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The International Headquarters–Subsidiary Relationship: Projecting Economic Cultural Influences on Management within Selected EU Countries

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  • Rune Gulev

    (Reutlingen Fachhochschule, Germany)

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    Abstract

    Through the recent European Union (EU) enlargement it is now supposed that there exists significant divergence within European economic cultures that can negatively impact international managerial functions. This article systematically investigates two dimensions through which economic culture can be measured and compared between four EU countries: Slovenia, a new Central European entrant into the EU, and Germany, Austria and Denmark, three westernized EU members, and projects their respective impacts onto several international management functions. The findings suggest that there exists a strong link between highly interpersonal and institutional trust driven economic cultures (IITDEC) to induce increased horizontal knowledge sharing. Further evidence was found, although statistically weaker, that IITDEC is negatively correlated to expatriate utilization. Results were also obtained regarding authority driven economic cultures (ADEC). A negative correlation between ADEC and decentralization was established as well as a negative correlation between ADEC and vertical knowledge flows.

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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/5_063-083.pdf
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    Bibliographic Info

    Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

    Volume (Year): 5 (2007)
    Issue (Month): 1 ()
    Pages: 63-83

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    Handle: RePEc:mgt:youmgt:v:5:y:2007:i:1:p:063-083

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    Related research

    Keywords: economic culture; headquarter–subsidiary relationship; international management;

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    References

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    1. Throsby,David, 2000. "Economics and Culture," Cambridge Books, Cambridge University Press, number 9780521586399, October.
    2. Matjaz Novak, 2003. "Analysis of the Nature of Economic Growth of Slovenian Economy," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 1(2), pages 153-167.
    3. Klarsfeld, Alain & Mabey, Christopher, 2004. "Management Development in Europe:: Do National Models Persist?," European Management Journal, Elsevier, vol. 22(6), pages 649-658, December.
    4. Milan Zver & Tjasa Zivko & Vito Bobek, 2004. "Is There a Gap in Economic Culture Between EU Countries and the Transition Economies?," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 2(1), pages 31-40.
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