IMPACT OF CULTURE ON STRIKES IN KOREAN ENTERPRISES IN VIETNAM

Abstract

In line with the conference theme of Corporate Social Responsibility (CSR), the paper examines impact of culture on strikes in Korean1 companies in Vietnam. We start by discovering how culture can affect conflicts in industrial relations (IR). Conflicts can occur in three levels: material level, symbolic level and relational level (Michelle Labaron&VenashriPillay, 2006). Culture contextualizes and shapes all the above dimensions, then make a strong impact on conflict resolution. Globalization removes national borders in IR management and makes managers to face culture in every level (ILO, 2006). In the paper we applied Hofstede’s Cultural Dimensions model to study the effect of culture on strikes in Korean firms in Vietnam by conducting surveys in 133 Korean FDI firms in six provinces throughout Vietnam by sending quantitative questionnaires. Basing on those findings, we find that strikes occur because of differences in working expectations, conflict recognition, communications, leadership and conflict resolution styles. We draw conclusion that although the official reason for strikes in those companies is economic matter, such as salary, bonus or working overtime, the real and hidden reasons are on symbolic and relational levels, which are under the influence of culture. Therefore, besides the legal and economic solutions, such as taking better care of material working conditions for employees, Korean managers have to improve communication system in companies and increase their culture fluency.