For Carson and David

Intercultural
Communication in the
Global Workplace

Fifth Edition

Iris Varner
Professor Emerita, Illinois State
University

Linda Beamer
Emerita Professor, California State
University, Los Angeles
INTERCULTURAL COMMUNICATION IN THE GLOBAL WORKPLACE, FIFTH EDITON
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Varner, Iris I.
Intercultural communication in the global workplace / Iris Varner,
Linda Beamer.—5th ed.
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ISBN 978-0-07-337774-2
1. Communication in management—Social aspects. 2. Business
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aspects. 4. Intercultural communication. I. Beamer, Linda. II. Beamer, Linda.
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For Carson and David
Preface to the
Fifth Edition
Welcome to the fifth edition of Intercultural Communication in the Global Work-
place. The fourth edition has been used around the globe. We are grateful for the
reception of the earlier editions, particularly the many comments and suggestions
users have given us. We have incorporated those comments into the fifth edition
and are confident that this book presents a valuable tool in your understanding of
the impact of culture on international business communication.
The effects of culture on human behavior in general and on global business
activities in particular make headline news almost every day. More than ever
businesspeople cite cultural understanding as the single most important factor in
international success. Prof. Dr. Marion Debruyne is quoted as saying “Culture
is the real power of globalization.”1 Dramatic changes in communication
technology—the growth around the planet of satellite and cellular telephony—
since our first edition have made international communication commonplace.
When we wrote the first edition, e-mail was just starting to be used widely, but
it was almost impossible to attach files to an e-mail. We used FedEx to send book
chapters to each other for comments and suggestions. Today, files can be sent eas-
ily all over the world; we can talk to each other and even see each other on our com-
puter screens. Blogs, Facebook, and Twitter have revolutionized communication.
Technology allows us to use rich channels that do not just transmit text but also
our gestures, facial expressions, and pauses. We can communicate over vast dis-
tances as if we sat in the same room. Companies have embraced this new technol-
ogy to facilitate communication among their employees from around the world. A
survey of new media published in The Economist magazine in April 2006 reported
that thanks to broadband technology, mass media are being replaced by personal
media created by the users of the Internet.1 Since 2006, personal media devices
have developed further, and offer, in addition to a chance to speak and listen, the
capability to receive and transmit data to and from mobile devices. “Nowadays,
YouTube streams more data in three months than all the world’s radio stations plus
cable and broadcast television channels stream in a year.”2 It’s a long way from the
development over 40 years ago of technology to allow internetworking—the ori-
gin of the “Internet”—to exist.
The technological revolution means that organizations need intercultural com-
munication skills even more today than they did when this book was first written.
The fifth edition of Intercultural Communication in the Global Workplace has
updated discussions of globalization and new technology in business communica-
tion. The discussion of multicultural teams in the workplace has been expanded.

iv
 Preface to the Fifth Edition v

What else is new? The fifth edition has a new discussion about the study of
communication in different cultures, and the study of communication between
cultures. It also shows how intercultural communication research fits within the
dominant research paradigms, and includes an analysis of their strengths and
weaknesses. The descriptions of religions and their influence on intercultural
business communication has been expanded. The concept of Cultural Intelli-
gence (CQ) is now discussed in greater detail throughout the book. Chapter 3
has a new section on culture’s influence on how people reason, and Chapter 4
has a new section on self-identity and self-construal in relation to culture.
Chapter 8 includes an expanded discussion about culture’s effect on conflict
management.
Chapter 12 ties together the concepts discussed in all the other chapters. It
applies updated intercultural knowledge to the case of DaimlerChrysler and ex-
amines the cultural reasons for the failure of the merger within just seven years
of its beginning. This chapter also introduces the role diverse teams play in the
success of international business. Two in-depth cases in the Appendix to
Chapter 12 provide an opportunity to apply intercultural knowledge to specific
problems.
Throughout the book we have added more short cases, and kept the introduc-
tory vignettes to each chapter to illustrate the issues covered in that chapter. New
illustrations and examples have been added, often drawn from cultures not men-
tioned in the earlier editions.
Users of earlier editions will notice that the appearance of the fifth edition
is more user-friendly, as we continue to improve the book’s layout and add new
exhibits.
These changes reflect our continued commitment to provide a source for read-
ers that addresses culture and cultural variations, communication across cultures
for business purposes, and the way culture affects organizations.
Many new books have arrived in the marketplace since we finished our fourth
edition, but we are convinced this one is unique: It addresses the issues of culture
and communication within the context of international business.
The fifth edition of Intercultural Communication in the Global Workplace, like
the first four editions, provides examples of how cultural values and practices im-
pact business communication. We explore the relationships among the cultural en-
vironments of the firm and the structure of the firm. We look at how companies
and individuals communicate. Throughout the discussions about specific commu-
nication tasks, we concentrate on the underlying cultural reasons for behavior. This
approach, as we asserted from the very first edition, we confidently believe will
help the reader develop an ability to work successfully within an environment of
cultural diversity both at home and abroad.
We have continued to strive to avoid specific cultural viewpoints in this book
but have come to realize since the first edition that total cultural neutrality is not
possible. Nor is it desirable in a sense; every human has some cultural filters
through which she or he views the world. And comments from users have
confirmed this. Nevertheless, the framework we develop here applies to all
vi Preface to the Fifth Edition

readers regardless of their native cultures. This book is for anyone from anywhere
around the globe who wants to develop and improve intercultural business com-
munication skills. Intercultural business communication is an exciting field, and
we are proud to be able to contribute to a broader understanding of it.

Notes
1. The Economist, April 2006.
2. “The Internet at 40,” The Economist, September 4, 2009, http://www.economist
.com/sciencetechnology/displaystory.cfm?story_id=14391822.
About the Authors

Iris I. Varner is the Director for the International Business Institute and a
Professor Emerita in international business at the College of Business, at Illinois
State University, where she taught the cultural environment of international
business and international management. Her PhD, MBA, and MA are from the
University of Oklahoma. She has the Staatsexamen and Assessorenexamen from
the Albert-Ludwigs-Universität, Freiburg, Germany.
Varner has extensive international experience. She grew up in the former East
Germany and studied in Germany, France, Great Britain, the United States, and
Taiwan. She has given seminars and lectures around the globe, including New
Zealand, Russia, France, Belgium, Japan, Germany, and China and has spent time
in many other countries. She is an ad hoc professor at the University of Lugano,
Switzerland, where she teaches in the Executive Masters Program for Corporate
Communication Management and at Shanghai University, China.
Varner is the author of over 80 articles in the area of intercultural managerial
communication. Her research, which she has presented at regional, national, and in-
ternational conventions, has focused on the connections between culture, commu-
nication, and business practices. She has been honored with the Outstanding
Membership Award and the Meada Gibbs Outstanding Teaching Award of the As-
sociation for Business Communication. She was named a Fellow of the Association
for Business Communication and a Caterpillar Scholar and State Farm Fellow by
Illinois State University.
As a president of the Association for Business Communication in 2000 to 2001,
she contributed greatly to the internationalization of the organization. She was chair
of the Ethics Committee and is an active member of the International Committee.
Varner is a member of the Academy of Management and the Academy for Human
Resource Development. She also serves as a reviewer for a number of scholarly
publications and consults for a variety of national and international firms.

Linda Beamer is an Emerita Professor of California State University, Los

Angeles, where she taught undergraduate business communication, intercultural
communication, and diversity in the workplace, and courses in high-performance
management and international business in the MBA. She received the honors stu-
dents’ Professor of the Year award in 2001, and in 2002 she received the Out-
standing Professor award from her campus, followed by a Distinguished Woman
award in 2005. She subsequently taught intercultural communication to

vii
viii About the Authors

undergraduate and postgraduate students at Unitec New Zealand, where she and
her husband make their home.
She has taught and consulted in the United States, Great Britain, Canada, the
Middle East, China, Argentina, Mexico, Hong Kong, Japan, and New Zealand.
Her BA is from the College of Wooster in Ohio (with one year in Scotland at Ed-
inburgh University), and her MA and PhD are from the University of Toronto. The
latter led to dual U.S.–Canadian citizenship.
Her research, resulting in about two dozen publications and 70 presentations,
has focused primarily on the effects of culture on business communication, with a
special interest in Chinese communication issues. She has served on the Editorial
Board of Business Communication Quarterly and was Associate Editor of the
Journal of Business Communication; she frequently reviews for other publications
as well. She served as President of the Association for Business Communication
in 2004, as Chair of the Intercultural Committee of the Association for Business
Communication, and as a member of the Board of Directors. In 2005, she was hon-
ored with the Fellow award. She was also voted a Fellow of the International Acad-
emy of Intercultural Research at its inception in 1997.
Beamer has been the recipient of several research grants and received the Out-
standing Publication award from the Association for Business Communication.
She held a six-year Visiting Professor appointment at Unitec New Zealand before
moving to Auckland, and held a three-year Visiting Professor appointment at
Shanghai University until 2009. She taught at Chuo University in Tokyo in 2004
and 2010, and has been a guest lecturer at many campuses around the world.
Acknowledgments
Intercultural Communication in the Global Workplace is the result of many years
of work. Although this book is based to a great extent on our professional research
and personal experiences, we also want to acknowledge the suggestions and ad-
vice we have received from our families, friends, clients, colleagues, and students.
We are particularly indebted to the users of previous editions for giving us valu-
able feedback. Many people have been generous in sharing information with us,
and we are grateful for their support.
We give special thanks to the reviewers who carefully read the fourth edition
and offered their insights and suggestions.
Last, but not least, we thank the people at McGraw-Hill/Irwin, and particularly
Jolynn Kilburg, the developmental editor. Their work and support made this
edition possible.

ix
Introduction
The Need for Intercultural Business Communication Competence
What does culture have to do with business? In the past, many business majors and
practitioners immersed in questions of financial forecasting, market studies, and
management models did not examine culture and the way it affects business. Un-
like the hard data from measurable issues, culture is soft and, at times, slippery. Al-
though it can be elusive, culture is still undeniably important. It’s often easiest to
spot culture at work when something goes wrong, when a key element of culture
is overlooked. Here is an example:
Mickey Mouse took up residence in Hong Kong in 2005, but Mainland Chinese
visitors to the new theme park seemed unsure about the meaning of the Happiest
Place on Earth. Disney film characters like Cinderella, Snow White and the Seven
Dwarfs, and Tinkerbell are based on fairy tales and stories from Europe that are
unfamiliar to children in China. Disney television shows with cartoon characters
for children haven’t been aired in China for decades, as they have in the United
States. Meanwhile, visitors who were puzzled by the theme park wandered
aimlessly up Main Street and had their pictures taken with Marie the Cat—a
character from the 1970s movie The Aristocats, whose appeal is in her appearance:
It is remarkably similar to the hugely popular Japanese figure, Hello Kitty.
However, in early 2006 sparse crowds were replaced by hordes, and visitors’ mild
bafflement turned to outrage. Hong Kong Disneyland was deluged by crowds. Three
times during the “Golden Week” of the Chinese New Year the gates to the park were
closed after the first 30,000 visitors came through, and thousands more visitors with
paid tickets in their hands were turned away. Many parents who had spent large sums of
money on travel to the promised holiday treat were photographed attempting to climb
the fence or toss their child over it. Disappointed patrons threatened to sue Disney.
Disney made a public apology. The problem of too many visitors had come
about because Hong Kong Disneyland, worried about lack of sales, had sold tickets
that were good for up to six months. Many bought their tickets and then held on to
them until the New Year holidays, something the Disneyland managers hadn’t
anticipated. The chairman of the rival Ocean Park was quoted as saying it was a
mess: “Many of the problems ‘were things that somebody who did their homework
should have realized and understood.’”1
Nor was the Golden Week debacle the first cultural bump in the road for Hong
Kong Disneyland. Initially, a park restaurant planned to serve shark fin’s soup, a
Chinese delicacy that was later withdrawn from the menu because of animal rights
protests. Local celebrities were invited for public relations appearances, but they
subsequently complained they weren’t treated well by Disney executives from the
United States. Disney also had learned that Chinese visitors to parks preferred
places for taking photographs over roller coaster rides, so they put fewer rides into
this park, which is the smallest of the six worldwide. As a result, shortly after it
opened the park was criticized for being too small.
x
 Introduction xi

Other culture-related issues that plagued the opening of Hong Kong Disneyland
were the danger to children’s health from people smoking in nonsmoking areas,
and the threat to sanitation from some visitors’ practice of urinating on the
flowerbeds near food areas.
Hong Kong Disneyland isn’t an isolated instance of cultural misunderstandings.
The history of the Disney theme park in France is notorious. Euro Disney had
similar problems with unplanned crowds when it first opened. Locals who had
postponed their visits during the summer tourist season surged to visit in
September 1992. French critics called Euro Disney an example of U.S. cultural
imperialism, and hundreds of employees left their jobs after a few days. The
Disney prohibition on the sale of alcohol in its theme parks did not fit with the
French custom of drinking wine with meals. But by 2006 it had become France’s
number-one tourist destination with 50 million visitors a year.2
Similarly, the future of tourism in Hong Kong is bright, and Disney has adapted to
take advantage of it. The people of Hong Kong may have had more patience with the
U.S. company than the French did. Chief Executive Donald Tsang said when the theme
park opened: “We have to remember that Disneyland is a new organization [in Hong
Kong] . . . It may need time to understand the situation of Hong Kong and especially
the culture of Hong Kongers and figure out how to make all its employees happy.”3

More and more organizations with strong success records at home, like Disney, are
finding themselves involved in communication between cultures, either because they
are doing business in unfamiliar foreign countries, or because they are sourcing from
another country and seeking financing and a workforce from another country.
Companies around the world have increasingly multicultural workforces. In the
United States, for example, Latinos (from Mexico and Central and South America)
have become the biggest minority group. In Europe, the composition of the population
is changing as more and more people emigrate from Africa, Asia, and the Middle East.
In the Middle East, many workers come from India, the Philippines, and Southeast
Asia. Countries like Holland and Australia are considering an examination system to
see if immigrant applicants are culturally suited to living in those countries. As a result
of these migrations, people with diverse cultural backgrounds and different languages
are working side by side in many countries, creating a workplace that is multicultural.
Business communication today is intercultural communication. To communi-
cate with people from another culture, one needs to understand the culture. To do
that, one needs a method. This book offers an approach to unfamiliar cultures that
makes understanding easier and consequently makes business communication
with those cultures more effective. We believe intercultural business communica-
tion skills can be learned.
At its lowest level, business communication with unfamiliar cultures means sim-
ply finding a translator for conducting discussions in a foreign language. However,
as more and more corporations are finding out, communication must take into ac-
count unarticulated meanings and the thinking behind the words—not just the words
alone. To be effective, communication must be culturally correct, not merely gram-
matically correct.
To understand the significance of a message from someone, you need to un-
derstand the way that person looks at the world and the values that weigh heavily
xii Introduction

in that person’s view of the world. That view includes meanings that are assumed
to be universal (even when they are not), the importance of the words that are used,
and the way the message is organized and transmitted. You also need to know what
to expect when someone engages in a particular communication behavior such as
making a decision known, negotiating a sales agreement, or writing a legal con-
tract. And you’d be wise to know something about the organization that person
works in and the way its structure—a result of culture—affects communication.
In applying intercultural communication skills to practical business concerns, this
book makes an important contribution. Most books about doing business with peo-
ple from other cultures come from one of two areas, either intercultural and cross-
cultural communication scholarship and its near relative, intercultural training, or
international business. Intercultural and cross-cultural communication scholarship is
grounded in a body of theory but has little direct application to business communi-
cation. Intercultural training draws from psychology and related fields and special-
izes in preparing people for sojourns in foreign countries for development work, such
as for the Peace Corps, for studying abroad, or for working in an expatriate posting,
but this training typically has little application to business communication.
Books on international business, in contrast, concentrate on business functions
such as finance, management, marketing, shipping and insurance, and accounting.
They tend to ignore the importance of the all-encompassing communication tasks
and the skills necessary to complete them successfully. They also tend to ignore
the different priorities in other cultures that affect the act of communication and
its outcomes.
This book connects business communication and understanding of cultural
priorities with actual business practices. Of course, business practices themselves,
as the book points out, are culturally based.
By combining intercultural communication skills with business, this book helps
you become a successful communicator in culturally diverse workplace environ-
ments both at home and abroad. As more and more firms are finding out, effective
intercultural communication is crucial for success domestically and internationally.

Intercultural Business Communication Competence

and Growing Domestic Diversity
All over the world, nations are trying to come to terms with the growing diversity
of their populations. Reactions range from a warm welcome, to conditional
acceptance, to mere tolerance, to rejection. As migrations of workers and refugees
have increased globally, some countries are trying to control diversity by estab-
lishing strict guidelines for emigration from other countries. Other countries are
attempting to develop government policies concerning the rights of immigrants to
preserve their own cultures in their adopted homelands. Canada is an example of
a bicultural (English and French) country where federal and provincial govern-
ments have ministers of multiculturalism to protect the cultural “mosaic” pattern
that immigrants bring to Canada. New Zealand is an example of a country that has
 Introduction xiii

issues of biculturalism (Māori and non-Māori) to work through and that needs
additional energy and resources to attend to the increasing cultural diversity of
immigrants.
The United States historically afforded a home to people of diverse cultures.
But even in the United States, with its ideals of equality and tolerance, the advan-
tages and disadvantages of acknowledging diversity are debated hotly. Social crit-
ics in the United States have voiced opposition to measures that preserve
immigrants’ cultural differences. They say the insistence on diversity separates
Americans from one another by forcing them to focus on what differentiates them.
This view holds that the “melting pot” that has been alleged to describe American
culture depends on the fusing of all cultural identities into one, in keeping with the
American ideal of offering equal American-ness to everybody. Furthermore, they
warn that multiculturalism may threaten the very characteristic that is so
American: the union of one from many.
We don’t subscribe to this view. We do acknowledge that uniformity is easier
to deal with than diversity. Diversity is difficult, although it also can be very
rewarding. Often the impulse to deny cultural differences comes from embarrass-
ment at focusing on difference, since frequently to be different is to be excluded.
It isn’t polite to point out that someone looks different, talks differently, wears
different clothes, or eats different food. Thus, many times, out of a concern to
avoid making someone feel uncomfortable, difference is played down.
This attitude may be motivated in the United States by a sincere desire for equal
behavior toward people regardless of their ethnic or cultural background under the
all-encompassing umbrella of the ideal of equality. After all, most people who call
themselves “American” have ancestors who were immigrants. Today, many still
have a strong desire to include newcomers in a friendly and tolerant national em-
brace and to affirm the high priority of equality in American culture. This is also
true of some people in other countries with recent immigrant populations, such as
New Zealand, Canada, Argentina, and Australia, as communities struggle to
reconcile national identity with newer cultures.
People from different cultures really are different (as well as similar) in how
they see the world. That’s a great thing about being human, and a potential source
of delight and wonderment as much as a source of fear and suspicion—the choice
is ours. As people of different cultures we begin with different databases, use dif-
ferent operating environments, run different software and process information dif-
ferently to get to what are often different goals. To pretend we’re all alike
underneath is wrong and can lead to ineffectual communication or worse. The way
to deal with diversity is not to deny it or ignore it but to learn about differences so
they don’t impair communication and successful business transactions.
We also need new models to describe diverse populations. The description of
the United States, for example, as a “melting pot” is neither an accurate descrip-
tion of the reality nor an ideal that many of the more recent immigrants embrace.
Even the immigrants from Europe of a previous century did not “melt”; they
created a new culture with distinct differences based on cultural heritage. Some
have described this integration as a salad or a pizza or a stew, in which each
xiv Introduction

element retains a recognizable identity but contributes to the flavor of all. The
combination gains something from each ingredient. The United States’ value of
tolerance has in some cases given immigrants to that country the freedom to keep
their own identities while becoming part of a new culture. In other countries, sim-
ilar cases exist, and they represent a goal to which all can aspire.
Cultural differences don’t prevent us from working with each other or commu-
nicating with each other or transacting productive business with each other. Indeed,
we must learn to work with each other. The future of any organization depends on
it. When connections are formed with people from other cultures, similarities
appear. We weave fabrics of cooperation in which we see recurring common
threads. It’s a source of delight to realize someone from a culture very different
from one’s own has the same attitude or value or behavior. Furthermore, to see and
accept different priorities and views can provide strength and create new synergies.
The essential ingredient for a successful cultural mix is skill in putting into
operation the knowledge you acquire about another culture; this is intercultural
communication competence. Many companies around the globe, such as Hewlett-
Packard in the United States, have discovered the value of intercultural communi-
cation skills and the increased productivity they bring. These organizations have
instituted diversity programs to train employees.

Changes in Communication Technology

and Political Structures
The 20th century nurtured unprecedented change in communication technology.
The first decade of the 21st century brought even faster change. International com-
munication that only a few decades ago took days, if not weeks, now takes
nanoseconds. With e-mail, faxes, the Internet, satellites, cellular telephones, and
conferencing software we contact our international partners at a moment’s notice.
If we want a more personal exchange, audio and video desktop technology, video
teleconferencing, and Skype bring the other person right into our office.
Today’s techno-developments are in the realm of participatory communication.
In the first decade of the 21st century, words like “blog,” “wiki,” and “podcasting”
appeared in our dictionaries. Podcasting (“pod” coming from the Apple product
the iPod, for downloading music and audio as well as video from the Internet, and
“casting” from broadcasting) allows podcasters to record anything and then up-
load it to the Internet where it can be downloaded by other users. Every garage
band can play to unknown listeners. Every orator can declaim to the globe. At sites
like Second Life, people create virtual identities for themselves, called avatars, and
engage in creative ventures such as making films. How this kind of participative
communication will impact the entertainment industry, such as Disney with whom
we began this introduction, remains to be seen.
The variety of channels of business communication has also increased. Instant
Messaging, wikis in the workplace, blogs and texting by mobile phone, Black-
Berry, iPhone, or other smartphone devices carry written messages. They also can
 Introduction xv

transmit still and moving visual images. Voicemail, podcaster feeds, and Skype
systems carry audio and video messages. The choice of which channel to use in a
particular situation is influenced by cultural priorities and values, and those
choices are multiplying.
The changes in technology have facilitated the exchange of ideas, but they also
have magnified the possibilities for cultural blunders. It is so easy to assume that the
person on the other end of the connection communicates just as we do. After all, he
or she uses the same technology and maybe even the same business terminology.
In addition to changes in technology, political and economic changes affect
business communication internationally. China, the world’s largest market for mo-
bile telephony, is adopting more and more Western practices and a market econ-
omy. India is a technological powerhouse. Small industrialized countries jostle
with big ones. Non-Western countries are becoming more assertive and protective
of their cultural values and behaviors and do not accept Western dominance in
business practices any longer. These new voices are increasingly powerful. Not
long ago an elite group of industrialized countries could more or less dictate
economic practices. This is changing. Today, the first-world “overconsumers”
are being forced to take into consideration the cultural values and practices of
“sustainable consumers.”
As a result, understanding other cultures is more important than ever. If we con-
sider that people with the same economic, political, and cultural background have
problems communicating effectively, we can appreciate the difficulties and chal-
lenges that people from diverse cultures face when trying to communicate.
Misunderstandings will always be a part of intercultural communication. One of
the goals of this book is to minimize misunderstandings through an awareness of
the priorities and expectations of business partners.

International Business and Corporate Responses

Managers in the past talked about the need for faster and more efficient communi-
cation, as if speed guaranteed effective communication. They paid lip service to the
need for good intercultural communication, but staffing decisions typically were
based on technical knowledge rather than good intercultural communication skills.
Now with growing competition and increasing globalization, that attitude is
beginning to change. International experience in more countries is becoming more
important for making it to the top of the corporate ladder. The car industry is a
good example for worldwide alliances, mergers, and joint ventures that have
required an increasing understanding of international business practices and
intercultural communication dynamics.
The trend toward a global business environment is not restricted to car
manufacturers or big industrialized countries such as the United States, Germany,
Japan, France, Canada, and Great Britain. Nor is it restricted to large cities or trade
centers on the coasts. Global business involves geographic locations that just a
few years ago were considered to be wholly engaged in domestic business. Many
small towns in the landlocked states of Mexico, for example, are involved in
xvi Introduction

international business today. Chinese investments in Africa show that international

business has new players today who are not only based in the Western world.
Local firms may export or import; they may be owned by foreign firms, or
foreign firms may establish subsidiaries. People who never dreamed of going into
international business may work side by side with recent immigrants from differ-
ent cultures. The salesperson in a small business in a small town in any one of a
hundred countries may have to answer inquiries from around the world. The sales-
person doesn’t have time to think about how to deal with a foreigner. She or he
must be ready to communicate on the spot.

The Foundation for Intercultural Business Communication

The first step in effective intercultural communication involves self-analysis,
self-awareness, and understanding. You can’t understand the other party unless you
understand yourself.
The next step is the understanding and acceptance of differences. That does not
mean we have to agree with another culture’s viewpoint or adopt another culture’s
values. It does mean we (and they) must examine our (and their) priorities and de-
termine how we all can best work together, being different. In the process, we will
realize that a person entering another culture will always have to adapt to a num-
ber of cultural conditions. That doesn’t mean turning one’s back on one’s own
culture or denying its priorities. Rather, it means learning what motivates others
and how other cultural priorities inform the behavior, attitudes, and values of busi-
ness colleagues. This approach means adding to one’s own culture, not subtracting
from it. For example, a businessperson from New Zealand going to Japan must
adapt to many Japanese practices, just as a Japanese businessperson going to New
Zealand must adapt to a variety of New Zealand practices.
In attempting to understand another culture’s perspective, we will gain greater
ground if we take off our cultural blinders and develop sensitivity in the way we
speak and behave. That is not always easy. We are all culturally based and cultur-
ally biased.
For example, people in the United States refer to themselves as “Americans.”
They often say that they live in “America.” Most Europeans use the same termi-
nology. Germans, for example, refer to the country of the United States as die
Staaten (the States) or as USA, but they always refer to the people as Amerikaner
(Americans). The French call the people of the United States les americains
(Americans); they refer to the country as les Etats Unis (the United States) or
l’Amerique (America). The Japanese refer to people from the United States as
america-jin. But these are not precisely accurate terms; they constitute an
example of cultural bias. People from Central America and South America call
themselves “American,” too, and call people from the United States yanquis (Yan-
kees). “North Americans” are people from Canada, Mexico, and the United States.
As residents of the United States, accustomed to using the word American to
refer to people of the United States, we have struggled with the terminology in the
writing of this book. We have attempted to distinguish between other Americans
 Introduction xvii

and those in the United States. But no exclusive term exists for the people of the
United States—such as Statesians or USians—comparable to Mexicans or Cana-
dians. We use the United States when referring to the country and often use the
phrase people of the United States and United States businesspeople to refer to the
people. But occasionally, when we feel the context is clearly the United States, we
also use the term Americans to denote the people.
The third step in intercultural competence is to challenge the knowledge we
have gained about other cultures and to see our understanding as flexible and in-
complete. In any intercultural encounter, variations will occur. What we expect
won’t be exactly what we get. Openness and willingness to learn characterize the
skilled person in intercultural communication.
The fourth step is analysis of communication behavior to reach conclusions
about what has been successful and what has not. This book offers many examples
of both success and failure. Specific communication tasks presented in the fol-
lowing chapters help with learning beyond stereotypes. Business correspondence,
greeting behavior, conflict management, face-to-face and technology-mediated
communications, and negotiations appear in the book, and they offer us an oppor-
tunity to model the analyses a good intercultural communicator must make.
The final step in intercultural communication competence is enacting what one
has learned. You know as a newcomer to a culture when you have done something
that is culturally incorrect; you also know when you can behave in accord with the
other culture. At that point, you are walking in the shoes of the other culture. That is
the ultimate goal of learning about a culture and learning the skills to communicate
with that culture: to behave as if you are of that culture. In addition to this individ-
ual-level goal, you can also apply these principles to business organizations, as
illustrated in the cases at the end of the book.

The Organization of This Book

This book has three major parts:
1. An understanding of culture and how to get to know unfamiliar cultures for
business, and how to understand culture’s impact on communication.
2. The application of intercultural communication skills to specific business com-
munication tasks.
3. The implications of intercultural business communication for the domestic
multicultural/international/global firm.

Part One
This section begins with an introduction to culture followed by the first steps in
developing intercultural communication skills and a look at the way culture affects
communication. A discussion follows about the study of communication across
cultures. Chapter 2 examines the issue of language in communication with an
unfamiliar culture and discusses the important role of the interpreter. Chapters 3
and 4 present a structure for understanding the dimensions of an unfamiliar
xviii Introduction

culture by posing specific questions. The questions are in five different categories,
and they cover the priorities or values of any culture that are important for busi-
ness. Examples show how these priorities affect business transactions.

Part Two
Chapter 5 discusses the influences of cultural values and language patterns on the
organization of business messages. Chapter 6 looks at the role of nonverbal com-
munication across cultures. Chapter 7 discusses what happens when people from
different cultures encounter one another in specific social contexts that have dif-
ferent meanings for each party, and also touches on ethics across cultures. Chap-
ter 8 examines the impact of cultural priorities on information gathering, decision
making, problem solving, and conflict managing—all activities that involve cer-
tain communication tasks. Chapter 9 concludes this section on the application of
intercultural communication skills to business negotiations across cultures and to
multicultural teams.

Part Three
Chapter 10 explores the legal environment and the communication implications
for the international/global manager. Chapter 11 ties intercultural business com-
munication practices to the organization and structure of the international/global
firm. A broad variety of examples illustrates the impact of structure on communi-
cation. The last chapter applies the concepts from all the previous chapters to the
case of DaimlerChrysler. Through this case analysis, you can see how culture af-
fects real business decisions in the real world. This chapter also discusses how
companies can use the work of intercultural teams to take advantage of the poten-
tial synergies of diverse groups in achieving corporate goals.
In connecting intercultural communication theory and international business
concerns, this book presents a unique approach. It probes the reasons for cultural
priorities and behavior and identifies the major applications in intercultural busi-
ness communication tasks. In this process, it establishes a framework that will help
readers ask the right questions and identify cultural issues so they can communi-
cate effectively in new cultural settings.
This book is based on many years of research and experience living and work-
ing in a variety of cultures. The many examples make the book particularly valu-
able for anyone who wants to be an effective player in international business.

Notes
1. Bruce Einhorn, “Disney’s Mobbed Kingdom,” BusinessWeek Online,
February 6, 2006, Academic Search Premier database (retrieved
April 25, 2006).
2. “Introduction to Disneyland Paris,” Frommer’s. www.frommers.com/
destinations/disneylandparis/0796010001.html (retrieved August 15, 2006).
3. Paul Wiseman, “Miscues Mar Opening of Hong Kong Disney,” USA Today,
Section: Money, November 10, 2005, p. 5b, Academic Search Premier
database (retrieved April 25, 2006).
Contents in Brief
1. Culture and Communication 1 8. Information, Decisions,
2. The Role of Language in Intercultural and Solutions 289
Business Communication 43 9. Intercultural Negotiation Teams 329
3. Getting to Know Another 10. Legal and Governmental
Culture 93 Considerations in Intercultural
4. The Self and Groups 139 Business Communication 365

5. Organizing Messages to Other 11. The Influence of Business Structures

Cultures 173 and Corporate Culture on Intercultural
Business Communication 403
6. Nonverbal Language in Intercultural
Communication 217 12. Intercultural Dynamics in the
International Company 447
7. Cultural Rules for Establishing
Relationships 251

xix
Contents
Preface to the Fifth Edition iv Three Characteristics of the Discipline
of Cross-cultural Communication 27
About the Authors vii Study of the Communication of
Acknowledgments ix Groups versus the Study of
Individuals’ Communication 27
Introduction x Intercultural and Cross-cultural
Communication Study 27
Chapter 1 Two Broad Approaches to Communication
Culture and Communication 1 Research in the Social Sciences 29
Study of Culture and Communication:
The Importance of Learning
Individuals or Cultures 34
about Cultures 2
Intercultural Business Communication 35
Making Sense of Our World 3
Perception and Communication 35
The World Is Becoming Increasingly Diverse 4
A Schemata Model for Intercultural
People around the World ARE Different 4
Communication 36
Preventing Mistakes 4
Responding to Different Cultures 6 Chapter 2
Hostility to Difference 6
The Role of Language in Intercultural
Curiosity about Difference 7
Denying Difference 7
Business Communication 43
Cooperating with Difference 8 The Relationship between Language
Understanding Culture 9 and Culture 44
Culture Is Coherent 10 Language as a Reflection of the Environment 46
Culture Is Learned 11 Language as a Reflection of Values 46
Culture Is the View of a Group of People 11 The Meaning of Words 47
Culture Ranks What Is Important 12 Changes in Language 48
Culture Furnishes Attitudes 13 Acronyms 51
Culture Dictates How to Behave 13 Implications of the Language Barrier 51
Onstage and Backstage Elements of Culture 14 Selection of the Right Language 52
Transactional Cultures 15 Linguistic Considerations 52
Adopting Another Culture’s Behavior 16 Business Considerations 54
Self-Knowledge and Understanding One’s Own Political Considerations 56
Culture 19 The Appropriate Level of Fluency 56
Cultural Intelligence 23 The Company Language 58
The Question of Change in Cultures 24 Choosing a Company Language 58
Are Cultures Merging into One Global Using Additional Foreign Language Expertise 63
Culture? 24 The Role of the Interpreter 64
Ever-Changing Popular Taste 25 The Importance of Choosing a Good Interpreter 66
The Study of Communication across The Effective Use of an Interpreter—Some
Cultures 26 Guidelines 67
xx
 Contents xxi

Communication with Nonnative Speakers 70 Are Divine Powers or Humans at the Center
Effective Face-to-Face Communication 70 of Events? 120
Effective Written Communication 73 How Is Time Understood, Measured,
The Impact of Technology on Oral and Written and Kept? 130
Communication 80 Is Change Positive or Negative? 132
Some Guidelines for Communicating with Is Death the End of Life or Part of Life? 133
Businesspeople from Different Cultures 86
Communication with a Multicultural Workforce 88 Chapter 4
The Self and Groups 139
Chapter 3
Getting to Know Another Culture 93 Category 4: The Self and Self-identity 140
Self-identity—A Social Psychology
Ways to Study Culture 94 Approach 141
Research Approaches to Studying Cultures 94 Self-identity—A Communication Approach 141
Studying Whole Cultures 94 Self-identity—A Critical Approach 141
Cultural Generalizations 95 Self-identity and Cultural Value Dimensions 142
Hofstede’s Research and Other Studies 96 Self-construal: Independent and
The GLOBE Study 97 Interdependent 142
Studying Individuals 98 The Basic Unit of Society: The Individual or the
Culture as a Theoretical Construct 98 Collective? 143
Generalizations and Stereotypes 99 Obligation and Indebtedness: Burdens
High-context Communication and Low-context or Benefits? 147
Communication 100 Age: Is Seniority Valued or Discounted? 150
The Cultural Dimensions Approach in Gender: Are Women Equals or Subordinates? 151
This Book 103 Category 5: Social Organization 156
Where Can Information about Cultures Group Membership: Temporary
Be Found? 104 or Permanent? 156
Category 1: Thinking and Knowing 106 Form: Important or Untrustworthy? 161
Does Knowing Come from Concepts Personal Matters: Private or Public? 163
or Experience? 106 Social Organizational Patterns: Horizontal
Does Learning Come from Asking Questions or or Hierarchical? 165
Mastering Received Wisdom? 107 Approach to Authority: Direct or Mediated? 167
Does Knowledge Have Limits? 108 Conclusion 169
How Do People Reason? 109
Category 2: Doing and Achieving 112 Chapter 5
Is Doing Important or Is Being Important? 112
Organizing Messages to Other
Are Tasks Done Sequentially or Simultaneously? 112
Do Results or Relationships Take
Cultures 173
Priority? 113 Review of the Communication Model 174
Is Uncertainty Avoided or Tolerated? 115 Meaning and the Communication Model 174
Is Luck an Essential Factor or an Why: The Purpose and Factors
Irrelevance? 115 of Communication 176
Are Rules to Be Followed or Bent? 118 Who in Business Communication 179
Category 3: The Big Picture 118 Where: Channels of Communication 179
Do Humans Dominate Nature or Does Nature When: Time and Timing of
Dominate Humans? 119 Communication 181
xxii Contents

Organizing Routine Messages 181 Touching 230

The Direct Plan 181 The Language of Space 234
The Indirect Plan 182 Appearance 244
Organizing Persuasive Messages and Silence 247
Argumentation 186
Argumentation and Logic 187 Chapter 7
Persuasion Tactics 191 Cultural Rules for Establishing
Organizing Unwelcome Messages 192 Relationships 251
Communicating about Problems 192
Saying No 194 Respect for Authority and the Structuring
Organizing Problem-Solving Messages 195 of Messages 252
Storytelling 195 Signals of Respect 252
Analogy 197 Positions of Authority 254
Syllogistic and Inductive Reasoning 198 Dress as a Symbol of Authority 256
Bargaining Discourse 199 Power Distance and Symbols of Power
The Role and Force of Words 199 and Authority 258
The Relative Importance of Encoding Messages in Tone and Behavior of Power and Authority 259
Words 199 Language as an Indicator of Power
The Role of Words in Arabic Cultures 200 and Authority 264
The Role of Words in Japanese Culture 202 Family and Societal Structures as Indicators
The Role of Words in English-Speaking of Power 267
Cultures 203 Assertiveness vs. Harmony 268
The Effect of Language’s Structure 203 Standing Up for One’s Rights 268
Channels of Business Messages 206 Preserving Harmony 270
Internal Channels for Written Messages 206 Recognition of Performance as a Signal
External Channels for Written Messages 208 of Authority 271
Structured Behavior Channels 209 Monetary Recognition 271
Oral Channels 209 Nonmonetary Rewards 272
Communication Style 210 The Role of Social Contacts in Intercultural
Formal or Informal: Hierarchical or Horizontal 210 Business 274
Framed Messages 211 Conventions for Extending Invitations 274
Mixing Social Engagements and Business 276
Appropriate Behavior for Hosts and Guests 276
Chapter 6 Gift Giving 278
Nonverbal Language in Intercultural Dealing with Controversy in Social Settings 280
Communication 217 Holiday Greetings 281
Ethical Considerations in Intercultural
Paralanguage 220
Engagements 282
Vocal Qualifiers 220
Vocalization 220 Chapter 8
Nonverbal Business Conventions in Face-to-Face
Information, Decisions, and Solutions 289
Encounters 221
Eye Contact 221 The Nature of Business Information 291
Facial Expressions 223 The Impact of Culture on What Constitutes
Gestures 226 Information 291
Timing in Spoken Exchanges 228 The Assessment of Information 291
 Contents xxiii

The Possession of Information 292 Code Law 371

Formal and Informal Information 295 Anglo-American Common Law 372
Soft vs. Hard Data 297 Islamic Law 373
Criteria for Business Information 298 Socialist Law 374
Sources of Business Information 299 Dispute Settlement 375
Formal Sources 299 Direct Confrontation and Arbitration 375
Informal Sources 300 Communication with Agents 377
Information and Knowledge Management 301 Trademarks and Intellectual Property 379
Decision Making 303 International Enterprise and the National
Making Decisions Based on Ends 304 Interests 381
Making Decisions Based on Means 305 Legal Issues in Labor and Management
Problem Solving and Conflict Resolution 308 Communication 385
Defining Problems and Dealing with Labor Regulations 386
Them 309 Employment Communication 386
Managing Conflicts 310 Laws for Safety on the Job 388
Conflict Management Modes 312 Equal Opportunity 390
Conflict Communication Modes 316 Legal Considerations in Marketing
Communicating about Conflicts between Members Communication 391
of Different Cultures 320 Investment Attitudes and the Communication
of Financial Information 394
Chapter 9
Chapter 11
Intercultural Negotiation Teams 329
The Influence of Business Structures
Intercultural Negotiation 331 and Corporate Culture on Intercultural
What Really Happened with Canwall Business Communication 403
in China? 332
How Knowledge of Culture Can Help 334 Corporate Culture and Intercultural
Factors in the Negotiation Task 342 Communication 405
Expectations for Outcomes 343 Stages in Internationalization 409
Orientation of the Negotiating Team 345 The Import–Export Stage 410
The Physical Context of the Negotiation 349 Reasons for Exporting 410
Communication and Style of Negotiating 352 Communication in the Import–Export
The Phases of Negotiation 356 Environment 412
The Development of a Relationship 356 The Multinational Corporation 415
Information Exchange about the Topic under The National Subsidiary 415
Negotiation 357 The International Division 417
Persuasion 358 The Global Firm 426
Concession and Agreement 361 The Structure of a Global Firm 426
Communication in a Global Organization 427
Chapter 10 Implications of Cultural Aspects of Business
Legal and Governmental Considerations Structures for Communication in an
in Intercultural Business International Firm 433
Communication in an Organization Based
Communication 365
on Credentials 433
Communication and Legal Messages 367 Communication in an Organization Based
Specific Legal Systems 371 on Context 435
xxiv Contents

Communication in an Organization Based Culture in the Context of Corporate Strategy 471

on Family Orientation 438 When Teams Are Not Effective 476
Communication in an Organization Based Try to Adapt to Each Other’s Expectations 476
on Political Principles 440 Specific Abilities that Make up Teamwork CQ 476
Subdivide the Team and Tasks 480
Chapter 12 Have a Manager Intervene 480
Intercultural Dynamics in the Remove Member(s) or Disband the Team 481
International Company 447 Applying Your Cultural Knowledge to Business
Situations 481
Cultural Issues in the DaimlerChrysler Appendix
Merger 450 Case 1: What Else Can Go Wrong? 485
Preparation and Training 451 Questions for Discussion 488
Attitudes toward Management 452 Case 2: Hana, a Joint Venture Between Health
Attitudes toward Compensation 453 Snacks and Toka Foods 488
Regulatory Issues 454 Questions for Discussion 494
Reports on the Merger 455
Intercultural Business Communication as a Index 494
Strategic Tool for Success 458
The Process of Intercultural Business
Communication 458
Dynamics of Culturally Diverse Teams 463
C H A P T E R O N E

Culture and
Communication
Martin Walpert is the president of a family-owned business called Walpert Industries Ltd.
in Montreal, Canada, that produces Christmas crackers. The company, located in French
Canada, is one of the world’s top five suppliers of the product (mainly to consumers in
English-speaking countries), and exports two-thirds of its output to the United States.
Walpert estimates that the international market for crackers is about $150 million, with the
majority sold in Great Britain.
Crackers are paper tubes with small trinkets inside. When the twisted ends of the
cracker are pulled, it pops or “cracks,” causing the contents to spill out. Crackers are a tra-
dition dating from Victorian England, and they are still very popular in England and in the
countries Britain dominated in the 19th century.
The story of British crackers begins with an English confectioner in France, who saw
Parisians selling paper twists of candy and brought the idea back to England. Instead of us-
ing candy, he filled his twists with little novelties and romantic verses. The result was a
19th-century success story of intercultural adaptation, because crackers became a tradition
among British Christmas revelers. Today, crackers often have jokes instead of poems, a
funny paper hat to wear at dinner, and prizes ranging from gimmicks and noisemakers to
small watches. (In J. K. Rowling’s book, Harry Potter and the Sorcerer’s Stone, for instance,
Harry Potter pulled crackers that emitted a loud explosion and produced mice and admirals’
hats.) Crackers are colorful—usually red, green, and gold—and are typically laid alongside
place settings at Christmas dinners or hung on Christmas trees.
Like many companies today, product manufacture at Walpert Industries Ltd. spans sev-
eral countries. While its home office is in Canada, its crackers are manufactured in China,
where in 1997 the company invested in a plant outside Beijing. Locating in China has given
Walpert a competitive edge because labor costs are lower there than in Canada. However,
due to the transnational nature of his company’s production, Martin Walpert was soon to
learn a valuable lesson regarding the role of culture in business.1
In December 2002, when some Canadian families opened their Christmas crackers
made by Walpert, they had an unpleasant surprise. They discovered tiny plastic panda
bears wearing military-style caps with a swastika on them. Some were saluting.

1
2 Chapter 1

Martin Walpert is well aware that the swastika is the symbol used by the German Nazi
party in the mid 20th century, and represents the horrors the Nazis perpetrated against
Jews and other groups in World War II. A swastika was the last thing he wanted in his
Christmas crackers. He wondered if he was the victim of a deliberate attempt to sabotage
the company’s business.
After receiving complaints and seeing newspaper articles about the swastika-wearing
pandas, Martin Walpert launched an investigation. He already knew that in China panda
bears are a cute, positive symbol appropriate for a holiday, especially a holiday for children.
Furthermore, he knew that when Walpert Industries in Montreal approved the design of the
red, green, and gold crackers, the panda bears did not wear swastikas. The swastikas,
Walpert concluded, had been added by someone in China. But why?
Through his investigation, Walpert learned that the swastika, so negative in European
cultures today, is a very old and positive Buddhist symbol of prosperity in Eastern cultures.
In fact, the swastika has been used by many ancient cultures all over the world. In Greece,
it is known as the G cross (crux gammata), because the Greek letter gamma, which looks
like an upside-down L, appears as the four arms of the symbol. In Hindu culture, the
swastika is associated with the god Ganesh.
Celts, Romans, and ancient Germanic peoples also used the swastika. In the early
20th century, English-speaking people believed it to be a good luck symbol, and the four
L arms stood for luck, light, love, and life. The swastika also has been found in central
Asia, as well as in Mayan and southwestern U.S. native cultures. The unauthorized ad-
dition of the swastika to the panda bears in the Christmas crackers was well-intentioned,
not sabotage.
However, Martin Walpert’s customers primarily saw the meaning of the swastika
as negative, and his company has made sure that no more swastikas appear on its
products.

The Importance of Learning about Cultures

Why learn about foreign cultures when you are doing business internationally?
Because understanding others’ cultures is important to success.
Understanding foreign cultures is not only important for companies that oper-
ate in more than one global area and market internationally. It is just as important
for organizations at home that employ workers from more than one culture. Work-
places are increasingly multicultural around the world as employees are recruited
globally. In the workplace, companies need to understand the cultural basis of
behavior for everyone, and culture’s role in the way people make meaning.
Understanding culture is also important for individuals who work in the global
workplace. Often culture comes to our attention when something goes wrong
at work. Something we feel is important seems to be overlooked or set aside. Or
perhaps we know a little bit about another culture, but what we know makes us
puzzled. We may hear people speak or see their actions and not comprehend it.
The two important reasons for understanding culture are to learn how others make
sense of their environment, and to prevent mistakes and miscommunication.
 Culture and Communication 3

Making Sense of Our World

An example of the challenge of making sense of our world occurred when Disney
opened a theme park in Hong Kong that many visitors from China went to
experience. In Hong Kong, children watch TV programs made by Disney, the
American entertainment giant. For many years, Hong Kong children have grown
up with these cartoon characters in their stories. Many characters are animals who
act like humans—Donald Duck, Bugs Bunny, Mickey Mouse—and other charac-
ters come from children’s stories and folklore, like Aladdin. But the people in
mainland China were not familiar with the characters. The cartoon characters had
not been on their TVs. They wandered around Hong Kong Disneyland unable to
make sense of it. When they encountered people in the costumes of Disney
characters, they were baffled.
A similar experience awaits visitors from Europe or North America who go to
Dubai and visit the Ibn Battuta shopping mall. The largest themed mall in the
world, it has six sectors, each representing a region Ibn Battuta visited in his
unparalleled world travels: Andalusia, Tunisia, Egypt, Persia, India, and China. If
you don’t know who Ibn Battuta is, however, the costumed host who greets you
will baffle you, or have no meaning. To make sense of the theme of the Dubai
shopping mall, you need to know something about the culture.

In Focus

Ibn Battuta, a young Islamic law scholar, was curious to travel and learn about the world. Shortly after his 21st birth-
day in 1325, he set out on a journey to Mecca, on the Muslim pilgrimage called the hajj. He returned to his home in
Tangiers, Morocco, 24 years later, after traveling through almost the whole of the Islamic world. He still wasn’t finished,
though. He made further journeys, only coming back to Morocco for good in 1354. He has been called “the world’s
greatest pre-modern traveler.”2
Like many young adults, Ibn Battuta wanted to experience the world. However, unlike most students today, he
traveled more than 75,000 miles, acquired a number of wives on the way, had narrow escapes from death and impris-
onment, and served many of the 14th century’s most important rulers.
Fortunately, he dictated his travels to a scholar named Ibn Juzayy, at the court of the Sultan of Morocco. The
resulting book, Rihla (the Journey), tells how Ibn Battuta first went to Mecca through North Africa and Egypt, then to
Syria and Palestine. His next journey was to Iraq and Mesopotamia, then back to Mecca again. Then he traveled to
Yemen, Aden, Mombasa (in east Africa), Kulwa, Oman, Hormuz, Bahrain, and back to Mecca for his third hajj. His fourth
itinerary was to have been to India, but instead he revisited Egypt and the Middle East, then modern Turkey, the Black
Sea, and the southern Ukraine to Constantinople. Then he turned east and eventually crossed the Hindu Kush mountains
into Afghanistan, Pakistan, and India. He next made a roundabout journey from Delhi to China, passing twice through
the Maldives Islands in the Indian Ocean, and finally reaching Canton (southern China) via Sumatra (Indonesia), Malaya,
and Cambodia. His long journey back from China took him to India, and then to Muscat (Oman), then through Iran, Iraq,
Syria, Palestine, and Egypt, to Mecca again for his seventh and final hajj.
(continued )
4 Chapter 1

When he arrived back in Tangier, he learned his mother had passed away in the Black Death pandemic. His father
had died earlier. He decided to travel again, this time to Andalusia, the part of southern Spain under Muslim rule, and
his final journey was by camel train across the Sahara to Niger and Timbuktu in central Africa.
Ibn Battuta described for Ibn Juzayy his culture shock, his impressions of the local scene, the people he met, and
the ways of life he experienced. You can read more about him3 and also watch trailers for the BBC television series
about Ibn Battuta on YouTube.

Even if you haven’t traveled to other countries, you may have met or observed
people from other cultures and felt baffled. You may have been unable to figure
out what their behavior meant or what meaning lay behind their symbols. If you
haven’t yet met people from other cultures in your work, you will. When you do,
you will want to understand them. This is why we study culture. Culture explains
how people make sense of their world.

The World Is Becoming Increasingly Diverse

All over the world, nations are experiencing more and more people from other cul-
tures coming into their countries. Some people give newcomers a warm welcome.
Some are less warm, but allow foreigners to thrive. Some reject those who come from
a different culture. Tourism is expanding, migration is increasing, and people are mov-
ing in large numbers. Some governments (for example, Australia and the Netherlands)
are proposing to manage immigration by having newcomers take tests to see how
likely they are to fit into those nations. Other countries (Canada, for example) are
trying to develop government policies to help immigrants keep their own cultures.
The United States has a long history of offering a home to people from many
other countries. But in spite of its ideals of equality and tolerance, some people in
the United States argue against allowing immigrants to keep their own language—
in school, for instance. They say recognizing difference actually separates people,
rather than enables people to tolerate others who are unlike them.
Because people from different cultures get jobs all over the world, you will
experience cultural difference when you go to another country. At the same time, if
you stay home, you will likely be working with people from other places and cul-
tures. In order to do your job, you will need to make sense of other people’s cultures.

People around the World ARE Different

People from different cultures really are different (as well as similar) in how they
see the world. Cultures are the amazing products of human imagination, and that
is a reason to celebrate differences. We people of this earth have created many
interesting cultures throughout human history. They are a source of delight and
wonder. The variety of cultures expresses what it means to be a human being.

Preventing Mistakes
The Walpert case that opened this chapter is one example of how a lack of cultural
understanding can create problems for businesses. It also shows that cultural mis-
takes can be unconscious or unintentional, but damaging nevertheless.
 Culture and Communication 5

Documented cultural mistakes in international business are easy to find on the

Internet. The blunders-and-bloops literature is full of instances in which the error
was fatal and the deal came apart, as well as instances in which the error was
laughable. Many cases have led to a loss of business. The failures usually result
because someone didn’t understand the reasons why people think as they do and
value what they do.
Today, businesses are looking for markets, suppliers, associates, partners, sub-
sidiaries, joint-venture partners, customers, employees, and a favorable image in
more than one country. Successful businesspeople must be able to communicate
interculturally both at home and abroad.
Donald Hastings, chairman emeritus of Lincoln Electric, attributed many of his
company’s mistakes abroad to the attitude that since the company’s practices were
successful in the United States, they certainly would succeed in other countries.

In Focus

Donald Hastings had been chairman of Lincoln Electric, a leading manufacturer of arc-welding products, for only 24
minutes on the July day when he first learned the company was suffering huge losses in Europe. The losses meant the
company might not be able to pay U.S. employees their expected annual bonuses. Since the bonus system was a key
component of the manufacturer’s success, with bonuses making up about half the U.S. employees’ annual salary, this
was a much more significant threat than simply a disappointing performance by the company. For the first time in its
75-year history, it looked like Lincoln would have to report a consolidated loss.
Lincoln Electric, based in Cleveland, Ohio, had expanded hugely, spending about $325 million to acquire foreign
companies. But according to Hastings, lack of knowledge about the cultures of the acquired companies, and the cul-
tures of the countries where they operated, was a critical factor in the company’s financial nosedive.
First, the company didn’t realize that a bonus system was not an incentive to European workers, who were hostile
to the idea of competing with co-workers for their annual pay. Their pay scales were negotiated by labor leaders. The
idea that some workers, based on individual performance, might earn more or less than the agreed income was un-
acceptable to European workers.
Second, Lincoln Electric learned that products not made in a European country would not be able to penetrate a
European market that easily because of a cultural loyalty to domestically produced goods.
A third problem was that executives of the recently acquired European companies wanted to deal only with
Lincoln’s top executives, not with lower-level people sent over from Ohio. This status issue arose primarily in Germany,
from the cultural characteristic of hierarchy in German culture.
A fourth cultural issue was that workers in Germany, France, and other European countries typically have a month
of vacation in the summer, and so production gears down during that slow time. Lincoln wasn’t used to that in its U.S.
operation.
A fifth and fundamental problem was that nobody in the executive ranks at Lincoln had had international experi-
ence or had lived abroad. The Chief Executive Officer didn’t even have a passport, and a last-minute panic occurred
when the company scrambled to get one for him for an urgent trip to Europe. Finally, Hastings realized that he could
not hope to bring Lincoln back to profitability without moving to Europe, where he could be at hand to deal with prob-
lems immediately, while learning what he and the other executives needed to know about that culture.
6 Chapter 1

The U.S. workers of Lincoln Electric, who had been fully informed of the com-
pany’s negative financial situation in Europe, rallied to help the company. Their
enormous efforts paid off. At the same time, the chairman and executives painfully
learned the lessons of culture they needed to know to operate overseas.4
Most businesspeople want to act appropriately and avoid offending their
counterparts in foreign countries. They want to know what people in other
cultures value, if only for the sake of making a sale. One researcher suggests that
McDonald’s is successful in 118 countries because it practices a localized
approach. McDonald’s succeeds because it offers what local people want.5 That
means being sensitive to the cultural needs of the immediate market.

Responding to Different Cultures

When members of different cultures find themselves face to face, a number of
responses are possible. History shows that one response is to clash and struggle for
dominance of one set of values over another. History also shows conflict is not the
only result.
Contact and communication between people from different cultures is as old as
human existence on earth. Consider, for example, the life of Moses (Musa in
Arabic). Moses was born about 1228 B.C.E. when his mother, an Israelite, was a
slave in a foreign country, Egypt. Her son was adopted into the family of the ruler,
the Pharaoh. Thus, Moses was raised in two cultures. He married a woman from
yet another culture, the culture of Midian, where he lived for eight to ten years.
(Midian today is variously identified as southern Jordan or Ethiopia or northwest
Saudi Arabia. In any case, the Midian culture was a different culture from either
the culture of the Israelites or the culture of the Egyptians.)
According to some accounts, when Moses led the Jews out of Egypt, he and the
children of Israel encountered Amalekites, Canaanites, Edomites, Ammonites,
Moabites, and Midianites. Reports tell how Moses’people interacted with the people
of these different cultures. Some encounters were in battle (Amalekites, Canaanites),
some were in making efforts to avoid hostility (Edomites, Ammonites, Moabites at
first), and some encounters involved sexual seduction by women (Midianites, whom
the Israelites later slaughtered). The responses ranged from hostility to cooperation
to close personal relationships.
Thus, the life of one person who lived long ago shows us that encounters with
people from different cultures are not new, and neither are the various responses
to difference. They have been going on even longer than records tell.

