If to summarize the main tendencies of development of the international business for last three - four decades, what is it necessary to recognize as the main and determining tendency of this development? Or more locally: what question, put by this development, is it necessary to recognize central, determining for understanding of prospects of the international business? In our opinion, it should be formulated in such a way:
What are the limits and opportunities of an effective utilization of national model of management from the point of view of efficiency of the international business in general and its maximum form of multinational business in particular?
This formulation can seem on the first sight poorly connected with a previous material, but by more attentive consideration it follows very precisely from it. Much more important is the fact, that without dependence from the geographical factor model this always carried in itself a very powerful component, figuratively speaking of colonial influence. This term is understood as influence not only through usual tools of management used in the democratic countries, but also appreciably through absolute dependence colonies as a whole from metropoles and native workers from the foreign owners of the enterprise and foreign managers, employed by them. Simply speaking, neither English, nor French, Dutch manager were not of any need to break stereotypes of the behaviour and habitual methods of work for the sake of the account of local features. Their national model automatically turns in international in given colonies simply by change of a signboard!
Certainly, here there is a known simplification: clever and educated managers - Europeans well knew and appreciated skills to adapt the management for local cultural realities. Moreover, frequently mentioned in the literature on management a unique example of Britain, which has managed to ensure long-term stability and stability of the management in colonies, basing on the rather small administrative device, almost classical such sample of the approach. But if to take management as such, that is actually sphere of business management, the situation about more or less complete transferring of national model on native ground basically reflects realities and concession of era, and began of era of the national states.
The situation is changing radically during this last era, when colonies become the independent states, and concessionary of the enterprise pass or in the property of these states, or in the joint property. The colonial background ceases to work and, moreover, very rigidly begins to be shown that it is possible to name as a complex former colonies: aspiration both native workers, and managers, and the more so local authorities in every possible way to show to the former owners and their managers, who here main.
First of them was, that only careful account of mutual benefits and the constant following to the appropriate conclusions is the most correct strategy for effective interaction in a tandem former colony former metropolis. The banality of this true from the point of view of business in general is obvious, it historically totals equally as much of thousand years, as many mankind in general conducts any economic operations such as an exchange. But the new contents is given to it already in epoch of the national states by the following circumstance: if the natives were ready in a favour to the offended vanity to endow economic benefit or same for the sake of own ambitions were ready to make the former owners or managers - expats, also those and others at once lost in competitive struggle to a certain third party. In the situation it could look differently: In this sense the foreign experts, who have abandoned native manufacture, and the managers, which is clean on - человечески did not arrange frank boorishness of the new owners or even threats to their safety, made this manufacture initially noncompetitive; but if they made the same, not wishing to change style and methods of the former management in view of new realities, on their place quickly enough there were businessmen and managers from other countries and so on . And what was a situation, each time the guilty were punished only economically.
On the basis of this first truth also there the second appears, which it is possible to consider(count) as the real basis of occurrence of the present international management in the considered(examined) period: the businessmen and managers from the different countries precisely understand, that the serious account of culture and national stereotypes of behaviour of the native partners makes their business not only economically more effective at the given moment, but also gives it interesting prospects, essentially enriches with its potential and at the end creates, using a terminology of m. Porter, competitive advantages of much higher orders. This moment should be noted especially, but here is necessary important clause. In development of the previous idea we shall note, that the firm business requires(demands) different levels internationality depending on two primary factors. If to consider business of firm from the country A in the country B, the factor structure looks as follows.
First, the level internationality of business of firm would depend on depth of its involvedness in business of the country. If the speech goes about single sales of the goods through export-import firm of the country And, this lowest level involvedness practically does not give rise to any requirement for the international component of business (and, naturally, about any international management of speech there is no ) you see such operation by nothing differ from sales and accounts with other firms, and all international component takes place at office of export-import firm and even is simply latent from eyes of the manufacturer.
Absolutely other business is when the firm developed manufacture in the country, has employed the local personnel, has developed distributive network (or has entered cooperation) and so on. Here it, that refers to as, by both legs stands in the international business: from language questions up to the local tax laws and from repatriation of the currency profit before participation in the local social actions. It is clear, that between these by two poles a lot of consecutive steps of development internationality lies, and to them we shall return even more in detail.
Secondly, internationality depends on a level of cultural similarity of the countries A and B. It is clear, that if A is France, and Italy, even belonging of both countries not simply to Europe, but to one cluster of European roman (latin) countries already speaks for itself. In any way not belittling an originality and features of each of these great cultures, all of us should recognize, that the level of their mutual understanding is so high, that the international adaptation of the appropriate management in the cultural (the most difficult) plan will be enough idle time. But already if A is France, and B is Russia, the business looks much more difficult (though the European belonging to a certain extent helps here again). And, apparently, absolutely high level of internationality is required in pair Франция - Япония if to consider only cultural distinctions as such. Certainly, carried out reviews and approaches are no more than rough illustrative circuit. And it is essential to enrich and will complicate its the most different reasons: for example, whether there will be in the first case a speech about subculture of Italian north or south; further: whether there is a speech about cooperation with the Moscow firm or it is the businessmen from deep Yakutia; in the third case: whether will render the French firm the help that major fact, that a number of its employees have serious experience of work in former French colonies in Southeast Asia. Such moments there can be a very much real international business is more complex than any sort of the circuits. Nevertheless main conclusion remains constant: some kind of the second axis of development of the requirements internationality, certainly, lays in sphere of similarity and distinctions of cultural features.
