The Importance of Effective Cross Cultural Communication in International Business Essay Example
The Importance of Effective Cross Cultural Communication in International Business Essay Example

The Importance of Effective Cross Cultural Communication in International Business Essay Example

Available Only on StudyHippo
  • Pages: 3 (823 words)
  • Published: July 31, 2016
  • Type: Essay
View Entire Sample
Text preview

Due to globalization, companies face new management demands that make traditional methods ineffective. The increasing number of staff and the growth of cross-cultural interaction in international business mean that efficient cross-cultural communication (CCC) is essential for all aspects of a company.

In many cases, internationally active companies send part of their domestic workforce abroad to build a new production plant or subsidiary. These individuals, known as expatriates, often face significant cultural changes when working in a foreign environment. The success of these business activities relies on expatriates being able to overcome cultural differences and adapt to their new surroundings, even if it is uncomfortable. Overcoming these obstacles requires effective communication, especially when coming from different cultural backgrounds. Conducting further research on the topic of cultural communication competence (CCC) and its significance for international business is crucial for future

...

generations dealing with similar circumstances.

Literature Overview

The study of intercultural communication started in the 1960's and was influenced by Kluckhohn and Strodtbeck's "Values Orientation Theory." Edward T. Hall, an American anthropologist and co-founder of this field, expanded upon their research and made significant contributions. His well-known publications, like "Beyond Culture" (1976), along with his theory on "High and Low Context Cultures," are still fundamental concepts in intercultural communication. Geert Hofstede, a Dutch cultural scientist, is another important pioneer in this area whose work remains relevant.


The cultural dimensions theory (1980) by Hofstede, based on Kluckhohn, Strodtbeck and Hall's theoretical framework, is the foundation for most contemporary publications in the field of CCC. Hofstede's research and theories have greatly contributed to this scientific field. Additionally, Dutch scientist

View entire sample
Join StudyHippo to see entire essay

Fons Trompenaars has further advanced Hofstede's cultural dimensions theory in 1993.

In 1990, the Israeli psychologist Shalom H. Schwartz continued the research of the German psychiatrist Ernst Boesch. Boesch had attempted to connect psychological approaches with the theory of CCC in his book "Kultur und Handlung. Einfuhrung in die Kulturpsychologie" (Cultural Psychology) published in 1980. Building on Boesch's work, the German psychologist Alexander Thomas further developed Schwartz's and Boesch's ideas. He wrote the book "Kulturstandards in der internationalen Begegnung (1991)" (Cultural Standards in international Encounters), which primarily focuses on psychological aspects in international business.

The "Global Leadership and Organisational Behaviour Effectiveness Research Program" (GLOBE) is a recent study that is highly relevant to this paper. GLOBE, which started in 1993 at the University of Pennsylvania, is an international long-term management study aimed at developing theories that explain how cultural factors affect leadership, organizational processes, and business efficiency. By using cultural clustering and incorporating these theories and models, GLOBE has produced various papers and books focusing on intercultural management and effective CCC.

Definitions & Basic Theoretical Framework

Before diving into the study's objective, potential research questions, and hypothesis formulation, it is advantageous to establish key concepts. Additionally, exploring the fundamental theoretical framework helps in understanding and grasping the presented material.

Culture

The paper centers on cultural differences, so it is necessary to clarify the term "culture." Various definitions exist in the literature, but none are identical. Geert Hofstede defines culture as "the collective programming of the mind distinguishing the members of one group or category of people from others."

Cultural Iceberg Model

According to Edward

T. Hall's Cultural Iceberg Model, culture is compared to an iceberg where only a small portion is visible. To fully understand culture, it is necessary to gradually uncover the layers beneath the surface. The aspects of culture that can be observed by outsiders are located above the surface and include behaviors, clothing choices, culinary preferences, and living environments. However, deeper exploration through interactions and communication is needed to discover the hidden aspects below the surface. These lower layers consist of perceptions, reactions, emotions, religion, beliefs, morals, values, and an individual's overall identity.

Perceptions

Although people may appear to perceive the same things with their senses, their interpretation of a specific situation can vary greatly. Perception illusions demonstrate this. These illusions are pictures that have two different images, and how each person perceives them varies. Figure 2 exemplifies this phenomenon. Some individuals see an elderly woman with a prominent nose, while others see a young lady looking away from the viewer. Recognizing these variations in perception is advantageous for avoiding misunderstandings with international business partners.

Cultural Dimensions and Cultural Standards

According to Edward T. Hall's model, cultural dimensions are divided into three categories. Hofstede, Trompenaars, and the GLOBE study further expanded on his ideas and created their own cultural dimensions and categories. Throughout the literature, it has been often mentioned that time perception is a significant factor in each of these models. Examining these cultural differences through these models can provide valuable insight into how individuals from different cultures perceive their surroundings differently. Recognizing the existence of these dimensions and understanding how they contribute to certain behaviors enables researchers to

make predictions in advance.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New