Description
Research Paper on Analysis of Cross-Cultural Communication Effectiveness and Management Orientation : The global environment of business has become exceedingly complex as more and more corporations and private entrepreneurs compete to expand their marketshare and differentiate their brands in the world marketplace.
Journal of Business & Management, COES&RJ-JBM
Publisher: Centre of Excellence for Scientific & Research Journalism
Online Issue: Volume1 Number 1, January 2013
International Organizations and Operations:
An Analysis of Cross-Cultural Communication Effectiveness and
Management Orientation
Ephraim Okoro, PhD
Howard University
ABSTRACT
The global environment of business has become exceedingly complex as more
and more corporations and private entrepreneurs compete to expand their market-
share and differentiate their brands in the world marketplace. Globalization has
increased consumer awareness, created new demands and standards, and made
nations more interdependent. It is now imperative that businesses in different
countries increase their sensitivity and respect for one another’s cultural
differences in order to benefit from the growth of international business in the
twenty- first century. Studies indicate that effective cross-cultural management,
communication, and negotiations should be emphasized by high-growth
multinational corporations competing for global expansion. Corporations that
have embraced appropriate acculturation strategies, employed effective cultural
awareness model, and avoided ethnocentric management style in their expansion
and growth efforts have been successful. Other studies identified the major
causes of the demise of global business ventures, citing their managers’ lack of
intercultural skills, failure to engage in cross-cultural exchange, inability to
communicate effectively in the global marketplace, unacceptable practice of
business ethics and etiquette, and absence of compromise agreement. Global
managers should establish cross-cultural training in their facilities in order to
increase effectiveness across cultures, become efficient cross-cultural negotiators,
and sensitize to the values of counterparts. This study provides an analytical
framework and recommendations for adaptation of multinational management
strategies for sustainable business competitiveness in the current wake of global
economy.
Keywords: International Organizations, Cross-Cultural Communication,
Intercultural Negotiation, Mult inational Skills, Globalization, Global Economy.
JEL Code : F4, F23, M14, Z1.
Article Type: Research Article
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
2
International Organizations and Operations: An Analysis of Cross-Cultural
Communication Effectiveness and Management Orientation
INTRODUCTION
With the globalization of economies, production and consumption
activities, and markets, it has become increasingly important that managers at all
levels develop sensitivity to cross-cultural communication, intercultural
negotiation, and decision- making. The process of making decisions, reaching
agreements, and building consensus has changed requiring an understanding of
cross-cultural communication competence. As corporations are establishing
subsidiaries, forming strategic alliances, and opening joint ventures in many parts
of the world, individuals in the professional and managerial ranks should be
trained in the skills of cross-cultural communication competencies. Recent global
trends and events are positioning business etiquette and cross-cultural
communication as critical management issues because of the increasing number of
businesses involved in multinational ventures, strategic alliances, and joint
ventures. Because of the impact of globalization, an increasing number of
corporations from many parts of the world are striving to establish global brand
and cultivate multinational consumer awareness in order to sustain their
competitive advantage. Further, the environment of business has become equally
complex and challenging as a result of cross-cultural communication, differing
standards and expectations, and issues associated with management ethics.
The twent y- first century globally- interdependent economy strongly
indicates that business leaders and international entrepreneurs provide
opportunities for their managers to travel abroad to engage in cross-cultural
communication so that they will acquire the necessary skills and orientation for
coping with cultural differences. This global exposure enables managers to relate
effectively with citizens of other countries in an effort to take advantage of the
opportunities available in culturally-diverse marketplace. Harris and Moran (2008)
noted that the corporate culture of global organizations affects how businesses
cope with competition and change whether in terms of technology or economics.
Managers operating in multinational environments must be cultural sensitive,
understand the implications of cultural synergy, and be adequately prepared for
global culture. Yu (2007) pointed out that as businesses globalize, there continues
to be a compelling need for standardization in organizational design, management
strategies, and communication patterns because managers will find themselves
faced with multiple challenges originating from domestic and cultural issues and
socio-economic systems. Adaptation is critical and essential for corporate success.
International business etiquette as defined by Chaney and Martin (2007)
refers to the manners and behaviour considered acceptable behaviour in
internationally social and business situations. In social setting, proper social
Int’l Organizations & Operations – Cross Cultural Comm.
3
behaviour includes cultural differences in making introductions, exchanging
business cards, acknowledging position and status, communicating inter-culturally,
dining practices, tipping etiquette, giving gifts, and travelling. In international
business situations, how competent and competitive firms are both domestically
and internationally and how they effectively communicate to their stakeholders
will determine how successful a firm is internationally. Furthermore, as the authors
expound, building global business relationships depends on the innate ability to
learn about other cultures and proper training to help a person adjust once he or
she is in another culture. In addition, it refers to the customs and regulations
dealing with diplomatic courtesies expected in official negotiations with persons in
various cultures. Chaney and his colleague explain that when interacting with
colleagues or counterparts of other cultures in a business or marketing context, it is
important to know their customs to ensure that an intended meaning is not
conveyed in order to avoid unintentionally offending them. Furthermore, other
scholars (O’Rourke, 2010; Cardon & Scott, 2003; Brett, 2001) see global business
etiquette as a natural outgrowth of business globalization, which in many
significant ways complicate the way people from different backgrounds in
organizational and learning contexts behave in business situations. They explain
that employees who work globally should be trained in technical knowledge, such
as import and export laws of other countries, comparative management styles, and
business protocol, etiquette, and ethics.
MULTINATIONAL CONTEXT OF MANAGEMENT
AND CROSS-CULTURAL COMMUNICATION
Management and communication scholars (Chaney & Martin 2011; Harris
& Moran, 2000) agree that international management skills are needed for the
increasing scope of global trades and investments over the past decade. A number
of the major multinational corporations have expanded their operations throughout
developed and developing nations. Some of the businesses are direct investments
and others are partnership arrangements and strategic alliances with domestic
operations. Studies indicate that independent entrepreneurs and small businesses
have started investing and competing in global marketplaces. Therefore, the
current global trend of business competitiveness strongly indicates a need for the
development of strategic framework for managing, negotiating, and
communicating across cultures in order to achieve the investment objectives of
corporations. Indeed, as Chaney & Martin (2011) pointed out, awareness and
cultural differences is increasingly significant to the success of multinational
corporations. A good understanding and appreciation of the culture in which
business is conducted can make international managers both effective and
productive. Hodgetss and Luthans (1997) noted the concerns of some
organizations when internationalization began in the 1970s that it would be
exceedingly difficult to conduct business in the same fashion around the world as a
result of cultural variations and differences. Indeed, the attempt to manage people
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
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the same way across cultures presented serious challenges to many global
businesses.
