17 ‘global but local’: mediated work in global business ...ericm/global.but.local.pdf · 17...

17 ‘Globalbutlocal’:mediatedworkinglobalbusinessorganizations

DagfinnHertzbergandEricMonteiro

Introduction Globallyoperatingbusinessorganizationsarecaughtinadeepdilemma.Ontheonehand,thereisastrongemphasisonbeing‘close’totheircustomers.Thisstems,inpart,fromthecritiquesof Fordistmodesof productionsuchasflexiblespecializationorleanproductionwhichunderscorethegrowingdifferentiationinconsumptionanddemand(PioreandSabel1984;Womack1990;NohriaandGhoshal1997;Ger1999).AsKeat(1990:3)notes,‘meetingthedemandsofthe‘sovereign’consumerbecomesthenewandoverridinginternationalimperative’.Therearereasonstodoubttheextenttowhichwehaveactuallyenteredtheageofpost-Fordistproduction(Dickenetal.1994),yetcrucialforinterpretivestudiesoforganizationaldynamics‘thereisnodoubtthatmanagerialrepresentationsofthecustomerasameansofrestructuringorganizations,andofinfluencingemployees’behaviourandattitudes,areof realimportance’(duGayandSalaman1992:619).Ontheotherhand,globalbusinessorganizationswanttoretainthetraditionaleconomyofscalebasedonextensiveroutinizationandstandardization.Theyalsoneedtopresentareasonablycoherentanduniformfrontstagetoensurethattheyareperceivedasthe‘same’,preservinganidentityorabrand(Leidner1993;Ger1999).Thedilemmaofgloballyoperatingproductionandserviceorganizationsis,sotospeak,tocombinethebetteroftwoworlds(Jonesetal.1998:1048).Weanalysethisdilemma,focusingonthestrategies,challengesandexperiencesaroundacquiring‘closeness’despitemediated,distancedrelationshipsandpatternsofcommunication.

OurinterpretivestudyisempiricallybasedonRolls-RoyceMarine(RRM).A5000employeedivisionof Rolls-Royce,RRMisahighlycompetitiveproducerofshipandoff-shoreequipmentforcommercialmarineenterprisesworldwide.Traditionallyahigh-qualityproducerofequipment,RRMisinthemidstofatransformationintoamoreservice-oriented,customer-focusedenterprise.Organizationally,theserepair,maintenanceandsparepartsdeliveryservicesarepredominantlydeliveredthroughagloballydispersed,500-employeebranchofRRM(theGlobalSupportNetwork,

365

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366 Handbookofcriticalinformationsystemsresearch

GSN).TheespousedoperationalstrategyofRRMis‘globalbutlocal’,thuscombiningthetraditional(andfairlycentralized)productionwithastrongerlocalpresenceandclosenesswithcustomers.Ontheprogrammaticlevel,thisglobalbutlocalstrategyisnotunlikemanyotherstrategies.Ourstudyaimstoanalysethedynamics,contingenciesandcontroversiesembeddedinthistransformation.EmpiricallywefocusonlocalsitesintheGSN,supplementedwithperceptionsattheproductionsites(the‘principals’)andtheheadquarterstoanalysehowtheclosenesswithcustomersisrealized.Morespecifically,westudythe‘disembedded’(Giddens1990)natureoftherelationshipbetweenthegloballydispersedGSNsitesandtheScandinavian-basedproductionsitesandheadquarters.Thedirectionofouranalysisisaimedatthefollowingsetofquestions.Howistheespousedambitionoftheglobalbutlocalstrategyplayedoutwithintheorganization?Bowingtothepressuretostreamlineandmakemoreuniformtheworkroutines,procedures,rolesandformatsof reporting,whataretheconditionsforlocallygroundedcultivationofcustomerrelationships?Howisthequalityof productsandservicesaffectedbythecontradictorydemandsfromlocalinteractionandglobaluniformity?Howisthebalancebetweenlocalautonomyandcentralizedcontrolnegotiatedandperceived?Howistrustdynamicallyandprovisionallyconstructedintherelationshipbetweenthelocalsitesandheadquarters?

Inthenextsectionwedescribethebackgroundforanddiscoursearoundtheproblemofmediatedsocialrelationships.Weelaborateaperspectiveonabstract(orinstitutional,non-personal)trust,aprerequisitefordisembeddedcommunicationtofunction(ibid.),asprovisional,fragileandemotional.Wethenpresentsomecontextforourstudyaswellasadescriptionofourresearchmethod.Thesubsequentsectionanalysesthedynamicsof theongoingreorganizationeffortspursuingthreethreads:theimplicationsintermsofpracticesandcompetencesofbeing‘close’tothecustomers;thetensionbetweengloballyapplicableroutinesandlocallyembeddedstrategies;andthedynamicsandcharacteristicsofhowtrustisestablishedandcultivated.Thefinalsectioncontainsconcludingremarks.

Conceptualizing mediated communication in global business organizationsGlobal business organizations are of course not new. In a usefulclassification,GhoshalandBarlett(1989)outlinethreeidealtypesoforganizationalconfigurations:multinational,internationalandhybrid.Themultinational,exploitedbytheexpandingEuropeanfirms,wherethelocal(national)businessesenjoyextensiveautonomy,thusproducingalooselycoordinatedportfoliooflargelyindependentbusinesses.Theinternationalmodel,promotedbyUS-basedfirmsaftertheSecondWorldWar,wherethelocalbusinessesaremoretightlycoordinatedandaremoredependenton

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Mediatedworkinglobalbusinessorganizations 367

thecentreforcompetenceandskill.Thestrongaspectoftheinternationalmodel,accordingtoGhoshalandBarlett(ibid:58–9) is itsabilityto:‘leveragetheknowledgeandcapabilitiesof theparentcompany.Butitsresourceconfigurationandoperatingsystemsmakeitlessefficientthantheglobalcompany,andlessresponsivethanthemultinationalcompany’.

Hence, there is a need to work out new hybrid models of globalorganizationsasexistingmodelsfailtocombinethebenefitsofcentralization(international model) and decentralization (multinational model).Exactlyhowsuchbusinessesaretobeconfiguredremainsthetopicofanunresolveddebate.

Theincreasingpressureforresponsivenesstolocalcustomers’demands,gettingclosetothecustomers,isparticularlyintenseforinteractiveservicework(Leidner1993;Jonesetal.1998)–or,asisthecaseforRRM,theincreasinglevelofinteractiveserviceworkalsointraditionalproduction-oriented businesses (Freeman and Perez 1988). Interactive serviceworkimpliescloseinteractionwithcustomers,andthusseemstoresistroutinization.Forobviousreasons,agloballyoperatingorganizationwillnecessarilyneedtoestablishaminimumof uniformityinitsproducts,services,internalroutinesandreportingsimplytoberecognizedasoneandthesameentitybyitssurroundings,andtobeabletocoordinateandcommunicateinternally.Yet,theexactextent,level,typeandlocationof thisuniformityareanythingbutobvious.Inathoughtfulexplorationofthisdilemma,Leidner(1993:30)consciouslychoosestheextremecaseofinteractiveserviceworkatMcDonald’s,anorganizationobsessedwithandrecognizedforuniformity.Thedilemmaisthat:‘uniformityofoutput,amajorgoalofroutinization,seemstobeapoorstrategyformaintainingquality...sincecustomersoftenperceiverigiduniformityasincompatiblewithquality’.

