1. INTRODUCTION

1.1 Background of the Study

The fast-paced globalisation and industrialization that have made the world a global village imply that no country, region, or trading block can achieve sustainability without collaboration and partnership in trade and development initiatives. The emerging economies in the East such as India, China, and Japan, require proven project management frameworks to facilitate ascent to global superpower statuses economically. However, the challenge faced by these economies is that there is no empirical evidence to suggest existing project management models can be effective in their contexts (Hofstede 1993). A comparative study by Dahlgaard et al. (1998) analysing the difference in the quality of management practices between companies in the West and the East established that such practices are more diverse in the Eastern context. While such variations may be attributed to education and training, communication of policies, tools and methods used, and management improvement programs, the presence or absence of cultural diversity plays a significant role. Models developed by renowned institutions and bodies such as the Project Management Institute (PMI), the International Project Management Association (IPMA), and the Association of Project Managers Group (APMG) have only proved effective in the Western world as their application in the Eastern world remains largely untested.

The most renowned project management frameworks, the Project Management Book of Knowledge (PMBOK) and the IPMA Competency Baseline (ICB) and Project Management in Controlled Environments Version 2 (PRINCE2), are considered to be American-centric and European-centric project management approaches respectively (Ghosh et al. 2010; Hofstede 1993; Peng et al. 2007). Questions have been raised of the capability of these Western project management frameworks to achieve favourable outcomes with larger scale and complex projects being undertaken in the Eastern countries. A study by Gasik (2011) on models for management of project knowledge established that understanding the cyclic flow of knowledge in different organizational settings is the key to success. According to Gasik (2011), the use of micro-knowledge and macro-knowledge to perform single tasks and multiple tasks respectively, are the effective approaches for managing knowledge at personal, project, institutional, and global levels. Hofstede (1993) and Naor et al. (2010) posit that national and organizational cultural diversity contributes to major idiosyncrasies in the management theories, leading to disparities in the outcomes of management styles in the Western and Eastern contexts.

1.2 Significance of the Study

Cultural divergence is a common phenomenon in modern organizational project management. Its impacts in the management of projects in the international contexts are significant. Hofstede (1998) and Naor et al. (2010) observed that effects of cultural diversity in organization and project settings are more pronounced when comparing management approaches in the West and the East. Over the last decade, attempts have been made to introduce Western project management approaches into the Eastern countries. An interpretive study by Chen and Partington (2003) cautions that cross-cultural management theories and practices transfer encouters challenges due to the existence of well-established differences between the West and the East in relation to cultural values whose influence in shaping management beliefs is of paramount importance.

Empirical evidence shows that the cross-cultural transfer of management frameworks does not always guarantee success (Chen and Partington 2003), as the case with the Iradium Satellite project, whose objective was to launch low-orbiting satellites that would provide global telecommunication coverage. According to Fabris (1996), the initial design, planning, and implementation phases indicated that the multi-billion project would be a major success. However, Cauley (1999) posited that the project dismal financial and commercial performance led to its abandonment in 1999. It is important to note that there are a number of successful cross-cultural international projects, such as the Year 2000 (Y2K) (Anbari et al. 2003), from which cross-cultural management approaches can be borrowed to reduce chances of failure.

Cultural diversity in international and organizational projects can be countered by ensuring the management team is equipped with behavioural, contextual, and technical competencies necessary for successful implementation. According to Anbari et al.(2003), overcoming cultural diversity hurdles requires the use of multicultural teams to provide the innovative thinking and experience needed to ensure the competitiveness of the organization. It is worth noting that the negative influence of culture is unavoidable in the modern multicultural communities. Managers are responsible for the adoption of flexible leadership styles that are culturally sensitive to ensure creativity and motivation and aid in the timely completion of projects. The two leading studies on cultural diversity by Hofstede (2000) and Trompenaars and Hampden-Turner (1998), bring to the fore the major cultural differences between the Western and the Eastern countries that affect management theories and practices.

Hofstede (2000) posits that cultural differences exist on a number of paradigms. Relationships between people are defined by individualism and collectivism, which Trompenaars and Hampden-Turner (1998) break into individualism against communitarianism, and universalism against particularism. The paradigm of motivational orientation is defined by power distance, uncertainty avoidance, and masculinity versus femininity. Lastly, the paradigm of attitudes towards time is defined by short-term and long-term orientations. Aycan et al. (2000) also identified the existence of socio-cultural dimensions defined by paternalism and fatalism where control and guidance play a crucial role. These elements are distinctly pronounced in the Western and Eastern cultures, and their role in the management of projects in the modern context cannot be underestimated.

