BUSINESS | DIVERSITY

How Business Across Cultures Is Localized in Origin

An exploration of cultural differences that can fuel the disconnect between nations and people if we so choose

Further to an article on the “Social Dimension of Culture” I realized that the global context was somewhat overlooked having read Anand’s comment.

After some reflection, I realized that global-culture is a monumental economic factor, highly relevant to the leaders of tomorrow.

There are three mindsets at our disposal:

1. Ethnocentric orientation: Using one’s own culture as the benchmark for contrasting or judging other cultures.
2. Polycentric orientation: A mindset in which a leader or manager develops a greater affinity for the country in which he or she works.
3. Geocentric orientation: A global mind-set where the leader or manager understands the business or market without regard to national borders.

Leaders of tomorrow will strive for geocentric orientation.

This article will discuss the global implications of culture in the business world from 2020 and beyond.

The Impact of Culture on Business

Examples, where culture can impact the conduct of business, are typically a result of the following:

• Product and/or service development disagreements
• The inability to practice patience
• Acceptance of a prolonged stalemate
• Inability to refrain from exaggerated expectations
• Inability to refrain from blaming others for difficulties
• Lack of understanding cultural traits
• Conflict from adverts or promotional materials
• Preparation for trade fairs overseas
• Screening, evaluating and selecting foreign distribution partnerships
• Communicating with foreign trade-partners when negotiating joint business ventures

Interactions with current or potential customers and partners bring an array of unsaid complexities to the table.

Cross-cultural risk

Cross-cultural risks boil down to situational mistakes that expose human-values to risk.

A threat.

This arises in situations where unfamiliar languages, unique beliefs, divergent value systems, and behaviors contradict with others.

Rule of thumb

For businesses to conduct trade across cultures, basic recommendations include things like:

• Keep an open-mind
• Be prepared
• Slow down and establish trust first
• Recognize and understand the importance of language
• Respect the culture
• Understand the components of culture

A rule of thumb is simply a guesstimate. As such every region or country warrants a deeper understanding.

To expand on this, allow me to explore an emerging Superpower.

Casestudy

In light of recent events and the global power-shift that's underway, from west to east, China is a perfect example.

Businesses operating in China must accept:

• Restrictions against foreign books, the internet, video games, and performing arts or acts
• Increased censorship of foreign television programs
• Restrictions on Google
• Small, family businesses predominate the commercial landscape

If not, leave. But do so with conviction, devoid of greed.

That said, there are other dimensions to consider, like connection.

Guanxi — connections

Connections are the cornerstone of Chinese culture in business, for example:

• People needs are put ahead of business needs
• Organizations do not include “middle management”
• Refers to social connections and relationships based on mutual benefits
• Emphasizes reciprocal exchange of favors as well as mutual obligations
• Grounded in ancient Confucian philosophy, which values social hierarchy and reciprocity
• Engenders trust, thereby serving as a form of insurance in a potentially risky business environment

Guanxi is key to trading in China.

Also, credibility or saving-face is of vital importance.

Saving face

The conflict we’re witnessing in the world today emanates from cultural disparity. Here are two reasons why:

1. Lien — refers to a person’s moral character.
2. Mien-Tzu — refers to one’s reputation or prestige, earned through bureaucratic or political power.

Western leaders are the polar-opposite, hence the disconnect.

Final Thoughts

The Chinese place a higher value on principles, face-saving respect, far above money, and expediency.

For business, it disseminates as follows:

1. Business meetings typically start with pleasantries like tea and general conversation about a guest’s trip to the country, accommodations, and family.
2. A Chinese host will give an appropriate indication for when a meeting is to begin and also when the meeting is concluded.
3. Once the Chinese decide who and what is the best approach, they tend to stick with these decisions. While slow in formulating a plan of action, once started, they make good progress.
4. In negotiations, reciprocity is important. If the Chinese offer concessions, they expect the same in return.
5. Negotiations that involve a loss of face, it’s common for Chinese to conduct the whole process through intermediaries.
6. During negotiations, it’s important not to show excessive emotion of any kind. Anger or frustration is viewed as antisocial and unbefitting.
7. Negotiations should be viewed with a long-term perspective. Those who will do best are the ones who realize they are investing in a long-term relationship.

As such, my recommendations for western cultures operating in China, or indeed other regions of the world, are:

• Practice patience
• Expect social and cultural disparity
• Accept prolonged stalemate
• Refrain from exaggerated expectations
• Resist blaming the other side
• Understand and respect cultural traits

By no means does this article defend or criticize either side of a conflict. No. Rather the aim is to highlight ‘unknown unknowns’ that we know about the modern world.

We don’t have to look beyond our own borders to witness cultural conflict.

Until the world understands diversity better, on a human level, cultural-conflict will be ever-present.

If we can't get a grip on cultural conflicts at home, a compromise, how can we expect to close the gap on a global level?

Beyond borders starts with me and you: Aurora, Bill, Sinem, George, Sean, Dr Mehmet, Timothy, Julia, Lori, Joe, Arthur, Rasheed, Dipti, Desiree, Ming, Michael, Terry, Kathryn, Chris, Jessica, Nicole, Clay, Michele, Sumera, R Tsambounieri, Bebe, P.G. and John.

No one culture is ‘right’.

‘Right’ is devoid of ego.

Being ‘right’ is about trying to understand and appreciate the culture of another, accepting the fact that neither can be ‘wrong’.

‘Right’ is therefore the acceptance of differences.

‘Right’ is diversity!