ABSTRACT
In the past few decades organizations have been confronted with increasing economic competition and international cooperation. In fact, there is more international competition then ever before. For instance, the growing single European market pressures companies in and outside the European Union countries to search for partners. Mergers and acquisitions are common practice in almost every industry. An example is the cooperation of Volvo Car Netherlands, Volvo Sweden, and the Japanese company Mitsubishi in a new automobile company NedCar in the Netherlands. The increasing international competition and cooperation, and the emerging of free-trade zones, like NAFTA (North American Free Trade Area) and the European market, emphasizes the importance of understanding cultural aspects in a particular organizational context. Understanding of the influence of organizational culture, in interaction with national culture (i.e. dominant values in a society) on organizational processes, is considered crucial for success or failure.
