Finding Employees Who Support Company Culture Top Concern When Expanding Abroad

New report from The Economist Intelligence Unit identifies "softer" aspects of business expansions, such as finding new employees who support and enhance the brand’s existing culture, as a top concern.

culture-EIU-expanding-abroad
(Credit: Digital Vision)

Bringing new people into a company’s culture and values is among the biggest challenges during international expansions, according to a new report by The Economist Intelligence Unit (EIU).

Corporate Overseas Expansion: Opportunities and barriers, sponsored by TMF Group, is based on a survey of 155 senior executives who have knowledge of the issues involved in their company’s expansion into foreign markets. Among those interviewed for the report there was near-unanimous agreement that maintaining company culture while respecting local customs and cultural differences is a fundamental objective for a successful international expansion. By contrast, policymakers may have overstated the importance of a location’s level of taxation, as this seems to be far less of a concern in companies’ expansion projects than might have been expected.

The survey also finds that a desire to open new markets and gain market share are the principal drivers of corporate expansions abroad, selected by 59% and 57% of respondents respectively. This is especially the case for European countries, as sluggish growth in domestic markets has encouraged many European companies to seek stronger returns overseas. By contrast, the majority of respondents in Asia-Pacific (53%) are particularly driven by the need to find new sources of capital.

“It’s clear from our report that once a company’s executive team has identified its scope for an overseas expansion, much of the success will rest on comprehensive planning,” said Martin Koehring, the editor of the report. “This includes ‘softer’ brand-authenticity elements, such as maintaining the company culture and values, that are in some regards more pressing—or perhaps more challenging to master—than ‘harder’ aspects such as currency hedging, integrating operational systems and ensuring compliance with local regulations.”

Click here to read the full report.

  

Economic Development, Executive Analysis, Foreign Direct Investment, International, Site Selection Factors, Surveys, Research & Forecast Analysis

company culture, Economist Intelligence Unit, Employment, Expansion, international expansion, overseas expansion, Site Selection, Survey, TMF Group, Workforce Development

Sponsored Content
Featured Location

Location Spotlight: Topeka, Kansas

With three top universities in the area and connectivity via major interstates, Topeka, Kansas is rich with opportunity. Visit the GO Topeka Economic Partnership to learn more.

Featured Video

Webinars, Podcasts & Videos

Camp Hall – A Next Generation Commerce Park in South Carolina

Camp Hall is a first-of-its-kind, master-planned industrial work space located in Charleston, S.C. As a convergence of people, place and programming, Camp Hall delivers thoughtful infrastructure and logistical features that empower people — and business — to thrive.

Hear from leaders at the Destination Medical Center and Mayo Clinic Business Development in Rochester about why they feel Minnesota is filled with opportunities for founders and why investors should consider the power of startups in Minnesota.

Business Benefits In Minnesota, a Mayo Clinic Business Development and Destination Medical Center Perspective

Hear from leaders at the Destination Medical Center and Mayo Clinic Business Development in Rochester about why they feel Minnesota is filled with opportunities for founders and why investors should consider the power of startups in Minnesota.

Agricultural Heritage Meets Strong Manufacturing Base With a rich history in agriculture, the region is now made up of a strong manufacturing base, including everything from snack foods and Gatorade, to leading human resources software and revolutionary plug-less power systems for electric vehicles. Mount Rogers Regional Partnership's strategic East Coast location is the driving force.

Virginia’s i81-i77 Crossroads | Talent Retention & Manufacturing

Learn about manufacturing jobs and facilities in the Mount Rogers region of southwest Virginia. There is ample opportunity for education and jobs in a region rich with culture and heritage.

Share to...