journal of business and educational leadership - Asbbs.org

VOLUME 1, NUMBER 

1 

JOURNAL OF BUSINESS 

AND EDUCATIONAL 

LEADERSHIP 

ISSN 2152-8411 FALL 2009 PUBLISHED ONLINE MARCH 2010 

Intercultural Competence in Leadership Education: Keys to Educating Global Leaders 

...................................................................................................................................... Justin A. Irving 

The Role of Positive Organizational Behavior: A Conceptual Model .................... Renin Varnali 

The Equity in Athletics Disclosure Act and the Accounting Information: Is Information 

Resulting in More Equity .........................................................................................Carol Sullivan 

Virtue as a Foundational Element in Global Business Education ................ Mark W. McCloskey 

A Transdisciplinary Andragogy For Leadership Development in a Postmodern Context: 

Preliminary Findings .......................................................................................... Elaine M. Saunders 

Developing Online Customer Trust ..................................... David R. Wheeler and Susan Atherton 

Opportunities in International Accounting Education Presented by the Current Financial 

Crisis ............................................................................................................................. John E. Simms 

Globalization of the Anglo-Saxon Model of Higher Education: Implications for Growth and 

Development of the Knowledge Economy 

...................................................................Stephen P. Wanger, Zarrina K. Azizova, and Meng Wang 

Requisite Values for the New Global Instructor ........................ Gary Oster and A. Gregory Stone 

Education and Emancipation of Kenyan Women in the Modern Era ............... James M. Mbuva 

A REFEREED PUBLICATION OF THE AMERICAN SOCIETY 

OF BUSINESS AND BEHAVIORAL SCIENCES

JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP 

P.O. Box 502147, San Diego, CA 92150-2147: Tel 909-648-2120 

Email: mondal@asbbs.org http://www.asbbs.org 

____________________ISSN 2152-8411_______________________ 

Editor-in-Chief 

Wali I. Mondal 

National University 

Managing Editor 

Cheryl L. Prachyl 

University of North Texas at Dallas 

Justin A. Irving 

Bethel University 

Editorial Board 

Elaine Saunders 

University of South Africa 

Carol Sullivan 

Texas Wesleyan University 

James M. Mbuva 


James J. Divoky 

University of Akron 

Mike Pickett 


The Journal of Business and Educational Leadership is a publication of the American 

Society of Business and Behavioral Sciences (ASBBS). Papers published in the Journal 

went through a blind-refereed review process prior to acceptance for publication. The 

editors wish to thank anonymous referees for their contributions. 

The national annual meeting of ASBBS is held in Las Vegas in February of each year and 

the international meeting is held in September of each year. Visit www.asbbs.org for 

information regarding ASBBS. 

1

JOURNAL OF BUSINESS AND EDUCATIONAL LEADERSHIP 

ISSN 2152-8411 

Volume 1, Number 1 Fall 2009/MARCH 2010 

TABLE OF CONTENTS 

Intercultural Competence in Leadership Education: Keys to Educating 

Global Leaders 

Justin A. Irving ....................................................................................................... 3 

The Role of Positive Organizational Behavior: A Conceptual Model 

Renin Varnali ....................................................................................................... 14 

The Equity in Athletics Disclosure Act and the Accounting Information: Is 

Information Resulting in More Equity 

Carol Sullivan ....................................................................................................... 26 

Virtue as a Foundational Element in Global Business Education 

Mark W. McCloskey ............................................................................................ 36 

A Transdisciplinary Andragogy For Leadership Development in a 

Postmodern Context: Preliminary Findings 

Elaine M. Saunders ............................................................................................... 50 

Developing Online Customer Trust 

David R. Wheeler and Susan Atherton................................................................. 62 

Opportunities in International Accounting Education Presented by the 

Current Financial Crisis 

John E. Simms ...................................................................................................... 69 

Globalization of the Anglo-Saxon Model of Higher Education: Implications 

for Growth and Development of the Knowledge Economy 

Stephen P. Wanger, Zarrina K. Azizova, and Meng Wang .................................. 81 

Requisite Values for the New Global Instructor 

Gary Oster and A. Gregory Stone ........................................................................ 94 

Education and Emancipation of Kenyan Women in the Modern Era 

James M. Mbuva ................................................................................................ 105 

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Journal of Business and Educational Leadership 

Vol. 1, No. 1; Fall 2009/March 2010 

INTERCULTURAL COMPETENCE IN LEADERSHIP 

EDUCATION: KEYS TO EDUCATING GLOBAL 

LEADERS 

(Keynote address from February 2009 ASBBS Conference) 

Justin A. Irving 


INTRODUCTION 

It is a pleasure to be with you this evening. I bring you warm greetings 

from the cold state of Minnesota and Bethel University where I serve as an 

administrator and faculty member. In addition to extending my gratitude to 

colleagues at Bethel University for providing a community in which my 

academic interests may be expressed, I wish to offer my special thanks to the 

leadership of the American Society of Business and Behavioral Science, and to 

Wali Mondal in particular, for providing this ongoing avenue for scholarly 

engagement with colleagues from around the world. 

The theme of this year‘s conference is focused on Globalization and the 

Future of Business Education. In light of the current market realities we are 

facing in 2008 and 2009, this audience need not be convinced of the realties of 

globalization. More than ever before in history, the effects of globalization are 

being experienced around the world. Even as I originally drafted my work for 

this presentation in the fall of 2008, an RSS News Feed from MSNBC announced 

on my computer‘s desktop, ―World Stocks Fall on Economic Fear.‖ This news 

feed went on to note that ―European stock markets opened sharply lower 

Wednesday following losses in Asia amid spreading pessimism over corporate 

earnings around the world.‖ As one such report among many in our time, it is 

easy to quickly identify the interdependent nature of our world and global 

economies. 

With the rise of globalization, so rises the need for leaders with global 

perspective and intercultural competence to meet these growing challenges and 

opportunities. In light of this, in our time together this evening we will be 

focused on four areas: (a) understanding the effects of globalization, (b) 

exploring theoretical approaches to the understanding of culture and the 

development of intercultural competence in global leaders, (c) presenting one 

school‘s approach to educating leaders in intercultural competence, and (d) 

providing recommendations for leadership educators aiming to meet the urgent 

need of preparing leaders to serve well in the face of globalization. 

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GLOBALIZATION 

While cross-cultural interactions have been taking place for thousands of 

years, it is only within recent decades and the past century that the societies of 

the world have become more accessible. Advances in aviation arguably served as 

one of the first quantum leaps toward the present state of globalization we now 

experience. Alongside advances in transportation, however, the quantum 

advances in technology and communication—driven by the introduction of the 

World Wide Web to public use—have provided a powerful host for bringing the 

peoples of the world into closer proximity and accessibility. Advances such as 

these are increasing the ease with which peoples and societies may learn from 

and work together with people from other cultures. 

In a treatment of negotiation in cross-cultural contexts, Beneke (1983) 

provides an early look at globalization trends. In this work, Beneke cautions the 

international business traveler to not mistake the presence of touristic fares that 

make people feel at home with a universally homogeneous global culture. As I 

have taken in many of theses fares myself—experiences such as Pizza Hut and 

McDonalds on multiple continents, or Kentucky Fried Chicken in Shanghai—I 

have had to remind myself that while there are an increasing number of global 

brands, this does not translate into a homogeneous global culture. The presence 

of globalization forces us to see and embrace an increase of both similarities and 

differences in such intercultural interactions. With the addition of such 

complexities, it becomes even more important that global leaders understand the 

unique skills needed to lead in a global environment. 

Javidan (2008a) argues that those working cross-culturally in a global 

environment have two major responsibilities. First, these individuals need to 

understand their own cultural lens. Second, and based upon the first, if 

individuals want to influence cross-culturally, they need to understand the other‘s 

cultural lens. While these reminders may be fairly basic, when missed, things can 

go very wrong. Javidan reminds us that cultural lens are like electricity; we really 

only pay attention to it when we don‘t have access to it. But to be effective in 

unique cultural contexts, we must begin with a commitment to learning about 

other cultures, and then bring with this learning a willingness to adapt our 

behavior in light of what we have learned. Such skills are not always intuitive for 

leaders engaged in globally oriented work, and reinforces that the need for 

specialized education—whether formal or informal—focused on developing 

intercultural competency is vitally needed in our day. 

Noting that no American corporation is immune from the impact of 

globalization, Javidan, Dorfman, Sully de Luque, and House (2006) argue for the 

priority of understanding global leadership as a critical success factor for large 

multinational corporations. Arguably, these comments are not just for the large 

multinational. Even smaller companies and organizations are increasingly 

touched by the impact of globalization. Large and small organizations alike are 

facing the reality that the global perspective of their leaders and managers is not 

sufficient to meet the demands of globalization. In fact, one report indicates that 

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while the demand for global business understanding continues to grow, nearly 

85% of fortune 500 companies have reported a shortage of mangers with the 

necessary global skills (Gregersen, Morrison, & Black, 1998). This same report 

indicates that having competent global leaders was a highest priority concern for 

corporations when looking at factors for business success. In fact, the need for 

competent global leaders was rank higher than even adequate financial resources 

or technology, showing just how significant this consideration is for prominent 

corporations working to meet the demands of globalization. 

CULTURE AND LEADERSHIP 

When looking at the discipline of leadership studies, it is easy to see why 

a focus on intercultural competence is necessary for successful initiatives in the 

global context. Klenke (2008) argues that leadership is essentially a relational 

practice. The relational dimension of leadership is further emphasized by 

ASBBS‘ own Stone and Patterson (2006) in their overview and history of 

leadership studies‘ movement toward follower-focused orientations. As followerorientation 

in leadership becomes more of a dominant leadership paradigm—and 

this coupled with the widening cultural spectrum of followers and organizational 

constituencies—the need for intercultural competence grows dramatically. As a 

relationally-focused endeavor, leadership and leaders must be able to understand 

and effectively communicate with individuals of their own and divergent cultural 

backgrounds. 

Lest we quickly dismiss this discussion of intercultural competence as 

something only needed for organizational leaders who physically travel to 

foreign sites, we must remind ourselves of the increasing cultural diversification 

within and around our organizations. With the onset of virtual and multinational 

teams, organizational members need to quickly learn a new set of competencies 

in how leadership within such teams is effectively carried out. Marquardt and 

Horvath (2001) argue that, ―Leaders around the world are now recognizing the 

critical importance of global teams as the key to future competitiveness and 

productivity in today‘s new networked-style global organization‖ (p. 3). The 

need for globally minded and interculturally competent leaders is not only a 

reality in virtual global teams; it is needed in the multicultural context of regional 

teams and organizations as well. 

With the cultures of the world around and within even local expressions 

of our organizations, some authors are beginning to utilize the creative language 

of ―glocalization‖ to emphasize that global influence is now a local reality. The 

central question for leaders then is how do we best prepare our organizational 

members to meet this unique opportunity In order to engage this question, we 

will focus on the nature of culture and intercultural competence, and I will argue 

that preparing leaders to become interculturally competent is one of the best 

approaches to meet this challenge of our day. 

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THEORETICAL APPROACHES: HOFSTEDE 

Hofstede's approach to the study of culture is based on the concept of 

culture as consisting of dimensions that may be predictive of behavior. In his 

original study, Hofstede focused on a group of IBM middle managers across 53 

countries. In his groundbreaking work, Hofstede found four primary cultural 

dimensions: (a) power distance, (b) individualism-collectivism, (c) uncertainty 

avoidance, and (d) masculinity-femininity. As Hofstede continued to study 

cultural dimensions, he eventually identified a fifth dimension, which was 

labeled long-term orientation. Hofstede‘s work has been criticized for, among 

other things, being focused on only one company and inattentive to in-country 

differences, even with such criticisms in view, Hofstede‘s work was 

groundbreaking and has been a dominant paradigm in the study of culture and 

leadership up to the time of the GLOBE project. 

THEORETICAL APPROACHES: GLOBE 

The Global Leadership and Organizational Behavior Effectiveness 

(GLOBE) project is the most extensive study of leadership from a global 

perspective to date. With 160 social scientists and management scholars from 

over 60 cultures—representing most, if not all, major regions in the world—the 

GLOBE project worked with over 17,000 middle managers from over 900 

corporations in these 60 plus countries. Focused on the food processing, finance, 

and telecommunication industries, the GLOBE project engaged in a long-term 

programmatic series of cross-cultural leadership studies. As such, GLOBE is 

described as ―a multi-phase, multi-method project in which investigators 

spanning the world are examining the interrelationships between societal culture, 

organizational culture, and organizational leadership‖ (House, Javidan, Hanges, 

& Dorfman, 2002, p. 4). 

In discussing the notion of culture, Javidan (2008a) emphasizes that 

without common experiences, there is no common culture. One of the unique 

components of the GLOBE study is the differentiation of cultural values and 

cultural practice. In other words, GLOBE desired to evaluate both how things are 

done in a culture, and how that culture describes how they should be done. It is a 

contrast between the ―should be‖ and the ―as is,‖ and what the GLOBE project 

refers to as modal values and modal practices. 

Built upon Hofstede‘s study of culture, the GLOBE project utilized nine 

dimensions of culture. In addition to the nine dimensions of culture, the GLOBE 

project utilized six global leadership dimensions of culturally endorsed implicit 

theories of leadership. In examining the relationship between cultural and 

leadership dimensions, substantial evidence has been established indicating that 

leader behavior, attributes, and influence significantly vary due to the influence 

of unique cultural dimensions in diverse contexts (House, Wright, & Aditya, 

1997). 

6


THEORETICAL APPROACHES: GLOBAL MINDSET 

Based upon the GLOBE study, Javidan and the Thunderbird School of 

Global Management have begun work on the construct of Global Mindset. In this 

work global leadership is viewed essentially as the process of influencing 

culturally distinct individuals and groups. Javidan argues that global mindset is 

an essential key to successful global leadership. Based upon this, he defines 

global mindset as, ―the ability to influence individuals, groups, organizations, and 

systems that are unlike the leader‘s‖ (Javidan, 2008c), and further notes that 

global mindset is essentially a set of individual attributes that enable and 

facilitate global leadership. 

What are the core attributes associated with global mindset Presenting 

on the theme of global mindset, Javidan (2008b & 2008c) provided a summary of 

the three essential core attributes of the construct: (a) Intellectual Capital, (b) 

Psychological Capital, and (c) Social Capital. While multifaceted, Intellectual 

Capital is focused largely around industry specific knowledge, cognitive 

complexity, and general cultural acumen. Psychological Capital includes themes 

such as passion for diversity, self-efficacy, and quest for adventure. Also 

multifaceted, Social Capital includes both structural dimensions such as global 

connectivity and relational dimensions such as interpersonal competence, which 

is focused on the priority of building trusting relationships in multiple cultural 

contexts. Based on this work, the Thunderbird Global Mindset Inventory (GMI) 

has been developed as a means of self-assessing global mindset. In the field of 

cultural studies, there is sure to be more attention brought to the work of global 

mindset and the GMI in coming days. The study of global mindset is moving in a 

particularly interesting direction as GMI results are being compared to leader 

brain maps through neurologically driven studies. 

THEORETICAL APPROACHES: INTERCULTURAL COMPETENCE 

A theoretical approach to culture that has gained increasing attention 

over the past two decades is Bennett‘s (1986, 1993b) Developmental Model of 

Intercultural Sensitivity (DMIS). Bennett‘s model is designed to provide an 

interpretive grid for understanding an individual‘s development in their 

orientation toward cultural difference and is inclusive of three ethnocentric and 

three ethnorelative categorical orientations. Hammer, Bennett, and Wiseman 

(2003) argue that the DMIS constitutes a progression of an individual‘s 

worldview. The model begins with the ethnocentric categorical orientations of (a) 

Denial, (b) Defense/Reversal, and (c) Minimization. As one‘s worldview shifts to 

ethnorelative categories, the orientations in the DMIS are (a) Acceptance, (b) 

Adaptation, and (c) Integration. 

As a model of intercultural sensitivity focused on the development of 

intercultural competence, it is important to understand how core terms are 

utilized. Intercultural sensitivity may be understood as the ability to discriminate 

and experience relevant cultural differences. Related to this, intercultural 

competence may be understood as the ability to think and act in interculturally 

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appropriate ways (Hammer, Bennett, & Wiseman, 2003). Central to the DMIS is 

the understanding that increased intercultural sensitivity is associated with 

increased intercultural competence (Hammer, Bennett, & Wiseman). In light of 

this, those interested in the development of intercultural competence within 

leaders rightly are to be focused on the development of intercultural sensitivity 

focused on the leader‘s ability to identify and experience relevant cultural 

differences. 

While this snapshot of the DMIS is helpful, it is important to understand 

the basic definitional categories in the model. Hammer, Bennett, and Wiseman 

(2003) provide a helpful overview of these categories. In the DMIS, the 

ethnocentric category of Denial refers to a state in which one‘s own culture is 

experienced as the only real culture, and thus, cultural difference is not really 

experienced at all. Beyond Denial, the ethnocentric category of Defense refers to 

a state in which one‘s own culture is experienced as the only viable culture; while 

a person in this category is able to discriminate cultural difference, the cultural 

difference is usually interpreted from a perspective that is negative, stereotypical, 

or polarizing. A variation on Defense is Reversal—a state in which a person‘s 

adopted culture is experienced as superior to one‘s initial cultural experience. 

The final ethnocentric category of Minimization refers to a state in which one‘s 

own cultural worldview is experienced as universal. In this state, cultural 

difference is subordinated to global similarities, and thus distinct cultures tend to 

be either trivialized or romanticized. 

Hammer, Bennett, and Wiseman (2003) go on to describe the 

ethnorelative categories. The ethnorelative category of Acceptance refers to a 

state in which one‘s own culture is experienced as just one of a number of 

equally complex worldviews. Individuals with this worldview are able to 

experience others as different from themselves, but equally human. Next, the 

ethnorelative category of Adaptation refers to a state in which the experience of 

another culture yields perception and behavior appropriate to that culture. 

Individuals with this worldview can engage in empathy, and are able to express 

alternative cultural experiences at the cognitive, affective, and behavioral levels. 

This state becomes the basis for biculturality and multiculturality. The final 

ethnorelative category of Integration refers to a state in which one‘s experience 

of self is expanded to include the movement in and out of different cultural 

worldviews. At this category, the themes of encapsulated and constructive 

marginality are emphasized by Bennett (1993a). 

While the university as a whole where I serve utilizes multiple models 

for the development of cultural awareness among its students, faculty, and staff, 

the particular school at which I serve within our university has adopted the 

Developmental Model of Intercultural Sensitivity as the primary theoretical basis 

in our work in addressing the needs of globalization. Beyond the DMIS being a 

theoretically rich model, it also provides a model that is tied to research 

instrumentation that may be utilized developmentally with individuals. This 

instrument—the Intercultural Development Inventory (IDI)—has been developed 

based on the DMIS in order to provide a reliable and valid measure of the 

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model‘s constructs. As such, it takes that which can be a subjective area of study 

and provides more objective measures for organizational members to consider as 

they work on their own developmental progress around intercultural competence. 

Because of this, the DMIS and the IDI have played a significant role in our 

university‘s approach to addressing the need for intercultural competence among 

our students, faculty, and staff. 

EDUCATING FOR GLOBAL LEADERSHIP 

While most business leaders and leadership educators agree that 

preparing people for the demands of globalization is vitally important, the 

question of how this education is best carried out is often not as clear. While our 

institution is by no means a perfect example of how to approach this need, we are 

aiming to take the reality of globalization and the need to develop interculturally 

competent leaders seriously. In light of this I will briefly present some of the 

features of our school‘s approach for the purpose of encouraging other 

institutions in their journey toward intercultural competence along with us. 

As we look at this one example, I first want to emphasize that a need of 

this magnitude will likely not be addressed through a single method approach. 

Rather, educating for intercultural competence must take a holistic and multidimensional 

approach that focuses both on the often intrapersonal cognitive and 

affective levels as well as the relational and behavioral levels of interpersonal 

experience. In reality, the line between the intra- and inter-personal realms is 

often not as clear in practice; ultimately, a holistic approach encourages both 

personal reflection and relational engagement. Practically, the focus on 

intercultural competence in our institution takes on complementary, but distinct 

approaches for our faculty and students. The following is an overview of our 

efforts as a school in this area. 

Strategic Initiatives: Our school has adopted a focus on increasing 

intercultural competence at the level of our strategic initiatives. This strategic 

initiative—one of six current strategic drivers—was proposed by our Provost 

and approved by our President and Board of Trustees. We have found that 

this institutional level of ownership and support has been vital in making a 

focus on intercultural competence a priority from a systems perspective. 

Without broad ownership and support, such initiatives will face many 

challenges institutionally. 

Intercultural Development Inventory: The IDI has been taken by the entire 

faculty in our school. Faculty level discussions on the results from the IDI 

have been ongoing, and faculty members have had the opportunity for 

reflective work on their own intercultural development. This has been very 

important as the IDI has been administered to our students as well. In 

addition to providing a common language for faculty and students dialoging 

around this vital topic, faculty involvement at this level has emphasized for 

our students the priority of attending to our own development around 

intercultural competence. Students and faculty alike have been encouraged to 

thoughtfully and reflectively process the results of the IDI, and most have 

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affirmed the valuable role of the IDI in addressing this focus on intercultural 

development. 

In Class Emphasis: As a culture is being developed around the use of the 

DMIS and the IDI among faculty, staff, and students, it has become easier to 

incorporate topics addressing intercultural competence into the classroom 

experience for students. While we have one required class wholly focused on 

issues surrounding intercultural relations and intercultural competency 

development, this common focus has also provided our school with a 

capacity for faculty to include conversations around intercultural competence 

in courses focused on other subject areas. For instance, in a course focused 

on developing students' understanding and capacity for working in teambased 

and collaborative environments, concentrated attention is given to the 

global dynamics surrounding virtual and multinational teams. 

Intercultural Experience: While the school‘s commitment at the previous 

levels is significant, these commitments are incomplete without also 

encouraging intercultural experiences for faculty and students alike. At a 

faculty level, the school has provided a grant fund to which faculty may 

apply for funds for the purpose of engaging in cross-cultural teaching 

experiences. Through this—in conjunction with global partner institutions— 

faculty members are provided a means for gaining significant intercultural 

experience. This program has been one of the most effective ways of 

providing faculty with a means for applying their intercultural development 

studies. More significantly, the experiences that faculty have naturally find 

their way back to the classroom at the university, thus providing students 

with the benefit of globally influenced faculty and helping to work toward 

our aim of developing interculturally competent leaders. 

In addition to this, students are likewise encouraged to engage in 

intercultural experiences both locally and internationally. These experiences 

come in the form of both formal and informal opportunities. Some of our 

students join faculty or travel independently for short-term international 

experiences, while others select longer term cross-cultural learning 

experiences. Additionally, students are encouraged to engage in local 

intercultural opportunities as well, and through some of our courses, students 

participate in organizational and community oriented site visits in culturally 

diverse settings. Through these and other formal and informal intercultural 

experiences, the school aims to reinforce student learning that has taken 

place in the classroom setting through outside intercultural experiences. 

As one point of empirical support for our school‘s use of the IDI and a 

specific course focused on the development of intercultural competence, a 

comparison group quasi-experimental study was used to measure student growth 

in intercultural competence. In this evaluation, we found that the data indicated 

significant student growth in intercultural maturity. While 92% of the students in 

this study were categorized in ethnocentric categories in the DMIS during pretests, 

following the course intervention, zero percent of the students were found 

10


to be in the DMIS categories of Defense and Denial, and over 50% of the 

students were found to be at a satisfactory level of intercultural competency, up 

from 8% prior to the course intervention (Harden & Sandage, 2008). 

A COMMITMENT TO BUILDING INTERCULTURAL COMPETENCE 

House (2004) reminds us that, ―Ample evidence shows that cultures of 

the world are getting more and more interconnected and that the business world 

is becoming increasingly global‖ (p. 1). With this reality facing leadership 

educators, we cannot afford to ignore the need and opportunity before us. In light 

of this, allow me to provide some recommendations for leadership educators who 

care about preparing students to serve in our world during this time of increasing 

globalization. 

First, and quite basically, doing something for our students is better than 

nothing. It is easy to compare our educational institutions to other schools. While 

this is beneficial for the purpose of gaining new ideas and finding encouragement 

for addressing the needs of globalization with our students, it can also lead to a 

type of institutional paralysis that makes us feel we cannot compete with larger 

faculties or larger endowments. When this perspective sets in, we must remind 

ourselves that our students desire the best we can offer them as faculty and as 

educational institutions. We must do what we can with the resources that are 

available to us. As LaFasto and Larson remind us, "the fundamental law of 

success is this: Action is more likely to succeed than inaction" (2001, p. 22). 

Second, aim for a holistic approach that engages both the cognitive and 

experiential needs of developing intercultural competence. Experience without 

insight can be helpful, but it may lead to reactions driven by stereotyping and 

result in further resistance to intercultural engagement. Similarly, cognitive 

engagement without experience can stretch students intellectually, but runs the 

risk of leaving students with unrealized theories that are uninformed by relational 

and intercultural encounters. When intercultural competency development takes 

the cognitive and the experiential dimensions of education seriously, there is 

great promise for students maturing in intercultural competence. 

Finally, it's important that we measure what matters. Successful 

businesses do not fail to measure their bottom lines. Educational institutions must 

not exempt themselves from measuring what matters around intercultural 

competence. If the development of interculturally competent global leaders is one 

of the highest priorities for today's organizations, educational institutions need to 

identify ways of measuring student learning outcomes around this area. In our 

school, we have identified the IDI as the primary tool for accomplishing this. 

Your institution may land on another tool for measurement, but I would 

challenge institutions to ask the hard question of how they are measuring what 

matters in this realm of student intercultural development. 

SUMMARY & CONCLUSION 

As organizations continue to experience both the opportunities and 

challenges surrounding globalization, the need for intercultural competence—and 

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leaders who possess this competence—will be increasingly important. In this 

article, intercultural competence has been presented as an essential skill 

necessary for leaders and organizations that desire to meet the unique demands of 

global interconnectedness. In addition to engaging the unique features of 

globalization and several key approaches to understanding culture and leadership, 

special attention has been given to recommendations for how educational 

institutions may approach the development of interculturally competent emerging 

leaders. As institutions of higher education continue to prepare these leaders for 

diverse organizational roles, the importance of strategies such as these will 

become increasingly vital. I trust that the recommendations provided in this 

article will help educational and organizational leaders as they work to meet the 

unique challenges and opportunities of globalization during this time in history. 

God bless you, and thank you very much. 

REFERENCES 

Beneke, J. (1983). ―The Value of Cultural Studies in the Training of Cross- 

Cultural Negotiators.‖ Euorpean Journal of Education, Volume 18, 

Number 2, 127-138. 

Bennett, J. M. (1986). ―Towards Ethnorelativism: A Developmental Modal of 

Intercultural Sensitivity.‖ In R. M. Paige (Ed.), Cross-Cultural 

Orientation: New Conceptualizations and Applications (pp. 27-70). New 

York: University Press of America. 

Bennett, J. M. (1993a). ―Cultural Marginality: Identity Issues in Intercultural 

Training.‖ In R. M. Paige (Ed.), Education for the Intecultural 

Experience (pp. 109-136). Yarmouth, ME: Intercultural Press. 

Bennett, J. M. (1993b). ―Towards Ethnorelativism: A Developmental Model of 

Intercultural Sensitivity.‖ In R. M. Paige (Ed.), Education for the 

Intercultural Experience (pp. 21-71). Yarmouth, ME: Intercultural Press. 

Gregersen, H.B., Morrison, A.J. & J.S. Black (1998). ―Developing Leaders for 

the Global Frontier.‖ Sloan Management Review, Fall, 21–32. 

Hammer, M. R., M. J. Bennett, and R. Wiseman (2003). ―Measuring Intercultural 

Sensitivity: The Intercultural Development Inventory.‖ International 

Journal of Intercultural Relations, Volume 27, 421-443. 

Harden, M., and S. Sandage (2008). ―Relational Spirituality and Intercultural 

Development: A Systems Approach for Seminary Graduate Students and 

Faculty.‖ IDI Conference Minneapolis, MN 2008 

House, J. H. (2004). ―Part I: Introduction.‖ In R. J. House, P. J. Hanges, M. 

Javidan, P. W. Dorfman, and V. Gupta (Eds.), Culture, Leadership, and 

Organizations: The GLOBE Study of 62 Societies (pp. 1-2). Thousand 

Oaks, CA: Sage. 

House, R., M. Javidan, P. Hanges, and P. Dorfman (2002). ―Understanding 

Cultures and Implicit Leadership Theories Across the Globe: An 

Introduction to Project GLOBE.‖ Journal of World Business, Volume 37, 

3-10. 

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House, R. J., N. S. Wright, and R. N. Aditya (1997). ―Cross-Cultural Research 

on Organizational Leadership: A Critical Analysis and a Proposed 

Theory.‖ In P. C. Earley & M. Erez (Eds.), New perspectives in 

international industrial/organizational psychology (pp. 535–625). San 

Francisco: The New Lexington Press. 

Javidan, M. (2008a) ―Understanding and Managing Cultural Issues.‖ Plenary 

Address, 2008 Annual Roundtables of Contemporary Research & 

Practice, School of Global Leadership & Entrepreneurship, Regent 

University. 

Javidan, M. (2008b). ―A Discussion with Mansour Javidan.‖ Opening Reception 

for the Center for Integrative Leadership‘s (University of Minnesota) 

Integrative Leadership: Leading Across Boundaries for the Common 

Good Conference. 

Javidan, M. (2008c). ―What is Global Mindset ® Why is it important‖ Plenary 

Address, 2008 Annual Roundtables of Contemporary Research & 

Practice, School of Global Leadership & Entrepreneurship, Regent 

University. 

Javidan, M., P. W. Dorfman, M. Sully de Luque, and R. J. House (2006). ―In the 

Eye of the Beholder: Cross Cultural Lessons in Leadership from Project 

GLOBE.‖ Academy of Management Perspectives, February, 67-90. 

