE AMBA & BGA 3-4 July 2023
Driving innovation in edtech and programme design We have chosen the historic city of Edinburgh for the return of our Business School Professionals Conference, which will take place from Monday 3 to Tuesday 4 July 2023. Over two days, business school professionals will come together to take advantage of extensive professional development and networking opportunities. Learn more about the event and book your place at: www.associationofmbas.com/bspc
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BGA | BUSINESS IMPACT
Trust the process Managers must have greater
awareness of how the concept of trust differs across cultures, explains University of Law Business School senior lecturer Richard Galletly
Mind over matter To curb the damage caused by psychological problems in the workplace, the next generation of managers should be educated and trained in applied psychology
Perfect partners How business schools can find the right type of partnerships. Highlights from BGA’s capacity- building workshop in Berlin
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CONTENTS Issue 2 2023 Volume 16
04 Editor's letter Connecting the dots 07 Guest column Equitable recruiting with AI 08 Business briefing A new series rounding up the latest news, initiatives and research from across BGA’s network worldwide, with six business schools in six different countries featured in this first instalment
12 Cover story: Trust the process A look at what leaders can gain from acquiring a greater awareness of how the concept of trust differs across cultures 18 Perfect partners How business schools can find the right type of partnerships for their individual circumstances. Highlights from BGA’s European capacity-building workshop in Berlin, with insights from schools in the Netherlands, France, Germany and the UK
22 Mind over matter
34 Spotlight on schools
Psychological problems in the workplace are hugely damaging for organisations, as Made in Czechoslovakia’s Daniel Tuma explains as he makes the case for better managerial training in applied psychology 28 0 Beyond borders Advances in hybrid technology means schools are no longer limited in their reach – an AMBA & BGA roundtable on the shift towards ‘borderless’ education
The Faculty of Economics at the University of Coimbra features in the first of a new series highlighting recent additions to the BGA network 36 Web hub highlights The latest analysis and thought leadership available online 38 From the CEO Reflections from the recent AMBA & BGA roadshow in India
BGA | BUSINESS IMPACT
EDITOR’S LETTER
EDITORIAL
Business and Innovation. “The idea is that private colleges or universities can create their own institution in someone else’s institution through a partnership,” he explained. One important aspect of partnership and relationship building is trust and this is the subject of our cover feature on page 12. In it, University of Law Business School senior lecturer Richard Galletly explains why leaders need to become more aware of the way the concept of trust differs across cultures. “Trust is essential for cross-cultural strategic collaborations, relationships and partnerships, but this does not mean that we should ‘trust all’ without considering the cultural angle,” he writes. Elsewhere, we introduce two new regular features to the pages of Business Impact that are designed to highlight the growing strength and diversity of the BGA network. Business Briefing (page eight) showcases a selection of news and research from individual business school members in six different countries in this first iteration. Spotlight on Schools (page 34), meanwhile, looks at the history and programme portfolio of recent additions to the network – in this case, the Faculty of Economics at the University of Coimbra – and finds out what joining BGA has meant to them. We hope you’ll find the magazine both enjoyable and informative. Tim Banerjee Dhoul, Editor, Business Impact
Content editor Tim Banerjee Dhoul t.dhoul@amba-bga.com Head of editorial Colette Doyle c.doyle@amba-bga.com Art editor Yvette Beattie Sub-editor Heather Ford Insight, content & PR manager Ellen Buchan e.buchan@amba-bga.com C orporate Membership director Victor Hedenberg v.hedenberg@amba-bga.com BGA membership & account manager Ben Maheson b.maheson@amba-bga.com Senior marketing executive, BGA Shareen Pennington s.pennington@amba-bga.com Head of commercial relations Max Braithwaite m.braithwaite@amba-bga.com Head of marketing and communications Leonora Clement l.clement@amba-bga.com Finance and commercial director Catherine Walker Director of accreditation and director of BGA services Mark Stoddard Chief executive officer Andrew Main Wilson Executive assistant to the CEO Amy Youngs a.youngs@amba-bga.com General enquiries info@businessgraduates association.com
Connecting the dots
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The strength of a network rests largely on the quality of interaction between its members. So, it’s with great pleasure that I was able to witness first-hand the rapport established by those in attendance at BGA’s recent capacity-building workshop in Berlin. The theme for the workshop centred on network building, with ideas and experiences shared across the topics of international partnerships and collaborations. “Many of the beautiful universities I visit have an international office – at the end of the hall, with one person struggling,” vice- president of Collège de Paris Guillaume Finck said at the event. Finck was underlining
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“Trust is essential for cross-cultural strategic collaborations”
how the formation of effective international partnerships needs to be backed up by resources and a key place in an institution’s overall strategy. A number of ideas and examples for widening an institution’s reach through international partnerships were put forward at the workshop. These included the ‘campus within a campus’ model outlined by Sagi Hartov, CEO for Germany at Global University Systems and co-founder and executive president of Berlin School of
Copyright 2023 by The Association of MBAs and Business Graduates Association. All rights reserved. Material may not be reproduced without the permission of the publisher. While we take care to ensure that editorial is independent, accurate, objective and relevant for our readers, BGA accepts no responsibility for reader dissatisfaction rising from the content of this publication. The opinions expressed and advice given are the views of individual commentators and do not necessarily represent the views of BGA. Whenever an article in this publication is placed with the financial support of an advertiser, partner or sponsor, it will be marked as such. BGA makes every opportunity to credit photographers but we cannot guarantee every published use of an image will have the contributor’s name. If you believe we have omitted a credit for your image, please email the editor.
