Discovering inter‐cultural perceptual differences in MNEs

Abstract

Firms across the globe are often directly or indirectly reliant on foreign direct investment, often through the development of a “joint venture”. Moreover, such cash flows sustain much of a nation’s economic activity. To support the operation of these firms it is becoming accepted that learning about the host culture has a role to play in their betterment. However, there is a lack of understanding of how enjoining cultures might collide in the daily execution of conjoint management practices; and further, how such conflicts may be resolved. Generally, the authors suggest enterprises should become “cultural literate” to improve their understanding of exchanging or brokering knowledge between peers within the firm, or through linking with individuals in other firms. The bulk of the paper concentrates on West‐East differences, questioning how these may affect managers in the multinational enterprises given their espoused concern for an effective exchange of knowledge.

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