Relationship Between Internal Organisation and National Culture and Institutions

3010 Words Aug 11th, 2008 13 Pages
Relationship between Internal Organisation and National Culture and Institutions
Employing a firm-level research on internal organisation structure, this paper studies the influence of Japanese national culture and institutions on internal organisation design of a Japanese MNEs. I report that some output deriving from features of Japanese national culture and institutions such as collectivism and Long-term orientation have a strong impact on internal organisation, although it does not keep consistency with Japanese national culture and institutions.

Globalisation can be described as the greater movement, which unites the people of the world by combining economic, technological, socio-cultural, and political
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Low savings for retirement is good example of low LTO.

Although there are some criticisms of Hofstede’ cultural dimensions such as Dr. McSweeny’s one, Hofstede’s work has been broadly admitted and employed as a comprehensive framework in the common field of culture and business. (Chapman, 1997)

On the other hand, institutions are tidily defined as the social rules and regulations that make human behaviour interactive, while some institutional theorists consider that institutions is a broad concept including laws, regimes, constraints, as well as national culture considered “informal” institutions (Peng, 2002) Nevertheless, there is another view in reference to the relationship between national culture and institutions. Lewin and Kim (2004) suggest a co-evolutionary perspective, which is that national culture influences on the configuration of institutions by acting as intermediate at national and firm level. In this report, I analyse the possibility of how national culture and institutions affect on firms’ internal organizations in terms of the co-evolutionary perspective between them.

Section Two: Japanese National Culture and Institutions

Japan is a parliamentarian democratic small island country locating East Asia and the official language is Japanese. Despite some religion such as Buddhism and Shinto are believed, the Japanese do not have the official religion. The national character also can be considered to be slightly introverted.1 Lewin (2004) points
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