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Lessons in crossvergence: restructuring the Thai subsidiary corporation

Andrews, T. and Chompusri, N. (2001) Lessons in crossvergence: restructuring the Thai subsidiary corporation. Journal of International Business Studies, 32 (1). pp. 77-93. ISSN 0047-2506

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Abstract

This paper explores the impact of indigenous business culture upon the corporate restructuring program initiated in the Thai subsidiary of a Western multinational. Defined in terms of behavioral institutionalization, change implementation was largely resisted by one of two key strategic departments. Using a conceptual framework developed from existing cross-cultural business research we examine the key determinants of local opposition and trace the emergence of 'crossvergent' business practices acceptable to both 'Thai-market' and 'Western-corporate' agendas. Implications for the management of western corporate subsidiaries in the developing economy of Thailand are then discussed.