1. Globalization to Glocalization: A Conceptual Analysis
Mohammad Shamsuddoha
Assistant Professor, Department of Marketing Studies and International marketing
University of Chittagong
2. Globalization to Glocalization: A Conceptual A nalysis
Abstract
This paper examines the evolution and transformation of the concept of globalization
to glocalization. The paper will also trace the history and the development of the concept of
“glocalization”, which originated in Japan as a popular business strategy. The paper
examine in broad terms concepts, theories and principles of glocalization in business
perspectives. The paper wants to focus on the epistemological analysis of the globalization
and glocalization themes. In Economic Sciences, it is often difficult to trace the origin of
concepts: these concepts are often products of collective endeavors. Inside these processes,
from the “post-globalization era”, a new ethical feeling is born to measure the corporate
performances that are business, social and ethical performances: these processes will require
new accounting instruments and new accounting professional profiles. The article also
provides a discussion on the importance of well-defined concepts and approaches used by
scholars and by practitioners in various contexts. It is troublesome when the use of a concept
or an approach is ambiguous and confusing. The discussion focuses on and demonstrates
through, the globalization of business activities and the term ‘global strategy’. The
widespread use of popular jargon cannot cover the fact that a genuine or true global strategy
approach appears to be a managerial viewpoint. The terms “glocal strategy” and the
‘glocalization ’ of business activities are introduced to enhance the accuracy of the present
usage by scholars and by practitioners of the term global strategy and the phenomenon often
described as the globalization of business activities.
Keywords: Globalization, Glocalization, Localization
Introduction
A combination of the words "globalization" and "localization" used to describe a
product or service that is developed and distributed globally, but is also fashioned to
accommodate the user or consumer in a local market. This means that the product or service
tailored to conform to local laws, customs or consumer preferences. Products or services that
are effectively "glocalized" are, by definition, going to be of much greater interest to the end
user. Yahoo! is an example of a company that practices glocalization. It markets a portal that
is viewed worldwide and offers different versions of its website (and related services) for
different users. For example, it provides content and language variations in some 25 countries
3. including China, Russia and Canada. It also customizes content to appe al to individuals in
those locations. A number of both public and private companies currently practice
glocalization in an effort to build their customer bases and grow revenues
(http://feeds.investopedia.com).
It would be extremely difficult to identify who used the term “globalization” for the
first time. According to Malcolm Waters (1995) whose book titled Globalization is a fine
primer, Roland Robertson was one of the early users of the term. More recently, Roland
Robertson and Kathleen White edited Globalization: Critical Concepts in six volumes is a
tour de force, which present some of the most important essays on this subject. No matter
who coined it first, at the dawn of the 21st century globalization as a concept, as a slogan, as
a term is used more frequently than any other terms. In Singapore, from the inflow of foreign
capital, technology, workers or “foreign talents”, music, movies, popular culture, almost
everything has resonance with globalization. Globalization is a heroic process, globalization
is a sinister process, depending on which side of the debate one stands. Some tend to see
globalization as a brakeless train crushing everything in its path, others see benefit in getting
on board the train towards economic growth and modernization.
Objectives of the study
The research pursued the following objectives:
1. To examine the glocalization concepts in various aspects;
2. To confer the prerequisites , core value and policy matter for glocalization;
3. To identify the principles of globalization in the light of business challenges ;
Methodology of the Study
The study has covered various literatures on globalization, localization, glocalization
and internationalization of trade based on USA. UK and other developed countries like the
European Union countries. A Library research method (Archive) has been used in this study.
Different books, journals, periodicals and online papers have been observed by the researcher
to find out different issues in global business dimensions in this connection. Mostly
secondary data has been compiled in this study and this data has been collected from focused
countries’ literatures, textbooks, e -journals, government publications etc.
4. Evolution of the Concept Glocalization
According to the dictionary meaning, the term “glocal” and the process noun
“glocalization” are “formed by telescoping global and local to make a blend” (The Oxford
Dictionary of New Words, According to Wordspy, glocalization means, “the creation of
products or services intended for the global market, but customized to suit the local cultures.”
