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Global Journal of Management and Business Research

Volume 12 Issue 23 Version 1.0 Year 2012


Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853

International Organizations and Operations: An Analysis of


Cross-Cultural Communication Effectiveness and Manage-
ment Orientation
By Ephraim Okoro
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.
Keywords : international organizations, cross-cultural communication, intercultural negotiation,
multinational skills, globalization, global economy.
GJMBR Classification : JEL Code : M14, O19

International Organizations and Operations An Analysis of Cross-Cultural Communication Effectiveness and Management Orientation
Strictly as per the compliance and regulations of :

© 2012. Ephraim Okoro. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-
Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use,
distribution, and reproduction in any medium, provided the original work is properly cited.
International Organizations and Operations: An
Analysis of Cross-Cultural Communication
Effectiveness and Management Orientation
Ephraim Okoro

Abstract - The global environment of business has become and opening joint ventures in many parts of the world,
exceedingly complex as more and more corporations and

Year 2012
individuals in the professional and managerial ranks
private entrepreneurs compete to expand their market-share should be trained in the skills of cross-cultural
and differentiate their brands in the world marketplace.
communication competencies. Recent global trends
Globalization has increased consumer awareness, created
and events are positioning business etiquette and
new demands and standards, and made nations more
interdependent. It is now imperative that businesses in cross-cultural communication as critical management
different countries increase their sensitivity and respect for one issues because of the increasing number of businesses 47
another’s cultural differences in order to benefit from the involved in multinational ventures, strategic alliances,

Global Journal of Management and Business Research Volume XII Issue XXIII Version I
growth of international business in the twenty- first century. and joint ventures. Because of the impact of
Studies indicate that effective cross-cultural management, globalization, an increasing number of corporations
communication, and negotiations should be emphasized by from many parts of the world are striving to establish
high-growth multinational corporations competing for global global brand and cultivate multinational consumer
expansion. Corporations that have embraced appropriate
awareness in order to sustain their competitive
acculturation strategies, employed effective cultural awareness
model, and avoided ethnocentric management style in their
advantage. Further, the environment of business has
expansion and growth efforts have been successful. Other become equally complex and challenging as a result of
studies identified the major causes of the demise of global cross-cultural communication, differing standards and
business ventures, citing their managers’ lack of intercultural expectations, and issues associated with management
skills, failure to engage in cross-cultural exchange, inability to ethics.
communicate effectively in the global marketplace, The twenty-first century globally-interdependent
unacceptable practice of business ethics and etiquette, and economy strongly indicates that business leaders and
absence of compromise agreement. Global managers should international entrepreneurs provide opportunities for
establish cross-cultural training in their facilities in order to
their managers to travel abroad to engage in cross-
increase effectiveness across cultures, become efficient cross-
cultural negotiators, and sensitize to the values of
cultural communication so that they will acquire the
counterparts. This study provides an analytical framework and necessary skills and orientation for coping with cultural
recommendations for adaptation of multinational management differences. This global exposure enables managers to
strategies for sustainable business competitiveness relate effectively with citizens of other countries in an
in the current wake of global economy. effort to take advantage of the opportunities available
Keywords : international organizations, cross-cultural in culturally-diverse marketplace. Harris and Moran
communication, intercultural negotiation, multinational (2008) noted that the corporate culture of global
skills, globalization, global economy. organizations affects how businesses cope with
competition and change whether in terms of technology
I." Introduction or economics. Managers operating in multinational
environments must be cultural sensitive, understand the

W
ith the globalization of economies, production
and consumption activities, and markets, it has implications of cultural synergy, and be adequately
become increasingly important that managers prepared for global culture. Yu (2007) pointed out that
at all levels develop sensitivity to cross-cultural as businesses globalize, there continues to be a
communication, intercultural negotiation, and decision- compelling need for standardization in organizational
making. The process of making decisions, reaching design, management strategies, and communication
agreements, and building consensus has changed patterns because managers will find themselves faced
requiring an understanding of cross-cultural with multiple challenges originating from domestic and
communication competence. As corporations are cultural issues and socio-economic systems.
establishing subsidiaries, forming strategic alliances, Adaptation is critical and essential for corporate
success.
International business etiquette as defined by
Author : PhD, Department of Marketing, School of Business, Howard
University, 2600 – Sixth Street, NW, Washington. Chaney and Martin (2007) refers to the manners and
E-mail : eaokoro@howard.edu behavior considered acceptable behavior in