Hostility to Difference
Hostile responses to immigrants show up in the histories of many countries.
Immigrants speak languages that may be unrelated to the host culture’s languages;
they may write in systems the hosts cannot decipher; they often have worldviews
that have been developed without reference to the host culture. It is sometimes
a shock to realize that far from wanting to become part of the dominant culture,
some immigrants reject it out of fear they will lose their own culture. Immigration
stories from every continent include experiences of hostility.
 Culture and Communication 7

In the past few years, hostility toward immigrant groups has made the news in
France, Belgium, Germany, Spain, and Italy, along with countries in the Middle
East, Asia, and all the nations of the “new world.”
In companies, too, people of one culture may experience hostility from people
of another culture. But hostility is by no means the only inevitable response to
members of other cultures.

Curiosity about Difference

Ibn Battuta was curious to experience other cultures. Seven hundred years later,
people all over the world are still curious about people from other cultures. The
Internet and sites like Facebook and YouTube bring us more closely together than
ever before on a larger-than-ever stage. An open, respectful interest in learning
about another culture motivates many people to connect around the globe and at
work with members of other cultures.
In addition to satisfying one’s curiosity, another reason to learn about a culture
is to establish connections with people who think differently. Close personal
relationships can endure between people from different cultures, to the mutual
enrichment of both. Along with the connection may be a wish to compute the
meanings of things by using a different mental operating environment and running
different mental software. To connect with someone who is different is to affirm
something that is importantly human.

Denying Difference
In some cultures, showing curiosity about difference is not good manners.
Furthermore, some argue that emphasizing difference separates people, and does
not help us get along with each other. They support a denial of difference, whether
out of a misguided but well-meaning wish to avoid conflict, or out of fear and lack
of skills for finding out about difference. Denial of difference is the opposite of
curiosity.
The productive way to respond to cultural difference is not to deny it exists, but to
learn about difference and how to communicate about it.

Assumptions of Superiority
A common human response to differences in cultures is “Of course they’re differ-
ent, but we’re better. If they really knew our culture, they’d prefer to be one of us.”
English-speaking cultures encode this assumption of superiority by using
words such as backward and primitive to criticize those whose cultures are differ-
ent. Other languages have their own terms for the same thing. Of course, such eval-
uations are one cultural view, not an absolute assessment. They really say more
about the person holding the opinion than about the persons being criticized.
For instance, the Japanese think of outsiders as barbarians; the Chinese call
their country the Middle Kingdom and for centuries considered only Chinese to
be “cooked” and all outsiders to be “raw” (uncivilized, because not familiar with
the Chinese culture). Your culture has its terms for outsiders, and its attitudes—not
8 Chapter 1

always acknowledged—about the superiority of your culture. All groups tend to

look at their own culture as superior, and others as inferior.

Ethnocentrism
“The Germans live in Germany, the Romans live in Rome, the Turks live in Turkey,
but the English live at home.”6
You generally can depend on this: Members of other cultures, deep down in
their heart of hearts, are convinced their own culture is the normal one. People
everywhere tend to assume their own culture has got things right, and they tend to
assess all other cultures by how closely they resemble their own.
The self-reference criterion is an important concept that explains this behavior.
Through the self-reference criterion, people tend to evaluate everything they see
and experience on the basis of their own background and then act on their evalu-
ations accordingly.7 People in all cultures use this self-reference criterion in con-
sidering other cultures. It’s a kind of mental comparison that goes on consciously
and unconsciously.
Those with little experience of other cultures are especially inclined to be-
lieve that their own culture (ethnicity) is normative and at the center of human
experience—hence ethnocentrism. The further from our own another culture is,
the more it seems to belong on the fringe, to be peripheral and not normal. Con-
versely, the closer to our own culture another culture is, the truer it seems to be.
Along with a preference for cultures that are similar to our own is the view that
difference is dangerous. It threatens the norm. It’s only a small step from there to
viewing difference as dismissible, or even wrong.
For this reason, ethnocentrism can lead to a complacency about one’s own
culture, a lack of interest in understanding another culture, and actual discrimina-
tion against people of other cultures.

Assumptions of Universality
One of the comments people often hear from travelers to foreign countries is,
“They may talk (dress, eat) differently, but underneath they’re just like us.” This
notion is profoundly incorrect. People underneath are not alike. Culture is the
whole view of the universe from which people assess the meaning of life and their
appropriate response to it, and those views are not the same. Let’s put this another
way: People begin with different operating environments and run different soft-
ware. They have different databases and process information differently, with
different goals for their information processing. They arrive at different results.
To pretend we are all alike, or should be, can lead to miscommunication or
failed communication. The future of businesses and indeed of the world may well
depend upon people who think differently acting together.

Cooperating with Difference

Cultural differences don’t prevent us from working together. We can communicate
and have productive business relationships even though we are different. Indeed,
we must work together.
 Culture and Communication 9

Geert Hofstede, the Dutch researcher who laid the foundation for cross-cultural
studies, advises: “The principle of surviving in a multicultural world is that one
does not need to think, feel, and act in the same way in order to agree on practical
issues and to cooperate.”8
We can agree to be different and to celebrate diversity. The more we know about
other cultures, the more we will know about our own. Then we can begin to explain
why people from different cultures behave the way they do in business situations.
Their behavior will differ even if their workplace is in the same culture.
When connections form between people from different cultures, similarities
appear. Together we weave a fabric of cooperation, in which we see common
threads. It is a source of delight to realize someone from a different culture has the
same idea as you. It is very satisfying to connect in friendship and cooperation
with someone who has a different culture but similar goals.
We don’t have to become like people from other cultures. We don’t have to
adopt their customs. We don’t even have to like them. But we do have to learn
about what makes sense in their culture, and how to communicate effectively
with them.
Three things are necessary in order to minimize and prevent mistakes across
cultures. Knowledge about one’s own culture is the first step. With this, knowledge
about another culture is easier to learn. The second requirement is motivation—
the drive to know and to use the knowledge. The third step is implementing knowl-
edge, and behaving in a way that makes sense in the other culture, the one in which
you want to do business.

Understanding Culture
Culture is difficult to define because it is a large and inclusive concept. Over
500 definitions of culture exist. Some are not helpful, because they are too
general, such as “everything you need to know in life to get along in a society.”
Culture involves learned and shared behaviors, values, and material objects. It
also encompasses what people create to express values, attitudes, and norms of
behavior.
Culture is largely undiscussed by the members who share it. E. T. Hall wrote:
Culture [is] those deep, common, unstated experiences which members of a given
culture share, which they communicate without knowing, and which form the
backdrop against which all other events are judged.9

Culture is like the water that fish swim in—a reality that is taken for granted
and rarely examined. It is in the air we breathe and is as necessary to our under-
standing of who we are as air is to our physical life. Culture is the property of a
community of people, not simply a set of characteristics of individuals. Societies
are shaped by culture, and that shaping comes from similar life experiences and
similar interpretations of what those experiences mean.
If culture is mental software, it is also a mental map of reality. It tells us from
early childhood what matters, what to prefer, what to avoid, and what to do. Culture
10 Chapter 1

also tells us what ought to be.10 It gives us assumptions about the ideal beyond what
individuals may experience. It helps us in setting priorities. It establishes codes for
behavior and provides justification and legitimization for that behavior.
In order to understand another culture, you need to understand your own. Cul-
ture determines business practices, for instance. Business practices are not neutral
or value-free. Neither are communication practices. You need to understand the
cultural values you transmit when you interact with someone from another culture,
as well as understand the other person’s cultural values. You also need to recognize
the likelihood that there will be gaps in your comprehension, and holes instead of
connections, in your interaction.
From among the many definitions of culture, here is the definition this book
will use.
Culture is the coherent, learned, shared view of a group of people about life’s
concerns, expressed in symbols and activities, that ranks what is important,
furnishes attitudes about what things are appropriate, and dictates behavior.

This definition merits a closer examination. First, it contains three characteris-

tics of culture—coherent, learned, and shared—and then it outlines three things
that culture does.

Culture Is Coherent
Each culture, past or present, is coherent and complete within itself—an entire
view of the universe. A pioneer researcher into the study of cultures, Edward Tylor,
said in 1871 that culture is:
. . . the outward expression of a unifying and consistent vision brought by a partic-
ular community to its confrontation with such core issues as the origins of the
cosmos, the harsh unpredictability of the natural environment, the nature of society
and humankind’s place in the order of things.11

The fact that different groups of human beings at different times in history
could develop different visions is a cause for wonder. Often, as we shall see, dif-
ferent cultures develop different behaviors but have similar visions. The incredi-
ble variety of cultures fascinates historians, anthropologists, travelers, and nearly
everybody else. It makes all our lives richer when we glimpse, and even claim, a
bit of this treasure of human achievement.
Regardless of how peculiar a fragment or single thread of a culture seems, when
it is placed within the whole tapestry of the culture, it makes sense.
The completeness of cultures also means that members looking out from their
own seamless view of the universe probably do not see anything lacking in their
unifying and consistent vision. This is the source of ethnocentrism.
Here is a hypothetical case to illustrate the coherence of culture. Let’s imagine
that a boat full of south-coast Chinese sets sail for San Francisco, which has been
known as “Old Gold Mountain” in China from the 19th century, a place where im-
migrants can acquire gold. But a storm blows the boat off course and wrecks the
navigation instruments. Eventually the Chinese make landfall off the coast of
 Culture and Communication 11

Mexico, although they don’t know where they are. It is the last week of October,
much later than their intended arrival in San Francisco. They wearily go ashore to
the nearest town. To their horror and dismay, in every store window and every
home’s doorway are images of skeletons, skulls, and graves. In China, death is not
mentioned, let alone broadcast by images everywhere. “What sort of people live
here?” they ask each other.
The Chinese voyagers have arrived in Mexico at the time of el Dia de los Muer-
tos, the Day of the Dead. It is a fiesta with deep meaning for Mexican families. It
emphasizes family ties that reach beyond the grave, as departed family members
are remembered and brought to join the living family through a celebration. The
skulls and skeletons in the windows are made of candy and bread, and are meant
to be eaten, to show how unimportant death is, and how the people are not afraid
of death as the end of family relationships.
In fact, the Chinese traditionally hold a celebration with a similar objective,
called Qing Ming, on the fifth day of the fourth month, or April 5. They too visit
the graves of departed family members to reaffirm their family union in spite of
death. If the Chinese were able to learn why Mexicans display skulls and skeletons
everywhere, they would understand the Mexicans’ attitudes toward death symbols.
But if they were to see only the cultural fragment—a bit of behavior—they would
regard it as bizarre, unnatural, and odious.

Culture Is Learned
Culture is not something we are born with; rather, it is learned. Much of what is
learned about one’s own culture is stored in mental categories that are recalled only
when they are challenged by something different. We all have to be taught our
culture. The process begins immediately after birth—and perhaps even earlier,
according to some.
If culture is learned, it is also learnable. That means nobody has to remain for a
lifetime locked inside only one culture. If you want to understand other cultures,
you can learn them—not just learn about them but actually get inside them and act
according to what is expected. Many people have learned more than one culture and
can move comfortably within and among them. When circumstances dictate, they
make the transition from one culture to another easily. Businesses don’t have to ac-
cept failure in another culture simply because they do not have an employee who
grew up in that culture.
This book is about how to learn other cultures. We believe it is not only possi-
ble to do so but also interesting, rewarding, and necessary.

Culture Is the View of a Group of People

A culture is shared by a society. Members of the society agree about the meanings
of things and about the why. Along with everyone from whom they have learned
their culture—family, teachers, spiritual leaders, peers, and legal, political, and
educational institutions—they have interpreted life experiences in ways that
validate their own culture’s views. They agree about what the important things
are—the things that truly merit respect. They agree without having to talk about it.
12 Chapter 1

Societies are motivated by common views, which are a dynamic force enabling
them to achieve goals such as protecting economic resources and developing
alliances.
People in a culture share symbols of that culture. The most obvious set of symbols
is language. Much more will be said about the role of language (in Chapter 2) and
communication (later in this chapter). Visual symbols such as company logos, icons,
religious images, and national flags form the visual vocabulary of a culture.
Thus, the three characteristics of culture are that it is coherent, learned, and
shared. Now we’ll look at three things culture does.

Culture Ranks What Is Important

Cultures rank what is important. In other words, cultures teach values or priorities.
What is of paramount importance to one group may be virtually meaningless
to another. For instance, consider the amassing of wealth. In one Pacific Island
culture, the Guru rumba of Papua New Guinea, a rich man is required to expend
all the fortune he has spent long years accumulating—in this case, pigs—in the
lavish entertainment of the members of his society. Being able to entertain this way
is the real meaning of wealth, because it means that the giver is owed and there-
fore has great prestige. Try to explain that to a businessperson in the United States
or Hong Kong or Italy who has spent his or her life amassing monetary wealth!
Usually in these cultures, resources are saved and increased, not depleted in one
big blowout. To be sure, businesspeople in these cultures often make generous
charitable and philanthropic donations, but their cultures teach them to value per-
sonal wealth as something to cultivate, like a garden, and make it grow.
The term values crops up frequently in books about intercultural business, as
does the term attitude. What is the difference? Values are standards we use to judge
what is important. Values are mental constructs that underlie specific attitudes and
that determine attitudes as well as behavior. They enable us to evaluate what mat-
ters to us or apply standards to our attitudes and behaviors. People go to war over
values and conduct business by values.
Because values tell us how to weigh the worth of something, they indicate a
relative hierarchy. We can talk about values as cultural priorities. Within a cul-
ture, values may be of greater or lesser importance. For example, a culture may

In Focus

A story is told of the Sultan of Brunei, one of the world’s wealthiest men, who was shopping in a department store in
Manhattan. When he made a purchase, he was asked for identification. However, he carried no identification. “I’m the
Sultan of Brunei,” he stated. The salesperson insisted that he had to show identification. A quick-thinking aide to the
sultan darted forward, put his hand in his pocket, and pulled out a bill in the currency of Brunei. All the money in Brunei
has the Sultan’s picture on it. What values in the Brunei culture does this story suggest?
 Culture and Communication 13

put a high value on honesty and a low value on making only a minimal effort.
Values or priorities vary from culture to culture: Progress reports about the de-
livery of a component may be of great value to a Dutch firm associated with a
business in Japan but of little value to a Japanese firm awaiting the delivery of
a component from Holland.

Culture Furnishes Attitudes

Attitudes are learned tendencies to respond to phenomena (events, people, expe-
riences) in a consistent way. Attitudes are feelings, positive or negative, about
something, based on values. Attitudes can change, although changing some atti-
tudes can be difficult. You can have an attitude toward eating raw fish, for exam-
ple, that is positive and is based on the belief that expert preparation of sushi and
sashimi by Japanese chefs results in culinary delicacies. Or you may have an atti-
tude that is negative, based on the belief that raw fish can contain parasites that
cause unpleasant consequences in the human digestive system. You can even hold
both attitudes at the same time. If you do, you probably value both fine eating ex-
periences and physical health.
Attitudes are based on beliefs as well as on values. Beliefs are convictions or
certainties that come from subjective and often personal ideas rather than on proof
or fact. Belief systems, or religions, are powerful sources of values and attitudes
in cultures. We will look at religions in more detail in Chapter 3.
Attitudes vary according to how important something is (its value). In Mexican
culture, when an aunt dies, the family expects that business associates understand
the family has suffered a significant event. A boss is expected to have an under-
standing attitude toward an employee who is unable to get a report done by the dead-
line because of the funeral and family needs. In Britain, the attitude toward a
business associate’s loss of an aunt is that this is a private affair, regrettable and per-
haps very sad, but something that may not affect the relative’s ability to get a report
done by the deadline. In fact, for a businessperson in the UK, handling the situation
well means keeping it from having an impact on work.

Culture Dictates How to Behave

Behavior refers to actions. To continue the example in the previous discussion, a brief
expression of sympathy by a businessperson to a bereaved work associate is appropri-
ate British behavior. Co-workers may send a card, if they have worked together for a
time. In Mexico, in contrast, much more than an expression of sympathy is appropriate
behavior. Business associates may attend the funeral, send flowers, offer services such
as transporting family members, and visit the family’s home to show respect.
Behavior comes directly from attitudes about how significant something
is—how it is valued. Values drive actions. We’re back at the point made earlier:
Cultural priorities motivate business behavior.
In intercultural interactions, cultural differences usually make themselves
known first by behavior, which is related to attitudes and which springs from
values in the culture.
Table 1.1 illustrates briefly how values, attitudes, and behaviors are related.
14 Chapter 1

TABLE 1.1
Value Attitude Behavior
Relationship of
Values, Attitudes, Honesty Telling lies is wrong. Lying
and Behavior Family Family events come first. Choosing to attend a family
party rather than go out with
friends
Status High status means one has Dressing expensively to show
better control over events high status
and people.
Achievement Achievement deserves praise. Giving recognition for an
accomplishment
Harmony Dissent causes disruption in Refraining from disagreeing
groups.

In Focus

A Japanese employee in Tokyo has not written a report that’s due to his boss. The deadline has arrived. The situation
is that problems at home with his wife have encouraged him to spend his evenings drinking with fellow employees and
going home very late. The result is a raging hangover that makes him unable to concentrate on writing the report. He
goes to his boss and explains all this. For the Japanese worker, neither the excessive drinking nor the domestic prob-
lem is a source of shame, and his expectation is that the superior’s attitude will be acceptance and a paternalistic
concern for the employee’s plight. The superior’s behavior is probably to counsel the employee and inquire into the
domestic situation in subsequent weeks.12
When this scenario is presented to businesspeople in the United States, however, their reaction is that an
employee who explained that he had failed to complete a report because of a hangover from excessive drinking
(whether or not it was to escape domestic problems) probably would be in double trouble with his superior. He would
be criticized for drinking too much, and for not completing the report on time.
In the United States, the superior’s behavior would probably be to tell the employee to get a grip on himself and
seek some help, or else expect unpleasant consequences. The employee in the United States may be just as debili-
tated by a hangover as his Japanese counterpart, but he will offer some other reason for not being able to get the report
done. He may stay home, telling the boss he’s ill.

The Japanese employee with a hangover illustrates the value of group member-
ship: The employee goes out drinking with co-workers and expects his boss to be
sympathetic to his family problems. Another value is hierarchy: The boss is in the
position of parent or counselor, one who has the ability to forgive a missed deadline.
An attitude is the way the employee views his own situation regarding the missed
deadline and his hangover: It couldn’t be helped because he is struggling with prob-
lems at home, and his excessive drinking is excusable (another attitude) because he
has these problems. A behavior is drinking until late at night with co-workers.

Onstage and Backstage Elements of Culture

Onstage culture is the behavior we display. It is what people who are in contact
with one another find easiest to observe and discuss. Onstage culture involves
actions such as shaking hands, bowing, or kissing upon meeting. It includes
 Culture and Communication 15

traditional ways of celebrating with food and dances, costumes and music. When
people are asked to describe another culture, they often refer to onstage behavior.
By contrast, backstage culture is not so visible. Backstage culture is values.
Backstage culture underlies what others see onstage. The actors themselves are not
always aware that their onstage behavior is culturally driven; they think their back-
stage culture is simply normal. Backstage cultural aspects include the ways peo-
ple make decisions, respond to deadlines, accomplish tasks, rank events by
importance, and conceptualize knowledge. If you can explain backstage behavior,
you understand the why of culture.
In Japan, a foreign observer can see young people who dress like young people
in the United States or Western Europe, listen to the same music, and go to the
same new cinema releases. Onstage images are virtually interchangeable. The
backstage cultures of Japan, the United States, and Western Europe, however, are
very different. A foreign observer can misattribute reasons for onstage behavior,
thinking the reasons are the same in different cultures because the observable be-
haviors look the same.
The why is the essence of a people’s culture. If you understand why people value
some things, you can make good guesses about why they value other things. If you
understand why they behave a certain way, you can interpret other behavior with
some degree of accuracy. Once you have insight into what people think is impor-
tant and how they behave, you can do business with them. You know what makes
them the way they are.

Transactional Cultures
What happens onstage when members of different cultures interact? What do we
see? Does each person act out a script for behavior that is from his or her culture?
Sometimes this is exactly what happens. A person initiates an exchange that is
based on expectations that come from his or her backstage culture. The following
provides an example.
A businessperson from Saudi Arabia, who wants to show willingness to get to
know a businessperson from England, stands close during a conversation. The
English person politely maintains a distance to show respect for the Saudi. A kind
of dance results in which the conversing pair move across a room. The English per-
son backs up and the Saudi moves forward.
In another example, at an initial meeting a Mexican businessman holds out his
hand to shake a Japanese businessman’s hand, while the Japanese simultaneously
attempts to bow toward the Mexican. We can see that each is following a script
from his own culture.
But keep watching the stage. What we are likely to see next is that the Japanese
quickly holds out his hand, while the Mexican attempts a bow. What happens on-
stage when members of different cultures interact may be different from their usual
behavior in their own cultures. The new behavior may be temporary, compared
with their enduring backstage cultures.
Consider, for example, the experience of several Western businesspeople who
had taken seminars to prepare them for negotiating business deals in Saudi Ara-
bia. As they sat down at the negotiating table, they heard the Saudi executive say,
16 Chapter 1

“We can do business either the Western way or the Arab way. What’s your
choice?”13 The Saudi was talking about onstage cultural adaptation, or in other
words, creating a transactional culture.
A transactional culture exists when interactants respond to cultural cues and
modify their own behavior, creating—or co-creating—a new, temporary cul-
ture. In this transactional culture, the participants can perform behaviors and
act upon attitudes that are shaped primarily by the interaction. The context of
the interaction becomes more important for molding actions than the individu-
als’ cultural backgrounds. Transactional culture exists when interactants are
sensitive to, and knowledgeable about, another culture, and adjust their behav-
ior. The amount of adjusted behavior depends on several factors, including their
level of knowledge about the other culture, their willingness to experiment with
new behaviors and attitudes, and their previous experience with successful
intercultural interactions.
For instance, a Canadian businessman may put his hands together at the palms,
fingers up, to give a wai greeting to a Thai businessman, although the Canadian
would not wai to a fellow Canadian. A Taiwanese businesswoman with experience
of Brazilian culture may kiss the cheek of a Brazilian businessman at their first
meeting but would not kiss the cheek of a Taiwanese man or woman. They have
learned to act as if they were members of the other culture when interacting with
the other party. Transactional cultural behaviors are transitory and last only as long
as the interactants are involved in communication together.

Adopting Another Culture’s Behavior

When members of a culture adapt permanently to another culture, they function as
members of that culture. They may retain their old culture, but it is not activated
either backstage or onstage, until they are again with members of their original
culture. Adopting a new culture has historical precedents, as Kongo shows.

In Focus

In the year 578, a carpenter named Kongo, with special skills in constructing temples made of wood traveled, from
Korea to Japan. He and his sons began constructing the Shitennoji temple in Osaka for the emperor. Over succeeding
generations, sons worked with fathers from the Kongo family in the business of building Buddhist temples and Shinto
shrines in Japan for successive emperors.
Today, the company, Kongo Gumi, is still going strong following the calling of miyadaiku (temple builders). They
continue to be the carpenters who maintain the Shitennoji temple. The current chief executive, Masakazu Kongo, says
that as the only son he wasn’t allowed to go skydiving or do anything that might endanger his ability to carry on the
family business, which is thought to be the oldest continuous family business in the world.
The company is strong, and in a modern twist, the CEO looks forward to having the more than 1,400-year-old family
business carried on—by his oldest daughter!14
 Culture and Communication 17

Some sources for intercultural communication offer lists of behavioral dos and
taboos as guides for success in other cultures. These lists are popular and offer
some pragmatic help, such as this one governing nonverbal communication:
• Never refuse an offer of coffee from a businessman in Kuwait.
• Be very careful not to point the sole of your foot at someone in Thailand.
• Remove your jacket and work in shirtsleeves in Japan only after your Japanese
colleagues do so first.
• Never help yourself to food when you are the guest of honor at a banquet in
China.
• Do not become irritated if you find yourself waiting half an hour or more for
an appointment with a businessperson from Venezuela.
• Use business courtesies in Dubai, such as shaking hands when introduced,
except when females are involved.
• Do not offer your host gifts for his wife or children when doing business in
Saudi Arabia.
• Plan to spend about two hours on lunch in France.
Dos and taboos lists are usually accurate, but their helpfulness is limited
because they focus only on onstage behavior. One-sentence advice on behavior is
like seeing a snapshot from a movie. It is accurate, but without the context of the
whole movie, the snapshot’s significance may not be understandable. Lists of dos
and taboos don’t explain why you should or should not behave in a particular way
in a particular place. They don’t tell you anything about backstage behavior.
Even if a business traveler has a very long list, who can consult a list for every
situation in every different country?
Once you begin to build a picture of a culture’s priorities, you can draw fairly
accurate deductions about what kind of behavior will be offensive and what kind
will be pleasing. Chapters 3 and 4 discuss what questions to ask to gain an under-
standing of a culture that will enable you to do business effectively.

Culture Shock
Culture shock is an inevitable result of immersion in a new and unfamiliar culture.
It happens to everybody. It’s important to know that culture shock and its symp-
toms are normal and to be expected.
Culture shock is the sense of dislocation and the problems—psychological and
even physical—that result from the stress of trying to make the hundreds of
adjustments necessary for living in a foreign culture. Actually, the term culture
shock is not accurate, because it refers to a range of responses that take place over
time. However, it isn’t a single jolt. Culture shock is experienced in four stages.
The first stage of experiencing a new culture is usually euphoria. Everything
about the exciting new adventure is wonderful. This stage generally lasts no longer
than two weeks, and some people skip it altogether. Some short-visit travelers go
home before they have progressed to the next stage. All who stay for more than a
short visit go on to the second stage.
18 Chapter 1

The second stage is a downturn as disillusionment and frustration arise. This

is usually the stage people refer to when they use the term culture shock. It is a
feeling of not being in step with the members of the culture. It results from find-
ing out that there are inadequacies in your understanding, your mental road map
for navigating this new culture. You don’t know what you don’t know. Finding out
what you don’t know is exhausting, even when it is also exciting. Inevitably, there
are disappointments in yourself and in others; inevitably, you make mistakes.
When the adjustment to a new culture means an upward change in status, people
feel good about the new culture. When the adjustment means a downward change
in status, people quickly feel unhappy.
Most sojourners—travelers who stay for a longer time than a few days—
experience psychological symptoms of culture shock. Some people find them-
selves becoming depressed. They may experience long periods of homesickness.
Some are very lonely and may get involved in relationships that they wouldn’t
form if they were in their own culture. Nearly all sojourners and temporary resi-
dents in a new culture experience dissatisfaction with the way things are. Things
that seemed acceptable when they first arrived become irritations. Sojourners can
become aggressive and exhibit unpleasant behavior that they would not use at
home. They may get angry easily and express hostility and suspicion toward mem-
bers of the host culture. Frequently, culture shock shows itself when sojourners
believe that native members of the culture are trying to take advantage of them—
to overcharge them, for example—because they are foreign.
Physical symptoms also can result from this stage of culture shock. They in-
clude aches and pains in limbs, headaches, chronic fatigue and lack of energy, loss
of appetite, inability to get a good night’s sleep, stomach upsets, and frequent colds
or flu. This stage can last longer than the first euphoric stage—perhaps months.
The third stage is adjustment. As the sojourner learns more about the back-
stage culture and how the other culture works, he or she is able to cooperate more
effectively with members of the host culture. Some successes occur, and solutions
are found for some of the problems that seemed so hard to resolve in stage two. At
this stage, business probably can be conducted successfully.
The fourth stage, integration, occurs when a sojourner becomes fluent enough in
the other culture to move easily within it and not be thrown by the different attitudes,
beliefs, and values, and the behaviors they generate. Often, linguistic fluency helps to
get to this stage. Now the sojourner is able to identify with the host culture.
Most people who work, live, study, or visit for any length of time in another
culture, regardless of the length of the stay, experience all four stages of culture
shock. Furthermore, the longer one stays, the more cycles one goes through. The
fourth stage, in which one feels comfortable in the new culture, leads to another
euphoric stage, followed by frustration and disappointment, followed by adjust-
ment, and so on.15

Reverse Culture Shock

A similar adjustment period with its accompanying symptoms usually occurs
when a sojourner returns home. This is often called reverse culture shock. People
 Culture and Communication 19

often don’t realize that it is normal. After all, it’s somewhat ironic: The sojourner
has been longing to return to the old, familiar culture of home. But once home, the
sojourner finds many things to criticize and often asks why the old culture can’t
be more like the one so recently encountered. Friends and family members typi-
cally find the traveler impatient with things that never used to cause complaint.
Another factor in reverse culture shock is that nobody wants to hear about the won-
derful adventure the sojourner has had.
Returnees find that people at home have had new experiences, too, and the re-
turnee must adjust. Things have changed at the company, and people have been
promoted, achieved successes, retired, left for another employer, and so forth. The
returnee is something of an outsider even after returning “home” and may have a
new job to get used to as well as new contacts to make. Returnees feel they have
been working for the sake of the corporation, usually at some (nonmonetary) cost
and personal sacrifice, but upon returning, often they feel they are not valued.
Some companies provide mentors and training programs to ease re-entry.
Businesspeople who return from years abroad often feel they have a greater
problem with reverse culture shock than they had with culture shock when they
were adjusting to the other culture. It may be that an inverse relationship exists
between the ease of adjustment to living in an unfamiliar culture and the degree of
reverse culture shock: The easier it is to adjust initially to a foreign culture, the
harder it is to readjust to home.
The discussion of culture shock leads us to a key aspect of understanding
cultures: self-knowledge.

Self-Knowledge and Understanding One’s Own Culture

As we have seen, the best response to cultural diversity for communication across
cultures is openness. The same openness needs to be applied to oneself and one’s
own culture. Sun Tzu, the Chinese martial philosopher, said about 2,000 years ago:
Know yourself; know your enemies: One hundred battles; one hundred victories.

Researchers have shown that having a good understanding of one’s own cul-
ture’s values, attitudes, and behaviors—including communication behavior—is
the best foundation for developing the ability to understand the communication
behavior of people from other cultures.
If you know what your own culture believes is normal and natural, you will be
able to figure out where other people’s ideas are different, and what is behind other
people’s behavior. You will be less likely to judge other cultural values as inferior
to yours, but will see them simply as different. You won’t be surprised at different
behavior.
Knowing one’s self is not simple. As Hall says in describing a man in a foreign
environment, “The more that lies behind his actions . . . , the less he can tell you.”16
For example, take an accountant. She operates with mental processes and param-
eters that she learned through accounting courses and through practice; they con-
stitute her mental software about accounting. But she uses a set of values and ideas
about how to act that are not only part of the accountancy software in her mind but
20 Chapter 1

In Focus

What is “normal” business attire? (Also see Chapter 7.) In Indonesia, a businessman wears a loose cotton shirt over
pants. A male proprietor of a small firm may not wear pants at all, but a skirt-like wrap. In Saudi Arabia, a businessman
wears a long robe over his trousers and shirt, while in Japan a businessman wears a dark suit with a white shirt. In
each of these countries, expectations are that a serious, responsible businessman in that culture will dress like that.
Businessmen from the United States often dress informally, in sweaters and slacks or in short-sleeved shirts
without jackets. When they are in very warm countries they may wear shorts for leisure activities. This attire can be
acceptable in certain situations, but it also can appear disrespectful toward the other culture’s attitudes.
Recently, a U.S. automobile parts manufacturer was shown on television trying to make a sale to some Japanese
automobile firms. He was dressed in a boldly patterned cardigan sweater; his hosts were all in dark suits and
white shirts. The camera caught one of the host party, a woman, repeatedly looking at his sweater with something like
alarm in her eyes and looking away again. The sweater could indeed have been a factor in his reported failure to get
a single sale.
The salesman in this episode was acting in accordance with ideas about dress that seemed appropriate to him from
his cultural windows. He may have considered the informality of his dress as signaling a willingness to put aside rigid
rules of behavior and be friendly. He may have been cold and enjoyed the warmth of a large sweater. He may have
spent the previous 20 hours on a plane without a chance to change his clothes and may have gone straight to the trade
show because, to him, being there was more important than being dressed a certain way.

also part of the larger operating environment of unconsciously held values, atti-
tudes, and behaviors from her society. It’s easier for her to look at what makes up
her view of accounting than to look at what makes up her view of life.
Most people assume that what they take for granted as natural and normal is
what everyone on the planet also considers natural and normal. Most people dis-
cover only when they come into contact with something different that the ideas
they hold as absolute truths are actually culture-based positions. At the same time,
to assume that you know how someone else is thinking based on how you see
things is called projected cognitive similarity. It occurs when you think you know
someone else’s perceptions, judgments, attitudes, and values because you assume
they are like your own. In other words, it is an example of the self-reference crite-
rion that was discussed earlier. Assuming you know what someone else is think-
ing can lead to disrupted communication and even conflict. Even when people may
agree on goals—for example, the corporate goals of an organization—they may
expect to reach those goals by different methods.

Mental Representations
One way of understanding our own culture, as well as another, is to use mental cat-
egories that hold information items grouped together.
Mental representations change with the introduction of new information. They
are dynamic and can be altered to form new mental categories as more data come in.
Everyone has a large data bank of mental representations. To understand yourself,
 Culture and Communication 21

you need to be aware of your own data bank and its categories. Then, when you
encounter someone from another culture, you can understand how your mental cat-
egory is being transformed by reality. You can be open to new awareness and have a
dynamic experience of the transformation of your mental categories.
Even incomplete, sketchy mental representations that are based on objective ob-
servation usually contain some truth. That’s why they can be useful: for example,
“Latin American businesspeople often talk about their families before getting down
to business”; “Japanese negotiators use silence a lot more than Europeans do.”
Generalizations like these have some kinship with stereotypes, which are
discussed in Chapter 3.

Prejudice
Generalizations that are based on limited knowledge, and that express an
evaluation—usually negative—are prejudices. In other words, they are prejudg-
ments. They come from people who make up their minds before they have all the
facts. “Chinese always give you a fish-eye look; they don’t feel any emotion”;
“Irish have hot tempers and get angry easily; they can be really difficult to deal
with.” It may be one’s experience that Chinese people do not show emotion readily,
but that doesn’t equal coldness, which is a negative evaluation. It is judging
Chinese character, not simply observing behavior. It may be one’s experience that
Irish people easily find words to express emotion. But hot-tempered is a negative
judgment. Prejudice, or prejudging before all the facts are known, is leaping to an
evaluative conclusion, usually based on limited knowledge, without gathering
information about the individual, the culture, and the context.
Prejudice often is accompanied by suspicion, fear, hatred, or contempt. Busi-
ness communicators need to be aware of prejudices and consciously avoid acting
on them.
Racism is one form of prejudice that leads to behavior that excludes or sidelines
people on the basis of their perceived race. Sexism is another. Ageism is prejudice
in favor of younger or older individuals that leads to older workers’ being laid off
or not hired because of their age, or causes favoritism of older people to the ex-
clusion of younger, less experienced workers. Homophobia is a term usually used
to mean prejudice against homosexuals, although it really means a phobia or irra-
tional fear of being sexually aroused by someone from the same sex. It leads to the
persecution and exclusion of homosexuals at work.
These prejudices are carried into intercultural business dealings. Not only are
they often unrecognized by the people that have them, but in foreign surroundings
people’s prejudices can come to the forefront. People who would not allow
themselves to express their prejudices in their own culture may do so in an unfa-
miliar culture. This is a well-documented result of culture shock, as was discussed
earlier.
Eighty years ago the social psychologist E. S. Bogardus began to research the
effects of prejudice. In an interesting experiment, he asked people to rate, on a
social distance scale from 1 to 8, how favorably they felt toward groups of peo-
ple according to their national identity.17 The most favorable rating, number 1,
22 Chapter 1

indicated a willingness to have a daughter or son marry someone of that group.

An 8 meant not being willing to allow someone of that group into the country,
let alone into one’s home. The interesting thing was that the list of more than 60
nations included three fictitious ones: Danireans, Pireneans, and Wallonians.
Bogardus found that the people who were unwilling to admit members of other,
known nations also were unwilling to admit members of the unknown nations.
Conversely, tolerance toward people of many nations included tolerance toward
the three unknown (and nonexistent) nationalities. This finding suggests that
intolerant people are intolerant across the board, and tolerant people are toler-
ant even of members of unknown countries.

Bias
We all have biases, and we are ready to acknowledge many of them. You may have
a bias toward tough disciplinary measures for dealing with those who break the
rules, a bias toward a work environment where the superior is approachable and
low-key, or a bias toward a four-day workweek. A bias for something is really noth-
ing more than a preference. A bias against something is a negative attitude that
ranks it low. Many biases are recalled from long-term memory only when forced
by an external challenge. For instance, you may not realize you have a bias against
French cars or lime-flavored soft drinks until you are given no other choice at a car
rental agency or restaurant.
Studies of job interviews show that interviewers are biased toward interviewees
who appear to come from their own cultural background—who have an accent that
indicates membership in the same ethnic group, for example. When other factors
remain constant, the accent is the factor that determines which candidate gets the
job from which interviewer.18 In this case, the bias has an easily understandable
basis; we prefer what is known and familiar because it poses little threat. Those
who understand the self-reference criterion discussed earlier and who are open to
making adjustments in their evaluations are likely to become more aware of their
own cultures while they are learning about other cultures.
We need to be aware of our biases and be open to changing them. In addition,
we need to be ready to discover unrecognized biases within us that can influence
the way we understand another culture.

Discrimination
When biases or prejudices are acted on, the actor is showing discrimination.
Discrimination is the act of sifting out and selecting according to bias toward
something or someone, and treating them differently. We say someone has “dis-
criminating taste” as a compliment because that person is able to sift carefully
through a mass of items and identify the best. To be undiscriminating is to lack
judgment and be unable to discern the best from the second best or the inferior.
In the United States, discrimination became a widely used term for racism, the
identification of others as worse based solely on their perceived racial member-
ship. Discrimination occurs in all cultures, where negative behavior is shown
toward groups.
 Culture and Communication 23

Cultural Intelligence
Anyone with some experience of another culture has observed that people are not
alike in how well they adapt to another culture. Even those who show sensitivity
and delicacy when interacting with people in their own culture may fail to show
the same ability to adapt in a new culture. Cultural Intelligence (CQ) is the term
some have used to explain how certain people seem able to fit into another culture
more easily than others.
Cultural Intelligence is the capability of an individual to learn and understand
another culture and then act accordingly.

It is called CQ because of an analogy to reasoning-based and logic-based

intelligence that is measured on tests to achieve a numerical score expressed as a
quotient. Logic-based intelligence is called IQ, which stands for Intelligence
Quotient.
Psychologists also recognize different kinds of human intelligence. These
include:
• EQ (Emotional Intelligence, the ability to read others’ and one’s own emotions
and act accordingly)
• SQ (Social Intelligence, the ability to understand social needs and expectations,
and act accordingly)
• PQ (Practical Intelligence, the ability to accomplish daily living tasks effi-
ciently and effectively)
Furthermore, studies have shown the definitions of intelligence are culturally
defined.
Cultural intelligence, “a person’s capability for successful adaptation to new
cultural settings, has three main components.”19 We have already encountered
these three components on page 9. They are the necessary components to have in
order to understand another’s environment and prevent cultural mistakes:
• Cognition, or thinking processes, including knowledge about the culture and
about what to do in a new culture
• Motivation, or desire to adapt successfully
• Behaviors, or appropriate actions
Exhibit 1.1 shows the CQ model.
CQ has three main components: (1) cognition involving both knowledge
about a culture and knowledge about how things are done that together enable
one to think and solve cultural problems, (2) motivation to adapt to a new cul-
ture, and (3) application, putting one’s desire to adapt and one’s knowledge and
ability to solve cultural problems into action. In summary, knowledge, desire to
adapt, and behavior appropriate to the new culture together make up cultural
intelligence.
Obviously, for people whose work takes them to other countries, high CQ is
valuable. These are people who get along well. They pick up on what is important
24 Chapter 1

EXHIBIT 1.1
Model of Cultural
A 3-Part Model of CQ
Intelligence (CQ)

CULTURAL INTELLIGENCE

KNOWLEDGE MOTIVATION BEHAVIOR

Knowledge about Self-efficacy Habits
Knowledge about Persistence and drive Practice/rituals
how-to Goals Newly learned
Analogies Self-enhancement behavior
Pattern and self-face Mimicry skill
recognition

(values) and what the cultural attitudes are, and they learn to behave according to
the expectations of that culture. Because they adapt successfully, they also man-
age to accomplish many of their goals in the new culture.

The Question of Change in Cultures

Are Cultures Merging into One Global Culture?
Predictions often are made in the popular business press that all cultures are
becoming alike. However, the evidence does not suggest that one global culture
will one day dominate the planet.
A glance at the events in recent decades in the former Yugoslavia shows how
far ethnic groups are willing to go to defend their cultures. Yugoslavia was created
in 1929 when the kingdoms of Serbs, Croats, and Slovenes that had come together
after World War I changed their name to Yugoslavia. After World War II, the coun-
try was ruled by a communist government under Marshall Tito. But following
Tito’s death and the end of Soviet rule in Eastern Europe in 1991, individual cul-
tural groups began to break away: Slovenia, Croatia, and Macedonia each splin-
tered off, followed by Bosnia-Herzegovina in 1992. Today, all these groups are
independent of Yugoslavia. Although Serbia and Montenegro, original compo-
nents of Yugoslavia, tried unsuccessfully to coerce the others militarily into a
Greater Serbia, today they stand alone. They also used armed force to expel
cultural Albanians from the Serbian province of Kosovo, prompting international
military intervention. Today, Kosovo is governed by a United Nations mission, but
old cultural divisions continue to disrupt the governance of the state. Cultural pri-
orities lead people into devastating armed conflict because of the strength of their
allegiance to their cultures. Cultural divisions can last centuries.
Clashes of cultures are not always bloody. French Canadians who wanted to
defend their culture nearly succeeded in separating from the rest of Canada in 1995
 Culture and Communication 25

when a national referendum on the question failed by a tiny margin: less than half
of 1 percent. As societies achieve more economic stability, rallying around their
cultures seems to increase in importance, not decrease. In spite of spreading global
technology, in spite of the availability of the same consumer goods in many coun-
tries, and even in spite of changing tastes and fads that sweep from continent to
continent, the deep values of cultures remain unchanged.
Europe gives us examples, too. For example, observers in 2007–8 saw
Belgium come close to breaking apart into two nations, one Flemish-speaking
and the other French-speaking. Regarding the larger region, countries in the
European Union still exhibit a desire to protect national cultures. For instance, the
French have blocked the purchase by Italy of a French utility, in the name of
national security and interest. Since countries want to protect their own labor
pools, the EU is finding labor mobility a tricky issue. The EU won rulings in the
World Trade Organization (WTO) that uphold the protection of brand names
associated with specific national locations, including Parma ham from the Italian
province of Parma, and feta cheese from Greece. Thus, national cultures so far
are not disappearing into one European culture.

Ever-Changing Popular Taste

Much is written about the constant change cultures undergo. Global companies
such as Pepsi, Sony, and Microsoft are said to be changing cultures. It is true that
popular taste changes; fads come and go, especially in the marketplace, which is
driven by changing tastes. Korean students who think of McDonald’s as a Korean
restaurant are no less Korean because they eat fast food that originated in the
United States. Sufferers from migraine headaches in Argentina who consult
acupuncturists are no less Argentine for seeking a traditional Chinese treatment.
These are instances of popular taste.
Popular culture, which includes consumer products—for example, music, food,
hairstyles, clothing, recreational activities and their equipment, styles of cars, and
furnishings—constantly changes. But backstage culture—the values, attitudes,
and cultural dimensions that have been learned from birth—change very little and
very, very slowly.
Sometimes the shifting emphasis of existing values in a culture is mistaken for
cultural change. As if a spotlight first illuminates one situation and then fades
while another event is highlighted on the stage, circumstances—geopolitical, eco-
nomic, and religious—focus attention on some values as others recede.
All cultures include values that can be in opposition to each other. In the United
States, the value of independence is sometimes in conflict with the equally held
value of respect for personal property. In Singapore, the value of belonging to a
group is sometimes at odds with the value of asserting one’s position to accom-
plish a task. But these values are in the culture all the time. Certain situations bring
out one value or another. What looks like a change in the culture, seen in the short
term, is actually a shift in emphasis.
Significant change in social organization occurs with economic change. China
is a country in which offspring have always shown respect to, and eventually cared
26 Chapter 1

for, their parents. The behaviors are associated with the Confucian value of filial
piety. In traditional China, the eldest son and his family always lived with his par-
ents. However, economic change created a shift in family structure. Rather than a
son bringing his wife to his parents’ home, married couples increasingly lived on
their own. This change came about because neither parents nor young couples
could afford housing large enough for everyone. However, this change in housing
doesn’t mean that filial piety is no longer valued in China. Filial piety is apparent
in ways offspring arrange care for their parents, either having someone check on
them regularly, or finding a care-giving facility for them. As more wealth is cre-
ated by families in China, the traditional model is re-emerging: Parents live with
their children and grandchildren.
Research will be necessary to demonstrate that backstage culture actually is
changing in China, or any other culture, and that the change consists of more than
proceeding and receding emphases on values that already exist within the culture. In
the short term, the older members of a culture always deplore the way values seem
to be abandoned by the young. When those children become parents and grandpar-
ents, the cultural values they were taught as youths often reassert themselves.
Technology often is identified as an agent of cultural change. Technology is the
way humans relate to their physical environment. For example, technology has
altered the way space and time affect human communication: Cell phones and e-mail
have reduced both time and space constraints to almost nothing. Microchips are
making smart machines possible in a wide range of applications. The constraints of
the human body and the physical environment are disappearing, and activities that
were not possible except through great effort and expense now occur with ease. Ac-
tivities as different as online shopping and online academic research are changing
the marketplace and the university. Medical innovations include the possibility of
surgically embedding microchips in humans who have been physically unable to do
certain things. But this marvelous technology does not change the cultural imprint
of the culture on its members. Individuals still carry a map of their culture in their
minds and hearts no matter what technological innovations they implement.

The Study of Communication across Cultures

Culture and communication are closely connected. Culture is learned and shared
through communication, and communication is based in cultural norms. What is
communicated and how it is communicated are both determined by culture.
Language is the tool for communicating and it is also related to thought
processes and mental categories. But learning another language alone cannot help
us understand another culture.
The study of communication and culture is relatively young, and has its roots in
the United States. In 1959, American anthropologist Edward T. Hall wrote about how
culture affects communication in his book The Silent Language. The silent language
is, of course, culture. The study of cross-cultural communication began with the
United States’ interest in sending people to other countries and having them succeed
because of their cultural training beforehand. Edward Hall worked for the United
States Foreign Service Institute (FSI). After the Second World War, the United States
 Culture and Communication 27

decided to study foreign cultures and train people in languages and cultural knowl-
edge for working in other countries. As a result, the FSI developed training programs.

Three Characteristics of the Discipline

of Cross-cultural Communication
This beginning has led to three major characteristics of the study of cross-
cultural communication.
• To a very great extent, for the FSI trainees the American culture was the nor-
mative culture and other cultures were compared to it—an ethnocentric ap-
proach. Research has been American-dominated in the field of cross-cultural
communication.
• The study of foreign cultures was based almost entirely on observed behaviors—
onstage culture. The study of cultural values came later.
• The early study of communication and cultures was multidisciplinary—a
characteristic that is still true today. Psychology, anthropology, sociology,
communication, linguistics, and language training all play a part in the study of
culture. More recently, management studies also have contributed to the
understanding of communication and culture, along with political studies,
economics, and geography.

Study of the Communication of Groups versus

the Study of Individuals’ Communication
Researchers gather two general kinds of information about communication. Some
research looks at the way groups and cultures communicate, while other research
looks at the communication of individuals. It is important to keep these two
ways of studying communication separate. When an entire culture is the subject
of study, information is gathered by very large surveys, and the results lead to gen-
eralizations about the way the culture communicates. Statistical means and aver-
ages describe the entire culture, but may not describe every person in that culture.
In fact, we err if we believe that just because a person comes from a particular
culture, therefore they will inevitably communicate in a certain way. People’s
behavior is determined by many factors, of which culture is one.
In the other approach, when individuals are the focus of study, the individuals
are interviewed and observed, and the result is rich, complex information about the
individuals, but that information cannot be generalized to a whole culture.
Now we will look at the difference between the two terms intercultural and
cross-cultural.

Intercultural and Cross-cultural

Communication Study
These two terms are often used interchangeably, which can cause some confusion.
However, they can be used to mean different kinds of study. An understanding of
their different use can be helpful.
28 Chapter 1

Cross-cultural Communication
According to William B. Gudykunst,20 the approach called cross-cultural commu-
nication involves a comparison. Communication within one culture is the focus
first, and then communication within a second culture is the next focus, so the two
can be compared.
For example, consider the communication styles of the United States and of
Oman, one of the Gulf states on the Arabian peninsula. Americans usually greet
someone from another culture with a casual and personal greeting. Americans of-
ten communicate with direct statements and questions to get information and
avoid ambiguity and misunderstanding. Americans often freely give their opinions
without being asked, and usually show a desire to be liked.
What about communication in the Omani culture? Omanis usually use formal
greetings, following established formulas, especially when first meeting someone
from another culture. Politeness takes precedence over an open declaration of opin-
ions, since Omanis usually try not to give offense and to maintain harmony in social
situations. In order to have a pleasant conversation, Omanis may use indirectness to
avoid saying things that could make the other person feel angry or disrespected.
Each culture’s communication style is analyzed in terms of its own cultural
values and practices. Then the communication is compared, and differences and
similarities appear. For example, consider the language that members of different
cultures use to articulate their accomplishments, perhaps in a job interview. Some
cultures expect claims of expertise, even when the communicator’s experience is
slight. Other cultures expect modesty, not claims of expertise, even when that
applicant has had recognized success. What might be called “giving yourself
credit” in one culture is called boasting in another. In the culture of New Zealand,
making claims for oneself is considered to be in bad taste, and one who does so is
called a skite. Mothers teach children from a young age to avoid “skiting” (boast-
ing about accomplishments) or seeking the limelight.

In Focus

In New Zealand, the game of rugby is a fervent national pastime. Rugby teams attract large crowds of loyal fans, and
games are popular events. Faithful followers recall a game with Australia in which a player on the New Zealand All
Blacks team got his hands on the awkward ball and plowed past the opposing team members to churn toward the goal
line 35 yards away. The crowd roared with delight as he drove alone and unimpeded to the goal, but then as he got
closer to scoring, the roar began to diminish until finally one All Blacks fan could be heard to yell, “Bloody skite!”

Intercultural Communication
Intercultural communication occurs when people from two or more cultures
interact. Using the American–Omani example, we can consider what happens at the
point where an American and an Omani interact. As a result of the cultural
differences, the Omanis could feel somewhat insulted by the bluntness of Americans.
Americans may feel the Omanis are not open and candid.
 Culture and Communication 29

Since initial greetings are different in their formality, to the Omanis the Amer-
icans may seem too informal and therefore not serious about developing a rela-
tionship. At the same time, to the Americans the Omanis may seem too formal and
therefore not serious about developing a relationship. Americans communicate
with openness and want to be friendly, but often they are not sensitive about how
their statements are received. Omanis may seem evasive or even deceptive when
they do not declare their positions, although that is not how they want to be per-
ceived. Both cultures value successful social interactions. Americans want to be
friendly, so they disclose information about themselves, while Omanis want to be
friendly, so they avoid disclosing too much about themselves in a first meeting.
Intercultural communication involves analysis of what is happening at the point
when communication is taking place. Of course, the analysis involves information
about each culture, which means that an understanding of each culture is neces-
sary. That sounds very much like the first step in the cross-cultural approach. The
line between cross-cultural study and intercultural study is not precise.
However, some situations clearly are intercultural. For example, when teams
from different cultures are engaged in negotiation, intercultural communication is
taking place. When a manager from one culture is meeting with an employee from
another culture, intercultural communication is taking place.
On the other hand, when a television network is planning how to reach markets
in more than one culture, cross-cultural communication is being considered.
Table 1.2 shows a summary of different categories of research within cross-
cultural and intercultural approaches.
Each of these areas of research has produced theories for understanding the
relationship between culture and communication.
Now we will look at two basic approaches to communication research.

Two Broad Approaches to Communication Research

in the Social Sciences
Some authors say that approaches to research in “social science” differ because
one approach emphasizes “social” and the other approach emphasizes “science.”
The “science” approach is also called positivist or functionalist.
The “social” approach is also called interpretivist or humanist.
See Table 1.3 for the key differences in the two paradigms or models.
Positivist Research Design
The positivist approach:
• is based on a philosophical position that what is being studied is objective.
It has an objective reality.
• collects data through observation by the researcher (who is impartial) and
by questionnaire.
• produces studies that can be replicated—that is, another researcher who is
equally unbiased and impartial and who observes the same phenomenon can repeat
the study. (In social science, a phenomenon usually means a human behavior.)
30 Chapter 1

TABLE 1.2
Cross-cultural Intercultural
Some Areas
of Research in • Compares communication • Examines communication
Cross-Cultural in different cultures interactions between people of
and Intercultural different cultures
Communication — Treats culture as a — Uses cultural
theoretical variable variables/dimensions in
explaining interactions
— Includes cross-cultural
psychological processes; — Includes intercultural
e.g., perception and emotion psychological
processes; e.g., identity
— Compares nonverbal management, facework
communication and
other communication — Focuses on outcomes
behaviors of communication
— Looks at verbal interactions and processes
(language) (such as acculturation, conflict
communication differences management, teamwork,
across cultures negotiation)

— Contrasts facework — Studies adaptation and

negotiation behaviors; accommodation of
compares conflict groups in other cultures
management
approaches — Examines communication
networks

TABLE 1.3
Functionalist Research Interpretivist Research
The Two General
Paradigm Paradigm
Research Paradigms
in Business and the View of reality Objective and can be Subjective, is constructed
Social Sciences observed by researcher by human mental activity
View of researcher Impartial, observation Involved to some degree
does not affect what is with what is being studied,
being studied and impacts what is being
studied
Objective of research Describe and predict Describe communication
communication behavior behavior and reasons as
reported by subjects under
study
Methods of study Observation Field research (e.g., inter-
views, ethnography)
What study produces Identification of cultural Explanations of culture and
variables in behavior; communication in a social
conclusions that may be context
generalizable to other
cultures
 Culture and Communication 31

For example, a researcher may study the behavior of members of a culture who
are responding to a request for charitable gifts for an orphanage. The behavior
could be, for example, the donation of money from the reader’s pocket. The
researcher may want to know which key words are most effective in moving the
person to make a donation. The researcher can observe and can also ask the subject
at what point, if any, the decision was made to donate money.
Researchers who use the positivist approach believe their study of the
phenomenon does not directly affect it. In other words, positivists believe that
the behavior of the participants is not affected by the researcher doing the study.
The objective of the positivist researcher is to describe the behavior and
predict it. In order to predict that certain words are successful in getting dona-
tions, the researcher has to generalize from what has happened during the study.
Let’s say that 40 percent of the time people who were asked to give money did give
money. And let’s say the researcher found by using a questionnaire that among
several phrases that achieved that response, the most frequently successful
phrase—according to the respondents—was “you will feel a reward for what you
have done.” Of the 40 percent who gave money, 70 percent said that phrase was
what convinced them.
If the researcher has this kind of information, the researcher can predict that in
the future, the phrase “you will feel a reward for what you have done” will generate
donations, and may expect the phrase to work with 70 percent of the people. In other
words, the positivist researcher usually gathers quantitative data—information that
is in numerical form. Questionnaires provide responses that can be added, averaged,
that can have percentages found, and so forth. The positivist researcher counts re-
sponses and analyzes data numerically. Some statistical analyses are quite sophisti-
cated, well beyond the simple percentage figures in the example.
Now consider a positivist study involving culture and communication. Let’s say
the researcher wants to find out whether the phrase “you will feel a reward for what
you have done” works to stimulate donations in one culture compared to another
culture, and at what rate. With the results of this positivist study, a researcher may
draw conclusions about the cultures represented in the study and charitable giving,
and may predict the success of the phrase in a third culture.

