Interacting Spheres of Culture

Culture can be discovered in many places: Regional cultures within countries: urban vs rural, north vs south), Among groups of nations: (Nordic vs Latin American) Industry Culture: pharmaceutical vs automotive) Corporate cultures and sub cultures: Professional or functional groups REGIONAL CULTURES: Refers to differences within countries and similarities between countries. Regional cultures have evolved due to geography, history, political and economic forces, language and religion.

Product/market Characteristics: The need to protect patents or standardize products will influence the degree of information sharing. Regulation: Impacts on market conditions, such as level of competition which in turn influences customer orientation. Technology: Government regulation determines degree to which technology is developed and protected. Sources of Competitive Advantage: Concerns for efficiency over customer satisfaction, or cost effectiveness over quality, may predominate in heavy industries over service industry. Need for resources or different sorts of capital- financial human, intellectualdrive cultural differences in capital, labour and knowledge-intensive industries.

Interaction Effects: National culture can interact with industry culture to provide competitive advantage. PROFESSIONAL CULTURE:1. Reliance on judgment 2. Acquire judgment through intensive training, supervision, and socialization. 3. organizations are becoming network of specialists. 4. Proper behaviour 5. Dress codes. 6. Difference in beliefs, methods and values. INTERACTION EFFECT: Choice of profession depends on personal abilities, interests and values as well as social signals.

Functional Culture
Different Functions- finance, production, marketing, and R&D- have different cultures The reasons for these differences can be found in the external environment- stakeholder demands and the nature of the task - task interdependence- reciprocal versus sequential. Different functions will hold positions of power in companies at different times in history. Interaction effects: 1. Nature of the Industry 2. Corporate culture 3. National culture

Reasons for Differences in Corporate Culture

Role of Founder: Influence through their values and beliefs. Leaders: Through their vision, innovativeness etc. Administrative Heritage: Different structures, standard operating procedures or routines that evolve over a time shape culture by prescribing specific behaviour and reinforcing certain values and beliefs. Stages of development: Technology driven to market driven