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The importance of Culture in the success of Joint ventures Project
1. Introduction:
The primary purpose of this paper is to investigate how business games help
harmonizing joint venture project team culture. It deals with the relations among the degree
and intensity of conflict, trust, and the performance of a joint venture project and its
development, if dependency asymmetry exists between partners. While the impact of culture
and value perceptions in joint business has received much attention, the current work tries to
investigate whether general dimensions of culture is influenced by serious or business game
simulations in building a strong project team and has a positive impact on the team¶s
performance.
Project teams comprising of members from different cultures are a representation of a
standard team composition nowadays. Today, multinational organizations seek new staff on
the global labour front rather than appointing staff solely on the local job market sector.
These multinational corporations constitute members from different cultural background
altogether. Arguably, joint multinational teams have the ability to develop a higher degree of
team performance driven by synergy effects forked from complementary skills and cultural
diversity. Despite the heightening popularity of joint ventures, a vast variety of research have
reported problems that seem to be inevitably linked to these alliances, collaborating with a
partner belonging to a different national culture. In fact, approximately 37% to 70% of
national and international joint ventures are reported to have encountered performance
problems, due to partners and team members deprived of effective trainings. To address this
problem, experts such as Horak (2010) and Kemp et al (2001) recommend using state-of-the-
art simulation techniques such as Econotos and Bafa-Bafa to help build team harmony and
ultimately a stronger background for joint ventures associations. As far as problem solving is
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concerned, this may theoretically lead to more creativity because of the broader horizon of
perspectives involved.
Although several causal elements have been suggested, but most studies refer to
issues in regards to cultural differences. Many cases show substantial dissatisfaction with
their performance, and cultural differences can be accounted for these performance related
issues. Clearly, cultural differences largely influence the way partners in joint ventures make
decisions and resolve problems. Therefore, cultural differences tend to generate ambiguities
in the relationship, resulting in conflict and even dissolution of the venture (Conchúir 2010).
This project also attempts to examine the importance of culture for the effective
project team building for the success of joint ventures, which has been viewed as a hybrid of
two different national and business cultures ,and emphasizes on the fact that business games
or simulations is the ultimate way forward for string culture. Additionally, the paper reviews
what the prior literatures have proposed concerning issues of conflict and cooperation
throughout the life-cycle of joint ventures. The rules of the business game are deduced from
the overview of the empirical joint venture literature. Following this, the timing and the
sequence of the play depict the difficulties rising from information asymmetries.
Additionally, the paper offers a robust framework to prepare the literature regarding the
games played in a JV such as common agency, bargaining, and iterative games (Simon &
Murray-Webster).
2 . R esearch Methodology
2 .1 Introductory R emarks:
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This chapter illustrates the research tool user for data collection, analysis and
interpretation; as well as the rational for selecting the same.
2 .2 Methodology:
In approaching the examination of this subject matter, the study shall be conducted by means
of secondary sources. Patzer (1995) suggests that research on market relies on secondary data
to complement primary data. However, secondary data are being employed increasingly as
the exclusive information for assisting users of marketing research in their decision-making.
Secondary research also represents a means to gather information regarding procedures and
techniques, along with strategies, rationales and the reasons behind courses of action and/ or
circumstances. Secondary sources are plentiful and as such present the ways to explore a
broad range of subject matter as a means to glean the accuracy regarding the paper objective.
The primary attraction of secondary sources is its easy accessibility, and the ability to
examine large-scale trends. The shortcomings are that there is a possible lack of perspective
consistency, and that biases and inaccuracies cannot be readily checked.
Both quantitative research and qualitative research will be conducted in this project.
Silverman (2006) advocates that quantitative research is difficult and unyielding; symbolizing
a fixed approach which, in general, tends to be abstract as well as hypothesis testing. He
advises that in the instance of qualitative research, the methodology is relatively flexible,
speculative and grounded. Saunders (2006) states that using the both techniques aids in
achieving more balanced approach.
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2 .2 .1 Application of Quantitative , Qualitative R esearch Analysis in Project
Management: Serious Games for building joint team culture, using Ded uctive
and Inductive Techniques
The quantitative study supposes that the context in which it relates to provides truthful
analysis and that this is stable over time and backgrounds. On the other hand,
qualitative study supposes that facts are assembled in the pattern of meanings and
interpretations, but these are inclined to be situational and transitory.
The prevailing quantitative evidence supplies with the quantitative set that interprets
characteristics by considering numerical facts and numbers on behaviors observed.
Further, the trials conducting in this method provide statistical analysis which can be
graphically observed and interpreted through charts in a variety of pretexts.
Quantitative methodology is usually acquired by analyzing facts and figures, which,
for the current work, has been extracted via the use of questionnaire. However,
questionnaires are primarily in the realm of qualitative approach in order to establish
opinions. Principally, quantitative data is acquired through published statistics and
journal papers, usually from projects like academic and government studies.
2 .3 R esearch Strategy:
R esearch can some in a variety of guises and forms, in both managerial as well as
artistic spheres. In terms of managerial research (as is the case with Project team
building), we observe that historical data in often useful. Factually, historical
information is applied when managerial research is the main purpose. Another prime
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justification for managerial research is analysis of project management is the need to
systematically investigate and expand upon established facts.
Artistic approach would be inappropriate here, as the techniques used in artistic research
would fail to provide the evidence sought into the nature of Project Management and the
context wherein it is applied. Additionally, artistic research is considered to be based on
a ³practice´ rather than facts, figures, history etc. Therefore, this proposal will make
extensive use of quantitative, qualitative methods to establish appropriate facts about
how harmony can be maintained in joint venture project teams, despite the cultural
background of its partners, by using Inductive and Deductive reasoning as the vessel
upon which this is achieved (Kemp & Ghauri 2001).
