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Organisations are in the midst of cultural change and transformation. Thus, the global market demands that they remain competitive, flexible and relevant in order to adequately react to culturally diverse changes in their human resources. This sentiment describes the importance of cultural diversity in organisations.  Hence, this study examines the significant of cultural diversity on business performance in the automotive parts manufacturing organisations in South Africa. The study was quantitative in design, with the participation of middle-level managers in two large automotive parts manufacturing organisations in the eThekwini District Municipality in KwaZulu-Natal (in South Africa).  Of the 168 individuals identified for participation, 118 participated in the study, representing a 70.2 per cent response rate.   Descriptive and t-tests, using the Statistical Package for the Social Sciences (SPSS), were used to analyse data.  Study results indicate that a culturally diverse workforce is associated with greater organisational performance, improved strategic decision-making and innovation.  The original value of this study is its essence in providing opportunities and challenges of cultural diversity on business performance in the parts manufacturing organisations in South Africa.

This paper explores how expatriates deal with host country informal business practices that differ from their home country institutional frameworks. We note that expatriate business people working in emerging markets of Africa often contend with corrupt business practices rooted in local informal institutions and the lack of strong formal institutions regulating business practices. We also observe that while local people take informal institutions such as magendo, as a way of life and adjust to them, expatriates being ‘outsiders’ respond in different ways. The study employed a qualitative phenomenological design that involved in-depth interview of a small sample of expatriates operating in Uganda. For data analysis, NVivo 11 was used to search for and retrieve chunks of labelled data. The key findings indicate that expatriates from countries with strong formal institutions experience the most frustrations and often reject informal business practices. On the other hand, expatriates from countries with weak institutions are more pragmatic and easily adapt to existing practices in the new environments. Multinationals however, often reject informal business practices due to their market power and strict codes of conduct.The study recommends that small-medium category expatriates targeting Africa need to align with influential local people so as to navigate business informalities that characterise informal business environments.