Interpretivist Research Design

The interpretivist approach:
• is based on the philosophical position that reality is subjective, created by the
minds of people according to the way things make sense to them. Reality, and
what it means, comes from the conceptualization shared by a group of people.
• collects data by observation and perhaps by questionnaire, but mainly by
interview and focus groups.
In this case, the researcher wants to explore reality with the subjects in the
study, and that means asking questions to get as much information as possible
about how the subjects see the world and where meaning comes from. The re-
searcher often uses interviews that give the subjects a chance to talk about what
32 Chapter 1

they understand. The interpretivist researcher usually wants to know why the
participants in the study act in a certain way.
That means the interpretivist approach:
• Studies one group in depth.
• Believes the act of gathering information impacts the information since
having an interviewer ask questions makes people think about associated mean-
ings and reasons.
The objective of the interpretivist’s research is to describe the phenomenon
and to find out the reasons for it as reported by the participants in the study.
Not every participant may have the same reasons, so the researcher may end up
with a list of reasons not shared by everyone. The researcher cannot generalize
from these findings, because another group of participants might have different
reasons, more reasons, or fewer reasons. So the interpretivist researcher is not in-
terested in predicting behavior in the future, but rather in carefully explaining the
reasons for the conclusions in this specific study.
The context is part of how the researcher explains the conclusions of an inter-
pretivist study. In a positivist study, the findings are generalized, and specific char-
acteristics of a particular context are not taken into account.

Combined Approach
These two general approaches to research, positivist and interpretivist, are
usually used in some kind of combination in communication research. Human
communication behavior is complex in its motivations and often lends itself to more
than one explanation. That is why the interpretivist approach is a frequent choice.
At the same time, numerical data help give an overall picture, and quantitative
analysis can shed light on what the data mean, especially in large studies, so pos-
itivist elements often figure in a research project.
The Merits of Positivist Research
• Positivist research uses data that can be generalized, so predictions can be
made about communication in other contexts (this is particularly useful in
comparing communication in different cultures).
• Often data are numerical and are measurements (questionnaire responses,
counts of behavior), so statistical analysis is possible. The positivist approach
is also often called quantitative research, because the data collected are
expressed in numbers.
• Studies have high reliability. Reliability is an important quality in research. It
is the degree to which a study can be replicated (that is, repeated or reproduced)
at another time, by the same or a different researcher.
We have already discussed the example of a research project about culture’s
impact on communication that asks for charitable donations. Let’s explore this in
more detail as a positivist research study.
A positivist researcher could choose several phrases that ask for donations and
put them on a questionnaire. Then the researcher could use the questionnaire to
 Culture and Communication 33

ask members of a culture to select the phrase that is most likely to make them
want to give.
Next, the researcher would take the same phrases and ask the same questions in
a questionnaire for another culture. The researcher would try to have the two cul-
tural groups be as alike as possible in every way except culture, so other variables
besides culture would not be factors in their answers. Other variables could be age,
gender, income, location (in a city or countryside), experience with previous
requests for donations, and so on. The researcher would want a large number of
respondents from both cultures.
The analysis of the responses would look at how many people from each cul-
ture chose which phrase most frequently, which second most frequently, and so on.
The analysis of the findings would lead the researcher to conclude which one
phrase works best. It might be the same phrase in both cultures, or it might be a
different phrase in each.
Then the researcher would predict which phrase will work in each culture in the
future. The researcher might also predict which phrase would be most effective in
a third culture.
Now let’s look at the weaknesses of the positivist approach.

The Overall Weaknesses of the Positivist Approach

• Separating out the other variables among respondents is difficult. Even if
age, gender, income, and so on are similar in both groups, people are not iden-
tical. The factors that generate communication behavior are not all the same
among people of one culture.
• Respondents may choose one phrase in one situation, and another phrase in
another situation, but the researcher is probably asking for one response. Ques-
tionnaires cannot ask for responses to every situation. This means a positivist
study is low in validity. Validity is the degree to which research truly finds out
about what it says it is studying.
In our example, a respondent about which phrase moves her to make a dona-
tion to charity might be affected by the emotions she felt when she read a story in
the newspaper that day about someone in need, and her choice might be different
today from what she would have chosen yesterday. Next month, she may not re-
member the story in the newspaper when asked the question about which phrase
moves her, and her answer may be different. A questionnaire is unlikely to ask her
about her emotions that day. The positivist researcher has no way of exploring
the context for the respondent’s answer.

The Merits of Interpretivist Research

The merits of interpretivist research include:
• Rich, detailed data can be gathered from the sample. Interpretivist research is
often called qualitative research. That is, when researchers talk to respondents,
they can uncover more information than they had expected. Respondents can
reveal interrelated ways they see reality. The researcher may not even have thought
34 Chapter 1

of some factors influencing the respondents’ behavior and attitudes, and the re-
searcher needs to be open to finding something different from what was expected.
• Because the researcher can explore how the participants behave, along with their
reasons for doing so, the validity of interpretivist research is high; the complex-
ities involved in information about behavior, values, and attitudes can be explored.
• The research context can be addressed. Besides the gathering of qualitative
data, the analysis of data can also be qualitative.
In our example about what triggers a charitable donation, an interpretivist
researcher will interview participants in the study. Together they will explore mean-
ings, behavior, and reasons. The interviewer will probe to make sure he or she un-
derstands the participants as fully as possible. Factors affecting the participants’
answers will also be investigated. The result of such a study would be a compre-
hensive description of the participants’ responses to a certain communication.
But the interpretivist approach also has weaknesses.

Weaknesses of Interpretivist Research

The weaknesses of interpretivist research include:
• The findings are subjective, since the researcher/observer is also to some
extent a participant. This means the researcher’s opinions form part of the con-
clusions. The researcher and the participant collaborate to interpret the phe-
nomena being studied. The extent of collaboration varies from project to project.
• As a consequence of the subjectivity, interpretivist research has low reliabil-
ity. Because the data collected refer to one specific group, the study cannot be
replicated exactly.
• Furthermore, the results of interpretivist research cannot be generalized to
any other context or group than the one in which the study takes place. That
means predictions cannot be made based on findings from interpretivist re-
search, which is interested in describing behavior and interpreting it.

The Rhetorical Approach: A Kind of Interpretivist Study

Before we leave this discussion of the two primary paradigms in social science
research, we need to mention one key approach in communication studies: the
rhetorical approach. Rhetoric forms the basis of an important kind of interpretivist
research for communication. Rhetoric dates from the 5th century B.C.E. and
involves examining written texts or oral utterances in order to explain attitudes,
values, and behavior. The goal of rhetorical research is to interpret meanings of
what people have said or what they have written down, in their original context.
Context plays an important role in rhetorical research.

Study of Culture and Communication: Individuals or Cultures

In this book, we are focusing on the role of culture in communication for business.
Cultures have preferences about communication, and that leads to differences
from one culture to another. Individuals have preferences about communication,
 Culture and Communication 35

too, although not always the same preferences their culture has, and individuals
communicate differently depending on their personalities and interaction skills.
Intercultural communication researchers recognize this distinction between a
focus on individual members of a culture and how they communicate with
individuals in another culture, and a focus on how cultures behave.

Intercultural Business Communication

Intercultural business communication is communication by members of differ-
ent cultures for business or workplace purposes.
Business activity involves specific communication acts, products, and communi-
cators, and the field of intercultural business communication focuses on people of
different cultures. People in various roles such as negotiators, writers of business
messages, team members, meeting hosts and guests, and co-workers generate com-
munication acts including meetings, memos, e-mails, letters, reports, proposals, pre-
sentations, speeches, advertisements, public relations documents, and interpersonal
conversations. Culture affects all these communications.

Perception and Communication

Communication is the perception of verbal (worded) and nonverbal (without
words) behaviors and the assignment of meaning to them. It takes place whether
the sending of signals is intentional or unintentional. Communication even takes
place when the verbal or nonverbal behavior is unconscious, as long as it is
observed and meaning is assigned to it. When a receiver of signals perceives those
signals, decides to pay attention to them as meaningful, categorizes them accord-
ing to categories in his or her mind, and assigns meaning to them, communication
has occurred.
Perception is a process that can break down at any of these steps. This is true
when communication takes place between members of the same group,
who share values, attitudes, experiences, behavioral expectations, and even a
history together. When communicators come from different cultures, however,
the challenges are much greater. Perception involves four options as Exhibit 1.2
shows.
Communication signals can be verbal or nonverbal or a combination of both. Imag-
ine a glance from someone, accompanied by a noise in that person’s throat. When you
encounter something unfamiliar, you have several choices: (1) You can assume it is
nothing. It fits no category known to you and means nothing. At this point, you have
perceived a signal but have chosen not to attend to it. (2) You can assume it is simply
a variant of something familiar that is already in a mental category. It may seem that
the noise in the throat is a prelude to speech that will be directed at you since the per-
son is looking at you. In this case, you have categorized it and assigned meaning to it,
but both may be wrong. The glance may, in fact, be directed past you to someone or
something else, and the noise in the throat may actually be words in a language you
don’t understand. (3) Another option is that you can choose to perceive the signals as
unfamiliar and therefore not to be matched with existing mental categories; thus, you
36 Chapter 1

EXHIBIT 1.2 Perception Model of Choices about Communication Signals

1. No match 2. Put in similar 3. Held until 4. Put in

category category matching
is created category

reject them or hold them until you can relate them to something already familiar. It’s
hard to keep the uncategorized and unmeaningful in your mind for very long unless
you have learned to do so. Finally, (4) you have the option of altering your mental cat-
egory to accommodate the new information and assign it a new meaning. This is how
categories are constantly being revised and increased. Meaning is assigned to verbal
and nonverbal behavior based on one’s accumulated experience and understanding—
one’s mental data bank of meanings, from one’s culture.
To have good communication with someone from another culture, you need to
understand meanings in that culture.

A Schemata Model for Intercultural Communication

The mental categories we create in order to make sense of the world can be called
schemata. Among the schemata are those that categorize what we know about cul-
tures other than our own. If you are asked to summon up what you know about a
culture, say, the dominant culture of Ethiopia, you may not have many data in your
schema; indeed, you may have to create a new schema because this is the first time
you’ve thought about Ethiopia.
We can model our expanding knowledge of another culture and how we
communicate with it.21 Exhibit 1.3 shows your culture as Culture A, Ethiopian culture
as Culture B, and your projection or schema about Ethiopian culture as B1 (B prime).
If you imagine yourself traveling to Ethiopia for business, you now may be able
to make further projections, based on the categories in your schema, of what you
can expect to find. What food will you be offered by your business contacts there?
What will unlikely be offered? Would it be acceptable for you to refuse refresh-
ment? You will observe Ethiopians eating with their fingers. Why? What will you
do? If the businesspeople you spend time with represent one company, what else
may they have in common?
Whatever you know about Ethiopia, based on these few facts and questions
or on your prior knowledge, unless you are Ethiopian, your mental schema will
 Culture and Communication 37

EXHIBIT 1.3
Communication Is B
1

with Schemata, Not

Actual Culture

Culture A Culture B

EXHIBIT 1.4 Culture B

Communicators Send
and Receive Messages
through Schemata

B1

Culture A

not reflect accurately the reality that is Ethiopian culture. Furthermore, if you
attempt to communicate with Ethiopian counterparts for business purposes,
you probably will be communicating with your mental projection of Ethiopian
culture. Exhibit 1.4 describes this process.
When you communicate, you are sending messages to B1, the schema of
Ethiopian culture. When you receive messages from a member of that culture, they
are understood by you after being filtered through your B1.
38 Chapter 1

1
EXHIBIT 1.5 B
Schema Modified
and Coming Closer
B1
to Actual Culture

1
B

Culture A Culture B

In Focus

If you know Ethiopia is a country in Africa, you may make certain additions to your schema, which may or may not be
accurate. Does it help to know that over 100 different ethnic groups live in this country?
Here is some more information. The dominant culture is Amharic, which is also the official language. Ethiopia is one
of the oldest countries in the world. The capital is Addis Ababa. Businessmen typically wear a white robe (shamma)
over their shirts and trousers and may stand closer to people in conversation than Europeans do. Bureaucracy flour-
ishes; a strong chief or leader dominates business organizations. Families are strong units, and family members may
be business partners. People tend to make distinctions based on social and economic position. Business encounters
are formal; hospitality is valued highly. Businesspeople are not afraid to stand up for their individual rights, but at the
same time they show sensitivity to the rights of others. They have the ability to endure adversity with patience. Age is
respected.
About 45 percent of the people are Muslim, and 40 percent are Ethiopian Orthodox Christians. Formerly, the high-
est levels of society were mostly Christian, but since the political upheavals in Ethiopia in past decades, Muslims as
well as Christians occupy all levels. Women often own small businesses, and unlike some other Muslim cultures, the
Muslim women of Ethiopia do not wear a veil or chador. Ethiopians are Semitic people (like Jews and Arabs). Coffee
is a major export product.
 Culture and Communication 39

The more you learn about Ethiopia, the more you can revise and adjust your
mental projection of B1, and the closer it can come to the reality (B) that is
Ethiopian culture. Exhibit 1.5 shows this process as a result of induction, or the ac-
commodation of new data that alter the schema.
The more you understand about another culture, the closer your schema will be
to the reality that is the other culture and the better your communication will be.
You will have fewer misunderstandings of the kind that arise when messages are
assigned different meanings and different categories.

Summary This chapter began with two reasons why intercultural business communication
matters to organizations: Communicators can make sense of their interactions with
people of other cultures, and understand why people think and behave the way they
do, and then they can prevent miscommunication more often.
Next, the chapter considered how we respond to foreign and unfamiliar cul-
tures: hostility, curiosity, denial, and cooperation.
Culture is defined as coherent, learned, and shared, using an agreed set of sym-
bols to rank what is important, furnish attitudes, and dictate behavior for a society.
Onstage culture is observable behavior; backstage culture is the deep values and
meanings that give rise to behavior. Transactional culture is temporary, and is co-
created between people from different cultures.
Culture shock and reverse culture shock are normal reactions to the many ad-
justments people must make when they find themselves in an unfamiliar culture.
Self-knowledge is critical for understanding people in other cultures and com-
municating successfully with them. Assessment of one’s Cultural Intelligence, or
CQ, is a good place for self-knowledge to start; its components are cognition, mo-
tivation, and behavior.
Cultures appear to change very little on a deep level, although popular culture
and popular taste do change.
The study of communication and culture, which began in the United States, is
based on the two main social science research paradigms: positivist and interpretivist.
Studies can focus on groups or individuals, and can be cross-cultural or intercultural.
Finally, the chapter looked at perception and communication, and a schemata
model for intercultural communication.
Learning about culture will be discussed in more detail throughout the book.
The most obvious issue for communication across cultures, of course, is language,
and that is the subject of the next chapter.

Notes 1. Peter Diekmeyer, “Walpert Greets Yuletide with a Bang,” Montreal Gazette,
December 16, 2002, B1; Canadian Press News Wire, Canadian Business and
Current Affairs, 2002. Micromedia Limited, D, December 29, 2002; Catherine
Yronwode, http://www.luckymojo.com/swastika.html.
2. D. Singer, “The Voyages of Ibn Battuta,” Seattle Pacific University Response,
26:2, 2003, p. 1, http://www.spu.edu/depts/uc/response/spring2k3/voyages .html.
40 Chapter 1

3. See Ibn Battuta, by L. P. Harvey (2008), published by I. B. Tauris. An excel-

lent source is a book by R. E. Dunn, The Adventures of Ibn Battuta: A Muslim
Traveller of the 14th Century (University of California Press, 2004).
4. Donald F. Hastings, “Lincoln Electric’s Harsh Lessons from Interna-
tional Expansion,” Harvard Business Review 77, no. 3 (May/June 1999),
pp. 163–175.
5. James L. Watson, “China’s Big Mac Attack,” Foreign Affairs, May–June 2000,
pp. 120–134, http://www.mcdonalds.com/corporate/press/financial/2003/
05132003/index.html.
6. J. H. Goring, 1909 nursery rhyme, quoted in Geert Hofstede, Cultures
and Organizations: Software of the Mind (London: McGraw-Hill, 1991),
p. 235.
7. Iris Varner, “The Theoretical Foundation for Intercultural Business
Communication,” Journal of Business Communication 37, no. 1 (2000),
pp. 39–57.
8. Geert Hofstede, Cultures and Organizations: Software of the Mind (London:
McGraw-Hill, 1991), p. 237.
9. Edward T. Hall, The Hidden Dimension (New York: Anchor Press/Doubleday,
1966).
10. Richard Mead, International Management, 2nd ed. (Malden, MA: Blackwell,
1998), p. 8.
11. Raymond Cohen, paraphrasing Tylor’s Primitive Culture. In Negotiating
across Cultures (Washington, DC: United States Institute of Peace, 1991), p. 8.
12. Hiroko Sakomura and Sue Winski, unpublished case from Transform Corpo-
ration, Tokyo, in an unpublished paper, SIETAR International Congress,
Denver, 1988.
13. Molouk Y. Ba-Isa, “Learning to Do Business the Arab Way,” www.executive-
planet.infopop.cc, posted Friday, May 23, 2003; retrieved May 26, 2003.
14. George Nishiyama, “14-Century-Old Japanese Firm’s Longevity Secret:
Sticking to Basics; Kongo Gumi Hasn’t Branched Out Too Far beyond
Building Temples since Its Founding in 578,” Los Angeles Times, Business,
Part 3, May 23, 2003, p. 6. Retrieved from Lexis-Nexis database on June 22,
2003.
15. Read more about culture shock in Colleen Ward, Stephen Bochner, and
Adrian Furnham, The Psychology of Culture Shock, 2nd ed. (New York: Rout-
ledge 2001); Elisabeth Marx, Breaking through Culture Shock (Nicholas
Brealey Intercultural, 2001); and the Culture Shock! Guides series of Graphic
Arts Center Publishing, by country.
16. Edward T. Hall, Beyond Culture (New York: Anchor Press/Doubleday,
1976), p. 116.
17. Emory S. Bogardus, Social Distance (Yellow Springs, OH: Antioch Press,
1959).
 Culture and Communication 41

18. Larry Copeland and Larry Griggs, Going International (video).

19. Christopher Earley, Soon Ang, and Joo-Seng Tan, CQ: Developing Cultural
Intelligence at Work (Stanford, CA: Stanford University Press, 2006), p. 5.
20. William B. Gudykunst, “Forward,” Intercultural and Cross-cultural Commu-
nication (Thousand Oaks, CA: Sage, 2003) p. vii.
21. Linda Beamer, “A Schemata Model for Intercultural Communication and
Case Study: The Emperor and the Envoy,” Journal of Business Communica-
tion, 32 (April 1995), pp. 141–161.
C H A P T E R T W O

The Role of Language

in Intercultural
Business
Communication
The Language Barrier and Its Consequences:
Real and Perceived
Eric Moore, the owner of a medium-sized electronics company in Denver, Colorado, and
Hiromitsu Sodomori, the manager of a small Japanese electronics company in Tokyo, met
at a trade show in Frankfurt, Germany, a few weeks ago. A mutual friend from the Nether-
lands had introduced them. Both were looking for possible international expansion, and
they decided to explore how they could benefit by working together. Moore had worked for
a large company before going out on his own. He had done business in Western Europe and
in Argentina, but had little experience in Japan, having been to Tokyo only once for a few
days to accompany his previous boss. Sodomori had worked as an expatriate in South
Korea and Taiwan for two years. In addition, he had done some negotiations with firms in
the Netherlands and France. Sodomori spoke native Japanese and good English. Moore
spoke English and some Spanish. Since the trade show, the two men have exchanged sev-
eral e-mails to continue their discussion. They have examined each other’s Web sites and
exchanged information on production and marketing goals. After several follow-up phone
calls, they have decided to meet in Denver. Both Sodomori and Moore want this meeting
to go well and wonder how to prepare for it.
Moore is a boisterous, outgoing, and informal person, whereas Sodomori, by nature, is
more quiet and reserved. Their international backgrounds have taught them that language
alone does not guarantee success, but that cultural understanding is crucial as well. Eric
Moore has been reading up on Japanese business culture. He is beginning to realize that
formality is important. He also has learned that the Japanese don’t jump into business

43
44 Chapter 2

relationships; they take their time and attempt to build a more personal relationship.
Hiromitsu Sodomori has talked to several of his friends in Japan who have more experience
in dealing with Americans. They have encouraged him to be more outgoing and less formal.
Sodomori is quite nervous, but the business opportunity looks good, and he is convinced
that cooperation between his and Mr. Moore’s businesses would benefit both sides.
Since at this stage they would like to keep any discussions private, they have opted to
not use an interpreter and try to communicate in English. When they finally meet, things
start out slowly. Both are nervous, but both also recognize that the other has prepared well.
Sometimes they have to repeat a point several times, but they are beginning to feel com-
fortable. Mr. Moore is less boisterous and refrains from calling Mr. Sodomori by his first
name. Mr. Sodomori, on the other hand, greets Mr. Moore with a handshake and just a
slight bow. He is coming out of his shell, and as they discuss the more technical aspects,
they find that they have many similar goals. By the end of the two-hour meeting they feel
comfortable with each other. They are not ready to sign an agreement—that will take more
time—but they trust each other and are beginning to see the opportunities a cooperative
venture might bring. At the end of the visit they have decided to meet again to continue
their discussion. The next step will be for Moore to visit Sodomori in Japan.
In the preceding example, the two men have made a conscious decision to try and un-
derstand the other side and keep an open mind. Both have realized that their communica-
tion needs to take into consideration the language and a knowledge of the other culture.

The Relationship between Language and Culture

In the preceding example, Mr. Moore and Mr. Sodomori speak the same language,
although this is not always easy for Mr. Sodomori. After intense discussions in
English, he gets tired. However, language is only one of the variables in their
interaction. As important as language is the willingness on both sides to under-
stand the other person and adapt to their culture. At the end of the meeting they
have developed a sense of trust and a common goal that will help them in their
future communication.
As the example shows, culture and language are intertwined and shape each
other. It is impossible to separate the two. Language is not a matter of neutral codes
and grammatical rules. Each time we select words, form sentences, and send a
message, either oral or written, we also make cultural choices. We all agree that
language helps in communicating with people from different backgrounds. How-
ever, we may be less aware that cultural literacy is necessary to understand the lan-
guage being used. If we select language without being aware of the cultural
implications, we may, at best, not communicate well and, at worst, send the wrong
message.
In our own environment we are aware of the implications of these choices. For
example, if an American says “How are you?” other Americans register the phrase
as Hello, the equivalent of GutenTag, Bonjour, or Ohio gozayimasu rather than the
literal meaning. A foreigner in the United States, knowing some English but not
familiar with the culture and usage of English, may attribute a very different mean-
ing to the phrase and interpret it much more literally.
 The Role of Language in Intercultural Business Communication 45

Mr. Sodomori, for example, may:

• Consider the phrase too personal and think that it is none of Mr. Moore’s busi-
ness how he is.
• Think that Mr. Moore literally means what he says and proceed to answer the
question.
• Consider Mr. Moore insincere because it is obvious that he is not really inter-
ested in the answer.
All languages have social questions and information questions. A social ques-
tion, even though it comes in question form, does not ask for information. It is
simply a lubricant to move the conversation forward. In American English, the
question “How are you?” is a social question. In many other countries, such as
Germany, Russia, and Poland, “How are you?” is an information question. The
speaker actually wants to get an answer to the question. In Japan, the question
“Where are you going?” is a social question. The same question is an informa-
tion question in American English. An American may feel that the Japanese
question is intrusive and may not know what to answer. However, no answer is
expected. A simple “Over there” will do. Similarly, in Korea a typical social
question when people first meet is “Did you sleep well last night? “ or “Have
you had a meal?”1 It is easy to see that someone not familiar with the conven-
tions of social and information questions may misinterpret the question and the
intended meaning.
The point is that words in themselves do not carry the meaning. The mean-
ing comes out of the context, the cultural usage. For example, a German who
has lived in the United States for many years will take on, often unknowingly,
many American behavioral patterns. She may be more outgoing and enthusias-
tic, less formal, and more optimistic. When she goes back to Germany, she
speaks German, but increasingly with an American frame of reference. At
social functions, she will introduce herself by first and last name rather than by
last name and professional title: “Ingrid Zerbe, erfreut Sie kennenzulernen”
(Ingrid Zerbe, pleased to meet you) rather than “Dr. Zerbe, erfreut Sie kennen-
zulernen.” The Germans are at a loss; they don’t know how to address her. They
could say “Frau Zerbe,” but if she has a professional title, that would not be
correct. In any case, nobody cares about her first name anyway. Ingrid Zerbe
finds that those Germans are getting stiffer all the time; with every visit they
are becoming more reserved. It is getting more difficult to establish a connec-
tion and feel comfortable.
Titah Marseto from Indonesia who has lived in the United States for several
years also feels she is losing touch with her native culture. Increasingly, when
she talks with other people from Indonesia she will be criticized for being too
direct, blunt, and rushed in her communication. To communicate effectively
with other Indonesians, she consciously has to place herself into an Indonesian
mindset. As time goes on, this adjustment is becoming more difficult. The
example illustrates that a person’s cultural frame of reference may change
over time.
46 Chapter 2

Language as a Reflection of the Environment

Language reflects the environment in which we live. We label the things around
us. For example, in the Amazon area, snow is not part of the environment; there-
fore, people in that region do not have a word for snow. It simply does not exist. In
areas where it snows occasionally, people have a word for snow, but it may be just
one word without any differentiations. Most Americans, for example, use terms
such as snow, powder, sleet, slush, blizzard, and ice. That’s the extent of most
people’s snow vocabulary. People who live in an environment where it snows most
months of the year may have a much more differentiated terminology for snow.2 If
you go to a pub in northern Germany and order wine, you may ask for “ein Glas
Wei␤wein, bitte” (a glass of white wine, please). You may specify Moselwein or
Rheinwein, but that’s it. The north of Germany is beer country, and the knowledge
of wine is much more limited. In Baden, in southwestern Germany, in contrast, a
waiter would just stare at you if you asked for a glass of white wine. Here you
would specify the type of wine, the vineyard, and the year. Wine is important in
this region, and you are expected to know about wine.
The environment influences the development of technology, products, and the
appropriate vocabulary. For example, cultures in tropical climates will not develop
heating systems and as a result will not have any of the accompanying vocabulary,
just as people in cold climates have no need for air-conditioning and its related
vocabulary.

Language as a Reflection of Values

In addition to the environment, language reflects cultural values. Hall, for exam-
ple, points out that the Navajo do not have a word for late.3 Time, he tells us, does
not play a role in Navajo life. There is a time to do everything, a natural time rather
than the artificial clock time that industrial countries use. As a result, the Navajo
do not have the differentiated vocabulary connected with time and clocks that
Americans have. Time and the passing of time are things one can’t control; there-
fore, one should not worry about wasting time and setting schedules. In Mandarin
Chinese, one word (qing) represents various hues of blue and green. What might
be called green in English is called qing, and what might be called blue in English
also is called qing. It isn’t that Chinese speakers cannot distinguish the difference
in hues; they simply use one word for a range of hues.
One of the problems in dealing with people from other cultures is that we
translate concepts from a foreign language and culture with words that fit our
priorities and view of reality. For example, businesspeople in the United States
typically are frustrated with the mañana mentality of Spanish-speaking coun-
tries: “They said tomorrow, but they did not mean it.” For Americans, tomorrow
means midnight to midnight, a very precise time period. To Mexicans, in contrast,
mañana means in the future, soon. A Mexican businessman speaking with an
American may use the word tomorrow but not be aware of, or not intend, the pre-
cise meaning of the word. This vague terminology is not precise enough for the
American emphasis on efficiency. The difficulties over the word mañana are at
 The Role of Language in Intercultural Business Communication 47

least as much an American problem as a Mexican problem. Dictionaries do not

help because they typically pretend that there are exact equivalents that have the
same meanings. To communicate concepts effectively, cultural knowledge is as
important as linguistic knowledge.
The Chinese, for example, do not have a word for communication as in the term
business communication. They use letter exchange or transportation traffic but not
communication. The Chinese also do not have a concept of privacy; as a result,
there is no corresponding word in the Chinese language. Typically, privacy is
translated as reclusiveness, which brings up very different connotations in English
than the word privacy. The word privacy has a positive connotation for people in
the United States. They think of the privacy of their homes, the right to privacy,
and the right to private property. The word reclusiveness, in contrast, indicates that
a person withdraws from society, is a loner, or does not fit in. In the U.S. context,
a reclusive person is considered somewhat strange. In China, a reclusive person is
viewed much more negatively, and privacy in the American sense is not an ac-
cepted value. Equating privacy with reclusiveness illustrates an uderlying cultral
priority of what is and is not acceptable.

The Meaning of Words

Sometimes different cultures use identical words that have rather different mean-
ings. The results can be humorous, annoying, or costly, depending on the circum-
stances. Let us look at several examples.
An American university and its French partner discussed the possibilities of
exchanges for students, professors, and administrators. Both sides agreed that it
would be a good idea. The French negotiator spoke fairly good English—at first
glance, very good English—while the American spoke good French. In the dis-
cussion, they used both French and English. In both languages they used the iden-
tical word—administration—when they talked about exchanges between the
administrations of the two institutions. The surprise came later. For the American,
administration in the university context meant department chair, dean, or provost.
For the French, administration meant upper-level clerical staff. What the Ameri-
can considered to be an administrator, the French considered faculty. In New
Zealand, Australia, Great Britain, and Argentina, the word administration refers
to an organizational unit, such as Faculty of Business, and teaching personnel
are staff.
The word manager is used worldwide, but it has different levels of importance
and meaning in different cultures. The same is true for the title director. Many
Japanese, for example, have the title director on their business cards. In the Amer-
ican context, a director is a person of some importance and power; in Japan, that
title may not carry the same level of authority. It may take some time to determine
what the meaning of titles is and where a person stands in the hierarchy. The term
director could be a loan word from English to translate the position for use on a
business card; the word is the same, but the meaning may be slightly different. The
term also could reflect cross-cultural differences in organizational structure. The
word director may be the closest translation of the job-level title, which describes
48 Chapter 2

a job that does not exist in the U.S. corporate structure. Likewise, the words office
worker and staff often are used for the general administrative workers in a Japa-
nese work group, who tend to have less defined job categories than do their U.S.
equivalents. An understanding of the specific title would require a more detailed
explanation of the job and its fit in the organizational structure.
The meaning of the word leader can create problems as well, as some American
researchers found out. In a study on different leadership styles, they collected data
from Saudi Arabia and Jordan. When they analyzed the findings, they were puzzled
because the results made no sense. Here is what happened. They had asked Arabic-
speaking MBA students from Saudi Arabia and Jordan to translate the survey. The
translators had used the word mot for leader. However, mot is never used in the con-
text of a business organization; the word is used only in reference to military and
political leaders. Since those people are seen as more dictatorial and autocratic,
respondents had no reference point for a leader as a facilitator or mentor.
Here is another example of words that look like they should translate as the
same thing, but actually have different meanings. In the United States, documents
often are notarized. This is not a complex process. One simply goes to a notary
public and gets the stamp and signature. Sometimes one pays a fee; sometimes the
service is free. The German term, notarielle Beglaubigung, often translated as
notarized, means something quite different. In this case, one would go to a Notar,
a lawyer. The Notar would prepare the document or, at a minimum, sign the doc-
ument. This service is much more expensive. The meaning of the U.S. concept
notarized is better reflected in the German term Beglaubigung, something any
official person can do. The confusing part is the word notarized in the American
expression. A notary public is not a Notar. The same confusion arises in Mexico,
where a notario is a lawyer with special privileges to perform certain functions that
require special qualifications.
Both the French and the Americans use the word force majeure, but the phrase
carries very different meanings. Literally, the term means superior or irresistible
force. In U.S. legal language, it refers generally to forces of nature or possibly war.
The implications are that the terms of a contract may be changed because the risk
was not allocated in either the expressed or the implied terms of the contract.
In European law, the term has a broader meaning: It includes the changes in
economic conditions or other circumstances that were not anticipated when the
contract was drawn up. The implication is that when Americans make agreements
with Europeans, discuss unforeseen circumstances, and use the term force ma-
jeure, they need to clarify what they mean and spell out what that term covers.
The preceding examples of language usage illustrate that businesspeople need
to examine the context of what is being said and always be aware of the cultural
orientation and priorities of their business partners.

Changes in Language
As anyone who has been abroad for any length of time can attest, language lives;
it changes over time. Words and phrases that are used commonly at one time may
be discontinued or their meaning may change over time. For example, the word
 The Role of Language in Intercultural Business Communication 49

gay means happy, lighthearted. In recent decades, however, the word has taken on
the meaning homosexual. As a result, English speakers in countries such as
New Zealand, Canada, Australia, the United Kingdom, and the United States don’t
use the original meaning anymore, and young speakers of English may not even
be familiar with the traditional meaning. In other cases, words may take on addi-
tional meanings. One must understand the context to understand the meaning. An
example is the word hardware, which is used to refer to the tools and materials
employed in repairing and building houses. Today, the word also refers to com-
puters and components that can be added to a computer, such as a printer or an
extra drive.
Foreigners and U.S. citizens who have lived outside the United States for some
time may not be familiar with subtle changes in language usage. Twenty years
ago, words such as businessman, chairman, salesman, airline stewardess, and
fireman were used regularly. Today, with more women in the workforce and with
growing awareness of the way gender and power can be linked to communicate
value, gender-neutral terms such as businesspeople, chairperson or chair, sales
clerk, flight attendant, and firefighter are common. The old terminology is seen
as too restrictive.
Countries such as France and Iceland try to keep their language pure. The
French have the Académie Française to police the language and ensure that busi-
nesses use pure French. But even in France the language changes. The officials
may frown on Franglais, but people in France eat a sandwich, go on a trip for le
weekend, and go on le jogging, all pronounced in the French manner with the ac-
cent on the last syllable. To use English is “chic,” and somehow the English terms
seem to be more precise and descriptive. French Canadians make the Académie
Française really nervous when they use char for car and many other English words
in their French. French Canadians do not feel compelled to follow the rules of the
Académie Française.
The example of Canadian French illustrates that a language, if spoken in
different parts of the globe, ultimately will develop differently. The Académie
Francaise may insist on certain rules, but other French-speaking groups may make
their own rules and consider their French just as correct. The same is true for the
development of English. What is standard and correct English? Former British
colonies such as India and Nigeria increasingly insist that their English is just as
correct as Oxford English. The result is the emergence of different “Englishes”
used in different parts of the world. Much attention recently has focused on
“Singlish”—the English of Singapore that incorporates Malay and the Hokkien
dialect of Chinese as well as English words, and follows a syntax like that of other
“pidgen” Englishes. The following are three examples of Singlish:
• Eh, this road so narrow, how you going to tombalik your big fat Mare-
seedeese? You going to do 100-point turn or what? Sekali tombalik into the
lang-kau your father kill you then you know! (Oh, this road is so narrow, how
are you going to turn around your big fat Mercedes? Are you going to do a
100-point turn, or what? Wait until you turn it into the roadside ditch. Your fa-
ther will be furious!)
50 Chapter 2

• Eh, Katong sopping sehnta got the “Sah-Leh” you know. Some up to hap-pride
ah! (Hey, the Katong Shopping Center has a sale. Some [items] are up to half-
price off!)
• Aiyah, you want to chit in your exam tomolloh, har? You tink you can lite the
ansir on the table? Cher catch you, lppl (lam pa pak lan) man! (Oh no, you want
to cheat on your exam tomorrow? You think you can write the answer on the
desk? Teacher will catch you, and it [your plan] will backfire!)4
The government of Singapore felt that local television sitcoms were making
Singlish too popular with young people at the expense of correct English. Televi-
sion came under pressure to make the main characters in one show take “proper
English” lessons. The rationale was that Singlish was bad for business. However,
Singlish remains popular with young people.
You don’t have to live in former British colonies in Asia or Africa to experience
different Englishes. Business vocabulary in Great Britain and the United States can
cause communication problems as well. For example, terminology for automobile
parts is quite different. A hood is a bonnet in British English, and a trunk is a boot. In
British English, the word corn refers to wheat, whereas in American English it refers
to maize. Many of the differences have grown out of different geographic conditions.5
Many countries adopt English terms specifically in business and related areas.
Some words simply are taken over without changes. For example, Germans fre-
quently use the word shop instead of the German word Geschäft or Laden, ticket in-
stead of Fahrkarte, and Standard instead of norm. They use the words computer and
software, but they do not use the word calculator. A calculator is a Taschenrechner.
In an effort to make the German railway company more modern, the administration
introduced a whole new terminology. It talks about meeting points (Treffpunkt) in
train stations, bahncard (a special ticket for discounts), and service center
(Auskunft), yet most older people have no idea what those terms mean. One of the
difficulties is that an outsider cannot be sure whether they will use German or Amer-
ican terminology. An increasing number of Germans are concerned about the use of
English in everyday German and advocate the use of German whenever possible.
The newly formed Verein Deutsche Sprache, for example, is asking to replace En-
glish computer terminology with German terms, and there have been some changes.
For example, a few years ago Germans would use “download material” and “shut
down the computer.” Today they say “runterladen” and “runterfahren.”
In some cases, people use foreign words but adapt them to their own language
both in grammatical usage and in pronunciation. For example, the Japanese have
changed the word salaryman to sarariman, homerun to homurunu, headhunter to
heddo hantaa, and the German word Arbeit to arubaito, meaning a part-time job.
After some time, the words are considered Japanese because they have been inte-
grated into the Japanese language and culture. In German, for example, the word
stress has been integrated. Thirty years ago, nobody used the word. Today, every-
one uses it. The pronunciation is German, and when it is used as a verb, it is given
a German grammatical form. A German says “Ich bin gestre␤t” (I am stressed).
The word has become part of the language.
 The Role of Language in Intercultural Business Communication 51

The fact that English is used widely in business has convinced some people that
English will become THE international language, that there will be a convergence
into English. Americans in particular are excited about this because they could
imagine the day when they could forget about learning or speaking a foreign lan-
guage. However, reality is more complex. While English is widely spoken in in-
ternational business, there is also a divergence of English into Englishes. In a
couple of hundred years, English may fragment into several languages that are
very different, a development similar to the divergence of Latin into French,
Spanish, Portuguese, and Italian.

Acronyms
Acronyms pose special problems because they are based on a particular language.
The same institution may have different acronyms in different languages. For
example, MITI, the Japanese Ministry of International Trade and Investment, is
referred to as MITI by Germans but spelled out as Ministerium für Industrie und
Aussenhandel. UN stands for the United Nations; the Germans transcribe UN as Vere-
inte Nationen. The World Trade Organization (WTO) is Welthandelsorganisation in
German; another example where the acronym has no relation to the German word.

Implications of the Language Barrier

As the preceding examples show, communication across cultures and languages is
difficult and full of hurdles and pitfalls. Even if two people from different cultures
can speak a common language, they may misinterpret the cultural signals. The result
is confusion and misunderstanding. Many people have difficulty identifying the root
of the problem. For example, American students often complain that they can’t un-
derstand their foreign professors. In some cases, the professors actually may have a
poor command of the English language; however, in most cases the problem is not
the language but different intonation patterns and different cultural signals. English-
speaking students listen to their instructors with certain expectations. For example,
if the instructor’s voice drops to a low pitch, the students take that as a signal of a
rhetorical topic boundary—“I’m finished with this idea”—whereas the instructor
may mean no such thing. Students adjust their interpretation of the lecture accord-
ing to those intonation signals, thereby misconstruing the instructor’s intent. A pro-
fessor who comes from a culture in which the professor is almighty and is never
challenged (Korea or India, for example) may send signals to that effect to his stu-
dents. If the students are not aware of the cultural issues, in all likelihood they will
identify the problem as a language problem rather than a cultural problem.
In this context, the phrase “I don’t understand you” can mean any of the following:
• I don’t understand the words you use.
• My interpretation of what you say raises a flag and makes me wonder if this is
actually what you want to say.
• In my perception, your words and nonverbal behavior do not complement each
other, and I am puzzled.
52 Chapter 2

Selection of the Right Language

In other parts of the book, we discuss the importance of cultural literacy in more
detail. Here, however, we’ll concentrate on linguistic literacy. The United States
may be the only country in the world where businesspeople involved in interna-
tional business do not unanimously advocate fluency in a foreign language. In
other countries of the world, it is accepted that one has to learn at least one for-
eign language if one wants to engage in international business. The arguments
Americans use are legion. The following are examples that are used frequently.
• Everyone speaks English.
• You never know where you will wind up, and so you may be learning the
wrong language; therefore, it is better to wait until you know what language
you will need.
• A good manager is a good manager everywhere (meaning that language is not
important).
• I have been successful without learning a foreign language (implying that
learning a language is a waste of time).
• You can always hire a translator.
• You probably will not be good enough to negotiate in the foreign language any-
way; therefore, don’t waste your time.
Misguided research tends to exacerbate the problem. A recent survey, for
example, determined that Canadian and U.S. managers of international firms, by
an overwhelming margin, did not think that a foreign language is very important
in doing business abroad. The conclusion of the study was that language indeed
is not that crucial. What the survey did not address was the problem with the
approach. Monolingual managers, and the subjects in the survey were monolin-
gual, are probably less likely to advocate fluency in a foreign language than are
bi- or trilingual managers. The survey also did not include managers whose native
language was not English. In addition, the survey did not examine the implica-
tions of monolinguism in a competitive environment.
Another point in the argument that the study of foreign languages may not be
necessary in the future is the fact that many European and Asian universities offer
an increasing number of courses in English. However, all their students speak at
least one other language.

Linguistic Considerations
If you have decided to study a foreign language, the next question is, “Which
one?” In light of the number of languages around the world, this decision is not
easy and will be influenced by many factors. Experts don’t agree on exactly how
many languages are spoken; the figure is somewhere between 3,000 and 6,000.
Estimates are that within the next 100 years half of those languages will disappear,
and with them the diversity of cultures. Since no single language can express all
 The Role of Language in Intercultural Business Communication 53

forms of human thought and ideas, this reduction would make all of humanity
poorer.6 One problem is the definition of what constitutes a language. An addi-
tional factor is the distinction between a language and a dialect.
At what point does a person speak a language different from ours, and at what
point does that person speak a dialect, or a variation of our language? To a Ger-
man from the north who speaks Plattdeutsch, the dialects called Swabian and
Bavarian in the south are in many ways unintelligible and therefore are foreign
languages. Officially, however, all three are dialects of German. The Japanese,
even though they like to tell us they are a homogeneous culture, have dialects. Peo-
ple from Honshu speak differently than do people from Kyushu. The political, eco-
nomic, and entertainment centers of Japan are in Tokyo, which is on Honshu. As
a result, the speech of people from Honshu carries more clout and people from
Honshu tend to look down on the dialect of people from Kyushu. Even within Hon-
shu there are different dialects. A professor from Tokyo commented that one of his
colleagues who came from Osaka simply did not fit into the Tokyo culture very
well because he continued to speak his Osaka dialect.
India is the prime example of linguistic diversity with about 600 languages, of
which 14 are major languages that are spoken by about 90 percent of the popula-
tion. This diversity causes problems both domestically and internationally. The
14 languages belong to two distinct language families. Languages in the north are
Indo-European, and those in the south are Dravidian. To facilitate communication
within the country, India recognizes three official languages: Hindi, English, and
the local language (for local affairs). Of course, the number of people who actu-
ally speak English fluently is small and restricted to the educated upper middle
class. Among that group, however, many people speak English even at home. They
use the local language for communication with servants. Indians who live abroad
find that in most cases the common language among Indians is English. The wide-
spread use of English in India has been a major reason why American companies
have located call centers in India. The companies have access to English speakers
who are well educated. By Indian standards, the employees in call centers earn
good money, but their salaries are much lower than they would be for American
employees. Even so, companies have spent a lot of money to train call center em-
ployees to be able to use American vocabulary and intonation, and adapt to the cul-
tural dynamics of American telephone communication. Some call centers have
gone so far as to have maps of American cities with current weather conditions on
the walls so employees can appear knowledgeable and credible when talking to
customers in the United States. The managers of these centers have realized that a
good accent alone is not sufficient, but that callers want to have the feeling they
are talking to someone close by who is familiar with their environment.
China, like India, also has a number of different languages, the two dominant
ones being Mandarin and Cantonese. Mandarin is spoken by about two-thirds of the
population, and the political power center, Beijing, is Mandarin-speaking. The south
and Hong Kong, which are more open to outside influences, speak Cantonese, al-
though Mandarin is the official language everywhere. Mandarin and Cantonese
speakers do not understand each other when they communicate orally, but they have
54 Chapter 2

no problems when communicating in writing. A businessperson learning Chinese

should be aware of the implications of choosing Mandarin or Cantonese. People who
speak Mandarin tend to look down on people who speak Cantonese, and vice versa.
The Cantonese think northerners are barbarians, and northerners feel superior to
Cantonese speakers. This is a clear sign of regional and linguistic snobbery. A quick
search on the Internet indicates that the number of Mandarin language schools in
Hong Kong has mushroomed during the past few years; however, Cantonese native
speakers speak Mandarin with a strong accent, and the Chinese Mandarin speakers
don’t usually speak Cantonese at all, so the old snobberies persist.

Business Considerations
After weighing linguistic aspects, you also must consider business aspects in deciding
which language to learn. Your decision will depend partly on whether you are the
buyer or the seller of a product. Many businesspeople argue that one needs to speak
the language of the customer. If you want to sell a product, it is in your interest to adapt
and learn. However, other economic considerations also will influence your decision.
For example, if you are the only manufacturer of a product that is in high demand, you
may be able to sell and be very successful without speaking the language of your cus-
tomer, at least in the short run. However, if you look ahead, you may find that even in
these favorable circumstances it is in your long-term interest to adapt to the customer.
After World War II, U.S. businesses dominated the international markets. The
production facilities of most other industrial countries lay in ruins. As a result,
products made in the United States were in high demand. In the short run, this was
very beneficial for American firms. Unfortunately, Americans did not look at the
long term. They acted as if that situation would continue forever and as if their
products were in demand not because they were the only products around but
because they were somehow superior. The United States has paid dearly for its
unwillingness to adapt and for the shortsightedness and arrogance of its business-
people. For example, Caterpillar Tractor did not consider Komatsu a serious com-
petitor until after Komatsu had established itself in international markets.
If businesses in the United States want to expand their international markets,
their people must learn the languages used in the potential markets. The Japanese
are learning English, the Koreans are learning English, yet until recently very few
native English speakers studied Korean or Japanese. The typical argument was that
those languages are too difficult to master and are spoken only in one country. The
Japanese have contributed to that sentiment by insisting that their language is very
special and that outsiders can never penetrate and master it. In reality, Japanese is
not impossible to learn if people are determined. The same is true for Korean and
Chinese. Today an increasing number of schools are offering Japanese, Korean,
and Chinese. For example, today 13 high schools in Chicago have Chinese
language programs. Fifteen years ago, Chinese was not offered.
The language you choose will depend on your goals and purposes. If your
native language is not English, you may want to study it since English is the lingua
franca of international business. In fact, in many countries English is the most fre-
quently taught foreign language; often it is required in school. Switzerland has
 The Role of Language in Intercultural Business Communication 55

three official languages: German, French, and Italian. In the past, schools taught
all three and every student was required to learn them. Today, many Swiss learn
only one of the other Swiss languages and take English as their first or second
foreign language. Chinese university students under present policy must pass a
College English Test, level 4 (CET-4) in order to get a bachelor degree, regardless
of their performance in other courses. In many cities, like Shanghai, the manda-
tory test has created a whole new line of business. Students frequently hire some-
one to take the exam for them. The practice is illegal, but it is tempting if
graduation depends on passing the test.7
If you live in an English-speaking country and come from a family that con-
siders its ethnic roots very important, you may study that language and decide to
do business with that country. For example, if your family is from Iran, you may
decide to study Farsi and do business with Iran. You may find that culturally you
have some background already and are therefore at an advantage. If it is your life’s
dream to do business in Brazil, you should study Portuguese and then look for a
job in Brazil or with a firm that does business with Brazil.
If you don’t have a specific reason to study a particular language, you might
want to decide on the basis of political and economic importance in the world, and
the importance of the language in business relations with your country. A number
of people might argue that if your native language is English, you should choose
German or Japanese because those two countries are very strong economically.
Others would add Spanish (particularly because of the North American Free Trade
Agreement), French, and Chinese. Others might argue that Russian is a good
choice, or Arabic because of the oil interests. The point is that you need to think
of your goals and then choose the appropriate language. There is no right lan-
guage, but there is no wrong language if you have good reasons.
What if you study French and then are sent to Japan? This is a realistic possi-
bility. Many U.S. companies still argue that they cannot send someone to a coun-
try just because that person is familiar with the culture and language of that
country. One major multinational corporation (MNC) actually insisted that busi-
ness knowledge was the overriding factor in selecting employees for assignments
abroad. Language and cultural knowledge were not considered. It is interesting to
note that this company has had major problems abroad over the last decade and is
facing increasing international competition. It seems strange to think that linguis-
tic and cultural ability are not considered aspects of a business decision.
If you have mastered one foreign language, the second foreign language is eas-
ier. Therefore, even if you have the “wrong” language, you may find that it takes
less time to gain facility in the second. In many cases, foreign businesspeople react
negatively to the fact that an American speaks no foreign language rather than the
wrong language. If the Japanese find out you only know a few words in Japanese
but are fluent in English, Spanish, and French, they may be less critical. Although
ideally you would speak Japanese, at least you speak other languages; you have
worked at languages and made the effort. The sentence “I’m sorry, I do not speak
Japanese, but I do speak French and Spanish” can work very well to show that you
are not the typical monolingual American.
56 Chapter 2

Political Considerations
If you already work for a firm, your decision about which language to study will
be influenced by where your company does business. The political environment of
international locations also will play a role. If you will be involved with the gov-
ernment to a large extent and if that communication must be in the native lan-
guage, you may find it necessary to become at least functional in that language,
meaning you can communicate both orally and in writing although you may not
have mastered the grammar and fine points of the language. The private sector may
be more forgiving than the public sector when it comes to speaking the language.
Being able to speak the language also carries symbolic value. If you do business
with a firm in Quebec, you may get through with English, but your linguistic in-
sensitivity could have serious negative consequences.

The Appropriate Level of Fluency

Ideally, you should speak several languages fluently; that is, like the natives of the
host country, you speak, write, understand, and think in the foreign language.
That’s the ideal, but most people fall short of that goal. We use all sorts of phrases
to describe levels of fluency. Typical labels are native, near-native, fluent, func-
tional, and conversational. The labels are not very precise, and many speakers
have a tendency to overstate their language proficiency. A Midwestern law firm in
the United States claims that all of its partners are “fluent” in at least two foreign
languages. In light of the typical American attitude toward studying foreign lan-
guages, one may wonder what definition of fluency the firm uses. Frequently,
employees appear to be proficient in speaking a foreign language; however, that
appearance may be deceptive. An employee may have mastered the vocabulary in
a rather narrow area of business, but outside of that area his or her language ability
may be very limited. The employee is said to have mastered the foreign language
for special purposes, as the following experience illustrates.

In Focus

One of the authors purchased some lace in a lace shop in the city of Antwerp. The shop attendant, a woman of about
60, could communicate without any difficulties in English. She appeared to have a large vocabulary when explaining
about the different levels and quality and the origin of the lace. Her accent was excellent, and she was very easy to
understand. It was only when the conversation went away from lace to other topics that it became apparent that her
communication abilities in English were limited. She was fast to point out that she could talk about lace but very little
else. She knew that she was good at selling lace but did not have the linguistic or cultural background to discuss other
issues in English. She was very effective in what she did; she had the personality to deal with people from many dif-
ferent backgrounds in a very limited scope. She is a very good example of the intercultural and language competen-
cies required for employees at lower levels. These people must have concrete knowledge in their area and be able to
communicate that expertise to people from other cultural backgrounds.
 The Role of Language in Intercultural Business Communication 57

Although linguistic fluency is undoubtedly important and a great advantage in

doing business with people from other cultures, it is not the only criterion. Equally
important, as was pointed out previously, is cultural fluency. A person who speaks
some Spanish but is knowledgeable about the culture of Mexico will be more suc-
cessful in doing business in Mexico than will a person who speaks Spanish flu-
ently but knows little about Mexican culture. Cultural learning must accompany
language learning. Some argue that by learning a foreign language one automati-
cally is exposed to the culture. That is not necessarily true. All too many language
courses in the United States, Japan, Thailand, Russia, and many other countries are
taught by teachers who have never been to the country or were there only for a
short period, possibly quite some time ago. Furthermore, the emphasis in many
language classes is on mastering grammar and spelling rather than on under-
standing the underlying culture. As a result, students studying the Japanese
language may learn very little about Japan and the Japanese.
If you plan to live in a foreign country for an extended period, your need to
speak the language is greater than it is if you will be there for just a few days. If
you want to make that country a major center for your foreign manufacturing, your
linguistic needs are greater than they will be if you want to export a product that
is in high demand (also see Chapter 10). The need for, and level of, fluency also
are connected to the adaptation phase of culture shock (see Chapter 1). Language
facility will help with the adjustment process.
If you want to understand why people act the way they do, if you want to get a
feel for their way of thinking in order to be better at negotiating, you need a higher
level of fluency than you would have if you always use an interpreter. If you rely
on an interpreter, however, you should be aware of the limitations you are impos-
ing on your business opportunities.
For most people, it is easier to comprehend than to speak a foreign language.
The following lists a few possible reasons for this phenomenon:
• People are intimidated; therefore, they do not try.
• People are worried about using the wrong verb forms and tenses.
• People may be trying to translate a sentence from their own language word for
word into the foreign language and realize that this process is not very effec-
tive. As a result, they get discouraged.
• People think too long about what they want to say, and so they don’t participate
in the conversation. By the time they have formulated the words they wish to
use, the conversation has moved on.
• People are worried about being judged negatively and about losing face.
Our level of comprehension is influenced by the speed with which the speaker
goes through points, by the pronunciation, by the pauses in the conversation, and
by colloquialisms and idioms. Speech patterns are affected by a variety of factors,
among them ethnic background, geographic differences, and gender. For example,
recent research studies have pointed out that men and women have very different
speech patterns that greatly influence the perception of communication and the
success of communication. Men tend to interrupt a speaker more frequently than
58 Chapter 2

women do. Men are more direct, whereas women are more indirect and ambigu-
ous in what they say.8 If people who are native speakers of the same language have
different communication styles that are based on different communication princi-
ples, we can understand that the problems are compounded when the speakers
come from different cultures.
Perceptions of fluency also are influenced by nonverbal communication. Non-
verbal communication plays a major role in all countries; however, the nonverbal is
more pronounced in high-context cultures than in low-context cultures. If we are
from a low-context background, we may not be consciously aware of the nonverbal
and think that the meaning comes out of the spoken word. How much the nonver-
bal influences our comprehension, specifically if we speak in a foreign language,
becomes obvious when we communicate in a foreign language on the telephone.9
The ring of the telephone in a foreign country can strike terror in the hearts of even
courageous people. Even people who are fairly fluent may have problems on the
telephone. All of a sudden they are speaking in isolation without nonverbal clues
and nonverbal feedback. For example, they cannot see a facial expression signaling
approval or doubt. The nonverbal aspects definitely help us in the comprehension
process (also see Chapter 6).

