THE INFLUENCE OF CULTURE ON INTERNATIONAL MANAGEMENT: A study of MAERSK Line Nig. Ltd.

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ABSTRACT


There is a necessity for Foreign organizations operating in Nigeria to give ample commitment to knowledge and required skill for international management. This is so, considering the diversity of cultures existing in Nigeria. Hence, this research examines the influence of culture on International Management. The main objectives of this research were:(i) to examine how cultural differences in Nigeria influence Export System practices, (ii) to ascertain the impact of cross-cultural management practices in MNCs operating in Nigeria, and (iii) to determine the relationship existing between subordinate’s values at work and leadership behaviors exhibited by managers. Primary data was collected by means of a well-structured questionnaire and the data collected were collated and analyzed using the Statistical Product and Service Solution (SPSS v23). The study however had a sample size of 182 respondents from Maersk line Nig. Ltd, of which, only 138 respondents returned the questionnaires shared. Research questions and objectives were set along-side four hypotheses that were formulated and tested using the regression analysis. The results proved that based on variables tested, culture has a significant influence on international management practiced in that culture, results are as follows; F= 9.015, Mean of Square= 16.432, and, P= .003. The research recommended that MNCs looking to attain success, should ensure management and employees in these MNCs have a sound knowledge of the environment they operate in, especially when they are new to such environment, and also the organization should be aware of the cultural background of where their business is established and adapt the business operations to the culture. Based on the findings of this study, a schematic model was established to explain the pattern of relationships among the variables of this study.


Keywords: Culture, Cross Cultural Management, International Management



TABLE OF CONTENT

Title
Abstract
Table of Contents
List of Figures
List of Tables
List of Cases

CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of Research Problems
1.3 Research Objectives
1.4 Research Question
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the study
1.8 Outline of chapters
1.9 Operationalization of the study
1.10 Definition of Operational Terms
1.12 Schematic model of study

CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Framework
2.2.1 Historical Background of Culture
2.2.2 The Concept of Culture
2.2.3 Values and Norms
2.2.3.1 Cultural Values
2.2.4 Characteristics of Culture
2.2.5 Cultural differences and its Impact on International Management Practices
2.2.6 Communication
2.2.6.1 Cross-Cultural Communication
2.2.7 Globalization: the birth of International Management
2.2.7.1 The Concept of International Management
2.2.7.2 Distinctive features of International Management
2.2.8 Role of Culture in International Management
2.2.9 Leadership styles
2.2.10 Different Managerial Encounters in Cross Cultural Management
2.2.11 Cultural Issues About Managing a Business in Nigeria
2.2.11.1 Cultural influence on businesses in Nigeria
2.3 Theoretical Framework
2.3.1 Geert Hofstede’s Theory of National Culture
2.3.1.1 Dimensions of Hofstede’s framework of assessing culture
2.3.2 Trompenaars’s Cultural Dimension
2.3.3 Andre Laurent’s Study of Management Styles
2.3.4 Communications Theory: Edward T. Hall
2.3.5 Dynamic Theories of Internalization
2.3.5.1 Stages Models of Internationalization
2.3.5.2 Born Globals
2.3.5.3 Comparison between the Internationalization process model and the born globals
2.3.6 Contingency Theory
2.3.7 William Ouchi Theory Z
2.4 Empirical Framework
2.4.1 Culture contrasted to International Management
2.5 Gaps in Literature

CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Research Population
3.4 Sampling Technique
3.5 Sample Size Determination
3.6 Sample Frame
3.7 Development of The Data Collection Instrument
3.8 Method of Data Analysis
3.9 Ethical Consideration
3.10 Validity of Research Instruments
3.11 Reliability of Research Instruments

CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 General Rate of Response
4.3 Socio - Demographic Analysis of Respondents
4.4 Descriptive Analysis of Data on Relevant Variables
4.5 Hypothesis Testing

CHAPTER FIVE: SUMMARY AND FINDINGS
5.1 Introduction
5.2 Empirical Findings
5.3 Theoretical Findings

CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS
6.1 Introduction
6.2 Summary of work
6.3 Conclusion
6.4 Recommendation
6.5 Limitation of Study
6.6 Suggestion for further research
6.7 Contribution to Knowledge
REFRENCES
APPENDIX


CHAPTER ONE

INTRODUCTION

1.1  Background to the study

Several firms utilized the world market that opened to international trade and expansion at an increased rate, mostly in the 1990s and early 2000s. Barriers to a free trade system were limited and facilitated through the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement (NAFTA), and the Association of South East Asian Nations (ASEAN).

Due to communication, transportation, financing developments, mode of entries to countries, and technology, Economies became more opened. There was experience of fewer difficulties when it came to practices involving establishing businesses beyond geographical boundaries. Advanced Communications proved an exponential growth, innovation became more rapid when it came to doing business beyond national boundaries.

In different cultures, activities, perceptions, and practice of management vary, and due to business operations being globalized, coupled with a culturally diverse workforce there came the increased need for international management for people that understands the issues surrounding business and culture very well to manage and facilitate growth in cross cultural businesses effectively.


International Management is a part of international business which is a field. It consists of: International Trade, International Marketing, and International Finance (Nowakowski, 1999). International Management is the decision-making process of a Multi-national Enterprise, such decisions are those in respect of planning, organizing, leading, and controlling in a multicultural area (Nowakowski, 2000). This delineation lays prominence on the role of culture, such as cross-cultural skills, Cross cultural practices in organizations, transfer of technology, etc. in conducting operations. (Rozkwitalska, 2007) portrayed International Management to be the managing of businesses which exceeds a country’s boundaries. The International Management field is one which is relatively new and it changes swiftly. The improved world globalization has brought about various scholars to study this discipline. When Transnational corporations (TNCs) in the 1990s where active in FDIs (foreign direct investment), interests in the field improved. However, these changes in the global economy has brought about quite a lot of issues which should be looked into and also influence the evolution of International Management, therefore this topic is focusing on the role culture has to play in International Management.

Culture is a root. It is rooted in Anthropology, Geography, Psychology, and also in Sociology. The word culture comes from the Latin word cultura. It is related to cult and worship. Further expanding the understanding, it refers to result of human interaction. (Luthans and Doh, 2009). Based on the research focus on International Management, Luthans and Doh (2009) delineated culture to being an acquired knowledge which is used by people of a society to interpret certain experiences and create a social behavior. They further stated that the acquired knowledge establishes attitudes, norms, values, and it influences behaviors.

Culture is one with no single definition especially because of its woolliness as a concept. The definitions vary as there are various researchers and scholars from different disciplines who have written about it. Some researchers argue that culture is something developed and owned by a group of people, while others argue it’s what a group of people is. Culture to some researchers is seen as hcombination of norms, values, feelings, thinking, roles, beliefs, attitudes, behavior, etc. while some other researchers see it as economics, language, religion, education, politics, technology, law, the society etc. (Tayeb, 2003). It is seen as a key term which is used to explain existence and the nature of social order. According to Cotgrove (1978), culture is referred to as shared norms and values of a social system that forms the most vital aspect of a society. Hofstede (1991), defined culture as the collective programming of the mind that distinguishes the member of one group or category from another. However, it is important to understand that culture whether being something people are or have, it is an exemplary one. In terms of what people are, it could be related to organizations. It is a management tool which can be used to guide behaviors of people (employees) in the organization (Tayeb, 2003).

Culture is historically developed. it involves values, esteems, attitudes which are being shared by members of a group or society, and have impacts on their lifestyle, be it material or non-material which shapes the two fundamental aspects of culture. (Tayeb, 1988). This definition looks to explain that members of a community learn the shared characteristics through different stages of socialization processes, such include: language, family, religion, formal education, etc. this is not to say that members of such community behave the same way or have the same values and attitudes, they have a significant difference.


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