What cultural challenges relating to leadership do organisations face when doing business in foreign countries?

An empirical study of the German and Swedish construction supply industries

Master's Thesis , 2017 , 134 Pages , Grade: 1,7

Business economics - Business Management, Corporate Governance

The aim of this study is to identify and evaluate the cultural challenges within organisational leadership imposed by their internationalisation activities. This dissertation aims to create an understanding for the relevance of cultural differences within the internationalisation process. It does so by analysing the cultural differences between the German and Swedish construction supply industries.

The research question is; what are the cultural challenges related to leadership that organisations face when doing business in foreign countries. I discuss this question based on the analysis of the contemporary academic literature, whereby Hofstede’s cultural model is considered. Semi-structured expert interviews were used to analyse the current cultural situation in both industries as well as to evaluate the findings of the theory.

In conclusion, the analysis of the German and Swedish construction supply industries showed a significant difference between the contemporary literature and the primary findings of this thesis. Certain aspects of the cultural dimensions of both industries did not correspond to the literature’s view of each country’s culture. Although both industries are similar they show differences, which are recognised within the approach to leadership. Cultural changes are recognised in both countries and industries, as transformation in structure, resources, and expertise are being accelerated by the internet, disruptive technologies, tourism, media and migration. As technology and human migration progress, further cultural research is necessary.

Inhaltsverzeichnis (Table of Contents)

• ACKNOWLEDGEMENTS
• ABSTRACT
• LIST OF CONTENTS
• LIST OF ABBREVIATIONS
• LIST OF FIGURES
• LIST OF TABLES
• LIST OF APPENDICES
• 1. INTRODUCTION
  • 1.1. Definition of the Problem
  • 1.2. Research Gap
  • 1.3. Research Aim and Objectives
    • 1.3.1. Aim
    • 1.3.2. Objectives
  • 1.4. Structure
• 2. LITERATURE REVIEW
  • 2.1. Definition
    • 2.1.1. Internationalisation
    • 2.1.2. Culture
      • 2.1.2.1. National Culture
      • 2.1.2.2. Organisational Culture
    • 2.1.3. Leadership
  • 2.2. Cross-cultural Leadership within the Internationalisation Process
    • 2.2.1. Models of Culture
      • 2.2.1.1. Hofstede's Cultural Dimensions
        • 2.2.1.1.1. Power Distance
        • 2.2.1.1.2. Uncertainty Avoidance
        • 2.2.1.1.3. Individualism vs. Collectivism
        • 2.2.1.1.4. Masculinity vs. Femininity
        • 2.2.1.1.5. Long-term Orientation
        • 2.2.1.1.6. Indulgence vs. Restraint
        • 2.2.1.1.7. Hofstede's Model in Relation to Leadership
        • 2.2.1.1.8. Critical Evaluation of Hofstede's Model
      • 2.2.1.2. Globe's Cultural Dimensions
    • 2.2.2. The Leader's Role
  • 2.3. Germany vs. Sweden
    • 2.3.1. Culture of Germany
    • 2.3.2. Culture of Sweden
  • 2.4. Literature Conclusion
• 3. RESEARCH METHODOLOGY
  • 3.1. Research Process
    • 3.1.1.1. Philosophy
    • 3.1.1.2. Approach
    • 3.1.1.3. Strategy
    • 3.1.1.4. Choices
    • 3.1.1.5. Time Horizon
  • 3.2. Data Collection Method
    • 3.2.1. Secondary Data Collection
    • 3.2.2. Primary Data Collection
      • 3.2.2.1. Semi-structured Interview Guide Line
      • 3.2.2.2. Sampling of the Research Data
    • 3.2.3. Research Ethics
  • 3.3. Data Validity, Reliability, Generalisability and Limitations
• 4. ANALYSIS AND FINDINGS
  • 4.1. Construction Supply Industry
  • 4.2. Cultural Dimensions
    • 4.2.1. Germany

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The research aims to identify and evaluate the cultural challenges that organisations face in their leadership when engaging in internationalisation activities. The dissertation explores the significance of cultural differences in the internationalisation process by examining the cultural differences between the German and Swedish construction supply industries. This study aims to enhance understanding of these cultural challenges and their implications for effective leadership in international contexts.

• Cultural Challenges in International Leadership
• Cross-Cultural Management in Internationalisation
• Cultural Differences in the Construction Supply Industry
• Leadership Strategies for International Business
• Cultural Adaptation and Transformation in Global Organisations

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter defines the problem of cultural challenges in leadership within international business, identifies the research gap, and outlines the research aim and objectives. It also presents the overall structure of the dissertation.
• Chapter 2: Literature Review This chapter delves into the theoretical framework of internationalisation, culture, and leadership. It examines the concept of culture, including national and organisational cultures, and explores various models of culture, particularly Hofstede's cultural dimensions. This chapter further analyses the relationship between culture and leadership, highlighting the importance of cross-cultural leadership skills.
• Chapter 3: Research Methodology This chapter presents the research process, including the philosophy, approach, strategy, choices made, and time horizon. It outlines the data collection methods, both secondary and primary, with a specific focus on the semi-structured interview guide used for primary data collection. This chapter also discusses the sampling strategy, research ethics, and the limitations of the study.
• Chapter 4: Analysis and Findings This chapter presents the analysis of the research data, focusing on the construction supply industry and the cultural dimensions within it. The chapter specifically analyzes the German construction supply industry and its cultural characteristics.

Schlüsselwörter (Keywords)

This research explores the crucial aspects of cultural challenges in leadership within the context of internationalisation, particularly within the German and Swedish construction supply industries. Key themes include cross-cultural management, leadership styles, Hofstede's cultural dimensions, international business strategies, and the impact of cultural differences on organisational success. This research highlights the importance of cultural awareness and adaptation for organisations operating in a globalized environment.

• College: Buckinghamshire New University
• Grade: 1,7
• Author: Jann Guzikiewitz (Author)
• Publication Year: 2017
• Pages: 134
• Catalog Number: V373433
• ISBN (eBook): 9783668514249
• ISBN (Book): 9783668514256
• Language: English
• Tags: Culture, Internationalisation, Leadership