Cross-cultural discontinuities within international knowledge work: Firmlevel evidence from a German software developer in Thailand

Abstract

Offshoring knowledge and innovation activities enables many small and mediumenterprises (SMEs) to successfully compete in a global economy. This offshoring is largely driven by skills shortages and rising costs at home. However, while economic, political, and regulatory environments have traditionally been the main considerations when offshoring, understanding culture and the cross-cultural discontinuities associated with offshoring have received less attention. This paper uses a case study approach to assess the impact of culture on a German software developer offshoring its operations to Thailand. It begins with literature related to the growth of SMEs who offshore their knowledge-based activities. The methodology then uses interviews and focus groups to identify cross-cultural discontinuities at a case firm and links them to Hofstede's cultural dimensions. Results show five key cross-cultural discontinuities affecting work performance and discusses the implications for small businesses that offshore their knowledge related activities.