Cross-Cultural Adaptation Challenges to Management Innovation in Multinational Business Context

Abstract

With economic development and globalization, many multinational enterprises have been established. Because of the cultural and economic context differences, traditional management strategies could not be effectively implemented in multinational companies. Therefore, management innovation is necessary for those companies to achieve business success. Various studies on multinational management seem focused on differences in business environments and cultures between countries and comparative management styles. However, few studies have paid attention to the process of cross-cultural adaptation and transformation through day-to-day practices in multinational enterprises. Therefore, based on the concept of management innovation and the integrative theory of cross-cultural adaptation, this chapter intends to begin building a model to explore management innovation in multinational enterprises from the perspective of cross-cultural adaptation. Qualitative data was collected from Chinese-owned multinational companies. The results support the model conceptually and provide suggestions for further studies.