Multinational companies (MNCs) are significant today because they work in many places and affect the economies and cultures of those places. This talk’s primary goal is to examine how MNC acts have profound cultural effects. Vaara et al. (2021) say that we need to know about these effects to fully grasp how MNCs change traditional ways of life worldwide.
We all share the same views, ideals, and habits regarding business. This idea is essential for multinational companies (MNCs) because culture affects everything, from how to talk to people to how to deal with them. Christofi et al. (2021) say that when MNCs do business worldwide, they need to be aware of different cultures and know how to deal with them.
MNCs lead the way in getting people from different countries to work together. They bring in people from different countries to make things more open and to make global teams that find new ways to fix problems. Many people have said nice things about IBM’s attempts to be more diverse. This shows that diversity can help all over the world.
MNCs have to deal with many cultural problems, like employees who speak a different language or are managed differently. When they do things wrong in their culture, it can significantly affect how people see them. Australia is not a good market for Starbucks because they need to understand how coffee is made there. When you do business worldwide, this shows how important it is to understand other countries.
If MNCs want to do well worldwide, they need to find good ways to respond to different cultures. In order to do this, businesses need to change how they work to fit the cultures of the places they are in and set up cultural training programs. If you want to do what Buccieri et al. (2020) says, you should change your food and marketing to fit Chinese tastes; KFC did a great job of it in China.
When MNCs come to a place, they bring new ideas and ways of doing things that change society. However, this can make people worry that their culture is being lost. Walmart’s entry into Mexico is an example of a business that both helps the economy and makes people worry about losing their culture. This is a tough case that needs to be treated with care.
MNCs have moral issues when they try to make money and follow state rules simultaneously. Yunet et al. (2020) say they need to be moral in places with different customs. The Unilever sustainable living plan is one way the company tries to meet its business goals and its moral obligations to local cultures.
MNCs need culture-savvy people because they need people who can work well with people from other countries. Businesses that do business in many countries, like Accenture, show how important it is to hire people who understand other cultures. This is an essential part of business abroad that can be learned through schooling and real-life experience.
How MNCs plan for the future will depend on how new technologies change how businesses work. Companies like Google are using AI to figure out and predict cultural trends. This helps them get ready for problems that might arise in the future. This kind of strategy planning is essential when you do business across borders, where things are constantly changing.
Finally, in our globalized world, knowing how MNCs change societies and what that means is very important. They have changed societies worldwide in many significant and different ways. This talk shows how MNCs will change future cultural landscapes and stresses the need to keep learning and responding to these changes.
References
Buccieri, D., Javalgi, R. G., & Cavusgil, E. (2020). International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities. International Business Review, 29(2), 101639.
Christofi, M., Vrontis, D., & Cadogan, J. W. (2021). Micro-foundational ambidexterity and multinational enterprises: a systematic review and a conceptual framework. International Business Review, 30(1), 101625.
Vaara, E., Tienari, J., & Koveshnikov, A. (2021). From cultural differences to identity politics: A critical discursive approach to national identity in multinational corporations. Journal of Management Studies, 58(8), 2052-2081.
Yun, J. J., Zhao, X., Jung, K., & Yigitcanlar, T. (2020). The culture for open innovation dynamics. Sustainability, 12(12), 5076.
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