The effects of cross-cultural differences on HRM functions: the case of multinational corporations in Kuwaiti community

Abstract

Purpose With increasing globalization, the importance of referring to cross-cultural contexts is also amplifying in the contemporary era. The models, framework and dimensions devoted to such situations are increasingly mannered in practice today. With due consideration derivation to the input manner, an organization’s performance is also taken aside for its increasing marginality. The following study aims to examine the American multinational oil and gas company operating in Kuwait's oil sector to evaluate the respect. The branch has a total of 600 employees, which were all included in the data collection phase. Hence, the results derived with cumulative aspects of leadership, power distance and organizational value as their impact on human resource management (HRM) functions. Design/methodology/approach Through the quantitative approach of a self-adapted questionnaire, 101 responses were collected, and through SPSS Version 22, results were discreet. Findings The results reverted with the manual that the cultural dimension of Hofstede, i.e. power distance, did not have an apparent impact on the HRM functions. Whilst leadership and organizational values had their dissolved set of effects on HRM functions of the chosen firm. However, HRM functions were apparent enough to have its impact upon leadership, power distance (PD) and organizational value accumulated. Opening to the opportunities where in the future studies, a greater extent of population as well as variables could be considered for a better impact. Research limitations/implications The Major limitation of the study is related to the number of respondents as the research was conducted solely for the chosen branch of this private oil and gas firm in Kuwait, which makes its results limited and narrowed in the analysis phase. Moreover, the methodology selection did not do justice to the resulting research’s agenda, which was restricted due to the pandemic’s situation. Where with a better and respective methodology approach, better results could be attached. Originality/value The rationale of research refers to the gap concerning theoretical aspects within a field of business. As for the resulting study, in a cross-cultural management setting, the relevancy and implication of HRM functions concerning their transparency have not been explored. Globally, in different industries, the, study of similar nature has been conducted but has not examined, the fossil fuel industry particularly, which would be the focal point of this research.