Klenke, K. (2008). Qualitative Research in the Study of Leadership. United 

Kingdom: Emerald. 

LaFasto, F. M. J., and C. E. Larson (2001). When Teams Work Best: 6,000 Team 

Members and Leaders Tell What It Takes to Succeed. Thousand Oaks, 

CA: Sage. 

Marquardt, M. J., and L. Horvath (2001). Global Teams: How Top 

Multinationals Span Boundaries and Cultures with High-Speed 

Teamwork. Palo Alto, CA: Davies-Black. 

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Behavioral Factors: A Historical Perspective.‖ 13 th Annual Banquet of 

the American Society of Business and Behavioral Sciences, Keynote 

Address. 

13



THE ROLE OF POSITIVE ORGANIZATIONAL 

BEHAVIOR: A CONCEPTUAL MODEL 

Renin Varnali 

Boğaziçi University 

ABSTRACT: The purpose of the present article is to propose a conceptual 

model investigating the interrelationships among constructs of perceived 

organizational climate, work value orientations, job satisfaction and 

organizational citizenship behavior (OCB) within the framework of positive 

organizational behavior (POB). Employees‘ perceived organizational climate and 

their work value orientations are influential in both their job satisfaction level and 

OCBs. Prior empiric findings support that job satisfaction and OCB are 

particularly relevant outcomes in positivity research. There is significant amount 

of literature accumulated on the topics of job satisfaction of employees, their 

level of engagement in OCBs, organizational climate and work value 

orientations. Although these constructs have been used together in conceptual 

models and tested in empirical researches, the acknowledgement of the role that 

POB plays in linking these constructs together is quite recent and provides 

opportunities for future research. The present article proposes a conceptual model 

that incorporates the aforementioned constructs in a single, comprehensive 

framework and presents a discussion regarding these constructs adopting the 

perspective of positivity research. The conceptual framework proposes that the 

existence of positive organizational behaviors would make these relationships 

more robust; which would highlight the importance of these positive 

organizational behaviors at workplace. The proposed model would be beneficial 

to both academics by providing fruitful empiric research avenues and to 

practitioners by directing them in recruitment, training and career development 

processes. 

INTRODUCTION 

There is a wide coverage of extant literature about the relationship 

between positive feelings of employees and their performance. The topic of 

employees‘ feelings is of consideration to many scholars from several 

perspectives since the Hawthorne Works of the Western Electric Company. 

Following the lead of recently emerging positive psychology, a stream of 

research started to focus on people's strengths and psychological capabilities, 

which resulted in the conceptualization of positive organizational behavior 

(POB) construct. 

Prior empiric findings support that positive personality traits such as 

conscientiousness, emotional stability and positive affect are positively related to 

job satisfaction, which in turn is positively related to performance. Also, with 

respect to the desirable work outcomes, job satisfaction has been identified as a 

predictor of organizational citizenship behavior (OCB). OCB is conceptualized 

14


as voluntarily going above and beyond the immediate tasks and short-term 

expectations. Examples of OCBs include helping others with work related 

problems; adhering to norms, policies, and procedures set forth by the 

organization even when no one observes; not complaining and exhibiting a 

positive attitude in the face of adversity; expressing a positive attitude about the 

organization to outsiders; etc. Therefore, job satisfaction and OCB are 

particularly relevant outcomes to be assessed in positivity research. 

Employees‘ relations to their works, also known as work value 

orientations are influential in both their job satisfaction level and OCBs. These 

orientations are shaped by employees‘ values, norms and how they view work as 

part of their lives. Additionally, perceived organizational climate is influential in 

creating values for employees. These values reflect the organization and how 

employees view and perceive organizational values, norms and procedures. 

These show whether the organization is open to change; encourages 

participation; supports empowerment; values creativity, positive thinking etc. 

These organizational values shape employees‘ perceptions about the job and 

organization, and play a role in creating their personal work value orientations. 

There is significant amount of literature accumulated on the topics of job 

satisfaction of employees, their level of engagement in organizational citizenship 

behaviors, their work value orientations and perceived organizational climate. 

Although these constructs have been used together in conceptual models and 

tested in empirical researches, the acknowledgement of the role that POB plays 

in linking these constructs together is quite recent and provides opportunities for 

future research. The present article proposes a conceptual model that incorporates 

the aforementioned constructs in a single, comprehensive framework and 

presents a discussion regarding these constructs adopting the perspective of 

positivity research. The conceptual framework aims to assess the relative 

importance of self-driven work value orientations versus perceived 

organizational climate in determining employee job satisfaction and 

organizational citizenship behaviors. Furthermore, it is proposed that the 

existence of positive organizational behaviors would make these relationships 

more robust; which would highlight the importance of these positive 

organizational behaviors at workplace. With respect to the POB, the constructs of 

employees‘ happiness at work and their optimism about the work are selected 

and applied in the model. The proposed model would be beneficial to both 

academics by providing fruitful empiric research avenues and to practitioners by 

directing them in recruitment, training and career development processes. 

THEORETICAL BACKGROUND 

As Luthans (2002b) defines, POB is ―the study and application of 

positively oriented human resource strengths and psychological capacities that 

can be measured, developed, and effectively managed for performance 

improvement in today's workplace‖ (p.59). The construct encompasses many 

existing OB concepts from the domains of attitudes, personality, motivation, and 

leadership. The concepts that are identified and analyzed as most representative 

15

Varnali 

of the proposed POB approach are confidence/self-efficacy, hope, optimism, 

subjective well-being/happiness, and emotional intelligence. As Seligman and 

Csikszentmihalyi (2000) indicate, the levels of analysis can be summarized to be 

at the subjective level (i.e., positive subjective experience such as well being and 

contentment with the past, flow and happiness in the present, and hope and 

optimism into the future); the micro, individual level (i.e., positive traits such as 

the capacity for love, courage, aesthetic sensibility, perseverance, forgiveness, 

spirituality, high talent, and wisdom); and the macro group and institutional level 

(i.e., positive civic virtues and the institutions that move individuals toward better 

citizenship such as responsibility, altruism, civility, moderation, tolerance, and a 

strong work ethic). 

There is strong support for the argument that dispositional factors are 

related to job attitudes (Staw et al., 1986; Staw and Ross, 1985). Wrzesniewski et 

al. (1997) believe that it is important to understand the subjective experience of 

work; in other words, how individuals differ in their experience of the work they 

do. As Wrzesniewski et al. (1997) in their article point out employees‘ work 

value orientations can be categorized as being job, career or calling. This 

categorization is based on the work of Bellah et al. (1985). According to this 

categorization, people with job orientations focus on financial rewards and 

necessity rather than pleasure or fulfillment. For career oriented people, the focus 

is on advancement and those who have a calling orientation focus on enjoyment 

of fulfilling and socially useful work. In a more detailed manner, the authors 

characterized people with job orientations as the ones who are only interested in 

the material benefits from work. For these people the work is not an end in itself 

and their major interests and ambitions are not expressed through their work. 

Unlike job orientation, career orientation characterizes people with a deeper 

personal investment in their work and marks their achievements not only through 

monetary gain, but through advancement within the occupational structure. These 

people are also interested in higher social standing, increased power within the 

scope of one‘s occupation, and higher self-esteem for the worker. People with 

calling orientations, on the other hand, are characterized by their way of looking 

at the work. As to these people, their work is inseparable from their lives. These 

people view work not as a means for financial gain or career advancement, but 

instead for the fulfillment that doing the work brings to the individual. 

As James and Jones (1974) state, organizational culture or climate is the 

shared perceptions of what the organization is in terms of practices, policies, 

procedures, routines, and rewards that are applied in the organization. The 

definition also covers what is valued and what behaviors are expected and 

rewarded. Denison and Mishra (1995) suggest that organizational climate can be 

viewed as a means to improve organizational performance, individual 

satisfaction, the sense of certainty about how problems are handled, and other 

aspects of work life. Throughout the literature, the issue of positive 

organizational climate or culture has been studied. Martin (2004) argues that in 

order to increase satisfaction, motivation and productivity in the workplace, a 

positive organizational culture should be built and developed. 

16


In 1977, Organ introduced the term ―organizational citizenship behavior‖ 

(OCB) for the first time suggesting it to be a component of job performance. 

After a year, in 1978, Katz and Kahn argued that besides their prescribed roles, 

employees should engage in behaviors that go beyond formal obligations for 

effective functioning of organizations. The characteristics of OCB have evolved 

over the past two decades. There have been many modifications, additions, and 

enhancements since Smith et al. began exploring the topic in 1983 empirically. 

Organ has been an extremely influential pioneer on the topic of OCB. 

Organizational citizenship behavior (OCB) was defined by Organ (1988) as 

―individual behavior that is discretionary, not directly or explicitly recognized by 

the formal reward system, and that in the aggregate promotes the effective 

functioning of the organization‖ (p. 4). According to Diefendorff et al. (2002), in 

general OCBs differ from in-role performance in two main aspects. First, as 

stated by Organ (1997) unlike in-role performance, OCBs do not directly support 

the technical core but rather influence the social and psychological environment 

of organizations, which in turn influences the technical core. Second, OCBs are 

more discretionary and less constrained by work-process technology and other 

task features than in-role activities. Task performance is influenced by individual 

ability and work-process technology; on the other hand, OCBs are influenced by 

what individuals think and feel about their jobs (Organ and Ryan, 1995; Penner 

et al., 1997). Throughout the literature, many scholars who are interested in the 

topic of OCB have established different dimensions for OCBs. Examples of these 

dimensions include altruism, conscientiousness, civic virtue, sportsmanship, and 

courtesy (Brief and Motowidlo, 1986; Podsakoff et al.,1990). 

INTERRELATIONSHIPS OF THE CONSTRUCTS AND THE 

PROPOSITIONS 

In developing the conceptual model, Fredrickson‘s broaden-and-build 

theory is used. According to Fredrickson's theory, a number of positive emotions 

share the ability to broaden an individual's momentary thought-action repertoires 

through expanding the available array of the thoughts and actions that come to 

mind (Fredrickson, 1998, 2001; Fredrickson and Branigan, 2001) and these 

positive emotions support building the individual's personal resources. As 

Fredrickson (2001) suggests, this capacity to experience the positive is proposed 

to be central to one's ability to grow both mentally and psychologically. Similar 

to Fredrickson‘s broaden-and-build theory (2001), Wright (2005) has pointed out 

the contribution of positivity to building and developing psychological resources 

and consequently to enhancing job performance. Wright (2005) suggests that this 

perspective may be effective in conceptualizing, operationalizing, and testing the 

―happy worker-productive worker‖ thesis. 

Ramlall (2008) tested whether work will be a significant source of 

happiness if the environment is appropriate to the employee and the employee 

has the ability to shape the environment that will create the happiness. The author 

found out that work is a significant contributor to one‘s happiness and allowing 

employees to contribute in creating a positive environment results in higher 

17

Varnali 

levels of happiness among the workforce. Another significant factor contributing 

to an employee‘s happiness is one‘s level of optimism. It is figured out that being 

optimistic leads to an employee‘s satisfaction and commitment to the company, 

and even to the employee‘s happiness. Also in the same study, the researcher 

tested whether organizations with a more positive culture will provide an 

environment that enhances happiness, commitment, satisfaction, and ultimately, 

higher performance. Additionally, the author examined the extent to which 

employees‘ respective organizational cultures are perceived as positive and 

instrumental in creating an environment that fosters commitment to the 

organization, employee satisfaction, and happiness, and leads to higher individual 

and firm performance. The results showed a positive relationship between 

organizational culture and performance. 

Over the years, in many studies OCB and satisfaction are used as 

outcome measures. Prior studies investigated these constructs both independently 

and within a relationship. The possibility of a moderating effect of positive 

emotion on the job satisfaction-job performance relation has been studied several 

times (Fisher and Hanna, 1931; Locke, 1976). Studies conducted in the past 

support that positive personality traits and emotional stability (Judge et al., 1999), 

and positive affect (Ilies et al., 2006) are positively related to job satisfaction 

(Judge et al., 2001; Wright, 2005). Also, job satisfaction has been identified as a 

predictor of organizational citizenship behavior (Ilies et al., 2006; Konovsky and 

Organ, 1996; Organ and Konovsky, 1989; Organ and Ryan, 1995). In other 

words, job satisfaction and OCB would seem to be particularly relevant outcomes 

to be assessed in positivity research. 

The first set of propositions involves the three types of relations 

employees can have with work (Bellah et al., 1985). It is expected that people 

with calling orientation would be more satisfied with their jobs and therefore 

engage in OCBs more compared to those with career or job orientations. Besides, 

personal work orientation is expected to have a direct influence on employees‘ 

level of engagement in OCBs. Accordingly the propositions are: 

• P1a: Employees work orientations will directly influence their OCBs. 

• P1b: Employees with ―calling‖ work orientations are more willing to 

engage in OCBs than those with ―job‖ or ―career‖ orientations. 

• P2a: Employees work orientations will have an indirect effect on OCB 

through job satisfaction. 

• P2b: Employees with ―calling‖ work orientations will be more satisfied 

with their jobs than those with ―job‖ or ―career‖ orientations. 

In their study, Mercer and Bilson (1985) found out that there is a positive 

relationship between supportive organizational climate and employee outcomes 

such as organizational commitment and job satisfaction. Supportive 

organizational climate can be defined as the overall amount of perceived support 

employees receive from their immediate peers, other departments, and their 

supervisors. Perceived organizational climate is expected to have an impact on 

employees‘ personal work orientations. Additionally, in previous studies, 

supportive climate was found to be positively associated with both satisfaction 

18


and commitment. Specifically, it was figured out that employees who perceive 

the climate in their organizations to be more supportive are more likely to 

experience higher levels of psychological capital (PsyCap) which is a construct 

studied in the POB approach. Related propositions are: 

• P3a: Employees‘ perceived organizational climate will influence their 

personal work value orientations. 

• P3b: When employees perceive organizational climate as supportive, 

they will have ―calling‖ work value orientation. 


level of job satisfaction. 

• P4b: Supportive organizational climate will increase employees‘ level of 

satisfaction. 


level of engagement in OCBs. 

• P5b: Supportive organizational climate will increase employees‘ level of 

engagement in OCBs. 

Among various constructs that belong to the domain of POB, optimism 

about work and happiness at work are included in the conceptual model. These 

constructs are expected to influence the strengths of the proposed relationships 

and make them more robust and meaningful. Thus, they will have moderating 

effects as follows: 

• P6a: Job satisfaction will have a stronger effect on OCB for the 

employees who are more optimistic about their work. 

• P6b: Job satisfaction will have a stronger effect on OCB for the 

employees who are happier at work. 

• P7a: Personal work orientations will have a stronger effect on OCB for 

the employees who are more optimistic about their work. 

• P7b: Personal work orientations will have a stronger effect on OCB for 

the employees who are happier at work. 

• P8a: Perceived organizational climate will have a stronger effect on OCB 

for the employees who are more optimistic about their work. 

• P8b: Perceived organizational climate will have a stronger effect on OCB 

for the employees who are happier at work. 

19

Varnali 

THE PROPOSED MODEL 

Figure 1. The Proposed Conceptual Model 

In this conceptual model, the constructs of perceived organizational 

climate, personal work orientations, job satisfaction and OCB are demonstrated 

as interrelated constructs; and the two constructs representative of the POB 

approach, optimism about work and happiness at work are included as 

moderators that strengthen the aforementioned relationships when they exist. 

According to Martin Seligman (1998), the recognized pioneer of the positive 

psychology movement, optimism is viewed as an attributional style that explains 

positive events through personal, permanent, and pervasive causes and negative 

events through external, temporary, and situation-specific ones. Carver and 

Scheier (2002) suggest that, as a result of these attributional or explanatory style 

differences, optimists build positive expectancies that motivate their goal pursuit 

and approach coping behavior in the future. Optimism is created, motivated, and 

developed in relation to the pursuit of personally valuable goals which makes the 

construct relevant to the personal work orientations of employees. Optimism is 

included in the POB approach due to its supported positive relationship with 

performance in various life domains (Peterson and Barrett, 1987; Prola and Stern, 

1984), especially the workplace (Luthans et al., 2005; Luthans et al., 2007; 

Seligman, 1998; Youssef and Luthans, 2007). 

20


With respect to happiness at work, as Diener (2000) argues, happiness 

encompasses positive cognitions and emotions that result in subjective sense of 

well-being and general life satisfaction. There are several studies that have shown 

that happy individuals are successful across multiple life domains, including 

marriage, friendship, income, work performance, and health (Lyubomirsky et al., 

2005). It has been argued that the happiness-success link exists not only because 

success makes people happy, but also because positive affect engenders success. 

According to Wright (2005) well-being is the most relevant operationalization of 

happiness, which is also in line with positive psychology and its emphasis on 

health, well-being, flourishing, and actualizing one's potential. Luthans (2002b) 

suggests that well-being is related to the perception, emotional interpretation, and 

cognitive processing of events and situations rather than to actual conditions, 

which makes it particularly relevant to a broadened conceptualization of work 

related outcomes. 

Similar to ―happy worker-productive worker‖ thesis, there are many 

more studies elaborating on the relationship between employees‘ feelings and 

work-related outcomes. Wright and Cropanzano (2004) have found out that 

positive work behaviors have statistically significant relations to employee 

performance. Based on Fredrickson's broaden-and-build model, Wright et al. 

(2007) found that psychological well-being moderates the relation between job 

satisfaction and job performance. This finding is important to reach a conclusion 

for the inconsistent results of previous studies solely focusing on the job 

satisfaction-job performance relationship to explain the ―happy workerproductive 

worker‖ thesis. Recent empirical studies support the interaction 

between individual-level positive personality traits and states in predicting both 

the frequency and consistency of engaging in OCBs (Ilies et al., 2006). As 

Luthans et al. (2008) argue employees‘ psychological capital is positively related 

to their performance, satisfaction, and commitment and a supportive climate is 

related to employees‘ satisfaction and commitment. In their study, they have 

found out that employees‘ psychological capital mediates the relationship 

between supportive climate and their performance. 

Perceived organizational climate, personal work orientations and job 

satisfaction all have an impact on employees‘ level of engagement in OCBs. But 

in order to strengthen these relationships and have consistent results all over 

again, one should not solely focus on these relationships but also consider the 

moderating role of positive organizational behavior constructs like happiness at 

work and optimism about work. 

CONCLUSION 

The present paper proposed a conceptual model that places constructs of 

perceived organizational climate, work value orientations, job satisfaction, 

organizational citizenship behavior (OCB) and positive organizational behavior 

(POB) in a single and coherent framework which is hoped to be instrumental in 

better understanding of factors that contribute to desired work related outcomes. 

Prior research has also investigated the relationships among the constructs 

21

Varnali 

included in the proposed model; however, a unique contribution of the present 

article is that it adopts positivity approach in the formulation of the conceptual 

model. As Youssef and Luthans (2007) point out, positive psychology and its 

recent application to the workplace as POB simply attempts to emphasize the 

importance of positive constructs, such as positive affectivity (PA), positive 

reinforcement, procedural justice, job satisfaction and commitment, prosocial and 

organizational citizenship behaviors, core self-evaluations, etc. This paper 

specifically elaborates on the moderating role of two positivity constructs, 

optimism and happiness, on the relationship between perceived organizational 

climate and personal work orientations with job satisfaction and OCBs. As 

Ramlall (2008) suggests, since positiveness, happiness, and organizational 

outcomes are interrelated, leading scholars on POB believe that positiveness and 

happiness should preoccupy not only philosophers and psychologists, but also 

managers and organizational leaders. The proposed conceptual model would be 

beneficial to both academics by providing fruitful empiric research avenues and 

to practitioners by directing them in recruitment, training and career development 

processes. One may get the impression that, it is commonsense to include POB 

constructs in the model. However, the ―happy worker-productive worker‖ thesis 

has been falsified many times throughout the literature; thus the commonsense 

issues should not be taken for granted and should be subjected to empirical 

testing. 

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Workplace: The Impact of Hope, Optimism, and Resilience. Journal of 

Management, 33 (5), pp.774-800. 

25



THE EQUITY IN ATHLETICS DISCLOSURE ACT AND 

THE ACCOUNTING INFORMATION: IS 

INFORMATION RESULTING IN MORE EQUITY 

Carol Sullivan 

Texas Wesleyan University 

ABSTRACT: The purpose of this study is to examine whether the new 

accounting information has been effective in creating more equity for women in 

collegiate athletics as well as to offer some ways to improve financial 

information communication for the new NCAA ―Dash Board‖ financial analyses. 

The basic conclusion of this research is that the accounting information 

disclosure requirements of the Equity in Athletics Disclosure Act has indeed 

improved the substantive proportionality overall. EADA financial reporting 

requirements have created metrics for enforcement Title IX. Analyses from this 

study can also be used to provide important information for the NCAA‘s new 

―Dash Board‖ financial information. This information may be useful as 

institutions/athletic directors/coaches are required to make managerial decisions 

to create more equity in their athletic programs. 

INTRODUCTION 

Title IX is important educational equity legislation for women because it 

prohibits gender discrimination under any educational program or activity 

receiving federal financial assistance. However, the enforcement of this 

regulation has been marginal at best. In 1994, the Equity in Athletics Disclosure 

Act was legislated as a way to provide more measurement and accountability for 

Title IX regulation related to National Collegiate Athletic Association (NCAA) 

sports. The purpose of this study is to examine whether the new accounting 

information has been effective in creating more equity for women in collegiate 

athletics as well as to offer some ways to improve financial information 

communication for the new NCAA ―Dash Board‖ financial analyses. 

This research is primarily motivated by Joel Demski‘s admonitions in his 

2007 Accounting Horizon‘s article, ―Is Accounting an Academic Discipline‖ 

Some themes found in this article are 1) innovation is close to nonexistent with 

accounting research, 2) few researchers actually ―touch‖ the data, and 3) virtually 

no issue in accounting would exist were it not for management‘s behavior. Dr. 

Demski ends the article by encouraging people, ―Don‘t play the game, redefine 

the game‖. This encouragement motivated this research because not one article 

could be found about the Equity in Athletics Disclosure Act (hereafter, EADA) 

in the course of reviewing both the accounting literature and ABI Inform despite 

its importance in terms of education. 

Another motivating factor for the research is Hunter‘s (2008) ―Ethics: 

The Framework for Success‖ article. He questions whether people can replace an 

26


emphasis of ‗succeeding at all costs‘ with ‗succeeding the right way‘. In this 

article, Hunter discusses Santa Clara University‘s ―Framework for Thinking 

Ethically‖ and encourages decision makers to 1) be sensitive to ethical issues, 2) 

explore ethical aspects of a decision, 3) weigh the considerations that impact a 

course of action, and 4) have the moral courage to make the right ethical choice. 

Title IX is an ethical issue for many people (both men and women) that 

are involved with it. Yet agency theory often impedes the social justice element 

of this regulation because there is such an emphasis on the men‘s athletic 

programs to excel in higher education. Jenson and Meckling (1976) describe the 

problem when there is a significant difference between the principal‘s interest 

and the agent‘s interest. The Title IX application of this theory is that society 

members (or at least United States legislators) have deemed that women should 

be provided the same educational opportunities as men by passing this equal 

rights legislation. While society serves as the principal in this situation, athletic 

directors and football coaches (and perhaps other male sport coaches as well) are 

the agents whose interest involves creating winning teams and keeping their jobs. 

Spreading economic resources to the women‘s sports may decrease their 

effectiveness and jeopardize their teams‘ chance for success and/or their jobs. 

Will these athletic directors/coaches act in their own best interests or will they 

adhere to the regulation to create educational equity 

Two more important accounting articles are the accounting literature 

review foundation for this research. Kren and Liao (1988) reviewed the 

accounting literature for evidence related to the role of accounting information in 

the control of organizations. Their conclusion was that the role of the information 

system was critical because the accounting system is often the ―primary source of 

both decision-facilitating and decision-influencing activities‖. Finally, Kaplan 

and Norton (1992) is important research related to using a ―balanced scorecard to 

identify, communicate, and implement strategy within an organization‖. While 

many people involved with university athletics are very focused on win-loss 

records, the motivation for this research is to get people more interested in 

broader societal benefits of college sports as well as examine whether new 

accounting information has helped identify and communicate deficiencies with 

Title IX compliance. With that information, institutions and individuals can 

better implement strategies for better equity and compliance with Title IX. 

BACKGROUND LEGISLATION AND TITLE IX 

Legislation related to better equity had been a part of regulatory activity; 

however, the Title IX legislation has its own place in history for women. Title VI 

of the Civil Rights Act of 1964 prohibited discrimination in federally assisted 

programs, but only on the basis of race, color, and national origin – not gender. 

More equity was regulated with Title VII of the Civil Rights Act whereby 

discrimination in employment on the basis of race, color, religion, national 

origin, and sex was prohibited – but it excluded educational institutions. The 

Equal Pay Act prohibited salary discrimination on the basis of gender, but 

excluded professional and administrative employees like professors and coaches. 

27

Sullivan 

Finally, the 14 th Amendment of the Constitution provides all persons ―equal 

protection under the laws‖, but the Supreme Court had never ruled in favor of 

women for any case involving women in education before the Title IX 

legislation. One example of the educational environment for women during the 

1960‘s was that the state of Virginia denied admission to over 21,000 female 

applicants to its higher education institutions over a 3-year period of time while 

no men were denied admission during this same period – this imbalance was 

considered legal. 

Title IX of the Education Amendments of 1972 to the 1964 Civil Rights 

Act states that ―no person in the United States shall, on the basis of sex‖ 

- Be excluded from participation in, 

- Be denied the benefits of 

- Be subjected to discrimination 

under any education program or activity receiving Federal financial assistance.‖ 

While most people think of this legislation in terms of social justice for athletics, 

it was actually intended to address civil rights and access to all educational 

programs. 

The applications of Title IX legislation involve three main areas: 1) 

participation – women are provided an equitable opportunity to participate in 

sports, but not necessarily with the identical sports, 2) scholarships – if there is a 

$200,000 scholarship budget, then the budget must be split equally for the same 

number of athletes involved, and 3) other benefits – equal treatment in terms of 

equipment, scheduling, travel allowances, tutoring access, coaching, locker 

rooms and other facilities, medical care, publicity, recruitment, and support 

services. 

During the Bush administration, the Title IX legislation was weakened 

with some ―clarifications‖ from the Department of Education in 2005. A ―Three- 

Prong‖ Test was used to test for compliance: 1) participation substantially 

proportionate to respective rates of male/female enrollments, 2) a demonstration 

of history and continuing practice of program expansion for the underrepresented 

sex, and 3) a survey that shows that the institution ―fully and effectively 

accommodates the interests and abilities of the underrepresented sex.‖ 

THE EQUITY IN ATHLETICS DISCLOSURE ACT OF 1994 

―Twenty years is too long to wait for enforcement of a new law passed 

by Congress. It is clear that neither the NCAA nor colleges are going to do the 

right thing anytime soon‖, said Representative Cardiss Collins. As Chairwoman 

of the House Energy and Commerce Subcommittee on Commerce, Consumer 

Protection, and Competitiveness), Representative Collins introduced H.R. 921 

(Equity in Athletics Disclosure Act) on the same day. It was modeled after the 

Student Right to Know Act and required disclosure of both participation rates by 

gender as well as financial information also delineated by gender. 

This Equity in Athletics Disclosure Act (EADA) legislation was very 

controversial and many schools did not comply with the new disclosure 

28


mandates. In Sullivan‘s (2002) research with the EADA financial reports, 

numerous accounting errors were detected. A more recent investigation by The 

USA Today (2005) also found that 1/3 of the 2003-04 revenue and expense 

reports contained errors too. A call for more accountability was a theme of both 

projects. 

The Government Accountability Office (GAO) became involved in 2007 

by studying recent trends in teams and participants in NCAA Sports. They found 

that there had been significant gains in the number of women‘s teams while the 

men‘s teams showed mixed or small numbers of changes. The GAO also found 

that women‘s participation increased, but that men‘s participation levels were 

greater in both absolute terms and relative to their respective enrollments. 

The purpose of this current study is to examine participation rates and 

financial information provided by the EADA reports more deeply than the 

GAO‘s most recent study. Relating this information to both the accounting 

literature (managerial behavior, agency theory, and the balanced scorecard) and 

regulatory literature is a goal of the study. The theme that the information system 

is critical for decision-influencing behavior is also important with the EADA 

information provided by the institutions. 

RESEARCH QUESTIONS AND METHODOLOGY 

The research questions to be studied with the project are as follows: 

1) Have institutions complied with Title IX regulations more effectively 

since the Equity in Athletics Act (EADA) reports have been required 

2) Are there any systematic areas of compliance or noncompliance based 

on the participation rates analyzed by conference, states, divisions, 

and schools 

3) Is there a difference between the schools that have been reporting their 

EADA information since 1996 and the schools that started reporting 

in 2002 

The research methodology involves gathering regulatory compliance 

data with EADA reports first. This data is collected by the Department of 

Education and then put into a database. This database information is then 

published on the Chronicle of Higher Education website. For this project, data 

related to the participation rates were collected from 974 colleges and 

universities. Longitudinal information from the 1996-1997 is used when 

available and the last year of data is the 2006-2007 academic year. 

RESULTS 

Overall Trends: An analysis of average substantive proportionality and 

the trend was conducted. Substantive proportionality is based on the proportion 

of female/male athletes to the proportion of female/male students attending the 

school. For example, if the proportion of female/male students is 40%/60% and 

the proportion of female/male athletes is 25%/75%, then the substantive 

proportionality would be -15%. The information related to aggregate results is 

summarized in Table 1. 

29

Sullivan 

Table 1 – Overall Results of Substantive Proportionality for All Schools 

1996 1997 1998 1999 2000 2001 2002 

-14.57 -13.85 -13.88 -11.18 -10.74 -10.48 -14.64 

2003 2004 2005 2006 Average Trend 

-13.17 -13.04 -12.97 -12.88 -13.74 -2.09 

Of the 974 schools, there were 630 decreases in substantive 

proportionality, 343 increases, and one school remained the same. The average 

imbalance decrease for each institution over the periods was 2.09%. Please note 

how the imbalances were decreasing significantly until 2002 and then there was a 

spike in results. This spike reflects a group of schools that did not report until 

2002 and their imbalances tend to be higher. More information related to this 

spike will be reported as the third research question is investigated. While 

hypothesis testing has not been done, the results seem to indicate that the Equity 

in Athletics Disclosure Act reports do effectively create more gender equity 

compliance at the institutions. 

