How much the "management philosophy of peace culture" is valued can affect the management and welfare systems of a company and in turn have an effect on employee morale. The objectives of this study are to understand the relationship between the degree to which the management concept of peace culture is valued and employee morale in American and Japanese multinational enterprises (MNE) and to examine the mediating effect of cross-culture management. The outcome of the study indicates that cross-culture management does have a mediating effect on the management concept of peace culture and employee morale. Empirical examinations reveal that the more highly an MNE values "management philosophy of peace culture", while "third culture management" approaches are adopted, the better the management system and welfare system of its subsidiaries will be. In consequence, the employee morale, quality control and after-sale service will also improve.
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