Muchof thecommercialsuccessof McDonald’s,contrarytomorepopularrepresentations(Ritzer2000),Leidnerargues,hingesonthewayuniformityissimultaneouslysuperimposedby‘personalized’interaction,includingfriendlygreetings(‘howareyou?’),smiles,gesturesandevenscriptedjokes.Hence,theissueof whatconstituteshighqualityforthecustomercutsacrosssimplisticdichotomieslikeuniformversuscustomized.Itpointstoaconceptualizationofstandardizationofworkthatavoidstheperceptionsofstandardizationassomethingimposedondocilesubjects(TimmermansandBerg2003).

AspointedoutbyJonesetal.(1998),thechallengewhenprovidingglobalservicesistobridgethegapandgetclosebyestablishing‘authentic’relationships.Theserelationshipsarenotsingularlinksbutratherneedtobemorebroadlyembeddedandmeshed:‘Thenewcustomer–supplierrelationshipsinvolvelonger-term,closerrelationshipsbaseduponahigh

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levelof mutualtrust;theyaredeeplysocially,aswellaseconomically,embedded’(Dickenetal.1994:39).

Thenotionof embeddednessunderscoreshowactioningeneral,andorganizationsmorespecifically,arebounduporembeddedinlocalculture,social relationsandnetworks. Inhisarticle,Granovetter (1989:484)criticizesthe‘under-socialized’conceptionofeconomicbehaviourfoundinneo-classicaleconomictheoryasit:‘disallow[s]byhypothesisanyimpactof socialstructureandsocialrelationsonproduction,distribution,orconsumption.Incompetitivemarkets,noproducerorconsumernoticeablyinfluencesaggregatesupplyordemand,or,therefore,pricesorothertermsoftrade’.

Elaboratingthispoint,AminandThrift(1994:5)arguethatpartoftheflowsinaglobalworldofinterconnections,aworldruledbyglobal-scalecapitalistimperatives,continuestobeconstructedinandthrough‘territoriallyboundcommunities’,thusmakingthenotionsof ‘globalvillage’or‘oneworld’deeplycontradictory.Inelaboratingtherelationsbetweenglobal‘forces’andlocalembeddedness,theyviewglobalizationas‘aboveall,agreatertying-inandsubjugationof localities(citiesandregions)totheglobalforces’(ibid.:8).Eventhoughthelocalispresentedasarelationalandrelativeconceptwhichisfluidandconstructedthroughitsrelationtoglobalforces,AminandThriftmaintaintheimportanceof‘real’spaceinthesenseof being‘constructedoutof thejuxtaposition,theintersection,thearticulation,ofmultiplesocialrelations’(p.9).Placesbecomesharedspaceswherethelocalmeetsgloballydistributedconcepts,structuresandimpulsesinanongoingprocess.

Otherscholarsonglobalization,especiallyGiddens(1990),emphasizehowsuchclose relationshipsare exactlywhat isunderpressure.Thedisembeddingofsocialrelationshipsunderminesthecloseness,since:‘Theadventofmodernityincreasinglytearsspaceawayfromplacebyfosteringrelationsbetween“absent”others,locationallydistantfromanygivensituationofface-to-faceinteraction’(ibid.:18).

Inthisprocess,placegets‘increasinglyphantasmagoric,’anotionGiddensusestodenotethepenetrationofplacebysocialinfluencesdistantfromthem.Alocalphenomenonisnotsolelystructuredbythethingspresentthere,butalsobydistanciatedrelationsimplying:‘thedisembeddingofsocialinstitutions…the“liftingout”ofsocialrelationsfromlocalcontextsandtheirrearticulatingacrossindefinitetractsoftime-space.This“liftingout”isexactlywhatImeanbydisembedding,whichisthekeytothetremendousaccelerationintime–spacedistanciationwhichmodernityintroduces’(italicsadded)(p.21).

Tocompensate,bridgeormendthedisembeddedrelations,theyhavetobere-embedded.ThisisaprocessthatGiddensprogrammaticallyoutlines

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asinvolvingabstracttrust,thatis,goingbeyondtraditional,interpersonal,face-to-facetrustrelations:

Reembeddingreferstoprocessesbymeansofwhichfacelesscommitmentsaresustainedortransformedbyfacework[face-to-faceinteraction].(p.88)

Myoverall theseswillbe thatalldisembeddingmechanisms interactwithreembeddingcontextsofaction,whichmayacteithertosupportortounderminethem,andthatfacelesscommitmentsaresimilarlylinkedinanambiguouswaywiththosedemandingfacework.(p.80)(italicsadded)

Themediatedcharacter(telephone,fax,e-mailandotherinformationsystems)ofthelargelyfacelessinteractionbetweenthegloballydispersedGSNnetworkofRRMandtheheadquarterswillnecessarilyimplyabstract,notface-to-face,trust.AsKnightsetal.(2001:316)pointout,‘workingforacompanyentails“interpersonal”and“institutional”dimensionsofbothtrustandcontrol’.Yet,combiningafocusonlocalsitesinglobalorganizationswithperceptionsattheheadquarters,highlightstheabstractorinstitutionaldimensionsoftrust.Weaimtofleshouttheprogrammaticallystipulatedroleofabstracttrustasitunfoldsdynamicallywithinaglobalorganization.

Theissueoftrustinorganizationshasattractedaconsiderableinterestrecently(RingandVanderVen1992;Fukuyama1995;Lane1998;Sako1998;seealsospecial issueof OrganizationStudies:200122 (2).Thisfocusontheroleof trusthasseveralmotivations.Onestrandattemptstoascribedecisiveimportancetotherolethattrustplaysinfacilitatingregionalnetworksof collaboration,thusaccountingfortheireconomiccompetitiveness(PioreandSabel1984).Asecondthreadcirclesaroundbasicprinciplesoforganizationalbehaviourandtheextenttowhichtrustdoes(ordoesnot)functionasanalternativemechanismforcontrol(Lane1998).AsKnightsetal.(2001:313)pointout,‘trusthascommonlybeenidentifiedasafeatureofsystemsthatpositanalternativetoTayloristandFordistsystemsofcontrol’.Athird,andforourpurposesmostrelevantentryintothedebate,isthewaythattrustininstitutionsandabstractsystemsisdeeplyimplicatedinthesetoftransformationprocessesforwhichglobalizationactsasaconvenientshort-hand.Thedisembeddingofsocialinteractionthroughtime–spaceseparationpresupposestrustinabstractsystems(Giddens1990:87).

Giventhattrustdoesnotmaterializeoutofnowhere,thekeyissueforourpurposesistoanalysethedynamics,thatis,theprocesswherebytrustinabstractsystemsisproduced.Lane(1998)outlinesthreenotionsoftrust:(i)‘calculative’trustbasedonarationalchoiceapproachwhich‘doesnotstanduptosociologicalscrutiny’(ibid.:7;compareGranovetter1989);(ii)‘value-ornorm-based’trustfoundedontheassumptionthattrustcannotdevelop

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withoutcommonvalues,thusside-steppingtheissueofhowthesevaluescomeintobeing;and(iii)‘cognition-orexpectation-based’trustwhichencompassavarietyofstrandsthatsharethesociallyconstructedbasisoftrust.Withourambitionofanalysingthedynamicsofhowabstracttrustandhencere-embeddingunfold,weemploythelastofLane’sperspectives.Fromthegeneralinsightsofsciencestudies(Law1991;Latour1999),thisimpliestreatingtrustmethodologicallyasaprocess-orientednotion.Inthesame(methodological)mannerassocialarrangements,concepts,‘truth’anddecisions,abstracttrustisseenastheperformedachievementinvolvingenrollingallies,buildingcoalitionsandtranslatinginterests(Law1991).Aninterestingaspectofthisperformativeorprocess-orientedperspectiveontrustistheaffinitywithissuesofcontrolandpoweras‘powercanbehiddenbehindthefaçadeof“trust”andtherhetoricof“collaboration”,andusedtopromotevestedintereststhroughthemanipulationofandcapitulationbyweakerpartners’(CleggandHardy1996:679)andasone‘seekstoconstruct,“enrol”,and“mobilize”…acompliant[relationship]’(Knightsetal.2001:315).Thisavoidsthedichotomy,pointedoutbyKnightsetal.,betweentrustandcontrol.