Systematic Areas of Compliance and Noncompliance: Summary 

descriptive results are used to provide information related to systematic areas of 

compliance and noncompliance by conference, by states, and by individual 

schools. These determinations were made by first calculating overall averages 

during the entire period for each school and then averaging the results by 

conference and states. 

Preliminary results for the 10 conferences with the smallest substantive 

proportionality imbalances as compared to the 10 conferences with the largest 

substantive proportionality imbalances are found in Table 2. 

As one can quickly notice, there is a big gap between the overall 

substantive proportionality among these conferences. It is hard to believe that the 

conferences with such large imbalances are seriously trying to comply with Title 

IX regulations because these numbers represent multiple team results over a 

number of years. There is a possibility that these imbalances are caused by 

cultural disinterest among women in a particular area; therefore, analysis of 

substantive proportionality by state is conducted. 

Preliminary results for the 10 states with the smallest substantive 

proportionality imbalances as compared to the 10 states with the largest 

substantive proportionality imbalances are found in Table 3. 

While many of the smallest imbalance states are in the New England 

area, it is interesting to note that some areas of the country have different 

substantive proportionality than their respective geographic conferences. For 

example, schools in the Atlantic Coast conference (a conference with small 

imbalances) may be at a competitive disadvantage because the overall state of 

North Carolina has a much larger imbalance. The last set of analyses related to 

systematic areas of compliance and noncompliance is with the individual 

schools. 

30


Table 2 – Conferences with Smallest Imbalances vs. Conferences with the 

Largest Imbalances 

Smallest Imbalance Amount Largest Imbalance Amount 

Conferences 

Conferences 

New England Women & -3.06 Mid-America 

-25.57 

Men‘s 

Intercollegiate 

California Collegiate -4.13 Gulf South Conference -24.43 

Athletic 

Liberty League -4.51 South Atlantic Conference -24.10 

Big 10 -4.75 Lone Star Conference -22.48 

Patriot League -4.87 Great South Athletic -22.16 

Conference 

Big West -5.15 Southwestern Athletic -22.06 

Conference 

North Athletic Conference -5.70 Southern Intercollegiate -22.00 

Conference 

America East Conference -5.78 Mid-Eastern Athletic -21.69 

Conference 

Atlantic Coast Conference -6.04 Northern Athletics -21.67 

Conference 

Ivy League -6.34 Central Intercollegiate 

Conference 

-21.09 

Table 3 – States with Smallest Imbalances vs. States with the Largest 

Imbalances 

Smallest Amounts 

Largest Amounts 

Imbalance States 

Imbalance 

States 

Vermont -4.98 Mississippi -22.09 

Nevada -5.42 South Dakota -21.61 

Wyoming -5.76 New Mexico -20.47 

Utah -7.35 Arkansas -20.12 

California -7.72 Louisiana -19.41 

New Hampshire -7.81 Alabama -19.05 

Washington -8.18 Oklahoma -18.71 

Montana -8.85 Georgia -18.45 

Maine -9.08 North Carolina -17.74 

Rhode Island -10.17 Iowa -17.68 

31

Sullivan 

Longitudinal data of substantive proportionality results from each 

individual institution was averaged for the analyses by colleges or universities. 

The 10 schools with the smallest imbalances as compared to the 10 institutions 

with the largest imbalances are summarized in Table 4. 

Table 4 – Schools with Smallest Imbalances vs. Schools with the Largest 

Imbalances 

Smallest 

Amounts Largest Imbalance Amounts 

Imbalance Schools 

Schools 

Daniel Webster College + 9.22 U. of Mary-Hardin -38.68 

Baylor 

Lesley University + 9.28 Winston-Salem State -37.18 

University 

Polytechnic University +10.05 University of West -34.78 

Alabama 

NJ Institute of Technology +10.79 Presentation College -34.63 

Stevens Institute of +13.86 Valdosta State -34.62 

Technology 

Florida Institute of +14.34 University of West -34.05 

Technology 

Georgia 

Wentworth Institute of +14.35 Carson-Newman College -33.78 

Technology 

MA Maritime Academy +15.35 Rivier College -33.63 

Penn State - Erie +17.40 Upper Iowa University -33.32 

Utah Valley State College +17.78 Missouri Western State 

University 

-32.95 

The biggest finding with respect to these comparisons is that there seem 

to be big differences among schools in terms of substantive proportionality and 

that is a reflection of their compliance/noncompliance with Title IX. 

Analysis of Fully Disclosed EADA Information vs. Partially Disclosed EADA 

Information 

The final research question relates to Kren and Liao‘s (1988) research 

that asserts that the accounting system is a primary source of both decisionfacilitating 

and decision-influencing activities. As the data was being collected, it 

was interesting to note that some schools reported information from the first year 

of required reporting, 1996. Other schools waited until 2002 for some reason. 

While a hypothesis is not formally tested in this paper, overall substantive 

proportionality averages were calculated and a comparison is made. The results 

are found in Table 5. 

From these results, it seems like some schools who reported their EADA 

information from the first year of required disclosure (1996) either had lower 

imbalances in the first place and were more willing to disclose the information or 

they made decisions over the course of time to decrease the imbalances. More 

32


analyses is necessary to determine if there are any significant differences 

between the institutions that fully disclosed their EADA information and the 

schools that only partially disclosed the information. 

Table 5 – Average Substantive Proportionality: Full vs. Partial Disclosure 

Schools 

Type of Disclosure 

Substantive Proportionality 

Full -10.97 

Partial – results were not submitted 

-15.04 

until 2002 

LIMITATIONS AND CONCLUDING REMARKS 

One important limitation for the research involves the ―garbage-in, 

garbage-out‖ problem often associated with data. If the data found in the EADA 

reports are in error, then the results of these analyses may also be in error. Since 

reliability of accounting information is considered to be very important in other 

areas of financial reporting, one hope is that the athletic departments will allow 

accountants to get involved with activities and receive benefits of their expertise. 

Another limitation for the study involves the third prong for the ―Three- 

Prong‖ test – are the women who go to college really interested in also playing 

sports Would they be interested in getting involved in sports (i.e., gymnastics, 

figure skating, dance, and cheerleading) that are not currently being offered by 

these institutions Or, are there other women athletes that never attend college 

because the programs were not in place and there were no scholarship 

opportunities Will financial incentives actually produce compliance with Title 

IX goals or is there some inherent limitation associated with women‘s 

participation at the university level 

The basic conclusion of this research is that the accounting information 

disclosure requirements of the Equity in Athletics Disclosure Act has indeed 

improved the substantive proportionality overall. EADA financial reporting 

requirements have created metrics for enforcement Title IX. Analyses from this 

study can also be used to provide important information for the NCAA‘s new 

―Dash Board‖ financial information. This information may be useful as 

institutions/athletic directors/coaches are required to make managerial decisions 

to create more equity in their athletic programs. 

REFERENCES 

- (2008), ―Teaching Title IX and Gender Equity Concepts‖, NCAA PowerPoint 

Slides, to be found at http://www.ncaa.org/titleix. 

- (2007), ―Intercollegiate Athletics: Recent Trends in Teams and Participants in 

National Collegiate Athletic Association Sports‖, GAO Report -07-535. 

- (2008), Sports Spending and Gender Equity Database, Chronicle of Higher 

Education, to be found at http://chronicle.com/stats/genderequity. 

33

Sullivan 

- (2005) Congress tackles sports issues. USA Today, p. 8 found on EBSCO Host. 

Blum, D. (1995, December 8). U.S. issues final rules for comparing treatment of 

men's and women's sports. Chronicle of Higher Education, 42(15), A36. 

Burton Nelson, M. (1991), Are We Winning Yet How Women Are Changing 

Sports and Sports are Changing Women, Random House. 

Burton Nelson, M. (1999), Embracing Victory: Life Lessons in Competition and 

Compassion, Avon Paperbacks. 

Burton Nelson, M. (2004) We Are All Athletes: Bringing Courage, Confidence, 

and Peak Performance into Our Daily Lives, Dare Press. 

Budde, J. (2007) ―Performance Measure Congruity and the Balanced Scorecard‖, 

Journal of Accounting Research, Vol. 45, No. 3, p. 515-539. 

Campbell (2008), ―Nonfinancial Performance Measures and Promotion-Based 

Incentives‖ Journal of Accounting Research, Vol. 46, No. 2, p.297-332. 

Christenson, J. and J. Demski (2007), ―Anticipatory Reporting Standards‖, 

Accounting Horizons, Vol. 21, No. 4, p. 351-370. 

Demski, J. (2007) ―Is Accounting an Academic Discipline‖, Accounting 

Horizons, Vol. 21, No. 2, p. 153-157. 

Grant, T. and Grant, G. (2008), ―Can Regulations Curb Excessive Executive 

Pay‖, Strategic Finance, September 2008, p. 31. 

Hogarth, R. (1993), ―Accounting for Decisions and Decisions for Accounting‖, 

Accounting, Organizations, and Society, Vol. 18, No. 5, p.407-424. 

Hunt III, H. and Hoglar, R. (1993), ―An Institutional Analysis of Accounting 

Growth and Regulation in the United States‖ Accounting, Organizations, 

and Society, Vol. 18, No. 4, p.341-360. 

Hunter, S. (2008), ―Ethics: The Framework for Success‖, Strategic Finance, 

April 2008. 

Jenson and Meckling (1976), ―Theory of the Firm: Managerial Behavior, Agency 

Costs, and Ownership Structure‖, Journal of Financial Economics, 

October 1976, p.305-360. 

Kaplan, R. and D. Norton (1992), ―Using the Balanced Scorecard as a Strategic 

Management System‖, Harvard Business Review, p. 71-9. 

Kren and Liao (1988), ―The Role of Accounting Information in the Control of 

Organizations: A Review of the Evidence‖, Journal of Accounting 

Literature, p.280-309. 

Kuehn, K. (2008), ―Seven Habits of Strategic CFOs‖, Strategic Finance, 

September 2008, p. 27 

34


Peters, J. (1993), ―Decision Making, Cognitive Science, and Accounting: An 

Overview of the Intersection‖, Accounting, Organizations, and Society, 

Vol. 18, No. 5, p.383-405. 

Staurowsky, E. (2003, February 14). The Title IX Commission's Flawed Lineup. 

Chronicle of Higher Education, 49(23), B20.Sullivan, C. (2002), 

"Collegiate Athletics: Higher Education, Big Business, or Money Pit" 

Federation of Business Disciplines Conference proceedings, March, 2002. 

Wasley, P. (2005, October 28). Widespread errors in gender-equity reports 

compiled by colleges under the Equity in Athletics Disclosure Act remain 

largely ignored by the U.S. Department of Education, USA Today 

reported last week. Chronicle of Higher Education, 52(10), A54-A54. 

35



VIRTUE AS A FOUNDATIONAL ELEMENT IN 

GLOBAL BUSINESS EDUCATION 

Mark W. McCloskey 


ABSTRACT: This article examines the relationship between the ancient, 

cardinal virtues and effective business leadership in a 21 st century global context. 

Empirical research, the numerous ethical failures of business leaders, and recent 

catastrophic events in the global economic system highlight the critical 

importance of ethical concerns like financial transparency, and personal and 

corporate integrity. Additionally, recent literature argues that business leaders, 

who draw from a fund of personal integrity and infuse their companies with an 

ethical culture afford their company a competitive advantage. In spite of the 

emerging consensus around the critical importance of virtue to sustained business 

success, there remains considerable confusion as to what is meant by virtue, how 

virtue relates to the practice of business, and how best to teach virtue to business 

leaders. This paper provides a working definition of virtue, explores the seven, 

historic cardinal virtues (faith, hope, love, prudence, justice, fortitude and 

temperance), and illustrates how each contributes to effective business 

leadership. It is argued that a virtue-oriented curriculum is well suited to equip 

business leaders for effectiveness in a global context. 

INTRODUCTION: DOES VIRTUE MATTER 

There is a heightened interest in virtue, especially as it relates to leading 

in the public sphere. The National Leadership Index 2006 (Pittinsky et al., 2005) 

found that more than seven in ten Americans agree or strongly agree that there is 

a leadership crisis in America today. Americans say they have more than a 

moderate amount of confidence in only two of the 11 sectors of American 

society: the military and medicine. All other sectors of leadership, including 

business, fail to win even a moderate amount of confidence. Noted UCLA 

professor and ethicist James Q. Wilson (1995) has argued that the concerns of 

personal virtue and many of the crucial public policy issues of our day are 

inseparably linked. ―In the long run,‖ observes Wilson, ―the public interest 

depends on private virtue‖ (p. 23). Even the National Football League is placing 

an emphasis on character. As NFL Commissioner Roger Goodell reflected, 

―From here on forward, I wonder if there will be as many (risky) character guys 

coming out of college…. Character could cost you millions and millions of 

dollars‖ (Seeholzer, 2007). 

The recent business literature has increasingly made the case that virtue 

(integrity and moral character) is good for business. Publications like The 

Journal of Business Ethics and Business Ethics Quarterly are devoted to the 

application of ethics in the workplace. Popular books devoted to character and 

ethics in the workplace have been published in the last decade (see Badaracco, 

36


1997; Cloud, 2006; Collins, 2001a; Newton, 2006; Terris, 2006). The literature 

also argues that moral corruption, greed and the abuse of power diminish the 

effectiveness of business organizations (Englebrecht et al., 2005; Garofalo, et al., 

2001; Koehn, 1998, 2001). 

WHAT SHOULD WE EXPECT FROM BUSINESS LEADERS 

Barbara Kellerman, (2004) research director of the Center for Public 

Leadership at Harvard‘s John F. Kennedy School of Government, gives voice to 

our collective ambivalence about the relationship between virtue and leadership. 

She notes that while we want to believe that good leaders are ―persons of merit, 

or at least of good intentions, it almost seems that by definition bad people 

cannot be good leaders‖ (p. 41). She argues, however, that while the leadership 

literature is fixated on ―blemish free‖ leaders the reality is that our leaders are 

flawed human beings. 

It is impossible to deny that bad or at least unworthy people 

often occupy and successfully fill top leadership positions, and it 

is high time leadership experts acknowledge the 

fact…Capricious, murderous, high-handed, corrupt, and evil 

leaders are effective and everywhere—except in the literature of 

business leadership (p. 42, 43). 

Kellerman traces this trend to James MacGregor Burns‘ 1978 work 

Leadership, which, she notes, assumes that ―to be a leader is, by definition, to be 

benevolent‖ (p. 44). Kellerman does us a service by reminding us that we cannot 

remain willfully blind to the realities of the human condition. Leadership, at 

least as the literature has conceptualized it over the last two decades, leaves little 

room for human frailty, doubts, mistakes, confusion or limitations. But, her 

affirmation that ―leadership is not a moral concept‖ (p. 45) bears scrutiny. While 

she may be technically correct, (depending on one‘s definition of leadership), we 

have learned the hard way that a leader‘s virtue does indeed matter. The mere 

mention of Enron, Arthur Anderson, 3Com and Global Crossing evoke images of 

catastrophic ―virtue failure‖ on the part of top leaders. 

THE ANCIENT FOUNDATIONS OF VIRTUE 

Plato (428-347 BC) and Aristotle (384-322 BC) created much of our 

vocabulary of virtue. Specifically, they embraced prudence (practical wisdom), 

justice (fairness), fortitude (courage), and temperance (moderation) as the moral 

bonds of civic life. For them, virtue was no mere philosophical consideration. 

Rather, virtue was understood in terms of concrete actions that were visible and 

useful for the community. It is noteworthy that the English term virtue, from 

which we derive virile and valor, is from the Latin virtus meaning ―strength.‖ In 

this sense, virtue is moral strength placed in service of others. The Greeks 

viewed virtue as a concrete moral force, the capacity to do something ―good‖ and 

to keep doing it over time. (Our term ethics comes from the Greek ethos 

37

McCloskey 

meaning habit). Virtue was so ingrained in a person‘s responses to life that they 

were moral reflexes flowing almost automatically from one‘s essential nature, 

governing one‘s intellect, will and emotions. Virtue was not a given of birth or 

instinct, but must be learned and reinforced (hence, education centered on 

training in virtue). 

The other great source of virtue language is Judeo-Christian, especially 

the virtues of faith, hope and love emphasized by St. Paul. Thomas Aquinas 

(1989) integrated the four Greek virtues with these ―theological virtues‖ and 

called them ―cardinal virtues.‖ The term cardinal comes from the Latin cardo 

meaning a ―hinge‖ and so the fixed moral point on which all other virtue turns. 

These seven virtues flowed together into a moral amalgam that shaped 

theological, educational and civic life in Western Europe for almost fifteen 

centuries. 

A 20TH CENTURY DETOUR 

The conversation around virtue took a surprising turn early in the 20th 

century when Gordon Allport, the one-time president of the American 

Psychological Association and one of the most influential psychologists of the 

last century, almost single-handedly banished the terms ―character‖ and ―virtue‖ 

from the academic discourse (Nicholson, 1998). Allport (1921, 1927) correctly 

recognized that character and virtue are value-laden concepts and thus by his way 

of thinking a ―messy business.‖ As he put it, morality introduces an ―extra and 

uncertain variable‖ into the empirical study of personality. Accordingly, he 

replaced the idea of moral character with the concept of value-neutral ―traits of 

character‖ or ―personality characteristics.‖ Allport (1927) argued that human 

behavior was best understood as a manifestation of the individual‘s ―habit 

system‖ composed of traits that prompted certain kinds of behaviors. Because 

character was a value-laden construct, it was relegated to the realm of 

philosophers and religious leaders, while the empirical community focused on 

the study of personality traits to the neglect of virtue and moral character. 

THE RESURGENCE OF VIRTUE 

As empirical social science was banishing virtue from its vocabulary, 

moral philosophers, especially those devoted to the study of virtue ethics kept the 

concept of virtue alive. Virtue ethicist Elisabeth Anscombe (1958) called for a 

return to an Aristotelian approach to such ideas as ―good‖ and ―bad,‖ human 

nature, motives, moral character, virtue and human flourishing. Her ideas served 

as a stimulus for the work of Alasdair MacIntyre (1984), Rosilind Hursthouse 

(2001) and Philippa Foot (2003). Virtue ethics is alive and well in religious 

traditions and has recently found traction in works on business ethics (see 

Maitland, 1997; Boatright, 2000; Rae & Wong, 2004). 

In 1998 a watershed moment occurred in the field of psychology when 

University of Pennsylvania psychologist Martin Seligman delivered his 

presidential address to the American Psychological Association. Seligman‘s 

speech launched the positive psychology movement, which seeks to empirically 

38


study the conditions under which human flourishing takes place. The movement 

places emphasis on human strengths like optimism, courage, future-mindedness, 

hope, faith and honesty. Seligman (2005) calls these human strengths ―virtues,‖ 

in effect, reversing almost seven decades of value-neutral language in the 

empirical study of traits. 

The literature is consistent with this renewed emphasis on virtue, arguing 

that business leadership is an inherently ethical pursuit. Effective leaders adhere 

to high ethical standards and behave in ways congruent with those standards 

(Parry & Proctor-Thomson, 2002). Moral integrity, conceptualized as a character 

of uncorrupted virtue (Montefiore & Vines, 1999), and leadership performance 

are inseparably bound in the eyes of followers (Kouzes & Posner, 1993; 

Engelbrecht, et al., 2005). The leadership characteristics most valued by 

followers, as well as other stakeholders, are honesty, integrity and truthfulness 

(Kouzes & Posner, 1987, 1993). Ethical behavior on the part of leaders 

contributes to employee commitment and satisfaction, and attracts and retains the 

best employees (Trevino et al., 2000). Integrity on the part of leaders fosters 

trust and ―good citizenship‖ behaviors on the part of employees, which in turn 

contributes to the effectiveness of the organization (Organ & Ryan, 1995). 

VIRTUE IN A GLOBAL CONTEXT 

The last two decades have seen a resurgence of literature agreeing with 

the classical Greeks that virtue is constitutionally grounded—part of human 

nature, and thus universal and not merely contextual. As MacIntyre argues in 

After Virtue (1984), ―the Aristotelian moral tradition is the best example we 

possess of a tradition whose adherents are rationally entitled to a high measure of 

confidence in its epistemological and moral resources‖ (p. 277). Hursthouse 

(2001) argues for a single set of character traits that are ―natural‖ to human 

beings, and that if present in individuals and societies, contribute to the welfare 

and functioning of the group or community. Hofstede (1980,1997) argues that 

friendship, love, ownership, work, and fairness in exchange are universal values 

found in diverse cultures around the globe. And with reference to vice, it is of 

note that Garofalo et al. (2001) fount that corruption is universally acknowledged 

as such. 

Peterson and Seligman (2004) make a persuasive case for the global 

relevance of virtue. On the basis of extensive historical and cross-cultural 

reviews, the authors present a classification of six primary virtues and 24 

character strengths. They note that these ―High Six‖ virtues are ―ubiquitously 

recognized and valued‖ across time and across cultures, such that they border on 

the universal. The six are wisdom, courage, humanity, justice, temperance and 

transcendence‖ (p. 15). These virtus (remarkably similar to the cardinal virtues) 

must be present at ―above threshold‖ levels for an individual to be deemed of 

―good character.‖ The ubiquitous nature of virtue does not mean that virtue is 

similarly expressed in diverse cultural contexts. According to Rachels (1999), 

while the application of virtue may differ from culture to culture, the fact of 

virtue does not. 

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Even in the most disparate societies, people face the same basic 

problems and have the same basic needs…it may be true that in 

different societies the virtues are given somewhat different 

interpretations, and different sorts of actions are counted as 

satisfying them: and it may be true that some people, because 

they lead particular sorts of lives in particular sorts of 

circumstances, will have need of some virtues more than others. 

But it cannot be right to say simply that whether any particular 

character trait is a virtue is never anything more than a matter of 

social convention. The major virtues are mandated not by social 

convention but by the basic facts about our common human 

condition (pp. 186-187). 

Consequently, while the concept of virtue is ubiquitous, the social 

customs and practices through which they are expressed may vary considerably 

(Clegg & Redding, 1990; Steidlmeier, 1995). 

THE CARDINAL VIRTUES AND BUSINESS LEADERSHIP 

Prudence: The human capacity to perceive reality is limited and skewed. 

Prudence at least partially corrects for this. Prudence is a combination of 

foresight, humility and rationality put in service of ―the good.‖ Prudence is 

manifested in four dimensions. First, prudence is displayed in practical 

discernment. Prudence sees. It enters circumstance with ―eyes wide open.‖ It is 

the virtue of realism, objectivity and insight, especially in unexpected or 

unprecedented circumstances. Prudence shines in situations lacking rulebooks, 

and where decisive action must be taken. Second, prudence is humble in that it 

recognizes its limits and seeks to learn from others. The prudent person is openminded 

and recognizes the diverse and complex nature of reality. Third, 

prudence is a fitting response to the demands of reality set before us. According 

to Pieper (1966), ―Prudence implies a transformation of the knowledge of truth 

into decisions corresponding to reality…‖ (p. 162). The prudent person 

recognizes that a particular course of action is the right, worthy and noble thing 

to do. Fourth, prudence is future oriented. Our term prudence is related to the 

Latin providentia, which means foresight. The prudent person is forward 

looking. He or she anticipates whether a course of action will achieve a 

particular end and respects the future state that one‘s decisions and actions will 

likely cause. 

Prudence shines in the volatility, uncertainty, complexity and ambiguity 

that mark the global business context. Global leaders must stay effective in a 

variety of situations, none of which is exactly alike, and few of which call for 

―pre-packaged‖ responses based on formal rules. They must make sound 

decisions in contexts full of contingency, constraint, obstacles, opportunities, 

competing interests, unprecedented change, novel circumstances and systemic 

change. Prudent business leaders get to the bottom of ―what‘s going on here,‖ 

40


and choose a course of action that is fitting and appropriate for the situation. 

They are realistic. They respond to things as they are, not as they wish them to 

be, or mistakenly perceive them to be. They make sound decisions. They balance 

the pursuit of long-term goals with the necessities of the moment, and harmonize 

the conflicting goals and expectations of various segments of the company— 

employees, customers, shareholders and other constituents. They see the critical 

variables in a situation, translate what they see into a plan of action, and execute 

the plan of action in the midst of fluid circumstances. They are future-oriented. 

They recognize what constitutes a good outcome and what does not, and act in a 

manner that avoids the one and secures the other. And perhaps most importantly, 

prudent leaders adopt a humble, learner‘s stance toward life and the business 

enterprise—an exceptionally valuable asset in a global marketplace. 

Lacking prudence, the leader‘s good intentions may be undermined by 

thoughtlessness, insensitivity, shortsightedness, or self-centeredness (the 

assumption that others probably want and like what I want and like). The leader 

who lacks prudence may be mistaken as to what is beneficial or harmful in a 

particular situation. In a global leadership context full of contingency and 

competing agendas, the immediate imperative for the business leader is ―be 

prudent.‖ 

Justice: Justice governs the relationship of individuals to one another, 

individuals to the community, and the community to individuals. Justice carries 

the ideas of fairness, equality, equity and proportionality, especially in one‘s dayto-day 

dealings with ―neighbors.‖ Justice involves the willingness to take into 

account the rights, concerns and feelings of others. It is the moral habit of 

entering into the reality of ―the other‖ and securing for that person what is 

―rightfully due‖ to them. This disposition to value the interests of the ―other‖ 

does not come naturally. We are in bondage to self-interest, and consequently 

find it difficult to rise above the insecurity and anxiety that fuel our quest for 

personal gain, power and preeminence. Compte-Sponville (2001) calls justice 

―equals without egos‖ (p. 72) in that it makes irrelevant discrepancies in power, 

intelligence and social standing. 

The exercise of justice is foundational to effective business leadership in 

a global context. Business leaders depend on a high level of participation and 

collaborative effort from a diverse range of employees, shareholders and 

stakeholders. And this in turn depends on the exercise of justice to create a 

harmonious, properly ordered, respectful and ―fair‖ place in which all that have a 

stake in the organization are free to fully contribute to its welfare and progress. 

―Properly ordered‖ does not mean ―well organized.‖ Rather, it refers to an 

organization that pursues and manifests equitable order and honest exchange. 

The just leader insures that organization members, consumers, constituents and 

others are dealt with such that each gets her ―proper due,‖ what he rightfully 

deserves given the fact that they are human beings with gifts and strengths, 

legitimate needs and expectations. Just leaders see to it that no member of the 

organization or its constituencies usurps the rightful place and contribution of 

others, and that everyone who has a stake in the organization is given appropriate 

41

McCloskey 

access to resources, information and opportunities. The imperative of justice 

imposes on leaders a moral obligation that can never be fully or perfectly 

acquitted. The pursuit of justice is always a process, and often a messy and noisy 

one at that. The dynamic equation of merit and need, dependence, independence 

and interdependence, differential ability and diverse contribution is in a constant 

state of flux, and the balance scales of justice must be regularly recalibrated. In 

this fluid context, the business leader‘s highest contribution to justice may be to 

arrange for a civil and respectful dialogue around the varied expectations of 

employees, customers and constituents as to what constitutes a ―properly 

ordered‖ organization, coupled with the readiness to reconsider what may be the 

―proper due‖ of others. 

If injustice prevails, if employees and others are not respected but are 

ignored, or forced to operate on a playing field that is tilted in favor of the 

leader‘s self-interest, trust, which is the fuel of collaboration, is eroded. No 

business organization can survive let alone compete if it lacks the trust of 

employees, customers, shareholders and constituents. 

Fortitude: Fortitude is firmness of spirit, constancy under difficulty. 

Fortitude willingly assumes risk and embraces vulnerability in service of the 

―good.‖ Fortitude is that which advances the individual in the face of hardship, 

emotional turmoil, physical harm, risk of loss of dignity, reputation, finances, 

health, position, even life itself. Fortitude is not blind or deaf to risk and danger. 

Its essence lies not in lacking fear—it is not the adrenaline rush of the risk-taker, 

but in knowing fear and not allowing it to force us into complicity with evil, or to 

be kept by fear from the pursuit of the good. Fortitude is demonstrated in two 

ways—advance and endurance. Fortitude takes the initiative to act in spite of the 

risk associated with the action. Fortitude is also demonstrated in bearing up and 

enduring under life‘s pain and pressures, especially those associated with pursuit 

of a noble cause. 

The exercise of fortitude is foundational to effective business leadership 

in a global context. Business leaders operate in an environment typified by 

opposition and risk. To stay effective, they must win the inner battle over human 

frailty and the temptation to choose security over service. Leaders with fortitude 

acknowledge their vulnerability, face their fears, and meet difficulty and danger 

with equanimity. McCall (1998) notes that effective global executives have 

―…the courage to take risks.‖ The business leader with fortitude possesses the 

inner strength to act according to the dictates of his or her conscience, even in the 

face of opposition, whether internal as in facing one‘s own fear, or external as in 

facing the real threat of danger or loss. This means that the courageous business 

leader is well equipped to make difficult decisions, take unpopular stands, act 

when others hesitate, and pursue a difficult course of action. 

―Without courage,‖ writes Compte-Sponville (2001) ―we cannot hold out 

against the worst in ourselves and others‖ (p. 50). Leaders lacking courage 

capitulate to their fears and succumb to the temptation to ―fit in,‖ ―go along to get 

along,‖ and generally to avoid the risk of loss. Without fortitude, when adversity 

strikes, the leader is likely to protect their reputation, secure their privileges and 

42


comfort, and seek the course of action that will afford them and the organization 

the least difficulty—a recipe for failure in a competitive global marketplace. 

