Cultural Challenges of BlueBird Bio Expansion into Germany

• Main Author: Igor Ban
• Format: Article
• Language: English
• Published: St. John's University, Tobin College of Business 2020-12-01
• Series: Journal of Global Awareness
• Subjects: biotechnology; cultural dimensions; federal drug administration; host country national; human resource management; individualism; multinational corporations; parent country national; t-cells treatment
• Online Access: https://doi.org/10.24073/jga/1/02/06

BlueBird Bio is a biotechnology multinational corporation (MNC), with headquarters in Cambridge, Massachusetts, specializing in gene therapy solutions for autoimmune diseases and cancer. The company was recently approved, in Germany, for their new drug Zynteglo for the treatment of betta thalassemia. This approval opened the door for further investment in the European market, starting with the contracting of Apceth Biopharma and purchases of new land and equipment to establish a permanent residence in the country. The opening of the new European headquarters will demonstrate new challenges for BlueBird Bio, as cultural and institutional differences between the host country and parent country are quite distinctive. Some of the main differences among countries are their cultural dimensions in dealing with risk, masculinity, and indulgence. Unlike the United States, Germany is risk avert, values input of all in decision-making, and has a general attitude following the best practice approach. The US focuses on the individual dimension of a culture where employees are valued for their independence. Furthermore, the differences between governmental policies in the two countries vary strongly. The German government has strict policies on employee protection and can affect the decision making of the organization. There is also the presence of labor unions and collective bargaining; two aspects of organizational structure US-based companies are trying to avoid. BlueBird Bio is an emerging MNC, and its success depends upon its ability to recognize the differences in cultures and institutions between the countries. The company has already been exposed to multiple countries in Europe and has strong programs in employee education supplemented with strong company benefits for its employees, which is providing excellent groundwork for establishing headquarters in Germany.