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INTERCULTURAL BUSINESS COMMUNICATION

1. THE CONCEPT OF CULTURE

The first ‘modern’ definition of culture ‘that complex whole which includes knowledge,

belief, arts, morals, law, custom, and any other capabilities and habits acquired by man

as a member of society’ traces back to 1871 to the British anthropologist Edward Burnett

Tylor. (Edward Burnett Tylor, Primitive Culture, 1871)

In our approach, culture is used in the sense of a shared system of beliefs, patterns of

behaviour, meanings, values that underlie people’s understanding of experience and

their way of relating to one another.

Anthropologists distinguish between two dimensions of culture, material and symbolic.

The anthropological definition of culture usually includes six main elements:

1. Meanings

2. Values/world view/beliefs covering 5 basic areas:

• human nature

• relationship to nature

• time

• activity

• relationships

3. Norms

4. Behavior patterns or social roles

5. Artefacts - technologies, materials, tools

6. Techniques, skills, the ways in which artifacts are used.

The pattern of these six elements, specific to a group of people, makes up a culture.

These elements are closely interconnected. E.g., when a new technology is introduced into

a culture, it can influence or be influenced by the norms, meanings, world view, values, and

behaviour patterns of a given culture.

These elements are passed down from one generation to the next through education

(socialisation, or enculturation).

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CHARACTERISTICS AND FUNCTIONS OF CULTURE

In the anthropological sense, culture determines:

• the way we act

• the manner in which we relate to others

• the way that we think about/interpret events happening around us

Characteristics of culture

Culture can be described as being:

Learned. (through the process of “enculturation”) - not merely passively absorbed, but

rather taught and learned.

Shared by members of a particular society.

Patterned: members of a particular society live and think in distinctive and describable

ways (patterns of thinking, patterns of behaviour)

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Constructed (through continuous social interaction, individuals create, recreate, and

change the “patterns” of a particular culture). Elements of culture change over time.

Symbolic: people within a particular culture possess a shared understanding of meaning.

Arbitrary: culture is created by human beings; it is not based on/dictated by natural

laws.

Internalised: members of a given society perceive culture as natural, as part of their

character.

Enculturation refers to the process of learning one’s own culture.

Conrad Phillip Kottak, in Window on Humanity: A Concise Introduction to Anthropology,

defines enculturation as follows:

Enculturation is the process where the culture that is currently established teaches an

individual the accepted norms and values of the culture or society in which the individual

lives. The individual can become an accepted member and fulfill the needed functions

and roles of the group. Most importantly the individual knows and establishes a context

of boundaries and accepted behaviour that dictates what is acceptable and not acceptable

within the framework of that society. It teaches the individual their role within society as

well as what is accepted behaviour within that society and lifestyle.

Enculturation is achieved through verbal and non-verbal communication. The elements of

culture that are learned:

• technological

• economic

• political

• interactive

• ideological

• world view.

Enculturation - first-culture learning.

The functions of culture

Culture:

• specifies rules for acquiring and transferring information;

• standardises perceptions;

• defines attitudes for intra-group and extra-group relationships;

• sets the institutional parameters that condition human behaviour and stabilise social

systems;

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• standardises relationships, so that people need not be constantly concerned about the

implication of their behaviour.

The codes for decoding external information, assigning values and priorities to that information,

classifying forms of behaviour as acceptable or not, and understanding social hierarchy are all

passed down from one generation to another through a system of reward and punishment.

Subcultures and countercultures

In addition to national cultures, there are subcultures (cultures shared by minorities

within a broader culture) and countercultures (shared by people whose beliefs, values, or norms

challenge those of the main culture).

• Examples of subcultures: bikers, body piercing fans, military culture, Star Trek fans.

• Examples of countercultures: the hippie movement of the 1960s, the green movement, feminist

groups.

Ethnocentrism vs. cultural relativism

Two opposite conceptions about cultures other than your own:

Ethnocentrism (the tendency to look at the world primarily from the perspective of your

own culture), based on

- the belief that one's own race or ethnic group is the most important and/or that its

culture is superior to those of other groups;

- an incapacity to understand that cultural difference does not imply inferiority.

Ethnocentrism: one of the biggest internal threats a company faces today.

Cultural relativism (the belief that the concepts and values of a culture cannot be fully

translated into/ fully understood in, other languages; a specific cultural artefact, e.g. a ritual,

has to be understood in terms of the symbolic system of which it is a part.

Each culture has to be understood on its own terms.

Parochialism and ethnocentrism

Parochialism: the belief that there is no other way of doing things except that found within

your own culture.

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Ethnocentrism : the way of doing things specific to your culture is superior to any other.

The importance of cultural understanding in global business practice

Since business decisions and options are more than ever influenced by the varied cultural

backgrounds and perspectives of different corporate stakeholders, multicultural understanding

and skills are vital for business managers nowadays.

Due to the fast growth of global business, people, funds, information, and knowledge

travel more quickly and widely than ever. As a result, nations and cultures are constantly being

assimilated and homogenized, and yet, at the same time, revealing more about their cultural

diversity. Different cultures, norms, and standards meet and interact in and outside of a global

corporation on a daily basis. The permanent increase in major global mergers and alliances also

promotes both intra-firm and inter-firm diversity and multiculturalism.

Different cultures give rise to different socio-politico-economic systems and models.

Therefore, economic systems and policies, market mechanisms, financial institutions, corporate

systems and governance are all essentially culture-bound. Thus, understanding different cultures

is critical in understanding different systems.

