The Impact of Globalization on Corporate Culture and Communication
In this paper some visible features and outcomes of globalization are regarded. The focus is mostly done on the European economic integration, progress in information and knowledge communication technologies and environmental challengers. In each case the peculiar characteristics of the process are...
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Інститут економіки промисловості НАН України
2015
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| Цитувати: | The Impact of Globalization on Corporate Culture and Communication / Y.V. Khomenko, I.A. Khomenko, E.S. Borodina // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 136-138. — Бібліогр.: 7 назв. — англ. |
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nasplib_isofts_kiev_ua-123456789-1093322025-02-23T19:55:45Z The Impact of Globalization on Corporate Culture and Communication Вплив глобалізації на корпоративну культуру та комунікації Влияние глобализации на корпоративную культуру и коммуникации Khomenko, Y.V. Khomenko, I.A. Borodina, E.S. Management In this paper some visible features and outcomes of globalization are regarded. The focus is mostly done on the European economic integration, progress in information and knowledge communication technologies and environmental challengers. In each case the peculiar characteristics of the process are distinguished, its influence on corporate culture and communication is determined and corporate reaction on these challengers is viewed. В статті розглянуто основні особливості та наслідки глобалізації. Акценти зроблено на процесі європейської інтеграції, прогресі інформаційних технологій та технологій з обміну знаннями, а також на нових викликах з боку оточуючого середовища. У кожному окремому випадку визначено особливості цих явищ, характер їх впливу на корпоративну культуру і комунікації та можлива реакція на ці явища з боку корпорацій. В статье рассмотрены основные черты и последствия глобализации. Акценты сделаны на процессе европейской экономической интеграции, прогрессе информационных технологий и технологий обмена знаниями, а также на новых вызовах со стороны окружающей среды. В каждом отдельном случае определены особенности этих явлений, характер их влияния на корпоративную культуру и коммуникации и возможная реакция на происходящие события со стороны корпораций. 2015 Article The Impact of Globalization on Corporate Culture and Communication / Y.V. Khomenko, I.A. Khomenko, E.S. Borodina // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 136-138. — Бібліогр.: 7 назв. — англ. 1817-3772 https://nasplib.isofts.kiev.ua/handle/123456789/109332 339.9 en Економічний вісник Донбасу application/pdf Інститут економіки промисловості НАН України |
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Management Management |
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Management Management Khomenko, Y.V. Khomenko, I.A. Borodina, E.S. The Impact of Globalization on Corporate Culture and Communication Економічний вісник Донбасу |
| description |
In this paper some visible features and outcomes of globalization are regarded. The focus is mostly done on the European economic integration, progress in information and knowledge communication technologies and environmental challengers. In each case the peculiar characteristics of the process are distinguished, its influence on corporate culture and communication is determined and corporate reaction on these challengers is viewed. |
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Article |
| author |
Khomenko, Y.V. Khomenko, I.A. Borodina, E.S. |
| author_facet |
Khomenko, Y.V. Khomenko, I.A. Borodina, E.S. |
| author_sort |
Khomenko, Y.V. |
| title |
The Impact of Globalization on Corporate Culture and Communication |
| title_short |
The Impact of Globalization on Corporate Culture and Communication |
| title_full |
The Impact of Globalization on Corporate Culture and Communication |
| title_fullStr |
The Impact of Globalization on Corporate Culture and Communication |
| title_full_unstemmed |
The Impact of Globalization on Corporate Culture and Communication |
| title_sort |
impact of globalization on corporate culture and communication |
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Інститут економіки промисловості НАН України |
| publishDate |
2015 |
| topic_facet |
Management |
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https://nasplib.isofts.kiev.ua/handle/123456789/109332 |
| citation_txt |
The Impact of Globalization on Corporate Culture and Communication / Y.V. Khomenko, I.A. Khomenko, E.S. Borodina // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 136-138. — Бібліогр.: 7 назв. — англ. |
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Економічний вісник Донбасу |
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Y. V. Khomenko, I. A. Khomenko, E. S. Borodina
136
Економічний вісник Донбасу № 4(42), 2015
UDC 339.9
Y. V. Khomenko,
DrHab (Economics), Ukraine,
I. A. Khomenko,
Student, Germany,
E. S. Borodina,
Student, Switzerland
THE IMPACT OF GLOBALIZATION ON CORPORATE CULTURE
AND COMMUNICATION
Visible features of globalization are open boarders
and lack of barriers for market entry, due to which we
observe significant increase in international trade, capi-
tal flows, labour migration. The world becomes more
and more interdependent, companies - transnational
ones, business – international. This process is going on
at a high speed in deep interaction with political, eco-
nomic, social and cultural events. It is getting more and
more difficult for companies to communicate in global
environment. To overcome these difficulties they need
to have a clear understanding how globalization influ-
ences corporate culture and communication. The an-
swers for this question let the companies be more flexi-
ble and efficient in foreign markets as well as more com-
petitive among rivals.
