Fig. 1: Tensions Zara Faces to Converge Around 'Best Practices & Diverge Based on Local Conditions

China Operation

Spanish H.Q.

Divergence

Convergence

+

-

+

-

Reject global innovations

Become change averse

Contravening global norms

Best practices

Idea sharing

International trends

Values

Global culture

Processes

Innovation ✅

Capitalise on local context

Innovation ✅

Mirrors local context

Maintaining national/regional practices

Innovation ⛔

Maintain own organisational/local culture

Converge - wrong for that organisational context

Smaller organisations = copy

Innovation ⛔

Not learning from other cultures

Pressures

Internal

External

Retain decision making @ The Cube

Integrate international operation/workforce

Fear of localisation '2 brains'

PESTLE factors

Global events/trends

Global awareness/knowledge

Existing business model works (so far!)

Maintain status-quo

Remain centralised

Developed vs developing countries issues

Free market/competition

Competitors

Retain control/coordination

Current supply chain model = competitive advantage

High-tech/extra capacity factories based close to Cube/distribution center

Keep costs low

Be outward looking

Make a profit

Retain Zara values/mission

Not dilute Zara brand

Be innovative

Remain #1 clothing retailer

Remain current/competitive

International pressures/factors

Human Rights Issues

Balancing profit & social justice

Competing Forces to Conform

Internal

External

PESTLE factors

Global Trade Environment

Global power relations

Communism vs Capitalism

Parent culture' vs 'global culture'

Western vs Eastern Culture

Western vs Eastern business practices

Chinese Government: Censorship/'self-interests'

Zara/Inditex = Powerful global organisations

Powerful organisational actors - Ortega/Spanish SLT

Innovation ⛔

Innovation ⛔