Additionally, deductive and inductive research is also valuable measures to employ as
summarized by the following:
Table 1: Deductive R esearch vs. Inductive R esearch
Deductive R esearch Inductive R esearch
Uses scientific principles Gains an understanding of
events
Moves from theory to data Provides an understanding
of the
research context
Uses quantitative data Uses qualitative data
Uses controls to aid in the validity
of data
Is more a flexible structure
Is highly structured
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2 .4 Methods and Analysis:
A survey pertaining to the Masters degree R esearch Project was conducted in the form of
survey by the trainers from the project participants. The survey composed of 30 sets of
questionnaires. From 27 completed questionnaires, 18 respondents could identify cultural
differences as the most critical factor that might affect the project team performance.
R egardless of the small size of the sample, it indicated that if this factor was to be dismissed,
the project managers as well as the stakeholders would end up suffering from project failure
or some forms of undue conflicts. The identified issues that tend to adversely affect the team
performance have been presented in Figure 1.
F igure 1: Identified issues affecting team performance (Kemp & Ghauri 2001)
For the schematic, it is clear that cultural differences make the maximum impact with an
approximation of 66%, as against contractual management with 19% and least effect caused
by legal matter with 15%, on the overall performance of the project team.
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When a global team engages in a project environment, conflicts become detrimental to the
team performance. One of the most important causes of cross-cultural drawbacks is the
miscommunication on cultural lines in joint venture projects, and typically multinational
projects.
Participants were questioned about the primary sources of conflicts that were likely to
have a profound impact on the team performance in a project environment. The results of this
questionnaire showed that joint venture project team performance was affected due to
differences in:
1.
Decision-making process
2. Degree of trusting one another
3. Problem-solving approach, and
4. Communication techniques
The impacts are directly proportional to communication and human resource management. In
essence, communication on performance of multicultural team is a significant prerequisite of
efficient management. Human resource management is the strategic and consistent approach
to the management of the most valued assets of the multi-cultural team.
When multi-cultural team partners are involved in a project, all kinds of conflicts arise
but naturally. The sources of conflicts are a result of various forms of approaches due to
cultural beliefs and ways in which tasks are done.
The above concepts have been illustrated in Figure 2 and Table 2, along with the cultural
impacts realized by the respondents and the risk level of likelihood on project performance
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F igure 2 : The degree of R isk of cultural impact (Kemp & Ghauri 2001)
Impacts of cultural differences R espondents Extreme High Medium Low
1. Decision-making
process
14 0 8 6 0
2 . Degree of trusting one
another
11 0 3 8 0
3. Problem-solving
approach, and
14 0 8 6 0
4. Communication
techniques
12 0 7 6 0
Table 2 : impact of culture and risk degree of impact and likelihood
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2 .5 Background of F ramework and Use of Simulation:
Past three decades have witnessed multinational enterprises as one of the emerging strategic
tools to enter newer market
y In order to develop new products and manufacturing processes
y To curb the risks involved in cross-border transactions
y To bridge the gap between different and diverse cultures
The scope of national and international joint ventures ranges from renowned parents such as
Toyota and General Motors to Hewlett-Packard and Ericsson, commonly known to be
NUMMI-joint venture and EHP Telecommunications, respectively, to joint ventures with
partners heading from less developed nations and several different combinations. On the
basis of the parent¶s contributions, characteristics and expertise, the JV attempts to provide
the partner firms with the result of the value-creating process. Although, the JV literature
dealt with the past decades on the cooperative factors, the failure of the joint enterprises was
purely a minor issue addressed by assumptions about motives and success factors. Therefore,
it is essential to stress more on the dichotomy of cooperation as well as conflict in the triangle
of players (Adnan 2008) (De Freitas & Jarvis 2006).
At one end of the scale professionals need to acquire intercultural training courses for coping
with these complexes and dynamic intercultural situations, while in a joint partnership. At the
other end, trainers at all levels and belonging to all branches claim they have adequate means
for preparing young candidates, employees and citizens for tackling possible difficulties,
uncertainties, misunderstandings, etc resulting from such intercultural conflicts(Conchúir
2010).
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Today, there are a variety of intercultural training modules in business studies that can
be systemized with respect to Brislin¶s well known matrix (1989:"445). According to this
matrix, training modules are based on ³cognition ,́ ³affect´ and ³behaviour´ on one side, as
targets of training, and evoke ³low´, ´moderate´, or ³high´ on the other side, as involvement
of the learner. Modules do include lectures from ³old hands´ who have been living in the
given culture and who have been dealing with likewise problems as the ones faced by the
trainees. Further, modules also include group discussions in regards to topics such as
prejudice, sexism, racism, and discrimination. Other forms of training courses also employ
plays and simulations, such as the famous games Bafá, Econotos, where the trainees are
trained to realize that familiar patterns of communication, behaviour, etc. do not apply for
alien cultural settings (Simon & Murray-Webster).
A good practical example of such a situation is when the son of a senior-level official
in the Electricity Department who is an employee of an Indo-German international joint
venture was caught stealing, the electricity supply was terminated. The nature of a joint
venture creates not only benefits for both parties engaged but also disputes of interest that
may result into deception, fraud and low-effort level (Ott 2003). Thus, it becomes
increasingly necessary to address conflict and cooperation and develop appropriate solutions.
Although several authors have tried developing theories for joint ventures project
management and tools in order to manage this crucial form of national and international
business, the literature on joint ventures rather appears to be a patchwork of difference
viewpoints and angles.