ACHIEVE AMBA & BGA JOINT ACCREDITATION FOR YOUR BUSINESS SCHOOL
AMBA & BGA joint accreditation emphasises the importance of an institution’s overall impact and value creation for students, employers and communities, with a focus on responsible management, while maintaining the same level of rigour found in AMBA’s accreditation of postgraduate business programmes. Achievement of joint accreditation allows your business school to demonstrate the quality of its MBA, as well as responsible management practices and positive impact on stakeholders
Undergoing a joint accreditation means that your institution requires only one visit of highly experienced assessors. This combines the necessary documentation from the two accreditations, reducing the amount of administrative work and tasks required to achieve two internationally recognised business school accreditations
EXPLORE AMBA & BGA JOINT ACCREDITATION FOR YOUR BUSINESS SCHOOL AT: www.businessgraduatesassociation.com/AMBA-BGA-Accreditation
RESEARCH AND INSIGHT: STAY AHEAD OF THE TRENDS IN BUSINESS EDUCATION
Over the past two years, AMBA & BGA’s Research and Insight Centre has produced a wealth of groundbreaking new research and compiled reports citing views from business school thinkers, practitioners, faculty and leaders across the globe on the issues that matter most in management education. Recent AMBA & BGA research has investigated business schools’ attitudes to poverty, rankings, climate change and education technology. We have analysed career trajectories, graduate success in the new normal, application and enrolment figures across a spectrum of programmes, as well as employer and student perceptions of lifelong learning.
We also seek to collaborate with business schools and corporate partners in order to further enhance AMBA & BGA’s research offering.
If you are interested in partnering on research, joining one of our roundtables or focus groups to delve into the findings, or even sharing your thoughts on what topics you would like AMBA & BGA to explore, then please contact research@associationofmbas.com
BGA | BUSINESS IMPACT
GUEST COLUMN
Equitable recruiting
T alent intelligence platforms use a form of artificial intelligence (AI) called ‘deep learning’ to leverage internal and external datasets and optimise talent decisions. Talent intelligence self-learns until it fully understands the availability, maturity, relevance, learnability and evolution of skills within specific organisations and the larger market. As such, it has the power to break us out of our siloed systems and closed, limited thinking and can help organisations achieve their diversity, equity and inclusion (DEI) objectives. Here’s how: CAPABILITY MATCHING Talent intelligence can help you create candidate lists without reference to factors like age, gender, ethnicity, veteran status and disability status. It can therefore ensure organisations go beyond hiring quotas with capability matching that removes any potential biasing factors. CANDIDATE FOCUS Talent intelligence insights can help organisations reconfigure their career sites to focus on candidate needs. In a candidate-focused career site, available jobs are ranked for an individual candidate so they can see exactly where and why they are a match. This reduces self-selection bias caused by candidates’ varying degrees of risk tolerance. CANDIDATE MASKING The interview process is naturally prone to bias. Recruiters and hiring managers see a candidate’s personal characteristics, such as
their perceived gender, ethnicity, age and educational credentials. They then make selection decisions based on these factors rather than on each person’s potential to succeed. The result is reduced diversity. Candidate masking at the initial stages of hiring removes all potential pieces of bias from applications so only objective data points remain. BIAS-FREE ALGORITHMS Equal opportunity algorithms can identify unwanted trends in source data to deliver less biased predictions. Here’s an example: if most scientists in a company are men, and most of the applications are from men, being a man still does not automatically make someone a better scientist. Equal opportunity algorithms ensure that candidate recommendations do not consider gender as a qualification. DEI ANALYTICS DEI analytics programmes find biases in hiring and measure the impact of equity policies. These programmes show the hiring funnel for each stage and for each diversity category, detecting statistically significant biases. Suppose, for example, that 10 per cent of all applicants are members of an under‑represented group. This suggests that approximately 10 per cent of all hires should also be members of this group. If, instead, nine per cent of hires are members of this group, that might be due to chance. However, if it’s only five per cent, there may be a problem – and this is what DEI analytics can flag.
