An analysis of intercultural organizational

communication in multinational corporations

Bertha DLL-Babcock & Richard D. Babcock

Introduction
As the world economy moves toward globalization, individuals who speak different
languages and who come from different cultural backgrounds need to develop mutual
understanding and skills to communicate effectively with one another. Terpstra (1991)
states that the multiplicity of language use and the diversity of cultures in the world
economy have a constraining influence on the operation of international business. To
a large degree, international business depends on communication, and language, of
course, is the key component of communication. Although the accurate use of
linguistic form is essential for effective communication, in most communicative
situations, there must be familiarity with the culture of the communicator’s language.
In other words, miscommunication can occur if the communicators do not possess
some awareness of culture differences. As cultural distance increases, communication
becomes more different. Where there is a cultural gap, communication problems can
be greatly compounded.

Even though there is widespread awareness that knowledge of the language and
culture is an essential prerequisite for efficient communication in the international
business practice, systematic knowledge correlati ng language proficiency, cultural
awareness and skill level is still not readily available. The purpose of this paper is to
examine intercultural organizational communication, and specifically, how expatriate
managers with various levels of second (Chinese) language proficiency communicate
with local Chinese personnel and the ways and methods these expatriate adapted in
order to communicate more effectively and efficiently.

Taiwan’s Business Environment

Taiwan’s economy grew rapidly and became globalized during the 1960's when the
country opened up for foreign manufacturers to enjoy its cheap labor in assembling
products for re-export in specifically established Processing Zones. This development
created situations where foreig (Western) expatriates needed to communicate with
local Chinese personnel. With the constraint of English language education in which
students take English as a subject in junior high and high schools and perhaps the first
year of college, the overall English proficiency levels are much lower than in
comparable countries such as Hong Kong or Singapore.

Taiwan is a country where most Western expatriate managers must make a conscious
effort to adjust their communication styles and methods in order to compensate for the
lack of English language proficiency of local Chinese personnel. In terms of the joint-
venture or multinational corporations, these Western expatriates typically have only
limited Chinese language speaking abilities, and the local Chinese have varying levels
of second language (English) capabilities. In addition, Chinese culture is very
different from Western culture. Given that the local Chinese employees have some but
not high second-language proficiency, the expatriate managers can still communicate
in English without the use of translators. Yet these expatriates must adjust their styles
and methods of communication. In such a language-deficient and culturally divergent
environment, expatriate managers face a communication challenge that is significantly
different from that of a home country environment in which their native language is
the dominant communication medium.

Focus and organization

This paper focuses on the adjustments expatriate managers make in their
communication styles and methods and the ways in which the local Chinese respond
to these adjustments. The adjustments vary accordin g to the expatriates’ language
skills and their cultural knowledge. By groupin g the expatriates based on their
Chinese language proficiency levels, three distinct “communication zones” are
identified (see exhibit 1 for details). The communication process was found to be
distinctively different in these zones, and different factors contributed to or retarded
communication effectiveness in each zone. The paper is organized as follows: (a)
background information on communication, language, and culture, (b) descriptions of
a research project that examines expatriate-Chinese communication patterns in eight
multinational corporations (MNCs) operating in Taiwan, @ analysis of the
communication patterns in the three zones, and (d) generalizations and comparisons.

Communication in organizations

Cornrnunication in an organization involves two overlapping areas: interpersonal

communication and organizational communication. Interpersonal communication is
the exchange of information between two individuals, whereas organizational
communication is the pattern of communication between groups and individuals in the
organization. In multiple-language use and in a culturally divergent business
environment such as in Taiwan's MNCs, both language and cultural factors impact on
interpersonal and organizational communication.

Interpersonal communication has been described in a general model that traces the
flow of information between two individuals (Adler, 1991). Language and cultural
factors impact on all the dimensions and phases of the communication process. Thus,
international communication can suffer in the multicultural business environment.
Common sense supported by the communication literature (for example, Harnzah-

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Sendut, Madsen & E’ Thong, 1989) indicate that limited language proficiency
changes the dynamics of the communication process. Both speed and accuracy are
affected. The communication process must be slowed down and simplified in order to
complete the interchange of information between sender and receiver.

Status, hierarchy, and power always affect organizational communication. In this

study, most of the expatriates assumed upper-level positions in the corporation. This
adds to the lack of English language competence and the tendency to respect the
authorities’ status and power, in compounding the communication difficulty.
Consequently, information loss would always occur as information is filtered up
through the organizational levels even though information loss is considered a widely
accepted organizational phenomenon.

Cultural difference is also a factor that affects the communication process and
individual communication styles. According to Hall (1976), individuals from different
societies and cultures communicate differently. He developed a comparative model
that is directly related to interpersonal communication and that has contrasting polar
dimensions, namely, high-context communication versus low-context communication.

In a high-context environment, more of the information lies either within the context
or within the counterparts who are parts of the interaction. Less of the meaning of a
message is provided in the coded, explicitly transmitted part of the total message. In
contrast, in low-context cultures, the verbal part of the message itself contains more of
the information and the majority of the transmitted information is vested in explicit
codes.

