Executive Wisdom:Town A Study of Phronesis in Modern Management Practice Submitted by: FrancoisCape Steyn for ofthe degree of Doctor of Philosophy Supervisor: Associate Professor Kosheek Sewchurran University Graduate School of Business UNIVERSITY OF CAPE TOWN The copyright of this thesis vests Townin the author. No quotation from it or information derived from it is to be published without full acknowledgement of the source. The thesis is to be used for private study or non- commercial research purposes Capeonly. of Published by the University of Cape Town (UCT) in terms of the non-exclusive license granted to UCT by the author. University Declaration I, Francois Steyn, hereby declare that the work on which this thesis is based is my original work (except where acknowledgements indicate otherwise) and that neither the whole work nor any part of it has been, is being, or is to be submitted for another degree in this or any other university. I have not allowed or will not allow anyone to copy any part of this thesis with the intention of passing it off as his or her own work. Signature: Date: 7 May 2019 University of Cape Town Graduate School of Business i Abstract The prominence of executive management failures brings to the fore concerns with a perceived lack of management scholarship impact. Executive managers should be better prepared for a complex world of work and there is a growing scholarly awareness that this requires more focus on practical knowledge (developed though phronesis), which has largely been ignored in favour of theoretical knowledge (developed through episteme) and specialist craft skills (developed through technê). This thesis contributes to the discourse by analysing phronesis, as the virtue underpinning practical knowledge within the managerial scholarship domain. The thesis highlights the fact that, despite its utility, phronesis is generally absent from management scholarship, from professional development and from executive management practice. A phronesis-infused, practice-focused pedagogy is required. However, given the abstruseness of phronesis as a concept in the executive management context, what should a phronesis-pedagogy entail? How can the progress of executive managers in developing their phronesis be gauged? In seeking answers to these questions, this study crystallises a definition and conceptual typology of managerial phronesis through an inductive Gioia Grounded Theory analysis of relevant literature published over the past decade. Managerial phronesis is defined as a morally-imbued capacity for sense-making and managerial action aimed at virtuous outcomes. It is characterised as a situationally embedded developmental and practical skill characterised by interrelated Modes of Engaging, Knowing and Thinking, Being, and Acting. However, understanding phronesis in the applied executive management context demands that the theory be extended to practice. The theory was therefore tested through a two-phased Qualitative Content Analysis. The first analysis of transcripts of interviews with practicing phronetic social scientists was followed by an analysis of minor dissertations submitted by Executive MBA students from the University of Cape Town’s Graduate School of Business. In this context, Phronetic Social Science embodies phronesis-in-action and the Executive MBA represents a phronetic executive management practice programme. The analysis validated the Grounded Theory typology and extended it by highlighting the existence of “embraces paradox” as a further characteristic of a phronetic Mode of Knowing and Thinking. A credible typology of managerial phronesis emerges from the research. This thesis therefore contributes to the discourse on the training of executive managers. It clarifies how phronesis as a vital managerial competence manifests in practice. In so doing, this research offers the management scholarship discipline a framework for developing good executive managers. ii Table of Contents Declaration i Abstract ii Table of Contents iv List of Figures and Tables vii Dedication ix Preface x Acknowledgements xii 1. Introduction to the study 1 1.1 The ineffectiveness of management scholarship in developing executive managers 2 1.2 The inadequacy of management scholarship impact 4 1.3 A focus on the obscurity of phronesis 6 1.4 Research aims and questions 8 1.5 Contribution of the research 9 1.6 Organisation of the thesis 10 2. Contextualising and defining managerial phronesis: A literature review 13 2.1 Introduction 13 2.2 The deficiency in scholarship impact conceptualised as a theory-practice gap 13 2.2.1 The knowledge transfer problem 15 2.2.2 Difference in knowledge in theory and knowledge in practice 16 2.2.3 Knowledge production problem 16 2.3 Limited impact of