Societal Effect, Organizational Effect and Globalization

This paper argues that traditional contrasts between countries as depicted by the societal effect approach, among others, may have been over-emphasized. Diverse evidence suggests that aspects of work organization, government policies and training arrangements have changed substantially over the last decade or so, and multinational companies have been effective in diffusing best practices across borders. One implication is that organizational and globalization effects may complement or even counteract the societal effect. This suggests that some cases, where the presumption has been that societal effects are dominant, may be open to a modified analysis.