The interplay between organizational and national cultures: a comparison of organizational practices in Canada and South Korea using the Competing Values Framework

This paper examines the concept of organizational culture using the Competing Values Framework (CVF) in organizations from six different industries in Canada and South Korea. The Competing Values Framework (Quinn and Rohrbaugh, 1983; Quinn, 1988) is used to compare organizational cultures of similar firms and their HRM in the two countries. The data reported are from thirty-nine Canadian and forty Korean organizations. The findings show that, even though some aspects of organizational culture are related and can be attributed to the differences between the national cultures (Korean versus Canada), industry and contextual variables do contribute to a significant extent to the perception of organizational culture. In addition, the analysis reported here shows that other organizational aspects that are closely related to organizational culture (organizational climate and leadership) have significant associations with national cultures as well as industry and contextual factors. The aspects of organizational context under study included size, age and ownership of the firms, uncertainty and unpredictability of the environment, organizational support for training and unionization. Implications of the study for cross-national research, and for the use of competing Values Framework are discussed.     

‘Business as usual?’ Retail employee perceptions of organizational life following cross-border acquisition

The question of whether strong organizational cultures can be exported across borders has been continually debated in the management and business literature. With increased retail internationalization, the question arises in how far global retailers will be able to transpose their cultural values – which are regarded as key levers to business success – into other national contexts. A case study of the acquisition of a UK retailer reveals workforce compliance to behavioural norms and consent to company values at Schein's () second tier of organizational culture. However, the cultural integration espoused in the retailer's literature is not achieved, but differentiation and fragmentation (Martin, , ) prevail at store level, despite the probable existence of a strong sectoral culture (Ogbonna and Harris, ).     

Do NPM-Type Reforms Lead to a Cultural Revolution Within Public Sector Organizations?

Abstract

Agencification and granting public sector organizations managerial autonomy in particular is believed to change organizational cultures, away from traditional compliance- and detail-oriented bureaucratic cultures and towards organizational cultures which are more oriented towards external customers. There is however very little empirical information on the relationship between managerial autonomy and organizational culture. Using a unique data set on public agencies in Flanders, we not only test how managerial autonomy affects the strength of a customer-oriented culture within public sectors but also examine whether this culture becomes dominant over traditional public administration culture. Analysis shows that managerial autonomy positively affects a customer-oriented culture; however, it does not make it a dominant culture.     

The impact of culture on HRM styles and firm performance: evidence from Japanese parents,Japanese subsidiaries/joint ventures and South Asian local companies

This paper investigates national and organizational cultural influences among managers in three types of companies: Japanese companies in Japan, South Asian domestic companies and Japanese subsidiaries/joint ventures in South Asia. The findings suggest that a Japanese parent company's culture tends to have a much stronger influence with Japanese companies operating in Japan. Japanese parent company culture tends to have less influence than the South Asian national culture in shaping the HRM styles and practices in Japanese subsidiaries/joint ventures operating in South Asia. While some South Asian firms are in the initial stages of learning about participative HRM from foreign companies, most still tend to maintain their national culture and traditional ways in the operating systems of their organizations.     

The role of employee preferences and organizational culture in explaining e-commerce orientations

Culture has always been a cornerstone variable in the study of international business subjects. Several authors have dealt with the concept of culture and its dimensions. Among these Hall's (1981/1976) proposal of high- versus low-context cultures still stands as an important subject matter to be explored. This study is an attempt to explore the significance of high- versus low-context orientation and its implications for communications. Further, strategic orientation of the firm in terms of e-commerce adoption is explored within the framework of high- versus low-context organizational cultures and the internationalization and technological orientation level of the firm. A survey was conducted with 525 employees and managers working in financial services and textile manufacturing firms. Results supported the hypotheses that high- versus low-context values and perceptual and demographic characteristics of employees influence attitudes towards e-communication. Organizational culture regarding high- versus low-context practices, firm's internationalization and technological orientation levels influence the e-commerce adoption at a strategic level.     

