Research Project Ndanga Kamanga

How does Culture influence the success of Multinational Corporations (MNCs) in emerging markets.
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Name(s) and Student Ndanga Andrew Kamanga T0306029

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Title of Coursework: How does culture influence the success of
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Abstract:
Aims and Objectives:
This study aims to investigate the influence of culture on the success of

multinational corporations (MNCs) in emerging markets. Specifically, it seeks to
explore the impact of cultural dimensions on consumer behaviour, leadership and
management practices, cross-cultural communication, and organizational
dynamics within MNCs operating in diverse cultural contexts.
Methodology:
Utilizing secondary data sources, this research employs a qualitative approach to

synthesize existing literature and empirical studies on the subject. The
methodology involves analysing data from academic journals, industry reports,
and reputable sources to gain insights into the complex relationship between
culture and MNC performance in emerging markets.
Findings:
The findings reveal significant insights into how cultural dimensions shape various
aspects of MNC operations in emerging markets. Key findings include the
influence of cultural values on consumer preferences, the importance of adaptive
leadership styles in multicultural teams, and the challenges and strategies of
cross-cultural communication. Additionally, Hofstede's cultural dimensions provide
a valuable framework for understanding cultural variations and tailoring strategies
to local markets.
Limitations and Future Research:

While this study contributes valuable insights to the field, it is not without
limitations. One limitation is the reliance on secondary data, which may constrain
the depth of analysis and the ability to capture real-time dynamics. Furthermore,
the generalizability of findings may be limited by the diversity of cultural contexts
examined. Future research could address these limitations by conducting
longitudinal studies, comparative analyses, and qualitative investigations to
further explore the influence of culture on MNC success in emerging markets.
Keywords:
Multinational Corporations, Emerging markets, Culture
1. Introduction
Culture can be defined as the characteristics and knowledge of diverse groups of

people. These people have beliefs and similar patterns of behaviours and are tied by
various things such as Language, Religion, Cuisine, Social Habits, music, and arts
(Pappas, 2022). These key aspects shape up the world today as we know it. Culture
can have a strong impact on the way that Businesses operate and conduct their day-
to-day activities. What is acceptable in one country, may be the bare minimum in
another country. Culture affects the pace of businesses, decision making,
management, sales, and business protocol (Saner, 2022). Multinational corporations
are organisations/ companies that operate in their home country, and in other
countries around the world (CFI, 2024). Culture and multinational corporations are
intertwined as they will always be a separate set of culture in every country that you
go to. This means that Multinational Corporations must be aware of the cultural and
societal norms in every country that they operate in.
Hofstede’s cultural dimensions plays a significant role in understanding the influence

of MNCs operating in emerging markets. Power distance is the degree to which
members of a society accept differences in power and authority. Individualism refers
to the degree that society focuses on the relationship of the individual to the group.
Uncertainty avoidance is the degree to which people in a society are comfortable with
risk. Masculinity is the degree at which a society emphasizes traditional masculine
qualities (openstax, 2024). Hofstede’s framework provides the basis for the various
effects on culture. The success of Multinational corporations entails various aspects of
culture being influential (Nickerson, 2023). The success of these organisations can be
determined by the approach to accepting the culture of various countries.
Consumer behaviour is another important factor that can determine whether a

multinational corporation is successful or not regarding culture. Arabic countries have
got strict rules and laws that they abide to. These are laws that forbid the
consumption of products such as Meat and Alcohol. If a company is Beginning its
operations in an Arabic country, it will not sell products like alcohol and meat due to
the culture in the countries. Other factors such as fashion and style will have a
significant impact on the way that businesses conduct themselves and their
operations. They will not market a product that is revealing as it is against the
culture of the Arabic people. That is why multinational corporations must have a clear
vision for the way that they want to operate and conduct business in various
countries. What is okay in one country may not be okay in another country (Williams,
2019).
This project will use a variety of resources available. For this project, Secondary
qualitative data will be used to gather information, gain knowledge and make
conclusions. This will allow the project to maximise the data that is available (Tate,
2018). Secondary data will be able to critically analyse why culture influences the
success of multinational corporations in emerging markets. Secondary data will

provide a wealth of existing information and insights into the various cultural
dynamics and Multinational Corporations in emerging markets. When undertaking
data selection criteria, there is a need for providing significant relevance to the topic,
analysing the credibility of various sources, how the research methodologies
employed, the sampling techniques used, and the data analysis procedures followed,
looking at how recent the data is, this will allow for clear pictures to be painted over
answering why culture influences the success of multinational corporations. By
applying these key sections, only high quality and reputable sources will contribute
towards the validity and reliability of the findings (Englund, 1999). To obtain
considerable amounts of knowledge there will be a need for the categorisation of
different segments of data which will be relative to the research objectives. There will
also be the generation of themes by grouping similar patterns and organising them
accordingly (Nowell, 2017).
This research will provide a comprehensive theoretical framework which will integrate
various perspectives from international business. Furthermore, there will be a focus
on Hofstede’s cultural dimensions which provides a framework and theory that can be
used to interpret the happenings of different countries and corporations around the
world. There will also be the analysis on the cultural dynamics and business
challenges faced by Multinational Corporations operating in regions that have unique
cultural contexts. A recognisable gap is also the important practical implications for
multinational corporations that operate in emerging markets. By critically analysing
the influence of culture on various aspects of multinational corporation operations,
there will be an insight into the key strategies of Multinational corporations to
enhance their performance and competitiveness in diverse cultural contexts.
This project will begin with a literature review that will allow the analysis that has
previously been undertaken to be explored further. The literature review entails the
research methodology as it signifies the key areas that will help add to the data and
sources that are already in existence. The methodology will include data collection
and key analysis methods, the key factors that make multinational corporations
successful in emerging markets. The various challenges faced by these corporations,
an application of key theoretical concepts that are practical and related to the real
world, key interpretations of findings and implications as well as a conclusion that
includes a summary and future recommendations.
2. Literature Review
i Cross Cultural Communication
Cross Cultural Communication is an essential tool for building bridges between

