Leading Between Worlds: Harnessing National and Corporate Culture for Breakthrough Leadership

When businesses cross borders, they cross cultures too. How can leaders successfully navigate growth into new markets by turning cultural differences into opportunities?

Global work now happens at the intersection of national culture and corporate culture. This means that organizations must find a way to honour the deeply-held values shaped by society while driving the lived behaviours and routines required within the company. It’s where decisions slow down – or become rushed; where trust is built – or breaks down; where global mergers and expansions succeed – or stall.

Emerging leaders can’t afford to “pick a side” but must rather learn to see through both lenses at once and find the common ground on which to build cross-border legacies. Christopher Thölix, Signium Managing Partner in Stockholm and Helsinki, weighs in:

“The ability to move fluidly between these two cultural spheres is a strategic skill, more than a soft one. Misunderstanding cultural dynamics can slow down decisions, alienate teams, or unravel even the most promising mergers. On the other hand, cultural fluency can unlock unexpected performance across borders.”

What’s the difference between national and corporate culture?

National culture refers to the shared values, norms, beliefs, and behaviors that shape how people in a particular country or region interact. This includes everything from communication styles and power dynamics to perceptions of time, authority, and collaboration, and is influenced even further by individual preferences. One of the most widely referenced frameworks in this space is Hofstede’s cultural dimensions theory, which outlines how countries vary along axes. Some of these include:

●     Individualism vs. collectivism

Do people see themselves as independent individuals (common in the US, UK) or as part of a group with shared responsibilities (common in China, Japan)?

●     Power distance

How comfortable are people with hierarchical structures and unequal power? High power distance cultures (e.g., India, Mexico) tend to defer to authority, while low power distance cultures (e.g., Sweden, Denmark) prefer equality and flat structures.

●     Uncertainty avoidance

How much do people seek stability, rules, and predictability? In cultures with high uncertainty avoidance (e.g., France, South Korea), people may prefer transparent processes and risk reduction, while others (such as Singapore or Denmark) may find it easier to embrace ambiguity and flexibility.

●     Masculinity vs. femininity

This axis explores whether a culture values competitiveness and achievement (“masculine,” like Japan), or cooperation, quality of life, and care for others (“feminine,” like Sweden).

●     Long-term vs. short-term orientation

Do people focus on future rewards, perseverance, and planning (long-term, like China), or tradition, quick results, and immediate outcomes (short-term, like the US)?

Corporate culture, on the other hand, represents the internal DNA of an organization. Here, leaders define the behaviors, routines, values, and systems that govern “how things are done at work.” It’s reflected in leadership styles, decision-making processes, team dynamics, and business priorities. Corporate culture may be formally stated in values or mission statements, but it’s truly revealed in everyday interactions, and often from the top down.

“National culture is shaped by history, language, and societal norms,” says Thölix. “Corporate culture is shaped by founders, leadership teams, and industry demands. When organizations operate across borders, these two cultures often collide, and leaders must be equipped to navigate that friction.”

Understanding how national and corporate cultures interact in business

The relationship between national and corporate culture isn’t a simple either-or, but rather a dynamic, evolving interaction. At times, the two align effortlessly. At others, they clash, creating challenges in communication, collaboration, and leadership execution.

For example, in cultures that value hierarchy and deference to authority (such as Japan or many Middle Eastern countries), employees may hesitate to speak candidly or challenge ideas. In contrast, organizations that champion open-door policies and flatter hierarchies may find such silence troubling, or even mistake it for disengagement.

Decision-making is another common flashpoint. In cultures with high uncertainty avoidance, such as France or South Korea, employees often expect structure, documentation, and thorough risk analysis before moving forward. If an agile, fast-moving company focused on rapid iteration expands into one of these markets, it may need to shift toward a more deliberate and measured approach to align with local expectations.

Thölix urges leaders to practice open-mindedness and respect: “These differences are not right or wrong. But without understanding the underlying cultural logic, leaders risk misinterpreting behavior, undervaluing local perspectives, or enforcing practices that backfire.”

Why should this matter for next-generation leaders?

Today’s emerging leaders aren’t only tasked with managing teams and operations; they must also manage complexity on every front. Leading across cultures requires more than technical skills or strategic acumen. It now demands that they develop emotional and cultural intelligence, too. Applying these skills together allows leaders to read between the lines, adapt behavior, and build trust in diverse contexts – and to develop teams that can achieve the same.

According to a recent McKinsey study, companies with higher diversity at the executive level are significantly more likely to outperform peers on profitability. However, diversity without cultural fluency can lead to fragmentation or, worse still, relational damage. Leaders must know how to harness different perspectives without attempting to erase or override them.

“Culturally attuned leadership also drives inclusion,” says Thölix.

“When employees feel that their local customs, communication styles, and identities are understood and respected, they are more likely to invest themselves in their work. They engage fully, contribute meaningfully, and stay longer. And why does this matter to businesses? Because, ultimately, it translates to increased bottom-line profit, both short-term and long-term.”

Learning to “play nice”: Five practical strategies for navigating cultural crossroads

For leaders stepping into cross-cultural roles, cultural awareness must go beyond intuition. It must be cultivated, measured, and carried over to operations. Here are five key strategies that can help:

1. Measure to understand

Cultural blind spots can be challenging to identify from the inside. That’s why structured assessments are so valuable: they help leaders quantify where culture supports strategy and where it may create friction.

