Description
In today’s multicultural global business community, cultural differences can often interfere with the successful completion of the various international business projects. In order to avoid cultural misunderstandings that may lead to failure in business, the need for cultural awareness and sensitivity has become increasingly important.
535
THE IMPORTANCE OF CROSS-CULTURAL BUSINESS
TRAINING
OZANA ALEXANDRA STR?U?, MANUELA FLORENTINA ST?ICU?
”TIBISCUS” UNIVERSITY OF TIMI?OARA, FACULTY OF ECONOMICS
1/A Daliei Street, Timi?oara. 300558, [email protected], [email protected]
Abstract:
In today’s multicultural global business community, cultural differences can often
interfere with the successful completion of the various international business
projects. In order to avoid cultural misunderstandings that may lead to failure in
business, the need for cultural awareness and sensitivity has become increasingly
important. This paper aims at emphasizing the importance of cross-cultural training
by analyzing some of the major contributions to the field, while providing a few
examples of cross-cultural blunders that have led to some comical or even
catastrophic outcomes in international business.
Key words: cross-cultural awareness, cultural values, cross-cultural blunders
J EL classification: Z10
In the global marketplace, knowledge and skills not only mean power, but they
could also mean survival. It is estimated that more than half of all international joint
ventures fail within two or three years. The most frequent reason is cultural the lack of
cultural awareness and the lack of cultural competency - not the lack of technical or
professional expertise. Therefore, any manager or businessperson should
understand the need for cultural awareness and sensitivity before deciding to go
global.
Developing global cultural competency is one of the most challenging aspects
of working globally. Managing the very different work and management styles that
companies face across geographies, businesses, functions and projects can be
intimidating. What is effective in one culture may be ineffective, or even
inappropriate, in other cultures.
An effective manager should be able to recognize and adapt to different work
styles and cultures. A good collaboration with partners coming from a different culture
requires a free flow of accurate information and open, productive work relationships.
It is generally agreed that culture is behind peoples’ behavior on the job or in a
business context. Often without realizing it, culture is the one influencing peoples’
simplest actions: how close they stand, how loud they speak, how they deal with
conflict etc.
Culture in general is concerned with beliefs and values on the basis of which
people interpret experiences and behave, individually and in groups. Broadly and
simply put, "culture" refers to a group or community of people sharing common
experiences that shape their understanding of the world.
The same person, thus, can belong to several different cultures depending on his
or her birthplace, nationality, ethnicity, family status, gender, age, language, education,
physical condition, sexual orientation, religion, profession, and also the place of work
and its corporate culture.
Culture could be regarded as the "lens" through which people perceive the
world. It basically determines what they see, how they interpret what they see, and how
they express themselves accordingly.
536
National cultures can be described according to the analysis of Geert Hofstede,
who conducted the most comprehensive study of how values in the workplace are
influenced by culture. From 1967 to 1973, while working at IBM as a psychologist, he
conducted a research project into national culture differences across its subsidiaries in
64 countries. He collected and analyzed data from over 100,000 individuals and
developed a model that identifies four primary dimensions to differentiate cultures, to
which he added a fifth one later on.
Hofstede’s five dimensions are: power distance, individualism, masculinity,
uncertainty avoidance, and long-term orientation. (http://www.geert-hofstede.com/)
Power Distance– refers to a country’s degree of social equality or inequality.
The power distance index measures the extent to which the less powerful members of
an organization or institution accept and expect the fact that power is distributed
unequally. High power distance in a country indicates big social inequalities between
people in terms of power and wealth. Low power distance in a country indicates small
social differences in terms of power and wealth. It is characteristic for countries with
an emphasis on equality and opportunity for everyone.
I ndividualism– is the opposite of collectivism and they refer to the degree to
which individuals are integrated into groups. On the individualist side, we find
societies in which the ties between individuals are loose and everyone is expected to
look after him/herself. On the collectivist side, we find societies in which people are
integrated into strong, cohesive groups. A high individualism index indicates that
individuality and individual rights are dominant in a society. A low individualism
index indicates societies of a more collectivist nature, with close ties between
individuals.