Inhisanalysisonthedynamicsof modernity,Beck(1994)makestherelevantobservationthatdespitethedisembeddednessofsocialinteraction,localactioncan–and indeeddoes–have ‘global’ implications.Thisunderscoresthepointabouttrustmadebyseveralwriters,namelyitsfragilenature(McAllister1995;Lane1998).Even‘small’eventscanhave‘large’,potentiallyunanticipated,effects.Hence,atoostrictadherencetoaspecificlevelof analysisisproblematicas‘thewords“local”and“global”offerpointsofviewonnetworksthatarebynatureneitherlocalnorglobal,butmoreorlesslongandmoreorlessconnected’(Latour1993:122).

The fragilityof trust implies that reaffirmationgoesbeyondmererepetitions. It is rather a necessary prerequisite for maintaining therelationship.Withoutreaffirmationitwouldfallapart: ‘noinstitutioncanremaintrustedwithoutthecontinualreproductionof trustthroughinterpersonalrelations’(Knightsetal.2001:314).Yet,asBeck(1994:9)insists,thepursuitofitbecomesincreasinglyfutileinourageofreflexivemodernityas:‘Theexpansionandheighteningoftheintentionofcontrolultimatelyendsupproducingtheopposite’.

Asalientaspectoftrustistheemotionalelementsofit(McAllister1995;JonesandGeorge1998).Emotions,Fineman(2000:1)emphasizes,arenotmerelyappendedtotherelationsas‘boredom,envy,fear,love,anger,guilt,infatuation,embarrassment,nostalgia,anxiety–[they]aredeeplywovenintothewayrolesareenactedandlearned,powerisexercised,trustisheld,commitmentformedanddecisionsmade’.Thisimpliesthatattemptstofactoroutemotionsareproblematic.McAllister(1995:25)representssuchan

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attemptwhendistinguishingbetweenaffect-andcognition-basedtrust,theformerofthese‘groundedinreciprocatedinterpersonalcareandconcern’.McAllister’sfocusisexclusivelyoninterpersonaltrustbetweenmanagersandemployees,thusdisregardingissuesofabstracttrustaltogether.JonesandGeorge(1998)alsoanalyseemotionalaspectsoftrustintheirmodellingoftheexperienceandevolutionoftrust.Distinguishingbetweenemotions(intense, instantaneous)andmoods(lessintense,generalizedaffectivestates),theypresentathree-phasedmodelfortheestablishmentoftrust.Suchamodelwithidentifiablestatesandphasesthroughwhichtrustevolvesbreakswiththeperspectivesoutlinedabove,whichemphasizetheongoing,contingentandfragileaspectsoftrust.

Furthermore,byfocusingexclusivelyontheexperienceoftrust,JonesandGeorgefailtolinktheemotionalaspectsoftrustwiththeformationofidentitiesasemphasizedbyscholarsonthesubjectofglobalization(Giddens1990;Lane1998;Castells2001).Therelevanceofthelinkbetweenidentityformationandtrustrelationsisthatitservestounderpintheimportanceoftrusttomorethanmerelyanissueofhowwellcommunicationbetweenunitsorindividualsfunctions,andaccordingly,howtrustcaneitherenhanceorreducejobefficiency.Inourcase,itisfairtosaythattheemotionalandidentity-relatedexperiencesasassociatedwithtrustareasimportantasthelocalGSNrepresentatives’abilitytodotheirjob.

AsLane(1998:23)explains,citingLuhmann(1979),thefragilityandemotionalaspectsoftrustareintimatelytiedupwiththeself-developmentof identity,aprojectradicallydifferentinaglobalizedworld.Identityformation,accordingtoGiddens(1990:5;seealsoCastells2001),takesthe formof an individual trajectory in themodernsociety,aprojectdisembeddedfromitstraditionaltieswithfamily,backgroundandcultureas‘self-identitybecomesareflexivelyorganisedendeavour’.

Self-identity,liftedoutoftradition,presupposesself-constructionandrevision,thusurgingindividualsintomoreconsciously‘choosing’theirownidentity.Obviouslythisdoesnotimplythattraditionsareirrelevant,onlythattheyaredelegatedalesscentralrole(Giddens1990:5).

Still,thebasisforself-identityinthelatemodernworldisrisky,sinceitisopentoreflexive,dynamictreatment,henceitisunstable.Thelackof‘ontologicalsecurity’(Giddens1990),thatis,thegroundforactingandunderstandingtheworldforgedbythede-traditionalizationordisembeddingdynamismsoflatemodernity,mayaccordinglyleadtoincreasing‘existentialanxiety’.Thisdoesnotimplyatotalchaosandbreakdownofself-identity,butindicatesamoreflexibleandfluidconstructionofidentity.

Thusprofessionallifelinkscloselywiththebroaderhandlingof self-identity,implyingthatchangesinworkconditionsbecomepartoftheprojectofself-identity.Inthisway,thequestionoftrustrelationsconcerningwork

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canleadtodeepandemotionalreactions,asitistiedtotheself-identityofindividuals,not‘merely’theirwork.

Summingup,wehaveanalysedempiricallyhowthere-embeddingofrelationshipshingesontheconstructionofabstracttrustthroughprocessescharacterizedas(i)provisional(ongoing,performed),(ii)fragile(contingent,small events – large consequences, requiring reaffirmation) and (iii)emotional(tiedupwithidentityformationasatrajectory).

Background and setting of the studyWithNorway’slongandwindingcoastline,Norwegianshavealwaysbeenapeopleconcernedwithfishing,tradingandshipbuilding.Overthelastcentury,themaritimeclustersofshipbuildinghavetravelledfromthesouth,thentotheOslofjordareabeforeendingupintheircurrentstrongholdinthenorthwestoffTrondheim.Anareadominatedbyverysmall,family-ownedworkshopsandhandcraftenterprises,thenorthwesterncornerofNorwayhasduringthelastcoupleofdecadesdevelopedintoanextensivenetworkofsuppliers,subcontractorsandcustomersofshipsandshipequipment.

Amajorhubinthisnetworkhasbeenthe80-yearoldbusinessof theUlsteinfamily.Duringthe1980s,UlsteingraduallygrewthroughsmalleraquisitionsandmergersinNorway,SwedenandFinland.Pridingthemselvesonproducinghigh-quality,handcraftedproducts–including‘theRolls-Royceofpropellers’–Ulsteingrewintoasubstantialmaritimeconglomerate,whoseconstituentsitesenjoyedextensiveautonomy.

ThrivingontheoffshoreboomfollowingtheNorwegianbuild-upofoilproductionintheNorthSea,Ulsteinwassimultaneouslyexposedtothesignificantfluctuationswithinthissector.In1998,inaboldmovetoescapefromthisvulnerablepositionandtothesurpriseof mostofthemaritimecluster,familyownerMortenUlsteindecidedtospecializeanddifferentiatebysplittingUlsteinintothe(stillfamily-owned)UlsteinShipyardsandsellingoff UlsteinIndustrier,thedistributednetworkoflargelyautonomousproductionsitesforshipequipmentsuchaspropellers,gears,bearings,winches,rudders,dieselengines,thrustersandautomationinaNOK3.9billion($500m)sale.Inanefforttosecureafirmfooting,UlsteinIndustriermergedayearlaterwiththeLondon-basedVickerstoformVickers-Ulsteinwith5000employees.Thissetoff aseriesofmajorreorganizingeffortsaimedat‘realizingthesynergies’,achallengethathadtoovercomethetraditionalcompetitionbetweentheformerUlsteinandelementsofVickers.TheformativestagesofthisprocessweretheperiodfollowingtheVickers-Ulsteinmerger.

