Post-Bureaucratic Firms' Internationalization (original) (raw)
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Does cultural competence affect the success of international strategies? A case study analysis
World Review of Entrepreneurship, Management and Sustainable Development, 2014
The increasing environmental turbulence and the high competition push firms to enlarge their markets, and research new opportunities to implement and successfully develop their products. Internationalisation becomes more and more a learning strategy, aimed at exploring opportunities, and consolidating existing advantages. Above all in emerging markets, such as Middle East Countries (MECs) and Southern Mediterranean Countries (SMCs), cultural distance can limit firms' success: different behaviours, different communication styles and different social dynamics have a strong impact on intra-and inter-organisational relationships. Successful firms are those who are able to adapt to different contexts. Managers have to develop a deep knowledge of the host market, and understand which behaviours can better fit with the local culture. Managers' cultural competence becomes consequently a factor of success. This paper aims at exploring the concept of cultural competence and at highlighting its value for European firms entering SMCs and the Middle East. The empirical analysis is focused on the case study of Technip Italy, a world leader in engineering, technologies and project management for the oil and gas industry, successfully operating in the area. This case study is useful to understand some key factors of success for international strategies in the area.
EuroMed Journal of Business, 2013
ABSTRACT Purpose ‐ The purpose of this paper is to analyse the positive effects of cultural bridges on European firms' internationalization to SMCs and MECs. We analyse the meaning and the role of managers' cultural competence in order to understand if and how it contributes to the formation of effective cultural bridges. Design/methodology/approach ‐ Given the few contributions existing on the topic, and the lack of a general theory, a multiple case-study analysis seems appropriate to the topic. In particular, we present five case studies of European large firms, which have successfully internationalized in SMCs and MECs. In each firm, we interviewed local and foreign managers, in order to understand the importance of cultural issues and the ways companies overcame cultural distance. Findings ‐ Cultural distance is a big problem for European firms investing in SMCs and MECs. They impact both intra- and inter-organizational relationships and cultural bridges can be useful to overcome the effects of its perception. Cultural bridges are effective if based on managers' cultural competencies, and can be represented by a specific manager, or by an organizational unit. In any case, the involvement of local people and the adaptation to local customs are crucial. Research limitations/implications ‐ The analysis is still limited, and, in the future, we'll look for a methodology able to isolate cultural knowledge and cultural competence as key factors in order to evaluate the importance of each factor. Practical implications ‐ When entering Islamic countries, foreign investors should be aware of local values, particularly religious and family value, which deeply impact on business and social relationships. Based on a deep cultural knowledge, cultural bridges enable fruitful relationships both inside and outside the organization. Originality/value ‐ Whereas cultural competence is often mentioned in the literature, only a few contributions focus on cultural competence as a key aspect of internationalization. In addition we explore the concept and the relevance of cultural bridges, and the multiple case-study analysis show some best practices firms could follow to succeed in SMCs and MECs.
Global firms and cross-cultural management
Competitive Business Management A Global Perspective, 2018
Cross-cultural and multinational challenges in global business management have become a fundamental theme in recent times. As firms continue to expand across borders and the global marketplace becomes progressively more reachable for small and large businesses alike, the current scenario offers increasing opportunities to working globally. Nevertheless, numerous cases of failure exist linked to the management's incapacity to identify cross-cultural issues and to appropriately and effectively deal with these. As the current global scenario is becoming increasingly complex, global managers will have to become more perceptive and responsive to the challenges and risks deriving from the multicultural backgrounds of countries they deal with or work in. Disregarding cultural complexities whilst managing global firms can be perilous. Embracing a county’s cultural diversity may or may not be a factor of success for a firm. However, not understanding and not exploiting such diversity will undoubtedly increase the possibility of failure or stagnation.
Accelerating Cultural Dimensions at International Companies in the Evidence of Internationalisation
Sustainability, 2022
The research goal is to investigate whether several cross-cultural dimensions proposed in the Hofstede cultural model link international companies and their affiliations operating in Scandinavia and Baltic countries. Although cultural aspects have got much more attention in internationalisation studies over the last decade, there is still room for research focusing on such study areas. The authors start with the analysis of the literature review. Presenting the holistic approach affecting internationalisation and a list of factors necessary for internationalisation, later on, the authors present the cultural dimension of Hofstede, and then give various qualitative methods applied for studies on internationalisation. Design/Methodology/Approach: To complete the research, the authors selected the database from Nasdaq (2021), listed MNE companies from six countries: Denmark, Norway, Sweden, Estonia, Latvia and Lithuania. The mother company is located in Scandinavia, and the daughter co...
The Relevance of Intercultural Competence for Intercultural Management
Knowledge International Journal
The different changes in economic conditions such as the increasing interdependence of the world economy, the economic integration of Europe, the transformation of Central and Eastern Europe and the dynamics of the technological development have resulted in the fact, that the internationalization of business activities was inevitable. New businesses and firms were set up as a "conversion" of Western companies, as part of collaborations or linkages with Western organizations. The intercultural understanding cannot keep up with the pace of globalization. Business cooperation between different nations often fails due to the difference of the cultural values and attitudes. The economic imperative of globalization forces, on the one hand, more and more companies to expand their activities worldwide. On the other hand, companies are more and more exposed to cultural differences and their conflict-prone consequences without there being sufficient nation state or multinational mec...
The world today is more culturally aware and integrated within different cultural backgrounds to raise the economy. A culture plays an important role on how an individual reacts, behaves, and responds to things in a community. The cultural differences among countries and their associations bring up the question of whether what can be applied to associations in one country is appropriate to the associations in another country. In a growing economic world and in the process of globalization, international relationships between organizations are becoming more and more important. If a culture is not properly understood it can lead to many business failures. Since the board is managing the incorporation of individuals in some type of joint endeavor, it is acutely embedded in the culture. It is essential to have knowledge about other cultural backgrounds to become successful in this new economy. To improve the managerial skills it is important that managers should understand their international partners and competitors by learning about the cultural differences. Management and organizational behavior is affected by national culture to a certain extent. Thus, associations are progressively keen on individuals that have encountered and changed in accordance with different cultures as they are adaptable in fitting in the culture. This adaptability helps an association in saving money by sending a worker who is equipped for continuing the task they were sent on effectively without harming business connections abroad. This paper will examine expatriates and their jobs, what are cross-cultural issues, the distinction among high and low context cultures, and an examination of European and Omani culture According to Broke et al ., (2008) Organizational culture can be passed by expatriate assignment to subsidiaries, which can pose few issues such as that nationals from small power distance countries may have issues enforcing ' solid organizational culture ' in their subsidiaries. Community culture is an inevitable concept that affects the initiatives and style of management of the companies. Tayeb (1996) states that different national cultures results in different patterns of social interaction affecting groups and individuals and therefore demand new management styles. The degree to which an immigrant is socially relaxed with various aspects of the hostile country is referred to this as cross-cultural transition as per Black (1988). This entails the ambiguity by mimicking or acquiring suitable local habits and harmonizing with society according to Peltokorpi and Froese (2009).
Understanding International Business in the Context of Cultural Lenses
This paper is based on the premise that for business organizations to succeed in our globalized, competitive international environment without a "globalized" culture, business managers need to have a sound and practical knowledge of cross boarder cultures. Believing, as Dewey (1938) long ago recognized that "there is nothing more practical than a good theory", the paper identified from the professional literature and discussed seven theories of culture. The understanding of these cultural models would help the business manager to become more intelligent, culturally more sensitive to cultural differences, develop cultural competence and became more effective and efficient as he/she works to overcome cultural complexities that can negatively affect business and business profits.