A Global View on Intercultural Management

3 Corporate Culture and Internationalization

3.0 Statement of the problem

Nepotism in Vietnam

A German company had established very clear global purchasing guidelines: no more than 30 percent of any particular item could be supplied by one vendor, and quotes had to be obtained from at least three different suppliers; and contracts were to be awarded purely on the basis of price, delivery terms, reliability and quality.

 

Meier, the German regional manager for South-East Asia, was disturbed to note that, despite several reminders, the subsidiary in Vietnam did not appear to be following the guidelines. In fact, the range of suppliers they used seemed to be very limited, and most of them were Vietnamese.

 

The subsidiary’s Vietnamese manager ...