The Influence of National Culture on Cross-Cultural Management Practices

Abstract

This study aims to explain how national culture affects cross-cultural management practices in multinational enterprises (MNEs). It explores how power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity, and long-term orientation influence styles of leadership, decision-making, and teamwork based on Hofstede's cultural dimensions and the GLOBE framework. 1,000 responses were received from employees and managers in five countries and five sectors through a cross-sectional survey. Descriptive statistical analysis showed that the mean scores of the leadership styles (Transformational M = 4.2, SD = 0.47; Transactional M = 3.9, SD = 0.50; Servant M = 3.9, SD = 0.49) and the decision-making practices were at a moderate to high level, indicating cross-cultural variation. The correlation analysis indicated a positive correlation between National culture and management practices
(r = 0.33–0.61, p < 0.01). Regression analyses indicated that culture significantly predicts leadership (β = 0.41, p < 0.001), decision-making (β = 0.36, p < 0.001), and team collaboration (β = 0.33, p < 0.001). These paths were confirmed by SEM, in which the influence of management practices on the effectiveness of cross-cultural management was obtained and had a value of β = 0.55 (p < 0.001). The cultural intelligence, international experience, and organizational support were found to be moderators (β = 0.27, p < 0.05), and control variables had little impact. The findings underscore the significance of culturally intelligent leadership in improving business outcomes, job satisfaction, team cohesiveness, and innovation. Some recommendations can be developed to integrate cultural intelligence into leadership training programs, HR practices, and good communication and conflict management. Further studies should consider longitudinal studies, industry-specific applications, and emerging economies to further enhance generalizability.