Comprehension of cultural diversity is essential for global business development and

success. According to recent research, managers, shareholders, business partners, and other

corporate stakeholders tend to make decisions and choices based on varied cultural

circumstances and perspectives. Although it is said and assumed that decisions have to rely on

cultural harmony, cooperation, and synergy, cultural misunderstanding, conflict, and collision

are often experienced.

Fostering a global perspective towards diversity and multiculturalism should begin with

an understanding of cultural values, perceptions, manners, social structure, and decision-making

practices of different cultures. Understanding other cultures starts with acknowledging the

differences and diversity in the way people think, talk, act, do business, etc.

Culture pervades every aspect of an organisation. Its influence on business practices is

important in such areas as:

• problem solving

• decision making

• meeting management

• team building

• communication and negotiation styles

However, the impact of culture on life and work is sometimes misunderstood: people fail to

see how it might be used to secure organisational effectiveness and success.

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“Culture still seems like a luxury item to most managers” (Fons Trompenaars, Riding the

Waves of Culture).

In a global economy with an increasingly diverse workforce, culture’s impact on business

cannot be ignored. Business people must be aware of the different cultural landscapes around

the world and the way they affect business. The importance and consequences of cultural

differences should not be overestimated or underestimated.

Workforce diversity is an asset that should be capitalised on.

J.T. Childs, Jr., vice-president of IBM states that: “Workforce diversity is the bridge between

the workplace and the marketplace. And, it is anchored on ideals that guide how you see

citizens of all countries as potential customers.”

2. INTERCULTURAL COMMUNICATION

Intercultural communication is a rather new field of study, and it involves several

disciplines: anthropology, psychology, business studies, communication science, linguistics,

sociology, geography, or history.

Richard Porter and Larry Samovar define intercultural communication as occurring

“whenever a message producer is a member of one culture and a message receiver is a

member of another”. (Richard Porter & Larry Samovar, 1985, 15)

Generally, intercultural communication refers to communication taking place

between people with different cultural and national backgrounds and who do not share the

same mother tongue. Gibson states that:

Intercultural communication takes place when the sender and the receiver are from

different cultures. Communication can be very difficult if there is a big difference

between the two cultures; if there is too much ‘cultural noise’, it can break down

completely. (Gibson, 2002: 9)

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Intercultural business communication refers to communication between business

people from different cultures performed either within a company, or between/among

companies.

According to Hofstede, intercultural communication abilities involve three phases:

Awareness

Knowledge

Skills

Awareness is the starting point, the acknowledgment that each individual carries a

‘particular mental software’ according to the environment in which he/she was brought

up.

Knowledge stands for the second step, when people interacting with other cultures have

to learn about those cultures, about their values, beliefs, symbols, and rituals. As an

outsider, the learner may never come to share those values and beliefs, but he/she may

get a good understanding of them.

Awareness and knowledge, combined with practice, lead to skills - (Hofstede, G.H.). The

learner has to understand and apply the values, symbols, rituals of the other culture in

order to achieve effective communication within an intercultural environment.

Words and gestures may mean different things to different people, and understanding of the

connotative meaning varies from one individual to another, according to his/her culture and

values.

Across cultures, some words or gestures may convey different meanings. Even the meaning

of ‘yes’ may vary from ‘definitely so’ to ‘maybe, I’ll consider it’, with many other

connotative meanings according to the context of the statement. Another example is the

phrase ‘you fool’, which may be an insult or, if pronounced with the right intonation, may be

a common way of joking among friends. The use of this type of ‘friendly insult’ depends on

the speaker’s culture. It may be totally inappropriate in countries like Indonesia, where status

is sacred and maintaining face is vital, and such a joke would be taken as an insult.

A well-known example of how perception works is the picture below, known as Rubin’s

vase, which can be seen as a vase, or as two heads opposite each other.

The fact that people perceive the same thing in different ways is particularly important in

intercultural communication. The way we perceive is culturally determined, and the

general lack of awareness of this is another barrier to intercultural communication.

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Here is an example, adapted from Adler, of how perception works and how important the

connection between culture and communication is. During negotiations between a Japanese

businessman and a Norwegian one, the former might say that the deal will be very difficult, and

this means for him that there will be no deal. His polite and indirect way of saying no is

misinterpreted by the Norwegian partner, who asks how they can solve the problem. This is a

typical example of how the same statement can be understood completely differently by two

people with different cultural backgrounds. In this case, proficiency in BELF, knowledge of how

to put words together correctly in order to convey information, is not enough to facilitate

successful intercultural business communication.

Barriers to intercultural communication

There are several barriers to intercultural communication that business people have to

consider. While it is true to some degree that in the global business environment businessmen

share certain values and beliefs, they are never stronger than the individual’s identity and culture.

The belief that only others have to adapt to your culture is mistaken and ineffective in business

contexts.

It is important to consider the culture of your partner in order to understand him/her and

achieve effective business communication.

Another barrier to intercultural communication is being guided by stereotypes, by a false

image or idea of a certain thing or person. ‘In intercultural communication, in particular,

it is vital to distinguish between what is part of a person’s cultural background and what

is part of their personality.’ (Gibson, 12)

Even if there is a range of beliefs, attitudes, and values common to a certain culture, one

cannot apply them to all individuals as a general rule. Here are some classic examples of

stereotypes we all know and sometimes unconsciously apply to each individual we

interact with:

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The perfect Brit should be: humble.... as the royal family, welcoming... as the

weather, relaxed...as a guardsman, generous...as a Scot, intelligible...as the Welsh.

