Transmission of Management System as Strategy

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The purpose of this paper is to examine whether a multinational company can transmit its corporate management system and operations management system from its domestic operation to its subsidiary located in a country with very different national culture. According to Hofstede(2002), the national culture of the host country will dominate the internal management system of a multinational company. This research proposes that it is possible for a multinational company to override ddfferences in national culture and create a 'company citizenship' across the globe with similar corporate management and operations management system. Another purpose of this research is to show that it is not true that globaliztion would create just one single culture, originated in USA and Western Europe, which is called 'Jet-Set Culture'by Freedman(2006). Japanese multinational companies are spreading their own unique organizational values of their management system across the world in their subsidiaries. Thus, different multinational companies may create their own unique organizational culturethat produces their own company citizenship, which can be spread globally. To prove these hypotheses, this paper has reported the result of a survey conducted in the domestic operations of the Toyota Motor Company(Toyota) and in its operations in India. Core values of Toyota's Management systems are derived from the values that are identified in the mission statement of Toyota. According to the results of the survey based on opinions of Toyota's employees, there are broad similarities in the values composing its management systems irrespective of national locations. Thus, Toyota has managed to form the 'company citizenship' in its headquarters in the host country, Japan,and successfully transmitted it in its subsidiary located the host country, India, with an alien national culture. Therefore, thhe company citizenships of different companies,based on their unique organizational cultures, but not on their national cultures, are emerging as a new organizational form in this global era.

Transmission of Management System as Strategy

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