The Company Language

Choosing a Company Language
As companies expand their international dealings, the number of languages their
employees have to deal with increases. A domestic Korean company does not have
to worry about different languages, but as the company expands, the picture
changes. When the firm establishes subsidiaries in Thailand and Taiwan, the com-
pany must deal in three linguistic markets: Korean, Mandarin, and Thai. In which
language should employees communicate with each other? The answer is influ-
enced to some extent by staffing patterns (for a more detailed discussion of the in-
fluence of staffing on communication, refer to Chapter 11). If the Korean firm
uses ethnocentric staffing, filling all managerial positions with Korean person-
nel in all three locations, all communications with headquarters and among the
managers from the three subsidiaries can be in Korean. In ethnocentric staffing,
all managers in all subsidiaries are from the home country. In the preceding sce-
nario, the interface between the language of the home country and those of the host
countries occurs somewhere in the subsidiaries. The Korean managers either must
learn the local language or depend on translators to communicate with the local
workforce.
Today, ethnocentric staffing is considered insensitive, exploitative, and out-
dated. Many firms therefore are using polycentric staffing patterns. In polycentric
staffing, all managers in all subsidiaries come from the respective subsidiary coun-
try. That means that the Korean firm will hire only Taiwanese people for its sub-
sidiary in Taiwan, and only Thais for its subsidiary in Thailand. Polycentric staffing
is based on the argument that local managers are better able to communicate in the
 The Role of Language in Intercultural Business Communication 59

specific environment. The linguistic interface—the contact between the language

of headquarters and the language of the subsidiary—occurs in the communication
between headquarters and the subsidiary. Therefore, polycentric staffing makes the
communication between subsidiaries more difficult. In which language, for exam-
ple, do the Thais and the Taiwanese communicate with each other? The communi-
cation problem is even more pronounced in geocentric staffing. In geocentric
staffing, the best person is chosen for a job regardless of linguistic, cultural, and
national background. In the previous scenario, the company may have Taiwanese,
Thais, and Koreans working at headquarters in Korea. Geocentric staffing brings
people from diverse linguistic and cultural backgrounds into the same office where
they must work side by side.
In the past few years, companies have started to employ an additional staffing
pattern: the roving assignment. Under this staffing pattern, employees are sent
abroad on an as-needed basis. For example, an information systems specialist may
be sent to South Africa for three weeks to repair a system. He may then go to Ko-
rea for five months to install new systems. Then he may go back to headquarters
for several months. Typically, these roving employees have a technical specializa-
tion. While on assignment abroad, they frequently have limited contact with local
employees. They are there to solve a particular problem and will be gone within a
short time period. Exhibit 2.1 summarizes the characteristics of the various
staffing patterns.
As a result of geographic expansion and changes in staffing, more and more
companies have designated an official company language. That means that all
communication in a company will be conducted in the company language. That
sounds easy enough; in practice, however, it is somewhat more complex. A firm
that is headquartered in Japan and does business in the United States, France, Ger-
many, Holland, Saudi Arabia, Mexico, Brazil, South Africa, and Nigeria may de-
cide that the company language is Japanese. It is unlikely that all the employees in
the various subsidiaries speak Japanese. Speaking Japanese could hardly be made
a condition of employment. In this case, the company language refers to commu-
nication among managers from a certain level up. In the case of Japanese, given
how few non-Japanese people actually speak Japanese, the firm would need a
good number of Japanese managers at each subsidiary who would communicate
with headquarters.
The firm does not have to choose the language of the home country where
headquarters are located for its company language. It could decide that the lan-
guage of the home country is not spoken by many people around the globe and

EXHIBIT 2.1 Staffing

Headquarters Managers Subsidiary Managers

Ethnocentric Staffing Home country Home country
Polycentric Staffing Home country Host country
Geocentric staffing Best person regardless of country Best person regardless of country
60 Chapter 2

therefore a more widely spoken language is a better choice. For example, Philips,
a Dutch firm, has chosen English as its company language. Komatsu from Japan
has set the goal that all employees, even in the Japanese home office, will com-
municate in English. The firm provides the appropriate language lessons. Sam-
sung from Korea also has started obligatory English language lessons for all its
employees. This clearly represents a recognition of the importance of English in
international business. A typical example is the language of aviation. Pilots and
flight controllers around the world are expected to communicate in English. For
years, French pilots resisted the use of English in French airspace, but then Air
France ordered all its pilots to use only English when talking to air-traffic con-
trollers at Charles de Gaulle. It seems that safety considerations favor the change
from French to English.
In his book, Outliers: The Story of Success, Malcolm Gladwell shows that a for-
eign language, in this case English, can overcome cultural restrictions of people’s
native languages. He documents how the Korean language through its emphasis
on hierarchy and obedience contributed to the crash of an airplane. In Korean cul-
ture, the pilot is the unquestioned ruler of the airplane, and anyone else in the cock-
pit is expected to follow his orders. This hierarchy is clearly expressed in the
language and limits the copilot in questioning decisions made by the pilot. In the
example, the copilot and the flight engineer were concerned, but they felt they
could not question the authority and ability of the pilot. As a result, many people
died. After a long investigation, Korean Air decided to mandate the use of English
in all cockpit communication. They were convinced that English would level the
playing field because it does not have the linguistic emphasis on hierarchy that Ko-
rean does. Therefore, it was hoped that the copilot and flight engineer would feel
more comfortable questioning the pilot’s decisions.10
Business English as a lingua franca (BELF) has been characterized as operat-
ing within a domain that provides a specific context for communication, such as
in the earlier example with the airline industry. Charles identifies the specific con-
text as “the globalized business community. . . [which] is thus the sociopragmatic
backdrop” of BELF.11 In other words, the globalized business environment is de-
scribed as very similar to a culture. Common practices exist for members of this
global business culture. Corporate organizational hierarchies, roles of speakers
and writers, and corporate cultures are some of the elements in the global business
sociopragmatic context that affect communication. Communicators in global busi-
nesses share expectations about communication protocols for e-mail messages,
faxes, memos, and meetings. In the commonly experienced environment of glob-
alized business, differences in employees’ cultures and languages are no longer
emphasized, but are subsumed by the corporate language and culture. BELF is of-
ten the language of organizations with no native speakers of English, and operates
among users who negotiate meanings for words in the contexts they share. How-
ever, although the sociopragmatic context indeed acts in some ways as a culture,
nevertheless, “the speakers creating the lingua franca do have a cultural back-
ground and, in fact, a diversity of backgrounds.”12 Those speakers—and writers—
still retain their languages, values, and culturally based behaviors, and are likely
 The Role of Language in Intercultural Business Communication 61

to fall back upon the certainties of their native language and culture in situations
where they need to be precise in meaning, rather than the situation-specific lingua
franca of the global business environment, in which BELF meanings are negoti-
ated among users.
Modern technology, the Internet, e-commerce, e-mail, and teleconferencing
have contributed greatly to the international use of English. What U.S. business-
people must keep in mind, however, is that all these businesspeople are fluent in
at least one other language besides English, namely, their respective native lan-
guages, and many of them speak at least one additional language. A Korean busi-
nessperson fluent in English can do business in both Korean and English; an
American businessperson fluent only in English can do business only in English.
The Korean market will thus be more difficult to enter for Americans in these cir-
cumstances.
Traditionally, the official company language was the language of the home
country. That seems to be changing, as the previous examples indicate. If two firms
from different countries do business, and the language of neither country is widely
spoken, they face a different dilemma. Each may have a company language, but that
does not necessarily help in this case. For example, the Polish firm Bechaltow In-
dustries has started a cooperative venture with Tama Corporation in Japan. The two
firms have at least three options for communicating with each other, assuming the
Poles do not speak Japanese and the Japanese do not speak Polish:
• They can use a Polish-Japanese interpreter; however, the number of Polish-
Japanese interpreters is probably quite limited.
• They can use two interpreters, one a Polish-English interpreter and the other a
Japanese-English interpreter.
• Both companies may have declared English as the company language; there-
fore, managers could negotiate directly in English.
Even if both sides speak English, they still face hurdles. For example, do they
speak the same English, or does the Polish firm speak British English while the
Japanese firm speaks American English? Furthermore, the English the Polish
managers speak will have some Polish characteristics, and the English the Japa-
nese managers speak will have some Japanese characteristics. Typically, the cultural
references, thought, and language patterns of each side will influence their com-
munication in English. They may have different preferences for organizing mate-
rial and providing detail.13
No matter what the company language is, any international firm experiences
the need to adjust to the differences between the company language and the local
language(s) of foreign subsidiaries, partners, clients, and suppliers. With a com-
pany language that applies to all managers, the interface between languages typi-
cally takes place between management and local employees below the managerial
level. A U.S. firm that uses English as the company language cannot expect that
all its employees in Venezuela will speak English. Employees below the manage-
rial level probably speak Spanish. Therefore, translation will be necessary when
the two languages come together.
62 Chapter 2

A company language facilitates communication among subsidiaries and be-

tween headquarters and subsidiaries; it can, however, also give headquarters a
false sense of security if headquarters personnel think that everyone in the com-
pany is fluent in the company language. As many reports attest, businesspeople
from English-speaking cultures have difficulties understanding the complications
and consequences of limited English.
The following case illustrates some of the issues that arise even if a firm has a
company language.

In Focus

A U.S. firm with a subsidiary in Tokyo used English as the company language. The subsidiary had one American em-
ployee who spoke some Japanese but was not fluent. He did not read or write Japanese. The president and the two
vice presidents spoke native Japanese. The president spoke very good German and, on the surface, good English. The
vice president for finance also spoke German and some English, but his English was much more limited. The vice pres-
ident for sales had very limited English. The marketing manager was Japanese and had a B.A. from a university in the
United States. His English was very good but getting rusty. The rest of the employees generally spoke a little English,
such as tourist phrases, but not enough to carry on a conversation or do business in English.
Nobody at headquarters spoke Japanese. In this situation, all communication between headquarters and the sub-
sidiaries occurred in English. Headquarters relied on the company language and assumed that communication was no prob-
lem. The reality was more complicated. In the Japanese subsidiary, for example, the American employee received all
incoming memos from headquarters. He would read many of them and often respond to inquiries and, if asked, help the
Japanese managers with their communications with headquarters. In effect, he was an interpreter in the communication
between the subsidiary and headquarters. However, he had not been sent to Tokyo for that purpose. He had a specific job to
do; he was the operations manager and was in charge of information systems. The interpretation took place “on the side.”
Headquarters would send lengthy e-mails with detailed financial figures on a weekly basis to the vice president for
finance, whose English was limited. The memos were not adapted to a foreign speaker of English. Headquarters as-
sumed that the vice president for finance read all the material; however, when the correspondence between head-
quarters and the subsidiary was examined, it became obvious that headquarters had to ask for information a second
or third time before the vice president for finance would respond. Initially, the vice president was reluctant to discuss
the situation, but after some time he admitted that he was overwhelmed by the sheer volume of the correspondence.
He did not read the original memos because it took too much time and because he got frustrated with all the details.
He worked under the assumption that if someone really needed information from him, that person would get back to
him with the specifics. He would have preferred a clear and concise summary of major points adapted to his level of
English but was worried about losing face if he explained the problem. What he got was lengthy memos written by na-
tive English speakers for native English speakers. The vice president developed his own way of coping with the situa-
tion, a solution that was costly and time-consuming.
The vice president for international operations at headquarters in the United States, when first asked about his com-
munication with Japan by one of the authors, said there were no problems: “The Japanese speak English, so there is no
language hurdle.” Only after lengthy discussions did he admit that he was concerned about his interaction with Japan.
He felt that the Japanese president of the subsidiary spoke “social” English but had a limited grasp of English when it
came to business concepts and business discussions. The president of the Japanese subsidiary pretended to under-
stand, and on the surface there were no problems, but the vice president at headquarters became increasingly frus-
trated with the communication process. He somehow did not seem to get through. As a result, communication between
headquarters and the subsidiary, although smooth on the surface, was complicated, often redundant, and ineffective.
 The Role of Language in Intercultural Business Communication 63

Using Additional Foreign Language Expertise

How can you use your foreign language expertise if the company language is
English? The purpose of the company language is to ensure that everyone in the
firm can understand everyone else; therefore, the use of foreign languages may
be discouraged or at least limited. This comes back to the assumption that in an
English-speaking firm native English speakers do not need a foreign language
since everything is written in English and all negotiations within the firm take
place in English. As a result, a Japanese subsidiary of a firm headquartered in an
English-speaking country may hire not the best person, but the person with the
best English.
The point is that in both examples, the Japanese and the French, the com-
pany language, although the official language, may not be sufficient for clear
and effective communication. An official company language will simplify com-
munication within an international firm, but to assume that the declaration of
an official language will eliminate all communication problems, even within
the firm, is absurd. There will always be the point of interface between the com-
pany language and the local language. Even companies with a definite com-
pany language will have to be flexible to some extent and adapt to specific
circumstances. Monolingual companies of native speakers have many commu-
nication problems; no wonder people from different backgrounds speaking the
same company language also have communication problems. Intercultural
communication goes beyond the mastery of a foreign language.

In Focus

Patricia, who is French but speaks fluent English, Spanish, and Dutch, works for an American firm in the United States
that does business in many countries, one of them being France. The company language is English. She sends a copy
of all the memos she prepares to the European subsidiaries to her boss and, if necessary, to other managers. When
she corresponds with Arnaud Marchais, who is French and speaks limited English, she must write in English because
that is the company language and because the managers at headquarters that she sends copies to speak no French
or only limited French. It appears that her language expertise is being wasted.
Patricia has found a way around the dilemma, though. In some cases she will write a memo to Arnaud Marchais in
French and then send a copy of the original plus an English translation to the people who need a copy. This, of course,
takes extra time, and some managers at headquarters may resent the use of French anyway and be suspicious of se-
cret dealings.
Patricia can use her foreign language expertise more extensively when she talks to Arnaud on the phone or when
she visits the subsidiary in France. Arnaud appreciates the fact that he can contact Patricia and talk to her in French
about a particular problem and get an answer he can understand. Patricia’s ability to communicate with Arnaud in the
French language has improved business considerably, and Arnaud feels understood and appreciated.
64 Chapter 2

The Role of the Interpreter

To overcome the communication problems in international business created by the
multitude of languages spoken around the world, businesses hire interpreters or
translators. Many people use the two terms interchangeably; however, there is a
difference.
Translators work with the written word, transferring text from a source language
into a target language. This is far more than replacing one word with another. The
translator must also convey the style, tone, and intent of the text. The finished doc-
ument should read as if it had originally been written in the target language for the
target audience. Interpreters work with the spoken word, transferring speech from
a source language into a target language. This is far more than speaking two lan-
guages fluently. The interpreter must also communicate the style and tone of the
speaker, while taking into account differences of culture and dialect. The listeners
should hear the interpreted message as if it had been originally spoken in their own
language.
“Verbatim” translation is not always possible. When the source material in-
cludes concepts that are not known in the target language (for example, “snow-
shoeing” to an Amazonian tribe), word-for-word translation is impossible.
Understanding this, translators differentiate between two basic approaches. For-
mal equivalence generally seeks to preserve the words, their order, and even the
grammatical construction of the source material in the target language, rendering
it as literally as possible, while dynamic or functional equivalence seeks to com-
municate the ideas expressed in the source material in a way that is fluent and nat-
ural for the target language.
Translators have greater freedom than interpreters do to seek dynamic equiva-
lence. A translator usually has time to think about how to render difficult terms and
can consult numerous sources. In contrast, due to the time constraints and imme-
diacy of oral situations (where interpreters translate 120–180 words per minute,
and they must be right the first time), it is far more likely that interpreters will, in
practice, be more literal in their renderings than translators.14
The interpreter facilitates mutual understanding and comprehension. She is a
conduit and does not enter the discussion on her own behalf. In successful inter-
pretation, the intended message comes across at the first try. This sounds easy
enough, but there are numerous hurdles and problems. Let us look at the process
as it is illustrated in Exhibit 2.2.

EXHIBIT 2.2 Communicating through an Interpreter

Encode Encode Decode

Sender M Interpreter M Receiver
Decode

Feedback Feedback
 The Role of Language in Intercultural Business Communication 65

An interpreter must decode what the speaker says and then encode the message
for the listener. Businesspeople who are new to international business often as-
sume that the interpreter understands all the signals that are being sent and decodes
them as intended. This requires that the interpreter be both linguistically and cul-
turally fluent in both languages and cultures. The interpreter must pick up both the
verbal and the nonverbal signs of all the people in the discussion.
As we discussed in Chapter 1, perception plays a huge role in communication.
We always communicate with our perception of the receiver rather than with the
receiver himself. When we use an interpreter, our message goes through the addi-
tional filter of the interpreter, who has her own perception of the sender and the
receiver. Narrowing the gap between perception and reality requires an interpreter
who understands both sides very well.
Organizations such as the European Union and the United Nations offer excel-
lent examples of the importance of good interpreters. As the following example il-
lustrates, for some languages interpreters are hard to find, and good interpreters
are expensive.

In Focus

When the European Union (EU) expanded to 25 countries in May 2004, many people celebrated. However, the people
in charge of communication among the member countries worried about finding interpreters to deal with the in-
creased work load. Based on the law of the EU, all written documents are translated into all member languages. All
discussions at meetings are translated simultaneously to ensure that every member country gets the information in
their own language at the same time—a huge undertaking. When the EU started in 1957, it had six countries and a
total of four different languages, resulting in 12 different translation combinations. With 25 members who speak a to-
tal of 20 different languages, the possible translation combinations have risen to 380. But the sheer number of options
is not the only problem; an even greater issue is the availability of interpreters. For example, there are very few peo-
ple who speak Estonian and Maltese. In some languages, the modern business vocabulary is nonexistent, raising the
issue of either creating the terminology or using foreign vocabulary. Also, given that Malta has about 400,000 inhab-
itants, some of the other small EU countries have argued that if everything will be translated into Maltese, it would
only be fair to translate everything into Gaelic, Basque, or Catalan. So far, only Ireland has succeeded in having Gaelic
recognized as an official EU language.
The EU spends about $1.6 billion annually on translation alone. It operates the largest interpretation service in the
world, where every day thousands of pages are translated into all the member languages. The sheer size of the oper-
ation is overwhelming, and some begin to be concerned about the cost of multilingualism. As the combinations grow,
exact translations become more challenging. For example, when a member of the European Parliament described the
EU Constitution as gobbledygook, the interpreter for Polish was at a loss, and the discussion stopped until the inter-
preter found a suitable term.
Yet in spite of all the problems, language in the EU is not merely a linguistic issue. It is, more importantly, a political
and cultural issue. If the EU were to declare some languages, such as English, German, French, Italian, and Spanish,
as official EU languages, the smaller members would see their role diminished.
Given that the EU membership is scheduled to increase to 29 by the year 2014, the possible translation combinations
will then grow to 552.15
66 Chapter 2

The Importance of Choosing a Good Interpreter

Interpreters should be chosen with great care. Native speaking ability does not
automatically make a person a skilled and effective interpreter. For example, a
U.S. transportation company asked a woman from Germany to translate several
business letters relating to trucks. The problem was that the woman did not know
the terms relating to trucking in either German or English. She was well edu-
cated but had no idea what the word Sattelschlepper meant in German and there-
fore could not translate the term correctly as semi-truck. When she pointed that
out to the American requestor, he was puzzled. His response was, “If you speak
German, you can translate this well enough. We just want to know what the let-
ter says.”
An interpreter must be fluent in the language of the field in which she trans-
lates. A poet may be able to interpret for Japanese and English speakers in the field
of literature but be at a loss when asked to interpret in business.
Interpreting is hard work. People study for many years to become effective
interpreters. Many businesspeople who don’t speak a foreign language are un-
der the assumption that a native speaker can act as an interpreter easily and ef-
fectively. They are totally unaware of the work involved in the process. As a
result, many U.S. businesspeople hire foreign students or native speakers of the
foreign language who live in the United States as interpreters for their compa-
nies. The results may be costly, embarrassing, and amusing. Ricks, an interna-
tional business professor, for example, relates that in one case a student from
Indonesia who was not familiar with computer terminology translated software
as underwear.16 That example goes back several years, and today one might ex-
pect that educated people around the globe know basic computer terminology.
However, mistranslations and poor translations remain a problem. The eco-
nomic development committee of a Midwestern city in the United States was
interested in attracting foreign businesses to the area. One of the target coun-
tries was Germany. The committee developed a brochure in English and then
had it translated into German. The brochure looked good but had a number of
language mistakes, though no major problems. In the process of preparing the
brochure, the names of two members of the council had been omitted. The com-
mittee went ahead and prepared a brief statement explaining the omission and
providing the names. This statement was translated and attached to all the
brochures.
The translation of the supplement was a total disaster. It was almost unintelli-
gible even if the reader knew both English and German. The committee would
have done better to leave the names off rather than sending the “correction.” Read-
ing the supplement would only confirm all the prejudices Germans have about the
low language ability and superficiality of Americans. The disastrous translation
also showed that the committee was not very thorough and careful in checking the
credentials of the translator.
Interpreters, then, must be chosen with the greatest care. The following guide-
lines will help you in making a good choice and getting an interpreter whose work
you can use.
 The Role of Language in Intercultural Business Communication 67

The Effective Use of an Interpreter—Some Guidelines

Hire Your Own Interpreter
It is amazing how many businesspeople, who are usually very careful about busi-
ness matters, rely on their foreign business partner to supply an interpreter. You
should definitely hire your own interpreter. Most embassies or commercial sections
of an embassy have lists of translation and interpretation services you might con-
tact if you don’t know anybody. Language institutes such as Berlitz, the Alliance
Française, and the Goetheinstitut also may be able to help you find an interpreter.
Why do you need your own interpreter? Because you need an interpreter who
understands your side and who is loyal to you.

Whenever Possible, Meet with the Interpreter Beforehand

Before using an interpreter for business needs, you must first feel comfortable
with the interpreter and develop a level of trust. Unless you can use the same in-
terpreter each time you do business in Cairo, Taipei, or Seoul, you need to estab-
lish some common ground. Meeting them beforehand will also assure you of the
interpreter’s competency in your language even though you may not be able to
check his or her competency in the target language.

Hire Qualified Professionals

Don’t ask a colleague from another department to translate for you unless it is that
person’s job to translate for others. If you use a colleague, you need to set the
ground rules very carefully. Do you want translation only, or do you want input
from the colleagues? If you want input, the colleague must separate his or her own
comments from what the other side says.

Check the Technical Expertise of the Interpreter

Even if you hire the interpreter through a reputable agency, you need to check the
technical background of the interpreter. Has she translated in your field before?
How much experience does she have? Has she kept up in the field? You may want

In Focus

Midori Ito, a Japanese woman who regularly interprets for Japanese and U.S. businesses, emphasizes this point. She
explains that in most cases she is hired and paid by the Japanese side and is asked to translate for both the Japanese
and the Americans. Let us assume the Americans are preparing an answer to a question by the Japanese. They dis-
cuss the point among themselves before they finalize the answer. Ito says that the Japanese negotiators regularly ask
her for a translation or at least a summary of the discussion preceding the official response. The Americans don’t know
that, and they hardly ever ask for that information on the Japanese side. The translator, for her part, does not volun-
teer that information. Her argument is that the Japanese pay her; they ask, and the Americans don’t. Her loyalty is to
the Japanese side, not to the American side. Clearly, the Americans are at a disadvantage in this situation.
68 Chapter 2

to check references from past employers. As was pointed out earlier, technical ex-
pertise in your field is very important to ensure correct translations.

Inform the Interpreter of Your Business Plan and Objectives

If the interpreter understands the overall objectives and the purpose of the meet-
ing, she will be more effective than will be the case if she comes into the session
uninformed and is asked to translate phrase by phrase. If the interpreter under-
stands the overall goal, she will be able to interpret nuances better and see other-
wise isolated statements in the overall context. It is easier to translate in context.

Treat the Interpreter as a Professional

Even though you inform the interpreter of the objectives and provide necessary
background information and details, the interpreter is not a member of the nego-
tiation team. She is hired as an outside professional with specific expertise. To ask
the interpreter to enter into the actual decision-making process and ask the inter-
preter for business advice is wrong. It is fair neither to the interpreter nor to your
business. Your relationship with the interpreter is professional and at arm’s length.

Provide Breaks
Interpreting is hard work. It is both mentally and physically exhausting. If you
want good work from an interpreter, you must provide the right environment. Reg-
ular breaks for the interpreter are essential even if you feel you can still continue.

Speak Clearly
Even if the interpreter is fluent in your language, you must speak clearly and at a
reasonable pace. You should be particularly careful if you speak a dialect, in which
case the interpreter may have difficulty understanding you and following your rea-
soning. Dialects can be difficult for speakers of the same language; with foreign
speakers the problems are compounded. The interpreter must feel comfortable
asking you to repeat something if he does not understand you the first time. The
following example illustrates the difficulties that can arise between two speakers
of the same language when one speaks a dialect.

Concentrate on the Business Partner, Not on the Interpreter

Many businesspeople look at the interpreter as they speak and neglect the business
partner. To get every bit of nonverbal information you can, you must concentrate
on the other side and watch them as you speak. This is even more important if the
other side has some knowledge of your language. Maybe they don’t speak your
language fluently, but they may speak it a little and follow the general trend of what
you say as you give your message to your interpreter. In that case, you want to be
able to read their reaction to what you say as early as possible. Also, you want them
to understand your nonverbal communication; therefore, you need to speak to the
audience, not to the interpreter.
When the interpreter translates your message, you must watch the other side for
all the nonverbal signals. In some cultures, the nonverbal signals may be obvious;
 The Role of Language in Intercultural Business Communication 69

In Focus

A German MBA student at a university in the United States had an internship with a major German multinational. The
student came from the north of Germany, from the area around Dortmund, and had been in the United States for four
years. Her English was excellent. The German firm was located in the south of Germany near Stuttgart, where people
speak the local dialect, Swabian. This area is also referred to as the German “Silicon Valley,” the name used for the
area in California where many high-tech computer companies have their headquarters.
Since the area around Stuttgart had been rather prosperous for the last few years, the natives were proud of their
dialect and some even argued that the economic success was proof that their language, usually belittled by people
from the north, was superior.
The intern had a hard time communicating with her co-workers in German. She spoke German, her manager and
supervisor spoke German, but she typically would have to ask them to repeat what they had said. Even after they re-
peated their messages in what they considered standard German, she might not understand. Pronunciation and word
choice were affected by their dialect. A foreign interpreter who learned standard German would face the same prob-
lem. International managers need to remember to enunciate as clearly as possible. They don’t want to waste time by
repeating information needlessly.

in others, such as the Japanese culture, you will have to concentrate and watch
more closely. With practice, you will be able to decipher the nonverbal reactions
more accurately and use the information in your responses and questions. If, for
example, the other side acts surprised at what you say, you may want to find out
the reasons for that. You may want to ask about their expectations in more detail.
As the people on the other side discuss your response, again watch closely. You
need to ask the interpreter for the specifics of that discussion.
Also watch the other side as the interpreter translates into your language. They
will watch for your reaction. In some cases, you may want to ask the interpreter
for a word-for-word response and also for the cultural translation of the response.

Find Out about the Role of the Interpreter on the Other Side
The other side may have a professional interpreter or use an employee from the
company. Maybe the person is a regular member of the negotiation team. If at all
possible, you should find out the status of the interpreter.
A number of businesspeople from the United States, not speaking the language of
the partner and not knowing the status of the interpreter, talk to the interpreter. After
all, the interpreter speaks English and seems to know what is going on. They feel com-
fortable with that person. Only too late may they find out that they have just spent time
with an outsider or subordinate and neglected the person or persons in charge.

Check the Work of the Interpreter, Especially Numbers

You may argue that the reason you have an interpreter is that you can’t speak the
language and therefore cannot check the accuracy of the translation. Still, you can
do a lot to ensure accuracy. In all written materials you need to check the accuracy
70 Chapter 2

of names, dates, and numbers. An interpreter who realizes that you check will be
more careful in her work. As numbers can be difficult to translate and as misun-
derstandings can occur easily, you should always write out numbers to be on the
safe side. In Chinese, for example, where 10,000 is a unit of measurement, people
should always denote the amount of zeros in the number. Chinese frequently mis-
translate as millions numbers that are hundreds of thousands. A similar problem
occurs between English and German. The Germans use the following sequence:
thousand, hundred thousand, million, milliarde, billion. English jumps from mil-
lion to billion. Whereas Americans say that the damage from a flood in the United
States in 1993 was $15 billion (15,000,000,000), in German that would be 15 mil-
liarden. If the translator uses the word billion in the German context, the damage
will be overstated greatly. Even within the English-speaking world, billion does
not mean the same quantity. In British English, 1,000,000,000 is a thousand mil-
lion; the British billion is a million million, or a trillion in the United States
(1,000,000,000,000).

Communication with Nonnative Speakers

In many situations, you may not be fluent in the other language but cannot have
an interpreter, and you must deal directly with a nonnative speaker who is not flu-
ent in your language. The success of the communication will depend to a great
extent on how well you adapt to that person. Talking loudly and repeating every-
thing will not necessarily improve the communication. If the other side does not
understand you at your regular pitch and volume of speech, they will not under-
stand you any better if you scream. If the other side is not familiar with baseball,
they will not understand the statement “This time we are going to be successful;
all the bases are loaded, and our heavy hitter is stepping up to the plate,” and no
amount of repeating will change that. Communicating with nonnative speakers in
any language takes skill and experience. The following points may help you be
more successful.

Effective Face-to-Face Communication

Enunciate
You must speak clearly so that the person understands the words you use. Con-
tractions are troublesome because they blur individual words.

Speak Slowly
Native speakers in any language seem to speak fast; at least that is the perception
of a nonnative speaker. Slowing down helps a nonnative speaker comprehend what
you say. You must adjust your speed to the level of the other side. The nonverbal
clues your partner sends will help you adjust. If the other person looks puzzled or
has to ask you a few times to repeat something, you may be speaking too fast. In
that case, you should repeat your idea slowly and, if that does not work, repeat it
again using different words.
 The Role of Language in Intercultural Business Communication 71

For example, an Australian who has studied some Arabic wants to show what
he has learned. He will appreciate it if his partner from Egypt will slow down and
give him a chance to both understand and speak.

Avoid Slang and Colloquialisms

Unless the speaker has lived in your country for some time, you should avoid slang
and colloquial expressions. Slang changes; therefore, the other side may not be fa-
miliar with the latest terms. For example, a person who speaks English fluently but
has not had any contact with the United States over the last few years may not
know what a student means when saying “Get a life” or “Awesome.” An executive
who studied German years ago will not have any idea what “Ich hab keinen Bock”
means; it is the adolescent expression for “I’m not interested” or “I don’t care.”
French Canadians say “J’ai mon voyage” (I have my trip) when an English speaker
might say “That’s the last straw.” They say “Ce n’est pas un cadeau” or shorten the
phrase to the grammatically incorrect “C’est pas un cadeau” (It is no gift) when
something is not going well; English speakers might say “It’s no joke.” In France,
these French-Canadian idioms would sound odd and be unclear.
Foreign language instruction in most countries emphasizes correct and formal
language rather than colloquial language. Also, in very formal cultures, slang may
be offensive and signal a lack of respect. Curse words may also signal disrespect.
Although in formal American English cursing is not acceptable, many business-
people use terms that at one time were considered swear words. Damn as in, “I
know damn well he is going to be at the meeting,” is one of those words. Unless
you know the other side very well, avoid any language that could be offensive.

Be Careful about Jokes

Humor does not translate well. What one culture considers funny another may con-
sider not funny, crude, or rude. In addition, humor loses much in translation.
Johnny Carson, an American comedian, found that out when his show was aired
in Great Britain. His jokes were rooted in American culture and often were based
on current events. The British were not familiar with the events and did not share
the American sense of humor; the show was canceled after only a short time. To
appreciate jokes, the listener must share cultural references with the speaker. In the
absence of that common experience, jokes lose their funniness.
In many cases, humor is based on puns and wordplay. Those things seldom
translate into another language. And after a lengthy explanation, the situation usu-
ally is not considered funny anymore. You may have heard of the speaker who de-
livers his speech through a translator to his foreign audience. His audience laughs
at the appropriate places. What he does not know is that the interpreter supplies
his own jokes or asks the audience to laugh because the speaker just told a joke
and it would be impolite not to laugh. Just imagine this situation if the speaker
speaks to an audience of people from ten different countries who all have their own
simultaneous translator. Jokes would be a nightmare in this environment.
At the same time, well-placed and timely humor can connect people from dif-
ferent cultures. For example, when Juergen Schrempp, the chief executive officer
72 Chapter 2

(CEO) of the failed DaimlerChrysler merger, sent Dieter Zetsche to Detroit in

2001 to solve problems at Chrysler, workers at the Detroit plant were very uneasy
and afraid that this might be the end of Chrysler and that the Germans would take
over. When one reporter asked the question that was on everyone’s mind, “How
many more Germans are you going to bring to Detroit?” Zetsche answered “Four”
with a straight face: “My wife and three kids.” The joke broke the ice and made
him appear human.17

Be Sincere
Although goodwill and sincerity alone do not get the message across, they help
create a positive atmosphere. When both sides are sincere and each side recognizes
that, both will try harder to communicate verbally. Genuine sincerity can help
overcome obstacles. If businesspeople from two different countries sit down to ne-
gotiate a deal, one reasonably can assume that both sides are sincere and genuinely
interested. One also can assume that they respect each other and don’t intend to in-
sult each other. If something sounds strange or even insulting, chances are that the
speaker used the wrong words and didn’t mean any harm. If both sides assume
goodwill, many hurdles can be overcome.

Be Culturally Sensitive
The more you know about the culture of the other side, the easier it will be for you
to speak with a foreigner who speaks only a little of your language. For example,
a person doing business in Japan will be more successful if he knows the basics of
social behavior and etiquette. Even though he speaks no Japanese and the Japa-
nese counterpart speaks only some English, they may communicate if both sides
are culturally sensitive. A non-Japanese businessperson who is formal, uses last
names, is nonaggressive, and listens carefully may succeed. A Japanese busi-
nessperson who in dealing with someone from a more assertive culture is more
outgoing and verbal than he normally would be also may be more successful.
Cultural mistakes sometimes drown out the verbal message. That is true both
in international business and in domestic firms that employ people with a variety
of ethnic and cultural backgrounds. Maria Lopez from Peru has worked for sev-
eral months as a supervisor in the United States and speaks some English. She
comes from a very traditional and formal background and is used to being ad-
dressed with her last name by nonfamily. As her fellow supervisor, you think she
does good work and want to compliment her. You are outgoing and friendly and
say to her, “Maria, you are doing good work.” She may be so offended by your us-
ing her first name that the rest of the message may be lost.
You may argue that if Maria Lopez wants to get ahead in an American company,
she must adapt to American cultural norms. However, you need to ask yourself
what your goal is. Is it to Americanize Maria or to build an effective work team?
If you want an effective team, you need to consider the values of your employees.
Ideally, you would provide training for your nonnative speakers in American lan-
guage and culture and provide for your American employees at least training in the
culture of their foreign co-workers.
 The Role of Language in Intercultural Business Communication 73

Keep a Sense of Humor

Perhaps this should be the guiding rule for communicating in any foreign lan-
guage. You must be able to laugh at your own mistakes and not be offended by hon-
est mistakes from the other side.

Effective Written Communication

To avoid any confusion on the other side, you must proofread carefully for
spelling, punctuation, and grammar. Errors that may not pose a problem for native
speakers can be serious hurdles to understanding for a nonnative speaker. The fol-
lowing guidelines will help you be more effective in written communication. They
will help you adapt your style where appropriate; they also will help you in inter-
preting the message of the sender from a foreign company. The goal is not to write
like the French or the Japanese but to understand the conventions of formats to fa-
cilitate comprehension.

Use Plenty of White Space

A nonnative speaker may need space for comments and translations. Provide that
space to facilitate understanding and communication.

Use Correct Titles and Spellings of Names

Accuracy in the spelling of names will show that you care, that you are sincere and
have goodwill. Most people get annoyed at the misspelling of their names, so be
doubly careful in that area. Ask if necessary.

Understand Patterns of Organization

You will be better able to follow a conversation with your limited language ability
if all the other “noise” (any type of distraction) is eliminated. One source of noise
is organization. People from different cultures organize information differently (see
Chapter 5). People from East Asian cultures organize material on the basis of rela-
tionships of elements rather than the linear progression typical of Western thinking.
Both groups are convinced that their arguments are logically developed and pre-
sented. Within each camp there are differences also. Canadians, for example, like
to have recommendations at the beginning of a report. The rest of the report pro-
vides a rationale and the necessary background. The emphasis is on the practical
use of information. Germans, in comparison, prefer a chronological arrangement
and presentation. They give the background first; the recommendation comes at the
end. The French, much more than the Germans and the Canadians, delight in the
linguistically elegant presentation of the argument. The presentation is of impor-
tance for its own sake in addition to the practical considerations.
If the German knows that the Canadian prefers to have the recommendations
first, he may decide to arrange his information that way. Since the organization cor-
responds with his expectations, the Canadian will be able to concentrate on the ac-
tual message and not lose patience with the “slower” German presentation (also see
Chapter 5). Both the Germans and the Canadians may want to watch more carefully
for the style and presentation of the argument when communicating with the French.
74 Chapter 2

The French, Germans, and Canadians, however, are puzzled by the relation-
ship-building arrangement of the presentation of the Japanese. Although rapport
is considered important, neither the French, nor the Germans, nor the Canadians
consider the building of rapport an integral part of the presentation. The logical ar-
gument is what sells, not the establishment of relationships (see Chapter 5).
Use Headings
Headings, important in all business writing, are particularly important in commu-
nicating with nonnative speakers. They help the person understand the organiza-
tion and your line of reasoning.
Be Careful with Numbers
You always need to check the accuracy of numbers and be familiar with the con-
ventions of writing numbers. For example, $5,350.48 becomes $5.350,48 in most
European languages. The comma and the decimal point are reversed, and often the
punctuation to set off thousands is not used at all. Confusion in the punctuation of
numbers creates confusion in the meaning. To be safe, you may want to write out
crucial numbers. In addition, in international business it is crucial that writers
make clear what they mean by dollars. The United States, Australia, New Zealand,
Taiwan, Hong Kong, Singapore, and Canada all call their currency dollar, but they
are different currencies. To avoid miscommunication, it is important that the writer
identify which dollar he or she is citing.

Be Careful with Dates

Dates can become important when two firms disagree on contract conditions, de-
livery dates, and meeting dates. Different cultures have different ways of writing
dates, as the following example illustrates.
American usage: May 6, 20xx or 05/6/20xx
British usage: 6 May 20xx
German usage: 6. Mai 20xx or 6. 5. 20xx
Increasing international usage: 20xx May, 6 or 20xx, 05, 06
To avoid confusion, you should always write out the name of the month.

Avoid Abbreviations
Abbreviations hinder the process of comprehension. They may be convenient for
the writer but difficult for the reader. The same goes for acronyms, as was pointed
out earlier. A reader who does not know that ASAP means as soon as possible will
have to pause and think before going on. An abbreviation interrupts the flow of
thought. A businessperson from Manila who speaks German may not know that
the abbreviation betr.: stands for betreffs and means subject.

Follow the Conventions of Written Communication

You should study the conventions of your counterpart’s culture. For example, busi-
ness letters follow different formats in different countries. In international firms,
 The Role of Language in Intercultural Business Communication 75

subsidiaries around the world may use the same format. A letter from a Nigerian
subsidiary in France probably uses a French format; Japanese employees of a
German firm probably use the German format.
Although business letters from different countries provide information on the
sender, the receiver, and the date of the letter, the placement of this information can
vary widely. If you cannot read the language of the sender or do not know the place-
ment of the parts, you may get confused. Following are some examples of letters
from different cultures. Obviously, within a country there are variations in style and
format. The letters presented next are simply samples of formats. Cultural influ-
ences on the organization of business letters are discussed in more detail in Chap-
ter 5. The format of letters also is influenced by channel choice. For example, some
writers do not follow the conventions for letters when they transmit them by fax.
The letters from Iran and Hong Kong (see later Exhibits 2.6 and 2.7) do not provide
an inside address.
In most cases, business letters are written on letterhead stationery that provides
the address and the telephone and fax numbers. German letters also provide the
company’s bank numbers.

U.S. Business Letters

In the United States, a business letter has the following parts (Exhibit 2.3): letter-
head / return address, date, inside address (address of the receiver), salutation,
body of the letter, complimentary close, and signature block with the typed name
of the sender below the handwritten signature. After that comes information on en-
closures, the initials of the typist, and the names of people who receive a copy of
the letter. Increasingly, American business letters are blocked; that means that
paragraphs and all the parts of the letter are flush with the left margin. Block style
should not be confused with the block format in Word software, which makes both
left and right margins line up flush to the margin line. Block format is inappropri-
ate for correspondence and other writing in paragraphs because it introduces spac-
ing errors between words, and is very difficult to read, especially in multipage
documents. Business letters are always single spaced.

German Business Letters

The German format is quite different. Most company stationery has a line for an-
notations. In the example in Exhibit 2.4, this line lists (left to right) the initials of
the recipient, the subject of the letter, a filing number for the recipient, the tele-
phone extension of the writer, and the date. Sometimes this line gives the initials
of the secretary and the sender. The important difference is that this information
comes before the salutation, whereas in the United States most of that information
comes at the end, if it is provided at all.
The name of the company appears below the complimentary close. Tradition-
ally, German letters are signed, but the name of the sender is not typed. In this ex-
ample, it is impossible to decipher the name of the writer. If Frau Boehmer, who
received the letter in Exhibit 2.4, wants to send a reply, she must send it to the de-
partment rather than to a particular individual. In contrast to the practice in the
76 Chapter 2

EXHIBIT 2.3 U.S. Format for Business Letters

COMMUNICATION CONSULTANTS INTERNATIONAL

3829 Willow Road
Normal, Illinois 61761
Tel: (309) 452-1111
Fax: (309) 452-2222

February 29, 20xx

Mr. Abraham Monroe

Director of Marketing
Leisure Wheels, Inc.
501 Grant Street
Kansas City, MO 64141

Dear Mr. Monroe:

Thank you for the background information on marketing training at Leisure Wheels, Inc.
This material will be very helpful in preparing training sessions that will meet the particular
needs of your people.

At your request, the two-day seminar will pay special attention to intercultural
communication issues to enhance the skills of the marketing team as Leisure Wheels, Inc.,
expands internationally. The attached seminar schedule reflects the changes we discussed
on the phone yesterday.

For the seminar I will need the following equipment:

• overhead projector
• flip chart
• video equipment
• slide projector
Communication Consultants, Inc., appreciates the opportunity to provide the training for
your employees. I look forward to being in Kansas City on March 20 and 21, 20xx.

Sincerely,

Maxwell Hamill
IV
 The Role of Language in Intercultural Business Communication 77

United States, the German style emphasizes the company rather than the identity
of the individual sender. The writer is an agent of the firm. Frequently, German
business letters are signed by two people, particularly if a letter deals with finan-
cial information.18 The conventions for the signature block are beginning to
change. Several companies, particularly in international correspondence, do type
the name of the sender; however, the name usually is typed in a smaller font.

EXHIBIT 2.4A A German Business Letter

Bayer AG

Personalabteilung
Auszubildende

5090 Leverkusen, Bayerwerk

Telefon: (02 14) 30-1 (Vermittlung)
Te lex: 85 103-0 by d
Telefax; (02 14) 3066328 und 3066411
Te legramme: Bayerpersonal Leverkusen
Konten: Postgirokonto Köln 37 82-501
Landeszentralbank Leverkusen 37
Frau 508001
Christina Boehmer
401 Walker Hall

USA-Normal, Illinois 61761

lhre Zeichen lhre Nachricht Bewerber-Nr. Telefon-Durchwahl Leverkusen

(0214) 30

nk 81477 29.09.04

Sehr geehrte Frau Boehmer,

Sie haben sich bei uns um ein Praktikum beworben.
Leider können wir Ihre Bewerbung nicht berücksichtigen, da im angegebenen
Zeitraum alle Praktikantenplätze in der von Ihnen benötigten Fachrichtung bereits
vergeben sind.
Wir bedauern, Ihnen diesen Bescheid geben zu müssen und senden Ihnen Ihre
Bewerbungsunterlagen zurück.
Mit freundlichen Grü␤en
BAYER AG

Anlage

(continued)
78 Chapter 2

EXHIBIT 2.4B A German Business Letter (Translation)

Very honored Mrs. Boehmer,

You have applied for an internship.

Unfortunately, we cannot consider your application because during the time you requested
all internship slots have already been filled.

We regret to have to give you this decision and send back your application materials.

With best wishes

BAYER AG

Encl.

The name of the company in both the old style and the new style always appears
before the name of the sender in the signature block, thereby emphasizing the point
that the writer is writing in the name of the company.

French Business Letters

French letters (see Exhibit 2.5) typically use an indented style; the block style is
rarely used. The date can follow or precede the inside address. The inside address
in French letters appears on the right-hand side. As in German letters, the zip code
precedes the name of the city, and the name of the city is set off by a double space.
The format of the address is governed by postal regulations.
French business letters always have a subject line. Initials and reference num-
bers, if they are given at all, appear after the inside address, before the subject line
and salutation.
In French business letters, the complimentary close may be followed by the sig-
nature of the writer and the typed name or just the typed name.19

Iranian Business Letter

The letter in Exhibit 2.6 is from Iran. Unless you can read Farsi, you will not be
able to understand anything in the letter, not even the date, the name of the sender,
or the name of the company. The letter is written from right to left. The English
translation appears in the Western style, left to right. In the upper right-hand cor-
ner of the original appears the reference number of the letter by which it is filed.
Below that number comes the date, October 2, 1360. The date is based on the Is-
lamic calendar, which starts in 632 A.D. of the Western calendar. The signature at
the bottom comes after the typed name of the sender and the company.
 The Role of Language in Intercultural Business Communication 79

EXHIBIT 2.5A A French Business Letter

ETABLISSEMENT MAZET

15, rue de Verdun

44000 Nantes

Tél.: 605 90 22 TELEX 340722

Adresse Télegraphique EDUREX CCP PARIS 23650
Banque Société Générale

IRAF COMMUNICATION
23, avenue Gaston

33100 BORDEAUX

Nantes, le 26 mars 20xx

Réf. JL
Objet: LAKISRA ESAL

A l’attention de Messieurs Frédéric et Michel Ruselary

Messieurs,
Faisant suite à nos divers entretiens, je vous confirme, par la présente, que je détiens
actuellement 50% des parts de la LAKISRA ESAL dont le siège est situé à Paris, 78 rue de
Richelieu et dont le gérant est Monsieur Attregab.

Je m’engage irrévocablement par la présente à vous en céder le nombre correspondant à

50% des parts totales de la dite LAKISRA ESAL.

Cette opération sera réalisée dans les meilleurs délais, et selon des modalités conformes
aux pratiques professionelles. En particulier, la valeur de cession des dites parts sera établie
en fonction de la situation comptable de la LAKISRA ESAL au jour de la cession.

Par ailleurs, je vous confirme que le capital de cette société est en majeure partie
constitué par l’apport du scénario du projet du film “Hotel Godin” dont je suis l’auteur
intégral et exclusif.

Dans l’attente, veuillez recevoir, Messieurs, nos meilleures salutations.

Jaques Lagose
80 Chapter 2

EXHIBIT 2.5B A French Business Letter (Translation)

Gentlemen,
To follow up on our many meetings, I am confirming to you by this letter that I am
actually holding 50 percent of the shares of LAKISRA ESAL whose headquarters is located
in Paris, 78 rue de Richelieu, and of which the general manager is Mr. Attregab.

I am engaging myself irrevocably by this letter to transfer over to you the amount
corresponding to 50 percent of the total shares of said LAKISRA ESAL.

This operation will be carried out without delay, and according to modalities that
conform to professional practices. In particular, the value of the transfer of said shares will
be established within the accounting regulations of LAKISRA ESAL for the day of the
transfer.

Herewith I am confirming to you that the assets of this corporation for the greater part
consist of the revenues of the script of the film project “Godin Hotel” of which I am the
main and only author.

In the meantime, please receive, gentlemen, our best salutations.

Jaques Lagose

Chinese Business Letter from Hong Kong

The letter from Hong Kong in Exhibit 2.7 is written by hand, although new com-
puter programs now enable the Chinese to key in words. The letter is written from
left to right although traditionally Chinese is written from right to left and top to
bottom. In this letter, the date appears last after the signature. Since the letterhead
is in English, a non-Chinese reader can read the name and address of the company.

The Impact of Technology on Oral

and Written Communication
The technological revolution during the last decade has had a tremendous impact
on intercultural communication practices. We will address the influence of tech-
nology throughout this book.
As telephone service has improved around the world and as prices have
dropped, more and more businesses are using the telephone for discussions that
would have required formal letters or a personal visit in the past. For example, a
call from Germany to most parts of the world costs around two cents per minute.
However, costs have not dropped from, or to, all countries. A phone call from the
United States to Uzbekistan, for example, costs about U.S.$2.50 per minute.
 The Role of Language in Intercultural Business Communication 81

Clearly, a manager at Procter & Gamble in Cincinnati would not call the manager
at the sales office in Uzbekistan unless there was a good reason to do so. A phone
call from New Zealand to the United States can cost $0.78 NZ per minute. Costs
also depend on which provider one contracts with.
The immediacy of contact has advantages and disadvantages. In the past, Chee-
tan Shah from India could take some time and contemplate the business relation-
ship with Mario Escalante from Chile. He might think about the relationship for
several days, discuss it with some business colleagues, and ultimately send a let-
ter to Mario Escalante. Today, it is very likely that Cheetan Shah gets on the phone

EXHIBIT 2.6A An Iranian Business Letter

(continued)
82 Chapter 2

EXHIBIT 2.6B An Iranian Business Letter (Translation)

No. 1327
Date: 10/2/1360

Takesh Corporation—Producer of Various Breads, Cakes, and Pastries

Address—Tehran-Bahar Street No. 120-mailbox # 293
Telephone 247960 Fax 415711

Fada Corporation—Food Supplier

Mr. Ahmadi—President of Fada Corporation

Since our previous telephone conversation, I have to inform you that as of date March 1st
1360 Takesh Corporation opened a new branch at the city of Esfahan and Mr. Nasar Kaha
has been placed as the branch manager. With the introduction of the new branch, you can
order your pastry supplies directly from Esfahan. In addition, please send a copy of your
receipt indicating that you have paid for the pastries back to our home office in Tehran.

Sincerely
President of Takesh Corporation—Jawadeh Ebrahimzade

to discuss the issues at hand. That means that Mario Escalante must react imme-
diately; it also means that both sides are confronted directly with language issues.
Videoconferencing is used by more and more businesses in an effort to cut
down on travel costs. People can have a virtual meeting and be in the “same room.”
They can see each other and get all the verbal and nonverbal feedback. For this
medium to be successful, participants should get training. Even if everyone who
is participating speaks the same language, a videoconference may be intimidating,
particularly for people from more quiet and reserved cultures. An Italian manager,
for example, may come across as domineering, while a manager from Vietnam
may come across to the Italian as not interested. In addition, hooking people up
from ten different locations around the world may present a logistical problem. In
addition, time differences and holiday schedules may make a global videoconfer-
ence challenging. For example, if you want to set up a teleconference between your
offices in Tokyo and Chicago, the time difference is a real issue. Japan is 14 hours
ahead of Chicago. That means people in the Chicago office will have to be there
at 6 p.m. on a Tuesday evening to meet the employees in Tokyo for a conference at
9 a.m. Tokyo time on Wednesday morning. If the videoconference also is to in-
clude managers from Belgium, the Belgians need to be at work at 1 a.m. Further-
more, Belgium and the United States switch to daylight savings time on different
dates, and Japan does not use daylight savings time. Scheduling this conference
will not be easy.
Managers also need to be aware of technical problems. Frequently the sound is
delayed by a fraction of a second, resulting in a lack of synchronization of picture
 The Role of Language in Intercultural Business Communication 83

EXHIBIT 2.7A A Letter from Hong Kong

(continued)
84 Chapter 2

EXHIBIT 2.7B A Letter from Hong Kong (Translation)

Dear Mr. Lee:

How do you do? Even though we have never met before, I have heard a lot about your
company from Mr. Ho, the plant manager of Men-Nan Manufacturing Company. Mr. Ho
visited your factory last month, and he is impressed by the kind of technology you use in
your factory and the high quality of your product.

We have twenty years of experience in the importing and exporting business. Most of
the merchandise comes from mainland China and then is resold to the United States.
According to Mr. Ho, your company is looking for an exporter to help expand the U.S.
market for your products. We truly believe that our company has the ability and experience
to serve your needs.

I hope that we can arrange to meet sometime in the future. I am looking forward to
introducing our company to you.

Wishing you prosperity in business,

Truly,
Yuen-Yam Cheung
General Manager

20th April, 20XX

and sound. Although a fraction of a second does not sound like much, the com-
munication can lose spontaneity and nonverbal signals can become more difficult
to read.
Videoconferencing also has gained in popularity because of concerns about ter-
rorism and diseases, such as severe acute respiratory syndrome (SARS), avian flu,
and swine flu. In a videoconference, people can see each other as if they were sit-
ting around the same table without facing the dangers and the cost of travel. Yet
videoconferencing does not have the personal touch, and people may not feel com-
fortable speaking, particularly if their native language is different from the con-
ference language.
Skype is a form of videoconferencing. The necessary software can be down-
loaded for free, and computer-to-computer communication is free in many coun-
tries. Skype calls to landlines cost something, but compared to telephone, the price
is low. In addition, a camera can convert the call into a videoconference. It is pos-
sible to have several people participate in a Skype conference. What was a dream
just a few years ago has become an affordable reality. Videoconferencing and
Skype have added to the communication options. They are useful tools, but they
do not totally replace a face-to-face meeting.
 The Role of Language in Intercultural Business Communication 85

E-mail, texting, and twitters have become channels of choice for communica-
tion. Phones, such as BlackBerrys, have added communication options that
weren’t avaliable just a short time ago. As a result, modern communication is fast
and is not restricted by differences in time zones. The new technology allows both
for synchronous and asynchronous communication. The people communicating
may be on the computer simultaneously and use instant messaging (synchronous),
or they can read the incoming e-mail whenever they wish and respond when they
are ready (asynchronous). It allows for some thinking time. However, there are
other issues. E-mail lends itself to an informal and personal writing style that may
turn off someone with a more formal cultural background. Given that the nonver-
bal feedback is missing, the sender of the message does not get any signals that
would help in gauging the level of the tone and the salutation and complimentary
close. E-mail seems to invite a more chatty approach; it feels more like talking,
and as a result the writer may use an informal approach where a formal one would
be more appropriate. In addition, many writers send copies of a message to too
many people, regardless of whether the receivers actually need the information. As
a result, e-mails clutter inboxes and can slow down work or interrupt it.
Easy accessibility by e-mail also increases concerns about virus infections and
the confidentiality and security of company information. Companies have devel-
oped guidelines and rules to deal with some of these concerns; however, open sys-
tems are vulnerable. Lichtwehr PharmaAG, a German pharmaceutical company,
includes the following statement in all confidential e-mails in case the message
was sent accidentally to the “wrong” person:
This e-mail contains confidential or legally protected information. If you are not the
correct addressee or should you have received this e-mail in error, you are not per-
mitted to read, copy, re-send or make other use of it. Please inform the sender of the
transmission error and delete this e-mail. The content of this e-mail is legally bind-
ing only when confirmed by us in a letter sent by mail. You requested that our firm
correspond with you via Internet per e-mail. We call to your attention that e-mail
correspondence can be lost, altered, or falsified, with or without third-party inter-
vention. We therefore accept no responsibility for the intactness of e-mails after they
have left our control and cannot provide compensation for any consequential dam-
ages. Should a virus enter your systems through an e-mail sent by us, despite our
use of virus protection programmes, we are not liable for any damages resulting
therefrom. This exclusion of liability is applicable to the extent permitted by law.

Instant messaging and cell phones have added to the channel choices for inter-
cultural communication. Cell phones in particular can create an intercultural com-
munication minefield. In cultures that value family life and personal time, it may be
inappropriate to call a business partner at home in the evening or on the weekend.
The explosion of communication technology has made instant communication any-
where and anytime possible, but a culturally astute manager will have to decide when
and where it is appropriate to communicate. These days one can rent or buy a cell
phone (mobile in Great Britain, Australia, and New Zealand; handy in Germany) at
most international airports. Sim cards and special chips allow a traveler to use a cell
phone around the globe. Buying a local cell phone may be a good investment.
86 Chapter 2

Potential business partners and clients may see a local phone as a sign that the user
is serious about doing business. For example, a team of students went to China to
explore export opportunities for a medium-sized business in the United States. They
bought a cell phone and had their business cards translated into Mandarin. They were
convinced that the local touch helped them in getting appointments.
Compatibility of technology has become less of an issue, but even now it can
play a role. Lynn Robertson sent an e-mail with an attachment to Brian Eldridge in
Moldova. She wanted to make sure that the format of her message was retained. The
e-mail message was a short cover note. The problem was that Brian had a hard time
opening the attachment. Even worse, once the technical issue of downloading had
been overcome, it turned out that the downloading process took almost 45 minutes.
In a country where telephone lines are not reliable and the cost of Internet use is
based on the length of the connection, this became a very expensive message.

