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This book focuses on the cultural challenges often faced by international managers and global business operations. In the last few decades, the world has witnessed unprecedented economic turmoil, volatility, and uncertainty which has altered the political dynamics and sociocultural landscape around the globe and directly or indirectly affected international business activities. Further, new markets have opened up in every corner of the world. Brazil, Russia, India, and China, collectively known as BRIC, are strong emerging economic powers similar to the once captivated ‘Asian Tigers’ such as Hong Kong, Singapore, South Korea and Taiwan which rose decades ago. The emergence of these markets has heightened both the opportunities and challenges for national and international businesses. Multinational firms are gradually expanding in the emerging markets and are expected to become giants in the foreseeable future. As they expand, they also need to assume increasing social responsibilities in a global context, and it is important that the ways business is conducted are developed accordingly. As such, understanding the practices, challenges, and strategies that companies have developed is critical to global firm’s success. Against this background, the book highlights the importance of understanding cultural elements when managing multicultural human behaviors in the workplace. Based on conceptual and empirical work, it pushes the frontiers of knowledge of this emerging field in international business setup and management, and explores how globalization is changing the way in which multinational firms formulate their business strategies.

“The editors of this text bring a wealth of expertise in this area, as is evidenced by their choice of topics, and the strength of the experts they have invited to contribute to the book. The combined chapters provide both strategic guidance as well as a focus on operational concerns that may arise in international business including expatriation and human resource mobility. The authors not only correctly identify the oncoming challenges, but also present evidence regarding the likely solutions such as culture and innovation and global change management. Overall, this book will be a tremendous resource for scholars in the international business field, but I believe the audience will be much wider. The international team of editors and authors bring a wide range of perspective as well as real-world contextual knowledge that will be useful for scholars and practitioners who seek to leverage culture and human capital to advance international business and drive the global economy. I applaud the editors for their vision and leadership in guiding us through one of the most challenging contemporary research areas and through one of the most pressing challenges of our day.” -Dr. Richard L. Griffith, Executive Director, Institute for Cross Cultural Management, Florida Institute of Technology, Melbourne, FL, USA



Chapter 1. Advancing Cultural Frontiers to Champion Global Business in Emerging Markets

The introductory chapter highlights the trends in global business by taking stock of the past millennium. With such exploration, the chapter projects the promises of the global business opportunities that lie ahead of us across the world and beyond cultural boundaries. The challenges for tomorrow will also be discussed in light of lessons learned observed in the past, as well as organizational accomplishments and best practices that are observed in the current state of business operations based on the following three different sections.
Norhayati Zakaria, Asmat-Nizam Abdul-Talib, Andrea Amelinckx

Practices, Norms, and Diversity in Multinational Corporations


Chapter 2. Work in Progress: Organisational and Occupational Identity Work of South African Employees After Firm Acquisition

Firm acquisitions usually result in low employee identification with the organisation involved. Strategically and financially this places the organisation at risk as conflict may increase while performance and motivation may decrease during the post-acquisition phase. This chapter investigates the organisational and occupational identity work of managers, administrative staff and blue-collar employees during an acquisition. The objective is to establish if organisational and occupational identity work is the same in respect of employees at different levels and to provide insight into the organisational and occupational identity work of employees at different levels during post-acquisition integration. Acquisitions can be especially difficult if the firm operates in a Third-World country, such as South Africa, and its top managers are from, for example, a Western country because there may be a clash of cultures.
Nasima Mohamed Hoosen Carrim

Chapter 3. “I Am Going Abroad!” Developing Cross-Cultural Sensitivity for Self-initiated Expatriates of Female Registered Nurses in Saudi Arabia

In this chapter, we present the phenomenon of self-initiated expatriates among the Malaysian female registered nurses in Saudi Arabia. The primary objective of this chapter is to explore the need for building cultural sensitivity as a cultural skill for female nurses who work in Saudi Arabia by understanding the challenges of Malaysian expatriate female nurses in Saudi Arabia, who are faced with numerous culturally rooted problems. Additionally, the paper seeks to understand the process of cultural adjustment and acculturation process among Malaysian expatriate female nurses during the period of expatriation and to develop cross-cultural sensitivity based on cross-cultural adjustment theory. The chapter will also provide a brief literature review, theoretical framework, and proposed methodology, and finally the chapter concludes with the theoretical and practical implications of this research.
Bibi Noraini Mohd Yusuf, Nasriah Zakaria

Chapter 4. Trust and Cultural Preferences of Global Consumers for Airbnb Patronage: A Qualitative Study of MENA Consumers

As a sharing economy involves both social and cultural factors, it has become more important to understand the impact of trust in the sharing economy in the context of national culture. Culture has not been extensively studied in e-commerce, either in general or in the sharing economy. Although sharing economy and other forms of online commerce bypass national and geographical boundaries, the trusting behavior differs between cultures. This chapter aims to explore the influence of cultural preferences on the trust inculcated by global consumers when they decide to adopt and embrace the sharing economy as way of life. The goal of the study is to understand the effects of two relevant aspects of cultural values (Hofstede’s cultural dimensions of uncertainty avoidance, individualism versus collectivism, and indulgence versus restraint on trust formation) toward Airbnb among global consumers in the Middle East region. An overarching research question is posed: How does culture affect trusting behavior of consumers in the sharing economy in the Middle East and North Africa (MENA) region?
Heba Abusedou, Norhayati Zakaria

Challenges and Issues of Global Business


Chapter 5. Cultured Crime of Obedience and Fraudulent Financial Reporting in the Time of Crisis

