The changing roles of women in international business

Author: Iloka Benneth Chiemelie
Published: 1/1/2014

1.0 INTRODUCTION

In the past decades, the number of women in globalization has increased the number of businesses internationalizing from one country to another (Simon, 2013). Additionally, there have been a number of social revolutions in developed and developing countries that have seen the number of women joining the global workforce increase rapidly. However, this development has different rate in relation to different countries. For most of the businesses that involves cross-border production, the possibility of female managers being inducted into their management labour has increased significantly.

Zunana (2010) in her analysis of the role of women in international business stated that the main reason behind the increased number of women entering the international business scene is global competition which is forcing companies to understand that their success is hugely dependent on talented people from any nationality, age, race and/or gender. She also stated that another reason is because women represent more than half of the global population and nearly half of the active workforce.

Evidently, the labour market must acknowledge and understand that the days are gone when women’s job is to “cook in the kitchen,” as they are currently “cooking international businesses management” with similar strategies they apply in the kitchen and that leaves men turning their nerves on what the next business dish would be and how great it will taste.

Essentially, this paper will seek to address the shifting roles of women in international business as it is becoming a topic of high debate and argument from both business managers and academicians across the globe. In order to achieve such objective, this paper will be conducted with both primary data and secondary research from previous works on related topics. The primary data is meant to illustrate actual figure in relation to impact of women in international business (success and failure factors), while the secondary data will focus on how women have changes the face of global business and the changing role of women in international business.

2.0 WOMEN ON TOP

Globally, the world is becoming favorable for women in top positions – in both government owned and private corporations. Adler (2002), stated that most of the women who have served their country did so in the top political position, and 2 out of every 3 of such women came into business within the last 10 years. Notwithstanding the short distance in terms of participation in politics, these women still headed top positions in their countries.

If the influence of women in international business is taken into consideration, the key areas to be concentrated on are how strong and influential these women are in their present position. There are evidences to prove that the role of women is becoming ever strong. Taking the clock back to the 90s, women were holding less than 3% of the most senior management positions in major US corporations and less than 2% of all management position in Europe (Adler, 2002).

However, this figure has changed with a recent research by European Professionals Women’s Network (2004) showed that an average of 8% of management positions in European corporations were headed by women yearly. This significant change is in line with the statements presented in this discussion. The change is as illustrated below.

Figure (1): Average number of women on management boards in Europe

Source as adapted from: European Professionals Women’s Network, “Launch of 1st EWPN European Board Women Monitor”, 2004.

From the above figure (1), it can be noticed that there are significant differences across countries in terms of number of women in management positions. Scandinavia features the strongest presence of women in management with 22% of women in Norway, 20% of women in Sweden and 14% of women in Finland. Thus, it raises the question of whether culture is influencing the number of women in management boards. That is to say, the number of women in management is likely to be higher in Feminist countries than in Masculine countries.

Figure (2): Female directors in the world

Source as adapted from: Ethical Investment Research Service, March 2004

Figure (2) is another survey in line with the changing role of women, and this survey shows similar result for director’s position across the globe. Once again, Scandinavian countries lead this figure with 22% female directors in Norway and 17% directors in Sweden. Anglo-Saxon countries are in the second position with 13% female directors in USA, 9% in Australian and 7% in the UK. Thus, it becomes easily understandable that cultural factors play a role in the number of female directors taking top management positions across countries.

Although they are impressing figures to suggest that role of women in international business is changing from mare cleaners and secretary to top executives, a Forbes (2011) report highlighted disappointing statistics with positive outlook in the changing role of women in international business. In the report, it was stated that while there is a little increase in the number of women leaders, the overall figure represented by women leaders in business leadership in 2009 is still very low, with women holding 49% of the jobs in the US and 50% of all managerial positions.

Figure (3): women in top management and administrative positions 

Source as adapted from: ILO, Geneva(2004)

The figure (3) above is an illustration of women in top management and administrative positions in some of the masculine and low power distance nations. In the case of Malaysia, it women represent 20% of administrative and managerial works, and 35% of the total employment. This is a significant figure considering the fact that Malaysia is a masculine country built firm in Islamic principles. However, the reason for the significant figure could be that of culture in the sense that the Chinese, Indians and other ethnicity don’t have much restriction on women’s participation in business and trade as does the Islamic value. The table presents a clear indication that culture plays a significant role in the participation of women in international business. This will be discussed further below.