Temperance: Temperance is the inner discipline of self-restraint, the 

strength to say ―no‖ to harmful drives, impulses, and the inordinate desire for 

pleasure. Plato (1968) saw it as a matter of a ―man being his own master.‖ 

―Temperance,‖ says Compte-Sponville (2001), ―is that moderation which allows 

us to be masters of our pleasure instead of becoming its slave… (p. 39). The 

practice of temperance is an active self-defense of one‘s inner, moral order from 

that which would enslave the individual to act in accordance with his or her base, 

selfish desires and short-term interests. Temperance is the strength of selfdiscipline 

and self-restraint that keeps our passions and drives within proper 

limits, freeing us up to put our talent to constructive use. In this, temperance is 

akin to the psychological constructs of self-efficacy and self-regulation. The 

temperate person is able to manage his or her emotions and behaviors without 

outside help in the form of external constraints, or rewards and punishments. 

The exercise of temperance is foundational to effective business 

leadership. Effective leaders must find the inner strength to overcome all kinds of 

intoxication—food, sex, alcohol and the most powerful leadership intoxicant, 

power itself. In this, temperance masters the desires that are the most regular in 

making demands on leaders. Leaders are regularly afforded the opportunity to 

use their power to pursue selfish interests and base desires at the expense of 

others, and ultimately to the detriment of the organization. But, the temperate 

leader withstands the pressure to pursue self-gratification or to act rashly to 

secure short-term interests. 

Plato (1968) observed that no community survives for long if its leaders 

are mastered by their ―worse self.‖ The intemperate leader‘s inner life is a 

tangled mess of conflicting passions, wants and needs. As Heifetz and Linsky 

(2002) note, ―We all have hungers, expressions of our normal human needs. But 

sometimes those hungers disrupt our capacity to act wisely or 

purposefully…these hungers may be so strong that they render us constantly 

vulnerable ‖ (p. 71). Overwhelmed by whims and excesses, the intemperate 

leader is rendered powerless to lead with prudence, justice and fortitude. 

Faith: Some who acknowledge the relevance of the four classical virtues 

to the work of business leadership might question the significance of the three 

―theological‖ virtues (faith, hope and love), and perhaps as virtues tied to a 

specific religious tradition they are potentially controversial. But to the extent 

that these too are universal (or ubiquitous) qualities (see Peterson & Seligman, 

2004) these virtues may be expressed in ways that both the religious and secular 

person can affirm. In classical Greek literature, faith is akin to fidelity, which 

signifies an honored agreement or bond of trust. Fidelity is faithful and lasting 

devotion to one‘s duties and obligations, sacred loyalty to one‘s commitments, 

especially one‘s relational and community commitments. Faith is that which 

binds people together to a special purpose, a larger story if you will, which calls 

upon each community member to risk and sacrifice on behalf of one‘s friends 

and community. 

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The exercise of faith is foundational to effective business leadership. 

McIntyre (1984) notes that humans are tellers of stories that ―aspire to truth‖ (p. 

216). In this sense, a faithful leader is a trustworthy storyteller. The leader 

informed by faith acknowledges that there is an important story beyond their 

individual story to which they and others owe allegiance. The faithful leader 

loves the ―truth‖ of this larger story and so refuses to dissemble, mislead, cut 

corners, or shave the truth in the name of self-interest. Building on this fidelity, 

the leader sets the moral trajectory of the organization by connecting its daily life 

to a larger, transcendent vision, thereby fostering a collective sense of ―special 

purpose‖ that propels the organization forward in pursuit of its ―good.‖ As 

Gilbert Meilaender (1984) put it, ―An ethic which focuses on virtue rather than 

duty will tend to make vision central in the moral life… (p. ix). Faithful leaders 

infuse the organization with a moral purpose and vision, a good and compelling 

reason, the ―why,‖ which prompts employees and others to sacrifice, collaborate 

and to go the proverbial ―extra mile‖ in service of the organization‘s larger 

purpose. 

Without faith, the organization is likely to be awash in corroding 

cynicism and paralyzing anxiety. Without faith, the collective life of the 

organization is a random sequence of discreet actions that mean nothing and take 

it nowhere. Without faith, there is no ―why,‖ no larger story to promote and 

sustain collaboration and mutual sacrifice. Without faith, there is no point or 

progress, meaning or movement. Without faith, there can be no long-term 

loyalty, only contractual arrangements, reducing the organization to a temporary 

assemblage of individuals with short-term agendas motivated by self-interest. 

Hope: Hope is an expectation of a future good mingled with the 

understanding that this good is never guaranteed and that the obstacles are many 

to its fulfillment. It is steadfast confidence mixed with a realistic sense of 

contingency. Hope is manifested in the tension between an inadequate or 

unacceptable ―today,‖ where expectations are yet to be realized, and the 

anticipation of a better ―tomorrow,‖ when these expectations will be substantially 

fulfilled. It is of note that our term ―expectant‖ comes from the Latin ―specere,‖ 

which means, ―to look‖ or ― to see.‖ (Spectator comes from the same word). 

Hopeful people see the possibilities for a better future, and what they see fills 

them with positive energy. 

The exercise of hope is foundational to effective business leadership. 

Change, if it comes at all, often arrives in bits and pieces. There may be little or 

no evidence of progress despite the best efforts of the organization and its 

leaders. The sacrificial efforts of the leader and employees may be rewarded 

only with further delay and difficulty. As the organization lives through months 

and years marked by the discrepancy between effort expended and outcomes 

achieved, energy flags and morale falters. Hopeful leaders infuse the 

organization with the positive emotional energy to sustain the journey, especially 

when the road to a better tomorrow proves longer and more difficult than first 

imagined. Hopeful leaders do not allow the painful realities of today to obscure 

their vision for a better tomorrow, thus depriving the organization of the practical 

44


benefits of high morale. But neither do they allow the expectation of a better 

tomorrow to disconnect them from the harsh realities of today. Hopeful leaders 

live in this tension, infusing the organization with the deep conviction that every 

day is pulsing with potential for progress, and yet this progress will not come 

easily. 

The opposite of hope is despair, which means, ―to lack hope.‖ A 

despairing leader lacks the energy to continue in the face of difficulty and delay. 

Snyder (1991) found that people with ―high hope‖ have (1) a greater number of 

goals across various arenas of life; (2) select more difficult goals; and (3) see 

their goals in a more challenging and positive manner. People with low hope, 

predictably are associated with the opposite attitudes—fewer, easier goals and a 

negative stance toward present difficulties. Hopeless leaders settle for mediocrity 

and exude low energy and morale. Without hope, collective, sacrificial effort is 

not possible. Eric Hoffer (1951) observed, ―The self-sacrifice involved in mutual 

sharing and co-operative action is impossible without hope. When today is all 

there is, we grab all we can and hold on…On the other hand, when everything is 

ahead and yet to come, we find it easy to share all we have and to forgo 

advantages within our grasp‖ (p. 68). 

Love: Perhaps the greatest discrepancy between the Judeo-Christian 

conception of virtue and that of the classical Greeks is around the idea of love. 

Aristotle‘s (1999) conception of phileo or friendship-oriented love is based in the 

recognition of the value and worthiness of the person loved. Philia chooses 

whom to love with calculation and deliberation. Christian agape love does not 

suspend its moral concern for ―others‖ and ―outsiders,‖ even enemies. Agape 

love is dependent on the selfless character of the one doing the loving. It does 

not need reciprocation to fuel the next round of loving and thus is radically free 

of self-interest. In this lack of calculation and deliberation, agape surpasses 

philia. Agape love places prudence, justice, courage, temperance, faith and hope 

in the service of others—those not like us, or those we may not even like. In this, 

agape love is an active moral force in the world, creating the capacity in 

individuals and organizations to relate to others in a radically new manner. 

The empirical research substitutes the construct of altruism for agape 

love. Altruism is behavior intended to benefit others without the expectation of 

external rewards. While altruism is not the same as agape, nevertheless, it is of 

note that the literature suggests a positive association between selfless concern 

and leadership effectiveness. Altruism is recognized as a core ethical principle of 

leadership (Engelbrecht, 2002). Engelbrecht et al. (2005) found that forty percent 

of the variance in transformational leadership effectiveness could be statistically 

explained in terms of variance in altruism. Altruistic leaders avoid using power 

for personal gain but instead use it in socially constructive ways in the service of 

others (Engelbrecht et al., 2005; Bass & Steidlmeier, 1999). The demonstration 

of altruism by leaders is associated with higher levels of trust-based relationships 

between leaders and followers, and aids mutual commitment to the 

organization‘s goals, as well as exceptional levels of performance (Engelbrecht, 

2002). 

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McCloskey 

Without love, the organization is not likely to be a good corporate 

citizen. But, effective business leaders transcend self-interest—their own, and on 

occasion, that of the organization they lead. Altruistic leaders do not allow the 

organization to confine its moral concern to its own, or those who serve its selfinterest. 

Business leaders motivated by love extend the virtue and resources of 

the organization ―outward‖ such that the organization accomplishes something of 

value, something ―good‖ for others. 

INTEGRATING VIRTUE INTO A BUSINESS CURRICULUM 

The integration of the concept and practice of virtue into a business 

leadership curriculum is guided by three considerations. First, the cardinal 

virtues are a constructive starting point to begin the discussion about the 

connection between virtue and effective business leadership. While this list is not 

sacrosanct, it does have global appeal and accords to a significant degree with the 

empirical research. As Bass and Steidlmeier (1999) state, ―An approach to ethics 

based upon moral character and virtue enjoys an extraordinarily broad crosscultural 

base in terms of the ―framing narratives‖ that guide ethical discourse in 

cultural settings as diverse as Western and Confucian traditions‖ (p. 193). 

Second, if virtue is to be properly integrated into a business education 

curriculum, a compelling case must be made for the vital relationship between 

the practice of virtue and the requisite competencies for effective business 

leadership. For instance, the leader‘s virtue must be linked to the creation, 

sustenance and extension of a particular kind of organization—one of moral 

vision inhabited by virtuous men and women working collaboratively to serve 

not only the interests of the organization, but the interests of others, including 

customers, constituents and the larger society. Virtue must be linked to effective 

leadership practices like vision casting, formulating strategy and leading the 

organization in a process of constructive change. Additionally, a strong case can 

be made in the negative by emphasizing virtue as a fortification against the worst 

in human nature. The cardinal virtues are sometimes referred to as ―sentinel 

virtues‖ in that they serve a protective function for the organization against the 

dark side of the human experience. Additionally, virtue guards against the danger 

of non-virtuous competence. As Block (1993) observes, ―Our doubts are not 

about our leader‘s talents, but about their trustworthiness. We are unsure 

whether they are serving their institutions or themselves‖ (p. 9). 

Third, the case must be made that virtue is not a business ―success 

strategy.‖ By definition, virtue is not that which is negotiated or coaxed out of us 

by external rewards. If virtue is practiced because of the presumed ―payoff‖ it is 

not genuine virtue. Rather, in accordance with the teaching of Aristotle (1999), 

virtue is pursued for the sake of eudaimonia, ―the good life,‖ and not for the sake 

of utility in securing, what MacIntyre (1984) calls ―external goods‖ such as 

status, success and privilege. In fact, the exercise of virtue may prove a 

stumbling block to ambition or worldly success. MacIntyre (1984) states, ―yet 

notoriously the cultivation of truthfulness, justice and courage will often, the 

world being what it contingently is, bar us from being rich, or famous or 

46


powerful (p. 196). The exercise of virtue, then, is not a ―personal success 

strategy,‖ or ―tool‖ for enhanced leadership performance. As the saying goes, 

―virtue is its own reward.‖ 

The goal of training business leaders in virtue is not to find perfect 

leaders, but rather to educate and develop men and women with the potential to 

provide, despite their acknowledged limitations (humility being a virtuous quality 

in a leader), the kind of leadership a business organization needs to flourish in a 

global economy. The aim is not to find saints to lead us, but to identify and 

develop people trying to live virtuously and largely succeeding. 

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Terris, D. (2006). Ethics at Work. Lebanon, NH: Brandeis University Press. 

Trevino, L. K., Hartman, L. P., & Brown, M. (2000). Moral Person and Moral 

Manager: How Executives Develop a Reputation for Ethical Leadership. 

California Management Review, 42, 4, 128-142. 

Wilson, J. Q. (1995) On Character: Essays by James Q. Wilson. AEI Press, 

Washington,DC. 

49



A TRANSDISCIPLINARY ANDRAGOGY FOR 

LEADERSHIP DEVELOPMENT IN A POSTMODERN 

CONTEXT: PRELIMINARY FINDINGS 

Elaine M. Saunders 

University of South Africa 

Abstract: The paper explores the complex nature of the postmodern world in 

which leaders find themselves and questions the appropriateness of the current 

discipline-based structure of MBA education in terms of its usefulness to develop 

effective postmodern leaders. Transdisciplinarity, which focuses on bringing 

together different perspectives, provides a useful platform where developing 

leaders can engage with the dynamic and complex environment of a postmodern 

era. The nature of transdisciplinarity, from the perspective of a number of 

theorists, is presented. Furthermore, synergies between the transdisciplinarity 

approach and the nature of postmodern leadership are identified and analysed. 

The paper examines synergies between transdisciplinarity and other scientific 

paradigms such as social constructivism, critical management theory, 

postmodernism, social cognitive theory, critical pedagogy, systems theory, 

complexity theory, cybernetics, narrative psychology, critical reflectivity, and 

others. The methodology is qualitative and involves the observation of a number 

of lecturing sessions at Business Schools in the United Kingdom, United States 

and South Africa, with the objective of noting whether any elements of 

transdisciplinary learning were evident. These observations were followed up 

with individual interviews with selected lecturers. The paper concludes with an 

analytical discourse on the value that a transdisciplinary pedagogy can add to 

leadership development, particularly in relation to assisting students with 

embracing the complex challenges of leading in a postmodern era. 

INTRODUCTION AND LITERATURE REVIEW 

The research aims to address the current inadequacies in leadership 

development andragogy in regard to post-graduate business education, in 

particular Master of Business Administration (MBA) programs, and to respond to 

some of the criticisms that have been raised in this regard. Problems relating to 

the competence of leaders is evident in the fact that during the year 2000, forty 

CEO‘s of Fortune‘s top 200 companies were fired or asked to resign (Bossidy & 

Charan, 2002.). Furthermore, for every successful new business there are 22 

failures, the average life span for those that survive start-up is only 11,5 years, 

every year 30 companies drop off the Fortune 500 list and, lastly, the average life 

span of firms on the S&P 500 is 25 years (Morris, 2003). The S&P (Standard 

and Poor) 500 is a value-weighted index published since 1957 that includes the 

stocks of large public companies which trade actively on the New York Stock 

Exchange and the NASDAQ. Further evidence shows that poor leadership 

50


performance has resulted in high turnover and a related average tenure for CEO‘s 

of around 18 months (Charan, 2005). Atwater, Kannan and Stephens (2008) 

criticize business curricula for being functionally isolated. This results in the 

failure of students to understand the way in which the parts of organizations work 

together. 

Transdisciplinarity: In distinguishing between multi and 

transdisciplinarity, Horlick-Jones and Sime (2004) in a discourse on the 

nomenclature of multi and transdisciplinarity suggest that the former relates to 

different disciplinary perspectives relating to the same entity. That is, there is cooperation 

between the disciplines but the methodology of a discipline-based 

process remains intact. Thompson Klein‘s (2004) description of 

transdisciplinarity is utilised as the focus of this study. The notable element of 

this definition is the generation of new knowledge and it is this generation of new 

knowledge that differentiates transdisciplinarity from inter, cross and multi 

disciplinarity where disciplines interact but no new knowledge is generated. 

Inter-disciplinarity is a broad term used to describe problem solving communities 

who are representative of many different disciplines. Inter, cross and multi 

disciplinarity, are often used interchangeably and refer to the act of joining two 

or more disciplines in problem solving, for example we might include medical, 

organizational and political representatives in discussing the problem of 

HIV/Aids. In this instance the different disciplines interact in providing insights 

to the problem, but the boundaries between the disciplines remain intact. Interdisciplinarity 

involves the interaction of many disciplines. The defining nature of 

transdisciplinarity is that is transgresses discipline boundaries, it dissolves 

boundaries and violates disciplinary rules. What emerges from a 

transdisciplinary process is very different from the inputs. The process of 

transdisciplinarity generates new knowledge through the interaction and 

engagement of various disciplines, whereas purely interdisciplinary engagements 

do not generate new knowledge, they use current theories and information and 

apply them to problems. Thompson Klein‘s (2004) definition is as follows : 

The emergent quality of transdisciplinarity is that rational 

knowledge emerges not only from what we know but how we 

communicate it. Stakeholders enter into a process of 

negotiation, confronting knowledge from four (by example) 

kinds of knowledge in a series of encounters that allow 

representatives of each type to express their views and 

proposals. In the process of fifth type of knowledge 

progressively emerges. It is a kind of hybrid product, the result 

of ‗making sense together‘. Intersubjectivity is a critical 

element of transdisciplinarity and requires an on-going effort 

to create mutual understanding. (p. 4) 

The notion of transdisciplinarity is synergistic with Gestalt theory in the 

sense that the end result is greater than the sum of its parts (Kelly, 1994). 

51

Saunders 

Habermas (1979), in advocating communicative action, a concept with strong 

synergies with transdisciplinarity, suggests that the following are indicators of a 

complex-informed pedagogy, appropriate in the postmodern context : 

―Freedom to enter a discourse, check questionable claims, evaluate 

explanation and justifications 

Freedom to modify a given conceptual framework and alter norms; 

 

 

 

 

Mutual understanding between participants; 

Equal opportunity for dialogue that abides by the validity claims of truth, 

legitimacy, sincerity and comprehensibility, and recognises the 

legitimacy of each subject to participate in the dialogue as an 

autonomous and equal partner; 

Equal opportunity for discussion, and the achieved-negotiated-consensus 

resulting from discussion deriving from the force of the better argument 

alone, and not from the positional power of the participants; 

Exclusion of all motives except for the cooperative search for truth. 

The concept of transdisciplinarity has emerged in tandem with the 

postmodern era in response to inadequacies in interdisciplinarity problem 

solving. It offers a solution in terms of responding to postmodern problems 

which are complex, fluid, ambiguous and unpredictable at best. 

Postmodernism: A definition of postmodernism supposes a somewhat 

circular rationale as the nature of postmodernism is to proscribe rigid 

descriptions and rule structures. Many postmodern theorists cannot agree on a 

definition of the term. Since the meaning of ‗modernism‘ is somewhat 

ambiguous, it follows that it is even more difficult to achieve consensus on 

postmodernism (Harvey, 1990). What does seem to achieve consensus, is that 

postmodernism has arisen as a result of social transformation in the latter half of 

the 20 th century (Lyotard, 1979). Lyotard (ibid) states that technology has 

largely been the catalyst that has precipitated this transformation. Huyssens 

(1984), in writing about postmodernism, states that ―....in an important sector of 

our culture there is a noticeable shift in sensibility, practices and discourse 

formations which distinguishes a postmodern set of assumptions, experiences and 

propositions from that of a preceding period.‖ A startling characteristic of 

postmodernism is defined by Harvey (ibid) as its ―total acceptance of the 

ephemerality, fragmentation, discontinuity, and the chaos.....‖. Harvey further 

describes the hallmarks of postmodernism as indeterminacy, ‗intense distrust of 

all universal or totalizing discourses‘ suggesting that general truths are repudiated 

and contextual truth, i.e. a temporal, context related truth, is all that can be 

defended. In relation to postmodernism, Rorty (1979) speaks of pragmatism in 

the philosophy of science, Kuhn (1962) and Feyerabend (1975) talk of a shift of 

ideas about the philosophy of science and Foucault (1972) emphasises 

discontinuity and ‗polymorphous correlations in place of simple or complex 

causality‘. Whereas the modern era attempted to create order out of these 

52


elements, the postmodern era dismisses the need for order and calls for 

flexibility, ambiguity and unpredictability to be embraced (Klages, 2007). 

Postmodernism in Organizations: Hussard and Parker (1993) argue 

that postmodernism is a signifier of a historical periodization as well as a 

theoretical perspective. In the first use, postmodernism refers to an epoch where 

the post prefix is related to a number of other features of a post-modern society 

for example post-Fordism, post-capitalism, post-industrialism. A theme 

associated with many of these is that the social and economic structures 

reproduced since the industrial revolution are now fragmenting into diverse 

networks held together by information technology and postmodern sensibilities 

that emphasize complexity, flexibility and instability in organizations. In 

contrast, postmodernism as a theoretical perspective, focuses on its epistemology. 

Postmodern epistemology suggests that the world is constituted by our shared 

language and that we can only know the world through the particular forms of 

discourse our language creates. 

Complexity Theory: Morrison (2008) connects education philosophy 

and complexity theory in an interesting discourse on complexity within 

organizations. A simplistic view of complexity theory is based on a systems 

view of organizations being open entities which survive through mechanisms of 

feedback, open systems, learning, adaptability, communication and emergence. 

On a more complex level, Morrison talks of the organization as a self organizing 

system which is autocatalytic (self changing) and demonstrates autopoiesis, a 

process of self creation. For Morrison the constant evolution of the system, in 

this case the school and in this research the organization and its environment, 

constantly evolve to higher and higher levels of complexity. In his theoretical 

model feedback is the engine for transformation and the adaptive capability of 

the system to its environmental challenges which ensures its survival. 

Connectedness demonstrates the interdependability of all parts of the system and 

reminds us of the interdependent nature of transdisciplinary groups. Morrison 

speaks of the quality of emergence which does not evolve according to some 

central grand design, but is rather an antithesis of control and predictability. 

Here we notice the nuances of compatibility with the postmodern paradigm. 

Another term common to the language of postmodernism is chaos – Morrison 

(ibid) says that complexity ‗resides at the edge of chaos‘, that is at the point 

where the system threatens to collapse, the point of complete unpredictability. 

Order is not imposed, it emerges in an unpredictable manner. The above 

quotation illustrates the open, complex environment of postmodernism and the 

networking between people. The element of rich diversity is reminiscent of a 

context where transdisciplinarity can serve as an effective platform for creative 

decision making such as is needed in changing and unpredictable environments. 

This led to a curiosity about andragogy in leadership development and a question 

as to whether our current methodology for developing leaders for immersion in 

the postmodern world, is in fact the most effective method. It would appear that 

current learning methodology for leadership development tends to be disciplinary 

and not inter-, multi- or transdisciplinary. As such the learning environment of 

53

Saunders 

developing leaders lacks synergy with the complexity of the postmodern context 

within which leaders currently have to operate. 

Day (2001) reviewed leadership development andragogy and argued that 

the popular forms of teaching such as classroom teaching, coaching, mentoring, 

networking, job assignments and action learning, fall short, some in more ways 

than others, because they tend to underplay the importance of the development of 

social capital in leadership development. This theorist describes the process of 

developing social capital as building networked relationships among individuals 

that enhance co-operation and resource exchange in creating organizational value 

(Bouty, 2000; Tsai & Goshal, 1998). This kind of development cannot take place 

in classrooms, but evolves as groups of leaders interact together to learn about 

leadership. Although Day (ibid) does not directly discuss transdisciplinarity, the 

shortfalls that he highlights in current leadership development could be addressed 

by introducing a transdisciplinary andragogy. The methodologies mentioned by 

Day (ibid) as most conducive to adaptation for the inclusion of a transdisciplinary 

approach are transdisciplinary teams, group coaching, networking and action 

learning. This is because all these learning methodologies involve group 

interaction and learning from each other. Transdisciplinarity can take this 

interaction to a new level where leaders would grapple with postmodern 

problems and would generate new knowledge in the resolution of these problems. 

Day (ibid) also alludes to the issue of complexity by referring to the transforming 

element of leadership development as leaders evolve to higher levels of 

integration and differentiation. Further reading, with the objective of tracing the 

nature and origins of transdisciplinarity, revealed that it was first mentioned in 

the 1980‘s by scholars such as Piaget, Morin and Jantsch with specific reference 

to education (Nicolescu, 2002). The term was coined by these theorists as a result 

of the inadequacy of the terms multi- and inter-disciplinarity. They felt that 

knowledge production was extending beyond the mere incorporation of input 

from various disciplines. 

The originating research and the first attempts to address 

transdisciplinarity as a credible science appear to be undertaken by a Romanian 

quantum physicist by the name of Basarab Nicolescu. He contributed to many 

collaborative transdisciplinary enterprises and founded the Centre International 

de Recherches et Etudes Transdisciplaires (CIRET). He also formulated the 

Transdisciplinary Charter and a Manifesto of Transdisciplinary for the 21 st 

Century. The Charter was adopted at the First World Congress of 

Transdisciplinarity held in Portugal in November 1994. Nicolescu‘s studies in 

quantum physics revealed the complexity of the modern world. He claimed that 

reality exists on many levels and that transdisciplinarity is the only mode of 

knowledge production that can deal with many levels at once. Thompson Klein 

(2004), from Wayne State University in the United States of America has 

extended the debate around transdisciplinarity from the European base of 

Nicolescu (ibid) and Nowotony (ibid) to provide a western contribution. She 

writes on the notion of complexity and transdisciplinarity and highlights that the 

new science of complexity has emerged recently (in the latter half of the 20 th 

54


Century) and that this has been the catalyst in the emergence of 

transdisciplinarity as a mechanism that is more appropriate for knowledge 

production in a complex world, than the traditional linear approach which 

characterises the nature and structure of modern universities. Nicolescu (ibid) 

acknowledges the contribution of Ron Burnett from Canada to the science of 

transdisciplinarity (Burnett, 2005). These four theorists, Nicolescu (ibid) and 

Nowotny (ibid) from Europe and Thompson-Klein (ibid) and Burnett (ibid), from 

America and Canada respectively, appear to be the key theorists who have 

developed the notion and science of transdisciplinarity and their writings form 

the foundation of this research. Further reading around the concept of 

transdisciplinarity revealed many criticisms relating to the inadequacy of the 

disciplinary approach to knowledge acquisition, particularly in relation to the 

complexity of the postmodern era. 

Transdisciplinarity emerged as a result of what was seen as inadequacies 

in the traditional discipline-based structures of universities and business schools, 

who teach emerging leaders their ‗trade‘. This traditional approach lacked the 

integration between disciplines that was becoming increasingly necessary for 

approaching complex problems in leadership in the postmodern context. The 

postmodern world is characterised by complexity and this complexity is reflected 

in diversity, paradox, ambiguity, constant transformation and change. The 

author‘s interpretation of transdisciplinarity offers an integrated approach to 

learning which has a Gestalt quality, because it creates a ‗melting pot‘ of 

different perspectives from relevant disciplines that results in an output that is 

greater than the sum of its parts, i.e. new knowledge is created. This ‗new 

knowledge‘ is one of the defining aspects of transdisciplinarity and distinguishes 

it from multi- and inter-disciplinarity. In summary, this research explores the 

complex nature of the postmodern world in which leaders find themselves, and 

questions the appropriateness of the current discipline-based structure of higher 

education in terms of its usefulness to develop effective postmodern leaders. 

What is called for, is an approach to problem solving that is heuristic and a 

tolerance for the temporal nature of solutions, flexibility, and multiple 

perspectives and inputs. Transdisciplinarity, which focuses on bringing together 

these different perspectives, may provide a useful platform where developing 

leaders can engage in problem resolution within the dynamic and complex 

environment of a postmodern era. The nature of transdisciplinarity, from the 

perspective of a number of theorists, is presented and synergies between the 

transdisciplinary approach and the nature of postmodern leadership are identified 

and analysed. The research examines synergies between transdisciplinarity and 

other scientific paradigms such as social constructivism, social cognitive theory, 

critical pedagogy, systems theory, critical management theory, postmodernism, 

complexity theory, cybernetics, binary and hybrid systems, narrative psychology, 

critical reflectivity, and critical management studies. 

55

Saunders 

A MULTIPLE CASE STUDY OF BUSINESS SCHOOLS 

Research Design: The methodology is qualitative. It includes the 

observation of Master of Business Administration (MBA) programs in Business 

Schools, supported by individual interviews with lecturers. The choice of these 

programs is based on the fact that MBA programs have traditionally been the 

means for developing generations of leaders. The research methodology utilizes 

observations which will aim to identify the use of transdisciplinary learning 

measures in the classroom, utilizing the indicators of communicative action 

suggested by Habermas (1979) as a basis for identifying instances of 

transdisciplinary learning in the classroom situation, as well as other elements 

identified within the transdisciplinary paradigm. Habermas‘s (ibid) notion of 

communicative action has strong synergies with the concept of 

transdisciplinarity. These synergies are considered to be sufficiently strong to 

support the application of Habermas‘s model of communicative action to this 

study. The research design is cross-sectional, thus the data will be collected 

globally from business schools in the United States of America and the United 

Kingdom. The study is currently being extended to include schools from South 

Africa and additional schools from Europe. The researcher attended classes in 

each case, followed by interviews with all the lecturers involved. The Deans of 

the schools were also interviewed in order to gain a management perspective on 

issues relating to leadership development in a postmodern context. Curriculum 

documentation was also studied in order to ascertain the content of MBA 

programs in the various schools. 

RESEARCH RESULTS 

Main Themes in the Research: In line with the objectives of the 

research, data was collected around awareness of interdisciplinary learning and 

transdisciplinary learning. Interestingly, in all three schools there was an 

awareness of the need to link disciplines in leadership development, and the 

degree to which this was present varied from just an acknowledgement of the 

need, to two schools who were already engaged actively in interdisciplinary 

processes. An examination of the curriculum relating to these interdisciplinary 

processes revealed some innovative thinking and some flaws. None of the 

schools had attempted to create groups representing the various disciplines, in 

fact, in most instances the groups were randomly formed by the students 

themselves. In some instances the integration exercises seemed to focus more 

on opportunities for experiential and action learning, rather than having an 

interdisciplinary feature as the core. In some instances faculty from different 

disciplines collaborated both in terms of the development of curriculum, and also 

in interacting during the delivery of modules in order to support an 

interdisciplinary process. One innovative example of this was the lecturer in team 

building, integrating with a finance/business module in order to assist the 

students in building high performance teams for their group projects in finance. 

Although this does not reflect a pure interdisciplinary process where all 

56


disciplines meet to address a postmodern problem, it is nonetheless a good start. 

