Managing the Culture of Diversity: National and Cultural Identities as the basis of Sustained Competitive Advantages in Globalised Markets

By Andrejs Chirjevskis and Iveta Ludviga.

Published by The Diversity Collection

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Article: Print $US10.00
Article: Electronic $US5.00

Globalization, as it is expressed by business, espoused by economic theories, and described in popular press, is fundamentally about social and cultural change. This paper seeks to identify the dimensions which are relevant in the shaping of strategies of Small and Medium Enterprises (SME) in this changing environment. The study is carried out in the intersection between social sciences and strategic management. This paper introduces concepts, core competences and connections as necessary variables for formation of Sustained Competitive Advantage (SCA) based on cultural identities of locality in the presence of globalization trends. Resources are stories, ideas, designs, attitude and capabilities are abilities, rituals, technologies, process, skills and knowledge widely present in cultural environment of every locality. Globalisation provides a connections, ‘opens doors’ and ‘widens horizons’. It is argued that globalization makes local cultures more visible and creates interest about them providing companies with necessary connections for the cultural identities to serve as the basis for strategically important SCA. Research among Latvian SME, carried out and presented in the second part of the study, shows their supporting attitudes towards culturally based SCA. They view globalization as positive trend and agree that Baltic cultural achievements can be cultivated, maintained and exported.

Keywords: Globalization, Cultural Identities, Core Competence, Sustained Competitive Advantage

International Journal of Diversity in Organizations, Communities and Nations, Volume 9, Issue 4, pp.85-98. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.401MB).

Dr. Andrejs Chirjevskis

Associate Professor, Business Consultant, Riga International School of Economics and Business Administration, Latvia

Dr. Andrejs Chirjevskis, Professor, Management and Marketing Department.

Dr Iveta Ludviga

Programme director, Programme, Riga International School of Economics and Business Administration, Riga, Riga, Latvia

I am doctoral student in RISEBA and also working in RISEAA. Previously I was entrepreneur for many years, thus my research interests are directly connected with entrepreneurship, strategy and search of new opportunities for business. My business was in cultural sector of economy and therefore I believe that culture is much more than ‘non for profit’ activity as it is viewed in Latvia still. My previous research paper was about globalisation’s on culture and it was conclude that globalisation promote diverse cultures instead of cultural homogenisation. The survey, which was conducted among Latvian entrepreneurs, showed that majority of them has never thought about possibility to exploit cultural features of Latvia in their product design. Hence my current research interests are connected with cultural identities and their use for country branding and creation of competitive advantage of companies.

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