Empirical studies looked into matters pertaining to performance measures, motives,
success, stability factors, as well as partner nationalities. Furthermore, eclectic frameworks
were developed by some authors for further analysis. Emphasis was also given on the
cooperative side of life cycle of joint ventures and the dynamics of inter-organizational
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relationships, particularly on the driving forces of the development. Therefore, is can be
noted that the degree of ambiguity and appropriateness, the differences in interpretation and
interaction by two primary parties, and the degree of perceived differences were related to
various stages of a joint venture life-cycle. The importance of creation of an analytical basis
was also framed, mainly for the dynamics within joint venture project management.
Even though the aforesaid framework for joint ventures provides insights into the
various driving forces of a joint project life cycle, the triangle of players consisting of local,
foreign and international joint venture project teams itself, initiates information asymmetries
and communication problems; this becomes an important source of failure that is likely to
occur throughout various stages. Therefore, the existing study presents the development of an
analytical basis for a multi-person decision making throughout the stages of team building.
The reintegration can be addressed by application of game-theory reasoning. Game theory is
chosen as a concept mathematical tool chosen to study the other players¶ behaviour. It is used
for developing the consequences of behaviour that is derived from cooperation and self-
interest across a robust analytical basis (Wu et al 2006).
On the basis of a survey, this paper offers a framework for organizing the joint
venture-literature into the element of joint projects, by linking to multi-person decision
making in a game theoretical viewpoint.
For the development of intercultural competence, Taxonomy is a tool based on three
domains, namely, knowledge, attitudes and skills. It presents three levels of development,
which are awareness rising, understanding and lastly, autonomy. Essentially, the domains and
levels of development are often of those seen in the literature, even though it is typically
found in the literature entailing that there is not ultimate consensus as the range, definition of
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the µareas¶ or factors of cultural sensitivity, competency or awareness (Adnan 2008) (Hogan
2007).
The taxonomy was developed with the sole intention of behaving as an explanatory
device for assisting easy engagement for business professionals and senior management of a
joint organization or project with developing intercultural competence. In our study,
taxonomy has been employed mainly to develop learning activities as well as assessment
criteria. Assessment tasks are aligned parallel to learning objectives. In other words, because
learning activities are a prerequisite formal step prior to assessment, learning activities are
linked to different stages of development and domains. For instance, a class quiz which
judges understanding of global as well as local knowledge and cultural variations may be
constrained to analysing knowledge outcomes. As a contrast, an in-depth case study or
simulation can be developed which aims to facilitate higher degree learning objectives and
assess varying attitudes, skills and knowledge of participants (Wu et al 2006).
Bafá- and Econotos-like simulations will be used for overcoming shortcomings such
as mistaken behaviour in foreign nations leading to extensive negative consequences,
misinterpretations and interruptions taking place within mergers and acquisitions-
negotiations, low satisfaction due to training courses in larger enterprises, and tensions in the
workplace among employees from diverse cultural backgrounds that hinder efficient working
(Hogan 2007).
A framework is developed to integrate the ³mindful identity negotiation´ approach
and the ³expansive learning´ approach. These approaches were first proposed by Ting-
Toomey and Engeström, respectively, which was then extended by Webber (2001) and de
Freitas (2006). The ³mindful identity negotiation´ scheme is an integrative theory which
draws inspirations from four main scholarly disciplines:
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y Theory of social identity
y Symbolic interaction
y R elational dialects, and
y Identity negotiations
³Expansive learning´-approach by Engeström, is referred back to social-cultural and
historical learning theories.
By employing the model of ³mindful identity negotiation´, elements, relationships as well
as communication processes of local and international encounter events can be isolated,
demonstrated and examined. However, just by learning about these findings does not
automatically give rise to an ³intercultural competence´. Furthermore, successful working of
joint ventures needs to have an explicit and conscious integration of the issues raised into
teaching and learning processes (Ott 2003). Efficient teaching-learning procedures have been
organized as interplay between:
1. Knowledge acquisition : This is initiated through various learning approaches such as
self-organized learning, anchored instruction, cognitive apprenticeship, etc.
2. A cculturation processes : which is initiated via ³community of practice´ (CoP)
approaches
3. N egotiation processes: initiated via collective and social-cultural learning
approaches, in order to develop common understanding between peers and meaning.
These different types of learning are able to foster a) individual knowledge b) collective
knowledge c) individual / collective knowledge.
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In essence, the analysis moves from concept of knowledge transmission to that pertaining to
an active learner, advanced by social interactions as well as common negotiations. This is
directly termed as ³expansive learning´ (Hogan 2007).
F ollowing are the processes of inter-cultural learning with respect to this framework :
During intercultural encounters, partners in joint venture notice that their familiar
patterns of behaviour, beliefs, value systems, symbols, and practices in doing business,
together with other related artifacts fail to function anymore. Their counterparts fail to
understand them correctly, they themselves are not that efficient in reaching their targets, but
moreover they feel uncertain, neglected, helpless, vulnerable, etc. There are some people who
do not link such problems to cultural issues; rather they attribute these conflicts to wrong
behaviour or personal failure. Other individuals evaluate their own behaviour as being
superior and ignore otherness or tag the unfamiliar behaviour as ³unfair´, or ³bad´. Such
people are said to be ethnocentric and do not get acquainted with the learning processes, as
described above. Such cases demand other preparatory measures to be taken in order to help
open up and sensitize minds of those individuals. This being a normative goal, is discussed
and legitimized, in sections that follow (Simon & Murray-Webster) (Dafoulas & Macaulay
2001).
