Cultural Hubs Key to Strong Global Companies

A strong global culture is essential for productivity in multinational companies; however, a 12-year study by Massachusetts Institute of Technology's Sloan School of Management reveals that many firms face barriers to success. Some global companies are hindered by a headquarters-centric approach that focuses on one-way communication from the corporate headquarters to the global outposts, while others view global culture on a linear continuum of weak to strong, while ignoring the complexity of cultural patterns within their organizations. To combat these issues, multinationals should identify and establish cultural hubs around the globe. Doing so will allow companies to harness the cultural capabilities within various geographic locations, business functions and groups and enable diversity to play a central role in global business operations.

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