3.0 WOMEN IN ENTREPRENEURSHIP

It has been stated that the word used to describe entrepreneurship is inbuilt in what we fell and think about it (Gartner, 1993). Although it can be argued that there is no economic theory with a comprehensive definition of the forms of activities that can be linked to entrepreneurship(Bull and Willard, 1993), it can still be stated that explanations of what entrepreneurship imply are abundant in academia since the 20^th century (Ogbor, 2000). The common associations are in line with “enterprise creation” theories by Collins and Moore (1964), and Knight’s (1921) theory of risk. The implication of these theories is that entrepreneurship involves the creation of new enterprise through risk taking. As such, entrepreneurs are individuals who are willing to take risks in order to make the production process complete by combing all factors or production to create commodities that can be used to satisfy human wants.

The main feature of entrepreneurial activity has been stated as the capacity to innovate and create new commodities that better improve the standard of human. However in discussing such qualities, it has been close associated by theoreticians with Darwinian and heroic mode of entrepreneurship. In conformity, (Collins and Moore, 1964, p. 5) stated that no matter how an individual might fell about entrepreneur, he emerges more as a masculine rather than feminine, more heroic than cowardly. Although they have been much criticism to this form of discourse which associates gender with American myth and Western ethnocentrism (Butler, 1991; Calvert and Ramsey, 1992; Ogbor, 2000; Bruni et al., 2004), it is still a legit factor and adopted by theoreticians in describing the quality of entrepreneurs and formulation of entrepreneurial theories.

However, it is open and clears that women makeup high volume of entrepreneurial activities that directly influence economic growth of countries across the globe. For instance in Malaysia, most of the Mamak Restaurants are owned and run by female entrepreneurs, other stores such as snacks and bread stores, stationary stores, printing services and childcare services are also run and managed by women. This is also the same case for women in order countries across the globe. Therefore, no matter the theoretical view and research background presented on women in entrepreneurial activities, there is undying the fact that women play major parts in economic development of a country through their various entrepreneurial activities. They also help in reduction of unemployment rate by providing job opportunities, skill acquisitions and training to people in the society.

4.0 CHALLENGES FACED BY WOMEN IN UNDERDEVELOPED COUNTRIES

From the above analysis, it can be seen that most of the countries where women’s role in business have changed are either developed or developing countries. The question is why is this case not also applicable to underdeveloped countries? The USA Department of Commerce (2010) provides the answer by pointing on the following reasons.

4.1 Lack of education as a result of previous role – previously, it was the job of women to take care of the family in these countries, while the men went on in search of a means to sustain the family. Thus, men studied more than women and as the world is currently changing, these women are not capable of obtaining top positions in the organizations because they lack the management competency necessary for such positions.

4.2 Influence of culture and customs – some of these developing countries like African nations, there are still a high degree of culture influence on the tasks undertaken by women and whom they are expected to obey. Usually, the person they are expected to obey are their husband, and most of the time, their husbands are reluctant to free them from the normal house chores into the workforce. Thus, this influences the possibility of women taking top positions because they are not being allowed to work, and in cases where they are allowed to work, they lack the necessary expertise and competence.

5.0 THE INFLUENCE OF CULTURE IN WOMEN’S ROLE IN INTERNATIONAL BUSINESSES

From the above discussion, it is clear that the role of women has changed in international business from servants from major players. In the discussion, a common factor (culture) kept reoccurring as the main reason why such change has occurred, and this section will look to explore the field of cultural dimensions and link it with women’s changing role in international business.

Prof. Geert Hofstede constructed and conducted the most outstanding study of how corporate values are being influenced by culture. In the process of describing this influence, he introduced five cultural dimensions as: Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (AUI), and Long-Term Orientation (LTO) (Hofstede, 2007).

Power distance index (PDI) – this dimension focuses on the degree or equality or inequality prevalent in a society. A higher power distance country have a high level of inequality with hierarchical authorities that people are expected to obey, while the low power distance country have a more equal society in which everybody is seen as having equal right to make decisions that influences their lives or business.

Individualism (IDV) – this is be degree to which a society or culture preaches togetherness in all business undertaking. In an individualistic country, people’s privacy are always respected and people do things their own ways without much law to abide by, bearing in mind that they will be responsible for the outcome of their actions. However, in a communistic country, sharing and togetherness is encouraged and people work more in group, combining their individual efforts to ensure group (team) growth.

Masculinity (MAS) – a masculine country is such whereby continuous growth and improvement is encouraged. The main aim of business in this society it so constantly maximize profit irrespective of effects of the business process on the society. A feminine country on the other hand focuses more on nurturing people and caring about the general welfare of people in the society. While profit is important, business process are always regulated to ensure that it doesn’t endanger the society in any form.

Uncertainty avoidance (AUI) – this implies the very to which people are willing to take risk and given up general standard in order to try new and innovative business process. Countries with higher uncertainty avoidance have set standards and flexibility is not allowed, while countries with low uncertainty avoidance experience flexibility in their business process but people must be willing to bear consequences of their actions.