Inessence,thecommerciallogicunderlyingthemergerwastoexploitthepotentialforawiderproductrange,movingtowardscomplete,systemssolutionsratherthansingularinstallationsand‘localsupportprovided

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globally’.AvitalelementinachievingthiswastheGSN,whichisthegloballydistributedsalesandservicefunction.Farfromcompletion,thesereorganizationprocesseswereinterruptedbyanacquisition:thewholeofVickers-Ulsteinwithits50000employeeswasacquiredbyRolls-Roycelessthanayearlater.Inanefforttoexpandintoareasoutsideitstraditional(andstagnating)biastowardsmilitaryaspectsofthemaritimesector,whatwastobecalledRolls-RoyceMarinewasestablishedtogainafootinginthepotentiallyexpandingcommercialmarinearea.Althoughmodified,thebasicthrustanddirectionofthereorganizationprocessinitiatedwithVickers-UlsteinwascontinuedbyRRM.Inagesturetounderscoreitswillingnesstodecentralize,Rolls-RoycedecidedtolocatethenewRRMheadquartersinUlsteinvik,thetraditionalhomegroundofUlstein.

Ourdatacollectionreliesprimarilyonatotalof 31semi-structuredinterviewsconductedineightroundsduring1999–2002.Theearlyoneswererelativelyopen-ended,exploringtheissuesandtensionsembeddedinthereorganizationefforts.ThisledtoagradualfocusontherelationshipbetweenGSNandthesuppliersasacoretheme.Theinterviewswereconductedatfivesites:thetwolargestGSNsites,thetwolargestsuppliersiteswithinRRM(calledthe‘principals’byemployees,andlocatedinScandinavia)andtheheadquarters.Table17.1summarizestheinterviews.

Table17.1 Interviewcategoriesandnumberofinformants

GSNrepresentatives Suppliers’representatives

Seniormanagement 2 4Middlemanagement 5 4Sales 4 5Service 3 4Total 14 17

Inaddition,therewerefourmeetingsaimedatvalidatingpreliminaryinterpretationsbydiscussingobservationswithstakeholdersinRRM.Intotal,16peopleparticipatedinthesemeetings,providingobjectionsto,commentsonandelaborationsofourobservations.Wehavealsohadaccesstointernalnewsletters(In-depth,MarineInfo),memos,reports,contractsandelectronicarchives.

Managing over distance

GettingclosetothecustomersAsoutlinedearlier,muchattentionhasbeenfocusedonthe‘sovereign’customerandtheneedfororganizationstobemoreresponsiveandflexible

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tocustomerdemands.TheongoingreorganizationinRRM,startingwiththeVickers-Ulsteinmerger,isheraldedunderthebannerof‘customerfacing’.Inpart,thisisbutamirrorimageofthemoregeneraltrend,yetthespecificsofthehistoryandconfigurationofRRMprovidecrucial,additionalweighttothegeneraltrends.InthecaseofRRM,theformthistakesisshapedbyanumberofparallel,superimposedprocessesandagendas.

Managerialstrategiespromotingtheimportanceofclosenesstocustomersshouldnotbeshruggedoffasmereespousedtheories(duGayandSalaman1992).Managerialrepresentations,socialconstructivistthinkinginstructsus,are‘real’inthesenseofhaving(potential)influenceontheorganizationandcontentsofwork.Hence,thereisbutamodestelementofinnovationwhenRRMproclaimsits‘globalbutlocal’strategy:

Thebasic‘globalbutlocal’strategywasinitiatedlastyear[in1999]followingtheforgingof VickersMarinewithUlstein…IthasnowbeenembracedbyRolls-Royceinitsnewmarinebusiness…Rolls-Royceisincreasinglymovingtowardsahigherlevelof localcompetence,agreaterlevelof locally-stockedspareparts,andanexpandedlogisticsplanningsystem.Overallthecompanyismovingclosertothecustomer,cuttingdelaysandimprovingresponsetimestocallsforassistance.(In-depth,Autumn2000:5)

Indeed,mostglobalcompaniesareunderpressureto‘thinkglobally,andactlocally’(Ger1999:75).Theinterestingaspectofsuchastrategyishowitisconstrued,negotiatedandtranslated,thatis,howthishybridisworkedoutinpractice.

Fromamanagerialpointofview,akeystrategicobjectivewastointegratethedifferentproducersinordertoconstruct‘one’RRM.Stillstrugglingtosmoothoutthewrinkles,nottosaydistrustormutualignorance,betweentheformerproductionunitsandbrands,customerfacingwasintimatelytiedupwithpresentingamoreuniform,non-fragmentedandintegratedimagetotheoutsideworld.Inreality,thetaskofcoordinatingthecontactswiththecustomersinRRMhasbeendelegatedtoaso-called‘accountmanager’.TheintentionwasthattheaccountmanagerwouldestablishaseamlesslinkbetweenthecustomersandthewholerangeofRRM’sproductsandservices.Paralleltothis,thecompanyalsoswitchedfromaproduct-basedorganizationtoamarketsegment-basedorganization,byorganizingitsactivitiesaccordingtofourdifferentmarketsegments,eachresponsibleformarketingthewholerangeofproductsinitssegment.Thestrategiceffectofthisisthattheinitiativeandresourcesaretakenfromthefactory’sstaff ofengineersandtheirfocusontechnicalsolutions,andtransferredtotheaccountmanagers,asexplainedbyaGSNrepresentative:

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GSNcrossesallboundaries;youcouldalmostsaythatwe’renotinterestedinthesegments,we’renotinterestedinwhichprincipal[supplier,Scandinavianbased]issupplyingtheequipment.Ourfocusisonthecustomer.Thecustomerhasaproduct,andhehasaproblemwhereheis.Weprovidetheskills,weliaisewiththeprincipalstogettheinformationrequiredandthesparepartsandtheservicesupportnecessarytosupportourcustomer.

Hence,oneelement in theRRM’s strategywas to tie thedifferentproducerstogether.Forourpurposes,however,amorerelevantaspectoftheintentiontogetcloseisrelatedtothetransformation–perceivedorforreal–oftheverybusinessofRRM.ScholarshaveforsometimepointedoutthedeficienciesofFordistidealsofproductionandthecorrespondingimportanceofflexibility,responsivenessanddecreasingverticalintegration(PioreandSabel1984;Womack1990).Alongsideandbeyondthis,RRMisinthemidstofatransformationwherebytheirservices(repair,maintenanceandsparepartdeliveryandinstallation)aregrowinginimportance.Asonelocalrepresentative,half-jokingly,half-seriously,explained:

Gilletterealizedalongtimeagothattheywereonlygoingtosellyouonerazorevery5yearsorso.Butonceamonththeywouldsellyounewblades[saying]:‘let’sgiveawaytherazors,andlet’schargeanarmandalegforaveryspecializedlittlebladethatyoucan’tbuyanywhereelse’…It’sananalogythatfitshere;it’sthesameapproach…basicallyaphilosophywhereyouwantthecustomeroverthefulllifetimeoftheproduct…Weshouldabsolutelybetakingthesameapproach...Let’sbundleitalltogether:maintenance,finance,insurance,thelot.