One example is Culture Due Diligence (CDD), Signium’s internally developed analysis that maps the gap between current and desired culture. Using the 360 Star Model, it combines data from surveys, interviews, and cultural observations, and measures 15 key dimensions such as performance, engagement, process, curiosity, and market awareness. The final analysis presents results in clear, visual outputs that highlight where alignment is strongest and where leaders may need to act, with suggestions on where and how to begin.

“Going into a new market without taking the time to understand culture is organizational self-sabotage,” says Thölix. “If the way people work and make decisions is vastly different from your company’s operating culture, you risk faltering from day one. Measuring these differences up front allows leaders to spot incompatibilities, or to identify a middle ground on which to build.”

2. Prioritize exposure and education

Cultural understanding is difficult to master in a single workshop. It grows through consistent exposure, whether that’s by taking on international assignments, encouraging cross-border mentorship, or simply promoting active listening.

Where traditional leadership often positioned the boss’s view as the final word, today’s leaders are better served by seeking out perspectives that stretch and challenge their own. This is especially true in today’s continuously changing environment, where leaders must respond to demographic shifts, evolving employee values, and societal pressures for inclusion.

3. Adapt, don’t abandon

Respecting national cultural nuances doesn’t have to mean giving up or diluting corporate values. The goal is not to make everyone the same, but to find diplomatic ways to integrate differences. Leaders must learn to adapt their style, whether it’s communication, feedback, or decision-making, while still reinforcing the organization’s core principles and objectives.

4. Encourage dialogue

Creating space for cultural conversation is critical. This could take the form of team retrospectives, intercultural briefings, or anonymous feedback loops. Thölix adds, “When teams feel safe to express discomfort or confusion around cultural issues, small issues or misunderstandings don’t have a chance to grow. Once those concerns are cleared up, people find it easier to work together, without the fear of cultural conflict hanging over them.”

5. Leverage diversity as an innovation engine

When harnessed well, cultural diversity sparks new ideas. Leaders who invite different perspectives into problem-solving or product development open the door to more creativity. This is why multicultural teams, when guided effectively by leaders who value diversity, are often better at spotting blind spots, finding new opportunities, and designing solutions that include more people. Over time, this makes international organizations more resilient, more competitive, and better equipped for growth.

Haier + GE Appliances: A model for cultural integration

A powerful example of cross-cultural leadership is the acquisition of GE Appliances (GEA) by Chinese multinational Haier in 2016. Haier, known for its highly decentralized and entrepreneurial management model, faced the challenge of translating its unique culture into a U.S.-based company with a very different operating ethos.

At the heart of Haier’s approach is RenDanHeYi, a philosophy that connects every employee’s role (“Ren”) directly to user needs (“Dan”) while holding teams accountable for outcomes (“Heyi”). This model emphasizes autonomy and entrepreneurship through small, self-managed micro-enterprises. At first glance, it appeared to stand in sharp contrast to GEA’s more traditional, process-driven culture.

Yet rather than becoming a barrier, the micro-enterprise approach turned out to be a bridge. Haier worked with GEA’s leadership to adapt the philosophy in ways that made sense locally. This empowered American teams to run as independent, accountable units while still respecting expectations around structure, communication, and compliance. Far from clashing with U.S. business norms, Haier’s RenDanHeYi resonated with the GEA’s values of ownership and innovation.

The result was a cultural hybrid that improved agility, morale, and responsiveness without eroding employee identity or autonomy. Since the acquisition, GEA has doubled revenues and strengthened its market position – an outcome many attribute to the way Haier’s philosophies were adapted, rather than imposed.

As Kevin Nolan, President and CEO of GEA, explained: “We didn’t try to make ourselves a Chinese company. We took the core ideas and made them work for our culture.”

“Haier’s integration of GEA is now studied as a benchmark for culturally intelligent mergers,” says Thölix. “It’s a testament to what’s possible when leaders approach culture as an opportunity, not an obstacle.”

From conflict to connection: Creating cohesion across cultures

In the words of Mahatma Gandhi, “No culture can live, if it attempts to be exclusive.”

In business, as in society, cultures thrive together when they listen openly and collaborate toward the same goal – even if their methods differ. For leaders, this means seeing cultural differences as sources of strength, rather than just conflict. National and corporate cultures may sometimes clash, but when approached with curiosity and care, they create the building blocks for successful cross-border expansion:

• Tension that sparks innovation
• Resilience built on the strength of diversity
• Trust that feeds sustainable global collaboration
• Stakeholder engagement that leads to profitability

For the next generation of leaders, cultural fluency will be more than a set of people skills. The ability to manage national and corporate cultures is a responsibility, a calling to weave together the voices, values, and visions of many. The leaders who will leave a mark are not those who insist on their own way, but those who create the space and inspiration for others to bring their best forward

Thölix concludes, saying:

“Instead of attempting to erase differences, visionary leaders embrace them with empathy and enthusiasm, knowing that within the challenge lies incredible opportunity. When this is done well, it shapes stronger, more open companies that can thrive wherever the future takes them.”