'French argues that 'An awareness of the impact of (national) culture Essay

'French argues that 'An awareness of the impact of (national) culture on people in work organisations' is important in tod - Essay Example Furthermore, to compete in this globalized market, companies with cross border operation, commonly known as the MNCs are required to develop an ability that will help them to manage knowledge. Knowledge is imperative in international business principally because of the fact that it can reduce the managerial anxiety and uncertainty to a great extent. Along with that, new opportunities can also be identified with this approach. Levitt (1983) have stated that the importance of gaining knowledge about the subject of concern in more important if a company is operating in overseas locations. This knowledge can be in any form such as knowledge about the culture of the host country, consumer behaviour or it can be about the external environmental situation. In this project, the national culture of the country will be analysed and its impact on the business will be analysed. Furthermore, the study will also shed light on the significance of awareness of the impact of (national) culture of peo ple in work organizations in today’s world. ... Holden (2001) argues that a company planning to operate in the overseas location should frame a flexible business model that has the ability to change in accordance with the local lawsuits and the situation of the market. Thus, it is evident that standardization versus adaptation approach is extremely vital in the international business process as it drives an MNC’s ability to minimize the cost and respond to the demands of the local market. Bhagat, et al. (2002) in this respect have highlighted that national culture of a country has a strong influence on the decision of standardization versus adaptation for the management of knowledge. A number of research works carried out by Hofstede (1993) have shown that national culture influences the operations of a multinational corporation. For example, the areas which are mostly affected are marketing and communication practices and the human resource policy. In the similar way studies carried out by Bhagat, et al. (2002) have shown that the national culture of a country determines the organization’s activity pertaining to the management of knowledge, research and development activities, transfer of technology as well as the process of training. However, there is another set of authors who believe that the national culture of a country might also impact the knowledge management of an organization and therefore has a direct impact on the functioning of an organization. Takeuchi (2001) deems that with regards to the knowledge management convergence of approaches are evident among the companies. However, contradicting this point several researchers made it evident in their research papers that have not found any evidences pertaining to the differences in the