Masculinity – refers to the distribution of roles between genders. A high
masculinity index indicates the country experiences a high degree of gender
differentiation. In these cultures, males dominate a significant portion of the society
and power structure, with females being controlled by male domination. A low
masculinity index indicates the country has a low level of differentiation and
discrimination between genders. In these cultures, females are treated equally to males
in all aspects of the society.
Uncertainty avoidance – deals with a society’s tolerance for uncertainty and
ambiguity. A high uncertainty avoidance index indicates the country has a low
tolerance for uncertainty and ambiguity. This creates a rule-oriented society that
institutes laws, rules, regulations, and controls in order to reduce the amount of
uncertainty. A low uncertainty avoidance index indicates the country is less concerned
with uncertainty and ambiguity and shows more tolerance for a variety of opinions.
This creates a less rule-oriented society, where change is accepted easier, more and
greater risks are taken.
Long-Term Orientation – is the fifth dimension added by Hofstede after
creating and distributing across 23 countries a Chinese value survey in order to
determine the difference in thinking between the East and the West. Long-term
orientation focuses on the degree to which a society embraces long-term devotion to
traditional values. A high long-term orientation index indicates the country highly
embraces the values of long-term commitments and respect for tradition, supporting a
strong work ethic where long-term rewards are expected as a result of today’s hard
work. A low long-term orientation index indicates the country does not embrace the
concept of long-term, traditional orientation. In this culture change can occur more
rapidly as long-term traditions and commitments do not become impediments to
change.
537
In addition to Hofstede’s five dimensions, literature has also revealed a
different approach to some of them by Fons Trompenaars, and another two socio-
cultural dimensions added by Aycan et.al.
Where Hofstede distinguishes between individualism and collectivism,
Trompenaars breaks down this distinction in two more dimensions: universalism
versus particularism and individualism versus communitarianism. Where Hofstede
distinguishes between long and short-term orientation, Trompenaars identifies yet
another two dimensions: sequential versus synchronic and inner versus outer time.
The two socio-cultural dimensions added by Aycan et.al. are paternalism and
fatalism. In a paternalistic relationship, the role of the superior is to provide guidance
and protection and the role of the subordinate, in return, is to be loyal and deferential
to the superior. On the other hand, fatalism is the belief that it is not possible to fully
control the results of one’s actions and, therefore, trying too hard to achieve something
and making long-term plans are not always worthwhile efforts.
Cultural patterns on the job and in a business context reflect cultural patterns in
the wider society. Thus, it is only natural that project management techniques and
training packages have been developed almost exclusively in individualist countries,
namely the USA. However, they are based on assumptions that may not stand in
collectivist cultures. We could assume, at large, that Western countries tend to be more
individualist, as opposed to the more collectivist Eastern ones. There are also other
major differences to be considered. Here are some of them in the following table:
Value differences between Western and Eastern cultures
Western Cultural Values Eastern Cultural Values
Individualism
Achievement
Equality/Egalitarianism
Winning
Guilt (internal self-control)
Pride
Respect for results
Respect for competence
Time is money
Action/Doing
Systematic/Mechanic
Tasks
Informal
Directness/Assertiveness
Future/Change
Control
Specific/Linear
Verbal
Collectivism/Group
Modesty
Hierarchy
Collaboration/Harmony
Shame (external control)
Saving face
Respect for status/Ascription
Respect for elders
Time is life
Being/Acceptance
Humanistic
Relationship/Loyalty
Formal
Indirectness
Past/Tradition
Fate
Holistic
Non-verbal
Source: Adaptation from Kohls (1981); Marquardt and Kearsley (1999)
According to communication experts, “it is crucial for today's business
personnel to understand the impact of cross-cultural differences on business, trade and
internal company organization. The success or failure of a company, venture, merger or
acquisition essentially depends upon people. If these people are not cross-culturally
aware then misunderstandings, offence and a break down in communication can occur.
