Culture an overused term and international joint ventures: a review of the literature and a case study.
Barger, Bonita B.
ABSTRACT
AOL TIME WARNER, Compac and HP, Enron and Anderson, and September
11, 2001. What do all of these have in common? A confluence of culture.
Today, culture is an overused to term. What is culture? This literature
review of culture and the accompanying exploratory case study of a newly
formed international joint venture provide definition and boundaries for
the discussion of culture and the role of culture in alliances. We have
seen that the concepts of national and organizational culture play an
increasingly dominant role as businesses manage in a global arena. Cross
national and cultural research linking management practices to cultural
differences and providing viable plans and strategies for successful
management are in their infancy.
Key Words: Culture, Strategic Alliances, International Joint
Venture, Literature Review of Culture
INTRODUCTION
As we approach the next century, a major issue facing business
corporations is their ability to compete in a global marketplace.
Expansion into global markets is creating tremendous change in how
corporations do business. The old paradigms of organizational structure,
management, and competition are no longer functional, given the nature
of pressures created by globalization. The opening of the communist bloc
countries, GATT, NAFTA, and September 11, 2001, have created new
business opportunities. Innovative approaches and strategies are needed
in this changing global environment of opportunities.
In order to adapt to a changing global economy, many corporations
are forming cooperative business ventures that use the resources of two
or more companies. These new ventures, called strategic alliances, are a
type of cooperative agreement that has become increasingly popular.
Strategic alliances vary in organizational structure, type, and purpose.
They are seen as ways to increase resources, learning opportunities, and
market share.
International joint ventures (IJV), one type of strategic alliance,
are business enterprises owned by two or more companies that share
resources and skills (Pekar & Allio, 1994). These enterprises have
been increasingly used to create cross-border or cross-national
cooperative business ventures (Geringer & Woodcock, 1989).
International joint ventures, legal entities with one partner firm
outside of the country where the joint venture resides, are widely used
as a means of direct foreign investment (Inkpen & Beamish, 1997).
Numerous websites such as http://jvseek.com-Joint Venture Opportunities
present the potential investor with opportunities for co-development
projects ranging from 250 thousand to 1 billion in Asia, America, Africa
and Europe, are updated daily.
Although, international joint ventures are increasingly popular
with "the number of cross-border deals in 2000 over 4 times the
number in 1997: 9200 transactions vs. 2100 (Levy, 2001), their success
rate is low. Estimates suggest as high as 60% of all alliances end in
failure (Harrigan, 1988; Parkhe, 1991; Cullen, 2002). Numerous articles
such as "New Opportunities versus Old Mistakes" (Fasol, 1999)
highlight the benefits and risks of strategic alliances.
The impact of globalization and creating ventures across national
boundaries requires an understanding of culture. This is especially true
in the management of IVJs. It is conjectured that national origin and
organizational culture play a significant role in the successful
management of IVJs (Cyr, 1994). It is also hypothesized that culture can
influence the timing of entry of ventures, their investment preferences,
and performance (Li, Lam, & Qian, 2001). The bringing together of
two established parent corporate cultures with different believes,
values, and norms located in a country with a different national origin
from one of the parent cultures is bound to create tension,
misunderstandings, and opportunities for learning.
To re-explore the overused term of culture further in alliances, a
brief overview of how scholars have defined culture over time is given.
In addition, a review of the literature highlights national and
organizational culture. International joint ventures and the role of
culture are revisited from the literature. Case study findings from an
IVJ is highlighted to explore the role of culture in one newly formed
joint venture.
CULTURE DEFINED
In order to understand the role of culture in IVJ's, consider
how culture has been defined. The word culture holds multiple meanings
from its Latin roots of "tilling the soil" to the Western
usage of being civilized or "cultured" in the arts, music, or
finer features of life. Hofstede (1991) refers to these traditional
definitions as culture one. Sociologists and anthropologists such as
Kluckhohn define culture in terms of patterns. Kluckhohn (1951) states
that: "Culture consists in patterned ways of thinking, feeling and
reacting, acquired and transmitted mainly by symbols, constituting the
distinctive achievements of human groups, including their embodiments in
artifacts; the essential core of culture consists of traditional (i.e.,
historically derived and selected) ideas and especially their attached
values" (p. 86).
Hofstede (1991) extends this definition by purporting that culture
is learned from one's social environment and is not genetic. He
defines this as culture two, using an analogy from current computer
technology, stating culture is: "patterns of thinking, feeling, and
acting mental programs, or ... 'software of the mind' (p. 4).
