Women Business Leaders In The Philippines:

WOMEN MANAGERS AND ENTREPRENEURS IN THE PHILIPPINES:

A COMPARISON WITH ‘WESTERN’ THEORIES1

Bet H. Roffey School of Commerce The Flinders University of South Australia GPO Box 2100 Adelaide South Australia 5001

Telephone: +61 8 82012195 Facsimile: +61 8 82012644 Email: [email protected]

SCHOOL OF COMMERCE RESEARCH PAPER SERIES: 00-7 ISSN: 1441-3906

1 The author is indebted to De La Salle University, Manila, the Women for Women Foundation (Phils) Inc, leading businesses in Metro Manila, and all research participants in the Philippines for their hospitality and support during the conduct of this study. The author, of course, takes full responsibility for the opinions and interpretations expressed in this paper.

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories WOMEN MANAGERS AND ENTREPRENEURS IN THE PHILIPPINES:

A COMPARISON WITH ‘WESTERN’ THEORIES2

ABSTRACT

Women hold significant leadership positions in national and local government, universities, business corporations and family business enterprises in the Philippines. ‘Western’ models developed primarily from studies of male managers, however, still dominate management and business leadership theory and practice in most countries. This paper evaluates the appropriateness of such models for Filipina business leaders.

Executives, corporate managers, and entrepreneurs in a wide range of industry sectors participated in a recent study of women business leaders in Metro Manila. In comparing the results with widely-quoted management writers, this paper identifies both universal management and leadership characteristics, and emic components which indicate the deeper meaning of effective management and business leadership within the Philippines context. Finally, the paper explores implications for managing in a global economy.

INTRODUCTION

Philippines business operations are competing in an increasingly global environment, and women managers and entrepreneurs make substantial contributions in many industry sectors. To date, however, business strategic management and leadership theories have been developed primarily from studies on male populations. While research on Asian business leadership has increased in recent years, the most extensive research on women business leaders has been conducted in Western countries (International Labour Organization, 1997).

Studies on specific groups of Filipina entrepreneurs include those by Alvarez and Alvarez (1972), Alvaro (1989), Edralin (1992), the University of the Philippines Center for Women’s Studies/SGV (1992), the University of the Philippines Institute for Small-Scale Industries (1991), Vicente-Wiley (1979) and Vinuya (1991). In conducting major surveys across five ASEAN countries, Hoffarth (1989, 1990; 1992) and Licuanan (1992a; 1992b; 1992c) have

2 The author is indebted to De La Salle University, Manila, the Women for Women Foundation (Phils) Inc, leading businesses in Metro Manila, and all research participants in the Philippines for their hospitality and support during the conduct of this study. The author, of course, takes full responsibility for the opinions and interpretations expressed in this paper.

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 2 produced the most comprehensive published findings of the background characteristics of women managers and entrepreneurs in Indonesia, Malaysia, the Philippines, Singapore, and Thailand. These studies were designed primarily to identify characteristics associated with successful women managers, to identify role models for potential women managers, and develop and implement training programs for women (Hoffarth, 1989; 1990; 1992; Licuanan, 1992a; 1992b; 1992c). Research literature searches and reviews, however, did not identify any consistent data on industry peer criteria for effective strategic managers and strategic leaders in the Philippines, peer identification of women managers and entrepreneurs who fit such criteria, or the attributes, behaviours and organisational contexts of effective Filipina strategic managers and strategic leaders. Extensive literature searches were conducted through electronic databases, and manual searches of University library holdings in the Philippines, the UK, the US, and Australia3.

The study, informed by grounded theory research methods, included the following objectives:

 to elicit industry peer criteria for identifying effective strategic leaders and strategic managers in the Philippines;

 to identify Filipina managers and entrepreneurs who fit such criteria;

 to investigate the attributes, behaviours and organisational contexts of effective Filipina strategic leaders and strategic managers; and

 to develop a theory of effective strategic leadership and strategic management that incorporates the context in which Filipina managers and entrepreneurs operate.

‘WESTERN’ MODELS: DEFINITIONS AND RESEARCH

Western leadership and management models indicate that the purposes of strategic leadership are to develop a vision of their firm’s future, promote the firm’s vision and mission, take a clear stand consistent with the organisation’s mission and philosophy, stimulate change and influence others by excitement and inspiration, and motivate employees to keep moving in the right direction to achieve the firm’s goals (Bass, 1981; Boyatzis, 1993; Drucker, 1994; Kanter, 1983; Kotter, 1990). Strategic managers are usually described as responsible for developing and implementing business plans to ensure their firm’s long-range survival (Ansoff and McDonnell, 1990; David, 1993; Kotter, 1990).

3 Materials from libraries at the Asian Institute of Management, Ateneo de Manila University, De La Salle University and the University of the Philippines in Metro Manila, Columbia University, New York and the University of California (Berkeley) were directly accessed during fieldwork research, and from Australian university libraries throughout the study.