Thirty percent of the sample, when asked about their concerns about current 

leadership development methodology, spoke of a need to link the core disciplines 

traditionally associated with MBA programs. Seventy percent of the sample of 

lecturers responded positively when they were asked if they were familiar with 

the term ‗interdisciplinary learning‘, and generally it was felt that this was a very 

positive addition to the learning methodology for developing leaders. Only three 

of the lecturers had not heard of interdisciplinary learning. This contrasted with 

the fact that none of the lecturers in the sample were familiar with 

transdisciplinarity, although some did attempt a definition. Invariably their 

definitions were confused with interdisciplinarity. Once the researcher gave a 

definition of transdisciplinarity and outlined the differentiating factors between 

that and interdisciplinarity, all the lecturers interviewed agreed that this would be 

a very beneficial methodology to apply to the development of leaders who would 

go on to deal with the challenges of a postmodern world. The elements of 

transdisciplinarity that were most valued by the lecturers were the framework 

that it lays for critical and innovative thinking, as well as its characteristics of 

being a knowledge generating unit. Although all the lecturers were enthusiastic 

regarding the concept of transdisciplinarity, they almost unanimously expressed a 

concern about how to go about implementing transdisciplinarity in the 

development of leaders. The concerns of lecturers around traditional leadership 

development methodology have resulted in these lecturers introducing more 

experiential and action learning exercises, and interdisciplinary processes. In this 

respect the lecturers had displayed a great deal of innovation in terms of the way 

they utilized case studies in group interactions. Various other innovations 

including games, tasking the students with bringing in their own guest lecturers, 

building posters, making videos, creative role plays and the use of movies as case 

studies, were amongst some of the very useful and innovative learning 

methodologies introduced by the lecturers. Interdisciplinarity was evident to 

some degree in these methodologies, but certainly not in all. It was clear, 

however, that none of the lecturers had taken the leap of faith towards a 

transdisciplinary process and given their lack of exposure to this concept, this is 

understandable. 

When asked what kind of challenges they believed that the students 

would face as leaders in the 21 st Century, or the postmodern context, the 

following key themes emerged : 

They will operate in a global economy and they will be faced with increased 

competition from all parts of the world. A constant pursuit of knowledge 

will allow students to stay ahead of the global market with innovative 

solutions and creative ways of going about their business. Running 

alongside this theme relating to the need for leaders to be creative thinkers, 

was a concern that current learning methodologies in MBA classes do not 

sufficiently stimulate or encourage critical and creative thinking. 

57

Saunders 

 

 

 

 

 

 

 

They will need to be able to work in a context of diversity and be able to get 

along with people from different cultures. One lecturer felt that well 

developed interpersonal skills would be a great ally in dealing with the 

conflictual nature of a heterogenous and diverse environment. Outsourcing 

will be the norm, as will intense competition. Small windows of competitive 

opportunity will arise and will need to be seized and positively exploited to 

ensure survival 

Problems will be complex and messy, and there will be no clear solutions. 

Preconceived notions will be challenged. The context of problem solving 

will be ambiguous, the nature of problems strange, unprecedented, 

challenging and unpredictable. 

They will need to be able to respond positively to continuous and complex 

change 

There were strong themes around the role of a leader as a steward in society. 

As a result, ethics as an important part of the MBA curriculum became 

apparent and two of the schools already had Business Ethics as a module in 

the MBA. 

Interestingly, a number of lecturers (40% of the sample), questioned whether 

MBA classes were developing leaders. Their concerns were posited around 

the debate that leaders are born, not made. 

Capitalism was generally seen as positive by the lecturers and deans, 

however, the point was raised that greed is a distortion of capitalism and that 

this would destabilise the capitalistic system. 

There was agreement amongst lecturers who addressed the issue of the 

current credit crisis, that one of the problems related to this was the adoption 

of the rational, linear models of risk management. Such models, that have 

their basis in the assumption of perfect knowledge and that the economy 

would follow a set of basic laws that would result in equilibrium, was at the 

heart of the current crisis. The postmodern world is not characterized by the 

degree of predictability that these Newtonian models depend on. 

Link to the Research Question: This research questions whether there 

are problems with traditional methodologies in leadership development. It 

particularly questions the lack of synergies between current learning 

methodology and the nature of the postmodern world. The former reflects a 

very structured, hierarchical, silo‘d approach to learning, whilst the latter shows 

no such symmetry. By contrast it is characterized rather by chaos, 

unpredictability and complex, messy problems. The notion of transdisciplinary 

learning with its characteristic of a team as a knowledge generating unit, 

empowered to search out innovative solutions to messy, complex problems, 

appears to have the potential to bridge the gap between the structure and 

predictability of the business school classroom, and the environment or context, 

which the student would be plunged into upon leaving the safety of that 

classroom. In looking at the concerns raised by the lecturers who were 

58


interviewed, and in particular at the concerns regarding linking disciplines and 

encouraging critical thinking, it would appear that the process of 

transdisciplinary learning has an excellent contribution to make. The fact that a 

number of lecturers and colleges have acknowledged the need for the integration 

of the disciplines, and the fact that they have already made tentative forays into 

the world of interdisciplinary learning, shows that they have acknowledged a 

need to do things differently. However, interdisciplinary learning is likely to fall 

short of their expectations, because it will not necessarily support critical 

thinking, nor will it provide a framework for knowledge generation. The move to 

transdisciplinary from interdisciplinary is a conscious one which will require 

some significant paradigmatic transformation and the sacrificing of some 

academic holy cows. 

Transdisciplinarity requires that: 

Lecturers release the role of the expert and embrace a more egalitarian power 

dynamic in the classroom in order to empower learners to engage in 

unfettered, genuine knowledge production. They should be comfortable in 

the role of co-learner. 

Teams be representative of disciplines. This would emulate the real world 

situation where leaders would be working in a management team which 

would necessarily reflect representivity from all organizational disciplines. 

The issue of compliance with the requirements of accreditation bodies would 

need to be addressed. The need for concrete measurement and outcomes 

that is normally associated with these bodies, was seen by some of the 

lecturers as getting in the way of creative transformation in learning 

methodology. 

Grading would not be able to conform to set predictable outcomes, based on 

current theoretical models, but somehow the ability of the students to create 

new knowledge, and the quality of that knowledge, would need to be 

assessed and evaluated. 

Lecturers will need to acknowledge that a simple move to interdisciplinarity 

and integration will fall far short of assisting students to grapple with the 

complexity of the postmodern leadership context. 

Students would need to be freed from the constraints of current theoretical 

models and encouraged to challenge, evaluate and re-examine extant theory 

in the light of its usefulness in application to messy, postmodern problems. 

CONCLUDING COMMENTS 

The aforegoing suggests that integrating a transdisciplinary andragogy 

into the MBA tuition model would add significant value to the development of 

leaders who live and work in the complex context of the postmodern era. 

Interdisciplinary teams that were engaged in knowledge generation would, of 

necessity encourage and develop critical and innovative thinking in students. 

The freedom of engagement in transdisciplinary teams, the quality of deep 

discourse and the depth of interpersonal engagement is an ideal forum for 

59

Saunders 

grappling with complex, messy postmodern problems. The egalitarian 

relationship between the teacher and the taught creates a context where students 

have to be accountable for learning and the decisions they make, as they would 

have to in the real world. The meaningful relationships and quality discourse 

that would emerge from these transdisciplinary teams would further enhance the 

ability of students to relate effectively to people from different cultures and to 

embrace and work with the inevitable conflict that arises in these diverse think 

tanks. The nature of postmodern problems often being broad socio-political 

challenges would encourage the developing leaders to consider their roles as 

social architects and stewards in society. 

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61



DEVELOPING ONLINE CUSTOMER TRUST 

David R. Wheeler 

Susan Atherton 

Suffolk University 

ABSTRACT: Many e-commerce websites advertise ―user friendly‖ 

atmospheres. There is a difference between what consumers perceive regarding 

―help‖ and what companies that host the Web sites legally mean by ―help.‖ These 

same sites make advertised claims which are not well supported by the ‗Terms 

and Conditions‘ or policies posted on the site. The resulting gap between 

expectations and reality negatively impacts perceived usefulness and consumer 

trust in continuing to make online transactions. Furthermore, a dissatisfied 

consumer may then expose the e-retailer to potential legal issues. E-retailers 

hoping to increase profitability will need to address these issues and develop 

website strategies that meet consumer expectations. In addition to clear and 

reasonable ‗terms and conditions,‘ a personalized ―help‖ feature on e-commerce 

websites create a satisfying experience for users while avoiding legal issues. 

Websites like Stamps.com, Register.com and Zazzle.com, that offer personal, 

customized products for consumers and businesses, need to provide a more 

meaningful consumer ―experience,‖ by creating trust and by supplementing their 

automated help function with a human facilitator or virtual customer support 

person, to avoid potential legal disasters. This article will explore the legal and 

economic implications for the e-retailer resulting from consumer dissatisfaction 

with the website claims and actual online transactions. 

INTRODUCTION 

Predictions in the late 1990s that the value of electronic commerce (ecommerce) 

worldwide would increase significantly, have been realized, with e- 

commerce offering consumers substantial benefits, such as convenience and 

access to a wide range of goods, services and information at lower costs. (Raul 

and Gomez, 1999) However, such benefits cannot be realized fully unless the 

global e-commerce marketplace offers both consumers and businesses trust, 

safety, transparency, and legal certainty. (Raul and Gomez, 1999). American 

consumers understandably want to know the terms of their electronic 

transactions, the means for cancellation and or complaints, limits of liability, 

whether unreasonable contract terms are enforceable, where they will have 

recourse, and what policies (international or domestic) are in place (Raul and 

Gomez, 1999). In particular, consumers may expect that businesses offering 

internet services should take into consideration how those services might 

reasonably be expected to be used, and then be accountable (responsible), if the 

consumer is unable to make reasonable use of the services. Today, only one-third 

of consumers trust online transactions. And, this presents challenges for e- 

retailers‘ websites (Consumers Union, 2002). With a U.S. online retail market 

62


representing $127.7 billion in e-commerce sales (excluding travel) in 2007, and 

$146 billion in 2008, online retailers must address the issues of website trust and 

safety to take advantage of this market (Interactive Advertising Bureau, June 

2008). The potential for online sales growth, according to the U.S. Department 

of Commerce, is expected to increase 11.3% between 2007 and 2012, with an 

increase from 133.1 million to 158.2 million, or 82.5% of U.S. internet users 

shopping online (Interactive Advertising Bureau, June 2008). Merchants will 

need to accommodate consumers‘ fears of online security and privacy in 

electronic transactions by providing twenty-four hour customer support 

specialists, superior privacy policies, authentication services, fraud procedures 

and insurance. Consumers will expect transparency in policies such as: the terms 

of their electronic transactions; means for cancellations and/or complaints; 

liability limits; whether unreasonable contract terms are enforceable; and, where 

they will have recourse, since factors of credibility and trust are paramount. 

Consumer access to live ―Help,‖ for customer support and complaints, may 

significantly and positively affect this level of trust and affect the merchants‘ 

goals of building long-term relationships and developing a stable and predictable 

commercial environment. (Raul & Gomez, 1999). 

ONLINE TRUST 

The importance of trust in online transactions between consumers and e- 

retailers has been proven empirically. ―Consumer Reports‖ research findings 

confirm that consumer trust is far lower than trust in traditional retail situations, 

with only 29 percent of users trusting websites that sell products and services. 

Consumers Union, 2002). This gap between expectations and credibility places a 

greater demand on e-retailers, since consumers expecting specific, accurate 

information about business practices such as disclosure of fees and use of 

personal information. Corbitt, Thanasankit, and Yi (2003) found that trust is 

positively linked with e-commerce participation. Liao, Palvia, and Lin (2009) 

found that trust is a predictor of web site use and e-commerce adoption, while 

Consumers Union (2002) found that trust is strongly linked to credibility. Thus, 

consumer online transactions involving personal information, or where photos, 

logos or other icons are uploaded into third-party affect trust, which is extended 

to a demand for information about third-party sites, sponsorships, company 

ownership, or use of browser-tracking mechanisms. Wolfinbarger and Gilly 

(2003) found that other factors affecting trust include security of credit card 

payments, which is included in personal information, and privacy of shared 

information. Unreliable technology can cause customers to lose trust in e- 

commerce, and technology quality reflects web site substantiality (Corbitt et al. 

2003). Stamps.com, which allows consumers to create stamps using personal 

photos or logos, receives numerous consumer complaints about the website‘s 

unreliable technology, since problems downloading software and printing, which 

are important aspects of order fulfillment, resulted in unresolved billing issues. 

Lack of access to timely ―help‖ has been found to be a major factor in reducing 

consumers‘ trust in electronic transactions and continuation (repeat orders), and 

63

Wheeler and Atherton 

may increase the level of risk of potential liability for e-retailers. A variety of 

factors, including unreasonable ―terms and conditions,‖ lack of access to 

customer service through ―help‖ 

Studies of online transactions emphasize the critical importance of trust, 

which plays a pivotal role in e-loyalty. Research by Kim, Byoungho, and 

Swinney (2009) and C. Liao et al. (2006) confirmed that trust affects repeat 

purchase behavior. Liao et al. (2006) found that ―specific content such as, finding 

contact information, product/service details, customer policies (dispute policies), 

customer support, and privacy policies, will positively and directly affect the 

user‘s trust in the web retailer. Importantly, Liao et al. (2006) found that ―specific 

content affects perceived usefulness indirectly via trust,‖ and in order to increase 

trust, all useful information relevant to consumers, especially information of a 

particular concern to the consumer (i.e., contact information, customer policies, 

product/service details after-sale support, etc.) should be completely and clearly 

demonstrated. The concept of perceived usefulness is derived from the early 

work of Davis (1989) on the Technology Acceptance Model (TAM), which has 

been examined empirically in information systems research (Liao et al, 2006). 

Perceived usefulness does have a substantial impact on behavioral intentions 

(Hausman and Siekpe, 2009). 

Prior studies investigated different components of trust and e-loyalty, 

such as fulfillment/reliability, website design, security/privacy, and customer 

service (Wolfinbarger and Gilly, 2003) (Kim et al, 2009). From that perspective, 

customer e-trust is earned by delivering the right product at the right time and 

meeting customer expectation on product quality as promised by the retailer. 

(Kim, 2009). For sites like Stamps.com, order fulfillment and satisfaction is an 

important claim, and unreliability could result in legal implications. While order 

fulfillment and delivery are important, as are privacy and security, order 

fulfillment/reliability (responsiveness) is the most important factor in judging 

customer satisfaction with the website, compared to other quality dimensions, 

and responsiveness of the online retailer will positively affect customer e- 

satisfaction (Kim, 2009). Responsiveness has been defined as responsive, 

helpful, and willing service that responds to customer inquiries quickly, and has a 

positive effect on building e-trust. (Wolfinbarger and Gilly, 2003). However, 

despite these findings, few studies provide an in-depth investigation of retailer 

responsiveness to customer service needs, such as technology support, billing 

issues, complaints, cancellations, or website policies (―terms and conditions‖), 

and the effect on retailer liability. Thus, we hypothesize that customer 

dissatisfaction with order fulfillment/reliability is strongly related to mistrust in 

advertising claims and may lead to potential litigation. Support for this 

hypothesis may be suggested in Kim (2009) who found that in online retailing, 

consumers need assurance that their products will be delivered as expected, since 

they do not see an actual facility, do not have personal interaction with service 

personnel and cannot physically examine the product. 

Consumer perspectives on perceived trust and website responsibility. 

Consumers may face devastating results for unauthorized payment card charges, 

64


leakage of personal data associated with such card charges (or registration of 

personal information on websites), and resulting security breaches such as 

identity theft, or fraud. (Morse and Raval, 2008). Liability for those costs 

associated with unauthorized charges is important because it is closely associated 

with unauthorized access to cardholder information (Morse and Raval, 2008). 

These resulting security breaches increase consumers‘ fears and risk of online 

transactions, particularly when credit card payments are involved, and is clearly 

seen in the recent lawsuits against corporations for lack of security in protecting 

cardholders. TJ Max‘s security breach resulted in identity theft compromising 

over forty-five million cardholders. However, studies show that assigning the 

legal responsibilities for harms associated with those breaches, and government 

regulation of security of personal data in the US is complex and imperfect 

(Morse and Raval, 2008). In the United States ―there is no single law, statute, or 

regulation that governs a company‘s obligations to provide security for its 

information.‖ (Morse and Raval, 2008 p.545 FN41). Despite this fragmentation 

of regulation of online security and privacy, the Federal Trade Commission 

(FTC) does address ―unfair‖ and misleading online business practices that affect 

consumers, while Morse and Raval (2008) indicate that state-specific privacy and 

data security disclosure provisions and common law claims may redress some of 

these breaches by e-retailers. Consumer trust is first linked to the perceived 

usefulness of the website (Davis, 1989), and order fulfillment and satisfaction. 

When problems occur at this stage, research suggests that consumers would not 

re-visit the site, would look for alternatives, and it is the resulting billing or credit 

card issues that may trigger consumer complaints about misleading e-retailer 

claims. Thus, e-commerce websites that are not ―responsive‖ to consumers, 

through a live ―help‖ function, or lack policies to address the issue of privacy of 

personal data, and do not take steps to protect consumer data (including credit 

card data), may be liable for harm, despite disclaimers of responsibility. 

While U.S. federal and state judicial systems share jurisdiction over 

electronic commerce, and either jurisdiction may be involved depending 

on the amount in dispute, the type of transaction, and the number and 

identity of the parties, the legal and regulatory approach to electronic 

commerce has been rather ―minimalist‖ in nature (Muenchinger, 2000). 

Despite this minimalist approach, the FTC actively encourages workshops 

to develop policies to provide a global marketplace that is safe, transparent 

and has legal certainty (Raul and Gomez, 1999). 

TRUTH 

Absent specific federal laws concerning the internet, federal laws that 

may affect consumer protection and credit card payments include the Truth in 

Lending Act (TILA), which limits consumer liability for fraudulent use and 

billing errors, and the Electronic Funds Transfer Act (EFTA), which limits 

consumer liability for unauthorized electronic funds transferred and consumers‘ 

rights for documentation (Muenchinger, 2000). 

65


Additionally, the Uniform Computer Information Transactions Act 

(UCITA), applies to transactions involving computer software, multimedia 

interactive products, computer data and databases, and the Internet and online 

information to facilitate electronic commerce (Muenchinger, 2000). One key 

objective of UCITA is to adapt common law concepts of manifestation of 

consent in electronic form, by giving the consumer notice that his action may be 

considered as a form of consent and he may have an opportunity to review the 

contract terms. The Act thus creates a ―safe harbor‖ provision: a ‗double click‘ 

will now be considered assent for purposes of creating a binding contract in 

electronic transactions (Muenchinger, 2000). 

E-retailers may also minimize liability for copyright infringement under 

the Digital Millennium Copyright Act (DMCA) of 1998, and under ‗safe harbor‘ 

conditions may escape liability if the provider was not aware of the existence of 

the infringing material and did not receive a direct financial benefit 

(Muenchinger, 2000). Stamps.com provides such a disclaimer with its ―safe 

harbor‖ provision in its ―Terms and Conditions.‖ 

LEGAL IMPLICATIONS 

The FTC is the primary source for consumer complaints about internet 

advertising and marketing. The Federal Trade Commission Act (FTCA) (USC 

45, section 5) prohibits unfair or deceptive advertising in any medium. A 

representation, omission or practice is deceptive if it is likely to: 

(1) mislead consumers; and 

(2) affect consumers‘ behavior or decisions about the product or service. 

Website disclaimers have several requirements: 

a. They must be clear and conspicuous; 

b. Demonstrations must show how product will perform under normal use; 

c. Refunds must be made to dissatisfied consumers, if promised; 

d. Sellers are responsible for claims made about their products and services; 

e. Claims must be substantiated; 

f. And, relevant information left out or claims that imply something that is 

untrue may be misleading. 

The FTC extends protections to consumers, stating that ―[P]rivacy is a 

central element of the FTC‘s consumer protection mission‖, and ―security of 

personal information‖ is a component of privacy. (FTC Act, 15 U.S.C., §45). 

Therefore, the legal basis for consumer complaints is: ―unfair or deceptive acts or 

practices in or affecting commerce.‖ (FTC Act, 15 U.S.C., § 5(a)) Lawsuits 

demonstrate that companies that collect sensitive consumer information, such as 

credit card information, have a responsibility to keep that information secure. 

(Morse and Raval, 2008) 

According to the FTC‘s ―Mail or Telephone Order Merchandise Trade 

Regulation Rule,‖ retailers should be aware that when consumers order by mail, 

66


phone, fax, or Internet may also require the company to have a reasonable basis 

for stating or implying that a product can be shipped within a certain time, and if 

not, must notify the consumer of the delay and the right to cancel. Websites such 

as Stamps.com do not provide such information in their ―terms and conditions‖ 

to ensure that consumers are fully informed of their rights, particularly when 

using photos or logos to print customized stamps, and state broad disclaimers of 

liability for access and use of the website, along with disclaimers of 

responsibility for problems using the site or technology. 

Both Stamps.com and Zazzle.com advertise claims inconsistent with 

product use (printing stamps, uploading personalized photos). Customers find 

―help‖ difficult to obtain if the product does not print properly and/or consumer 

has cancelled account, and refunds for improper billing are difficult to obtain. 

The ―help‖ function used by Zazzle.com and Stamps.com is a ―contact us‖ link to 

a webmaster, but only an address is provided, and no 1-800 number is included. 

A survey of 75 leading e-commerce sites showed that 84 percent had self-service 

Get Help functions, and sixteen percent provided a non self-service option such 

as a 1-800 number or a ―contact us‖ link. 

DISCUSSIONS 

To improve the level of trust among consumers, online businesses should 

keep a customer-focused business orientation, actively generate customer 

information and provide value-added service on customer information, protect 

and communicate policies on customer privacy and data security, be responsive 

to customer requirements and allow customers to contribute their ideas to 

improving the operation (Corbitt, et al., 2003). 

Suggested on-line strategies include: level of customer service 

comparable with off-line service; integrate on-line facilities with real store 

environments for customer support, complaints, return of products, and if they 

only have an on-line business, providing a better customer service operation may 

reduce customer perceptions of poor quality (Walsh and Godfrey, 2000). 

Creating constant dialogue, with a virtual character on the site, or on-line 

salespersons, helps the consumer understand the product and helps develop the 

customer relationship by providing specific information and recommendations 

(Walsh and Godfrey, 2000). Ultimately, understanding how online trust is 

created and maintained can lead to improved web sites, increased sales revenues, 

profitability and shareholder value (Shankar, Urban, and Sultan (2002). 

REFERENCES 

Breitenbach C.S., and Doren, D. C. V.(1998). Value-added marketing in the 

digital domain: enhancing the utility of the Internet. Journal of Consumer 

Marketing, 15, # 6, 558-575. 

Consumers Union of U.S., Inc. (2009). Consumer Trust in E-Commerce Web 

Sites Alarmingly Low, Consumers Reports WebWatch Research Finds. 

http://www.consumerwebwatch.org/dynamic/press-release-trust in e- 

commerce (February 18). 

67


Corbitt, B.J., Thanasankit, T. and Yi, H. (2003). Trust and e-commerce: a study 

of consumer perceptions. Electronic Commerce Research and 

Applications, 2, 203-215. 

Federal Trade Commission (FTC) Act, Section 5(a), www.ftc.gov/privacy, 

5/2/08. 

Hamill, Jim (1997). The Internet and international marketing. International 

Marketing Review, 14, #5, 300–323. 

Hausman, A. V. and Siekpe, J. (2009). The effect of web interface features on 

consumer online purchase intentions. Journal of Business Research, 62, 

5-13. 

Interactive Advertising Bureau (2008), June 2008: US Retail E-Commerce 

Industry Stats & Data by eMarketer. 

http://www.iab.net/insights_research/530422/1675/334589 

Kim, J., Jin, B., and Swinney, J. L. (2009). The role of etail quality, e-satisfaction 

and e-trust in online loyalty development process. Journal of Retailing 

and Consumer Services, 16, 4, 239-247. 

Liao, C., Palvia, P., and Lin, H. (2006). The roles of habit and web site quality in 

e-commerce. International Journal of Information Management, 26, 469- 

483. 

Morse, E. A. and Raval, V. (2008). PCI DSS: Payment card industry data 

security standards in context. Computer Law & Security Report, 24, 540- 

554. 

Muenchinger, N., (2000). E-Commerce – US Proposed US Legal Solutions to 

Questions Concerning Electronic Commerce. Computer Law & Security 

Report, 16, 6, 378-385. 

Raul, A. C. and Gomez, M. A. (June 8-9, 1999 and February 19, 2009).). U.S. 

Perspectives on Consumer Protection in the Global Electronic 

Marketplace, Summary of the Federal Trade Commission Public 

Workshop.‖ Washington, D.C., http://www.ftc.gov/bcp/icpw/index.shtm 

Shankar, V., Urban, G.L., and Sultan, F., (2002). Online trust: a stakeholder 

perspective, concepts, implications, and future directions. Journal of 

Strategic Information Systems, 11, 325-344. 

Walsh, J. and Godfrey, S., (2000). The internet: a new era in customer service. 

European Management Journal, 18, 1, 85-92. 

Wolfinbarger, M. and Gilly, M.C., (2003). etailQ: dimensionalizing, measuring 

and predicting etail quality. Journal of Retailing, 79 (3), 193-198. 

68



OPPORTUNITIES IN INTERNATIONAL ACCOUNTING 

EDUCATION PRESENTED BY THE CURRENT 

FINANCIAL CRISIS 

John E. Simms 

The University of St. Thomas 

ABSTRACT: As the market has reacted to the subprime and financial crisis, the 

interrelated nature of the current global economy provides numerous 

opportunities for international accounting education. In this discussion, three 

interrelated aspects are examined: 1) significant changes in debt-to-equity 

positions in major U.S. financial institutions as compared to those in other 

markets; 2) mark-to-market accounting according to FAS 157 as compared to 3) 

IAS 39 measurement and disclosure requirements. First, the change in financial 

leverage of major U.S. financial institutions during the period from 2002 to 2007 

is compared to that of selected major overseas financial institutions. Possible 

causative factors are discussed, as well as implications to liquidity and solvency 

in terms of asset mark-downs leading to packaged hedging instruments becoming 

classified as ―toxic.‖ Then, a comparison of U.S. financial reporting standards 

and international financial reporting standards (IFRS) is presented and related to 

the current financial crisis. The role of FAS 157 in relation to changes in debt-toequity 

positions is discussed in the context of the effect on international financial 

markets. The effects of international reporting standards, whether moderating or 

magnifying, on international financial institutions are discussed. 

INTRODUCTION 

The last several years have been a tumultuous time for the residential 

mortgage industry – to put it mildly. There have been changes in the market that 

resulted in foreclosure rates that can only be compared to the great depression. 

But even the 1930s pale in comparison to the number and dollar value of 

mortgage-based securities (MBS) and collateralized debt obligations (CDO) 

created and exchanged in today‘s market. One has only to read the financial 

section of any major newspaper to see the litany of words that have been used to 

describe the situation: ―Disaster.‖ ―Meltdown.‖ ―Collapse.‖ The analysis of the 

causes and effects from a macro perspective will be ongoing for years, perhaps 

decades. 

The purpose of this paper is to investigate opportunities that the current 

financial crisis presents for classroom instruction. Specifically, the topics are 

examined with the purpose of teaching international accounting in context – that 

is, in relation to debt positions of financial institutions. Obviously, it would be 

beyond the scope of any one paper to delineate all the aspects of accounting 

relevant to the situation. This paper limits the topics to three interrelated factors 

the examination of which may provide topics appropriate to an upper-level 

69

Simms 

undergraduate or graduate course in international accounting. The factors are 

presented comparing U.S. financial institutions to comparable overseas firms. 

BACKGROUND 

Hofstede‘s (1991) pioneering research based on cross-cultural surveys 

and statistical analysis initially revealed four dimensions at the national level. 

These dimensions are individualism, power distance, uncertainty avoidance, and 

masculinity versus femininity. An additional dimension of long-term versus 

short-term orientation was added after including factors developed from the 

Chinese Value Survey (Hofstede and Bond 1988). The total of 5 factors can be 

briefly described as follows. 

Individualism versus Collectivism - Individualism refers to societies 

that tend to have loosely knit social relationships. It is an ―I‖ self-concept 

society. In contrast, collectivism pertains to societies in which people are 

integrated into strong, cohesive groups. The fundamental issue addressed by this 

dimension is ―the degree of interdependence a society maintains among 

individuals‖ (Radebaugh and Gray 2002). 

Large Power Distance versus Small Power Distance - Power distance 

is the extent the society accepts unequal power distribution in organizations. 

Large power distance indicates a high tolerance for inequality. In such societies, 

there will be fewer financial disclosures, wide salary range between top and 

bottom, and privileges are bestowed to the powerful individuals. In contrast, 

small power distance societies will strive for equality for power and demand 

justification for inequalities. 

Strong Uncertainty Avoidance versus Strong Uncertainty 

Acceptance - Societies with strong uncertainty avoidance feel uncomfortable 

with uncertainty. Such societies are rule oriented, prefer rigid codes of behavior 

and belief, and do not have tolerance for persons and ideas that deviate from the 

norm. By contrast, societies with strong uncertainty acceptance can more easily 

tolerate uncertainty. Hence, they can maintain a more relaxed atmosphere in 

which ―practice counts more than principles‖ (Radebaugh and Gray 2002). 

Masculinity versus Femininity - A masculine culture attaches 

importance to earnings, recognition, advancement, and being challenged by the 

work. A feminine culture attaches importance to working relationships, 

cooperation, having a desirable living area, and employment security. The 

decision to label this dimension ―masculinity versus femininity‖ is based on the 

fact that this was the only work goals dimension in which men and women 

scored consistently different. 