1.3 Aim and Research Objectives

Cultural diversity between the West and the East is a risk for failure in the management of multicultural projects in the modern era of globalization, but the phenomenon can be converted into a critical element for success through adoption of culturally sensitive leadership style, mutual respect, and culture sensitive communication strategies. The aim of this study is to establish elements of cultural divergence between the West and the East, and comparatively determine their influence on project management styles and implications to stakeholders in the organizational and international contexts. The objectives of the study are as follows:

• To determine cultural components causing differences in project management theories and practices between Western and Eastern countries
• To identify the impacts of cultural diversity in influencing adoption of different project management frameworks in organizational and international contexts of the West and the East
• To establish strategies and project management models effective in overcoming the negative effects of cultural diversity of the West and East on successful implementation of projects

 

1.4 Scope and Limitations

The study explores cultural diversity in an international context by examining the differences between management theories and practices of Western and Eastern countries. Comparative analysis of cross-cultural management frameworks has implications for managers, investors, governments, private institutions, and other stakeholders interested in the implementation of international projects. However, the study faced a number of challenges including:

• Difficulties in data collection due to geographical limitations;
• Lack of generalizability because cases studies fail to reflect the situation in the Western or Eastern context due to diversity in management culture, values, and beliefs within these regions; and
• Lack of appropriate sample of managers with cross-cultural management experiences to supply data needed to accomplish the study objectives.

1.5 Study Structure

This paper has five chapters, each addressing different components of the study. The introduction introduces the reader to the theme of the project and lays the foundation for the subsequent chapters. The second chapter, the literature review, discusses the empirical evidence on the concepts under study and relates their significance to the study objective. The methodology chapter highlights the research design, sampling, data collection, analysis, and presentation techniques used, including and ethical issues in the study. The results and discussion chapter presents and related the outcomes of the study to the objectives and discusses the presence or lack of similarities. The conclusion chapter revisits whether objectives are met or not, presents the implications of the study to stakeholders, and suggests recommendations for future studies. The paper also has the references section that lists all materials cited in the text, and the appendices to provide additional information on some aspects raised in the text.

3. METHODOLOGY

3.1 Research Designs and Methods

Choice of an appropriate method in the study of elements of cultural anthropology such as cultural diversity, and its effects on project management theories and practices is a critical step towards credible, reliable, and valid research data. According to Holden and Lynch (2004), the social science phenomena under investigation and the researcher’s philosophical stance have a significant role to play in choice of research methodology. This chapter discusses the research methodology used in fulfilling the objectives of the study, by highlighting essential elements of the methodology such as the study sample, instruments and techniques used in data collection and analysis, and ethical considerations. The research design for the dissertation is qualitatively focused because the approach has multiple applications as a social research method, its interpretive and naturalistic approaches. Qualitative methodologies are effective for reflecting elements of data that are statistically unquantifiable including perceptions and beliefs about a given phenomenon such as cultural diversity in project management. The use of qualitative methods in social research allows the researcher to capture personal experiences, interactions, life stories, and ideas through interactive and non-interactive techniques such as interviews and observations. The use of qualitative methodology allows the research to adopt a pragmatic approach by employing different but complementary techniques in exploring the phenomenon under study.

 

 

 

3.1.1 Case Research

The dissertation uses the case research methodology as a qualitative technique to fulfill the objectives. Choosing case research methodology for comparing cultural diversity between the two regions and its implications to institutional and international project management, is founded on the fact that international project management is fast becoming a common phenomenon, and the need to identify cross-cultural interventions that work in either setting is paramount. The choice of this methodology is based on Baxter and Jack (2008) argument that case research is a useful approach in the study of complex phenomena under given settings. Using qualitative case research is thus suited to the study of the phenomenon in the Western and the Easter contexts by employing representative organizations from either side as the target sample. The potential of case research to be used in studying multiple cases played a critical role in the study of international organizations practicing cross-cultural management practices in Europe and the East. The intention was to accumulate data that reflects the comparative use of cultural diversity in project management theories and practices in the two contexts.

According to Stake (1995) Yin (2003), case research technique operates on the principle of the constructionist theory, which postulates that individual perceptions are deterministic of truth. While constructionists employ subjectivity in the creation of meaning, they also partake in objective idea generation. Case research accomplished its subjective and objective role in the creation of meaning by bringing the researcher and the participant closer during the narration of stories. The stories allow the participant to elucidate individual perceptions of reality, which is critical for understanding the reasoning behind their actions. In this dissertation, the description of respondents perceptions of cultural diversity between the West and the East and its implications to project management theories and practices in institutional, national, and international levels, is essential for understanding the role of the phenomenon in project success or failure. Employing multiple case research or collective technique allows for comparative exploration of the differences between the contexts (Yin 2003). The objective is to replicate data across the cases through thematic analysis to establish the existence of similarities or contradictions.

