MANAGING ETHNOCENTRISM IN CROSS-CULTURAL BUSINESS ENVIRONMENTS: A COMPARATIVE ANALYSIS OF BUSINESS APPROACHES
AUTHOR – REVATHY.V* & DR. S. MARUTHAVIJAYAN**
* STUDENT AT SCHOOL OF EXCELLENCE IN LAW, THE TAMIL NADU DR.AMBEDKAR LAW UNIVERSITY TAMIL NADU, INDIA. E-MAIL: REVATHYVP12@GMAIL.COM
** ASSISTANT PROFESSOR, SCHOOL OF EXCELLENCE IN LAW, THE TAMILNADU DR. AMBEDKAR LAW UNIVERSITY, CHENNAI, TAMILNADU, INDIA, E-MAIL – MARUDHU.LAWYER@GMAIL.COM
BEST CITATION – REVATHY.V & DR. S. MARUTHAVIJAYAN, MANAGING ETHNOCENTRISM IN CROSS-CULTURAL BUSINESS ENVIRONMENTS: A COMPARATIVE ANALYSIS OF BUSINESS APPROACHES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (4) OF 2025, PG. 301-311, APIS – 3920 – 0001 & ISSN – 2583-2344.
I Abstract
This paper examines the concept of ethnocentrism and its impact on multinational organizations operating in cross-cultural business environments. Ethnocentrism—the tendency to view one’s own cultural group as superior and judge other cultures by the standards of one’s own—presents significant challenges for global businesses. The research explores how ethnocentrism manifests in organizational policies, leadership approaches, and staffing philosophies, and analyzes its consequences on business performance, team dynamics, and international expansion efforts. Through theoretical frameworks and practical case studies from global corporations including Walmart, IKEA, McDonald’s, and Toyota, the paper demonstrates both the pitfalls of ethnocentric approaches and successful strategies for developing cultural intelligence. The findings suggest that organizations can gain competitive advantages by moving beyond ethnocentrism toward cultural synergy through structured interventions, cultural intelligence development, and adaptive management practices. This research contributes to the growing body of literature on effective cross-cultural management by providing practical insights for multinational companies seeking to leverage cultural diversity as a strategic asset.
Keywords: ethnocentrism, cross-cultural management, multinational corporations, cultural intelligence, global business strategy