When same is (not) the aim: A treatise on organizational cultural fit and knowledge transfer |
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| Affiliation: | 1. Stockholm School of Economics, Box 6501, 11383 Stockholm, Sweden;2. Uppsala University, Box 513, S-75120, Uppsala, Sweden;3. Aalto University School of Business, P. O Box 21210, 00076 Aalto, Finland;4. Chinese University of Hong Kong, Hong Kong;1. The University of Akron, Department of Management, College of Business Administration, 259 South Broadway, Akron, OH 44325, United States;2. Lehigh University, Department of Management, College of Business and Economics, 621 Taylor Street, Bethlehem, PA 18015, United States;1. Northeastern University, D’Amore-McKim School of Business, 360 Huntington Avenue, Boston, MA 02115, USA;2. King’s College, Department of International Development, London, WC2R 2LS, UK;3. Butler University, Lacy School of Business, 4600 Sunset Ave, Indianapolis, IN 46208, USA;4. INCAE Business School, Campus Walter Kissling Gam, Alajuela, Costa Rica;1. School of Business, Trinity University,One Trinity Place, San Antonio, Texas, TX78212, USA;2. Department of Management Science and Statistics, College of Business, University of Texas at San Antonio, One UTSA Circle, San Antonio, Texas, TX78249, USA;1. University Of Sussex, Jubilee Building, Brighton BN1 9SL, United Kingdom;2. School of Business and Law, University of Agder, Kristiansand, Norway;3. Research Institute of Industrial Economics, Stockholm and Knut Wicksell Centre for Financial Studies, Lund University, Sweden;1. College of Business, Florida State University, Tallahassee, FL 32306, United States;2. Jesse H. Jones Graduate School of Business, Rice University, Houston, TX 77005, United States;3. Korea University Business School, Seoul 136-701, South Korea;4. City University of Hong Kong, 12-200, Lau Ming Wai Academic Building, Hong Kong;5. Farmer School of Business, Miami University, Oxford, OH 45056, United States |
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| Abstract: | Multinationals (MNCs) need to find the balance between developing a globally standardized organizational culture and having multiple locally- adapted organizational cultures. Past literature embodies the bias that differences between MNC units, unless managed, would lead to adverse consequences. To counter this negative bias, we focus on cultural fit, which is the amount of difference yielding maximum benefit. We argue that depending on comparison criterion and desired outcome, fit could be achieved by establishing similarities or maintaining differences. Using evolutionary economics, we explore knowledge transfer within MNCs and test our hypotheses on fit using a unique dyadic dataset from 186 MNCs. |
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| Keywords: | Cultural distance Cultural differences and similarities Cultural fit Knowledge transfer Organizational culture |
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