Studies conducted over the past decade stressed the importance of training
managers on cross-cultural negotiation skills as well as cross-cultural
communication competence. Globalization has become a megatrend in the present
business environment, making it extremely critical that management teams be
equipped with the appropriate global mindset and cross-cultural values in order to
effectively lead a diverse workforce. Deresky (2006) stressed the concept of
cultural convergence, the shifting of individual management styles to
accommodate the styles used in other environments and total elimination of
parochialism, stereotyping, and ethnocentrism in managing multinational
operations. An analysis of the growth of multinational corporations in the wake of
globalization (Chaney & Martin, 2011) identified several factors that have been
instrumental to the inability of managers to succeed in a global context. Chief
among these factors are ethnocentric predisposition, cultural imperialism, and
parochialism in managing a diverse or multicultural workforce. Essentially, it is
counter-productive to lead international organizations with a mindset characterized
by these types of negative values.
Recent developments show that many businesses are cultivating a global
focus by sourcing, producing, importing, or exporting their goods and services
around the globe, which makes intercultural communication and negotiation gain
substantial prominence in the international business management. Further,
international business etiquette (the expected rules of behaviour for intercultural
communication and management ) has become increasingly important because of
the mobility of people. Authors Bovee and Thill (2010) stressed that learning the
skills of proper etiquette in preparation for international assignment is one of the
critical requirements for business success in a competitive context. As the authors
stated, some behavioural rules are formal and specifically articulated and others
are informal and learned over time which influences the overall behaviour of
majority of people in a society most of the time. It is noted that as managers
appreciate, value, and respect cultural differences, they develop a better
understanding of people’s behavioural patterns which gives them a much better
understanding of how to properly interact while conducting business.
Similarly, O’Rourke (2010) identified the most common factors
contributing to managers’ failure to perform effectively in international business
assignments as the inability to understand and adapt to foreign ways of thinking
and acting as opposed to technical or professional incompetence. As interest in
participation in the global marketplace increases, managers are required to adapt to
new cultures and to become sensitive to differences among people. Bovee and
Thill (2011) added that supervisors face the challenge of acknowledging the
expected behaviours of diverse employees, multinational teams face the problem
Int’l Organizations & Operations – Cross Cultural Comm.
5
of working together closely, and businesses have the difficult task of peacefully
negotiating with international business counterparts. Thus, the suggested strategic
globalization imperative for international business undertaking requires a practical
analysis and application.
CROSS-CULTURAL NEGOTIATION: CHALLENGES AND
STRATEGIES
Developing global management skills is as demanding as applying cross-
cultural negotiation and decision- making. Managers preparing for multinational
assignments should prepare for skills in strategic negotiations and cross-cultural
interactions. The process of negotiation is culture-specific and involves a great
deal of sensitivity. Deresky (2006) noted that the ability to conduct cross-cultural
negotiations cannot be over-stated, which places global managers in a position to
learn the complexities associated with cultural nuances and values. Additionally,
Carte & Fox (2008) highlighted the inherent difficulties in international business
because of the need to understand cultural and regulatory variations. For instance,
international business etiquette requires the ability to adapt to different national
processes, patterns, and acculturations. It should be noted that competitive
positioning and long-term effective business operations in a multinational
environment involve a sound knowledge of negotiating processes and decision-
making strategies of managers from different parts of the world.
Studies have suggested the importance of international managers to
understand how culture affects negotiations with global business partners. As
Movius, Matsuura, Yan, and Kim (2006) noted, it is a gross fallacy to make the
assumption that individuals who come to negotiation meetings demonstrate “single
culture” norms, since they often have extensive international experience either
through work or education or probably from a multicultural and multilingual
family, and thus have some acquaintance with various cultures. To achieve
a desirable result in international negotiations, Salacuse (1998) stressed that global
managers should be adequately grounded in intercultural communication and
compromises. They should not only understand their own objectives in the
negotiation, but should know their parameters in the decision- making process.
They should also understand that information may be presented in different forms
and be prepared to tolerate ambiguity and a reasonable level of inconsistency. As
Chaney and Martin (2011) cited, in high-context cultures, such as Japan, meaning
is conveyed through body language, pauses, rephrasing as much as in the words
used at negotiation meetings, whereas in a high-context culture of the United
States, meaning is conveyed mainly through spoken words. In cross-cultural
negotiation, both verbal and nonverbal communication is critically important and
may affect reactions and flow of conversations. Similarly, mixed messages create
uncomfortable feelings for international managers as they may be struggling
to reconcile the inconsistencies. For instance, in the United States, direct eye
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contact is expected and is seen as a measure of honesty, trustworthiness, and
reliability. Conversely, in China and in some parts of Africa, direct eye contact is
considered rude and inappropriate. Additionally, direct eye contact with a superior
or senior person demonstrates disrespect and hostility in India. Cross-cultural
communications skills are essentials to achieving effective and productive
international negotiations. Over time, negotiations involving managers from
different backgrounds have not yielded much result because of the tone of
conversation, facial expressions and other culture-specific nonverbal cues.
Therefore, international managers should be equipped with the appropriate
knowledge and competence to manage complex situations that arise from cultural
differences.
CROSS-CULTURAL COMMUNICATION: CHALLENGES AND
STRATEGIES
Several studies (Thill & Bovee, 2011; O’Rourke, 2011) indicate a strong
correlation between effective international management and cross-cultural
communication. It is stressed that a sound intercultural communication is vital for
international managers as well as for domestic managers of multicultural and
multinational businesses. Miscommunication, misinterpretation, or
misunderstanding is more likely to take place among managers and employees
from different ethnic backgrounds and nationalities than among the managers
and people from homogenous backgrounds. The ability to communicate cross-
culturally is required of managers who aspire to succeed in global assignments.
Managers preparing to work in a domestic business with a diverse workforce or
who are preparing to work in foreign environments should be adequately flexible
and trained to adjust their communication pattern to the intended audience.
The increasing emphasis on workforce diversity in recent years makes it
extremely important that domestic and global managers should devote more time
to learning appropriate communication strategies, especially for effective
management of a diverse organization. Communication is an essential part of a
manager’s duty and it takes up much of his or her time either interpersonally or
with a group of employees. Effective intercultural communication largely
determines the success of international transactions or the performance and
productivity of a culturally diverse workforce. Communication scholars have
determined that culture is the foundation of communication, and essentially
communication conveys culture. As Deresky explained, effective cross-cultural
communication explains whether or not the receiver is from a country with a
monochromic or a polychromic time system, high-context or low-context
environment.
Furthermore, managing intercultural communication effectively in
organizations requires that managers develop cultural sensitivity, be careful in
Int’l Organizations & Operations – Cross Cultural Comm.
