Third, it is argued that researchers and practitioners need to develop a better
understanding of the complex interrelationships between cultural diversity,
cultural change, and environmental variables such as social, economic, and polit-
ical factors that may moderate and/or mediate the eVects of culture (Aycan 2005 ;
Leung et al. 2005 ). HR managers in managing cultural diversity face particular
challenges. Related to this, there is a dire need to develop understanding of eVective
HR strategies for risk management in the twenty-Wrst century.
Fourth, numerous researchers have recommended improvements in research
methodologies. Multi-method approaches to research are becoming more preva-
lent. Further, there are developments in the operationalization and use of con-
structs with sound psychometric properties, and appropriateness for diVerent
cultural contexts (Cheng and Cooper 2003 ).
Finally, to develop our understanding of cultural diversity and transnational
Wrms, there needs to be greater integration between theory, research, and practice.
At present, there is divergence between academics and practitioners with regard to
foci and approaches to exploring the implications of cultural diversity. Academics
have tended to focus more on individual attitudes and behaviors, while practi-
tioners have sought to understand the links with strategy andWrm performance. In
some areas, a research–practice gap exists, with research lagging behind the current
needs of HR practitioners and managers in transnationalWrms. The gap may not
be easy toWll, as there are complex issues to deWne, measure, and address. There is
also a practice–research gap, with management practice in some aspects lagging
behind research (Wasti and Robert 2004 ).
25.8 Summary and Conclusions
.........................................................................................................................................................................................
Overall, the emphasis and direction for the management of cultural diversity places
emphasis on the development of organizational cultures that are not only tolerant
of diversity but also encourageXexibility and inclusion. There are diverse views
about what constitutes eVective HRM in transnationalWrms; and this diversity
should be encouraged, not ignored. HR managers in transnationalWrms face an
important challenge in managing the complexities of balancing organizationally
consistent policies with responsiveness to local conditions. To do so requires an
understanding of both global and local conditions, and the complex relationships
between them.
transnational firms and cultural diversity 525