National culture, business culture and management practices: consequential relationships?

This paper aims to trace the evolution of nationality‐based business organisations in Malaysia and review whether national culture, as determined by the nationality‐based work values, beliefs and orientations of the owners and managers of organisations, influences the values, orientations and practices of organisations.

In‐depth literature review and “key‐informant” surveys, based on which a structured questionnaire was developed. After pre‐testing and finalisation, questionnaires were administered by fax on 1,248 Malaysian organisations selected through systematic sampling. The survey generated 376 usable responses. After testing for non‐response bias, usable responses were subjected to common factor, reliability and canonical correlation analysis.

Even though there are significant differences in how business entities (delineated on the basis of the national culture of owners and managers) organise and conduct their operations, these differences cannot be attributed to the beliefs and orientations of the owners and managers of these organisations. Significant “cultural” differences are evident across organisations owned and managed by individuals of one nationality and significant “cultural” similarities are evident across organisations owned and managed by individuals of different nationalities. Many other factors such as the legal, economic and regulatory context of the organisation influence its values, orientations and practices more profoundly than the national culture of its owners and managers.

Interfacing managers should not stereotype the values, orientations and behaviours of organisations with which they interact based on knowledge about nationality‐based beliefs, behaviours and orientations of the owners and managers of organisations.

Provides a challengingly different perspective from the conclusions in some of the most authoritative studies on nationality‐based organisational beliefs and culture.