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GLOCALIZATION: A THEORETICAL ANALYSIS

Mohammad Shamsuddoha
Assistant Professor, Department of Marketing Studies and International marketing
University of Chittagong

Abstract
This paper examines the evolution and transformation of the concept of glocalization
which has come from the root of globalization. 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
glocalization themes. The article also provides a discussion on the importance of well-defined
concepts and approaches used by scholars and by practitioners in various contexts. 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 including China, Russia and
Canada. It also customizes content to appeal 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 objective s:
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 ;

METHODOLOG Y OF THE STUDY


The stud y 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 st udy. 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.

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 differences. 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. “The 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, have taken place in the
human history, and it can demonstrate that this alternance is possible (Arrighi, 2000).

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
explo itation of resources and the maximization of the concept of competitiveness on liberalized
markets (Boyer et al., 1996).

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).
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 productio n 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
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 positions 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 because of holding international market rather local market. Most of
the country is concerning about balance of payment instead of stable growth of internal or local
market. 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:

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, abo ve all within the local civil societies, but also by spurring
de-bureaucratized public administrations, 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 powerful 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 essential 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.

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 with 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. If the business will be global to local or only local, the poverty issue can
be removed as local business will get highest priority than the FDI or Joint ventures. In
this way, local focused business can alleviate poverty line of a country as it creates local
employment, local expertise, local industry, local methodology and can hold local
currency as well. It is the virtuous circle of stability, 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 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 moveme nt 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 insert 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.

CONCLUSION
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 natio nalism”, 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 soc ieties. 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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