Review on Journal: the Relationships Among Cross-Cultural Management, Learning Organization, and Organizational Performance in Multinationals

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REVIEW ON JOURNAL ARTICLE: THE RELATIONSHIPS AMONG CROSS-CULTURAL MANAGEMENT, LEARNING ORGANIZATION, AND ORGANIZATIONAL PERFORMANCE IN MULTINATIONALS

Chich-Jen Shieh, I.-M. W.-J. (2009). The relationships among cross-cultural management, learning organization, and organizational performance in multinationals. Social Behavior and Personality , 37(1), 15-30.

This paper written by (Chich-Jen Shieh, 2009) emphasize on the relationship among cross- cultural management, learning organization and organizational performance in multinationals. The author wants to analyze the relationship between the three variables like “Corporate Cross-cultural Management”. “Learning Organization” and ‘Organizational Performance’. This issue comes to the author’s concerned because of the world now becomes global. Many people from the various countries works in the Multinational Enterprise (MNEs) in the host country. As all aware, these people have many differences in term of their cultures, religion, history and society, which certainly give rise to cultural conflict for many reasons including ethnocentrism, culture misreading and different cultural attitudes. Due to this, very high failure rates in joint venture which about 30% to 40% generally resulted from the neglect of cultural differences.

The methodology used by the researcher is first by divided the corporate cross-cultural management into four dimensions: Localization Construction, Multi-cultural Coexistence, Cultural Conflict, and Cultural Mergence (Schein, 1985). Whereas the Organizational Performance was divided into five dimension: Motivation Models, Leadership, Organizational Culture and Environment, Work Design, and Human Resource Management policy (Chien, 2004). Learning Organization was divided into five dimensions: Personal Mastery, Improving \Mental Models, Building Shared Vision, Team Learning and System Thinking (Senge, 1994). 793 questionnaires about the variables of Corporate Cross-cultural management, Organizational Performance and Learning Organization distributed to the directors and staff of 250 multinationals in the Suzhou Industrial Park the most densely settled location for multinationals. The questionnaire used 6-point Likert scale.

The researcher conducts four hypotheses in this study which are; H1 state that a positive correlation exist between corporate cross-cultural management and organizational performance. H2 state that, a positive correlation exists between learning organization and corporate cross-cultural management. Whereas H3 claims that a positive correlation exists between learning organization and organizational performance. H4: learning organizations has an impact on the correlation between corporate cross-cultural management and organizational performance. H4 hypothesis was split into four sub hypotheses, H4a, H4b, H4c, H4d. H4a indicate that learning organization can enhance the positive correlation between the localization construction dimension and the five dimension of organizational performance. As for H4b the hypothesis is learning organization can enhance the positive correlation between the multicultural coexistence dimension and the five dimensions of organizational performance. H4c state that learning organization can enhance the positive correlation between the cultural conflict dimension and the five dimensions of organizational performance. The last H4d hypothesis assumes as learning organization can enhance the positive correlation between the cultural mergence dimension and the five dimensions of organizational performance.

The results of Pearson’s correlation analysis showed that the four dimensions of Corporate, Cross-cultural Management have a positive correlation with Organizational Performance. Therefore HI is tenable. Learning organization has a positive correlation with the four dimensions of Corporate-cultural Management. Therefore, H2 is tenable. H3 is considered tenable when learning...
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