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 3 The concept of entrepreneurship is a further consideration in public and private sector business leadership, regardless of organisational size, ownership structure or country location (Kao, 1991). While ‘entrepreneur’ frequently describes owner/managers of small or medium enterprises who were instrumental in startup and expansion of their own businesses, the term intrapreneurs has been used to describe entrepreneurial managers and leaders within existing large organisations (Pinchot, 1985). Effective entrepreneurs develop a vision of future possibilities, and inspire others to help transform that vision into reality (Mintzberg and Waters, 1982; Van Der Heidjen, 1993). Intrapreneurial executives or corporate entrepreneurs tend to be strongly growth-oriented, innovative, high risk-takers who constantly seek new opportunities for business development, and are willing to adapt corporate strategies to meet emerging opportunities (Drucker, 1985; Kanter, 1983; Mintzberg, 1988; Tan, 1995).

Given the importance of entrepreneurship in Philippines business (Tan, 1995), the results are first presented from an ‘entrepreneurial’ perspective. Research participants’ emphasis on effective business leaders’ ‘competence’ next warranted comparison with Boyatzis’ (1982) competency model. The interest in ‘transformational leadership’ (Bass, 1981; 1985; Bass and Avolio, 1993; Bass and Stogdill, 1990) and suggestions that ‘charismatic’ leaders possess universal characteristics (Bass and Avolio, 1993; House and Shamir, 1993), warranted the inclusion of these frameworks as the third theoretical comparison. As Senge’s (1990a; 1990b) ‘learning organisation’ and ‘strategic thinking’ frameworks informed his critique of charismatic leadership models, and the ‘strategic intent’ approach has been seen as more appropriate than ‘strategic fit’ models for businesses in rapidly changing environments (Hamel and Prahalad, 1989; 1994), Senge’s heuristic model and the ‘strategic intent’ paradigm (Hamel and Prahalad, 1989) formed the fourth and fifth comparative frameworks respectively. A comparison with Kotter’s (1988; 1990) leadership and management research appears in Roffey (1999).

RESEARCH DESIGN

The qualitative research methods, including multiple case analysis, were derived from grounded theory principles (Glaser, 1992; Glaser and Strauss, 1967; Strauss, 1987; Strauss and Corbin, 1990; 1994). Women managers and entrepreneurs in a range of industries in the Philippines first completed a mail survey. The open-ended questionnaire was designed to elicit key constructs that are perceived to be important in the opinion of business people in the Philippines, rather than imposing constructs derived largely from research on North American, European or Japanese companies (e.g. Kotter, 1988; 1990; Kanter, 1983; Misumi,

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 4 1985). The questionnaire generated qualitative information on respondents’ description of effective strategic leadership and strategic management characteristics, identified women nominated by respondents as meeting those criteria, and provided information on potential additional research participants. Modified nominal ‘snowball’ or ‘chain’ sampling procedures (Lin, 1976; Kidder and Judd, 1986) were used, in which each recipient of the questionnaire was asked to nominate at least one other person who fits the requirements of the study (i.e. women corporate manager or entrepreneur based in Metro Manila). Snowball sampling can generate ‘up to 90 per cent of all cases of a phenomenon of interest’ (Lin, 1976: 163), particularly where a formal or informal network operates between people in the research population. As networks play an important role in business in the Philippines (Gonzalez, 1987; Hoffarth, 1989; Soriano, 1973; 1991), snowball sampling generated additional potential respondents who were sent a questionnaire in subsequent mailings.

Women entrepreneurs and managers whom industry peers considered to be both effective strategic leaders and strategic managers were then interviewed. The semi-structured interview protocol was adapted, with permission, from Kotter’s leadership and management research. The author subsequently interviewed work colleagues and other organisational members, participated in organisational activities, and analysed pertinent documents. Field observation methods included formal interviews and informal conversations with peers, subordinates and superiors, attendance at committee meetings and training sessions, participation in work-related social activities, and conducting professional activities as a business educator and strategic planner. Followup communications with research participants ensured accuracy of qualitative data coding and categorisation, and provided additional background information.

Women entrepreneurs, managers and executives in industries based in Metro Manila comprised the research population. The author first visited Manila in 1994, to consult with Filipina executives and entrepreneurs regarding the research scope and design. In November, 1994, a sample of Filipina managers completed pilot questionnaires. A revised questionnaire was mailed to 222 Filipina managers and entrepreneurs in 1995, and provided the foundation for further purposive sampling of women identified as effective business leaders in their industries. Table 1 summarises the characteristics of questionnaire respondents according to industry and organisation size, using the Philippines National Census and Statistics Office classifications.