Long-term Orientation versus Short-term Orientation - The longterm 

orientation values persistence, adapts traditions to meet modern needs, has 

respect for social and status obligations within limits, tends to have large savings 

levels, and is willing to subordinate oneself for a purpose. The short-term 

orientation emphasizes respect for tradition, social pressure to ‗keep up with the 

Joneses‘, small savings levels, and a concern to get quick results. The long-term 

(dynamic) orientation is more oriented toward the future (persistence, thrift), 

70


while the short-term (static) orientation is rooted in the present and the past 

(status and tradition). 

This dimension tends to be somewhat confusing because it was not 

included in Hofstede‘s original survey. This was formulated as a response to the 

possibility of a ―western‖ bias in the survey instrument. To address the problem, 

a similar instrument was developed by Hofstede and Bond (1988), called the 

Chinese Value Survey (CVS). This dimension was originally described as 

―Confucian Dynamism.‖ The three dimensions common to both surveys are 

relationships between seniors and juniors, relationship with the group, and as a 

function of one gender, while none of the CVS factors are correlated to 

uncertainty avoidance. The term Confucian Dynamism was used because the 

characteristics that emerged were generally considered dynamic at one pole and 

static at the other, while demonstrating values that seemed to come directly from 

the teachings of the philosopher Confucius. 

It was stated earlier that history explains culture and culture dictates 

business practices. As the cultural centers of the Middle East, China, Meso- 

America, and Europe developed in relative isolation, cultural norms and business 

practices diverged. These differences can be seen in stark contrast today. Crosscultural 

comparisons have identified differences in the value systems and ethical 

beliefs of people from different parts of the world. For example, North American 

culture is rights-based, whereas the Sino-Confucian culture is duty-based. In a 

study examining obstacles in the implementation of the Sarbanes-Oxley Act in 

Thailand, Duangploy and Simms (2006) discuss the implications and difficulties 

in the exportation of standards. 

Barth (2008) points out that 

...culture changes slowly, not by fiat. Even if all firms were 

required to follow a particular IASB standard, there would be 

differences in how firms interpret the standard because of 

differences in their history and culture. Thus even with global 

accounting standards we might not achieve global financial 

reporting. (p. 1174) 

Cultural characteristics are persistent, displaying both inertia and 

momentum. Cultural inertia describes the tendency for a group of people with a 

common set of social standards and expectations to resist changes in existing 

behavioral patterns. Cultural momentum is the tendency for a culture to continue 

advancing in a set direction. Both inertia and momentum require effort and time 

to alter. An example of the persistent nature of cultural inertia can be seen in 

Japan during the decade following World War II. The effort displayed by the war 

was tremendous - destructive and devastating economically and politically, but 

not culturally. That would have required a great deal of time, but the U.S. ended 

the occupation in 1952, only 7 years later. As a result, the zaibatsu of pre-war 

Japan reemerged in the 1950s as exceptions to the Anti-Monopoly Law called 

71

Simms 

keiretsu, restoring many of the zaibatsu names with the blessing of the Ministry 

of International Trade and Industry (MITI) (Nobes 1983 1998). 

The establishment of the keiretsu occurred because the system works for 

the Japanese culture. However, this has caused friction in the areas of 

international business, finance and accounting. Japan was one of the founding 

members of the International Accounting Standards Committee (now the 

International Accounting Standards Board), and yet, at times, presented 

significant resistance to proposed standards such as the power of audit 

committees and the independence of boards of directors. One prevalent 

characteristic of economies of collectivistic cultures is cross-corporate 

ownership. In Japan, keiretsu control about half of the top 200 firms, 

representing more than 25 percent of all the country‘s assets. 

The first factor examined is debt-to-equity position, the second is the 

implementation of FAS No. 157, and the third is the implementation of IAS 39. 

Following after is a discussion of the role of technology in the global reaction to 

the crisis originating in the U.S. 

DEBT-TO EQUITY POSITIONS 

One characteristic of U.S. firms that stands out in comparison to non- 

U.S. firms is a greater reliance on equity financing as opposed to debt financing. 

Historical and cultural factors have played a role in the development of 

capitalization preferences. 

Two of Hofstede‘s cultural characteristics are of prime importance in 

contributing to the differences in financing: risk aversion and long-term 

orientation. As mentioned above, the U.S. culture is less risk averse and more 

short-term oriented. These two factors contribute to a philosophy of investing 

rather than saving. The characteristics apply not only to individuals, but to 

organizations as well. The result is a persistent, fundamental difference in debtto-equity 

and debt-to-asset positions between U.S. and non-U.S. firms as can be 

seen in Figure 1 and Figure 2. All data is from Compustat Fundamentals Annual 

database. Although the years from 2000 to 2007 are the subject of the current 

study, the trend in means has been well documented and observed historically. 

This study limits the examination to financial firms with total assets 

greater than 500 million in order to focus on those with a significant ability to 

maintain borrowing and lending activities at an international level. Twelve U.S. 

firms and 5 foreign firms were eliminated for lack of data. Firms that went into 

bankruptcy during this period were also eliminated in order to avoid including 

firms with suboptimal short-term strategies due to agency issues in a situation of 

existing or impending extreme financial distress. This resulted in a sample of 24 

U.S. firms and 18 non-U.S. firms. The non-U.S. firms included 8 Canadian, 4 

from the Pacific Rim, and 6 from the European Union (EU). Figure 3 shows 

long-term debt to equity and Figure 4 shows long-term debt to total assets. Both 

exhibit a more stable ratio for U.S. firms over the same period (Figures 3 and 4). 

72


Figure 1: Average Debt-to-Equity of U.S. vs. Non-U.S. Firms from 2000-07 

Total Debt / Equity 

35.0 

30.0 

25.0 

20.0 

15.0 

10.0 

5.0 

0.0 

2000 2001 2002 2003 2004 2005 2006 2007 

US 

Non-US 

Figure 2: Average Debt-to-Assets of U.S. vs. Non-U.S. Firms from 2000-07 

Total Debt / Assets 

0.97 

0.96 

0.95 

0.94 

0.93 

0.92 

0.91 

0.90 

0.89 

0.88 

2000 2001 2002 2003 2004 2005 2006 2007 

US 

Non-US 

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Figure 3: LT Debt-to-Equity of U.S. vs. Non-U.S. Firms from 2000-07 

Long-Term Debt / Equity 

3.00 

2.50 

2.00 

1.50 

1.00 

US 

Non-US 

0.50 

0.00 

2000 2001 2002 2003 2004 2005 2006 2007 

Figure 4: LT Debt-to-Assets of U.S. vs. Non-U.S. Firms from 2000-07 

Long-Term Debt / Assets 

0.12 

0.10 

0.08 

0.06 

0.04 

US 

Non-US 

0.02 

0.00 

2000 2001 2002 2003 2004 2005 2006 2007 

As can be seen in Figures 3 and 4, 2001 showed a marked increase in the 

long-term debt-to-equity and debt-to-assets position of non-U.S. financial firms. 

This was due to a combination of the economics, politics, and accounting 

standards. The economic situation in 2001 was in turmoil. After Enron, 

WorldCom, Arthur Andersen, and other high-profile failures, there was a fear of 

an increase in interest rates. This resulted in a move to ―lock in‖ current lower 

interest rates by moving from short-term to long-term debt. The volatility also 

reflects sensitivity to fuel prices as a result of the political situation. After the 

attack on the World Trade Center, many overseas firms borrowed heavily to 

74


insure against possible shortages in the energy market. The third factor 

contributing to increases in long-term debt in 2001 was the acceptance of 

international accounting standards, which allow for the classification as longterm 

many forms of debt that previously had been classified as short-term. This 

factor is discussed in more detail in the following sections. 

To provide additional context, Figure 5 shows pre-tax income as a 

percentage of revenues for these same firms over the same period. 

Figure 5: Pretax Inc.-to-Revenues of U.S. vs. Non-U.S. Firms from 2000-07 

Pretax Income / Revenue 

0.30 

0.25 

0.20 

0.15 

0.10 

US 

Non-US 

0.05 

0.00 

2000 2001 2002 2003 2004 2005 2006 2007 

FAS 157 AND THE EFFECT ON IFRS 

FAS 157 (FASB 2006), implemented in 2007, attempted to provide a 

common definition of fair market value accounting, but it did not change the 

rules as to when fair value should be applied. Many firms marked up the value of 

certain assets and then securitized them as MBS and then the same (or other) 

firms resecuritized those assets as CDO portfolios. Guarantors provided credit 

and/or liquidity support, and investors purchased a portion of a portfolio 

believing that the stratification of the portfolios provided protection against 

losses. These portfolios were in some cases used as collateral for loans. There are 

only two certainties concerning the market: it will go up and it will go down. 

When real estate values declined, the loans become under-collateralized. The 

most junior securities absorbed the losses first (as they were designed to). 

However, the illiquidity of the markets went beyond the ability of the guarantors 

to cover and many of the more senior loans collapsed as well. In some cases, the 

total assets of the firm became less than the debt and firms faced conditions of 

financial distress, even bankruptcy. 

Support for FAS 157 was not unanimous, with many practitioners, 

regulators and academics concerned that it violated the principles of historical 

cost and conservatism. There are many conditions under which historical cost can 

75

Simms 

be bypassed (if reliability is not significantly impaired). On the other hand, the 

principle of conservatism is a functional directive to the responsibility of 

protecting the investors and the public from methodologies that may overstate 

assets or net income. Conservatism also concerns the assessment of risk. 

Accountants and auditors working in the mortgage industry during the last six to 

eight years saw many examples of these types of assets and their derivatives. 

These problems are exacerbated by less-than transparent revelation of risk 

positions. In writing on the feedback effects between the subprime crisis and the 

credit crunch, Ryan (2008) states 

As firms announced losses on subprime positions, debt markets 

became more averse to holding these positions and increasingly 

illiquid, causing fair values of the positions to decline further and 

become more difficult to measure. A primary reason for these 

feedback effects is the opacity of many subprime positions. This 

opacity is attributable in part to the complex partitioning of the 

risks of these positions through (re)securitizations, credit 

derivatives, and other financial transactions. It is also attributable 

in part to the fact that many sub-prime positions are off-balance 

sheet in the so-called ―shadow banking system.‖ As a result of this 

opacity, market participants have aggressively price-protected 

themselves when bidding for those positions or avoided them 

altogether. Many holders ―capitulated‖ and disposed of or wrote 

down subprime positions to distressed valuations to remove the 

perceived taint from their balance sheets. (p. 1606-1607) 

In referring back to Figure 4, it could be that FAS 157 (implemented in 

2007) had a revelatory effect on the financial statements. It could also be that 

firms simply were not able to hide it any longer and saw the bailout as an 

opportunity to ―come clean.‖ With that in mind, it seems not unreasonable to 

expect that the implementation in the future may well enhance financial 

statement transparency because firms will not want to get caught out again. 

One item of concern concerning FAS 157 is the use of exit price as the 

basis of fair value measurement. The transaction to sell the asset or transfer the 

liability is a hypothetical transaction at the measurement date, considered from 

the perspective of a market participant that holds the asset or owes the liability. 

Therefore, the objective of a fair value measurement is to determine the price that 

would be received for the asset or paid to transfer the liability at the measurement 

date, that is, an exit price. The Board concluded that an exit price objective is 

appropriate because it embodies current expectations about the future inflows 

associated with the asset and the future outflows associated with the liability 

from the perspective of market participants. (para. 7) 

Woodward (2007) notes that commentators have expressed reservations 

about the use of exit price to determine fair value. However, she said there is 

support for using exit price to value quoted financial assets held for trading and 

76


other highly liquid assets. She states further that the more appropriate measure 

for assets acquired in a business combination is the entry price or value in use. 

The requirements of IFRS 3 (2007) ―Business Combinations‖ may need to be 

reviewed to ensure that the fair values of some assets are presented fairly. 

In Ernst & Young‘s February 2007 paper on ―Fair value measurements: 

the impact for financial instruments‖, the firm indicates that the introduction of 

SFAS 157 into IFRS without amendments to other IFRS standards could lead to 

unintended consequences where the definition of fair value in current IFRS is not 

the same as defined in SFAS 157. IFRS standards 7 (2006a) and 39 (2006b) in 

addition to IFRS 3 previously mentioned would need reviewing to ensure 

consistency in the definition of fair value. The current definition of fair value in 

IFRS 39 presumes that transaction price (entry price) is the best indicator of fair 

value. Without further amendment of IFRS 39 Financial Instruments: 

Recognition and Measurement to agree with SFAS 157, the initial recognition of 

amortized cost-based assets at exit prices would often result in the recognition of 

losses upfront. 

In the notes of an IASB work group meeting (2007), it was observed that 

IAS 39 Financial Instruments: Recognition and Measurement requires nearly all 

financial assets and financial liabilities be recorded at fair value upon initial 

recognition. In periods subsequent to initial recognition, many financial assets 

and financial liabilities are recorded at fair value, with changes in fair value being 

recorded into either profit and loss or into comprehensive income. IAS 39 defines 

fair value as the amount for which an asset could be exchanged, or a liability 

settled, between knowledgeable, willing parties in an arm‘s length transaction. In 

the financial assets working group paper, it states ―This definition is neither an 

explicit exit price nor an explicit entry price, but is an arm‟s length exchange 

price between unrelated parties” (2007). The Board (IASB) stated a preliminary 

view in the discussion paper supporting an exit price definition of fair value 

similar to the definition in SFAS 157. The Board‘s preliminary view is that an 

exit price definition of fair value is preferable to the current definition as it 

articulates a single measurement attribute that reflects the economic benefits 

market participants would expect from an asset or the outflow of economic 

benefits market participants would expect from a liability. However, an exit price 

might not be consistent with the current measurement objective of some fair 

value measurements required in IAS 39. Therefore, as noted in paragraph 17 of 

the Discussion Paper, if the Board proposes to revise the definition of fair value, 

it will complete a standard-by-standard review of the fair value measurements 

required by IFRSs to assess whether the intended measurement objective is 

consistent with the revised definition. If the Board concludes that a particular 

measurement objective is inconsistent with the proposed definition of fair value, 

that particular measurement might be relabeled using a term other than fair value 

(such as ‗current entry price‘.) 

Many are concerned that the IASB Discussion Paper is leaning towards 

an acceptance of the SFAS 157 position which could significantly change some 

of the key principles underlying many IFRS standards (Deloitte 2007). The 

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Simms 

Accounting Standards Board submitted its comments to the IASB on the 

Discussion Paper which are representative of the views of many parties in the 

UK and Ireland. Some of the main concerns expressed in the Deloitte paper are: 

 

 

 

 

 

 

“The use of fair values is more widespread under IFRS then under US GAAP 

and the ASB does not consider that SFAS 157 is suitable for consideration in 

many of those cases where fair value is used under IFRS; 

The ASB does not support the proposition that market based exit values are 

the most appropriate measure of fair value for all assets and liabilities to be 

reported in financial statements; 

The ASB believes that SFAS 157 is useful only as guidance on the 

methodology to be used in arriving at a market-based exit price and 

therefore the IASB Discussion Paper should be re-titled to reflect on its 

narrow focus; 

The ASB is of the view that SFAS 157 is based on the presumption that 

efficient markets are available for most transactions and the approach needs 

a „market participant‟ to be identified. The ASB believes that markets are 

not always efficient and hence measurement from a market participant‟s 

view may be flawed, with most transactions occurring in an imperfect market 

as a result of individual negotiations between two contracting parties; 

The ASB would welcome further debate on the „market participant‟ versus 

„entity specific‟ issue. While possibly open to different measurement, it 

should be acknowledged that the value of an asset or liability should be 

viewed from the perspective of the entity and thus reflect the entity‟s 

economic opportunities and constraints; and 

The general use of exit prices seems to move away from the assumption that 

initial measurement is transaction based, potentially leading to „day one‟ 

gains and losses being recognized which may not faithfully represent the 

entity‟s position in its financial statements.” 

There are clearly different views on fair value measurement and, in 

particular, the use of current exit prices. Looking at the financial statements 

different companies, one can notice that they had implemented FAS 157 and the 

standard did not have a material effect on the company‘s results. Apparently 

managers and accountants understand the details for the standard; however, we 

do not know what approach was used to arrive at that conclusion. 

Another item is the issue of restrictions in the use or sale of the 

instrument. If an entity is restricted from selling the instrument, then it is not 

allowed to adjust the price to fair value even if other unrelated parties are not 

restricted in the sale of similar assets. If a firm defines the ―most advantageous 

market‖ as a forward market (after the restriction period is passed), the value 

recorded may be unrealizable. 

In a Special Edition paper, Ernst & Young (2007) voices a concern in 

reference to block discounts being disallowed in both FAS 157 and IAS 39. As 

78


an entity-specific measure, EY concedes that allowing a block discount would 

introduce management intent into the valuation process. 

However, while undoubtedly some blocks of securities can be 

liquidated in smaller trades at the quoted prices, this will often 

not be possible; repeated selling, by the normal laws of supply 

and demand, will depress the price that can be achieved before 

the whole block can be sold. We continue to believe that it is 

appropriate to recognize block discounts, as it is intuitive that the 

entity will not achieve ‗price times quantity‘ for the block, no 

matter how it disposes of the securities. (p. 4) 

As the U.S. progresses inevitably toward the acceptance of IFRS, many 

of the issues of concern with U.S. GAAP will no longer be relevant. Of course, 

those issues will be replaced with issues concerning IFRS. 

CONCLUSION AND DISCUSSION 

As the process of convergence has proceeded, both U.S. GAAP and 

international accounting standards have necessarily evolved in order to facilitate 

the transition. The IASB and the FASB have worked closely together to 

(eventually) reach the goal of a single set of standards. As mentioned above, 

2001 saw the adoption of international accounting standards by many countries. 

As of this writing, over 100 countries have adopted international standards with 

the U.S. as the only major country not using international standards. That is not 

to say there will be universal agreement. The phrase ―international standards as 

adopted by the EU‖ may well be a foreshadowing of the accounting world to 

come. Different jurisdictions and different business practices have different needs 

to be fulfilled by the reporting system. 

Teaching in context provides the educator with the opportunity to expose 

the students to the fact that accounting standards (whether domestic or 

international) are not developed or implemented ―in a vacuum.‖ The process of 

standards development is often initiated because of economic transactions or 

events. Also, the rate of adoption and/or implementation of accounting standards 

can be facilitated or inhibited by market conditions. Finally, the application 

methodologies chosen should be interpreted within the framework of the 

situation in which the relevant firms or industries find themselves. All these 

factors can be used in the classroom to enhance not only the understanding of the 

standards, but also to emphasize the responsibility of those who would wish to 

argue for or against change. 

REFERENCES 

Barth, M. 2008. Global financial reporting: Implications for U.S. academics, The 

Accounting Review 83 5: 1159-1179. 

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Simms 

Financial Accounting Standards Board (FASB). 2006. Fair Value Measurements. 

Statement of Financial Accounting Standards No. 157. Norwalk, CT: 

FASB. 

Hofstede, G. 1991. Cultures and Organizations: Software of the Mind. London: 

McGraw-Hill. 

Hofstede, G. 2001. Culture‘s Consequences: Comparing Values, Behaviors, 

Institutions and Organizations Across Nations. Sage Publications, 

Thousand Oaks, London. 

Hofstede, G. and Bond, M. 1988. The Confucius connection: From cultural roots 

to economic growth, Organizational Dynamics 16 4, 18 pages. 

Nobes, C. 1983. A judgemental international classification of financial reporting 

practices, Journal of Business Finance and Accounting 10 1: 1-19. 

_____. 1998. Towards a general model for the reasons for international 

differences in financial reporting, Abacus 34 2. 

Radebaugh, L. and S. Gray 2002. International Accounting & Multinational 

Enterprises (5 th Edition). New York, NY. 

Ryan, S. 2008. Accounting in and for the subprime crisis. The Accounting 

Review 83 6: 1605-1638. 

Woodward, C. 2007. Fair Value Measurements - PricewaterhouseCoopers: 

Discussion paper on fair value measurement. IFRS News 49. 

International Accounting Standards Board (IASB). 2007. Business 

Combinations. International Financial Reporting Standard 3 (revised 

2007). London, UK: IASB. 

_____ 2006a. Financial Instruments: Disclosures. International Financial 

Reporting Standard 7. London, UK: IASB. 

_____. 2006b. Financial Instruments: Recognition and Measurement. 

International Financial Reporting Standard 39. London, UK: IASB. 

_____. 2007. IASB Meeting: Financial Instruments Working Group Paper: 

Agenda Paper 6. London, UK: IASB. 

Ernst & Young Global Limited. 2007. Fair Value Measurement: The Impact for 

Financial Instruments. EYGM, London, UK: EYG. 

Deloitte & Touche - Ireland. 2007. Current Exit Price – Is it Fair Value Deloitte 

website: 

http://www.deloitte.com/dtt/article/0,1002,cid%253D167068,00.html 

80



GLOBALIZATION OF THE ANGLO-SAXON MODEL 

OF HIGHER EDUCATION: IMPLICATIONS FOR 

GROWTH AND DEVELOPMENT OF THE 

KNOWLEDGE ECONOMY 

Stephen P. Wanger 

Zarrina K. Azizova 

Meng Wang 

Oklahoma State University 

ABSTRACT: This paper explores the philosophical foundation for the global 

knowledge economy, the Anglo-Saxon model of higher education. The paper 

highlights the primary characteristics of the model and explores how nationstates 

adopt or adapt these characteristics in an attempt to enhance their national 

position within the global knowledge economy. As an exploratory analysis of the 

topic, the paper provides a brief overview of the model, examines adaptations in 

Europe and Asia, and explores implications of these adaptations for individual 

students, higher education institutions, and nation states. The goal of the paper is 

to proffer a prefatory discourse on the Anglo-Saxon model and its connections to 

the global knowledge economy. 

INTRODUCTION 

Economic globalization is the phenomenon of increased interaction 

between nations and the progressive dismantling of borders and barriers to create 

a single economic space (Von Bogdandy, 2004). Within this space nations 

compete for economic advantage through the competitive use of human capital, 

innovation, information technology, and entrepreneurship; each of these is 

knowledge intense, thus the driving force behind economic globalization may be 

seen as the pursuit and acquisition of knowledge (Chen & Dahlman, 2005; 

Stromquist & Monkman, 2000). The result of this global dynamic is an emerging 

economy that is often labeled the knowledge economy, at the center of which is 

higher education. Encompassing a broad swath of public and private institutions 

ranging from trade and vocational colleges to doctorate granting research 

universities, higher education is pivotal to the creation and transmission of 

knowledge. 

This paper explores the philosophical foundation for the global 

knowledge economy, the Anglo-Saxon model of higher education. With 

educational characteristics that are adopted or adapted by individual nations— 

including (1) the use of English as the lingua franca, (2) the integration of 

research into teaching, (3) the authority of the teacher over the curriculum, 

teaching methods, and assessment, (4) a focus on the personal development of 

the individual student through critical reflection, (5) the bachelor, master‘s, 

doctoral qualification structure, and (6) the autonomy of the higher education 

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Wanger, Azizova, and Wang 

institution, particularly from central state control—the Anglo-Saxon academic 

model is playing a burgeoning role in the development of the global knowledge 

economy. Adapting some or all of the characteristics of the model, nations 

attempt to maximize their positions within the global economy by integrating 

their higher education systems, or a limited number of their premier institutions, 

into the global economic market. Consequently, the Anglo-Saxon model of 

higher education is connected to national economic growth and development. 

The goal of this paper is to provide a prefatory discourse on the Anglo- 

Saxon model and its connections to the global knowledge economy. The paper 

begins with a brief historical overview of the Anglo-Saxon model, comparing the 

model to the other dominant western, post-Enlightenment model of higher 

education. A cursory analysis of adaptations in Europe and Asia follows. The 

paper concludes with an examination of multiple implications of the model for 

the growth and development of the knowledge economy. 

HISTOROCIAL OVERVIEW OF THE ANGLO-SAXON MODEL 

The modern western university traces its roots to two models—or what 

may more appropriately be termed ―philosophies‖—of higher education. The first 

is associated with the reforms of Prussian universities by Wilhelm von Humboldt 

in the early nineteen century. The ideals expressed in these reforms spread 

beyond Prussia and impacted the development of higher education in Germany, 

France, and Eastern Europe. The second philosophy, the Anglo-Saxon model, is 

associated with British notions of education and their evolutions and adaptations 

in American, Australian, and to some extent, South African, higher education. 

These models may be compared across several perspectives, beginning with 

governance. 

Prior to the introduction of Enlightenment ideals and Humboldtian 

reforms in Prussia, state commissioners governed university instruction and 

academic life, even possessing the right to expel either students or professors 

who violated duties stipulated by the state (Richter, 1990). Humboldtian reforms 

allowed greater academic freedom and even limited democracy within higher 

education, however, they were primarily implemented to maintain higher 

education institutions as tools of the nation-state. The central state maintained 

significant influence over individual institutions. 

Contrary to this concept, the Anglo-Saxon model facilitated the 

development of autonomous, or virtually autonomous, higher education 

institutions. Although royal charters were granted by the nation-state, and 

institutions were created within the context of nationally coordinated systems, 

institutional autonomy was emphasized (Neave, 2001; Du Toit, 2007). National 

coordination was viewed as a means to insure that the needs of local 

communities, rather than the demands of the nation state, were met through 

higher education. According to Neave, ―[T]he university…was an emanation of 

that community and reflected, in its study program and its specialties, the 

community‘s educational and technical needs‖ (2001, pp 41- 42). Intermediate 

bodies such as the British University Grant Commission played an important role 

82


in representing universities to the state and vice versa. Furthermore, national 

facilitation of higher education did not negate institutional self-regulation of 

higher education finances (Neave, 2001). [Although such a discourse is beyond 

the scope of this paper, national coordination of higher education did not 

continue in the American colonies after the Revolutionary War and the 

subsequent ratification of the Constitution.] 

A second difference between the models may be seen in the areas of 

credentialing and the curriculum. Whereas universities within the Humboldtian 

model awarded national diplomas, institutions within the Anglo-Saxon model 

were allowed to validate and award their own degrees. Similarly, because Anglo- 

Saxon institutions were expected to respond to the needs of their own 

communities they were granted extensive freedom to design and implement their 

own curricula. This autonomy from the state implied a certain amount of freedom 

for teachers and faculty. In essence, universities were not obligated to run 

national programs because national programs did not exist. As Yorke (2004) 

notes, in the United Kingdom a long standing connection exists between 

academic programs and the economy in that programs are designed by individual 

institutions to develop skills needed for the labor market. 

The Anglo-Saxon model also placed a strong emphasis on the personal 

development of students through independent learning and critical enquiry 

(France, 2008). With the absence of state-controlled curricula, teachers were 

allowed to develop curriculum that was responsive to the learning styles and need 

of students. Closely aligned with this reality was an emphasis on character 

formation (Pritchard, 2004). 

In addition, associated with the freedom to develop dynamic and 

responsive curricula is the connection between teaching and research. As the 

disciplines evolved, professors were increasingly expected to design courses 

based not only on findings within their disciplines but also on their own research 

(France, 2008). Research and teaching thus became progressively intertwined in 

the Anglo-Saxon model. 

These basic distinctions highlight the historical roots of the Anglo-Saxon 

model. They facilitated the development of the model over the last two centuries 

in English-speaking nations, and over the last half-century the growing adoption 

and adaptation of the model throughout much of the world. The following section 

will briefly explore a small portion of these adaptations in Europe and Asia. 

ADAPTATIONS IN EUROPE AND ASIA 

Numerous national higher education systems across the globe are 

currently undergoing reform. These reforms may be seen in areas such as the 

nature and type of educational programs, the methods and language of 

instruction, an emphasis on research and development, burgeoning innovative 

partnerships, evolving funding mechanisms, and governance. Many of these 

reforms are influenced explicitly (some implicitly) by the global growth of the 

Anglo-Saxon model. Consequently, citing cases from every nation or every 

higher education system that is experiencing reform is beyond the scope of this 

83


paper. However, the following observations are grouped into two broad regions, 

Europe and Asia, to illustrate through reference to a limited number of examples 

the connection between the Anglo-Saxon model and global educational reform 

initiatives. 

Europe: Evidence regarding adaptation of the Anglo-Saxon model 

throughout Europe is growing. This is apparent in developments such as the 

Bologna process, the evolution of English as lingua franca in non-English 

countries, and changing state-controlled mechanisms of governance. Each of 

these is briefly addressed in the following paragraphs. 

Arthur (2006) contends that the Bologna process, as seen in Norway, is 

the equivalent of adopting the Anglo-Saxon model of higher education. Other 

scholars concur, suggesting that across Europe the Bologna process implies 

compatibility with the characteristics of the model (Ash, 2006; Zgaga, 2003). For 

example, traditional diplomas in some nations are being replaced with 

educational qualifications similar to the degrees associated with the Anglo-Saxon 

model, while specialization programs are being restructured into bachelors and 

master‘s degrees to ensure the separation of skill mastery and professional 

education (Alesi, Rosznyai, & Szanto, 2007). By 2003, 60 percent of the nations 

engaged in the Bologna process had either passed legislation to offer two-tier 

degree structures or had begun introducing them (Trends Report, 2003). In 

addition, curriculum development and program design are increasingly based on 

transnational descriptors of generic competencies, knowledge, and skills. 

Countries such as Albania, Bosnia-Herzegovina, Croatia, Kosovo, Macedonia, 

Montenegro, and Serbia note that the Bologna objectives provide a valuable 

framework for the reform of curriculum, programs, and teaching methodologies 

within their national higher education systems (Ash, 2006; Pechar & Pellert, 

2004; Reichert & Tauch, 2004; Miclea, 2003). 

The use of English in academia is growing (Coleman, 2006). Nearly two 

decades ago Ferguson (1992) noted that English often is the domain of academic 

conferences despite the fact that a small number of attendees may actually speak 

the language. The trend is more pronounced today and is evidenced beyond 

conferences and journals. In recent decades the Netherlands launched 500 

academic programs that are taught in English, while Finland launched 300 such 

programs, Germany began 150, and France initiated approximately 80 academic 

programs taught in English (Altbach, 2007; Miclea, 2003). These trends are 

buttressed by the findings of Schroder & Macht, now more than a decade old, 

that university students in 1,916 German, Belgian, and Finnish institutions 

support English as a single European language (Coleman, 2006). 