It’s then up to you to investigate where and why this discrepancy is occurring. It may be that there is a step in the hiring process that turns away a specific group of candidates but, unfortunately, in many cases, the cause is a person making biased decisions. ONE FINAL NOTE Placing a talent intelligence platform behind your talent management services will create an inclusive basis for those services. This is important because, with a skills-based approach to talent management, the standard for career advancement becomes what each employee can do, not who they are. It’s also important to create a transparent career experience where every employee finds the available options, knows that the same options are available to others and sees how the organisation will make decisions. When employees can understand how a decision, such as a promotion, is made, they gain confidence in the process. Additionally, when a platform is equally accessible to all employees, those with social advantages can’t work around it. Mentors can’t choose who to coach based on their biases. Important projects can’t be staffed at happy hour or by people in the office versus those who work remotely. That’s when your DEI aspirations really start to take hold from within.
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Alexandra Levit is a workforce consultant, futurist and the co-author of Deep talent (Kogan Page, 2023)
community.mbaworld.com
BGA | BUSINESS IMPACT
The latest news from across BGA’s network BUSINESS BRIEFING
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Tim Banerjee Dhoul and Ellen Buchan present a new series rounding up recent research and initiatives from members of the BGA network worldwide. This edition includes findings on social mobility from Chile and case study news from the Netherlands
BGA | BUSINESS IMPACT
NEWS AND INSIGHT
REGIONAL VARIATIONS IN SOCIAL MOBILITY Country: Chile School: Faculty of Economics and Business, University of Chile Social mobility between generations can be high in Chile, but only if you live in the right region. This is the suggestion of a new study from researchers at the University of Chile’s Faculty of Economics and Business. In the northern region of Antofagasta (home to the port city of the same name), a child born to parents in the bottom quintile for national income distribution had a 30 per cent probability of belonging to the top quintile as an adult. However, a child born to parents in the bottom quintile for national income distribution from the southern region of La Araucanía – home to the city of Temuco and the heartland of Chile’s indigenous Mapuche people – had only an eight per cent chance of reaching the top quintile as an adult. In addition, the probability of them remaining in the bottom quintile was 33 per cent – 20 percentage points higher than the equivalent figure for those in the region of Antofagasta. The rich are also more likely to remain rich in some areas. The probability that a child will be in the richest quintile as an adult when born to parents in the richest quintile is, according to the study, as high as 45 per cent in the Antofagasta region, and 39 per cent in Chile’s Metropolitan region, home to the capital, Santiago. Authors Pablo Gutiérrez Cubillos and Juan Díaz Maureira say Chile is an interesting case study for intergenerational mobility because it has achieved significant development on GDP per capita over the past three decades yet continues to display hugely unequal income distribution, as reflected by its Gini coefficient. “Progress at the national level hides a notable geographic variation in the degrees of economic success achieved, where some regions of the country have attained remarkable upwards economic mobility while others have experienced relevant persistence through circles of poverty and circles of privilege,” Gutiérrez and Díaz explained. So, why the differences? The study suggests that positive effects of mining on related sectors’ subsequent growth could be helping mobility in the north, while the south suffers from having the country’s lowest average labour income and being the poorest region overall. The study recommends addressing this with decentralisation policies that develop local government’s ability to improve regional public services and amenities. It also suggests tax reform to ensure public spending is concentrated in regions with less social mobility and is invested in the development of children. TBD
CASE STUDIES WITH WIDESPREAD IMPACT COUNTRY: Netherlands SCHOOL: Rotterdam School of Management, Erasmus University (RSM) Case studies developed by the Case Development Centre (CDC) at Rotterdam School of Management (RSM) were among the most used cases in 2022, according to new figures from one of the world’s largest and most diverse repositories of management cases, articles and book chapters. Two RSM cases were among the 10 most popular free cases at the Case Centre, while a further case made the top 15 in its entrepreneurship category. Sustainability and social impact are a recurrent theme in all three of the cases recognised – a fact that highlights RSM’s commitment to these issues, according to the school. Director of the CDC at RSM Bas Koene also pointed to the value its cases bring to the industry. “Being at the top of this ranking proves yet again that RSM cases are appreciated and well used by teachers and lecturers around the world,” he said. One of the two free cases listed is entitled Interface: creating a climate fit for life through carpet tiles . Steve Kennedy, associate professor in RSM’s Department of Business-Society Management and the case’s co-author, expressed his belief that it “enables students to dive into corporate strategy for net positive climate action.” With reference to all three cases, Kennedy added: “Climate change strategy is itself highly detailed and requires close attention which these cases help to provide.” The other free case is entitled Flying parts: best practices in organisational innovation following implementation of new technologies . It aims to show how technological innovation can impact job quality and underlines the need for supporting organisational innovation. RSM’s collection of free business cases is available through the Case Centre’s platform. It includes cases about the UN’s Sustainable Development Goals (SDGs) and the adoption of innovative business models. Managing editor at RSM’s CDC Tao Yue said: “We carefully select our free cases to make them open access and they all deal with topics about sustainability or social impact.” EB