people, fostering mutual respect and understanding, and creating a more harmonious
and interconnected world. Cross Cultural Communication refers to the verbal and
nonverbal communication that occurs amongst people from different backgrounds
and cultures. It can eliminate miscommunication and it allows all stakeholders to gain
knowledge. Employees from diverse cultural backgrounds and age groups will be to
share unique insights about their generation’s consumer behaviour, preferences and
habits (O’Donoghue, 2024). Cross Cultural Communication allows businesses to
increase workplace diversity, break down stereotypes, prejudices, and
misconceptions (Baker, 2021). (crossculture2go, 2024), In the world of business,
understanding the cultural nuances of international partners, clients, and customers
is crucial for smooth negotiations, collaborations, and transactions.
If there are any misunderstandings resulting from cultural differences, it may lead to
failure and lead to costly mistakes and ultimately failure. This is why being effective
at communication is a necessity to achieve the common goals shared by both parties.
Cross cultural conflict resolution is a practical, holistic meeting process for working
through conflict. Each member involved is treated kindly and they are given the
platform to be understood. Miscommunication that is rooted in cultural differences
can often lead to conflicts. By enhancing cross cultural communication skills,
individuals and organizations can better manage and resolve their conflicts before
they escalate, promoting harmony and unity whilst being able to allow all parties to
gain substantial knowledge (Williams, 2016). Cross cultural communication can
create a culture that values diversity and inclusion, in a situation that will allow all
employees to feel valued and respected. As well as building better relationships and
creating communities within the workplace. The strength of these relationships will
enable effective communication and promote a positive working environment.
Embracing cross cultural communication can create a healthy working environment
that can enable innovation as well as a broad range of perspectives (Hernandez,
2023).
Cross cultural communication creates a foundation in which two people from

completely different backgrounds can clearly and effectively understand each other
as well as opening the possibility of fruitful relationships across cultural barriers that
may have been previously daunting. It also enables cultural exchanges and learning,
which allows individuals to widen their horizons and widen their knowledge whilst
simultaneously appreciating the richness of human diversity. Furthermore,
adaptability and flexibility, enabling individuals to navigate unfamiliar cultural
contexts with confidence and effectiveness (Enterprise League, 2021).
ii Consumer behaviour
Consumer behaviour can be defined as the ways in which consumers act when
searching for, purchasing, using, evaluating and throwing away of products and
services that they believe will satisfy their needs (Kire, 2017). Cultures that have got
a more collectivist approach tend to have a strong value on uniformity (Mooij, 2004);
whereas cultures that are more individualist put diversity at the top of their priorities.
People from various countries will have different preferences and styles that they
believe work best for them. Culture can shape individuals’ values beliefs and societal
norms, which can then influence the decisions they make when purchasing goods as
well as their consumption patterns. Consumers in emerging markets may prioritize
different values such as collectivism, tradition or social status compared to those in
developed markets. Moreover, there needs to be an understanding of these cultural
values by Multinational corporations to ensure that their products and services will be
able to tailor towards the consumers (Nayeem, 2012).
Culture plays a significant role in shaping product preferences and consumption

habits. Marketing strategies and production strategies should always be aimed
towards the different cultures that are being targeted. For example, the way
McDonald’s tailors its menus towards different countries, by doing that, they have
aligned their corporation with the wants and needs of the people of that specific
region (Pisano, 2023). The products that multinational corporations sell should
reinforce the beliefs, values, and customs of the targeted culture. Multinational
corporations should also be able to respect cultural sensitivities and taboos (Niosi,
2021).
Multinational corporations adapt their strategies to meet the changing consumer

needs and preferences. Being adaptable in this sense allows MNCs to build trust and
loyalty with its existing clientele which will lead to repeated purchases and positive
word of mouth recommendations (brandcredential, 2023). MNCs frequently need to
modify their marketing techniques to meet local cultural contexts to interact with
consumers in growing markets. Using local language and images, tailoring
advertising messaging, and connecting with customers through cultural festivals or
events are some examples of how to do this. Multinational corporations can improve
consumer engagement and brand loyalty by coordinating their marketing strategies
with cultural norms and values (Radu, 2023).
iii Leadership and Management Practices
Diverse cultural norms and customs can have a significant impact on how leadership
styles, decision making processes, and organisational structures operate within
Multinational corporations. Asian and Latin American cultures frequently place a high
value on a company's hierarchy and rank. Leaders adopt a more pronounced and
dominant position in these societies. They are addressed in a specific manner by their
subordinates, who usually do not dispute their statements. This dynamic affects all
other parts of management by having a significant impact on how a leader or boss
interacts with their team. Workplace cultures that are hierarchical tend to have high
rates of employee retention and loyalty. Furthermore, a corporation with well-defined
roles and tasks has less opportunity for misunderstandings and/or interpersonal
errors (Dempsey, 2019).
Effective leadership in developing markets necessitates an elevated level of cultural

