Knowledge of Culture and Politics as Critical Success Factors

Topics: Management, Culture, Globalization Pages: 12 (3400 words) Published: March 25, 2014


Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business

Dzulfakar Bin Abdullah
(Student no: 20131241445)
UiTM
Programme Code : BM 995
(Doctor of Philosophy in Business Management)
Course Code : MGT 950
(Global Strategic Sustainable Management)
Assignment 3: Theoretical Paper
Lecturer : AP Dr Roshidi Hassan

ABSTRACT

Business life in the new millennium is becoming increasingly global. The concepts of globalization apply to both large multi-national corporations as well as to local organizations. Knowledge of local culture and politics has become critical success factors (CFSs) for multi-national corporations in their effort for global expansion. Thus in enhancing the success of managing international business (IB) managers must have knowledge of local cultures and political situations. Research on the impact of local culture and political stability on successful management of international business has become of interest only recently due to globalization process. The paper reviews several literatures that try to prove that knowledge of culture and political situation as CFSs for the success of managing international business.

Keywords: Critical Success Factors (CFSs), Knowledge, Culture, Politics, International Business, Success.

Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business

Introduction
Globalization and international market development are phenomenon that allows industries to expand their market share. Thus, the expansion of industries into international market requires the cooperation of geographically and culturally diverse team to ensure success. Leaders in the international project arena today are more aware of the challenges and more excited by the opportunities to work with international teams and partners (Freedman & Katz, 2014). In exploring new market venues, companies face many internal and external, visible and invisible factors that influence the success or failure of their operations. These factors are categorized into political, legal, cultural, technical, managerial, economical, environmental, social, corruption and physical (Kwak, 2002). Research focusing on the issues of the conflicts between different cultures, traditions, politics as well as value systems has appeared in recent literature, but few focuses on the identification of critical success factors for investors in the global market (Yang & Lee, 2002). Hence, managers face additional challenges and this analysis seeks to identify whether knowledge of cultures and politics are critical factors in enhancing managers success in managing international business.

Definition of Terms
Critical Success Factors (CSFs)
The definition of success depends on the point of view of the person who defines it. Critical success factors (CSFs) is an element that is necessary for an organization to attain its goals. It is a critical factor or activity needed to ensure the success of a company or an organization. A lot of research has been done in defining “success” in international business. According to Moohebat et al., (2010) research on CFSs can be traced back to 1961, where Daniel first discussed “success factors” in management literature. CSFs can be defined as “those characteristics, conditions or variables that, when properly sustained, maintained or managed, can have significant impact on the success of a firm competing in particular industry” (Moohebat et al., 2010). Boynlon & Zmud (1984) defines CFSs as those few things that must go well to ensure success for a manager or an organization, and, therefore, they represent those managerial or enterprise area, that must be given special and continual attention to bring about high performance. CSFs include issues vital to...

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