Multinational Enterprise Adaptation Dynamics, Mathematical Modelling, and Empirical Analysis

Abstract

Using an applied mathematics approach, this chapter embeds algorithmic measures into cultural theory in research on international business. The specialized area is concerned with adaptation of multinational enterprise (MNE) cross-borders in which how dynamic functions can strengthen the argument by producing robust models. The chapter contributes to the extant literature by offering a set of mechanisms that can be used by MNEs in adapting to a new or complex environment where culture can be diverse and policy choice is challenging. The mechanism by driving an adaptive approach, in particular, addresses a research issue that is persistent in cultural transition studies. The issue is distinguished from the standard economic model in that individual or rational actors have a fixed set of independent preferences (i.e., decision choice based on price, benefit, or rules of the game), uninfluenced by the behavior of others or the social settings within which they operate. The current study addresses the issue by demonstrating that a range of socio-cultural factors can influence behavior.