Some Guidelines for Communicating

with Businesspeople from Different Cultures
Every language has unique speech patterns, idioms, and metaphors that are dif-
ficult to translate, and the dictionary, as was pointed out earlier, does not always
help. For example, businesspeople from the United States use many words and
idioms from the military and from sports. Businesses have strategies, they plan
the attack, they dig in, they have price wars, they destroy the enemy (the com-
petition), they rally the troops, they are on the offensive or defensive, they have
intelligence-gathering systems, and so forth. Most Americans use this termi-
nology without being aware of its military origin. To people from a more
reserved and peaceful culture, businesspeople from the United States may come
across as very combative and aggressive. Therefore, U.S. businesspeople may
want to tone down the fight symbols and take a more cooperative approach in
their language.
Sports provides U.S. businesspeople with countless metaphors. Again, most
businesspeople use the terminology without being aware of the consequences.
Baseball and football are important sports in the United States, and both men and
women have integrated sports terminology into their business vocabulary. They
assume that everyone understands what it means even though in many cases they
themselves do not know or care much about sports.
Some typical phrases are listed next.
• The bases are loaded.
• He hit a homerun.
• He got to first base.
• Send him down to the minors.
• He struck out.
• He is out in left field.
• He has a good batting average.
• We want a level playing field.
 The Role of Language in Intercultural Business Communication 87

• All the bases are covered.

• Monday-morning quarterbacking.
• Third down and nine to go.
• Touchdown.

Unless people from other cultures are familiar with baseball and football as they
are played in the United States, they will not understand these phrases no matter
how good their English is. A professor of English business communication in
Belgium, for example, had read a book by Lee Iacocca, past president of the former
U.S.-based Chrysler Corporation. However, he admitted that he did not understand
much of the terminology. For example, Iacocca used U.S. sports terminology, and
the Belgian, not being familiar with baseball and football, had a hard time under-
standing the meaning. He found reading the book a frustrating experience.
A dictionary, unless it is specialized in sports or colloquial expressions, will not
help in all cases. For example, Langenscheidt New College German Dictionary
translates homerun as Baseball: Lauf um sämtliche male auf einen schlag (run
around all bases with one hit).20 This means absolutely nothing to a German who
does not understand baseball. The German will not understand the meaning of a
homerun in baseball, let alone the meaning the term takes on in business. The New
Cassel’s French Dictionary does not even list homerun. As with military termi-
nology, an American English speaker must avoid sports terminology when speak-
ing to nonnative speakers of English.
You may understand that non-English-speaking countries have difficulties with
American sports terminology; however, it is important to recognize that even in
English-speaking countries, sports metaphors make no sense. For example, an
American professor teaching in New Zealand realized after she used terms such as
hit one out of the park that her students were totally lost. They had no idea what she
meant. She might as well have spoken a foreign language. Her students could relate
to metaphors from rugby—a game with two halves—but non-Rugby English speak-
ers have no clue what that phrase imparts to Kiwis and other rugby-playing cultures.
If you know some of the characteristics of a foreign language, even if you don’t
speak it fluently, you may be able to adapt your English better to speakers of the
other language. Many English words have either a Germanic or a French/Latin
root. You can communicate with a native speaker of French who has limited
English better if you choose English words based on French or Latin. The French
person will find it easier to understand descend rather than going down, and as-
cend rather than going up. The German, in contrast, will understand you better if
you say going down rather than descending, and going up rather than ascending,
because these words are closer to German.
You must, however, be careful that you don’t use words that appear to be simi-
lar but have very different meanings. You may know that the word gift also is used
in German and decide to use it when talking with a German. In that case, you need
to know that gift in German means poison. The word is exactly the same, but the
meaning is radically different. A gift shop in northern Michigan in the United
States whose owner was trying to give the establishment an ethnic flavor was
88 Chapter 2

called the German Gifthaus, literally the German House of Poisoning, hardly what
the owners intended to communicate.
Clearly, the more you know about another culture and language, the easier it
will be for you to communicate. For any country you do business in you need to
learn at least the basic phrases for greeting, asking directions, making an apology,
and showing appreciation. This does not make you fluent, but it can show your sin-
cerity, especially if you improve your language proficiency over time.

Communication with a Multicultural Workforce

Since World War II, the world has seen an unprecedented migration of people. The
United States has had an increasing number of immigrants from India, Pakistan,
Arabic countries, Mexico, China, and Southeast Asia. European countries recently
have had to cope with an influx of people from Russia, Poland, Turkey, Bosnia,
Algeria, and Vietnam. Many of these people come in hopes of a better economic
future. Even Japan, which prides itself on having a homogeneous population, faces
a growing foreign workforce, though it is very small by American and European
standards. Oil-rich Arabic countries employ a number of foreigners from the
Philippines, India, Pakistan, and Indonesia.
As a result, businesses in all industrial countries are confronted with an increas-
ingly diverse workforce, and business must deal with the issues of diverse languages
and cultures on an everyday basis. Intercultural communication is an important topic
not just for international business but for domestic business as well. The question is
what businesses need to do to build a team with common goals, which is not always
an easy task. The old attitude that immigrants should adapt to the culture of the host
country and learn the language may be unrealistic. Some immigrant groups cling to
their native language; others don’t want to give up their culture. They may perceive
a materialistic obsession in industrial countries and resent it even though they may
come to an industrial country to improve their economic situation.
A business that manufactures high-precision instruments must make sure that
all the employees understand the importance of accuracy and tolerances. The busi-
ness must see to it that all nonnative speakers understand instructions clearly and
follow them. Social issues aside, it is in the best interest of the business to educate
the foreign workforce in the goals of the business. For the process of education to
be successful, managers need to understand the backgrounds of the workforce.
If the workforce has a mixed cultural and linguistic background, the business
must see to it that people from different backgrounds get along with each other.
Management should provide intercultural training to all employees from the top
down to facilitate the work toward a common goal.
Companies may have to prepare instructions and policies in the major languages
spoken by the employees and establish groups and teams to help overcome cultural
hurdles. This process takes time and resources. It is important that all employees re-
ceive training, not just the ones from the “foreign” culture. Although one can argue
that it is the responsibility of immigrants to adapt both culturally and linguistically,
one must look at the broader context and the nature of the business. A business may
very well decide that adaptation to the immigrants’ culture pays off.
 The Role of Language in Intercultural Business Communication 89

In Focus

A woman from China who sells insurance in central Illinois has developed the Asian community as her major clientele.
She has been extremely successful with that group and ascribes her success to the cultural and linguistic adaptation
of American insurance practices to the values of the Asian clientele. She has business cards and brochures printed
in Japanese, Chinese, and Korean, her major client groups. She wants to sell insurance; therefore, she works very hard
at pleasing her clientele. This saleswoman has adapted to the culture of the United States in many ways; she is as-
sertive and outgoing, and she has a good grasp of the concept of profit. She also knows, given her own background,
that she must be more indirect and willing to enter into long-term relationships with her clients that in many cases go
beyond a typical American business relationship. A number of her clients ask her to give marital advice for their chil-
dren, act as a go-between in marriage arrangements, and help with other personal matters.

The insurance saleswoman in the previous example could argue that the people
she deals with are in the United States and therefore should adapt to American
practices; however, with that attitude she would not reach her customers, who are
from East Asian countries. As a result, she would restrict her business success se-
verely. Her ability to communicate in a foreign language and at the same time un-
derstand the cultural background of her clientele makes her successful.

Summary In this chapter, we examined some of the major issues related to the use of lan-
guage in intercultural business communication. The focus has been on five issues:
The language barrier and its consequences, real and perceived:
• Language and culture are intertwined and shape each other.
• Our environment influences our language and the development of linguistic
concepts.
• Language reflects our priorities and values.
• Different cultures may give different meanings to identical or similar words.
• Language changes over time.
• Acronyms present special challenges in communicating.
• The language barrier makes intercultural communication more difficult.
Selection of the right language:
• When selecting a language for intercultural communication, managers need to
be aware of
• Linguistic considerations. Out of the thousands of languages around the
world, which one would be most appropriate?
• Business considerations. Are you the buyer or the seller? Which language
do your partners speak? What are the implications of the role of English as
the lingua franca of business?
90 Chapter 2

• Political considerations. Governments frequently determine which lan-

guage is acceptable for official use with the government.
• Appropriate level of fluency. To be effective, linguistic fluency must go
along with cultural fluency.
The company language:
• Choosing a company language. Many companies use one official language for
their worldwide operations.
• Using additional foreign language expertise. Even if a company selects an of-
ficial company language, not everyone in the firm will be fluent in that lan-
guage. Expertise in the local language will still be an asset.
The role of the interpreter:
• The importance of choosing a good interpreter. A good interpreter has linguis-
tic, cultural, and technical fluency.
• The effective use of an interpreter. You need to prepare the interpreter before a
session. You need to provide breaks and determine what role the interpreter
should play in any discussions.
Communication with nonnative speakers:
• Effective face-to-face communication. You must speak clearly and be able to
read the nonverbal and cultural signals your partner sends.
• Effective written communication. Knowledge of different business formats, or-
ganizational patterns, and conventions will help you become more effective.
• The impact of technology on oral and written communication. The development
of communication technology, such as e-mail and teleconferencing, has
changed the communication patterns in international business by allowing in-
stant messaging.
• Guidelines for communicating with businesspeople from different cultures.
People from other cultures, even if they speak your language, may not be fa-
miliar with metaphors and idioms that are used frequently in your culture,
which can present a communication barrier.
• Communication with a multicultural workforce. Intercultural communication
has become an important issue not just for international businesses but also for
domestic businesses.

Notes 1. Yong-Jin Song, Claudia L. Hale, and Nagesh Rao, “The South Korean Chief
Negotiator,” International Journal of Cross Cultural Management, 5, no. 3
(2005), pp. 313–328.
2. Richard Mead, Cross-Cultural Management Communication (New York:
John Wiley & Sons, 1990).
3. Edward T. Hall, The Silent Language (New York: Doubleday and Co., 1959).
4. http://www.geocities.com/SiliconValley/Heights/4766/shumor.html.
 The Role of Language in Intercultural Business Communication 91

5. James Calvert Scott, “Differences in American and British Vocabulary: Im-

plications for International Business Communication,” Business Communi-
cation Quarterly 36, no. 4 (2000), pp. 27–39.
6. “Death Sentence,” The Guardian, October 25, 1999.
7. www.chinadaily.com.cn/english/doc/2005-01/11/content_407916.htm.
8. Deborah Tannen, Communicating from 9 to 5 (New York: William Morrow
and Company, 1994).
9. Richard D. Babcock and Bertha Du-Babcock, “Language-Based Communi-
cation Zones in International Business Communication,” Journal of Business
Communication 38, NJ (2001), pp. 372–412.
10. Malcolm Gladwell, Outliers: The Story of Success (New York: Little Brown
and Company, 2008).
11. Mirjaliisa Charles, “Language Matters in Global Communication,” Journal of
Business Communication 44, no. 3 (2007), pp. 260–282.
12. Leena Louhiala-Salminen, Mirjaliisa Charles, and Anne Kankanraanta, “English
as a Lingua Franca in Nordic Corporate Mergers: Two Case Companies,”English
for Specific Purposes 24 (2005), pp. 401–421.
13. Janet Frank, “Miscommunication across Cultures: The Case of Marketing in
Indian English,” World Englishes 7, no. 1 (1988), pp. 25–36.
14. The American Translators Association Web site, http://www.atanet.org/
careers/index.php.
15. Aexei Barrionuevo, “Land of Babble: As Europe Seeks a Stronger Voice,
Words Get in the Way,” The Wall Street Journal, January 5, 2005, p. A1; James
Owen, “With 20 Official Languages, Is the EU Lost in Translation?” National
Geographic News, February 22, 2005.
16. David Ricks, Big Business Blunders: Mistakes in Multinational Marketing
(Homewood, IL: Dow Jones-Irwin, 1983).
17. J. Muller and C. Tierny, “Can this Man Save Chrysler?” BusinessWeek,
September 17, 2001, pp. 86, 93.
18. Iris Varner, “Cultural Aspects of German and American Business Letters,”
Journal of Language for International Business III, no. 1 (1988), pp. 1–11.
19. Iris Varner, “A Comparison of American and French Business Correspon-
dence,” Journal of Business Communication 25, no. 4 (1988), pp. 5–16.
20. New College German Dictionary, German–English, English–German (Berlin:
Langenscheidt, 1973).
C H A P T E R T H R E E

Getting to Know
Another Culture
Juan Marin is meeting with Lei Peng about a business deal. Marin wants to open a Chinese
restaurant in Mexico City and is working out a joint-venture agreement with Lei who has
several successful restaurants in Hong Kong and Los Angeles, California. But Marin is
discovering a number of things that surprise him about his would-be partner as they
negotiate the details, meeting face to face at last in Los Angeles.
Lei has just mentioned that Juan should construct a fish tank in the entrance to his
restaurant. “Why?” Juan asks. “We’re not just serving fish, apart from a few dishes. But
people will see the fish and think it’s a fish restaurant.”
“You need fish,” Lei asserts. “You need that because it means good profit!” He explains
that in Chinese the phrase “to have fish” (pronounced yo yu) sounds like the phrase “to have
profit after expenses,” and for that reason Juan must have a fish tank. Juan is amazed that
the Chinese man thinks he should go to the expense of placing a large fish tank at the front
door of his restaurant simply on the basis of the sound of the Chinese word for fish.
While he and Lei continue their discussion, Juan notices several times that people are in-
terrupting them to bring Lei a telephone, provide tea, or ask for answers to quick questions. Juan
doesn’t really mind; he understands that these are signs of how important and busy Lei is.
Juan is a little hungry, though, since it’s three o’clock in the afternoon and time for his
large meal of the day. Lei seems unaware of the hour, and although someone provides tea
for them, there is no mention of dinner. Juan thinks he’d better clarify the hours during
which the restaurant will operate in Mexico. Lei simply says, “No problem. The Chinese
staff I’ll get for you will work whenever you tell them.” Juan wonders about that. What if
a relative needs some help at home? After all, Juan himself arrived at their meeting just
before 2 p.m., although he had meant to come at 1 p.m. as agreed. His son had asked him
to bring a special video game back from the United States to Mexico, and the traffic
between the store and the meeting was heavy, causing Juan to be late. Lei didn’t show any
emotion, so Juan couldn’t tell if he was angry. Family matters always take priority, as the
Chinese must agree. But maybe the Chinese restaurant isn’t such a good idea for his fam-
ily business interests. How will he explain the fish tank?
For his part, Lei Peng is surprised at Juan Marin’s behavior in person. How serious is he
about this restaurant venture? He was an hour late for their first meeting! And although it’s
93
94 Chapter 3

the middle of the afternoon, he keeps suggesting they go out for a meal to a nice Mexican
restaurant he knows. As if Lei weren’t an owner of restaurants in Los Angeles! How odd
his associate is. Is it a good idea to open a restaurant in Mexico City?
Understanding another culture is an ongoing experience that can last a lifetime. How-
ever, sometimes businesspeople have only a short time to prepare to do business in another
country. How can a brief amount of time best be spent to yield the greatest understanding?

Ways to Study Culture

We have said that understanding a culture opens the door to understanding how
people see and make sense of their world. Now we examine more closely how
scholars and researchers study culture.
Traders for centuries have wanted to understand the motivations of buyers from
different cultures, and to master some of their language. Language experts have been
curious about the countries where foreign languages were spoken, especially the root
languages of current languages. Historians studied records about other societies in
other times. In the 19th century, European scholars in the new academic discipline of
anthropology actually began to travel to foreign lands to study their cultures.
In the 20th century, scholars began to be interested in the daily lives of ordinary
people, in order to understand culture. They examined television advertisements,
for example, and popular music, among other daily expressions of a culture. They
expanded the way culture is studied. The new discipline in European universities
is called “cultural studies.” Cultural studies also forms part of the study of culture
and communication.
Studies of culture today are expanding, because people in many areas are inter-
ested. Businesspeople, of course, want to know how culture affects their interna-
tional and domestic aims. Governments around the world want to know how culture
affects the way people settle down in new countries. World leaders want to know how
culture affects their efforts to establish peace among countries. Individuals surfing
the Internet or connecting with people in other countries by Facebook and other elec-
tronic means want to know how to interact and how to interpret the impact of cul-
ture on their interaction. Thoughtful people everywhere want to understand how
culture is related to ethical behavior. Studies about culture are multiplying.

Research Approaches to Studying Cultures

We can begin an overview of how cultures are studied by considering two general
approaches: studies that focus on a culture as a whole, and studies that focus on
the individual.

Studying Whole Cultures

Cultures are social groups. Sometimes they coincide with the geopolitical bound-
aries of countries, but often they comprise people who live in more than one coun-
try, although that geographical region may be associated with the culture. For
example, Portuguese culture came from the part of the European continent called the
 Getting to Know Another Culture 95

Iberian Peninsula, and is an important contributor to the culture of Brazil, which was
a colony of Portugal, and where Portuguese is the language spoken. Portuguese cul-
ture also affected a part of western India that was ruled by Portugal. In fact,
Portuguese sailors left the mark of their culture on places as far apart as Oman in the
Arabian Peninsula, Taiwan in East Asia, and Hawai’i in the United States. Scholars
can study the Portuguese influence on the cultures of these very different lands.
When studying a whole culture, researchers can use emic and etic approaches.
These terms were introduced in an In Focus section on page 35.

Emic Studies
Studies that concentrate on one culture alone are called emic studies. They focus
on one culture and describe it from within the culture. Emic studies consider the
characteristics of a particular culture that are meaningful to people within that
culture. The factors they reveal may not occur in other cultures. For example, a
study of Brazilian culture today will involve a number of contributing cultures,
including Portuguese.
Etic Studies
Studies that look for factors that exist in more than one culture are called etic stud-
ies. They examine how characteristics are shared with other cultures. A researcher
who looks at the culture of Hawai’i and the culture of Brazil can examine the
Portuguese influences as a shared characteristic. Etic studies usually involve
comparisons to find similarities and differences.

Cultural Generalizations
Studies about whole cultures give us conclusions that are generalizations about the
culture. For example, from culture-based research we learn that Chinese culture
has these values:
• Face (public esteem)
• A reciprocal network of connections with others
• Lasting membership in groups
The high value placed on face means that losing face is a negative experience that
people try to avoid for themselves and for others. Certain behavior follows.
Members of this culture may give face to others by praising them in front of others.
They will try to minimize face-threatening situations such as a criticism, perhaps
by laughing to show it isn’t important. They will often communicate using words
and phrases that do not give offense, so as not to cause any pain.
For example, when being offered hospitality—tea or food—the Chinese
cultural practice is that a guest should refuse at least once, and probably twice. This
act of politeness involves a desire to show how generous the host is, and how
humble the guest is.
Politeness in communication brings harmony to social situations. The host and
guest both follow rules for hosts and guests that allow the host to be generous and
the guest to be served well. This situation of hospitality means that in the future
96 Chapter 3

the guest will return the favor, perhaps by being the host. The changing about of
roles from host to guest illustrates the reciprocity—exchange of favors back and
forth—that is an important glue for holding relationships together in Chinese
culture. Networks of relationships are called guanxi (pronounced gwan-shee) in
Chinese, and they are important in Chinese culture.
The value of group membership suggests that family is very important in
Chinese culture, and within the family, the links are durable. Chinese networks of
connections also exist in the neighborhood and in the workplace. Because mem-
bership is lasting, people in Chinese culture identify themselves with the groups
to which they belong.
Studies that give us these insights into Chinese culture are based on large
amounts of data collected from many respondents. Means or averages of ques-
tionnaire responses allow researchers to make general statements about the popu-
lation that is Chinese culture. In other words, studies about whole cultures often
use a positivist approach.

Hofstede’s Research and Other Studies

Perhaps the most important researcher to collect data about characteristics of
whole cultures is Geert Hofstede (pronounced hoff-ste-duh), a Dutch social
psychologist. His definition of culture was introduced in the first chapter.
Here is some more information about Hofstede’s research. At the request of the
international firm IBM, Hofstede conducted a huge study into corporate climate.
He gathered data in 1966 and 1967 from managers in IBM offices in 44 countries
around the world. He collected 116,000 completed questionnaires. When he began
to analyze his data, he realized he could identify characteristics that could be the
basis of comparisons from culture to culture. He called the characteristics cultural
dimensions.
The result of his study, published in 1980, was four cultural dimensions:
• Individualism versus collectivism
• Power distance
• Uncertainty-avoidance versus uncertainty-tolerance
• Masculinity versus femininity
Among these dimensions, the first one is the most widely researched. Individ-
ualistic cultures are those that emphasize individual achievements and rights,
including the individual’s right to make decisions for himself or herself; collec-
tivistic cultures emphasize the group’s achievements and rights, including the
group’s right to make decisions for the individual.
Power distance is the degree to which less-powerful members of an organiza-
tion tolerate unequal distribution of power, say, between managers and employees.
Uncertainty avoidance is the tendency to behave so as to arrange things in a way
that minimizes unforeseen consequences; uncertainty tolerance results in behavior
that is less concerned with unforeseen consequences. Masculinity, according to
Hofstede, is a way to characterize cultures that value assertiveness, competitiveness,
 Getting to Know Another Culture 97

and material success, while femininity characterizes cultural preferences for

collaboration, nurturing, and harmony.
Hofstede’s work often is cited by international business and intercultural com-
munication scholars. Later, Michael Bond, a Canadian working and living in Hong
Kong, developed a way to assess cultural values based on a survey instrument
written by Asians, not Westerners. This resulted in a fifth cultural dimension
reported by Bond and Hofstede as long-term orientation.1 It includes values that
can be called “future-looking,” such as perseverance, thrift, observing a hierarchy
of status in relationships, and having a sense of shame. Short-term orientation,
looking more to the past, includes protecting one’s own “face,” respecting tradi-
tion, maintaining personal steadiness, and reciprocating favors and gifts.
Hofstede’s study, which remains the largest social science project ever carried
out, resulted in generalizations about cultures that are still important to scholars
today. It is also a good example of positivist research.
Another Dutch interculturalist, Fons Trompenaars, developed seven cultural
dimensions.2 They include universalism versus particularism, individualism ver-
sus collectivism (from Hofstede’s and other scholars’ influence), neutral versus
emotional, specific versus diffuse, and achievement versus ascription. To these
dimensions Trompenaars added attitudes toward time and the environment.
Meanwhile, other scholars were developing cultural values by which to
compare cultures. André Laurent looked at European managers and came up
with four parameters for understanding how culture affects relationships of
power: the perception of organizations as political systems, authority systems,
role formulation systems, and hierarchical relationship systems.3 Shalom
Schwartz developed a values survey in the 1990s based on theories that tried to
account for some of the biases that may have affected earlier studies, notably
Hofstede’s.4

The GLOBE Study

Other large-scale studies have also resulted in generalizations about whole
cultures. The GLOBE study came out in a volume entitled Culture, Leadership,
and Organizations, published in 2004.5 The study used data collected by
170 researchers in 62 countries. Data came from 17,300 managers in 951 organi-
zations. The focus of the study is culture’s effect on leadership in organizations
around the globe. The project was the idea of Robert House, a professor at the
Wharton Business School of the University of Pennsylvania. He gathered an in-
ternational team to develop the research design, so it would not have a United
States bias.
Many other researchers study whole cultures. Areas of study that focus on cul-
tures include, among others:
• Adaptation and acculturation
• Marginal and minority groups
• Networks and theories of communication contacts
• Culture as a theoretical construct (more about this later)
98 Chapter 3

Studying Individuals
Another way to study culture is to focus on individual members of a culture. Indi-
viduals carry the values and attitudes of their culture within them, and they may
behave according to expectations—in other words, according to predictions made
from large positivist studies. But often individuals don’t have the values, attitudes,
and behaviors predicted by the generalizations.
Individual people have multiple influences in their thinking and acting, of
which the general culture is one. Individuals may have any number of experiences,
personal insights, personal goals, interests, and expectations that are part of their
identities. Not every individual in a cultural group will be identical to every other
individual.
Here is an example. Think back to the host and guest situation in Chinese cul-
ture, where the host’s duty is to provide food and serve the guest, and the guest’s
duty is to say it is too much, and the host shouldn’t have gone to such a lot of trou-
ble, and the guest is not worthy of this honor.
Now picture a young Chinese nurse from Beijing who was invited to dinner by
a Canadian couple in Toronto, Canada. She arrived with the words, “I hope you
cooked a lot of food, because I’m really hungry!”
The Canadian hosts were expecting the young woman to act with typical
Chinese politeness, refusing offers of food at least once, or taking only a lit-
tle bit. They told each other to be sure to press more than one offer of help-
ings, so the guest didn’t go home hungry. But the young Chinese woman
announced right away that she was hungry for the Chinese food that had been
cooked by the Canadians. She also looked upon her hosts as like her parents,
of the same generation. So she let her host know right away she was looking
forward to eating.
However, although the Canadian hosts were surprised by the atypical commu-
nication, they also realized that the young Chinese woman was speaking as if she
were among her family, rather than among strangers, and they took that as a great
compliment.
Individual-based studies examine the way culture affects individual perception,
individual cognition (or thinking), and individual behavior.
Areas of scholarship that focus on the individual include:
• Interpersonal communication
• Conflict communication between individuals
• Coaching communication
• Facework and issues of face
• Cultural identity of individuals

Culture as a Theoretical Construct

Culture itself, as a concept representing a particular group of people, can operate
as the basis for generating theories. In this book, we look at culture as a recogniza-
ble collection of behaviors, values, attitudes, and beliefs that people share. People
 Getting to Know Another Culture 99

themselves identify with those values, attitudes, and behaviors. They recognize the
processes and relationships among themselves.
Culture is a dependent variable in this approach. In other words, a researcher
views a particular culture as stable and consistent. Then the independent variable
is a particular cultural dimension or some other construct about culture. A study
can examine how big an impact the same cultural variable has in more than one
culture.
This approach means that we can generalize about a culture. We can identify
behavioral practices and say, “That is typically Pakistani” (a young woman’s
female relatives and friends color her hands with a henna pattern before a wed-
ding) or “That is typically Polish” (a bride’s female relatives and friends put her
hair into two braids, not the one she has worn until now). Then we can compare
Pakistani and Polish culture in relation to the behavioral practice. Although Polish
brides do not use henna, and Pakistani brides do not have their hair in two braids,
we can say that both cultures have traditions about making the bride beautiful,
showing her new status, and wishing her good luck in her marriage. And in both
Pakistani and Polish cultures, the female relatives, especially the bride’s mother,
play an important part in her wedding appearance.
We can compare cultures not only by using a behavior, but by using an iden-
tified value or cultural dimension. For example, we can take collectivism, which
refers to the preference in a culture for identifying oneself as a member of the
group, rather than as an individual apart from a group, and compare that from
culture to culture. We can look at group membership in two or more cultures,
and compare how long a period of time people remain members of a group.
Some memberships last longer than a person’s life, and children carry on with
the membership in a group (such as a craft or profession). Some memberships
are short, only weeks or months, as people move around a lot and live in dif-
ferent places. We can look at how important group celebrations are in each cul-
ture, and how important individual celebrations are. We can consider how
people live with family members—in large extended families that stay close to
each other, or in small families of parents and children only, perhaps far away
from other family members.

Generalizations and Stereotypes

In order to compare cultures, we use generalizations about them. Making general-
izations leaves us open to the charge of stereotyping.
Stereotyping means using oversimplified generalizations to understand people.
To explain stereotype, we begin with how the word stereotype came into being.
It was first used in 1725 to refer to a historical development in printing and
described a new way of setting type. Type—individual letters of the alphabet—
formerly had to be put into a frame, one at a time, to make up the words and sen-
tences to be printed. The metal type or letters were slightly raised. They were
covered in ink, then paper, and then a press or weight came down and squeezed
the ink into the paper. The frame holding the type had to be very firm so the type
wouldn’t move around when the press came down upon them. The movable type
100 Chapter 3

was taken apart when the printing was done. But later, instead of each line of
alphabet type having to be laid down and the printing done directly from it, a plate
was made. It exactly reflected the type that had been set, and printing was done
from it. It was called “stereotype” because it was a hard inflexible image of the
type: stereo is from a Greek word meaning hard, firm.
So what does this have to do with stereotypes of people? The answer is that
stereotypes are fixed, firm, inflexible mental categories. As the historical origin of
the term suggests, they are rigid and unchanging, so when new information is
received, they are unable to contain it. Therefore, the problem with stereotypes is
that they are incomplete information about people, and using them, rather than
seeking more information, means that the picture is limited. Stereotypes are
painted with only a few colors, so they do not capture shadings and multiple hues
or tones.
Instead of calling mental categories stereotypes, we might call them prototypes.
Prototypes are the original concepts or models for something. Mental representa-
tions are created as prototypes when we are confronted with something unfamiliar
or complex. We categorize data to make sense out of it. If we couldn’t make gen-
eralizations and put similar items together into categories, we couldn’t make sense
of any unfamiliar subject.
Nor are all stereotypes bad. Some are positive. For instance, one stereotype
about people who live in the oil-producing countries of the Middle East is that they
are all wealthy. A positive stereotype about Japanese is that they are sensitive to
human feelings. A positive stereotype about Americans is they are generous.
We need to have mental categories so we can quickly understand all the infor-
mation coming at us in our world. As discussed in Chapter 1, when learning about
something new, we put new information into old categories or create new ones.
When people do not bother to examine new information and add it to the
categories, or are not mentally open and flexible, their understanding of people is
limited to their stereotypes.
We need to be careful to avoid cultural determinism as a consequence of
generalizations. Cultural generalizations can be used to make predictions about how
a culture in general thinks, acts, and believes. Because of this, it is tempting to treat
culture as an influence that determines the values, attitudes, and behaviors of indi-
vidual members of a culture. In other words, individuals in a culture are treated like
robots, and are assumed to think and act a certain way simply because they are mem-
bers of that culture. It is easy, and also useful, to generalize about a culture. How-
ever, generalizations hide many individual variations. We can identify typical values
or the typical behaviors of the whole culture, while recognizing that on an individ-
ual level, many individuals in the culture will not fit the “typical” description.

High-context Communication and Low-context Communication

Researchers can explain communication differences by taking a variable in
communication behavior and tracking how it differs in different cultures. One
researcher who has contributed valuably to research into the relationship of culture
 Getting to Know Another Culture 101

In Focus

A very distinguished 75-year-old Chinese scholar and statesman was being honored by a university in the eastern
United States. He and his wife had just made the 21-hour flight from Beijing, and they were met at the airport by some
friends who exclaimed, “You must be very tired!” His response was keyi, “It’s possible” or “Perhaps.” Of course he
was tired! He was an old man who had sat on airplanes or in airports for 24 hours straight. But the context—the meet-
ing in an airport at night, the fact of his long journey, his age, his slightly glazed eyes—communicated the obvious. He
did not think it was necessary to put it into words.
Consider a person from a Western culture, traveling to Beijing and getting off the plane after 24 hours of continu-
ous travel. His or her response to the same comment, “You must be tired!” could be, “Tired! I’ve never been so tired in
my life! I’ve been sitting on planes or in waiting rooms for 24 hours and wondered if my legs would work again! My
eyes are so gritty with sleep, they feel like the Gobi desert was in that plane!” and so forth. What the Westerner is not
likely to say is “Perhaps.”

and communication, Edward Hall, used this approach. He examined the role of
communication context in exchanges, and theorized about cultures, terming them
high-context and low-context.6
High-context cultures rely on the context, either the actual physical envi-
ronment of communication or an internalized social context, or both, to con-
vey a large part or even all of a message’s meaning. In cultures in which
context is referred to implicitly in communication, the messages can be ellip-
tical, indirect, and allusive. In cultures in which context is not assumed to be
understood, messages are explicit, direct, and completely encoded in words.
This describes low-context cultures, in which the meaning is entrusted almost
entirely to words.
Hall drew a continuum reaching from the extreme of low-context cultures to
the opposite extreme of high-context cultures and then plotted national cultures
along the continuum. He identified German Swiss as a very low-context cul-
ture in which messages are spelled out fully, clearly, and precisely. He identi-
fied Japan as a high-context culture in which messages are ambiguous and
meanings are implied by the context. He put the United States on the low-
context side of middle. High-context cultures, in which the context of the mes-
sage is well understood by both sender and receiver, use the context to
communicate the message.
Members of low-context cultures put their thoughts into words. They tend to
think that if thoughts are not in words, the thoughts will not be understood cor-
rectly or completely. When messages are in explicit words, the other side can act
on them. But high-context cultures have less tendency to trust words to communi-
cate. They rely on context to help clarify and complete the message.
102 Chapter 3

In Focus

A Turkish male graduate student in the United States lived in a residence hall where he shared a room with an American.
One day his roommate went into the bathroom and completely shaved his head. The Turkish student discovered this
fact when he visited the bathroom and saw the hair everywhere. He returned to his room and said to his roommate,
“You’ve shaved your head.” The American replied, “Yeah, I did.”
The Turkish student waited a little and then said, “I discovered you’d shaved your head when I went into the bath-
room and saw the hair.” “Yeah,” the American confirmed.
The Turk was at a loss. He believed he had communicated in the strongest possible language his wish that the
American would clean up the mess he’d made in the bathroom. But no such meaning was attributed to his words by
his roommate.
Later, he discussed the surprising episode with Turkish friends, who told him, “Listen, with Americans you actually
have to say ‘Clean up the bathroom’!” The Turkish student believed his message had been very clear. He was relying
on the context of the communication for the message to be understood: Hair was recently and widely scattered all over
the bathroom, and his roommate suddenly had no hair.

The differences between high-context communication and low-context com-

munication can lead to unintentional problems in the workplace. In China, when
people feel they have been disrespected or treated badly, they are as angry as any
other people in the world, but do not usually express their anger and hurt in words
to those who offend them. In the following true situation, a Chinese doctor took
the unusual step of putting her feelings into words—with fortunate results, since
the high- and low-context communication had gone awry.

In Focus

A female neurologist from Beijing was working on a research project in a Toronto hospital. She shared a small office
with a young Canadian man who loved peanut butter. He was so fond of peanut butter, he kept a jar in the office. One
day, he came into the office and exclaimed, “Who took my peanut butter?” (He really meant, “Where is my peanut
butter? I can’t find it.”) But the Chinese woman immediately felt accused. After all, there were only two of them in the
office.
She was deeply distressed, but true to her learned cultural behavior of never showing anger in public, she said
nothing. Later that day, she was working in a room where a physiotherapist was treating a patient who had suffered
paralysis of his legs and arms from a motorcycle accident. The physiotherapist moved one of the patient’s legs in a way
that caused him pain.
“Ouch!” he cried. “Oh, I didn’t do that,” said the physiotherapist, mischievously. “It was that doctor over there,”
and she pointed to the Chinese woman.
“How could she have done it since she’s on the other side of the room?” the patient asked. “Ah, she has three
hands,” the physiotherapist replied.
 Getting to Know Another Culture 103

At these words, the Chinese doctor became even more upset. She was so disturbed that she behaved in a way un-
characteristic of her culture. She waited until the patient had gone and then said to the physiotherapist, “I’m very up-
set by what you said.” The physiotherapist was taken aback. What had she said? “You said I had three hands,” the
doctor finally choked out. “You think I took the peanut butter.”
What was going on in this exchange? The physiotherapist was making a joke when she said the doctor had “three
hands.” She expected the patient to be amused by her suggestion that the doctor on the other side of the room could
have reached an imaginary third hand out to touch him.
The Chinese woman came from a culture where the question “Who did this?” means that someone is to blame. Her
culture furthermore prohibits direct accusation unless a person has been targeted for shame. Shame is a terrible
ordeal, since it means punishment for not being a cooperative member of the group.
Finally, in Chinese a “three-handed person” is slang for a thief.
The physiotherapist didn’t know that, nor did she know anything about a missing jar of peanut butter. The therapist
explained to the doctor that she said “three hands” only because it was so obvious that the doctor was not responsi-
ble for causing the pain to the patient.

The Cultural Dimensions Approach in This Book

The brief descriptions of well-known studies on pages 96-7 indicate that there are
many ways to approach understanding a culture. We synthesize these studies into
the following five categories of questions that focus on values in a culture, allow-
ing you to compare cultures by assessing how each of the questions can be an-
swered for different cultures. Questions about a culture that need to be asked for
business fall into these five categories:
• Thinking and Knowing
• Doing and Achieving
• The Big Picture
• The Self
• Social Organization
The first three categories are discussed in this chapter, and the last two in Chapter 4.
These categories cover the cultural dimensions that motivate people to behave in
certain ways. They reveal cultural priorities. Priority is a useful term because it im-
plies relative importance along a sliding scale. Our questions ask about relative
values: For example, does a culture value youth or age more? Does it look upon
change as positive or negative? Are results more important than relationships, or
are relationships more important than results?
Finally, each of the questions to pose of a culture—24 in all—should be thought
of as a continuum, with opposite characteristics at each pole and the continuum as
a line stretched between the poles. (Think of a clothesline and cultural priorities as
the hanging laundry. See Exhibit 3.1.) You can position the culture you are con-
sidering at any point between the two poles, wherever it seems appropriate in light
of your level of knowledge of that culture. For example, consider the question “Are
results important or are relationships important?” If you are asked to locate United
States culture somewhere between those two poles, where would you put it? Right
104 Chapter 3

EXHIBIT 3.1
Cultural
Dimension of
Individualism–
Collectivism along
a Continuum
Clothesline
Culture A
Collectivist
Individualist

in the middle? Slightly toward the results end? Strongly toward the relationships
end? You can draw on your own experience and understanding to formulate an an-
swer. This is the way to consider each question in the five categories. Then, as you
learn more about a culture, you can continue to ask and continue to adjust where
you would locate the dimensions and priorities of the culture. In this and the next
chapter, you will encounter 24 cultural dimensions for your clothesline.

Where Can Information about Cultures Be Found?

Anyone can ask the questions that follow in this chapter and the next, but of
whom? The obvious place to start is to ask people who are members of the culture
you want to understand. A logical source is someone who comes from a back-
ground similar to yours (economic, educational, family), or someone who has had
similar experiences or holds the same kind of job. For instance, if someone asked
you whether members of your culture learn by asking questions or by memorizing
information, you probably could give an answer like others in your culture.
But some of the questions are not easy for people to discuss because they have
never considered them. For instance, most people don’t know whether they think
in a linear pattern or in a cluster pattern. In fact, the members of a culture are not
necessarily the best authorities on that culture.
That may surprise you, but culture is embedded deep in the unconscious part
of the mind. As Edward Hall pointed out in Beyond Culture, the closer something
is to seeming true, the less aware we probably are of its cultural origin.7 People’s
own culture seems normal to them; it seems just the way things are.
Another good source may be someone who has spent considerable time in that
culture but is not a native member of it. Someone who has lived in the other cul-
ture has had exposure to the differences between his or her own culture and the
culture you want to understand. You may be able to learn from a nonnative about
cultural priorities that a native of that culture simply takes for granted.
You can inquire into a culture by reading fiction from that culture. By reading how
characters act and why, you can learn about what is important to that culture, and what
is appropriate behavior. For example, you can learn how Japanese culture views the
public expression of emotion, the relative status of older people compared with
younger people, the importance of not causing someone to lose face, and the differ-
ence between outward public action and private opinion by reading modern short sto-
ries in translation. You also can watch Japanese movies and see what people’s behavior
 Getting to Know Another Culture 105

looks like—their nonverbal communication—when they behave in Japanese ways,

and how they sound when they speak the Japanese language.
Another approach is to find out what people of a culture say about themselves.
Countries publish books in translation that describe their institutions, history,
beliefs, practices, and goals for the future. Even travel guides contain insights.
Cultures also define themselves less directly in communications that are
nevertheless revealing. For example, television commercials offer insights into
cultural priorities—not so much in the products they advertise as in the values
implied by the appeals the commercials make to the viewers. Whereas conven-
ience is the central appeal in certain breakfast cereal advertisements to young
single working people in the United States, family membership is the central
appeal in advertisements for the same breakfast cereal in Mexico.
A Japanese television commercial offers a contrast.

In Focus

One particular television commercial [for a Lexus] several years ago showed the car being driven down a country lane.
It stopped, and a woman in kimono and a man in a suit emerged. As they walked around the car, the camera showed
a close-up shot of a green leaf that had fallen on the windshield. There were drops of moisture on the leaf and the win-
dow. The only sound was the singing of birds. The man and the woman walked up next to a potter who was holding a
recently fired bowl. The three gazed in silence at the bowl. The potter threw the bowl to the ground and it broke into
pieces. Nobody spoke. The couple got back in the car and drove away.8

The message is that only perfection is good enough for the master craftsman
(the product’s slogan in English is “The pursuit of perfection”). It is communicated
without words in the Japanese ad.
Print ads also reflect values, so they can offer insights into backstage culture
and also into the differences between cultures. One Southeast Asian country has
advertised its airlines for years by showing attractive young women attentively
serving male customers. In North America and Europe, this approach has offended
some who see the women as having a limited role as serving men. In some Islamic
cultures, the Asian women in the commercials display an availability to male
strangers that devout Muslim women are taught to reject. As the case that opens
this chapter shows, visual images convey cultural values.
Information about cultures also comes from studies by anthropologists who
research cultures in the field, going to live among the members of the culture they
want to understand. They are trained to observe and report their observations. As a
result, their accounts are more objective and less anecdotal than are those of other
visitors. But even the casual anecdotal tales of travelers often can add to your
understanding.
General insights you form about a culture from asking about cultural priorities
will continue to need revision and reexamination in specific contexts. Finding
106 Chapter 3

answers to questions about cultural priorities in the cultural dimensions we exam-

ine is an ongoing process. You can continue to learn about other cultures and your
own culture for as long as you continue to pose questions.

Category 1: Thinking and Knowing

Does Knowing Come from Concepts or Experience?
How do people know things? The answers vary from culture to culture. Some
people know because they have experienced for themselves what a thing means.
Few of us would argue that knowing how to bargain prices for cold-rolled steel is
acquired by anything other than experience. However, since few of us have done
that, we know about doing it from reading about bargaining and the market and
past prices. Our information is secondhand, but in English-speaking cultures most
people accept the validity (if still second best) of knowledge that is acquired from
a reliable source—books, training programs on bargaining—rather than from
first-hand experience (see Chapter 8 for a discussion of validity).
In some cultures, however, firsthand experience alone legitimately constitutes
what is known. All else is hearsay. This is particularly true in cultures that have no
written language, but it also can be identified in cultures that emphasize personal
vision. The vision of the individual prophet or priest or shaman constitutes knowl-
edge that is truth to the visionary. Followers believe also that the visionary knows
what they cannot know. Reading or hearing about a vision is not the same as ex-
periencing it. Visionaries play powerful roles and enjoy high status in many cul-
tures. Corporations cannot assume that all their employees, associates, partners,
and subsidiaries share the same definition of to know.
In many cultures, knowing and being wise come with age. In Thailand, for in-
stance, elders are presumed to know what is necessary and true, even though
they may not be on top of cutting-edge technological research. In cultures in
which age and status go together, younger members don’t challenge the truth of
what seniors say.
Knowing by intuition is another kind of experience. Intuition is a kind of in-
stinctive knowledge that does not require deliberate consideration. Or consider
meditation, which isn’t the same as intuition. In cultures in which Daoism,
Buddhism, and Hinduism are the dominant religions, knowledge of the true nature
of things comes from meditation, the intense focusing of the mind on one thing,
including emptying the mind of all thoughts. Buddha taught that each person has
truth within; meditation is a way to reach that inner knowing and allow it to be rec-
ognized. Accordingly, Buddhists believe that knowledge gained from study or lis-
tening isn’t as valuable as knowledge that comes from meditation. Only by
emptying the mind of sensory stimuli and concerns and finally of thought, can one
experience true understanding.
The notion of knowledge in European cultures often calls to mind a traditional
body of abstract concepts, philosophies, and arguments reaching back in history.
Knowledge sometimes seems rather solemn, dusty, and remote. Perhaps that is
 Getting to Know Another Culture 107

why we have a number of other terms for the activity to know, including to grasp,
comprehend, understand, and perceive. There are even more terms for a person
who knows, or is in the know: smart, knowledgeable, savvy, perceptive, clever, as-
tute. Another key term is learned. This leads to the next question we can ask of a
culture.

Does Learning Come from Asking Questions

or Mastering Received Wisdom?
What does it mean to learn? Cultures have a variety of answers. People learn how
to learn when they are very young, first at home before they go to school and then
later at school. Those early learning patterns continue with little change through-
out people’s lives. In Canada and the United States, learning is a process that in-
volves asking questions. This book is by one United States–Canadian citizen who
is a New Zealand resident and one United States resident originally from Germany.
Asking questions opens the door to understanding in these cultures. Therefore,
the process we present for learning about cultures is one that involves asking
questions.
In the United States, from kindergarten through seminars in graduate school,
students who ask questions are rewarded. They earn their teachers’ approval and
often receive higher grades than students who simply listen. U.S. teachers tend to
think question-askers are intelligent. In commerce, industry, and medicine, stories
are told about innovators who asked, “What if we do it this way?” and “Why not?”
Stephen Wozniak and Steve Jobs, the computer whiz kids who began their com-
pany in a garage, asked Why not make computers fun to use by someone who had
no technical background? and they thereby created the Apple Computer Corpora-
tion. The heroes in your own organization asked questions that led to new learn-
ing. Many leaders in U.S. businesses believe—with a fervor that the 18th-century
Age of Enlightenment would have approved—in the candlepower of question-
asking. They believe that when they have answers to their questions, they know.
In many cultures, knowing involves laying something open and examining its
components minutely. Other cultures have quite the opposite approach. To them,
knowing involves seeing the connections and links between everything. Knowing
something means being able to fit it into the scheme of things. A prominent
Chinese scientist once described the difference between Western and Chinese
approaches to knowing, using the disease AIDS as an example. He pointed out that
in the West, medical researchers were diligently trying to isolate the virus that
causes the disease. But in China, researchers were trying to find ways to strengthen
the body’s immune system. One method looks at the most elemental unit of the
disease, while the other looks at its place in the context of what the disease does.
In many cultures in Asia, Latin America, the Middle East, and Southern
Europe, learning does not come from asking questions. Learning means receiving
and taking in what is given by teachers. Some teachers may speak through written
texts. Teachers know. Their role is to pass knowledge on to learners, so that the
learners also will know. In China, Japan, Korea, Thailand, Hong Kong, Vietnam,
Malaysia, Cambodia, and Indonesia—among other places—the teacher in the
108 Chapter 3

classroom is an absolute authority. The textbook and the teacher do not disagree.
What a teacher delivers to the students is true knowledge and is not to be doubted.
Although sometimes students ask questions for clarification, they do not question
the authenticity or reliability of the knowledge they are given. Their role is to
master it.
Frequently that means committing knowledge to memory so they can recon-
struct it when called upon to do so, as in an exam. Reproducing exactly what was
delivered is the best possible demonstration a student can give of really having
learned.
Culture defines what it means to know and to learn. This basic fact is impor-
tant for any organization, since today organizations must operate with personnel
from many cultures.

Does Knowledge Have Limits?

Can everything be known eventually? In cultures with highly developed research
economies, some people assume that with enough science, the right theories, and
the best equipment, eventually the physical world will be known. Probes into
space, into the seas, into the atom, into human behavior—all these will yield final
answers one day. This is a view often held by nonscientists who have faith in what
science can achieve.
But many people who aren’t engaged in science hold a different view,
believing that scientific inquiry into the physical world will never reveal every-
thing. They think some things are unknowable. In Western Christian cultures,
following a separation between the sacred and the secular that began hundreds
of years ago, the spiritual truths generally have been held to be knowable through
faith: If you believe, you can know. When scientific findings and faith are in
conflict, science has little effect on the beliefs of the faithful. Scientific analy-
ses of the Shroud of Turin, for example, which some Christians believe bears the
imprint of Christ’s body, have had little effect on belief or unbelief.9 For those
Christians, knowing in spiritual terms involves a different approach from know-
ing in material terms.
Other cultures find this approach to knowing very strange and schizophrenic;
for them there is no separation between sacred and secular. For many Hindus in
India, for example, all human undertakings and all things in nature are embraced
by the spiritual. Believers visit temples daily, sometimes three or four times a day.
Businesspeople obtain blessings for ventures, and new work premises are blessed
before they are occupied. No separation is made between material life and spiri-
tual life; all life is seamlessly part of the real, unseen but felt, realm of the divine.
All of life is sacred. Any foreign organization that wishes to do business in India
has to accept this view of knowing.
For many cultures, some things are too ineffable—too sacred and inexpressible—
to be known by any means. The ineffable may be delineated to a greater extent by
the persons who are assigned that role—priests, shamans, wise women—than by
ordinary businesspeople. When this is true in cultures in which such knowledge is
valued, these people enjoy a high status.
 Getting to Know Another Culture 109

How Do People Reason?

How people know is closely related to how people reason. Reasoning varies from
culture to culture. This is not always evident, since people tend to assume every-
one reasons the same way.

Western Logic. Perhaps the most typical way of reasoning for members of West-
ern cultures involves cause and effect. To speak of reasons in English is to speak
of causes, of reasons why. In fact, a reasonable person is one who sees relation-
ships of cause and effect between things. Why questions in Western cultures
inevitably invoke explanations of causes: Why has the market share shrunk for
widgets in Malaysia? Why are productivity figures up for March? Why is the chief
accountant not at work today? (Because our widget competitor launched a mar-
keting campaign last month. Because the new equipment was running without
problems in March. Because her husband is in surgery.)
Cause-and-effect thinking is linear. We could draw a straight line from cause to
effect, with an arrowhead at the results end. Many sentences in English employ
this pattern. Consider that last one: The subject is sentences, and it has some de-
scriptors around it (many, in English); employ is what the sentences do; this pat-
tern is the outcome, or the result of the activity of the verb. The subject does the
activity. That’s how the sentence unfolds, and that’s the linear pattern of what ac-
tually happens, not just what the sentence describes.
Westerners think that cause-and-effect patterns are logical and that logical
means cause and effect, the pattern Westerners call Aristotelian syllogism. So
deeply embedded is this notion that it is assumed to be universal. But it isn’t.
The syllogistic reasoning of Aristotle . . . is not a universal phenomenon; it has
been a part of the Anglo-European tradition for such a long time that speakers of
English tend to assume that it is a natural phenomenon of the human mind, rather
than an invention of the human mind.10

Western logic also holds another Aristotelian principle: that two opposite
things cannot both be true. This is called the principle of non-contradiction. It
forces one to choose which is true and which is not. The result of this principle is
that Westerners tend to think in terms of a binary choice between true and untrue,
black and white, good and bad. It is the reason Westerners often seem to over-
simplify issues.

Asian Logic. Logical means something very different to non-Western people.

For example, Chinese people often use a pattern of logic that contrasts elements:
An A must have an opposite B, hot implies cold, summer pairs with winter, and so
forth. However, the opposites co-exist, and seem to hold each other together in a
balanced state. This balance of opposites is represented symbolically by the yin-
yang (pronounced een-yahng) image (see Exhibit 3.2). This pattern of thinking
results in communication that contrasts opposite items in equal terms. Items may
be in a sequence of opposites or antitheses. Reasoning structured by complemen-
tary opposites is common in East Asian logic.
110 Chapter 3

EXHIBIT 3.2
The Yin-Yang Symbol

In Focus

The Chinese yin-yang symbol used in many Asian countries and displayed on the Korean flag (see Exhibit 3.2) ex-
presses the way opposites contain something of each other.
Yin is negative, cold, downward and inward, dark, and night; it is also feminine. Yang is positive, hot, upward and
outward, light, and day; it is also masculine. The yin and the yang interact. Where one grows, the other contracts, but
they make up a whole. Neither can exist without the other.
Furthermore, each has an element of the other within it. As the yin grows larger, so does the yang element within
it, and vice versa.
Yin and yang can offer a perspective for understanding technological growth and development in Asia. Urban de-
velopment, telecommunications, and fast transportation systems bring people into contact: This is a yang aspect of
technology. Family structure is threatened by urban growth as people leave their villages and migrate to urban cen-
ters: This is a yin aspect of development and technology.

The key in Asian patterns of thinking is linkage. Links are always being sought
to show the wholeness of life, even when that whole embraces contradiction. The
importance of the fish tank to Lei Peng in the case that opens this chapter shows
a linkage of ideas because of the sounds of the words that represent those ideas:
fish and profit. Events are likened to other, larger events that occurred in the past.
Businesses in China use this linkage pattern in negotiations. For example, a meet-
ing between negotiating companies is related to momentous encounters between
nations in distant historical accounts. This kind of historical reference often
figures in the early informal stages of negotiation: the toast by a Chinese host to
the foreign guests.11 Toasts often sail past Western guests, who do not recognize in
a historical reference any substantive link to the business at hand. The unity of hu-
man experience with the whole of life is the fundamental philosophical basis for
the thinking patterns that can be identified in Chinese business communication.
The point for business communication is that Asian businesspeople tend to look
at the links between things and the relationships that give things meaning by
providing a context. Western businesspeople, however, tend to consider issues in
isolation. For example, a Westerner trying to establish joint-venture guidelines in
 Getting to Know Another Culture 111

Japan may look at professional credentials only in relation to hiring personnel. The
Japanese look at credentials, but also at the character of employees, their senior-
ity, their past service, perhaps their family members’ service, and certainly who
the candidates’ contacts are—a large tissue of interrelated factors that form a con-
text for hiring and wages.
Roderick McLeod, an entrepreneur in China more than 20 years ago, made this
prediction:
I believe that the subject of patterns of thinking, explored in all its daunting depths
and complexities, holds a promise of a “quantum leap” in cross-cultural under-
standing and communication.12

His projection still holds true today. Richard Nisbett engaged in an exploration
of the differences in the ways Westerners and Asians reason. Westerners, accord-
ing to Nisbett, going back to the classical Greeks, consider the perceivable world
as made up of objects. The reasoning method by which objects are grouped into
categories entails identifying attributes that objects have in common. Individuals
that have fur, for instance, can be classed together into a group.
East Asians, in contrast, reason that objects that influence one another be-
long in a group. For example, a group could include “spring,” “east,” “wood,”
“wind,” and “green,” all of which influence each other. Both Westerners and
Asians focus on the relationships of things, but Westerners look at the relation-
ship of an individual item to the group, whereas Asians look at the relationship
of part to whole.13

Arab Logic. Reasoning in Arabic cultures is different again. Arabic reason-

ing differs from East Asian reasoning in that it does not try to reconcile oppo-
sites. Arabic reasoning is more like Western reasoning, holding that two
opposites cannot both be true. The historical development of reasoning in
Arabic-speaking cultures has origins that predate Islam but were focused in a
particular way by Islam.
In Arabic-speaking cultures, presentation is the conveying of true meaning.
Presentation is the way communication is enacted. It involves three key elements:
• Language and word choice
• Ability to raise emotion
• An authoritative voice
Arabic reasoning often begins with an assertion that then is restated and
repeated so that the accumulated weight of repetition demonstrates its truth.14
We can look at the way people reason as a cultural dimension that can be
examined in any culture. For example, in Russia, as in Asian countries, thinking
patterns embrace opposites, rather than oppose them. Extremes and contradic-
tions delight Russians, who do not seek to reconcile them but to see them exist
together in a pattern.15 We will return to reasoning as an independent variable in
the study of culture when we examine how culture affects persuasive communi-
cation (Chapter 5).
112 Chapter 3

Category 2: Doing and Achieving

The next six value dimensions have to do with how people view work and the
ways they create meaning out of work. They are presented, just as with Category
1 dimensions, as situated between opposite poles.

Is Doing Important or Is Being Important?