TABLE 1

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 5 SURVEY RESPONSE DISTRIBUTION: INDUSTRY SECTOR BY ENTERPRISE SIZE Industry Sector Small Medium Large Not TOTAL stated (<20 (20-99 >100 employees) employees) employees

1. Agriculture 1 1 2. Manufacture 1 1 5 7 3. Retail trade 1 1 4. Construction 1 1 2 5. Mining 1 1 6. Finance, Real 2 4 16 22 Estate, Insurance, Businesses 7. Community, 5 4 6 15 Social, Personal 8. Utilities 1 1 9. Transport, 2 2 2 6 Communication TOTAL 11 11 32 2 56

The questionnaire data constituted only the first segment of the triangulated data set. The overall response rate of 25.2% was lower than desirable for mail surveys (Cooper and Emory, 1995), but compared reasonably with other mail surveys of business leaders in the region compared reasonably with other mail surveys of business leaders in developing economies (see Salehi-Sangari and Lemar, 1993; Syrett, 1995; Yin, 1995). Surveys in developing economies can produce lower response rates than similar studies in industrialised countries (Salehi-Sangari and Lemar, 1993). Filipina managers and entrepreneurs of large and medium sized organisations were over-represented in the survey population, in comparison with the number of small, family businesses in the Philippines (Eviota, 1992; Hoffarth, 1990; Licuanan, 1992a; Samonte, 1990). The results can not therefore be generalised to Filipinas managing small-scale ventures such as sari-sari stores, footpath vending and market stalls, and the participants in the informal economy (see Austin, 1990).

Questionnaire respondents nominated 35 women whom they considered to have characteristics of both effective strategic managers and strategic leaders. The responses to the initial questionnaire identified a disproportionately high number of effective Filipina strategic leaders and strategic managers in large and medium sized organisations in comparison with those in small enterprises. The author subsequently conducted interviews

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 6 and field observations in Manila-based organisations, and collected pertinent organisational documents. All industry sectors except agriculture were represented in the final sample of 21 participating organisations.

Completed in 1998, the research included cross-case analysis of data from organisations within the same industry, between industries, and between large, medium and small enterprises. The cross-site qualitative data analysis methodologies expounded by Miles and Huberman (1984; 1994) were also adapted, by examining data from multiple theoretical perspectives and differing cultural orientations.

Data processing and analysis

Grounded theory research methods were modified for use in this research, and data analysis enhanced by using an appropriate qualitative data analysis (QDA) computer program. Whereas quantitative coding requires the researcher to situate data in predetermined codes deduced from an a priori theoretical position, qualitative coding procedures are more appropriate for grounded theory research in which categories are created from interpretation of the data during the research process itself.

Generative questions (hypotheses, concepts, relationships) were developed at the beginning of the study, and during data analysis. As concepts were coded, the researcher developed theory, which increased in conceptual density as additional linkages were tested. The validity of the concepts and their linkages during each phase of the data collecting and coding were tested, through comparison of primary data from different sources, feedback from research participants and verification from secondary data sources. Memos of theoretical ideas were recorded during the research process, and continually modified as new data were collected and analysed. Regular memo and code inspection and sorting during the research process was done to increase the conceptual density of the theoretical memos. Categories, dimensions and linkages were refined and modified during the research process, to ensure that the final core categories provide the ‘best’ reflection of the data.

Data from all sources were analysed using the qualitative data analysis program QSR NUD*IST (Non numerical Unstructured Data Indexing Searching and Theory-building) (QSR, 1994; 1995; 1997). Advantages of using computers to analyse qualitative research data include increased efficiency, flexibility, adaptability, data interpretation reliability and validity, and ease of data triangulation. Computers can assist in testing and verifying relationships between ideas and concepts, and increase the explanatory power of qualitative

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 7 research by allowing researchers to investigate systematically the links between the data and emergent concepts, interpretations, classifications and categories (Kelle, 1997; Miles and Huberman, 1994).

QSR NUD*IST (Non numerical Unstructured Data Indexing Searching and Theory-building) Revision 3.0 (QSR, 1994; 1995) was chosen initially because of its strengths in qualitative data coding, categorising and theory-building from multiple data sources. While subsequent conversion to QSR NUD*IST 4 (QSR, 1997) enhanced data interrogation and theory development procedures, the software was primarily a tool for systematically organising, indexing and exploring qualitative data in codes and categories relevant to the key research domains of effective strategic leadership and strategic management. Questionnaire, interview and observational data were stored as word processing documents, and introduced in text file form to the QSR NUD*IST qualitative data analysis program for subsequent coding, retrieval, testing of linkages between categories and theory building.

Theoretical assumptions and procedures used in the study are discussed further in Parker and Roffey (1997).