© 2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

internationally social and business situations. In social significant to the success of multinational corporations.
setting, proper social behavior includes cultural A good understanding and appreciation of the culture in
differences in making introductions, exchanging which business is conducted can make international
business cards, acknowledging position and status, managers both effective and productive. Hodgetss and
communicating inter-culturally, dining practices, tipping Luthans (1997) noted the concerns of some
etiquette, giving gifts, and traveling. In international organizations when internationalization began in the
business situations, how competent and competitive 1970s that it would be exceedingly difficult to conduct
firms are both domestically and internationally and how business in the same fashion around the world as a
they effectively communicate to their stakeholders will result of cultural variations and differences. Indeed, the
determine how successful a firm is internationally. attempt to manage people the same way across
Furthermore, as the authors expound, building global cultures presented serious challenges to many global
business relationships depends on the innate ability to businesses.
Year 2012

learn about other cultures and proper training to help a Studies conducted over the past decade
person adjust once he or she is in another culture. In stressed the importance of training managers on cross-
addition, it refers to the customs and regulations dealing cultural negotiation skills as well as cross-cultural
with diplomatic courtesies expected in official communication competence. Globalization has become
negotiations with persons in various cultures. Chaney a megatrend in the present business environment,
48
2 and his colleague explain that when interacting with making it extremely critical that management teams be
colleagues or counterparts of other cultures in a equipped with the appropriate global mindset and
Global Journal of Management and Business Research Volume XII Issue XXIII Version I

business or marketing context, it is important to know cross-cultural values in order to effectively lead a diverse
their customs to ensure that an intended meaning is not workforce. Deresky (2006) stressed the concept of
conveyed in order to avoid unintentionally offending cultural convergence, the shifting of individual
them. Furthermore, other scholars (O’Rourke, 2010; management styles to accommodate the styles used in
Cardon & Scott, 2003; Brett, 2001) see global business other environments and total elimination of parochialism,
etiquette as a natural outgrowth of business stereotyping, and ethnocentrism in managing
globalization, which in many significant ways complicate multinational operations. An analysis of the growth of
the way people from different backgrounds in multinational corporations in the wake of globalization
organizational and learning contexts behave in business (Chaney & Martin, 2011) identified several factors that
situations. They explain that employees who work have been instrumental to the inability of managers to
globally should be trained in technical knowledge, such succeed in a global context. Chief among these factors
as import and export laws of other countries, are ethnocentric predisposition, cultural imperialism,
comparative management styles, and business and parochialism in managing a diverse or multicultural
protocol, etiquette, and ethics. workforce. Essentially, it is counter-productive to lead
international organizations with a mindset characterized
II. " Multinational context of by these types of negative values.
management And cross-cultural Recent developments show that many
businesses are cultivating a global focus by sourcing,
communication producing, importing, or exporting their goods and
Management and communication scholars services around the globe, which makes intercultural
(Chaney & Martin 2011; Harris & Moran, 2000) agree communication and negotiation gain substantial
that international management skills are needed for the prominence in the international business management.
increasing scope of global trades and investments over Further, international business etiquette (the expected
the past decade. A number of the major multinational rules of behavior for intercultural communication and
corporations have expanded their operations throughout management) has become increasingly important
developed and developing nations. Some of the because of the mobility of people. Authors Bovee and
businesses are direct investments and others are Thill (2010) stressed that learning the skills of proper
partnership arrangements and strategic alliances with etiquette in preparation for international assignment is
domestic operations. Studies indicate that independent one of the critical requirements for business success in
entrepreneurs and small businesses have started a competitive context. As the authors stated, some
investing and competing in global marketplaces. behavioral rules are formal and specifically articulated
Therefore, the current global trend of business and others are informal and learned over time which
competitiveness strongly indicates a need for the influences the overall behavior of majority of people in
development of strategic framework for managing, a society most of the time. It is noted that as managers
negotiating, and communicating across cultures in order appreciate, value, and respect cultural differences, they
to achieve the investment objectives of corporations. develop a better understanding of people’s behavioral
Indeed, as Chaney & Martin (2011) pointed out, patterns which gives them a much better understanding
awareness and cultural differences is increasingly of how to properly interact while conducting business.