European adaptations of the Anglo-Saxon model are seen in evolving 

mechanisms of higher education governance. Increasing numbers of governments 

are loosening their financial control over higher education institutions by 

reducing university dependence on state funding. Universities are forced to rely 

on tuition and fees and other external funds, such as those from partnerships with 

the business community (Osborne, 2006). Perhaps the best illustration though 

appears in Germany. By amending the Federal Framework Act for Higher 

84


Education, the German government established a new legal status for 

universities, Lower Saxony, and granted them financial autonomy (Palandt, 

2003). 

These examples of recent developments in Europe reveal that some, if 

not all, of the characteristics of the Anglo-Saxon model may be seen in higher 

education reforms undertaken by European countries. Adaptations of the model 

are not limited to Europe, however. As the following section attests, they may be 

evidenced in Asia as well. 

Asia: In the process of market-driven economic globalization, Asian 

nations are transforming and internationalizing their higher education systems 

along the lines of the Anglo-Saxon model (Mok, 2006; Lee, 2006). Although 

Asian nations differ significantly in geographic size, economic wealth, political 

ideology, and educational tradition, they increasingly are employing aspects of 

the model to facilitate the development of their knowledge economies. 

The influence of the Anglo-Saxon model of higher education in Asia is 

rooted both in the historical colonization of some Asian nations and the western 

impact on non-colonized nations wrought through the work of missionaries and 

other international exchange activities. In the contemporary context, adaptations 

of the model are especially seen in the implementation of English as the language 

of instruction, or, as in the case of Singapore, as the sole language of higher 

education and research (Altbach, 1998). Beyond the use of English, universities 

are given flexibility and autonomy both to design broad-based curricula for 

addressing student needs and to adopt credit systems for recognizing individual 

differences (Mok, 2006). In addition, governments such as those in Japan and 

China are taking steps to conduct regularly scheduled quality assurance in an 

attempt to deregulate government authorization of public higher education and to 

promote the growth of private higher education (Altbach, 2006; Yonezawa, 

2005). Even in Southeast Asia governments are working to diversify the funding 

of higher education (Lee, 2006). 

Within growing Asian economies—especially in China, Singapore and 

Vietnam—higher education institutions are playing significant roles in 

innovation and economic development, reflecting the emphasis of the Anglo- 

Saxon model on research and development. Japan, for example, is implementing 

performance-based funding systems within its National University Corporations 

(national level institutions) to focus on innovative research for economic 

development (Oba, 2004). Furthermore, the Entrepreneurial University model in 

Singapore emphasizes research innovation and knowledge commercialization, 

calling for the fundamental ―re-examination of the traditional manpower 

development role of the university system in Singapore‖ (Wong, Ho, & Singh, 

2007, p. 944). 

Although the development of higher education systems varies in Asian 

countries, educational reforms typically emphasize marketization, privatization, 

and decentralization. The Anglo-Saxon model thus provides an incentive 

structure for higher education systems in the midst of reform to create a more 

effective, efficient, and equitable higher education sector that better serves the 

85


needs of developing knowledge economies. By introducing educational reforms 

and adapting some or all of the characteristics of the model, Asian nations are 

establishing clear objectives to align their higher education systems to the 

demands of the knowledge economy. 

IMPLICATIONS FOR KNOWLEDGE-BASED ECONOMIES 

The world economy clearly has moved from an industrial to a 

knowledge-based era. Scholars from various fields such as economics, business, 

and education contend that knowledge and its relevance to productivity become 

the basis for national competition within the global market (Drucker, 1993). 

UNESCO proffers that the growth of the global knowledge economy is a central 

characteristic of the globalization process (2005). National as well as 

international policy makers and economic players stress that the primary 

production factors now are an educated work force, information, intellectual 

property, education, and R&D. Within this context knowledge is increasingly 

valued for its strict utility rather than as an end in itself (Peters, 2007). 

Knowledge economies are those not only based on the generation of knowledge 

but those that exploit knowledge for economic gain (Great Britain, 1998). The 

World Bank further defines a successful knowledge economy as one that is 

characterized by ―close links between science and technology, greater importance 

placed on innovation for economic growth and competitiveness, increased 

significance of education, and lifelong learning and greater investment in 

intangibles such as R&D, software, and education‖ (World Bank, 2005, p. 16). 

The importance of human capital is crucial to knowledge economies. Not 

surprisingly, the OECD and the World Bank stress the significance of education 

for the development of human capital, including the enhancement of worker 

competencies through the production of research-based scientific knowledge 

(Peters, 2007; World Bank, 2001; World Bank, 2005; World Bank, 2008). The 

role of higher education is therefore critical for the production of a highly 

educated, widely skilled workforce that will positively affect knowledge 

accumulation and its application to productivity growth (Knight & Yorke, 2003). 

Along this line, the Lisbon Strategy emphasizes the strategic role of universities 

in the knowledge economy as (1) the providers of education, (2) the primary 

location where research is conducted, and (3) the drivers of innovation 

(Michalski & Cheyne, 2008). Within EU policies the emphasis is on enhancing 

employability through education and training. This implies that the production of 

a skilled workforce to meet the needs and demands of global corporations—to 

say nothing of the ideology of life-long learning—are key strategies that ensure 

national economic growth. 

Higher education stands as the driving force for the development of 

knowledge-based economies. The major elements that higher education 

contributes to this process include lifelong learning skills, student-centered 

education, transferable educational qualifications for global graduates, English as 

a lingua franca, research and technology transfer, scientific discovery, 

innovation, and economic growth, all of which are intertwined in the successful 

86


development of a knowledge-based economy. These elements are highly 

correlated with the previously discussed characteristics of the Anglo-Saxon 

model, so it is not surprising to see adaptations of the model across the globe. 

Implications stemming from these adaptations are addressed in the following 

paragraphs and are grouped along three considerations: the individual student 

level, the institutional level, and the national level. 

Student Level—A Global Set of Skilled Graduates: One implication 

of the adaptation of the Anglo-Saxon model is the production of a global set of 

graduates. According to the World Bank, the new knowledge-based economy no 

longer favors narrowly specialized graduates, but ones with cross-disciplinary 

knowledge, broad and transferable skills, and functional flexibility (World Bank, 

2005; Brennan, 2004; Knight & Yorke, 2003). As the Dearing Report suggests, 

higher education institutions should be at the forefront in offering opportunities 

for lifelong learning in order to increase the stock of human capital for national 

economic well-being within the global context (Knight & Yorke, 2003). 

The knowledge economy seeks workers with the ability to adapt to the 

rapidly changing nature of work, hence lifelong learning becomes a critical 

component of global educational reforms (Spring, 2008). Indeed, the primary 

rationale behind the Bologna process for establishing a three-tiered higher 

education system is to separate research and professional education from studentcentered 

teaching. At the bachelor‘s level, the emphasis is on student-centered 

teaching that develops the skills and competencies necessary for lifelong 

learning. Key descriptors of the Bologna reformation of academic programs 

include ―academic and generic competencies‖ and ―knowledge and transferable 

skills,‖ with the latter focusing on critical thinking, communication, and problem 

solving (Arthur, 2006; Christensen, 2004; Koutsopoulos, 2008). With the 

demands of the global labor market and the need for sustainable economic 

growth, many Asian nations are restructuring university curricula by shifting 

from the conventional "teacher-oriented" approach to a more "student-oriented" 

approach; to produce global graduates, the concepts of independent and selfmotivated 

learning are increasingly promoted (Mok, 2006; Meek, 2006). Within 

these reforms creativity and innovation become important components for the 

assessment of student abilities. 

The themes of competency development and lifelong learning appear 

throughout global higher education. Along with these themes are calls for 

consistent and transnational academic program structures. The adaptation of 

credit systems in many Asian countries reflects not only the reform of university 

curricula to become more responsive to individual student differences but also 

the need to ensure the transferability of credentials (Mason, Arnove, & Sutton, 

2001). In Japan, program evaluation and assessment have shifted from being the 

sole responsibility of the government to a shared stakeholder responsibility in 

order to enhance internationalized curricula and address student and employer 

needs (Huang, 2006). According to ministries, rectors, and higher education 

leaders in Europe, restructuring and implementing credit systems consistent 

87


across national higher education systems will ensure and enhance the 

employability of graduating students (Reichert & Tauch, 2004). 

The widespread use of English in teaching, learning, and scholarly 

research also equips both higher education institutions and their respective 

graduates for the international community and the global labor market. A 

majority of Asian nations now emphasize improving English language 

competence not only for higher education students but for all citizens. According 

to Tsui and Tollefson (2007), Asian nations are responding to globalization by 

recognizing English as a key economic variable for future growth. The Malaysian 

government, for example, abandoned the Malay language educational policy that 

it observed for the first 26 years after independence and implemented an English 

language educational policy in science and technology related majors (Tsui & 

Tollefson, 2007). This was due to the belief that inadequate English competence 

would cause Malaysian university graduates to be less connected with up-to-date 

science and technology information; the government reasoned that it could not 

allow communication obstacles to cause it to lose pace amidst global competition 

(David & Govindasamy, 2007). Similar arguments can be found behind language 

reforms in Europe, including the French reform known as ―Content and 

Language Integrating Learning‖ which is argued to have implications regarding 

student employability and student mobility directly related to the development of 

the global knowledge economy. Each of these developments highlights the 

growing influence of the Anglo-Saxon model of higher education and the global 

trend to adapt aspects of the model as a means to produce global graduates. 

Institutional Level—Accentuating Collaboration and Knowledge 

Application: At the institutional level, implications of the Anglo-Saxon model 

on the development of the knowledge economy are readily observed in the 

growing emphasis among colleges and universities on innovation, entrepreneurial 

partnerships, and the application of new knowledge. Meek describes the 

emerging pattern as ―knowledge being produced in a context of application, 

transdisciplinary in nature, needing heterogeneous skills, organized around 

simpler and more temporary management structure, more socially accountable 

and reflexive, and more reliably assessed by a variety of practitioners‖ (2006, p. 

20). 

Prior to their adaptation of some of the characteristics of the Anglo- 

Saxon model, most Asian nations emphasized teaching-oriented higher education 

institutions, to which they made limited research funding available. Economic 

globalization, however, is exerting pressure to sustain growth, expand research 

capacity, and produce highly trained human capital. The typical national response 

is an emphasis on knowledge application through innovative research and the 

development of technology. As a result, many global companies such as Nokia 

and Hankel are establishing their research centers in Asia and are partnering with 

prominent universities (Asakawa & Som, 2008). Graduate students, in particular, 

are able to work with industry representatives to create and apply new 

knowledge. 

88


Adapting the institutional autonomy principle of the Anglo-Saxon model, 

many Asian nations are transforming some of their national public universities to 

corporatized, entrepreneurial universities that have less control from state 

governments but more connection with industry and the community. These 

universities focus on innovative research for economic development, while 

producing a well-educated workforce that will contribute to the growth of the 

national knowledge economy (Li & Scullion, 2006). The outcome is greater 

linkage between research and economic development. 

In Europe, where the trend likewise is toward institutional autonomy and 

reduced state financial support, the implications are similar. Governments, by 

reducing funding, push universities toward innovative partnerships with their 

business and industry communities (Osborne, 2003). The emerging governance 

model is one of state supervision rather than state control of higher education. 

According to Palandt (2003), the new model is based on principles of contract 

management and stresses management by targets, deregulation, and flat 

hierarchies. Such a model allows universities to develop greater competitive 

potentiality; less constrained by bureaucracy, they are more flexible and 

responsive to their environments. In turn, this nimbleness reinforces the growing 

university role as an innovative business partner in the application of knowledge. 

National Level—Decentralization and Deregulation: These 

institutional implications may be seen from a broader perspective, namely, that of 

the central government. Here, as a result of adapting the Anglo-Saxon model, the 

emphasis is on the decentralization and the deregulation of higher education. For 

example, many nations in Asia—such as China, South Korea, and Vietnam— 

historically regulated higher education through centralized planning, 

administration, and funding of the national higher education system (Meek, 2006; 

Lee, 2006). Within the new global environment, however, decentralization has 

become unavoidable. The decentralization process in China manifests two 

primary characteristics that are readily apparent in the preceding discussion 

regarding the individual and the institutional levels: (1) a shift from total central 

control of higher education to guidance of higher education, and (2) diminishing 

state funding of higher education with the expectation that institutions will 

replace government funding with multiple revenue streams from collaboration 

and innovation (Zhong, 2005). Furthermore, in Indonesia, Japan, and Thailand, 

governments are making "universities autonomous statutory authorities with full 

authority over their resources and operations‖ (Meek, 2006, p. 36). 

Beyond decentralization is the global trend of the deregulation of higher 

education. Governments around the world are under pressure, primarily in 

response to the global knowledge economy, to educate greater numbers of 

citizens for longer periods of time. One response to this pressure is increased 

reliance on private higher education. Sadlak & Vlasceanu (2007), for example, 

consider the proliferation of private higher education in Europe as an 

unavoidable reality, but call for accountability and quality assurance systems for 

the private sector. Although the rapid world-wide explosion of private higher 

89


education may be attributed to numerous factors, the likely link to the Anglo- 

Saxon model warrants further examination. 

The implications of the Anglo-Saxon model of higher education on the 

development of the knowledge economy certainly extend beyond those 

highlighted in the preceding paragraphs. The limited scope of this paper permits 

neither full exploration nor full explication of the ramifications. Additional 

research seeks to address this situation and is the ongoing focus of the authors. 

CONCLUSION 

The global trend toward knowledge-based development is challenging 

nation-states to redefine their economic and educational strategies. The Anglo- 

Saxon model of higher education, as a philosophical approach, often sets the 

framework for educational reforms. Globally, the perception increasingly is that 

failure to adapt some of the characteristics of the model could have negative 

repercussions on nations and their higher education systems, including the lack of 

recognition of research findings, problems with the transferability of graduates, 

and potential isolation from international networks (France, 2008). At the same 

time, unique local contexts and national identities should be both recognized and 

maintained within the globalization process; these should not be abandoned. The 

result is that future research should concentrate not only on the global adoption 

and adaptation of the Anglo-Saxon model but also on the preservation of cultural 

contexts. 

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93



REQUISITE VALUES FOR THE NEW 

GLOBAL INSTRUCTOR 

Gary Oster 

A. Gregory Stone 

Regent University 

ABSTRACT: Instructors in business schools, colleges and universities have 

provided an important contribution to the knowledge and capabilities of business 

leaders. They plugged the ―capabilities gaps.‖ This paper posits although the 

educational values of those instructors have been serviceable in the tranquil past, 

they are inadequate for the turbulent future. Anecdotal evidence indicates there 

are five key values that must be redefined if contemporary instructors are to play 

a crucial role in the development of future global business leaders: curiosity, 

knowledge, intimacy, challenge, and experimentation. Because the primary goal 

of business educators is to appropriately ―prepare a broad and diverse cast of 

players for roles in dramas not yet conceived‖ (Hirshberg, 1998, p. 56), these five 

key values must be developed and implemented into business curriculums to be 

relevant to the unfolding global economic environments. Unless the values of 

business educators are globalized, their instructional efforts will not be relevant 

to the development of future global business leaders. Business educators might 

ultimately resemble Civil War reenactors, comfortably enjoying the spectacle and 

pageantry of the fight, but without a passion for the cause or the danger of the 

bullet. Future empirical research studies can examine each of these five key 

values to provide more tangible evidence. 

INTRODUCTION 

Had the mouse in Kafka‘s ―A Little Fable‖ (1995) wisely changed 

direction, he would have noted that the world was actually growing larger every 

day. Substantive advances in organization, technology, communications, 

transportation, and finance have now rendered even the smallest company a 

potentially vibrant element of the dynamic global marketplace. More than ever 

before, global leaders are truly required in today‘s marketplace. 

An important contribution to the knowledge and capabilities of business 

leaders has heretofore been provided by instructors in business schools, colleges 

and universities. This paper posits that, while the educational values of those 

instructors have been serviceable in the tranquil past, they are inadequate for the 

turbulent future. Unless the values of business educators are globalized, it is 

likely that their instructional efforts will not be relevant to the development of 

future global business leaders. Five key values must be redefined if contemporary 

instructors are to play a crucial role in the development of future global business 

leaders: curiosity, knowledge, intimacy, challenge, and experimentation. 

94


LITERATURE REVIEW 

The need for new global leaders: The literature on global leadership 

yields definitions of a global business leader, but McCall (2002, p. 31) may best 

summarize in stating, ―The essential border crossing that makes a job global or 

international is crossing the border of culture, a border defined at its most basic 

level by geography, languages, and other divisions that relate to the differences 

among people and their habits.‖ Black (1999, p. 186) further noted that, ―The 

basic mental process of developing into a global leader involves getting your 

mind around the whole world—not just one country,‖ and McCall (2002, p. 104) 

noted, ―At some point a fundamental transformation takes place for successful 

global executives—a transformation that can be described in shorthand as the 

acquisition of a global mind-set. Transformed executives become more 

cosmopolitan, they extend their perspective, they change their cognitive maps.‖ 

There is, however, a significant shortage of leaders who possess the 

capabilities, experience, and mindset to effectively lead an international 

organization. As Rosen (2000, p. 25) noted, ―We‘re in a leadership dilemma. We 

need global leaders at a time when markets and companies are changing faster 

than the ability of leaders to reinvent themselves. We have a shortage of global 

leaders at a time when international exposure and experience are vital to business 

success. And we need internationally minded, globally literate leaders at a time 

when leadership styles are in transition around the world.‖ Black (1999, p. 20) 

similarly noted, ―For many corporations, this global leadership gap is a growing 

crisis…Global leaders are needed and are in short supply.‖ 

If the personal intellectual growth in global leaders does not equal or 

exceed that in the economic environment, their worth is diminished. To maintain 

relevance, innovation in learning is essential: ―In a world of ever-accelerating 

change, innovation is the only insurance against irrelevance…And in a global 

economy where knowledge advantages dissipate ever more rapidly, innovation is 

the only brake on commoditization‖ (Skarzynski, 2008, p. xviii) As Andrew 

(2006, p. 195) posited, ―When leaders undertake the task of improving the 

performance of their innovation activities, the effort frequently involves the 

identification and closing of capabilities gaps—both in their organizations and in 

themselves.‖ 

An important contribution to the knowledge and capabilities of business 

leaders has heretofore been provided by instructors in business schools, colleges 

and universities. They helped plug the ―capabilities gaps.‖ This paper posits that, 

while the educational values of those instructors have been serviceable in the 

tranquil past, they are inadequate for the turbulent future. Unless the values of 

business educators are globalized, it is likely that their instructional efforts will 

not be relevant to the development of future global business leaders. 

Five key values must be redefined if contemporary instructors are to play 

a crucial role in the development of future global business leaders: curiosity, 

knowledge, intimacy, challenge, and experimentation. 

95

Oster and Stone 

Defining personal and organizational values: Values define who we 

are as individuals, groups, organizations, corporations, regions, countries, and 

continents. Values are constant, passionate, fundamental beliefs, collectively 

called a ―worldview,‖ that propel the actions of individuals and corporations. In 

describing values, Malphurs (2004, p.37) said, ―A study of values concerns your 

beliefs, but not just any beliefs. Values are rooted in your core or central beliefs.‖ 

Rokeach (1973, p. 5) defined values as ―An enduring belief that a specific mode 

of conduct or end state of existence is personally or socially preferable to an 

opposite or converse code of conduct or end state of existence.‖ 

Personal values are generally acquired through education, observation, 

and experiences, and may be taught or influenced by parents, friends, work 

associates, religious institutions, community, and educational institutions. Value 

are of a special value to individuals. An individual‘s values frame his or her 

worldview, and provide needed order and direction to his or her life: ―Worldview 

is the lens that people use to interpret their reality and assign meaning to events, 

experiences, and relationships‖ (Fisher, 2004, p. 2). 

Individuals can self-identify their personal values: ―All of a person‘s 

values, unlike all of a person‘s needs, are capable of being openly admitted, 

advocated, exhorted, and defended, to oneself and to others, in a socially 

sanctioned language‖ (Rokeach, 1979, p. 48). Individuals not only learn specific 

personal values, they also order and prioritize their values: ―In this kind of case 

our desires are classified in such categories as higher and lower, virtuous and 

vicious, more and less fulfilling, more and less refined, profound and superficial, 

noble and base‖ (Taylor, 1985, p.16). 

Because personal values are capable of being openly articulated, 

advocated, exhorted, and defended, they ultimately shape organizational values. 

All activities of an organization are considered through the lens of the corporate 

values, and values therefore have major import to the long-term viability and 

growth of an organization. Values serve as the conceptual foundation upon which 

individual and group life is constructed. 

While values are often strong and difficult to change, they are not 

necessarily permanent, and must be considered when altering corporate direction: 

―The real problem is that entire classes of organizations (business, government, 

education, etc.) have become outmoded in this shifting environment, and so the 

big need is for institutional change. Unlike the relatively easy work of 

organizational change—process design, teamwork, leadership, etc.—institutional 

change involves redefining the underlying rules or values that govern these social 

structures‖ (Halal, 2008, p. 108) 

Because the primary goal of business educators is to appropriately 

―prepare a broad and diverse cast of players for roles in dramas not yet 

conceived‖ (Hirshberg, 1998, p. 56), these five key values must be developed and 

implemented into business curriculums to be relevant to the unfolding global 

economic environments. For curiosity, knowledge, intimacy, challenge, and 

experimentation to impact the development of future global business leaders, 

96


business instructors must first apply a new global worldview instructional 

paradigm to classroom activities. 

Encouraging the value of insatiable curiosity: Curiosity may be the 

value that most easily identifies a prospective global leader. To effectively pass 

the spark of insatiable curiosity of business students, educators must intentionally 

shift the focus of attention from themselves to the future downstream customers 

of students. As Fraser (2006, p. 26) noted, ―If you begin with the user and set out 

on a path to look at the broader context of their lives and activities, you will 

suddenly see a whole new set of opportunities to be tapped.‖ By focusing on 

engaging the complex real-world problems of end-users, students become valued 

partners of educators. 

As Black (1999, p. 27) said, ―Inquisitiveness is at the core of our global 

leadership model …Inquisitiveness is a state of mind, and a vital characteristic of 

global leaders.‖ Black (1999, p. 48) added, ―Global leaders are global explorers. 

They approach everyday business as an adventure and press beyond the horizon 

of everyone else‘s reality.‖ He believed that whenever one enters any new 

environment, they enter with a learning assumption that they always have 

something to learn, rather than a knowing assumption (Black, 1999, p. 54). 

Inquisitiveness is critically important in the development of a global 

leader. First, it encourages them to gather data necessary to make good decisions. 

As Black (1999, p. 42) stated, ―Inquisitive global leaders are curious in the face 

of uncertainty. Inquisitiveness not only helps global leaders seek out useful and 

timely data, it helps them sort through and make sense of that data.‖ Black 

believed that leaders are personally committed to gathering data—about markets, 

competitors, best practices, internal organization, cultures, people, and 

technologies—and to seeing how that data interconnects (Black, 1999, p. 56). 

Secondly, inquisitiveness encourages an openness to new business 

opportunities. Again, Black (1999, p. 51) noted, ―To know the terrain, or 

competitive context at home or abroad, inquisitiveness drives global leaders to 

challenge the outer edges of individual and organizational limits. Global leaders 

develop questions and look for opportunities to raise them in their business 

relationships.‖ 

Finally, inquisitiveness engenders emotional stability, crucial to 

successful international work. ―Without a constant, childlike fascination for 

people, cultures, and ideas, global leaders can become overwhelmed by the daily 

rigors of conducting international business.‖ (Black 1999, p. 67) Black 

summarized by positing, ―What is the bottom line for inquisitiveness Global 

leaders don‘t go a day without learning. They are much more likely to pay 

attention to ‗to learn‘ lists rather than ‗to do‘ lists.‖ (Black 1999, p. 68) 

Over the decades, the focus of business education was on the professor, 

considered to be the repository of everything worth learning. There was almost a 

reverence for the ―sage on the stage.‖ The arrival of computer-mediated learning 

changed the focus, and the professor has shifted positions to the ―guide on the 

side.‖ Habit and comfort zones will let some business educators be satisfied to let 

knowledge become discrete, finite, absolute, and permanent. Those business 

97


educators might ultimately resemble Civil War reenactors, comfortably enjoying 

the spectacle and pageantry of the fight, but without a passion for the cause or the 

danger of the bullet. 

The value of curiosity can be promoted in the actual context of the 

discovery process. Faculty are familiar with admitting that there may be more 

worlds beyond those they know, postulating numerous possibilities through 

hypotheses, and devising empirical methods to test them. The next step is to 

recognize and develop a comfortableness with failure as a routine milestone on 

the road to success, and to continually seek more effective and economical 

solutions to incite and enhance the value of curiosity in students. 

Gaining knowledge through the value of abductive learning: One 

mechanism that business educators can use to influence future global leaders can 

be achieved by reaching beyond typical inductive and deductive logic to include 

abductive reasoning. In abductive reasoning, constraints are temporarily ignored 

and initial judgment is suspended as all plausible ideas are positively reviewed. 

As Liedtka (2006, p. 18) asserted, ―Great design inevitably starts with the 

question ‗What if anything were possible‘‖ She advanced the thought that 

strategy is an invention and a product of our imaginations. Assumptions based 

upon tradition and orthodoxy constrain our imaginations, which, in turn, limit 

what we consider as strategies. Consequently, releasing the assumptions that 

arise from what one believes can be the first important step in engaging 

adductive reasoning. 

Not all events in the dynamic business environment go according to plan. 

In a similar manner, not all learning is always complete or neatly packaged: 

―Learning to detect weak signals in the distance helps the astute organization to 

recognize the once unrecognizable. Learning to do so ahead of the competition 

provides the strategic advantage that can ensure survival. What becomes 

immediately clear is that organizations that consciously decide to tune in to these 

far-off, fuzzy, intermittent signals get critical information faster than those who 

wait for it to arrive in a neat, orderly bandwidth‖ (Gryskiewicz, 1999, p. 12). 

Prospective global leaders need to acquire skills to bridge cultures. 

McCall noted, ―Generic lessons by definition contain general rules or 

conclusions for going into any new culture, rather than rules or conclusions 

aimed at a specific culture. Make sure you understand, make sure you are 

understood, build new relationships, recognize how people view you as a boss, 

be patient and tolerant, show some humility, be clear on your own ethics and 

values—all of these are among the lessons of multicultural experience.‖ (McCall 

2002, p. 86) 

Modern educators must intentionally recast the value of knowledge. As 

scholar Warren Bennis noted, ―Without openness, the crucial problems might 

never be discovered, solutions might never be found‖ (Bennis, 1997, p. 175). As 

Von Krogh (2000, p. 21) asserted, ―People are loath to accommodate new 

knowledge that undermines or runs counter to their stories, especially if that 

knowledge is conveyed by other group participants with different backgrounds,‖ 

echoed by Charan (2007, p. 55), ―Arrogance and insecurity are likely to interfere 

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with this know-how, causing you to filter out unwanted news and other points of 

view.‖ 

Intellectual fragmentation is especially dangerous in this era of 

innovation: ―This limited world-view is becoming more dangerous in the 

turbulent and dynamic business environment that we find ourselves in. In many 

industries such as consumer electronics, automobiles, and software, products 

have become more complex in terms of their features, their underlying 

technologies, and their design. Therefore, the knowledge and skills required to 

design and develop new products and services have become much more diverse 

and more demanding. Innovating such new products and services thus calls for 

not only a command of diverse sets of knowledge and expertise but also the 

ability to make non-obvious connections between such diverse knowledge bases‖ 

(Nambisan, 2008, p. 16). 

To bolster the value of knowledge, business educators also need to 

encourage students to expand where they seek knowledge, including to what 

Burkan (1996, p. 162) calls ―saviors on the edge.‖ He believes saviors on the 

edge are found outside of one‘s industry, and sometimes, outside one‘s field. 

Biologists have a term that explains why these unlikely individuals hold your 

solutions. They call it ―convergent evolution.‖ Convergent evolution states that 

two very different species develop features that are very similar—not because 

they are related, but because they solve the same type of problem. This is the 

nature of saviors on the edge. They are related, not by industry or profession, but 

by similarity of problems. 

Nambisan adds that it is an important role of the business educator to 

continually extol the importance of broad learning, and to challenge longstanding 

orthodoxies. This, in turn, reduces knowledge compartmentalization while 

demonstrating that all learning is, by definition, inherently ―open-source.‖ 

(Nambisan, 2008, p. 16) 

The value of intimacy with learning for global leaders: A prolonged 

experience of living and working overseas is an essential element in the 

development of effective global leaders and significantly complements classroom 

learning. As Black (1999, p. 200) noted, ―International assignments are the most 

powerful means of developing global leaders because (1) working in a foreign 

country provides mind-stretching experiences and (2) because these experiences 

are hard, if not impossible, to avoid.‖ 

The most effective method of learning in a overseas posting is to ―get 

wet,‖ as described by Black (1999, p. 190). ―Getting wet really amounts to diving 

deep into the waters of the society in terms of what shopping, education, homes, 

and so on, are really like for the people who live there…Engaging all your 

senses—sight, hearing, smell, taste, and touch.‖ According to Black, engaging all 

of one‘s senses makes the difference between merely observing and actually 

experiencing a new place when one travels to it. 

Understanding the labyrinth of nuance and subtlety in other cultures is 

immensely difficult for most people. To develop the required intimacy, McCall 

(2002, p. 137) talked of the importance of a ―significant other‖ to the learning of 

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global leaders: He explained, ―Exposure to significant other people was the 

experience described by the largest proportion of our executives (32 percent). 

Black (1999, p. 207) said, ―You need someone—preferably a host country 

national—who knows all the cultural road signs and traffic rules, and can both 

guide you and give you feedback as you form new mental maps and behavior 

patterns.‖ 

McCall believed that the guidance provided by others (either actively or 

simply by example) could make the difference between success and failure 

(2002, p. 10). Black added to this line of thinking by explaining that only 

experienced mentors can help international neophytes learn that, ―To understand 

different viewpoints, global leaders must relate personally to the lives of 

employees, customers, and other who are relevant to the business.‖ (1999, p. 

