| Globalization has led to a change in how organizations conduct business. Inpresent day, organizations have set sail across other parts of the world. Mergers,acquisitions and joint ventures arise everywhere since organizations believe the onlyway to survive is to expand, be it by market share, product diversification, superiorprocesses, or, buying competitors out of the market. To manage these alliances alsoinvolves aspects of perspective, norms, value regarding cultural differences betweencountry to country and enterprise to enterprise. Among all alliances, research showsover50%failed, and the major factor to cause the failure was the lack of cross-culturalmanagement experience or effective management method.Hofstede’s model is mainly descriptive and is developed to be universally validwith regard to all national and corporate cultures. When top management teams areengaged in an international joint venture, merger, or acquisition, they face clashesbetween the different national and organizational cultures. Dealing with these clashescan be facilitated by the use of Hofstede’s model both in the pre-and post merger phase.Regarding the complexity of the model and the ambiguous topic of culture, reducing thedimensions of Hofstede’s model for differentiating between cultures can increase thepractical value of the model for management teams engaged in an alliance.In order to adapt Hofstede’s model for use by top management teams engaged intoan alliance, be it a joint venture, merger or acquisition, this thesis identifies the factorsthat are critical to the success of alliances and linking these factors to the differentdimensions of culture. Combing the case study of the failure of joint venture AmericanDR Company, to explore the management model—The Cultural Cube to be used incross-cultural communication and management, aiming to analyze the causes of failureand to be able to provide suggestions and recommendations accordingly whileimplementing further similar business activity. |
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