The perfect European should be: technical ...... as a Portuguese, humble ...... as a

Spaniard, cooking ...... like a Brit, available ...... as a Belgian, controlled ...... as an

Italian, driving ...... like the French, organized ...... as a Greek, sober ...... as the

Irish, humorous ...... as a German, generous ...... as a Dutchman, discreet ...... as a

Dane, famous ...... as a Luxembourger, talkative ...... as a Finn, flexible ...... as a

Swede, patient ...... as an Austrian.

In business intercultural communication, participants need to take into account the fact that

they are dealing with individuals, and there are always exceptions to every rule.

There are cultural patterns which work as a guideline and prevent basic intercultural

misunderstandings, but at the same time one should adapt them to each individual and stay

open to new experiences and practices.

For example, the Japanese are typically seen as polite, quiet, reserved partners, who take their

time before reaching a decision, while American businessmen are well-known for the speed

with which they close a deal, but these rules do not always apply.

Here is an example of misinterpretation because of lack of cultural awareness. The

American executive often asks his partner to use his/her first name. However, this request

should not be regarded as an invitation for intimacy, but as a cultural norm. In the USA it is

common for businessmen in high-powered positions to cultivate an accessible, down-to-earth

image by promoting the use of their first name.

So, when decoding a message, it is essential to consider the cultural background attached

to the linguistic meaning. Successful interaction in Business English and in business

intercultural settings depends on the understanding of the relationship between language and

culture.

The role of intercultural communication in today’s corporate world

The globalisation process has led to the emergence of transnational networks, within and

between companies: companies spread globally, employees are sent on international

assignments; they communicate with co-workers from foreign countries, and do business with

people from various cultures. The amount and the intensity of their intercultural involvement

depend on the organisation type and its degree of international activities.

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ICTs development → changes in the manner in which people communicate, locally and

globally.

Effective communication: essential for maintaining relationships in an increasingly

interdependent world.

Shared culture makes communication, understanding, predictability, and everyday

business interactions easier and less costly. On the other hand, cultural diversity

increases the risk of misunderstanding, unpredictability, and conflict.

Intercultural (or cross-cultural) business communication: one of the most critical

factors contributing to business growth and success in today's ever more complex global

marketplace, for obvious reasons:

Globalisation of the market place and joint ventures between major corporations

involve cultural diversity and the need for effective communication between

different cultures within and among companies.

Mobility, climbing today’s corporate ladder, and even maintaining an executive

position in a company also largely depend on intercultural communication skills.

Poor intercultural communication can threaten a company’s effectiveness by

reducing its competitive edge and staff retention. The ability of businesses to acquire

intercultural competence: a condition for success in an increasingly competitive,

global business arena → Many companies and organisations provide cultural

awareness training for their leaders and employees.

3. NON-VERBAL COMMUNICATION

Non-verbal communication refers to any kind of communication not involving words. Usually,

most people think of facial expressions and gestures, but while these are important elements of

nonverbal communication, they are not the only ones. Nonverbal communication also includes

vocal sounds that are not words such as grunts, sighs, and whimpers. Even when actual words

are being used, there are nonverbal sound elements such as voice tone, or the speed or pitch of

what we say (known as paralanguage).

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Nonverbal communication can be incorporated in a person’s dress. In our society, a person

wearing a police uniform is already communicating an important message. Another example is a

man’s business suit, which is perceived by some as communicating an air of effectiveness and

professionalism. Business dress differs widely across cultures and it is influenced by both

national culture and corporate culture.

Body language

Body language is a form of nonverbal communication, which includes body posture, gestures,

and facial expressions. The study of body movement and expression is known as kinesics.

Gestures and body language communicate as effectively as words. Therefore, we should consider

it as an important part of nonverbal communication. The movements of our arms, hands, etc.

stand for another way in which we broadcast interpersonal data. We move our bodies when

communicating because, as research has shown, it helps ease the mental effort when

communication is difficult.

Physical expressions reveal many things about the person using them. For example, gestures can

emphasize a point or relay a message, posture can reveal boredom or great interest. We all use

gesture to reinforce an idea or to help describe something. Body language gives us messages

about the other person that we can interpret at an intuitive level.

We use gestures daily, almost instinctively. Usually body language occurs unconsciously.

However, as the quality of our communication depends a lot on our body language, it would be

advisable to become conscious of our body language.

Body language has different meanings in different cultures. People use and understand body

language differently, or not at all. The same gesture can mean different things to people from

different cultures. Thus, the way we interpret body language depends on the situation, culture,

relationship, etc.

One of the most basic and powerful body-language signals is when you cross your arms across

the chest. This can indicate that you are putting up an unconscious barrier between yourself and

others. It can also indicate that your arms are cold, which would be clarified by rubbing the arms

or huddling. In a friendly situation, it can mean that you are thinking deeply about what is being

discussed. But in a serious or confrontational situation, it can mean that you are expressing

opposition. In Finland, this is not an appropriate gesture, as it signifies arrogance or a close-

minded position. In Turkey, it is rude to cross your arms while facing someone.

Most gestures do not have universal meanings, but they have specific connotations in different

cultures. They are culture specific gestures that can be used as replacement for words. The same

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gesture can mean different things to people from different cultural contexts, ranging from

approving to highly offensive.

1. This gesture means ‘okay’ in the USA, ‘zero’ in France, ‘money’ in Japan, or ‘I will kill you’ in

Tunisia. In Brazil or Russia, it is totally unacceptable, being considered vulgar. In Denmark,

Norway, Spain, it can be taken as an insult.

2. The ‘thumbs-up’ sign indicates approval in France, Russia. However, it is a rude gesture in

Australia, Nigeria, and throughout the Arab world.

3. The ‘V for victory’ sign means ‘victory’, or ‘two’ in Germany, whereas in Britain or Canada it

means ‘victory’ if the palm is facing outward; it can be taken as an insult if the palm is facing

inward. In Australia, it is considered a rude gesture. In New Zealand, this sign is rude and it is

considered obscene when done with the palm facing inward.

