Cultural Environments
National Culture: What is culture?
▲Pattern of shared basic assumptions that a group has learned, external
adaptation and internal integration
▲Culture = Artefacts + Systems and values + Truth
Dimensions of culture:
• Ethnocentric- orientated around home country
• Polycentric- orientated around host country
• Geocentric – global approach
National culture: Cultural Differences
“Cultural Distance”
• Geographic distance: Remoteness from home location of MNC
• Economic distance: Differences in levels of cost, wealth, prosperity
• Administrative distance: Differences in ways of organising
• Institutional distance: Differences in structures and regulations
• Linguistic distance: Communication challenges
• Cultural distance: “Foreignness” / Differences in cultural values
(encompassing much of the above)
Impact of Cultural Distance on Internationalisation