intelligence, or the capacity to recognize, value, and adjust to various cultural
customs and norms. To create cross-cultural collaboration within multinational teams,
leaders need to be skilled at interpreting cultural nuances and developing rapport
with local stakeholders. To improve leaders' cultural competency, this may entail
cross-cultural coaching, cultural sensitivity training, and experiential learning (Kuo,
2019).
Managers and leaders at Multinational corporations have a significant role to play

when it comes to dealing with the discovery and nurturing of talent. Understanding
and unearthing talent is an awkward thing to deal with, however, when dealing with
talent and growth you must have a key foundation and basis of the respective culture
that you are operating in. Companies like Netflix, Spotify, and Live Nation serve as
examples of global cultural flows. These companies are distinguished by the extent of
their financial, technological, and communication resources; their potential
investment for generating jobs and activities; as well as the osmosis between their
own value chains and those of other activity sectors. Local culture fosters creativity
and encourages innovation (OECD, 2018). According to (Tran, 2017), MNCs doing
business in emerging markets need to give local talent development and
empowerment priority. Finding and developing local leaders, offering chances for skill
improvement and career progression, and enabling staff members to assume
leadership positions within the company are all components of effective leadership.
Local employees feel more committed and have a stronger feeling of ownership as a
result, strengthening the talent pipeline.
IV Cultural dimension
Cultural dimensions are essential frameworks that provide an understanding of the

different variations in cultural norms, values, and behaviours across various societies.
Hofstede’s cultural dimensions theory will help understand the cultural differences in
the context of international business and it will also help answer the question on why
culture has an impact on the success of multinational corporations in emerging
markets. Different power distances are found in different countries. Mexico has a
high-power index (81) compared to the low power distance index (40) of the United
States. In Mexico, a corporate executive from the US could anticipate dealing with a
hierarchical system where a small number of individuals hold decision-making
authority. A leader from a nation with a large power distance, such as Russia or the
United Arab Emirates, visiting the US might anticipate a more egalitarian approach to
decision-making (organizational psychology degrees, 2022). This is a crucial tool as
this dimension shows how much less powerful people in a society tolerate and expect
an uneven allocation of power. Low power distance cultures place more emphasis on
equality and empowerment, whereas high power distance cultures are more
accepting of hierarchical institutions and authority (Hofstede, 2010).
Another key cultural dimension is understanding the degree of interdependence

among individuals in a society whether that’s individualism or collectivism. The terms
individuality and collectivism, respectively, describe how people fit into groups.
Individualistic civilizations prioritize the demands of the person and the close family,
placing a strong emphasis on accomplishment and individual rights.
In this category, a person's self-image is referred to as "I."
The objectives and welfare of the collective, on the other hand, are given more
weight in collectivist society, where a person's self-image is more akin to a "We."
Individualistic cultures place less value on loyalty and connections than collectivist
societies do.
They often do not belong to many groups, but the ones they do belong to define
them more. Finally, in individualistic civilizations, communication is typically more
direct, whereas in collectivistic communities, it is more indirect (Nickerson, 2023b).
Masculinity vs femininity refers to how conventional gender roles are distributed in

terms of roles and values. While nurturing, cooperation, and quality of life are valued
more highly in feminine cultures, aggressiveness, competitiveness, and achievement
are valued more highly in masculine cultures (Hofstede, 2011). Uncertainty
Avoidance shows how much people in a culture perceive ambiguity and uncertainty
as threats. While cultures with low uncertainty avoidance are more receptive to
change, experimenting, and taking risks, those with high uncertainty avoidance tend
to have rigorous norms and rituals, a poor tolerance for ambiguity, and a preference
for organized environments (Bruin, 2019).
V Summary and Theoretical Framework
Cultural Dimensions: These are the fundamental beliefs, customs, and ways of
behaving that define various communities. Frameworks for classifying cultural
aspects, such as power distance, individuality vs. collectivism, masculinity vs.
femininity, uncertainty avoidance, long-term vs. short-term orientation, and
indulgence vs. restraint, have been established by academics like Fons Trompenaars
and Geert Hofstede. These dimensions offer insights into the ways in which culture
affects company procedures, communication methods, leadership philosophies, and
consumer behaviour, among other facets of human interaction.
Leadership and management practices: The tactics, actions, and methods that people
and organizations employ to direct and supervise their activities are collectively
referred to as leadership and management techniques. In the context of
multinational businesses (MNCs) operating in emerging areas, cross-cultural
communication skills, cultural intelligence, and adaptation are necessary for effective
leadership. It is the responsibility of leaders to manage cultural differences, establish
rapport with regional stakeholders, and promote cooperation in multicultural teams.
The three most important strategies for achieving success in multicultural settings
are talent development, participatory decision-making, and transformational
leadership.
Consumer Behaviour: The choices and behaviours people make when they buy and
use products and services are referred to as consumer behaviour. Consumer
behaviours in emerging markets is influenced by cultural factors, which can shape
attitudes, preferences, and buying patterns. Multinational businesses (MNCs) must
comprehend cultural values, conventions, and societal influences on tailor their
product offers, create focused marketing campaigns, and establish strong brand ties
with local consumers. MNCs can improve their competitiveness and market
penetration in emerging regions by coordinating their marketing initiatives with local
preferences and values.
Cross Cultural Communication: Interaction of Ideas and Information: Interaction of