Eye contact

Looking someone in the eye is considered as a sign of honesty and interest in some cultures.

However, in other cultures, this can be taken as a sign of disrespect.

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Firm eye contact can indicate that a person is thinking positively of what the speaker is saying or

that the other person doesn't trust the speaker enough. Lack of eye contact can indicate

negativity. Eye contact can also be a secondary and misleading gesture because cultural norms

about it vary widely. If a person is looking at you, but is making the arms-across-chest signal,

that can mean that something is bothering the person.

Disbelief is often indicated by averted gaze, or by touching the ear or scratching the chin.

Boredom is indicated by the head tilting to one side, or by the eyes looking straight at the

speaker but becoming slightly unfocused. A head tilt may also indicate a sore neck. Interest can

be indicated through posture or extended eye contact, such as standing and listening properly.

Deceit or the act of withholding information can sometimes be indicated by touching the face

during conversation. Excessive blinking or the absence of blinking is a well-known indicator of

someone who is lying. A harsh or blank facial expression often indicates outright hostility.

The length of time that it is acceptable to maintain direct eye contact varies from one country to

the next.

Failure to meet an Austrian’s or a German’s gaze will give the impression that you are not

trustworthy. Extended, direct eye contact is expected while talking.

For Australians, strong eye contact is very important, as it suggests an honest interlocutor.

Direct eye contact is also appreciated in Canada, Finland, the USA, although it should not be too

intense.

Direct eye contact is not the norm in Japan.

Most Filipinos communicate a great deal of information via eye contact and eyebrow movement.

They may great each other by making eye contact followed by raising and lowering the

eyebrows. However, staring has to be avoided, as it can be construed as an insult.

In South Korea, intermittent eye contact shows honesty and attention.

In Sweden, direct eye contact is expected. While talking to a Swede, look him/her in the eye.

In Argentina, maintaining eye contact is very important, too.

The British often do not look at the other person while they talk.

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Touch

Touch has different meanings in different cultures. In Thailand, it is offensive for strangers to

touch the top of a child’s head because the head is the home of the spirit or soul. In western

countries, it is very common to affectionately touch the top of a child’s head. In many countries,

friends of the same sex will walk hand in hand or arm in arm. In Australia this can be seen as

indicating a romantic relationship.

How often, where, and how people touch each other varies widely across cultures. Touch can

convey encouragement, appreciation, friendship, or on the contrary, it can be seen as

inappropriate and harassing. Even in business contexts there are great differences. In the USA,

the touching a female employee, whether innocently or otherwise, has led to law suits for sexual

harassment.

How often and when people shake hands also varies widely. Hugging and kissing are seen as

appropriate forms of greeting in some cultures.

In Greece, a handshake, a kiss, or an embrace can all be encountered at first meetings or among

friends.

Belgians usually shake hands with everyone in the room upon meeting and departure.

Finns usually shake hands, accompanied by eye contact and a nod of head. They do not touch in

public and are not comfortable with such gestures like a hand on the arm or shoulder.

Backslapping is considered a friendly gesture within some cultures. It is a sign of close

friendship among British Canadians, but it is rarely used among the French. Also, backslapping

is not appreciated in Finland, Japan, Sweden, Switzerland, Great Britain or Thailand.

The Chinese do not like to be touched by people they do not know. It is essentially important

when dealing with older people or people in important positions.

The Chinese nod or bow slightly when greeting another person, although handshakes are

common.

In Canada, interlocutors do not use to hold hands or touch each other. However, female French

Canadians may touch during conversation or walk arm in arm.

Physical contact during conversation, such as touching arms, hands, is the norm in Brazil.

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In Australia, physical contact during conversation is seen as inappropriate, especially between

men.

Body distance (proxemics)

Body distance, meaning how close you get to people while talking or interacting with them,

varies widely across cultures and someone breaking these unspoken rules makes us pretty

uncomfortable. While in the USA the ‘comfort zone’ is about an arm’s length, in Latin America

people tend to get closer to each other.

British Canadians are uncomfortable standing any closer to another person, whereas French

Canadians may stand slightly closer.

Brazilians are generally friendly and outgoing and communicate in extremely close proximity.

In Argentina, people communicate in close proximity, often with a hand on the other person.

Greeks also communicate in relatively close proximity.

Danes like plenty of personal space around them. Stand about two arm’s length away when

talking to a Dane.

Paralanguage

The tone of voice, the speed or pitch, are known as important factors in conveying a message.

Intonation patterns differ a lot across cultures.

Paralanguage reminds us that people convey their feelings not only in what they say, but also in

how they say it. What in one culture sounds like an uproarious argument, in another would be

considered appropriate for a reasonable conversation.

People usually think of intonation as being directly linked to the speaker's emotions. In fact,

different languages can use different intonation patterns, giving rise to cross-cultural

misunderstandings.

Bernard Comrie, in his paper Interrogatively in Russian, while analyzing Russian intonation

contours and their correlation with syntactic, semantic, and pragmatic structures, states that “[…]

reading the one language with the intonation pattern appropriate to the other can give rise to

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entirely unintentional effects: English with Russian intonation sounds unfriendly, even rude or

threatening, to the native speaker of English; Russian with an English intonation sounds affected

or hypocritical to the native speaker of Russian.” (Comrie, 1984:17)

Turn-taking

The way that turn-taking works in a conversation varies across cultures. Turn-taking in a

conversation is another form of non-verbal communication. We know when it is our turn to

speak by a number of signals that are not verbal. It is very rare in a conversation for someone to

actually tell us (in words) when it is our turn and how long we have to speak. However, there are

signals that tell us and these signals vary between cultures.

