The impact of institutional processes, social networks, and culture on diffusion of global work values in multinational organizations

Abstract

Purpose Previous research has documented emergence of global work values and an important function of multinational organizations (MNOs) in their diffusion. However, studies on the processes supporting the diffusion of global work values have been limited. This study seeks to conceptually explore the roles of institutional mechanisms and moderating functions of social network structures and cultural values in diffusion of global work values within the context of MNOs. Design/methodology/approach Adopting a multilevel approach and grounding the arguments in the neo‐institutional framework, this work synthesizes cross‐cultural research with organizational theory research to present a conceptual model of the diffusion of global work values in the context of MNOs. Findings It is proposed that the level of diffusion of global work values by members of MNOs is positively related to the level of institutionalization of these values within and between MNOs by means of regulative and normative institutional processes. The arguments also suggest that regulative and normative institutional processes are likely to diffuse global work values more efficiently among members of MNOs with collectivistic value orientations and tight dense social networks with closures. Practical implications The findings may be useful for managers looking to implement global corporate culture and values programs, searching for the right mechanisms to diffuse values among units with certain cultural backgrounds, social network structures and institutional contexts. Originality/value This paper combines diverse research streams to elaborate on the dynamic interfaces of global work values diffusion and lays groundwork for future empirical investigations.