Organisational Culture In International Business

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Organisational Culture: All organisation has its distinct culture and expatriate are ideally expected to have good understanding of organisational culture to help develop meaningful strategies to understanding their new environment. In the opinion of Barney (1986), organisations who gives importance to culture are likely t be able to increase their efficiency and competitive positioning Schein (1990) was of the opinion that, organisational culture is developed in three different phase, i.e. observable artifacts, Values and Basic assumptions. Observable artifacts consist of tangible and observable things like dress code, success stories, rituals and ceremonies etc. Values can only be observed overtime in order to understand why certain things…show more content…
identical hand gestures could mean different meaning in different cultures. So the visible part of the culture i.e. artifacts etc. can be understood if their interpretation is based on the culture in which they exist. Every culture undergoes gradual changes, this is known as cultural diffusion, and cultural values which have proven beneficial are adopted and incorporated into different cultures through intelligent selection. A fine example is that of Ouchi theory Z, which took the best features of Japanese culture and American culture of management. International organisations also look to adopt and unify culture so that there is less friction between different business units. Analysis of impact of culture on international businesses is made in the following text in order ascertain the level of cultural understanding manager should possess in order to perform successfully. Impact of culture on international business: A business cannot rely simply on its current method of doing business when it decides to take its business at international level. Every country has a set of distinct variables which can be new for an offshore company e.g. rules and regulation, taxation, different currency, different holiday periods etc. Most important consideration in this regards is the difference in…show more content…
(2011) studied the impact of culture in international organisations in the context of expansion into newer regions with different prevailing cultures and concluded that it is vital for any such organisation with the intention to move into new areas that the cultural differences are understood and mapped in order to bridge the gap between business units performing in multiple cultures. The study further proves that a multinational company with presence in many different cultures will have a smaller cultural gap than an organisation which is operating in a few different cultures; the reason of this abridged gap is the learning factor from working in different cultures. The results of Lee et al. (2011) study are not similar to Morisini (1998) as it is shown in the study that multinational organisations prefer to have new business establishments than acquisitions or

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