The role of recontextualization and socialization practices in transferring corporate values from a small Norwegian IT company to an Indian subsidiary

Abstract

Companies that nurture a shared corporate culture based on specific corporate values can improve their performance. However, when companies expand globally, communicating and transferring these values can be challenging, particularly when there are significant linguistic and cultural differences. This qualitative study examined the case of a small Norwegian IT company that has put its two corporate values at the core of its activity, and how these values were transferred to a subsidiary in India. Drawing on the concept of recontextualization and socialization theory, the study investigates the following: (1) how the corporate values were transferred, recontextualized and renegotiated in the Indian subsidiary; (2) how those values were implemented through a set of socialization mechanisms. Our main findings reveal how the Indian leaders actively recontextualized the values into prevailing cultural practices in India, and how senior employees were engaged in the value transfer process. Moreover, this article outlines how a small company without a formal HR department and with no expatriates to guide the process can use soft control mechanisms related to more formalized and structured HR practices to implement the headquarters’ values. Additionally, the article discusses the theoretical and practical implications of the findings.