The impact of culture on the management of subsidiary organizations: The case of Viettel in Peru
Main Article Content
Keywords
Organizational culture, National culture, Cultural differences, Subsidiary company, Vietnam, Peru, Latin America
Abstract
As south-south investments increase so do the issues experienced by investing companies. One of these is the impact of culture. This article analyzes the effects of the subsidiary country culture on an investing firm’s organizational culture and the managerial practices used to address them. Data is gathered from cultural databases, a company-wide survey and semi structured interviews. Descriptive statistics are used to reveal country and organizational culture differences, with content analysis to expose management responses. There is a clear difference between the firm’s Vietnamese and Peruvian workers, with the company’s practices more amenable to the Vietnamese employees. Recognition of this has resulted in a number of initiatives to reduce its impact. The study’s results offer suggestions that may be valued by other foreign companies interested in operating in Peru and may be especially relevant to Southeast Asia and Asian companies interested in investing in or looking to start operations in Latin America.
Downloads
References
Arbaiza Fermini, L. (2014). Administración y organización; un enfoque contemporáneo. México City: Cengage Leearning.
Au, K. Y. (1999). Intra-cultural variation: Evidence and implications for international business. Journal of International Business Studies, 30(4), 799-812.
Balcazar Guerra, C. (2018). Estrategias para la mejora de la cultura organizacional de Servicios Analíticos Generales SAC aplicando el modelo de Denison. Industrial Data, 21(1), 101-112.
Capriotti, P. (2009). Branding corporativo. Santiago de Chile: Libros de la empresa.
Cartwright, S., & Cooper, C. L. (1993). The role of culture compatibility in successful organizational marriage. Academy of Management Perspectives, 7(2), 57-70.
Ciuriak, D., Xiao, J., & Dadkhah, A. (2017). Quantifying the comprehensive and progressive agreement for trans-pacific partnership. East Asian Economic Review, 21(4), 343-384.
Dartey-Baah, K. (2011). The impact of national cultures on corporate cultures in organisations. Academic Leadership: The Online Journal, 9(1), 47-56
Denison Consulting. (2019). Organizational Culture Surveys. From Denison Consulting website: https://www.denisonconsulting.com/culture-surveys/ [Accessed 24/04/2020]
Denison, D., Nieminen, L., & Kotrba, L. (2014). Diagnosing organizational cultures: A conceptual and empirical review of culture effectiveness surveys. European Journal of Work and Organizational Psychology, 23(1), 145-161.
Ehrhart, M., Schneider, B. & Macey, W. (2014). Organizational climate and culture. New York: Routledge.
García Álvarez, C. M. (2006). Una aproximación al concepto de culturao. Universitas Psychologica, 5(1), 163-174.
Hofstede, G. & Hofstede, G.J. (2005), Cultures and organizations: Software of the mind, 2nd Ed. McGrawHill, New York, NY.
Hofstede, G. (1985). The interaction between national and organizational value systems [1]. Journal of Management Studies, 22(4), 347-357.
Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81-99.
Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills,CA: Sage Publications.
Holden, N. (2002). Cross-cultural management: A knowledge management perspective. London: Pearson Education.
Huong, T. (2017). Viettel: Success story in business and defence. Vietnam Investment Review [Online]. From: https://www.vir.com.vn/viettel-success-story-in-business-and-defence-50601.html [Accessed 13/08/2020].
Jamieson, N. L. (1995). Understanding Vietnam. University of California Press.
Julien, H. (2008). Content analysis. In L. M. Given (Ed.), The Sage Encyclopedia of Qualitative Research Methods (pp. 120-122). Thousand Oaks, CA: Sage Publications.
Khan, M. A., & Law, L. S. (2018). The role of national cultures in shaping the corporate management cultures: A three-country theoretical analysis. In Organizational Culture Organizational Culture, Edited by Jolita Vveinhardt. IntechOpen. [Online] available from: https://www.intechopen.com/books/organizationalculture/the-role-of-national-cultures-in-shaping-the-corporate-management-cultures-a-three-countrytheoretic
Kim, S., & McLean, G. N. (2014). The impact of national culture on informal learning in the workplace. Adult Education Quarterly, 64(1), 39-59.
Koontz, H., & Weirich, H. (2007). Elementos de administración: Un enfoque internacional. Mexico City: McGraw-Hill.
Kotter, J. P. & Heskett, J. L. (2008). Corporate culture and performance. New York: The Free Press
Lepeley, M. T. (2020). Human Centered Management: 5 Pillars of Organizational Quality and Global Sustainability. Abingdon, UK: Routledge.
Martin, J. (2002). Organizational culture: Mapping the terrain. Thousand Oaks, CA: Sage Publications.
Martinez Ramos, P. J., Montoya Arévalo, B. E., Marquez Murga, S. I. (2011). Diagnóstico de la cultura organizacional como un elemento clave de la mejora organizacional: dos casos de aplicación en Chihuahua. In Proceedings of the XV Congresso Internacional de Investigaciones en Ciencias Administrativas, Boca delRio, Mexico, May 17-21. Available from http://www.academia.edu/download/56634322/12_03_cultura_organizacional.pdf [Accessed 17/04/2020]
Montero Pacheco, S. (2018). Diagnóstico de la cultura organizacional y su relación con el desempeño laboral en la empresa Quintero Leather S.A.S utilización del modelo Denison. (Unpublished master's thesis). Available from https://ciencia.lasalle.edu.co/maest_administracion/496 [Accessed 17/04/2020].