The globalization of operations in Eastern and Western countries: Unpacking the relationship between national and organizational culture and its impact on manufacturing performance

Understanding national and organizational culture becomes increasingly important in the era of transnational manufacturing. As the world becomes flat and boundaries break down, manufacturers need to understand the proper role of culture in order to obtain competitive advantage. Thus, the current study conducts a multilevel investigation of the impact of eight national and organizational culture dimensions (according to GLOBE framework) on manufacturing performance. An ANOVA comparison of 189 manufacturing plants between Eastern (Japan and South Korea) and Western (Germany, United States, Finland, and Sweden) countries indicates that organizational culture inside plants differs in three dimensions (power distance, future orientation, and performance orientation). Hierarchical Linear Modeling analysis further suggests that organizational culture has more of an effect on manufacturing performance than national culture or the fit between them. In addition, Country Developmental Indexes, both Economic and Infrastructural, do not impact manufacturing performance, reinforcing our conclusion about the weak influence of the national level factors on manufacturing performance. In an era of globalization, these results have practical implications for organizations expanding across national boundaries by developing an internal organizational culture consistent with high performance manufacturing.     

From Trade Among Nations to Trade Within Firms Across National Borders

SUMMARY

Based on international economics, evolutionary economics, and organizational theories, this paper discusses the evolution of the multinational corporation's intra-organizational cross-border trade and production network. The paper suggests that firms are social and economic entities, whose intra-organizational, cross-border trade and production networks coevolve with their multilocal competitive environments. Since organizational evolution, technological innovation, and organizational learning are path-dependent, a firm-specific inertia makes it to differentiate itself from its competitors in both its intra-organizational network and market outcome. The growing trends in intra-firm transactions and intra-firm division of labor on global basis present a challenge to national governments. This paper discusses intra-firm cross-border trade versus arm's-length international trade and the implications for national-based policies.     

Organizational diversity programs across cultures: effects on absenteeism,turnover, performance and innovation

This study examined data from over 5000 organizations in 22 countries to address three complementary issues: (1) the influence of national culture on the adoption of diversity programs aimed at recruiting, training and promoting individuals from specific target groups; (2) the moderating effect of national cultural practices on the relationship between these diversity programs and the organizational outcomes of absenteeism and turnover; and (3) the mediating effect of absenteeism and turnover on the relationship between diversity programs and organizational performance and innovation. National cultural values and practices were taken from the GLOBE study and assigned respectively to the organizations in our sample. A multilevel path analysis supported the hypothesized effects of national cultural values on organizational diversity programs. Moreover, cultural practices were found to moderate the relationship between diversity programs and absenteeism and turnover. Our hypotheses on the role of absenteeism and turnover as mediators of the relationship between diversity programs and organizational performance and innovation were also supported. Our findings may help guide managers' decisions on the adoption of diversity programs in units operating in different national cultures. We discuss the implications of our findings for scholars and practitioners concerned with diversity management issues in a global context.     

The Relationships Between Adhocracy and Clan Cultures and Tacit Oriented KM Strategy

Abstract

In this study knowledge is considered as explicit and tacit; and in line with this, knowledge management strategy that focuses on tacit knowledge is identified as tacit oriented knowledge management strategy. Organizational culture, which is one of the crucial antecedents of knowledge management process, is categorized into four types by using two dimensions—external versus internal orientation and formal versus informal organizational process—as adhocracy, clan, market and hierarchy. And the relationships between adhocracy, and clan culture and tacit oriented knowledge management strategy are investigated. Also the industrial environment hostility is used as a moderator between adhocracy and clan cultures, and tacit oriented knowledge management strategy.

According to the regression analyses, adhocracy and clan cultures have positive effects on tacit oriented knowledge management strategy; and the impact (magnitude) of adhocracy culture is approximately the same as the clan culture on tacit oriented knowledge management strategy. Also it was found that greater industry environment hostility, the greater relationship between adhocracy and clan cultures, and tacit oriented knowledge management Strategy.     