(http://www.wordspy.com/words). If one takes a long-term view of globalization, “locality”
or “local” itself is a consequence of globalization. Hardly, any cultures can be seen as
isolated or unconnected from the global processes. Robertson, one of the pioneers in the
study of globalization, did not view globalization as a recent phenomenon nor did he see it
because of modernization.
The globalization of business activities and the term global strategy emerged in the early
1980s. Levitt (1983, p. 92) is often considered as the first to recognize the trend towards
globalization and states that: Companies must learn to operate as if the world were one large
market ignoring superficial regional and national differenc es. In addition, he argues that the
companies that do not adapt to the new global realities will become victims of those that do.
Jeannet and Hennessey (1992) argue that there are various factors limiting the global strategy
approach and the globalization of business activities. For example, they refer to market
characteristics, industrial conditions, marketing institutions, and legal restrictions.
Robertson conceptualized globalization in the twentieth century as “the interpenetration
of the universalization of particularization and the particularization of universalism”
(Robertson, 1992:100 emphasis in the original). Khondker (1994) building on Robertson’s
framework argued that globalization or glocalization should be seen as an interdependent
process. “T he problem of simultaneous globalization of the local and the localization of
globality can be expressed as the twin processes of macro-localization and micro-
globalization. The idea of a society managed by the mechanism of the free and voluntary
trade, of an economic integration to a planetary level, is not born with our short experience of
globalization, which has been wasted for his greatest part in the 90s. Instead, this idea, takes
his origin from the classic economic thinking, as well as the effective economic integration,
based on market, was already advanced one hundred years ago, before undergoing a great
regression (Harold, 2001); other episode of economic integration of big areas, build on
different bases, broken by periods of de-globalization, ha ve taken place in the human history,
and it can demonstrate that this alternance is possible (Arrighi, 2000).
5. In the last years, we have known a new economic, political and cultural process, called
globalization, which is universally known like a new stage of capitalistic system, a new
capitalism (Simmonds et al., 2000; Sklair, 2001). The globalization is an economic
phenomenon, that conditions especially economic integrations, but it makes also problems for
many cultures around the world, because there is incompatibility between human
relationships and the extreme exploitation of resources and the maximization of the concept
of competitiveness on liberalized markets (Boyer et al., 1996).
The first view is the “clash of cultures” view expressed in terms of clash of the
civilizations by writers like Samuel Huntington. The second notion is best expressed in the
phrase of “McDonaldization” of the world (Ritzer, 2000). This view obviously suggests a
homogenized world, a world dominated by a single culture that erases differences of local
cultures. The third view is that of “hybridization” (or “synthesis”). Much of human evolution
of culture can be seen as exchanges, diffusion, etc. where cross-breeding, borrowing and
adjusting to the local needs and so on were very common (Khondker, 2004). Therefore, it is
possible to refer to a product as being internationalized if it has been developed to meet most
of the needs of an international community, but not customized to a specific region. The
customization to a specific region is called localization (Robertson J. C., 1999). Glocalization
(a neologism of globalization and localization) has emerged as the new standard in
reinforcing positive aspects of worldwide interaction, be it in textual translations, localized
marketing communication, socio -political considerations, etc. Its decorum is to serve a
negotiated process whereby local customer considerations are coalesced from the onset into
market offerings via bottom -up collaborative efforts. Cultural, lingual, political, religious and
ethnic affiliations are simultaneously researched and integrated into a unified holistic
solution. In this manner, the intended market is given a stake in the overall process and not
just the mere end result (Sassen, 2000). However, in the end what is needed is a set of
globally valid concepts that will help us examine processes of social transformation that is
inextricably connected with global transformation (Khondker, 1994; Castells, 1998; Wade,
1996). Defining globalization as transnational, transregional processes which affects a wide
number of local communities. Area studies scholars perhaps failed to recognize the
importance of global forces because they misconstrued the geography of cultural areas.
(http://www2.hawaii.edu).