Interruptions and silence are seen as appropriate in some cultures, whereas in some others are

considered impolite and disturbing. Silence has different meanings for different cultures. For

some cultures, silence can indicate respect. There are times when one can say more by being

silent. Sometimes silence may be the best choice, as the saying says ‘Silence is golden …’ In

Australia, silence can often be interpreted as either shyness or lack of interest.

4 CULTURAL DIVERSITY AND CULTURAL PLURALISM

Cultural diversity refers to the unique characteristics that distinguish us as individuals and

identify us as members of a group or groups. It goes beyond concepts such as: race, ethnicity,

socio-economic group, gender, religion, sexual orientation, age. Cultural diversity should be

distinguished from cultural pluralism.

Cultural pluralism is about harmonious co-existence and co-operation of different cultures or

ethnic groups, each of which retains some of its cultural identity; peaceful co-existence of

diverse lifestyles, folkways, manners, language patterns, religious beliefs and practices, family

structures.

Understanding cultural diversity helps us predict the results of intercultural encounters, predict

how people in certain cultures will speak, act, negotiate, and make decisions.

Managing cultural diversity

The first step in managing diversity: recognising it and learning not to fear it.

Everyone is the product of their own culture, therefore we need to increase:

• self-awareness

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• cross-cultural awareness

Steps towards intercultural awareness:

• Admit ignorance (admit that your assumptions may be wrong) - part of the process of

becoming culturally aware. Assume differences, not similarities.

• Suspend judgments. Collect as much information as possible before evaluating a situation.

Empathise.

Celebrate diversity. E. g. companies should find ways of sharing the cultures of their

diverse workforce.

Cultural differences:

• between continents or nations

• within the same company/country/community/ family.

Typical examples of national cultural differences: behaviour and gestures

interpreted differently

Showing the thumb held upwards means

• “everything's OK”, in the U.S., Brazil

• a rude sexual sign, in some Islamic countries

If invited to dinner, leaving right after dinner is

• well-mannered, in some Asian countries (otherwise it means you have not eaten enough).

• rude, in India, Europe, South America, and North America (the guest doesn’t enjoy the

company).

Arriving half an hour late for a dinner invitation

• normal or tolerated in Mediterranean European countries, Latin America, and Africa

• very rude in Germany and the U. S.

Saying to a female friend one has not seen for a while that she has put on weight:

• a compliment in Africa, Arab cultures, and some countries in South America

• an insult in India, Europe, North America, Australia and Brazil.

Not instantly accepting an item (i.e a drink) offered to you:

• customary in Persian culture (a sort of role play: the person offering is refused several times

out of politeness before the offer is accepted).

A similar exchange in many East Asian countries

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Talking and laughing loudly in the streets and public places

• accepted, in African, South American and Mediterranean cultures

• considered rude in some Asian cultures (a mark of self-centeredness/ attention seeking)

East vs. west cultural values

Cultural Values

Expressed

West

(America & most

European countries)

East

(The Chinese and Most Asian

cultures)

Type of Logic Linear (More causal

relationships and direct

associations between A

and B)

Spiral (more roundabout and subtle)

Expression of

Agreement and

Disagreement

More argumentative,

willing to express

disagreement verbally

More difficult to say no even if one

means no, disagreement expressed

nonverbally

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Communication of

Information

More meaning is in the

explicit, verbal

message.

Use of direct language

Meaning is often implied or must be

inferred

Use of indirect language patterns

Expression of

Honesty

More overt, one is

more likely to ask the

person to "speak their

mind" or "get it out on

the table"

Subtle, nonverbal

Expression of Self "I"-oriented

Sender-oriented

"We"-oriented

Receiver-sensitive

Thinking

Orientation

More rule based or

based on application of

abstract principles such

as regulations or laws

Tends to take context and the

specific situation into account in

rule interpretation

The Individual Has to have rights and

greater need for

autonomy and

individual achievement

Group duty

preservation of harmony

Nature of the

Business

Relationship

Less important, tend to

substitute relationship

for written agreement,

superficial, easy to

form, not long lasting

Most important business cannot

occur until relationship if sound,

written agreement secondary to

quan xi, hard to form, long lasting

Conflict

Resolution

Trial or confrontation,

use of lawyers and

courts

More mediation though trusted third

parties

Time Sense

During Meetings

Be on time and end on

time.

Appointments less driven by exact

start and end times

Conflict results Perception of two

states: win or lose

Win-Win

To lose is to win

Lose in order to win

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Cultural differences

Consider the following conversations:

Situation One:

American: "Hi, how are you?"

Foreign Student: "I am well. I'm glad you asked about me."

American: "Well, I've got to go now, see you later."

The foreign student had not yet learned that, "How are you?" is probably just an extension of

"Hi," and "See you later," is another way of saying good-bye.

Situation two:

"My worst experience in graduate school in the United States was working on team projects with

Americans," said a graduate student from Japan. "I learned a lot while working with my

American friends in graduate school," said a graduate student from Germany.

Friction may also arise between two persons of different cultures when one or both have little

knowledge of the other's background.

Situation Three:

In his booklet Global Village Conversation, Dr. Reginald Smart, Director of International

Studies at State University College in Buffalo, New York tells of such a dialogue between a

Kenyan visiting the USA and an American. The American, impressed by the visitor's impeccable

accent, asked him, "How is it that your English is so good?" He meant the question as a

compliment, an acknowledgement that the Kenyan's diction was superior to his own, and he was

also expressing a genuine desire to know why this was so. The Kenyan decoded the message as

meaning, "I can't understand how someone from such a primitive, backward country could be so

well-educated." He answered, very shortly, "Did anyone ever ask you that question?" meaning

that he had been brought up in an English-speaking environment and thought such a question not

only insulting but stupid. Dr. Smart adds dryly that perhaps it was just as well that the questioner

didn't know how to decode the reply.