7
encoding their messages, thoughtful in decoding and analyzing content and
context, selective in choosing channels for transmission of messages. The
increasing mobility of workers in global markets, expansion of international joint
ventures and strategic alliances, and the presence of global entrepreneurs in
developing nations makes cross-cultural communication competence inevitable.
As businesses strive to achieve competitive advantage both domestically and
globally, equipping managers with the critical communication skills enhances
performance and improves the quality of relationships. A number of studies
indicate that cross-cultural communication skills or behaviour can be learned
to increase the effectiveness of managers with host nationals. Improved cross-
cultural communication in organizations reduces the challenges in international
management
A COMPARATIVE ANALYSIS OF GLOBAL BUSINESS ETIQUETTE
Communication scholars have emphasized the vital role of etiquette in
international management environment as well as in cross communication
situations. Managing a multicultural workforce requires a proper conduct of
oneself at all times. In today’s hectic and competitive society, etiquette might be
taken for granted or seen as outdated concept, but it affects perceptions and
decisions people make in the global context of management. It is never over-
emphasized that the ways a manager conducts himself/herself and interacts with
colleagues have a profound impact on a company’s goodwill or credibility. In
addition to effective cross-cultural communication and negotiation skills, proper
business etiquette accounts for success of domestic and global managers. Bovee
and Thill (2011) and Chaney and Martin (2011) in their analysis of the importance
of managers’ self-conduct, grooming and appearance, and comportment
consistently stated that business etiquette is a major criterion in evaluating
performance and overall success in a global workplace. Etiquette includes a
variety of behaviours, habits, and specific aspects of nonverbal communication.
Carte & Fox (2008) and Yu (2007) caution that with the tremendous surge
in global business ventures these days, it is vital to learn more about the different
cultures and behaviours around the world in order to reduce the risk of managerial
failure. To effectively adapt business etiquette to businesspersons from other
countries requires both knowledge about the culture and the ability and motivation
to adapt to different behaviours. For example, the giant retailer Wal-Mart learned
this lesson the hard way when it expanded its operations into Germany. Notably,
store clerks resisted Wal-Mart’s culture of always smiling at customers, because
some customers sometimes misunderstood and misinterpreted smiling as flirting.
Because of a number of other cultural missteps, Wal-Mart had to leave the German
marketplace (Bovee and Thill, 2011). Indeed, becoming aware and sensitive to
different countries’ business etiquette is the key to establishing good business
relationships with individuals and businesses in many countries. The significance
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
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of business etiquette is highlighted by analyzing four selected countries that have
conducted businesses in the United States over the years.
Earley (1997) notes that business etiquette in the People’s Republic of
China is the most reserved and most unlike the United States, out of the four
countries included in this cultural analysis. To the United States businessperson, a
personal relationship should be separated from business. Friendships are quickly
formed and dissolved. Hence, many view the U.S. business relationship as shallow
and short-termed, while business relationships in China are viewed as lifetime
commitments (Martin & Chaney, 2011). Further, Chinese business etiquette is
directly related to the Chinese sensitivity to face. Ting- Toomey & Kurogi (1998)
and Earley (1997) refer to face as an evaluation of a person’s credibility and self
image. The hundreds of phrases in the Chinese language describing face
demonstrate the sophistication of face and how it relates to communication
behaviours (Cardon & Scott, 2003), such as global business etiquette. The authors
further note that Chinese businesspersons employ a number of communication
strategies designed to receive face or give face to others, such as indirectness,
intermediaries, praising, requests, and shaming. In order to save face, they often
try indirectness by avoiding public confrontations. The use of intermediaries
avoids direct confrontation, especially in conflict situations, such that a contact
should always be established before representatives of business are sent to China.
They believe in a win-win negotiation strategy that allows both sides to be winners
in order to increase the strength and scope of the relationship. In addition, Cardon
and his colleague explained that Chinese businesspersons employ praise to
recognize status and position. For example, they often times make direct request
for favors because this will signal that a business relationship is firm. Finally,
Chinese businesspersons resort to shame when individuals violate the trust of a
relationship.
When conducting business in China or in the United States with a person
from China, the rules of business etiquette are controlled and determined by face
giving and taking. For example, when giving introductions, remember that the
surname comes first and the given name last. The introduction is accompanied by
a bow which is uncommon in many other cultures (Chaney & Martin, 2011). The
authors stress that out of concern for their business partners; many times, the
handshake is combined with a bow so that each culture shows the other proper
respect. Another example of how face influences Chinese business etiquette is the
importance of the business card exchange. Chinese business cards represent the
person to whom you are being introduced, so it is polite to study the card for a
while and then put it down as a sign of respect. Furthermore, Chaney and his
colleague note that, as a mark of respect and appreciation, the Chinese examine
business cards carefully and make some favorable comments while accepting
them. During meetings with Chinese, it is a common practice for them to place
business cards of others attending the meeting in front of them on the conference
Int’l Organizations & Operations – Cross Cultural Comm.
9
table in order to properly refer to names, ranks, and titles. Usually, both hands are
used when presenting and receiving cards, and they position cards strategically so
that they can be read easily.
Business etiquette in England is based on a strong sense of identity and
nationalism. The English businessperson tends to be very matter-of- fact and tends
to be very deadline oriented in business negotiations (Chaney & Martin, 2011).
Traditions and customs (etiquette) are very important to the English, as they tend
to be reserved and expect others to act accordingly. Unlike businesspersons from
the U.S., business friendships are not necessary (Morrison et al., 1994). Carte &
Fox (2008) note that because of their individualist culture, like the Americans,
they focus on the tasks set out in their job description and think it is normal for a
boss to reward individual effort. The English businesspersons’ reputation of
reserve is well deserved, thus so manifesting itself in their strict adherence to
protocol (Martin & Chaney, 2011) and their ability to confront adversity with
courage and strength of character (Harper, 1997). The author also cautions that
when conducting business in England, be careful about asking too many personal
questions too quickly, partly because it makes them nervous and partly because
they are naturally reserved in their culture. The English business person, while
having excellent manners, has “lousy” people skills.
When conducting business in England, the rules of business etiquette are
controlled and determined by the English businesspersons’ reserved character and
strong sense of identity (Harper, 1997). For example, Martin & Chaney (2011)
explain that conservative attire of excellent quality is important in England when
judging dress and appearance. There, as well as, in other European countries, dress
is an indication of social and business status. Therefore, it is important to dress
your best by selecting clothing made of quality fabrics with fine tailoring in Great
Britain. In addition, accessories should be of high quality and reflect good taste.
English inappropriate attire includes sweat suits and tennis shoes, which are
viewed as appropriate only for athletic activities. The English businesspersons’
negotiation processes also reflect their cultural characteristics; they are very formal
and polite and place great value on proper protocol and etiquette (Chaney &
Martin, 2011). In addition, the authors note that the English can be tough and
ruthless negotiators and can sometimes appear quaint and eccentric, many times
causing other cultures to underestimate their skill. Mole (1997) adds that the
English businesspersons quickly lose reserve when their basic assumptions about
themselves are challenged or questioned.