6. Macro-localization involves expanding the boundaries locality as well as making some
local ideas, practices, institutions global. The rise of worldwide religious or ethnic revivalist
movements can be seen as examples of macro-localization. Microglobalization involves
incorporating certain global processes into the local setting. Consider social movements such
as the feminist movements or ecological movements or consider new production techniques
or marketing strategies, which emerge in a certain local context and over a period these
practices spread far beyond that locality into a larger spatial and historical arena. Consider
print industry or computer industry with a specific location of its emergence has now become
a global phenomena. Overcoming space is globalization. In this view of globalization,
globalization is glocalization. Glocalization, however, is radically changing that reality.
Increasingly those who leave can return home and maintain the ties of family and nationality
that used to characterize them. (http://www2.hawaii.edu/fredr/diacon).
Prerequisites for glocalization
Every concept has some fundamental prerequisites that assure its follower who follow
this concept for his own interest. According to glocal forum (www.Glocalforum.org), the
prerequisites for glocalization are as follows:-
1. Reform of traditional diplomacy
2. Peace and development
3. Centrality of cultural issues
4. Municipal governance
5. Resource management
6. Civil society and democratization
7. Public funds
8. Private resources
9. Financial mechanisms
10. Innovative sectors
11. Capacity building
Core Values in the Glocal World
As per The Christian Book Summaries, a new world brings with it new values. These
values both good and bad form new cultures. Here is a sample list.
1. Syncretism: pulling together the best ideas from a wide array of thoughts to formulate a
new ideology
7. 2. Hedonism: a belief that everything is relative; there are no absolutes
3. Pragmatism: placing value on what works, produces, and sells
4. Collaboration: many people working together in many networks to achieve common
objectives
For the moment, it may be worth considering a few actions carried out by the Glocal
Forum as part of an awareness-raising policy of, such as:
1. Advocacy of a glocal perspective among international organizations, governments,
private enterprises, trade unions and financial institutions;
2. Spreading the vision and the approach of glocalization among local authorities and
civil societies;
3. Promoting a pro-urban culture, while bearing in mind the serious problems affecting
cities, and indeed trying to help solve them, as part of a process of integration
between urban and rural areas;
4. Implementing a communication strategy, integrated with forms of networking, in
order to bring various publics or targets such as youth, women, businessmen,
professionals, members of volunteer organizations in touch with the glocalization
project, while keeping to a wider action directed at the world public opinion, clearly
in collaboration with the media.
The principles
The identification of glocalization principles is another outcome of CERFE’s study on
the glocal approach. In particular, they emerge from the analysis of the glocal vision in
relation to other alternative visions. In this regard, some prominent differences among these
positio ns can be identified, pertaining, for example, to the tendency shared by most
international aid policies to keep development programs and peace-oriented initiatives
separate. In the glocal approach, this separation is an anomaly to be rectified. Another
difference concerns the widespread attitude to flatly oppose global to local. Different is also
the role accorded by glocalization to the city, understood as a social and political bridge to
bring together local initiatives and global dynamics. There are many diverging opinions on
this issue since some experts continue to perceive the urban condition in a very negative way.
For these actors, glocalization could be a real, new prospect, being characterized by some
extrinsic features – to be viewed as expressions and effects of the glocal vision – and namely:
8. 1. Universal nature of the glocal proposal, addressed to actors of both developed and
developing countries, based on equal and not conflicting relationships.
2. Concreteness , emerging from its rejection of any ideology and from its tendency to
assess the results of policies and actions in relation to their effects on the
stakeholders’ lives;
3. Mobilize human energy, above all within the local civil societies, but also by
spurring de-bureaucratized public adminis trations, socially -oriented enterprises,
volunteers and individuals towards glocal action;
4. Sustainability, owing to its double orientation to use both public and private
resources and to exploit both local and global opportunities, also referring to power ful
political and economic actors;
However, the real strength of the glocal proposal and perhaps its very appeal lies in its
intrinsic and content related features. In order to account for this aspect, a “glocalization ideal
map” has been developed through the research, from which a first set of principles listed
below:
1. The importance of local actors: The first element making up the glocalization vision
is the full recognition that the actors and social relations at local level have acquired
crucial importance for development and peace. Often it is the agency of the local
actors, their assessment of local problems and needs, their knowledge, their attitude to
exercise governance over issues that affect them directly that makes the difference in
terms of success or failure in development programs. The same is true for the effects
that the quality of social relations at the local level have on peace-building and
pacification strategies. Nevertheless, the relevance of this kind of actors is no longer
limited to the locality. They are showing an unexpected capacity to interact with and
influence actors of higher levels in the global arena, be they States, international
agencies or even global corporations. It is this attitude of local actors that makes the
glocalization approach realistic and able to provide unprecedented concreteness to
peace and development strategies. Among the new actors, one should not
underestimate the role of youth, whose contribution of imagination and orientation to
the future is essentia l to the glocal vision and women, whose capacity to play a
leading role in development strategies and peace building has been demonstrated
repeatedly in these last decades.
