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Introduction
Emerging technologies in the fields of communication and transport have opened access to the international market for mid-sized and large corporations. It is common to find American companies operating in China and Japanese firms having their branches in the United Kingdom or Russia. According to Britnell (2019), globalisation has made it easy for firms to operate in the international market. Most of the trade restrictions that existed in the past have been eliminated as countries come to understand that they cannot isolate themselves from the global community. As Ahammad et al. (2017) explain, firm seeking to enter a foreign market can choose one of the many strategies based on its size, government regulations in the foreign market, specific goals that should be realised within a given period and many other factors. Foreign direct investment, joint ventures, franchising, mergers and acquisition, partnerships and licensing are some of the popular strategies that a company can use to make an entry into a foreign market.
Joint venture is one of the popular strategies that companies often use to explore new markets. In China, many American, British, French and Canadian companies have had joint ventures with local firms as they focus on exploiting opportunities in this market (Adams, 2016). The strategy is considered suitable when a foreign firm has a limited understanding of the local market. By partnering with a company that already exists in the local market, the foreign firm will not have to spend many resources on market research and popularising their brand. Operational costs will be shared by all the parties involved based on the agreement they make. However, Yunker (2017) warns that this strategy is often affected by cultural differences of the organisations involved in the deal. Work culture and ethics in the United States is significantly different from that in Japan. When companies from these two countries have to work as a unit, the management must first find effective strategies of dealing with cultural differences (Huanga and Crotts, 2019). In some cases, managing these cultural differences becomes a major challenge that may impede the normal operation of the new company.
The researcher is interested in investigating factors that affect the cultural integration of joint ventures, especially when the companies involved are from different countries. Kedmenec and Strašek (2017) argue that the desire to investigate this issue was motivated by the increasing cases of failures of joint ventures in China. The country remains one of the most attractive markets for large and mid-sized corporations not only because of the size of its population but also its advanced technology and improved infrastructure. However, cases where foreign firms struggle to achieve success locally are becoming alarmingly high (Britnell, 2019). This paper is important to practicing managers because it provides them with crucial knowledge that can help them avoid mistakes that other companies have made in their joint venture strategies. Policy-makers will benefit from this study because they will understand how laws they make affect the business environment in the country. To the academics, this report will enrich knowledge in the field of cultural integration in joint ventures.
Outline of the Topic
The researcher chose this topic because of its increasing relevance in the modern business environment. Other people will find the study interesting because of the many challenges that large corporations face as they try to embrace joint ventures as a means of expanding to new markets. As Okwir et al. (2018) explain, it is often easier for an organization to partner with firms that are already successful in a new market to avoid challenges of dealing with new market forces. However, this approach is often riddled with cultural challenges that make it difficult for companies to work as a unit. When two independent companies have to work as a unit, one of the important factors that should be addressed is the need to create a culture that all parties find acceptable. Adams (2016) argues that finding a middle ground in such cases may be a major problem if the two companies are from different countries with conflicting cultural practices. This review came at a time tome when many companies are struggling to have successful joint ventures in China. The outcome of this investigation will offer them a proper guide on how to select their partners and how to inculcate working relationships that can guarantee these firms desired levels of success.
The researcher was keen on using an effective method of conducting the literature review. As Britnell (2019) advises, when conducting a literature review, it is critical to find reliable sources that can help in gathering the right data. It was crucial to collect data from specific sources in the study. Google and Google Scholars are popular among scholars when searching for online sources. However, they were avoided in this study because they have been criticised for their inability to filter these sources to ensure that only those that are peer-reviewed are made available. The researcher made sure that only peer-reviewed research papers from ABS listed journals are included in the study. The strategy was meant to ensure that research papers used met specific quality criteria desired in the study.
The researcher used various key words and phrases in the study to conduct research. They included joint ventures, cultural integration, globalisation, market entry strategies among others. The inclusion criterion was that the source had to be peer-reviewed journal. The source must have been published within the last 10 years to ensure that information provided is current. It was also necessary to have exclusion criteria. Books were excluded because they were not considered peer-reviewed sources. Older sources published over 10 years ago were also avoided. Web pages and blogs were also classified as non-academic sources that could not be used in the study. The researcher was able to identify 60 academic papers. 24 were discarded for various reasons, which meant that the researcher remained with 36 peer-reviewed sources.
