In order to counter the arguments put forward by Palich and Gomez-Mejia regarding cultural diversity it is important to define the main issues in the debate. In order to address the issues, it is essential to begin by defining what is meant by culture in this context. On establishing what is meant by culture, (particularly in relation to business), a brief overview will then be provided on the differences between cultural similarities and cultural diversities, this will take into account the different methods used to measure culture, including Hofstede's model, finally, a review of the literature will be undertaken to ascertain if cultural diversity is beneficial in global firms.
Definitions of Culture
Culture is the acquired knowledge people use to interpret experience and generate behavior (Spradley, 1980) take from "Social Responsibility in the Market: Fair Trade of cultural products" by (Littrell and Dickson, 1999).
[...] IMPLICATIONS: Again we see the value of cultural diversity in the area of marketing from the Yadong article the evidence seems to present the theory that Asian multinationals are much better informed of the marketing tactics of the countries they do business with than ‘Western Countries', the reason according to Yadong is to do with Guanxi (social structure), it is his belief that if western multinationals were to adopt this culture style they could gain a competitive advantage over their competitors in the Chinese market. [...]
[...] "The Influence of Cultural Diversity on end-of-life-care and decisions." The American Behavioral Scientist 46.2 (2002): 204 Wood, YR, Darling, JR, Siders, M. "Consumer desire to buy and use products in international markets." International Marketing Review 16 (1999): 3 Yadong, L. "Dimensions of knowledge: Comparisons of Asian and Western MNEs in China." Asia Pacific Journal of Management 16.1 (1999): 75 Yadong, L. "Guanxi and performance of foreign invested enterprises in China: an empirical enquiry." Management International Review 37 (1997): 51 Yang, BR, Ahmadi, RH, Monroe, KB. [...]
[...] "The importance of cultural framing to the success of social initiatives in business." 17 (2003): 70-87. Kapelus, P. "Mining corporate social responsibility and the community: the case of Rio Tinto, Richard Bay Minerals and the Mbonambi." Journal of Business Ethics 39 (2002): 275-297. Kemper, CL,. "Global Trainings critical success factors." T and D Alexandria 52.2 (1998): 35 Lam, L. "Organizational Learning in Multinationals: R&D Networks of US MNEs." Journal of Management Studies 40.3 (2003): 673 Li, Kora Kowsky, Lam, K. [...]
[...] Global firms operating with cultural diversity keeps the money rolling in from consolidation of markets, rigorous efforts to reduce costs and improve management and distribution and a forward looking approach to growing sales. Ireland's economic success is largely due to many large multinational organizations such as Dell, Intel, Boston Scientific, Xerox, Hewlett Packard, Warner Lambert all global firms dealing with cultural diversity that have established factories in Ireland, (Gretchen, 2001; Hanigan and Mangan, 2001). Hundreds of mid-size companies with smaller bureaucracies place 5 key lessons on their success in dealing with cultural diversity in the rapidly evolving global market Keep focused 2. [...]
[...] The need for a comprehensive, cohesive, and universal code of conduct for multinational corporations doing business internationally is paramount as it can help foster business contacts around the world, resulting in a facilitation of trade and an increase in profit (Payne, Raiborn and Askuik, 1997). Levi Strauss have set standards for working conditions in their foreign manufacturing facilities. Richard Woo a Levi company spokesman stated that in so doing it would help them meet their overall mission, which is to achieve responsible commercial success (Cottrill, 1996). [...]
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