||Koch Industries is the largest private company in North America, the key success factor of the company is the implementation of Market Based Management (MBM) philosophy developed by current chairman and CEO, Charles G. Koch. But the performance of MBM philosophy execution in Asia is not as good as expected.|
This research tries to find out the causes of such underperformance by focusing on five dimensions of culture introduced by Hofstede. The methodologies are case studies by studying the cases of working experience in Koch Industries of researcher and surveying the preference to MBM philosophy and their tendence to the five culture dimensions of the case firm employees.
From the case study, the difficulties encountered when implementing MBM philosophy in Asia might be caused by tendence of collectivism and higher power distance between hierarchical relationships; and from statistical analyzing, the tendence to five culture dimensions of the employees who have preferrence to MBM are “low degree of power distance and uncertainty avoidance, high degree of individualism, tendence of femininity, and short term orientation.” Researcher refers the reversed result of hypothesis in terms of masculinity to the guiding principles, the reason could be the attribute of customer focus, humility and respect of MBM guiding principles are having the tendency to femininity. This research also find that low level employees in the case firm are having higher degree of power distance and individualism, but aren’t advocates of MBM.
The contributions of this research are the first introduction of MBM philosophy study in the academic world and use of survey to verify the factors in dimensions of culture leading underperformance of MBM, which has proven performance in USA, in Asia.
The result of this research may help Koch Industries or other companies interested in implementing MBM philosophy to understand the potential difficulties they may encounter when implementing MBM philosophy in different culture environment.
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