At another end, individuals keen to solve these problems of misinterpretations, and wish to be
understood by their partners or counterparts, often find themselves in such interculturalclashes within an object-oriented activity systems that is mediated by rules, instruments,
labour of joint practice division, a lingua-franca, non-verbal interaction, facilitators, etc.
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L imitation:
Although this study covers dependence issues, cultural and relationships aspects of joint
project teams, and role of business games or simulations in aiding team members to run a
joint project harmoniously, the findings must be evaluated in the light of the limitations given
below.
The research uses cross sectional data, thereby prohibiting the investigation of the dynamic
effects of conflict, trust, performance and inter-dependency. The study does not involve
formulation of hypotheses. This is because the strategies of business games are laid on the
basis of the fact that if a joint project gives good performance and is very successful, the
partners will become more dependent on the joint venture as well as their partners in the JV.
Also, good performance has been married to trust; i.e. good performance creates an
environment wherein trust can develop. However, a longitudinal research is needed to give
proof of this causal relationship. Secondly, research is urged to replicate the study in a
diversified setting (Kemp & Ghauri 2001).
2 .6 Application of the framework in a simulated business game:
Intercultural competence interpreted as ³mindful identity negotiation´, as aforementioned,
is known to be a long term project, in the sense of life-long learning. It involves various
classes of knowledge, individual as well as collective knowledge, cultural knowledge, skills,
self-knowledge, etc. reached through different learning tasks and initiated by different
approaches, such as acquisition of facts, self-reflection, negotiation and socialization
processes, etc (Wu et al 2006) (Hogan 2007).
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The very first step involves conducting a developmental study as a learning course for
partners from various nationals, background and cultures. The major aim was to generate a
learning and simulation environment for triggering a ³mindful identity negotiation´ process
for intercultural learning. Therefore, the idea of the simulation Econotos can be used for
playing a role with a business case study. In this simulation, the course was sub-divided into
three categories, each consisting of 5 to 10 candidates . Cultural role cards were handed to
every group along with the task to ³acculturate´ to their new fictitious culture. In addition,
they obtained the first part of the business case study in order to solve as members of the new
fictitious culture, as mono-cultural group activity. Further, the groups¶ fictitious cultures were
mixed to simulate the ³intercultural clashes .́ Within these clashes, the candidates needed to
solve the second part of the given business case study, now called the ³intercultural´ group
activity (Simon & Murray-Webster). Next, they were informed to not to instantly adapt one
particular opinion or agree on a bad compromise, but were asked to engage into a healthy
dialogue and to tactfully negotiate a commonly shared understanding as well as solution
concerned to the problem. In fact, the tasks and problem given to the candidates in the case
study corresponded to their commercial business proposal which they were asked to jointly
carry forward as a business project and work together as an organization (Weber 2001).
Shortlisted episodes that demonstrate the effects of this first experimentation together with
the tools and instruments use to analyze the processes:
The simulation operates as a mediating tool or mirror presenting and experiencing typical
intercultural misunderstandings, prejudiced decisions, and other communication problems in
intercultural clashes.
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When the negotiations were stuck in a group and the participants got very upset and
dissatisfied about the conduct and the interaction development, one member passed a remark
saying:
³ We have been discussing the entire time and focussing only on our objectives and content-
related arguments. I strongly feel that we are talking at cross-purposes.
We are totally unaware of your cultural background (pointing towards foreigners). What
important aspects associated with your culture supporting this issue? ´
Here, a candidate with a very dominant ³culture´ identifies that they were not giving much
attention to the other foreign culture, and this proved to be a point of concern when they
started to figure out the main problem and misunderstanding. Such verbalization depicts that
they acquired sensitivity to as well as awareness of the need to broaden the situation and,
therefore, acting satisfactorily, efficiently and adequately. In other words, the conversation
pointed out at the necessity to open up and acquire knowledge regarding the views of their
foreign partners including their backgrounds (Simon & Murray-Webster) (Wu et al 2006).
Furthermore, during the subsequent reflection phases, the tutor facilitates the participants to
learn and sensibly comprehend from their experiences. Following statements provide
examples and discussions on the reflection phase
y Tool 1: F lipcharts:
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Participants were asked to:
a. R eflect on behaviour they observed occurring throughout the negotiation process
b. R ead the positive and negative emotions that arose and corresponding reasons
c. R eflect on strategies that fostered and obstructed the negotiation process
In order to visualize their findings, the participants required to fix them on a flipchart.
Table 1 illustrates participant notes as response to these questions:
Observed and Experienced foreign behaviour
y Candidates of the foreign culture did not take the arguments on board
y They could manifest an attitude of direct rejection
y They could stick very close together
y They tended to interrupt the discussion partners
y They responded very energetically
y They were narrow-minded and dull
Emotions R ead
y R age, due to permanent interruptions while speaking
y Uncertainty while facing other foreign participants
y Pride while realizing own goals
y Uncertainty due to shortage of good arguments
y Certainty due to powerful, convincing, and clear arguments
Strategies fostering (+) and hindering (-) the negotiation process
y Powerful and wining over arguments (+), (-)
y Openness and open to compromise of any kind (+)
y Persistence (-)
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y Unrevealed strategies (-)
y Interruptions while other members are talking (-)
y R estricted to only own opinion (-)
y Understanding (+)
y L istening to others (+)
y Interviewing others (+)
y Interpretations / Analysis:
Evidences produced from these flipcharts indicate that:
y Participants were capable to sharpening their views over aspects and factors of the
interaction when helped
y Participants experienced ³intercultural interactions´ that not only evoke positive,
but also negative emotions; they felt hurt due to the behaviour and reactions of
their counterparts even though the latter had an adequate and proper way of
behaving from their foreign perspective and did not have any negative purposes;
they also realized at the same time that members of other culture were hurt by
their behaviour even though they tried to be gentle and nice towards them, i.e.