Critical Reflection on Methods
The researcher chose the narrative literature review, also known as traditional literature review as the most appropriate method for this study. It critiques and summarises a body of research then draw conclusions about the study that has been undertaken in a particular subject (Kedmenec and Strašek, 2017). It helps in providing a comprehensive background of issue being investigated, synthesising information from different sources, identifying potential knowledge gaps and presenting findings in a simple traditional approach. The main advantage of this method of literature review is that it is simple to use and it focuses on providing synthesis of knowledge on a given topic. According to Okwir et al. (2018), this method is essential when conducting an investigation on a topic that is widely researched. Joint ventures and how they are affected by the problem of cultural integration is a topic that has attracted the attention of many scholars over the recent past (Britnell, 2019). As such, finding the right materials for the study was not a major challenge. Using the strategy discussed above, the researcher was able to access the important materials that were needed for the study.
It is important to note that this method has some disadvantages worth noting. This method is not as rigorous in reviewing literature as systematic literature review. As such, it may not be the best method of answering highly structured questions. However, this limitation was not a major concern in this study because the researcher was able to achieve the intended goal in the study.
Tabular Analysis
The preliminary review of the literature that was conducted at the proposal development stage showed that various factors can affect the cultural integration of joint ventures. One can choose various strategies of analysing the issue, as Lu et al. (2018) observe. In this case, thematic review of the literature was chosen as the most appropriate approach. The six dimensions of Hofstede model was chosen as the standard themes that can help in reviewing different themes that explain how cultural integration can be affected by joint ventures. Table 1 below shows sources used based on their classification into the six themes.
Literature Review
Introduction
In the section above, the researcher defined the inclusion and exclusion criteria that were observed in selecting appropriate sources for this study. The researcher was keen on identifying peer-reviewed empirical studies to help in investigating factors that affect the cultural integration of joint ventures. The research proposal outlined the significance of selecting sources from specific databases. Journals which appear in the ABS journal list were considered reputable enough to be included in this investigation and they formed the basis of this review.
Analysis of the Literature
The findings from this narrative clearly indicate that numerous factors affect cultural integration of joint ventures within a given country. In the proposal, it was indicated that the review will take the form of thematic analysis. Other strategies such as classifying sources based on their year of publication or methods that were used would not facilitate effective investigation of the issue. Thematic analysis made it possible to articulate these factors and how they impact on cultural integration in joint ventures. The researcher classified these themes based on Hofstede’s model of cultural dimensions. As shown in table 1 above, sources were identified that discusses each of the six dimensions of Hofstede’s model. They explain how cultural conflicts often arise in an organisation and steps that can be taken to address these issues.
Power Distance Index (PDI)
Power distance is one of the elements in the Hofstede’s model. According to Shirodkar, Konara and McGuire (2017), this element defines the measurement of the acceptance of hierarchical power by individuals within a given society. In some countries, there is an extreme respect for those in authority. A good example is North Korea where the leader has absolute power. This power is shared with those who are appointed to various positions to help the ruler government the nation. Lu et al. (2018) argue that the society has embraced this culture of extreme power and rarely do they question instructions issued by those who are holding superior positions. The Arab countries also have such high power index where people highly respect individuals in powerful positions. Kedmenec and Strašek (2017) explain that in a culture with high power index, communication flows through well-defined channels and no one is expected to go against it. On the other hand, countries with low power index embrace a less strict and less rigid leadership approach. Subordinates and members of the society can easily challenge those in authority and they expect their views to be taken into consideration when making important policies (Mehta and Dementieva, 2017). Countries such as Austria, the United Kingdom and the United States have low power distance index. Those in position of power must understand that they serve people and must respect their opinion.
In the business context, power distance index is crucial in defining the communication approach and the general relationship among people holding different positions of power. In the United States and Austria where the power distance index is relatively low, most companies embrace open-door communication approach where junior officers can easily contact their superiors when they have an issue that they feel should be addressed (Ahammad et al., 2017). When it comes to policy-making, top managers are expected to consult their subordinates, especially if the new regulation is likely to affect everyone in the organisation. The management approach is more flexible and leaders understand that sometimes they can be guided by the expertise of their juniors. On the other hand, companies in countries such as North Korea and the Middle East, the approach to human resource management is significantly different. Communication follows a strict hierarchy, where a junior officer is expected to report to the immediate supervisor (Wang, Rieger and Hens, 2017). At no point is one expected to question the authority and instruction of the one who is senior to them. The culture that an organisation embraces often reflects the societal beliefs and practices.
