Chapter 37: Culture-Sensitive Global Strategies

Mikhail V. Grachev & Mariya A. Bobina

Culture-sensitive global strategies In this era of globalization, more companies than ever engage in multinational transactions, cross-border trade, international joint ventures, and mergers and acquisitions. They seek competitive advantage by accessing locations, facilities, and customers in different countries and by coordinating activities in the value chain across national borders. While economic considerations create a basis for strategic decision making when determining where, in which countries to locate research, manufacturing, supply chains, or distribution, they are not sufficient for sustainable international growth of a firm. The nature of globalization dictates additional considerations when designing and implementing corporate strategies, namely the cultural environments in different countries. If a company understands national cultures, it can increase local responsiveness to customer needs, strengthen relations with stakeholders in host countries, and develop the most effective leadership behaviors in those cultures. However, this practical approach in turn depends on the ways in which a firm perceives ...

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