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INTERCULTURAL COMMUNICATION IN BUSINESS

 

 

* Culture and business setting * International business context * Cultural views toward management and managers * Culture specific business practices * Negotiation * Diversity in advertising * Cultural conflicts in the workforce (discrimination and sexual harassment)

 

Live together like brothers and do business like strangers

Arab proverb

 

Key words:

 

Acquisitions, business protocol, competition, globalization, intermediary, mergers, managerial expertise, management practices, multinational corporations, joint ventures, partnerships, subcontract.

 

 

Many countries are tied directly to an international system of economic interdependence, and most countries have at least one asset within their boundaries that is needed by another country.

No country is completely self-sufficient. Foreign competition and the need to trade more effectively overseas have forced most corporations to become more culturally sensitive and globally minded. Consequently, never before in history has the business arena portrayed such global qualities and a need for effective intercultural communication.

The increase in globalization is a result of growth in U.S. and foreign multinational industries since the 1960s. Trade agreements like GATT (General Agreement on Tariffs and Trade) and NAFTA (North American Free Trade Agreement) that lower tariffs and improve standards of living in the world have become commonplace. Multinational corporations increasingly participate in various international business arrangements involving joint ventures between two or more organizations that share in the ownership of a business undertaking.

Globalization also requires new approaches to doing business. Business models and practices that sufficed within a country are usually inadequate for international markets. According to Rogers and Steinfatt, companies in many industries today operate in a global marketplace. They must design products to fit a wide diversity of cultures, advertise them in numerous languages, and meet the demands of very different consumers. The global marketplace means that these companies are vitally involved in intercultural communication.

One approach to globalization has been the uniting of national businesses to form multinational organizations. Through acquisitions and mergers, many long-familiar U.S. companies have been absorbed into other companies or gained new names. For instance, the recent merger of Daimler-Benz and Chrysler has created the new Daimler-Chrysler Company. The acquisition of Columbia Pictures by Sony represents another recent example of acquisitions.

Another approach to globalization has been through partnerships among two or more companies.

Subcontracting has also become commonplace in the global economy. Subcontracts are arrangements in which a company pays another company to perform part of the production process in manufacturing a product.

Finally, management contracts have also increased dramatically over the last decade. In management contracts, one company provides another company with managerial expertise, production, technical, and marketing advice for a fee.

These international business arrangements usually result in individuals from one culture working not only with, but also for individuals from another culture. This situation often proves to be difficult because “. . . there are many problems when working or living in a foreign environment. Communication across cultural boundaries is difficult. Differences in customs, behavior, and values result in problems that can be managed only through effective cross-cultural communication and interaction” (Harris & Moran, 1996: 19).

In the final analysis, the most successful firms in the global arena will be those companies whose managers not only understand world economics and global competitiveness but who also are "sensitive to the broader implication of his or her actions and decisions upon organizational and world cultures" (Harris & Moran, 1996: 181).

This challenge exists because even a seemingly universal concept like "management" can be viewed differently from culture to culture. We now turn our attention toward the views various cultures hold regarding management and managers.

THE INTERNATIONAL BUSINESS CONTEXT

To begin with, let us consider the following business situation described by Hofstede & Hofstede (2005: 73-74):

A medium-size Swedish high-technology corporation was approached by a compatriot, a businessman with good contacts in Saudi Arabia. The corporation sent one of its engineers – let us call him Johannesson – to Riyadh, where he was introduced to a small Saudi engineering firm run by two brothers, both with British university degrees. The brothers were looking for someone to assist in a development project on behalf of the Saudi government. However, after six visits over a period of two years, nothing seemed to happen. Johannesson’s meeting with the brothers were always held in the presence of the Swedish business who had established the first contact. This annoyed him and his superiors because they were not at all sure that this business did not have contacts with their competitors as well – but the Saudis wanted to have an intermediary to be there. Discussions often dwelt on issues having little to do with the business – for instance, Shakespeare, of whom both brothers were fans. Just when Johannesson’s superiors started to doubt with the wisdom of the corporation’s investment in these expensive trips, a fax arrived from Riyadh inviting him for an urgent visit. A contract worth several millions of dollars was ready to be signed. From one day to the next, the Saudi’s attitude changed: the presence of the businessman-intermediary was no longer necessary, and Johannesson for the first time saw the Saudis smile and even make jokes.

So far, so good – but the story goes on. The remarkable order contributed to Johannesson’s promotion to a management position in a different division. Thus he was no longer in charge of the Saudi account. A successor was nominated, another engineer with international experience, whom Johannesson personally introduced to the Saudi brothers. A few weeks later another fax arrived from Riyadh in which the Saudis threatened to cancel the contract over a detail in the delivery conditions. Johannesson’s help was requested. When he went to Riyadh, it appeared that the conflict was over a minor issue and could be easily be resolved – but only, the Saudis felt, with Johannesson as the corporation’s representative. So the corporation twisted its structure to allow Johannesson to handle the Saudi account although his main responsibilities were now in a completely different field.

The Swedes and Saudis in this true story have different concepts of the role of personal relationships in business. For Swedes, business is done with a company; for Saudis, a person whom one has learned to know and trust. When one does not know the other person well enough, it is best that contract takes place in the presence of an intermediary or go-between, someone who knows and is trusted by both parties. And the root of the difference between these cultures is a fundamental issue in human societies: the role of the individual versus the role of the group.

 

Последнее изменение этой страницы: 2016-06-10

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