There are various definitions of culture which have been put forward by various scholars but this various definition share common features about culture. One of the features is that culture is shared therefore must be viewed from a group perspective rather than individual. Culture is intangible therefore various aspects of culture are usually inferred. for the purpose of this study culture will be defined as the beliefs, knowledge, art, morals, law, customs which distinguish one group from the other i. e.
Culture is a set of assumption that members in an organization share in common. It is equivalent to an individual personality and provides direction, meaning and basis for action. Culture and international business Culture plays a major role in determining the effectiveness of international business. When organization move from local to global business particularly with foreign direct investment managing change become extremely difficult as managers should consider the impact of organizational culture on such decisions.
At the firm level culture influences strategy formulation, organization design, decision making, motivation, perception and leadership. In addition organizational culture dictates the management style to use, negotiation and human resource management. 2 Beside it influence on management culture influences other functions of business such as marketing, supply chain management, accounting and virtually every facet of business (lewis, 2003). How effectively management manage culture in their organization will determine the success or failure in implementation of a strategy.
James burke who was the CEO of Johnson & Johnson stated that the reason behind the excellent performance of the company and it ability to handle crisis is their culture. On the other hand the president of Mitsubishi fuso truck blamed the company’s culture of concealment for cover up of defects in product. In Enron case it was revealed that the company’s culture of intimidation and arrogance discouraged most employees from revealing the shady deals perpetrated by management. Therefore it is clear that culture affect behavior and managers should consider the organization culture when making decisions.
Recent studies have supported the role culture play in organization. According to one of the study a culture which emphasis on result and high standard has been the reason behind outstanding performance of Home depot and Campbell soup. According to many managers the ability of a manager to manage change in organization really means how his ability to manage culture i. e. no radical change can be made in organization without changing the company’s culture (Hofstede, & Neujen, 1990).