BUS 432 Lecture Notes - Lecture 5: Tacit Knowledge, Disneyland Paris, Explicit Knowledge

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Cultural motives: want more internal consistency between the different dimensions; firms might have a culturally based practice that feel comfortable to them. Which means most of their hr practices are dictated from the parent company, thus there is a gravitation towards internal consistency. They adopt practices that are consistent with their culture, thus they lean towards internal consistency. As firms become more international, country of origin effects diminish. Social dominance: country practices, which are considered more superior countries, tend to be adopted. If they find it consistent with their core competence, they tend to adopt it. You integrate practices from all over the world. It"s easier to transfer practices to liberal market economies because of the flexibility. If you have a coordinated market economy, it may be difficult to practice something such as pay for performance because the unions are much stronger. Cognitive: what people believe is the right way to do things.

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