Cross-cultural management: challenges and opportunities in the era of globalization

Orlenko Olha
Associate Professor, Phd of the Economics of Enterprise and Business Organization Department, Odesa National Economic University, Odesa, Ukraine, E-mail: orlenko20022015@gmail.com, ORCID: https://orcid.org/0000-0002-8814-4476

Pietkova Karina
a student of the first (bachelor's) level of higher education, Faculty of Finance and Banking, Odesa National Economic University, Odesa, Ukraine, E-mail:petcovakarina@gmail.com

Received: 06.03.2025    Аpproved: 20.03.2025    Рublished online: 30.04.2025

Cite this article:

Orlenko O., Pietkova K. (2025) Cross-cultural management: challenges and opportunities in the era of globalization. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Kros-kulturnyj menedzhment:vyklyky ta mozhlyvosti v epohu globalizacii.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 3 (328), pp.117-123.

Abstract

This paper explores the role of cross-cultural management in the context of globalization, focusing on the challenges and opportunities that arise in international companies when managing intercultural interactions. As businesses expand their operations across borders, they must navigate cultural differences effectively to foster collaboration, enhance productivity, and maintain a competitive edge. The primary aim of this study is to provide a comprehensive analysis of how organizations can strategically manage cultural diversity to improve their overall performance. The research examines key challenges such as cultural adaptation, overcoming communication barriers, and ensuring the effective integration of diverse workforces while also highlighting opportunities, including fostering innovation, strengthening global collaboration, and improving employee engagement through inclusive corporate practices. To achieve these objectives, the study employs a qualitative research approach, utilizing a combination of literature review, case studies, and comparative analysis of multinational corporations that have successfully implemented cross-cultural management strategies. This methodology enables an in-depth exploration of best practices in managing intercultural teams, identifying key factors that contribute to successful cross-cultural communication and cooperation. Special attention is given to the role of managers in facilitating a culturally inclusive environment and implementing strategies that enhance cross-cultural competence at both individual and organizational levels. The findings highlight the critical importance of fostering cultural awareness and sensitivity in global business operations. The study underscores the necessity of structured cross-cultural training, leadership development programs, and corporate policies that respect and leverage the diverse backgrounds of employees. It also provides insights into how companies can utilize cultural diversity as a strategic asset to improve decision-making, enhance team dynamics, and drive business success in an increasingly interconnected world. This research contributes to the academic discourse by offering a comprehensive analysis of cross-cultural management strategies in a globalized economy. It emphasizes the significance of cultural intelligence, inclusive leadership, and adaptability as essential competencies for organizations operating in international markets. Furthermore, the study provides practical recommendations for businesses on how to develop policies, training programs, and leadership strategies that promote cultural awareness, inclusivity, and long-term sustainability in a diverse corporate environment. By adopting effective cross-cultural management practices, companies can turn cultural complexity into a competitive advantage, fostering a more dynamic and innovative workplace.

Keywords

cross-cultural management, globalization, international companies, intercultural communication, internationalization of business.

JEL classification:F010; L260;DOI: https://doi.org/10.32680/2409-9260-2025-3-328-117-123

UD classification:005.73:339.9

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