RESULTS

Professional skills and industry knowledge were perceived to be essential requirements for effective leadership, regardless of gender or industry sector. All ‘effective’ Filipina business leaders consistently encouraged professional training and skills development in their employees, to increase organisational and national competitiveness. There was a sense of urgency and personal commitment in the emphasis on training and development, and empowering employees to develop initiative and produce high-quality goods and services. Effective business leaders demonstrated their commitment to high performance standards and individual initiative through their personal example. They emphasised and rewarded pride in performance, organisational loyalty and individual self-confidence. The following section focuses on comparisons of the findings with dominant ‘Western’ leadership and management models.

The nature of ‘entrepreneurship’ in Filipina business leadership is first discussed. The findings are then examined from within competency perspectives, transformational and charismatic leadership frameworks, Senge’s ‘learning organisation’ leadership, and the ‘strategic intent’ paradigm.

Entrepreneurial Women

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 8 Filipina entrepreneurial executives in finance institutions, commercial banking, transport, and owners/managers of family enterprises were strongly growth-oriented, innovative and moderately high risk-takers. They scanned the business environment for new business development opportunities, and were willing to adapt business strategies to meet emerging opportunities. These observations were largely consistent with Western descriptions of entrepreneurial and ‘intrapreneurial’ attributes and behaviour (Drucker, 1985; Kanter, 1983; Mintzberg, 1988; Pinchot, 1985). Nevertheless, the country’s developing economic status, research participants’ sensitivity to international perceptions of business risk in the Philippines, the adverse consequences of over-expansion in some enterprises during the 1980s, and changing political/business networks influenced Filipina entrepreneurship strategies and behaviours.

The Filipina intrapreneurs in medium and large organisations, which were not family enterprises, possessed the competence and persistence necessary to persuade their peers and subordinates of the value of innovative strategies, and overcome obstacles to implementation. Filipina entrepreneurs in small media and environmental technology organisations, as well as intrapreneurs in medium and large organisations set challenging but achievable goals for staff and employees. They were all strongly action-oriented, and showed evidence of adapting their behaviour in response to mistakes. All these observations were consistent with previous literature on entrepreneurship. Some of the Philippines business and political dynamics during the 1970s and 1980s, industry deregulation and increased global competitiveness, had created a strong imperative for effective Filipina entrepreneurs to focus on business finance and marketing details, and to develop results-oriented, product or service quality operations management procedures and reward systems. Although the dynamics intrinsic to these entrepreneurial behaviours resemble those outlined in entrepreneurship writings in the 1980s (Drucker, 1985; Kanter, 1983; Pinchot, 1985), the economic and political contexts of Filipino entrepreneurship differ substantively from those in developed Western economies.

A Competency Perspective

Research participants emphasised the importance of managerial competence for effective strategic leadership. Filipina business leaders demonstrated leadership characteristics consistent in part with Boyatzis’ (1982) competency model, in terms of the entrepreneurial requirement of management positions, goal and management competencies, and leadership competencies.

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 9 Boyatzis’ ‘goal and action management’ cluster includes competencies associated with ‘efficiency orientation’, ‘proactivity’, ‘diagnostic use of concepts’, and ‘concern with impact’. This results-oriented cluster includes elements of total quality management, continuous improvement and innovation.

The ‘efficiency orientation’ includes a ‘concern for doing something better’. Managers with an efficiency orientation set challenging but realistic goals, write or describe plans, and organise resources. They emphasise efficiency in resource use, and ‘speak of relative returns on investment or relative results from allocation of resources’ (Boyatzis, 1982: 60).

‘Proactive’ managers have a ‘disposition toward taking action to accomplish something’, and ‘view events in life as opportunities for taking action and see themselves as the agent who must precipitate such action’ (Boyatzis, 1982: 71). They ‘initiate action, communication, proposals, meetings or directives to accomplish a task….seek information from a wide variety of sources…. [and] actively search the environment for “needs” that can be translated into product ideas’ (Boyatzis, 1982: 72).

Managers who demonstrate ‘diagnostic use of concepts’ ‘usually have a model, theory, or framework with which to interpret or explain events’. They ‘recognise patterns and interpret aspects of the situation by applying information from the specific event to an organisational model that they have…. If they don’t have a mental “road map”, they will create one’ (Boyatzis, 1982: 80).

‘ Concern with impact’ is particularly pertinent at executive/senior management level (Boyatzis, 1982: 93). Executive competency criteria include persuasive skills, ability to influence other, and maintaining product/company prestige.

Boyatzis’ ‘leadership cluster’ applies to executive and middle management positions only, and includes ‘self-confidence’ evident in self-presentation skills, oral presentation and communication skills, and ‘conceptualisation’ or identification of patterns through concept formation and analysis of patterns or themes. Sequential thinking and logical organisation of thoughts and activities is considered a core competency for middle management, while effective executives are characterised by both external and internal focus and orientation, and demonstrate self-confidence as well as concern with impact. Table 2 summarises data with reference to Filipina business leader/organisation ‘fit’ with Boyatzis’ framework of competency clusters.

