The Role of National versus Organizational Culture in Multinational Organizations : A Comparative Case Study of Handelsbanken Sweden and Handelsbanken UK

Abstract: One of globalization's immediate consequences is the increased popularity among firms to internationalize. When internationalizing, firms ought to bear in mind both the opportunities and challenges that come with it. One of the inevitable challenges related to internationalization is the translation of a foreign organizational culture in a new context. Handelsbanken's culture is strong throughout the organization, which is why it was found a suitable subject for a comprehensive case study. Investigating cultural differences between Sweden and the UK is interesting as these two countries are according to previous research by Hofstede et al. (2010) supposed to be quite similar to each other in terms of cultural values. Hence, the aim of this study was to identify and highlight the similarities and differences between Sweden and the UK, as well as look at national culture’s influence on organizational culture. The findings of the study show that in the midst of the translation process of an organizational culture, the cross-cultural differences in national culture influence and shape the organizational culture. Cultural awareness is the key to avoiding cultural clash and facilitating effective communication between colleagues from different cultural backgrounds.