International business contact and cross-border company activities are not only trends these days, but were also detectable in the past century. "The British East-India Company" or the French "Compagnie des Isles de l'Amérique" are examples for trading companies existing in the 17th century that organized exchange of goods on a worldwide scale. Today this internationalisation of organizational economic activity occurs not only sporadic, but is part of the daily work of many businesses. The reason is the proceeding economical globalization since the 60th resulting from increasing international ties between national economies and the resulting cross-border actions and bondings of companies (Blom & Meier, 2002, p. 1). The motives of the enterprises for that development are multisided.
Table of Contents
1. International business contact and cross-border company activities
2. Hofstede's book “culture’s consequences”
2.1 Power distance index – PDI
2.2 Individualism and collectivism – IDV
2.3 Masculinity versus Femininity – MAS
2.4 Uncertainty Avoidance Index – UAI
2.5 Long-term-orientation – LTO
3. The central question of this work and a key issue in cross-cultural management research
3.1 The Universalists i.e. the representative of the "culture-free thesis"
3.2 Culturists i.e. the representatives of the "Culture Bound thesis"
3.3 The task of the convergence and divergence thesis
3.4 Child and Kieser occupy a position in between the convergence and the divergence thesis
Objectives and Topics
The primary objective of this work is to explore the ongoing debate within cross-cultural management regarding whether management techniques are universal or fundamentally shaped by cultural contexts. It analyzes the tension between the "culture-free" universalist perspective and the "culture-bound" culturist approach, particularly in the context of international business operations and strategic alliances.
- Theoretical foundations of cultural influence in international business.
- In-depth examination of Hofstede's five cultural dimensions.
- Comparative analysis of universalism, culturism, and the convergence/divergence hypotheses.
- The impact of cultural differences on the failure rate of international strategic alliances.
- Practical adaptation strategies of multinational corporations in diverse cultural markets.
Excerpt from the Book
The central question of this work and a key issue in cross-cultural management research
The central question of this work and a key issue in cross-cultural management research in general is, whether management techniques and methods are universal, i.e., culture-applicable and efficiently or whether management techniques and methods are influenced by culture (Keller, 1989, p. 237). That there are differences between cultures is probably indisputable. Nevertheless, in the literature and research the influence of culture on management is not undisputed, and also numerous empirical studies still give no clear answer (Keller, 1989, p. 237). There are two opposing views: The universalists who argue that management techniques are independent of cultural influences, and the culturists who represent the culture of dependence on management techniques (Keller, 1989, p. 237). The Universalists i.e. the representative of the "culture-free thesis" deny the influence of cultural differences. They consider management principles, regardless of cultural environment. For them, management techniques and methods are always and everywhere equally applicable and valid, and hence efficient (Keller, 1982, p. 539).
Summary of Chapters
1. International business contact and cross-border company activities: Discusses the historical and economic motivations for internationalization, highlighting the growing necessity of managing cultural diversity in global business.
2. Hofstede's book “culture’s consequences”: Examines Hofstede’s empirical study of cultural dimensions, which provides a framework for understanding how national culture influences management and leadership.
3. The central question of this work and a key issue in cross-cultural management research: Analyzes the theoretical conflict between universalists and culturists, and evaluates the validity of convergence and divergence theories in the context of international management.
Keywords
International Business, Cultural Diversity, Hofstede, Power Distance, Individualism, Collectivism, Uncertainty Avoidance, Strategic Alliances, Universalism, Culturism, Convergence Hypothesis, Divergence Thesis, Cross-Cultural Management, Corporate Culture, Globalization.
Frequently Asked Questions
What is the fundamental focus of this publication?
This work explores the influence of culture on international management practices and the strategic operations of multinational corporations.
What are the primary thematic areas covered?
Key areas include Hofstede’s cultural dimensions, the debate between universalist and culturist management theories, and the impact of cultural conflicts on international cooperative ventures.
What is the central research question?
The study investigates whether management techniques are universal and applicable across all cultures, or if they are intrinsically influenced and constrained by specific cultural environments.
Which scientific methods are utilized?
The work employs a literature-based comparative analysis, synthesizing existing empirical studies and theoretical frameworks regarding cross-cultural management research.
What does the main body address?
It covers the history of international business, the significance of Hofstede's dimensional model, the theoretical struggle between "culture-free" and "culture-bound" theses, and the practical challenges of intercultural strategic alliances.
What are the characterizing keywords?
The work is defined by concepts such as Cross-Cultural Management, Cultural Dimensions, Strategic Alliances, Universalism, and Corporate Culture.
How does Hofstede define culture?
Hofstede defines culture as "collective mental programming," which represents the shared values and cognitive patterns inherent to people of a specific nation or region.
Why do many international strategic alliances fail according to the text?
The text suggests that approximately 70% of failed collaborations are linked to intercultural conflicts resulting from unresolved differences in national values, norms, and thinking patterns.
What distinguishes the "convergence" from the "divergence" thesis?
The convergence thesis argues that economic and industrial development leads to an alignment of management practices globally, whereas the divergence thesis suggests that cultural differences persist and may even grow over time.
How do companies like McDonald's deal with cultural differences?
The publication notes that even globally standardized companies adapt their strategy and products—such as offering region-specific menu items—to local cultural conditions for economic success.
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- Phillip Weber (Autor), 2009, Corporate culture and cultural diversity , Múnich, GRIN Verlag, https://www.grin.com/document/147509