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BGA | BUSINESS IMPACT
SUSTAINABLE WATER TRAVEL
WIDENS ACCESSIBILITY COUNTRY: Germany SCHOOL: Gisma Business School
The use of environmentally friendly ferries would widen accessibility and diversify commuters’ options in Berlin and Potsdam, according to the results of a new student project led by Gisma Business School. However, journey-time savings for water travel remain a challenge. The project has been looking specifically at linking Berlin’s southwestern suburb of Wannsee with Jungfernsee in Potsdam by solar-powered ferry. As well as being home to Gisma’s Potsdam campus, Jungfernsee is also the location of a global innovation centre belonging to German software multinational SAP. As such, a key element of the project is how public transport can better serve an increased volume of people requiring access to the Jungfernsee area. “The first study [in the project] has shown that the accessibility of the Jungfernsee campus could be improved and diversified through the establishment of new passenger ferry connections,” said Peter Konhäusner, who is heading up the project for Gisma and is professor for digital entrepreneurship at the school. A prototype of the ferry has already been developed. This allows up to 35 passengers to travel across the route in just 10 minutes – faster than existing public transportation routes. Yet, competing with car travel on journey time remains a challenge. “The study also comes to the conclusion that many of the conceivable low-speed ferry connections will, in all probability, not be associated with significant travel time savings,” added Konhäusner. The recommendation is that the project’s first study is extended. The project, launched in October 2022, is a collaboration between Gisma, SRH Berlin University of Applied Sciences and real estate company Engel & Völkers. It has therefore allowed students from both Gisma and SRH Berlin to come together and work in groups on the project’s goals, as well as to network. TBD
RECOMMENDATIONS FOR ADVANCING EQUALITY COUNTRY: Finland SCHOOL: Hanken School of Economics Better recruitment processes are one of a number of recommendations for boosting the number of women on boards made in new research from Hanken School of Economics assistant professor Emilia Vähämaa, together with professor Kim Ittonen and assistant professor Jesper Haga. The research argues for the implementation of new systematic recruitment processes that define the kind of skills that are needed by the candidate and the way these skills are evaluated. The metals and forest industries, Vähämaa explained, are examples of “male-dominated industries where the majority of those in management are men. It has proven difficult to create more equality with only self-regulation and own choices.” Self-regulation is set to end by 2026 when a new EU directive of having women represent at least one third of all listed board members comes into effect. While quotas can often be a divisive subject, the researchers believe Finland should implement this quota sooner. “No one thinks that quotas are optimal, but many see it as necessary to achieve change,” Vähämaa said. Barriers to equality identified in the report include women being more risk averse and more critical of their skills, as well as having greater responsibility at home. It also suggested that women may lack motivation to go into careers that are known to pay men more than women for the same job. As is frequently the case, mentoring is put forward by the report as a good way to support career planning. In addition, it underlines the value of female professionals actively promoting their knowledge. While there is still a long way to go, Vähämaa remains optimistic about the progress made towards gender equality: “Attitudes and values in society mean that companies have increasingly begun to pay attention to the role of women in management. Companies are more aware of all the benefits that diversity creates.” EB
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NEWS AND INSIGHT
CAN CHILDREN’S LITERATURE CREATE RESPONSIBLE CITIZENS? COUNTRY: Norway SCHOOL: University of Agder Classic children’s stories such as the Aesop fable The tortoise and the hare are often laced with lessons or hidden morals. Could they encourage kids to be kind to the environment? Berit Huntebrinker, a researcher at the University of Agder recently completed a thesis on how four picture books for children and three comics portray humans’ relationship with nature. All the books and comics were created by Norwegian authors and illustrators and were published between 1974 and 2019. Huntebrinker noted that while some of the texts were directly educational, others left room for a conclusion to be sought by the reader. One key theme to emerge from the majority of the books and comics examined was that the main character had to take responsibility for nature but had free will to choose how they wanted to solve any issues. The onus was on individual responsibility rather than collective responsibility. This focus on individual responsibility did not surprise Huntebrinker. “Children’s books and popular literature are often simplified presentations and the individual is often the focus in popular literature,” she explained. However, Det blå folket og karamell-fabrikken (1974), written by Tor Åge Bringsværd and illustrated by Thore Hansen, was found to have a greater emphasis on collective responsibility. The reason identified for this is that the book’s creators were critical of the political and social conditions in Norway at the time and were therefore interested in promoting a collective conscious. “A nuanced reading is fruitful and necessary to fully appreciate the complexity of children’s literature, also when it comes to the presentation of different views about our responsibility for nature,” argued Huntebrinker. The researcher’s conclusion is that while children’s authors agree that the way we behave towards nature needs to change, they do not agree on what those behaviours should be – a conundrum that has great applicability in the world of business and management. EB
