Which management approach emphasizes the norms and practices of the host country?

The management approach that emphasizes the norms and practices of the host country is the polycentric approach. In this framework, organizations recognize the importance of local customs, business practices, and operational norms, adapting their strategies to align closely with the cultural and legal contexts of the countries where they operate. By doing so, companies can enhance their local legitimacy and effectiveness. This approach usually entails hiring local managers who are familiar with the region's nuances, thereby fostering a business environment that resonates well with local employees and customers.

The polycentric approach contrasts with other methodologies where there may be a tendency to view operations through a home-country lens or apply a universal model that does not take local conditions into account. For example, the ethnocentric approach prioritizes the home country's practices, while the geocentric approach seeks to integrate a global viewpoint but does not focus solely on host country practices as the polycentric approach does. A decentralized management approach, while it may allow for some local decision-making, does not specifically emphasize adherence to host country norms and practices. Therefore, choosing the polycentric approach reflects an understanding of the critical importance of local context in global business operations.