Validation of the Mediation Effect Between Cross-Cultural Management and Employee Identification

PURPOSE: Corporate culture faces a variety of cross-cultural challenges across the globe. Every culture retains and maintains different norms and customs, which are totally unique and different from other cultures. Consequently, employees from different cultures often experience various cross-cultural issues and challenges while working in transnational organizations where employees are needed to understand how people from diverse cultures must work together. PATIENTS AND METHODS: The study used mixed research methodology for meeting the paper goals. Both positivism and phenomenology look relevant in a sense that they individually and collectively satisfy the paper objectives. To test mediation and moderation, the authors have used various hypotheses through collecting the sample size of 600 out of 6000 employees working for an Asian group encompassing more than 200 companies. Moderation and mediation strategic management research methods were used with the American Industrial Group in Asia as the setup of the study. Hypotheses were tested on effects of new corporate culture-based learning on the perception of social norms, learning attitude, self-efficacy, and social values. Additional hypotheses were also tested on the effects of perception of social norms, learning attitude, self-efficacy, social values, and psychological control on change intention. RESULTS: Perceived social norms directly affect the willingness to change as they have been used as mediating variables. Therefore, social norms affect corporate norms. CONCLUSION: The paper shows how mediation and moderation are understood and applied through understanding the relationship between local culture and corporate culture. The findings reveal how local culture affects corporate culture. However, there are certain limitations of the study; this includes that the study scope has mostly focused on an Asian context, therefore, it may not be applicable to other continents.