Culture is always a collective phenomenon ... the collective programming
of the mind which distinguishes the members of one group or category
from people from another" (p. 5).
Deal and Kennedy (1982) defined culture as the Webster's New
Collegiate Dictionary defines it: "The integrated patterns of human
behavior that includes thought, speech, action, and artifacts, and
depends on man's capacity for learning and transmitting knowledge
to succeeding generations" (p. 4). Kotter and Heskett (1992)
defined culture as the American Heritage Dictionary defines it:
"The totality of socially transmitted behavior patterns, arts,
beliefs, institutions, and all other products of human work and thought
characteristic of a community or population" (p. 4).
In comparison, Schein (1992), defines the culture of a group as:
"a pattern of shared basic assumptions that the group learned as it
solved its problems of external adaptation and internal integration,
that has worked well enough to be considered valid, and, therefore, to
be taught to new members as the correct way to perceive, think, and feel
in relation to those problems" (p. 12).
Schein (1994) contends that once these cultural assumptions exist,
they function to provide meaning to events, make life predictable, and
reduce anxiety. Thus, culture provides meaning and reduces anxiety.
Schein (1992) highlights that not every collection of people develop a
culture and that enough of a shared history is required for culture to
occur (p. 15).
These definitions, while reflecting some differences in terms and
perspectives, are united by common themes. The common themes imply a
collection of patterns, beliefs, and behaviors that are created and
transmitted. Words and concepts such as feeling, thinking, acting,
perceiving, and reacting collectively, appear to connect all the
definitions that have evolved over time.
LITERATURE REVIEW
The focus of this section is two-fold. First, a literature review
of culture is presented as it relates to management in cross-cultural
settings. This review is not comprehensive. Rather, it is intended to
present a beginning foundation. Second, the concept of culture will be
revisited further from the perspective of national origin and
organizations, as presented by Hofstede and Schein. Third, the concept
of culture as it relates to international joint ventures will be
explored from a brief review of literature and findings from a case
study of one new venture.
CROSS-CULTURAL AND NATIONAL RESEARCH
"Understanding cultural environments is critical to the
success of an organization's operations ..." (DeCenzo &
Robbins, 2002, p.6). An examination of twenty-four leading management
journals during the decade of the 1970s showed that "less than 5%
(4.2%) of research articles focused on organizational behavior issues
from a cross-cultural or international perspective" (Adler &
Bartholomew, 1992, p. 552). A more recent review of 28,707 articles from
October 1985 to September 1990 found that the concept of culture was
included 70.6% of the time and that culture "made a difference to
the issues studied" (Adler & Bartholomew, 1992, p. 558).
Culture is important and makes a difference in the management of
cross-cultural alliances. What follows are four cross-national and
cultural studies that asked questions and assessed management variables
that may impact successful alliance formation.
England (1975) conducted a study of individual managers'
personal values to understand their work behaviors in Japan, the U.S.,
Korea, India, and Australia over a ten-year period. Values related to
decision-making, managerial success, and organizational context were
examined. The findings showed that values relate to how managers behave
on the job, are stable over time, and vary by context (i.e., labor
unions vs. others). Similarities and differences were found within and
between cultures. Japanese managers were found to have the most
homogeneous values of the five cultures examined (England, 1975).
Hofstede (1980) conducted a five-year study sampling IBM employees
in forty countries between 1968 and 1972. Power distance, uncertainty
avoidance, individualism, and masculinity were identified as cultural
dimensions. Organizations were found to be culture bound (Hofstede,
1980).
Heller, Wilpert, Docherty, Fourcade, Fokking, Mays, Roig,
Weinshall, and t'Hooft (1981) studied eight countries over a
four-year period. The objectives of Heller et al. (1981) were to shed
light on decision-making processes, participation, and power sharing,
and to link with other research on employee participation, which was the
current controversial debate at that time. The assumption that
successful managers do not use the same method of decision-making in all
circumstances was tested. Across all cultures examined, there were high
average employee participation levels, employees described more
participation than their managers allowed, successful managers varied
decision-making methods to fit the situation, and participation
increased in larger work groups and environments of uncertainty (Heller
et al., 1981).
