THE COMMON GLUE AN ALTERNATIVE WAY OF TRANSCENDING DIFFERENCES TO UNLEASH COMPETITIVE PERFORMANCE i INTERNATIONAL BUSINESS AND MANAGEMENT SERIES Series Editor:Pervez N. Ghauri Published: Forthcoming titles include: European Union and the Race for Foreign Global Competitive Strategies Direct Investment in Europe Hennart & Thomas Oxelheim & Ghauri Non-Business Actors in a Business Network Strategic Alliances in Eastern and Central Hadjikhani & Thilenius Europe Hyder & Abraha Intellectual Property and Doing Business in Other titles of interest: China Yang International Trade in the 21st Century Fatemi Alliances and Co-operative Strategies Contractor & Lorange Globalization,Trade and Foreign Direct Investment Relationships and Networks in International Dunning Markets Gemünden,Ritter & Walter International Trade and the New Economic International Business Negotiations Order Ghauri & Usunier Moncarz Critical Perspectives on Internationalisation Contemporary Issues in Commercial Policy Havila,Forsgren & Håkansson Kreinin Managing Cultural Differences Morosini Related journals — sample copies Network Dynamics in International Marketing available on request: Naude & Turnbull European Management Journal The Global Challenge for Multinational International Business Review Enterprises International Journal of Research in Marketing Buckley & Ghauri Long Range Planning Business Network Learning Scandinavian Journal of Management Håkansson & Johanson For full details of all IBM titles published Managing International Business Ventures in under the Elsevier imprint please go to: China Li http://www.elsevier.com/locate/series/ibm ii THE COMMON GLUE AN ALTERNATIVE WAY OF TRANSCENDING DIFFERENCES TO UNLEASH COMPETITIVE PERFORMANCE BY PIERO MOROSINI 2005 Amsterdam – Boston – Heidelberg – London – New York – Oxford Paris – San Diego – San Francisco – Singapore – Sydney – Tokyo iii ELSEVIER B.V. ELSEVIER Inc. ELSEVIER Ltd ELSEVIER Ltd Radarweg 29 525 B Street,Suite 1900 The Boulevard,Langford Lane 84 Theobalds Road P.O. Box 211,1000 AE San Diego,CA 92101-4495 Kidlington,Oxford OX5 1GB London WC1X 8RR Amsterdam,The Netherlands USA UK UK © 2005 Elsevier Ltd. All rights reserved. This work is protected under copyright by Elsevier Ltd,and the following terms and conditions apply to its use: Photocopying Single photocopies of single chapters may be made for personal use as allowed by national copyright laws. Permission of the Publisher and payment of a fee is required for all other photocopying,including multiple or systematic copy- ing,copying for advertising or promotional purposes,resale,and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use. Permissions may be sought directly from Elsevier’s Rights Department in Oxford,UK:phone (+44) 1865 843830, fax (+44) 1865 853333,e-mail:[email protected]. Requests may also be completed on-line via the Elsevier homepage (http://www.elsevier.com/locate/permissions). In the USA,users may clear permissions and make payments through the Copyright Clearance Center,Inc.,222 Rosewood Drive,Danvers,MA 01923,USA; phone:(+1) (978) 7508400,fax:(+1) (978) 7504744,and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS),90 Tottenham Court Road,London W1P 0LP,UK; phone:(+44) 20 7631 5555; fax:(+44) 20 7631 5500. Other countries may have a local reprographic rights agency for payments. Derivative Works Tables of contents may be reproduced for internal circulation,but permission of the Publisher is required for exter- nal resale or distribution of such material. Permission of the Publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the Publisher is required to store or use electronically any material contained in this work,including any chapter or part of a chapter. Except as outlined above,no part of this work may be reproduced,stored in a retrieval system or transmitted in any form or by any means,electronic,mechanical,photocopying,recording or otherwise,without prior written permis- sion of the Publisher. Address permissions requests to:Elsevier's Rights Department,at the fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of prod- ucts liability,negligence or otherwise,or from any use or operation of any methods,products,instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences,in particular,independent verifi- cation of diagnoses and drug dosages should be made. First edition 2005 British Library Cataloguing in Publication Data A catalogue record is available from the British Library. ISBN:0-08-044610-8 The paper used in this publication meets the requirements of ANSI/NISO Z39.48-1992 (Permanence of Paper). Printed in The Netherlands. Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org iv To Leonardo. My son,my friend, my inspiration. v The following names, methods, concepts, frameworks and analyses included in this book,are copyrighted by PAYA Sàrl,a company operating under Swiss Law, domiciled in avenue Frederic-César-de-la-Harpe 16A, 1007 Lausanne, and pro- tected by the Swiss Federal Law of October 9,1992 on Copyrights (Loi Fédérale sur le Droit d’Auteur et les Droits Voisins du 9 Octobre 1992): Common Glue, Social Capabilities, Boundary-spanning leadership, Company-wide Building blocks, Knowledge interactions, Communication rituals, Cross-boundary rota- tions,Glue Test,The Morosini and Næss Leadership Assessment,Blending Power, Company-wide Business Case, Blending Power of Organizations, Blending Strategies,Blending approaches to growth,Female business paradigm. In addition, Common Glue is a trademark registered internationally with the Swiss Institute of Intellectual Property (Institut Fédéral de la Propriété Intellectuelle) under Nº 529661, by PAYA Sàrl, a company operating under Swiss Law, domiciled in avenue Frederic-César-de-la-Harpe 16A,1007 Lausanne. vi Contents Preface xi Acknowledgements xxiii 1. The Archetype of the Harmonic Fusion 1 2. Male and Female Theories of Organizational Performance 45 3. The Common Glue that Blends Organizations Together 95 4. Measuring The Blending Power of Organizations 135 5. Testing the Link between Blending Power and Performance 167 6. Getting Ready for the Journey 207 Epilogue 215 Statistical Appendices 217 Index 247 vii This page intentionally left blank viii Piero Morosini Piero Morosini, an Adjunct Professor of strategy and leadership at the European School of Management and Technology (esmt), Berlin, is the founding president of PAYA Sàrl, Lausanne, a leadership institute that helps organizations build a strong Common Glue®for success- ful performance across cultural,professional and organi- zational boundaries. A keynote speaker in cross-cultural leadership,mergers and acquisitions,innovation strategies and knowledge manage- ment,Piero has studied at the Wharton School,Philadelphia (Ph.D.,1994) and has graduated in Economics at the Universidad del Pacifico,Lima in 1984. He has pre- viously been: a full-time Professor at the International Institute for Management Development (IMD),Lausanne; a strategy consultant at Accenture in Milan and at McKinsey & Company in Madrid and London; and an executive in JP Morgan and at Robert Fleming in Milan. He has been selected as one of the world's next generation thought leaders in management (Next Generation Business Handbook,Wiley,2004),and is a for- mer thought leadership award winner worldwide at Accenture. His original research work has been published in books (Managing Complex Mergers, Financial Times —Prentice-Hall,U.K.,2004; Managing Cultural Differences, Pergamon Press,U.K.,1998),book chapters,video cases,case studies and arti- cles in leading international journals. e-mail:[email protected] ix