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Commitment for hire? The viability of corporate culture as a MNC control mechanism

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  • Welch, Denice E.
  • Welch, Lawrence S.

Abstract

This paper discusses the effectiveness of corporate culture as a control mechanism in the multinational context. While there is widespread managerial support for its use, there is also considerable challenge to the idea that corporate culture can be 'managed'. A review of relevant literature dealing with the internalisation of corporate values, organizational commitment, psychological ownership, and corporate identification provokes questions about the viability of corporate culture as a MNC control mechanism. Much depends on individual employee responses that range from support to outright resistance, and may be moderated by variables, such as managerial action and the extent of violation of the psychological contract. It is concluded that, in the long run, it may not be in the best interests of MNC management to have a strong corporate culture. A workforce of highly inculcated employees might, in fact, impede MNC management's need for strategic changes.

Suggested Citation

  • Welch, Denice E. & Welch, Lawrence S., 2006. "Commitment for hire? The viability of corporate culture as a MNC control mechanism," International Business Review, Elsevier, vol. 15(1), pages 14-28, February.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:1:p:14-28
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Manolopoulos, Dimitris & Söderquist, Klas Eric & Pearce, Robert, 2011. "Coordinating decentralized research and development laboratories: A survey analysis," Journal of International Management, Elsevier, vol. 17(2), pages 114-129, June.
    3. Šilenskytė, Aušrinė & Kohtamäki, Marko & Dhanaraj, Charles, 2022. "Strategy implementation in the transnational MNC: A critical realist investigation of European and Indian unit collaboration," Journal of Business Research, Elsevier, vol. 152(C), pages 276-289.
    4. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    5. Minbaeva, Dana & Rabbiosi, Larissa & Stahl, Günter K., 2018. "Not walking the talk? How host country cultural orientations may buffer the damage of corporate values’ misalignment in multinational corporations," Journal of World Business, Elsevier, vol. 53(6), pages 880-895.
    6. Sasaki, Innan & Yoshikawa, Katsuhiko, 2014. "Going beyond national cultures – Dynamic interaction between intra-national, regional, and organizational realities," Journal of World Business, Elsevier, vol. 49(3), pages 455-464.
    7. Dasí, Àngels & Pedersen, Torben & Gooderham, Paul N. & Elter, Frank & Hildrum, Jarle, 2017. "The effect of organizational separation on individuals’ knowledge sharing in MNCs," Journal of World Business, Elsevier, vol. 52(3), pages 431-446.
    8. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    9. Michailova, Snejina & Minbaeva, Dana B., 2012. "Organizational values and knowledge sharing in multinational corporations: The Danisco case," International Business Review, Elsevier, vol. 21(1), pages 59-70.
    10. Maria Rosaria Marcone, 2009. "THE COMPETITIVE REPOSITIONING OF SMEs WITHIN THE PROCESS OF INTERNATIONAL COMPETITION," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 101-122.
    11. Lena Zander & Karsten Jonsen & Audra I. Mockaitis, 2016. "Leveraging Values in Global Organizations: Premises, Paradoxes and Progress," Management International Review, Springer, vol. 56(2), pages 149-169, April.

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