BB304_fmi_lnt_001_Lecture_02_May11

8/6/2019 BB304_fmi_lnt_001_Lecture_02_May11

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Learning ObjectivesTo define and demonstrate the effect ofcultures various dimensions on business.

To examine ways in which cultural knowledgecan be acquired and individuals andorganizations prepared for cross-cultural interaction.

To illustrate ways in which cultural risk poses achallenge to the effective conduct of business

communications and transactions.

To suggest ways in which businesses act as changeagents in the diverse cultural environments in which

they operate.


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Expanding Operations AcrossBorders

Two distincttasks

emerge:to understand culturaldifferences and theways theymanifestthemselves

to determinesimilarities acrosscultures and exploitthem in strategy

formulation


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Culture Defined

Culture is an integrated

system of learned

behavior patterns that are

characteristic of the

members of any given

society.


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Characteristics of Culture

Culture can bepassed fromparents tochildren, by social organizations, specialinterestgroups, thegovernment, schools, andchurches.


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Acculturation

Acculturation is the

process of adjusting andadapting to a specific

culture other than ones

own. It is one of the keys

to success in international

operations.


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High- versus Low-Context

CulturesHigh-context culture

context is at least as

important as what isactually said

what is not being said cancarry more meaning thanwhat is said

Low-context culture

most of the information is

contained explicitly inwords

what is said is moreimportant that what is notsaid

The U.S. is an example


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Cultural UniversalsCulturaluniversals aremanifestations of the

total way of life of anygroup of people.

These includeelements suchas bodily

adornment, courtshiprituals, etiquette,

concept of family, gestures, joking, mealtime

customs, music, personal names, status

differentiation, and trade customs.


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The Four Roles ofLanguageLanguageaids in information gatheringandevaluation.

Languageprovides morethan theabilitytocommunicate because itextends beyondmechanics to the interpretation of contextsthatmay influence business operations.


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Nonverbal language

Distinctions must bemade in five keytopics:


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Dominant Religions


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Values and AttitudesValue of U.S. Culture AlternateValue Function Affected

The individual can influence

the future

Life follows a preordained

course

Planning and scheduling

We must work hard toaccomplish our objectives

Hard work is not the pre-requisite for success; wisdom,

luck, and time are also required

Motivation and rewardsystem

Commitments should be

honored

A commitment may be super-

seded by a conflicting request

Negotiating or

bargaining

One should effectively use

ones time

Schedules are important but only

in relation to other priorities

Long and short range

planning

A primary obligation of the

employee is to the organization

The individual employee has a

primary obligation to the family

Loyalty, commitment,

and motivation

The best qualified person should

be given the position available

Family issues and friendship

can determine employment

Employment, promotions

recruiting, selection


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Manners and CustomsPotential ways in which negotiators maynot beprepared:


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Material ElementsMaterial culturerefers to theresults of

technologyand is directlyrelated to how a

society

orga

nize

s itse

conom

ica

ctivity

.

It is manifested in theavailabilityand

adequacy of the basic economic, social,

financial, and marketing infrastructure forthe

international business in amarket.


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Material Elements Chart

transportation energy

communications

health banks research firms

Economic

Infrastructure

Social

Infrastructure

Financial and

Marketing

Infrastructure

Material Culture

education

housing


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AestheticsGood taste is

expressed through

colors, form, andmusic.

Themeanings of

colors and symbolsvary from countryto

country.


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EducationEducation, eitherformal or informal,plays amajorrole in

thepassing on andsharing of culture.

International firmsneed to understand the

varyingemphases onparticular skills and theoveralllevel ofeducation provided.


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Cultural KnowledgeCultural knowledge can be defined by the way it isacquired:

objective or factual information is obtained throughcommunication, research, and education.

experiential knowledge can be acquired only bybeing involved in a culture other than ones own.

Interpret

ive

knowle

dge

is the ability tounderstand and fully appreciate the nuances of

different cultural traits and patterns.


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Acquiring International ExperienceManagers ranking of factors involved in

acquiring internationalexpertise

FactorAssignments overseas

Business travel

Training programs

Non-business travelReading

Graduate courses

Precareer activities

Undergraduate courses

Considered Critical85%

83

28

2822

13

9

1

Considered Important9%

17

57

5472

52

50

48


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Cross-Cultural BehaviorModel

Communication

about

Innovation

Consequences

Strategic

Opinion

Leadership

Adoption

Tendency

CognitiveSearch

Change

Agent

Adoption

Propensity

to Change

Evaluationof

Innovation

Cognitive

Distortion

Cultural

Lifestyle


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Cross-Cultural BehaviorModelThe keyvariable of themodel is propensityto

change, which is a functionof three constructs:


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Cultural Dimension Scores for 12 countries

Uncertainty

AvoidanceIndividualism

Power Distance Masculinity

1000 0

100 100

50 50

50 50

JapanFrance

Mexico

BrazilGermany

Netherlands

U.S.A

Great Britain

Arab Countries

West Africa

Indonesia

Hong Kong

Japan

Arab Countries

Mexico

Brazil

France

Germany

Great Britain

U.S.ANetherlands

Hong KongWest Africa

Indonesia


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Dimensions of CultureDifferences in culturallifestyle can beexplained by:

Asian countries tend to havehighuncertaintyavoidanceand low masculinity.

Western countries tend to havelowuncertaintyavoidanceand highmasculinity.


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Self Reference CriterionSelf reference criterion is theunconsciousreferenceto ones own culturalvalues and istheroot of most international businessproblems.

Suggestions to reduce cultural bias include:Define the problem or goal in terms of domestic culturaltraits, habits, or norms.

Define the problem or goal in terms of the foreign cultural

traits, habits, or norms.Isolate the self-reference criterion influence in the problem,and examine it to see how it complicates the problem.

Redefine the problem without the self-reference criterioninfluence, and solve for the optimum-goal situation


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Cross-Cultural Training

Culturaltrainingprogramsshould include:

culture-specific information

general cultural informationon values, practices, andassumptions

self-specific informationthat identifies ones ownculturalparadigm


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Cross-Cultural Training (cont.)Additional forms of traininginclude:

mentoringarea studies programs

culturalassimilatorprograms, in whichtraineesmustrespond to scenarios ofspecific situations in aparticular country

sensitivitytraining

field experience


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Tips for

Making Culture Work

for Business Success

Embracelocal culture

Build relationships

Employlocals to gain culturalknowledge

Helpemployees understand you

Adaptproducts and practices to localmarkets

Coordinate byregion

BB304_fmi_lnt_001_Lecture_02_May11

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