The Culture And Institutional Structures Of The Home Country

1841 WordsDec 10, 20148 Pages
When globalization was introduced and the movement of international integration was supported by the changes in the economic environment, open the boards and gave the opportunity to the companies to expand their activities all over the world and the rise of multinational corporations commenced. This paper will try to explore the concept of the home country effects, how the culture and institutional structures of the home country can affect the policies and operation of a multinational firm in general and further in which level effects the implementation of training and development within the MNC. The nature of Multinational Corporation does not allow containing a homogeneous structure of policies and practices. As, they operate into many…show more content…
The third, is about the dominance effects, which suggests that companies that are dominant through economic power are considered to have the most sufficient practices and their practices thereafter will often be adopted by other countries. The last of the influences is that of the internal structures. MNCs endorse the local differences and base their structure towards the need of creating synergy with the country of operation. The home country effects can be separated into two categories, effects in cultural level and institutional level. As it was mentioned earlier, the culture of a country, meaning the norms, values and customs, is one of the main obstacle for an international company to overcome. Especially, when there is a great cultural difference between the country from where MNC originates and the host country, as it becomes challenging for a MNC to apply their HR practices and policies. A theory of Hofstede (1980), “dimensions of national cultures” argues about the difference in culture between countries, and as mentioned in the first dimension called “Power Distance” the more unequal the culture of countries the harder to implement the
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