1. Organizational culture
& the international business
Also known as “corporate culture” a pattern of basic assumptions that
the group learned as it solved its problems of external adaptation and
internal integration, that has worked well enough to be considered solid
and, therefore, to be taught to new members as the correct way to
perceive, think and feel in relation to those problems.
In accordance with this definition, values that enhance the
organization’s capacity for internal integration and external adaptation
should be useful for the firm.
Why is it a pattern?
Why is it made of assumptions?

2. When talking about organizational culture in the international business
it is better to analyze it by dimensions.
Different authors have different theories. The 3 most prominent are:
O’Reilly explains seven Denison and Mishra Hofstede established six
dimensions of identified three dimensions:
organizational culture, dimensions of culture:
1. Process oriented Vs
1. innovation 1. Adaptability of the results oriented
2. outcome organization 2. employee oriented Vs
orientation 2. mission/goal job oriented
3. respect for people orientation 3. parochial Vs
4. team orientation 3. employee professional
5. Stability involvement and 4. open system Vs
6. aggressiveness participation. closed system
7. attention to detail. 5. loose control Vs tight
control
6. normative Vs
pragmatic.

3. No matter what approach an organization takes, there are four global
forces that will shape organizational culture for the next 50 years:
a) Advances in Science and Technology
b) Global Redistribution of Knowledge, Power, and Wealth
c) Competing Political, Cultural, and Religious Ideologies
d) Sustainability of the Physical Environment.
The organization that doesn’t adapt to these forces won’t be able to
perform in the global market.
Organizational culture could be transferred from one country to
another by simply transferring leaders who have been exposed for a
prolonged period of time to the ways the organization deals does
business

4. Organizational subcultures
• Dominant Culture: The values and assumptions shared most widely by
people throughout the organization.
• Organizations have subcultures located throughout their various
divisions, geographic regions, and occupational groups.
• Some subcultures enhance the dominant culture by espousing parallel
assumptions, values, and beliefs.
• Other subcultures are called countercultures because they directly
oppose the organization’s core values.