An Examination Of Cross Cultural Competence In International Business: The Case Of The Subsidiaries

Abstract

Cultural competence as approached in this paper enables individuals and organizations to work or respond effectively across cultures in ways that the values, beliefs, traditions and customs are recognized. This study uses Jaccarino & Kendall (2004) empirical model to understand the cross-cultural competence process in an organization. The model consists of four elements: cultural awareness, skill development, developmental planning, and organization strategy. Moreover, this paper explores similarities and differences that exists and the business implications that results from cultural competence variations. Null hypothesis 1 covers the comparison between international subsidiaries by stating that there are no differences in cultural competence between two subsidiaries (United States and Mexico) of an international firm once they operate under unified directives. Null hypothesis 2 covers the comparison within each subsidiary by stating that there are no differences in cultural competence between administrators and direct service providers/clerks in each subsidiary (United States and Mexico) of an international firm.