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Cultural mistakes

Tina (originally from Malaysia): I have worked with a number of Fijians and sometimes I would

touch their curly hair and tell them how nice and soft it feels. Then one day, I found out that in

their culture, you’re not supposed to touch people on the head—only the chief can do that.

Sala (originally from Fiji): When I came here to Australia years ago, people at work would feel

my hair. It made me uncomfortable. We don’t go around touching people on the head in my

Fijian culture. But not just that…if we walk into a room and there are people sitting on the floor,

we always excuse ourselves and stoop a bit as we walk past them so we’re not towering so much

over them. We also avoid reaching near their head for something.

Later on, when they found out, they stopped touching my hair. They were curious about how my

hair feels as it’s very curly.

Mary (originally from Ireland): In the Fijian culture touching hair is NOT done. I’m guilty of

having done this on many occasions, because I have been friends with Fijians at work. I would

run my fingers through their hair and say ‘How I love your hair!’ or something like that. Never

for a minute did I think that I was making my friends uncomfortable.

(http://sielearning.tafensw.edu.au)

The international manager

Being able to handle the cultural dimension represents the biggest challenge while working

abroad.

In international business, there are two well-known rules:

1) The seller adapts to the buyer

2) The visitor is expected to observe local customs

The second of these rules significantly shapes the international manager when he functions in a

new culture. Adapting to the local culture may be an important step in successfully handling

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cultural differences. We are all quite familiar with the famous saying ‘When in Rome, do as the

Romans’, or its Chinese alternative ‘Enter village, follow customs’.

Today more and more managers and specialists move around the world, as their companies

expand their operations worldwide. The international manager who, lives in several countries,

operates across national borders, is multilingual and multifaceted. He adapts to the new country

and culture, observes behaviors, local customs, traditions and cultural norms of the host country

in order to become a successful international manager.

Misunderstandings between cultures always exist and if business people are not aware of them,

even the most promising business deal can fall apart. Poor adjustment to the host country may

lead to business failure.

Culture shock

The term “culture shock” - first used in literature by Finnish-Canadian anthropologist Kalervo

İberg in 1960 in Practical Anthropology: “Cultural Shock: adjustment to new cultural

environments. Culture shock is precipitated by the anxiety that results from losing all our

familiar signs and symbols of social intercourse. These signs or cues include the thousand and

one ways in which we orient ourselves to the situations of daily life”.

Culture shock represents an issue that has to be considered especially in the context of today’s

increasing number of expatriates (including employees on international assignments) due to:

• the international growth of companies

• the building of strategic alliances and networks

• cross-cultural mergers and acquisitions, etc.

People tend to judge the visual aspects of a culture (behaviour, language, customs) on the basis

of their own values and beliefs. The result: anxiety.

Hofstede’s definition of culture shock: a “state of distress following the transfer of a person to an

unfamiliar cultural environment”, which may be accompanied by physical symptoms.

Other definitions: disorientation/ helplessness produced by the direct exposure to a different

culture/a state of distress after an initial enthusiasm.

A broader definition: the whole stressful process of adaptation (acculturation), the changes

determined by continuous first-hand contact (maintained over a period of time) between

individuals from different cultures. First-hand contact with other cultures exposes people to

stress that frequently leads to culture shock.

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Acculturation is both a state (the extent of adaptation to a foreign culture) and a process (the

change over time).

AVOIDING CROSS-CULTURAL MISUNDERSTANDINGS IN GLOBAL BUSINESS

When "Yes" means "No" or "Maybe"

An American businesswoman comes away from a meeting delighted; she finally got her

Japanese supplier to agree to a price. A few days later, she receives questions about price. It’s

almost as if she imagined the meeting. "What's going on here?" she asks. "We agreed on the

price already, didn't we?"

The businesswoman recalls all the Um-hmms and Yesses she heard in the meeting. "They agreed

to the price, they said yes," she mutters to herself. "They even nodded and smiled."

Welcome to the world of intercultural business communication--a world fraught with frequent

misunderstandings, frayed tempers and mistrust. This American Businesswoman is not the first

or last to feel frustrated in this way. Other people have also misunderstood a "yes" response.

The businesswoman needs to understand that irrespective of language, different cultures

communicate in different ways.

Good communication American style is to say what you mean precisely, in as straightforward a

manner as possible. Be direct, get to the point, say what the bottom line is. For other cultures,

this style is rude, abrasive and self-centred.

Many cultures--including Japanese, go to great lengths not to be direct. The risk of disharmony

with other group members is too great to be outspoken. It’s better to agree first and negotiate

afterwards than to blatantly disagree. In our opening scenario, the Japanese supplier appeared to

say yes, but continued to negotiate a price, days after the supposed agreement.

Direct communicators like Americans in general, consider this indirectness deceptive, two-faced

and lacking in integrity. What do you think?

Goals of Communication:

The goals of communication vary across culture and languages. In the US, speech is often used

to demonstrate eloquence, power or lack thereof. The presidential debates are good examples of

this. So too are the expressions "For the sake of argument" or "I'll play the devil’s advocate

and..."

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But in many Asian cultures, the goal of communication is to achieve consensus of opinion and to

promote group harmony. "Yes" can mean "no," "maybe," or even "we've got to think a little

more about this and we don't want to fall out with you."

