Strategic Management Journal
Issue Date: 1998 (Vol. 19)
Pages: 323-338
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Procedural Justice, Strategic
Decision Making, and The Knowledge Economy
W. Chan Kim and Renée
Mauborgne
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Editor's Choice.
Collective knowledge building is a key strategic
task for firms' success today. But, creating and sharing knowledge
are intangible activities that can neither be supervised nor forced out
of people. They happen only when individuals cooperate voluntarily.
A key challenge facing strategic management is obtaining the voluntary
cooperation of individuals as firms formulate and implement their strategic
decisions. This essay draws on the rich body of procedural justice
research to address this critical issue. The authors argue that when
people feel their strategic decision-making processes are fair, they display
a high level of voluntary cooperation based on their attitudes of trust
and commitment. Conversely, when people feel that the processes
are unfair, they refuse to cooperate by hoarding ideas and dragging their
feet in conceiving and executing strategic decisions. The authors
further develop this argument into team performance wherein the attitudinal
and behavioral effects of procedural justice are corroborated with theory
and initial evidence of their bottom-line performance consequences.
They then build a theory, what they call intellectual and emotional recognition
theory, that can explain why procedural justice invokes the side of human
behavior that goes beyond outcome-driven self-interests and that is so
critical in the knowledge economy.
Strategic Management Journal
Issue Date: 1991 (Vol. 12)
Pages: 125-143
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Implementing Global Strategies:
The Role of Procedural Justice
W. Chan Kim and Renée
Mauborgne
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While work in the field of global strategic
management has largely focused on defining the content of effective global
strategies and on prescribing winning strategic moves for multinationals,
this research argues the importance of the process through which global
strategies are generated, in particular the perceived procedural justice
of that process. Drawing on the theoretical heritage of justice-based
research, this study first explored the meaning of procedural justice by
an investigation of the specific criteria used by subsidiary top managers
to define what they perceive to be a fair process in global strategy-making.
Second, the importance of procedural justice was assessed by an examination
of its effects on the higher-order attitudes of commitment, trust, and
social harmony as well as on the lower-order attitude of outcome satisfaction
in subsidiary top management. One of the central conclusions of the
research is that the procedural justice of the global strategy generation
process indeed affects commitment, trust, and social harmony as well as
outcome satisfaction in subsidiary top management, and hence provides a
potentially powerful but, as yet, unexplored avenue for mobilizing the
multinational's global network of subsidiaries.
| W. Chan Kim is The Boston Consulting Group Bruce D. Henderson Chair
Professor of International Management at INSEAD, France.
Renée Mauborgne is The INSEAD Distinguished
Fellow and a professor of strategy and management at INSEAD, and a Fellow of the World Economic Forum.
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