exploring emerging latin markets - implications for gemans using spain as a springboard country

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Exploring Latin AmericaImplications for German Companies using Spain as a Springboard CountryOfiar Murwanti | Rohit Prabhudesai | Ang Boon Chuan | Eka Prawijaya

AgendaIntroduction to Research Topic

Cultural Models

Methodology

Findings

Recommendations

Can Spain be a Springboard Countryfor German companies entering Latin America?

?(Koeppen 2012; Pavoncello 2011)

?(Winiecki 2012)Cultural adaptation issues

(Ewing and Bajaj 2011; Parnell 2002; Rygl 2012; Selmer 2001, Selmer 2005, Zimmermann, Holman and Sparrow 2003)

Eurozone tiesCultural proximityGrowing influence

Opportunities in Latin America

(Long 2013; Molinski 2013)

Need for Springboard Country

(Penny 2013; Pla-Barber and Kamps 2012)

Cultural Models

Hofstede Model of National Culture(Hofstede 1980)Global Leadership and Organizational Behaviour Effectiveness (GLOBE) Study(Javidan, et al. 2005)

Lewis Model of Cross-Cultural Communication(Lewis 2013)Discourse orientedListening orientedInformation oriented

Methodology

Formulae to compute Hofstede dimensions

(Gelman 2007; Kish 1990)

Results

Data ValidationBased on 3 countries with close values in 4 cultural dimensionsCompare against descriptors in GLOBE Study and Lewis ModelDescriptions converged across all models

Findings and Analysis

(Antshel 2002; Cullar, Arnold and Gonzalez 1995; Delgado 1994; Gupta, Hanges and Dorfman 2002; Johanson and Vahlne 2009;Lenartowicz and Johnson 2003; Soyez 2012; Varela, Salgado and Lasio 2010)

LegendCultural leapCultural bridgeCultural equality

Organization Report Structure

Decentralized channel of communicationLatin-centric communication of corporate objectivesBetter local receptivenessEnhanced relational day-to-day liaisonRisk of miscommunication

Staffing Strategy

PioneerIntelligenceTraderDefenderRoles of Country Manager

Intercultural training minimizes expatriate failure(Domsch and Lichtenberger 1991; Osman-Gani and Rockstuhl 2009; Qin and Baruch 2010; Waxin and Panaccio 2005)Little effect on German expatriates(Puck, Kittler and Wright 2008)Expatriation

Inpatriation

Management Mindset

Limited individual feedback to avoid conflictWorking group communication and dialogue

(Behrens 2010; Martinez 2005)Social integration incollectivist and egalitarian society

Building local association, teamwork, social identity and communitarianism(Hglund and Sundberg 2008; Jarvie 2003; Moss 2009; Perks 2007; Schlter 2000; Stevenson and Alaug 1997; Tonts 2005)Cerveza SportsDance

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