Core Values, Critical Issues: The Role of National Culture in Adopting and Implementing Common Corporate Values in a Multinational Company

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Globalization has put pressure on many companies to enter foreign markets in order to stay competitive. While some choose acquisitions as an internationalization strategy, data indicates this often results in substandard performance. As insufficient understanding of cultural differences has been identified as a critical issue in acquisitions, managers often respond by looking towards homogenizing factors such as common values. Multinational companies however face the added dilemma of potential differences in national culture. This case study explores the role of national culture in the process which one international company, IBS, undertakes in order to adopt and implement common corporate values across regional units. Hofstede’s cultural dimensions and a theoretical framework are used to identify potentially critical issues of national incongruence on three levels in this process: executive management, multinational teams and in local organizations. The main findings are that there indeed is a risk for considerable national cultural issues in this process on all three levels, however they can be significantly dampened through appropriate management approaches. In some instances however these management approaches may compound the issues. This case study is not prescriptive in nature; it provides insight int...