they figured out that their ways of behaviour did not work in their favour anymore
or worked in an unpredictable pattern (Xiong & Deng 2008).
y Next, they also realized and got conscious of their behaviour as well as strategiesthat influence the intercultural negotiation process in a negative or positive way
while approaching a common meaning and an adequate result as a result of which
they tend to feel understood and greatly respected. The primary and most crucial
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issue was to listen to what others say and to allow every member to actively
participate with their opinions and suggestions (Weber 2001).
y Tool 2 Questionnaire:
As stated in section 2.4, a questionnaire based on 17 most crucial aspects was
employed in regards to the ³mindful identity negotiation´. This questionnaire proved
to be a robust tool in determining what kind of experiences participants had while
using the simulation. In short, the questionnaire posed questions on member such as:
y Did you feel vulnerable or firm throughout the process?
y How would you analyze and pass a judgement about the behaviour of
members with foreign culture: satisfactory or inadequate?
y Were you able to interview your counterparts for obtaining information
regarding their cultural background?
y Were you a good listener when the discussions were being carried out?
These responses were obtained when they were still playing the role of a member in a
fictitious culture.
y Situation:
The participants, when answering this questionnaire are already reflecting on the important
matters that influence the ³intercultural´ communication, or ³mindful identity negotiation´
processes:
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³ When actually thinking about our group discussion session: I hardly tried to gain
knowledge of or enquired about the foreign culture which other members belonged to,
including their views and background, since it was clearly mentioned in the questionnaire´
Following this, after gathering the responses of respondents to all questions, the following
patterns of the simulated intercultural communication procedure was produced. Moreover,
these schematic interaction patterns acted as a foundation for discussion and reflection.
F igure 3: Estimation of the simulated ³intercultural´ communication with respect to
central dimensions of the ³mindful identity negotiation´ scheme (Horak 2 010).
y Tool 3 F ortune Lines:
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In addition to the tools described above, another tool was used, for drawing ³fortune lines´.
The participants were told to map out the entire intercultural communication process in a
graphical form. Therefore, they were asked to extensively judge as many as ten events
occurring during the interaction process with respect to the scale ³ I liked it very much ´ and ³ I
did not like much ´
The resultant fortune lines are shown by the schematic as follows:
F igure 4: F ortune Lines (Horak 2 010)
3. F indings
Based on the cultural framework explained above, an analysis of how business games
determine the impact of cultural aspects on relationships among team members of a joint
project, cultural behaviour patterns of the team, task complexity, and lastly, team experience
was conducted.
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The following section provides the results and their interpretations, obtained from the tools
used in this project.
o P attern 1 in F igure 3
Pattern 1 in Figure 3 depicts the outcome of the aforementioned questionnaire on 17
crucial factors of the ³mindful identity negotiations´. The pattern highlights the reflections of
participants when asked questions regarding the issues that influence intercultural interaction
or mindful identity negotiation procedure (Weber 2001).
³T he participants of culture C strongly felt that they were not properly understood by
their counterparts, as per question 7, throughout the intercultural interaction, and that they
were not addressed with equality and did not get the same opportunity to equally take part
within the discussion, for question 8, that neither their participation nor their contributions
were judged to a great extent by the partners of the other cultures.
Further, the members of culture A experienced the same feeling that their contributions were
not highly appreciated and acknowledged by their counterparts.
In contrast, the participants belonging to culture B had the belief that their contributions
were greatly identified and accurately judged´ .
o I nterpretation of pattern 1:
As shown by Pattern 1, the participants were able to learn about their own as well as other
members¶ basic human needs: such as, of inclusion, self-respect and self-esteem. Moreover,
members of the culture C particularly were not given enough support in these identity needs.
R ather, they were omitted, not given respect and their activities were not fully valued. This
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Pattern is a phenomenon which gave an insight into what frequently occurs during
intercultural encounters. These findings were then discussed with the participants (Xiong &
Deng 2008).
o P attern 2 in figure 3:
³T he majority of participants in culture B notified that they were given equal chances to
demonstrate their opinions sufficiently at any time while in discussion. T hey also felt
confident about the outcome of the negotiation process, in contrast to the other cultures in
discussion even though they were aware of the fact that they did not arrive at a common
understanding over their cultures.T
his pattern further showed that the minorities werenot
able to reach their desired goals.´
o I nterpretation of pattern 2:
R egarding this intercultural group an additional factor needs to be taken into account which is
the structural dominance associated with culture B. The simulation can also be reconstructed
to explicitly include ³minority-majority´-groups so as to enable the group members to
experience the dimension of ³power´. In this context, the results depicted in figure 2 illustrate
that the simulation generated this imbalance. Furthermore, the perceived dominance as well
as exclusion of the majority culture B was actively discussed with the participants (Adnan
2008) (Weber 2001).
o P attern 3 in figure 3:
Y et another extremely crucial phenomenon is presented by the behaviour of culture A. The
findings prove the following evidences:
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T he participants judge themselves to be very open during the entire interaction process as
stated by the members belonging to the foreign culture; however, they did not mindfully study
nor interview their foreign counterparts as a concern to gather their cultural background and
relating information on their behaviour, even though they at times judged the others¶
behaviour insufficiently and were hence very surprised´.
o I nterpretation of pattern 3:
In the following discussion, the participants were able to realise that only by perceiving
oneself as an ³open´ person does not fully ad actually suffice. In order to interact in an
adequate, efficient and satisfactory manner it also becomes very important to ³observe´, to
³listen´, to ³enquire´, to ³interview´, etc. all this done mindfully. It is possible to construct
the interaction/ communication situation more holistically, solely depending on an extended
and strong background or context information. Further, this basis becomes necessary for
carrying out interpretation, evaluation as well as passing judgement about unfamiliar
behaviour in a satisfactory manner, and is essential while studying and implementing an
intercultural competent behaviour (Weber 2001) (Payne).
o P atterns generating within the fortune lines:
The graph indicated in Figure 4 presents generation of fortune lines when the aforesaid
framework was applied to help respondents solve the questionnaire.