LIFELONG LEARNING INITIATIVE URGES GRADUATES TO REACH FOR THE MOON COUNTRY: Mexico SCHOOL: Egade Business School, Tecnológico de Monterrey ‘Moonshot thinking’ was the focus of Egade Business School’s latest lifelong learning programme for alumni, held at the end of March. The moonshot mental model was showcased as a useful approach to thriving in disruption and implementing organisational transformation. It is about trying to make what seems impossible possible, most commonly by attacking big problems with radical thinking (ie thinking that reaches for the moon) with the use of disruptive technology. Speaking ahead of the programme, Alfonso Ávila, innovation and entrepreneurship professor at Egade said: “Viewing disruption as an opportunity rather than a threat will be the mindset after this journey.” The journey Ávila describes is a week-long lifelong learning initiative at the school, known as Egade U Week, of which he is also academic director. Specifically targeting its alumni community, it is designed to provide intensive learning that updates graduates’ knowledge and skills through conferences, workshops and panels, as well as by providing spaces for dialogue and the sharing of opinions and ideas. Speakers during Egade U Week included Esade Business School’s chief innovation officer Iván Bofarull, who is the author of the 2020 book Moonshot thinking , and Fernando González Olivieri, an alumnus of Egade and the CEO of Mexican multinational CEMEX. Also featured were Egade dean Horacio Arredondo and Inés Sáenz, vice-president of inclusion, social impact and sustainability at the wider Tecnológico de Monterrey. Director of alumni relations at Egade María Livas said that moonshot thinking “can serve as a tool to help companies avoid disruption and emerge with enhanced strength”. Offered exclusively to its alumni community, or ‘Exatec Egade’ as the school terms its graduates, Egade U Week is now in its fourth year. Last year’s programme focused on digital transformation with headline speakers from TikTok and Amazon Web Services. TBD
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BGA | BUSINESS IMPACT
CULTURAL DIFFERENCES
the Trust process
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Managers can be misled by having a single cultural perspective on trust; they need to become more aware of how the concept of trust differs across cultures. That way they will gain a valuable insight into how to deal with such differences, as University of Law Business School senior lecturer Richard Galletly explains
BGA | BUSINESS IMPACT
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n 1986, when Ronald Reagan was preparing for nuclear treaty negotiations with then-Russian president Mikhail Gorbachev, his adviser suggested that Reagan ought to learn a few Russian proverbs. According to
Trusting relationships at work lead to the tendency to help others, enhanced job satisfaction and personal motivation, greater commitment and productivity, argues Namporn Thanetsunthorn in a paper entitled The impact of national culture on corporate social responsibility . This workplace trust then relates to the success and competitiveness of an organisation; see The influence of trust on the trilogy of knowledge creation, sharing and transfer , compiled by Dolores Sanchez Bengoa and Hans Ruediger Kaufmann. Moreover, trust fosters co-operation and teamwork, reduces unnecessary bureaucratic control and administrative costs. Trust is essential for efficient communication and sharing of knowledge. It is through trusting relationships that we improve our creativity at work. In this way, an organisation with high trust between its employees develops a competitive advantage, leading to enhanced organisational performance, say Roy J Lewicki, Daniel J McAllister and Robert J Bies in Trust and distrust: new relationships and realities . However, the many benefits of trusting relationships at work do not mean we should drop our guard completely and decide to trust others without first auditing the personal and professional risks of doing so. When we trust other people, we take a gamble. We need trusting relationships to function in our daily lives and, to some extent, our social order and social capital depends on trusting others. This does not imply that we should put ourselves at risk since, when our trust is misplaced or abused, the costs can be very high. That said, we decide to take risks daily when we trust others and perhaps it would be more prudent to always perform some sort of risk assessment. When we trust another person, we are willing to become vulnerable because of that decision (Roderick M Kramer, Trust and distrust in organizations ). For this reason, we must always be careful with our assessments of trustworthiness. This argument could be summarised thus: “Only decide to trust others with your eyes open.” A pragmatic approach might be to always verify that we place our trust in the right people. Complexities of the concept Twitter’s ‘blue tick’ system, for example, has been an attempt to implement a verification process that can counter bots and trolls. Twitter initially began verifying accounts in 2009 to differentiate between real people and fake accounts, since famous people including the likes of Donald Trump were being impersonated – the reason Trump himself uses the handle @realDonaldTrump. Without such a verification process, it is argued, we cannot be certain that Twitter accounts are genuine.
