Soft Institutions and the Diffusion of Management Innovations across Borders

This paper proposes an approach to support the understanding of the role of soft institutions (i.e. cultural values and norms) on the introduction and use of management practices when diffused across cultural (national/organisational) borders. This paper builds on empirical data from a case at Ericsson Radio System (Kista, Sweden). This case illustrates the impact of national values on the diffusion on process management practices in three different Ericsson subsidiaries in Sweden, Argentina and New Zealand. The paper concludes with the definition of research issues regarding the role of soft institutions on the diffusion of management innovation across borders.

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