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Global expansion brings with it many new challenges and opportunities for any organization. This article outlines four barriers to global expansion (language, regulation, culture, and competition) and provides leaders with organizational adjustments: organizations must develop executives with a global mindset and cultural sensitivity; leaders must decide on the level of involvement and decentralize their structure to empower local managers. These adjustments will better prepare an organization for going global.
It's inevitable. Just as a growing hermit crab will eventually look for a new shell to grow into, as organizations grow, many leaders will eventually look to other countries or continents to expand into. However, often the method that brought success at home is not the same route that will ensure success abroad. Fortunately, there's help for leaders looking to help their organizations go global. This article will outline common barriers to global expansion and suggest organizational adjustments leaders will need to make. Leaders will need to develop an understanding of these barriers and adjustments in order to know what to expect when they're expanding.
Organizations expanding into new countries will likely find that "business as usual" will not operate well in the new culture (McCaIl & Hollenbeck, 2002). The cultural differences among locals will create several barriers that must be overcome for a successful expansion:
Language. McCaIl & Hollenbeck's (2002) research on global executives found that learning the language was often the largest barrier to working across cultures. Though English is the unofficial language of international business, critical information can be lost in translation. Similarly, negotiators...