Oded Shenkar

This slight business book shares the defects of its genre—buzzwords and superficial analogies to examples from biology (mirror neurons!) more than concrete lessons. Sample takeaway: “The imitation process should be systematic and yet eclectic and creative.” I’ll get right on that. Likewise, he advocates both copying and defending against copying, with not much in the way of advice about the latter. (“Yes, this sounds like hiring a convicted hacker to handle computer security”—no, it doesn’t; it sounds like hypocrisy, but then again without any details maybe it’s not.) Still, the book has some interesting examples of successful copying. Shenkar reminds us that Apple wasn’t the first to make an mp3 player, just like VHS followed Betamax; coming later allowed it to fix what wasn’t working with the first generation. Successful copiers like Sam Walton carefully examined the competition, visiting individual stores and taking detailed notes. Imitation, Shenkar suggests, is riskiest when, along with not understanding the full complement of features that makes a success a success, you try to mix and match two successful yet incompatible models, like quick turnaround and cheap production. Slate has a good series on operations management and a recent story in the series alludes to this point, discussing Zara’s “fast fashion” approach which is limber but has higher production costs (not for nothing, because it pays higher wages) compared to Uniqlo’s, which cuts costs through advanced planning and simplicity. No one’s figured out to have both, and plenty of people have gone broke trying. Good imitation can also come from moving an idea geographically or across businesses: copying a model for selling cleaning supplies through home sales to create Tupperware parties. Also, apparently any business success these days has to come at the expense of workers: he touts Ryanair for making flight crews buy their own uniforms and office workers buy their own pens, and thinks “Wal-Mart with wings” is purely complimentary.… (plus d'informations)

For some time I have been concerned that China’s ascent is more than a case of an emerging economy awakening from an extended period of slumber.

Unlike the Japanese, Latin Americans and the Europeans, China appeared to be a society with unprecedented resources, an innate inclination for risk-taking and a unique bargaining position. This combination, I worry, will have an enormous impact on the worldwide economy, political balance of power and ultimately the way I make my living.

Oded Shenkar, a business professor at Ohio State University, says that within 20 years China will have the world’s largest economy. He argues convincingly—I admit to being favorably disposed prior to reading the book—that China seeks to restore its imperial glory by infusing modern technology and market economics into its non-democratic system.

China’s rapid growth, he argues, differs from its predecessors.

• The Chinese, while aspiring to economic growth, have no desire to emulate the American way of life. They have their own values and will not sacrifice them for the sake of economic growth.
• They appear to be willing to maintain their dominance in low-tech industries, using its cash-flow to internally finance their entry into high-tech.
• The presence of an unprecedented human resource pool. Not only is it the world’s largest, but it includes an unusually large number of scientists, engineers and seasoned executives.
• It possesses an advanced and rapidly improving technological infrastructure.
• Finally the Chinese have traditionally taken an assertive view in implementing their foreign policy.

This combination, the professor argues, will have a profound effect on the economy and politics here in the United States.

• Organizations will increasingly divide themselves along a fault line that separates those who benefit from increased investment in and trade with China and those which cannot. These two groups will take opposing views on protectionism and free trade.
• Job security will become a more important issue. This issue could reverse the decades-old trend away from unionization.
• This country will have to increasingly cope with the implications of a continued transition from a manufacturing-based economy to one that increasingly relies on services. This could have severe implications for a nation used to assuming the role of the world’s innovator.

While I want to believe that American ingenuity, innovation and adaptability will come to the forefront in meeting this challenge; in the back of my mind I am concerned this time is different.

Shenkar’s book did little to allay my nagging doubts.… (plus d'informations)