Francesco Calza, Nadir Aliane and Chiara Cannavale
The purpose of this paper is to analyse the positive effects of cultural bridges on European firms’ internationalization to SMCs and MECs. We analyse the meaning and the role of…
Abstract
Purpose
The purpose of this paper is to analyse the positive effects of cultural bridges on European firms’ internationalization to SMCs and MECs. We analyse the meaning and the role of managers’ cultural competence in order to understand if and how it contributes to the formation of effective cultural bridges.
Design/methodology/approach
Given the few contributions existing on the topic, and the lack of a general theory, a multiple case‐study analysis seems appropriate to the topic. In particular, we present five case studies of European large firms, which have successfully internationalized in SMCs and MECs. In each firm, we interviewed local and foreign managers, in order to understand the importance of cultural issues and the ways companies overcame cultural distance.
Findings
Cultural distance is a big problem for European firms investing in SMCs and MECs. They impact both intra‐ and inter‐organizational relationships and cultural bridges can be useful to overcome the effects of its perception. Cultural bridges are effective if based on managers’ cultural competencies, and can be represented by a specific manager, or by an organizational unit. In any case, the involvement of local people and the adaptation to local customs are crucial.
Research limitations/implications
The analysis is still limited, and, in the future, we’ll look for a methodology able to isolate cultural knowledge and cultural competence as key factors in order to evaluate the importance of each factor.
Practical implications
When entering Islamic countries, foreign investors should be aware of local values, particularly religious and family value, which deeply impact on business and social relationships. Based on a deep cultural knowledge, cultural bridges enable fruitful relationships both inside and outside the organization.
Originality/value
Whereas cultural competence is often mentioned in the literature, only a few contributions focus on cultural competence as a key aspect of internationalization. In addition we explore the concept and the relevance of cultural bridges, and the multiple case‐study analysis show some best practices firms could follow to succeed in SMCs and MECs.
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Francesco Calza, Nadir Aliane and Chiara Cannavale
The purpose of this paper is to investigate the impact of cross‐cultural differences on Italian firms' internationalization in Algeria, and to determine if performance orientation…
Abstract
Purpose
The purpose of this paper is to investigate the impact of cross‐cultural differences on Italian firms' internationalization in Algeria, and to determine if performance orientation and assertiveness are perceived by Italian managers of local subsidiaries as important cultural dimensions.
Design/methodology/approach
This paper is a qualitative analysis based on a semi‐structured questionnaire and three case studies. All the questionnaires are submitted during an interview in order to clearly explain their purpose and the terms used.
Findings
Cultural differences are strongly perceived by Italian managers operating in Algeria. Algerian culture seems to be characterized by a low degree of performance orientation and a low degree of assertiveness, with strong implications for Italian managers.
Research limitations/implications
The sample is still limited and in the future a quantitative analysis on a larger sample should be done in order to evaluate the relationship between family and religious values, on one hand, and performance orientation and assertiveness, on the other.
Practical implications
While entering Algeria, Italian firms have to be aware of cross‐cultural differences. Algerians' low performance orientation and assertiveness discourage local workers to reach higher standards and to improve performance, and they impact on Italian managers' capability to give instructions and to motivate local workers. The involvement of local managers is crucial in overcoming these problems.
Originality/value
While interest towards Southern Mediterranean countries is increasing, there is little written on this topic. The impact of performance orientation and assertiveness on firms' internationalization has not been investigated so far.