individuals or groups with disparate cultural backgrounds results in cross-cultural
communication. Language choices, nonverbal clues, and communication methods are
all significantly influenced by cultural factors. Cultural sensitivity, adaptation, and the
capacity to negotiate linguistic and cultural variations are necessary for effective
cross-cultural communication. Multinational businesses (MNCs) can cultivate
successful commercial partnerships in varied cultural contexts by promoting open
discourse, active listening, and mutual understanding. These strategies can help
MNCs create trust and reduce miscommunication.
The conceptual theoretical framework that has been attached below has been derived
from the literature above. It shows how these four key factors:
 Cultural Dimensions
 Leadership and management practices
 Consumer behaviour
 Cross Cultural communication
These factors are all interconnected and play a significant role in understanding how
culture can influence the success of multinational corporations in emerging markets.
Figure 1: Theoretical framework
3. Research Questions
How do cultural dimensions, such as individualism-collectivism, power distance,

uncertainty avoidance, masculinity-femininity, and long-term orientation, influence
consumer behaviour in emerging markets?
What are the predominant leadership and management practices adopted by

multinational corporations (MNCs) in navigating cultural diversity within their teams
operating in emerging markets, and how do these practices contribute to
organizational performance?
What are the key challenges and strategies associated with cross-cultural
communication between MNCs and local stakeholders in emerging markets, and how
do these factors impact organizational effectiveness and stakeholder relationships?
How do Hofstede's cultural dimensions serve as a framework for understanding the

cultural variations in consumer behaviour, leadership dynamics, communication
styles, and organizational practices within MNCs operating in diverse cultural contexts
of emerging markets?
4. Methodology
ii. Introduction
In this section, there will be a discussion on the research methods and the methodology
used in this study. The methodology section is one of the most important sections as it
provides an account of how the research was conducted (Foley, 2018). By describing the
steps taken to gather and process data, the methodology section helps to guarantee the
quality, transparency, and dependability of the research findings. There will be the use of
secondary data that will be qualitative data as this will ensure that the research question
is answered in its best capacity. Secondary data will be able to provide in depth insights
and it will also highlight the complexity of cultural influences on Multinational
corporations’ success in emerging markets. Secondary data will allow the exploration of
the relationship between culture and multinational corporations in emerging markets.
There will also be ethical considerations when addressing the use of secondary data,
such as data privacy, confidentiality, and intellectual property rights. (Saunders, 2009)
ii. Justification
This research project uses qualitative data to explore the complexities that surround the
topic of culture affecting the success of Multinational Corporations in emerging markets.
When analysing how factors such as cultural dimensions, consumer behaviour, cross
cultural communication, and leadership and management have an impact on the success
of multinational corporations in emerging markets, qualitative data can provide rich
insights into the diverse cultural contexts of these key factors through various findings
(Nassaji, 2020). Secondary qualitative data uses existing datasets such as reports to
address research questions more efficiently. The approach to using secondary data will
provide access to a variety of information from different regions around the world which
will help examine trends and patterns and the different variations across diverse cultural
contexts within emerging markets. Furthermore, there will be an opportunity to have a
comparative analysis by comparing the different strategies, market dynamics, consumer
behaviours and other factors that help understand why culture has an impact on the
success of MNCs in emerging markets.
iii. Data collection and Analysis
To collect data, there was a variety of sources that were used. Majority of the data used
was gotten from the year 2018 onwards which shows that the data that was collected is
very recent, and it allows for a clear picture to be painted. A range of journal articles,
books, and reports were used. To obtain relevant information, there would be a need for
data to be easily accessible. Some information that is extremely useful is unavailable due
to businesses protecting their information. Relevant information being preserved by
companies means that there is a limit on the amount of data that is available. When
collecting information, there was a variety of keywords and searches that were used
such as cross-cultural communication, Hofstede cultural dimensions, Consumer
behaviour, leadership and management, and other keywords such as culture,
globalization, and multinational corporations. When assessing data, there was a need for
irrelevant data to be filtered out when assessing the use of secondary data sources.
Critically and thoroughly reviewing each source ensures that the information is
dependable, valid, and relevant. The data that was used was managed by sorting all
information according to its purpose. For example, storing all cultural dimensional
information under one section to ensure that all the necessary data would be kept
properly. Furthermore, there was a need for analysing data that could potentially be
biased and taking that into consideration when creating a criterion for data sets, whether
dependable or unreliable. When collecting data, there were procedures that were put in
place for elements such as data validation, normalization, and standardization to
enhance the overall quality and reliability of the data for analysis.
The purpose of analysing the data was to systematically examine and interpret the
collected data to address the research objectives. Steps such as cleaning the data to
address missing information, outliers, or inconsistencies, as well as transforming
variables or aggregating data to facilitate analysis. When analysing qualitative data,
there is a need to analyse the themes and content effectively. The results of the data
analysis can be derived from the theoretical framework which displays how Culture has
influenced the success of Multinational Corporations in emerging markets.
IV. Detail on Data Collected
The type of data that has been collected and thoroughly analysed is qualitative data
which consists of textual information. Secondary data was used for this project. Sources
such as academic literature, government reports, journal articles, and books were used.
The reasons behind selecting secondary data were due to it being vast and allowing the
data to be valid and dependable. This aligns with the research questions as there is a
need for a range of data to be analysed which would not be available if primary research
were used. The data looked at information from Asia, Africa, and the middle east as
these are all continents that have ben considered emerging markets. By critically
analysing these regions, the data can show whether the information gathered is only
relevant to one group of people or to the general population.
V. Ethical Considerations
When looking at the ethical considerations, there needs to be a certain level of