Troyanovich (1972) interpretation of business etiquette in Germany is
based on the formal culture of Germany that defines behavioural expectations in
great detail, providing its participants with the knowledge of what to do and when
to do it. Similarly, Carte & Fox (2008) noted point out that German
businesspersons respect authority and hierarchical differences. They prefer a
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
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hierarchical organizational structure because it avoids uncertainty, where power
is ensured within the organization. They are autocrats who prefer formal
communication when conducting business. In addition, they focus on personal
achievements and truth and directness are important aspects in business. Tinsley
and Woloshin (1974) add that the ideal person is one who can be relied on to do
what is expected and whose behaviour is predicable, steady, and not much
influenced by the opinions of others or by opportunity. Further, Martin and
Chaney (2011) pointed out that more recent research indicates that class status in
important to Germans, and even though all people have equal rights under the law,
in reality inequalities exist.
The German businesspersons’ strict adherence to behavioural expectations
is manifested in their standards of business etiquette. For example, being on time
for all business and social engagements is more important to the German culture
than any of the six countries surveyed in this paper (Axtell, 1998). Being only a
few minutes late for meeting can be insulting to German managers and if you are
delayed, an explanatory call is expected. In addition, the German sense of
punctuality in all situations has been recognized as one of the most consistent
stereotypical characteristics of the culture (Tinsley & Woloshin, 1974). The value
of time for the German businessperson is not primarily monetary, however, and
there has never been any strong tendency to take time from other activities to
increase the amount of time devoted to business affairs. Another example of
German business etiquette reflective of their strict adherence to normative
behavior is their etiquette for introductions. Martin and Chaney (2011) explain that
in Germany, you always use a title when addressing someone until you are told it
is okay to use first names. Troyanovich (1972) notes that German businesspersons
are very time-conscious and that their preoccupation with punctuality is reflected
in the formalized way time is reported to the German public. In agreement, Mole
(1999) explains that there is a strong sense that the relationship between the
company and the employee is contractual, thus you are paid for so many hours
and you work as hard as you can for that period of time.
Bovee and Thill (2010) discusses that Japan’s style of bus iness etiquette, as
other Asian cultures, is based on their high-context communication. In high-
context cultures, people rely less on verbal communication and more on the
context of nonverbal actions and environmental setting to convey meaning because
so much of the message in carried in cues and “between the lines” interpretation.
These contextual differences are apparent in the way businesspersons in Japan
approach situations such as decision making and negotiating. For example,
negotiators working on business deals in Japan may spend more time building
relationships instead of working out contractual agreements. In other words,
protecting the business relationship may be as important as making the final
business decision. Martin and Chaney (2011) reported that the use of high-context
communication can be very confusing to the uninitiated, nonsenitive intercultural
Int’l Organizations & Operations – Cross Cultural Comm.
11
businessperson. For example, the Japanese say “yes” for no but indicate whether
“yes” is yes or really no by the context. Similarly, (Carte & Fox, 2008) notes that
high context communicators tend to communicate more implicitly. When a
Japanese businessperson speaks, they expect the person to interpret what they
mean by their knowledge of the cultural values that lie behind the words.
When conducting business meetings in Japan, Bovee and Thill (2011)
explain that the rules of etiquette are controlled and determined by their cultural
context, the pattern of physical cues, environmental stimuli, and implicit
understanding that convey meaning between two members of the same culture. For
instance, since the Japanese do not use the word “no” and have such subtle verbal
and nonverbal cues, businesspersons from other countries must ask a number of
questions to be certain they understand the int ent of what is being communicated
(Brett, 2001). In addition, (Carte & Fox, 2008; NBEA 2007) argue that the aim at
initial business meeting is to develop a personal trust. Much of the time in these
meeting is spent exchanging information about the companies in question before
discussing specific business proposals. Another example of how Japan’s high-
context culture affects their business etiquette is their attitude towards business
relationships. As Martin and Chaney (2011) and Watson & Chatterjee (2006)
stressed, building relationships and friendships in Japan is a necessary prerequisite
for doing business in their country. Signing a contract in Japan, as well as in other
Asian cultures, does not signal a sale or negotiation but a continuation of a
relationship with obligations and duties in the future. Indeed, each of these
countries has a rich tradition of behaviours and customs that contribute to their
standards of business behaviour/etiquette and knowing what each expects can aid
in improving the business relationships that exists between different cultures.
SUMMARY
As business organizations embark on global ventures and competitiveness,
managing cultural differences, inter-cultural communication, and cross cultural
negotiation and decision-making are the most common challenge to international
management. Success or failure in managing a diverse or multicultural workforce
largely depends on the ability of managers at all levels to communicate effectively
with people from different backgrounds and nationalities, and showing respect for
cultural differences. International business is the outgrowth of globalization which
is driven primarily by economic interdependency and advances in technology, but
the success in global business ventures will be affected by the inability of
international managers to understand appropriate business etiquette, customs, and
values needed to conduct business among nations of the world. Indeed, a number
of management and communication studies strongly indicate that an understanding
cultural differences as well as effective intercultural communication competence
will not only help businesses to bridge the communication gap among countries
involved in international trade negotiations, but it will also enable multinational
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
12
and multicultural managers to succeed in their various foreign operations, global
joint ventures, and strategic alliances. Because communication is culture-bound
and culture specific, it is important that countries involved in international
business devote adequate time to learn, understand, and appreciate the different
ethical and cultural habits and appropriate etiquette for conducting business
transactions on a global scale. The acquisition of these competitive global skills
and competences will enable high- growth businesses establish lasting strategic
relationships and retain their workforce for longer periods of time. In light of the
advantages and complexities associated with globalization and multinational
operations, cultivating cross-cultural awareness and skills, and developing
multicultural sensitivity and global mindset by managers will lead to sustainable
growth in international business.
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Upper Saddle, Rver, NJ: Pearson Prentice Hall.
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cultures.
Yarmouth, ME: Intercultural Press
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Negotiation Journal, 221-240.
Ting-Toomey, S. & Kurogi, A. (1998). Facework competence in intercultural conflict: An
updated face-negotiation theory. International Journal of Intercultural Relations,
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About the Author
Ephraim Okoro, PhD is an assistant professor of business communication and
marketing at Howard University School of Business. His research interests probe
the interface between intercultural communication and workforce diversity in the
context of globalization. He teaches management communication, strategic
communication, business communication, marketing communication, and the
principles of marketing. Address correspondence to Dr. Ephraim Okoro,
Department of Marketing, School of Business, Howard University, 2600 – Sixth
Street, NW, Washington, D.C. 20059. E- mail: [email protected].
doc_634952755.pdf
Research Paper on Analysis of Cross-Cultural Communication Effectiveness and Management Orientation : The global environment of business has become exceedingly complex as more and more corporations and private entrepreneurs compete to expand their marketshare and differentiate their brands in the world marketplace.