Styles of Communication:

So how do you know when yes really means no? Simply listen to the silent messages and read

the invisible words.

US culture, with its long tradition of rhetoric, values verbal messages greatly. Other cultures are

more sensitive to non-verbal means of communication, such as:

Misunderstandings and blunders result from failing to recognize and understand many forms of

non-verbal communication. Going back to our opening scenario, the businesswoman remembers

the nods and smiles. But what did they mean in the context of that business meeting?

Not what the American businesswoman thought. They meant disagreement, displeasure,

uncertainty. The lesson to be learnt here is that similar gestures and facial expressions are often

used differently across cultures. The meaning of a smile is not universal. Neither is a frown.

AVOID MISUNDERSTANDINGS IN COMMUNICATING ACROSS CULTURES:

1. Be conscious of body language and non-verbal messages:

What message is communicated in the smiles, frowns, head movements or silence?

2. Watch eye contact:

Reserve judgment on the correct amount of eye-contact. Some cultures encourage plenty, others

frown upon it. You may have to adjust the amount of eye contact according to the status of the

person you're talking to.

3. Listen without interrupting:

Americans are often considered too talkative. People from other cultures may interpret many

interruptions as disrespectful.

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4. Summarize what you hear often:

Keeping in mind point 3, clarify what you think you have heard, rephrasing as simply as

possible.

5. Speak slowly, enunciate and avoid idioms:

Only 5% of the world population speaks English as a first language. You may be doing business

with a person who speaks fluent English but who has difficulty understanding your accent, the

idioms, jargon or slang you use. Remember, the simpler the English, the better.

VARIATIONS AMONG RULE-BASED CULTURES

Business communication styles can differ noticeably even among rule-based cultures, and

similarly among relationship-based cultures.

Consider, for example, a typical business presentation in which the speaker is trying to attract

funding for a business venture. The presentation would have a very different character in the

United States than in Germany, even though both countries have strongly rule-based cultures.

The American speaker begins with a small joke to “break the ice,” while this is inappropriate in

Germany. Germans wish to be reassured by the professionalism and seriousness of the speaker.

Humor suggests casualness that might translate into an ill-considered undertaking. The

American’s slides contain flashy visuals with such phrases as “fantastic opportunity,” which

strike the Germans as childish. They prefer graphs and charts to reassure them that proper market

research has been conducted. These differences are due to the fact that Germany is an uncertainty

avoiding culture, while the United States is not. Indeed, the American audience probably

contains venture capitalists who are willing to fund risky startups, while the German audience is

more likely to consist of stolid bankers. The desire for security and predictability go far beyond

the business meeting. Germans pay a premium for high-quality products that are less likely to

break down, and they invest heavily in a highly-engineering physical and social infrastructure on

which they can rely.

The American presentation could also cause problems in Scandinavia. The speaker delivers a

hard sales pitch, sprinkled with buzz words and such terms as “aggressive,” while Scandinavians

prefer a low-key presentation couched in plain language. The American approach reflects a

“masculine” culture that values competition and aggression, whereas Scandinavian culture is

“feminine” and emphasizes cooperation more than competition.

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Western Europeans make much of their different styles, but one should see them as variations on

low-context, logic-based communication. It is true that the British are normally reserved and

understated, while the French gave us the very word frank (which refers to the Franks, an old

word for the French). Yet British can deliver a devastating comment with scarcely an inflection

of the voice. If French and Italians become animated or emotional in a business meeting, one

must bear in mind that Descartes was French and Galileo was Italian, and at the end of the day

the decision is likely to reflect the logic and pragmatism of a Glaswegian.

The situation changes somewhat as one moves east. Russian society, for example, is essentially

rule-based, but business partners may find it more important to feel comfortable with each other

than to get the financials right. Business people from abroad should be particularly cognizant of

this, due to the uncertainty-avoiding culture and the tendency of Russians to feel apprehensive

about foreigners. Frequent references to mutual Russian friends and contacts can be reassuring,

as can participating in such rituals as vodka drinking and banya, the Russian sauna.

(http://ba.gsia.cmu.edu/jnh/businesscommunication.pdf)

SOME INTERCULTURAL BLUNDERS

Although unpleasant, intercultural mistakes are a humorous means of understanding the impact

poor cultural awareness or translations can have on a product or company when doing business

abroad.

Below there are a few classic cross cultural blunders:

1. Orange New!

During its 1994 launch campaign, the telecom company Orange had to change its ads in

Northern Ireland. "The future's bright … the future's Orange." That campaign is an advertising

legend. However, in the North the term Orange suggests the Orange Order. The implied message

that the future is bright, the future is Protestant, loyalist...didn't sit well with the Catholic Irish

population.

2. The Swedish furniture giant IKEA somehow agreed upon the name "FARTFULL" for one of

its new desks.

IKEA sells this workbench as the FARTFULL.

In Swedish, fartfull means ‘speedy’ and maybe the word was used to suggest

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mobility. However, in English, fartfull means ‘full of farts’. (fart – an escape of gas from the

bowels)

3. GPT New!

In 1988, the General Electric Company (GEC) and Plessey combined to create a new

telecommunications giant. A brand name was desired that evoked technology and innovation.

The winning proposal was GPT for GEC-Plessey Telecommunications. A not very innovative

name and not suggestive of technology and a total disaster for European branding. GPT is

pronounced in French as “J’ai pété” or “I've farted”.

