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Open, multicultural organisations

Multicultural organisations and complex marketplaces. These are two aspects of our world today that most modern enterprises have to face. Without overlooking issues concerning the workers and relations between production and management, the need to deal with a diverse range of commercial areas and the corresponding need to be prepared both culturally and in terms of the organisation are certainly among the most pressing challenges that a business must learn to deal with effectively.

A study by Rosana Grušovnik (M.A. in Business Sciences at the Gea College, Faculty of Entrepreneurship, in Lubiana, Slovenia) and Dejan Jelovac (professor of Organisational Sciences & Business Ethics at the School of Advanced Social Studies in Nova Gorica), which recently appeared in the academic journal Innovative Issues and Approaches in Social Sciences (IIASS), can help to better understand the relationships between different cultures within a company.

Entitled “The Impact of Managerial Multicultural Competences on Company’s Competitive Advantage in Global Economy”, the paper focuses, in particular, on the management of intercultural differences as found in both markets and organisations. As the two authors explain, the emphasis is on the managerial dilemma of how to achieve competitiveness in today’s environment, one in which diverse market forces are at play and different cultures of enterprise and consumption are coming together.

The article is based on both theory and an empirical survey of 28 managers of companies in Slovenia, the EU, and the former Yugoslavia. The goal of this survey is to determine the intercultural skills of those interviewed and their impact on the day-to-day workings of the business, as well as the impact that the cultural factors found in their respective markets have on operations.

According to the authors, this empirical evidence, backed by theory, shows that it takes managers with special management skills, with the awareness, know-how and ability to communicate and to work across constantly different cultural barriers. Indeed, the two authors go on to hypothesise that the weight of all of this is such that, in its absence, it would put into question the very existence of the enterprise. In short, any company that wants to thrive and to grow must open up to the world, boldly but with understanding. If you think about it, it’s confirmation of a challenge that we all must strive to overcome.

The Impact of Managerial Multicultural Competences on Company’s Competitive Advantage In Global Economy

Rosana Grušovnik,  Dejan Jelovac

Innovative Issues and Approaches in Social Sciences, Vol. 7, No. 3