The effects of cultural diversity in a multinational company

Abstract

The main purpose of this study is to explore the effects of cultural diversity within a multinational company. The multinational company selected was Palumbo Group, which has its headquarters in Italy and two subsidiaries in Malta. The subsidiaries established in Malta have a combination of Maltese and Italian workforce. The literature reviewed analyses the classics of the cultural diversity models and dimensions, together with more contemporary research. The methodology used was primarily ethnographic and included autoethnogarphy and indepth interviews. Autoethnography involved personal observations on the cultural diversity present in the Maltese shipyards. The unstructured in-depth interviews were conducted with three Italian participants and three Maltese participants. These research methods helped to explore the various insights of cultural diversity, from the perspectives of the Maltese and Italians, employed with the company. The literature is essential in the creation of themes in the presentation and analysis of the findings, since most of the data collected from the unstructured interviews, could be categorised under some of the points mentioned in the literature review. The findings of this research showed the differences between the Maltese and the Italian cultures in Palumbo Malta Shipyards. The findings represent the obstacles presented by cultural diversity while also highlighting some of the advantages of the cultural diversity within Palumbo Group. The obstacles are mainly caused by how different cultures perceive time, personal space, uncertainty avoidance, and how the cultures are oriented towards individualism vs. collectivism and universalism vs. particularism. The research also portrayed how the ideal international manager can effectively manage cultural diversity. A more pro-active approach needs to be adopted by the management of a multinational company to create the right synergy between culturally diverse employees so as to gain all the advantages which cultural diversity presents.