Hickson, McMillan and Associates (1981) collected data in the 1960s
and 1970s from ten countries. The research tested the general hypothesis
that relationships between structural characteristics of work
organizations and variables of organization context will be stable
across societies. They found that organizational size and parent company
size positively correlated with formalization (the extent to which
rules, procedures, communications, and instructions are written) and
specialization (degree to which activities are divided into mutually
exclusive sets) (Hickson & McMillan, 1981). Thus, the larger the
organization, the more likely that practices and policies will be
written and work activities will be divided among employees.
These cross-national studies of the past two decades present
findings that enhance the understanding of cross-national management
between countries and cultures. The findings that organizations are
culture bound (Hofstede, 1981) and will demonstrate cultural dimensions
of power distance, uncertainty avoidance, individualism, and
masculinity; that their size will determine the extent of formalization
and specialization (Hickson & McMillan, 1981); that managers'
values will drive how they behave on the job (England, 1975); and that
successful managers do not use the same method of decision making in all
circumstances with participation increasing in larger work groups and
environments of uncertainty (Heller et al., 1981) have potential
application to the management of new alliances. They serve as guideposts for the understanding and exploration of current practices and policies
in new alliances.
CROSS-NATIONAL AND ORGANIZATIONAL RESEARCH
The concept of culture is explored further by revisiting the work
of Hofstede (1980, 1991) on national and organizational culture and
Schein (1992) on organizational culture.
National culture impacts how people think, feel, and act in
work-related situations (Hofstede, 1980). In the classic Culture's
Consequences and Cultures and Organizations, Hofstede (1980, 1991)
presents four main dimensions of culture related to work values: power
distance, uncertainty avoidance, individualism/collectivism, and
masculinity/femininity.
Hofstede (1991) defines organizational culture as "the
collective programming of the mind which distinguishes the members of
one organization from another" (p. 180). Organizations are culture
bound (Hofstede, 1980). Organizations have roots bound in rituals,
myths, fairy tales, stories, and ceremonies (Bolman & Deal, 1991).
Organizations are comprised of individuals with differing values. Value
differences or in congruencies are often minimized through the human
resource management process of selection, recruitment, and performance
appraisal. Thus, individual values often reflect the organization's
values and the founder's beliefs. These individual values are
invisible. They are translated and become visible through organizational
norms or ways of doing things. These organizational norms form the
foundation for decision-making and the organization's structure and
processes for managing human capital. The structures and processes
become mechanisms for self-fulfilling prophecies of the
individual's perception of reality and reinforce the values of the
organization.
Schein (1994) expanded the definition of culture and organizational
culture to the global organization. He stated five distinct cultures
functioning in the global arena (i.e., country, industry,
organizational, organization subcultures, and professional/functional
cultures). Country cultures have shared assumptions based on national
and ethnic origins. Industry cultures have shared assumptions based on
technological and social histories of the industry. Organizational
cultures have shared assumptions based on a given organization's
own history, while organizational subcultures have shared assumptions
based on occupational and sub-group histories. These subgroup histories
may be functional, geographically isolated groups, or shared tasks.
Professional and functional cultures have shared assumptions based on
specifics as they relate to a special function or occupation. Schein
(1992) states that all of these cultures are underpinned by levels. The
levels that exist within culture are artifacts, values/beliefs, and
assumptions.
In general, Schein (1992) contends "culture is deep, wide, and
complex" (p. 143). He states that culture is the shared learning of
a given group (Schein, 1992). Cultures are comprised of different levels
or "the degree to which cultural phenomenon is visible to the
observer" (Schein, 1992, p. 16). A group's culture is a set of
shared assumptions (Schein, 1992) that are invisible at the surface.
These assumptions are supported by espoused values and beliefs in the
form of strategies, goals, and philosophies (Schein, 1992, p. 17). On
the surface level, they are manifested by artifacts. Artifacts are the
visible representations of the organization, such as clothing, physical
structure, language, technology, and products (Schein, 1992).
The concept of organizations having or being cultures has received
much publication within the past thirty years. The concept gained public
attention in 1982 following the publication of Corporate Cultures by
Deal and Kennedy. Yet in reviewing the literature on organizational
cultures, Bolman and Deal (1991) contend that applying culture to
organizations is not new. "Several decades ago, Arnold (1938) and
Barnard (1938) moved us below the conscious level of organizations to
capture a deeper, more powerful force in everyday life. Selznick (1957)
and others continued the tradition, but their work failed to capture the
full attention of modern theorists or managers, who for many years
continued to emphasize the rational properties of organizations"
(Bolman & Deal, 1991, p. 267-268). Hofsted (1980) contends that
organizations are culture bound. Organizational cultures are composed of
structures and processes that become self-fulfilling prophecies of the
individuals' perception of reality and reinforce the values of the
organization (Hofstede, 1980, 1991).
