Comparative analysis of corporate culture in a multinational organization

Abstract

This study built upon the Project GLOBE (House, Hanges, Javidan, Dorfman, & Gupta, 2004) analysis by using a Web-based version of the GLOBE Questionnaire in order to examine the extent to which the cultural values and practices of middle managers in a multinational organization vary depending on (a) their cultural background and the region in which they work, (b) whether they were a member of a recently acquired company, and (c) the number of years employed by the multinational organization. Multinational organizations face the unique challenge of operating in societies that have different sets of cultural norms, expectations, beliefs, and values. Just as societies have distinct cultures, so do organizations. Individuals working in organizations are influenced by the organizational culture as well as by the societal culture and competition between these 2 sets of distinct cultures can dramatically impact the success or failure of an acquisition, a strategic alliance, or any other initiative involving multiple cultures. Focusing on data from over 200 middle managers from the United States parent organization, and the regional organizations in Ireland, France, and Japan, a secondary analysis shows that an individual\u27s values and beliefs tend to be more closely aligned with the corporate culture of the parent organization than with the societal culture of the regional organization. Additionally, an examination of the culture of an acquired company shows that there are no statistically significant differences in cultural practices, and only 2 statistically significant differences in cultural values, several years after the acquisition. Finally, the results from this study show that statistically significant differences for cultural practices and values between individual respondents and the overall organization tend to be most prevalent among middle managers with 5 to 10 years of service with the organization

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