©2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

Similarly, O’Rourke (2010) identified the most intercultural communication and compromises. They
common factors contributing to managers’ failure to should not only understand their own objectives in the
perform effectively in international business assignments negotiation, but should know their parameters in the
as the inability to understand and adapt to foreign decision-making process. They should also understand
ways of thinking and acting as opposed to technical or that information may be presented in different forms and
professional incompetence. As interest in participation in be prepared to tolerate ambiguity and a reasonable
the global marketplace increases, managers are level of inconsistency. As Chaney and Martin (2011)
required to adapt to new cultures and to become cited, in high-context cultures, such as Japan, meaning
sensitive to differences among people. Bovee and Thill is conveyed through body language, pauses, rephrasing
(2011) added that supervisors face the challenge of as much as in the words used at negotiation meetings,
acknowledging the expected behaviors of diverse whereas in a high-context culture of the United States,
employees, multinational teams face the problem of meaning is conveyed mainly through spoken words. In

Year 2012
working together closely, and businesses have the cross-cultural negotiation, both verbal and nonverbal
difficult task of peacefully negotiating with international communication is critically important and may affect
business counterparts. Thus, the suggested strategic reactions and flow of conversations. Similarly, mixed
globalization imperative for international business messages create uncomfortable feelings for
undertaking requires a practical analysis and international managers as they may be struggling to
application. reconcile the inconsistencies. For instance, in the 49
United States, direct eye contact is expected and is
Cross-cultural negotiation:

Global Journal of Management and Business Research Volume XII Issue XXIII Version I
III." seen as a measure of honesty, trustworthiness, and
challenges and strategies reliability. Conversely, in China and in some parts of
Africa, direct eye contact is considered rude and
Developing global management skills is as
inappropriate. Additionally, direct eye contact with a
demanding as applying cross-cultural negotiation and
superior or senior person demonstrates disrespect and
decision-making. Managers preparing for multinational
hostility in India. Cross-cultural communications skills
assignments should prepare for skills in strategic
are essentials to achieving effective and productive
negotiations and cross-cultural interactions. The
international negotiations. Over time, negotiations
process of negotiation is culture-specific and involves a
involving managers from different backgrounds have not
great deal of sensitivity. Deresky (2006) noted that the
yielded much result because of the tone of
ability to conduct cross-cultural negotiations cannot be
conversation, facial expressions and other culture-
over-stated, which places global managers in a position
specific nonverbal cues. Therefore, international
to learn the complexities associated with cultural
managers should be equipped with the appropriate
nuances and values. Additionally, Carte & Fox (2008)
knowledge and competence to manage complex
highlighted the inherent difficulties in international
situations that arise from cultural differences.
business because of the need to understand cultural
and regulatory variations. For instance, international IV." Cross-cultural communication:
business etiquette requires the ability to adapt to
challenges and strategies
different national processes, patterns, and
acculturations. It should be noted that competitive Several studies (Thill & Bovee, 2011; O’Rourke,
positioning and long-term effective business operations 2011) indicate a strong correlation between effective
in a multinational environment involve a sound international management and cross-cultural
knowledge of negotiating processes and decision- communication. It is stressed that a sound intercultural
making strategies of managers from different parts of communication is vital for international managers as well
the world. as for domestic managers of multicultural and
Studies have suggested the importance of multinational businesses. Miscommunication,
international managers to understand how culture misinterpretation, or misunderstanding is more likely to
affects negotiations with global business partners. As take place among managers and employees from
Movius, Matsuura, Yan, and Kim (2006) noted, it is a different ethnic backgrounds and nationalities than
gross fallacy to make the assumption that individuals among the managers and people from homogenous
who come to negotiation meetings demonstrate “single backgrounds. The ability to communicate cross-
culture” norms, since they often have extensive culturally is required of managers who aspire to succeed
international experience either through work or in global assignments. Managers preparing
education or probably from a multicultural and to work in a domestic business with a diverse workforce
multilingual family, and thus have some acquaintance or who are preparing to work in foreign environments
with various cultures. To achieve a desirable result in should be adequately flexible and trained to adjust their
international negotiations, Salacuse (1998) stressed that communication pattern to the intended audience.
global managers should be adequately grounded in