³T he participants as members of a given fictitious culture like to present their points of view
about the other cultures, to bring forth their own arguments and opinions as part of the
discussion, and to represent the thoughts and standpoints as part of the negotiation, and to
summarize the results at the end of the discussion. Additionally, problems as well as
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disagreements are born very explicitly whenever they want to show interest in or to tackle
issues of the foreign culture participants/ people.´
o I nterpretation of these patterns:
The above stated phenomena typically appear during intercultural negotiation
processes. After discussing these patterns with all the participants, they were able to
recognise and draw a conclusion that flexibility and empathy are two most important
capacities for coping with intercultural issues properly, effectively and satisfactorily or rather
as an inter-culturally competent individual.
All these findings generated by the simulation and accurately visualized by the various tools
were successfully interpreted throughout the reflection phases in the following ways:
y At one end of the scale, following the theoretical dimensions of ³mindful identity
negotiation´ scheme, to deal with ³cultural knowledge´, ³communication skills´, and
³identity needs´.
y ³Cultural knowledge´ stands for various communication styles, different techniques
of handling conflicts, and different time orientations. ³Communication skills´ stand
for mindful observation and study, listening, management of facework. L astly,
³identity needs´ entails connection, security and trust.
y At another end, through certain research findings as well as pertaining to day-to-day
life interactions (Ott 2003).
The research project makes intensive use of robust approaches based on activities for
facilitating participant autonomy in regards to intercultural competence. Simply put,
advanced level activities offering opportunities for business partners to reflect on their
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behaviour, to pursue self-evaluation, and to employ knowledge as well as intercultural
skills include activities like:
y Intercultural games such as online collaborations and online discussions
y Advanced level case studies
y Advanced level simulations, such as Bafa-Bafa game, Econotos game simulation, cross-
cultural negotiation, and cross-cultural discussion and debates
y Systemic use of self analysis tools such as taxonomy
y Intercultural learning journals
y Advanced level group-activities within a business context and cultural script writing, that
are assessable
y Advanced level role-plays for practising and applying intercultural knowledge, skills and
understanding (Dafoulas & Macaulay 2001)
The confrontation between the different interpretations, practices as well as identities is likely
to result into some sort of reflection and self-reflection. Indeed, it has been recognized that
there are alternative ways of managing a situation and the personal option in only one
possibility in several others. Every person has within him or herself, several types of layers of
identities that become relevant in a certain given intercultural situation. Nonetheless, every
individual has similar canonical human needs for self-affirmation. These human needs
include security, trust, stability and connection. Additionally, their existing practice can be
studied and compared, at the same time. Most often than not, a discussion wherein both
partners/ parties evoke their own individual identities and goals and take to challenging or
supporting the other¶s identities is not carried out in harmony (Weber 2001). Although the
participants of the activity have a common agreement on the surface level they often
determine huge contradictions at a deeper level. However, an inter-culturally competent
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partner will communicate in a way that makes all participants feel respected, supported, and
most importantly, understood (Thomas et al 2002) (De Freitas & Jarvis 2006).
In general, the findings supported the asymmetric information viewpoint in regards to
resource combination via joint project team building. However, the complexity of joint
ventures combining technological know-how, if not anything else, of one partner with market
knowledge holds a limitation of providing the right incentives to disclose the information
essential for the success of the joint venture, and mostly to harmonize its execution.
The findings also illustrated the evidences that through an effective simulation, team
members of joint projects are able to answer questions such:
1. What was the impact of differences in organizational culture on project success?
2. What was the impact of difference in national culture on project success?
3. What were the impact of personal needs as well as preferences of individual
participants or team members over project success?
4. Till what extent did business games help them in acquiring information about
different cultures?
5. Till what extent did business games incorporated into them nature of working in
cooperation to sustain harmony in a given project?
For the only purpose of this research paper, culture is said to the bundle of attitudes,
memories, perceptions, prejudices as well as other guides to activities and actions that are
identifiable as features of a given group and that conditions the direction of change for thatgroup (Kemp & Ghauri 2001).
Significant findings show the confirmation of presence of systematic differences in the
capability to withstand and employ high levels of change and uncertainty within the
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environment. It also showed that trust needs to be grown in relationships prior to any
members of the team preparing to trust others. Also, new data was obtained which illustrated
that substantial difference in the perception existed among primary team members or
participants with the desire to make progress, make decisions and carry forward the project
because of the variation in energy levels as well as openness in emotional behaviour shown.
4. Discussion and Conclusion:
The primary intentions of the first step in a broader training program were:
y Development of a general awareness regarding the complexity as well as
misunderstandings of and during the intercultural clashes
y Identification of the influence of culture on ³day-to-day´ behaviour and reactions
y To experience positive and negative emotions associated with the intercultural clashes
y To experiment with communication skills in order to achieve a satisfactory and
efficient interaction behaviour
y L earning to construct strategies in order to avoid or reduce misunderstanding
y To handle negotiation processes and to create new extensive solutions
y To develop fun and interest during interactions with people coming from other
business cultures (Thomas et al 2002).
