Cross Cultural Management Practices in International Business: Challenges and Strategies

Authors

  • Liu Xing Sheng, City University, Kuala Lumpur, Malaysia

DOI:

https://doi.org/10.56982/dream.v4i10.319

Keywords:

Cross-Cultural Management, International Business, Cultural Intelligence, Global Strategy, Intercultural Communication

Abstract

 

In today’s globalized economy, effective cross-cultural management has become a critical factor for success in international business. This conceptual paper explores the challenges that organizations face when managing across cultures, including communication barriers, leadership differences, negotiation complexities, and ethical dilemmas. Drawing on established theoretical frameworks such as Hofstede’s cultural dimensions, Trompenaars’ model, and the GLOBE study, the paper highlights the importance of cultural intelligence, inclusive leadership, and intercultural training as key strategies for overcoming these challenges. The contribution of this study lies in integrating theoretical perspectives with practical strategies, offering insights that benefit both scholars and practitioners in international business. The paper concludes by proposing a conceptual framework that links cross-cultural challenges and strategies to organizational performance, while calling for future empirical testing to validate and refine the framework in diverse global contexts.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Akpinar, M., Bird, A., & DeVaughn, M. (2021). Cultural intelligence and international business: A resource-based view. Journal of International Business Studies, 52(7), 1241–1260. https://doi.org/10.1057/s41267-021-00449-8 DOI: https://doi.org/10.1057/s41267-021-00449-8

Ang, S., Rockstuhl, T., & Tan, M. L. (2021). Cultural intelligence and competencies in global leadership contexts. Journal of World Business, 56(4), 101223. https://doi.org/10.1016/j.jwb.2020.101223

Adler, N. J., & Aycan, Z. (2018). Cross-cultural interaction: What we know and what we need to know. Annual Review of Organizational Psychology and Organizational Behavior, 5, 307–333. https://doi.org/10.1146/annurev-orgpsych-032117-104528 DOI: https://doi.org/10.1146/annurev-orgpsych-032117-104528

Bhadoriya, K., & Kushwah, R. (2025). Cross-cultural management challenges in multinational corporations. International Journal of Business and Management Invention, 14(6), 76–84. DOI: https://doi.org/10.35629/8028-14067684

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108

Beugelsdijk, S., & Welzel, C. (2018). Dimensions and dynamics of national culture: Synthesizing Hofstede with Inglehart. Journal of Cross-Cultural Psychology, 49(10), 1469–1505. https://doi.org/10.1177/0022022118798505 DOI: https://doi.org/10.1177/0022022118798505

Bird, A., & Mendenhall, M. E. (2016). From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), 115–126. https://doi.org/10.1016/j.jwb.2015.10.005 DOI: https://doi.org/10.1016/j.jwb.2015.10.005

Cavusgil, S. T., Knight, G., Riesenberger, J. R., & Yaprak, A. (2021). International business: The new realities (5th ed.). Pearson Education.

Dorfman, P. W., Javidan, M., Hanges, P. J., Dastmalchian, A., & House, R. J. (2012). GLOBE: A twenty year journey into the intriguing world of culture and leadership. Journal of World Business, 47(4), 504–518. https://doi.org/10.1016/j.jwb.2012.01.004 DOI: https://doi.org/10.1016/j.jwb.2012.01.004

Hartnell, C. A., Kinicki, A. J., Lambert, L. S., Fugate, M., & Doyle Corner, P. (2022). Leadership and culture: Insights from the GLOBE study. Cross Cultural & Strategic Management, 29(3), 573–592. https://doi.org/10.1108/CCSM-12-2021-0237

Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 8–26. https://doi.org/10.9707/2307-0919.1014 DOI: https://doi.org/10.9707/2307-0919.1014

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions and organizations across nations (2nd ed.). Sage.

House, R. J., Dorfman, P. W., Javidan, M., Hanges, P. J., & de Luque, M. F. S. (2019). Strategic leadership across cultures: The GLOBE study of CEO leadership behavior and effectiveness in 24 countries. Journal of World Business, 54(4), 234–250. https://doi.org/10.1016/j.jwb.2018.07.003 DOI: https://doi.org/10.1016/j.jwb.2018.07.003

Kostova, T., Beugelsdijk, S., Scott, W. R., Kunst, V. E., Chua, C. H., & van Essen, M. (2020). The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations. Journal of International Business Studies, 51(4), 467–497. https://doi.org/10.1057/s41267-019-00294-w DOI: https://doi.org/10.1057/s41267-019-00294-w

Nguyen, T. T., Hoang, T. H., & Tran, Q. T. (2023). Cross-cultural management practices and organizational effectiveness in multinational companies. Cross Cultural & Strategic Management, 30(2), 211–229. https://doi.org/10.1108/CCSM-08-2022-0156

Rasmussen, J. (2024, October 24). 4 Cross-Cultural Management Tips for Modern Business. Rasmussen Online. https://www.rasmussen.edu/degrees/business/blog/cross-cultural-management/

Romani, L., Primecz, H., & Bell, R. (2018). Critical cross-cultural management: Outline and emerging contributions. International Journal of Cross Cultural Management, 18(1), 5–33. https://doi.org/10.1177/1470595817742615

Rockstuhl, T., & Van Dyne, L. (2018). A bi-factor theory of cultural intelligence. Journal of International Business Studies, 49(9), 1281–1299. https://doi.org/10.1057/s41267-018-0156-5

Stanley, D. (2024, December 6). How Does Culture Affect International Business. Greenbook Insights. https://www.greenbook.org/insights/international-market-research/how-does-culture-affect-international-business

Sumangala, M. (2023, August 6). Effective cross-cultural communication for international business. ResearchGate. https://www.researchgate.net/publication/350728276_Effective_CrossCultural_Communication_for_International_Business

Taras, V., Steel, P., & Kirkman, B. L. (2021). Three decades of research on national culture in international business: Do the differences still matter? Journal of International Business Studies, 52(1), 9–43. https://doi.org/10.1057/s41267-020-00312-3

Tsai, C. J. (2022). Cross-cultural leadership behavior adjustment and leader effectiveness: A theoretical framework. International Journal of Intercultural Relations, 86, Article 102,213. https://doi.org/10.1080/00208825.2022.2131232 DOI: https://doi.org/10.5465/AMBPP.2022.12631abstract

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007 DOI: https://doi.org/10.1016/j.lrp.2017.06.007

Trompenaars, F., & Hampden-Turner, C. (2012). Riding the waves of culture: Understanding diversity in global business (3rd ed.). Nicholas Brealey Publishing.

Rockstuhl, T., & Van Dyne, L. (2022). A global lens on cross-cultural management and cultural intelligence. International Business Review, 31(3), 101901. https://doi.org/10.1016/j.ibusrev.2021.101901 DOI: https://doi.org/10.1016/j.ibusrev.2021.101901

Verbeke, A., & Kano, L. (2022). How globalization is changing international business strategy: Implications for theory and practice. Journal of International Business Studies, 53(6), 1183–1196. https://doi.org/10.1057/s41267-021-00491-5

Downloads

Published

2025-10-26

How to Cite

Sheng, L. X. (2025). Cross Cultural Management Practices in International Business: Challenges and Strategies. Journal of Digitainability, Realism & Mastery (DREAM), 4(10), 1–11. https://doi.org/10.56982/dream.v4i10.319