182 research outputs found

    MANAGING THE IMPACT OF DIFFERENCES IN NATIONAL CULTURE ON SOCIAL CAPITAL IN MULTINATIONAL IT PROJECT TEAMS – A GERMAN PERSPECTIVE

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    How can management handle relationship problems arising from cultural differences in multinational IT project teams? This paper uses a social capital lens to better understand the negative impact of cultural differences in IT project teams. In contrast to many previous works we do not consider cultural differences as a whole but explore the role of the different national culture dimensions. This allows for a more detailed view on cultural differences in a team context and thus contributes to a better understanding about which dimensions of national culture drive relationship problems and which management measures can help to dampen the negative effects. Based on several exploratory cases (6 multinational IT projects in 4 companies, headquartered in Germany), the authors identify three patterns showing typical problems in team social relationships which arise from differences in particular dimensions of national culture. Pattern-specific as well as general management measures, employed to address the culture-driven negative effects, are identified as well

    Global delivery models: the role of talent, speed and time zones in the global outsourcing industry

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    Global delivery models (GDMs) are transforming the global IT and business process outsourcing industry. GDMs are a new form of client-specific investment promoting service integration with clients by combining client proximity with time-zone spread for 24/7 service operations. We investigate antecedents and contingencies of setting up GDM structures. Based on comprehensive data we show that providers are likely to establish GDM location configurations when clients value access to globally distributed talent and speed of service delivery, in particular when services are highly commoditized. Findings imply that coordination across time zones increasingly affects international operations in business-to-business and born-global industries

    Ethnic entrepreneurs and online home-based businesses: an exploratory study

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    This exploratory, qualitative study considers how online home-based businesses offer opportunities for ethnic entrepreneurs to ‘break out’ of traditional highly competitive and low margin sectors. Previous studies have found a positive association between ethnic minorities’ high levels of entrepreneurship and home computer use in ethnic groups. Despite these associations, previous studies have overlooked the particular opportunities offered by home-based online businesses to ethnic entrepreneurs. The study adopts mixed embeddedness as a theoretical lens to guide interviews with 22 ethnic entrepreneurs who have started online home-based businesses in the UK. We find online home-based businesses offer ethnic entrepreneurs novel opportunities to draw on their ethnic advantages and address the constraints they face. The unique affordances of this type of business allow entrepreneurs to develop the necessary IT skills by self-learning and experimentation and to sub-contract more difficult or time consuming aspects to others. The findings also show that, consistent with the theory of mixed embeddedness, whilst the entrepreneurs are influenced by social, economic and institutional forces, online businesses allow them to exert their own agency and provide opportunities to uniquely shape these forces

    Cultural Distance and Firm Internationalization:A Meta-Analytical Review and Theoretical Implications

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    This paper presents the most comprehensive review and meta-analysis of the literature on cultural distance and firm internationalization to date. We analyze the effects of cultural distance on key strategic decisions throughout the entire process of internationalization. For the preinvestment stage, we examine the decisions on where to invest (location choice), how much to invest (degree of ownership), and how to organize the foreign expansion (entry and establishment mode). For the postinvestment stage, we examine the decisions of how to integrate the foreign subsidiary into the organization (transfer of practices) as well as the performance effects of cultural distance at both the subsidiary and the firm level. We find that firms are less likely to expand to culturally distant locations but if they do, they prefer greenfield investments and integrate subsidiaries more through transfer of management practices. Cultural distance does not seem to affect how much capital firms invest and whether they enter through a joint venture or full ownership. Interestingly, cultural distance has a strong negative effect on subsidiary performance but no effect on the performance of the whole multinational company. In addition, we find that the effects of cultural distance are not sensitive to time, but they are sensitive to the cultural framework used (e.g., Hofstede vs. Global Leadership and Organizational Behavior Effectiveness) and the home country of the company (developed vs. emerging market). Based on our study, we feel confident to offer some theoretical insights, recommendations for improving the validity and reliability of cultural-distance research, and ideas for future research
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