Morales, O. (2013). Gestion de la diversidad cultural en el entorno de negocios peruano. Tiempo de Opinión 4(6), 54-61.
Nguyen, M., & Truong, M. (2016). The effect of culture on enterprise's perception of corporate social responsibility: The case of Vietnam. Procedia Cirp, 40, 680-686.
Nguyen, N. T. D., & Aoyama, A. (2013). Exploring cultural differences in implementing international technology transfer in the case of Japanese manufacturing subsidiaries in Vietnam. Contemporary Management Research, 9(1), 13-34.
Olie, R. (1990). Culture and integretion problems in international mergers and acquitions. European Management Journal, 8(2), 206-215.
Omar, A., & Urteaga, A. F. (2010). El impacto de la cultura nacional sobre la cultura organizacional. Universitas Psychologica, 9(1), 79-92.
Osland, J. S., De Franco, S., & Osland, A. (1999). Organizational implications of Latin American culture: Lessons for the expatriate manager. Journal of Management Inquiry, 8(2), 219-234.
Palys, T. (2008). Purposive Sampling. In L. M. Given (Ed.), The Sage Encyclopedia of Qualitative Research Methods (pp. 697-698). Thousand Oaks, CA: Sage Publications.
Pelled, L. H., & Xin, K. R. (1997). Work values and their human resource management implications: A theoretical comparison of China, Mexico, and the United States. Journal of Applied Management Studies, 6(2), 185-
Pettigrew, A. (1979). On studying organizational cultures. Administrative Science Quarterly, 24(4): 570-581.
Ralston, D. A., Holt, D. H., Terpstra, R. H., & Kai-Cheng, Y. (2008). The impact of national culture and economic ideology on managerial work values: A study of the United States, Russia, Japan, and China. Journal of International Business Studies, 39(1), 8-26.
Reyes-Martínez, L., Barboza-Carrasco, M. Y., & Vicuña-Tapia, H. (2017). Diagnóstico Cultura Organizacional de la Empresa Grupo Fadomo Reproser, S.A. De C.V. Revista de Desarrollo Económico, 4(12), 67-78
Saha, A., Thorpe, J., O’Flynn, P., & H. Bucher. (2020). Designing for impact: South-South trade and investment. Geneva: International Trade Centre.
Schein, E. (1992). Organizational culture and leadership. San Francisco: Jossey-Bass.
Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual Review of Psychology, 64, 361-388.
Schneider, S. C., & Barsoux, J. L. (1997). Managing cultural differences, 8th Ed. Burlington, MA: Butterworth Hienmann.
Schwartz, S. H. (1999). A theory of cultural values and some implications for work. Applied Psychology, 48(1), 23-47.
Schwartz, S. H. (2004). Mapping and interpreting cultural differences around the world. In H. Vinken, J. Soeters, & P Ester (Eds.), Comparing cultures, Dimensions of culture in a comparative perspective (pp.43-73). Leiden: The Netherlands: Brill.
Scott, G. J., & Chaston, I. (2012). Culture and innovation in Peru from a management perspective. Journal of Global Initiatives, 7(2), 131-145.
Serna, H. (2008). Gerencia Estratégica: Teoría-Metodología. Alineamiento, y mapas estratégicos.(10ª ed.).Bogotá: 3ER Editores.
Singh, D., Pattnaik, C., Lee, J. Y., & Gaur, A. S. (2019). Subsidiary staffing, cultural friction, and subsidiary performance: Evidence from Korean subsidiaries in 63 countries. Human Resource Management, 58(2), 219-234.
Trompenaars, A., & Hampden-Turner, C. (1998). Riding the Waves of Culture: Understanding Cultural Diversity in Business, 2nd Ed. New York, NY: McGraw Hill.
Tylor, E. B. (1871). Primitive culture: Researches into the development of mythology, philosophy, religion, art, and custom (Vol. 1&2). London: J. Murray.
United Nations Conference on Trade and Development (UNCTAD). (2019a). Regional FDI at a glance: Latin America and the Caribbean. Available from https://unctad.org/Sections/dite_dir/docs/WIR2019/WIR2019_FDI_Latin_America_and_the_Caribbean_en.pdf (Accessed 14/08/2020).
United Nations Conference on Trade and Development (UNCTAD). (2019b). Regional FDI at a glance: Developing Asia. Available from https://unctad.org/Sections/dite_dir/docs/WIR2019/WIR2019_FDI_Developing_Asia_en.pdf (Accessed 14/08/2020).Viettel. (2020). About Viettel. From http://viettel.com.vn/en/about#about-viettel [Accessed 17/04/2020].
Vy, H. (2017, 19 Sept). Viettel’s Peru branch makes $45-million 4G investment. Vietnam Investment Review [Online]. From: https://www.vir.com.vn/viettels-peru-branch-makes-45-million-4g-investment-53050.htm [Accessed 24/04/2020].
Yamakawa, P., Rees, G. H., Salas, J. M., & Alva, N. (2013). The diffusion of mobile telephones: An empirical analysis for Peru. Telecommunications Policy, 37(6-7), 594-606.
Zhang W., & Creswell J. W. (2013). The use of "mixing" procedure of mixed methods in health services research. Medical Care, 51(8), e51-e7.
Article Sidebar
Article Details
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under aCreative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).