The Cultivation of Cross-Culture Management Capability Through Strategic Alliances

Essay by hongsenwang December 2007

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The Cultivation of Cross-Culture Management Capability Through Strategic AlliancesLiu YingNorwegian School of ManagementAbstractAs we enter into an era of new economy, we are facing abundant oppurtunities as well as challenges never encountered before. Globlizaiton is one of the much-talked-about aspects of the new economy, however, while meaning a larger market, it also poses great challenges against us. Cultivating the ability of cross-cultural management is one of the major challenges brought about by globalization. How to deal with this challegne is an interesting research topic which has received increasing attention from lots of researchers. This paper will discuss the development of the capability of cross-cultural management by means of establishing international alliances.

SECTION ONE INTRODUCTIONWith the introduction of the new economy, many theorists and practitioners in the business circle believe that cooperative arrangements will speed up in the future. If we look at the main characteristics of the new economy, we shall understand why they come up with that conclusion.

What we read or hear through the mass media most frequently concerning the new economy may be such words as "information", "knowledge", "innovation", "globalization", and so forth. All these concepts associated with the new economy indicate that in this new era, economy is crossing the old boundaries and economic activities are being conducted without geographical limitations. To have good performance in the new economy demands new skills that could not be obtained without seeking for new ways of cultivating such skills. As an important element of the new economy, globalization is winning more and more attention and is touched upon in a huge body of literatures. One key problem in globalization is that firms will encounter greater difficulties in a culturally different environment than in their home countries. The failure to cope with cultural differences will, most likely, result in poor...