Influence of Collectivist and High Power Distance in the Process of Organizational Learning

1) Background

Organizations evolve and develop by the combination of the knowledge, skills, and abilities of its member intending at the corporate objectives in order, to gain competitive advantage, increase their market share, augment performance, foster creativity, improve financial results, and a multitude of other dimensions to maintain their sustainability. One of the essential elements to permit the growth of the organization and its personnel is to foster the sharing of tacit and explicit knowledge in an environment favourable to the transfer of know-how and the attainment of ultimate organizational learning. This is done through a process of observing, reflecting, and acting (Hedberg, Wolff, 2001, 537) or socialization, externalization, combination, and internalization (Nonaka, Toyoma and Byosière, 2001, p495). The process of creating knowledge is crucial to the development of any corporation, they have to learn to solve problems and guided by a shared vision to create superior value for all partakers. Knowledge is found in a dual form, tacit know-how embedded in actions, practices, and experience that are not formalized, explicit knowledge is articulated and formalized and can be transcribed in documents, manuals and database (Tsui-Auch, 2001).

Hofstede (1980) have developed the theory of Cultural Dimensions establishing five principal elements to measure the society culture clout on the values of its members. This influences the behaviours of the individuals inside the organization and often determines the group interaction and its outcome. Those five dimensions are, power distance (PDI), individualism/collectivism (IDV), uncertainty avoidance (UAI), masculinity/femininity (MAS), and long-term orientation (LTO). In th...

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...hanism. Psychological and cultural barriers can have a negative effect on the creative process of a corporation and reduce the hypothetical competitive advantage developed through the activity of knowledge creation (Levinthal, March, 1993). It is important to understand the consequence of the collectivist and high power distance on the social interaction of the member of an organization in constructing the tacit and engraving the explicit knowledge of a firm. Millennials are forming the next generation of workers that will accept leading position, it is crucial to understand how they are viewing the creative process inside an organization and how they are interacting with other groups. In demystifying the dynamic of the team dynamic in organizational learning, general management principles and the firm involvement with their staff will benefit from this experience.