The Washington Post , the phrase he liked best was “trust, but verify”, something that he was fond of repeating in further meetings with Gorbachev. The phrase entered the political lexicon to such an extent that Barack Obama also used it to explain his stance when facing Vladimir Putin in 2009. It continues to be in use to this day; then‑US secretary of state Mike Pompeo adapted it to “distrust and verify” when dealing with the Chinese Communist Party. As managers, we make judgements about trust and the trustworthiness of others all the time. Trust judgements come in a variety of different forms. For example, we place our trust in legal agreements, in the members of our team and the people we meet. In the workplace, we place our trust in the interpersonal relationships that we develop with other people in our organisation. Sometimes this trust is earned by the behaviours of others, while sometimes we take a risk and follow our gut instincts about a person. Whether we trust someone also depends very much on the context, since our attitudes towards another person may differ according to where we meet them, be that in the office or in a darkened alley. We may assume that trust is linear, being either trust or distrust, but some have argued that the construct is more complex. For example, trust judgements may be influenced by the culture to which we belong. According to Helen Altman Klein, emeritus professor of psychology at Wright State University, the way we assess the trustworthiness of others is affected by our cultural background. These complexities must be addressed both cautiously and responsibly. In our professional lives, we may be misled by a narrow perspective on trustworthiness, expecting people from other cultures to have the same trust concept. For example, my personal expectations about trustworthiness were developed in the UK and I recognise that my students, being multicultural, will have different perspectives. But what do we mean by ‘trust,’ and why should trust be of interest to graduates, managers and business school practitioners? Workplace benefits The benefits of trust in the workplace are well documented and trust has been described as the social glue that holds relationships together.
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CULTURAL DIFFERENCES
In the real world, we also usually conduct some form of verification process before deciding to trust someone. Trust is complex and we must not be naïve about our reasons. A person may be perceived to be trustworthy, but it takes a further cognitive ‘leap’ to decide to trust them. When we take a leap, we also take a risk. A ‘leap of faith’ is a decision based on emotional and irrational foundations. This leap of faith is taken when we want to believe that another person is telling the truth, even when the evidence shows otherwise (see Trust as a social reality by J David Lewis and Andrew Weigert). When we allow ourselves to become vulnerable to another person based on little more than a gut feeling, this can have quite serious impacts on us both personally and professionally. The emotional side of the trust equation must not be ignored, however, and decisions about trustworthiness can be based on relationships, such as those within families. We generally experience stronger and more enduring trust in families than at work, since workplace relationships are considered more unstable and short term than family relationships. According to Catherine T Kwantes, co-editor of Trust and trustworthiness across cultures , when we are willing to trust another person, we go through an assessment process whereby we allow ourselves to be vulnerable to them, based on our expectations about how that person will behave when we have trusted them. We have decided to spend less time and energy protecting ourselves from being exploited, thereby opening ourselves up to risk. We have estimated the risks posed by another person, resulting in some measure of uncertainty. Since we are motivated to protect ourselves, we will develop an impetus to reduce that uncertainty. In her book, Why workers still identify with organizations , Denise M Rousseau contends that this is especially true when we are at work and
our job may depend on verifying the trust that we have placed in another person. Some may seek conditions to prevent being cheated or sabotaged, but to some extent we always accept some degree of personal risk. Applying specific criteria When we consider trusting someone at work, we should apply explicit criteria, claim Roger C Mayer, James H Davis and F David Schoorman, co-authors of An integrative model of organizational trust . These cover: ability – the perceived competence of another person; benevolence – the belief that they have your best interests in mind; and integrity – the perception that they adhere to acceptable values or principles. As educators, we should approach the trust concept with sensitivity and care. I advise this cautious approach since concepts of trust may differ between cultures, meaning that we should not assume that any single view of what trust means is superior. This approach is even more important when teaching overseas, where we may find ourselves with a minority viewpoint. In my classes, I like to ask questions that explore the assumptions my students have about trust. I like to invite them to talk openly about their perspectives on trust and to talk about the challenges they have faced when trusting others in another culture. This sometimes reveals interesting differences between their understandings of what it means to trust. For instance, in some cultures the trust concept relates more closely to an ongoing relationship with the person who is considered trustworthy, rather than an assessment of their ability, benevolence or integrity. I consider asking open questions to be an important part of the practice of teaching. I also like to adopt a somewhat naïve approach, by inviting my students to explain concepts such as trust to me so that we can dissect the variety of interpretations and explore any uncertainties and challenges
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“I like to explore the assumptions students have about trust”
BGA | BUSINESS IMPACT
“Before you trust others, first verify what they say and reflect on the cultural differences when evaluating their trustworthiness”
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relating to those definitions. In this way, I explore the cultural assumptions and perspectives that exist about trust, starting by assuming that the trust concept is complex with a range of meanings. I prefer to follow this approach to avoid prescribing my own personal view. The international arena Business school students are a diverse group of people and, on graduation, may work in culturally diverse contexts. It is important, therefore, to use class time to explore how the trust construct is influenced by differing cultural contexts. Due to globalisation, businesses today have become more multinational than ever before. The trend towards increasing globalisation means that we need to recognise the growing importance of understanding how a diverse workforce works together. In Influence of trust and participation in decision making on employee attitudes in Indian public sector undertakings , S Pavan Kumar and Shilpi Saha argue that trust is essential for cross-cultural strategic collaborations, relationships and partnerships, but this does not mean that we should ‘trust all’ without considering the cultural angle. Although there will be some generalisations about trust, expectations about trustworthiness can depend on both culture and the context, according to Altman Klein. It should
also not be assumed that in every situation we should seek first to trust, while ignoring the political and economic contexts. As professionals, we should not be naïve when making trust judgements and should consider the risks of doing so. Moreover, culture and trust are linked to the extent that what is considered trustworthy may depend on our personal cultural perspective about what is deemed trustworthy. We tend to both reinforce relationships that are consistent with our personal cultural values and beliefs and punish those values and beliefs that we judge to be inconsistent with our own, says Kwantes. Dutch social psychologist Geert Hofstede famously coined the term ‘power distance’ to describe cultures in which powerful people are expected to assume authority, make decisions and take responsibility. In power distance cultures, people with less power will expect those in power to act in an assertive manner. Similarly, in such societies those with less power tend to disagree less with those in a position of authority. This power difference has an impact on whether individuals trust each other, to the extent that individuals in these cultures generally place less trust in others. In this scenario, it would not be wise to put oneself at risk by placing trust in a high-powered individual, since they may view you as a threat.