When companies from two countries have a joint venture, one of the issues that the management has to address is cultural integration. They have to agree on the acceptable rules and regulations that would guide communication system and the management of human resource. Boon, Hartog and Lepak (2019) explain that the power distance index gap will define the ease with which the integration can be achieved. A Chinese company can easily integrate with a North Korean firm because the gap is insignificant. In both countries, there is a strict respect to those in authority. However, challenges emerge when a Chinese firm has to integrate with an Austrian company.
In Austria, it is normal for people to challenge those who are in power. That is not the case in China. If such practices are embraced in the joint venture, Mehta and Dementieva (2017) argue that there can be a culture shock. The same will be the case when rigid leadership is forced on an Austrian employee who believes that they have the right to express their views freely and contribute towards policy development (Courtney, Goldenberg and Boyd, 2020). In such cases, it may take a while for the two companies to agree on a standard practice that they need to embrace. It is always advisable to blend the two cultures but in a way that remains sensitive to beliefs and practices in the host country. Employees of the foreign firm must be ready to learn how to operate effectively under such new rules.
Individualism vs. Collectivism (IDV)
Individualism versus collectivism index is another factor that defines the culture in a given country, which ultimately influences a culture that an organisation embraces. According to Tianet al. (2018), a high IDV score means the culture places great emphasis on individualism. Such people value privacy and are not bothered by successes or failure of others. They work to better themselves and believe that that everyone has the right to lead their lives the way they deem fit as long as they do not interfere with the rest of the society (Cyr, Gefenand Walczuch, 2017). They rarely mix work life with social life and believe that it is necessary for people to have debates as the only way of expressing one’s ideas towards a given issue. They take up personal challenges and often acknowledge individual accomplishments (Suryanto, Thaib and Muliyati, 2019). Many countries in the west, especially in North America and parts of Western Europe have a high IDV score.
A culture that has low IDV score embraces collectivism. It emphasises the need to have a collective success instead of individual accomplishments. Shahid (2017) argues that one has to view self as part of the larger system and that their actions should be focused on achieving the success of the entire community. People are encouraged to avoid actions that may threaten unity of the team. Maintaining harmony within the group is given precedence over one’s desire to achieve personal ambitions (Xia et al., 2019). In such a culture, people are encouraged to avoid giving negative feedbacks if it may elicit disagreements. They have to follow the guidance of those in power as they are believed to have the wisdom needed to guide the team. A company is likely to embrace the culture that is common in the country. It means that collectivism is common among countries in Africa, China and other parts of Asia. On the other hand, many organisations in the United States and Western Europe are more likely to embrace individualism.
In a joint venture, when a French firm has to work alongside a Chinese company as one organisation, it is expected that there will be a culture clash. The Chinese company will prefer having a setting where people focus on the overall success of the organisation (Xiaet al., 2019). It means that individual output may not matter much if the success of the entire organisation is compromised. It means that employees must focus on working collectively to achieve the desired organisational goal. On the other hand, the French company will take a different approach to enhancing success. They will emphasise on the role of an individual in ensuring that the entire organisation is a success. It means that they may suggest embracing policies such as performance measurement where the company regularly evaluates the output of an individual employee to determine their actual value to the organisation (Arieli and Sagiv, 2018). Such policies are rare in organisations that embrace collectivism as a culture that defines an organisation’s operations. Such major differences may have major negative impact on cultural integration of the two companies. The top managers must find ways of creating a harmonious working relationship.
Uncertainty Avoidance Index (UAI)
Uncertainty avoidance index is another important factor that defines the culture of a society. In a culture where uncertainty avoidance is high, people will try to avoid taking actions that may not yield specific outcome. These people will avoid untested practices because they feel it may have undesirable consequences. Stojcic, Kewen and Xiaopeng (2016) argue that people in low-income countries tend to be risk averse because they lack alternatives if one of the options they have fails to work. On the other hand, people with low uncertainty avoidance index tend to be explorative. They understand the fact that sometimes they can fail to achieve their goal when they try something for the first time (Singh, Chernikov and Singh, 2017). They believe that even if they do not succeed in their first attempt, it will be a learning curve. As such, these people tend to be innovative as they try to learn how to undertake different tasks using various approaches. Uncertainty avoidance index is low in high income countries such as in the United States and parts of Europe (Tiwari, Patro and Shaikh, 2018). These people know that if they fail in one endeavour, they will have alternative ways to achieve success.