management scholarship as the consequence of a neglect of phronesis 18 2.4 An introduction to phronesis, episteme and technê in management scholarship 20 2.4.1 Episteme 24 2.4.2 Technê 24 2.4.3 Phronesis 25 2.5 The utility of phronesis in executive management practice 26 2.6 The enduring dominance of episteme and technê 28 2.7 The pedagogical challenge of developing phronesis in executive managers 31 2.8 Phronetic Social Science: phronesis in management scholarship 32 2.9 Developing managerial phronesis 37 2.10 Modern schemas of wisdom, phronesis and practical wisdom 38 iii 2.11 A definition of managerial phronesis 42 2.12 Conclusion 46 3. Research design, methodology and methods 47 3.1 Introduction 48 3.2 Research philosophy 49 3.3 An inductive and deductive qualitative research approach 51 3.4 Research methods 54 3.4.1 The research questions 54 3.4.2 Unit of analysis and data collection 56 i. Literature review 57 ii. Phronetic Social Science as a laboratory of phronesis in action 59 iii. An analysis of executive management practice 61 3.4.3 The integration of Grounded Theory coding and Qualitative Content Analysis 69 3.5 Ethical considerations 75 3.6 Conclusion 77 4. A typology of managerial phronesis: the crafting of a grounded theory 78 4.1 Introduction 78 4.2 First order analysis 79 4.3 Second order analysis 85 4.4 Developing aggregate dimensions 89 4.5 A grounded typology of managerial phronesis 91 4.5.1 Mode of Engaging 92 4.5.2 Mode of Knowing and Thinking 93 4.5.3 Mode of Being 102 4.5.4 Mode of Acting 106 4.6 Conclusion 109 5. The evidence of phronesis in practice: A directed qualitative analysis 110 5.1 Introduction 110 5.2 Developing the coding scheme 111 5.3 Extracting the meaning units for analysis 113 5.4 The concept driven coding results 116 5.5 Reviewing the theory of phronesis 119 5.6 Conclusion 121 iv 6. The manifestation of managerial phronesis in the practice of researchers and executive managers 123 6.1 Introduction 123 6.2 Phronetic mode of engaging in practice 124 6.2.1 Contextually sensitive 124 6.2.2 Dialogical and discursive 124 6.2.3 Participative 125 6.3 Mode of Knowing and Thinking 125 6.3.1 Discerning 125 6.3.2 Orientation towards experiential learning 125 6.3.3 Analytical 126 6.3.4 Interrogative 126 6.3.5 Deliberative 126 6.3.6 Problem focused 127 6.3.7 Embraces paradox 127 6.4 Paradoxical nature of phronetic Knowing and Thinking 128 6.4.1 Value-rational and reasoned 128 6.4.2 Non-algorithmic and heuristic 128 6.4.3 Particular and universal 129 6.4.4 Critical and considerate 129 6.4.5 Personal and communal 130 6.4.6 Subjective and holds multiple perspectives 130 6.4.7 Principled and pragmatic 131 6.5 Mode of Being 132 6.5.1 Action-orientated 132 6.5.2 Adaptable 132 6.5.3 Cautious 133 6.5.4 Intuitive 133 6.5.5 Mindful 134 6.5.6 Reflective and reflexive 134 6.5.7 Virtuous and ethically sensitive 135 6.6 Mode of Acting 235 6.6.1 Collaborative 135 v 6.6.2 Habitual 136 6.6.3 Responsible 136 6.6.4 Situational and applied 237 6.7 Conclusion 138 7. Conclusion 140 7.1 Achieving the research aims 141 7.2 The study of phronesis in executive management and the development of a typology of managerial phronesis 142 7.3 Phronesis in executive management 143 7.4 Contributions of the thesis 145 7.4.1 Theoretical discourse on the development of executive managers and the nature of phronesis 145 7.4.2 Empirical contributions 146 7.4.3 Recommendations 147 7.5 Research particularities and opportunities for further research 150 7.6 Conclusion 152 References 153 Appendix A: First order categories 174 Appendix B: The structure of the first order category ‘Phronesis as an action competence’ 176 Appendix C: Constructing second order themes 177 Appendix D: Illustrative evidence of the second order themes of managerial phronesis 181 Appendix E: Data structure and emerging typology of managerial phronesis 187 Appendix F: Managerial phronesis coding scheme 193 Appendix G: Meaning units from the verbatim transcript of the interview with A3 197 Appendix H: Meaning units from the B1 minor dissertation 199 Appendix I: Categorisation of meaning units from researcher-context 203 Appendix J: Categorisation of meaning units from executive management practice- 218 context vi List of Figures and Tables Figures Figure 1.1 Structure of the thesis 10 Figure 2.1 Contrasts in knowledge types 22 Figure 2.2 The relationship between knowledge types and intellectual dispositions 23 Figure 2.3 The phronesis, practitioner and practice relationship 27 Figure 2.4 Sophia in relation to episteme, technê and phronesis 39 Figure 3.1 Research design, based on Graue (2012) 48 Figure 3.2 Inductive, deductive qualitative research design 54 Figure 3.3 Research Boundaries 56 Figure 3.4 Gioia Grounded Theory coding process based on Gioia et al.