Accelerating Cultural Dimensions at International Companies in the Evidence of Internationalisation

Abstract

The research goal is to investigate whether several cross-cultural dimensions proposed in the Hofstede cultural model link international companies and their affiliations operating in Scandinavia and Baltic countries. Although cultural aspects have got much more attention in internationalisation studies over the last decade, there is still room for research focusing on such study areas. The authors start with the analysis of the literature review. Presenting the holistic approach affecting internationalisation and a list of factors necessary for internationalisation, later on, the authors present the cultural dimension of Hofstede, and then give various qualitative methods applied for studies on internationalisation. Design/Methodology/Approach: To complete the research, the authors selected the database from Nasdaq (2021), listed MNE companies from six countries: Denmark, Norway, Sweden, Estonia, Latvia and Lithuania. The mother company is located in Scandinavia, and the daughter company is in the Baltics based on FDI flows. The author’s research included 56 MNE companies from Nasdaq Baltic stock exchange. We used the correlation matrix to support the research and present the direction of identified connections to proceed with it. Findings: Obtained results revealed that there are strong links among several cultural dimensions. The results show seven positives and four negative links when discussing cross-cultural links. This finding shows that talking about intercultural relations, only four out of six Hofstede cultural dimensions have at least one strong connection operating business internationally. Originality/Value/Practical implications: The authors identified that some cross-cultural dimensions could not be analysed further because they do not have significant links. The limitations of the study and further research directions are also provided.

Cultural differences on work relations in Chinese companies operating in Ghana: A cross-cultural study of Chinese and Ghanaian workers

“…The attitude of the workers demonstrates how important organisational culture is as well as the significance it plays in the cultural disparities that exist between different countries. This demonstrates that multinational firms operating in other countries needs to pay attention to the importance of their organisational culture because it plays a vital part in achieving overall organisational performance [ [43] , [44] , [45] ].…”

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“…A review of the literature on the subject indicates that the PDI, IDV and MAS cultural dimensions are underrepresented relative to the remaining values. However, according to the table below, the IVR dimension has been the least occurring theme in Hofstedeinspired research (Leonavičienė & Burinskienė, 2022). Although Table 2 concerns research on internationalisation, it provides an interesting view of the popularity of each cultural dimension among researchers.…”

“…Although Table 2 concerns research on internationalisation, it provides an interesting view of the popularity of each cultural dimension among researchers. Source: Leonavičienė and Burinskienė (2022).…”

Influential dynamic capabilities and small and medium enterprises' internationalization success: mediating role of international entrepreneurial orientation

“…These authors suggested that the existing internationalization theories could be enhanced by including the dynamic capabilities perspective, thus providing a new dimension to the related literature. In addition, Teece (2018) and Leonavičienė and Burinskienė (2022) stated that the dynamic capabilities approach could be further improved compared to the recent dynamic-abilities-based contributions. When companies internationalize, there is a need to balance the exploitation and exploration capabilities (ambidexterity).…”