In a low-context Western culture, the prime responsibility lies with the sender to
encode a clear and understandable message. Verbal messages are extremely important
since people do not look in the environment for information. The messages are
usually explicitly coded unless they pertain to relatively sensitive issues. Once the
message is encoded and sent, the receiver has the responsibility to ask for clarification
of the communicated message if the message is unclear. Direct feedback is an integral
part of the communication process. In contrast, in the high-context Chinese culture a
different flow of information is created and different responsibilities between the
sender and receiver are expected. In a high-context cultural environment like that of
Taiwan, the sender firstly assesses the communication environment or context and
then encodes the verbal message. Once the message is sent, the receiver also assesses
the communication environment before interpreting the meaning of words in the
verbal message. The syntax, taken by itself, may be vague and indirect, especially
when dealing with sensitive interpersonal issues. Interlocutors instinctively receive
contextual or environmental variables as part of the message. As a result, what might
be considered incomplete or vague becomes complete by adding the context
dimension to the communication process in high-context communication. During the
communication process, immediate feedback and asking for clarification may not
always be an integral part of the communication process in a high-context culture.

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 Face consideration is another crucial but subtle factor that impacts the communication
process. While all cultures give importance to “saving and giving face”, Hsu (1971)
notes that losing face is the ultimate social sanction and is “a real dread affecting the
social system” that is more than physical fear. Chinese individuals are thus reluctant
to send messages in any condition where there is a possibility of losing face.
Therefore, if a Chinese individual sends a message, that individual is conditioned to
make sure that the content of the message is correct or cannot be questioned by the
receivers. Consequently, there is a tendency to wait and respond in meetings and to
delay reportin g until projects are completed or results are certain. This face-saving
behavior of Chinese is different from the face-saving or face-enhancing behavior of
Westerners. Westerners put forth tentative ideas and partial proposals and ask directly
for feedback and clarification. In a Western style of communication, an individual can
even gain face by asking for clarification and putting forth a tentative idea. As
compared to Westerners, Chinese are conditioned to communicate in completed
thoughts rather than in incomplete or hypothetical tentative ideas. Harmony among
individuals, handed down from the Confucian tradition, leads to the suppression of
open conflict and confrontation in Chinese culture and in the formal interactions
among individuals that transpire in meetings.

Research methodology
Eight multinational corporations (MNCs), headquartered in both the United States and
Europe, in the banking, p etro-chemical, construction, and electrical industries were
involved in this study. The data for the study was collected by an American professor
and a Chinese-American professor over a three-year period. A multiple research
methodology was used. A standard English interview guide was developed and used.
About 60 mid-to-upper level managers from eight MNCs were interviewed. The
expatriates were interviewed in English and the Chinese in either Mandarin,
Taiwanese, or English. In the case of the first-level Chinese managers, the interviews
were conducted either in Mandarin or Taiwanese as the co-researcher was a native
speaker of both languages. With some mid-to-upper level Chinese managers,
additional data was gathered in English in order to assess their command of English
and to allow the non-Chinese researcher to ask questions. Through the observation,
the Chinese researcher had the opportunity to more accurately judge the English
command of the local Chinese. According to the researchers’ judgment, which should
be viewed as a relative frame of reference rather than as a precise measurement, the
Chinese managers’ English proficiency fell largely within the FSI (Foreign Service
Institute Scale) Sl and S4 range (Jones, 1982).

FSI scale divides the foreign and second learning proficiency into five levels; namely
Sl, S2, S3, S4, and S5. Sl indicates that individuals are able to use greetings, ordinary
social expressions, and ask simple questions. Individuals with S2 proficiency level are
able to satisfy both routine social demands and limited office requirements. In this

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study, zone 1 individuals fell under this category. In regard to FSI scale, individuals
under S3 category, have sufficient control of language structure and adequate
vocabulary to handle representation requirements and professional discussions in one
or more specified fields. In this study, zone 2 individuals are those who possess
equivalent language proficiency described as FSI S3. S4 are individuals whose spoken
command of language is equivalent to that of native-like proficiency. Zone 3
individuals fell within this category.

The formal interviews were supplemented by unstructured interviews, observation

procedures, and analysis of company records and documents. Cross-checks of
accuracy were achieved by interviewing in three languages. Because the sample was
made up of companies of different sizes drawn from different industries, the findings
are not industry-or size-specific and can thus be generalized to a wide range of
industries and company sizes.

At the beginning of the research project, the researchers developed a 15-question

English interview guide. This methodology evolved to one of asking open-ended
questions followed up by probes. The interview questions with the local Chinese
personnel were related to (a) the language that company personnel use (both oral and
written) on the job and in the social context, (b) examples and reasons for any
misunderstanding and communication problems between speakers of different
languages. @ circumstances in which company personnel either ask or do not ask for
clarifying misunderstanding, and (d) the importance and suggested content of
language training. The discussions with expatriates centered around four issues: (a)
content/style/timing of messages, (b) methods and channels of communication, @
problems encountered in the communication process, and (d) examples of the
communication process.

This approach proved inadequate, and the methodology further evolved into an
approach described as objectifyin g interviewing. In this methodology, the researchers
were engaged in interactive dialogs with the respondents. In effect the researchers
were supplying background and a frame of reference in which both parties mutually
explore issues together. At the time of gathering the data, the researchers only
reluctantly used this approach and did not in fact realize that they were utilizing an
alternative research methodology. Based on their earlier research training, the
researchers lost data in the initial stage because of the attempt to follow the research
norm of avoiding asking leading questions and using non-directive interviewing
techniques.

The research methodology evolved into a case study approach that used a variety of
techniques. Through personal relationships in five out of the eight firms studied, the
researchers were able to extend the data collection during social situations. Over
lunches and dinners, the researchers were able to further explore the communication
system. Takin g two examples, the English-only speaking researcher met with an
expatriate at the American Club in Taipei for exercise and dinner over a two-month
period. During these sessions, the discussions would focus on the new data gathered

5
by the researchers. This expatriate continuously provided insights that were followed
up in succeeding interviews. In explaining and elaborating on these conversations
with the Chinese-speaking researcher, the researchers continually expanded their
insights. In addition, the Chinese-American researcher had a personal college friend
who was an executive secretary at one of the companies. Through extended
conversation with that individual, the researcher gathered examples and insights that
broadened the texture of the research.

