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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