© 2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

The increasing emphasis on workforce diversity and Chaney and Martin (2011) in their analysis of the
in recent years makes it extremely important that importance of managers’ self-conduct, grooming and
domestic and global managers should devote more appearance, and comportment consistently stated that
time to learning appropriate communication strategies, business etiquette is a major criterion in evaluating
especially for effective management of a diverse performance and overall success in a global workplace.
organization. Communication is an essential part of a Etiquette includes a variety of behaviors, habits, and
manager’s duty and it takes up much of his or her time specific aspects of nonverbal communication.
either interpersonally or with a group of employees. Carte & Fox (2008) and Yu (2007) caution that
Effective intercultural communication largely determines with the tremendous surge in global business ventures
the success of international transactions or the these days, it is vital to learn more about the different
performance and productivity of a culturally diverse cultures and behaviors around the world in order to
workforce. Communication scholars have determined reduce the risk of managerial failure. To effectively adapt
Year 2012

that culture is the foundation of communication, and business etiquette to businesspersons from other
essentially communication conveys culture. As Deresky countries requires both knowledge about the culture and
explained, effective cross-cultural communication the ability and motivation to adapt to different behaviors.
explains whether or not the receiver is from a country For example, the giant retailer Wal-Mart learned this
with a monochromic or a polychromic time system, lesson the hard way when it expanded its operations
50
2 high-context or low-context environment. into Germany. Notably, store clerks resisted Wal-Mart’s
Furthermore, managing intercultural culture of always smiling at customers, because some
Global Journal of Management and Business Research Volume XII Issue XXIII Version I

communication effectively in organizations requires that customers sometimes misunderstood and


managers develop cultural sensitivity, be careful in misinterpreted smiling as flirting. Because of a number
encoding their messages, thoughtful in decoding and of other cultural missteps, Wal-Mart had to leave the
analyzing content and context, selective in choosing German marketplace (Bovee and Thill, 2011). Indeed,
channels for transmission of messages. The increasing becoming aware and sensitive to different countries’
mobility of workers in global markets, expansion of business etiquette is the key to establishing good
international joint ventures and strategic alliances, and business relationships with individuals and businesses
the presence of global entrepreneurs in developing in many countries. The significance of business etiquette
nations makes cross-cultural communication is highlighted by analyzing four selected countries
competence inevitable. As businesses strive to achieve that have conducted businesses in the United States
competitive advantage both domestically and globally, over the years.
equipping managers with the critical communication Earley (1997) notes that business etiquette in
skills enhances performance and improves the quality of the People’s Republic of China is the most reserved and
relationships. A number of studies indicate that cross- most unlike the United States, out of the four countries
cultural communication skills or behavior can be learned included in this cultural analysis. To the United States
to increase the effectiveness of managers with host businessperson, a personal relationship should be
nationals. Improved cross-cultural communication in separated from business. Friendships are quickly
organizations reduces the challenges in international formed and dissolved. Hence, many view the U.S.
management. business relationship as shallow and short-termed, while
business relationships in China are viewed as lifetime
V." A comparative analysis of global commitments (Martin & Chaney, 2011). Further, Chinese
business etiquette business etiquette is directly related to the Chinese
sensitivity to face. Ting-Toomey & Kurogi (1998) and
Communication scholars have emphasized the Earley (1997) refer to face as an evaluation of a person’s
vital role of etiquette in international management credibility and self image. The hundreds of phrases in
environment as well as in cross communication the Chinese language describing face demonstrate the
situations. Managing a multicultural workforce requires sophistication of face and how it relates to
a proper conduct of oneself at all times. In today’s communication behaviors (Cardon & Scott, 2003), such
hectic and competitive society, etiquette might be taken as global business etiquette. The authors further note
for granted or seen as outdated concept, but it affects that Chinese businesspersons employ a number of
perceptions and decisions people make in the global communication strategies designed to receive face or
context of management. It is never over-emphasized give face to others, such as indirectness, intermediaries,
that the ways a manager conducts himself/herself and praising, requests, and shaming. In order to save face,
interacts with colleagues have a profound impact on a they often try indirectness by avoiding public
company’s goodwill or credibility. In addition to effective confrontations. The use of intermediaries avoids direct
cross-cultural communication and negotiation skills, confrontation, especially in conflict situations, such that
proper business etiquette accounts for success of a contact should always be established before
domestic and global managers. Bovee and Thill (2011) representatives of business are sent to China. They

©2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

believe in a win-win negotiation strategy that allows both are naturally reserved in their culture. The English
sides to be winners in order to increase the strength and business person, while having excellent manners, has
scope of the relationship. In addition, Cardon and his “lousy” people skills.
colleague explained that Chinese businesspersons When conducting business in England, the
employ praise to recognize status and position. For rules of business etiquette are controlled and
example, they often times make direct request for favors determined by the English businesspersons’ reserved
because this will signal that a business relationship is character and strong sense of identity (Harper, 1997).
firm. Finally, Chinese businesspersons resort to shame For example, Martin & Chaney (2011) explain that
when individuals violate the trust of a relationship. conservative attire of excellent quality is important in
When conducting business in China or in the England when judging dress and appearance. There, as
United States with a person from China, the rules of well as, in other European countries, dress is an
business etiquette are controlled and determined by indication of social and business status. Therefore, it is