Findings and discussion

Zones of communication

Among expatriates, second-language (Chinese) proficiency varied. Some possessed

nearly native-like Chinese proficiency, but some only spoke very limited survival
Chinese or so-called “shopping language”. For discussion purposes, three zones of
communication; namely, zone 1, zone 2, and zone 3 are categorized.

The zones have general application and can describe the second language abilities of
expatriates and local Chinese managers. Exhibit 1 describes the language proficiency
levels of the three categorized expatriates and the local Chinese managers as well as
their cultural knowledge. Zone 1 refers to the communication ability of expatriates
who possess no proficiency or a limited to low level of Chinese language proficiency.
Zone 2 is the communicative level of those who have resided in Taiwan for over a
period of time and could speak and comprehend up to about 70% of their daily
conversation and daily routine tasks. Zone 3 is the communicative level of those
individuals who possessed nearly native-like Chinese proficiency. Expatriates with
such of high second language proficiency would be individuals who were born in the
Chinese-speaking countries and went abroad for advanced studies. After graduation,
these individuals stayed in Western countries and were naturalized as citizens of the
US or the UK.

Comparison of Communication in the Zones

Exhibit 2 provides a comparison of the communication process in the three zones.

Expatriates had to make more adaptations in Zone 1 and successively fewer in Zones
2 and 3. As the expatriates’ Chinese proficiency increased, they were able to send
messages more directly and could gradually discard the Zone 1 adaptations. In Zone
1, supplemental communication channels were developed to facilitate communication;
the channels could be partly discarded in Zone 2 and completely discarded in Zone 3.
In Zone 1, communication between senders and receivers had distinct phases as
messages were sent through the auxiliary channels and the expatriates then had to wait
for responses. These phases were replaced in Zone 2 partly and Zone 3 totally because

6
the expatriate managers could communicate directly in Chinese. As this process
unfolded, one-way communication with delayed feedback (Zone 1) was firstly
replaced by one-way communication with feedback (Zone 2), then by two-way, fluid,
continuous communication (Zone 3). The volume and texture of communication
increased from Zone 1 through Zone 3 as informal communication was added to. and
at the same time enriched the communication network.

Zone 1 Communication

Zone 1 expatriates modified their communication approaches because of their

inability to use regular normal communication style and methods. These adaptations
involved (a) redefinition of their communication strategy and (b) change in their
interpersonal communication channels that were developed either by design or
informally to compensate for their language deficiencies.

Redefinition of communication strategy

The expatriate managers refined their roles to compensate for their communications
limitations; this redefinition changed the content, timing, and methods of
communication. ,At both the senior and middle levels, the expatriates practiced
delegation by results expected and avoided problems of over supervision. At the
senior level the expatriates concentrated on translating and integrating corporate
(headquarters) objectives and programs into operational programs for the Taiwan
operations. At the middle levels, the expatriates concentrated on setting forth clear and
understandable objectives and policies. However, there were misunderstandings, one
example being the assignment of the design of a building with Chinese characteristics.
In this case, the expatriate manager, thinking he delegated in unambiguous terms, was
presented by his design team with a very sensible and economical design but not one
that did not conform to classic Chinese characteristics. The design team interpreted
Chinese to mean modern Chinese design as currently practiced in Taiwan and not
classic Chinese design as the expatriate had intended to communicate.

Interpersonal communication

Zone 1 expatriates modified both their roles as senders and receivers of information in
the interpersonal communication process. Because feedback was either delayed, lower
in content, or non-existent in the Zone 1 environment, the expatriates adjusted their
approaches to sendin,0 and receiving messages. Confronted with the difficulties of
communicating in an unfamiliar environment, expatriates with low second-language
proficiency altered their communication style and messages. Because of the language
barriers in the Zone 1 environment, the expatriates could not provide the same quality
of feedback that they could have with higher proficiency language individuals; thus
the expatriates took more care in both verbal and written communication. This
deficiency resulted in a pattern of expatriates sending fewer messages and
concentrating more on developing clarity in these messages.

Contributing factors

In addition to expatriates’ adaptation, there were contributing factors that facilitated

an efficient exchange of information between expatriates and Chinese. In relation to
the Chinese nationals, the expatriates occupied prominent positions in the company
hierarchy. Consequently, the Chinese subordinates could focus on finding the
meaning of messages being sent by relatively few individuals. In transmitting
messages, expatriates simplified the content of their verbal message. This language
simplification process allowed the Chinese to expand and interpret the messages sent
by the expatriate managers. At all scheduled meetings, the expatriate managers used a
blackboard or newsprint to emphasize key points. They would write key words and
phrases to amplify and reinforce their verbal messages. The Chinese subordinates took
these key points away from the meetings, even though most Chinese did not
completely understand the simplified explanations and discussions that surrounded the
written summary statements. Even with the limitations in the area of verbal
communication, a highly effective and efficient communication system was
established.

