Science-based metaphorical models for a business

Citation

Teck Foo, C. (2013), "Science-based metaphorical models for a business", Chinese Management Studies, Vol. 7 No. 3. https://doi.org/10.1108/cms.2013.32307caa.001

Science-based metaphorical models for a business

Article Type: Foreword From: Chinese Management Studies, Volume 7, Issue 3

In this special issue, we focus on managing the business model.

One of the major sources for ideas for management is from the military, for example operations research. Yet the other source is from the sciences with perhaps an overemphasis on empirical within the scientific approach. Formulating of hypotheses, data collection and statistical testing have become the norm. Yet we must as management scholars realize sometimes it is the original, deep, reflective thinking that is crucial.

The question I keep asking myself as Editor-in-Chief is: “Should the empirical approach be the only way to approach Chinese management within CMS?” After all, social sciences, of which management is a part within the broad disciplinary divide, are not exactly sciences. Should we not be utilizing empirical, scientific approach as one possible way of exploring management? Should we broaden our range of papers to include, for example, modeling metaphorically from the sciences for insights?

So I began this journey of reflection […]

Some two decades ago whilst I was a doctoral candidate at University of St Andrews, Scotland, I developed a molecular perspective to organizational structure (Figure 1). Then as now, organizational structure is viewed mostly in static terms: say, functional, geographic or product-divisional structure. My focus was and remains on the interactions between elements of an organization. I discovered differences in interactional patterns between Western (foreign-owned, mostly US or European) versus Eastern (Singapore) organizations. The metaphorical equivalent is the molecule of water and in the pattern of bonding of the elements of hydrogen and oxygen (http://en.wikipedia.org/wiki/Water).

Figure 1 A molecular model of organization

In my explorations of the different metaphors from natural sciences, I drew upon the plant cell (http://en.wikipedia.org/wiki/Plant_cell, Figure 2) for inspiration when modeling the firm. Although the plant cell is organizationally complex (beyond the scope here to explain in detail), its functional aspects may broadly be related to the firm as an organism. This is exactly what I did and citing from the relevant part of my earlier work (Foo, 1993, p. 35), these comments:

Plants absorb from the environments input factors such as carbon dioxide and transform or “adds value” to these gases by changing them into oxygen (outputs) – something which is required by other living organisms.

Figure 2. Modeling a firm utilizing the concept of a plant cell

Since firms or corporations often in the process of their production in value-adding also pollute the environment, I added:

For corporations, however, there is an additional facet to consider. Although such outputs as finished products may be of value to customers, there may be other undesirable “outputs” as a consequence of the production process. In the future corporations are likely to incorporate a “green” measure when modeling performance (p. 36).

As compared to the 1990s, socially responsible production is now of utmost importance and especially in the capital city of China: every Beijinger I meet is despondent about too high a level of air pollution. I am shocked to learn too of the lingering fear among well-off citizens about the safety aspects in the baby milk produced in China. Somehow in racing blindly for high growth, the Chinese management paid far too little attention to their corporate social responsibility (CSR).

The plant cell captures the input-output process with the cellular wall (membrane) delineating the boundary of the firm. Then I was trying to develop a generic, input-output model that reflects the productivity, commonly measured by value-added per employee, in the process of throughput production. It should be a model that may be used for investigating the operational efficiency of a firm given published Census of Industrial Production statistics.

As a parallel to internal parts of the plant cell, I identified within the firm these separate elements: corporate value and philosophy (as boundary), techno-structure (often reflected in capital expenditure), operating core as in transforming materials to product (seen in payments for inputs, work given out, raw materials, fuels, electricity and water) and physical and support (quantifiable through various rentals of office, machinery, other expenditures).

This statistical modeling is shown in Figure 3.

Figure 3 Statistical modeling of productive efficiency

Consistent with the current call by President Xi Jin-ping to be dreaming, I should share my conceptualization of the model, future “Artificial Manufacturer” (Figure 4). For consumer products in the future (say, watches, cars, shoes), customers ought to be able to design through configurability systems their dream product. That is an individualized product where the specifications are exactly as those preferred by the customer. For example, on color, the customer may prefer rose red and not just red or for a watch face, one with roman numerals and shoes, a specific type of leather. Thus, before production, a product’s design and specifications (and epayment made) has already been settled by the customer. In other words, the trigger for manufacturing is a dream product and the process becomes one integrated with services, especially design configurability.

Figure 4 Modeling the concept of the future artificial manufacturer

In conclusion, I must thank Professor Xi Youmin and Dr Zhang Xiaojun for their contributions as Guest Editors in selecting a series of excellent papers (read the Guest Editors’ editorial) on this very theme of “Managing Business Models”. At the same time, I welcome ideas, proposals for presentations (at forthcoming 3rd Global Chinese Management Studies Conference) or outline of papers for CMS on the likely impacts of new leadership on management in China.

Check Teck FooEditor-in-Chief