International Business Culture

Culture in International Business

Culture is both the most fascinating and the most difficult element to grasp in international business. A lack of appreciation for culture can pose serious risks to a business, potentially leading to failure. Therefore, culture is as crucial as political or economic considerations in the international business environment.

Attributes of Culture (Professor Hari Jantis)

1. Culture provides standards for perceiving, communicating, and acting among group members sharing a language and geographic location.
2. These shared elements are passed down through generations, undergoing some changes, indicating that culture is not static.
3. Values represent unexamined, taken-for-granted assumptions that guide the behavior of group members. This explains why certain behaviors are natural in one group but unusual in another.

Example: Russian Culture

Russians commonly maintain a serious expression and smile only during significantly positive events. This behavior might be misinterpreted by people from other cultures as unhappiness or grumpiness. International businesses should consider this when introducing or marketing products to the Russian market to anticipate reactions.

Culture as an Iceberg (Edward Hall)

American scholar Edward Hall likened culture to an iceberg to illustrate its hidden layers:

• Visible Portion: Easily observable aspects like dress, food, and religious practices.
• Hidden Portion: Influences on thinking, interpretation, and behavior, which are harder to observe and appreciate.
  Hall suggests that experiencing a culture directly is the best way to learn about it.

Cross-Cultural Models and Categorizations

To assist international managers, cross-cultural scholars have developed models and categorizations. The readings for this week will provide more theories and expand knowledge about this complicated topic. However, it's a starting point and should encourage further exploration of cultural sensitivity and intelligence.

Cultural Sensitivity and Cultural Intelligence

Cultural intelligence is the ability to adapt to different cultural contexts and interpret behaviors as a member of that culture would. It is a key competence for international managers and a skill to develop.