Journal of Business & Management, COES&RJ-JBM
Publisher: Centre of Excellence for Scientific & Research Journalism
Online Issue: Volume1 Number 1, January 2013
International Organizations and Operations:
An Analysis of Cross-Cultural Communication Effectiveness and
Management Orientation
Ephraim Okoro, PhD
Howard University
ABSTRACT
The global environment of business has become exceedingly complex as more
and more corporations and private entrepreneurs compete to expand their market-
share and differentiate their brands in the world marketplace. Globalization has
increased consumer awareness, created new demands and standards, and made
nations more interdependent. It is now imperative that businesses in different
countries increase their sensitivity and respect for one another’s cultural
differences in order to benefit from the growth of international business in the
twenty- first century. Studies indicate that effective cross-cultural management,
communication, and negotiations should be emphasized by high-growth
multinational corporations competing for global expansion. Corporations that
have embraced appropriate acculturation strategies, employed effective cultural
awareness model, and avoided ethnocentric management style in their expansion
and growth efforts have been successful. Other studies identified the major
causes of the demise of global business ventures, citing their managers’ lack of
intercultural skills, failure to engage in cross-cultural exchange, inability to
communicate effectively in the global marketplace, unacceptable practice of
business ethics and etiquette, and absence of compromise agreement. Global
managers should establish cross-cultural training in their facilities in order to
increase effectiveness across cultures, become efficient cross-cultural negotiators,
and sensitize to the values of counterparts. This study provides an analytical
framework and recommendations for adaptation of multinational management
strategies for sustainable business competitiveness in the current wake of global
economy.
Keywords: International Organizations, Cross-Cultural Communication,
Intercultural Negotiation, Mult inational Skills, Globalization, Global Economy.
JEL Code : F4, F23, M14, Z1.
Article Type: Research Article
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
2
International Organizations and Operations: An Analysis of Cross-Cultural
Communication Effectiveness and Management Orientation
INTRODUCTION
With the globalization of economies, production and consumption
activities, and markets, it has become increasingly important that managers at all
levels develop sensitivity to cross-cultural communication, intercultural
negotiation, and decision- making. The process of making decisions, reaching
agreements, and building consensus has changed requiring an understanding of
cross-cultural communication competence. As corporations are establishing
subsidiaries, forming strategic alliances, and opening joint ventures in many parts
of the world, individuals in the professional and managerial ranks should be
trained in the skills of cross-cultural communication competencies. Recent global
trends and events are positioning business etiquette and cross-cultural
communication as critical management issues because of the increasing number of
businesses involved in multinational ventures, strategic alliances, and joint
ventures. Because of the impact of globalization, an increasing number of
corporations from many parts of the world are striving to establish global brand
and cultivate multinational consumer awareness in order to sustain their
competitive advantage. Further, the environment of business has become equally
complex and challenging as a result of cross-cultural communication, differing
standards and expectations, and issues associated with management ethics.
The twent y- first century globally- interdependent economy strongly
indicates that business leaders and international entrepreneurs provide
opportunities for their managers to travel abroad to engage in cross-cultural
communication so that they will acquire the necessary skills and orientation for
coping with cultural differences. This global exposure enables managers to relate
effectively with citizens of other countries in an effort to take advantage of the
opportunities available in culturally-diverse marketplace. Harris and Moran (2008)
noted that the corporate culture of global organizations affects how businesses
cope with competition and change whether in terms of technology or economics.
Managers operating in multinational environments must be cultural sensitive,
understand the implications of cultural synergy, and be adequately prepared for
global culture. Yu (2007) pointed out that as businesses globalize, there continues
to be a compelling need for standardization in organizational design, management
strategies, and communication patterns because managers will find themselves
faced with multiple challenges originating from domestic and cultural issues and
socio-economic systems. Adaptation is critical and essential for corporate success.
International business etiquette as defined by Chaney and Martin (2007)
refers to the manners and behaviour considered acceptable behaviour in
internationally social and business situations. In social setting, proper social
Int’l Organizations & Operations – Cross Cultural Comm.
3
behaviour includes cultural differences in making introductions, exchanging
business cards, acknowledging position and status, communicating inter-culturally,
dining practices, tipping etiquette, giving gifts, and travelling. In international
business situations, how competent and competitive firms are both domestically
and internationally and how they effectively communicate to their stakeholders
will determine how successful a firm is internationally. Furthermore, as the authors
expound, building global business relationships depends on the innate ability to
learn about other cultures and proper training to help a person adjust once he or
she is in another culture. In addition, it refers to the customs and regulations
dealing with diplomatic courtesies expected in official negotiations with persons in
various cultures. Chaney and his colleague explain that when interacting with
colleagues or counterparts of other cultures in a business or marketing context, it is
important to know their customs to ensure that an intended meaning is not
conveyed in order to avoid unintentionally offending them. Furthermore, other
scholars (O’Rourke, 2010; Cardon & Scott, 2003; Brett, 2001) see global business
etiquette as a natural outgrowth of business globalization, which in many
significant ways complicate the way people from different backgrounds in
organizational and learning contexts behave in business situations. They explain
that employees who work globally should be trained in technical knowledge, such
as import and export laws of other countries, comparative management styles, and
business protocol, etiquette, and ethics.
MULTINATIONAL CONTEXT OF MANAGEMENT
AND CROSS-CULTURAL COMMUNICATION
Management and communication scholars (Chaney & Martin 2011; Harris
& Moran, 2000) agree that international management skills are needed for the
increasing scope of global trades and investments over the past decade. A number
of the major multinational corporations have expanded their operations throughout
developed and developing nations. Some of the businesses are direct investments
and others are partnership arrangements and strategic alliances with domestic
operations. Studies indicate that independent entrepreneurs and small businesses
have started investing and competing in global marketplaces. Therefore, the
current global trend of business competitiveness strongly indicates a need for the
development of strategic framework for managing, negotiating, and
communicating across cultures in order to achieve the investment objectives of
corporations. Indeed, as Chaney & Martin (2011) pointed out, awareness and
cultural differences is increasingly significant to the success of multinational
corporations. A good understanding and appreciation of the culture in which
business is conducted can make international managers both effective and
productive. Hodgetss and Luthans (1997) noted the concerns of some
organizations when internationalization began in the 1970s that it would be
exceedingly difficult to conduct business in the same fashion around the world as a
result of cultural variations and differences. Indeed, the attempt to manage people
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
4
the same way across cultures presented serious challenges to many global
businesses.
