Cultural Differences And The Management Practices

2840 Words Sep 18th, 2014 12 Pages
Cultural differences and the management practices and processes of a firm frequently differ across national and international boundaries, as managers increasingly find themselves working across cultures, the need to understand these differences has become increasingly important (Nardon, SanChez-Runde & Steers, 2010). There is also a need not only to appreciate that cultural differences exist but also to appreciate what such differences mean for international business. International business differs from national business due to the profound differences in social structure, religion, language, education, economic philosophy and political philosophy (Hill, 2013). The different extents to which organisational practices are adapted to the national context results in the observed divergence of practices across nations (Brennan & Vecchi, 2009). The divergence hypothesis proposes that an internationalising firm must conform to the national and cultural beliefs of the host country and a universally applicable business practice is neither suitable nor practical in such situation. According to this perspective, any organisational practice must be adapted to the national context to maximise its effectiveness and failure to do so can lead to the long-term failure of a business venture (Brennan & Vecchi, 2009). The divergence theorem reflects the importance of national cultural as cultural differences remain persistent but this thesis also presents an array of important challenges and…
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