4. In the late 1970s, Wang, the American computer company could not understand why its

British branches were refusing to use its latest motto "Wang Cares". Of course, to British ears

this sounds too close to "Wankers" which would not really give a very positive image to any

company. (wanker – a very stupid and unpleasant person, usually a man)

5. Port Wallhamn

Port Wallhamn is a Swedish port. The companies that surround it used to give their employees

ties with the logo "W" and an anchor. The combination forms a very nice rebus for Wanker,

much to the embarrassment of the British workers who had to wear it.

6. Pepsi

Not to be outdone by Coke when Pepsi started a marketing campaign in Taiwan, the translation

of the Pepsi slogan "Come Alive with the Pepsi Generation" came out as "Pepsi will bring your

ancestors back from the dead."

7. Chevy Nova

Years ago Chevrolet couldn't figure out why the Nova, a practical little economy car, wasn't

selling well in Mexico. After the company figured out that "no va" means "it won't go" in

Spanish, it renamed the car.

8. Electrolux

Scandinavian vacuum manufacturer Electrolux used the following in an American ad campaign:

Nothing sucks like an Electrolux. But in America if something 'sucks' it means it is really bad.

9. In 2002, Umbro the UK sports manufacturer had to withdraw its new trainers (sneakers)

called the Zyklon. The firm received complaints from many organisations and individuals as it

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was the name of the gas used by the Nazi regime to murder millions of Jews in concentration

camps.

10. Honda introduced their new car "Fitta" into Nordic countries in 2001. If they had taken the

time to undertake some cross cultural marketing research they may have discovered that "fitta"

was an old word used in vulgar language in Swedish, Norwegian and Danish. In the end they

renamed it "Honda Jazz".

11. Pictures or symbols are not interpreted the same across the world: staff at the African port of

Stevadores saw the "internationally recognised" symbol for "fragile" (i.e. broken wine glass) and

presumed it was a box of broken glass. Rather than waste space they threw all the boxes into the

sea!

12. A famous drug company marketed a new remedy in the United Arab Emirates. To avoid any

mistakes they used pictures. The first picture was of someone ill, the next picture showed the

person taking the medication, the last picture showed them looking well. What they forgot is that

in the Arab world people read from right to left!

(http://www.kwintessential.co.uk/cultural-services/articles/crosscultural-marketing.html)

(http://www.i18nguy.com/translations.html)

(http://www.learnenglish.de/mistakes/HorrorMistakes.htm)

Coca-Cola wanted Chinese characters for a phonetic equivalent of Coca-Cola, so it chose Ke

Kou Ke La, which translates as ‘bite the wax tadpole’ or ‘female horse stuffed with wax’

depending on the dialect.

In Taiwan, the translation of the Pepsi slogan ‘Come alive with the Pepsi generation’ was

translated as ‘Pepsi will bring your ancestors back from the dead.’

In a Bucharest hotel lobby: ‘The lift is being fixed for the next day. During that time we regret

that you will be unbearable.’

On a menu of a Swiss restaurant: ‘Our wines leave you nothing to hope for.’

At a Hong Kong dentists: ‘Teeth extracted by the latest Methodists’

In a Greek tailors: ‘Order your summer suit. Because is big rush we will execute customers in

strict rotation.’

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In a Copenhagen airline office: ‘We take you bags and send them in all directions.’

In a Acapulco hotel: ‘The manager has personally passed all the water served here.’

(Source: Jandt, 2001, Intercultural Communication: An Introduction)

CASE STUDIES

Case Study 1: Cooling Your Heels In New Delhi

Richard was a 30 year-old American sent by his Chicago-based company to set up a buying

office in India. The new office's main mission was to source large quantities of consumer goods

in India: Cotton piece goods, garments, accessories and shoes as well as industrial products such

as tent fabrics and cast iron components.

India's Ministry of Foreign Trade had invited Richard's company to open this buying office

because they knew it would promote exports, bring in badly-needed foreign exchange and

provide manufacturing knowhow to Indian factories.

Richard's was in fact the first international sourcing office to be located anywhere in South Asia.

The MFT wanted it to succeed so that other Western and Japanese companies could be

persuaded to establish similar procurement offices.

The expatriate manager decided to set up the office in the capital, New Delhi, because he knew

he would have to meet frequently with senior government officials. Since the Indian government

closely regulated all trade and industry, Richard often found it necessary to help his suppliers

obtain import licenses for the semi-manufactures and components they required to produce the

finished goods his company had ordered.

Richard found these government meetings frustrating. Even though he always phoned to make

firm appointments, the bureaucrats usually kept him waiting for half an hour or more. Not only

that, his meetings would be continuously interrupted by phone calls and unannounced visitors as

well as by clerks bringing in stacks of letters and documents to be signed. Because of all the

waiting and the constant interruptions, it regularly took him half a day or more to accomplish

something that could have been done back home in 20 minutes.

Three months into this assignment Richard began to think about requesting a transfer to a more

congenial part of the world - "somewhere where things work." He just could not understand why

the Indian officials were being so rude. Why did they keep him waiting? Why didn't the

bureaucrats hold their incoming calls and sign those papers after the meeting so as to avoid the

constant interruptions?

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After all, the government of India had actually invited his company to open this buying office.

So didn't he have the right to expect reasonably courteous treatment from the officials in the

various ministries and agencies he had to deal with?

Case study 2

Mei Ling is a student in the Faculty of Business and Economics. When she thought about people

in her home town she remembered that she had noticed that in Kuala Lumpur the expatriate

community tended to stick together. They lived near each other and socialised with each other.

Most of the expats did not spend time with Malaysians or make close friends except with other

Australians or Americans.

Adam is a local student in the Faculty of Business and Economics. He thought about the

overseas students who had been at his school. They all hung around together, made friends with

each other and didn’t seem to make much effort to mix with the Australian students.