Definition: A regiocentric approach is an international recruitment method in which an organization selects managers from a different country within the same geographic area whose environment and culture closely match the host country.
Businesses with a presence in neighboring countries can use this approach to adopt an integrated work environment for the whole region. It helps them develop a unified strategy and saves costs.
FMCG companies utilize this strategy as regions tend to share the same food patterns as well as language and culture. Coca-Cola and Pepsi have used this strategy successfully to grow their business and brand.
Pros of the Regiocentric Approach
- Being from a similar culture, managers may face fewer difficulties, and can adapt while bringing expertise from a different region.
- They can easily move between the host country and their home country and manage the business.
- It requires less cost than hiring foreigners from different countries and cultures.
Cons of the Regiocentric Approach
- Though the culture is usually similar, some differences can cause conflict.
- Political relations between the host and native countries can affect the work environment.
- Managers may lack global experience.
Summary
Regiocentric approaches help the regional and multinational companies recruit top talent from neighboring countries with similar cultures to bring their expertise and develop an integrated working environment at an affordable recruitment cost.
Good work and easy to understand