Thisemphasison(locallyembedded)servicedeliverygivesthe‘closeness’tothecustomeradifferentmeaning.Totheextentthatserviceworkisincreasing, the importance of local presence, local competence andembeddednessisgrowing.AsaseniormanagerofGSNpointsout:1‘Localpresenceisthecompany’sgreatestdifferentiatorinthemarket.Thefactthatwehavethelargestgroundforceinthemarketisoneofourkeystrategicadvantages…akeyobjectiveisto…buildlocalcustomerrelationships’.Similarly,aspointedoutintheinformationmaterialofRRM:

Withofficesin33countries,Rolls-Royceoffersanunequalledglobalmarinesupportcapability.Thisinternationalpresenceisstrengthenedbyateamofmorethan500personnel,ofwhomover300areserviceengineers.Suchanorganisationisuniqueintheworldtoday…[RRM’s]strategyistogetclosertothecustomer,beginningwithacommitmenttoembracelocallanguagesandcultureswhereverpractical.(In-depth,Autumn2000:5,emphasisadded)

Foracompanywiththeprevailingidentityverymuchtiedupwithproduction-orientedimagesandsymbols,clearlythistransformationisnotwithout

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friction.Pridingthemselvesin,andidentifyingwith,‘manufacturingtheRolls-Royceofpropellers’,itinvolvesissuesofpoweraswellasidentity.

What, then,does the localembeddednessamount toandhow is itperformed(AminandThrift1994;Ger1999)?Leidner(1993)discusseshowservicework,whendeliveredglobally,seekstosuperimposescriptedanduniformprocedureswithcloser,morepersonalizedfeatures.Onelocalrepresentativeexplains:

EverycustomerisdifferentandasIsaidbefore,it’sknowingwhentopushtowardsthecustomer,andknowingwhennotto,whentofallback.Youhavetobeabletorelatetopeoplefromalldifferentlevelsintheclientcompanyandthroughthatdevelopasortofsenseofora‘feel’forthecustomer.

Thispersonalfeelingisrequiredas‘customersincreasinglydemandthat[servicework]is“authentic”,[hence]cannoteasilybestandardised’(Jonesetal.1998:1049).

Theclosenessargumentisdrivenbytwoagendas.Itisinpartavehicleforrealizingthemergerbypresentingauniformfrontstagethatpurgestheformerdistinctionsbetweenthedifferentsuppliers(andtheirnetworks).Simultaneouslythereisanemphasisonthelocallyembedded,‘authentic’relationshipswiththecustomers.

GlobaluniformityandlocalautonomyTheemphasisonclosenessandserviceis,atleastonanespousedlevel,accomplishedbyadelegationor‘empowerment’ofthelocalrepresentativesasvoicedbyaseniorRRMmanager:2

Inotherwords,weareempoweringthelocal[representative]…torepresenttheentirecompany.Previously,therewasthepropellermanorthewaterjetmanworkingfortheUlsteinpropellernetwork,theBergennetwork,theKamewanetwork,andsoon.Nowtheaccountmanagercan‘own’thecustomerrelationshipandrepresenttheentiregroupinsteadofbeingrestrictedtopromotingonetypeofproduct.(emphasisadded)

Theliteratureonempowermentis,ofcourse,systematicallyambiguousastowhetherthisisduetofunctionalistreasons,asillustratedbyaseniorGSNmanager:3 ‘Theestablishmentof suchacapability [localserviceandsalesthroughGSN]isindirectresponsetocustomerrequests:theywanttobeabletotalktopersonnelintheirtimezone,andnothavetowaitdayswhilespecialistsareflowninfromEuropean-basedfactories’,orwhetherthisindeedimpliesempowermentina‘true’sense(CleggandHardy1996).Despitethedangersofslippingintoanessentialistvocabulary,

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separating‘true’from‘façade’versions,claimsaboutempowermentneedtobeapproachedwithcriticalawareness(Knightsetal.2001).

Akey,regulatinganddiscipliningvehicleinthisistheformal,contractualagreementbetweenthesuppliers(theproductionsiteslargelylocatedat‘home’inScandinavia)andthegloballydistributedlocalrepresentativesofGSN(‘away’across33countries).Theagreementdefineshowcooperationbetweenlocalrepresentativesof thecompany(withintheGSN)andthesuppliersoperates;describesthedutiesandobligationsthattherespectivepartieshavetowardsoneanother;regulatesresponsibilities,standardsforpaymentsandprocedures in theeventof disputesbetween them;andregulatestheactivitiesof localrepresentativesbyspecifyingtheirresponsibilitytoinformandobtainacceptancefromthesuppliers,abouthowtomarketproducts,andwhatinformationtodistributetocustomers.Morespecifically,withtheagreement,thesuppliersretaincontroloverallcontracts,andtheresponsibilityfornegotiatingandacceptingthem,andforwardingofferstocustomers,directorvialocalrepresentatives.

Thesuppliersspecifyandregulate,onafairlydetailedlevel,whatthelocalrepresentativescandowithregardtomarketingandsalesofnewequipment.Theserviceworkismoreautonomouslyorganized.Nevertheless,thelocalrepresentativesmayneithermanufacturenorpurchasesparepartsfromanyoneotherthanthesuppliers,exceptwiththeapprovalofthelatter.4Themasteragreementisakeydisembeddingmechanism(Giddens1990:18).

Inasmuchasitispurgedofinterpersonalrelations,theagreementisphrasedentirelyintermsofspecifyingroles,obligationsandduties.Asaconsequenceofthis,thecontrolanddistributionofproductknowledgeandinformationisstrictlymaintainedbythesuppliers,leadingtofrictionandfrustrationatthelocalsites,asoneGSNrepresentativedeclared:

Theproductionsitesarereluctanttosharetheinformationwithus,evenwhenthishadmadelifealoteasierforus–andforthem.Thisishowit’salwaysbeen.Someofthesitesaregoodatsendingupdatedinformationwhilethis[pointingonthescreen]isalistfrom1998.…Internallyattheproductionsitestheyhaveelectronicaccesstoallinformation,alsothedrawings.Butwearecutoff fromthis.

Theagreementproduces–largelyunintentionally(Giddens1990;Beck1994)–effectsthatareperceivedastheoppositeof thoseembeddedintheidealsof ‘customerfacing’.Thisdisembeddingdoesnotimplythatworkandworkroutinesdisintegrate.Itisratherthecasethatre-embeddingtakestheformofadditional,often‘invisible’workthatservestofilltheglitchesandbridgethegaps(BowkerandStar1999).Thedisembeddednatureoftheworkatthelocalsites,withoutcloselinkswith‘home’,givesrisetoanextensivesetofwork-aroundstocollectnecessaryinformation(Gasser1986)asoneGSNrepresentativeexplains,referringtohisICT

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system:‘Nowwehavetogobackandforthcontinually,bothtogettherightarticlenumbersandtherightpartsprices.Toworkaroundtheproblems,wemakeuseofoldorderstolookupprices,possiblyupdatingthesefromourprivatearchives’.