carefulness around the data, ensuring that the awareness around sensitive or personal
information is present. When necessary, there should be action taken to anonymize or
de-identify data to avoid disclosing personal information or sensitive facts about specific
individuals. Data security should also be prioritized to ensure there are no breaches or
any misuse of the datasets. There needs to be a certain level of respect for the
ownership rights of the data providers and there must also be an adherence to the
principles of academic integrity. Furthermore, all sources and references must be
rigorously analysed, and the adequate acknowledgements should be given to the authors
responsible for sharing and collecting the data.
5. Findings
i. Factors affecting cross cultural communication.
There are many factors that affect and have an impact on the way that people
communicate all over the world.
 Language Barriers: Effective communication between multinational corporations

and local stakeholders may be impeded by disparities in language skill and
fluency. Misunderstandings can arise from misinterpreting colloquial terms and
linguistic nuances.
 Communication Styles: Different communication styles, such as direct versus
indirect communication, high-context versus low-context communication, and
nonverbal cues, can obstruct successful communication. These styles are
impacted by cultural norms and beliefs.
 Power Distance: Higher power distance cultures show more deference to authority
persons and a reduced readiness to question or criticize decisions. Power
distance, or the degree of hierarchy and authority within a culture, can affect
communication dynamics.
 Cultural Norms: Variations in cultural norms pertaining to civility, deference, and

manners can impact communication etiquette and procedure, resulting in
inadvertent transgressions or violations of social standards.
Issues with cross-cultural communication may be numerous, but they all stem from a
failure to convey the intended message. In the worst situation, there may be
miscommunication. For example, during a presentation in a multicultural setting, a joke
could be misunderstood, causing misunderstanding and embarrassment. Again, the fear
of being demoted and the ensuing rage makes Indian companies less likely to examine
their organizational hierarchy. When it comes to an American corporation, things will not
be the same (Sahadevan, 2021).
The findings presented an Inability to convey Intended message, one of the fundamental
issues with cross-cultural communication is this. Cultural differences can cause people to
interpret language, gestures, and expressions differently, which can lead to
miscommunication or misunderstandings. Miscommunication, misunderstandings, and
misinterpretations of messages can result in miscommunication. This may lead to
misunderstandings, annoyance, and even hostilities between people or groups from
various cultural origins. Differences in humour across cultures Humour is very culturally
particular, and what is humorous in one culture could not be in another. Insensitive
humour in one cultural setting may offend or confuse others, causing awkwardness or
conflict.
There are many difficulties in cross-cultural communication, most of which stem from
the inability to communicate intended meanings clearly. This problem underlines how
important it is to recognise and deal with cultural quirks to guarantee effective
communication in a variety of settings. The possibility of misinterpretation, which can
result in misunderstandings, annoyance, and even confrontation, is one significant effect
of this difficulty. For example, misinterpreting humour can cause embarrassment or
stress because humour that is funny in one culture may not transfer well to another.
Humour is a deeply cultural phenomenon. Another degree of complication is added by
the differences in organisational hierarchy between cultural contexts. In contrast to the
more transparent and inquiring culture frequently observed in American organisations,
fear of demotion and the ensuing reluctance to confront hierarchical systems are
pervasive in the setting of Indian companies. Cultural sensitivity and understanding must
be given top priority by people and organisations to effectively solve these problems.
This entails appreciating and acknowledging cultural variations in humour, attitudes
towards authority, and communication techniques. Organisations can reduce the
possibility of misunderstandings and encourage more fruitful cross-cultural cooperation
by cultivating an inclusive and understanding atmosphere. Building successful
international relationships and negotiating the intricacies of cross-cultural communication
require embracing diversity as an asset rather than a problem.
(Giles, 2007) states that the communication accommodation theory provides a

