Cultural Clash and Cross-Border Business Practices : The Impact on Subsidiary's Performance

To date, business enterprises both small and large, are challenged to internationalize and operate on a global scale. This phenomenon is manifested by a growing number of Multinational Enterprises and emergence of global order and culture. Nevertheless, globalization has not led to fundamental convergence and therefore, national institutions and culture still play pivotal role in international business. Reckless negligence of culture results in devastating consequences for many Multinational Enterprises. This research demonstrates the impact of cultural clash in business within cross-border context on the example of a real-time project, which involved two culturally remote organizations.