Unintended but beneficial consequences

The unintended but beneficial consequence of this communication pattern was that it
established a cultural fit between sender (the Zone 1 expatriate with limited language
skills necessitating simphfied English language communication) and the Chinese
subordinates (the Chinese with low comprehension in English) but with highly
developed sensing abilities. Through their sensing abilities, the Chinese received non-
verbal messages through the context element of the communication process. The
messages corresponded to messages that were sent by Chinese bosses and to the
principles of high context communication. The expatriate used few words,
emphasized by being written on the blackboards or in a handout and newsprint,. and
this communication pattern corresponded to the Confucian and Taoist instructions of
being sparing in the use of words. Without filling in the full message, corresponding
to the concept that “less is more”, the expatriates were communicating effectively and
efficiently to their Chinese subordinates. In terms of effectiveness, the expatriates
chose expressions and messages very carefully, thereby conveying the essence of the
messages in language understandable to the Chinese subordinates. In terms of
efficiency, the Chinese did not have to ask for clarification or amplification of the
messages. These Chinese subordinates were given room to interpret and expand the
verbal messages but were also given parameters to guide this expansion. Because of
the tendency of Chinese to expand any received message regardless of completeness,
the expatriates were providin g a communication channel for constructive expansion.

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By providing messages that had to be expanded and interpreted, the language
deficiencies of both expatriates and Chinese indeed created an information exchange
that was different but one in which language deficiencies and cultural differences
produced messages that were both effective (successfully completed) and efficient
(requiring less transmission time).

Behavioral pattern of Zone 1 expatriates

Because of the low second-language competencies, the behavior pattern of the Zone 1
expatriates was quite similar in certain respects to that of Chinese superiors. This
corresponds to patterns described by Silin (1976) and Redding (1990), who point out
that top level Chinese managers remain aloof and remote from their subordinates.
They run very centralized organizations and make all major organizational decisions.
In seven out of eight studied organizations, the top-level expatriate managers made
the major enterprise decisions, relying heavily on interaction with headquarters and on
environmental information outside the organization and outside Taiwan. These
expatriate managers in effect remained aloof from their Chinese subordinates mainly
because language deficiencies prevented the development of social interchange. The
communication style of these Zone 1 expatriate managers was influenced by their lack
of Chinese language skills and by their Western backgrounds.

The expatriate managers in all eight organizations differed from the patterns of
Chinese managers. The expatriate managers did not use the divide-and-rule tactics
used by Chinese managers in Chinese organizations. Rather than parcel out
information to maintain control, the expatriates relied on their assessment of
information from headquarters and from the formal authority of their positions to lead
and manage their organizations. In other words, the subordinate Chinese managers
had the necessary information to coordinate amon,g themselves and did not need to
use the expatriate managers as coordinators. In effect, the Zone 1 expatriate managers
who were making major decisions were not involved in the implementation process as
their Chinese counterparts in Chinese organizations would have been.

Chinese subordinate reaction

The Chinese subordinates reacted positively to the absence of the divide-and-rule

approach. The Chinese also appreciated the positive style of the expatriate managers.
One similar comment was made in various expressions in all eight organizations. As a
secretary stated : “Americans are very kind and generous”. This comment did not
make sense to the researchers until it started to fit into a general pattern. Being a self-
selected group, the Chinese who chose to work for foreign firms did so for positive as
well as negative reasons. A widely held stereotype throughout Taiwan is that Chinese
bosses in the age groups from 45 to 60 (comparable to that of the expatriates) were
“mean” and inconsiderate to subordinates. Whether true or not, this belief put the

9
expatriates in a favorable comparative light. Consequently, the Chinese were able to
identify with the expatriate managers because of cultural similarities (positive
influence) and the absence of undesirable Chinese cultural styles (lack of negative
influence). The expatriates bosses were viewed as kind and generous whereas Chinese
bosses had the reputation of bein g stingy with money and not showing appreciation.
These reputations were passed through the grapevine as relatively few Chinese had
intensive direct experience with expatriates or Chinese general managers.

Seeing themselves as a select group, the Chinese subordinates viewed themselves as

set apart from other Chinese. Normally paid higher wages than could be earned in
local firms, these Chinese also were afforded an intangible prestige. This prestige can
be viewed as the characteristic of general phenomena in which Western products and
services have acquired preferred status in Taiwan. Furthermore, in comparison to
seeking employment in family firms, those Chinese without family or "guanxi”
connections could escape being outsiders in Chinese firm environments. These
Chinese reacted positively to the removal of the restrictive pressures to conform to
Chinese cultural norms. In a sense they were still outsiders, but the Chinese did not
see this as a negative factor.

Ambitious Chinese saw employment in foreign firms as an alternative route to career

advancement and wealth accumulation other than relying on family connections.
Culturally, these Chinese were amenable to accepting the more direct communication
style of the expatriates; there was a cultural fit between the low context-low language
competency expatriates and the high-context and less direct Chinese.

Emergence of link-pins

A critical part of the communication process was the emergence of Chinese

“link-pins” or mediators who served as a bridge between the Chinese subordinates

with low English proficiency Zone 1 expatriates. These link-pins were Chinese
personnel who were fluent in both Chinese and English.

There were varying patterns in the development and use of link-pins. In one pattern,
the link-pins were Chinese managers who had studied in the United States. These
individuals would translate difficult-to-understand expressions (involving slang or
idioms) from English to Mandarin, or vice versa. One Chinese manager who
represented this pattern communicated entirely in Mandarin with his subordinates
except in situations where non-Chinese speaking expatriates were present or where the
Chinese CEO was present (English was the official company language). A second
pattern consisted of expatriates and their executive secretaries; these secretaries took
on the role of link-pins between expatriate bosses and their subordinates.
Representative of this pattern was an American manager in a construction firm and his
executive secretary. Not being threatened by a link-pin process that looked as though
he was delegating authority to his secretary, this expatriate was able to use this

10
process to more closely monitor the work of his subordinates. The subordinates were
willing to provide informal progress reports to the secretary without feeling a loss of
face in reporting problems or difficulties. Usin g this information the expatriate had
developed an information base to give the subordinates constructive feedback.