During the research some visible features and out-
comes of globalization will be regarded. The focus will
be mostly done on the European economic integration,
progress in information and knowledge communication
technologies and environmental challengers. In each
case the peculiar characteristics of the process will be
distinguished, its influence on corporate culture and
communication will be determined and corporate reac-
tion on these challengers will be viewed.
European Economic Integration Impact
The most visible wave of European economic inte-
gration is falling international barriers to trade, capital
flow, technologies exchange, labour migration; strong
cooperation nearly in all spheres and sectors of econ-
omy. Europe is in the process of one single market for-
mation. It is related to commodities, financial deriva-
tives, financial assets, technologies, natural resources,
energy etc. Actually it might be observed the formation
of one united society with the same currency, policy,
custom duties, values and expectations. The more inte-
grated the society is the more unified living standards it
has. As Levitt says, “consumer goals worldwide become
more and more alike” [1, p. 521]. As a result the com-
panies have to adjust to new business environment and
customers’ expectations.
The impact of European economic integration on
corporate culture and communications is obvious. Com-
panies face with strong level of competition and their
employees have to be more innovative, creative and
communicative. Herrmann observes another tendency:
“most humans seem to have a basic need to belonging-
ness and therefore feel happier in the culture they know”
[2], it is not an easy task for them to adjust to a new
culture. Operating in new markets they might feel un-
comfortable and thus less effective. One more feature of
European integration is transparency in all procedures,
thus the process of communication in and out of the
company has to be transparent enough to let it be well
integrated in European business environment.
To respond the challengers of European economic
integration the companies should change their policies.
As Levitt says, “companies must learn to operate as if
the world were one large market – ignoring superficial
regional and national differences” [1, p. 521]. Thus most
companies become transnational ones. According to
Levitt multinationals tend to offer “globally standard-
ized products that are advanced, functional, reliable, and
low priced to enjoy economies of scale in production,
distribution, marketing, and management” [1, p. 521].
To launch these products they have to employ personal
able to work at the large European market maintaining
high European standards of services. Brickley, Smith
and Zimmerman emphasize that “employees are ex-
pected to be focused on quality and customer service”
[3, p. 273]. To meet customer expectations most compa-
nies introduce new compensation schemes enhancing
their workers motivation to behave with clients in a
proper manner even without formal policies to follow.
Training sessions appear to be a good tool to develop
these skills.
Progress in Information and Knowledge
Communication Technologies Impact
Over the last century a lot of modern technologies
appeared to relieve everyday life, increase human well-
being and create the basis for sustainable economic de-
velopment. Milgrom and Roberts [4] determine recent
features of technological changes stressing that technol-
ogies become more flexible, the same information and
communication technologies can be used effectively in
a variety of different companies and different economic
sectors, the process of technologies exchange becomes
faster and faster, high speed of technological changes
require the companies to keep in step with progress and
Management
Y. V. Khomenko, I. A. Khomenko, E. S. Borodina
137
Економічний вісник Донбасу № 4(42), 2015
new innovations. More attention is paid to individual
qualities and value of knowledge. Highly ranked experts
with professional knowledge of foreign languages and
cross cultural differences are in a high demand as they
are able to work in subsidiaries and extend companies
business abroad.
Recent information and knowledge communica-
tion technologies evolution make a great influence on
employees’ behavior, career paths, way the employees
communicating with each other and corporate culture as
well. Milgrom and Roberts state that many workers are
expected to be skilled enough to be able to move from
task to task, engineers are required to be aware of the
capabilities and needs of different parts of the company
and thus are rotated frequently among jobs [4, p. 588].