INTERNATIONAL JOINT VENTURES AND THE ROLE OF CULTURE
The purpose of this section is to explore the concept of culture in
international joint ventures. This will be approached by a brief review
of literature that relates directly to this topic. In addition, the
findings on the role of culture from an explanatory case study of a
newly formed venture between a Japanese and American manufacturing firm
will be presented.
The role of national origin as it relates to management practices
is well documented in the literature. Hofstede (1980, 1991) illuminates
the importance of national origin and links it to work-related
situations. As we have seen, the concept of culture in organizations is
not new. Authors such as Schein (1992) and Deal and Kennedy (1982) have
explored the concepts inherent in the topic. The current research
findings of Pothukuchi (2002) highlights the differences in national and
organizational culture with international joint venture performance.
"IJVs engage at least three organizations-the IJV and parent
firms-that serve as potential sources of identity" (Salk &
Shenkar, 2001, p. 162). In bringing together two organizational cultures
to form a third culture, as in the case of IVJs, the new venture can
take on characteristics of one of its parent cultures, or create a
unique culture, bringing together elements of both parent cultures
(Hofstede, 1991). Schein (1992) contends that "... some recent data
on joint ventures between parent companies from different countries show
that sometimes the new group forms because one culture comes to dominant
the other, or a new group fails to form because neither set of cultural
assumptions gives way" (Salk, 1992, p. 96).
"IJVs reside at the confluence of different cultures,
including national, corporate, and occupations" (Salk &
Shenkar, 2001, p. 163). This confluence of cultures involves the
transfer of individuals. By transferring individuals, there is a
transfer of organizational and national cultures. The coming together of
individuals with different organizational values, history, myths, and
beliefs creates opportunities for conflict in customs, use of time,
management approaches, language, and ways of working.
"The cultural differences inherent in all forms of
international strategic alliances operate at all levels of culture,
especially the national, business and organizational levels"
(Cullen, 2002, p. 381). The coming together of these cultures involves
the transfer of work-related behaviors. These behaviors are influenced
by the organizational culture's values, norms, and beliefs. The
bringing together of individuals with differences can generate an
"us-and-them" situation, leading to conflict and destructive
forces that can lead to alliance tension and potential failure.
Current research explores Hofstede's uncertainty avoidance
dimension of the investor's culture to cultural distance. "The
results show that an investor's cultural aversion to risk may be
more influential in explaining the propensity for firms from certain
countries to engage in JVs, rather than other cultural factors"
(Fisher & Ranasinghe, 2003).
In addition, the literature also suggests ways of dealing with
these potential conflicts and destructive forces. Cultural synergy is
one way of producing cooperation and collaboration when managing the
impact of such cultural diversity (Moran & Harris, 1981; Adler,
1986). "Cultural synergy is an approach to managing the impact of
cultural diversity, and allows organizations to solve problems
effectively when working within cross-cultural environments"
(Adler, 1986, p. 95). Cultural synergy offers a systematic
problem-solving approach involving situation description, cultural
interpretation, and cultural creativity as a means of working through
cultural diversity (Adler, 1986). The literature also recommends
creating a cultural profile (Slowinski, 1992), developing a clear vision
and norms while acknowledging culture exists and managing it (Slowinski,
1992; Walters, Peters, & Dess, 1994) as strategies for successfully
blending cultures.
In general, the literature on IJVs addresses the importance of
culture; discusses issues associated with the evaluation, compatibility,
and matching of cultures prior to formation of the venture; and
addresses principles and approaches for blending cultures as the venture
is formed.
A CASE STUDY
Background
The organization chosen for the study was the joint-venture of an
American and Japanese company. Joint ventures may be described as the
off spring of two parents. The use of marriage as a metaphor for the
joining or union of two companies to form a joint-venture is not
uncommon in the literature (Lorange, Roos, & Bronn, 1992). The new
venture or child embodies the characteristics and features of the parent
firms. The parent firm's relationship and responsibilities vary
with the new venture based on agreements and contracts cemented in law
and good faith.
In order to understand any child or venture, it is helpful to
understand the parent cultures. A brief introduction to both parent
firms will be presented followed by background on the venture under
study and methodology. All companies will remain anonymous with simple
fictitious names used that are not meant to represent any existing
firms.
