The Formation and Management of Organizational Competence Based on CrossCultural Perspective

Abstract

The focus of the paper is to explore the main principles of the formation and management of organizational competence based on cross-cultural perspective. The evolutionary trajectory of organizational competence conception, including its formation and management, follows the path from the static to the more dynamic; from the rationalistic to a more interpretative approach; from the functional to a more structural approach; from the technology-based to a more sociallearning-based approach; from the isolated and fragmented to a systems approach; from a single to a multi-disciplinary approach. In today’s market competitive advantage can be ensured only by particular mutually coordinated competences that correspond to organization strategy. This reference and recent organizational competence conception there competence is treated as newly created and developed rather than already existing resources (Hong, Ståhle, 2005) are the base assumptions for analyzing the principles of organizational competence formation and management. Further on the new approach consideration was taken - from cross-cultural management perspective. The necessity of forming and effectively managing organizational competence in cross-cultural context is rapidly growing alongside the internationalization of business that becomes so complex and chaotic as well as changing management theories and practices. Crosscultural setting is involved as directly influencing organizational competence and its competitiveness. This new theoretical approach to the formation and management of organizational competence based on cross - cultural perspective is a multidimensional synthesis of recent advances and insights into new integrated theory in the area of international management that give rise to five aspects treated as principles that should be evaluated while forming organizational competence in cross-cultural context. These principles are explained, systematized and presented as a model in this paper.