Whereas, traditionally, national culture was seen as the stronger influence on subsidiary employee behavior the balance of influence is now shifting in the direction of corporate culture. Why is this? The Shifting Balance of Influence: Corporate Culture Over National Culture

The Shifting Balance of Influence: Corporate Culture Over National Culture

The influence of corporate culture on the behavior of subsidiary employees is increasingly outweighing the influence of national culture. This shift is largely due to the globalization of the economy and advances in communication technology. The global economy has enabled multinational companies to expand their operations across national borders, leading to a closer integration of international business cultures. Communication technology, such as the internet and social media, has enabled companies to more easily disseminate corporate culture and values to their subsidiaries and employees around the world (Froese and DeWitt, 2018). Furthermore, the decline in importance of traditional national identities has also contributed to the decline in the influence of national culture on employee behavior (Froese and DeWitt, 2018). The importance of corporate culture has become more evident as multinational companies have started to recognize the need for a unified organizational culture across their different subsidiaries (Froese and DeWitt, 2018). Corporate culture can help to foster a sense of unity among employees from different countries and provide them with a shared set of values and expectations (Froese and DeWitt, 2018). This can help to reduce misunderstandings, encourage collaboration, and promote better performance. Additionally, corporate culture can also help to… Cont…

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