Thus, the detailed controlling and regulation of local autonomy,intended toensurehigh-quality service, risksproducing theoppositeeffect.Thisunderscoresanimportantanddarkeraspectofthediscourseonglobalization(Beck1994:9),wherebypursuingcontrol–mayinitself producetheoppositeeffect.Asthemeshingandinterleavingoflocalandglobalactionincrease,traditionalmeansofcontrolarecountereffectiveinsofarastheside-effectsareasimportantastheintendedones(Giddens1990;Beck1994;Ciborra2000).AsoneoftheGSNrepresentativescomplained,attemptsatcustomerfacingseemtoproducetheoppositeeffects:‘RRMhasdecidedthatGSNshouldbuyeverythingthroughtheproductionunits.Thiscausesproblems,especiallywhenthecustomerknowsthattheycanbuyitlocallyatabetterprice.Isthatcustomerfocus?!It’sdisastrousforourreputation’.ThiswasreiteratedbyanotherGSNsparepartsmanager:

Iamforcedtoordersparepartsfromthefactory.Evenwhenitcomestopartsthattheydon’tproducethere.Forinstanceabearing:thecustomerneedsthisandIsayOK,Icangetthatanditwillcostyou,forexample,$500.Butthecustomerknowshecangetthispartfromalocalsupplierforhalftheprice!AndIwillneversellanotherpartlikethatagain...andwhat’sthevalueofourorganization?Thevalueisourreputation.

Thereasonforwithholdingthisinformationfromthelocalrepresentatives,andforthecentralizedcontrolofspareparts,isbecausethesuppliershavetomaintaincontroloverthesethings,aslaidoutintheagreement.Thesupplierswanttopreventsensitive informationfromgettingout,andthereforetheyrestrictaccesstocentralICTresources.Theyneedtoensurethatthelocalrepresentativesfollowstandardsonpricesandwhatsparepartstouseinequipmentsuppliedbythecompany.

Thedesign,productionandservicingof high-qualityequipmentsuchasthatintheRRMportfolioinvariablyinvolveasubstantialamountofhighlycompetentwork.Theboomingliteratureonknowledge-intensivework,despiteitsdistinctlyrhetoricalslant(Alvesson2001),reinforcesmanyoftheargumentsaboutthelocal,contextualandsituatednatureofservicework(Blackler1995).InhercomparativestudyofknowledgeworkinaBritishandJapaneseengineeringcompany,Lam(1997)demonstratesthelocally(culturally)embeddedcharacterof theworkroutinesintheBritishandJapaneseteams.Similarly,thelocallyembeddedknowledgeaboutthemarketandthecustomerswaschallengedwhenRolls-Royceinitiallyattemptedtopromotetheirtraditionalmodeof operating.Yet,

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theinputoftheBritishRolls-Royceworkroutinesislargelysidelined,asaseniorRRMmanagerexplains:‘theyshowupintiesandblacksuitsdemonstratingatotallackofinsightintothebusiness…accustomedtomilitaryprojectswithtime-spansof decadesandenormousamountsofbureaucraticdocumentationoverhead,theworkroutinesofRolls-Royceareoflittlevaluetous’.AsarguedbyJonesetal.(1998),therecruitmentpolicyistypicallytheacidtestforassessingthecommitmentof globalorganizationstoculturalheterogeneity.Thepatterntheydescribe,whereemployeesfromthe‘home’countryarefavoured,isalsoevidentinRRM.Thepivotalroleof theformer,Norwegian-basedUlsteingroupcausedsubstantialfrustrationwithintheGSNasseveralintervieweescomplainedabout‘Norwegiansshowingupeverywhere’.Thiswasreinforced,oneGSNrepresentativeexplained,bythefactthatit‘comestogetherwithtalkaboutScandinavianegalitarism’.

Partofthemajorreorganizationisalsotoenablemoresynergiesbetweencompatibleandpossibleconnectedproductsandservices.Onsalesandproductionthisispursuedbyconfiguringproductsintopackagesor‘totalsolutions’toparaphraseRRM’sstrategy.Butthisglobalambitionalsoconcernsthewaycustomerswillbeequipped,andthusaffectstheworkoflocalservicepersonnel:

You’retalkingabouttheimpossiblehere;thesearethesillyguysinanofficewhosay‘well,let’sthrowtheseguystogether’.Itdoesn’tworkthatway.Wehavegot,let’ssay,about30differentproducts,Ulsteinhasgotjustasmany…Andyoucan’tmixyourproductswithsomebodyelse’sproducts,becausethatweakenshisposition.Insteadofmakinghimstrong,youarespreadinghisexpertisetoothinlyacrossmanyproducts.

Finally,theformalagreementalsostructuresthedivisionof labourbetweenthelocalsalespersonnel(accountmanagers),andthesalesandmarketingrepresentativeoftheheadofficeattheproductionsites.Afurthernarrowingofthe‘empowerment’oflocalrepresentativesisduetosplittingtheactualpre-salesworkandthefinalresponsibilityforcontracts.Thelocalsmustinthisfinalphase‘handover’thecustomertotheheadofficerepresentative–disembeddingtherelationship–andpotentiallyupsettingthecustomers.AsaUK-basedGSNrepresentativeexplains:

AlotofUKcustomerswanttodealwiththeUKcompany.Thefactthattheproductsaremadesomewhereelseisnotreallyrelevant;theystillwouldliketodealwiththeUKcompany–withthethoughtthatif anythinggoeswrong,it’sRolls-RoyceUKthatisresponsible.

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Thisalsohasamorepracticalside,sincetherelationshipbetweenlocalrepresentativesandcustomersevolvesovertimeinaproject,andtherebymakesitdifficultforthecustomerstodealwiththesuppliersinthefinalphaseofaproject:

Thishappenedrecently,onacoupleofprojects,wehaddonealltheworkwiththecompany,andtheycometoplacetheorder,andwesay‘ohno,don’tsendittous,sendittoSwedenorsomething’.Andtheygo‘butwecan’tdothat,we’vedealtwithyou,allourcorrespondenceiswithyou,andyou’retellingmeIhavegottodealwithsomebodyelse?’.

Also,theswitchimpliesthatcustomerswillhavetocommunicatewithvariousunitsandpeople,sinceeachofthesupplierswillhavetomaketheirowncontractsontheequipmenttheyprovide:

Andwe’vegotaUKshipyard.Theywanttobuysteeringgearforoneproject,andapropellerforanotherproject.Theydon’twanttogotoRRNorwayforone,andRRSwedenforanother.Theywanttodealwithonecompany,notthewholerange.Andtheycometousthen,if they’vegotaproblem;whoisgoingtosortitout?AndIthinkfromacustomer’spointofview,thismakesalotofsense.Ofcourse,thatshouldbewhywe’rehere.Wearethelocaloffice.

Amoregeneralwayof viewingthisproblemisthatlocalcontactwithcustomerspresupposesadeepinterestandknowledgeofwhotheyare,ofhowtocommunicateandapproachthem,andlastbutnotleast,whentocontactthem.AsoneGSNrepresentativeexplains:

Yougetasortofafeelforwhenthecustomerwouldlikeavisit…Everycustomerisdifferent,Imeanweevenfindsomeof theshipyardsareonlytoopleasedforustohelpwithdesignandthatsortofthingbecausetheyhaven’tgottheirowndesign,whereasothershipyardshavegotadesigndepartmentandarenotinterestedinthataspectofwhatwecansell.Soyouhavetotreateachcustomer,youknow,havetogivethemwhattheywant,andsometimeswehavetosaytotheprincipals[productionsites,inScandinavia]:‘youknow,holdbackalittlebit,thiscustomerdoesn’tatthisstagewantthataspect’.

Thekey,regulatorydevice,theagreementbetweenGSNandthesuppliers,isadisembeddingmechanismthatalsoproduceseffectsexactlyoppositetothoseintended.Thelackof localappropriationof theagreementbydrawingonlocalresourcesimplies,attimes,anythingbutclosenesstothecustomer.Thelocallyembeddedknowledgeaboutacquiringa‘feel’forthecustomertendstobecomeinvisibleanddownplayed(BowkerandStar1999).Althoughtheformalagreementsandprescriptsaretoolsthecompanyusestoregulatethewayworkisdonebylocalrepresentativesandthesuppliers,therewillstillbesituationswherelocalshavetomakedecisionsbasedon

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theirownexperiencesandknowledge.Thelocalrepresentatives,embeddedintheirlocalcontexts,willhavecompetenceandexperiencewhichmakesthemabletoadapttothelocalcustomersandtheirspecificneedsinwaysthatcould,aswehaveseen,bedifferentfromthemoregloballystandardizeddesignsoftheheadoffice.

