Managing cultural heterogeneity : A case study of global leadership competencies in Swedish subsidiaries in Thailand

Abstract: Background: Subsidiaries to multinational enterprises encounter pressure to fit the national cultural context as well as to keep consistent with the global corporation. For a Swedish multinational enterprise to be able to seize business opportunities in Thailand, an important aspect to take into consideration is the difference in national culture. It is the responsibility of the leader in the Swedish subsidiary in Thailand to manage the multinational enterprise corporate culture while also taking into account the Thai national culture. Global leadership competencies can enable this, although there is a lack of a unified framework of global leadership competencies. Aim:  The aim of this study is to gain a deeper understanding as to which global leadership competencies leaders in subsidiaries to Swedish multinational enterprises in Thailand should possess in order to manage the Swedish corporate culture while taking Thai national culture into account.   Methodology: The study has applied a qualitative research strategy and an abductive research approach. The data has been obtained from eight semi-structured interviews with four Swedish companies present in Thailand. Conclusion: Through a deeper understanding of global leadership competencies, this study concludes and provides evidence of six global leadership competencies that are of extra importance for leaders in Swedish subsidiaries in Thailand when managing the Swedish corporate culture and taking the Thai national culture into account.