Cultural awareness is crucial in today’s globalized market. Multinational and cross-cultural teams are becoming increasingly prevalent as more organizations expand and the global economy opens to small businesses. This means that if businesses want to succeed globally, it is more important than ever for them to comprehend the culture of their foreign market.
Culture refers to a person or society’s beliefs, practices, and social interactions. However, how does culture impact global business?
In a corporate setting, culture refers to the types of conduct that are normal and respected in one place vs another. What is considered a good business practice in one nation may not be the same as the strategy employed by companies abroad. Therefore, it is important to understand how culture might impact international business in order to prevent miscommunications between employees and clients and to ensure that companies are effectively presenting themselves to their new markets.
Communication: In international business, communication is crucial, and sometimes it can mean the difference between success and failure in a new market. For multinational firms, effective communication is especially crucial because there is a chance that your messages would be “lost in translation.” When evaluating how well your company communicates on a global scale, there are a number of factors to take into account.
When examining communication, any linguistic hurdles that can obstruct communication with your new market should be taken into account initially. However, this goes deeper than just the language used to communicate; it’s also crucial to consider how the words are delivered. Language barriers are related to both speakers of various languages and the tonal characteristics of those languages. For instance, it is typical in nations like the US or Germany for people to speak up and be more assertive while exchanging ideas with coworkers. When providing suggestions to coworkers, people in nations like Japan, however, often speak more softly and with a more passive tone.
The fundamental mannerisms, gestures, and conventions of that culture should also be taken into account. Unusual or potentially insulting behavior in one culture may be typical to a client or colleague abroad. Professor Jean Vanhoegaerden uses the example of how in some Middle Eastern societies, handshakes are viewed differently than they are in European and American cultures. For instance, in some cultures, only the right hand may be used in handshakes since the left hand is considered to be less hygienic.
Businesses that want to conduct business globally must be conscious of linguistic differences, tone, and body language. While dealing with cultural differences with sensitivity, openness, and curiosity can help organizations succeed globally, cross-cultural communication can be difficult.
Attitude: In international business, communication is crucial, and sometimes it can mean the difference between success and failure in a new market. For multinational firms, effective communication is especially crucial because there is a chance that your messages would be “lost in translation.” When evaluating how well your company communicates on a global scale, there are a number of factors to take into account.
When examining communication, any linguistic hurdles that can obstruct communication with your new market should be taken into account initially. However, this goes deeper than just the language used to communicate; it’s also crucial to consider how the words are delivered. Roles in multinational teams may consequently be difficult to define due to these varied cultural perspectives regarding management. Because of this, it is critical for firms to understand how their target market’s culture views the organizational structure.
Etiquette: Businesses that operate worldwide also need to be cognizant of proper workplace conduct.
When engaging with coworkers and clients from different cultures in international enterprises, the formality of the address is another important factor to take into account. Do they mind being addressed by their first names or do they prefer titles and last names? American first names are typically used, although Asian nations like China appear to prefer the latter. Even while the formality of the address may not seem crucial, if you start a potential international client relationship poorly, it may be impossible for you to engage with them again. It is crucial for businesses to understand that their level of formality will vary depending on the culture of the recipient of their communication.
Because of differences in workplace etiquette, certain cultures also have distinct views on conflicts at work, rules and regulations, and working hours. While some may view putting in long hours as a sign of dedication and success, others may view these extra hours as evidence of inefficiency or a disregard for family or personal time.