Trustand(ICT-)mediatedcommunicationAtheart,RRM’sreorganizationeffortsinvolvetransformationalongtwodimensions.First,itnecessarilyinvolveserodingthepreviousboundariesdefinedbytheproductionsitestoemergeasa‘seamlesslyintegrated’collectiveforproduction.Inshort,theinternalorganizationshouldmoveawayfromfunctionalunitstoamoreprocess-orientedone.Second,andthefocusofthischapter,itimpliesviewingthewholevaluechain–production,logistics,salesandservice–intotalratherthanasdisturbinglyindependententitieswithboundedresponsibilityandaccountability.Anessentialmechanisminthis,then,istotieinandintegratetheactivities‘abroad’intheGSNwiththe(production)activities‘athome’.Thisimpliescarvingoutrolesandresponsibilities,butmoreimportantly,itrequiresestablishingasenseoftrustthatfacilitatesthiscommunicationandcooperation.Establishing,maintainingandexpandingthetrustbetweenGSNand‘home’actsasakeyelementinre-embeddingthisrelationship.Asoutlinedearlier,weemployaprocess-orientedperspectivethatunderscorestheperformativenatureoftheconstructionoftrust.

Theconstructionofabstracttrustrelationsbetweenthelocalsitesandtheheadofficeistiedtohowtheactorsperceivetheprocess.Inourcase,ongoingandprovisionalaspectsoftrustaredisplayedintheneedforthelocalrepresentativestobereassuredandreaffirmed.Thisillustrateshowpowerissuesintertwinewithestablishingtrust(Knightsetal.2001).Beingpartof,andnotexcludedfrom,thewholeofthecompanyisofcourseonewaytoensurethattherelationisimportantbothforthe(Scandinavian)‘home’office,andthe‘local’officeabroad.MuchofthecommunicationbetweenhomeandtheGSNisaboutofferinginformation,respondingtoinquiriesfromtheGSNonprices,availabilityofpartsanddeliverytime.Oneoftheperceivedproblemsatthelocallevelisthesignificanceofthetimespanfromwheninquiriesaresentuntilananswerisreceived,asoneintervieweeillustrates:

Therewasthisoilrigoff thecoastof Texas,andwehaddelivered8rotatingazimuththrusters,eachof40tons.Theywerepreparedandoverhauledatthefactoryandsentover.Amonthago,wegotamessagethatthereweresomeproblems.Isentalettertotheprincipalsdescribingwhattheproblemswere,theneedforequipment,andthepriceofhavingthejobdone.Wealsoneededdrawingsandtechnicalspecificationstosortthingsoutfortheserviceengineer.

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Ittook4weekstogetananswer!If Ihadbeenalocalguy,thiswouldn’thappen.Theyhavenorespectforthethingswe’retryingtodo,andIhaveno-oneupinthesystemtogoto.Ithitsablackhole!

Building on Harold Garfinkel, process-based trust focus on howexpectationsareformedovertimebytheaccumulatedtrustexperiences(Lane1998:11).Expectationsdiffer inthewaytheyassumeunityofexpectationeithertobepresentandtakenforgranted,or,alternatively,tohavetobeproduced.Process-basedtrustentailstheincrementalprocessofbuildingtrustthroughthegradualaccumulationofeitherdirectorindirectknowledgeof thesocialrelationpresent.Typically,thewaythesetrustrelationscanbedevelopedandmaintained,isthroughvariousformsoffeedbackamongtheparticipants,ortowhatextenttheygiveconfirmationoneachother’sinitiatives,orapprovalsofthewaytheworkisconducted.Intheepisodequotedabove,thelackoffeedback(‘ithitsablackhole’)underminesthepossibilityofbuildingandmaintainingtrustrelations.Theexperiencedsilence(‘blackhole’)giveslittlereassuranceofthecommitmentfromheadoffice.Confirmationfrom‘home’,evenwithoutafully-fledgedanswertothequery,functionsreassuringlyandsoothingly,re-establishingthetiesthatcouldotherwisebedisembedded.

This lackof confirmationwasnotaunique episode, asoneGSNrepresentativeexplains:

WhenIsendaninquirytothefactoryforsomepartsandprices,theysometimessendmeaconfirmation,butmanyofthemdon’t,andthenIamnotsurewhetherthey’vegotitornot,if it’slost,disappearedorsomething.Ievengetsomeanswersthatit’sthefirsttimethey’veseenit.Itwouldbeatremendousbenefitiftheycouldjusttellmethey’vegotit,andif theycouldkeepmeinformedoftheprogressastowhenIcouldgetaproperanswer.InsteadIhavetocallupeverynowandthen,pushingsothatIcanhavesomethingtofeedtothecustomers.

Thelocalrepresentativesexperiencethelackoffeedbackthroughlongresponsetimeswithoutanyperiodicupdates.Further,thelackoftechnicaldata,handbooks,diagramsandsoonintensifiesthedisembeddingoflocalsfromtheirheadofficeinmattersofknowledgeandtheabilitytoinfluencetheirownwork.Anemployeeworkingwithorderingandhandlingsparepartscommented:

Becausewehavenodiagramsorhandbooks,wedon’tknowwhatwe’reoffering.Andit’sabigproblem.Sometimeswecanhaveahandbook,andwecanlookatthediagramsandsay‘ohyeah,thatO-ringgoesthere’,butwewouldn’tnecessarilyknowwheretheitemsshouldgo.If thecustomerfindsoutthatheisprobablyacoupleofO-ringsshort,wewouldn’tknow.

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SinceRRMmaintainswhatwemaycall‘double’functionsonbothsalesandservice,inthesensethatbothsuppliersandlocalrepresentativesarecapableof doingthework,thiscausessituationswheretheymightcrosseachother’s‘borders’,asthefollowingstatementfromoneGSNrepresentativeillustrates:

Fromtimetotime,thesupplierssendpeopleovertoourterritorythatwedon’tknowaboutbeforethey’reactuallyhere,andthisisnotgoodforus,anditdoesn’tlookgoodinfrontof thecustomers.Anditisnotagoodwayof usingourresources.Someonecansuddenlycomeintoourofficehereandaskforhelpwithsomething,withoutusknowingthattheywerehere.

Similarly,anotherGSNrepresentativecommented:

When[theafter-sales]wasidentifiedasthebiggestcashgenerator,everyonewantedtobeengagedintheafter-sales.Thereisnoclearorganizationtoit.Forexample:wehavepeoplewhocomefromFinlandtooursalesterritorytodealintheafter-salesmarket,andwehavenoideawhatthey’redoing.

Thenegotiatedborderbetweenlocalrepresentativesandthesuppliersregardingthesedoublefunctions,threatenstodamageordisruptanypotentialestablishmentandmaintenanceof trustrelations,andtherebymakestheempoweringof thelocalsadifficultambitiontofulfil.Thisunderscoresthefragileaspectoftrust,makingitdifficulttomaintain,buteasytodisturb.Thelocalsexpresstheirinsecuritytowardsthesuppliers’motivesandtheirpracticeofbypassingthelocals.