The need for greater cross-cultural awareness is heightened in our global economies.
Cross-cultural differences in matters such as language, etiquette, non-verbal
communication, norms and values can lead to cross cultural blunders. Having a poor
538
understanding of the influence of cross cultural differences in areas such as
management, PR, advertising and negotiations can eventually lead to blunders that can
have damaging consequences.” (http://www.kwintesential.co.uk)
In order to emphasize the importance of cross-cultural awareness and sensitivity,
we will further present a few examples of cross-cultural blunders that we have selected
from a wide range throughout the internet.
When trying to sell their toothpaste in Southeast Asia, Pepsodent claimed that it
“whitens your teeth”. After their failure to sell it, they found out that the locals chew
betel nuts to blacken their teeth, which they find attractive.
A company advertising eyeglasses in Thailand featured a variety of cute animals
wearing glasses, not taking into account the fact that in Thailand animals are considered
a form of low life and no self respecting Thai would wear anything worn by animals.
The soft drink Fresca was being promoted by a saleswoman in Mexico. She was
very surprised of always being greeted with laughter and later found out that in
Mexican, “fresca” is slang for “lesbian”.
When President George Bush went to Japan with Lee Iacocca and other
American business magnates, and directly made explicit and direct demands on
Japanese leaders, they violated Japanese etiquette. To the Japanese (who use high
context language) it is considered rude and a sign of ignorance or desperation to lower
oneself to make direct demands. Some analysts believe it severely damaged the
negotiations and confirmed to the Japanese that Americans are barbarians.
When a soft drink was introduced into Arab countries, the Arabs didn’t buy it
because the label had six-pointed stars on it and they interpreted it as pro-Israeli. When
they printed another label in ten languages, the Arabs wouldn’t buy again because one
of them was Hebrew.
When they first marketed their products in Mexico, Parker Pen Company used a
slogan saying: “It won’t leak in your pocket and embarrass you”. Unfortunately, when
translating their slogan, they thought the Spanish word “embarazar” means “to
embarrass” and so their ads claimed that Parker Pens won’t leak in your pocket and
impregnate you.
In 1996, Matsushita Electric, a Japanese PC company, included a Panasonic web
browser with their products. Panasonic licensed the classic character Woody
Woodpecker to be used as their spokesman. In response to this, the marketing team
named the computers “The Woody.” In addition, the PC featured touch screen
capability. The day before the huge marketing campaign, Panasonic stopped the launch.
Why? The slogan sounded like this: “Touch Woody – The Internet Pecker.”
Poor translation is also a cause of cross-cultural blunders, for instance, a note on
a Bangkok dry cleaner’s saying: “Drop your trousers here for best results” or a sign at a
Budapest zoo saying: “Please do not feed the animals. If you have any suitable food,
give it to the guard on duty.”
Poor cross-cultural awareness has a lot of comical consequences, but sometimes
unfortunately, consequences can be very serious. Here is such an example: at the end of
the 1990s, Korean Air had more plane crashes than almost any other airline in the
world. The cause was not that they had old planes or badly trained pilots, but one
residing in a very significant cross-cultural difference. Korean Air was flying Boeing
and Airbus modern and complex planes, designed to be flown by two equals. But
Korean co-pilots could not possibly correct the leading pilot because of a very strong
cultural legacy: as Korean culture is hierarchical, one is obliged to be deferential toward
his elders and superiors in an unimaginable way for Western cultures. Flying a plane by
two equals works beautifully in low power distance cultures, where hierarchies are
irrelevant, but in cultures that have high power distance, it is very difficult.
539
CONCLUSION AND RECOMMENDATIONS
In today’s multicultural global business community, cultural differences can
often interfere with the successful completion of the various international business
projects. In order to avoid cultural misunderstandings that may lead to failure in
business, the need for cultural awareness and sensitivity has become increasingly
important. Besides technical expertise, global businesses can succeed through effective
leadership, cross-cultural awareness and mutual respect, a good cross-cultural
communication. Without all of these conditions being met, they are destined to fail.
