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Business and social contexts. Where are the connections?

No business is an island, detached from the social and national context in which it operates. Indeed, the very culture of enterprise that underlies the actions of a business is heavily influenced by this context. These would seem to be statements of which any business owner or manager should be well aware; however, it is important to fully understand their meaning and their implications, particularly with a view towards developing areas and emerging markets, those to which Italian and other European firms may be focusing more attention so as to take advantage of any opportunities there may be.

In the study “Industrialization and Economic Systems in Multinational Management” published in the Journal of Global and Scientific Issues in September, Abhishek Gupta (one of the heads of the National Institute of Renewable Energy in Punjab, India) provides an interesting analysis of these connections between “national culture” and the “institutional context” and “business culture”. In essence, the study looks at the connection between culture of enterprise and a nation’s culture and social institutions. According to the author, a company’s culture is heavily influenced by the national context in which it operates. Abhishek Gupta identifies a number of aspects that businesses – especially multinationals or other businesses that come from other contexts – need to take into consideration. The first and foremost of these are the country’s economic system, its level of industrialisation, and even the nation’s religion(s), its education system and its attitude towards globalisation.  The study then looks at how these aspects interact based on the stage of development the given society is in.

One of the conclusions is that, as Abhishek Gupta writes, “successful multinational managers are those who can properly assess the institutional context of the society they operate in and design work environments that fit the institutional context”. In other words, when a business sets foot in a different setting, those governing it must take a close look at the context surrounding them. This work by Abhishek Gupta explains why from an Indian point of view.

Industrialization and Economic Systems in Multinational Management 

Abhishek Gupta

Journal of Global & Scientific Issues, Vol. 1, Issue 3 (September 2013)

No business is an island, detached from the social and national context in which it operates. Indeed, the very culture of enterprise that underlies the actions of a business is heavily influenced by this context. These would seem to be statements of which any business owner or manager should be well aware; however, it is important to fully understand their meaning and their implications, particularly with a view towards developing areas and emerging markets, those to which Italian and other European firms may be focusing more attention so as to take advantage of any opportunities there may be.

In the study “Industrialization and Economic Systems in Multinational Management” published in the Journal of Global and Scientific Issues in September, Abhishek Gupta (one of the heads of the National Institute of Renewable Energy in Punjab, India) provides an interesting analysis of these connections between “national culture” and the “institutional context” and “business culture”. In essence, the study looks at the connection between culture of enterprise and a nation’s culture and social institutions. According to the author, a company’s culture is heavily influenced by the national context in which it operates. Abhishek Gupta identifies a number of aspects that businesses – especially multinationals or other businesses that come from other contexts – need to take into consideration. The first and foremost of these are the country’s economic system, its level of industrialisation, and even the nation’s religion(s), its education system and its attitude towards globalisation.  The study then looks at how these aspects interact based on the stage of development the given society is in.

One of the conclusions is that, as Abhishek Gupta writes, “successful multinational managers are those who can properly assess the institutional context of the society they operate in and design work environments that fit the institutional context”. In other words, when a business sets foot in a different setting, those governing it must take a close look at the context surrounding them. This work by Abhishek Gupta explains why from an Indian point of view.

Industrialization and Economic Systems in Multinational Management 

Abhishek Gupta

Journal of Global & Scientific Issues, Vol. 1, Issue 3 (September 2013)