Organizational culture embodies and promotes common values, goals, and direction. We have seen that this enables international divisions to operate effectively across locations.

It is valuable for divisions to orientate around key corporate values. That said, the corporate center should also recognize the value of local organizational culture. This allows divisions the freedom to maintain an appropriate degree of local engagement.

Imposing the headquarters recipe for success on international operations does not always work. The working environment and practices deliver business success. Satisfied, motivated, and productive employees enable this. However what works in one business location may not deliver the same results in another. We suggest people practices across operations have a common foundation, yet customized to local needs.

The product market, industry sector, and degree of decentralization influence the degree of uniformity of culture. Moreover, mature companies may require a more explicitly defined and articulated corporate culture. Companies on fast growth trajectories do not work with well-defined culture.

That said, the freedom to develop local culture may lead to substantial differences in practices and styles. International communication ensures that despite differences, divisions understand and cooperate. This helps share knowledge and experience, and leverage synergies.