Nowadays, because of the many saturated domestic markets, going global has
become an imperative in order to survive and succeed in business. And when going
global, managers must possess very good knowledge of the culture where they choose
to expand or market their products.
As a result, the last decades have witnessed a strong development of cross-
cultural business training. Many companies, such as IBM in the 1960s, have chosen to
provide such training internally, but lately there have appeared a lot of specialized
companies and institutions providing cross-cultural expertise, along with a wide variety
of websites offering cross-cultural advice, some of them even free of charge. Specialty
literature has also become abundant, along with numerous studies and surveys
undertaken in the field.
Therefore, the possibility to access good quality cross-cultural training is now in
every company’s reach. It is only up to each of them to make the appropriate choice
according to their need, their goals and their financial means. Going global without an
appropriate cross-cultural training only an adds extra risk to the inherent risks of
expanding and developing a business.
REFERENCES
1. Aycan, Z.; Kanungo, R.N. et. al. – Impact of culture on human resource
management practices: a ten-country comparison, Applied Psychology: An
international Review 49(1), 2000
2. Hofstede, G. – Culture’s consequences: comparing values, behaviors,
institutions, and organizations across nations, Thousand Oaks: Sage
Publications, 2000
3. Marquardt, M.J.; Kearsley, G – Technology-based learning, Boston: St. Lucie
Press, 1999
4. Trompenaars, F.; Hampden-Turner, C. – Riding the waves of culture:
understanding diversity in global business, New York: McGraw Hill, 1998
5. www.clearlycultural.com
6. http://www.filination.com/blog/2009/05/27/considering-cross-cultural-
differences
7. http://thevertexblog.com/cortex/cross-cultural-marketing-disasters
8. http://www.geert-hofstede.com/
9. http://www.kwintessential.co.uk
10. http://www.proz.com/translation-articles/1909/1/Cross-Cultural-Marketing-
Blunders
11. http://denisehummel.worldpress.com/2010/10/03/ten-cross-cultural-blunders-to-
remember
doc_364960772.pdf
In today’s multicultural global business community, cultural differences can often interfere with the successful completion of the various international business projects. In order to avoid cultural misunderstandings that may lead to failure in business, the need for cultural awareness and sensitivity has become increasingly important.
535
THE IMPORTANCE OF CROSS-CULTURAL BUSINESS
TRAINING
OZANA ALEXANDRA STR?U?, MANUELA FLORENTINA ST?ICU?
”TIBISCUS” UNIVERSITY OF TIMI?OARA, FACULTY OF ECONOMICS
1/A Daliei Street, Timi?oara. 300558, [email protected], [email protected]
Abstract:
In today’s multicultural global business community, cultural differences can often
interfere with the successful completion of the various international business
projects. In order to avoid cultural misunderstandings that may lead to failure in
business, the need for cultural awareness and sensitivity has become increasingly
important. This paper aims at emphasizing the importance of cross-cultural training
by analyzing some of the major contributions to the field, while providing a few
examples of cross-cultural blunders that have led to some comical or even
catastrophic outcomes in international business.
Key words: cross-cultural awareness, cultural values, cross-cultural blunders
J EL classification: Z10
In the global marketplace, knowledge and skills not only mean power, but they
could also mean survival. It is estimated that more than half of all international joint
ventures fail within two or three years. The most frequent reason is cultural the lack of
cultural awareness and the lack of cultural competency - not the lack of technical or
professional expertise. Therefore, any manager or businessperson should
understand the need for cultural awareness and sensitivity before deciding to go
global.
Developing global cultural competency is one of the most challenging aspects
of working globally. Managing the very different work and management styles that
companies face across geographies, businesses, functions and projects can be
intimidating. What is effective in one culture may be ineffective, or even
inappropriate, in other cultures.
An effective manager should be able to recognize and adapt to different work
styles and cultures. A good collaboration with partners coming from a different culture
requires a free flow of accurate information and open, productive work relationships.