The same changes affect top managers who are respon-
sible for strategic decision making and thus have to be
far ahead of their rivals in actions and strategy. A week
point is highly skilled international labour migration.
Herrmann mentions in her research that it gets a ten-
dency to transfer experts from country to country to help
build new subsidiaries [2]. But there might be a danger
as the experts get more professional in foreign market
they might leave the company for a better job and no-
body can predict their career path decision. As we have
seen companies become more and more dependant from
knowledge and skills of their employees.
To prevent the loss of high qualified workers com-
panies have to be accurate in personal management. As
Milgrom and Roberts note companies should recognize
the importance of knowledge and skills of their employ-
ees and entrust them with more responsibility and dis-
cretion [4, p. 588]. Motivation for active participation in
manufacturing process and design of new products
seems to be the best solution for keeping workers with a
company for long term. In this case different types of
profit shearing schemes have to be introduced to the per-
sonal. What about skills and knowledge of the personal
it is a main concern of the company to train and reward
workers to be multiskilled. In this context fruitful coop-
eration between companies and universities creates new
opportunities for implementation of long life learning
concept in practice. Effective, ongoing communication
with customers to learn their needs and expectations is
essential as well. To carry out all these tasks companies
have to develop an effective policy of information and
knowledge communication.
Environmental Challenges Impact
During the last century the world community made
a significant step forward in economic transformations
and social reforms. Such rapid development puts great
burden on environment and leads to irreversible climate
changes. Humanity has already faced with such prob-
lems as freshwater limits, ecosystem destruction, biodi-
versity loss chemical pollution, greenhouse effect etc.
The most threatening environmental challenges for
goods manufactures appear the quality, quantity and
availability of natural resources. These issues endanger
further economic development and become a burning is-
sue for stakeholders in the world.
Environmental challengers impact on companies
today activity is not less than some other factors, some-
times it is even more visible and tangible. For example,
the quality of natural resources might not be sufficient
for production of high qualified goods in a full range. In
this case the company has to search for substitutes or
new supplies. Companies’ activity is limited by availa-
bility and quantity of nonrenewable resources, every
day they have to compete for resources at the interna-
tional level trying gain in a new market. Such serious
problems as global warming, depletion of ozone layer
can not be ignored by ordinary companies as well. They
have to be equal partners in international alliances as-
sembled to cope with new challenges. In all these cases
effective communication in both internal and external
environment is needed.
As we see the development of corporation has to
be in a closed interaction with local ecosystem. Alt-
hough the balance between economy, society and envi-
ronment is essential this state is impossible to reach un-
less the way of thinking in society is not changed. It is
important to change economic agents’ attitude to the en-
vironment. Ecological responsibility has to be deeply in-
tegrated into modern corporate culture. Companies
should switch on new innovative development models
which assume improvement of manufacturing technolo-
gies, energy saving policy and rational attitude to natural
resources consumption. In this context knowledge be-
come the most influential factor of economic changers.
As Fritsch, Schmidheiny and Seifritz argue in their book
on ecologically sustainable growth society [5],
knowledge accumulation allows accelerate technologi-
cal changers and speed production process improving.
But quite important question arises how to initiate
knowledge communication among experts and decision
makers. Complete answer is given by Eppler in the Pa-
per: ‘The Concept of Knowledge Communication and
its Relevance to Management’ [6]. The results of these
two publications might be a good background for an ef-
fective policy of information and knowledge communi-
cation elaboration.
Conclusion
From examining Milgrom’s, Roberts’, Eppler’,
Levitt’s, Brickley’s, Smith’s, Zimmerman’s, Fritsch’s,
Schmidheiny’s, Seifritz’s works it gets possible to state
the following. European economic integration, progress
in information and knowledge communication technol-
ogies and environmental challengers are the most influ-
ential globalization factors. To overcome their impact
the companies have to develop an efficient policy of in-
formation and knowledge communication. The basic
components of this policy should be new compensation
schemes enhancing workers motivation to behave with
clients in a proper manner, training sessions to develop
Y. V. Khomenko, I. A. Khomenko, E. S. Borodina
138
Економічний вісник Донбасу № 4(42), 2015
appropriate communicative skills, fruitful cooperation
between companies and universities to train and reward
workers to be multiskilled, ecological responsibility cul-
tivation in the frame of corporate culture, new innova-
tive development models assuming improvement of
manufacturing technologies, energy saving policy and
rational attitude to natural resources consumption. Due
to this policy implementation companies might be fi-
nally well integrated into European business environ-
ment and exercise successfully advantages of interna-
tional cooperation.
