Cross‐cultural differences and Italian firms' internationalization in Algeria

Abstract

Purpose -The purpose of this paper is to investigate the impact of cross-cultural differences on Italian firms' internationalization in Algeria, and to determine if performance orientation and assertiveness are perceived by Italian managers of local subsidiaries as important cultural dimensions. Design/methodology/approach -This paper is a qualitative analysis based on a semi-structured questionnaire and three case studies. All the questionnaires are submitted during an interview in order to clearly explain their purpose and the terms used. Findings -Cultural differences are strongly perceived by Italian managers operating in Algeria. Algerian culture seems to be characterized by a low degree of performance orientation and a low degree of assertiveness, with strong implications for Italian managers.Research limitations/implications -The sample is still limited and in the future a quantitative analysis on a larger sample should be done in order to evaluate the relationship between family and religious values, on one hand, and performance orientation and assertiveness, on the other. Practical implications -While entering Algeria, Italian firms have to be aware of cross-cultural differences. Algerians' low performance orientation and assertiveness discourage local workers to reach higher standards and to improve performance, and they impact on Italian managers' capability to give instructions and to motivate local workers. The involvement of local managers is crucial in overcoming these problems. Originality/value -While interest towards Southern Mediterranean countries is increasing, there is little written on this topic. The impact of performance orientation and assertiveness on firms' internationalization has not been investigated so far.

Does Organizational Culture Influence the Innovativeness of Public-Listed Housing Developers?

“…Most studies on organizational culture tend to focus on the cultures that are present in specific organizations or industries (Hofstede and Hofstede, 2005;House et al, 2002;1999;Calza et al, 2010;Bond et al, 2004). In the construction industry, of which the housing industry is a part, Cheung et al (2010) uncover the two most apparent cultures in construction firms: the collectivism culture (teamwork) and performance orientation.…”

“…The assertiveness of an organization is exhibited in direct and less ambiguous communication styles between managers and subordinates (Calza et al, 2010). Calza et al (2010) show that organizations with a high level of assertiveness have the tendency to insist on the validity of its opinion to members and their associates.…”

“…Although performance orientation has some similarities to the masculinity-femininity dimension, Calza et al (2010) argue that performance orientation is also related to uncertainty-avoidance culture dimensions, such as willingness to take risks and openness towards change. Within an organization, performance orientation also implies short-term sacrifices in favor of realizing longterm goals.…”

The efficacy of high performance work practices in the Middle East: evidence from Algerian firms

“…Like other Middle Eastern countries, it is characterised by high power distance, strong collectivist tendencies (Calza, Aliane, and Cannavale, 2010), high uncertainty avoidance, and low performance orientation (Ralston, Egri, Riddle, Butt, Dalgic and Brock, 2012), which could, as will be discussed later, potentially limit the effects of HPWP. Also, since the late 1990s, the HR function has been significantly reformed and, as a result, firms in Algeria have been experimenting with Western best practices.…”

The International Entry Choices of Italian SMEs in Emerging Markets: a Case-based Analysis

“…According to the collected information, we consider hostile countries to be those that are less open to foreign investments and have pretentious and very strict tax regimes. Considering the transitioning markets, these countries are generally high-context cultures, where the Western are perceived often as culturally distant, sometimes even as a threat (Calza et al 2009;2010;2013). We consider them as welcome countries instead, as these are states where the tax regimes and the interfer-ences of governments are mild, and where the authorities encourage and attract foreign investments by introducing of a number of exemptions and reducing state holdings.…”