It is generally agreed that culture is behind peoples’ behavior on the job or in a
business context. Often without realizing it, culture is the one influencing peoples’
simplest actions: how close they stand, how loud they speak, how they deal with
conflict etc.
Culture in general is concerned with beliefs and values on the basis of which
people interpret experiences and behave, individually and in groups. Broadly and
simply put, "culture" refers to a group or community of people sharing common
experiences that shape their understanding of the world.
The same person, thus, can belong to several different cultures depending on his
or her birthplace, nationality, ethnicity, family status, gender, age, language, education,
physical condition, sexual orientation, religion, profession, and also the place of work
and its corporate culture.
Culture could be regarded as the "lens" through which people perceive the
world. It basically determines what they see, how they interpret what they see, and how
they express themselves accordingly.
536
National cultures can be described according to the analysis of Geert Hofstede,
who conducted the most comprehensive study of how values in the workplace are
influenced by culture. From 1967 to 1973, while working at IBM as a psychologist, he
conducted a research project into national culture differences across its subsidiaries in
64 countries. He collected and analyzed data from over 100,000 individuals and
developed a model that identifies four primary dimensions to differentiate cultures, to
which he added a fifth one later on.
Hofstede’s five dimensions are: power distance, individualism, masculinity,
uncertainty avoidance, and long-term orientation. (http://www.geert-hofstede.com/)
Power Distance– refers to a country’s degree of social equality or inequality.
The power distance index measures the extent to which the less powerful members of
an organization or institution accept and expect the fact that power is distributed
unequally. High power distance in a country indicates big social inequalities between
people in terms of power and wealth. Low power distance in a country indicates small
social differences in terms of power and wealth. It is characteristic for countries with
an emphasis on equality and opportunity for everyone.
I ndividualism– is the opposite of collectivism and they refer to the degree to
which individuals are integrated into groups. On the individualist side, we find
societies in which the ties between individuals are loose and everyone is expected to
look after him/herself. On the collectivist side, we find societies in which people are
integrated into strong, cohesive groups. A high individualism index indicates that
individuality and individual rights are dominant in a society. A low individualism
index indicates societies of a more collectivist nature, with close ties between
individuals.
Masculinity – refers to the distribution of roles between genders. A high
masculinity index indicates the country experiences a high degree of gender
differentiation. In these cultures, males dominate a significant portion of the society
and power structure, with females being controlled by male domination. A low
masculinity index indicates the country has a low level of differentiation and
discrimination between genders. In these cultures, females are treated equally to males
in all aspects of the society.
Uncertainty avoidance – deals with a society’s tolerance for uncertainty and
ambiguity. A high uncertainty avoidance index indicates the country has a low
tolerance for uncertainty and ambiguity. This creates a rule-oriented society that
institutes laws, rules, regulations, and controls in order to reduce the amount of
uncertainty. A low uncertainty avoidance index indicates the country is less concerned
with uncertainty and ambiguity and shows more tolerance for a variety of opinions.
This creates a less rule-oriented society, where change is accepted easier, more and
greater risks are taken.
Long-Term Orientation – is the fifth dimension added by Hofstede after
creating and distributing across 23 countries a Chinese value survey in order to
determine the difference in thinking between the East and the West. Long-term
orientation focuses on the degree to which a society embraces long-term devotion to
traditional values. A high long-term orientation index indicates the country highly
embraces the values of long-term commitments and respect for tradition, supporting a
strong work ethic where long-term rewards are expected as a result of today’s hard
work. A low long-term orientation index indicates the country does not embrace the
concept of long-term, traditional orientation. In this culture change can occur more
rapidly as long-term traditions and commitments do not become impediments to
change.
537
In addition to Hofstede’s five dimensions, literature has also revealed a
different approach to some of them by Fons Trompenaars, and another two socio-
cultural dimensions added by Aycan et.al.
Where Hofstede distinguishes between individualism and collectivism,
Trompenaars breaks down this distinction in two more dimensions: universalism
versus particularism and individualism versus communitarianism. Where Hofstede
distinguishes between long and short-term orientation, Trompenaars identifies yet
another two dimensions: sequential versus synchronic and inner versus outer time.
