Theories Explaining Relationship Between Headquarters and Subsidiaries

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Headquarters How useful are theories of convergence, divergence and crossvergence in explaining the complexities of relationships between headquarters and subsidiaries? The various theories are providing a way for firms to understand cultural differences and address these issues. This is achieved through utilizing these strategies in conjunction with one another to comprehend the root causes of the problems and introduce solutions to them. When this happens, a neutral culture is established that is taking into account numerous traditions and theories. These different ideas are providing an avenue for dealing with the complex relationship that exists between headquarters and their subsidiaries. This is the point that everyone can communicate and collaborate on a host of issues (using a culturally neutral perspective). (Janssen 2009) (King 2009) How is this theoretical framework similar to or different from other cross-cultural management frameworks which you have studied in this module? The theoretical framework is focusing on using similar tools and tactics in order to reach out to a larger group of individuals. This designed to enhance everyone's understanding of cultural attributes and what are most relevant inside the workplace. It is at this point when select traditions can be combined with the home country's practices and company policies to create a neutral environment. (Li 2010) This is similar to the virtual knowledge model. Under this approach, Li (2010)

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