The existential view of some cultures calls for valuing the present moment and
celebrating being. One worker expressed an existential view by saying that he re-
gards work as a blessing; you work hard at whatever your work is. But you don’t
continue to set yourself new challenges or imagine new activity beyond the bless-
ing you have been given. This is hard for the activity-oriented to understand. To
them, it looks like shirking.
In contrast, to the celebrators of being, a great deal of activity in doing cultures
looks pointless. Where are people going in such a hurry? What have they left be-
hind? What is the meaning of so much activity? Being cultures value stillness, col-
lectedness, and serenity. Many visitors to Western cultures are amazed by the pace
of life, especially in cities: so many activities crammed into a short time, requir-
ing so much speed to fit them all in. Such crowded agendas seem to leave little
room for simply being.
According to Condon and Yousef, Clifford Clarke (as foreign student adviser at
Stanford) first observed the correlation between cultures in which activity is
valued—almost for its own sake at times—and in which silence is of little value.16
Members of doing cultures view silence as a waste, a time when “nothing is do-
ing.” Members of cultures that value being also often value silence. In silence the
present moment can best be appreciated and experienced. A foreign businessper-
son in Japan who is unaware of the importance of silence in that culture may rush
to fill silence with words. Silence is discussed in more detail in Chapters 6 and 9.
Obviously, great potential for conflict exists when co-workers have opposing
views about doing versus being.

Are Tasks Done Sequentially or Simultaneously?

Even when many cultures value activity, they may regard doing differently. In
some cultures, performing tasks one-by-one in a sequence is considered normal
behavior, whereas in others, performing multiple tasks simultaneously is normal.
People may have personal styles and preferences for getting work done apart
from the norms of their cultures. That is, within a sequential-task culture, individ-
uals may prefer a flexibility that allows them to do more than one thing at a time.
(They may be called “disorganized” by others in that culture.) In general, however,
workers in sequential-task cultures know at the start of the day what they will do
during the segments of the day: morning, lunch hour, afternoon, and evening.
When unexpected tasks arise, others that had been scheduled are rescheduled. The
essence of time management is organizing and sequencing tasks, a notion that
seems peculiar to members of cultures where things take as long as they take.
 Getting to Know Another Culture 113

In Focus

Rosemary Andrews, a Canadian sales representative from British Columbia to Venezuela, goes to the office of a ship-
ping company to arrange for the ongoing shipment of an order in transit from Quebec to another country. She is on time
for her appointment but has to wait while Juan Caldrón, the shipping agent, serves a number of customers who are al-
ready in the office. When Rosemary’s turn finally comes, she explains what she needs, and Juan begins filling out the
documentation for the shipment and discussing prices. At the same time he takes a phone call, responds to a question
from a co-worker about schedules, and directs the faxing of a message about something else—in effect working on
three other projects besides the Canadian’s. Juan is efficient in the Venezuelan culture.
To Rosemary, however, this is unfocused activity that is not nearly as efficient as it would be—particularly from her
point of view—if Juan simply dealt exclusively with her during her scheduled appointment.
In Canada, as in many industrialized countries, businesspeople typically write appointments and activities into the
day’s agenda every day. They then work sequentially through the agenda until they have completed each task, or un-
til the day is over.

In contrast, although a simultaneous-task performer knows in general what the

tasks in a given day will be, the day has a fluidity that allows for more and less im-
portant tasks that take more or less time, and the performer assumes that many
tasks will be attacked simultaneously. (The question of time and how it is valued
is discussed in detail later in this chapter under the heading “The Big Picture.”)
Simultaneity is extremely useful when people and relationships between peo-
ple are valued highly: You can spend all the time you want or need with a person
when you are at the same time giving some attention to other (valued) persons.
This leads to the next question to pose of a culture concerning doing and achiev-
ing, a key question in comparing cultures.

Do Results or Relationships Take Priority?

Results cultures regard ends as more significant than the means used to achieve
those ends. The United States is where Management by Objectives (MBO) had its
origin; that isn’t surprising when one considers the dominance of cause-and-effect
thinking in United States culture. The basis of MBO is that you identify your goals
and then work out a strategy to achieve them. Along the way, you measure how
close you have come. That’s how you know you’re making progress.
Goals-oriented societies place a very high value on making progress, which
naturally leads to methods by which to measure progress. Measurements that
seem logical to Americans may not seem so logical to others, however. The
French (among others) often marvel at the American penchant for statistics and
measurements of qualities they consider intangible. (“How satisfied are you with
your present superior: 10 percent, 25 percent, 50 percent, 75 percent, or 90 per-
cent?” “On a score from one to five, how well do you think you are performing
in your job?”)
Not all cultures feel the need to identify goals and work toward them. One rea-
son is that an important goal in many cultures is nurturing close relationships with
114 Chapter 3

co-workers. Even if the proposed sale falls through, relationships have been
strengthened by the effort to close a sale.
In countries where power is concentrated at the top levels of organizations and
is wielded according to personal favor, a healthy and strong relationship with the
powerful ones is a primary goal of every endeavor.
Relationships are the basis for much of the business conducted in Asia and the
Arab world. In places where relationships are highly valued, business is done only
with people who have entered into a relationship with you and whose organization
has connections to your organization. In fact, in relationship-oriented cultures,
business preferably is transacted face-to-face.
In China, for the last half of the 20th century and beyond, every government-based
work unit had a travel allocation in its budget from the government so that represen-
tatives could travel and meet with suppliers, buyers, associates, and related organiza-
tions (those reporting to the same ministry in Beijing). Many work units had hotels on
the premises to receive visitors from within and outside China. Business correspon-
dence was minimal; business was transacted face-to-face. The preference for face-
to-face communication is still strong today. Relationship building is a key activity.
When there is a strong relationship, specific outcomes can be planned. Contracts
can be written and signed because relationships exist that will ensure their perfor-
mance. The outcomes flow from the relationships. No wonder relationship-oriented
cultures value the relationships as a means to an end more than the end itself. Further-
more, if success is elusive, the parties can always try again, if the relationship is intact.
Finally, people don’t necessarily agree about what signifies an achievement.
You may assume that all businesspeople equate achievement with profit, but that
assumption is not always correct. Furthermore, even when people agree that mak-
ing money is their goal, they may have very different ideas about what it means to
have money—what it is worth.
For instance, in Brazil wealth is important because it can buy an elite car, a
spacious apartment in a desirable area, servants, memberships in private clubs,
travel, exclusive brands of liquor, clothing, personal entertainment equipment, and
entertainment for friends.
When graduate students in Shanghai were asked in 1985 to describe wealth,
they all agreed that it meant having money in your own pocket; they also agreed
with the statement “If you have 10,000 yuan in your pocket, you’re rich because
you can buy the best banquet for all your friends!” Today, the same people may in-
deed be buying banquets along with homes, cars, and consumer goods. Economic
growth of an average 8.5 percent in China since the mid-1980s has fueled huge
leaps in prosperity for many. Consumerism is rampant in China today, driven in
large part by the willingness and ability of parents to spend money on their one
child. Still, people value being able to buy banquets for family and friends.
This dimension, results versus relationships, corresponds in part to Hofstede’s
dimension of individualism versus collectivism. Individualist cultures are
performance-oriented and emphasize personal achievement and winning
the competition. Collectivist cultures are relationship-oriented and emphasize
supportive networks and collaboration.
 Getting to Know Another Culture 115

Is Uncertainty Avoided or Tolerated?

Uncertainty—the inability to be sure about exactly what the future will hold for
oneself and one’s business environment—exists in all cultures and, Hofstede
points out, in all organizations as well. Some people react to uncertainty with
greater levels of anxiety than others. An employee who is averse to uncertainty will
want to know what the prospects are for job advancement, based on what criteria,
at the recommendation of whom, at which times of the year. Employees who cal-
culate carefully and minutely what the effect is on a retirement income of working
an extra month before retiring and base their decision to retire on that information
are probably uncertainty-averse. They strive to protect themselves from the un-
known. By comparison, an employee who tolerates uncertainty may be willing to
transfer to a different geographic location at short notice or leave a place of em-
ployment before lining up the next job. Such employees are more open to accept-
ing the unexpected. What Hofstede showed is that like some individuals, some
cultures react with greater anxiety than others. As a broad generalization, being
cultures tend to be more uncertainty-tolerant, while goal-oriented doing cultures
tend to be more uncertainty-averse. Doing cultures have a Plan A, and then a
backup Plan B, and often even a Plan C “just in case” the first two fall through.
Two members of an organization who come from different cultures and have to
work together—say, a production manager and a supervisor—who do not agree
about whether to avoid or tolerate uncertainty may have a hard time understanding
each other. If the person from the avoiding culture wants more guidelines about how
to deal with uncertainty, and if that person is a subordinate, then the subordinate’s
relationship with the boss may suffer from distrust and diminished respect. The un-
certainty avoider may not understand that a different attitude toward uncertainty lies
behind what appears to be simply an irresponsible approach on the part of a supe-
rior who is supposed to be responsible. The one tolerating uncertainty, the boss, may
identify the subordinate as anxious for no good reason—simply a worrier—rather
than someone with a different attitude toward uncertainty.
Uncertainty is not the same thing as risk. Risk involves a specific potential loss, but
uncertainty does not involve a specifically identifiable loss. Risk in business is an
everyday fact; risk in business that involves multicultural and multinational contact is
even more inevitable. The risk may be social rejection, economic loss, or a legal lia-
bility. Businesses must consider risks in all business transactions. Businesspeople from
various cultures approach risk differently, but all organizations want to minimize risk.

Is Luck an Essential Factor or an Irrelevance?

Luck is one way to deal with one’s anxiety about the unknown. Cultures vary in
the importance they attach to the influence of an unseen power over events. Is luck
(fortune, fate) responsible for success? Or is success the responsibility of the
human engineers of it? Not surprisingly, in cultures that think in cause-and-effect
patterns and that value results, planning—not luck—is the key to success. West-
erners are fond of sayings that present this view: “We are the architects of our own
destiny.”
116 Chapter 3

Planning appears to equal control. If you plan carefully and omit no detail, you
may ensure the outcome. Control means calculating the variables so that nothing
unexpected can intervene between cause (means) and effect (ends). Attending
carefully to the details resembles an orientation toward rules, as is discussed in the
next section; they are both attempts to shape outcomes by controlling variables.
As anyone who has carefully laid plans knows, however, the unexpected has a
way of ambushing you. Even some Westerners think that Western rationalism,
which is our heritage from Aristotle through Voltaire to modern technocrats, has
traveled too far from human experience. The discounting of fate and the belief in
human planning and engineering seem foolish to some Western thinkers.
Western cultures, which have tended to discount the role of fate since the En-
lightenment of the 18th century, nevertheless number millions of horoscope read-
ers. This perhaps is because, in spite of technology and planning and control
mechanisms, life frequently persists in not being orderly. People whose cultures
acknowledge the role of luck in human affairs view the attempt to control life
through planning as merely an illusory and pointless activity.

In Focus

Hong Kong may be the place where practices to ensure good luck and avoid bad luck are most often observed. For
example, a desk in a business office may display a jade carving of a stylized bat (the flying rodent); the word for bat sounds
like the word for prosperity, and the jade carving is a conscious invocation of luck that brings prosperity. (Luck means ma-
terial wealth to the pragmatic Hong Kongese.) Fortune-tellers abound, and businesses consult them about making busi-
ness decisions. Feng shui (literally “wind water”) is the ancient practice of geomancy—aligning sites and buildings in
harmony with the earth’s energy forces so that locations will be propitious. Its expert interpreters typically are called in
when buildings are oriented on construction sites. Owners of restaurants, hotels, and retail businesses also call in feng
shui experts when trade slumps. The experts’ recommendations often include repositioning the manager’s desk or hang-
ing mirrors to deflect the flow of disharmonious influences into the building or partially screening the entrance to prevent
money from running out the door. Feng shui is not always a guarantee of luck, however. A Chinese-American–owned busi-
ness in California was poised to purchase a property adjacent to it when the property came up for sale and the business
had an investor willing to loan the $1.2 million price. However, when a feng shui master expressed strong negative opin-
ions about the purchase, the company did not complete the purchase. Instead, an Armenian businessman bought the
land. Within 18 months the value had soared to $3 million, and the hapless Chinese-American business owners were
deeply chagrined. They needed the property but now lacked the funds to buy it.
Some numbers are lucky in Hong Kong, such as eight (which sounds like the word for prosperity), seven, and three.
The government raises extra money by auctioning off auspicious-number license plates, and in recent years one man
paid $5 million HK (USD $645,000) for a car license plate with a string of lucky number eights. By contrast, the number
four is unlucky since it is pronounced like the word for death. Hotels and office buildings do not have a number four,
and observers say subway passengers are reluctant to pass through gate 44 even during rush hour. Phone numbers
and street addresses with a four in them are also regarded as unlucky by many.
In Taiwan, the Ghost month (the seventh in the lunar calendar) is traditionally not a time of good luck for making an im-
portant decision such as a new business venture. Rather than risk a business loss, some people figure they might as well
wait until the (lucky) eighth month to make decisions. Good luck comes, according to the Chinese, when invoked by
homonyms, such as the fish in the opening case of this chapter. To “have fish” sounds exactly like “to have prosperity.”
 Getting to Know Another Culture 117

Filipino fatalism is summed up in the phrase bahala na, which in Tagalog

roughly means “accept what comes and bear it with hope and patience”; success
in a business venture may well be attributed to fate rather than effort.17 In Thailand,
mai pen rai means “Never mind; it’s fate, and you are not responsible.” In Chinese,
mei guanxi has a similar meaning. It literally translates as “no connection” and
suggests that a person isn’t responsible for the whims of fate.
In India, fate is widely credited for events. It is preordained and can be known
by studying the stars and the procession of the planets. Many companies in India
have their own astrologers who practice the 5,000-year-old jyotish, or astrology.
Businesses consult with astrologers when they recruit new employees to ascertain
whether they are lucky. After all, if employees have no luck as individuals, how
can they be lucky for the organization?
Wearing specific precious and semiprecious stones can counteract the planetary
influence and mediate fate somewhat; many Indians wear specific stones for the
purpose of just such intervention. In Turkey, people, including those engaged in
business, often wear a blue-bead amulet for good luck and more specifically, for
warding off bad luck. It looks like an eye, and is for protection against the “evil eye.”
In Mexico, the unexpected working of fate is well known. A supplier may prom-
ise delivery on Thursday, for example, knowing all the indications are that Thurs-
day will not be possible since he has a full agenda of promised orders for Thursday.
But the supplier may consider that perhaps one of the previously scheduled orders
will be canceled, or perhaps the driver of the delivery truck won’t come to work
that day, making all deliveries impossible, or perhaps it will rain too heavily for
delivery, or perhaps the company placing the new order will change it, which could
alter the delivery day. Fate is always a possible factor. A Mexican student sighed
over a failed exam, “It was my fate, I guess.”
It’s important to recognize that an attitude of “Oh, well, might as well play it
safe . . . you never know” in one culture can be an earnest belief in another culture.
In cultures in which luck is acknowledged to play a role in business, people who
discount luck may not only insult the luck seekers but can also risk being thought
negligent or even threatening to the business.

In Focus

In the United States, observances to ward off bad luck also affect business. Office buildings frequently do not have a
13th floor, for example, and some airplanes have no aisle numbered 13. Then there are the pyramid letters that sup-
posedly bring good luck to the person who doesn’t break the chain (throw the letter away) and bad luck to the scoffer
who fails to send the letter on to more people. (While few executives admit to playing along, nevertheless their names
often crop up on the lists of senders of the chain letters, with comments about not needing any more bad luck.)18
Although most people in the United States (and in other English-speaking cultures as well as Europe) are aware of
“unlucky 13,” not many know it comes from the Last Supper in Christian teaching, at which 13 were present, including
Jesus’ betrayer. Jesus was crucified on Friday, and so combining the two, “Friday the 13th” was thought to be espe-
cially unlucky in Europe in past centuries.
118 Chapter 3

Are Rules to Be Followed or Bent?

This cultural dimension is closely related to uncertainty avoidance versus uncer-
tainty tolerance and to luck. Having rules and following them—and making sure
others follow them too—is a way of diminishing anxiety about the uncertain.
However, whether rules are followed also has to do with what is important in a
society: Is neat, predictable behavior by everyone preferable? Or is having the
flexibility to meet human needs preferable? In all societies, conflicts arise be-
tween what the rules state ought to be done and what is convenient or helpful to
individuals.
For example, take the simple act of crossing the street. In strongly rules-
adhering societies, pedestrians may not cross anywhere they like. They must
use crosswalks that are marked; they must wait until a signal indicates they may
walk (perhaps a white-lit figure walking, a traffic sign used throughout the
world). When the signal changes to a blinking red hand, they must hurry to
finish crossing and must not begin to cross at this point. When the red hand is
unblinking, they must remain on the side of the street. In London, the corners
of some intersections have railings so that pedestrians cannot cross exactly at
the corner but must use a designated crosswalk several feet away. In Canadian
cities, pedestrians are ticketed for jaywalking. But in rules-bending societies—
Mexico is one—people cross whenever they perceive a break in motor (or
bicycle) traffic and wherever it is convenient for them to cross. Although
they have been told that the rule is to cross at a designated crosswalk only
when the signal indicates they may, they cross where and when it suits
them. Rules-oriented cultures are puzzled by this seemingly cavalier attitude
toward safety.

Category 3: The Big Picture

This category of cultural priorities encompasses the big things cultures deal with:
the questions every society tries to answer. Why are we here? What is the signifi-
cance of life? Where did we come from? Where do we go after this life?
The ways in which cultures answer these questions correspond to many of the
beliefs and attitudes we can identify with a particular culture. The answers to these
questions also enable us to understand the motivations for behaviors that belong
to a specific culture.
Religion is a belief system that informs the attitudes and behaviors of members
of a culture, even of those members who do not actively practice the religion. As
a way of learning about an unfamiliar culture, studying the religion(s) is a lengthy
and demanding undertaking. It’s like studying Russian so you can read the street
signs—a worthwhile endeavor but not the first thing you need to know to begin
doing business in Russia. Religions or belief systems come from cultural values
and also contribute to cultural values.
 Getting to Know Another Culture 119

Do Humans Dominate Nature or Does Nature

Dominate Humans?
Nature is the natural environment and natural phenomena that envelop human en-
deavors. At one extreme, humans view nature as an inexhaustible resource. The as-
sumption is—or, at any rate, was— that the land is there to sustain life, especially
human life. The Book of Genesis in the Bible proclaims that after God made man:
God said, “Behold, I have given you every plant yielding seed which is upon the
face of all the earth, and every tree with seed in its fruit; you shall have them for
food. And to every beast of the earth, and to every bird of the air, and to everything
that creeps upon the earth, everything that has the breath of life, I have given every
green plant for food.” And it was so.19

However, archaeologists have shown that ancient cultures, for example those
around the Mediterranean and Aegean seas, cultivated land for crops in ways that
ultimately exhausted the soil, and deforestation caused its erosion. Nevertheless,
the assumption that the earth and all that flourishes in it is for us to use as a God-
given right has persisted into this century. Only in the last several decades has the
argument for environmental protection been put forward seriously as public policy.
Simultaneously, the assumption that the earth is an inexhaustible source of suste-
nance is part of the historical traditions of Judaism, Christianity, and Islam.
In religions such as Hinduism, Daoism, and Buddhism, as well as earlier ani-
mistic religions—religions that honor the spirits of certain trees, rocks, rivers, and
mountains—nature plays a different role. But what role? Japanese culture, which
reflects the value orientations of Buddhism and Shintoism more than other reli-
gions, views nature as a source of aesthetic appreciation. Nature is observed; it is
contemplated and meditated upon just like a painting or an object of sculptural art,
and it is shaped into art in forms such as bonsai—trees that have been carefully
pruned to grow in miniature. Wilderness, actual unadulterated nature, plays virtu-
ally no role in modern Japan. For example, boatloads of Japanese citizens orga-
nized protests against a dam in the Nagara River, but not to protect the river.
Rather, it was to protest the intrusion of a large concrete structure in the carefully
cultivated scenery. (It was also to protest the impact on the fishing industry since
the dam would prevent trout from spawning.) However, Japan has pledged the
largest amount of money of any nation for environmental protection worldwide.
The Kyoto Treaty of protocols called on the nations of the world to agree to protect
the global environment, and it was presented to the world in Japan.
In India, some Hindu sects, such as the Bishois, do not allow the cutting down of
any trees or the slaughter of animals. This is extreme reverence for nature, which has
precedence over human activities. However, piety does not always mean protection
of the environment in that country. The pollution of India’s rivers has been an enor-
mous problem for the environmental protection ministry. It is particularly tricky
when the river is the sacred Ganges with its freight of untreated waste, including the
ashes and remains of cremated people from the funeral pyres of the devout.
120 Chapter 3

The Daoists in traditional China held that the Way, the dao, meant becoming
one with nature and its life energy. Chinese gardens represent mountains, streams,
and caves, all places where spirits dwell that are sources of meditative serenity in
escaping from the pressures of the world. Nature dominates human activity in that
view. But in modern China, traditional gardens are state-owned and constantly
crowded with Chinese visitors who litter. One of the most renowned natural beauty
spots in China, the Three Gorges of the Yangzi River, has been flooded by a great
dam built to provide electricity for the major cities downriver from it, including
the enormous city of Shanghai. Over a million people have been relocated from
their homes along the river, and the project has been decried by the international
community. The traditional value of nature has given way to the need for hydro-
electric power.
Among cultures whose priority is dominating nature, technology often is in-
voked. Technology is concerned with the relationship of people to their natural en-
vironment. All cultures develop tools for survival in their immediate environment.
Very old and very new cultures share this human endeavor; creating tools is some-
thing all cultures have always done and will do. It has been called a particularly
human activity; certainly only humans can create tools by pondering imaginatively
upon other tools.
Members of cultures with advanced tool-making capabilities often assume
their culture is superior to others with less advanced technology. This is not a ba-
sis on which to assess a whole culture; it is only one priority. Present-day technol-
ogy is not necessarily the most sophisticated ever known; some processes used by
ancient civilizations, like mummification of corpses in the Egypt of the pharaohs,
and the firing of certain ceramic glazes in China, cannot be reproduced exactly to-
day. Technology, the relationship of people to their natural environment, is often
tempered and influenced by other cultural priorities.
In places where nature is endowed with spiritual life, such as certain mountains
or rivers, human activity appears to believers to be too insignificant to have a last-
ing impact on transcendental nature. At the same time, scientists in all parts of the
world warn of the damage to the earth from global warming, and propose changes
in behavior to protect the earth. Thus, most cultures have a plurality of complex
attitudes from different value orientations toward nature. That means that busi-
nesses have to contend with complex attitudes toward nature. A foreign firm may
identify an ideal site for a joint-venture manufacturing plant on a river, but the site
may be revered by local citizens as a spot of natural beauty or spiritual signifi-
cance. Who wins—the sacred or the secular—will depend on the priorities of the
culture. That brings us to the next question to ask of a culture.

Are Divine Powers or Humans at the Center of Events?

Who controls the outcomes of activity? Of business? Of life and death? In many
cultures today, deities exist in a sphere of influence that is apart from the secular
world.
Businesspeople may pray regularly to a God they revere but base their business
decisions on factors that appear not to be divinely inspired. Devout individuals
 Getting to Know Another Culture 121

may indeed act on private divine guidance but probably will not publicly explain
their actions that way. This is generally the case in societies that follow a stated
policy of separation of public affairs and private belief. Religious spokespersons
in those cultures are respected but not relied on for decisions. Questions of ethics
may be referred to them, but the decisions rest with those whose responsibility it
is to make the decision: organizations’ chief executive officers (CEOs) or manag-
ing directors, union presidents, newspaper publishers, directors of government
programs, and so forth. Even in societies in which human activity is accountable
for outcomes, such as Great Britain, Poland, Hungary, Austria, and Greece, to
name a few, public reference to a deity in the carrying on of human activity varies
greatly. Canadians, for example, are bemused by the frequency with which lead-
ers in the United States refer to God.
Some cultures see little or no separation between secular life and sacred life.
All human activity, including business, comes within the all-embracing circle of
the divine. A deity is at the center of every occurrence. In Madras, India, a busi-
nessman goes to the temple several times a day and has his company truck blessed
each morning before work begins. In Bangkok, Thailand, a businesswoman offers
food to Buddhist monks early in the morning before opening up her shop, and she
may stop at a street shrine later in the day to pray. In Ankara, Turkey, the day be-
gins with prayers to Allah, and prayers follow at intervals throughout the day in re-
sponse to the muezzin’s call. India, Thailand, and Turkey are all secular states and
guarantee freedom of religion for all, but the practices of the faith of the majority
have an impact on all affairs.
Of course, some nations historically have been theocracies whose governments
followed the principles and regulations of a religion in conducting their activities.
A modern example is Iran. Yet the tendency to see divine power at the center of
human endeavor is widespread.
Let’s examine some of the major world religions.

Hinduism
Hinduism arose in India, which is where most believers are today. It is one of the
world’s oldest religions. Today, around 900 million people follow Hinduism. It in-
cludes the idea of the world as a great system of hierarchies, with the purest at the
top. Living things are reborn in cycle after cycle of death and rebirth until at last
they reach nirvana, a state of eternal peace and bliss. In hierarchies of people,
called castes, the purest are the Brahmin priests. They are not necessarily also the
most powerful, and this can confuse businesspeople from Western cultures. Each
caste carries its own dharma, or duties, and members of each caste are encoded
with aptitudes for certain work.
Traditions are changing in modern India. The caste system means people spend
their lives at one level of society, but in modern India people are seeking upward
mobility. The caste system cannot legally be used any longer in India for hiring and
promoting decisions.
Hinduism has many gods, although the most abstract supreme being includes
them all. The many gods and goddesses help to describe certain aspects of the
122 Chapter 3

supreme being. Different regions of India worship different gods, or perhaps the
same aspects with different names. Tantric Hinduism is a mystical tradition.
Most Hindus do not eat beef because cows are considered to be holy. Cows are
revered as important symbols of the gifts and nurturing of the supreme Divinity.
Some Hindus link cows to Lord Krishna, an important figure in worship and tra-
dition. Injuring a cow can get you in trouble with the law in India, although the
many cows in the streets of crowded cities are a hazard. Many Hindus prefer not
to eat any animal meat, because killing animals involves violence. However, there
is no teaching in Hinduism that says Hindus should not eat meat.
Hinduism has a dynamism that is the result of its embracing many ancient be-
liefs and rituals and also embracing newer religions such as Buddhism. This means
that Hinduism has remarkable diversity. Hindus in western India do not worship
the same god or observe the same holy days as do Hindus in eastern India. Basic
beliefs in one part of the country are rejected in another part. Hinduism has been
called the most accommodating of religions and also has been charged with re-
sisting change.
Hinduism as practiced by many believers covers all aspects of daily life. No
separation exists between worship and work. Millions of Hindus begin the day
with prayer. Often in a family the women draw a symbol on the house doorstep at
dawn. Family members will go to a temple or stop at a shrine for prayer or perform
rites at home every day. Bus drivers have their buses blessed before going to work
in the morning; they stop for blessing at night when they finish work.
The important basis for religious ritual is the distinction between purity and
pollution. Avoiding the impure means performing certain behaviors. Purification
usually involves water, and perhaps a sacrifice, in a ritual. Leading a pure life and
gaining merit through good works and charity are valued.
Hinduism has five basic principles:

• God exists: One absolute divinity that includes one Trinity of the gods Brahma,
Vishnu (Krishna is one form of this god), and Maheshwara (Shiva) in their
several divine forms.
• All human beings are divine.
• Unity of existence is through love.
• Religious harmony underlies Hinduism.
• Three Gs—Ganga (or Ganges, the sacred river), Gita (the sacred script),
Gayatri (sacred mantra) are important.

Hinduism has a number of values that underlie the way Indians and other Hin-
dus view life. These values include truth, non-violence, celibacy and non-adultery,
no desire to possess or steal, no corruption, cleanliness, contentment, reading of
scriptures, austerity and penance, and regular prayers.
Although for many Hindus, the belief system embraces all of life, educated
Indians are likely to separate work and the rest of life, often as a result of West-
ern influence. A businessperson who is a foreigner will have to learn what peo-
ple’s beliefs are in the specific area of India. Gentle questioning will reveal how
 Getting to Know Another Culture 123

willing an Indian is to speak about religious issues and the impact of caste on pro-
fessional life.

Buddhism
Buddhism, whose principal figure is the Buddha, began in India in the 6th century
B.C. A rich prince named Siddhartha Gautama led a sheltered life of luxury
and wealth. One day he met a beggar and one who was dead. He began to un-
derstand the pain and suffering of life, and he left his home to think about suf-
fering and its meaning. He fasted until near death, and finally he sat down
under a bodhi (or boda) tree. That night he was enlightened—that is, he un-
derstood the meaning of life and suffering. He stayed another seven nights un-
der the tree without moving, according to the story, meditating upon what he
had learned. Following his enlightenment, he was called the Buddha, which
means the Enlightened One.
His Four Noble Truths are as follows:
• To exist is to suffer.
• Suffering is caused by desire, which is never satisfied completely.
• Suffering stops when desire ceases.
• The Noble Eight-fold Path is the way to end desire and thus suffering.
The Eight-fold path dictates ethical behavior. It teaches that one should avoid
evil and violence, and think about the temporary nature of the body and its physi-
cal life. Meditation is the complete concentration of the mind on a single thought
in order to be free from desire and ultimately from all feeling.
Buddhism began as a way to reform the religion of Hinduism, since Sid-
dhartha was born a Hindu. Some similar concepts exist in both. For example,
the concept of karma is important to Hinduism and Buddhism. In Buddhism,
karma is the inevitable result of one’s ethical behavior. This cause-and-effect
idea means that doing good toward others in life will result in good karma; good
will come back to you, in this life and in the next life. Similarly, doing bad
things will result in bad karma, and bad things will happen to you in this life
and in the next.
Buddhists believe in a cycle of life-death-rebirth, and the Buddha taught that
the end of this cycle of rebirths is nibbana. Nibbana is similar to the Hindu con-
cept of nirvana, except that it is a state of nothingness. Individuals finally reach a
state of nonbeing. This is the ultimate end of suffering.
Buddhism, with 376 million believers, has two main traditions: Theravada and
Mahayana. Theravada (which means “the teaching of the elders”) is the Buddhist
tradition based on scripture. Believers do not mix beliefs from any other religions
with this tradition, which has written teachings to keep believers clear about what
is and what is not Buddhist. Theravada Buddhism is strong in these countries: Sri
Lanka, Cambodia, Myanmar, Thailand, Laos, and Vietnam.
Mahayana Buddhism is strong in East Asia. Mahayana means “the greater
vehicle” or the broader and more eclectic teaching. (Eclectic means made up of
parts from many sources.) Mahayana Buddhists believe the Buddha intended his
124 Chapter 3

teachings to be combined with other teachings as well. In China, Nepal, Mongolia,

Korea, and Japan, Buddhism combines teachings from other religions such as
Daoism in China. In Korea, Confucian priests share temples with Buddhist priests.
(However, Confucianism is not actually a religion. It is a set of principles for living
in harmony with others in a society. Confucius is the English name for a teacher
who lived in the 5th century B.C. He taught ethical behavior. He never claimed any
divine status or spiritual insights as a prophet.) In Japan, most people worship in
Buddhist temples and in Shinto shrines. Shintoism is a different religion; however,
Buddhism in Japan is generally not opposed to Shintoism, but instead is in har-
mony with it.
Mahayana Buddhists pray to, and ask for blessings from, various representations
of the Buddha or supernatural beings. To many (mainly Theravada) Buddhists,
however, the Buddha, the Enlightened One, is not a god. In fact, Buddhist scripture
does not teach anything about a god. Buddhist philosophers and scholars do not
support the idea of a creator-god or a personal god. Nibbana, the final deliverance
or liberation of the human soul into nothingness, is not the same as passing into the
presence of a divine being. Nothingness (anatta) is non-self and non-substantiality.
In some Buddhist cultures, such as Thailand’s Theravada Buddhism, strict
observances have an impact on business life. Men become monks for some period
of their lives, usually before entering the workforce. Women must never come in
physical contact with monks or their robes but daily offer rice and other food to
gain merit. Monks may be influential in decisions that affect local businesses in
areas such as labor and wages, locations for new businesses, and markets. Ther-
avada Buddhism emphasizes learning not to desire things, and this can be contrary
to a market economy. Yet many countries with Buddhist followers—Thailand,
Taiwan, Japan, and South Korea—became economic dynamos in the early 1990s.
Hinduism is a polytheistic religion—that is, more than one god is worshipped—
and Buddhism has many representations of the enlightened ones, although they are
not gods. In contrast, three other major world religions are monotheistic—meaning
worshippers pray to only one god.

Judaism
Judaism, the religion of the Jews, has fewer followers (14 million) than the others
we are reviewing in this section. It is older than the others, except Hinduism, since
it began before 1200 B.C. Judaism thus precedes both Christianity and Islam,
which make reference to Judaism. Judaism has a strong influence today partly be-
cause it forms a background for both Christianity and Islam, and is one of the three
religions of “the book.”
Judaism is rooted in the Torah, five “books” that make up the first five sections
of the Old Testament in the Christian Holy Bible. Another important Jewish book
is the Talmud, which is made up of the Mishna—the legal teachings handed down
orally about what is right behavior and what is not—and the Gemara, which is a
commentary and interpretations of the Mishna by scholars over centuries. The
Talmud and the Torah form the basis of the practice of Judaism. Practice means
following holy rules.
 Getting to Know Another Culture 125

Differences of opinion exist in Judaism about who exactly is a Jew. Neverthe-

less, people who identify themselves as Jews recognize a tradition that is the his-
tory of the Jewish people.
Most Jews share certain beliefs. Among these are beliefs in:
• One God
• God’s concern for humans
• The concern that one person should show for another
• The covenant, an agreement between God and the people of Israel expressed
through God’s laws for the proper use of the universe
• Belief in the world to come or in the Messiah or the Messianic Age.
Jews who participate in religious observances also share
• Jewish practices
• Jewish holy days and the Jewish calendar
Judaism today is divided into four modern religious movements represented by
synagogue membership: Orthodox, Reform, Conservative, and Reconstructionist.
A small percentage of Jews identify with more conservative movements (such as
Hasidism) that had their origins in 18th-century Europe. A large percentage of Jews
worldwide identify themselves as secular, with no connection to a synagogue or
movement. Some Jews center their Jewish identity on Zionism, the political move-
ment to create and sustain a Jewish nation in Israel.
No matter what beliefs a Jew subscribes to, there is a sense of solidarity among
Jews that is born of the recognition that Jews share a common history, heritage,
language, and culture. They also feel themselves to be a community. The Talmud
expressed its recognition of this commonality in a positive statement, “All Jews are
responsible one for another.” This captures the Jewish value called Klal Yisrael, the
“Community of Israel.”

Christianity
Christianity has 2.1 billion followers, which makes it the largest religion in the
world today. Christians are divided into several main branches: Catholicism, Protes-
tantism, and Orthodoxism. However, Protestants are fragmented into many denom-
inations (groups with teachings that are different from each other). Catholicism
also has subgroups, but the largest by far is the Roman Catholic church, which is
rooted in Western Europe. Roman Catholics are the largest body of Christian
believers. They emphasize the authority of the Roman Catholic Church in a
centralized, hierarchical system. Orthodox Christians have geographical roots in
Eastern Europe and Russia, and they also emphasize the authority of the hierarchi-
cal Orthodox Church.
Christians believe in one all-powerful God who is creator and sustainer of life,
and in Jesus, whom Christians believe is a historical figure who lived about 2000
years ago. Jesus is claimed by believers to have been God incarnate in the historical
person, Jesus, who was an itinerant teacher in Judea, Samaria, and Galilee (all
present-day Israel). He spoke about God as Father and about himself as the Son of
126 Chapter 3

God. Jesus lived in Palestine, in what is now modern Israel. His spoken words were
written down from memory 45 to 100 years after his death, and the four written
versions or books are called, in English, the Gospel. The word comes from the Old
English term gōd spell, meaning “good news.” Jesus was born during the Roman
occupation of the area, and he was put to death by the Roman powers, who saw him
as a political threat, with the cooperation of the local governor and religious leaders.
His death was not the end, however; after three days in a tomb, according to Biblical
accounts, Jesus appeared and walked among people who knew him. He claimed to
have eternal life and furthermore to be the way to eternal life for believers in him as
the agent who connects them to God.
The resurrection of Jesus is what Christians celebrate at Easter, the holiest event
of the Christian year. His followers believe that his resurrection means they also
can, after death, gain entry to God’s eternal presence in the next life. Christianity
is based on the teachings of Jesus. Christians also believe that Jesus will come
again to judge humans, although many variations exist about the details of that
second coming. Christians also believe in the Holy Spirit, called the “giver of life,”
who with God and Jesus forms the Holy Trinity that is worshipped by Christians.
Stories of the life of Jesus include people like his mother, Mary, and his disci-
ples who traveled with him. In the Catholic and Orthodox traditions, they are saints
and have special relationships with God, so they can bring individual Christians
closer to God. In the first century A.D., Paul, later called a saint, was the author of
14 letters, called “books” of the New Testament, in the Christian Bible. His letters
form the basis of much Christian doctrine.
The Catholic Church centered in Rome historically had large economic interests,
but discouraged its priests from involvement in business. Individuals in religious
orders usually renounce personal economic and business endeavors. The Protestant
movement broke away from the Roman Catholic church in the 16th century. Protes-
tants were protesting against
• The hierarchy of the Roman Catholic church
• The idea that only priests could have direct contact with God or read the
Holy Bible
• The wealth and size of the organization
• The teaching that only through the sacred rites of the church and the go-
betweens of Jesus or his mother, could individuals have salvation from eternal
hell—the opposite of heaven and God’s kingdom
The Protestant Reformation emphasized the lack of distinction between reli-
gious and secular life, and thus the way was opened for the merging of the pursuit
of financial goals with spiritual goals. Catholics had kept the sacred quite separate
from secular life. Men and women who dedicated their lives to devotion to God
were—and are today—in communities where they typically give up personal eco-
nomic and business activities. In monasteries and convents even today, days are
spent in prayer, worship services, and meditation.
The concept of predestination, which is prominent in some Protestant denomi-
nations, holds that the elect or chosen individuals are the ones who receive the gift
 Getting to Know Another Culture 127

of grace. Some historians see the linkage of material prosperity to the elect as
a visible sign of God’s blessing, as the linkage that made the development of
capitalism possible and even pious. Wealth came to be taken as a sign of God’s
approval and blessing. Wealth wasn’t to be spent on self-indulgence, however.
Along with the notion of gaining riches went the notion of not spending wealth but
rather saving and investing it—in other words, creating capital. Capitalism grew
in that environment.
Orthodox Christianity refers to the movements that developed in modern-day
Turkey and Greece, and in Eastern Europe and Russia. The church in Rome and the
church in Constantinople (Istanbul) split in the 11th century, and the split is called
the Great Schism. The Orthodox church rejects the political organization of the
Roman church, which has a Pope whose formal statements are “infallible”—unable
to be wrong. Cultural, political, and geographical differences between the Eastern
and Western churches kept them apart. Until the Great Schism, there were five rec-
ognized centers of Christianity: Rome, Constantinople, Alexandria, Antioch, and
Jerusalem. The last four—Constantinople, Alexandria, Antioch, and Jerusalem—
belonged to the Orthodox or Eastern church. That continued until the centers were
dominated by Islam.
The Orthodox church believes it is the original true church, created by Jesus
and his apostles (or followers). They keep the teachings of the original church and
compare new ideas to the traditional ideas, rejecting what does not relate to the
original teachings. The Orthodox faith, taught by Jesus and his apostles, is called
the Holy Tradition. It is the same Christian religion of the Catholic and Protestant
churches in the West, with some variations in interpretations and practices.
The Orthodox church, like the Roman church, has hierarchies of priests.
Bishops are in charge of the priests in a geographical area. Every bishop in the
Orthodox church traces his lineage back to one of the original 12 apostles or
followers of Jesus. Sacraments in the Orthodox church are called Mysteries.
The Orthodox church also has monasteries and convents for people who choose a
life without marriage and who live in a community that prays, fasts, and performs
as many as nine worship services daily.
Orthodox worship is highly formalized, meaning the same prayers and teach-
ings follow in the same order in worship services. The most important service is
the Divine Liturgy. Worship focuses less on the believer and more on God who is
worshipped with awe, repentance, thanks, and praise.

Islam
Islam is the second-largest religion in the world today, with 1.5 billion believers,
and it is the fastest-growing religion. It has more members than Hinduism,
Buddhism, and Judaism combined. Muslims live in countries all over the world,
but Islam is the dominant religion in 19 nations.
In the year 610 in the Western calendar, a trader who worked with caravans
began to receive revelations from God, called Allah in Arabic, through the
Archangel Gabriel. The teachings were in turn delivered orally to Arabs in Mecca
and later in Medina. The withdrawal to Medina in 622 A.D. is called the hegira,
128 Chapter 3

and it marks the beginning of Islam. This was not, according to Muslim belief, the
start of a new religion, but rather the restoration of the original faith of Abraham,
Moses, and the prophets. Mohammed was a descendant from Abraham, and
became the final Prophet.
Many of the revelations or suras transmitted by Archangel Gabriel were memo-
rized by professional reciters. That way the revelations were preserved without
changes. The Prophet Mohammed was illiterate, but the suras eventually were writ-
ten down in the words he had received. The language was Arabic of the 7th century
in the Arabian Peninsula. The collection of the written revelations is the Qur’an, the
holy book of the revealed word of God. Islam spread rapidly through military
conquest in the next two centuries to Africa and the Middle East.
Islam means “to submit” or “to obey.” A believer submits to the word of God
transmitted through the Prophet. A central belief in Islam is that everything, good
or bad, comes from the will of God. A phrase heard throughout the Muslim world
in daily conversation is Inshallah, meaning “let it be according to God’s will.”
God’s will extends to all aspects of life; God is the one creator who is just,
omnipotent, and merciful. Muslims also believe in Satan, who drives people to sin,
and they believe that all unbelievers and sinners will spend eternity in Hell.
However, Muslims who sincerely repent and submit to God will return to a state
of sinlessness and go to Paradise—a place of joy and bliss—after death. The
Qur’an speaks of resurrection of the body.
Muslims everywhere subscribe to the Five Pillars of Islam.

• Shahadah, or profession of faith, summed up in the belief: “There is no god but

Allah, and Mohammed is His Prophet.”
• Salah, or worship: Five times a day a muezzin or mosque official calls Muslims
to prayer. They face Mecca and pray in Arabic, the sacred language. Around
noon on Friday, men are expected to go to the mosque for public prayer.
• Zakat, or giving alms. Muslims are especially taught to give to the poor, wid-
ows, and orphans; the Prophet Mohammed himself was an orphan, at the age
of 6. The zakat is a charity tax, at 2.5 percent of income, but additional dona-
tions are also given.
• Sawm, or fasting. The month of Ramadan, the ninth month of the Muslim calen-
dar, entails 30 days of fasting during daylight hours. Fasting offers the opportu-
nity for contemplating Islamic teachings and the deep values of Islam.
• Haj, or pilgrimage. Every Muslim is asked to make the pilgrimage to Mecca,
the holy city, at least once in his or her lifetime, during the 12th month of the
Muslim calendar. Specific rites take place in and around Mecca, that have spir-
itual meanings. One is to circle the Kaaba, the sacred black stone. Tradition says
it was originally white, but turned black because of the sins of the world.

Islam offers many specific teachings about how to behave. Alcohol, drugs, and
gambling should be avoided, as should racism. Part of the appeal of Islam today as
in past centuries is that members of all races and beliefs are welcome if they accept
 Getting to Know Another Culture 129

the teachings of Islam. Islam affects all aspects of daily life through Sharia, the
laws and rules for religious, social, political, domestic, and private life. Today, Iran
and Libya are two countries that follow Sharia in their national courts of law.
Islam is practiced differently in different countries. Muslims in Indonesia,
Egypt, Saudi Arabia, and Tunisia differ from one another in some behaviors while
remaining obedient to the precepts of the Qur’an. For example, a difference that
is easily observed is the degree to which Muslim women cover themselves in pub-
lic. In some cases, such as in Malaysia or Turkey, Muslim women may not even
wear a scarf or hijab over their heads. In Saudi Arabia, Iran, and Afghanistan,
women outside the home are covered entirely by a burqa or chador.
Some international business practices are at odds with Islamic codes of behavior,
so Muslims in some countries have made adjustments to maintain both Islamic teach-
ings and successful international businesses. For example, Muslims are not supposed
to charge interest or pay interest on loans. By receiving guaranteed interest, an indi-
vidual gets a reward without working for it, and that is prohibited. A return on the
deposit is acceptable only if the individual works for the return, or if the profit or loss
is shared with all depositors. This has given rise to Islamic banking, in which profit
and loss sharing replaces interest earning and speculation. Another different business
practice concerns insurance. Since the will of Allah is omnipotent, Muslims who
carry insurance policies risk being accused of lack of devotion or even defiance of
Allah’s will. In Western countries, Muslims’ daily prayers may be at odds with
business schedules; in Muslim countries, Westerners are often out of step with the
prayer schedules.
Like other religions we have discussed, Islam has two major branches in the
world today: Sunni and Shia. They differ based on whom they regard as the
Prophet Mohammed’s rightful heirs to his power. Sunnis—who won a majority of
followers—claim the Prophet’s disciples are the ones who should carry on the
Islamic faith. Shiites claim a nephew (actually, a very young cousin) of
Mohammed’s, called Ali ibn Abi Talib, carried on the true teachings of the Prophet.
In general, Shiites—who dominate in Iran, eastern Iraq, and are a powerful
minority in other countries—are more conservative than Sunnis in that they say
Islam should return to its fundamental teachings and not compromise with the
modern world. Other smaller branches of Islam exist, such as Ibadism in Oman.

Other Religions
After Christianity and Islam, the third-largest group of people in the world iden-
tify themselves as non-religious. Sixteen percent claim not to belong to any one
religion, although half of those say they do believe in a god. People who say they
do not belong to any one religion exist in every part of the world.
Other religious groups with many members include the worshippers of spirits
of certain landscape features (mountains, rivers, trees, rocks, springs, and pools).
These groups are primarily in Africa, Asia, and the South Pacific. This form of
belief is called animism from the Latin word, anima, meaning “spirit.” Chinese
traditional religion is Daoism (or Taoism), which is based on the belief in an
130 Chapter 3

abstract life force that people can connect with through following the correct
“way” of thinking and acting (dao means “way” or “path”). Other belief systems
we haven’t discussed here continue to be meaningful for people. They are part of
the answer to the question: “Are divine powers or humans at the center of events?”
The role of religion in people’s lives is something businesspeople need to know
about. Most cultures have some procedure for young people to learn about their fam-
ily’s religion. Children in Roman Catholic homes have their first Communion at
about seven years of age. Protestant children in mainline denominations are accepted
as members into a church as teenagers (in some Protestant churches adult members
are received upon Baptism). Jewish offspring have bar mitzvahs and bat mitzvahs at
the age of religious responsibility, usually 13. In Thailand, every male is expected to
spend some time as a Buddhist monk, usually for six months to two years, after com-
pleting his education and before getting married and establishing a family.
One way religion affects people’s lives is in the special days of observance or
celebration. Business travelers need to be aware of religious holidays in other cul-
tures. Friday is Muslims’ holy day, Saturday is the Sabbath of Jews, and Sunday is
the holy day of Christians. That may mean that stores and places of business are
closed on the relevant holy day. Ramadan, the ninth month of the Islamic year, is
a month of fasting from sunrise to sunset—thus it’s not the time to invite a busi-
ness colleague to lunch.
The new year begins for Buddhists on the first new moon of the lunar year, any
time from late January to mid-February, and usually involves several days’ closure
of businesses. (But Thailand, the most Buddhist nation in the world, also celebrates
the new year in April.) In China, the Buddhist lunar new year has been replaced by
Spring Festival, which takes place at the same time: the first new moon of the first
month of the lunar calendar. The festival in China is a national holiday that usually
lasts a week, when many factories close down and the transportation systems are
overloaded with travelers. Obviously, a business visitor to another country needs
to find out when that nation’s holidays are and when people will be available to
meet in order to plan an effective visit.
Businesspeople also need to be very careful not to make assumptions about
other religions based on stereotypes. Whether welcoming a new employee or in-
vestigating the possibility of a business operation abroad, businesspeople need to
keep their minds open and their inquiries gentle.

How Is Time Understood, Measured, and Kept?

Another value orientation that has to do with big questions concerns a culture’s
view of time. Traditional cultures think of time as cyclical. The rhythms of nature
and the cosmos dictate this view: Day yields to night, which in turn yields to day
again; rain follows dry periods that come after rain; the time to plant leads to the
time to nurture, then the time to harvest and the time plants die. Everything fol-
lows a pattern of birth, life, death, and renewal—even daily activity, after which
the weary body sleeps and wakes refreshed. Within the cyclical framework, events
that occur take as long as they take; their duration is dictated by their essential
nature. This view is common among agrarian cultures whose members are closely
 Getting to Know Another Culture 131

attuned to the rhythms of cultivation. The corn will be ripe when it has finished
ripening, in its own time. It is also persistent in cultures that value human interac-
tion and relationships.
Monastic life in the Middle Ages often is credited with the development of a
notion of time as modern European and American cultures know it. The monks
needed to regulate their prayers as a community. If everyone woke up later one day
and earlier the next, the community’s prayer life would be undisciplined and other
activities would be erratic. Monasteries began ringing bells to maintain a sched-
uled, ordered life. An idea took shape: to measure something abstract, intangible,
and defined however you wanted to define it, called time. Time could be given an
identity and then segmented into component parts. Monks gave the segments
names, such as none (noon, the fifth canonical hour and mid-afternoon prayer) and
compline (the seventh and last of the canonical hours and evening prayer).
European monks weren’t the only ones to try to measure time; Mayan priests
had been doing it in Mexico, Guatemala, and Belize for a thousand years. Mea-
suring instruments became more precise as navigational needs grew in Europe and
as astronomy developed. By the 18th century, the instruments used to measure time
and the movement of planets seemed able to reveal the secrets of the clockwork
universe, and time became a commodity.
What does it mean to be “on time”? The definition of punctuality varies from
culture to culture. The cultural priority of time has close links to another priority:
relationships versus results. When people are important and the nurturing of rela-
tionships matters, the time necessary for nurturing activities is flexible.
You may have an appointment in Puerto Rico for 10:30 in the morning; you may
be the second appointment on the other person’s agenda, and you can still be wait-
ing at 11:30. Everybody is so important that no meeting can be rushed for the sake
of a schedule that is imposed arbitrarily. In São Paulo, Brazil, traffic snarls often
delay people from arriving on time at meetings, and although an apology is ex-
pected, lateness is not considered an insult. Both Puerto Rico and Brazil have
strong orientations toward building relationships to do business effectively.
In results-oriented cultures, adherence to schedules is much more important. In
Israel, for example, promptness is a basic courtesy as well as an indication of seri-
ousness about work. In Russia, time is not related to cost or profits, and punctuality—
being “on time”—is an alien concept: “Russians are notoriously not on time, and they
think nothing of arriving long after the appointed hour, which is not considered as
being late.”20
What does effective use of time mean? As we discussed earlier, results-oriented
cultures tend to use a cause-and-effect pattern to understand something and use
planning to control uncertainty. These cultures also have a linear view of time;
after all, a cause-and-effect sequence unfolds in time from the generation of some-
thing to its results. People who view time as a highway progressing from the past
into the future also tend to believe that the past is background and preparation for
the present. They think the present will be the basis for the future. Time is used
effectively when goals can be accomplished speedily. They are very different from
people who see cyclical patterns that repeat themselves.
132 Chapter 3

In Focus

“Time is money.” “Save time.” “Spend time.” “Use time wisely; don’t waste time.” “Make time.” “Take your time.”
These are some of the phrases we commonly use that underscore the value of time as something to be bought and
sold. Employees sell their time to an organization and are paid for their time. Lawyers and consultants of all stripes bill
clients for their time. Workers talk about doing something on the company’s time versus doing it on one’s own “free”
time. Telecommuting employees who work at home using a computer modem say “my time is my own,” suggesting that
they “own” their work schedules and can work when they please, not only when the organization’s doors are open to
the public. The opposite case is an employee whose hours are “owned” by the organization.

People who view time as linear, and as divisible into chunks that have a market
value, measure time in relatively short periods: minutes, hours, and days. In cul-
tures in which time is expansive, measurements are in weeks and months, as in
Russia, where patience has a high priority.
Time can be monochronic (one-dimensional time) or polychronic (multidi-
mensional time). Monochronic time is linear. People are expected to arrive at work
on time and work for a certain number of hours at certain activities. Then, after
resting for an appointed period, they are expected to resume work activities. In
some monochronic organizations, being even a few minutes off schedule is not
acceptable.
In polychronic cultures, time is an open-ended resource that is not to be con-
strained. Context sets the pace and rhythm, not the clock. Events take as long as
they need to take; communication does not have to conclude according to the clock
or arrive at a closure of the business at hand. Different activities have different
clocks. The idea of monochronic or polychronic time can be related to a previously
examined cultural dimension: whether tasks are done serially or sequentially.
Monochronic cultures do one thing at a time. Polychronic cultures have several
time-schemes running simultaneously; people in these cultures can be observed
doing more than one thing at a time to accommodate more than one clock. Mod-
ern multitasking is also doing several things simultaneously, and is talked about
primarily in monochronic cultures. It occurs because of the value of efficiency and
timesaving—the idea of being able to manage time effectively. This isn’t the same
as a polychronic approach, where doing more than one thing at a time occurs
because that is how activities unfold. Polychronicity isn’t planned and managed.

Is Change Positive or Negative?

The culture of the United States thinks of change as desirable and positive. At the
nation’s founding, the new was thought to be better than the old. In advertising
slogans today, new means better products and services. Change means moving
forward in linear time toward ever more desirable achievements. The business cul-
ture of the United States puts a high priority on the accomplishment of goals, the
accumulation of wealth, the efficient use of time to do this, and a positivism that
 Getting to Know Another Culture 133

claims that tomorrow will be better than today just as today is better than yester-
day. When change has a high priority, the members of a culture express optimism
about the future.
Traditionally, agrarian cultures typically view change in the opposite way.
Since people who live on the land cannot move away and take their land with them,
they tend to develop stable, static communities. They see the cycles of planting and
harvest, rain and sun, day and night at a very close view. They also think of change
as negative. It means disruption to the established patterns of life. They believe that
yesterday was better than today and tomorrow will be worse than today. Products
that call themselves new are not to be trusted.
Russians, for example, view change as negative. They expect things to be bad
in the present and worse in the future, and in part this is a posture that enables them
to face change and uncertainty stoically. There is justification for pessimism. After
all, historically the “best and brightest have traditionally been banished. In Old
Russia, independent thinkers were exiled to Siberia . . . Stalin’s purges of the 1930s
further decimated the intelligentsia, and today many of Russia’s best are being lost
through emigration.”21 Endurance is one of Russian culture’s top priorities.
Clearly, the priority involving change has a close connection with an earlier
one: uncertainty avoidance. Change always involves uncertainty about what will
result, and cultures that view change negatively are typically keen to avoid uncer-
tainty. The old ways are best; the familiar is trustworthy even when it is known to
have faults. Yesterday is often endowed with a golden glow and thought of as
superior to today; the past may come again one day if things stabilize, and we may
even return to the old ways. Cyclical views of time are consistent with anti-change
cultures.
Cultures that are conscious of their long histories cannot easily understand
severing connections to the past or wanting to do so. Businesspeople from
younger cultures such as the United States or Australia are often impatient with
the clinging to old ways that they observe in other cultures. They operate with
cause-and-effect logic and see that to accomplish a particular goal (an orientation
they value highly) new ways (or products or procedures) are helpful. They cannot
understand why others balk at adopting something new.

Is Death the End of Life or Part of Life?

The last priority we’ll consider in this chapter for posing questions of a culture in-
volves final things. Some cultures view death as the end of life, a quenching of the
light. It is dreaded. Some cultures view death as another phase in life, a necessary
step in the pattern of life. It is accepted.
Hindus believe in reincarnation, and in India’s burning ghats, bodies are cre-
mated and sent on their journey toward another birth. People are reincarnated over
and over in a cycle that can’t be numbered. Your status in life is the result of how
you lived a former life, and your present life will affect the next life. When a loved
one dies, the loss is mourned just as it would be in Copenhagen or Cairo, but the
mourners know the soul will be born again. In Russia, death is familiar; it is fought
and welcomed, in a contradictory attitude. A former American foreign service
134 Chapter 3

officer quotes a modern Russian poet’s response to his question about what Amer-
icans should know to understand Russians better:
In our cold winter each opening of the door is a repetition of dying. Russians
do not fear death because every day is a struggle. It is a pity to die, and a
pity not to die.
—Mark Davydov22

Death is not such an enemy as it is in the West.

