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keyboard_arrow_downTitleAbstractKey TakeawaysIntroductionCasesChina Case 1: Smooth HybridizationChina Case 2: Two Sides of the (Taiwan) StraitChina Case 3: Hybridization by ForceChina Case 4: From Cultural to Social ConflictIndia Case 1: Dutch Insurance (DI) CompanyIndia Case 2: Dutch Bank (DB)ConclusionReferencesFAQsAll TopicsPhilosophydownload

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2010, World Futures

https://doi.org/10.1080/02604021003680479visibility

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Abstract

AI

The paper explores the convergence-divergence debate in business culture, proposing a third model termed cultural hybridization, which synthesizes insights from Social Integration (SI) Theory. Through case studies of multinational joint ventures (IJVs) in China and India, it suggests that hybridization can offer a way to balance cultural diversity with global business practices. The authors invite further research into the application of this model across different regions and cultures.

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Key takeaways

AI

1. Cultural hybridization offers a third approach between convergence and divergence in multinational joint ventures.
2. International Joint Ventures (IJVs) face a 60% failure rate, often due to cultural barriers and communication issues.
3. China and India have become major recipients of foreign direct investment (FDI) due to labor availability and government incentives.
4. Social Integration (SI) Theory enhances understanding of organizational change through ongoing social interactions among diverse cultural groups.
5. Research identifies partial and secondary hybridization processes, with cultural adaptation varying significantly between Chinese and Indian contexts.

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References (39)

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FAQs

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What explains the prevalence of cultural hybridization in Sino-foreign joint ventures?add

The study indicates that cultural hybridization occurs through ongoing social interactions, where stakeholders adapt practices from both cultures. For instance, in a Sino-American IT company, local HR practices evolved under American influence, showcasing a dynamic blending of managerial styles.

How do partial and secondary hybridization differ in multinational corporations?add

Partial hybridization involves limited sections of an organization adopting hybrid practices, while secondary hybridization occurs when non-hybridized employees learn from hybridized peers. This distinction was evidenced in Indian firms, where hybridized employees became role models for their counterparts.

Why do some joint ventures in China experience more cultural conflicts than others?add

Cultural conflicts often stem from the underpreparedness of local employees to adapt to foreign management styles, as seen in two cases, where a lack of mutual understanding led to significant tensions. Instances of ‘disruptive strategies’ in management practices were particularly indicative.

What role does Social Integration Theory play in understanding hybridization?add

SI Theory provides a framework for examining how organizations coalesce and evolve through frequent interactions among diverse actors, contributing to hybrid cultural configurations. The research posits that sensemaking becomes crucial in organizations undergoing hybridization in complex environments like joint ventures.

When did cultural hybridization become a significant factor in international joint ventures?add

The rise of globalization in the past few decades has intensified cultural hybridization, creating hybrid identities in transnational business contexts. Authors cite a dramatic increase in cultural interactions since the 1990s as pivotal for hybridization dynamics in joint ventures.

Peter PeverelliVrije Universiteit Amsterdam, Faculty MemberaddFollowmailMessage

PhD Arts, Leiden University (1986) PhD Business Administration, Erasmus University Rotterdam (2000) Key interests: general organisation theory, corporate identity, corporate culture The main theme of my life is fragmentation. I try to combine the best of two worlds: the world of (Chinese) culture and linguistics with the world of organisation theory. Moreover, I perform this combination in the academic world as well as an independent consultant. This means that I have to shuttle around a lot: between Delft, where I live, and the seat of the VU, Amsterdam, as well as between the Netherlands and China.

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