American Parent
American Parent is 75 years old with its headquarters located in
the United States and is engaged in the design and manufacture of
industrial products. Since its birth, it has grown and thrived on one
central tenet: serve customers by building high-quality, technically
advanced products. This tradition impacts how American Parent treats
people, the communities it touches, and its customers.
American Parent is a global company with more than one-half of
their operations outside the United States. They are proud of their
25,000 employees and their growing strategic partnerships with strong
companies throughout the world. In 1994, five key objectives drove the
company. These were a competitive advantage, return on equity,
profitable growth, responsible citizenship, and outstanding people.
Although the first three objectives clearly address the business focus
of the company, there is strong recognition that community and people
are the sustaining force as highlighted by responsible citizenship and
outstanding people.
Japanese Parent
Japanese Parent has a 70-year history with its roots in Japan. It
is also a multinational corporation of more than 180 companies with
36,000 employees worldwide. Throughout its history, Japanese Parent has
acquired a large base of technological expertise through manufacturing.
Based on current and future projected market demand and with the
assistance of technological breakthroughs, Japanese Parent is expanding
its capabilities and shifting from hardware to software. These changes
have enabled the company to move into such new areas as electronics,
robotics, and plastics.
Although the Japanese Parent has expanded to meet the global
marketplace in the delivery of products and technologies, they continue
to operate as a responsible corporate citizen. They proudly state the
establishment of "green funds" to support a wide range of
community programs and global environment protection. In addition, they
support and encourage their staff's participation in humanitarian
projects around the globe.
Although the parent firms speak different national languages, the
words they use to describe themselves, their vision and direction are
similar. They are also similar in history, size and attention to
quality. This commitment to product quality, innovation, people and
social responsibility are strong elements that create a natural
foundation for marriage and the birth of new ventures.
Ventures--American and Japanese
In 1993, the two parent firms gave birth to their ideas through the
formation of twin ventures. The parents entered a unique business
agreement, not creating one alliance, but two separate ventures named
American Venture and Japanese Venture, located in American and Japan
respectively. The purpose of these dual joint ventures as stated in the
contract was to "produce world-class (products) for each of the
parties." The venture under study was located in the United States
and will be referred to as Venture C.
The methodology used in this study is a descriptive case study
approach. This is appropriate when limited information is known about an
area of study, for theory development and for study of new phenomena
(Borg & Gall, 1989). The case study approach supports exploration.
It provides rich subjective data that can aid in theory building and
empirically testable hypotheses (Borg & Gall, 1989). As a
qualitative researcher, I studied processes rather than products,
exploring how people make sense of their experiences and their worlds in
a new joint venture.
Parkhe (1993) states that current research in International Joint
Ventures has not joined to form a theoretical structure. Past research
is heavily biased towards multivariate statistical studies that provide
hard data derived from large-scale studies with little research having
been done employing qualitative or case study methods. Parkhe (1993)
proposes a case study methodology when studying unobservable human
processes involved in alliance behavior such as learning and presents a
multimethod, eclectic program to international joint venture theory
development employing multiple data collection methods.
Multiple sources were used to secure data including intercompany
documentation, observation, and interviews. As such, I was able to
triangulate as a means of developing converging lines of inquiry and
identify any elements that were incongruent. Seven informants were
interviewed. They provided perceptions and thoughts about the role of
culture in the new alliance. The presentation of findings are
intermingled with references to the literature that support or contest
the findings. Select informant statements are highlighted with quotation
marks supporting and enhancing emerging themes. These excerpts offer
vivid descriptions of the employees' perspectives. They allow the
reader to make personal judgments, interpretations, and generalizations
to other alliances, settings and culture.
Role of Culture in a Newly Formed Venture
The role of culture was seen as "big," "major,"
and "key" by employees at Venture C. Venture employees
captured the essence of the definitions used by scholars to describe the
impact of culture. Culture was a determinant of "what people think,
expect .. [is the basis for how] they make their decisions and
judgments." Corporate culture was seen as beneficial. "It
allows us to converse with others without having to explain
everything."
Clearly, employees drew lines between national and corporate
culture in their discussion of culture. Several employees highlighted
the two types of culture by stating the differences and influence they
had during the start-up phase. One employee clearly stated it as:
"You have to know each other's culture. Living in the daily
life, they need the American culture. For this business, I don't
care about the American culture--I care about the business culture. Then
I have to eat and go shop and learn about the American culture.
It's important to learn the American culture for my living, but for
the business, it's company culture."