121) 

World-wise faculty are often most uniquely qualified to add both specific 

skill sets and perspective to the experiences of future global leaders. Educators 

can provide the essential bridge between theoretical constructs and workplace 

application, encouraging prospective global leaders to deepen the value of 

intimacy. 

The value of challenging quantum objectives: If a company sets its 

objective to increase profitability by two percent, then it may achieve its two 

percent profitability. But how could the same company achieve a fifty percent 

increase in profitability That‘s so much bigger that it changes everything, and 

requires a new way of thinking, new strategies, and new metrics. The company 

has to have the capability to destroy the very infrastructures that achieved its two 

percent to put new infrastructures in place to achieve the challenging quantum 

objective of fifty percent. 

Educators have traditionally used incremental thinking to teach students, 

and incremental strategic thinking was the result. For the future global leaders, 

however, business educators have to abandon the instructional strategies that 

have been effective in the past, and move on to much bigger instructional 

paradigms to prepare students for challenging quantum thinking. 

For global leaders to succeed in the remarkably competitive worldwide 

economic environment, experienced business educators need to help them 

reframe the value of challenge through the utilization of new metrics. As 

strategist Gary Hamel (2002, p. 81) noted, ―Only by pushing the pedal to the 

metal, by reaching for the seemingly impossible, is it possible to escape the limits 

of current processes and discover new possibilities.‖ 

Successful global leaders embrace the challenge of quantum objectives, 

knowing that they automatically inspire new pathways of thought and action. 

They live to solve complex, intractable, obviously unrealistic, really hard 

problems. The goals of true innovators are significantly different from those who 

are not innovators. According to the University of Toronto School of Business 

Dean Martin, ―Toyota pursues perfection by starting with the ideal, then working 

backward, removing anything that stands in the way.‖ That means looking at the 

target in a fundamentally different way. It means asking what it is that is 

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blocking perfection versus the more traditional approach of what can be 

improved (May, 2007, p. 42). 

Martin also stated, ―The source of status and pride in design 

organizations derives from solving ‗wicked problems,‘ problems with no 

definitive formulation or solution, whose definition is open to multiple 

interpretations...in design shops the dominant mindset is, ‗there is nothing that 

can‗t be done.‘ If something can‘t be done, it is only because the thinking around 

it hasn‗t yet been creative and inspired enough.‖ (Martin 2005, p. 6) The concept 

of ―wicked problems‖ was first popularized by a series of articles during the 

1960s and 70s by Horst Rittel and Melvin Webber as they studied social 

planning. They described ―wicked problems‖ as those with incomplete, 

contradictory, and changing requirements, and solutions that are often unclear. 

In today‘s turbulent economy, global business leaders face a steady 

stream of ―wicked problems.‖ The use of quantum objectives automatically 

reframes problems: ―Nonlinear innovation requires a company to escape the 

shackles of precedent and imagine entirely novel solutions to customer needs and 

dramatically more cost-effective ways of meeting those needs‖ (Hamel, 2002, p. 

14) May added that the value to innovation in learning how to see lies in 

changing one‘s perspective on the problem (May, 2007, p. 88). Challenging 

quantum objectives requires educators to make a significant change to how they 

approach their instruction. 

Approaching success through the value of experimentation: Although 

the value of experimentation will always be important in validating hypotheses in 

all branches of learning, business educators must recast the value with a new and 

increasingly expansive meaning. Experimentation can no longer only be a 

structured means to an end: it must also routinely be a means to a means. 

Throughout history, colleges and universities have used experimentation 

to facilitate choice between multiple research outcomes. Business faculty have 

similarly promoted that approach as they taught future business leaders. Boland 

argues that managers are, ―Trained and rewarded for being decision makers – to 

have alternatives presented to them from which they make choices by computing 

net present values, optimizing underassumed constraints, and trading off risks for 

returns.‖ (Boland, 2006, p. 52) 

Experimentation must become a continuous process through which new 

and unforeseen ideas bubble to the surface for consideration. Boland (2006, p. 

50) ably compared the traditional form of experimentation (―decision attitude‖) 

to design thinking (―design attitude‖): ―A ‗decision attitude‘ toward problem 

solving is used extensively in management education. It portrays the manager as 

facing a set of alternative courses of action from which a choice must be made. 

The decision attitude assumes it is easy to come up with alternatives to consider, 

but difficult to choose among them. 

In contrast, the ‗design attitude‘ toward problem solving assumes that it 

is difficult to design a good alternative, but once you have developed a truly great 

one, the decision about which alternative to select becomes trivial. The design 

attitude appreciates that the cost of not conceiving of a better course of action 

101


than those that are already being considered is often much higher than making 

the ‗wrong‘ choice among them.‖ Key reasons that global leaders innovate 

include: 

 

 

 

 

 

harnessing discontinuities. 

discovering and correcting faults with current products or services. 

understanding unarticulated needs. 

taking advantage of latent opportunities that others miss. 

extending utilization of an existing successful product or service. 

Fundamental to the achievement of these ends is a form of 

experimentation known as prototyping. 

A prototype, regardless of its type, is not meant to represent a final idea. 

Instead, an explosion of prototypes is utilized to get and refine many possible 

ideas on the path toward a smaller number of useful ideas. Global business 

leaders must learn how to co-create with current and prospective customers, 

which requires that they view and consider many early prototypes. Davila 

suggested that global leaders, ―Fail fast and cheaply. Define small practical tests 

that can be done cheaply. Build a prototype and test it quickly. It is often best to 

work with a partner, such as a lead customer or a supplier, to share costs, risks, 

and learning. Get the results and determine what was learned and what new 

questions were identified. Modify the prototype…Remember that the plural of 

anecdote is data.‖ (Davila, 2006, p. 131) 

Global innovators think visually. May suggests that people, ―Tell the 

story with pictures…get graphic about it, literally or figuratively. Get visual: 

storyboard it, diagram it, mindmap it, whiteboard it, butcher-paper the walls and 

go crazy‖ (May, 2007, p. 107). The ability to translate ideas into two- or threedimensional 

portrayals of the ideas is an essential competency in global 

innovation. Drawing, computer rendering, clay carving, etc. are just a few of the 

ways of making rapid prototypes. 

As Davila (2006, p. 131) explained, ―In their simplest forms, prototypes 

are spreadsheets, process maps, or simulations—anything simple that enables 

you to visualize and understand better where your ignorance exists.‖ The future 

success of global business leaders, and those who teach them, will pivot on their 

ability to capture and portray new ideas, and the rabid tenacity necessary to turn 

them into reality. 

CONCLUSION 

Building competent business leaders with a global mindset has proven 

challenging. It‘s no longer sufficient for business instructors to merely train 

students in the basic applications. Many of the competencies necessary to thrive 

in a volatile global environment are learned in the classrooms of business schools 

located throughout the world. ―Global executive development is much more 

complex and unpredictable and requires greater focus, effort, and resources 

concentrated over a longer period.‖ (McCall, 2002, p. 172) 

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Just as the business men and women in the global economic environment 

are refocusing on these new values to succeed, so must the business educators 

incorporate the same values into their own value sets and those of their 

institutional curricula. The former tranquil educational values of business 

instructors serviceable for so long in the past are inadequate for the turbulent 

future. The values of curiosity, knowledge, intimacy, challenge, and 

experimentation need to be embraced by business educators. Researchers are 

challenged to engage empirical studies to quantify these values posited by the 

authors. 

Only then can they be recast and globalized for their instructional efforts 

to be relevant to the development of effective future global business leaders. 

These five key values will play a crucial role in the success of business educators 

and the development of future global business leaders. 

REFERENCES 

Andrew, J. & Sirkin, H. (2006). Payback: Reaping the rewards of innovation. 

Boston: Harvard Business School Press. 

Bennis, W. & Biederman, P. (1997). Organizing genius. New York: Addison- 

Wesley. 

Black, J., Morrison, A. & Gregersen, H. (1999). Global explorers. New York: 

Routledge. 

Boland Jr., R. & Collopy, F. (2006, Spring/Summer). Design matters for 

management. Rotman Magazine, 50-53. 

Burkan, W. (1996). Wide angle vision. New York: Wiley & Sons. 

Charan, R. (2007). Know-how. New York: Crown Business. 

Davila, T., Epstein, M., & Shelton, R. (2006). Making innovation work. Upper 

Saddle River, NJ: Wharton School Publishing.. 

Fisher, R. & Martini, P. (2004). Inspiring leadership: Character and ethics that 

matter. King of Prussia, Pennsylvania: Academy Leadership. 

Fraser, H. (2006, Spring/Summer). Turning design thinking into design doing. 

Rotman Magazine, 24-28. 

Gryskiewicz, S. (1999). Positive turbulence. San Francisco: Jossey-Bass. 

Halal, W. (2008). Technology‟s promise. New York: Palgrave McMillan. 

Hamel, G. (2002). Leading the revolution. New York: Plume. 

Hirshberg, J. (1998). The creative priority. New York: HarperBusiness. 

Kafka, F. (1995). The complete stories. New York: Schocken. 

Liedtka, J. (2006, Spring/Summer). If managers thought like designers. Rotman 

Magazine, 14-18. 

Malphurs, A. (2004). Values-driven leadership. Grand Rapids, Michigan: 

BakerBooks. 

Martin, R. (2005, Fall). Embedding design into business. Rotman Magazine, Fall 

2005, Pp. 4-7. 

May, M. (2007). The elegant solution. New York: Free Press. 

McCall, M. & Hollenbeck, G. (2002). Developing global executives. Boston: 

Harvard Business School Press. 

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Nambisan, S. & Sawhney, M. (2008). The global brain. Upper Saddle River, NJ: 

Wharton School Publishing. 

Rokeach, M. (1973). The nature of human values. New York: The Free Press. 

Rokeach, M. (1979). Understanding human values. New York: The Free Press. 

Rosen, R. (2000). Global literacies. New York: Simon and Schuster. 

Skarzynski, P. & Gibson, R. (2008). Innovation to the core. Boston: Harvard 

Business Press. 

Taylor, C. (1985). ―What Is Human Agency‖ in idem, Philosophical Papers, 2 

vols. Cambridge: Cambridge University Press. 

von Krogh, G., Ichijo, K., & Nonaka, I. (2000). Enabling knowledge creation: 

How to unlock the mystery of tacit knowledge and release the power of 

innovation. Oxford: Oxford University Press. 

104



EDUCATION AND EMANCIPATION OF KENYAN 

WOMEN IN THE MODERN ERA 

James M. Mbuva 


ABSTRACT: This study investigates the emancipation of the Kenyan women 

through education, which subsequently changes the traditional stereotype 

position of Kenyan women in the postmodern society. Before and after the 

independence of Kenya in 1963, Kenyan women played a key role in the cultural 

and social change of society. However, with the introduction of education, 

women were left behind while their male counterpart propelled high up in 

education, they got all jobs which were first occupied by the colonial 

government, and consequently they changed the landscape of rural and urban 

life. To achieve the goals of this study, the key areas of examination include the 

definition of emancipation and traditional stereotype position of women in 

Kenya, the reversal of gender roles, and the picture of tomorrow‘s male and 

female relationships, education as a transformational agent, conclusions and 

recommendations. The results of this study demonstrates that education has 

emancipated Kenyan women; male/female roles are reversing as women become 

leaders, and that the traditional stereotyping of the Kenyan woman is vanishing 

starting at home, school, and at the work place both in the rural and the city. 

INTRODUCTION 

The purpose of this study is to investigate the emancipation of the 

African- Kenyan women through education. The author among other factors such 

as breaking the traditional stereotype barriers of women position in the society, 

reversal of gender roles, migration of women to the city, sees educating as the 

sole emancipator of women would consequently enhances the vanishing of 

traditional stereotype position of Kenyan women in the postmodern society. 

The goals of this study are accomplished through examination of key 

variables such as the definition of emancipation and traditional stereotype 

position of women in Kenya, the practicality of the reversal of gender roles, the 

new leadership role of Kenyan women, and the picture of tomorrow‘s 

male/female relationships at home and at work, and education as the 

transformational agent. 

Before and after the invasion of European colonialism of African 

countries in the 17 th century, the African – Kenyan women have been treated as 

the primary workers in the traditional homes; yet without power, authority, 

control over resources, and ability to allocate resources. Kenyan women were 

able to work in the farms, hard cattle if they had no male children to look after 

the cattle; and yet they had no say at home because men were the sole owners of 

property such as land, cattle, and all things in and outside the home. As late as 

1963, when Kenya obtained its independence from the British, has the treatment 

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Mbuva 

of women in Kenya changed Absolutely not, because male dominance over 

women still continued with a smile. Women got a tertiary primary education, got 

married, and continued to bear and raise children. While marriage and raising of 

children is a good thing, still African Kenyan women continued to lag behind in 

their pursuit of education and a better life which could only come through good 

education. On the other hand, men continued to enjoy and kept the same power 

and authority over everything; hence they don‘t find it easy to share control of 

resources with women. It is from this context that this study hypotheses that 

education is the sole emancipator of Kenyan women. Yes, educating women is 

the key. 

RESEARCH PARADIGMS AND ASSUMPTIONS 

This study is based on the interpretive/constructivist paradigms and 

embraces the assumption that ―knowledge is socially constructed by people 

active in the research process‖ (Mertens, 1998 p.11). The predominant 

methodology of this research paradigm is qualitative in nature and it includes 

interviews of Kenyan women, observations, and document reviews concerning 

emancipation of Kenyan women (Mbuva, 2009; Mertens 1998). The study 

incorporates the emancipatory paradigm, because it looks into the critical theory 

of Freire, participatory and transformative research (Dabisch, 2005; Leornard & 

Mclaren, 1992). The emancipatory research paradigm ―directly addresses the 

politics in research by confronting social oppression at whatever levels it occurs‖ 

(Mertens, 1998 p.150). 

This study marks the beginning of the long battle of freeing women in 

Kenya and the rest of the world. In my letter to the editor, January 4, 2003, when 

addressing the 3 rd President of Kenya, the honorable Mr. Mwai Kibaki, I 

suggested that women should be given equal rights in the political arena as the 

men. I added that women should be represented, and they should be allowed to 

lead in cabinet positions; because they must be emancipated, they are politically 

marginalized, they are economically depraved, they are less educated and ill 

equipped to compete with their men counterpart in the job market, was my focus 

(Mbuva, 2003). 

LITERATURE REVIEW 

In this section of literature review, the study examines the emancipation 

and the traditional stereotype position of Kenyan women, the practicality of the 

reversal of gender roles, the picture of tomorrow‘s male and female relationships, 

education as a transformational agent, conclusions and recommendations. 

EMANCIPATION 

According to The Merriam-Webster Dictionary (1997), emancipation 

means to set free, to liberate, to release, to deliver, and to discharge. The black 

slaves emancipation of 1880 in the USA meant ―the Negro was made free, made 

a citizen, made eligible to hold office, to be a juryman, a legislator, and a 

magistrate‖ (Douglass, 1880). When Douglass (1880) compared the results of 

106


emancipation between the black slaves and the Russian Surfs he concluded, 

―When the serfs of Russia were emancipated, they were given three acres of 

ground upon which they could live and make a living; but no so when our slaves 

were emancipated. They were sent away empty- handed, without money, without 

friends and without a foot of land upon which to stand....‖ Hence, according to 

Douglass, emancipation could be practically realized, or could be caged in ―paper 

and parchment‖ (1880). Although Goldman‘s (2000) essay Anarchism and Other 

Essays have advocated that emancipation of women would be the woman‘s 

responsibility exclusive of her counterpart, I hold her interpretation of 

emancipation which recognizes that: ―Emancipation should make it possible for 

woman to be human in the truest sense. Everything within her that craves 

assertion and activity should reach its fullest expression; all artificial barriers 

should be broken, and the road towards greater freedom cleared of every trace of 

centuries of submission and slavery ―(Goldmans, 2000). 

Hence, women must be freed, liberated, delivered, released, and 

discharged to become the individuals they have always wanted to be, and to 

govern men‘s world equally. 

TRADITIONAL STEREOTYPE POSITION OF KENYAN WOMEN 

Like many other African cultures, the traditional role of Kenyan women 

in the society has been viewed as that of a bearing of children, cooking for the 

family, cutting wood from the fields, cleaning, cultivating the farms (for food), 

planting, harvesting, and doing all sorts of manual labor in and around the home; 

whereas men being free from all of the above roles migrate to the city in search 

of a more comfortable paying job in the city. Women are supposed to thatch 

houses with grass, apply the mud, and draw water from the river for the 

construction of any new house in the village. 

You may go into homes and see people including the women saying, 

―Men do not stay in the kitchen. Kitchen belongs to the women and their girls, 

men are supposed to be working hard in the fields….‖ The stereotype that 

women are imprisoned in the kitchen as cooks is pervasive in the culture. These 

stereotypes of the role of women in the society have inspired me to research more 

on the subject. 

THE PRACTICALITY OF THE REVERSAL OF GENDER ROLES 

The rest of the study will focus on finding answers to the following 

questions: Is it practical that women can play male roles in the society Is there a 

way of a dual sharing of responsibilities Are women able to become providers, 

control resources, make decisions, and control the way resources are used in the 

society Answers to these questions would provide ways of enhancing the 

emancipation of women in African societies and the global community. Women 

migration to the cities and the new leadership role of women in the rural as a 

result of migration of males are the new variables, which affect women 

emancipation in Kenya. 

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Mbuva 

WOMEN MIGRATION TO THE CITY 

Unlike the rural life experience, urban centers such as Nairobi and 

Mombasa attract women migrants with ―expectations of higher wages, more 

opportunities for personal advancement, freedom, and independence from social 

constraints of village life, and a better way of life overall as compared to the 

hardships of rural living‖ (Smith, 1998). While women migration to the city may 

lead to the so long awaited independence, Smith seeing the apparent danger 

affirmed, ―However, with decreasing urban wages and the effects of 

overpopulation in urban areas, they [women] may arrive only to be met with 

unemployment, hard labor, or poor communal living in the suburban 

shantytowns.‖ Smith adds that, ― It may take weeks of tamaking or looking for 

work before any promise of employment is found and if one has no relatives or 

friends in town, living alone or even sleeping on the street may be the only initial 

options. The expansion of urban areas resulting from this migration has also led 

to a decrease in the quality of available health care, restricted entrepreneurial 

opportunities, and limited availability of quality education‖ (Smith, 1998). 

Smith‘s study showed that although women are making strides in venturing into 

the men‘s city life, it is couples with difficulties; hence, women might be in a 

more vulnerable situation than in the rural. This does not mean that women 

should stop trying. 

THE NEW LEADERSHIP ROLE OF WOMEN IN THE RURAL 

Research has demonstrated that women life experience at the rural may 

be seen as that of dependency upon men since women don‘t own land, and that 

they don‘t control the production of land, hence rendered marginalized in the 

village community, and expelled from the public lime light, nevertheless, with 

the migration of men to the cities the Kenya women have resumed new 

leadership role because they are ―becoming de-facto household heads and the 

predominant decision-makers within the household‖ (Smith, 1998). Smith‘s 

study shows an increase of 27% to 33% of female household in Kenya, and that 

Nairobi and Mombasa shows the most increase. 

In accordance with Smith‘s (1998) Rural To Urban Migration And Its 

Effects On Kenyan Women ethnographic research, the new leadership role of 

women in the rural is influenced by variety of factors, which include: (1) Men‘s 

increased absence in the rural areas, here, women have to take over the 

responsibilities of decision-making and resource allocation; (2) The land (Swahili 

– shamba) has become the Kenya woman‘s office, in that women are now using 

their land and their productive roles to create their own public sphere within and 

as a manifestation of the private; (3) Women are not seeking for independence by 

migrating to the cities, but by creating their own social systems of production and 

provision, which provide the freedom of the urban ―office‖ in a predominantly 

domestic and private realm; and, (4) Through avenues of women‘s cooperative 

groups women have been able to gain access to the public roles vacated by men, 

particularly those of resource allocation and community development. Through 

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these groups, women discuss their problems and have been able to contribute 

money to one another, which is used to meet their own needs. These same groups 

exist among women in Nairobi, and unlike the rural women‘s success depending 

on land or cattle, their success depends entirely on business (Smith, 1998). 

Men‘s departure from the rural life style has opened gateway for women 

to exert independence, power, and control over resources in the rural social 

environment. It is clear that the new social system of production is based on 

women‘s collective effort. They think together, they pull together, and they 

succeed together. In the rural setting, land is a means of production, whereas 

businesses in the city are the new the means of production to women migrants. 

The tables 1 and 2 given below provide and demonstrate an analytic comparative 

presentation of women and males in the rural and city settings. When men and 

women live together in the rural, their job descriptions are very distinct based on 

cultural traditions of the African people. Almost entirely women perform jobs 

around the home, which include child bearing and nursing, cooking, and 

cleaning, etc.; whereas, men lead, own cattle, allocate resources, and perform 

selective manual labor. 

Table 1: Women and Men Roles in the Rural 

Women 

Men 

Child bearer and nurse Lead 

Cultivate land 

Own cattle 

Cook 

Own land and produce 

Cut wood 

Provider 

Draw water from the river Plough the farm 

Clean 

Take cattle to the fields 

Not a provider 

Allocate resources 

Don't make decisions 

Make decisions 

Don't control resources Control resources 

Don't allocate resources Allocate resources 

Perform manual labor of all sorts Perform selective manual labor 

On the contrary, when women get into the city life as new immigrants, 

they tend to do the jobs men can do. Although women are less educated, they 

tend to have more opportunities open for them. They begin to make decisions 

concerning their salary, allocate resources and provide for members of family in 

the city and in the rural. Those women who represent their constituencies as 

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Mbuva 

members of parliament, they attend political meetings in the city, deliberate with 

their male counterparts, and make decisions concerning their electorates. It looks 

like women have intruded men‘s world in the city, but it doesn‘t hurt to share the 

bounties, the power, and the authority new job opportunities require. 

Table 2: Women and Men Roles in the City 

Women 

New migrants 

Men 

Older migrant 

Variety of business opportunities Best jobs 

Providers 


Independent 

Control their lives 

Control Resources 

Allocate Resources 

Members of parliament 

Less educated 

Providers More educated 


Independent 

No more control over women 

Control resources 

Allocate resources 

Members of parliament 

More educated 

THE PICTURE OF TOMORROW’S MALE/FEMALE RELATIONSHIPS 

Given the women‘s independence, power and control over resources, one 

would ask the following questions: (1) Is there a chance of building a family 

where men and women were equal stakeholders (2) Would men appreciate and 

accept the postmodern emerging leadership role of women in the society (3) 

Would men share power, authority, and control over resources Would both 

women and men have equal land ownership and title deeds These questions are 

so important and this study would suggest a future investigation of women/male 

relationships in details. However, for the purpose of this study, few ideas will 

suffice. 

BUILDING A FAMILY WHERE WOMEN AND MEN HAVE EQUAL 

POWER 

Love between women and men, which would bind them together for a 

long time, would only provide a healthy social and spiritual environment for the 

continuance of raising healthy citizens, leaders, fathers, mothers, and teachers of 

our children. Although Goldman has advocated for the emancipation of women 

and has worked hard to demonstrate that women have to stand for their course 

without being independent of men, I disagree that ―love for a man,‖ would imply 

fear and this love will ―robe her of her freedom and independence,‖ and that this 

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love brings ―horror‖ and that the ―the joy of motherhood will only hinder her in 

the full exercise of her‖ emancipation (Goldmans, 2000); because I believe that 

true love between men and women should strike the balance of true equality, 

respect, fairness, shared leadership, authority, and power. Hence, there is hope 

that both women and men can build a family on equality, fairness, and love, 

which would be a base for a healthy nation. However, men should never abandon 

or forget their families (wives and children) by taking other wives in the city; as 

is exemplified by Kenyan women testimony that there is the possibility of their 

husbands leaving them for other women (Smith, 1998). 

ACCEPTANCE OF WOMEN’S ROLE OF LEADERSHIP 

On the same basis of equality, men should appreciate women as leaders, 

and accept the fact that they can become providers and that they have the right to 

allocate resources by working hard both in the city and in the rural. Although 

2002 and 2007 Kenya‘s general election results demonstrated a forward stride 

that Kenyans have changed their attitude towards women in government 

leadership, women on their rights have gained strength in pursuing higher 

positions of power; and that a few educational elite women became members of 

parliament, such as Charity Ngilu who was nominated in 2003 as the Minister for 

Health and Martha Karua, who was nominated in 2003, 2005, 2007 as the 

Minister for Water and Irrigation, and Minister for Justice and Constitutional 

Affairs respectively (Kenya Votes, 2007). We have a long way to go before we 

involve women equally in all areas of societal participation and power sharing 

(Mulama, 2009). Nevertheless, this is a great step forward. 

If women have been able to make reasonable decisions on how to run 

homes when men have gone to work in the cities, why not accept the fact that 

they can share power, authority and control over resources. Women should also 

be allowed by the traditional law and the Kenya constitution to own land and title 

deeds and be able to dispose of them whenever suitable. 

EDUCATION AS A TRANSFORMATIONAL AGENTFOR CULTURAL 

CHANGE 

Education is the Key: The unbalanced participation of women in 

societal affairs such as political circles and the leadership of the African countries 

are due to the lack of education. Joy Mukanyange, ―who grew up as a refugee in 

Uganda and has since served as Rwanda‘s ambassador to several nations says it 

was education that helped her and her female colleagues to achieve nearly equal 

representation in the government‖ (Unicef, 2008). The general consensus 

according to PANA (1996) is that, if women are empowered through the means 

of qualitative education the African women would adequately participate in 

social cohesion, political stability, economic development, and would enhance 

unity among members of the society effectively. As a matter of fact, women as 

mothers, preservers of culture, and teachers, they can lead as the presidents of the 

African nations and for once Africa would be peaceful and strong. However, 

education as the only effective agent of cultural change must permeate women 

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Mbuva 

life from the smallest girl to the adult women. Women have always wanted to do 

good for the sake of all members of the society; whereas, the hunger and thirst 

for leadership from men since big man theory leadership phenomenon of 

Mobutu of Congo, Moi of Kenya, Mugabe of Zibambwe, and Museveni of 

Uganda, has risen up. These men and others have remained in power until 

something supernatural took them out of power. For instance, in 2008, Mugabe 

told the whole world that it is God who can take him out of power. Earlier, in 

2007, the same Mugabe had Morgan Tsvangirai ―so severely beaten by the police 

after his arrest on Sunday morning he lost consciousness three times‖ (Peta, 

2007). Further, when Zimbabwe wanted a new change through Morgan 

Tsvangirai of the opposition party, ―Mr. Mugabe announced that he wants to stay 

in power until 2014, despite a ruined economy and spiraling inflation‖ (Peta, 

2007). The big man theory leadership phenomenon, which pivots around big 

money, big name, big dynasty, big tribe, big background, big party, etc. will only 

be decimated if cultural change of gender roles and equal rights of women is 

realized, and if women are highly educated and become members of the 

leadership club. 

DEMOCRATIZATION OF EDUCATION 

For education to be realized among all African women, education must 

be democraticized to include women in poor rural villages, inner cities, and 

slums (PANA, 1996; Dada, 2006). Uche campaigning for female education and 

empowerment in Africa through media suggested that media should support the 

education of girls and women for Africa to be developed (PANA, 1996; Dada, 

2006). This is true because according to UNDP Human Development Report of 

1996 shows that ―Africa has the lowest female school enrolment among all 

developing regions‖ (PANA, 1996; Dada, 2006). Hence, qualitative education 

should not be limited to the children of the elite section of the society. 

EFFORTS OF FORUM FOR AFRICAN WOMEN EDUCATIONALISTS 

(FAWE) 

Women educationalists through FAWE have engaged themselves in 

efforts of ―the education of girls and women across Africa (FAWE News, 2000; 

PANA, 1996). But this is not enough. The effort of bringing education to the 

girls and the women of Africa should be a universal issue because it affects the 

political, social, economical, and the emancipation of a gender, which has for 

many years been dominated by African man (PANA, 1996). Women must be 

free, and it can‘t happen if they are in the endangered species list by being 

imprisoned in the jail of illiteracy and despair (PANA, 1996). The African 

women must be emancipated through education not only to free themselves from 

male dominance, but from illiteracy and cultural ―patriarchal traditions‖, hence 

literacy programs aimed at bridging the gender gap must be promoted throughout 

African countries (Kwayera, 2000). Hence, Kenya‘s higher education institutions 

should be instrumental in carrying out the mission of ―expanding opportunities 

112


for women,‖ which would create opportunities for employment; rather than 

creating ―new subtle arenas for exclusion‖ (Oanda, 2005). 

CONCLUSIONS AND RECOMMENDATIONS 

The findings of this study have demonstrates that emancipation of 

African Women from the darkness of lack of education, political power, 

economic say, and social change is mandatory. It is through educating the 

African girls and women that the arch-aching traditional stereotyping of women 

role as that of only cooking, cleaning, and childbearing should cease completely. 

With the migration of both men and women have taken leadership roles 

at home and they have to take over the responsibilities of decision-making and 

resource allocation. With the migration of women into the city in search of better 

pay, they have gained control over their money and are able to make decisions 

and allocate resources. Certainly, women are intelligent, and can do well if the 

society accepts women‘s role of leadership. This is possible if the African society 

accepts the paradigm shift of shared power, authority, equal land ownership, 

control over resources, and building a family where men and women have equal 

power. 

The study recommends that in order for the African women to be totally 

emancipated in the post modern society, the fathers, the husbands, fathers and 

sons should promote women liberation because charity begins at home. More 

girls should be enrolled to schools in order to equitably bridge the educational 

gap, empower women, and educate all girls irrespective of their socioeconomic 

background (Oanda, 2005). Organizations such as PANA and FAWE have 

strongly supported women rights and empowering them, but they can not do it all 

alone. Kenya government, ministry of education, primary and secondary/high 

schools and universities need to educate girls and women conscientiously and 

conspicuously. 

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Douglass, F. (1880). The Serfs Of Russia Were Given Three Acres Of Land: 

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