Iranian Firms' Movement towards Transnational Firms: The Role of National Culture

Document Type : Original Article

Authors

1 Professor, Department of Management, Allameh Tabatabaei University, Tehran, Iran

2 Assistant Professor, Department of Management, University of Zanjan, Zanjan, Iran

3 Ph.D in Business Administration, Allameh Tabatabaei University, Tehran, Iran

Abstract

While scholars of globalization have generally described it as emerging through a major increase in global wealth, trade, and accelerated computer and communications technologies, the reality is that most of the wealth in the world is still generated through internal transactions rather than (international) trade, while communications advances have yet to touch billions of people around the world.
Culture has long been recognized as an important factor shaping international trade behavior. On a macro level, studies have shown that different cultures react differently to globalization and corporate development process. In addition, the national culture framework of Hofstede is also used to help explain variations in transnational and multinational corporation diffusion across countries.
According to the importance of national culture, in this article it’s role in international trade  and the process of globalization of transnational corporations was examined. The finding shows that among the national culture framework of Hofstede, only in three dimensions (power distance, individualism and masculinity) there is a significant difference between the culture of transnational firms. It could be said that the presence of  Iranian firms in the global markets may be affected by the same cultural dimensions that be mentioned above.

Keywords

References

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Journal of International Business Administration
Volume 1, Issue 1 - Serial Number 1
September 2018
Pages 1-24

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History

  • Receive Date: 04 May 2018
  • Revise Date: 18 May 2019
  • Accept Date: 03 June 2018

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