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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Дата:2015
Автори: Khomenko, Y.V., Khomenko, I.A., Borodina, E.S.
Формат: Стаття
Мова:English
Опубліковано: Інститут економіки промисловості НАН України 2015
Назва видання:Економічний вісник Донбасу
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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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spelling 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
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
collection DSpace DC
language English
topic Management
Management
spellingShingle 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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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
publisher Інститут економіки промисловості НАН України
publishDate 2015
topic_facet Management
url 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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fulltext 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 1. Levitt T. The Globalization of markets. In: Do- 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