MNCs and the Fragmentation of Organizational Culture

The purpose of this book is to investigate the dichotomy of relations between the Western headquarter and the non-Western subsidiary by drawing on an empirical study of the experiences of Austrian and Russian managers in the Austrian-owned Russian subsidiary. The principle of inductive reasoning and the interpretive paradigm of the qualitative research methodology and the subsequent application of postcolonial theory in its relation to IBMS helped derive the theoretical model of a fragmented organizational culture. The findings demonstrate the presence of power relations between expatriate and local management in the subsidiary. These relations are primarily the result of implementing the universal headquarter’s best practice model in the subsidiary. They also led to the emergence of a self-regulated space of adjustments formed by the local management. In sum, these elements contributed to the formation of a fragmented organizational culture in the Austrian-owned Russian subsidiary. This study highlights the values of Austrian and Russian corporate culture that could play a significant role in managing cross-cultural spaces.