BGA | BUSINESS IMPACT
CULTURAL DIFFERENCES
One further cultural phenomenon that influences interpersonal relationships at work is called ‘ guanxi ,’ defined by Kwang‑kuo Hwang in Face and favor: the Chinese power game as the connections between individuals, reciprocity and the need to exchange favours. This exchange results in a kind of social glue that holds societal functions and interpersonal relationships together. Guanxi impacts on the formation, development and maintenance of trust in Confucian-influenced countries such as China and Japan. With guanxi , trustworthiness is assigned to an individual who can keep their word; as Izak Benbasat and Weiquan Wang outline in Trust in and adoption of online recommendation agents , this perspective on the trustworthiness of others leads to a dislike for the use of legal contracts in business dealings. Instead of legal contracts, these cultures prefer to establish trust at a personal level, according to An empirical study of overseas Chinese managerial ideology , compiled by SG Redding and Michael Hsiao. Chinese workers may prefer to rely on the relationship, thereby skirting the need to appraise trust in their colleagues. The Chinese might also describe trust in more affective terms, associating trust more closely with the relationship developed with another person and how they view their obligations to each other, as per The problem of trust by Adam B Seligman. In Chinese organisations, members of a tight knit ‘in-group’ may be close friends who consider members of an ‘out-group’ to be competitors for limited resources. In-group members, therefore, depend preferentially on other members of the same group. Sensitive by nature When teaching, it is important to be aware of both cultural and political differences, since the trust construct impacts business, international politics, economics and trade. Canada, for example, recently banned two of China’s biggest telecom equipment makers, Huawei and ZTE, apparently to “protect the safety and security of Canadians” and to safeguard its telecommunications infrastructure. This means that telecoms firms in Canada will no longer be able to use equipment made by Huawei and ZTE due to “national security concerns”. Implying that safety and security are at risk is a statement of distrust. However, Huawei has argued that this decision was rooted in national politics, in violation of free market principles, and the Chinese government has condemned the move against its national champions as a form of “political manipulation” carried out in co-ordination with the US, aimed at suppressing Chinese companies. Moreover, in a strongly worded response to the banning of Chinese equipment issued last May, the Chinese Embassy in Canada argued that the Canadian government was “acting in collusion with the US to suppress Chinese enterprises” and that “Canada’s so-called security concerns are nothing but a cover for political manipulation”. The Huawei case illustrates how perceived trustworthiness in business has become conflated with national politics. Disputes such as this introduce personal and professional risks that graduates, educators and professionals need to weigh up.
Takeaways of trust When choosing to trust others, we might want to take a leap of faith. However, this may expose us to unnecessary risks and sometimes we would be better advised to play it safe. Trusting others means accepting some degree of vulnerability; our gut instinct can be misleading, making us more vulnerable to risk. Be sensitive to the political angle, as trust and politics are often interlinked. Do not be afraid to distrust others: trust may only offer protection and improve performance if that trust is placed wisely. Before you decide to trust others, it is important to first verify what they say and reflect on the cultural differences when evaluating their trustworthiness. When deciding to trust another person, always consider their ability, benevolence and integrity.