Year 2012
face giving and taking. For example, when giving important to dress your best by selecting clothing made
introductions, remember that the surname comes first of quality fabrics with fine tailoring in Great Britain. In
and the given name last. The introduction is addition, accessories should be of high quality and
accompanied by a bow which is uncommon in many reflect good taste. English inappropriate attire includes
other cultures (Chaney & Martin, 2011). The authors sweat suits and tennis shoes, which are viewed as
stress that out of concern for their business partners; appropriate only for athletic activities. The English 51
many times, the handshake is combined with a bow so businesspersons’ negotiation processes also reflect

Global Journal of Management and Business Research Volume XII Issue XXIII Version I
that each culture shows the other proper respect. their cultural characteristics; they are very formal and
Another example of how face influences Chinese polite and place great value on proper protocol and
business etiquette is the importance of the business etiquette (Chaney & Martin, 2011). In addition, the
card exchange. Chinese business cards represent the authors note that the English can be tough and ruthless
person to whom you are being introduced, so it is negotiators and can sometimes appear quaint and
polite to study the card for a while and then put it down eccentric, many times causing other cultures to
as a sign of respect. Furthermore, Chaney and his underestimate their skill. Mole (1997) adds that the
colleague note that, as a mark of respect and English businesspersons quickly lose reserve when their
appreciation, the Chinese examine business cards basic assumptions about themselves are challenged or
carefully and make some favorable comments while questioned.
accepting them. During meetings with Chinese, it is a Troyanovich (1972) interpretation of business
common practice for them to place business cards of etiquette in Germany is based on the formal culture of
others attending the meeting in front of them on the Germany that defines behavioral expectations in great
conference table in order to properly refer to names, detail, providing its participants with the knowledge of
ranks, and titles. Usually, both hands are used when what to do and when to do it. Similarly, Carte & Fox
presenting and receiving cards, and they position cards (2008) noted point out that German businesspersons
strategically so that they can be read easily. respect authority and hierarchical differences. They
Business etiquette in England is based on a prefer a hierarchical organizational structure because it
strong sense of identity and nationalism. The English avoids uncertainty, where power is ensured within the
businessperson tends to be very matter-of-fact and organization. They are autocrats who prefer formal
tends to be very deadline oriented in business communication when conducting business. In addition,
negotiations (Chaney & Martin, 2011). Traditions and they focus on personal achievements and truth and
customs (etiquette) are very important to the English, as directness are important aspects in business. Tinsley
they tend to be reserved and expect others to act and Woloshin (1974) add that the ideal person is one
accordingly. Unlike businesspersons from the U.S., who can be relied on to do what is expected and whose
business friendships are not necessary (Morrison et al., behavior is predicable, steady, and not much influenced
1994). Carte & Fox (2008) note that because of their by the opinions of others or by opportunity. Further,
individualist culture, like the Americans, they focus on Martin and Chaney (2011) pointed out that more recent
the tasks set out in their job description and think it is research indicates that class status in important to
normal for a boss to reward individual effort. The English Germans, and even though all people have equal rights
businesspersons’ reputation of reserve is well deserved, under the law, in reality inequalities exist.
thus so manifesting itself in their strict adherence to The German businesspersons’ strict adherence
protocol (Martin & Chaney, 2011) and their ability to to behavioral expectations is manifested in their
confront adversity with courage and strength of standards of business etiquette. For example, being on
character (Harper, 1997). The author also cautions that time for all business and social engagements is more
when conducting business in England, be careful about important to the German culture than any of the six
asking too many personal questions too quickly, partly countries surveyed in this paper (Axtell, 1998). Being
because it makes them nervous and partly because they only a few minutes late for meeting can be insulting to