framework on understanding how individuals adjust their communication behaviours to
accommodate and adapt to others. By understanding the communication accommodation
theory, the principles of convergence, divergence, and contextual assessment,
individuals can navigate cultural differences, minimize misunderstandings, and foster
greater harmony and collaboration in multicultural settings.
ii Cultural adaptation and market entry strategies
According to surveys that McDonald's commissioned, there is a sizable market for eating
out in India, and consumers are becoming more likely to spend money there. Indian
cuisine could not be replaced by American fast food, even though Indians desired to try
it. Therefore, if McDonald's wanted to succeed in India, they had to modify their menu to
suit Indian tastes. India was distinct in that half of its people were vegetarians,
necessitating the creation of a special cuisine for them. Large payments had to be paid
to lure a trial at an enticing price because the common Indian had limited purchasing
power (Rangnekar, 2014). From the above extract, there has been product localization.
McDonalds had recognized the importance of modifying its menu to suit Indian tastes
and preferences. Due to the large market for eating out in India, McDonalds would need
to make significant adjustments to ensure that they remain profitable. Furthermore,
McDonalds had to create a special cuisine that is tailored towards their preferences. This
is due to having a large vegetarian population. Adjustment for Market Suitability: Due to
the distinct features of the Indian market, McDonald's had to alter its strategy for
entering the country. This required not simply changing the menu but also taking price
policies and customer trends into account. Understanding Consumer Behaviour: Prior to
entering the Indian market, McDonald's showed that it was committed to learning about
consumer preferences and spending patterns by conducting surveys. This helped them
make decisions and enabled them to modify their products, as necessary. Investment in
Market Entry: McDonald's strategic commitment to success in India is evident in its
readiness to invest heavily in changing its menu and providing alluring rates. This
emphasises how crucial it is to make significant expenditures in market research and
customisation to enter a successful market.
McDonald's India has a special supply chain that buys ingredients locally from more than
one hundred vendors, guaranteeing the freshness and superior quality of its meals. In
addition to helping local farmers and companies, this has also assisted McDonald's in
creating a sustainable supply chain. McDonald's India has concentrated on their morning
menu, which include dishes like Anda Bhurji and Masala Scrambled Eggs, to cater to
Indian consumers (Vaijayanthi, 2022). A number of creative marketing initiatives have
also been introduced by McDonald's India, like the "McDelivery Promise," which promises
delivery in 29 minutes or free food, and the "McDonald's Spice Festival," which offers a
variety of hot Indian-inspired foods (localgoesvocal, 2023).
McDonalds realised that adapting the menu to local preferences alone would not be
sufficient for a successful foray into the Indian market. They also must take client
patterns and pricing strategies into account. This underscores the significance of
adopting a comprehensive strategy for entering the market, wherein enterprises must
modify multiple facets of their business model to conform to the distinct attributes of the
intended audience. McDonald's initiative-taking approach to market research is
demonstrated by their dedication to using surveys to understand consumer preferences
and spending habits. McDonald's was better able to adjust its products and marketing
methods by learning more about the tastes and habits of Indian consumers. This
emphasises how important customer-centric strategies are for succeeding in untapped
markets. McDonald's significant investment in menu modifications and competitive
pricing indicates a deliberate commitment to success in India. This emphasises how
crucial it is to make large expenditures on customisation and market research to forge a
solid foundation in a new market. McDonald's showed a long-term commitment to
gaining market share in India by devoting resources to comprehending local preferences
and modifying their offers accordingly.
Hofstede’s cultural dimensions theory will be used to help analyse cultural adaptation
and market entry strategies. In India, collectivism is more prevalent, with strong
emphasis on family and community ties. It is imperative for McDonald's to comprehend
this component to formulate its marketing tactics. The corporation may, for instance,
prioritise family-friendly dining experiences to appeal to the collectivist beliefs of Indian
customers. India is a long-term-oriented country that values tradition, frugality, and
tenacity. McDonald's might take advantage of this cultural orientation by highlighting the
dependability, consistency, and quality of its goods and services as long-term
advantages. India has a large power distance, which means that people respect and
tolerate hierarchical structures. throughout this situation, McDonald's would have to
modify its management techniques to fit the hierarchical corporate culture of India, by
making sure that its operations throughout the nation had distinct lines of authority.
These key theories adopted from (Sridharan, 2022) show how Hofstede’s cultural
dimensions theory has a significant role to play when analysing the impact of culture
within MNCs.
iii. Impact of cultural factors on Consumer Behaviour
India has a large family-centric culture. Homes are sacred spaces where families can
spend quality time together. This specific cultural value can influence the consumer
behaviour. This means that each family will have their own furnishings and fittings that
cater towards family needs and facilitate shared experiences (Martinell, 2020). To learn
about people's lifestyles and needs, Ikea personnel also went to around 1,000
households spread across multiple cities. The business increased the number of folding
chairs and stools that could be used as flexible seating because Indian families love to
spend a lot of time together and receive visits from relatives (Goel, 2018). Furthermore,
the store offers hundreds of items, ranging in price from dolls to spice jars, all for less
than one hundred rupees, in recognition of India's lower income levels. Ikea occasionally
offers a product for less money in India than it does elsewhere. In other cases, the
business is customising it to suit regional preferences. For instance, the company
decided to sell four spoons for fifteen rupees instead of its children's plastic cutlery packs
because most Indians prefer spoons over knives when eating (Goel, 2018).
Indian families place a high value on getting together as a family, which necessitates
the requirement for furniture to support group activities. Folding chairs and stools are
necessary for accommodating frequent visits from family. Furniture and storage options
for smaller living areas must optimise available space. Design decisions are influenced by
inclinations towards vivid hues, conventional themes, and complex patterns. Customers
anticipate long-lasting, premium goods that are also reasonably priced. IKEA sells
hundreds of products for less than one hundred rupees, acknowledging the lower income
levels in India. With this pricing strategy, a larger portion of the population may
purchase IKEA products, meeting the affordability needs of Indian consumers.
Localised Pricing: IKEA occasionally offers lower prices for its products in India than it
does in other countries. This illustrates IKEA's readiness to modify its price approach to
take local purchasing power and economic situations into account. IKEA hopes to draw in
cost-conscious Indian customers and boost sales in the Indian market by providing
competitive prices. In India, IKEA customises its product line to suit regional preferences
and tastes. For instance, IKEA changed the cutlery boxes for youngsters to include
spoons rather than knives after realising that most Indians prefer spoons than blades
when eating. IKEA's dedication to comprehending and adapting to cultural conventions
and customer preferences in the Indian market is demonstrated by this customisation.
IKEA's move to charge fifteen rupees for four spoons satisfies the demand of Indian
customers for cost-effective purchases. IKEA meets the unique needs and usage
patterns of its customers by providing cost-effective solutions in value-pack
combinations for its products.
The pricing and product adaptation strategies employed by IKEA in India can be
examined from the perspectives of individualism versus collectivism, masculinity versus
femininity, and uncertainty avoidance, which involves addressing price sensitivity and
offering clear value propositions, as well as tailoring products to fit communal living
practices. IKEA can effectively cater to the demands and preferences of Indian
consumers and increase its market competitiveness and success by comprehending and
adjusting to these cultural elements. Hofstede’s cultural dimensions theory provides
insight into how cultural factors influence consumer behaviour (Leng, 2010).
iv. Management and Leadership practices
Multinational corporations (MNCs) would be wise to seek out candidates with excellent
intercultural competencies when choosing leaders and managers who would have
accountability for the entire organisation. Adapting their leadership style to collaborate
with people from many cultural backgrounds and accomplish their goals could be one of
those capabilities. As a result, the MNC may discover that various leadership
philosophies are being used concurrently within the organisation. Among the most used
leadership philosophies in tandem are autocratic, democratic, and visionary (Filthuth,
2021). When it came to conflict management approaches, Thais were no different from
Americans in that they chose avoidance and compliance. There were no discernible
variations in the conflict management styles that people preferred. Thais' inclination for
dominating conflict management techniques was positively correlated with length of stay
abroad, whereas their preference for avoiding and obliging conflict management
strategies was negatively correlated. (Boonsathorn, 2007).
Hiring managers and executives with strong intercultural competences should be a top
priority for multinational corporations. With the help of these competencies, individuals
may collaborate well with people from diverse cultural backgrounds, modify their
leadership approaches appropriately, and accomplish organisational objectives in
multicultural settings. It is typical to see MNCs apply different leadership philosophies—
such as authoritarian, democratic, and visionary—concurrently. Because of this
adaptability, leaders can customise their strategies to meet the unique requirements of
various teams, scenarios, and cultural environments. According to the research,
Americans, and Thais both favour compliance and avoidance as conflict resolution
strategies. This finding implies that these two cultural groups' preferred methods of
resolving conflicts may be comparable. Among Thais, there is a relationship between the
duration of their overseas stays and their propensity to use conflict resolution strategies.
A preference for dominating conflict management techniques is favourably connected
with longer stays abroad, whereas a preference for avoiding and obliging conflict
management strategies is adversely correlated.
The intercultural competence theory is a theory that relates to people who possess
significant intercultural competences can interact and manage multicultural contexts with
effectiveness. It highlights how crucial cultural awareness, effective communication, and
flexibility are to having positive cross-cultural encounters (Vevea, 2011).
6. Conclusions and Recommendations

