ABSTRACT
Theodore Levitt argues persuasively that globalization was a powerful force driving the world towards a 'converging commonality'. In his view, mankind was in a process of creating a world where differences would disappear. Employees' expectations and their interpretation of their organizational environment correspondingly are different. Thus, many of the difficulties associated with cross-border business operations may be traced to differences in culture. International companies must therefore develop information processing capabilities that will enable them to acquire the knowledge they need to overcome their psychic distance as well as liabilities of foreignness to be able to operate effectively in foreign markets. The contributions lean on the growing body of literature in the field to forward the general understanding that global mindsets are both collective and person specific. The mindset is usually influenced by the type of organizational structure the company has chosen, its administrative heritage, top management composition, and the degree of international experience of its key employees.