Studies conducted over the past decade stressed the importance of training
managers on cross-cultural negotiation skills as well as cross-cultural
communication competence. Globalization has become a megatrend in the present
business environment, making it extremely critical that management teams be
equipped with the appropriate global mindset and cross-cultural values in order to
effectively lead a diverse workforce. Deresky (2006) stressed the concept of
cultural convergence, the shifting of individual management styles to
accommodate the styles used in other environments and total elimination of
parochialism, stereotyping, and ethnocentrism in managing multinational
operations. An analysis of the growth of multinational corporations in the wake of
globalization (Chaney & Martin, 2011) identified several factors that have been
instrumental to the inability of managers to succeed in a global context. Chief
among these factors are ethnocentric predisposition, cultural imperialism, and
parochialism in managing a diverse or multicultural workforce. Essentially, it is
counter-productive to lead international organizations with a mindset characterized
by these types of negative values.
Recent developments show that many businesses are cultivating a global
focus by sourcing, producing, importing, or exporting their goods and services
around the globe, which makes intercultural communication and negotiation gain
substantial prominence in the international business management. Further,
international business etiquette (the expected rules of behaviour for intercultural
communication and management ) has become increasingly important because of
the mobility of people. Authors Bovee and Thill (2010) stressed that learning the
skills of proper etiquette in preparation for international assignment is one of the
critical requirements for business success in a competitive context. As the authors
stated, some behavioural rules are formal and specifically articulated and others
are informal and learned over time which influences the overall behaviour of
majority of people in a society most of the time. It is noted that as managers
appreciate, value, and respect cultural differences, they develop a better
understanding of people’s behavioural patterns which gives them a much better
understanding of how to properly interact while conducting business.
Similarly, O’Rourke (2010) identified the most common factors
contributing to managers’ failure to perform effectively in international business
assignments as the inability to understand and adapt to foreign ways of thinking
and acting as opposed to technical or professional incompetence. As interest in
participation in the global marketplace increases, managers are required to adapt to
new cultures and to become sensitive to differences among people. Bovee and
Thill (2011) added that supervisors face the challenge of acknowledging the
expected behaviours of diverse employees, multinational teams face the problem
Int’l Organizations & Operations – Cross Cultural Comm.
5
of working together closely, and businesses have the difficult task of peacefully
negotiating with international business counterparts. Thus, the suggested strategic
globalization imperative for international business undertaking requires a practical
analysis and application.
CROSS-CULTURAL NEGOTIATION: CHALLENGES AND
STRATEGIES
Developing global management skills is as demanding as applying cross-
cultural negotiation and decision- making. Managers preparing for multinational
assignments should prepare for skills in strategic negotiations and cross-cultural
interactions. The process of negotiation is culture-specific and involves a great
deal of sensitivity. Deresky (2006) noted that the ability to conduct cross-cultural
negotiations cannot be over-stated, which places global managers in a position to
learn the complexities associated with cultural nuances and values. Additionally,
Carte & Fox (2008) highlighted the inherent difficulties in international business
because of the need to understand cultural and regulatory variations. For instance,
international business etiquette requires the ability to adapt to different national
processes, patterns, and acculturations. It should be noted that competitive
positioning and long-term effective business operations in a multinational
environment involve a sound knowledge of negotiating processes and decision-
making strategies of managers from different parts of the world.
Studies have suggested the importance of international managers to
understand how culture affects negotiations with global business partners. As
Movius, Matsuura, Yan, and Kim (2006) noted, it is a gross fallacy to make the
assumption that individuals who come to negotiation meetings demonstrate “single
culture” norms, since they often have extensive international experience either
through work or education or probably from a multicultural and multilingual
family, and thus have some acquaintance with various cultures. To achieve
a desirable result in international negotiations, Salacuse (1998) stressed that global
managers should be adequately grounded in intercultural communication and
compromises. They should not only understand their own objectives in the
negotiation, but should know their parameters in the decision- making process.
They should also understand that information may be presented in different forms
and be prepared to tolerate ambiguity and a reasonable level of inconsistency. As
Chaney and Martin (2011) cited, in high-context cultures, such as Japan, meaning
is conveyed through body language, pauses, rephrasing as much as in the words
used at negotiation meetings, whereas in a high-context culture of the United
States, meaning is conveyed mainly through spoken words. In cross-cultural
negotiation, both verbal and nonverbal communication is critically important and
may affect reactions and flow of conversations. Similarly, mixed messages create
uncomfortable feelings for international managers as they may be struggling
to reconcile the inconsistencies. For instance, in the United States, direct eye
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
6
contact is expected and is seen as a measure of honesty, trustworthiness, and
reliability. Conversely, in China and in some parts of Africa, direct eye contact is
considered rude and inappropriate. Additionally, direct eye contact with a superior
or senior person demonstrates disrespect and hostility in India. Cross-cultural
communications skills are essentials to achieving effective and productive
international negotiations. Over time, negotiations involving managers from
different backgrounds have not yielded much result because of the tone of
conversation, facial expressions and other culture-specific nonverbal cues.
Therefore, international managers should be equipped with the appropriate
knowledge and competence to manage complex situations that arise from cultural
differences.
CROSS-CULTURAL COMMUNICATION: CHALLENGES AND
STRATEGIES
Several studies (Thill & Bovee, 2011; O’Rourke, 2011) indicate a strong
correlation between effective international management and cross-cultural
communication. It is stressed that a sound intercultural communication is vital for
international managers as well as for domestic managers of multicultural and
multinational businesses. Miscommunication, misinterpretation, or
misunderstanding is more likely to take place among managers and employees
from different ethnic backgrounds and nationalities than among the managers
and people from homogenous backgrounds. The ability to communicate cross-
culturally is required of managers who aspire to succeed in global assignments.
Managers preparing to work in a domestic business with a diverse workforce or
who are preparing to work in foreign environments should be adequately flexible
and trained to adjust their communication pattern to the intended audience.
The increasing emphasis on workforce diversity in recent years makes it
extremely important that domestic and global managers should devote more time
to learning appropriate communication strategies, especially for effective
management of a diverse organization. Communication is an essential part of a
manager’s duty and it takes up much of his or her time either interpersonally or
with a group of employees. Effective intercultural communication largely
determines the success of international transactions or the performance and
productivity of a culturally diverse workforce. Communication scholars have
determined that culture is the foundation of communication, and essentially
communication conveys culture. As Deresky explained, effective cross-cultural
communication explains whether or not the receiver is from a country with a
monochromic or a polychromic time system, high-context or low-context
environment.
Furthermore, managing intercultural communication effectively in
organizations requires that managers develop cultural sensitivity, be careful in
Int’l Organizations & Operations – Cross Cultural Comm.
