Yves Doz

Conventional wisdom would have us believe that to be a truly global enterprise, organizations need to “think global and act local”. This is deeply mistaken. The more successful global companies turn this old maxim on its head. Executives in these firms “think local”, i.e. how can the various locations in which they operate offer distinct knowledge, nurture strong distinctive local skills and benefit from those … [ Read more ]

Pankaj Ghemawat, Steven A. Altman

Global connectedness is measured along the lines of four pillars: trade (products and services), investment (capital), information (internet traffic, phone calls, print media) and people (migrants, tourists, students). These four pillars encompass most of the aspects of international connectedness that have maximum relevance for business people, policymakers, and ordinary citizens concerned with the impact of globalization on their life opportunities,

Yuval Noah Harari

Trade may seem a very pragmatic activity, one that needs no fictive basis. Yet the fact is that no animal other than Sapiens engages in trade, and all the Sapiens trade networks about which we have detailed evidence were based on fictions. Trade cannot exist without trust, and it is very difficult to trust strangers. The global trade network of today is based on our … [ Read more ]

Ryan Avent

[Adam] Smith saw things differently. Trade is not zero-sum, he wrote. Rather, trade increases the size of the market, which allows for greater labour specialization. Specialized labour is more productive than non-specialized labour, so that a world of trade and specialization, in which many people focus on one task and exchange their produce with others in mutually beneficial trades, is one in which everyone is … [ Read more ]

Erin Meyer

At a deep level, no matter where we come from, we are driven by common physiological and psychological needs and motivations. Yet the culture in which we grow up in has a significant bearing on the ways we see communication patterns as effective or undesirable, to find certain arguments persuasive or lacking merit, to consider certain ways of making decisions or measuring time “natural” or … [ Read more ]

Erin Meyer

We all come from somewhere. Where we come from affects the way we view things, and the way we understand one another. In every international situation, some things are cultural, and some things are personal. If it’s cultural, then you need to help people in the room understand that, for example, when someone speaks in a way that is startlingly direct, that’s because where he … [ Read more ]

Erin Meyer

The advantage to having people from all over the world on a team is that you may find that you have more innovation and creativity, and that you’re closer to your local markets. The disadvantage is that multinational teamwork is usually a lot less efficient than monocultural teamwork. When we’re all from the same culture, we don’t have to talk about how we work together. … [ Read more ]

Erin Meyer

There are two basic types of trust: cognitive trust and affective trust. Cognitive trust is based on the confidence you feel in another person’s accomplishments, skills and reliability. This is trust from the head. Affective trust on the other hand, arises from feelings of emotional closeness, empathy or friendship. This type of trust comes from the heart. In all … [ Read more ]

Andy Molinsky

If you’ve ever received any cross-cultural training … chances are… it has focused on differences: differences in communication styles (like how Japanese workers are less direct than Germans) or differences in values (like how Americans have more individualistic values than those in China). It may have even focused on differences in etiquette — like how in the United States you can write on the back … [ Read more ]

David Gartside, Colin Sloman

[Globally] HR professionals will need to understand regional or country differences regarding the number, quality, and types of skills available, typical turnover rates, employment regulations, costs of labor, healthcare policies and costs, talent mobility policies, cultural norms and values, the strength of the employer brand, and the specific employment value proposition that will attract and retain people.

Based on these data and insight, HR will … [ Read more ]

Jean-Paul Larçon, Bernard Ramamantsoa

Corporate governance is not only a European challenge but an international one, because companies ultimately compete for financial resources on the global market. And corporate governance practices, which are strongly linked to local legal and regulatory environments, have a strong influence on strategic management style, as well as on decision-making at board, CEO and middle management levels. Thus, if organization follows strategy, strategy follows governance. … [ Read more ]

Ahmet Aykac

Over the past 250 years we in the West have constructed a governance structure whose ‘micro’ aspects are geared to efficiency in acquiring and using capital and protecting the interests of the capital owner (shareholders being a much larger group today than a century ago). We have built a ‘macro’ governance structure based on nation states and which reflects this micro structure. Yet over the … [ Read more ]

Michael Porter

Paradoxically, the enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, and motivation that distant rivals cannot match.

Bill Shireman

Globalization could be a powerful agent for peace, but instead, it often triggers the anger and fear that breeds terrorism and war. That is partly due to the approach we take to globalization. We see it as our gift to the world: We’ll show the developing nations how to build a Western culture and economy, the way we did. That’s shortsighted. Globalization must be a … [ Read more ]

Yves Doz

You need to think local and act global. In other words, you need to constantly ask yourself, “What can I draw from a particular local environment that is unique and different, that is going to best make use of its capabilities and competencies, that is going to best leverage this uniqueness on a worldwide basis?” So the approach is very much to think about the … [ Read more ]

Sir William Castell

It’s clear to me that you can never have a single culture in an international company. Cultures are molded by countries, by fiscal systems, by the systems people work in—they’re different from the West Coast to the East Coast of the United States, and they’re different in Sweden, Norway and Japan. Anyone who believes they can impose a single corporate culture across a global company … [ Read more ]

Peter Drucker

One looks at a country’s history and traditions and culture and not just the economic statistics because countries do not change their fundamental behavior, or at least not fast.

Mark McCord

From a policy standpoint, many countries continue to focus on privatization, liberalization, deregulation and modernization as growth strategies. Unfortunately, according to Jean-Eric Aubert of the World Bank Institute, these policies typically do not yield the expected fruits due to their lack of sustainability, because they often fail to take into account emerging opportunities. For instance, the privatization of aging factories does little to enhance economic … [ Read more ]

Stephen Green

Should we see globalization as a recent phenomenon or has history got important lessons for us? Globalization, when you reflect on it, is a very old phenomenon; it is not a recent one. It may have gone into overdrive recently, but it actually is as old in its initial instincts as human experience is. All the evidence is that from the very first, human beings, … [ Read more ]

Pankaj Ghemawat

While globalization is indeed a powerful force, the extent of international integration varies widely across countries and companies and generally remains more limited than is commonly supposed. To be sure, rapid growth in emerging markets, combined with a long-term outlook of lower growth in most developed economies, is pushing companies to globalize faster. But metrics on the globalization of markets indicate that only 10 to … [ Read more ]