Furthermore, the second step of the simulation program involves reconceptualising the
concept of culture by deriving the notion from´community of practice´. This is done by
conducting a shared discussion with the participants and motivating them in their daily
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operations and life practice, in order to help isolate the ³misunderstandings´ they bear
with member from other cultures, such as smokers vs. non-smokers, elder vs. younger
generation, veg. vs. non-vegetarian, and so on, and to negotiate this cultural encounter, by
conducting a so called ³practice activity´ (Xiong & Deng 2008).
With the help of the business game simulated for this project, each simulation depicts
a µsurvival¶ challenge. Through the business game, team members worked individually and
then as a group in order to assess the value of series of elements with respect to their
importance to µsurvival¶. Then, the score were generated by making a comparison between
individual and team responses to those provided by the actual trainers or experts when in that
given situation. This intensive use of survival experts, together with simulations, lent a high
level of credibility as well as interest to the activities (Kemp & Ghauri 2001).
This concept was adopted while developing business simulations, for extending the
simulation process at the workplace. Purely business oriented content was provides and
increasingly focused on challenging individual respondents and teams to resolve given on-
the-job problems. Apart from the process of group decision-making, another added attraction
of the business games was a more formal discussion centred on an area of business expertise.
This involved enabling team members to help work in collaboration so as to avoid project
delays and failures.
The results were drawn by comparing project team members¶ individual and team scores withthe proposed rankings, they notably started developing an understanding of this aspect of
joint business.
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Game theory attributes strategies, unlike actions, as unperceivable and only mental.
The order of the play comprises of actions players take such as offering share ratios, offering
contracts, acceptance and rejection of offers, and lastly, selecting effort levels and other game
theoretical steps (Ott 2003) (Adnan 2008).
A simple case depicts strategies having conflicting and cooperative factors during the
negotiation period of a joint venture. Based on either long standing business observation or
newer initial contacts, the players represent different bargaining behaviour during the
negotiation stage. The outcomes can be obtained in terms of the contract, ownership and
control patterns. Further, the outcomes could also be reliant on the contributions of every
player. It can be noted that substantial parental strategies in a joint venture, national or
international, are growth in local and global markets, attain accessibility to new markets,
diversification, developing brand names and trademarks, acquiring production or
management techniques, and lastly, acquisition of technological knowledge (Xiong & Deng
2008) (Thomas et al 2002).
Business simulation is used for this project because it enables learners and managers to
engage in a virtual environment for assessing the one another¶s cultural and business
background while engaging in joint ventures. The management of an organization is both a
science and an art that needs active engagement of its management team. Since simulations
are responsible for stimulating competitiveness, they are considered as an ideal way of
enticing partners in the learning process and to reinforce and exercise business course
knowledge. Through simulations, game players get an opportunity to see how the theory they
acquired is effectively applied, rather than passively reading books and reports or listening to
seminars (De Freitas & Jarvis 2006). A business game situation provides to the learners a
virtual feel of what it means to operate an organization, yet it does so in extremely safe
environment. Furthermore, by employing game simulation for our current project, players
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were able to try out varied ideas, express viewpoints, actively participate to study their own
as well as their counterparts¶ level of understanding business, and learn from their mistakes
without the soaring expenses and investments associated with strategic mistakes involved in
real-world business(Xiong & Deng 2008) (Thomas et al 2002).
In essence, the controlled environment produced by the business simulation has
enables the instructor as well as the participants, to study and carefully observe the
behaviours shown by the student on different occasions, and the effects of those behaviours
on the management teams¶ intermediary results. The instructor is able to control the pace of
the entire exercise and the outcomes of the student actions are accessible instantly after every
decision round (Adnan 2008) (Dafoulas & Macaulay 2001).
The action profiles are different from one game to another and from one stage to another.
Furthering the negotiation stage of the current project, it would be observed that one partner
tends to offer a split of the equity pie on the basis of the contribution or of the host
government practices and the other partner may either accept or reject that offer. This will
show a simple bargaining behaviour. Further, during the management stage of the life cycle,
the partners may offer incentives approaches with the management of the joint ventures may
either accept or reject such schemes. The next player may now decide either to cooperate or
back off and misuse the offer. A low level or high level of effort in the different management
tasks can be added to the joint enterprise on the basis of the self-interest of the partner firms
or on the assumed gained of the joint venture. L astly, the players are able to learn in the joint
association, and for this reason they are capable of re-negotiating contract terms or make a
decision to resign from the joint venture. Another set of action may take place during the last
stages of the cycle, where players can willingly cooperate or cheat, to punish or to reward.
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The results obtained were surprising, since students were likely to prefer competitive exercise
instead of courses consisting purely of reading assignments and lectures. Through the current
simulation as part of the analysis course, a healthy environment is built, thereby allowing for
better evaluation of results from participants (Ott 2003) (Xiong & Deng 2008).
