A framework for multinational companies for managing cultural diversity in international joint ventures: a theoretical study

Abstract

The globalisation of business, with the resulting intercultural encounters, calls for a comprehensive and practical method by which the impact of cultural diversity on multinational companies can be managed. Limited academic research has been done to establish a comprehensive guide for management to navigate these fields. This study explores cultural diversity and the association it has with international business, and consolidates findings from various authoritative sources to propose a framework for managing cultural diversity in international joint ventures (IJVs). The purpose of the framework is for multinational companies to test their diversity management approach and practices against it, and where required to implement change initiatives to improve the performance, profitably and return on investment in their IJVs. The framework consists of 10 criteria for management, which is tested empirically and reported in a follow-up study.