In Holland, death is sometimes embraced by appointment, since doctors may
legally assist terminally ill patients in dying. This enables patients to die with
dignity rather than dying in slow stages with increased discomfort and perceived
humiliation. There is a relationship between this death by appointment and control
over the unknown; uncertainty avoidance and a preference for planning and doing
correlate with this approach to death.
Many cultures have religious beliefs that teach death is the only way to join the
gods or God. In Islam, life after death is freedom from obstacles to the enjoyment
of God’s gifts. A Muslim’s heaven is experienced through the senses. A Christian
also looks forward to heaven after death, to joy and an absence of pain, but the
Christian heaven is less clearly defined than is the Islamic heaven. Attitudes to-
ward dying vary widely among members of Christian cultures and among mem-
bers of Islamic cultures.
Funerals also mean different things in different cultures. In Nigeria funerals are
very important. Unless you are dying yourself, you are expected to attend. It is
thought that the deceased will reward you for your presence. In the Māori culture of
New Zealand, funerals typically involve a three-day observance (tangi), although for
royalty and other important figures, the tangi can last a week. Employers recognize
the need for relatives to be absent from work for this occasion. Family members sit
around the departed loved one and receive visits of condolence from relatives and
friends in the community. People tell stories, pray, and sing while shedding tears to-
gether. After three days the body is buried, and the community has had its relation-
ship bonds affirmed by the experience of shared grieving.
Funerals are dreaded in Asian cultures, where even the suggestion of death or
funerals is considered rude. That’s why you should never give a clock or watch to
a Taiwanese as a gift (a reminder of the inevitable end of one’s life span) or a bell
(rung in funeral ceremonies) or white flowers (white is the color of mourning). You
must even avoid using the word death. In Hong Kong recently, many people were
upset when clairvoyants charged that ghosts of dead children had appeared in TV
commercials. Reminders of death are impolite at best and unlucky at worst. In
Japan, it is intolerably rude to stick your chopsticks straight up in a bowl because
then they resemble the incense sticks burned in urns at funerals.
Some take a proactive position toward death, however. In Singapore, as in other
Chinese cultures, funeral objects such as televisions, cars, and money, all made of
paper, are burned to accompany the deceased into the world of the dead and to
ensure a comfortable existence in the next life. In China, expensive tombs have
been created, some for living people who have not yet been able to use them.
 Getting to Know Another Culture 135

Businesspeople need to be aware of the cultural priority put on death and the ob-
servances that attend it. Chapter 1 gave several examples of different expectations work
colleagues may have toward a co-worker who has lost a family member. The expecta-
tions for how the mourning friends and relatives will act differ from culture to culture.
In many cultures, mourners wear a black armband or black clothing to signal to
others that they are grieving the loss of someone and should be treated with
respect. The traditional color of mourning in China is white, however, as it is in
India. (Brides in those cultures traditionally wear red.) Mourning is signaled with
a white armband or rosette in some countries, and with white flowers.
Special observances besides the funeral service may include a wake or a special
feast where mourners come together to solidify new social relationships without
the departed one. This is true in such divergent cultures as Catholic Ireland, with
its wakes, and Buddhist Taiwan. These two different cultures share characteristics
common to high-context cultures, however, where the meaning of the individual is
derived from the network of relationships into which an individual life is woven.
The next chapter deals with cultural priorities concerning relationships, and dis-
cusses the two remaining categories of questions you can ask to learn what you
need to know about a culture. It concerns the self and the self in relation to others.

Summary This chapter introduced the approach of asking questions in order to understand
cultures.
Asking questions involves identifying where information can be found. An-
swers may be general, and to be useful, they need to be generalized. Questions can
be posed in five categories; the first three are Thinking and Knowing, Doing and
Achieving, and the Big Picture.
The first category of questions is Thinking and Knowing, which covers the fol-
lowing dimensions:
• Does knowing come from concepts or experience? Some people truly know
something only when experience has taught them; without experience, they
merely know about something. For others, knowing comes from conceptual un-
derstanding.
• Does learning come from asking questions or mastering received wisdom? In
many cultures, the acknowledged authority gives knowledge, and one knows
when one has mastered what the textbook or teacher says. In other cultures, go-
ing beyond what one has been given is how one truly knows something.
• Does knowledge have limits? In some cultures, not everything is knowable.
Other cultures have the idea that everything can be known if the key is found.
• How do people reason? Western cultures use a cause-and-effect pattern of
thinking. Other cultures use different patterns. The balance of complementary
opposites, as illustrated in the yin-yang symbol, is one example.
The second category of questions covers Doing and Achieving—how people
understand their actions at work.
• Is doing important or is being important?
136 Chapter 3

• Are tasks done sequentially or simultaneously? Some cultures view one who
works efficiently as one who accomplishes several things at once. Other cul-
tures value a one-thing-at-a-time approach as the most efficient.
• Do results or relationships take priority? Relationship-oriented cultures tend to
be collectivistic. The relationships that connect people in networks are more
significant than the tasks people accomplish. Results-oriented cultures value
the outcomes of actions, especially measurable outcomes, as what matters at
work and in life.
• Is uncertainty avoided or tolerated? People who are uncomfortable with un-
certainty tend to stay with their employers and follow established procedures at
work. People who are able to tolerate uncertainty with lower levels of anxiety
may attempt new things in their professional lives.
• Is luck an essential factor or an irrelevance? Luck or fate or destiny plays a
large role in cultures in which people recognize that their role in achieving suc-
cess has less effect than do forces outside themselves. In other cultures, out-
comes are not left to luck but are considered to be largely controllable by human
effort.
• Are rules to be followed or bent? In places where relationships are primary and
power distances are great, rules may be bent to serve those more important val-
ues. In places where results matter, rules are viewed as important to facilitate
results.
The last category in this chapter is The Big Picture. This section deals with the
“big” questions cultures answer:
• Do humans dominate nature or does nature dominate humans?
• Are divine powers or humans at the center of events? Belief in divine beings
underlies the values, behaviors, and attitudes of many people of different cul-
tures. Two major polytheistic religions are Hinduism and Buddhism. Three
other major world religions—Judaism, Christianity, and Islam—share roots
and a belief in one deity.
• How is time understood, measured, and kept? Cultures differ in attitudes to-
ward time and how it should be observed. Some view time as cyclical,
whereas others view it as an unrolling continuous line. Some cultures treasure
time as a commodity; others use it as the flexible medium in which activities
take place.
• Is change positive or negative? New may not be positively received in tradi-
tional cultures. Old may not be a word of approval in cultures that embrace
change.
• Is death the end of life or part of life? How death is viewed and how that view
affects business varies from culture to culture.
The last two categories of questions to pose of an unfamiliar culture follow in
Chapter 4: “The Self and Social Organization.”
 Getting to Know Another Culture 137

Notes 1. Geert Hofstede, Cultures and Organizations (New York: McGraw-Hill, 1991).
2. Fons Trompenaars, Riding the Waves of Culture (Burr Ridge, IL: Irwin, 1994).
3. Andre Laurent, “The Cultural Diversity of Western Conceptions of Manage-
ment,” International Studies of Management and Organization 13, no. 1–2
(1983), pp. 75–96.
4. Shalom H. Schwartz, “A Theory of Cultural Values and Some Implications for
Work,” Applied Psychology: An International Review 48, no. 1 (1999),
pp. 23–47.
5. Robert J. House, Dr. Paul J. Hanges, Dr. Mansour Javidan, and Peter Dorfman,
Culture, Leadership, and Organizations (Thousand Oaks, CA: Sage, 2004).
6. Edward Hall, Beyond Culture (New York: Anchor Press/Doubleday, 1976),
pp. 85–128.
7. Edward Hall, Beyond Culture.
8. Sheila Ramsay, “To Hear One and Understand Ten: Nonverbal Behavior in
Japan.” In Intercultural Communication: A Reader, 4th ed., Larry A. Samovar
and Richard E. Porter, eds. (Belmont, CA: Wadsworth, 1985), p. 311.
9. Ed Schwortz, www.shroud.com, retrieved on July 24, 2006.
10. Robert B. Kaplan, “Writing in a Multilingual/Multicultural Context: What’s
Contrastive about Contrastive Rhetoric?” The Writing Instructor, 10, no. 7
(1990), p. 10.
11. Linda Beamer, “Toasts: Rhetoric and Ritual in Business Negotiation in Con-
fucian Cultures,” Business Forum (Winter 1994), pp. 22–25.
12. Roderick McLeod, China Inc.: How to Do Business with the Chinese
(New York: Bantam Books, 1988), p. 72.
13. Richard Nisbett, The Geography of Thought (New York: Free Press, 2003).
14. Barbara Johnstone, Repetition in Arabic Discourse (Philadelphia: John
Benjamins, 1991).
15. Yale Richmond, From Nyet to Da: Understanding the Russians (Yarmouth,
ME: Intercultural Press, 1992), p. 45.
16. John C. Condon and Fathi Yousef, An Introduction to Intercultural Communi-
cation (New York: Macmillan, 1975) p. 137.
17. Culturgrams, Vol. II (Provo, UT: Brigham Young University, 1984).
18. Mike Clowes, “Superstition Extends Yet to Top Levels,” Pensions & Invest-
ments, 15 (April 1991), p. 14.
19. Genesis 1:29–30, rev. ed.
20. Richmond, p. 122.
21. Ibid., p. 43.
22. Ibid., p. 40.
C H A P T E R F O U R

The Self and Groups

Sheila Graham is a businesswoman from New Zealand whose work in sales requires her
to travel. Her company makes quality stainless steel food-processing equipment. Today her
marketing effort has brought her to Warsaw, Poland. She is meeting at 1:30 p.m. with Jan
Zamoyski, the vice president of a firm with which she has been corresponding about the
possible purchase of several mixers. Sheila wants to make the most of her visit, which is
expensive for her company, so she’s learned what she can about the market in Poland for
food-processing equipment and even something about the financial picture and how inter-
national transactions are usually carried out. She doesn’t know much about Jan Zamoyski
except that he is in his fifties, is at least 15 years older than she is, and speaks English.
She is a little unsure how to take his behavior when she introduces herself, and he takes
her proffered hand and kisses it instead of shaking it. Is this an attempt at humor? Should
she laugh or take it seriously? Then he compliments her on her appearance. This is unex-
pected too; after all, she arrived early that morning and knows she could look better. She
doesn’t want to be perceived as unprofessional because she is a woman, so her manner
becomes a bit more distant. Jan uses formal address, last name and not first name. Sheila
uses Jan’s first name, the way she would in New Zealand, and that makes her feel she has
things under control as an equal—a professional woman. Jan has an odd, almost comic,
way of asking if she’d like a coffee: “Would the lady drink a coffee?” For a second she won-
ders what lady he means, and then she realizes he’s addressing her.
After a little conversation about her flight and the weather, Zamoyski begins to tell her
about Warsaw and makes references to various historical events that are obviously vivid to
him. Sheila wants to talk about their business together but isn’t sure how to introduce it into
the conversation. He seems to want her to respond in sympathy to his rather emotional state-
ments about Poland’s history and heroes. She doesn’t know anything about Polish heroes, apart
from the fact that a Polish cardinal became the former Pope John Paul, and since she isn’t
Roman Catholic, she doesn’t feel comfortable entering into a discussion about him. Instead, she
replies that the language is very unusual to her ears. He promptly asks her to repeat a series
of sounds she knows she can’t imitate (“W Szczebrzeszynie chrzaszcz brzmi w trzcinie”) and
tells her that being able to say that was once a test of true Polish identity.1 Again, she can’t
decide if this is a joke or if it’s completely serious and some kind of test of her.
Zamoyski next produces a small gift for her, and Sheila experiences new doubts. Should
she have prepared a gift, too? Should she accept this gift, not knowing exactly what it
means? She doesn’t want to be rude, but doesn’t want to look like she can easily be bribed
139
140 Chapter 4

either. She takes the small object but doesn’t unwrap it. Now she decides to try to intro-
duce the subject of the purchase and sale of equipment. “I’ve brought a breakdown of our
offer for you to look at,” she says, taking papers out of her briefcase.
But Zamoyski’s response is to talk instead about the lunch he proposes they now enjoy.
Sheila ate before she came to the meeting, assuming Jan would have already had lunch by
1:30 p.m. She puts her papers back in her case. He escorts her to a new dining room on the
company grounds, where he introduces her to six other people, and they sit down to an
enormous meal. Sheila protests that she can’t eat, but her host keeps offering her food. He
also offers her vodka, along with a toast to the relationship they are starting. Sheila doesn’t
like straight vodka but sips a little of the cold alcoholic beverage from her glass to be polite
while the others all down their glasses in one gulp. The glasses are refilled immediately.
She picks at the abundant food and tries to ask questions of appropriate persons at the
table to facilitate the sale of her company’s equipment. She doesn’t have much time in
Warsaw and needs to make the most of this contact opportunity.
Sheila finally manages to give specific details about the sale to the young man on her
left. He listens attentively. The meal finally ends, and Zamoyski has another engagement,
so she goes back to her hotel. When she phones Zamoyski the next day, she learns he can-
not meet with her and regrets that the sale will have to be postponed indefinitely. She
knows the price and quality of her company’s products are good; she knows the Polish com-
pany is looking to buy. What went wrong?

In Chapter 3, we considered question categories of Thinking and Knowing, Doing

and Achieving, and The Big Picture. Now we consider how people view themselves
and how their cultural priorities affect the way they interact for business purposes.

Category 4: The Self and Self-identity

In the Western world, awareness of the self comes out in language use. For exam-
ple, in English (the same is true in German and French) if a person refers to
himself/herself, she or he uses I. Obviously, we adapt our language to circumstances
and the person or groups we are talking with. However, it seems that regardless of
circumstances, we use the first-person pronoun I to refer to ourselves. An excep-
tion to that is a parent who tells a child: “Mother told you . . .” In that instance, the
parent pulls rank. In Japan, the situation is very different. The specific first-person
pronoun (I word) depends on the person one is talking with. There are many dif-
ferent words for the first-person speaker. This would indicate that the identity
depends on circumstances and linguistically adapts to the environment. Culture
shapes how people think of themselves and their self-identity.
One way to understand identity is as something formed in part by the self and
in part by group membership. This approach to understanding identity recognizes
that the self has many identities—daughter, wife, mother, nurse, member of a spe-
cific family—and so on. These identities are important according to values in the
culture. People communicate as a result of their sense of self—in other words, their
self-concept. The idea of self-concept is important to the discussion of who we are
in terms of our culture. Self-concept can be formed in three general ways.
 The Self and Groups 141

Self-identity—A Social Psychology Approach

One way we can think about self-concept is that we build up our sense of self from
childhood, based on experiences we have had that contribute to our sense of self.
These experiences are, for example, when we find out we are good at doing some-
thing, or when our sense of who we are is challenged, or when we recognize our-
selves in other people’s words and actions. We learn about our own identities in the
context of group membership. Other people encourage, criticize, and comfort us.
We try out ideas about ourselves, and see what reactions we get. We test different
interests—some we develop for a lifetime and some last only a short while. We
ponder different values. We develop a variety of abilities. Our sense of self grows
in jumps, not in a continuous smooth curve. When we compare ourselves to oth-
ers and the identities which they present to the world, we refine our self-concept.
Various contexts—home, family, religious gatherings, work environments, and
so on—give us a chance to develop multiple identities.

Self-identity—A Communication Approach

Another way to understand self-identity is through communication. The communica-
tion approach builds on the self-concept and multiple-identity base of the social psy-
chology approach just discussed. The difference is that the communication approach
includes the important principle that identities are expressed in communication. A self-
concept is co-created through communication. For example, think of the way you
communicate with various people in your life. Do your teachers, friends, younger sib-
lings, or merchants all see you as the same? Probably not. Do they all see you as you
see yourself? Probably not. Some scholars see communication with different people in
different contexts as the process of the self creating different identities.
Identities are communicated in core symbols, labels, and norms. For example,
a core symbol of a culture may be hospitality in the form of a hot coffee. Arab cul-
tures have this symbol. Labels are the terms for categories of core symbols, and
the way we talk about groups of people: Arab is a label. Norms of behavior are the
expectations for how people express their identity. For example, in many Arab cul-
tures, the offer of coffee should be recognized as an offer of welcome and hospi-
tality, and the coffee should be accepted by a visitor who does not want to give
offense. Arabs are expressing an identity through a normative behavior that com-
municates who they are.

Self-identity—A Critical Approach

The critical approach to self-identity uses history, economics, politics, and public
discourse. That is, the critical approach holds that self-concept is formed against
the background of large social contexts. Power relationships are important in these
contexts. Some of the labels that we apply to ourselves (and others) come from
large social contexts. For example, we may call ourselves minority or dominant
culture members or natives of a particular culture.
Sometimes members of other cultures use negative language we do not like in
order to identify who we are. Racial and ethnic slurs are an example. The point
142 Chapter 4

about the critical approach is that many of the ways we are identified by others be-
come part of our self-identity, both positive and negative. And many of the labels
from these social contexts have to do with power and its distribution in a society
and in the world.
The critical approach recognizes that forces in societies are always changing.
In other words, social forces are dynamic. Therefore, the critical approach to
self-identity says that identities are always changing. For example, since the
formation of the European Union, the label “European” has changed its meaning.
Today it means a member of a multinational society that has a common cur-
rency—the Euro—and common laws, and has a European identity. Before the
European Union, being European merely meant living in the geographical area
called Europe.

Self-identity and Cultural Value Dimensions

We now consider culture’s impact on self-identity in more detail, using the social
psychological approach. That is, we take a look at a number of ways a culture’s val-
ues affect the development of the self-concept. The value dimensions or priorities
in a culture may appear to be static, but we can keep in mind the dynamic and con-
tinuous creation of self-identity in communication acts. We can also keep in mind
that self-identity is changing as social forces change.

Self-construal: Independent and Interdependent

Self-construal is how we see ourselves in relation to others, with regard to feel-
ings, thoughts, and behavior. We construe or structure an image of ourselves that
influences how we relate to others. The term came from scholars’ comparison of
Western and Eastern views of self,2 and how culture affects how we see ourselves
in relation to others. In general, Western cultures have an independent self-
construal, and Eastern cultures have an interdependent self-construal.
In cultures that value independence, the idea of the self includes making deci-
sions for one’s own life, taking care of oneself and not relying on others, and taking
responsibility for one’s own actions. The individual sees himself or herself as
unique. Heroes in independent-self cultures are individuals. “I can do it myself ”
is a statement from a self that values independence.
For example, in the dominant culture of the United States, members have
independent ideas of self. Images of this independent self are everywhere. An
example exists in the cowboy heroes of the historical “wild west” who are
strong and independent, who ride their horses where and when they choose, and
who fight alone against independent enemies—and of course, win. The image
of the independent cowboy is very strong in U.S. culture, even though the his-
torical period in which cowboys might have acted this way lasted only about
20 years.
The idea of the independent self predominates in individualist cultures. At the
same time, members of these cultures also have interdependent self-concepts, but
the independent self is in the majority of images.
 The Self and Groups 143

In contrast, many cultures see the self as interdependent. In cultures that value
interdependence, the self consults with others before making decisions; one relies
on others for one’s sense of well-being, and one takes responsibility for meeting
the needs of the group before satisfying one’s own needs. The individual sees him-
self or herself as part of a large network of social relationships, and others in that
network take responsibility for the individual. The heroes of interdependent-self
cultures are group members. “I will do it for all of you” is a statement from an in-
terdependent self.
Japanese culture gives a good example. In Japanese history, the heroes who
were most like the American cowboy were samurai. Samurai were a highly trained
social class of superb swordsmen who served a lord by fighting his enemies.
Above all, they were loyal to their lord (called daimyo). According to the Japanese
image of samurai, they lived by a strict code of behavior (as did the cowboy, ac-
cording to the American image). They fought together with honor for their daimyo.
If the daimyo lost his life, the samurai became non-persons, and were called ronin.
In a famous account called The 47 Ronin, a lord lost his life because he attacked a
court official and for honor’s sake had to commit suicide. His ronin then killed the
court official in revenge for their lord’s life. Then the ronin themselves had to com-
mit suicide to satisfy the honor of their lord.
The idea of the interdependent self predominates in collectivist cultures,
although of course the independent-self idea also exists in collectivist cultures.
Culture also shapes the way the self communicates. A person who has an inde-
pendent self-construal uses communication to present the self and further the
self’s goals. A person who has an interdependent self-construal uses communica-
tion to further the harmony of the group and the relationships among its members.
The following cultural priorities explore the way culture affects the idea of self
in business interactions.

The Basic Unit of Society: The Individual or the Collective?

In cultures in which the individual is a unit of society, a single person can earn credit
or blame for the outcome of an organizational project. Individualism values individ-
ual achievements, failures, and rights over the collective. In cultures in which the
collective is important, credit or blame goes to a group. Collectivism values the group
above the individual, and individuals have a responsibility to the group that super-
sedes individual needs or rights. As has already been suggested, the United States and
Japan are among the least similar cultures in the individualism–collectivism cultural
dimension.
When businesses in the United States first began exploring the reasons for
Japanese success and ways to market products in Japan, they encountered these
differences. In Japan, an individual is a fraction of a unit; the group is the funda-
mental unit of society. An oft-quoted proverb in Japan is “the nail that sticks up
will be pounded down.” Any assertion of individualism—valuing the individual
over the group—is regarded as a negative threat to the group and will result in
punishment by the group.
144 Chapter 4

Individualism in Japan is tantamount to selfishness. Japanese collectivism

means that Japanese managers are closely knit to the departments they manage,
which are also highly cooperative and closely knit. Organizations can count on the
loyalty and wholehearted commitment of their employees. Organizations have
their own songs, uniforms, and retreats for building loyalty and groupness.
Companies in the United States motivate employees by offering individual re-
wards. They cannot count as much on employees’ loyalty to the organization or the
work group as Japanese companies can because competition in the United States
job market means that employees will go where they feel they will have the best
personal success. Individuals in other Western cultures (Canadian, Dutch, French,
English, and German, to name a few) also make career choices on the basis of per-
sonal needs and goals. If a job offers insufficient opportunities for advancement,
for example, or a personality conflict arises with a superior, or the tasks become
boring, or the employee’s lifestyle changes, then an ambitious individual probably
will move to another job.
In Japan, however, these situations may not be reasons for a move. Changing
employers is still an admission of failure and brings loss of face, both to the one
who could not cooperate in harmony with the organization, and to the organiza-
tion for spawning such an antisocial misfit. In Japan, if personal goals are not met
by work, the employee is often persuaded to change goals. When lifestyle changes
create new needs, the superior expects to be told and to share the concerns, be-
cause the boss is owed the information and is expected to take an interest in the
family life of the employee. When the organization demands overtime, employees
respond eagerly. In many organizations in Japan, employees come in for overtime
work even when they have little actual work to do just to show their solidarity with
other members of the corporate group.3
Throughout Asia, in varying degrees, collectivism is celebrated. This is not
surprising, considering the high value given to relationships in those cultures.
What matters is the close-knit interlocked human network. Individual recogni-
tion is less important, particularly if it means a penalty or some kind of ostra-
cization. Harmony among the interdependent group members is the key, and it
takes priority over nearly all other values. In collectivist cultures in which inter-
dependence is valued, individuals do not seek recognition and are uncomfortable
if it is given. The reluctance to be singled out, even for praise, can present ob-
stacles to a manager who is trained to motivate subordinates by offering personal
rewards. A study of joint ventures in Shanghai in 1997 revealed that the Chinese
are motivated by a sense of belonging. That sense is especially motivating when
it is combined with prospects of long-term employment. “Relationships facili-
tate results” is the way one interviewee put it.4 The motivational power of
belonging is also strong in many Latin American cultures. One way a sense of
commitment to long-term relationships is cultivated in Mexican companies is
through company functions, such as family picnics, in which everybody is in-
cluded. Employees feel they are valuable to the company when they and their
families are invited to socialize together.
 The Self and Groups 145

In Focus

In individualist cultures, people make decisions on their own, without consulting others. An example is the decision a
student makes about what to study at university, and where to apply to study. Here is an example: A student—let’s call
him Mel—has been thinking about what to study and has been gathering information. He makes his decision and
announces to his parents that he will study history or maybe law (that would be at the graduate level in the United
States). He also has decided where to go to study, and tells his parents. If Mel (short for Melvin or Melville, perhaps)
lives in Canada, his parents are glad to hear what he has decided, and ask what he will need to do to achieve his goals.
They may ask about how much it will cost, and what sort of job he plans to get to help pay for his education. Canada’s
culture is individualist.
If Mel (short for Melek, perhaps) lives in Qatar, the story is different. Melek and his parents and older brothers
and uncles and especially his grandfathers will discuss his education choices and will make a decision. Mel
may or may not be present during the discussions. His father will tell him what the family has decided. If extra
money must be found for his education, his family will provide it. Qatar’s culture is collectivist.

A characteristic of individualist cultures is competitiveness; the corresponding

value in collectivist cultures is cooperation. In the United States, where individualism
is valued, competition is the means for determining the best. When individuals com-
pete against one another, inevitably there are many more losers than winners, but the
competitiveness principle asserts that as long as you can enter into the competition
again and again, you too may win one day. In other words, consolation for losing lies
in having a chance to compete. The United States has passed legislation for equal
opportunity that is based in part on the value of having a chance to compete.
Surveys of large samples in national cultures, both by Hofstede and more
recently by the GLOBE project, have shown that Japanese rank high on a com-
petitiveness dimension (called “masculinity” in Hofstede’s research and “as-
sertiveness” in the GLOBE project).5 At first, this is hard to understand. After
all, Japanese are strongly collectivist. How can they also be competitive?
The answer may lie in the willingness of Japanese groups to compete. A drive
for excellence is an evident characteristic of Japanese culture. Where achievement
can reflect well on the group, or on the Japanese as a nation, Japanese individuals
focus and work very hard.
Collectivist cultures in general tend to include everyone in the collective when a
success is achieved, rather than singling out winners. At Sony, for example, depart-
ments form teams whose members are in a closely bonded relationship. Exclusivity
comes at the team level, where other Sony departments are not part of the collective.
Some loyalties, of course, are divisional or organizationwide. Foreign managers of
branch operations need to look at motivation issues carefully in terms of whether in-
dividualism or collectivism is more important in an organization’s host culture. Man-
agers of multicultural workforces also need to consider what motivates employees of
different cultural backgrounds. So far, this discussion of individualism–collectivism
146 Chapter 4

has contrasted United States and Japanese cultures to illustrate the concepts related to
individualism–collectivism as a dimension of culture.
In both Hofstede’s (1981) and the GLOBE (2004) studies, the surveys result in
mean scores that represent the way the culture in general reports its attitudes. They
are studies of whole cultures. Behavior by individual members of a culture and the
values they hold are not necessarily identical to the findings of whole-culture stud-
ies. Furthermore, people in all cultures may be individualist in some contexts
and collectivist in others. It’s important to remember that the research looks at
averages from data to draw generalizations about a national culture. The way
individuals actually behave does not reflect the generalizations in every instance.

In Focus

New Zealand scores very high on Geert Hofstede’s individualism scale—nearly 75 compared with a world average of
about 40.6 Other scholars, along with Hofstede, have explained what individualism means for communication: low-
context communication—direct, unambiguous, explicit—is preferred in individualist cultures while high-context
communication—indirect, implicit—is preferred in collectivist cultures.
New Zealand’s history of colonists from Great Britain (the majority) and Europe furnishes some reasons why it is
individualist. Early settlers in the mid-19th century worked on the land and sea as farmers, miners, foresters, and
fishermen. They needed to be self-reliant, since the journey “home” to Britain was six months by sea. Traits such as
resourcefulness, hardiness, common sense, and discipline helped them achieve success.
But there is a great complexity in Kiwi culture. The British and Europeans were not the first settlers; 800 years ear-
lier the (Polynesian) Māori established societies on the islands of New Zealand. Māori culture has chiefs (rangatira)
who have authority over tribes (iwi ) and subtribes (hapu) that are made up of people related to one another. Māori to-
day identify themselves by hapu and iwi; identity is based on the extended family. When making a formal introduction
of oneself, called a mihi, Māori refer to their ancestors in a recitation of a family tree or whakapapa, and some can go
back more than 40 generations. These examples alone can serve as evidence that the Māori culture is highly collec-
tivist. Besides Māori, New Zealand is also home to many other ethnic groups. The main city, Auckland, has the largest
population of Pacific Islanders in the world.
Here is some more complexity: the non-Māori, New Zealand’s European settlers (called Pākehā in the Māori
language) prefer an indirect communication style. On the other hand, when Māori are among themselves, in informal
communication they prefer directness. These are the opposite of what one might expect of individualist and collec-
tivist cultures. Why do Pākehā use an indirect communication style, when the British and European cultures they came
from prefer a more direct communication style?
Pākehā settlers, while needing a degree of self-reliance and independence, also needed to be able to call upon
their neighbors. Cooperation was vital to survival, and even today New Zealand has only 4.2 million people. People are
connected to one another through others in a network of friendships and family relationships, and have to take care
not to rupture relationships that might turn out to be needed. As in collectivist cultures, Pākehā communicate with a
view to maintaining harmony in the group. These are some of the reasons for Pākehā New Zealanders’ communication
preferences.
As for Māori, they have a tradition of respect and esteem for articulate, polished speakers. They have a strong oral
tradition that was established before the Pākehā came. Being able to say what you mean is highly valued, and in an in-
group that means not holding back, but rather coming straight out with it.
 The Self and Groups 147

How New Zealanders appear in the surveys of values does not necessarily match
how they behave. This difference has been identified in the GLOBE study com-
pleted in 2004. Compared with the other 62 countries in the study, New Zealand
scores third-highest on collectivist in-group values, and in a remarkable contrast,
third-lowest on collectivist in-group practices.7 In other words, Kiwis value collec-
tivism but behave as individualists. As we have already noted, behavior and values
of members of a culture are not necessarily congruent in all situations.

Obligation and Indebtedness: Burdens or Benefits?

Individualist–collectivist priorities mean that cultures interpret differently what obli-
gation means. Everyone has had an experience in which someone came to the rescue
and offered help just when it was needed. Maybe it was a stranger who offered the last
coin you required for the bus fare. Maybe it was a friend who agreed to drive you to
an important event when your own arrangements for transportation failed. Maybe it
was a colleague who agreed to represent you at a meeting so you could attend another
important function. In English-speaking societies, a slang expression sums up the
feeling that accompanies gratitude: “I really owe you.” It means that one feels in-
debted to the favor-grantor. But obligation has rules that are determined by different
cultural priorities, and that can cause problems in intercultural encounters.

In Focus

A young Chinese girl, Song Mei, moved away from her village and her family to work in a large, far-away city. She sent
nearly all her money home every month. But because she was so far away, coming home to visit was difficult and ex-
pensive to arrange. After more than two years away, she finally came home to celebrate the Chinese New Year with
her family.
She arrived after a long journey, and everyone was very joyful. Her parents and aunts and uncles had cooked a
special meal to celebrate her return. It was a happy time, but then one by one her family members began to look un-
easy. Her mother was frowning slightly and her cousins several times drew their breath in sharply. Finally, with a pained
voice her father said, “Why are you treating us like strangers? We are your family!”
She had been saying “thank you” when her relatives served her various dishes. She had learned that behavior
when she and her co-workers ate special meals with strangers. In her native culture, saying thank you and please is
for people who are not in a relationship of ongoing reciprocal favors.

To consider the issue, we’ll turn to a situation that generates obligation. Person
A must meet a visitor at the airport but finds that the means of transportation relied
on to get there is currently unavailable. Person A thus asks Person B to make a trip
to the airport, carrying Person A. In India, friendship means having a willingness
to be indebted. In fact, in some languages in India no word exists for “thanks”; if
one is in a relationship, one eventually incurs indebtedness, and one is expected to
repay the debt owed. No words are necessary. Nor does one hesitate to request a
favor of a friend; that’s what friendship means.
148 Chapter 4

Compare this with obligation in the United States, where someone may preface
a request with “I really hate to ask you, but . . .” or “I wouldn’t dream of asking you,
only . . .” This opening usually is followed by a detailed explanation as to why the
asker has no alternative but to become indebted. The request may finish with elab-
orate thanks: “Thanks a million! I’m so grateful!” In a culture that values individ-
ual achievement, independence, and control over events through personal action, a
request that puts someone in another’s debt is almost an admission of failure. Sheila
Graham in the Warsaw sales situation, in the case that opens this chapter, regarded
accepting a gift as acknowledging indebtedness, which made her uncomfortable.
She wanted the sale to go through on an impersonal business basis, not on the basis
of a sense of obligation. The Poles, in contrast, wanted to build a relationship before
entering into a business agreement.
People in cultures like Sheila’s are not happy about being indebted and often try
to repay, and thus erase, a debt as quickly as possible. Perhaps too many obligations
make people feel that their personal freedom is threatened and that they have lost
some control over choices they could have made. Some independent individuals
may go to great lengths to avoid putting themselves in someone else’s debt and
avoid making others indebted to them. For example, in an individualist culture, Per-
son A, who wants to go to the airport but doesn’t have transportation, might hire a
taxi rather than ask someone to make a special trip on A’s behalf. Similarly, rarely
are gifts given for no apparent reason in individualist cultures. On occasions when
they are, their importance is downplayed by a casual giving style. The reason: The
giver does not want to make the receiver feel too heavily obligated.
Scholars observe that these characteristics are true of the dominant culture in
the United States. They observe that African-Americans differ, however; this
group is much more likely to enter into relationships of obligation (by someone
or to someone).8 Latino-Americans also are more comfortable with reciprocal
obligation—two neighboring households may share a garbage-collection contract,
for example, with each household paying every second month instead of every
month, and the two households pooling their garbage. Their non-Hispanic neigh-
bors, however, may not like sharing the cost because of concerns about who creates
more garbage and therefore who should pay more.
The dominant culture in the United States, with its value of individual respon-
sibility, invented the “no-host” cocktail reception where each person pays her or
his own tab, the potluck dinner where everyone brings a dish and thus nobody is
host and nobody is indebted, and “going Dutch” (people who go to a restaurant or
entertainment together and pay their own bills). Asians, Europeans, and Middle
Easterners are appalled; their values of hospitality and indebtedness as the mark
of a relationship are offended. This is discussed in depth in Chapter 7.
In fact, in most cultures of the world, significant relationships are those that in-
volve webs of obligation. Relationships between two or more individuals—or
groups—can last for decades and even generations. In China, Japan, and other
Asian countries, a first act that places someone’s family under an obligation leads
to a reciprocal act, and so on through the years, and the responsibilities to repay
the obligation are passed down to succeeding generations. The obligations are the
responsibility of everyone in the group, not only the individual who first became
 The Self and Groups 149

indebted. To clear the ledger so that neither side owes anything to the other is
to end the relationship. This is serious. In fact, ending a relationship is an event
of such magnitude that usually every measure is taken to avoid it. The webs that
bind a group together and the whole network of connections between groups are
threatened when one connection is severed.
In Filipino culture, indebtedness because someone has done you a favor is
called utang no loob. This generally refers to indebtedness outside the family. The
repayment may be in a different form from the favor received and may be spread
out over several occasions, according to the wishes of the original grantor of the
favor.9 The obligation is shared by the whole group.
In modern Japan, a wedding invitation may be greeted with horror and dismay
because it means that the guest family must present the bride’s family with a very
large gift. The choice is either to give a large sum of money or to lose a close re-
lationship. Indeed, some Japanese deliberately cool relationships with families
that have daughters of marriageable age. Once the daughters are safely married,
the relationships are resumed.
Japanese culture distinguishes between two kinds of indebtedness: giri and on.
An example of on is the indebtedness a new employee incurs. He spends the rest
of his life working to repay the debt he owes for being hired through looking after
new employees.10 On is the obligation a child owes to its parents for the nurturing
they gave through the years the child was growing up. Because of this obligation,
the child will take care of the parents when they are old to repay the debt. Or in an
organization when a senior looks after a junior, this means the junior incurs on.
But the junior shows loyalty to the senior, which repays the on or reverses the debt.
Giri is also obligation. It implies that self-discipline is necessary to overcome
personal feelings and fulfill the debt owed to others. For example, giri requires an
employee to agree with a superior, not argue.
Obligation and indebtedness are taken for granted as part of business relationships
in most of the world’s cultures. A business organization may incur indebtedness by
asking a favor, say, extended terms of payment. In return, that business will continue
to buy from the organization to which it owes a debt of a favor. Similarly, individuals
in business organizations often ask special favors of individuals in cooperating busi-
ness organizations, based on the ongoing relationship between their two employers.
Obligation can involve issues of ethics when cultures disagree about how far
obligation can go.

In Focus

A foreign company offered an information systems manager in a firm in the United States a regular monthly payment
into a bank account in his name in a third country in return for informing the company whenever his firm had a con-
tract to fill. The foreign company then knew when to submit a bid. The information systems manager didn’t have to
lobby his employer on behalf of the foreign company; he only had to transmit the information that his firm was in
(continued)
150 Chapter 4

the market for products or services. It was up to the foreign company to compete successfully. Of course, the man-
ager’s firm didn’t know he was taking money from the foreign company. The foreign company earned over $12 million
simply because it knew about the potential for selling to the manager’s firm. The manager did well, too; he received
enough extra money to send his children to expensive universities. The foreign firm was happy to be obligated to him
and pay him well. But what of his obligation to his own company? This case raises legal and ethical questions.

Where do one’s obligations lie? Would the obligations of the manager have been
different if the information-seeking company had not been from a different coun-
try? What if the foreign company were owned by a relative of the manager? Per-
haps being paid (obligated) to supply information seems acceptable; after all, the
information systems manager did not try to influence the purchase decision. But
then, why didn’t he want his employer to know he was taking money from the for-
eign firm? In fact, the employee in this case subsequently found he couldn’t carry
on with divided loyalties; his obligation to his employer won, and he ended his deal
with the foreign firm. One may speculate why he did so.

Age: Is Seniority Valued or Discounted?

In cultures that value age, the older a businessperson is the more credibility he or
she has. Seniority in an organization is directly linked to seniority in years. Orga-
nizations send senior members to negotiate with other senior members when busi-
ness transactions are held. Elders are treated respectfully, which means that
nobody disagrees openly with what a senior person says. Meetings are never oc-
casions in which the younger members challenge the positions or opinions of the
senior members, and the result is a harmonious unit.
When a senior person seems to be in error, quiet behind-the-scenes discussions
take place in which the senior is shown alternative ways the position can be car-
ried out or is given several possibilities, both positive and negative, to allow a rein-
terpretation of the position. Never is anything done or said that could cause loss of
face to a senior person. On the contrary, extraordinary measures sometimes are
taken to ensure that face is saved and even gained.
This is true in Asia, where old members of organizations enjoy great freedom
and power. They can make choices for themselves and others in a way that is not
open to younger people. Since others must listen to them and be directed by
them, they have a degree of freedom from the need to conform that only comes
with age. They have the most impressive job titles and often the most responsi-
ble jobs.
When U.S. organizations send executives to Asia, they often risk not being
taken seriously unless their representatives look appropriately senior. In a delega-
tion to a Vietnamese trading corporation, for example, the oldest-looking person
usually will be assumed by the Vietnamese to be the leader of the group. In cul-
tures that equate youthfulness with vigor, some individuals may change their white
hair to more youthful colors; in Asia, white hair earns respect. In a delegation of
three people, one of whom has white hair, that person will be first to be seated, first
 The Self and Groups 151

to be greeted, first through doors, and so forth. Young executives puzzle Asian
hosts, since in Asia one becomes high-ranking only with age.
By contrast, in youth-oriented cultures being young seems to mean having
more choices, more power, more energy, and more freedom. Advertisements for
consumer products in the West—cars, liquor, clothing, watches, fitness equip-
ment, cell phones—appeal to the desire to be vigorous, healthy, and powerful, and
these are related to looking young. Young corporate heroes are profiled in week-
end newspaper supplements because they are young. Middle-aged people appear
at times to take lessons from their children on how to dress, what activities to pur-
sue, how to wear their hair, and what slang to use in an attitude of respect for youth
that baffles members of seniority-oriented cultures. The word old has bad conno-
tations: It means loss of power—physical, mental, political, and sexual—and with
it loss of respect, loss of capability, loss of status, and loss of position. Old em-
ployees are “kicked upstairs,” “put out to pasture,” “waiting for retirement.”
Businesspeople need to understand the great differences in how age is valued.
If your employees include a number of Asians, you may not be prepared for their
dismay when older workers are laid off. Asian managers who retain older workers
out of respect for their age when younger workers are more productive and more
adaptable risk the scorn of employees from youth-oriented cultures.
Manufacturers, distributors, and retail sellers of products designed to help mature
adults look younger may not have the market they seek in age-respecting cultures.

Gender: Are Women Equals or Subordinates?

Images of women differ around the globe. Two facts provide a starting point for
looking at women in different cultures. The first is about women in society:
Although women make up half the population in every culture, women have fewer
high-level positions in organizations outside the home. The second fact has to do
with biology: Women, unlike men, bear children and nurture them.
In traditional cultures, the two facts are related. Child-bearing and child-
nurturing are the main roles of women. In traditional cultures, women have less
time or opportunity to compete outside the family home for high positions in cho-
sen careers, until their children are old enough to look after themselves or unless
someone takes care of them while they are young. While many poorer women have
some work for income in traditional cultures, such as selling handiwork or food
from a family garden in a market, others do not. Roles such as chief surgeon, uni-
versity president, managing director of a company, government minister, or market
(souk) administrator require many years of preparation to achieve.
Furthermore, in traditional cultures around the globe, men take the responsi-
bility for supporting and providing for women. They go outside the home and
bring back what the family needs, so women do not have to go outside the home.
In the traditional Chinese culture, the word for husband was “outside person” and
the word for wife was “inside person,” referring to the role differences.
Men in traditional cultures not only have the role of bread-winner, bringing food
and money for food to the family and providing shelter. Men also have the role of
protector of their women and children. Women then are free to focus on their roles
152 Chapter 4

of homemaker, food-preparer, and child-nurturer. All cultures have had these sepa-
rate roles for men and women, historically. Traditional cultures continue the same
way today; traditional is a positive term in those cultures, since it reflects the values
that have been maintained through many generations.
Non-traditional cultures are sometimes called modern cultures; modern is a
positive term for them, since it reflects a positive value toward change. Often these
non-traditional cultures are individualist cultures that value equality of opportu-
nity and equality of treatment for all people. For example, in Britain, equality of
treatment was an important value that the practice of slavery challenged, in the late
1700s. Slaves were not equal to free men. In 1833, after years of disagreement,
Britain made slavery illegal. Former slaves were free, and began to claim the same
treatment as people who had never been slaves. Then women wanted equal treat-
ment and challenged the government by asking for the same voting rights as men.
In 1928, after years of disagreement, women got the equal right to vote. Women
then began asking for other equal treatment. In Britain today, women are consid-
ered to be valued equally with men in the workplace.
However, women in Britain today generally earn less money and have lower
positions than men, even when they have the same education or training, and when
they do the same work. Women continue to point out that this is not equal treat-
ment. Full economic equality has not yet been achieved.
Economic equality is only one way to examine the roles of women. Not all
women everywhere want to be considered equal to men in all situations. In tradi-
tional cultures, where men’s and women’s roles are clearly different, many women
would not want to give up their special status and have to take on the same re-
sponsibilities as men. In modern cultures, too, many women want to spend time
with their children and feel privileged when their husbands make enough money
to allow them to stay at home and not work for income for the family.
We can consider what it means to be female in a culture by referring back to
self-concept. A woman’s self-concept is formed not only by the political history of
her country (the critical approach to self-identity), but primarily by the expecta-
tions and assumptions her culture has for her, learned through her experiences and
through the teaching of others. Whatever the self-concept is, when women suc-
cessfully perform their culture’s roles for women, they enjoy esteem and respect.
In some cultures, women’s high status comes primarily from bearing children.
Being a mother gives a woman a special status in Saudi Arabia, for example, where
she has a new name, “Mother of ____” [blank to be filled in with the name of a
child, usually the first son]. In China, a woman who is not a mother is pitied be-
cause she cannot claim the status of having a child. In Italy, a mother is honored.
In Mexico, adult children view their mothers as models, to be treated with great
devotion. These are just a few examples of the high esteem women enjoy in many
traditional cultures because of motherhood.
In other cultures, women enjoy high status primarily from achieving personal
and organizational goals and receiving recognition. They compete and succeed;
often men are their competitors. Their private lives as wives, mothers, daughters,
and sisters may not even be mentioned.
 The Self and Groups 153

Women communicate according to their culture’s expectations for gender and

communication. In their communication, they present their identities and fulfill
their roles. Traditional cultures have rules about women’s communication when
greeting someone (rules are different for inside the home or outside the home,
among relatives or strangers, communicating with men or other women only).
Non-traditional cultures have rules about asking a job applicant to identify herself
as a woman (for instance, in the United States it is not legal to ask, because it is
not legal to make a hiring decision based on the gender of the applicant).
In most cultures of the world, women do not achieve key business positions in equal
numbers with men. The priorities of cultures in which women do not earn executive ti-
tles cannot simply be dismissed, however; members of those cultures do not necessar-
ily regard women as lesser beings, unworthy of power. There are complex power
dynamics within the workplace even in societies in which men are clearly dominant.
In the United States, Canada, New Zealand, Australia, and Great Britain, where
equal opportunity is an official policy and where women can perform in every area
of employment, the view is that women and men are equally capable of achieving
organizational goals. Women and men are equally intelligent, equally competent,
and equally worthy of recognition for jobs well done. The fact that women in orga-
nizations do not have equal status or equal pay with men is often deplored, although
it is tolerated. A majority of single and married women in these and similar cultures
work outside the home, and most two-parent households rely on two incomes to meet
the basic costs of housing, food, utilities, transportation, and personal needs.
Studies of gender show that men and women select priorities differently from
the general culture. For example, women are reported to be more consultative in
their management style and less directive than men. They are said to have more in-
terest in the emotional well-being of subordinates and co-workers than men and to
listen better and cultivate personal relationships with co-workers more than men.
Men who exhibit these behaviors are said to have “feminine” characteristics, and
women who lack them are called “masculine”; their behavior sometimes is ex-
plained as being more masculine because they have had to learn to compete in a
man’s world. Managers—male or female—who have so-called feminine qualities
(cooperativeness, intuitiveness) are looked upon more favorably by so-called fem-
inine cultures, whereas managers who are masculine—again, male or female—
and have masculine characteristics (assertiveness, decisiveness, competitiveness,
and aggressiveness) are valued primarily in masculine cultures.11

In Focus

A male student in his mid-twenties recently approached one of the authors to discuss a concern he had with his wife
and the Muslim practice of covering her head. It was not that she wouldn’t follow his demand for her to wear the head-
scarf. Rather, she was a devout Muslim and had always covered her head and hair in public as an outward sign of her
(continued)
154 Chapter 4

devotion, in the same way that members of other religions show their faith publicly (Christians wear crosses; Sikhs
wear turbans around their heads; conservative Jewish men wear yarmulkes or kippah—skullcaps—on their heads).
But she and her husband had emigrated from North Africa to New Zealand where only a small minority of women
wear a headscarf that covers hair and shoulders. Her husband was anxious for her because he believed she was hurt-
ing her chances of employment by wearing the headscarf, and she was eager to find a good job. However, she had
discussed the issue with women at the local mosque and had decided to be covered when out in public. He tried to
talk her out of it, but she was determined, and he respected her right to make that decision.
His classmates were intrigued by this issue, since most had had limited contact with Muslim women and had as-
sumed they only wore modest covering because their husbands insisted upon it as an exercise of power over their
women. Husbands in many cultures have powers of decision-making over their wives’ lives, but an observer cannot
always interpret visible, onstage behavior accurately using the norms in one’s own life. Not all women who wear head-
scarves are doing so because their husbands insist on it. Not all wives (Muslim and non-Muslim) who have uncovered
heads in public have the power to make decisions for themselves.

Muslim women, especially women who wear a modest covering in public, may
be viewed by non-Muslims as powerless and lacking knowledge and ability to
compete in the workplace. (Being covered does not mean a woman is not present.
It means she is showing her devotion. Consider the Muslims in the Tuareg tribe of
Mali and nearby West African countries: Women do not cover their faces in that
culture, but men do.) She may not shake hands with men in business meetings.
However, Muslim women in many cultures fill a wide range of business and pro-
fessional roles. In Malaysia, Singapore, Indonesia, Turkey, and Pakistan, for ex-
ample, Muslim women hold high corporate and government positions. In Iran,
nearly half of all medical doctors are women. Also, in countries where Islam is one
of several widely practiced religions, such as India and England, Muslim women
achieve high positions in business organizations and in professions from engi-
neering to education to university lecturers.
In currently and formerly communist countries, women enjoy high status in the
work world. Chairman Mao’s famous statement “Women hold up half the sky” is of-
ten quoted as evidence that women in China are not excluded from any professional
achievement. As a matter of record, however, few women rise to the top ranks of the
party or government. Nevertheless, they can have considerable professional status.
Women are expected to be employed outside the home. They are also expected by
most families to do most of the domestic work in spite of working full-time. (Simi-
larly, in modern Russia, a familiar image in fiction is an overworked mother who has
to be committed to a sanatorium. Luxury means staying at home with the children
and not having to go out to work.) The extended family pattern in many cultures, in
which grandparents live with or near their children and grandchildren, means that
child care for working women is usually built in, within the family unit.
In Japan, some women hold professional jobs. Women work in business organ-
izations also, but often in low-status jobs; as OLs (office ladies) they perform cler-
ical and even hostess duties. Many choose to work so they can find husbands, and
large organizations encourage marriage between employees since wives will then
understand their husbands’ loyalty to the company. Employees are acceptable
 The Self and Groups 155

wives (having already been screened for employment) and should get along with
the wives of other employees; this is an important consideration, since the couple’s
socializing will be almost exclusively with other employee-and-wife couples.
Young married women may continue to work until the arrival of their first child,
but then they usually do not remain employed.
As mothers, Japanese women enjoy high status in society; the bond between
mother and child, called amae, is regarded as the most important bond in life.
Japanese sociologists describe it as a basic dependence upon uncritical accept-
ance, such as mothers give children, which in turn fosters a desire for the security
of acceptance. They attribute the Japanese drive toward conformism to amae. The
desire for acceptance and the dependence upon others to provide acceptance are
apparent in the polite Japanese greeting at a first meeting. It translates “Please take
care of me.” But women generally have lower status in Japanese society than men.
An indicator of this is that women in Japan use a different vocabulary from men
in referring to self and others. Women bow lower than men to show their status is
not as high (although their relative power may be greater).
Yet women typically hold the purse strings of Japanese homes, which gives
them some power. In fact, women often enjoy economic power that is greater
than the power of male family members in a number of cultures ranging from
West Africa to Ethiopia to Thailand and the Philippines. Women often are
responsible for taking food grown by the family to market, and market stalls
operated by women abound; you can find them everywhere, such as in Peru,
Ghana, and Indonesia. Temporary market stalls can lead to more permanent
locations and ultimately to women-owned retail and service businesses. In Mali,
West Africa, for example, many women are involved in business, primarily at the
micro level.

In Focus

Many Malian women belong to the West Africa Businesswomen’s Network (WABNET), along with women from Ghana,
Guinea, Niger, and Burkina Faso. A major export for these countries is shea butter, a component in cosmetic and body
creams. It comes from the shea nut, which is produced by the large flowering shea-butter tree, called karité in French.
The shea butter is produced in a traditional manner, based on centuries of experience, by women in the villages. They
soak the fruit and remove the soft pulp manually to obtain the five-centimeter (two-inch) seed or nut. The karité, or shea
butter, is extracted from the nut.12
In Burkina Faso, an estimated 80 percent of the shea butter is produced by women in the traditional way. The
demand for shea butter is rising for products marketed by Body Shop and other international cosmetic firms.
However, the legal status of women in West African countries such as Burkina Faso means that they still cannot
inherit land or the right to the fruit from the trees. A woman’s right to the means of production is therefore not secure.
Disputes have occurred between men and women over control of shea nuts and shea trees. To remedy the problem,
the United Nations Development Fund for Women (UNIFEM) is currently helping women develop strategies to attain
security and rights in the shea butter industry.13
156 Chapter 4

Cultures in which women’s status and power come from traditional roles rather
than from management roles in business organizations may be viewed by people
from modern gender-equity cultures as morally wrong in their unequal treatment
of women.
In these cases, it is important to recognize that “wrong” is a culturally based at-
titude. Certainly, professional women in the United States and Europe find in-
equity on the basis of gender unacceptable. Some groups, such as the repressive
Taliban in Afghanistan, view women’s roles as traditional in a narrow definition,
refusing to educate them or allow them to go out to work (although wider Afghan
society does have many schools for girls, a number of whom go on to university).
Globally, women make up more than half the workforce. They also make up more
than half the world market for food and household goods. And 33 percent of
households in the world are headed by women (45–50 percent in some countries
of Africa and Latin America).14
Our responsibility as students of culture is to keep from evaluating cultures ac-
cording to the roles women play in them. What is worth considering is how atti-
tudes toward women differ, and how communication by and with women differs
from culture to culture.

Category 5: Social Organization

The way society is organized has great impact on how members of that society
interact and how they treat outsiders to their culture. Members of multicultural
workforces, managers in foreign subsidiaries staffed by native employees—and,
conversely, employees with managers from foreign cultures—and workers in
global organizations who deal with people around the world all carry with them
expectations about business behavior that are based on the social organization they
learned in their native society. Like attitudes toward gender, age, and relationships,
these notions about how people ought to interact are learned when one is young
and are thought of as normal.

Group Membership: Temporary or Permanent?

Individuals in the United States are members of many groups simultaneously.
Work associates generally are not all social friends. Friendships develop from a va-
riety of contacts: school, neighborhood, place of worship, clubs, and community
service organizations.
Furthermore, group membership is impermanent. If an individual loses inter-
est in an activity, she or he drops out of the club and may lose contact with the
friends with whom that activity once was shared. If one moves to a new neighbor-
hood or changes one’s religious affiliation or gets a new job, one’s friendships can
wane. If personal goals are no longer being met by a group, an individual moves
on and probably looks to new associates for the benefits previously received from
the former group.
In fact, even membership in families is subject to personal choice. Spouses
often choose not to remain married, children occasionally decide not to continue
 The Self and Groups 157

in relationships with siblings or parents, and even parents occasionally decide not
to relate to their offspring. The breakdown of family groups is regularly deplored
in the United States, but nevertheless it is tolerated. A majority of members in the
dominant culture of the United States agree that the individual’s needs come first.
When one’s own needs are met to an acceptable degree, then one can fulfill one’s
responsibilities to others.
In other cultures, the responsibilities of membership come before rights. Indi-
viduals cannot expect that their individual needs will be met as a first order of pri-
ority. For example, the notion of choosing to loosen family ties simply never
occurs to members of collectivist cultures. In cultures where group membership is
permanent, belonging starts with the family.
Social organization in Chinese culture has been described by a famous Chinese
sociologist, Fei Xiaotong, who studied the culture of the Midwest United States in
the 1930s.15 He characterized Chinese culture as a series of concentric circles with
the family at the center along with I, the ego.
The individual’s parents, grandparents, spouse, siblings, and offspring are all
in the center of the pattern. The next circle may include spouses of siblings, aunts
and uncles, cousins, and children’s in-laws. The next circle is for one’s dearest
friends, perhaps from one’s earliest school days; subsequent circles include work
colleagues (who may also be neighbors in China today) who are especially
trusted. Then come those who are familiar but not so close, and so on, until every-
one has been placed in a circle—everyone, that is, to whom one might possibly
be under obligation because of a relationship. Everyone else in the geographic
area or nation or world is on the outside of the concentric circles; thus, one has
no obligation to respond to their needs. While the circle inside which someone is
located may change, with a person becoming nearer to or farther from the center,
the circles themselves do not.
Social organization in China is relatively stable because everyone understands
the pattern of concentric circles and knows the key: If you want to enter into a re-
lationship with someone and therefore be able to incur reciprocal obligation
(which is the essence of a relationship), you must locate yourself somewhere in-
side a circle. You need to present yourself as the friend of a friend of a relative, the
classmate of a former colleague, or at the very least a co-worker of someone who
was in a relationship with a co-worker of the other person. Once you can identify
yourself as having some place in the social structure of another person’s circles,
that person has a responsibility to enter into a relationship with you. The Chinese
word for relationship, guanxi, also means connection. The way business gets done
in China is through connections.
In contrast, Fei described American culture as contractual. Instead of a net-
work of responsibilities ranging from most to least important, he said people in
the United States regard all relationships as contracts. They can be broken when-
ever one party chooses. Even close friendships and family relationships can be
severed when they threaten the individual’s personal goals. Work relationships,
club memberships, and ties with schools and former classmates tend to wither if
an individual moves away. Americans do move away a lot; it is rare nowadays for
158 Chapter 4

an individual to live a whole life in one place. This makes social organization
loose and impermanent. You can get lost in the United States. You can even move
to a new location and change your identity.
China and the United States offer an interesting basis for comparison because
they are so far apart on the question of the duration of group membership.
Many collectivist cultures value permanent group membership, such as the
countries of Latin America, the Middle East, Africa, the Pacific Islands, and
Southern Europe.
Communication, especially within permanent groups, has specific functions.
We’ll now consider three functions of group communication.

