Organizational vs. National Cultural Factors and Leadership

Seminar paper from the year 2021 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, AKAD University of Applied Sciences Stuttgart, language: English, abstract: In the current business environment, not only organizations and companies operate outside national borders, but also individuals leave their native environment and move to other countries or continents. This is not a new trend, international business activities have been taken place for centuries, but today they are part of the daily operations for many organizations. The reason is the ongoing globalization, especially since the 1960s, which results in increasing and tightening the relations between national economies as well as between companies.

In the multinational environment, we observe a transfer of knowledge, know-how, technology, and, of course, an interaction of different cultures.

In this context, the cultures are more difficult to decipher because the forces, that work behind the cultures, are often invisible, but they determine the behaviour of individuals. The cultural intelligence of the leadership is therefore essential not only for a survival but also for an effective and successful performance in a multicultural environment.