The order of the play of a joint venture game involves a mix of various stages ranging
from the construction till the termination of the enterprise. The periods are integrated within a
bargaining game, a contracting game, and lastly, a repeated game. Such games are related to
extensive the negotiation on the ownership shares, the exploitation of incentives in adverse
selection scenarios, and lastly, the players¶ learning and reputation. Nonetheless, the
abstraction of the project problem provides a robust framework to allow for proceeding in
different configurations (Payne) (Thomas et al 2002). Furthermore, the asymmetry of
partners is an important issue within the establishment phase of the joint venture and effects
the overall management process. Throughout the actual process of value adding of the joint
venture issue pertaining to coalitions as well as the players¶ reporting behaviour generate
tension among the partners and their subsidiaries, which in turn results into the use of
incentives. R epeated cheating or learning leads to penalties and punishment, and reward
scenarios, respectively. It also has an impact on the success and the failure of a joint venture
project, and is employed for maintaining the harmony in joint enterprises (De Freitas & Jarvis
2006).
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R eferences:
Ott, U 2003, µGAMES INTE R NATIONA L JOINT VENTU R ES P L AY DUR ING THEI R
L IFE C Y CL E: KE Y FACTO R S FO R CO-OPE R ATION AND CONF L ICT¶ , Journal of
International Business Studies , no. 2, pp. 1-16.
Conchúir, D 2010, Overview of the PMBOK Guide , Springer, Verlag Berlin Heidelberg,
L ondon.
Simon, P & Murray-Webster, R , THE R ELEV ANC E OF CU LT URA L DIFF E R E NC E S T O
PROJ E C T SUCC E SS ± THE CAS E OF A RUSSIAN/BRI T IS H JOIN T VE N T UR E , L ucidus
Consulting.
Adnan, H 2008, µAn Assessment of R isk Management in Joint Venture Projects (JV) in
Malaysia ¶ , Asian Social Science, vol. 4, no. 6, pp. 99-106.
Xiong, S & Deng, H 2008, µCritical Success Factors for Effective Knowledge Sharing in
Chinese Joint Ventures¶ , 19th Australasian Conference on Information Systems , vol. 3, no.5,
pp. 1089-1098.
Weber, S 2001, µA framework for teaching and learning ³intercultural competence¶, Institute
for E conomics, Business E ducation and Management T raining Faculty of E conomics and
Business Studies , vol. 22, no. 05, pp. 1-25.
Wu, S, L in, C & L in, T 2006, µExploring Knowledge Sharing in Virtual Teams: A Social
Exchange Theory Perspective¶, I EEE : Proceedings of the 39th H awaii International
Conference on System Sciences , available at
<http://www.computer.org/plugins/dl/pdf/proceedings/hicss/2006/2507/01/250710026b.pdf?t
emplate=1&loginState=1&userData=anonymous-
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IP%253A%253AAddress%253A%2B180.215.167.222%252C%2B%255B172.16.161.5%25
2C%2B180.215.167.222%252C%2B127.0.0.1%255D >.
Hogan, C 2007, Facilitating multicultural groups: a practical guide , Kogan Page L imited,
United States.
Payne, N Cross Cultural Solutions for International Business , StreetDirectory, viewed 18
August, 2010,
<http://www.streetdirectory.com/travel_guide/693/business_and_finance/cross_cultural_solut
ions_for_international_business.html >.
Thomas, R , Marosszeky, M, Karim, K, Davis, S & McGeorge, D 2002, µTHE
IMPO R TANCE OF P R OJECT CU L TU R E IN ACHIEVING QUA L IT Y OUTCOMES IN
CONST R UCTION¶, Proceedings IG LC-10 , Available at
http://www6.ufrgs.br/norie/iglc10/papers/98-ThomasEtAl.pdf >.
Horak, S 2010, µDoes The Individual¶s Culture Play A R ole In The Value Perception Of
Members Of Small Multinational Teams? An Empirical Analysis Based On Hofstede¶s
Cultural Dimension Model¶, Business and E conomics Journal , vol. 2010: BEJ-8, pp. 1-8.
Kemp, R & Ghauri, P 2001, µInterdependency in joint ventures: the relationship between
dependence asymmetry and performance¶, Chain and network science , 101-110.
De Freitas, S & Jarvis, S 2006, µA Framework for Developing Serious Games to meet
L earner Needs¶, Interservice/Industry T raining, Simulation, and E ducation Conference
(I/I T S E C) , no. 2742, pp. 1-11.
Silverman, J. 2006. What is Qualitative Research? Viewed 21 August, 2010,
<http://www.sagepub.co.uk/upm-data/11254_Silverman_02.pdf >.
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Saunders, M. 2006. Research Methods for Business Students, Prentice Hall, New Y ork,
United States.
Dafoulas, G & Macaulay, L 2001, µInvestigating Cultural Differences in Virtual Software
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pp. 1-14.
Questionnaire Template:
Apart from the survey questions mentioned in sections 2 and 3, the additional sample
questions asked throughout the project are as follows:
Content Analysis:
In order to derive the participants¶ experience, three particular open-ended questions were
asked as part of the simulation survey:
1. What according to your experience influences whether your contribution in a joint
project was successful?
2. What factors are crucial for the workings of a joint venture project that has an impact
of the success of the venture?
3. What element of potential partners, which are evident before formation of joint
venture, can predict a successful joint venture?
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All three questions were critiqued to code issues, stated as important to any participant, into
common factors. Then, each response was coded as per the instant of mention of these
concepts.
Apart from these questions, three L inkert scale questions were also posed concerning the
outcomes of the joint ventures. Two of them dealt with short-term gains and one question
enquired whether the partner or team member experienced gain in market position.
The first three questions were
1. Did the joint project collaboration as a whole gain the revenues expected from the
customer?
2. Did the individual member receive the revenue they expected from the joint venture?
Initial stages of the simulation saw questions like:
1. How many joint projects are you currently engaged in?
2. What kind of industry or activity have you involved in, into joint ventures?
3. What is the nature of your participation in the incorporated/ unincorporated
partnership?