Research On Corporate Culture Shaping Model Of Multinational Corporation

Since the entry of new century,economic globalization has become an irreversible development tendency. Increasingly, as impetus of this trend, multinational corporations display strong vitality with their special core competitiveness. Corporate culture, as the engine of corporate development and the intangible asset, is viewed as one source of sustainable competitive advantages by more and more savants for its important effect to corporate performance. Whether can shape the corporate culture successfully or not is related to corporate survival &development and also related to that whether this corporation could occupy one of the seats on the international economic stage directly. Corporate values, as the core factor of corporate culture, will play an irreplaceable and decisive role in its development and shaping process. So the key to shaping of corporate culture is to shape the values. For the double influence of their own value demands and national culture, multinational corporations have particularity for shaping of their corporate culture. This paper aims for studying how to shape corporate values according to their own developmental demands in order to show their special culture competitiveness and enhance their own competitive advantages. The main part of the paper consists of three sections:Firstly, the writer analyzes the essential reasons for form of corporate values and culture through culture shaping mechanism and concludes values means that after individuals realizing their value demands, they can form a criterion for behavior through reflecting the process. Then the writer conducts the conclusion into the theory of corporate culture and summarizes the value demands of corporate generating—transaction cost decrease though research into the essence of the corporation. According to the study of the theories home and aboard, this paper divides corporate values into two aspects: external value demand and internal value demand. To reduce external transaction cost, corporation should build its business values and to reduce internal transaction costs, corporation should build its management values. Both external and internal values will show out through all kinds of corporate activities. All the process forms the corporate culture shaping model and this model supply theoretical base for next part of this paper.Then, through analyses of the form essence and management character of multinational corporation, this paper gets the conclusions as follows: as far as shaping of external business values is concerned, the multinational corporation is influenced by many factors such as industry, product, value chain and so on, and the relation to host country's culture is the decisive one to shaping business values. And concerning with the shaping of internal management values, different national values characters and overseas organization forms of multinational corporation are the essential factors of management values shaping. These prove that the shaping of corporate culture is influenced by value demands; and values are reflection of their own valuable activities and core of corporate culture.Finally, through description of actualities of Grainger LLC and combining the external business values and internal management values shaping theory together, this paper make forecasting of this corporation's culture characters. The results of survey proves the foreseeing which shows the effectiveness of this culture shaping model, and also makes good explanations to the phenomena that different multinational corporations will shape different kinds of culture. All of the above can make the corporation get used to the principle that the natural regulation shaped by values makes the corporate culture to be the unique competitive advantage of the corporation.