The two socio-cultural dimensions added by Aycan et.al. are paternalism and
fatalism. In a paternalistic relationship, the role of the superior is to provide guidance
and protection and the role of the subordinate, in return, is to be loyal and deferential
to the superior. On the other hand, fatalism is the belief that it is not possible to fully
control the results of one’s actions and, therefore, trying too hard to achieve something
and making long-term plans are not always worthwhile efforts.
Cultural patterns on the job and in a business context reflect cultural patterns in
the wider society. Thus, it is only natural that project management techniques and
training packages have been developed almost exclusively in individualist countries,
namely the USA. However, they are based on assumptions that may not stand in
collectivist cultures. We could assume, at large, that Western countries tend to be more
individualist, as opposed to the more collectivist Eastern ones. There are also other
major differences to be considered. Here are some of them in the following table:
Value differences between Western and Eastern cultures
Western Cultural Values Eastern Cultural Values
Individualism
Achievement
Equality/Egalitarianism
Winning
Guilt (internal self-control)
Pride
Respect for results
Respect for competence
Time is money
Action/Doing
Systematic/Mechanic
Tasks
Informal
Directness/Assertiveness
Future/Change
Control
Specific/Linear
Verbal
Collectivism/Group
Modesty
Hierarchy
Collaboration/Harmony
Shame (external control)
Saving face
Respect for status/Ascription
Respect for elders
Time is life
Being/Acceptance
Humanistic
Relationship/Loyalty
Formal
Indirectness
Past/Tradition
Fate
Holistic
Non-verbal
Source: Adaptation from Kohls (1981); Marquardt and Kearsley (1999)
According to communication experts, “it is crucial for today's business
personnel to understand the impact of cross-cultural differences on business, trade and
internal company organization. The success or failure of a company, venture, merger or
acquisition essentially depends upon people. If these people are not cross-culturally
aware then misunderstandings, offence and a break down in communication can occur.
The need for greater cross-cultural awareness is heightened in our global economies.
Cross-cultural differences in matters such as language, etiquette, non-verbal
communication, norms and values can lead to cross cultural blunders. Having a poor
538
understanding of the influence of cross cultural differences in areas such as
management, PR, advertising and negotiations can eventually lead to blunders that can
have damaging consequences.” (http://www.kwintesential.co.uk)
In order to emphasize the importance of cross-cultural awareness and sensitivity,
we will further present a few examples of cross-cultural blunders that we have selected
from a wide range throughout the internet.
When trying to sell their toothpaste in Southeast Asia, Pepsodent claimed that it
“whitens your teeth”. After their failure to sell it, they found out that the locals chew
betel nuts to blacken their teeth, which they find attractive.
A company advertising eyeglasses in Thailand featured a variety of cute animals
wearing glasses, not taking into account the fact that in Thailand animals are considered
a form of low life and no self respecting Thai would wear anything worn by animals.
The soft drink Fresca was being promoted by a saleswoman in Mexico. She was
very surprised of always being greeted with laughter and later found out that in
Mexican, “fresca” is slang for “lesbian”.
When President George Bush went to Japan with Lee Iacocca and other
American business magnates, and directly made explicit and direct demands on
Japanese leaders, they violated Japanese etiquette. To the Japanese (who use high
context language) it is considered rude and a sign of ignorance or desperation to lower
oneself to make direct demands. Some analysts believe it severely damaged the
negotiations and confirmed to the Japanese that Americans are barbarians.
When a soft drink was introduced into Arab countries, the Arabs didn’t buy it
because the label had six-pointed stars on it and they interpreted it as pro-Israeli. When
they printed another label in ten languages, the Arabs wouldn’t buy again because one
of them was Hebrew.
When they first marketed their products in Mexico, Parker Pen Company used a
slogan saying: “It won’t leak in your pocket and embarrass you”. Unfortunately, when
translating their slogan, they thought the Spanish word “embarazar” means “to
embarrass” and so their ads claimed that Parker Pens won’t leak in your pocket and
impregnate you.
