Abstract
The research goal is to investigate whether several cross-cultural dimensions proposed in the Hofstede cultural model link international companies and their affiliations operating in Scandinavia and Baltic countries. Although cultural aspects have got much more attention in internationalisation studies over the last decade, there is still room for research focusing on such study areas. The authors start with the analysis of the literature review. Presenting the holistic approach affecting internationalisation and a list of factors necessary for internationalisation, later on, the authors present the cultural dimension of Hofstede, and then give various qualitative methods applied for studies on internationalisation. Design/Methodology/Approach: To complete the research, the authors selected the database from Nasdaq (2021), listed MNE companies from six countries: Denmark, Norway, Sweden, Estonia, Latvia and Lithuania. The mother company is located in Scandinavia, and the daughter company is in the Baltics based on FDI flows. The author’s research included 56 MNE companies from Nasdaq Baltic stock exchange. We used the correlation matrix to support the research and present the direction of identified connections to proceed with it. Findings: Obtained results revealed that there are strong links among several cultural dimensions. The results show seven positives and four negative links when discussing cross-cultural links. This finding shows that talking about intercultural relations, only four out of six Hofstede cultural dimensions have at least one strong connection operating business internationally. Originality/Value/Practical implications: The authors identified that some cross-cultural dimensions could not be analysed further because they do not have significant links. The limitations of the study and further research directions are also provided.
Highlights
Publisher’s Note: MDPI stays neutralTwo processes, internationalisation and globalisation, have influenced the development of the current world economy [1,2,3,4]
The results present the relationship between MNE cultural dimensions and regression matrix, constructed among mother and daughter country cultural dimensions
The authors found theoretical links between internationalisation and cross-country cultural dimensions by researching various studies dedicated to globalisation
Summary
Internationalisation and globalisation, have influenced the development of the current world economy [1,2,3,4]. They have contributed to the exchange of cultural values and the development of cultural relations between nations [5]. The internationalisation of business makes it necessary to include cultural barriers, showing companies’ existence and profits. The ability to control a multicultural environment has become a requirement in a globalised world. In the same vein, understanding and integrating cultural differences contributes to business success, one of the most significant governance challenges [9,10]
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