CORPORATE CULTURE OF INTERNATIONAL COMPANIES IN THE CONTEXT OF GLOBALIZATION

Abstract

The article is devoted to a comprehensive analysis of the corporate culture of international companies in the context of increasing globalization, digital transformation, and multicultural interaction. Corporate culture is not merely a system of norms and beliefs, but a strategic resource that shapes the «DNA of the organization» and determines its competitiveness in international markets. The article substantiates that the significance of corporate culture is rapidly increasing due to the complication of global ties, the internationalization of business, growing uncertainty, and the need for effective diversity management. Special attention is paid to the challenges of cultural integration during mergers and acquisitions (M&A), as up to 70% of such projects fail precisely due to the neglect of cultural differences. It is emphasized that in international corporations, corporate culture must combine universal values with local adaptation, and effective diversity management ensures the strengthening of internal communication and interaction between subdivisions in different countries. The study identifies the main functions of corporate culture – regulatory, integrative, adaptive, motivational, and protective and demonstrates their impact on the long-term effectiveness of companies. Significant focus is given to the analysis of leading theoretical models, particularly Schein's model with its three-level structure of culture, and the Denison model, which links four key cultural traits to business outcomes. It is highlighted that a strong corporate culture correlates with higher Return on Investment (ROI), innovativeness, and organizational flexibility. To analyze the influence of national cultures, the article compares the approaches of G. Hofstede and F. Trompenaars, which helps to explain differences in leadership styles, communication, and employee motivation across various countries. Alongside the external cultural dimension, an internal tool is revealed –the Competing Values Framework (CVF) which identifies four types of corporate cultures and allows them to be aligned with the organization's strategic goals. In conclusion, the article proves that the corporate culture of international companies should be formed based on the principles of flexibility, multiculturalism, and inclusivity, and must be aligned with the global development strategy. Effective corporate culture serves as a decisive factor for the innovativeness, stability, and long-term effectiveness of multinational corporations.