The importance of general manager's cultural awareness in Norwegian-owne companies in Lithuania

Abstract

This Master’s thesis is done in order to analyse the importance of general managers’ cultural awareness in Norwegian-owned companies in Lithuania. The thesis covers the following main parts: The introduction of this thesis presents the nature and relevance of the chosen topic, the aim and desired outcomes from the research. The relevance of the research is also supported by the overview of Foreign Direct Investment (FDI) and Norwegian-owned companies in Lithuania. The tendencies of FDI flows to Lithuania, in particular Norwegian FDI, are discussed by the analysis of various sources such as scientific articles, reports and statistics. Theoretical framework covers three parts, which are summarized by building the model of the research. Firstly, leader attributes and behaviours are discussed by comparison between expat and national general manager of a foreign subsidiary. Secondly, organizational practice is described according to Hofstede’s cultural dimensions. In this part, comparison between Norwegian and Lithuanian organizational practices is presented, as well. Finally, there is an overview of the agency theory which can be applied in the analysis of the relationship between headquarters and a general manager in a foreign subsidiary. This theory refers to unobservable behavior by the agent, and explains particular problems that occur consequently. Next, research methodology is analyzed, presenting the data gathering tools, possible interviewees and guiding questions. The research findings are discussed in three parts according to the model of the research. The findings of the research are analyzed with regard to the selected theory in the discussion section. Final conclusions, managerial implications, further research questions, and limitations are presented at the end of this Master’s thesis.