A third group of link-pins were staff assistants who connected CEOs and upper and
middle-level managers. Serving as a link-pin in a petro-chemical firm was the public
relations officer. Having continuous access to both the CEO and other members of the
management team because of his job functions, this manager could informally convey
information back and forth. This allowed the Chinese managers to use an intermediary
and made it easier for them to convey sensitive information and to avoid direct
confrontation and possibly lose face. As face protection and avoiding confrontation
are prominent elements of Chinese culture (Hsu, 1971; Bond, 1991), these practices
were consistent with and reinforced by Chinese culture. This link-pin manager had
earned the trust of the Chinese subordinate managers, and he had the language
capabilities to serve at a link-pin between these Chinese managers and the expatriate
Zone 1 CEO.

A Fourth group of link-pins were the first-level managers who possessed a better
command of English than their co-workers. At the floor-shop, these individuals were
assigned as link-pins to translate and to assist other first-level managers who spoke
very limited English. These individuals indirectly served as link-pins between work
groups, first level management, and expatriates. In one company a work group was
composed of native Hakka Chinese who spoke neither Mandarin nor Taiwanese, but
the Hakka dialect of Chinese. To assist in managing this particular group, a Hakka
individual who was fluent in English, Chinese (Mandarin), and Hakka was assigned to
assist in managing this work group. He in effect served as the link-pin between the
Taiwanese and Mandarin speakin g managers and the Hakka Chinese who spoke
neither Mandarin and Taiwanese. Hired for this role specifically and also groomed as
a fast-track candidate, this link-pin split his time between managing this work group
and carrying out special assignments. Because of his language abilities, he created a
bridge with tied together many parts of the organization. He had access to various
departments by carrying out special assignments.

The fifth group of link-pins were top-level Chinese reporting directly to the expatriate
CEO. At an electronics firm, two upper-level managers served as overall or general
link-pins. One upper level manager concentrated on technical matters, and the other
emphasized administrative affairs.

The link-pin relationships were not formally recognized in the formal organizational
charts; rather, they were informal arrangements that developed out of the need to
communicate. The link-pins were tied to their respective groups through trust
relationships that were built up over time. Saving and giving face was the essential
ingredient in evolving into being a link-pin.

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Danqers in Zone 1

There were dangers in Zone 1, the most critical being the psychological health of the
expatriates. By “readin g between the lines” and watching carefully, the researchers
concluded that all of the expatriate managers with limited Chinese language
proficiency showed symptoms of stress. This stress manifested itself in feelings of
isolation and lack of control. Physical effects-evidenced in speech and body
movements -were observed, especially when these expatriates were discussing their
problems and overall impressions. But apparently this stress was not translated into a
significant lowering of enterprise efficiency. The judgment of the researchers, backed
up by operating results, was that these were seven highly efficient enterprise
environments with the eighth being efficient until the Chinese partner withdrew from
the venture. Rather, the cost was directly absorbed by these expatriate managers
themselves or possibly indirectly in less than optimal decisions made by these
expatriate managers. Because of compensatin g factors mentioned previously, the
expatriate managers did not feel in control and suffered a feeling of isolation; but the
overall results were that (a) major decision makings were highly centralized, and (b)
implementation and control were highly decentralized. The critical factor that existed
in the firms studied was the existence of effective link-pins who in fact controlled and
directed the flow of information. The expatriate managers took an external focus
thereby linkin g the Taiwanese operation to headquarters and other overseas units.
Meanwhile the Chinese were freed from excessive top-down control. Communicating
the corporate culture was the major communication task for Zone 1 expatriate
managers.

Expatriate cultural studies

Lastly, two expatriate managers specifically undertook cultural studies to better

understand their Chinese colleagues and subordinates. One banking manager prided
himself on his Chinese studies and stated that he had altered his management style
accordingly. In loan meetings for example, he structured the discussion so that each
loan officer had an assigned time to speak without interpretation and so that everyone
had to use the assigned time. There were at least two rounds in the decision-making
process-the first was given to presenting analysis and the second to announce the
recommendations. This approach was derived from Chinese norms of allowing
individuals to present completed, thorough statements and avoiding open
confrontation.

Zone 1 expatriates did not engage language tutors. The job demands and stresses were
too great, according to the expatriates, to take on the additional task of language
learning.

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Zone 2 communication

Zone 2 includes those individuals who were able to satisfy both routine social
commands and to handle professional discussions with one or more specified fields.
The dynamics of the communication process in Zone 2 were significantly different
from Zone 1; the Zone 2 expatriates could now interact with the local Chinese in the
Chinese language. Communication was now possible with all Chinese and not just
with those Chinese who had English language speaking abilities.

Differences between Zone 1 and Zone 2 communication

To point out the differences between Zone 1 and Zone 2 communication, the
following are contrasting examples of Zone 1 and Zone 2 plant managers. The Zone 1
manager stated that he felt a constant pressure when he would walk through the plant.
Unable to speak directly to the first level supervisors or workers, he became
increasingly reluctant to tour his own plant. In his first year he was able to “get by” by
saying a few Chinese words and the Chinese responded well to his attempts at
minimum Chinese. But this routine became difficult to repeat and this expatriate had
eliminated the embarrassing tour situation by his second year. He thus became
isolated because of his language limitations. The Zone 2 expatriate had just the
opposite experience. His language skills fell in the low Zone 2 level, but he could
carry on social conversations and understand the essence of some technical Chinese
conversations between Chinese that he would overhear during his tour. By being able
to greet Chinese as he walked through the plant, he was able to positively demonstrate
the interest of upper level management in the floor operations. At the same time, this
expatriate stressed that he was careful not to communicate anything that could be
interpreted as a command or even a suggestion.

