Abstract:
Unlike large scale organizations many small and medium scale organizations are owned
and managed by the owner himself. Hence there is a probability that the socio- cultural
background (personal factors) of the owner affects his management and business
practices. Many westerners argue that due to the globalization, gaps that prevailed in
management and business practice between the east and the west have been significantly
reduced today, and some religious values in Buddhism and Hinduism are not positive for
the development of business performance. Although there were several studies which
focused only on the impact of economic and political aspects few studies have focused on
the impact of socio- cultural aspects on management and business practices. Studies
comparing business performance of different ethnic groups and the impact of socio –
cultural factors on their business performance are rare. Hence there is a significant
research gap on the area of this study.
The main objectives of this research were to examine whether there are
differences between Sri Lankan businessmen and western management and business
practices, whether Sri Lankan businessmen have developed their own business practices,
and how social cultural factors have influenced their management and business practices.
The analysis was based in the information collected from 150 businessmen in Textile and
Jewelry industries located in urban areas. The questionnaire survey and case study
methods were used to collect information. Multiple regression technique was used in data
analysis.
The findings of the research revealed that still there is a significant gap between
the management and business practices of Sri Lankan (the east) and west and that sociocultural
factors play an important role in determining management and business practices,
and among all these factors religion and feminine traits are the most dominant and having
a more positive effect rather than negative. There are many unique management and
business practices developed and implemented by Sri Lankan entrepreneurs themselves.
