The cultural consequences for European collaborative arrangements in telecommunications

This work investigates the cultural consequences on international collaborative arrangements (ICAs) within the European telecommunications industry. We analyse which cultural variables influence 1CA success and which entry mode and management strategies should be utilised to increase their positive effects on the collaboration. We use Germany as investigative point of origin. Furthermore, we look at culture in Europe in general and at specific cultural variables that have been previously overlooked.

We find that culture within Europe is heterogeneous with a clear North-South divide and that the success of ICAs is influenced by the management of these differences. We achieve these results through a mixture of qualitative and quantitative research methods for model building, testing and triangulation.

We test the hypotheses that language and national pride are strong determinants of cultural differences within European. They influence the effectiveness of international and internal management strategies within ICAs. Our results further support the hypothesis that national and corporate cultures are important issues to be considered for ICA entry mode choice as well as management strategies.

We also show that national cultural consequences vary with different departmental internal or external focus, technology content and local terminology. We further find that international employees need to show capabilities on a general as well as an international dimension. We show how to assess an ICA opportunity, choose an appropriate entry mode strategy and adapt internal management strategies on the corporate, departmental and individual level to suit the local national culture and increase future success potential.

Our study allows a closer look at ICAs and the cultural consequences they face. We show that cultural differences need to be considered for company strategy, even if their relevance appears minor, as they affect an ICA’s success potential. We make recommendations towards suitable management and entry mode strategies for successful ICAs. This study contributes towards the academic literature, business knowledge and practices as well as policy making.