Zone 2 language environment

The Zone 2 expatriates were not as isolated as Zone 1 expatriates. However, their
second language competency (especially the individual who possessed low level Zone
2) was not developed to the extent of bein,g able to understand and communicate
sensitive interpersonal or technical issues. In these areas the Chinese with whom they
interacted in most instances would have higher level English language abilities than
the expatriates. So the Zone 2 expatriate managers would continue to use English as
the medium of exchange in normal business communication but would be able to use
Chinese language competency to supplement their communication. This means that
Zone 2 expatriates can productively use their Chinese language competency to (a)
listen to Chinese conversations and pick up an overview of the main points and (b)
use Chinese in social conversation to bond more closely to the Chinese colleagues and
subordinates. As long as expatriates confined themselves to listening, information
gathering, and social conversations, the use of the Chinese language skills was a

13
positive factor for Zone 2 expatriates. It was in cases in which these Zone 2
expatriates “overused” their Chinese language skills that communication problems
developed.

With intermediate and improving second-language skills, Zone 2 expatriate managers

were in a position to communicate directly with a larger number of Chinese
individuals. The information loss that occurred in the Zone 1 indirect communication
process was now reduced. It now became possible to simplify the communication
process by eliminating the intermediaries or link-pins.

At one company, a sales manager conducted his quarterly meetings in Mandarin.

Using what he called a “narrow window approach”, he isolated over a two-year period
a vocabulary that could be used in marketing situations. He identified the essential
Chinese vocabulary and used this vocabulary in oral communication. In spite of the
effort expended by this expatriate, the Chinese did not react favorably to his
extraordinary effort. The Chinese managers would rather have had the meetings
conducted in English and have Chinese translations to supplement the English
language communication when necessary. The second-language proficiency level of
this expatriate manager was not sufficient to handle nuances in Chinese, and the
Chinese subordinates felt that he oversimplified the marketing issues. This judgment
applied to Chinese at all levels of English-language proficiency. Those Chinese
managers with low-level English-language competency could pick up the essence of
the presentation by studying hand-outs and looking at visual aids. More importantly,
those Chinese personnel with a better command of English served as link-pins for
those Chinese individuals with low-level English proficiency.

As receivers of messages. the Chinese subordinates from eight MNCs stated that they
would have preferred to receive higher quality messages in English rather than
simplified Chinese messages. In receiving the information, the Chinese could then
work among themselves to interpret the messages. The Chinese were much more
sensitive to a process of simplifying Chinese than they were to a similar process of
simplifying English. With English, they had a message they were more confident in
receiving. With the Chinese message, the Chinese individuals did not have the same
confidence -the Chinese were much more sensitive to grammatical errors in their
native language. In fact, this Zone 2 expatriate did. of course, send more
grammatically correct messages in his native language than he did with his attempts at
Chinese communication. The Chinese, unaccustomed to hearing their native tongue
spoken by a foreigner, were distracted by the accent and grammatical constructions.
Possibly, the reaction would have been less if Chinese personnel had been able to hear
second-language speakers more frequently; but in the case of this expatriate banking
manager, the quarterly meetings did not allow enough exposure to enable his Chinese
subordinates to comprehend his attempted Chinese messages. The local Chinese
managers were only exposed to this expatriate manager speaking Chinese on a non-
continuous (quarterly) basis and in a small number of one-day meetings. Continuous
and expanded exposure may have allowed the Chinese to “tune their ears to his way
of speaking”.

Another Zone 2 case illustrates an expatriate who had acquired the second language
skills to overcome the communication difficulties experienced by the first-level
managers. This manager’s language skills had risen to a level where he was able to
carry on normal business activities in Chinese, although this added effort led to
fatigue and anxiety. The researchers observed the same anxiety symptoms as with the
low-language (Zone 1) expatriate managers although the causes were different.

Possessing an intermediate level of Chinese language proficiency, one of the Zone 2

CEOs from a consulting firm had increasingly been accepted by his Chinese
colleagues and subordinates. In contrast to another Zone 1 CEO, whose efforts to
become an insider were resisted by his Chinese subordinates, this CEO possessed
sufficiently high-level Chinese language skills to be accepted as an insider. His
language skills in fact enhanced his reputation and authority in the eyes of his Chinese
subordinates. His communication problems arose in his evolving relationship with the
Chinese Chairman of the Board. As described by Redding (1990) and Hsu (1971),
these two individuals increasingly mixed business and social activities. The Zone 2
expatriate CEO went from being an outsider to gradually becoming an insider. This
transition created a new set of expectations; that is, the expatriate CEO was expected
to conform to the norms of the Chinese culture. Because the Chinese person was the
senior individual in this relationship, the junior Westerner was implicitly expected to
respect and honor this relationship. Their relationships should be tempered by the
Chinese concepts of “jjen” and “lli” (Hsu, 1971). “JJen” can be translated as
“humanness” and “lli” as “propriety”. Being interrelated concepts in Confucian
tradition, humans should show compassion toward one another in established
relationships (jen) and show this compassion in structured ways (li). Being
unconsciously influenced by Chinese tradition, the researcher’s interpretation is that
the Chinese Chairman of the Board unconsciously expected the newly culturally-
integrated expatriate to act according to these Confucian codes.