Motivated by “inability thesis,” this chapter examines the role of culture and human behavior in the context of Fraudulent financial reporting. Our study shows how the culture was used and abused in an environment where ethical decisions were replaced with the need to portray “business as usual” when in fact, the corporation was collapsing. In Toshiba’s case, the top management institutionalized various inappropriate accounting treatments directly and indirectly through their subordinates’ understanding (and/or misunderstanding) of what was expected of them, the crime of obedience. The findings suggest that the unspoken language of group mode behavior expedites the instinct for survival. Though cultural limitation and cultural upbringing do not exempt individuals from their responsibilities, the understanding of how the “local” managers place cultural importance in decision-making could offer the “international” managers culturally attuned strategies in managing global corporations, especially in the time of crisis.
Radiah Othman, Rashid Ameer

Chapter 6. The Role of Gig Economy in Supporting SME Internationalisation

Small and medium enterprises (SMEs) play a major role in most economies, particularly in emerging countries where SMEs contribute up to 60% of total employment and up to 40% of GDP. One of the consequences of this has been the growing internationalisation of SMEs. However, small firms are characterised by a lack of resources in key areas such as financial, managerial, and social capital. So SMEs may not have the prerequisite managerial resources to internationalise, nor the luxury of unlimited time in which to acquire such resources. This requires that SMEs need to access resources swiftly through collaboration with other entities. “Gig economy” could play a role which is providing solution to the SMEs. The gig economy is comprised of a set of freelance individuals who typically offer their services for a short period of time. With the dawn of knowledge economy, the popularity of on-demand short-term jobs is increasing. Such decision is not risk-free as the notion of power, and dependency plays a critical role in the company–supplier relationship. Using the four theoretical lenses—agency theory, resource-based view (RBV), resource dependency theory and transaction cost theory—this paper tries to evaluate the impact of gig economy on SME’s ability to access resources effectively.
Samar Kal Youssef, Arijit Sikdar

Chapter 7. Cross-Cultural Collaboration Mechanisms that Facilitate Global Innovation Success for MNCs

An increasingly multicultural and digitally connected business environment requires organizations to successfully orchestrate innovation across countries. The inability of leaders and teams to effectively collaborate and share relevant knowledge can affect international market performance. How can organizations address these concerns and optimize multicultural team collaboration in order to strengthen global innovation management capabilities? This chapter presents a framework for facilitating multicultural collaboration in achieving organizational performance and international market success. It identifies the organizational mechanisms and routines that influence knowledge-sharing and collaboration for the planning and execution of global product launches. Key findings are based on a qualitative study on global innovation and cross-cultural collaboration involving 105 global and regional project leaders at 36 MNCs with headquarters based in Asia, Europe, and North America.
Karina R. Jensen

Implementing Strategies for Global Businesses


Chapter 8. Non-pecuniary Factors Influencing Diaspora Homeland Investment

This study attempts to provide a theoretical outline of the non-pecuniary factors influencing diaspora homeland investment. It presents the findings of previous scholars on non-pecuniary motivational factors that drive diaspora homeland investment decisions. Moreover, the study suggests other additional non-financial motives that nurture homeland investment decisions. To identify the non-monetary motivational factors influencing diaspora homeland investment, a comprehensive literature review on the perspectives of previous scholars was conducted. The study presents the analyses and findings of multiple scholars who studied diaspora investment motives. Although studies have suggested altruism, emotional satisfaction, and social status to be the primary motives, little is known about the non-economic motivations of diaspora homeland investment. Therefore, this study offers additional motivational factors to help broaden the understanding and provides an overview of the non-pecuniary factors that drive diaspora homeland investment intentions. It offers a comprehensive explanation of the topic, such as the background of diaspora investment, entrepreneurial activities, and general contributions to their home country. The study also presents recommendations for future studies.
Mohamed-Abdullahi Mohamed, Asmat-Nizam Abdul-Talib

Chapter 9. Muslim Youths’ Satisfaction Toward Muslim-Friendly Hotels: Examining the Effects of Hotel Image, Brand Image and Employee Performance

This paper aims to examine the effects of hotel image, brand image and employee performance on customer satisfaction of Muslim youths during their leisure stay in Muslim-friendly (MF) hotels in Malaysia. Self-administered questionnaires measuring hotel image, brand image, employee performance and customer satisfaction on a five-point Likert scale were distributed to 300 tourists in four prominent hotels in Kuala Terengganu. The data is then analyzed by multiple regression using SPSS software. The results indicated that hotel image and employee performance were found to be significant factors in predicting Muslim youth’s customer satisfaction of their hotel accommodation and hospitality services in MF hotels. However, brand image was found to be an insignificant predictor to their satisfaction. The sample of this study was limited to only Muslims, and mainly students. However, this does not suggest that students should be ignored in terms of their purchasing power and preference. Future studies may want to include other consumer segments and examine other MF hotels or hotels with similar concepts in countries interested to tap on the Muslim tourists, for example, Japan, China and Korea among others. Malaysia is known to be an MF destination among tourists from many parts of the world. By understanding Muslim consumers’ expectations, the performance of hotel employees and hotel image can be utilized by hotel operators worldwide to enhance their marketing strategies.
Samshul-Amry Abdul-Latif, Nur Adilah Adnan

Chapter 10. Inside Corporate Innovation: A Study of Team Leader Experiences and Strategies During the New Venture Development Process

This chapter explores an area of new venture management that has received limited research attention. The primary focus centers on how successful new venture team leaders experience the management of their new venture teams (NVTs). Areas examined include interorganizational relationships between the new venture and the parent organization; managing relationships and expectations with senior management sponsors; challenges encountered during the development of the new venture; and major lessons learned from leading a new venture team. All new ventures studied were considered successful by the CEO or other senior managers in the parent or host organization. To assist the reader in understanding challenges new venture leaders face, several quotations or “voices from the field” are used to help amplify our findings. Several directions for future research on managing new ventures are presented.
David L. Wilemon


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