RRM’sstrategyofgettingclosertothecustomeris–bothbyempoweringthelocalrepresentativesandthroughimprovedinternalcoordination–tosecuresalesacrossthewholeproductrangeof thecompany.Butthisclasheswithestablishedroutinesforensuringthesuppliers’controloverhowthelocalrepresentativesdotheirwork.Thetensionsbetweentheneedforuniformityinaglobalproduct,andservicerangeandlocalautonomysurfaceasproblemsofsharinginformation,differentmodesoftrust/distrustrelations,andfinallythroughnegotiatedbordersconcerningthewaythecompanycoordinatesthedoublefunctionsof bothsuppliersandlocalrepresentativesonsalesandservices.

Theissueof trustalsoconcernsthewayinwhichtheseactorsvieweachother’sknowledgeandcompetence.Giventhatidentityformationisincreasinglyinfluencedbyprofessionaltrajectories(Giddens1990;Castells2001),thisunderscoreshowtrustislinkedtoexistentialanxiety.Lackoftrustinlocalcompetencethustranslatesintoanissueofidentity.AsoneGSNrepresentativestates:

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Onceabrandnewmanwassettoworkwithtwoseniorserviceengineers[fromthesuppliers].Itwasamajoroverhaulandtheseniorstookthedayshift,andlefthimaloneonthenightshift,tosupervisethenightwork.Andhemadeamistake,anddamagedabearing,andtheysaid:‘Ahaa!Thisiswhatwe’vebeentalkingabout;theydon’tknowwhatthey’redoinghere.TheseAmericansdon’tknowwhatthey’redoing,they’resledgehammermechanics!’TheywereprejudicedagainstAmericans.

Thenewlydesignedagreement,describedearlier,specifiesthatwarrantyworkistheresponsibilityof thesuppliers.However,thecoordinationbetweenlocalrepresentativesandsuppliersisnotastraightforwardmatter,andhasbeenasourceofinsecurityanddistrust.Further,withregardtomorecomplexcasesconcerningwarrantyclaims,aGSNrepresentativecomplainsthatthesuppliersquestionthelocalcompetence:

Whenacustomerclaimsawarrantycase,thisalwayshappensafterhavingreceivedaninvoice,withaservicereport.Theclaimfromthecustomerisforwardedtothesupplier,butinnearlyallcasesthesearerejected.Theydon’tacknowledgeourcompetenceortheserviceman’scompetence,andblamethecustomer.Wegettheimpressionthatnomatterwhat,ourreportsdon’tmatter.Thesuppliersseeusasactingonbehalf ofthecustomer.It’sveryfrustrating!

Thisinsecuritystemsfromthewaythelocal,GSNrepresentativesgetcaughtinthemiddlebetweenthecustomersandthesuppliers.Theactionsandreactionsofthesuppliersonwarrantyclaimsfromcustomersareinterpretedasmoreorlessopendistrustandaquestioningoftheir(thelocals)integrity,loyaltyandcompetence.

Thelinkbetweentrustandidentityformationaccountsforthedeeplyemotionalaspects(Lane1998).DisrespectinglocalcompetenceintheGSNnetworkbecomesnotmerelyanissueofadditionalworkandunnecessaryhassles(asdescribedabove;seealsoGasser1986).Moreimportantly,itunderminesthelocalGSNrepresentatives’identitywithinRRMbytransformingitintoaquestionofwhethertheyarepartofthefamilyornot.Or,asexpressedbyonelocalGSNrepresentative,whethertheyare‘real’childrenoronly‘stepchildren’:

Igotthefeelingthattheyfeellike,andIhatetosaythis,thatwewouldmisuseit.AndIthereforefeellike,youknow,Ihatetosay,feellikeastepchild,butinthatsensebasicallyIhavebeenherefor10years,andIdon’tthinkIhavemisusedtoomuchofanyinformation.

Confronted with this, management at the suppliers and head officereplied:‘Well,they’reright.Toourknowledgeandinourexperience,localrepresentativeshaveincasesactedmoreasrepresentativesofthecustomers

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thanthecompany’.Theyalsoaddthat‘it’sajungleoutthere,that’sawell-knownfactinthisbusiness’,socustomersuseconfidentialinformationfromsuppliersinagametowinfavourabledeals.Thecultureofthisbusinessdoesnotinvitetrust,unlessthereisthedangerofbecomingvulnerable.

Luhmann(1979)viewstrustanddistrustasmutualandconnectedqualities.Theconnectionbetweenthemexplainsthefragilityandhighlyemotionalreactionswhentrustisbetrayed.Trustisalearnedexperience,inaprocessofgeneralizingfromisolatedexperiences,closelytiedupwithidentityformation(‘stepchildren’versus‘real’children).Thisisbecausethechoiceoftrustingordistrustingisaninnerprocessoftheindividual.Onefalsehoodmaythereforecausegreatemotionalintensityandunderminetrustinthefuture(McAllister1995;Lane1998).Inthisway,trustmaybetransformedintodistrust,andtherefore,topreventthisfromhappening,trustmustbesustainedthroughappropriateactions.Thereactionsandfrustrationsofthelocalrepresentativescanalsobeinterpretedasreactionstomore fundamentalattackson theirpersonal identityor characteraccordingtothemoreindividualized‘responsibility’of reflexiveidentityconstruction(Giddens1990).

ConclusionWehaveanalysedthedilemmasofaglobalcompanystrugglingtoforgehybridsolutions,combiningtheneedforcontrolanduniformitywhileatthesametimerespondingtotheincreasingpressureformorelocallyembeddedcustomerfocusinservicework.Basedonanempiricalanalysisof howlocalsalesandserviceofficesnegotiateandperceivethe‘gap’betweenthesedemands,wearguethatthisdilemmagoesbeyondquestionsofmanagerialmodelsandorganizationalstructures.

Buildingonthetensionsinthe‘latemodernity’of Giddens,betweendisembeddingmechanismsandre-embeddinglocalactions,theissueofabstracttrustbecomessalientinouranalysis.Theroleof ICT-mediatedcommunicationisdeeplyimplicatedhere.Wearguethatthenotionoftrustinpreviousresearchonglobalorganizationshashadatendencytoneglecttheimportanceofemotionalaspectsofabstracttrust,andtheconnectionbetweenidentityformationsandconstructionsinlatemodernityontheonehand,andtrustrelationsontheother.

Weproposethreedistinctivecharacteristicsof abstracttrustrelationswithinglobalorganizations:(i)theprocess-based,ongoingperspectiveemphasizingthedynamicneedtoreassureandreaffirmtrustrelations,dueto(ii)thefragileaspectsoftrustwhichmakesithardtoestablishandmaintain,buteasytodisturb,andfinally(iii)theemotionalaspectsoftrust,connectingtrusttothereflexive‘project’of self-identityconstructionsinlatemodernity.

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AcknowledgementWearegratefultoMichaelBarratt,StefanHoffmann,MatthewJones,MortenLevin,KnutH.Rolland,SusanScott,KnutH.SørensenandGeoffWalshamforcommentsonearlierversionsofourchapter.WehavealsobenefitedfromcommentsfromthereviewersoftheHandbook.Thisworkhasinpartbeensponsoredbytheproject‘BusinessProspects’NTNU.

Notes1. InterviewinMarineInfo,November1999:6.2. InterviewinMarineInfo,November1999:6.3. InterviewinIn-depth,Spring2001:17.4. Theexactdetailsof thisagreement,whichhavebeencontinuouslynegotiatied,are

confidential,soweareobligedtodescribeitinfairlygeneralterms.Themostrecentversion,stemmingfromspring2001,spellsouttheautonomyofthelocalsites,togetherwithregulationsconcerninginternalpricingandthesettlingofdisputes.

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