What cultural challenges relating to leadership do organisations face when doing business in foreign countries?

An empirical study of the German and Swedish construction supply industries

Master's Thesis from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, Buckinghamshire New University, language: English, abstract: The aim of this study is to identify and evaluate the cultural challenges within organisational leadership imposed by their internationalisation activities. This dissertation aims to create an understanding for the relevance of cultural differences within the internationalisation process. It does so by analysing the cultural differences between the German and Swedish construction supply industries. The research question is; what are the cultural challenges related to leadership that organisations face when doing business in foreign countries. I discuss this question based on the analysis of the contemporary academic literature, whereby Hofstede's cultural model is considered. Semi-structured expert interviews were used to analyse the current cultural situation in both industries as well as to evaluate the findings of the theory. In conclusion, the analysis of the German and Swedish construction supply industries showed a significant difference between the contemporary literature and the primary findings of this thesis. Certain aspects of the cultural dimensions of both industries did not correspond to the literature's view of each country's culture. Although both industries are similar they show differences, which are recognised within the approach to leadership. Cultural changes are recognised in both countries and industries, as transformation in structure, resources, and expertise are being accelerated by the internet, disruptive technologies, tourism, media and migration. As technology and human migration progress, further cultural research is necessary.