When two companies from different countries have a joint venture, uncertainty avoidance may be a major concern that may cause culture conflict. In China, there is a culture of avoiding uncertainty. Most of the businesses prefer venturing into opportunities where they can predict and easily control the outcome (Rhee, Alexandra and Powell, 2020). On the other hand, many American firms do not fear experimenting. The problem is that such experiments often result into failure when they are tried for the first time (Jang et al. 2018). The belief that such failures provide a path to success makes these companies to embrace these experiments. One must understand that such failures involve costs that the company have to incur (Yoo and Lee, 2019). All the parties in a joint venture must agree on the approach that has to be taken when dealing with risks to ensure that there is harmony within the organisation.
Masculinity vs. Femininity (MAS)
This index focuses on the roles between men and women in the society. In a society with a high MAS index, there is a distinct role for men and women. Chowdhury (2017) explains that in such societies, gender roles do not overlap and one is expected to behave in accordance with their gender. In such societies, men are expected to demonstrate their ability to provide for their families and to achieve success despite challenges that they may face. Women are expected to be less aggressive, especially when they have to compete against men. Japan has one of the highest scores in MAS index. Countries with low MAS index do not place emphasis on one’s gender when assigning roles and defining expectations. Gender roles overlap and the only factor that is often considered when assigning responsibility is the capability of an individual. In a business environment, promotions are rarely based on one’s gender. Instead, one focuses on the commitment, experience, capabilities and such other traits that an individual demonstrates (Yang and Merrill, 2017). Sweden has one of the lowest MAS index and women enjoy equal opportunities as men.
Challenges often arise when two or more companies with conflicting MAS cultural practices merge to work as a unit. As Mehta and Dementieva (2017) observe, such differences may limit cultural integration in a company. When a Swedish firm considers partnering with a Japanese company on a joint venture, issues may emerge in their cultural integration. The Swedish firm will expect their partner to respect and accord women equal respect and opportunities as men (Shahid, 2017). On the other hand, the Japanese will be expecting women within the company to be less aggressive and willing to give way whenever it comes to a competitive pursuit of a goal against men (Ott and Michailova, 2018). The Japanese have embraced the culture that gives men priority on various issues in the workplace. They are viewed as hardworking people with the capacity to endure both physical and emotional challenges that may arise at work. On the other hand, the Swedish believe that toughness and commitment of an individual cannot be defined by their gender (Seeck, 2019). The two extremes in the MAS index will have to be moderated to create a harmonious workplace environment.
Long-term Orientation vs. Short-term Orientation (LTO)
Long-term versus short-term orientation may not seem to be a major factor that defines the culture of a society, but Savino, Petruzzelli and Albino, (2017) explains that its significance cannot be ignored. In countries with short-term orientation, people focus on how to achieve success in small tasks that have to be completed within a week or a month (Agostini and Nosella, 2017). There is a belief that the only way of achieving a long-term vision is to break a major project into small tasks then focus on completing these tasks within a given period. The United States is one such country where short-term orientation is high. On the other hand, long-term orientation focuses on futuristic success (Tower, Hewett and Fenik, 2019). Emphasis is placed on ensuring that a clear platform for future success is created. Such people acknowledge that it is possible that one can fail in their short-term tasks but they will be considered successful if they are on the path towards achieving long-term goals.
When two companies with such a conflicting culture have to work on a project as one entity, differences are likely to emerge. López‐Duarte, Vidal‐Suárez and González‐Díaz (2016) argue that one of the problems that may arise is in planning of tasks. The company with short-term orientation would prefer breaking the entire project into simple tasks that have to be completed within a short period. These tasks must then be assigned to specific individuals who have to complete them successfully using given resources. The management will be interested in ensuring that each of these tasks is completed successfully within the schedule. On the other hand, the company with the long-term orientation would want an approach that emphasises on the overall success of the entire project (Dumetz and Cadil, 2018). They may want an approach where people work on different aspects of the project but with the goal of ensuring that the entire team is successful. Individual’s performance should not be given precedence over that of the entire organisation.