Over a one-year period, the two individuals evolved into the above-mentioned roles;
this created an environment of rising expectations. At a Board of Directors meeting,
the expatriate CEO did not conform to the insider role he had established for himself
with the Chinese Chairman of the Board. Thinking he had a policy agreement with the
Chinese chairman before the meeting, the expatriate CEO was shocked to hear a
modified policy announced by the Chinese chairman. Reacting instinctively, the
expatriate CEO interpreted the chairman’s intention, and this led to an open
disagreement. Having “above average” but not native-like Chinese abilities, the
expatriate’s disagreement came across as more crude and blunt than intended. The
expatriate CEO still lacked the Chinese language skills to deal with sensitive issues
effectively. More importantly, he did not follow the cultural modes and tradition of
the host country of which he was now a part. On the next day after the Board meeting,

15
the Chinese chairman resigned his post and called for repayment of a personal
investment that he had made to the company.

Language and culture pitfalls and opportunities

The combined language and cultural pitfalls of a Zone 2 environment are illustrated
by both language-related and culture-related difficulties that the expatriates
experienced in their companies. Zone 2 offers both additional opportunities and
pitfalls. If the expatriates confined their newly acquired Chinese to social situations,
the use of Chinese language was considered a positive factor that could broaden and
deepen the relationship of the local Chinese and expatriates. The Chinese appreciated
the expatriate’s effort, and the language exchange did not interfere with business
communication. In the case of listening, this was definitely a plus. The expatriates
were able to monitor the Chinese conversation and felt less excluded. Indirectly, as
the Chinese realized that the expatriates could understand their conversations, they felt
a pressure to transfer their speech to English. It was in fact easier to exclude the
expatriate and speak Chinese in front of the expatriate if the expatriate did not know
any Chinese. There was much more language switching initiated by the Chinese when
the expatriate had even low-level Chinese language skills. To provide an overview,
the researchers found that expatriate second language competence most always aided
effective communication if confined to social situations for speaking and listening and
in business situations for listening.

Zone 3 Communication

In Zone 3, the expatriate’s Chinese language proficiency level is nearly native.

Continuing to fulfill the link-pin function with the corporate headquarters (as for
Zones 1 and 2 expatriates), the Zone 3 expatriates also were able to participate more
actively in the management activities of Taiwan operations.

Having additional personnel to serve in the role of linking the expatriates and the
Taiwanese personnel was essential in Zones 1 and 2 but not a “must” to the Zone 3
expatriates. That role could now be performed at least partially by the expatriate
manager. The danger in a Zone 3 environment is that if the expatriate spends too
much time working with the Taiwanese operations the expatriate may lose contact
with the corporate headquarters. The possible result is that the expatriate will become
less effective in communicating the corporate philosophy and culture and that the
Taiwanese operations will become less successfully integrated within the corporate
family. Because the Zone 3 expatriate is not constrained by language, the expatriate
must strike a balance between (a) maintaining contact with the corporate headquarters
and thereby not losing touch with the corporate culture and (b) implementing the
corporate culture throughout the Taiwanese operation by being deeply involved in
day-to-day operations.

16
One executive in the study who successfully accomplished this dual task was the CEO
of a construction company. Bein g a naturalized American citizen and retuming to
Taiwan after 30 years in the United States, he insisted on maintaining English as the
official company language. Stressing the need for a cooperative work environment
and the importance of early discussion of problems, the office environment of the
Taiwanese branch resembled that of the home office in the United States.

Patterns in Zone 3

There were two different patterns in Zone 3. One situation is that of overseas Chinese
returning to Taiwan. These individuals were fluent in both the English and Chinese
languages. Communication without alteration for language deficiencies is possible
with this pattern. In communicating with these individuals, a communicator would
send or could receive a standard message (in either Chinese or English). The above
mentioned CEO was a case in point. He dealt equally well with expatriate managers
or with low-level or non-English speaking Chinese subordinates.

The second pattern was that of expatriates who have acquired native-like fluency in
spoken Chinese. One example was an engineering superior who had extensive
language training before assuming his position in Taiwan. His style represented a
Western participation approach with a mixed language environment. Because English
was the official company language, this expatriate manager used English as his prime
language in business situations in the office. However, he switched to Chinese when
communication could be improved by usin, g that medium. Unusual for Chinese
culture, this expatriate manager had extensive social relations with his work group. At
least once a week, he, together with his departmental engineers, would have a Friday
afternoon beer, called a TGIF party, much as in Silicon Valley firms in the US. Once
a month, the group had a official meal together, and these scheduled activities were
supplemented by informal socialization. The language used in these social gatherings
was Mandarin exclusively. The expatriate had imposed a Western style participative
work environment together with a mixed English-Chinese language environment; the
self-selected Chinese who associated with him responded positively to this culture-
language mix.

Generalizations
The objective of the study was to identify those factors in the eight MNCs that
facilitated the development of highly effective communication systems in spite of any
language deficiencies and cultural differences. The overall findings were interpreted
in terms of three communication zones; expatriates made different adjustments
primarily depending on their second-language (Chinese) speaking and listening

17
abilities and secondly on their cultural sensibility (either intuitive or by acquired
knowledge).

