Doing business across cultures Usunier (1998) Marketing across Cultures Prentice Hall

The key to success Choosing the right partners, agents, etc high cost of switching – so it is important to get right both: -the terms of the deal the relationship between the people Relationships depend on trust Cultural misunderstandings undermine trust

communication is decoded according to culturally-conditioned preconceptions, especially credibility of the source. –important to research the differences in organisational culture in expectations of correct business behaviour

Who is a suitable business partner? Or what type of manager do you respect? Strong decisive plain speaking young with new ideas leads from the front Cautious open-minded modest old and experienced delegates to others

Do you agree that Managers should admit their mistakes? Managers should not be addressed by their first names? Managers should earn respect, not expect it because of their status? Powerful people do not need to shout? Successful men are usually fat?

Tangled webs Stories Rituals Symbols Power Organisation Control Uncertainty Avoidance Power Distance Individual Collective Masculine Feminine

Organisational cultures High / Low Power Distance -delegated authority before consulting superiors High /Low Uncertainty Avoidance -speed of decision-making -paper-work required to formalise arrangements High /Low Individualism -obliged to support the company line -flexibility in negotiations High / low Masculinity the values and attitudes of the individuals.

Approaches to negotiation Distributive –dividing up a fixed cake –we win, they lose Limited good –identifying with a group special interest which over-rides everything Integrative –working together to increase rewards for both sides –solving problems for mutual benefit

Mental Processes Ideological –working towards an ideal eg socialist, green, religious, against which everything is judged Pragmatic –solving the immediate problem now Time frame –immediate result or long-term investment Ethnocentricity –how much do they know or care of other cultures

What type of agreement My word is my bond Implicit –Read between the lines On-going and developing Trusting High Context culture Put it in writing Explicit –spell it out Fixed and binding Suspicious Low context (Hall)

Cultural Sensemaking based on Osland and Bird (2000) Academy of Management Executive February Context Roles and Relationships Cultural ‘scripts’ –how to act in that role and context explained by Underlying cultural values the influence of cultural history –see last term’s lecture

Cultural Awareness spiral Level 1 - it’s all very foreign Level 2 - but really they’re just like us Level 3 - or are they? Level 4 - understanding the reasons Level 5 - but that’s totally weird Collins 1987