7
encoding their messages, thoughtful in decoding and analyzing content and
context, selective in choosing channels for transmission of messages. The
increasing mobility of workers in global markets, expansion of international joint
ventures and strategic alliances, and the presence of global entrepreneurs in
developing nations makes cross-cultural communication competence inevitable.
As businesses strive to achieve competitive advantage both domestically and
globally, equipping managers with the critical communication skills enhances
performance and improves the quality of relationships. A number of studies
indicate that cross-cultural communication skills or behaviour can be learned
to increase the effectiveness of managers with host nationals. Improved cross-
cultural communication in organizations reduces the challenges in international
management
A COMPARATIVE ANALYSIS OF GLOBAL BUSINESS ETIQUETTE
Communication scholars have emphasized the vital role of etiquette in
international management environment as well as in cross communication
situations. Managing a multicultural workforce requires a proper conduct of
oneself at all times. In today’s hectic and competitive society, etiquette might be
taken for granted or seen as outdated concept, but it affects perceptions and
decisions people make in the global context of management. It is never over-
emphasized that the ways a manager conducts himself/herself and interacts with
colleagues have a profound impact on a company’s goodwill or credibility. In
addition to effective cross-cultural communication and negotiation skills, proper
business etiquette accounts for success of domestic and global managers. Bovee
and Thill (2011) and Chaney and Martin (2011) in their analysis of the importance
of managers’ self-conduct, grooming and appearance, and comportment
consistently stated that business etiquette is a major criterion in evaluating
performance and overall success in a global workplace. Etiquette includes a
variety of behaviours, habits, and specific aspects of nonverbal communication.
Carte & Fox (2008) and Yu (2007) caution that with the tremendous surge
in global business ventures these days, it is vital to learn more about the different
cultures and behaviours around the world in order to reduce the risk of managerial
failure. To effectively adapt business etiquette to businesspersons from other
countries requires both knowledge about the culture and the ability and motivation
to adapt to different behaviours. For example, the giant retailer Wal-Mart learned
this lesson the hard way when it expanded its operations into Germany. Notably,
store clerks resisted Wal-Mart’s culture of always smiling at customers, because
some customers sometimes misunderstood and misinterpreted smiling as flirting.
Because of a number of other cultural missteps, Wal-Mart had to leave the German
marketplace (Bovee and Thill, 2011). Indeed, becoming aware and sensitive to
different countries’ business etiquette is the key to establishing good business
relationships with individuals and businesses in many countries. The significance
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
8
of business etiquette is highlighted by analyzing four selected countries that have
conducted businesses in the United States over the years.
Earley (1997) notes that business etiquette in the People’s Republic of
China is the most reserved and most unlike the United States, out of the four
countries included in this cultural analysis. To the United States businessperson, a
personal relationship should be separated from business. Friendships are quickly
formed and dissolved. Hence, many view the U.S. business relationship as shallow
and short-termed, while business relationships in China are viewed as lifetime
commitments (Martin & Chaney, 2011). Further, Chinese business etiquette is
directly related to the Chinese sensitivity to face. Ting- Toomey & Kurogi (1998)
and Earley (1997) refer to face as an evaluation of a person’s credibility and self
image. The hundreds of phrases in the Chinese language describing face
demonstrate the sophistication of face and how it relates to communication
behaviours (Cardon & Scott, 2003), such as global business etiquette. The authors
further note that Chinese businesspersons employ a number of communication
strategies designed to receive face or give face to others, such as indirectness,
intermediaries, praising, requests, and shaming. In order to save face, they often
try indirectness by avoiding public confrontations. The use of intermediaries
avoids direct confrontation, especially in conflict situations, such that a contact
should always be established before representatives of business are sent to China.
They believe in a win-win negotiation strategy that allows both sides to be winners
in order to increase the strength and scope of the relationship. In addition, Cardon
and his colleague explained that Chinese businesspersons employ praise to
recognize status and position. For example, they often times make direct request
for favors because this will signal that a business relationship is firm. Finally,
Chinese businesspersons resort to shame when individuals violate the trust of a
relationship.
When conducting business in China or in the United States with a person
from China, the rules of business etiquette are controlled and determined by face
giving and taking. For example, when giving introductions, remember that the
surname comes first and the given name last. The introduction is accompanied by
a bow which is uncommon in many other cultures (Chaney & Martin, 2011). The
authors stress that out of concern for their business partners; many times, the
handshake is combined with a bow so that each culture shows the other proper
respect. Another example of how face influences Chinese business etiquette is the
importance of the business card exchange. Chinese business cards represent the
person to whom you are being introduced, so it is polite to study the card for a
while and then put it down as a sign of respect. Furthermore, Chaney and his
colleague note that, as a mark of respect and appreciation, the Chinese examine
business cards carefully and make some favorable comments while accepting
them. During meetings with Chinese, it is a common practice for them to place
business cards of others attending the meeting in front of them on the conference
Int’l Organizations & Operations – Cross Cultural Comm.
9
table in order to properly refer to names, ranks, and titles. Usually, both hands are
used when presenting and receiving cards, and they position cards strategically so
that they can be read easily.
Business etiquette in England is based on a strong sense of identity and
nationalism. The English businessperson tends to be very matter-of- fact and tends
to be very deadline oriented in business negotiations (Chaney & Martin, 2011).
Traditions and customs (etiquette) are very important to the English, as they tend
to be reserved and expect others to act accordingly. Unlike businesspersons from
the U.S., business friendships are not necessary (Morrison et al., 1994). Carte &
Fox (2008) note that because of their individualist culture, like the Americans,
they focus on the tasks set out in their job description and think it is normal for a
boss to reward individual effort. The English businesspersons’ reputation of
reserve is well deserved, thus so manifesting itself in their strict adherence to
protocol (Martin & Chaney, 2011) and their ability to confront adversity with
courage and strength of character (Harper, 1997). The author also cautions that
when conducting business in England, be careful about asking too many personal
questions too quickly, partly because it makes them nervous and partly because
they are naturally reserved in their culture. The English business person, while
having excellent manners, has “lousy” people skills.
When conducting business in England, the rules of business etiquette are
controlled and determined by the English businesspersons’ reserved character and
strong sense of identity (Harper, 1997). For example, Martin & Chaney (2011)
explain that conservative attire of excellent quality is important in England when
judging dress and appearance. There, as well as, in other European countries, dress
is an indication of social and business status. Therefore, it is important to dress
your best by selecting clothing made of quality fabrics with fine tailoring in Great
Britain. In addition, accessories should be of high quality and reflect good taste.