© 2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

German managers and if you are delayed, an from other countries must ask a number of questions to
explanatory call is expected. In addition, the German be certain they understand the intent of what is being
sense of punctuality in all situations has been communicated (Brett, 2001). In addition, (Carte & Fox,
recognized as one of the most consistent stereotypical 2008; NBEA 2007) argue that the aim at initial business
characteristics of the culture (Tinsley & Woloshin, 1974). meeting is to develop a personal trust. Much of the time
The value of time for the German businessperson is not in these meeting is spent exchanging information about
primarily monetary, however, and there has never been the companies in question before discussing specific
any strong tendency to take time from other activities to business proposals. Another example of how Japan’s
increase the amount of time devoted to business affairs. high-context culture affects their business etiquette is
Another example of German business etiquette reflective their attitude towards business relationships. As Martin
of their strict adherence to normative behavior is their and Chaney (2011) and Watson & Chatterjee (2006)
etiquette for introductions. Martin and Chaney (2011) stressed, building relationships and friendships in Japan
Year 2012

explain that in Germany, you always use a title when is a necessary prerequisite for doing business in their
addressing someone until you are told it is okay to country. Signing a contract in Japan, as well as in other
use first names. Troyanovich (1972) notes that German Asian cultures, does not signal a sale or negotiation but
businesspersons are very time-conscious and that their a continuation of a relationship with obligations and
preoccupation with punctuality is reflected in the duties in the future. Indeed, each of these countries has
52
2 formalized way time is reported to the German public. a rich tradition of behaviors and customs that contribute
In agreement, Mole (1999) explains that there is a strong to their standards of business behavior/etiquette and
Global Journal of Management and Business Research Volume XII Issue XXIII Version I

sense that the relationship between the company and knowing what each expects can aid in improving the
the employee is contractual, thus you are paid for so business relationships that exists between different
many hours and you work as hard as you can for that cultures.
period of time.
Bovee and Thill (2010) discusses that Japan’s
VI." Summary
style of business etiquette, as other Asian cultures, is As business organizations embark on global
based on their high-context communication. In high- ventures and competitiveness, managing cultural
context cultures, people rely less on verbal differences, inter-cultural communication, and cross
communication and more on the context of nonverbal cultural negotiation and decision-making are the most
actions and environmental setting to convey meaning common challenge to international management.
because so much of the message in carried in cues and Success or failure in managing a diverse or multicultural
“between the lines” interpretation. These contextual workforce largely depends on the ability of managers at
differences are apparent in the way businesspersons in all levels to communicate effectively with people from
Japan approach situations such as decision making different backgrounds and nationalities, and showing
and negotiating. For example, negotiators working on respect for cultural differences. International business is
business deals in Japan may spend more time building the outgrowth of globalization which is driven primarily
relationships instead of working out contractual by economic interdependency and advances in
agreements. In other words, protecting the business technology, but the success in global business ventures
relationship may be as important as making the final will be affected by the inability of international managers
business decision. Martin and Chaney (2011) reported to understand appropriate business etiquette, customs,
that the use of high-context communication can be very and values needed to conduct business among nations
confusing to the uninitiated, nonsenitive intercultural of the world. Indeed, a number of management and
businessperson. For example, the Japanese say “yes” communication studies strongly indicate that an
for no but indicate whether “yes” is yes or really no by understanding cultural differences as well as effective
the context. Similarly, (Carte & Fox, 2008) notes that intercultural communication competence will not only
high context communicators tend to communicate more help businesses to bridge the communication gap
implicitly. When a Japanese businessperson speaks, among countries involved in international trade
they expect the person to interpret what they mean by negotiations, but it will also enable multinational and
their knowledge of the cultural values that lie behind the multicultural managers to succeed in their various
words. foreign operations, global joint ventures, and strategic
When conducting business meetings in Japan, alliances. Because communication is culture-bound
Bovee and Thill (2011) explain that the rules of etiquette and culture specific, it is important that countries
are controlled and determined by their cultural context, involved in international business devote adequate time
the pattern of physical cues, environmental stimuli, and to learn, understand, and appreciate the different ethical
implicit understanding that convey meaning between and cultural habits and appropriate etiquette for
two members of the same culture. For instance, since conducting business transactions on a global scale.
the Japanese do not use the word “no” and have such The acquisition of these competitive global skills and
subtle verbal and nonverbal cues, businesspersons competences will enable high-growth businesses

©2012 Global Journals Inc. (US)


International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness
and Management Orientation

establish lasting strategic relationships and retain their 16. Movius, H., Matsuura, M., Yan, J., & Kim, D.Y.
workforce for longer periods of time. In light of the " (2006, October). Tailoring the mutual gains:
advantages and complexities associated with 17. Approach for negotiations with partners in Japan,
globalization and multinational operations, cultivating " China, and Korea. Negotiation Journal, 22(4), 389-
cross-cultural awareness and skills, and developing 435
multicultural sensitivity and global mindset by managers 18. National Business Education Association. (2007).
will lead to sustainable growth in international business. " National standards for business education. (3rd
edition). Reston, VA: Author O'Rourke, IV, J. S.
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