In 1996, Matsushita Electric, a Japanese PC company, included a Panasonic web
browser with their products. Panasonic licensed the classic character Woody
Woodpecker to be used as their spokesman. In response to this, the marketing team
named the computers “The Woody.” In addition, the PC featured touch screen
capability. The day before the huge marketing campaign, Panasonic stopped the launch.
Why? The slogan sounded like this: “Touch Woody – The Internet Pecker.”
Poor translation is also a cause of cross-cultural blunders, for instance, a note on
a Bangkok dry cleaner’s saying: “Drop your trousers here for best results” or a sign at a
Budapest zoo saying: “Please do not feed the animals. If you have any suitable food,
give it to the guard on duty.”
Poor cross-cultural awareness has a lot of comical consequences, but sometimes
unfortunately, consequences can be very serious. Here is such an example: at the end of
the 1990s, Korean Air had more plane crashes than almost any other airline in the
world. The cause was not that they had old planes or badly trained pilots, but one
residing in a very significant cross-cultural difference. Korean Air was flying Boeing
and Airbus modern and complex planes, designed to be flown by two equals. But
Korean co-pilots could not possibly correct the leading pilot because of a very strong
cultural legacy: as Korean culture is hierarchical, one is obliged to be deferential toward
his elders and superiors in an unimaginable way for Western cultures. Flying a plane by
two equals works beautifully in low power distance cultures, where hierarchies are
irrelevant, but in cultures that have high power distance, it is very difficult.
539
CONCLUSION AND RECOMMENDATIONS
In today’s multicultural global business community, cultural differences can
often interfere with the successful completion of the various international business
projects. In order to avoid cultural misunderstandings that may lead to failure in
business, the need for cultural awareness and sensitivity has become increasingly
important. Besides technical expertise, global businesses can succeed through effective
leadership, cross-cultural awareness and mutual respect, a good cross-cultural
communication. Without all of these conditions being met, they are destined to fail.
Nowadays, because of the many saturated domestic markets, going global has
become an imperative in order to survive and succeed in business. And when going
global, managers must possess very good knowledge of the culture where they choose
to expand or market their products.
As a result, the last decades have witnessed a strong development of cross-
cultural business training. Many companies, such as IBM in the 1960s, have chosen to
provide such training internally, but lately there have appeared a lot of specialized
companies and institutions providing cross-cultural expertise, along with a wide variety
of websites offering cross-cultural advice, some of them even free of charge. Specialty
literature has also become abundant, along with numerous studies and surveys
undertaken in the field.
Therefore, the possibility to access good quality cross-cultural training is now in
every company’s reach. It is only up to each of them to make the appropriate choice
according to their need, their goals and their financial means. Going global without an
appropriate cross-cultural training only an adds extra risk to the inherent risks of
expanding and developing a business.
REFERENCES
1. Aycan, Z.; Kanungo, R.N. et. al. – Impact of culture on human resource
management practices: a ten-country comparison, Applied Psychology: An
international Review 49(1), 2000
2. Hofstede, G. – Culture’s consequences: comparing values, behaviors,
institutions, and organizations across nations, Thousand Oaks: Sage
Publications, 2000
3. Marquardt, M.J.; Kearsley, G – Technology-based learning, Boston: St. Lucie
Press, 1999
4. Trompenaars, F.; Hampden-Turner, C. – Riding the waves of culture:
understanding diversity in global business, New York: McGraw Hill, 1998
5. www.clearlycultural.com
6. http://www.filination.com/blog/2009/05/27/considering-cross-cultural-
differences
7. http://thevertexblog.com/cortex/cross-cultural-marketing-disasters
8. http://www.geert-hofstede.com/
9. http://www.kwintessential.co.uk
10. http://www.proz.com/translation-articles/1909/1/Cross-Cultural-Marketing-
Blunders
11. http://denisehummel.worldpress.com/2010/10/03/ten-cross-cultural-blunders-to-
remember
doc_364960772.pdf