9. 2. The war/poverty nexus: At the core of the glocal approach, there is the assumption
that the most destabilizing factor of the current world crisis is the vicious circle
poverty/endemic war, proliferation of conflicts and spread of violence. Situations of
war and conflict, and the culture which derives from and fosters them, tend in fact to
go beyond their place of origin and to attain global dimensions while threatening the
overall stability of the international community. In this perspective the entry point of
glocalization to tackle this circle is not so much the issue of conflict resolution (which
is under state responsibility), but peace building in connection w ith development.
3. Mainstreaming peace building: In the glocalization perspective, peace building is
no longer regarded as a sectorial policy, but is seen as a central axis of any
development strategy. This entails the drive to give concreteness and content to peace,
by making peace dividends take root at local level, while mobilizing local actors to
take the new opportunities offered and build a social, economic and cultural regime
that is as consistent and self-sustaining as that of war.
4. The link between stability, poverty-reduction, and development: It is now
generally recognized that poverty reduction is not so much an outcome of, but a
prerequisite for development. The glocal assumptions, however, bring us one step
further in pointing out that no serious effort in fighting poverty and achieving
sustainable development can ultimately succeed if an adequate degree of stability is
not attained at all levels, from local, to global. I is the virtuous circle of stability,
t
poverty reduction and development that in the long run can contrast the vicious one of
poverty, war and conflict.
5. The role of the city: Cities are the place where civil societies are emerging with more
strength and where their relations with governing and administrative bodies are more
direct. They are also engines of economic growth, centers of cultural and intellectual
innovation and privileged arenas for social empathy and change as well as
institutional reform. They can, thus, be considered as the most relevant social units for
glocalization strategies including people-to-people cooperation, preventive diplomacy
and cross-border relationships – for the fight against poverty and in order to promote
sustainable development and peace.
6. Governance: The glocalization effect could ultimately contribute to a more pluralistic
and integrated governance of globalization, striving to correct the shortcomings of
market dynamics vis-à-vis social and economic inequalities. This entails a double
movement: on the one hand, bringing the benefits of globalization to local levels; on
10. the other supporting and empowering local realities so that they can contribute with
their perspectives, options and demands to the global decision-making process.
7. The use of global knowledge: The movement towards glocalization is strengthened
by the characteristics of the knowledge society. These include increased circulation of
knowledge, communication and peer-to-peer learning, and the possibility to ins ert
local actors and organizations into global communication circuits. This can enhance
the practice of a real multiculturalism, in which local players and their cultures, far for
being depressed and nullified, can access the global arena and find ways of cross-
fertilizing each other.
Conclusions
Different countries development experience, which underpinned by appropriate
science and technology policies, provides a convincing example of the effectiveness of
glocalization as a conscious development strategy. Although the strategy was not always
perfect and there were lapses from time to time but generally, it has shown that cultural
fusion can be an asset if properly harnessed for the objective of attaining socioeconomic
growth without creating gross inequality and social dislocation. The sociological concepts of
globalization in general and glocalization in particular can be of great value in understanding
the dynamic social transformation in Southeast Asia, especially in Singapore and Malaysia. It
is always possible to carry away with “methodological nationalism”, a position that says each
country or society should be examined in light of its own context through the devices of its
own homegrown methodology. Such a position would lead to intellectual closure foreclosing
dialogue and understanding between societies. In the globalized world, such discourses have
limited value. Yet, it is important to take the local context and variables and not to fall into
the trap of blind imitation or aping of western ideas and concepts. However, in the end what
is needed is a set of globally valid concepts that will help us examine processes of social
transformation that is inextricably connected with global transformation.
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