The dark side of globalization and liberalization : helplessness, alienation and ethnocentrism among small business owners and managers

Abstract

Globalization and liberalization processes are fostering reactions of helplessness and alienation among many affected communities worldwide. Malta, a small island state, has relied upon a protective system to sustain its industrialization since Independence in the mid-1960s. The changes required by the aforementioned processes appear to threaten gains achieved over the last three decades, resulting in reactions of ethnocentrism. The main aim of this exploratory study is to consider the possibility that anomia or feelings of helplessness and alienation are correlated to ethnocentrism. While ethnocentrism has in the past been examined from a consumer perspective, this study focuses on owners/managers from small firms producing mainly for local consumption. Results indicate a strong correlation between the two constructs and show that ethnocentrism is higher among those in the woodworking and printing sectors. Anomia tends to be higher among respondent owners and managers that have been operating in a particular sector for less than ten years. Some preliminary implications for theory and policy development for the Agency responsible for restructuring are considered.