In times of rapid growth,
both in terms of economic development and globalization,
an increasing number of firms extend their businesses abroad. A subsequent challenge
of this development is the managerial implications of cross-cultural management.
This study employs a qualitative approach in a single case study of Swedish company
and its subsidiary in China. After reviewing the previous studies, the authors
summarize the differences of management style, staff behaviors and communication
system in different culture context and find the barriers of cross cultural
communication in multinational firms. The findings of this study indicate that the
barriers of communication come from the national culture’s influence on the work
place and behaviors of people with different identity. Moreover, culture also
influences people’s way of thinking and behaving and result in different
understandings toward vision and purposes of firms.