Cultural Effects of Global Businesses and Multinational Businesses: Localization Versus Globalization – Middle-Point Cultural Hybridization

Cultural Effects of Global Businesses and Multinational Businesses: Localization Versus Globalization – Middle-Point Cultural Hybridization

Yeter Demir Uslu (Istanbul Medipol University, Turkey) and Yasemin Hancıoğlu (Ordu University, Turkey)
DOI: 10.4018/978-1-7998-1125-1.ch022

Abstract

The concept of globalization is a process in which countries, cultures, organizational cultures, and even organizational structures converge with each other and a single standard point of view in the world emerges, and it identifies and defines the differences of the elements. This shows that the processes of globalization and localization are always in interaction. Convergence brought by globalization shows that multinational enterprises perform standard activities at the global level. However, in contrast to this convergence, with the effect of localization, hybrid organizational structures are becoming important especially in order to provide competitive advantage in the national market. While creating hybrid organizational structures, attention is paid to establish a structure that will not hinder the coordination between the host country and the home country. In this context, the definitions of globalization, localization, hybridization, and how the complexity of their interactions are reflected in business strategies are discussed from a theoretical point of view.
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Definition And Formation Of The Concept Of Globalization

Discussions on globalization, especially in the 1990s, have started to gain intensity. Although debates started after the Cold War, it would be wrong to link the beginning date of the phenomenon of globalization to the demolition of the bipolar system. There is widespread view among social scientists and historians that globalization has a history that can be essentially equated with the history of capitalism and the nation-state (Ateş, 2006: 25).

Globalization is a concept that includes the development of economic, social and political relations between countries, the better recognition of the beliefs and expectations of different societies and cultures, the more frequent the international relations (Arslan et al., 2007: 223).

Key Terms in this Chapter

Strategy: It is a decision or a set of consecutive decisions that are expected to have an impact on the ability of an entity to realize its objectives in the long term.

Multinational Business: These are the enterprises that carry out the production and marketing activities of the ownership in two or more countries partially or wholly, own business strategies and apply these strategies at all of its subsidiaries or branches.

Glocalization: The practice of conducting business according to both local and global considerations.

International Business: These companies operate in one or more countries outside their own country.

Localization: In the division of labor between the central government units of the state and the local government units, local units gain weight. In another aspect, it is the ability of individuals and local units to self-manage under the sense of coexistence and culture without the need for a nation-state.

Cultural Hybridization: It is to remove the national culture from the local and blend it with the positive or negative bi-directional effects of globalization.

Globalization: It is a process which has economic, social, political, cultural, environmental, legal dimensions that removes borders in almost every area, such as the nation state, time, industry, cultural norms, and assumptions.

Global Business: Operating globally, utilizing advanced technology, global products, competencies etc. businesses that manage policies and are managed by world citizen managers are defined as global businesses.

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