Second, Hofstede’s (1980a) conclusion regarding the importance of cultural values
when implementing United States-based management initiatives in foreign affiliates still
applies: it may not be suitable in countries high in power distance. Our findings on cultural
value differences not only support Hofstede but also echo his conclusions by suggesting
that employees do resist management initiatives when these clash with their cultural values
(Kirkman and Shapiro, 2001). Attention to, and respect for, differences in cultural values
remains a high priority for international managers (Adler, 1997). Our results found SACO
managers were least participative in their HRM style compared to Japanese and Japanese
subsidiaries/joint ventures. Clearly, the research results indicate that in overseas
subsidiaries and joint ventures firms, the culture of the corporate headquarters often exerts
a stronger influence over the subsidiary than does the local context. Similarly, the presence
of foreign partners in international joint ventures should influence the functioning of that
firm. The expatriation of employees by the parent company to the joint venture, combined
with local partner concerns in harmonizing their HRM practices, may lead to the
development of a real ‘federative’ or ‘unifying’ culture, sometimes quite distant from that
of the parent firm back home. This line of reasoning, based on a theory of cultural
congruence or ‘fit’ between the international joint ventures partners or parents, is
questioned by Peretti et al.(1990). Our findings provide texture to this ongoing debate.