How far can MNCs go with adopting local culture?

Author: Iloka Benneth Chiemelie

Published: 1st June 2014

Before he died in 2007, one of the things that my uncle encouraged me to do is “to always act like the Romans whenever I am in Rome.” He didn’t tell me to what extent I should act as a Roman, so I guess that simply means I must be fully Roman whenever I am in Rome. This should also be the case for MNCs in foreign country. They cannot act half like the local market or their activities could contradict with local norms and put the company at brink of boycott and potential losses.

A number of studies have been conducted in the area of understanding ambiguity in international markets and its effects in business culture (Feldman, 1991), but the common consensus from such studies is the need for companies to maintain high level of corporate integrity. If that is the case, a company’s integrity is put at risk if they decide to act outside of set cultural standards in their foreign market.

What about a case of discrimination where women are forced not to partake in some kinds of jobs? In countries such as Saudi Arabia, there is limited interaction between men and woman and this is often transferred into the job setting where woman are prohibited from undertaking setting work related activities like selling men underwear, pole dancing etc.  While westerners can view this as being discriminatory, it is important to understand that these countries have reasons for such culture and it is something that has been accepted by the people for years. Thus, coming into change such values as a foreign brand will definitely mean disaster. Punishments can also follow swiftly in the form of government bans and sanctions, as well as negative brand image from the side of the consumers. Thus, the best world be to act completely like Romans and respect all cultural views irrespective of differences from country of origin.

References

Feldman, M. S. (1991). The meanings of ambiguity: Learning from stories and metaphors. In: Frost, P., Moore, L., Louis, M., Lundberg,  C., Martin, J. (Eds.), Reframing organizational culture. Newbury  Park: Sage, pp. 145−156.