When facing such a major cultural conflict, Okwir et al. (2018) explain that it is essential for parties involved in the venture to accept the existence of such a major difference and agree on the approach that needs to be followed. It is essential for the parties to understand the goal that they need to achieve through the joint venture. They should then assess forces both in the internal and external environment. They can then determine a culture that would be most effective in achieving the desired goal based on the forces that have to be managed. Cultural integration may become a challenge if each of the parties involved fails to embrace the need to compromise, especially when they are presented with new facts that their organisational culture ignored.
Indulgence vs. Restraint (IND)
The model identifies indulgence versus restraint as a major cultural difference that may have a direct impact on cultural integration in a joint venture. In countries with a high IND ratio such as the United States, people are encouraged to have gratification and enjoy their lives as events may allow (Özdaşli, Penez and Koca, 2016). They can celebrate their small achievements without the fear of being attacked. In such countries, there is always the belief of a better tomorrow. As such, they do not have to fear about the future. Their focus is to concentrate on realising their dreams and enjoying every milestone that they make (Guoet al., 2018). People are encouraged to focus on personal happiness in such a setting. Freedom of speech is also encouraged as a virtue that creates a harmonious workplace environment. There is a belief that the success of the organisation depends on the ability of everyone to express their views and to participate actively in policy development and implementation.
On the other hand, countries with low IND index have a complete opposite view to life and progress in the society. Achim, Văidean and Borlea (2020) explain that in this culture, people tend to be pessimists. They have a constant fear of the unknown in everything they do. As such, they feel that they are not entitled to celebrate the little success they have. In this restrictive culture that is common in Russia and other parts of Eastern Europe, people are expected to be constantly aware of the possibility of failures that may erase all the small gains that had been already made. As such, secrecy is highly encouraged as one works on a project. Celebration can only be acceptable when the entire project is successfully completed (Lu et al., 2019). People are expected to avoid making jokes in formal settings because it may create lack of seriousness towards undertaking a given task. Junior officers are expected to respect and strictly follow guidelines provided by those in power (Luria, Cnaan and Boehm, 2019). Criticising the authority is highly uncommon in such a setting.
A joint venture between an American firm and a Russian corporation may likely face such challenges that may affect their operation. Achieving cultural integration in such a setting may be a big challenge. The American firm will favour an environment where everyone can speak freely and celebrate the small successes that they make in different assignments given to them. Tower, Hewett and Fenik (2019) argue that the company may also encourage its employees to be actively involved in policy development and implementation by creating communication avenues for everyone. On the other hand, the Russian company may prefer taking a stricter policy where workers have to avoid indulgence until such a time that success is guaranteed. They are expected to have the view that failure is a possibility and when it occurs, it can erase all the progress that had previously been made. They have to remain focused on achieving the larger goal instead of focusing on small successes.
The Russian company would also find it difficult having a communication platform that makes it easy for employees to contact their superiors without following the strict communication hierarchy (Huanga and Crotts, 2019). They believe that subordinates must follow instructions of their superiors without question. Achieving cultural integration among such two companies would require compromise in both cases. Parties must understand the fact that the only way that they can work together in a joint venture is by creating a new culture that makes everyone comfortable. Just like in the above cases, the compromise must be based on the realities that these companies face in the market.
Summary
Hofstede’s cultural dimensions have become a major tool that defines challenges which often arise when two companies have to work together in a joint venture. The model identifies six major sources of differences in cultural practice. The study shows that organisational culture is often defined by socio-cultural practices within a country. A company in China is likely to develop an organisational culture that reflects directly on the culture of the community. Fears, aspirations and ambitions of the people of a given country will be reflected in the practices of the country. When a company has to merge with another which comes from a country with significantly different socio-cultural practices, the cultural divide may be pronounced. When an American company has to enter into a joint venture with a Saudi Arabian company, there must be an understanding that people with diverse socio-cultural and religious practices will be brought together.
The problem that often arises in such cases is that what one group views as a standard practice may be offensive to the other group. The Saudi Arabians may have the belief that women should not be given the opportunity to make major contributions on major policy developments because that is what their culture dictates. However, such a belief may be offensive to a young female American executive who believes that she can make a positive difference in the organisation. Similarly, an American executive may have a feeling that issues about religion should not be allowed to affect the ability of a firm to achieve its goals. A Saudi national may take offence with that because of the belief that prayer should be given precedence over any other activity.
