Reception and Recontextualization of Corporate Values in Subsidiaries

Martine Cardel Gertsen and Mette Zølner

Chapter 9 in Global Collaboration: Intercultural Experiences and Learning, 2012, pp 137-150 from Palgrave Macmillan

Abstract: Abstract There is widespread belief that a globally shared set of corporate values is a viable managerial tool and a unifying force in a multinational company (MNC) (Welch & Welch, 2006). Therefore, many MNCs consider the transfer of such values to be crucially important when they buy or establish subsidiaries outside their country of origin. For the tool to be efficient, however, the corporate values must not only be transferred to the subsidiary, but also be well received and internalized by local managers and employees. This is a complex process, and literature is inconclusive as to how to ascertain whether values that have proved successful in one context will thrive in another. Some researchers suggest that previous international experience makes the transfer of immaterial assets (values, thought patterns and practices) easier for the company (e.g., Delios & Beamish, 2001), and that ‘cultural proximity’ increases the chances of success (e.g., Kostova, 1999; Kostova & Roth, 2002). However, Brannen (2004) uses the example of the Walt Disney Company’s success in Japan and initial failure in France to illustrate that neither cultural proximity nor international experience guarantee a smooth transfer of immaterial assets. Therefore, although there is some research on attempts by MNCs to transfer immaterial assets such as corporate values to different host-country environments, we do not yet have a full understanding of the process.

Keywords: Local Manager; Corporate Culture; Chinese Manager; Local Employee; Life Balance (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-02606-4_9

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DOI: 10.1057/9781137026064_9

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