English inappropriate attire includes sweat suits and tennis shoes, which are
viewed as appropriate only for athletic activities. The English businesspersons’
negotiation processes also reflect their cultural characteristics; they are very formal
and polite and place great value on proper protocol and etiquette (Chaney &
Martin, 2011). In addition, the authors note that the English can be tough and
ruthless negotiators and can sometimes appear quaint and eccentric, many times
causing other cultures to underestimate their skill. Mole (1997) adds that the
English businesspersons quickly lose reserve when their basic assumptions about
themselves are challenged or questioned.
Troyanovich (1972) interpretation of business etiquette in Germany is
based on the formal culture of Germany that defines behavioural expectations in
great detail, providing its participants with the knowledge of what to do and when
to do it. Similarly, Carte & Fox (2008) noted point out that German
businesspersons respect authority and hierarchical differences. They prefer a
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
10
hierarchical organizational structure because it avoids uncertainty, where power
is ensured within the organization. They are autocrats who prefer formal
communication when conducting business. In addition, they focus on personal
achievements and truth and directness are important aspects in business. Tinsley
and Woloshin (1974) add that the ideal person is one who can be relied on to do
what is expected and whose behaviour is predicable, steady, and not much
influenced by the opinions of others or by opportunity. Further, Martin and
Chaney (2011) pointed out that more recent research indicates that class status in
important to Germans, and even though all people have equal rights under the law,
in reality inequalities exist.
The German businesspersons’ strict adherence to behavioural expectations
is manifested in their standards of business etiquette. For example, being on time
for all business and social engagements is more important to the German culture
than any of the six countries surveyed in this paper (Axtell, 1998). Being only a
few minutes late for meeting can be insulting to German managers and if you are
delayed, an explanatory call is expected. In addition, the German sense of
punctuality in all situations has been recognized as one of the most consistent
stereotypical characteristics of the culture (Tinsley & Woloshin, 1974). The value
of time for the German businessperson is not primarily monetary, however, and
there has never been any strong tendency to take time from other activities to
increase the amount of time devoted to business affairs. Another example of
German business etiquette reflective of their strict adherence to normative
behavior is their etiquette for introductions. Martin and Chaney (2011) explain that
in Germany, you always use a title when addressing someone until you are told it
is okay to use first names. Troyanovich (1972) notes that German businesspersons
are very time-conscious and that their preoccupation with punctuality is reflected
in the formalized way time is reported to the German public. In agreement, Mole
(1999) explains that there is a strong sense that the relationship between the
company and the employee is contractual, thus you are paid for so many hours
and you work as hard as you can for that period of time.
Bovee and Thill (2010) discusses that Japan’s style of bus iness etiquette, as
other Asian cultures, is based on their high-context communication. In high-
context cultures, people rely less on verbal communication and more on the
context of nonverbal actions and environmental setting to convey meaning because
so much of the message in carried in cues and “between the lines” interpretation.
These contextual differences are apparent in the way businesspersons in Japan
approach situations such as decision making and negotiating. For example,
negotiators working on business deals in Japan may spend more time building
relationships instead of working out contractual agreements. In other words,
protecting the business relationship may be as important as making the final
business decision. Martin and Chaney (2011) reported that the use of high-context
communication can be very confusing to the uninitiated, nonsenitive intercultural
Int’l Organizations & Operations – Cross Cultural Comm.
11
businessperson. For example, the Japanese say “yes” for no but indicate whether
“yes” is yes or really no by the context. Similarly, (Carte & Fox, 2008) notes that
high context communicators tend to communicate more implicitly. When a
Japanese businessperson speaks, they expect the person to interpret what they
mean by their knowledge of the cultural values that lie behind the words.
When conducting business meetings in Japan, Bovee and Thill (2011)
explain that the rules of etiquette are controlled and determined by their cultural
context, the pattern of physical cues, environmental stimuli, and implicit
understanding that convey meaning between two members of the same culture. For
instance, since the Japanese do not use the word “no” and have such subtle verbal
and nonverbal cues, businesspersons from other countries must ask a number of
questions to be certain they understand the int ent of what is being communicated
(Brett, 2001). In addition, (Carte & Fox, 2008; NBEA 2007) argue that the aim at
initial business meeting is to develop a personal trust. Much of the time in these
meeting is spent exchanging information about the companies in question before
discussing specific business proposals. Another example of how Japan’s high-
context culture affects their business etiquette is their attitude towards business
relationships. As Martin and Chaney (2011) and Watson & Chatterjee (2006)
stressed, building relationships and friendships in Japan is a necessary prerequisite
for doing business in their country. Signing a contract in Japan, as well as in other
Asian cultures, does not signal a sale or negotiation but a continuation of a
relationship with obligations and duties in the future. Indeed, each of these
countries has a rich tradition of behaviours and customs that contribute to their
standards of business behaviour/etiquette and knowing what each expects can aid
in improving the business relationships that exists between different cultures.
SUMMARY
As business organizations embark on global ventures and competitiveness,
managing cultural differences, inter-cultural communication, and cross cultural
negotiation and decision-making are the most common challenge to international
management. Success or failure in managing a diverse or multicultural workforce
largely depends on the ability of managers at all levels to communicate effectively
with people from different backgrounds and nationalities, and showing respect for
cultural differences. International business is the outgrowth of globalization which
is driven primarily by economic interdependency and advances in technology, but
the success in global business ventures will be affected by the inability of
international managers to understand appropriate business etiquette, customs, and
values needed to conduct business among nations of the world. Indeed, a number
of management and communication studies strongly indicate that an understanding
cultural differences as well as effective intercultural communication competence
will not only help businesses to bridge the communication gap among countries
involved in international trade negotiations, but it will also enable multinational
Journal of Business & Management, COES&RJ-JBM, 1(1), p. 1-13
12
and multicultural managers to succeed in their various foreign operations, global
joint ventures, and strategic alliances. Because communication is culture-bound
and culture specific, it is important that countries involved in international
business devote adequate time to learn, understand, and appreciate the different
ethical and cultural habits and appropriate etiquette for conducting business
transactions on a global scale. The acquisition of these competitive global skills
and competences will enable high- growth businesses establish lasting strategic
relationships and retain their workforce for longer periods of time. In light of the
advantages and complexities associated with globalization and multinational
operations, cultivating cross-cultural awareness and skills, and developing
multicultural sensitivity and global mindset by managers will lead to sustainable
growth in international business.
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About the Author
Ephraim Okoro, PhD is an assistant professor of business communication and
marketing at Howard University School of Business. His research interests probe
the interface between intercultural communication and workforce diversity in the
context of globalization. He teaches management communication, strategic
communication, business communication, marketing communication, and the
principles of marketing. Address correspondence to Dr. Ephraim Okoro,
Department of Marketing, School of Business, Howard University, 2600 – Sixth
Street, NW, Washington, D.C. 20059. E- mail: [email protected].
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