Azemina Masovic



The paper deals with the concepts of socio-cultural factors and performance of multinational companies. Multinational companies operate in different host countries around the world and have to deal with wide variety of economic, political, legal, socio-cultural and technological factors. One of the significant components of the business environment is a socio-cultural environment. A socio-cultural environment is a combination of social and cultural factors. Due to the strong interaction that exists between them, it is very difficult to assess their separate influence on the business operation of multinational companies. The socio-cultural factors are one of the main environmental factors that significantly affect the economic activity of multinational companies and their performance as well. Moreover, socio-cultural factors are beyond the control of foreign subsidiaries’ managers. The purpose of this paper is to describe the influence of certain socio-cultural factors on the performance of foreign subsidiaries. On the basis of the obtained results, the contribution of the paper is reflected in the determination of key socio-cultural factors that multinational companies should take into consideration in order to evaluate the actual performance of foreign subsidiaries and their managers.


environmental factors; foreign subsidiaries, multinational companies; performance evaluation; socio-cultural factors;


Ajami, A.R., Goddard, J.G. (2014) International Business: A Course on the Essentials, M. E. Sharpe, Inc., New York, p. 277;

Ajami, A.R., Cool, K., Goddard, J.G., Khambata, D. (2006) International Business: Theory and Practice, 2nd edn., M. E. Sharpe,

Inc., New York, p. 202;

Aswathappa, K. (2010) International Business, Tata McGraw Hill Education Private Limited, New Delhi, p. 187;

Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G., Rose, E.L. (2015) International Business, Pearson Australia,

Melbourne, p. 108;

Cherunilam, F. (2011) International Business: Text and Cases, Prentice-Hall of India Pvt. Ltd, New Delhi, p. 89;

Dlabay, L.R., Scott, J.C. (2011) International Business, South-Western Cengage Learning, Mason, p.17;

Drury, C. (2012) Management and Cost Accounting, 8th edn, Cengage Learning, Andover, p. 487;

Earley, P.C. and Mosakowski, E. (2004) Cultural intelligence, Harvard Business Review, 82 (10), pp. 139-146;

Fatehi, K. (2008) Managing Internationally: Succeeding in a Cultural Diverse World, Sage Publications, Inc., London, p. 465;

Frynas, J.G. and Mellahi, K. (2015) Global Strategic Management, Oxford University Press, Oxford, pp. 54-55;

Gillespie, K., Hennessey, H.D. (2016) Global Marketing, Routledge, New York, p. 104;

House, R.J., Javidan, M., Dorfman, P. (2001) Project Globe: An Introduction, Applied Psychology, 50 (4), pp. 494;

Hargie, O. (2011) Skilled Interpersonal Interaction: Research, Theory, and Practice, Routledge, London, p. 45;

Hill, J. (2009) International Business, SAGE Publications, London, p. 519;

Morrison, J. (2008) International Business: Challenges in a Changing World, Palgrave Macmillan, New York, p. 124;

Parboteeah, K.P., Cullen, J.B. (2017) International Business: Perspectives from developed and emerging markets, Routledge,

New York, p. 234;

Shenkar, O., Luo, Y., Chi, T. (2015) International Business, Routledge, New York, p. 343;

Trehan, M., Trehan, R. (2009), Government and Business, V. K. Enterprises, New Delhi, p. 53;

Vasudeva, P.K. (2007) International Marketing, Excel Books, 3rd edn, New Delhi, p. 259;

Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.