¶ … representing a Japanese parent company setting up a new international joint venture (IJV) in Sweden. There has been some debate over the type of control system the company should use.
Over the last several years, a wide variety of firms have been establishing operations around the world. Part of the reason for this, is because globalization has been forcing many companies to build these kinds of facilities in other locations to support their business model. In the case of the Japanese firm, the implementation of operations in Sweden can be challenging based upon different cultural factors. To determine what kind of control system should be used in Sweden requires: examining the variables to consider when designing the organizational structure, the way these variables are interacting, the most important ones for success of the IJV, balancing global / local needs and how the organization can be created to take these different views into account. Once this takes place, is when we can provide specific insights that will help us to be able to establish a venture that will support the long-term needs of the company.
As a Japanese company, what are the variables that you have to consider when designing the organizational structure for the international operations?
The biggest variable that must be considered is the cultural differences between the Japan and Sweden. In Japan, everyone believes that they should support the larger objectives of the group. This means that employees who are working at the firm will have greater amounts of loyalty towards the company and its larger objectives. As, the ideas of dedication, teamwork, doing...
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Under the circumstances, a Japanese company should engage in a joint venture that allows for considerable control on the part of the managing, local entity in Sweden for day-to-day human resource activities. If a Japanese manager expects Swedish employees to act Japanese, and to obey organizational protocols without question, he or she is setting the agreement up for failure. When designing an organizational structure to take advantage of international opportunities, the
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