Addressing cultural conflicts in joint ventures depends on various factors. One of the steps that a company should take is to select a partner that has a relatively similar organisational culture. It means that when an American company is seeking to have a joint venture with a foreign firm so that they can enter the Chinese market, it is advisable to partner with a British company that is already operating in China. It is likely that cultural differences may not be as big as when the company has to partner with Russian firm. In some cases, it may not be easy to select a partner from a preferred country. In China, most of the foreign companies prefer partnering with local firms that have a proper understanding of the local market. In such a case, it becomes necessary to develop a new culture that every party considers accommodative. As shown in the literature review, each of the parties must be willing to concede something to ensure that they create a system where everyone feels comfortable. They should be guided by both internal and external forces within the country where they operate.
Analysis and Critical Discussion
Findings made in this study have significant implications to practicing managers. The study shows that one of the main reasons why joint ventures fail to achieve their intended goals is because of the inability to integrate organisational cultures of the companies involved in the merger. As Adams (2016) observes, managers have the responsibility of assessing the difference in cultural practices and developing a plan of addressing it. Cultural integration will involve creating a culture that all the parties find acceptable. The new culture must take into consideration the national culture of the host country. It means that if an American company partners with a Chinese firm to start operations in Saudi Arabia, the management of the new company must ensure that the new culture reflects the national culture of the country. It should also take into consideration the organisational culture of the two partnering companies from different countries. It is the responsibility of the management to create an enabling environment suitable for all the companies involved in the project.
The policy-makers have an important role in creating an enabling environment for foreign firms seeking to have joint ventures with local companies. The political class have an important role of enacting laws that define operations of businesses in the market. It is common for these politicians to enact laws that may be considered friendly to local corporations. However, in the current competitive business environment, such protectionist approaches may not help local firms because they will not have the capacity to compete favourably in the global market. Some of the cultural practices may also be entrenched or discouraged by the policy-makers within a country. Saudi Arabia is keen on reducing the high MAS index by promoting women to powerful leadership positions. Such practices may help create an environment that foreign firms can flourish. In academics, this report will provide an important source of knowledge about cultural integration in joint ventures. Hofstede’s cultural dimension has been discussed in detail in this dissertation and this information is essential for scholars keen on conducting literature review on the topic.
Cultural integration in joint ventures is critical in ensuring that there is success in such business partnerships. When two or more companies come together to work as a unit to achieve specific goals, one of the most common challenges that they have to address is creating a harmonious workplace environment. When the companies come from different countries with conflicting socio-cultural practices, the gap are organisational culture is likely to be big. Even when the organisations are in the same country, it is highly unlikely that they may have a similar organisational culture. Hofstede’s cultural dimension identifies six primary sources of differences that will emerge in such a setting. The primary role of top managers in such joint ventures is to address these differences and create a new organisational culture that is accommodating to everyone.
In academics, this study will have a significant implication. According to McDuff, Girard and Kaliouby (2017), cultural integration in joint ventures is becoming a major concern for companies seeking partnerships in foreign markets. Studies have shown that one of the factors responsible for failure of these joint ventures is the inability of the companies involved to understand and appreciate the impact that cultural differences may have on a firm’s normal operation. This study will provide important information in management education. It will be possible for current managers who are furthering their education to understand how they can identify these problems to find effective ways of solving them. As Luria, Cnaan and Boehm (2019) explain, it is not possible to solve a problem if it has not been identified and clearly defined. It means that managers must start by acknowledging that cultural differences may be a challenge if it not handled in an appropriate way. When the problem has been identified, the next step is to find a way of achieving cultural integration. They have to create a harmonious workplace environment where all stakeholders will feel comfortable.
The document will have a major implication to future research. The primary goal of the researcher in this academic project was to identify specific factors that affect cultural integration in joint ventures. Information presented in this paper will be critical for future scholars interested in understanding how culture affects joint ventures in different markets. Sources used in this review are credible, which means that the document can be used to provide critical data for other studies. The approach that the researcher took to assess and select appropriate sources was rigorous. Embracing a similar approach is highly advisable when a researcher is interested in identifying credible secondary data sources.
