An examination of the impact of culture on supply chain management practices in multinational organisation

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Introduction

Multinational corporations in today’s globalized business world have challenges in supply chain management due to the wide range of cultural contexts in which they must operate. Cultural variations impact how people express themselves, make decisions, and interact with one another. The implications of culture on cooperation, online assignment help Luton, negotiation, and general operational effectiveness in international organizations are investigated in this study.

Discussion

Cooperation Across Cultures

Supply chain cooperation dynamics are heavily influenced by cultural norms. Teams in multinational corporations often include members from a variety of cultural backgrounds. Misunderstandings and inefficiency may result from differences in interpersonal styles, work habits, and attitudes toward time (Zhang et al., 2022). For instance, the importance placed by a Brazilian business on flexibility may conflict with the exact and disciplined strategy to project leadership used by a German firm. Successful cross-cultural cooperation requires an awareness and accommodation of these differences.

Methods of Conflict Resolution

SCM relies heavily on negotiations, yet negotiating approaches may vary greatly among cultures. Relationship development comes before commercial negotiations in high-context societies like Asia. Low-context societies, such as those seen in the West, value short, fact-based conversations (Jahanbakhsh Javid and Amini, 2023). The collaboration process, online assignment help UK, strategies, and results are all affected by these discrepancies. International businesses need to modify their approaches to better accommodate the cultural norms of their business associates.

Figure 1: Conflict Resolution Management

Efficient Operations

Supply chain effectiveness is impacted by cultural norms and values. Timelines and decisions are influenced by online assignment help Sheffield, cultural differences in values such as timeliness, respect for authority, and willingness to take risks (Alam, 2022). For example, a Swedish firm’s strict adherence to timeliness would not mesh well with the more forgiving timekeeping styles of an Indian business associate. Cultural differences in conflict resolution and problem-solving methods also exist.

Challenges

  • It takes work to communicate across cultural boundaries, build trust, and unite teams with varying skill sets.
  • Misreading nonverbal signs and being reluctant to voice disagreement are two factors that might impede clear communication (Alshurideh et al., 2022).
  • The procedure of selecting and evaluating suppliers might be influenced by cultural prejudices. It might be difficult to adjust supply chain procedures to account for cultural differences.

Recommendations

Training programs that have an emphasis on cultural sensitivity better prepare workers for cross-cultural interactions. When different groups have different languages, it might be difficult to communicate with each other. Creating opportunities for team members to learn from and teach one another across cultures promotes cohesiveness and collaboration. Successful partnerships are fostered via open communication regarding cultural norms in relations with suppliers.

Conclusion

Culture has a major role in shaping supply chain management procedures in international corporations. Culture has a clear effect on the dynamics of international teams, the methods of negotiation used, and the effectiveness with which tasks are completed. Multinational companies may benefit from multicultural by being more attuned to cultural differences and using them to forge better connections, have more fruitful negotiations, and simplify their processes. To succeed in today’s interwoven worldwide supply chains, it is crucial to recognize and adapt to cultural variations.

Reference

Alam, M., 2022. Supply Chain Management Practices and Organizational Performance in Manufacturing Industry: SCM and Organizational Performance. South Asian Journal of Social Review (ISSN: 2958-2490)1(1), pp.42-52. http://journal.sagpb.com/index.php/SAJSR/article/download/22/8

Alshurideh, M., Kurdi, B., Alzoubi, H., Obeidat, B., Hamadneh, S. and Ahmad, A., 2022. The influence of supply chain partners’ integrations on organizational performance: The moderating role of trust. Uncertain Supply Chain Management10(4), pp.1191-1202. http://growingscience.com/uscm/Vol10/uscm_2022_92.pdf

Jahanbakhsh Javid, N. and Amini, M., 2023. Evaluating the effect of supply chain management practice on implementation of halal agroindustry and competitive advantage for small and medium enterprises. International Journal of Computer Science and Information Technology15(2023), pp.8997-9008. https://www.researchgate.net/profile/Mahyar-Amini/publication/368282782_Evaluating_the_effect_of_supply_chain_management_practice_on_implementation_of_halal_agroindustry_and_competitive_advantage_for_small_and_medium_enterprises/links/63df63dbc465a873a28f9c50/Evaluating-the-effect-of-supply-chain-management-practice-on-implementation-of-halal-agroindustry-and-competitive-advantage-for-small-and-medium-enterprises.pdf

Zhang, Q., Gao, B. and Luqman, A., 2022. Linking green supply chain management practices with competitiveness during covid 19: The role of big data analytics. Technology in Society70, p.102021. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9439874/

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