TABLE 2

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 10 EFFECTIVE FILIPINA BUSINESS LEADERS: ‘FIT’ WITH BOYATZIS’ (1982) COMPETENCY MODEL CLASSIFIED BY ORGANISATION TYPE COMPETENCY EFFECTIVE FILIPINA BUSINESS LEADERS Entrepreneurial requirement of management Real estate, education, finance, banking, jobs: manufacturing, retail, construction, transport, environmental management, corporate foundation, ‘ to make things happen towards a goal or petroleum, media. consistent with a plan’ (Boyatzis, 1982: 60) Management cluster Efficiency orientation Real estate, construction, education, finance, banking, transport, environmental management, utility, petroleum Proactivity Education, finance, banking, manufacturing, transport, environmental management, corporate foundation, utility, real estate, petroleum, media Diagnostic use of concepts Education, finance, banking, transport, environmental management, corporate foundation, petroleum Concern with impact Education, finance, banking, manufacturing, construction, environmental management, corporate foundation, petroleum, transport, media Leadership cluster Conceptualism Education, finance, banking, petroleum, environmental management, corporate foundation, transport Sequential thinking, logical organisation of Banking, finance, education, utility, real estate, thoughts and activities transport External/internal focus Education, finance, banking, manufacturing, construction, environmental management, corporate foundation, real estate, petroleum, transport, media

Leadership Beyond Competency?

Not all business leaders who possess Boyatzis’ requisite ‘competencies’ choose to exercise their leadership competencies consistently in their management positions. Using a role enactment framework in a study of a ‘large, diversified financial services company and a large international oil company’, Boyatzis (1993: 7) reported agreement between middle level managers’ self-ratings and subordinate ratings on the extent to which managers enacted leadership roles in contrast to management roles. The managerial roles included planning, a competitive advantage orientation, producing predicable results, influence by consensus, problem-solving speeches, dealing with controversial issues through seeking consensus, and self-perception as an allocator of organizational resources. In contrast, business leaders focus on the organisational mission and philosophy, based their own work on the organisation’s

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 11 purpose, see their main responsibility to stimulate change, influence others by ‘excitement’. They use speeches to ‘motivate and inspire, deal with controversial issues by taking a stand and communicating their stand clearly, and see themselves as ‘representative of the organization’s mission/vision’ (Boyatzis, 1993: 6). In examining the conditions under which executives who possess required leadership competencies exercise those competencies in practice, Boyatzis identified an interaction between business leaders’ reported role enactment, career growth preferences and organisational factors.

While the difference between Boyatzis’ sample and research method and those of the present study preclude direct analysis of the ‘fit’ between frameworks, the results of the study indicate that role enactments may have a cultural confound. In large finance and banking, real estate and education organisations, the congruence between Filipina business leaders’ self-descriptions, and peers’, colleagues’ and subordinates’ perceptions, indicates that Filipina business leaders are expected to enact Boyatzis’ ‘leader roles’ as well as ‘influence others by consensus’, and ‘solicit views and seek consensus’ in dealing with controversial issues (Boyatzis, 1993: 6). The ‘effective’ Filipina strategic leaders and strategic managers harnessed cultural values of consultation and consensus in decision-making. After they had sought opinions and comments, however, they took a stand, summarised the issues and their decision, and acted decisively to implement decisions. They linked decisions on strategies, issues and specific problems back to the organisation’s mission and vision. The ways in which they enacted these leadership roles have been described in preceding chapters. The dimensions and expressions of role enactment therefore appear culturally contingent.

Transformational and Charismatic Leadership

There are cultural and gendered considerations of both ‘transformational’ and ‘charismatic’ Filipina leadership that shape the meaning of these leadership models in the Philippines business environment.

Both ‘charismatic’ leaders (House and Shamir, 1993) and ‘transformational’ leaders (Bass, 1985; Bass and Avolio, 1993) have strong visions for their organisations and successfully inspire their followers to act in the interests of collective organisational interests rather than their own individual needs. Bass and Avolio (1993) and House and Shamir (1993) have suggested that charismatic leadership has common elements across cultures. There may be cultural differences, however, in particular leader behaviour and decision-making styles, as well as cultural differences in employee responses to specific charismatic attributes. While

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 12 Kanter (1977) is one of the few Western writers who have tackled the gender discourse in transformational leadership, the challenges she presents to contemporary business leaders need to be tempered by the political, economic and gender considerations in the Philippines.