The adoption of case research is highly influenced by the objectives of the study. The descriptive nature of the study, which attempts to understand what is happening, and the exploratory nature, which seeks to answer why or how it happened, justifies the use of case research in this study of cause and effects. Using the case study in answering such questions provides rich, descriptive, and insightful explanations that other methods fail to accomplish. Case research also favours the collection of data on the phenomena under study in natural settings, which was accomplished through phone interviews rather than the mere provision of answers to data collection instruments. The use of the methodology in conducting evaluations (Yin 2003) also proved critical to the study.

3.1.2 Exploratory Research

The dissertation uses exploratory research to develop deep insights into cultural diversity in the West and East and influence on project management practices and theories. The use of exploratory research to explore topics that the researcher initially had limited understanding is essential in this context, where cultural diversity is emerging as a critical factor in project success or failure in the modern era of globalization. The continued emphasis on the need for cross-cultural practices in international projects management necessitates the use of exploratory qualitative methods due to their applicability in the examination of diverse concepts. Given the immense cultural difference between the West and the East from the management perspective, exploratory research allows for the development of an enhanced understanding of the phenomena because it is flexible for application in different scenarios. Exploratory research is especially necessary in understanding why project management theories and practices that have proven successful in the West, have little implications or applications in the East and vice versa. Through the use of different qualitative techniques including literature critiques and appraisals and interviews, exploratory research ensures collection of relevant data.

3.1.3 Descriptive Research

Descriptive research is not only important in answering the “what happened” questions, but also in the identification of the underlying causes of such occurrences. Given the variations in sensitivities associated with culture in the West and the East, descriptive research accords the participants the privilege to discuss cultural diversity in project management in their own words and natural conditions, which raises the chances of obtaining quality, valid, and reliable data. Descriptive approach is especially important for business organizations when discussing the prevailing market conditions. This is important in understanding cultural diversity in project management, which is becoming a hotbed of discussions among international stakeholders due to emergence of powerful economies in the East, and initiation of mega-projects that require cross-cultural management theories and practices to ensure success.

The use of descriptive research in case studies focuses on frequency of occurrence. For instance, the research sought to determine participants perceptions of how often cultural diversity was thought to be a driving factor or an impediment towards project successful implementation. Further descriptions of knowledge and cultural behaviours can be established by observing trends in the data. Such descriptive data can provide insights into the phenomenon under study, in social settings under which project management theories and practices are applied. This implies that descriptive case research is not only important in understanding current influences of cultural diversity in the West and the East in project management, but also the implication for the future development of workable cross-cultural theories and practices. The difference between exploratory and descriptive methodologies revolves around familiarity with the research topic, which is present in the former but absent in the latter, making them perfect complementary research approaches.

3.1.4 Qualitative Research

As observed earlier, the dissertation employed qualitative techniques in accomplishing its study objectives. This choice was informed by the effectiveness of the method in conducting social science studies, specifically in the international project implementing organizations where cultural diversity creates a number of unexpected challenges. However, there are concerns that the subjectivity of qualitative methods makes them less desirable than quantitative methods because of their focus on viewpoints and opinions that cannot be substantiated quantitatively (Roshan and Deeptee 2009). Nevertheless, the application of qualitative methods in the study  and exploration of human behaviour makes it indispensable for this dissertation on cross-cultural differences and project management theories and practices. Roshan and Deeptee (2009) observe that reliability of qualitative methods as social research techniques is behind the rise in their use in business organizations. The flexibility of qualitative methods allows for their application in natural settings where participants are comfortable to take part in the study. It is important to note that qualitative methods collect, analyse, and interpret data from observing human behaviour, which qualifies as exploratory in comparison to quantitative methods that base their collection, analysis, and interpretation on observation of numerical patterns. In most circumstances, qualitative and quantitative methods are used complementarily, but this study uses qualitative research due to the opinionated form of data from participants.

The dependence on qualitative research methodology is based on its ability to provide personal opinions and viewpoints constructed as perceptions of importance (Bryman 2008). The collection of qualitative data takes numerous techniques which can be employed singly of complementarily such as interviews, survey questionnaires, or focused group discussions. These techniques are preferred for the freedom they accord participants in expression their views and opinions openly. They allow direct interactions between the researcher and the participants facilitating the deeper understanding of the phenomenon being studied. In addition, exploration of cultural diversity through qualitative methods supplies information important in improving project management in the Western and Eastern contexts. The use of non-numerical data informs the continuous development of understanding on the concept of cultural diversity on project management theories and practices. This data illustrates personal opinion, feelings, and thoughts that inform their behaviour towards influencing project management. The human aspect that is a focus of qualitative studies is essential in understanding perceptions of the world and their influence in the development of strategies for overcoming imminent challenges.