I. Summary of findings
This research project aimed at exploring why Culture has an influence on the success of
Multinational Corporations (MNCs) in emerging markets. The key findings have shown
that Cultural nuances profoundly influence consumer preferences, with factors such as
collectivism, uncertainty avoidance, and long-term orientation shaping purchasing
decisions and brand loyalty. Furthermore, adaptive leadership styles and participative
decision-making processes are essential for navigating cultural diversity within MNCs,
fostering employee engagement, and driving organizational performance. Cross cultural
communication can have an impact through language barriers, communication styles,
and cultural norms pose challenges to effective communication, underscoring the
importance of cultural sensitivity, active listening, and flexible communication strategies.
Moreover, Hofstede’s Cultural Dimensions theory has provided a framework for
understanding cultural variations in values, norms, and behaviours, offering valuable
insight for MNCs to tailor their strategies to local contexts.
i. Contribution to Academic Literature and Practice
The findings of this project have significantly contributed towards academic literature
with relation to international business and cross-cultural management. By empirically
validating theoretical frameworks and offering practical insights, this research advances
understanding by offering complex insights on how culture affects organisational
communication, leadership dynamics, and consumer behaviour within MNCs operating in
emerging markets.
The research provides empirical evidence that supports or refines existing theoretical
frameworks in the field of international business and cross-cultural management. For
example, by applying Hofstede's cultural dimensions to analyse consumer behaviour or
leadership practices in emerging markets, the study validates the relevance and
applicability of this framework in diverse cultural contexts.
Through the analysis of secondary data, the study may uncover new insights, patterns,
or relationships that contribute to a deeper understanding of the influence of culture on
multinational corporations (MNCs) in emerging markets. These findings enrich academic
literature by shedding light on previously unexplored aspects of the research topic. The
research synthesizes and integrates findings from existing studies, providing a
comprehensive overview of the current state of knowledge in the field.
By synthesizing various sources of information, the study provides a comprehensive view

of how culture impacts MNC success in emerging markets, addressing gaps and
inconsistencies in existing literature. It offers actionable insights for managerial decision-
making in multinational corporations, bridging theory and practice to facilitate the
practical application of academic research in real-world business contexts.
The research may also contribute to methodological advancements by demonstrating

innovative approaches to data collection, analysis, or interpretation. By displaying the
effectiveness of specific research methods or analytical techniques, the study adds value
to the methodological toolkit available to scholars in the field.
ii. Recommendations
Building on the previous findings, the following recommendations would be beneficial

towards MNCs working in emerging markets.
To improve employees' cross-cultural competency and awareness and to create inclusive