‘ Transformational’ leadership was apparent in heads of large accounting firms, banking, power supply and private university executives, a medium transport firm and heads of smaller service sector organisations. Transformational leadership characteristics were most evident in women whose organisations were implementing strategic change. One executive’s clarity of vision for the organisation, persistence, persuasive skills, consultation and consensus- seeking strategies and attention to detail enhanced staff commitment to the organisation’s vision and goals, thus transcending individual interests. ‘Hands-on’ involvement in organisational transformation included planning and leading corporate strategy sessions, developing and delivering training programs, close personal attention to organisational performance and performance improvement incentives linked to individual and work group achievements. Across all industries, the consistent emphasis on staff training and development to increase the organisation’s competitive advantage reflected Filipina business leaders’ awareness of global competition, and the need to recruit, support and retain highly qualified staff.

‘ Transformational’ leaders in Philippines subsidiaries of multinational enterprises inspired employees through their clarity of strategic vision, ability to communicate the organisation’s vision, mission and values, knowledge of individual employee strengths and learning needs, and consistent reinforcement of goal-directed achievements. While the senior executive of a transport firm complied with international headquarters’ strategic directions, the ways in which she led the Philippine subsidiary’s structural and quality improvement changes included transformational leadership elements. Operating in a highly competitive industry which requires efficiency, accuracy and a client service orientation, she developed an ethos of continuous improvement. She empowered individual employees through targeted training programs, performance-linked incentives, ritual celebrations of individual and group achievements, and modelling persistence and organisational commitment.

Effective ‘transformational’ leaders subsumed ‘transactional’ qualities in communicating organisational goals, helping employees identify and carry out task responsibilities, monitoring, correcting and rewarding performance to achieve the organisation’s goals. Effective ‘transactional’ leaders, however, did not consistently demonstrate the visionary and empowering personal skills necessary to inspire employees to commit themselves to the

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 13 wider organisation’s interests and needs. Moreover, while ‘inspirational’ leadership behaviour through collaborating with and aligning employees to increase their commitment to the organisation was evident in women who led medium and large manufacturing organisations, their strategic leadership orientation was embedded in a synthesis of Filipino kinship politics and entrepreneurial acumen rather than formal, systematic strategy processes.

The ‘Learning Organisation’; ‘Strategic Thinking’

Senge’s (1990b) critique of charismatic leadership models is based in his perception that ‘our traditional view of leaders – as special people who set the direction, make the key decisions, and energise the troops – is deeply rooted in an individualistic and non-systemic worldview. Especially in the West, leaders are heroes – great men (and occasionally women) who rise to the fore in times of crisis’ (Senge, 1990b: 9). Senge’s image of the ‘hero’ is grounded in a military metaphor. Such an image is consistent with the origins of ‘strategic management’ techniques, which are based on traditional military strategies. These strategies, however, are not uniquely Western: Sun Tzu’s ‘The Art of War’, an ancient Chinese military strategy treatise, was popularised and adapted for Western business use. Female ‘heroes’ or business leaders do not commonly appear in strategy writings embedded in military metaphors.

During the 1980s and early 1990s, case histories of a number of successful Filipina entrepreneurs were written, for use in women’s management development programs (Licuanan, 1992a; 1992b). The ways in which these women lead do not fit the military strategy or charismatic models of business leadership. Along with several senior executives in large services organisations, the entrepreneurs in this study showed more evidence of ‘stewardship’, ‘teacher’ and ‘designer’ roles than ‘military leader’ roles. The gendered and cultural realities of the Filipina business leader as ‘steward’, ‘teacher’ or ‘designer’, however, differ from their meaning in Senge’s framework.

In advocating the development of a ‘learning organisation’ characterised by ‘integrative thinking and acting at all levels’ (Senge, 1990: 8) Senge conceptualises business leadership roles as those of ‘designer’, ‘teacher’ and ‘steward’. Traditional strategic management models have ‘design’ components in strategy, structure and policy development, usually done by senior management. In contrast, Senge’s ‘learning organisation’ creates a organisational environment in which managers change their ‘mental models’ of the company. Designing strategy, structure and policies therefore involved developing and supporting strategic thinking in managers and decision-makers. Rather than being an authoritarian leader who

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 14 teaches employees one ‘correct’ view of reality, Senge’s ‘leader as teacher’ assists organisational members ‘restructure their views of reality to see beyond the superficial conditions and events into the underlying causes of problems – and therefore to see new possibilities for shaping the future’ (Senge, 1990: 15). The stewardship role of a business leader is ‘almost solely a matter of attitude’ which ‘operates on two levels: stewardship for the people they lead and stewardship for the larger purpose or mission that underlies the enterprise’ (Senge, 1990: 17).

The majority of business enterprises studied by Senge in developing his ‘learning organisation’ model were large multinationals. There was only a partial ‘fit’ between Senge’s reconceptualised roles of the business leader as ‘designer’, ‘teacher’ and ‘steward’ in a ‘learning organisation’ model, and the attitudes, mindsets and behaviours of Filipina business leaders in the study. The collectivist structure and values of Filipino society, gender role expectations and the kinship dynamics which affect managerial behaviour, provide a distinctive context for the meaning of leader ‘stewardship’.