Complex interaction national and international. Probably, on one question of the international business there were no so much disputes and researchers, and practitioner, as on a question of influence on business life of a planet convergent and divergent processes in sphere of national cultures.
On the one hand, globalization is obviously conducted and conducts to clean(only) convergent to processes: beginning from jeans, TV sets and hamburgers before formation of some multinational business culture certain principles and which rules are divided(shared) practically by majority of the serious businessmen of the world. But, on the other hand, national and cultural differentiation accrues which in the extreme forms nationalism and - or of religious intolerance is shown in the heavy disputed forms; obviously perfectly natural aspiration of the peoples and ethnic communities to keep the cultural and national values, installations, stereotypes of behaviour to protect them from washing away influence some particular average (basically, certainly, American) masscult. Frequently this aspiration accepts the forms of a different sort of restrictions and interdictions on the international economic activity in this or that country.
And at last, the professionals in system of the international business are constantly convinced that if the aggravated national feelings and carry many problems for their work, simultaneously they give also most interesting field of new achievement and powerful growth of efficiency multycountry of business operations, if it is correctly taken into account and the national - cultural moment is competently used.
There is a number of indispensable conditions, which are put by the international business before any firm aspiring seriously enter in it, and major of them the account in business of the cultural factor, that is all set of the requirements and restrictions, put by culture of the given country on those who conducts in it (or with its) business. This problem is sharp equally so, as far as different of culture of the country of basing of the given firm and this or that country of its stay. Extraction (or loss) additional profit at the expense of the cultural factor depend, naturally, on organization, situational factors and so on.
By base distinction (having, as it was marked, and basic partly character) acts the contents, role and specificity of external environment of business, as in our case the speech goes about its output for national borders.
Management in several non-native language countries (especially all over the world) forces with the special attention to concern to the analysis of external environment, and first of all all that potentially bears(carries) in itself those or other competitive advantages: economy, politics, right, culture, social processes and other aspects of ability to live of this or that national state in a context of strategic and tactical tasks solved by firm in its territory and - or with the help of firms of this country in the third countries. Thus, as it was marked, knowledge and the understanding of culture of the country and appropriate features of behaviour of its population plays one of key roles and carries a charge of essentially new competitive advantages (or dangers in negative variant). Besides the serious management of the international business of significant scales requires qualitatively other information base, unconditional overcoming of language barriers and professional country of maintenance of the administrative decisions. Here and further there is, certainly, an advanced enough international business, that is appropriate level of depth of its penetration on international business environment).
As to internal environment of firm, here both complexity, and the differences are determined all by same multinational environment. Though externally such determining categories, as the purposes, structure, division of labour inside firm, coordination, and especially technological, do not carry significant differences from national model, but as soon as we reach the main people, their requirements, perception(recognition), expectations and, main, of values and purposes of behaviour this sight becomes more than disputable. And reason all the same necessity of the account of the национально-cultural factors. We shall stop on it more in detail further, but now only by way of an illustration we shall note, that almost half of Japanese considers work first of all as getting of means to existence, while among Belgium or Dutchs this interest does not achieve also third of all respondents. Or other so indicative fact: Time, plans and programs a major element of western culture in general and management in particular, while east culture simply does not like to think that the second chance will not be and concerns to time as to the certain infinite resource.
International management is the combination of knowledge, insights and skills which are necessary for adequately dealing with national and regional cultures and differences between cultures, at the several management levels within and between organizations. Cultures, nationality, political environment and economics all have distinctive impact on business decisions.
”Management in an intercultural context requires a different perspective on strategy, human resource management, managing and motivating people and ethics. This minor provides both a theoretical basis and practical skills in managing a culturally diverse organization. Various specific cultures are explored.”(7)
In order to compete and be successful in foreign markets, one needs to pay special attention to organisational structure and the corporate governance issues. Recently, a number of real life cases have provided some insights such that too much freedom provided by headquarters can have disastrous consequences on all parts of a multinational. “For example, the Dutch retailers' (Ahold) insufficient supervision over its subsidiaries in the United States led to a serious financial and management crisis in 2003 (Smit 2004). Consequently, the management of the multinational company recognizes the need to change the governance structure to accommodate a wider dispersion of activities and the need to coordinate these activities.” (6)
International Business and Comparative Management (IBCM) are two distinct but related fields of study. As a field of management training and scholarly research, international business focuses primarily on business activities that cross national boundaries, whether these movements involve goods, services, capital, human resources or technology transfers.
“Multinational enterprises play a large and increasing role in these international business transactions. Comparative management deals with differences and similarities of managerial systems and management practices in different cultural settings. Both areas require an understanding of the complexity and diversity of environmental variables and their impact on institutions and those who manage them.” (5)
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