organisational cultures that value diversity as a strategic asset, invest in diversity
programmes and cultural sensitivity training.
Adaptive leaders may effectively manage cultural variety, foster trust, and motivate
high-performing teams by adopting leadership styles that prioritise collaboration,
empowerment, and cultural agility.
To promote open communication, mutual understanding, and productive teamwork

within multicultural teams, implement customised communication tactics that take into
consideration cultural differences in communication styles, language preferences, and
nonverbal indicators.
Employ Hofstede's cultural dimensions as a diagnostic instrument to evaluate cultural

differences among various market segments, providing valuable insights for strategic
decision-making, market segmentation tactics, and localization initiatives.
iii. Limitations and Future Research Directions
Whilst the research has provided valuable insight into the influence of culture on MNCs
success in emerging markets, there are still many limitations such as:
The use of secondary data could restrict the scope of the research and the capacity to
capture changes in real time within cultural contexts.
The variety of data sources analysed, and the complexity of cultural contexts may limit
how universally applicable the conclusions can be.
Further research endeavours could delve into qualitative investigations into the lived
experiences of individuals inside multinational organisations, comparative assessments
across different industry sectors or geographic locations, and longitudinal studies to
follow changes in cultural dynamics over time.
In conclusion, this study highlights the critical influence that culture has on the tactics,
procedures, and results that multinational firms employ in developing nations. In today's
interconnected global economy, multinational corporations (MNCs) can seize new
chances for growth, innovation, and sustainable success by embracing cultural diversity,
cultivating cross-cultural competency, and adjusting to the subtleties of local contexts.
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Appendices
Appendix 1:
List of search terms used:
 Multinational Corporations
 Emerging markets
 Cross cultural communication
 Hofstedes Cultural dimensions
 Consumer behaviour
 Management and leadership
 Cultural adaptation
 Market entry strategies
 Mcdonalds report
 Ikea report
 China
 India
Appendix 2:
Databases and secondary sources used:
 Google scholar
 NTU library pro
 Ikea annual report
 Mcdonalds annual report
Images one and two show the searches used to find information below:
Appendix 3:
The image below shows a theoretical framework on how culture has had an influence on
the success of MNCs in emerging markets:
Appendix 4:
Supervision record:
Date Contact type duration Notes

6th October 2023 In person 15 minutes Discussed my
choice of topic
25th October 2023 In person 15 minutes Discussed my sub
questions/ themes
31st October 2023 In person 15 minutes Discussed my
choice of methods
1st December 2023 email 5 minutes Discussed literature
review
15th December email 5 minutes Discussed findings
2023

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Aims and Objectives:

This study aims to investigate the influence of culture on the success of

Utilizing secondary data sources, this research employs a qualitative approach to

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Multinational Corporations, Emerging markets, Culture

Culture can be defined as the characteristics and knowledge of diverse groups of

Hofstede’s cultural dimensions plays a significant role in understanding the influence

Consumer behaviour is another important factor that can determine whether a

success of multinational corporations in emerging markets. Secondary data will

i Cross Cultural Communication

Cross Cultural Communication is an essential tool for building bridges between

Cross cultural communication creates a foundation in which two people from

Culture plays a significant role in shaping product preferences and consumption

Multinational corporations adapt their strategies to meet the changing consumer

iii Leadership and Management Practices

Effective leadership in developing markets necessitates an elevated level of cultural

Managers and leaders at Multinational corporations have a significant role to play

Cultural dimensions are essential frameworks that provide an understanding of the

Another key cultural dimension is understanding the degree of interdependence

Masculinity vs femininity refers to how conventional gender roles are distributed in

V Summary and Theoretical Framework

Cross Cultural Communication: Interaction of Ideas and Information: Interaction of

Figure 1: Theoretical framework

How do cultural dimensions, such as individualism-collectivism, power distance,

What are the predominant leadership and management practices adopted by

How do Hofstede's cultural dimensions serve as a framework for understanding the

iii. Data collection and Analysis

IV. Detail on Data Collected

When looking at the ethical considerations, there needs to be a certain level of

i. Factors affecting cross cultural communication.

 Language Barriers: Effective communication between multinational corporations

 Cultural Norms: Variations in cultural norms pertaining to civility, deference, and

(Giles, 2007) states that the communication accommodation theory provides a

ii Cultural adaptation and market entry strategies

iii. Impact of cultural factors on Consumer Behaviour

iv. Management and Leadership practices

6. Conclusions and Recommendations

i. Contribution to Academic Literature and Practice

By synthesizing various sources of information, the study provides a comprehensive view

The research may also contribute to methodological advancements by demonstrating

Building on the previous findings, the following recommendations would be beneficial

To improve employees' cross-cultural competency and awareness and to create inclusive

To promote open communication, mutual understanding, and productive teamwork

Employ Hofstede's cultural dimensions as a diagnostic instrument to evaluate cultural

iii. Limitations and Future Research Directions

crossculture2go (2024). Cross-cultural Communication in International Business - crossculture2go. [online]

kire, k (2017). culture influence on consumer behaviour . [online] Available at:

Niosi, A. (2021). Culture Explained. opentextbc.ca, [online] 39. Available at:

OECD (2018). Background document. [online] OECD . Available at: https://www.oecd.org/cfe/leed/venice-

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Databases and secondary sources used:

Date Contact type duration Notes

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