The global identity of organizations

While some organizations present and understand themselves as global citizens, others more strongly understand themselves as national actors. In other words, organizations differ in their global identity that can be understood as the degree to which organizations abstract from concrete local (and national) particularities and, instead, orient themselves towards the world as their relevant social horizon. For example, with statements pointing to its ‘ambition of being a world-class player’ and repeatedly highlighting its commitment to ‘global principles’ (https://totalenergies.com/group/identity), TotalEnergies SE, a French international supplier of oil and gas, displays a high degree of global identity. In contrast, the National Oil Corporation of Kenya reveals a low degree of global identity with a focus on local particularities by claiming to be a ‘company that contributes to national development’ (https://nationaloil.co.ke/about-us/).

Relevance of global identity for organizations and society

With our research published in the Journal of Management Studies, we aim to understand which factors influence the degree to which organizations put their focus of attention towards the global and display a high global identity. Such understanding as a global actor may further be reflected in organizational life – for example, in the extent to which organizations from non-English-speaking countries make English their common language internally and the likelihood that they become part of global networks or engage in themes considered relevant for the whole world (e.g., sustainability, inclusiveness, or transparency) even if these themes are only loosely connected to the functional requirements of their business activities. Especially in times characterized by increasingly nationalistic policies and protectionism of key state governments, it is important to understand the mechanisms that influences whether organizations remain orientated toward the world or away from it.

Organizations between global demands and local particularities

Spurred by, for example, information and communication technology, the 20th century was characterized by a dramatic wave of globalization. However, globalization should not only be considered as increasingly economic transactions between national contexts but also as a process of cultural rationalization on the global level. Part of this process is the diffusion of global models (i.e., scientization, individual rights and capacities, and education) that support the constitution of the world as a global cultural realm and involves the universalistic notion of organizations as the proper means for pursuing collective purposes in this (imagined) global community. Since, however, globalization has not fully dissolved national differences, organizations have to deal and interact with both global and local institutional demands. These demands influence the self-representation and identity of organizations.

Drivers of global identity

Within our study we find that especially organizations from countries that are characterized by a high cultural rationalization increasingly understand themselves as global actors. Additionally a high number of international business activities cause a high degree of global identity. For example, the Philippine port operator ICTS (from a national context, only superficially permeated by cultural rationalization) is embedded within many other national contexts around the globe and, thus, is able to compare and reflect on the ways cultural rationalization has permeated the national institutional traditions of countries such as Japan, Mexico, or India. The company claims on its website that it ‘operate[s] in many countries across the world’ and that its ‘knowledge, skills and expertise also enables us to navigate and operate in different political and economic environments’ (https://www.ictsi.com/about-ictsi). Finally, our results show that state governed companies show lower degrees of global identity. Interestingly within this context family and non-family governed firms do not differ with respect to their global identity.