Although the partners are from different national cultures,
employees would frequently discuss the differences between Parent
corporate cultures versus national origin differences between the
American and Japanese cultures. Statements comparing and contrasting
Parent culture were made based on work practices. One employee compared
the differences, highlighting the business planning process: "There
is a major difference in the way Parent B approaches business planning
than Parent A. Parent A does some planning; if conditions change, they
adjust. For Parent B, they plan everything up front, walk down and
don't deviate. There is considerable tension as the joint venture
has begun operating as Parent A operates."
Another employee clearly highlighted the differences between
national origin and corporate culture by talking about the opportunity
to influence through work: "People who have come over see it as
exciting. They are not coming to change America. Work cultures are
different. This is a place to create something unique. They feel that
they have an opportunity and a right to influence that culture."
Culture creation, shaping, and changing is documented in the
literature. Symbolic artifacts, stories, and rituals are used to shape,
change, manipulate, and control culture (Deal & Kennedy, 1982). As
Venture C is evolving, employees are forming and influencing the
creation of its culture bound to and unique from its Parents. The
vision, mission statements, and uniforms are visible signs of the
blending of the two corporate cultures. An employee stated other
non-visible influencers that could impact the emerging culture are the
hiring of competent employees and an open, participative system.
The influence of corporate culture versus national culture in joint
ventures was found by Cyr (1994) as well. This is interesting, as the
literature previously focused heavily on national cultures (Hofstede,
1980, 1991). Cyr (1994) addresses this and suggests that the
"diversity related to national culture may be moderated by
complementary and convergence of the corporate culture and strategic
orientation of the parents" (p. 449).
Another possible explanation for the stated influence of corporate
culture versus national culture is the basic element of time. Employees
spend over one-third of their day in the work culture, while their
families spend significantly more time in the national culture of the
host country. Time spent and familiarity (or lack of familiarity) of the
culture in which one works or lives influences individual perceptions.
The successful blending of cultures was seen as one of the critical
success or potential failure factors related to human resource
management in Venture C. Issues such as cultural incompatibility, lack
of trust, negative group dynamics, and personality differences were
areas that could negatively impact the blending of the two corporate
cultures. While focusing on common goals, "realizing we are on the
same boat," understanding differences, and dealing with
incompatibilities when they arise versus ignoring them were voiced as
means of overcoming potential conflict areas.
The successful blending of cultures depends on people.
Self-education and specialized training in culture sensitivity for
Venture employees is another means of enhancing the blending of
cultures. Austin (1990) contends that this area of Human Resource
Management is generally neglected in international firms. Cross-cultural
training is one area that desires more attention. "Cultural
preparation is preventive medicine; taking it ahead of time can prevent
many serious mistakes later. Japanese companies reportedly give special
preparation to managers going abroad. During the year before going
abroad, they are trained in the language, culture, and business
practices of the country. Upon arrival there, the managers are assigned
mentors to help them understand the local situation and resolve any
problems. In evaluating a manager's performance, the first year in
the country is considered one of learning about the local business
environment. Cultural competence is learnable" (Austin, 1990, p.
354)
In general, parent corporate cultures were frequently voiced as
influencing the start-up of Venture C. This is interesting, given the
focus in the literature on the importance of national origin and the
difficulties in bridging cultural differences. It is conjectured that
during start-up periods, parent work practices are often more
predominate and apparent in everyday activities than national origin
differences. This focus on "how we do our work" versus
"how you do your work" may account for corporate cultures
differences being highlighted above national cultural differences. In
addition, the resolution of cultural differences, be they corporate or
national, were seen as essential for the success of Human Resource
Management in the new venture.
SUMMARY
The purpose of this review is to revisit and provide definition and
boundaries for the discussion of national and organizational culture and
the role of culture international joint ventures. In addition, it
provides findings from an exploratory case study of one newly formed
venture to enhance the understanding and bringing together of two
organizational cultures in IJVs.
It is not intended to be an exhaustive review. It does not address
specific issues and points of disagreement in the literature such as the
definition of culture, how to measure culture, or if organizations
"have or are" cultures. Rather, it provides a general view of
culture and the role of culture in international joint ventures.
The concepts of national origin and cultures will play an
increasingly dominant role as businesses manage in a global arena. Cross
national and cultural researching linking management practices to
cultural differences and providing viable plans and strategies for
successful management is in its infancy. Further research and learning
are required to bridge this knowledge gap.
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