Business diplomacy in practice :a grounded theory study in management among professional diplomats : a dissertation presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Management at Massey University, Albany, Auckland, New Zealand
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Date
2018
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Massey University
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Abstract
Background: How can diplomacy contribute to the success of businesses and to
better management and business practices in today’s complex and interconnected
world? Diplomacy has been associated with business and commercial activities
for thousands of years. However, due to the modern events of globalisation and
increased geopolitical risks facing businesses, management scholars have been
looking at the concept of diplomacy and have tried to apply it to management and
organisational settings.
Aims and Significance: Despite the growing attention to business diplomacy, the
literature remains limited and lacks clear empirical research that provides a
practical understanding and conceptualisation of this subject. Therefore, this study
looks at diplomacy from managers’ and diplomats’ perspectives in relation to
business and management. Diplomacy continues to evolve in its practices, skills,
and policies, and so do today's businesses. Investigating the range of professional
diplomats’ responsibilities and knowledge could give managers and management
researchers an understanding of the intricate complexity of the diplomat's task,
which will enhance their own work. This research aims to address this issue by
answering the question: How do professional diplomats, in businesses and
governments, understand business diplomacy? And what are the key elements
associated with business diplomacy in practice? The research objective is to
examine the role of diplomacy in business and management and to investigate its
related core elements that can help businesses and managers be successful in
today’s business environment.
Method: To address this issue, an interpretative-exploratory study was conducted
using the Straussian grounded theory approach. Using semi-structured interviews
as the data collection method, twenty-one official diplomats, CEOs,
businesspeople, and managers from both the private and public sectors were
interviewed. Participants were asked to describe their understanding of diplomacy
and what constitutes its basic elements and practice.
Findings: The study found that business diplomacy is a process of multiple
integrated qualities. In particular, the findings indicate that business diplomacy is
the capability to professionally and systematically manage and influence multiple
stakeholders, as well as the operating environment, to advance business interests
and to create favourable conditions for the firm. Consequently, the theory of
Multi-Stakeholder Managing and Influencing (MSMI) in business diplomacy was
developed that offers new insights into the area. MSMI suggests that business
diplomacy is achieved through the integration of multiple qualities, namely:
interaction and engagement, core knowledge competencies (CKC), multiperspective
consideration, and power-authority building (PAB). MSMI also
suggests that these qualities are closely interrelated and co-dependent on each
other.
Conclusions: The findings of this study contribute to our developing a scholarly
understanding of business diplomacy, its meaning in practice, and what
constitutes its core elements. As one of the earliest empirical studies in business
diplomacy, this study broadens and deepens our views by offering new insights
and theory. The findings contribute theoretically and practicably to the body of
knowledge by suggesting that business diplomacy constitutes multiple qualities, is
recognised and valued by participants, and is found to create long-term value for
businesses. This has implications for businesses and universities as it encourages
them to incorporate business diplomacy as a strategic tool to be learned and
practiced at the organisational level. This study serves as a starting point for
further empirical research in business diplomacy, and future researchers are
encouraged to carry out larger-scale studies on different populations and
industries to replicate and validate the theory.
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Keywords
Management, Diplomacy, Diplomatic and consular service, Grounded theory