A critical examination of Hofstede's thesis and its application to international reward management

Hofstede's model has been extensively used and applied in international management. This study begins with a critique of Hofstede's thesis. The applicability of his framework is then tested using a cross-cultural comparison of reward preferences in four countries. The findings reveal that although his framework provides both theoretical and practical contributions to the reward arena, the proposition that human values are conditioned solely by national culture ignores the potential influence of a variety of other contextual factors.     

The spirit of management reforms

Abstract

The article reports on a comparative case study of the administrative cultures of the Australian (Queensland) and the Hungarian governmental administration. The basic finding of the study is that the culture profiles of the two administrative (sub-)systems are surprisingly similar. This finding is used to conclude that the organizational level of administrative culture is unlikely to play a significant role in shaping New Public Management (NPM) reforms. Moreover, this conclusion sheds a cloud of doubt onto the claim frequently found in NPM literature that NPM reforms involve a replacement of ‘outmoded, bureaucratic thinking’ with a ‘culture of efficiency and entrepreneurship’.     

Extending beyond borders: Multinational companies and the international management of labour

The paper investigates the potential consequences of MNCs' globalizing strategies for the management of labour, drawing on findings from a survey of employee management among MNCs operating in the UK. It finds clear evidence of transnational forms of management organization, including in the personnel sphere. But it also underlines that moves to globalism are uneven. Structures and policies to develop international management teams were found primarily among certain types of MNC. Most striking was the extent to which MNCs are actively engaged in the management of non-managerial employees at international level. Seven out of every ten companies monitored labour performance across sites in different countries. The broader significance of this finding lies in the business decisions which flow from the use of such information. As MNCs develop continental production strategies, pressures on local workforces, keen to attract future investment, for performance improvements are likely to intensify. These developments pose considerable challenges for labour which remains primarily local and national in its organizational focus.     

“The way that can be told of is not an unvarying way”: Cultural impacts on Operations Management in Asia

This special issue is dedicated to Operations Management (OM) in Asia. A requirement for the special issue articles is that they have content related to the effects of national culture on OM. Here, the OM literature is combined with work from Anthropology and Women's Studies to provide a wide view of the effects of various Asian cultures on OM. The basic premise is that OM decisions may need to take culture into account: some OM practices are altered or precluded by culture, while others are more effective in some cultures than others. Numerous examples are provided involving quality management, shift scheduling, revenue management, facility location, layout, supply chain strategies, and other areas.     

Managing Cultural Diversity in Collaborations: A focus on management tensions

Abstract

This article explores the management of cultural diversity in public and not-for-profit collaborations spanning organizational, professional and national boundaries. Through the framing of a culture paradox, it identifies three interrelated tensions pertaining to the management of cultural diversity towards collaborative advantage. These tensions address: interactions between organizations within a collaboration; interactions between individual actors and their orientation towards the collaboration and their host organization; and the quantity and extent of cultural diversity within a collaboration. The culture paradox and its inherent management tensions provide theoretical and practical conceptualizations that are relevant to management and governance of collaboration.     

Why and when organizational culture fosters affective commitment among knowledge workers: the mediating role of perceived psychological contract fulfilment and moderating role of organizational tenure

Drawing on Denison and Mishra (1995)’s framework of organizational culture, this study examines why and when organizational culture is related to knowledge workers’ affective commitment. Data were collected from 640 employees working in three high-technology companies in China. The findings indicate that the relationship between organizational culture and affective commitment is mediated by perceived psychological contract fulfilment. In addition, organizational tenure moderates the relationship between two external dimensions (i.e. adaptability and mission) of organizational culture and perceived psychological contract fulfilment. This study extends the current theoretical framework of organizational culture by demonstrating the underlying mechanism and the boundary condition of the relationship between organizational culture and affective commitment. The findings also provide practical implications for international managers to design appropriate human resource management policies and practices in China.     

