Geo-economics Theory

International and subcultures issues had remarkable effect on the international organizations. Comparison of the popular theories like institutional, agency and resource-based theories test the chinese culture and geographic differences (Tsui, 2006). The geo-economics theory integrates the effect of economics and management on the success of the organization which competes in the international market and its geographical differences.

Study by Schlevogt (2001) tackled the differences between 124 organizations in the North of China and South of China found that “government support, organizational structure and management expertise” were the most important reasons for the effectiveness in North of China (Schlevogt, 2001).

Geo-economics differences are obvious in the Gulf Cooperation Council (GCC) area where the countries speak the same language, have same religion and similar heritage, but business and economic differences are obvious to the local and the international business community.

References:

Schlevogt, K.-A. (2001). Institutional and organizational factors affecting effectiveness: Geo-economics comparison between. Asia Pacific Journal of Management, 18(4), 519.