Clanism

Abstract

Abstract: * The objectives of this paper are: (1) to present and develop clanism as an indigenous management concept in Central Asia, and (2) to analyze the effect of clanism on a specific management function--human resource management (HRM)--in the concrete context of Kazakhstan. * This exploratory study employs a qualitative research. The data indicate that the degree to which clanism affects HRM practices depends, to a great extent, on the type of company. Clanism's effect is strong in state-owned companies and moderate in privately held companies, while it is weak in the subsidiaries of multinational companies. Furthermore, the influx of western MNCs has influenced Kazakhstani HRM in general and lessened the influence of clanism on HRM. However, some characteristics of the local labor market may strengthen the effect of clanism on HRM practices. * The paper proposes a definition of clanism; discusses the reasons for clanism's existence; investigates how clanism differs from other indigenous concepts, such as blat and guanxi; and analyzes how clanism affects HRM practices in Kazakhstan, a country that is strategically important for international management. Keywords: Clanism * Kazakhstan * Human resource management * Indigenous concept Introduction If newly developed economies (e.g., in Asia, South America, and Eastern Europe) are novel contexts that differ from the regions in which the bulk of management theories originated, research in these contexts must involve some contextualization if the limits of existing theories are to be discovered or if new theories to explain local phenomena are to be developed. (Tsui 2007, p. 1357) Why are indigenous management concepts essential to an understanding of management practices in emerging markets and transitional economies? The institution-based view of international business suggests that the formal institutions in emerging markets and transitional economies have less of an impact than the informal institutions that organize and govern those societies. Although some combination of formal and informal institutional frameworks shapes strategic choices (North 1990), advocates of the "third leg"[1] in the strategy tripod argue that "in situations whereby formal institutions are weak, informal institutions, such as norms governing interpersonal relationships, rise to play a larger role in driving firm strategies and performance" (Peng et al. 2008, p. 927). Therefore, in order to truly understand management practices in these economies, we must consider the powerful role of informal interpersonal social networks; how those networks adapt and change over time; and how they create, affect, constrain or undermine management practices in firms operating in these environments. Thus far, much of the literature has focused on the importance of such indigenous concepts as guanxi in China and blat in Russia. Indian dharma and South African ubuntu have also entered the discussion. One indigenous concept that is essential for understanding management practices in the emerging region of Central Asia has not yet attracted the attention of management scholars. Western political scientists refer to this concept as clanism (see e.g., Schatz 2004; Collins 2006). In the political science literature, a clan is defined as an informal organization comprised of a network of individuals linked by immediate and distant kinship, and by fictive kin identities. While kinship ties (blood ties) are rooted in the extended family, fictive kinship ties include individuals that are part of a network as a result of marriage, family alliances, school ties, long-lasting friendships or neighborhood affiliations (Collins 2006). Clanism has never been developed as a management concept and its implications for managerial practices have not been studied. This is unfortunate, as we believe that a deeper understanding of clanism as an indigenous management concept will contribute to debates on whether western managerial practices, ideas and concepts can coexist with local practices. …