References
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lan R. J. Strategic marketing management. Boston: Har-
vard Business School Publications, 1991, pp. 521-536.
2. Herrmann A. Globalization and its effect on interna-
tional business. In: Global Awareness Society Interna-
tional 21st Annual Conference, New York City, May,
2012. Available from: http://orgs.bloomu.edu/gasi/ 20 1
2%20Proceedings%20PDFs/Herrmann2012-06%20G
lobalization%20and%20its%20Effect%20on%20Inter-
national%20Business%20-%20Publication.pdf. 3. Or-
ganizational architecture. In: Brickley J. A., Smith
C. W. Jr., Zimmerman J. L. Managerial economics and
organizational architecture. Second edition. Singapore:
Mc-Graw-Hill, 2001, pp. 262-283. 4. The evolution of
business and economic systems. In: Milgrom P.,
Poberts J. Economics, organization & management.
New Jersey: Prentice-Hall, 1992, pp. 585-594.
5. Fritsch B., Schmidheiny S., Seifritz W. Towards the
ecologically sustainable growth society: physical foun-
dations, economic transitions, and political constraints.
Berlin: Springe-Verlag, 1994. 6. Eppler M. J. The con-
cept of knowledge communication and its relevance to
management. In: USI Research Note July 2006, Version
2.2 pp. 1-12. [viewed 25 May 2015]. Available from:
http://www.knowledge-communication.org/pdf/resear c
h-note-knowledge-communication.pdf. 7. Quelch J. A.,
Hoff E. J. Customizing global marketing. In: Dolan R. J.
Strategic marketing management. Boston: Harvard
Business School Publications, 1991, pp. 521-536.
Хоменко Я. В., Хоменко І. А., Бородіна Є. С.
Вплив глобалізації на корпоративну культуру та
комунікації
В статті розглянуто основні особливості та на-
слідки глобалізації. Акценти зроблено на процесі єв-
ропейської інтеграції, прогресі інформаційних тех-
нологій та технологій з обміну знаннями, а також на
нових викликах з боку оточуючого середовища. У
кожному окремому випадку визначено особливості
цих явищ, характер їх впливу на корпоративну куль-
туру і комунікації та можлива реакція на ці явища з
боку корпорацій.
Ключові слова: глобалізація, економічна інтег-
рація, корпоративна культура, комунікації, оточу-
юче середовище, інформаційні технології, техноло-
гії з обміну знаннями.
Хоменко Я. В., Хоменко И. А., Бородина Е. С.
Влияние глобализации на корпоративную куль-
туру и коммуникации
В статье рассмотрены основные черты и по-
следствия глобализации. Акценты сделаны на про-
цессе европейской экономической интеграции, про-
грессе информационных технологий и технологий
обмена знаниями, а также на новых вызовах со сто-
роны окружающей среды. В каждом отдельном слу-
чае определены особенности этих явлений, характер
их влияния на корпоративную культуру и коммуни-
кации и возможная реакция на происходящие собы-
тия со стороны корпораций.
Ключевые слова: глобализация, экономическая
интеграция, корпоративная культура, коммуника-
ции, окружающая среда, информационные техноло-
гии, технологии обмена знаниями.
Khomenko Y. V., Khomenko I. A., Borodina
E. S. The Impact of Globalization on Corporate Cul-
ture and Communication
In this paper some visible features and outcomes of
globalization are regarded. The focus is mostly done on
the European economic integration, progress in infor-
mation and knowledge communication technologies and
environmental challengers. In each case the peculiar
characteristics of the process are distinguished, its influ-
ence on corporate culture and communication is deter-
mined and corporate reaction on these challengers is
viewed.
Keywords: globalization, economic integration,
corporate culture, communication, environment, infor-
mation technologies, knowledge communication tech-
nologies.
Received by the editors: 23.11.2015
and final form 28.12.2015
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