In addition, by examining the issues like militancy, terror groups, active trade union movement,

bilateral relations, I argue that the protectionist approach that should be shown by the
Headquarters towards MNCs performance. The phenomenon of threat whether perceived or real
needs to be explored. Positioning and performance of MNCs are constantly posed with this
challenge and concerned of Headquarters raise because other important factors like foreign
directive Investment, modes of payment, entry and exit barriers, International Human Resources
and Industrial Relations. The subsidiary mangers in MNCs often are influenced by these factors
and need constant updation of matters of sensitiveness.

From this study, two implications arise: Firstly, the extent to which China has expanded its
MNCs in India is very slow and nonexplorative. To compare 73 Indian MNCs those are currently
operating in China, to name of few are Marico, Dabur, Godrej, Tech Mahindra, Emani etc. In the
last two decades, only 6 telecommunication companies have established their operations in India
and have been successful. Chinese MNC like Fiberhome Technologies group, Huawei, Jiangsu
Overseas Group Corporation, China Shougang International Trade and Engineering Corporation
India, CMIEC India, ZTE (www.embassy.org). However, the Africa experience is providing a
greater participation to Chinese MNCs in the recent past. Probably, China enjoys a greater
mutual and reciprocal trust, economic win-win cooperation and smooth exchange of culture
between the two countries.

The point to be addressed in further research is whether trust deficit plays a vital role in ensuring
Chinese and Indian counterparts maintain arms length distance although they continue to be
projected as emerging superpowers in Asia. Secondly, I observed that the concept of
adaptability is a critical issue. Indian MNCs both Public Sector and Private Sector) greater local
responsive behaviour and high conformity to Headquarter strategies. Contrarily, Chinese MNCs
are primarily State Owned enterprises and strategically positioned MNCs are meant to actualize
the Headquarters directions. Therefore, there is extreme amount of Headquarter control.
Moreover, the subtle issues of strategic issues are coined as State Secrets rather than trade
secrets. China has been actively considering a tough draft proposal on State Secret law.

Therefore, transparency and disclosure of financial performance faces causality as State Secrets
are meant to be concealed. An issue of further research leads to find out the conflicting issues
between HQ state secrets and transparency and disclosure norms of host country where MNCS
operate.

The results presented in Table 8, indicate that results of analysis of variations. Contrary to our
hypothesis, in case of part of the table (Transferability of HQ Cultures to MNCs in host
countries), it is found that, in case of Chinese HQ and its MNCs where HQ Centralization and in
Indian HQ and its MNCs where high concern for task and on similar lines, in both cases,
compliance with disclosure norm between HQ and MNCs seem to be appear to be significant.
Hence, the Hypothesis 1a is rejected. It is also found that variables like HQ Decentralization,
High Concern for person and Freedom to make strategic choices in both countries perspective
has reflected that there is statistically significant difference. Therefore, Hypothesis 1b is
supported.

Hypothesis 2 signifies that importance legal compliance as this indicates the constant interaction
between HQ requirements and the degree of confirmation by the MNCs operating in the host
country. This shows that MNCs conform to the legal provisions of Host country. Further, Host
country might demonstrate a degree of relaxation by providing exemptions from Foreign Direct
Investments to move freely by ensuring that operating MNCs can explore and exploit their
business. This relationship in Part B (Compliance of MNCs to Host Country legal requirements)
in Both Chinese MNCs and Indian MNCs reflected statistically significance and hence,
Hypothesis 2a is supported. MNCs, largely both whether Indian, Chinese or African context
reflected that the degree of conformation between MNCs and governmental demands is less
where democratic approach is adopted.
However, since compliance of host country requirements by Indian MNCs mandatorily show
statistically significant difference in areas like adherence to legal compliance in host country,

open for inspection by regulatory bodies, confirmation to HQ requirements; engage in talented

and diverse workforce. Therefore, Hypothesis 2b is partially supported.

As shown in part C of Table 8, it deals with assertion of HQ on operating MNCs across

challenging workplace environment in host countries. Contrary to the hypothesis 3, it has not
supported for degree of assertion of HQ on MNCs. However, variables like Over concerned
about trade secrets, Trade union movement, positive bilateral relations showed statistically
significance is case of Chinese MNCs where in Indian MNCs context, Operations in risk prone
areas, Threats of militants, terror groups and positive Bilateral relations showed statistical
significance. Therefore, Hypotheses 3a and 3b not fully supported.

CONCLUSION

The ancient India society has been rooted through stringent rules and cultural norms. But,
modern India is molded with the fast track of economic development based on the western model
of development which consists of high dose of science and technology. Indian companies has
already started practicing westernized management style with cut through competitions, merit
and quality considerations and a no-non-sense approach to work ethics. Hence, this study is
conducted on Western and European MNCs working environment. This study focused on
cultural identity and knowledge management to identify the cultural influence of organisational
behavior pattern of Indian software engineers. More research is needed to validate the various
issues of cross-cultural management of Indian expatriates to European and Western countries.
Obtaining larger number of samples from different industries will ensure more reliability and
validity for the study.
Clearly, the statistical findings has shown that national culture (Hostede, 1980; Hampden Turner
and Trompenaar, 1997) has great impact on MNCs. It is true that the scope of National Culture

when looked beyond the five dimensions, it could give an in-depth perspective of how MNCs
could face the impact and how it could be measured. Irrespective of the fact that there are varied
forms of MNCs operating in different countries, yet the dynamics of working in the host country
still would raise issues of greater concern. I agree to the critiques of national cultures (Smith et
al. 1996), who state that the dimensions identified and examine by Hofstede may not be
comprehensive.

I also have identified that countries not only explore options to exploits resource by formulating
MNCs but also may envisage interest to capture strategic information that could be used by
parent institution. Therefore, I argue that this research would provide scope further inquiry how
MNCs who are susceptible to appreciate the pressures from the host country and deal with cross
cultural differences.