The ‘nurturing’ role expectations and reciprocal responsibilities in the Philippines ‘organisation as family’ contain business leader ‘stewardship’ characteristics. The meaning of such characteristics, however, are embedded in the culture and gender domains. Effective Filipina business leaders talked about their roles in developing the national economy as well as their own organisation. In the Philippines context, ‘stewardship’ was two-dimensional. In the ‘competitive strategy’ dimension, Filipina business leaders made intensive efforts to upgrade the professional skills of their staff to increase the business competitive position and product/service quality. In a ‘national development’ dimension, influential executives examined strategies for encouraging highly educated Filipinos working overseas to return home. These two dimensions combine to produce an single ‘strategic stewardship’ dimension. If successful in its implementation, this ‘strategic stewardship’ would achieve three main purposes. Individual organisations would improve performance and competitiveness. The country would benefit from an aggregate increase in skill base. Finally, international perception of the Philippines as a sound investment proposition and source of high-quality products would be enhanced. This in turn would increase the competitiveness of individual organisations.

A culturally specific meaning of business leader ‘stewardship’ involved delicadeza, which differed from the context of Senge’s ‘learning organisation’. Delicadeza required Filipina business leaders to exercise their moral and ethical obligations to their employees in ways

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 15 that would not necessarily involve fostering a ‘learning organisation’ mindset. In fact, its historical and cultural origins mean that delicadeza can be antithetical to the encouragement and reward of alternative views of reality within organisations. Moreover, delicadeza involves the perception of business leadership as ethical and above board as well as the enactment of socially acceptable, moral and ethical behaviours, and is in conflict with Filipino kinship politics. The meaning of leader ‘stewardship’ in the Philippines business environment is therefore compounded by cultural dynamics. While the discourse around historical patterns of business leadership in the Philippines, and ‘modern’ competitive, innovative business practices, transcends gender considerations, Filipina business leader have to meet the challenges of negotiating between the potentially competing imperatives of delicadeza and kinship politics within the context of their specific business, community and family situations.

Determining the degree of ‘fit’ between Senge’s ‘leader as teacher’ and ‘leader as designer’ was more straightforward. Senge’s construction of the ‘learning organisation’ leader as ‘designer’ was consistent with leadership orientation and strategies evident in small and medium entrepreneurs in (technology, media, manufacturing), and large ‘intrapreneurs’ (private education, finance institutions). Where Filipina business leaders were compliance- oriented, there was no evidence of either the ‘designer’ role or a ‘learning organisation’ strategic orientation. Similarly, the ‘leader as teacher’ in fostering ‘empowering’ rather than ‘correct’ views of reality through authoritarian leadership, was only clearly apparent in Filipina business leaders whose orientation was not compliance-driven. Women who set and rewarded strategic goals and targets, even after consultation and provision of staff training, only demonstrated ‘empowering’ teacher roles where they also demonstrated ‘strategic stewardship’ and ‘designer’ attitudes and behaviours.

The Filipina businesswomen who most consistently embodied Senge’s business leader characteristics also demonstrated strategic thinking in their leadership behaviour (Mintzberg, 1987). Not only did they practice traditional strategic management policy development and implementation: their entrepreneurial attitudes and ‘visioning’ mindsets enabled them to conceptualise likely future scenarios and alternative business models. Such strategic thinking was most apparent in businesswomen who had been educated in US universities. Their success in transmitting their strategic mindsets to colleagues in their organisations varied according to leadership style and organisational history.

‘Strategic Intent’ and Filipina Business Leadership

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 16 The Philippines business environment is changing rapidly, as Filipino organisations are operating in an increasingly competitive international business environment. As Hamel and Prahalad (1989; 1994) have argued that corporate ‘strategic intent’ is more appropriate than ‘strategic fit’ models for businesses in rapidly changing environments, the nature and extent of ‘strategic intent’ in Filipina business leadership was examined. Several contingencies associated with ‘strategic intent’ were identified in this study, and emic components of implementing strategic intent were apparent.

In their model of contemporary strategic leadership and strategic vision, Hamel and Prahalad (1989) distinguish ‘strategic intent’ from ‘strategic fit’. They argue that ‘strategic intent’ may be more appropriate for leaders of organisations in dynamic global operating environments, as it permits more organisational flexibility than traditional strategic management models. Traditional strategic management involves a search for the strategic fit between business portfolios, market niches and products, customers and distribution channels. Sustainable advantage is maintained by emphasising financial targets and containing strategy implementation within resource parameters. Strategic intent, on the other hand, requires entrepreneurial business leaders who seek new rules for business strategies. They lead by focussing on strategic challenges rather than financial targets, and obtain resource leverage to achieve goals rather than constraining goals within apparent resource constraints. They develop portfolios of core competences in the organisations, and emphasise rapid learning within the organisation (Hamel and Prahalad, 1989; Van Der Heidjen, 1993).