Since their second language deficiencies were obvious, the Zone 1 expatriates knew
that they had to alter their communication styles in order to communicate effectively.
The adaptations in communication style by Zone 1 expatriates in six out of the eight
multinational corporations studied led to efficient information exchange. One
characteristic or attribute that describes the managers in the six efficient environments
was cultural sensitivity. The Chinese identified the expatriates as compassionate
outsiders and also as reflecting behavior that the Chinese could identify with. By
being disconnected because of language deficiencies (Zone l), the behavior of the
expatriates resembled that of successful Chinese leaders. However, not all expatriates
were successful. While maintaining the requisite sensitivity, one expatriate had not
identified Chinese link-pins to bridge the exchange of information from English to
Chinese. Chinese subordinates also judged this individual as too inflexible, and the
designated link-pins only served to widen cultural misunderstanding. In another
company, the expatriate had progressed to Zone 2 and communicated without the aid
of link-pins. The direct interaction intensified and highlighted the cultural differences,
so that in a stressful situation, the expatriate reverted to his primary direct and
confrontational style, with seriously negative consequences.

Competency in second language communication

By acquiring second-language competency the expatriates enhanced the possibility of

improving both the ease and efficiency of communication. At the same time as
second-language competencies were increasing, there was a parallel development of
new responsibilities and challenges as the expatriate moves into Zone 2 and finally
into unrestricted communication in Zone 3. Rather than “show off’ their second
language ability, the expatriates felt they should exercise restraint and make modest
use of their language abilities. Even in cases in which expatriate managers possessed
an intermediate level (Zone 3) of Chinese proficiency, many Chinese subordinates
could still speak better English as compared to the expatriates speaking Chinese. The
expatriate could utilize listening skills; this is the area of constantly increasing returns.
With even modest listening skills, the expatriates reduce the psychological sensation
of isolation and increases the amount of information at his or her disposal. It is when
the expatriates attempted to use the second-language competencies in oral business
communication that potential problems arose. The exercise of modesty and not
showing off new skills until perfected is an important Chinese value, and the
perceptive expatriate managers adhered to this practice. In addition to constructive
listening, as Chinese-language proficiency improves, the expatriate could make use of
Chinese language skills in situations after work. Since there is a clear distinction
between social and business situations in Taiwan, the expatriate could carefully and
gradually make the transition from Zone 1 to Zone 2. However, to make this
transition, the expatriate needs to make a long-term investment in language training.

18
Adaptations in communication

The adaptations in the communication process can produce highly effective and
efficient communication systems as would be indicated intuitively or simply by using
common sense. Zone 3 is the most effective and efficient communication environment
as supplemental communication networks do not have to be created or evolved in
order to have high-level communication from/in this zone.

In addition, outsiders can bring forth viewpoints, additional information, and ways of
solving problems that are not contained in a monocultural language group. As Adler
(1991) points out, the potential output of multi-cultural groups is greater than for
groups drawn from the same culture. By includin g expatriates in the language-culture
environment, this new “mix” may unleash an energy where both sides
overcompensate for their respective language deficiencies. The constructive struggle
with communication can create cultural synergy and more creative decision making.
In these eight Taiwanese multinational corporate environments, the Chinese had
chosen to be different from their countrymen by taking positions in foreign firms, and
if they did not succeed, their commitments would cause them to lose face before their
Chinese peers.

This study was able to uncover both successful and less successful examples of
expatriate-local Chinese communication. but the study focused on identifying factors
leading to successful communication. By confining the study to companies where
operating results indicated successful operations, the researchers were not searching
for examples of communication breakdowns.

The study was able to demonstrate that it is possible to establish and maintain
effective and efficient communication in language-deficient and culturally divergent
environments. In the widely divergent Western and Chinese cultures, the
communication process through adaptation can meet the demands of effective and
efficient transfers of information. This communication process requires the respect of
both cultures (Chinese and Western), and further improvement is possible as second
language competency is acquired. The danger of intercultural miscommunication is
greatest in the middle zone but can occur at any level. The general proposition is that
better command of second-language proficiency increases the potential and capacity
for effective and efficient communication; but at the same time it brings forth new
responsibilities and possibilities for communication breakdowns. Acquiring cultural
knowledge is a parallel development to the acquisition of second-language
knowledge.

19
 /
Expatriate Local Chinese

Language: Speaking 0%30% ’ Language: Speaking 15%-50%

Z
Listening 0%30% Listening 15%50%
0
Culture: Low I Culture: LOW to low-medium
N
Culturally sensitive to some cultural 1 Culturally sensitive to some
E
knowledge and intercultural / cultural knowledge and
1
communication skills intercultural communication skills
I
Z Language: Speaking 3 I%-60% Language: Speaking 510/c-80%
0 Listening 3 17~60% ; Listening 5 1%-SO%
N Culture: Intermediate ! Culture: High medium
E Both cultural knowledge and Both cultural knowledge and skills
2 intercultural communication skills

Z Language: Speaking 6 l%-90% : Language: Speaking 81%-99%

0 Listening 6 I%-90% j Listening 8 I%-99%
N Culture: High Culture: High
E Advanced cultural knowledge with More cultural knowledge plus
3 intercultural communication skills / skills
,
Exhibit 1: Descriptions of second language proficiency and cultural
knowledge of expatriates and local Chinese in the three zones

Zone 1 Zone 2 Zone 3

Adaptations necessary Fewer adaptations Natural communication

because of expatriate necessary because of process with developed
second language developing expatriate expatriate second
deficiencies second-language lan,ouage capabilities
capabilities

Supplemental Fewer supplemental Least supplemental

communication channels communication channels communication channels

Separated phases of Less separated phases of Inter-connected phases of

communication process communication process communication process

One-way communication One-way communication Two-way fluid,

with delayed feedback with feedback (with some continuous
two-way) communication

Emphasis on formal Formal communication Formal and informai

communication supplemented by informal communication
communication

Exhibit 2: Comparative summary of the communication process in the three

zones

20
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