3.2 Study Sample and Sampling Criteria

The challenge faced by the research was to find the appropriate sample of participants to take part in the study. This was the case due to the limited number of managers with experience in cross-cultural project management in the West and East. In addition, the logistical planning involved in searching for participants proved to be a major obstacle. Therefore, a general approach was adopted to facilitate capture of diverse views and perceptions of different managers on cultural diversity between the West and East and project management theories and practices. It was difficult to eliminate bias as the researcher employed targeted sampling, where experience in cross-cultural project management in Europe or the East was used as the inclusion criteria. Credible government and private online resources were used to identify projects falling in this category and their respective management teams for recruitment into the study. The sample identified were mostly male and aged over 30 years from different nationalities including the UK, US, China, and India. It is important to note that the sample is not gender representative, and may not be suitable for judging perceptions of cultural diversity in project management based on the same. However, the use of participants from different nationalities was essential to generate mixed views needed in understanding the influence of cultural diversity on project management.

A random sampling technique used in recruiting participants involved acquisition of contacts of the selected sample, and establishing communication about the intent of the researcher and the study. All project managers identified in Europe and the East were contacted and requested to express their willingness to participate in the study. This was done through the electronic mail via which they were requested to supply their current day telephone numbers. From 15 potential participants, only ten supplied working telephone numbers, and 8 of those confirmed interest to take part in the study. Only 6 participants were needed, three with experience in cross-cultural project management experience from each side (West and East). The selected participants were informed via emails and scheduled for interviews spread across one and half months due to logistical reasons and availability.

 

3.3 Data Collection

The dissertation used primary and secondary data for in-depth discussion and analysis of cultural diversity between the West and East and organizational project management. Primary data was generated through in-depth phone interviews, while secondary data was sought from existing materials including journals, books, company reports and reviews, and other credible online databases and websites on cultural diversity and project management theories. The choice of interviews as the appropriate data collection method was due to their ability centralize participants opinions and perceptions, thus providing critical insight into the phenomenon being studied. The interview questionnaire had open-ended questions to allows each participant from the respective sides to express their views and perceptions of experiences working as project managers in the implementation of cross-cultural or international projects.

Phone interviews were used in the actual data collection because all participants expressed concerns about scheduling face-to-face meetings as they could not find time due to their busy schedules. The use of open-ended questions, as mentioned earlier, allows for exploration of the phenomenon under study without limitations. The use of 6 participants conforms to the recommended number when using interviews for data collection, due to the potential of interviews to generate quantity date that presents analysis difficulties. The reliability of each participant’s contribution was ensured to be valid and high through maintenance of the questions and theme of the study, and the use of a sample with knowledge of the phenomena under study in relevant contexts.

Interviews were spread across a period of six weeks and were conducted individually because it was impossible to schedule group meetings. Interviews were scheduled both during working days and weekends depending on availability of the participants. The duration for each interview was between 50 and 80 minutes. The main feedback recording technique used was note-taking, and phone recording was also employed as a back-up reference material to corroborate the researcher’s notes and aid transcription in later stages of analysis.

3.4 Data Analysis

Data analysis was the most important post-interview phase of the study. Due to data collected being largely qualitative, a thematic approach was identified as suitable for analysis. The thematic technique addresses the study objective seeking to compare cultural diversity between the West and East, and its influences on project management theories and practices in the two contexts. This was achieved through comparison of individual views and responses to establish trends in the form of similarities or contradictions related to the topic under study. Thematic analysis is commonly used for opinion-based rather than statistical data, which was the case in the study, thus allowing for collation of such data into manageable units to assist in the formation of narratives. The most significant benefit of using thematic analysis in case research is its ability to allows generalization of the findings and transferability of results to inform practice in other settings (Yin 2003). This is very important to the study, which utilized responses from six participants only taken as representatives of thousands of managers facing similar situations under different contexts, whom all cannot be interviewed. The thematic analysis also assists in avoiding dependency on descriptive analysis by offering room for analytical, categorical, and theoretical appraisal of the findings. Through the use of thematic techniques, it is possible to alter analysis as ideas develop concurrently, thus allowing existential relationships between variables to be examined deeply.

 

3.5 Ethical Considerations

It is important that researchers conducting studies employing human participants must subscribe to the scientific frameworks and guidelines governing such studies. Despite the use of phone interviews that third parties may have no access to the data and the significant low risk of the study, the researcher left nothing to chance by ensuring that participants’ privacy is kept and personal information remains confidential. In order to ensure the study complied with ethical requirements, consent of participants was sought before engaging them in the study. Participants were also informed of the voluntary nature of the study and the freedom to opt out at any stage if they desired. The researcher also ensured that participants’ were protected from any risk of harm due to their involvement in the study. This was achieved by seeking the approval of the University Ethical Review Board to ascertain that the research design conforms to standards required of social science studies, and limiting the amount of personal data in used in the study. The researcher also assumed the responsibility of ensuring that data collected was used solely for research purposes, and was the custodian of the notes and recordings obtained during data collection, which would be destroyed upon successful completion of the project.

 

 

 

 

 

 

 

References

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