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The Role of Culture in International Business

The Role of Culture in International Business. What is Culture?. A system of values and norms that are shared among a group of people and that when taken together constitute a design for living. Cultural Values. Attitudes towards concepts of emotional significance:

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The Role of Culture in International Business

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  1. The Role of Culturein International Business

  2. What is Culture? A system of values and norms that are shared among a group of people and that when taken together constitute a design for living

  3. Cultural Values • Attitudes towards concepts of emotional significance: (Individual freedom, honesty, social obligations, love, etc.) • May be argued and fought over • Are reflected in political and economic systems

  4. Cultural Norms Social Rules that Govern People’s Actions Towards One Another, Including: • Folkways – Routine, Everyday Conventions • Mores – Ways of Regarding Behaviors

  5. Determinants of Culture Religion Political Philosophy Social Structure Culture Norms & Value Systems Economic Philosophy Language Education

  6. Cultural Change What cultural changes have you experienced in your lifetime?

  7. Areas where Cultural Difference Can Be Seen Attitudes towards Time Social Distance Interpersonal Relations Group Boundaries Management/Labor Relations Role of Government in Personal Life And Many More…

  8. Exercise 1: Rainbow Mission

  9. Cultural Variation is… …greater within a culture than between two cultures From: Trompenaars, Hampden-Turner Riding the Waves of Culture

  10. Are Intercultural Dynamics Good or Bad for Work Teams?

  11. Increased Creativity Forces Enhanced Concentration Results Better problem definitions More alternatives Better solutions and decisions Teams Can Become More effective More productive Advantages of Multiculturalism From: Nancy Adler: International Dimensions of Organizational Behavior

  12. Disadvantages • Mistrust • Miscommunication • Stress • Inability to Reach Agreement • Teams Can Become • Less efficient • Less effective • Less productive From: Nancy Adler: International Dimensions of Organizational Behavior

  13. BBA Global Teams • We’re All the Same Person • We Find Agreeing Easy • We’re Terrified on Day One • We’re So Smart Culture Doesn’t Matter

  14. Team Effectiveness Intercultural Teams Perform One of Two Ways Single Culture Teams Cross-Cultural Teams Highly Average Highly Ineffective Effectiveness Effective From: Nancy Adler: International Dimensions of Organizational Behavior

  15. What Makes the Difference? • Task-Related Selection (similar abilities, different attitudes) • Recognition of Differences • Establishing Vision/Goal • Equalizing Power • Creating Mutual Respect • Giving Feedback • Goal: Create a Project Culture From: Nancy Adler: International Dimensions of Organizational Behavior

  16. Features of Intercultural Communication • Culture Acts as a Filter • Communication Is Sent Through the Speaker’s Cultural Filter • Received through the Listener’s Cultural Filter • Opportunity for Misunderstanding

  17. Intracultural Communication Intended Message Sender’s Cultural Filter Sent Message Receiver’s Cultural Filter Received Message Intercultural Communication Intended Message Sender’s Cultural Filter Sent Message Receiver’s Cultural Filter Received Message

  18. What Happens When Behavior is Unexpected? • Cultural Differences are Rarely Recognized • Attributed to the Individual • My Counterpart Is: • Incompetent • Subversive • Insane

  19. Break

  20. Final Project Assignments Decide on your team’s 3 favorite topics in order of preference. Selection is random, but you may trade topics with another group.

  21. “But Texans are the Friendliest!” Even Good Will Can Be Misinterpreted

  22. Some Examples • “That’s a Good Idea – Japan • “I Really Don’t Agree With You” – France • “I Won’t Treat You Like a Servant” – The Philippines

  23. Non-Verbal Communication • Proxemics – Latin America • Facial Expression – Asia • Gesture – Italy • Physical Contact – Middle East • Eye Contact – Japan • Volume – Russia

  24. Noticing Patterns • Pattern – “All the Triangles I’ve Met Do X” • “Prediction - The Next Triangle I Meet will Do X” • Conclusion – “Triangles Are People who Do X” • Judgment – “Triangles are X-ish People”

  25. Stereotyping • Can It Be Useful? • What Are Its Disadvantages?

  26. Exercise 2:Cultural Analysis • Read the scenario(s) provided. Discuss with your team what factors might be responsible for the misunderstanding(s).

  27. Homework • Prepare a report on your discussion of Exercise 2 for our next class meeting. Written outline will be turned in to instructor. • Begin thinking about cultural factors in your group dynamic. • Read Trompenaars 1-19

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