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Richard Galletly is a senior lecturer of leadership and human resource management at the University of Law Business School, with more than 10 years’ experience in higher education. He holds a professional doctorate in education from the University of Liverpool. Galletly’s research focuses on the psychological contract within mixed-culture organisations
BGA | BUSINESS IMPACT
Perfect partners
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BGA | BUSINESS IMPACT
CAPACITY-BUILDING WORKSHOP OVERVIEW
BGA’s capacity-building workshop in Berlin looked at how business schools can find the right partners and, crucially, the right type of partnerships for their individual circumstances. Tim Banerjee Dhoul reports
C
ollaborative projects, initiatives and programmes between business schools and other organisations are increasingly central to success in the global management education industry. They can also take a wide variety of forms, each of which offers differing
At one end of the spectrum are single-course collaborations that might, for example, consist of study trips or student exchanges. These can be arranged with a large number of partner institutions in different locations in a short space of time, although van de Velde did note that one could question whether they really equate to a ‘partnership’ due to their simplicity. At the other end are long-term partnerships where institutions commit to offering a double degree. Examples offered included the Lisbon MBA, a set-up that involves two leading business schools based in the same city deciding to join forces to offer a programme that leverages their strengths rather than competing in the same space. Van de Velde then moved on to the topic of multilateral partnerships. This covered programme partnerships between more than two institutions, such as the renowned TRIUM executive MBA offered by HEC Paris, LSE and NYU Stern, as well as the World Bachelor in Business offered by Bocconi University, the University of Southern California’s Marshall School of Business and the Hong Kong University of Science and Technology (HKUST). Also highlighted by van de Velde was the potential value of belonging to global networks and alliances, such as CEMS (the Global Alliance in Management Education), through which students can access a standardised one-year master’s in management curriculum at any of the 34 business school members belonging to the network. The Global Network for Advanced Management, launched in 2012 by a consortium of schools that includes the Yale School of Management, was another example. Its ‘Network weeks’ programme brings
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benefits and challenges. This makes the sheer scale of possibilities difficult to navigate for many who work in the sector. For this reason, BGA’s inaugural European capacity-building workshop offered a deep dive into the question of partnerships. Held in Berlin on 16 February, the event convened a group of business school leaders to share their experiences of building partnerships with other institutions and organisations. Across four keynote presentations, interspliced with numerous breakout tasks and networking opportunities, the group discussed approaches, challenges and results from their past, present and planned projects. The partnership landscape Steef van de Velde, management and technology professor and a former dean at Rotterdam School of Management, Erasmus University, opened the workshop with a comprehensive overview of the global partnership landscape, encouraging participants to share some of their latest ideas and approaches. Van de Velde talked attendees through the types of partnerships that are commonly set up between business schools. He highlighted how these might range from relationships that are simple and short term to longer- term initiatives that are often decidedly more complex.
BGA | BUSINESS IMPACT
together students for a course focused on a particular school’s expertise and was described by van de Velde as a “brilliant concept”. The further reach of franchising In the next session, vice-president of Collège de Paris Guillaume Finck spoke of the benefits of partnering with other schools and institutions through a franchise model. He was joined by Yasmina Kashouh, head of international programmes and academics at Collège de Paris. Together, they outlined how this approach removes the costs and potential pitfalls that come with opening a campus abroad. Most importantly for Finck and Kashouh is how a franchising model boosts the chances of reaching the local community for which programmes are intended and allows Collège de Paris to pursue its mission-based aims. For example, they explained that, by signing up to their model, a local franchise can offer programmes at local prices rather than needing to align it to prices that are applicable at a head campus operating in a different context thousands of miles away.
“A franchising model boosts the chances of reaching the local community for which programmes are intended”
The school’s desire to maximise its reach and impact are also what led Collège de Paris to the BGA network and to seek its accreditation. “[BGA accreditation is] part of our strategy, it’s not a bonus and it’s not [just] a logo we want to add on our brochure… There is a match because BGA integrates our ability to measure our impact into its philosophy. That works for us… more than measuring the number of PhD-holding faculty. Our philosophy is to have a social impact. So, an accreditor that knows how to integrate this is the right one for us,” Finck reasoned. Finck went on to cover the school’s dedication to its impact philosophy in the face of challenging circumstances, with specific reference to Myanmar, where he believes his institution is the last remaining international school. Commenting on direct influence and surveillance from the country’s military government, Finck pointed to Collège de Paris’ principal of providing ”education for all” and surmised that “we might as well make it true.” He also acknowledged that “no money comes back” from partnered programmes in Myanmar that cater largely to military students who are looking to switch careers. Whatever the overriding goal, partnering with institutions overseas and widening reach requires resources and this is where Finck believes schools could be doing better. “Many of the beautiful universities I visit have an international office – at the end of the hall, with one person struggling,” he commented. “It’s difficult to work in these conditions and we didn’t approach it this way. Instead, we integrated [internationalisation] into our fundamental strategy and created a dedicated business unit, Collège de Paris International, with a team of 24 people.” Campus within a campus Another route to establishing an overseas presence through partnerships was discussed by Sagi Hartov, CEO for Germany at Global University Systems and co-founder and executive president of Berlin School of Business Innovation.
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