Triumphs and tragedies: expectations and commitments upon repatriation

Building on and extending the literature on organizational commitment, this study examines the relationship between repatriates' work and non-work-related expectations and their commitment to their parent companies and new local work units after completing international assignments. The results, based on a sample of 174 repatriates and 92 partners within five US multinationals, indicate that positive, linear relationships exist between certain work and non-work expectations and commitment to the parent company and local work unit, while significant, nonlinear relationships exist between other expectations and these commitments. These results have both theoretical and practical implications, which are discussed.     

The role of leadership in successful international mergers and acquisitions: Why Renault‐Nissan succeeded and DaimlerChrysler‐Mitsubishi failed

This article compares and contrasts the Renault‐Nissan and DaimlerChrysler‐Mitsubishi mergers to consider the relative and combined effects of national and organizational culture on the performance of Nissan and Mitsubishi. It also examines the reasons why the Renault‐Nissan merger was successful and the DaimlerChrysler‐Mitsubishi merger failed. It finds that Japanese national culture influenced organizational culture and HRM practices, which created organizations that had no sense of urgency, profit orientation, or accountability and led to poor market and financial performance. It also finds that leadership was a major factor impacting on the success of the turnaround efforts of these two organizations. These findings have implications for leaders and human resource management practitioners engaged in international business and are of particular relevance to Western organizations working with organizations in high‐context countries with a collectivist rather than individualist orientation. © 2012 Wiley Periodicals, Inc.     

Does organizational culture play a role in the development of psychological distress?

The aim of this article is to analyze the extent to which organizational culture contributes to the symptoms of psychological distress in the workforce. Integrating organizational culture and work organization conditions makes it possible to examine how culture is associated with the various components of work organization conditions, and how these conditions might relate to symptoms of psychological distress in employees. Data from the SALVEO study were collected in 2009–2012 from a sample of 1824 individuals nested in 60 Canadian workplaces. Multilevel regression models were used to analyze the data. After controlling for individual and family characteristics, only group and rational cultures were associated with psychological distress, but both type of organization cultures were mediated by work organization conditions. Group culture is indirectly associated with lower levels of psychological distress since it favors lower levels of psychological demands and job insecurity. Rational culture is indirectly associated with higher levels of psychological distress because it favors higher psychological demand levels. The results obtained highlighted the importance of including variables relating to broader organizational context in models examining stress in the workplace.     

The role of project management maturity and organizational culture in perceived performance

This study investigates whether project management maturity (PMM) relates to perceived organizational performance and how an organization's cultural orientation is a contributing factor. Perceived organizational performance is defined as project effectiveness and efficiency followed by resulting business performance. A survey‐based research was conducted with 86 project professionals from various U.S. service and manufacturing organizations. The study revealed that PMM is significantly related to business performance but not to project performance. Furthermore, while clan organizational culture is a sole contributing factor for project and business performances, PMM interacts with market culture in improving business performance. This study shows that in order to deal with project time, budget, and expectations issues, an organizational culture change toward sharing, collaboration, and empowerment is a must. Furthermore, an increasing project management maturity along with a results‐oriented organizational culture improves an organization's competitiveness, resulting in cost savings and increased sales. PMM efforts are therefore crucial. PMM accompanied by an understanding of cultural orientation is a best strategy for today's project‐based organizations.     

Differences in Perceptions of Human Resource Development Across Countries

Abstract

This study sought to determine whether managers within a multinational enterprise (MNE) differed in their perceptions of selected human resource development practices in their organization. The study also sought to identify whether the managers' perceptions could be clustered by the countries in which they reside. The study was based on cluster research studies that have been conducted in the field of cross-cultural management. Cluster research has suggested that systematic differences in an individual's perceptions of organizational variables can be expected to occur, which are based on culture and national identity. The results of this study showed that differences in perceptions about human resource development existed among managers and that the managers' responses could be clustered into five relatively distinct country clusters.