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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: 00-7ISSN: 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

mailto:[email protected]

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 1

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.


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,


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


SURVEY RESPONSE DISTRIBUTION:INDUSTRY SECTOR BY ENTERPRISE SIZE

Industry Sector Small

(<20 employees)

Medium

(20-99 employees)

Large

>100 employees

Not stated

TOTAL

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 Estate, Insurance, Businesses

2 4 16 22

7. Community, Social, Personal

5 4 6 15

8. Utilities 1 1

9. Transport, Communication

2 2 2 6

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


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


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


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.


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


EFFECTIVE FILIPINA BUSINESS LEADERS:

‘FIT’ WITH BOYATZIS’ (1982) COMPETENCY MODEL

CLASSIFIED BY ORGANISATION TYPECOMPETENCY EFFECTIVE FILIPINA BUSINESS LEADERS

Entrepreneurial requirement of management jobs:

‘to make things happen towards a goal or consistent with a plan’ (Boyatzis, 1982: 60)

Real estate, education, finance, banking, manufacturing, retail, construction, transport, environmental management, corporate foundation, petroleum, media.

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 thoughts and activities

Banking, finance, education, utility, real estate, 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


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


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


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


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


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


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


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.


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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