Research On Cultural Risk Management Of Enterprise Internationalization

Enterprise internationalization is the most notable characteristic of enterprise operation in the Information Age. With the enterprises operating in different countries and regions increasingly, cross-cultural operation and diversification of cooperation mode with international organizations are the main tendencies. The cultural factor has been the significant variable in the decision-making and daily management of enterprises in the process of internationalization. How to identify, evaluate, control and manage the cultural risk in international practice has been the focus, catching the theorist's and entrepreneur's eyes.This dissertation makes a systemic analysis on the issue of cross-culture in the process of enterprise internationalization, from the angle of risk management, and establishes an initial analyzing structure of cultural risk. With that the dissertation is developed based on solution to four basic theoretical and practical problems: First, what is the connotation of cultural risk and what are the influences of it on international operation; Second, how to identify the cultural risk; Third, how to evaluate the cultural risk; Fourth, how to control and manage the cultural risk. The dissertation is developed as follows.The dissertation gives the concept of cultural risk of enterprise internationalization based on the cases study firstly, and makes a definite concept by analyzing the nature and operating process of cultural risk, discussing other relative concepts. The dissertation makes further discussion of the cultural risk identification of enterprise internationalization. The content of identifying cultural risk including the source of cultural risk, hazard, peril and exposure to loss is put forward. Factor analysis modeling and Interpretative Structural Modeling are applied to analyze the factors affecting cultural risk. Five-phase theory of enterprise internationalization based on cultural variable is put forward and the styles and degrees of cultural risk in every phase are profiled later.The dissertation designs a system of evaluation index for cultural risk on basis of systemic analysis on factors affecting cultural risk and constructsFuzzy-AHP modeling for cultural risk evaluation.Combined with the modern enterprise's international practice, some suitable suggestions on cultural risk management are put forward based on the previous qualitative and quantitative analysis.The results of research are applied to the case study of Haier Group operating in USA. The combination of theory with enterprise practice makes the research academic and practical significance.The analyzing structure of cultural risk is beneficial to reviewing and understanding the issue of cultural risk in the process of internationalization. The conclusions of the dissertation have the strategic significance for enterprises to improve the international competence, make the cultural diversity a valuable resource. They also show the significant theoretical importance for providing a new way of discussing the motivation of enterprise internationalization.