Cultural effects of global businesses and multinational businesses: Localization versus globalization - middle-point cultural hybridization

Abstract

The concept of globalization is a process in which countries, cultures, organizational cultures, and even organizational structures converge with each other and a single standard point of view in the world emerges, and it identifies and defines the differences of the elements. This shows that the processes of globalization and localization are always in interaction. Convergence brought by globalization shows that multinational enterprises perform standard activities at the global level. However, in contrast to this convergence, with the effect of localization, hybrid organizational structures are becoming important especially in order to provide competitive advantage in the national market. While creating hybrid organizational structures, attention is paid to establish a structure that will not hinder the coordination between the host country and the home country. In this context, the definitions of globalization, localization, hybridization, and how the complexity of their interactions are reflected in business strategies are discussed from a theoretical point of view.