The research findings in this study indicate distinctive boundaries and contingencies which moderate the applicability of Hamel’s and Prahalad’s framework to the Philippines context. The degree of ‘strategic intent’ was contingent on level of industry competition, organisational history, level of resource control, and strength of external strategic alliance networks. The enterprise visions of Filipina business leaders in manufacturing and retail enterprises were bound by the ‘strategic fit’ model rather than proactive strategic intent. Organisations in these sectors had enjoyed some level of industry protectionism and government support in the past, and were beginning to deal with increased competition. Business leaders in the banking industry, who were operating under external regulatory constraints, showed more evidence of traditional strategic fit. In the financial services sector, however, the Filipina business leaders’ strategic visions contained more elements of strategic intent. In the education sector, the senior woman executive of a large private university had an entrepreneurial, strategic intent orientation as she helped the organisation redirect its

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 17 strategy. The highly competitive transport sector included one entrepreneurial business leader who exercised strategic intent in redefining the nature of the organisation’s core business, and developing and implementing strategies to develop an industry leadership position.

Business leaders who had extensive kinship group alliances were able to negotiate resources to support strategic goals, and hence were in an advantageous position in exercising strategic intent in implementing their organisational vision. This phenomenon was evident across organisation size and industry, but was particularly noticeable in small media and community sector organisations. The entrepreneurial nature of strategic intent is a core variable which in the Philippines business context was supported by external palakasan dynamics, exploiting external opportunities and implementing internal staff development strategies.

CONCLUSION

The results of this study indicate some convergence of the conceptual parameters of ‘strategic leadership’ and ‘strategic management’ between ‘Western’ models and Philippines business leadership. Interpretation of the ways in which Filipina executives and entrepreneurs develop and implement their business strategies, and of their leadership and managerial styles, however, are most meaningful when interpreted within the context of Philippines culture and business dynamics.

The study provides support for the argument that functional role parameters of business management are universal. All Filipina executives played planning, directing, leading and controlling roles. Consistent with mainstream Western management theory and research (e.g. Boyatzis, 1982; 1993; Kotter, 1988; Mintzberg, 1975; Quinn et al, 1988), Filipina business leaders showed evidence of effective coordination, planning and allocation of resources. They were adept at facilitating and problem-solving by either consensus or individual decision-making), and had a results-oriented style of management. The enactment of these roles, however, was bounded by culture and gender dynamics.

Similarly, the ‘visionary’ and long-term orientation required of ‘strategic leaders’ appears to transcend cultural boundaries, but the ways in which Filipina executives and managers communicate their strategic vision, generate support for their strategies, and implement their long-run strategies have distinctive characteristics within the culture and gender discourses.

The extent of conceptual ‘fit’ between mainstream Western business leadership models was contingent on cultural and organisational contexts in which the research participants operated.

Women Managers and Entrepreneurs in the Philippines: A Comparison with ‘Western’ Theories 18 Moreover, the gender discourse generated specific considerations which are not readily apparent in mainstream strategic management and strategic leadership models. In critiquing ‘leadership’ discussions in Western management literature, Mintzberg similarly argued that ‘the excess attention to the role of leading has probably been matched by the inadequate attention to the role of linking … managers have been shown to be external linkers as much as they are internal leaders’ (Mintzberg, 1996: 30, emphasis in the original). The requirement of effective managers to develop ‘vast arrays of contacts and intricate coalitions of supporters beyond their own units, whether within the rest of the organization or outside, in the world at large’ (Mintzberg, 1996: 30) is arguably universal. This study shows, however, that networking structures and strategies for effective business leadership must be interpreted within the culture and gender contexts.

The globalisation of business in an increasingly competitive and rapidly changing environment has challenged businesses to rethink the ways in which they do business. Adler (1994a) contends that organisational structures and employment policies have created opportunities for expatriate and host country women in transnational companies, which may not be available in more traditionally structured domestic organisations in both countries. Women are increasing their professional roles in international business management as well as in domestic labour markets (Adler, 1994b; Adler and Izraeli; 1994). However, globalised industry structures, cost-competitive strategies and the continued sexual division of labour in countries such as the Philippines (Eviota, 1992) pose significant challenges for women’s career development and participation rates in skilled occupations in these countries.

Women’s entrepreneurial leadership opportunities in small business enterprises may improve if competitive business outsourcing strategies rely on skilled entrepreneurial management and quality control. In practice, however, outsourcing in developing economies has provided an inexpensive labour force in which women are disproportionately represented. The impact of transnational and multinational enterprises on small-scale domestic industries in the Philippines and other developing economies requires further investigation. The dynamics described in this paper provide a stimulus for further critical investigation of the consequences of rapidly increasing industry globalisation.

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