Company citizenship creation in the developing countries in the era of globalization: Evidence from the Toyota Motor Company in India

Abstract

Purpose

The purpose of this paper is to examine whether a multinational company can transmit its corporate management system and operations management system from its domestic operation to its subsidiary located in a country with very different national culture.

Design/methodology/approach

This research proposes that it is possible for a multinational company to override differences in national culture and create a “company citizenship” across the globe, with similar corporate management and operations management system. Another purpose of this research is to show that it is not true that globalization would create just one single culture, originated in the USA and Western Europe, which is called “Jet‐Set Culture” by Freedman. Japanese multinational companies are spreading their own unique organizational values of their management system across the world in their subsidiaries. Thus, different multinational companies may create their own unique organizational culture that produces their own company citizenship, which can be spread globally. To prove these hypotheses, this paper has reported the result of a survey conducted in the domestic operations of the Toyota Motor Company (Toyota) and in its operations in India.

Findings

Core values of Toyota's management systems are derived from the values that are identified in the mission statement of Toyota. According to the results of the survey based on opinions of Toyota's employees, there are broad similarities in the values composing its management systems, irrespective of national locations. Thus, Toyota has managed to form the “company citizenship” in its headquarters in the host country, Japan, and successfully transmitted it in its subsidiary located in the host country, India, with an alien national culture.

Research limitations/implications

The paper shows that company citizenships of different companies, based on their unique organizational cultures, but not on their national cultures, are emerging as a new organizational form in this global era.

Practical implications

Different multinational companies may create their own unique organizational culture that produces their own company citizenship and which can be spread globally.

Originality/value

This paper proposes that there are some specific espoused values in every important multinational company, which form its organizational cultures and create values, which in turn may form commitment of its employees. These commitments are the indicator of successful performance of a company because creation of commitment leads to success of the company; this interrelationship between culture and commitment can be called company citizenship and can be transmitted from one part of the globe to another by a multinational company through the transmission of its corporate management and operations management system.

Citation

Miroshnik, V. (2012), "Company citizenship creation in the developing countries in the era of globalization: Evidence from the Toyota Motor Company in India", Journal of Management Development, Vol. 31 No. 7, pp. 672-690. https://doi.org/10.1108/02621711211243872