Globalization

For the past several centuries, companies wishing to do business internationally had to face two major problems – geographical and temporal space.  However, with the emergence of virtually instantaneous communication methods, including telephones, computers, and video conferences, and the ability to be in almost any other part of the world within 24 hours, distance and time are no longer major concerns for operating on a global playing field.  In fact, coupled with the emergence of an international marketplace for most goods and services, all businesses today, from start‑up firms to large mature companies regardless of where they are located, must be prepared to operate and compete in a rapidly changing environment in which competitive opportunities and threats arise from a number of disparate factors: regulatory, economic, social, cultural, political and technological.  As a result, globalization has become a strategic imperative for firms looking to reduce manufacturing and other operational costs, secure additional access to necessary supplies and technologies, improve customer service and relations, and gain access to new markets for their goods and services.  Companies may also look at global operations as a way to manage risks and learn about new ways to improve operations in all locations throughout the company and to attract talented managers, engineers, and scientists who can make a contribution to the entire organization.  Firms must adapt to and embrace globalization or lose their competitive advantage and this requires thoughtful consideration of the choice of foreign countries and modes of penetration; the extent of localization and globalization in international markets; the degree of coordination among worldwide operations scattered throughout multiple locations, time zones and societal cultures; and the timing and sequence of internationalization plans.

The Sustainable Entrepreneur’s Library of Resources for Globalization consists of eight Parts. Part I provides an overview to globalization that begins by discussing  the reasons that firms are looking to globalize their businesses and the advantages that may be realized from entering new markets and tapping into foreign sources for functional skills, technology and management expertise.  Also included is a discussion of the various types of foreign markets and the strategies that companies may use for market entry and for overcoming some of the challenges associated with building an international company.  The Part also includes a chapter on globalization in developing countries including the degree to which those countries are integrated into the larger global economy and the strategies that firms from those countries are using to exploring foreign markets for sales, capital, human resources, technology and other business activities.

Part II discusses the challenges of designing a global organization and explores various strategies and structure that might be selected by growth-oriented entrepreneurial firms.  Part III covers a variety of topics relating to managing global business activities including evaluating foreign markets and developing an international business plan and export planning. Part IV lays out the framework for building and managing a global compliance program and includes specific chapters on import and customs compliance, export compliance, antibribery compliance and antiboycott compliance.  Part V discusses selling in foreign markets including export planning and negotiating and documenting international sales arrangements. Part VI discusses purchasing in foreign markets including import planning and negotiating and documenting international purchase arrangements. Part VII covers investing and operating in foreign markets including various strategies such as establishing foreign branches and subsidiaries, international strategic alliances and joint ventures, cross-border investments and cross-border mergers and acquisitions.

Part VIII provides a survey of cross-cultural studies that begins with the thorny and difficult issue of defining the term “culture” which is addressed by documenting various definitions offered by researchers from different fields and listing and discussing certain fundamental properties and components of culture that appear to be commonly recognized in the field.  The Part moves on to describe of the evolution and development of cross-cultural studies, including the search for universal questions and issues of the human condition that eventually led to a proliferation of models of cultural dimensions that are described in detail in the Part.  The Part also explores “country clusters”, which are groups of two or more countries that are deemed to be similar enough according to relevant dimensions to be grouped together. The Part discusses the dimensions most commonly relied upon in the clustering process and summarizes clusters identified in some of the major cross-cultural research studies.  In addition, the Part includes additional information regarding the various clusters such as tendencies of their members with regard to cultural values and preferred leadership styles and behaviors.

PROJECT PUBLICATIONS

Globalization: A Guide for Sustainable Entrepreneurs

Designing Global Organizations: A Guide for Sustainable Entrepreneurs

Launching and Managing Global Business Activities: A Guide for Sustainable Entrepreneurs

Global Compliance Programs: A Guide for Sustainable Entrepreneurs

Selling in Foreign Markets: A Guide for Sustainable Entrepreneurs

Purchasing in Foreign Markets: A Guide for Sustainable Entrepreneurs

Investing and Operating in Foreign Markets: A Guide for Sustainable Entrepreneurs

Cross-Cultural Studies: A Guide for Sustainable Entrepreneurs

Project Articles on Globalization

MANAGEMENT TOOLS

Checklists and Questionnaires

Questionnaire for International Joint Ventures

Training Materials

Cross Cultural Leadership

Cultural Environment

Culture and Leadership

Evaluating Foreign Markets (BCI)

Global Business Conditions and Implications for Management

Leadership Across Cultures

Leadership and Management in a Global Environment

Project GLOBE – Deciphering Cultures

Value Dimensions of Culture and National Differences

ADDITIONAL RESOURCES

Books

Legal Compliance Checkups: Business Clients

Business Counselor’s Law & Compliance Practice Manual

Going Global: A Guide to Building an International Business

Chapters or Articles in Books

Beyond Hofstede – Challenging the 10 Commandments of Cross-Cultural Research

Cross-Cultural Research on Organizational Leadership

Cultural Frameworks and Their Importance for Leaders

Culture and Leadership

Enriched Uppsala Model

Global Expansion – A Strategic Necessity for SMEs

Managing the Challenges of Globalization – Swiss SMEs

The Cultural Theory Jungle

Articles in Journals

Arabic Cluster – A Bridge Between East and West

Clustering Countries on Attitudinal Dimensions

Cross-Cultural and Comparative Management Research

Cross-Cultural Lessons in Leadership from Project GLOBE

Cultural Clusters – Methodology and Findings

Cultural Dimensions and Social Behavior Correlates

Cultural Diversity Implications for Workplace Management

Hofstede Model – Applications to Global Branding

Hofstede’s Country Classification 25 Years Later

Integrating the Strategy Formation Process

Leadership in the Asian Century – Lessons from GLOBE

Overcoming Pitfalls in CCM Research

The Many Dimensions of Culture

The Transfer of Western Management Skills to China

Theses and Dissertations

International Distribution Channels

Mechanical Engineering Design Across Cultures

The Internationalization of Indian Firms

The Internationalization of Vietnamese SMEs

Papers

Cross Cultural Organizational Culture Research

Cross-Cultural Differences in Entrepreneurial Activity

Cross-Cultural Organizational Behavior Research

Cross-National Transfer of HRM Practices in Subsidiaries of Multinational Corporations

Cultural Variation of Leadership Prototypes Across Europe

Entrepreneurship and Firm Formation Across Countries

Export Intensity of Venture Capital-Backed Companies

Fundamental Issues in International Entrepreneurship

Globalization of Firms

International Entrepreneurship

Navigating the Culture Theory Jungle

Online Articles

Guidelines for Successful Globalization by Hi-Tech Startups

Hofstede’s Five Dimensions

Online Databases

Business Transactions Solution

WEBINARS AND PODCASTS

West Legal Ed Center:  Click here for list of all programs presented by the Business Counselor Institute, an affiliate of the Sustainable Entrepreneurship Project, on West Legal Ed Center. Programs relating to globalization include several videos prepared for the Beyond the Bar training initiative and the following webinars (available on demand):

Business Counselor Institute on West Legal Ed Center

Beyond the Bar Training Programs

  • Globalization