APPLICATION AND EFFECTIVENESS OF CROSS-CULTURAL MANAGEMENT STRATEGIES

Abstract

Globalization has significantly transformed the international business landscape, making multinational operations a crucial strategy for enterprises to achieve their objectives. In recent years, many companies have sought new growth opportunities in international markets. However, international expansion is fraught with challenges, particularly cultural differences, which can impede success. Chinese enterprises, for instance, have experienced both success and failure in foreign markets due to their ability or inability to adapt to foreign environments. This highlights the critical importance of cross-cultural management in international business. Multinational corporations face numerous challenges when managing personnel from diverse cultural backgrounds, including communication styles, work ethics, decision-making processes, and organizational hierarchies. Failure to address these differences can lead to low employee morale, high turnover rates, and even corporate failure. Empirical research indicates that many international business failures stem from cultural misunderstandings and mismanagement, as exemplified by the Daimler-Benz and Chrysler merger, which suffered financial losses and organizational turmoil due to cultural differences.