Long-term orientation (LTO) – this is the degree to which transition-based approach or relationship-based approached is the adopted business process in a country. in countries high level of long-term orientation, customer relationship is the focus and partners take extra time to ensure that their customers and partners experience the best business process through allocation of extra time for consideration and trial before purchase. In low long-term orientation, business is transaction based and the customer who makes the first payment is awarded the deal.

From the cultural dimension analysis, it can be stated that each of these cultures are interrelated with each other. For instance, if all things being equal, it is expected that a masculine country will likely have power distance (set standard for business process based on past experiences that have yielded the best result), low uncertainty avoidance (trial of new ways to further increase profit) and low long-term orientation (sale now and make more money, it doesn’t matter who bought it so long as it has been sold) etc.

Therefore, it is justifiable to state that culture influence the changing role of women in international business. This is because, with the high demand for increased profit maximization in masculine countries, it is expected that such countries will likely employ anybody (irrespective of race, gender, or ethnicity) that is deemed capable of retuning the best financial result for the company. In a high power distance country, it is also expected that women can make decisions that best influence their lives (power to seek any means of ensuring sustainability by opening her own business). In individualistic countries, it is expected that women would be accorded the necessary privacy and right to choose whatever job they want to undertake. Countries with low uncertainty avoidance and low long-term orientation will also employee any gender that is guaranteed from past results to yield the best possible result.

From the following correlations established between culture and women, it is now clear that the changing role of women in businesses in heavily influenced by the corporate and national cultures in which they associate themselves with. Thus, this is the reason why some countries (e.g. Scandinavian countries) have more female managers than other countries.

6.0 IMPLICATION OF THE CHANGING ROLES OF WOMEN IN INTERNATIONAL BUSINESS

It has already been noted, discussed and illustrated in the above paragraphs that the role of women has changed in international business. This change in role of women have associated negative and positively influences such as:

6.1 Positive influences

1.      Reduce employee-to-supervisor power differences, which will motivate employees as they will be better able to handle situations that directly influence their work. For instance, the changing role of women in business now means that they are no longer servants, but can actually decide on how to go about their daily business activities instead of seeking directions from men as is experienced previously.

2.      Reduces sexual harassment in work as the changing role of women in international business increases the power of female employees and reduces harsh advancement from men. Since women now have high power in the organization, they are no longer harassed sexually as compared with the rate when they had little power. This is because, the men are now under their control.

3.      Increases competition within the workforce between male and female employees as they both compete to gain the best productivity due to similarity in job. Since promotion is mainly based on performance and women now know that they can actually attain the highest position in an organization, the changing role of women means that men have to compete with them to gain new height in the organization and the result is increased productivity for the company.

4.      Change the traditional perception of women as “kitchen perfect” to “work perfect.” Now it is definitive that women are no longer about kitchen, but they can also cook wonderful foods in the office in terms of business strategies that are guaranteed to yield the best of results. Thus, this is another positive influence of the changing role of women in international business.

6.2 Negative influences

1.      In countries where men are naturally seem as being more powerful than women, adoption of female management teams can be a violation of culture and customs in that society, and it can have adverse effects on the company’s corporate image. For instance, companies that adopt female manager in Saudi Arabia might have their products boycotted or ignored by the market as women are usually associated with terms like “low power” which can lead to the products being perceived as low in quality.

2.      Biasness might be prevalent – in a situation where women were wrongly treated before they gained power in the board’s management, it can result to biasness and unfair treatment towards male workers. This is true in cases where the mistreated women are still working in the same company with the men who mistreated them. In such conditions, men will receive harsh treatment from these women as they try to pay them back for their harsh treatment in the past.

3.      Increased involvement of women in the workforce can result to change in production process and organizational principles as well as values towards employees. All these changes can take a long time and cost hugely in order to be enacted. This is because, there are jobs that are naturally designed for men such as heavy lifting, and the inclusion of women in these areas can influence the productivity negatively because they might not naturally be endowed with the necessary skills and stamina to perform these tasks.

7.0 CONCLUSIONS

If you don’t know yet, well this paper is telling you that women’s role in business have changed on both the domestic and international level. Women are no longer “kitchenomist” (practicing economics and management in the kitchen), they are now full-fledge entrepreneurs with versatile skills that will put the men on the run for a better way to ensure sustainability in corporations of lose their jobs to them.

The stud proved that in the past decade, the role of women in international business has been changing in terms of top management positions, administrative positions and entrepreneurial activities across the world. Their economic impact on economic development of countries across the globe are undeniable as they were directly linked to establishment and management of many entrepreneurial businesses that promote business activities, provide employment medium to job seekers, improve skills of the labour force, and provide entrepreneurial services across the world.  Thus, it will be concluded that “the role of women in business has changes in the past decade and will continue to change in a new phase that will see women across the globe taking power, influential, and top positions in both businesses, politics and academic positions.”

8.0 REFERENCES

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