Parties involved must first acknowledge the existence of these major differences. They must appreciate the fact that each company has its unique cultural practices defined by local forces that define its operations. They must value the culture of the other party even if it is completely opposite to what they consider acceptable. The companies must then agree to create a new culture that is a compromise to both based on the forces that they have to face in the new market. The study strongly suggests creating a culture that will reflect socio-political practices in the host country. The approach will ensure that host country nationals will not face serious challenges working for the joint venture. Customers must also find these practices acceptable and aligned to their beliefs. The researcher believes, based on the critical analysis above, that joint ventures can only succeed if cultural conflicts are effectively addressed. Employees from the two companies have to learn to work as a unit under the new environment.
Conclusion
The review of literature has identified many factors that affect cultural integration in joint ventures. The researcher used a wide variety or journal articles conducted using different research methods to understand how these forces affect cultural integration. Findings show that there is a significant difference in cultural practices in different countries despite the current globalisation. Companies in the Middle East have unique organisational culture that is significantly different from practices that are embraced by American companies. If two organisations from these two countries have to work together, they have to find ways of addressing these differences. Although there were no major inconsistencies noticed during the tabular analysis, it is important to note that different sources propose different ways of managing cultural differences.
It is necessary to address strengths and weaknesses of the study. One of the main strengths of the study was that sources used were high quality. The coverage of the literature was appropriate and adequately addressed the issue under investigation. The number of sources used was also adequate enough to address the issue in a comprehensive way. Authors of these journal articles used appropriate methods that focused on understanding various factors that affect cultural integration in joint ventures. The sample sizes in the selected articles were adequate enough to meet the level of saturation needed to provide relevant information about cultural integration. It is important to admit that some of these studies had weaknesses worth mentioning at this stage. The biggest weakness in the study was that most of the sources available focused on comparing the west, especially the United States and Western Europe, with other parts of the world. It was not easy finding sources published in the developing countries that compare them with the rest of the world. Findings made in this study emphasized the need to manage cultural conflicts in joint ventures because of its significance in ensuring that all stakeholders can work in a harmonious environment.
Learning Statement
When conducting this research, I have learnt that culture plays a critical role in defining success of joint venture. Previously, I believed that resource allocation and management was the principle reason why many joint ventures fail within the first five years of their operations. Through this study, I have realised that cultural difference is also a major contributor to such failures. Successful companies have learned unique ways of achieving cultural integration. I have leant that managers have to be ready to embrace new beliefs and practices when they decide to explore foreign markets. They have to realise that success of their organisations depend on how well they relate with their customers and the environment that is created for the workers. I have learnt that it is easier for companies from the same country or from countries with similar socio-cultural, economic and political landscape to achieve cultural integration in joint ventures.
This study enabled me to understand the significance of selecting appropriate sources for an academic study. Before starting this project, I trusted Google Scholar as an important online database through which one can have access to reliable sources, especially journals. However, the strict criteria of selecting journals, which focuses on using ABS listed journals, made me realize that not all online databases have reliable sources of journal articles. Google Scholar is not entirely useless as it also has useful articles. I leant that the problem is that it has so many sources, some of which are not reliable. As such, in case one decides to use this database to access data, care should be taken to ensure that only peer-reviewed journals are used.
When conducting this study, the main difficulty that I encounter was having access to the right literature. It was necessary to ensure that all these sources met strict inclusion/exclusion criteria. As such, many sources had to be rejected because they did not meet the set criteria. The current COVID-19 pandemic also limited my ability to have access to the school and local libraries. Some of the rich sources that I had used in my previous research and were available in these libraries could not be accessed in online platforms. If I were to do the same study again, I would make various changes to improve the outcome. Assuming that the corona virus pandemic will no longer be an issue, I will consider collecting data from primary sources.
It would have been better if I could interview a sample of managers of local joint ventures to understand challenges that they always encounter. I would then analyse the data collected both qualitatively and quantitatively to understand various factors that affect cultural integration in joint ventures. Secondary sources used addressed this question adequately. However, conducting a primary data analysis would help to confirm or refute information obtained from these articles. Many people will benefit from this study besides me. Other students will benefit from this document because it provides a detailed discussion about factors that affect cultural integration of joint ventures based on reliable sources. Managers can rely on this document to determine how to address cultural challenges in their companies.
In China, many small and medium-sized companies are keen on attracting foreign companies as a way of expanding their capital. This document will be critical for the managers of these organizations because they will know what it takes to ensure that their joint ventures are successful. They have to select their partners carefully and be ready to embrace new practices, some of which may conflict their standard beliefs. They have to be flexible enough in their strategies in such joint ventures.
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