Guidelines in the Adaptation of Business Models to Different Markets in the Context of Globalization

Rãzvan Rãdulescu () and Florin Tîrla ()
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Rãzvan Rãdulescu: The Bucharest University of Economic Studies, Romania
Florin Tîrla: The Bucharest University of Economic Studies, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2014, vol. 15, issue 4, 479-486

Abstract: In the Dynamic environment of the 21st century the vast majority of companies, that expand their operations into new markets, face the challenge of adapting their operations and brand to the particularities of a different region. This adjustment develops in respect to their usage of capital, local talent, institutional culture and the way they are conducting their business altogether. This clash between business culture and the cultural background of a foreign market may have a huge impact on the financial success of a newcomer. Under this pressure, the challenges of harmonizing the internal business philosophy to the geopolitical, economic, social and cultural realities of new markets are raised. In this paper, we propose a theoretical structure that evaluates the main areas in which a change in approach is required, so the business dynamics and focus points (that may trigger maladjustment from the market) of an organization are developed in accordance with the environment. As it is a bi-univocal relation, we will analyze the economic, social and the cultural degrees of influences a company should exert in the context of aligning its activities with the local history, geopolitical influences and cultural identity of the new market. As each company is a bearer of values from a different culture and region, we will also analyze the transfer of national identity. Furthermore, we will analyze the shifts in perception that are required by an emerging market (with strong cultural background) from an organization so it may minimize its image of an economic colonizing force, or to emphasize the organization’s own values, if they are viewed as an economic civilizing force (in markets with a permissive cultural background).

Keywords: Globalization; business model; international business; business adaptation; social and cultural barriers. (search for similar items in EconPapers)
JEL-codes: F01 F60 P00 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:15:y:2014:i:4:p:479-486

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