Communicating to Give and Save Face

The permanent nature of relationships affects communication in collectivist cul-
tures. Members of groups in collectivist cultures do not seek to speak up, to set the
record straight, or even to express a contradictory point of view; instead, social
harmony is a hidden goal of every communication.
This is very different from the tendency in individualist cultures to verbalize—
that is, to put things in words, whether written or oral. Westerners may seek to ex-
press a different point of view so as to be recognized or to triumph in presenting a
point of view that carries the majority with it. In collectivist cultures, being right
isn’t as important as being in concord with the group.
In cultures throughout Asia, the Middle East, and Africa, losing face is a terri-
ble thing to suffer. Besides expressing agreement, various other ways of commu-
nicating diminish potential loss of face also, such as laughing to discount the
significance of some word or act and therefore discount its ability to cause loss of
face. Simply choosing not to hear is another ploy.
The profound desire not to be the cause of someone’s losing face results in
many cultures in a great reluctance to say no or bear bad news. Where the
unspoken objective of every transaction is to create and nurture harmony so
the relationship can thrive, bad news is a serious threat to that objective. Or to
be precise, the communication of bad news is a serious threat. The news itself
may or may not turn out to have disastrous consequences; maybe the context
can be changed and the party need never know the actual bad news. But utter-
ing bad news has to be—well, bad news. Delivering criticism to someone who
might lose face because of it becomes tricky. Indirectness is the usual policy
when one must point out weaknesses or make criticisms of another, in order to
save face.
Face is not only individual, but also collective. Children are taught not to lose
the family’s face. If an employee makes an error that causes the company prob-
lems, the company loses face. Often, the blame for an error is diffused so no one
individual is responsible, but the group loses face.
Similarly, the importance of giving face in collectivist cultures is often over-
looked by members of individualist cultures. Giving face means making someone
look good in front of others of the same collective, particularly (but not exclusively)
 The Self and Groups 159

In Focus

Some of the communication differences discussed here emerged in a cross-cultural training program delivered by
Canadians for Chinese participants. The trainers had invited guest speakers for the Chinese to hear, but the Chinese
trainees repeatedly came late to afternoon sessions and inconvenienced the guest speakers. The Canadian trainers
became angry and scolded the trainees. The trainees’ response was bewilderment and shame, but it wasn’t shame for
being late to hear the guest speakers. It was shame on behalf of the trainers for having let themselves behave so emo-
tionally!
So the trainers asked how the Chinese would behave if, say, a friend repeatedly arrived late for a movie date, so
late that it wasn’t possible to see the film. The appropriate way to deal with such a person, the trainees agreed, would
be to go see films with someone else and to become cooler toward, and more distant from, the person who behaved
so irresponsibly. They said they would feel angry but it was not appropriate to show anger. The other person would
certainly lose face if anger were directed toward him or her, and the angry person would look foolish and childish and
therefore would also lose face. Social harmony would be disrupted twice. (The trainers apologized the next day for
their angry words.)

superiors. Using titles, recognizing special achievement or expertise, praising a job

well done, acknowledging an obligation—these are all ways of giving face. Not dis-
agreeing publicly with superiors is also a way to give face.
Face can also be borrowed. That is, when someone is at risk of losing face, that
person can claim a connection with someone who has face, thereby “borrowing”
face. A young person in an unfamiliar business situation who mentions an older,
experienced, and known businessman is borrowing his face. A company that is ini-
tiating a business association with a foreign company may borrow face from an-
other company with a long-term relationship with the foreign firm.
According to more metaphors, face can be “stretched” to embrace more and
more, and even can be “beaten” (to make it swell up to larger than normal size)
when someone goes so far as to appear to have a lot of face that it causes some dif-
ficulty (“pain”). This might describe going into debt in order to live up to the terms
of a contract that was difficult to land.

Communicating to Display Emotion

Showing emotion in nonverbal and verbal communication varies in degree along
the lines of high-context and low-context cultures. In China, Japan, Korea, Thai-
land, Vietnam, and other collectivist Asian countries, culture socializes people
from an early age not to show emotion publicly. No doubt this is because a display
of emotion could have potential consequences of disrupting the harmony that is so
important to collectivist cultures. In Iraq, Dubai, Jordan, Kuwait, and other
collectivist Middle Eastern countries, culture teaches people from an early age to
show emotion and how to do it.
160 Chapter 4

Obviously, the level of emotion shown can have consequences in work environ-
ments where an emotion-expressive culture is in contact with an emotion-repressive
culture. When someone from an emotion-expressive culture—say Polish—carries
on a communication transaction about a perceived wrong with someone from an
emotion-repressive culture—say Thai—each can be sending messages the other has
trouble decoding correctly because of the communication style. The Pole may be
perceived to be immature, out of control, and egocentric. The Thai may be perceived
to be remote, unsympathetic, and uptight. These perceptions then form the context
for the worded message, which is subject to distortion and misinterpretation, or in
other words, faulty decoding.
Egyptians display socially acceptable emotion. The emotion of anger is not
socially acceptable, but not to show emotion in the face of another’s grief, or jubi-
lation, or disappointment is self-centered and egoistic—that is, to be impassive is
to deny group membership.

Communicating about Shame or Guilt

Cultures can be categorized into those that communicate to cause shame in order
to make people behave according to cultural rules and those that cause guilt. Both
emotions can be powerful elements in cross-cultural business interactions. Shame
is an emotion of embarrassment experienced by a group, or member on behalf of
the group, when the honor of the group is called into doubt. It is in public view,
and is the result of (alleged) misconduct.
Guilt is an emotion of self-reproach experienced internally and privately at the
recognition of misconduct. (This is not the same meaning of guilt as being re-
sponsible for wrongdoing, the opposite of innocent.) Some cultures use the painful
emotion of guilt to punish members. The guilt-ridden suffer in private until their
guilt is admitted in public, and then the behavior about which they feel guilt is for-
given or punished or dealt with in some way. The guilt may or may not go away as
a result of getting its cause out in the open. In individualistic cultures, where indi-
vidual responsibility, results, and privacy are valued, guilt is a potent way for a cul-
ture to enforce rules of behavior.
In collectivist cultures where group membership, relationships, and public
knowledge of one’s life are important, shame enforces the rules of conduct. Group
members suffer the disgrace of belonging to a dishonored group. Shame is not the
same thing as face, which involves status. A group may be shamed but still not lose
face. For instance, if the oldest son of a family incurs a debt and creditors are
known to be pursuing him, the family is publicly shamed. But if the debt is paid,
there is no loss of face.
Members of shame cultures may not be able to give answers to questions from
foreigners without losing the collective’s face—questions about their business or-
ganization’s technological capability, or expertise, or manufacturing experience,
or ecological progress, or human rights achievements. Persistent questioning can
cause shame if it implies wrongdoing. Similarly, any public comment—even in a
joke—that refers to a person’s, or company’s, or nation’s failings causes shame for
the group (family, employer, country).
 The Self and Groups 161

In Focus

It is quite possible for people who are not members of a shame culture to cause shame without realizing it. Dr. Wong,
one of a group from China working temporarily in an Australian hospital, reported to a Malaysian surgeon. The sur-
geon’s secretary was Australian. The surgeon and the doctor happened to meet and pause for a brief conversation at
the secretary’s desk. The secretary interrupted, saying, “Dr. Wong, where were you yesterday? I looked all over the
hospital for you!” The doctor had been in a lab elsewhere in the hospital—a perfectly reasonable place to be—but
hadn’t informed the secretary. He felt shamed, on behalf of all the visiting Chinese medical staff in the hospital, by the
secretary’s question in that situation. He thought she was trying to make him look bad in the eyes of the surgeon, his
superior in the organization. He felt accused of misconduct that reflected on the Chinese group as a whole. But the
secretary had no intention of causing him shame. She was simply saying what occurred to her when she saw him and
remembered she hadn’t been able to reach him the previous day.

Form: Important or Untrustworthy?

Form means protocol: the rules of etiquette and manners for doing something. It
is related to communication issues for permanent versus temporary group mem-
bership, and is usually more important in cultures where preservation of harmony
in permanent groups is critical. Behaving according to form means behaving
correctly. Cultures that consider form important ensure that everyone can operate
by the same knowable rules, and following rules reduces the risk of losing face
through some unintentional mistake. Everyone is more comfortable because the
rules are well established and comprehensive. Trustworthy people follow form. In
some cultures, doing things by the book is an essential mark of maturity, adult-
hood, and responsibility.
Form is the reason why Thais do not show anger in public words or actions.
Form is what requires Indians to greet one another with namaste, which is a ges-
ture that accompanies the greeting, putting the palms of the hands together with
fingers pointing toward the chin and slightly bowing the head. Form requires you
to offer your right cheek for a token kiss to every social or business contact you
meet in Argentina. Form is why Jan Zamoyski addressed Sheila Graham by her last
name and “Ms.,” kissed her hand in greeting, and used formal language to offer
her coffee in the case that opened this chapter. The deliberate setting aside of
form—which could be called a form in itself—accounts for Sheila’s using Jan’s
first name right away. Form is what dictates that overcoats must be checked at the
door in Russia.16 Form may even determine when it is acceptable to talk business
(at dinner? on a train ride? at meetings only?). Some cultures seem to follow form
when the substance itself is not significant: form for the sake of form.
In negotiations, correct form dictates that only designated speakers speak; others
are silent unless invited specifically to participate. One correct form for saying
“no”—which Japanese people employ reluctantly—is to draw in the breath through
the teeth with a hiss and then expel it—“Sahh!”—while looking sadly at the table.
162 Chapter 4

In Focus

Japanese have a very high regard for form. A specific Japanese word exists for it: kata. It means form, and comes from
the word shikata, which translates as “the way of doing things.” (Shikata ga nai is a Japanese expression that means
“no way!”)17
Everything has kata in Japanese culture, and following the kata ensures harmony. For instance, there is a shikata
for wearing kimono, the traditional clothing of Japanese. Traditional performances such as a Japanese tea ceremony,
sumo wrestling, samurai swordsmanship, and Kabuki theater are wrapped in kata.
In everyday life, one encounters many kata. The bow, for example, with which everyone greets everyone has kata.
If a neighbor is behind the wheel of her car when you first exchange glances, she will bow over her steering wheel.
Women bow lower than men; older persons bow less than younger persons. On a university campus, professors bow
to one another in passing with the senior persons bowing less than the juniors. Students bow to professors they know;
professors nod back.
In the special event of finding a spouse, Japanese also have various kata. Some families in Japan still have a Family
Registry, which is a family tree of past and current generations. If an adult child contemplates bringing a life-partner
into the family, the parents and grandparents must first consider if this potential family member is worthy of being
entered into the Family Registry. If the parents say no, then the marriage cannot take place. The consequence of
ignoring this decision is that the child of the family is stricken from the Family Registry, and the record no longer shows
that person’s birth. Form minimizes uncertainty and contributes to the preservation of the status quo in society.

In Focus

One Japanese business researcher commented about the odd use of given names when the prime minister of Japan,
Yasuhiro Nakasone, met with President Ronald Reagan several decades ago, but the same practice is used today.
It made an interesting news item in Japan when then Prime Minister Nakasone reportedly mentioned that he dealt
with President Reagan on a first-name basis and termed the two men’s relationship as the “Ron-Yaso Relationship.”. . .
The fact remains, however, that no one, including his cabinet ministers, ever called him by his first name in Japan.18

Using titles is another aspect of form practiced in many countries. The proper
form for addressing someone in Argentina is by title (Vice President, Engineer,
Professor) and family name. In Samoa, the Minister of Education is also a high
chief of her clan and is always addressed by the title for chief, along with the title
“Minister.” In many countries, the equivalent of “Mr.” or “Mrs./Ms./Miss” is the
form that expresses the minimum level of politeness. In Britain, given names are
only used in close relationships with friends, rarely by business associates. Simi-
larly in European cultures, which have many differences but share a respect for
form, business contacts almost never address one another by their given names,
even when they work together for long periods and see one another regularly.
 The Self and Groups 163

In written messages, correct form means the use of certain phrases and for-
mulas. French business letters invariably include subjunctive verbs to show
politeness, and close with an expression of much warmer compliments to the
reader than British and American letters. In Mexico, business letters use elabo-
rate language and also tend to be extremely courteous (check the examples in
Chapters 2 and 5).
In contrast, some cultures mistrust form. Standing on ceremony is perceived as
giving oneself airs and substituting etiquette for sincerity. In the recently invented
culture of the United States, emphasis on form looks mannered. It is dangerous
sophistry, even deceit. Businesspeople from the United States are known around
the world for their preference for addressing business colleagues by given names
rather than family names. In New Zealand, an even younger culture, emphasis on
form is called “poncing around”—assuming a false sophistication to impress oth-
ers (“ponce” is slang for a person, usually male, who is showy in appearance and
manner). Pākehā New Zealanders mostly address people by their given names
only, to emphasize the egalitarianism of the culture and to make people feel they
are all accepted. But what may be intended as an attempt at genuineness, at leav-
ing behind stuffiness and formality, can come across as presumptuous intimacy. In
some instances, use of first names can sound comical. An example is a public
speaker who displays a quotation from the very well-known scientist Dr. Albert
Einstein and says, “Let’s consider what Albert has to say.” The goodwill gesture of
putting an arm across another’s shoulders can translate as boorish bonhomie. To
the venerable cultures of Asia, Africa, and Europe, lack of form looks unmannerly.
It is dangerous naiveté, even ignorance. By the same token, members of other cul-
tures may find the behavior of United States businesspeople to be a “form” of in-
formality with rules about informality that have to be learned in much the same
way as rules of formal protocol have to be learned.
To communicate effectively, businesspeople need to be aware of the different
attitudes toward form and to adjust their reactions to other cultures’ communica-
tion messages.

Personal Matters: Private or Public?

The degree to which possessions, programs, and organizations are private or pub-
lic varies with the culture and can affect how business is carried out. This is a cul-
tural priority, not a description of how companies are structured. We aren’t talking
about privately held shares versus stock traded on an open market. We’re dis-
cussing the degree to which people believe work and private life are separate.
This is another of the priorities that people the world over take for granted, as-
suming theirs is universal, until they are confronted with another view. In Europe,
as in Britain, Canada, the United States, Australia, and New Zealand, a person’s
work life is kept fairly separate from private life. As a rule, workers are not
expected to bring private concerns with them to work; employees do not bring chil-
dren to the office to play at their feet while they work; personal phone calls and
visitors are not appropriate. Hours that the organization pays for belong to the
organization and its concerns.
164 Chapter 4

However, lunch breaks and even coffee breaks are not paid time in many jobs
and therefore are the employee’s personal time. This is when an employee receives
and makes personal phone calls, keeps personal appointments, and so forth. In
some offices, considerable effort is expended to keep employees from discussing
personal issues as they work. Organizational policy usually implies, if not directs,
that workers should not even be thinking about personal issues on company time
if such thoughts may affect work adversely.
Not surprisingly, cultures that emphasize relationships, view group member-
ship as long term, and value harmony have a blurred distinction between what is
private and what is public (or at least what is “group”). As illustrated by the
Japanese worker with the hangover in Chapter 1, superiors in Japan are expected
to be paternalistic counselors in matters to do with private lives of employees.
The same is true in China, where an employee would appear secretive and de-
liberately destructive of group harmony who did not share the particulars of per-
sonal problems—serious ones that might interfere with work—with a superior.
(Nothing is actually secret, and the superior would find out from someone else
anyway in that collectivist culture.) In China, where the work unit provides so
many of the commodities of personal life, the line is even more blurred. In
Argentina, which is strongly influenced by European values, employees are
expected to put work priorities first, but family and private concerns are treated
with a somewhat flexible attitude.
In much of Latin America, the summer weather is very hot and humid; work-
ers typically have a long break in the middle of the day during which many go
home and sleep. The hot and humid nights mean workers don’t get enough sleep
between dark and dawn. Workers who live too far away to go home frequently have
their siestas at their desks.
In Great Britain, by contrast, an employee who comes back to work from lunch
and sprawls over the desk for a nap will be under fire from the employer. The em-
ployee is expected to sleep in private, on personal time. And even if it is the em-
ployee’s time, sleeping at work looks bad for the organization in a culture that
values achievement and activity.
Finally, differences about public and private touch the question of ownership of
intellectual property. In a socialist country, ideas and intellectual products belong
to the people along with everything else. Individuals may be recognized for their
books or inventions or other creative acts, but their products belong to the people.
The creators ought not to seek to get rich at the expense of the people from whom
they themselves have come. This is a problem for exporting countries, where in-
tellectual products are commodities just like manufactured goods. Creativity is
valued and deserves recompense.
This can be a critical difference where a company’s proprietary information is
concerned. Some organizations have experienced problems with trainees and even
employees from China and from formerly communist Eastern Europe sharing
technological information such as patented processes with colleagues back home.
Since costs for research are theoretically shared by everyone in socialist states, the
 The Self and Groups 165

results of research can be argued to belong to everyone. In Western countries,

where research costs are borne by a specific organization in order to compete,
there is a need to protect that investment. Each viewpoint is understandable within
its own context, but it’s important to recognize the cultural variations in the line
between private and public.

Social Organizational Patterns: Horizontal or Hierarchical?

Social organization in cultures tends toward one of two extremes: at one extreme
are rigid vertical levels in society, and movement between them is very limited; at
the other extreme, society is horizontal and operates with few levels. In modern
history, hierarchical (vertical) social organization is associated with monarchies,
and horizontal organization with democracies. Of course, most cultures are some-
where between those extremes.
As we saw in Chapter 3, India has a system of classes based on the old system
called castes. In most business encounters between Indians and non-Indians, how-
ever, these classifications play a small role. That is partly because foreign busi-
nesspeople have limited contact with them in the course of doing business. It is
also because the caste system has been officially ended by law and therefore is not
easily visible to a non-Indian. The stratification of society by class still exists,
however, and is of sufficient importance in Indian life that non-Indians should be
careful how they ask questions about it.
Monarchies today vary in the mobility between levels of society. In Holland and
Denmark, for example, the distance between monarch and subjects seems small.
Queen Beatrix of Holland frequently stops her car and gets out to shop at town
stores, in the midst of her subjects, who have great affection for her. In Thailand,
however, the royal family is regarded with deep awe and reverence; the lives of all
the king’s family members are recorded and followed by subjects who think of
them not as familiar but as vastly superior, almost divine. In Japan, the Emperor
was, until 1945, actually viewed as divine by his subjects. When Emperor Hirohito
broadcast his announcement of surrender to the allied forces at the end of World
War II, most of his subjects had never heard his voice. (Since the imperial court
used classical Japanese, not the common language, most of the country didn’t un-
derstand his broadcast.) At his funeral in 1991, many mourners confessed his re-
nunciation of divine status had not persuaded them; they still believed he was the
direct descendent of Japan’s divine female founder.
Japan is conscious of hierarchy in all things. This is fitting for a country that
has had only one dynasty in its entire history. One uses different words to say the
same thing, depending upon one’s status compared with the status of the person to
whom one is speaking. There are degrees of depth of bow, degrees of elegance in
dress, degrees of restaurants, degrees of gifts, degrees of social occasions, degrees
of status of universities, and degrees of manufacturers, banks, and other busi-
nesses. Japan also derives some of its levels of hierarchy from Confucian ideas
imported from China.
166 Chapter 4

In Focus

What is Confucianism? Confucius lived about 2,500 years ago, and his teachings affirmed an existing social order
that reached from the Emperor (the “Son of Heaven”) down to the lowest levels of Chinese society.
Confucianism is often mistakenly called a religion by people in the West, but it is not. Confucius’ precepts were eth-
ical guidelines for behavior to which a true gentleman (junzi, pronounced jooin-zuh) should aspire. The ideas were pre-
served, challenged, and revisited over the centuries. Neo-Confucianism, a synthesis in the Song dynasty (960–1279) of
Daoism, Buddhism, and the commentaries on the works attributed to Confucius written over the 1,300 to 1,400 years
since his death, was exported to Korea, Vietnam, Taiwan, and later Hong Kong and Singapore. Those cultures still pre-
serve the orientation toward a hierarchical organization.
In the Five Relationships described in literature attributed to Confucius, a husband is superior to his wife, who owes
obedience to the man. Parents are superior to children, who owe parents respect, obedience, and reverence—the fa-
mous teaching of “filial piety.” The emperor is above his subjects; the servant is below his master, and only one rela-
tionship, friend to friend, is equal. Unequal relationships characterize Asian cultures, and probably existed a long time
before Confucius’ life.
The highest status in society, according to traditional Chinese thought, belonged to the scholar. Only scholars were
trusted with the task of administrating the country and carrying out the emperor’s justice. Next highest were the farm-
ers whose labor provided sustenance for everyone. After farmers came soldiers and artisans, and at the bottom of the
ladder were those engaged in commerce. Strange as it may seem in view of the rapid economic growth and dynamic
businesses in Asia in the past half-century, businesspeople were traditionally held in contempt. They were thought of
as parasites who would seek financial gain from merely brokering commodity exchanges; they were merchants and
traders who created nothing by their labor. Even today in villages of western China and Tibet, merchants do not sell to
their own family members. If the entire village is related in some way, nobody lives by commerce. (As we noted ear-
lier, Confucianism is not a religion. Nor is it a systematic basis for a nation’s economic behavior, although many popu-
lar business writers have treated it so. Most Asians do not learn Confucianism in formal settings. Much of what is
called “Confucian” by authors writing in English is actually traditional Chinese culture.)

The difference between horizontal cultures and hierarchical cultures lies in

what birth means. In a hierarchical society, you are born into a level that you can-
not leave no matter what your education or income. In a horizontal society, you are
able to rise to a higher level than you were born to, with more status, more power,
or more wealth, based on merit.
People of the United States value social mobility because historically most
immigrants to the United States were escaping a more rigid system that worked to
their disadvantage. The United States proudly calls itself “the land of opportu-
nity,” and its people—for example, Arnold Schwarzenegger—tell stories about
individuals of humble birth who began with nothing and became known and
powerful and rich. Schwarzenegger first became a well-known body-builder, then
a movie star, and then a governor of the state of California. Horatio Alger wrote in
the early 1900s for a young male audience about boys who worked hard and single-
handedly changed their level in society. His stories became widely accepted as a
true type for citizens of the United States.
 The Self and Groups 167

Generations in the United States were raised on the twin ideas that everyone
ought to be able to rise in society through hard work and achievement, and that
rising to the top is unquestionably desirable. For them, the hierarchical social
organization common to other cultures has been baffling. Why would anyone
embrace a system that keeps you at one level all your life? (However, as young
people face the prospect of not rising and even of not attaining the level of their
parents, the permanence of class membership has an appeal that may have been
previously unrecognized.)
Both Australia and New Zealand have proudly let it be known that they have
had prime ministers whose education ended with high school but who have
nevertheless not been held back from rising to the highest level of political
achievement. New Zealand is a highly egalitarian, flexible, horizontal society in
which birth alone does not determine what level an individual may attain in the
society. (This is true in the general society for both Māori and Pākehā.) This
attitude toward mobility is very different from Great Britain, from which a large
number of the European people of New Zealand trace their roots.
In England in the 1940s, servicemen from the United States had a hard time
grasping the fact that the English had ideas about who could eat appropriately at
which restaurants or vacation in which hotels, according to membership in a class.
The attitude held by the majority in England has been that everyone has a place or
station in society and that is where one is most comfortable. To try to rise above
one’s station is to ask for discomfort or even pain. To lower oneself is equally
wrong and brings about disastrous consequences. These attitudes are not as
strongly held as they once were in England. Nevertheless, although highly re-
garded entertainers and sports heroes blur class distinctions today, traditional
attitudes still exist.
The majority of people in hierarchical societies don’t seek a change in status
out of their birth level. They are comfortable knowing what the levels are and
where they fit. In Central America, for instance, millions of people of humble birth
seek not to move to another level of society but rather to carry out their lives taking
responsibility for the things within their scope.
Business organizations in hierarchical societies reflect the same hierarchical
structure. People have no desire to lose the security of knowing who is where in
relation to everyone else. They do not wish to exchange that security for a wide-
open, unstructured system in which everyone is on an equal footing. In Indonesia,
businesspeople were alarmed by the familiarity with which an Australian joint-
venture representative treated them, asking them to call him by his given name, for
example. Where was his sense of self-respect? Didn’t he have a high regard for his
subordinates? If he did, surely he wouldn’t insult them by treating inferiors the
same way he treated their betters. An intention to appear friendly and egalitarian
on the part of an Australian can come across as foolish and dangerous to his
subordinates.

Approach to Authority: Direct or Mediated?

Authority means different things in different cultures.
168 Chapter 4

In Focus

A Pakistani-based Canadian manager was approached during office hours by a cousin of one of his employees, com-
plaining that a neighbor had cheated him over a land deal. The cousin himself was not an employee, and the Canadian
manager didn’t know him. Nevertheless, he wanted his cousin’s Canadian boss to come and sort out the claims and
counterclaims. This role as a kind of arbiter or judge for local disputes would normally be carried out by the highest-
ranking (Pakistani) person in the area. The Canadian, by virtue of his status as a manager, was expected to fill the role.
It was a vital social function of social leadership that went far beyond his position in his company.19

The relative importance of hierarchy and the priority assigned to form both
relate to another factor: How does one approach an authority figure? Is it by sim-
ply and directly appealing to that person? Or is access more appropriate if done
through mediators, representatives, or lobbyists?
In many cultures, the approach to authority is indirect. Only certain avenues
lead to the seat of power; only approved escorts can take you to their leader. In
Latin-American cultures, a mediator is typically the way to reach authority. Often
this is also one’s patron.
The patron–client relationship is a reciprocal one in which the patron looks
after the interests of the client and helps smooth difficulties and further the client’s
career. The client is loyal to the patron and supports the patron without swerving;
the client helps build up the patron’s power base through this loyalty. The
patron–client relationship functions when the authority to be approached is high
above the client in a hierarchical structure.
In Mexican organizations where a patron–client relationship often applies, the
manager is owed respect because it has taken some effort (good performance) to
reach the position of manager, or it is a result of birth, or both. The power distance
between manager and workers is large, so the manager is somewhat remote from
workers. Often intermediaries open doors so the worker can approach the man-
ager, or perhaps intermediaries even carry the message for the worker.
The patron–client relationship also was typical of business organizations in
pre-communist China, where the senior would ti ba (pull up) his junior person
through mediation on his behalf (it was always men) as well as create opportuni-
ties for the junior. In return, the junior gave the senior man absolute loyalty and as-
siduous work. In the patron–client relationship, the client moves upward with the
patron’s promotions. The patron–client relationship is one of tyro and protégé,
master and disciple, but it exists within the larger context of a hierarchy, at the top
of which is the great power.
Another common hierarchical pattern requires an individual to approach au-
thority only through the established channel of superiors; one’s superior goes to his
or her superior, who then goes to his or her superior. There is no formal
patron–client relationship, and usually the hierarchy operates by status and job title
as much as by inherent individual status. The position—the rung on the ladder—is
 The Self and Groups 169

more significant than the individual who holds the position. This is particularly true
in organizations and cultures where there is job mobility. In a German organization,
for example, the manager of a department may move to a different department, or
a higher position, or a new employer. Regardless of whether the superior is the same
person or not, a subordinate nevertheless will go first to the manager, whoever that
is, who will then go to a superior, and so forth.
In hierarchical cultures where the approach to authority is through mediators,
low-level employees rarely have any communication with high-level employees.
Communication tends to be mostly downward, occasionally lateral. Messages are
often directive, or a combination of directive and informative. Sending a message
from the many at the bottom upward to one of the few at the top is difficult be-
cause there are many roadblocks to unsolicited upward messages. When messages
from below are solicited, there are constraints upon the content; Those at the top
do not favorably receive messages that are contrary to what they want to hear.
In New Zealand, in which horizontality has priority, the approach to authority
is direct. Everyone calls former Prime Minister Dame Helen Clark by her first
name, even to her face. People like the idea they can “go straight to the top” and
like to think that an individual who wants to get a message to the boss simply walks
into the boss’s office and speaks to him or her face to face. In spite of a fondness
for this image of easy access to authority in New Zealand—and in the United
States, too, in fact—in large New Zealand and U.S. organizations the hierarchy can
be rigid, and access to authority can be restricted. Small organizations lend them-
selves more easily to lateral power and communication structures, while large
organizations often have levels of authority and mediated access.
What does this have to do with intercultural interaction for business? Here is an
example. A consulting engineer from the United States on a hydroelectric dam
joint-venture project in Brazil may assume equality with a Brazilian who is also a
consulting engineer and may assume direct access to that person. But in fact the
Brazilian may think that the correct channel for official communication is from
the consulting engineer to a superior—say the project manager—and then to the
highest-level person from the United States partner of the joint venture, who com-
municates with the highest-level Brazilian, who will communicate down to a
Brazilian project manager, who will communicate to a Brazilian engineer. Getting
the communication right, with the right person, can make the difference between
success and failure in a joint-venture project.
This tooth-pattern communication often seems ridiculous, time-consuming, and
inefficient to United States businesspeople. But then, they are not as concerned with
hierarchy and status; they place a high cultural priority on direct access to authority.

Conclusion
This chapter, together with the one preceding it, has given 24 questions to pose of
cultures in order to gain an understanding of business priorities. Whether you
know a lot or nothing about a culture, you can use these categories in order to dis-
cover the why: why they act that way or think that way or have that belief.
170 Chapter 4

These categories of questions can help you come to terms with aspects of an
unfamiliar culture in a way that will enable you to make good guesses about how
people will behave in situations you have not foreseen. No list of do’s and don’ts
can do that for you. The five categories give you a framework for creating, in an
ongoing process, your understanding about what things matter in business with
another culture.
Some dimensions cluster together, as we have pointed out. For example, cul-
tures that prefer individual achievement and activity also often tend toward a direct
approach to authority, toward a view that humans can prevail over nature toward a
view that change is positive, and toward a view that planning instead of luck
determines success.
Cultures that are collectivist have long-lasting group memberships, tend to pre-
fer form, are hierarchical, use mediated access to authority, tend to be less averse
to uncertainty, may wish to keep things the way they are and avoid change, and
often bend the rules to accommodate relationship needs.
To repeat what we said at the beginning of Chapter 3, learning about a culture
is an ongoing experience. You may never feel you know a culture completely. In
fact, after reading this chapter you may feel you have learned things about your
own culture you didn’t recognize before. However, the more cultures you under-
stand, even with a little insight, the more you’ll know your own. And now you have
a five-pronged tool for learning about any culture.

Summary This chapter first discussed questions in the category of Self.

• Is the basic unit of society the individual or the collective? This is perhaps the
most researched dimension of culture. It forms a good starting point for clus-
tering a number of cultural dimensions.
• Is obligation a burden or a benefit? Collectivist cultures tend to see it as a ben-
efit to nurturing relationships. Individualist cultures tend to see it as a burden
to independence.
• Is seniority valued or discounted? In hierarchical, collectivist cultures, age of-
ten places people at the top of the ladder. Youth is valued by horizontal, indi-
vidualist cultures.
• Are women equals or subordinates? The answer to this question may involve
finding out how roles and status are attributed to women in a particular culture.
Women make up more than 50 percent of the world’s employees.
The chapter then looked at the category of Social Organization. This is one of
the most important categories for intercultural business interactions, since it helps
explain the cultural context of businesses.
• Is group membership temporary or permanent? An insight into this cultural di-
mension comes from attitudes toward family membership. Collectivist cultures
treat group membership as permanent, serving the group’s needs, while indi-
vidualist cultures treat group membership as temporary, serving the individ-
ual’s rights.
 The Self and Groups 171

• Is form important or untrustworthy? Form, or protocol, tends to be highly val-

ued in cultures that are hierarchical, where face can be lost by not conforming
to etiquette, where harmony in the group is important, and where relationships
matter. It is distrusted in cultures that associate emphasis on etiquette with
phoniness and superficiality; often these are cultures where individual results
matter.
• Are personal matters private or public? Employees in some cultures assume
personal circumstances should be shared with everyone. These tend to be
relationship-oriented collectivist cultures. In individualist cultures, an em-
ployee may wish to keep some personal facts private and not even tell the boss.
• Is social organization horizontal or hierarchical? The general pattern in society
also is reflected in companies. Where hierarchy characterizes the national or
social culture, companies also will have a clearly defined corporate ladder. The
levels are generally agreed upon by members of the collective. In horizontal
cultures, people can move from their birth level up (or down) as their individual
achievements and desires warrant. Mobility depends on the accomplishments of
individuals, although their families may partake of the new status.
• Is approach to authority direct or mediated? This is related to how hierarchical
an organization is and how much weight an individual has. In collectivist and
hierarchical cultures, business organizations tend to be hierarchical, and au-
thorities are remote, making one or more intermediaries necessary. In individ-
ualistic and horizontal cultures, organizations tend to be more horizontal, with
authorities more directly accessible.
You can ask these questions of a culture, assign that culture a place along the
continuum represented by the question, and see how a culture’s profile takes
shape. Once you have plotted a culture somewhere on the dimension between
individualism or collectivism, for example, you can slide the marker of the culture
one way or another based on new information you receive. Your placement of a
culture along a dimension can shift with your growing knowledge.

Notes 1. Yale Richmond, From Da to Yes: Understanding the East Europeans

(Yarmouth, ME: Intercultural Press, 1995), pp. 51–62.
2. Hazel Rose Markus and Shinobu Kitayama, “Culture and the Self: Implica-
tions for Cognition, Emotion, and Motivation,” Psychological Review, 98
(1991), pp. 224–253.
3. Gary Katzenstein, Funny Business: An Outsider’s Year in Japan (New York:
Prentice-Hall, 1989), pp. 74–75.
4. Linda Beamer, “Bridging Cultural Barriers,” China Business Review, 5–6
(1998), pp. 54–58.
172 Chapter 4

5. Robert J. House, Paul J. Hanges, Mansour Javidian, Peter W. Dorfman, and

Vipin Gupta, eds. Culture, Leadership, and Organizations: The GLOBE Study
of 62 Societies (Thousand Oaks, CA: Sage, 2004).
6. Geert Hofstede, http://www.geert-hofstede.com/hofstede_new_zealand.shtml.
Retrieved August 3, 2009.
7. House, et al., Culture, Leadership, and Organizations, pp. 468–469.
8. Edward C. Stewart and Milton J. Bennett, American Cultural Patterns: A Cross-
Cultural Perspective, rev. ed. (Yarmouth, ME: Intercultural Press, 1991), p. 96.
9. Larry A. Samovar and Richard E. Porter, Communication between Cultures
(Belmont, CA: Wadsworth, 1991), p. 131.
10. Dolores Cathcart and Robert Cathcart, “Japanese Social Experience and Con-
cept of Group.” In Intercultural Communication: A Reader, 4th ed., Larry A.
Samovar and Richard E. Porter, eds. (Belmont, CA: Wadsworth, 1985), p. 193.
11. Geert Hofstede, Cultures and Organizations: Software of the Mind (Berkshire,
UK: McGraw-Hill, 1991), p. 94.
12. Wild Shea Tree Benifitting Burkina Faso: Women Engaged In Shea Sector
Gain From Trade In ‘Shea Butter’ http://genderandtrade.org/gtinformation/
164419/164962/168885/shea_butter/. Retrieved January 7, 2010.
13. “Women’s Economic Capacity—Building in the Sheanut Sector,” Financial
Times Information, Accra Mail, March 3, 2003. Retrieved from Lexis-Nexis,
May 26, 2003; “Burkina-Faso: Women’s Economic Capacity—Building in
the Sheanut Sector,” Africa News, March 3, 2003. Retrieved from Lexis-Nexis
May 26, 2003.
14. http://www.un.org/Conferences/habitat/unchs/press/women.htm. Retrieved on
August 4, 2009.
15. Fei Xiaotong, Shi Hui Diao Cha Zi Bai [Statement about Social Investigation],
unpublished trans. by David Tsow (Shanghai: Zhi Shi Chuban Shi, 1985),
Chapter 4.
16. Yale Richmond, From Nyet to Da: Understanding the Russians (Yarmouth,
ME: Intercultural Press, 1992), p. 120.
17. Boyé Lafayette De Mente, Kata: The Key to Understanding and Dealing with
the Japanese (Boston: Tuttle Publishing, 2003).
18. Hiroki Kato, “From FOBs to SOBs: Japanese Vary Too,” Newsaction (North-
western University, IL), 36 (1988), p. 30.
19. Richard Mead, Cross-Cultural Management Communication (New York:
John Wiley & Sons, 1990), p. 73.
C H A P T E R F I V E

Organizing Messages
to Other Cultures
When American Express writes to potential customers for its credit card in the United States,
the letter begins with mention of milestones on the road to individual success. Results-oriented
cultures value measurements of success, like the carved stones on English highways that told
travelers how far they were from London, the presumed goal of every journey. American
Express tells letter readers that only those who have already achieved a certain “measure of
financial success” merit their credit card, along with the benefits American Express offers. One
of the benefits it offers, to those who have already proven by their results that they merit it, is
no set spending limit in advance. Another benefit is the ease of application: Just complete the
short form and sign. People who are busy obtaining results want simple steps to getting the
credit card. The letter uses a symbol, a centurion that is recognized as a logo of American
Express. His helmeted profile signals responsibility, fearlessness, and strength.
When American Express writes to potential customers in Mexico, however, the emphasis
is on membership in the society of cardholders. Not everyone can appreciate the card’s true
worth, the letter says. Members are only those who can appreciate it—and by implication the
receiver of the letter is one of that select group. “Now you, like [equal to] those” can count on
the incomparable services and benefits of the card. The reader is invited to take a few min-
utes to look at how the credit card can help in various situations. The letter urges the reader
to “ask anyone” about the wide acceptance of this card in fine establishments. The message
is that anyone in the know recognizes the membership that this credit card confers.
The letter goes on to say “you have seen” that cardholders don’t need to worry at the
moment of paying, when taking family or friends out, because there is no credit limit.
In Mexico, the bill for dining or entertainment is never shared; one person hosts the rest.
Avoiding embarrassment from not being able to pick up the tab because the credit card is
maxed out is a selling point in Mexican culture. (Ads in the United States also mention
“no spending limit,” however.)
“Surely anyone knows . . .” that the medical and legal assistance you can obtain when
traveling is worthwhile, says the letter. With a few phrases, the letter sketches a host of
knowing people who form an in-group of cardholders. A nonverbal symbol, the image of the
card itself—a badge of membership—appears, but no rugged individualistic centurion.
The appeal is to Mexican collectivism.
173
174 Chapter 5

Furthermore, although both are direct-mail sales letters, the U.S. letter underlines specific
phrases for emphasis so as to make the main points stand out. The Mexican letter is gracious
in tone and has no underlined points or bullets to grab the reader’s attention. The reader instead
is guided through various scenarios in which she or he will benefit from being a cardholder.1

This chapter examines the way culture impacts business correspondence and other
documents. After a review of the communication process, the chapter looks at how
communication is organized for routine, persuasive, unwelcome, and problem-
solving messages. It then considers the force and role of words in various cultures,
the channels of business messages, and finally cultural factors in writing style.

Review of the Communication Model

How does communication take place between organizations? As with communi-
cation between individuals from different cultures, when organizations communi-
cate from different cultures, the potential for failed communication is multiplied.

Meaning and the Communication Model

Communication is usually modeled as a process. That is, although the model itself
is a static, two-dimensional diagram on the page, it in fact represents constant
movement. The basis for most communication models is that an Idea travels from
Sender through Channel to Receiver. To these four basic components are added
(1) the notions of encoding and decoding the idea into a message in verbal and non-
verbal vocabularies, (2) the idea of noise as interference with the transmission, and
(3) feedback from the receiver to the sender. The process of communication thus
has come to be thought of as circular and simultaneous. The communicators un-
derstand meaning from the messages they exchange based on their culture. When
they operate within different cultures, their meanings are likely to be different, too.
This model shows the receiver as the sender and the sender as the receiver
(see Exhibit 5.1). The process operates in double circles, each starting with and
returning to each communicator.
But where does culture go in this model? Culture is not really visible in this
process model, yet it is absolutely critical.
A few sentences ago you read that an idea travels from sender to receiver. En-
glish communication is often perceived as a stream or continuous flow of coded
elements. “Bits” and “bites” of information are sent “like so many billiard balls—
from a sender to a receiver.”2 This image isn’t really the best way to think of
communication, though. In fact:
The idea itself does not really travel, only the code; the words, the patterns of
sound or print. The meaning that a person attaches to the words received will come
from his own mind. His interpretation is determined by his own frame of reference,
his ideas, interests, past experiences, etc.—just as the meaning of the original mes-
sage is fundamentally determined by the sender’s mind, his frame of reference.3
The meanings do not move from sender to receiver. They remain in the data
banks of the sender and of the receiver, and the reception of the message triggers a
decoding into meanings stored in the receiver’s mind. This describes communication
 Organizing Messages to Other Cultures 175

EXHIBIT 5.1 The Process Model of Communication

Channel Feedback
(with noise)

Decoding Encoding
A B
Idea of Idea of
S / R S / R
communicator communicator

Encoding Decoding

Feedback Channel
(with noise)

S = sender
R = receiver

between individuals, and the same is true for organizations. When the organization that
receives a message has a similar frame of reference as the organization sending it, then
likely both organizations assign similar meanings to the message. The more different
the stored experiences, categories, attitudes, values, beliefs, and behaviors are—that
is, the more different the cultures—the more likely it is the members of the organiza-
tions will assign different meanings to the encoded message. The message will not be
understood. This is what happened to the company that sent a message in English that
it would like an order filled “right away”; its Korean receiver anxiously responded, say-
ing it would be happy to fill the order but asking what was the “right way”?
So, while communicators operate from a set of culturally determined meanings
that may not exist in the receiving organization, at the same time we have to assume
some similarity in meanings or else we can’t begin to do business. Simply put, the
intercultural business communicator has to try to get the assumptions right. One
way to improve your chances of understanding the meanings of the other commu-
nicator is to use a matrix of intercultural dimensions such as those we have just seen
in the five categories of questions to pose of cultures, discussed in Chapters 3 and 4.
When you understand where a culture’s priorities lie along certain dimensions, you
can begin to make informed guesses about what messages mean.
Besides meaning, how does culture affect the way organizations structure and
encode-decode messages both as senders and receivers? This chapter is about
process more than meaning. In other words, it considers the how of intercultural
business communication using examples to illustrate. The chapter also examines
the why, who, where, and when of the process.
176 Chapter 5

Why: The Purpose and Factors of Communication

Business functions require communication. In other words, business communica-
tors send messages because they want to perform certain functions for the orga-
nization. A basic fact about business communication is that it is purposeful.
Senders of business messages have the following purposes:

• Instructing
• Directing
• Informing
• Reporting
• Eliciting information, opinions, authorization
• Generating enthusiasm
• Resolving conflicts
• Analyzing situations and problems
• Motivating
• Negotiating
• Selling
• Reprimanding
• Refusing
• Evaluating
• Persuading
• Agreeing
• Granting requests
• Proposing
• Transmitting other messages (documents)

These are largely goal-oriented purposes. Purposes that contribute specifically to

nurturing relationships are also important. They include:

• Praising
• Expressing concern or sympathy
• Encouraging
• Coaching and mentoring
• Thanking
• Rejoicing with the receiver
• Warning about possible problems
• Guiding around pitfalls
• Apologizing
• Expressing acceptance of an apology
• Reconciling
• Expressing hope
• Congratulating
 Organizing Messages to Other Cultures 177

In Focus

The earliest written business communication we know of comes from Sumeria—present-day Iraq. The messages
were about trade and labor, which are subjects of modern business communication, too. Even earlier, scribes keeping
commercial accounts would make miniatures of objects being sold, and by 3400 B.C. they would scratch pictures of
the objects in damp clay. Later they came to use symbols to represent the pictures, since that was faster. They used
reeds to write with, pressing the end of a reed into wet clay tablets to produce wedge-shaped images that are called
cuneiform, from the Latin words meaning “wedge form.” When by 2100 B.C. they used specific patterns of wedges
to represent sounds, the Sumerian scribes had developed a system of writing that could serve business needs.4
Exhibit 5.2 shows a record of payment for five cows. The translation is line by line.

EXHIBIT 5.2 Line one: Five full-grown cows

A Sumerian Record Line two: From Ludingira, son of Irhula,
of Payment for Five Line three: Shulgi-ayamu accepted;
Line four: Month, the 28th day has passed,
Cows Line one: (blank)
Line two: Month “piglet meal,”
Line three: Year: ìAmar-Suen destroyed Urbilum.”5

(Continued )
178 Chapter 5

Another example of a cuneiform business text dates from about 2036 B.C. It is the year’s account by a foreman called
Lu-Šara of the work done by 33 laborers, whose names are all recorded, along with the kind of work they did and how
much time each worked. The agents of the household set the tasks, and foreman Lu-Šara used the actual time the
laborers worked, verified by receipts, along with the time that had been established, in this planned Babylonian econ-
omy, that they should have worked. The foreman calculated an annual total of worker days, which is how production
was expressed. The record shows a deficit of 1,700 worker days for the year. “It is difficult to overstate the seriousness
of these deficit workdays for the foremen involved, since a capricious central administration at the level of the province
governors, or the crown in Ur, views them as effective loan debts that can be called in at will.”6
The workers harvested grain and maintained or dug new canals. For example, 150 worker days were counted for
harvesting grain and piling the sheaves up in the “Oxen boot field, in the field Constructed wall, in the field Cattle
herder of Nin-Arali and (in the field) across from the new field.”7 They plastered silos and threshed grain to store in
them. They also did irrigation work, excavating to put water in fields. Workers also are recorded as transporting prod-
ucts, including oil, cheese, and fish, by barges along the canals. The scribe carefully concludes that all the work took
place in the year “the boat of Enki was caulked.”
In these Sumerian examples from more than 4000 years ago, the purpose of communication was meticulous record
keeping, made possible by the cuneiform system. The writing was an important tool for a hierarchical culture that
controlled economic resources carefully.

Communication skills are highly valued by organizations. The functions of plan-

ning and implementing strategies for achieving goals are important. People who do
these jobs are valued when their communications are successful. Measuring
progress toward goals is also important to these organizations. People who can com-
municate their estimating, monitoring, and justifying of costs are valued. Identify-
ing obstacles and communicating speedy methods for removing obstacles are
valued. Finding ways to motivate workers to achieve goals is important, and man-
agers who can motivate employees are valued. Timing of steps is important, and of
course money to pay for them is important; employees who communicate about
scheduling and costing are valued. Selling a product or service to the largest or best
market is important, so communicating to promote and sell is valued by the organi-
zation. Since the organization needs to know when goals have been reached, people
who can quantify and assess productivity and employees’ performances are valued.
The development of the double-entry bookkeeping system in Europe at the end of
the Middle Ages meant that businesses could accurately show financial transactions.
Some argue that the new financial communication tool sped up the development of
“modern” business.
Organizations value employees’ knowledge and try to capture that knowledge
for the benefit of others who serve the organization. The methods employees
use for communicating what they have learned vary, but the goal is to have effec-
tive communication in place so what employees know about working in a specific
position is not lost when they move from that position.
Purposes are the why of business communication. All cultures value the func-
tions previously listed. However, agreement across cultures about how the
 Organizing Messages to Other Cultures 179

purposes are accomplished is rare. How involves the way messages are organized
and encoded and will be our subject for the rest of this chapter. But before we turn
to it, we’ll look briefly at the other process aspects of communication.

Who in Business Communication

When organizations agree about the purpose(s) of a message, they are likely to as-
sign similar meanings to it. When they agree about who is involved, they also
lower the risk of an unintentional message—say, about status—interfering with the
meaning. They can agree whether communication is one-way, as from a superior
to a subordinate organization—perhaps a head office to a subsidiary in another
country—or two-way, as between subsidiaries of similar status. This is related to
the notion of access: If one organization makes its access open (open means
several levels can communicate with the other organization), then the other or-
ganization can agree to be open. Closed access means the messages have to go
through one person or one job function.
Who within an organization is the appropriate person to receive or send a mes-
sage? Questions of status are tricky. In organizations that value hierarchy, the sta-
tus of the communicator is important. But in organizations that are horizontal, the
role (the job function) of a person may be more important than status (the job title).
As we saw in Chapter 4, who definitions may come down to family relation-
ships. You may be the son of the company’s chief executive officer (CEO) and
therefore able to speak for her, which will make your message different from
someone who is a junior employee and not a family member. Similarly, you may
want to know that the receiver of your message is the son of the CEO.

Where: Channels of Communication

Organizations can also agree on the channel of communication, or where it will
take place. Channel choice involves the issue of what should be put in writing and
what should be communicated orally. Will messages be communicated by fax?
Telephone? E-mail? Facebook post? Face-to-face exchange? When communica-
tors agree about the channel, they can avoid misunderstandings on that score. Such
misunderstandings may seem trivial but can be significant.
Individuals and organizations are always running up against problems that
could have been avoided if the channel had been agreed upon. Americans are con-
tract makers and usually don’t think any agreement exists unless a contract has
been written and signed. But in other parts of the world an oral statement is as
good as a contract, if it is within the context of a relationship. A member of a
United States organization can innocently say, “Oh, I’d really be interested in that
new product,” meaning at some future time it sounds like it could (conditional)
be worth looking into more closely. But a member of an Asian culture, in which
relationships make contracts possible, may understand such a comment as “I will
be looking forward eagerly to receiving that product.” If an oral channel, like the
telephone, is used for making agreements by one communicator, and a written
channel, like a contract, is used by the other, misunderstanding can result.
Agreeing on the appropriate channel can save companies trouble.
180 Chapter 5

When is it appropriate to leave a voicemail message rather than speak with

the person? In Latin America, a voicemail message may be fine for making con-
tact but not for giving substantive information. In cultures where relationships
come before results, doing business with a voice message appears heartless and
impersonal. In England, leaving information on the voice message system may
seem an efficient way to move forward toward a business goal.

In Focus

Chinese users of technology are notably reluctant to respond to telephone voicemail. Before mobile phone technology
became more widespread than landline telephones, it was the telephone itself that Chinese had a distaste for
answering. One of the protocols, as a manager in Shanghai reported, was “Never tell your name!” If the intended
receiver of the phone call was out, a caller was usually told “Not here!” followed by a disconnection click. Often
phones in offices would simply ring and ring without being answered. Phone calls were rarely returned.
But now nearly everyone has a mobile phone and It seems nobody ever turns it off, not during meetings or at the
movies or even at funerals. Text messaging is popular, too. However, Chinese do not pick up voicemail messages
and rarely leave them. One businessperson was sent to China seven years ago with the instruction to get a good
phone with long-distance capability and voicemail. He did, but never received a voicemail message on a landline.
One cultural reason Chinese reject voicemail is senior-status persons feel they lose face by leaving a message for
a junior who can pick it up at his or her convenience instead of being instantly responsive to the caller. Because
personal relationships are so important in doing business, Chinese also have a cultural preference for face-to-face
meetings, which is the way most transactions are conducted. Often a face-to-face meeting has to take place first,
before a Chinese business contact will give out a mobile phone number. Another Chinese behavior with telephone
technology involves using cell phones in meetings. Before mobile phones were in wide use, Chinese meetings
included interruptions from subordinates bringing messages, subordinates pouring tea for everyone, and entrances
from latecomers. Today the tolerance for interruptions includes taking calls from cell phones. Could this be con-
nected to status? Public evidence that one is important and in demand enhances one’s face. Perhaps it is also
connected to a polychronic approach to tasks. Or perhaps the primary explanation for the Chinese behavior of
answering and sending mobile messages during meetings is their reluctance to use the more impersonal voicemail
and their preference for direct personal contact.
In some U.S. and European companies, voicemail is used much more than e-mail because busy executives who
travel frequently can’t stop to read and write e-mails. Foreign businesspeople are often frustrated by their inability to
reach Chinese through voicemail, although no documentation exists that business has been hurt because of it.
Nevertheless, China remains a “voicemail-free zone.”8

The same general rule may apply to the use of text messages: Results cultures
rate efficiency highly, whereas relationships cultures rate personal contact highly.
Cellular text messages are typically short and use an encoding system of phonetic
abbreviations that depart from standard language usage. “R U OK mtg 2day—C U
@ 3?” looks very informal compared with a standard written request: “Would it be
convenient for you to meet with me today at 3 p.m.?” In organizations where form
is an important part of the culture, distortions of language and format in business
communication may not be productive.
A further discussion of communication channels appears later in this chapter.
 Organizing Messages to Other Cultures 181

When: Time and Timing of Communication

When to communicate is more complex than simply keeping time zones in mind,
although that can be complex enough in a worldwide organization. Global busi-
ness means having to stay up late in Germany to communicate with Hong Kong or
having to rise early in Mexico to communicate with Israel.
Cellular telephone technology has made it possible for people to reach across
continents and time zones to speak to one another. John in Australia can take a
phone call from Aziz in Dubai about the latest news from the Foster’s Brewing
International Ltd. company branch—even when it is 10 p.m. in Sydney and John
has just left a concert—if Aziz has his mobile phone number. Worldwide satellite
transmission of mobile phone messages has increased communication efficiency
for international firms. It has also extended the workday for employees, eroding
the distinction between work time and private time. Future research no doubt will
track the ways cultures view and react to this blurring of work and private life.
Knowing when to communicate also means choosing the right moment for a
particular message. Can you raise a business issue during lunch with someone
from another culture? (Sheila Graham, in the opening case to Chapter 4, made that
mistake.) When riding in a host’s car? During a casual moment? Or only in a for-
mal environment? Often this is related to the question: “Who is communicating?”
You may choose a formal moment to discuss sales figures with the executive vice
president, but an informal moment with the manager of accounting.
The question of who goes first in negotiation is in part a when question. North
Americans often assume that every culture wants to go first and get their position
out on the table because frequently they do. Teams in Japan or China usually want
to be last so they can hold back their own position until they’ve heard the other side.
When to communicate also involves being “on time,” something discussed in
Chapter 3, as well as the issue of a simultaneous versus sequential approach to
tasks. If you are expecting exclusive attention from someone whose typical method
of operating is to carry on several communication tasks at the same time, you may
be disappointed. Someone who expects you to be carrying on simultaneous tasks
may be uncomfortable with exclusive attention.

Organizing Routine Messages

The Direct Plan
Business communication books come mainly from Western cultures, particularly
the United States. Accordingly, their authors tend to emphasize the things that are
important in business communication in the United States.
For example, they urge writers to avoid ambiguity, get the message across clearly,
and be concise. Choosing words with care for exact and precise meanings and elim-
inating unnecessary words and phrases are keys to a successful business writing style
in the United States. Sentences are short and use a subject–verb–object pattern in
preference to complex structures. Active-voice verbs signify doing and achieving;
passive-voice verbs are passive, so a culture that values doing and achieving prefers
182 Chapter 5

active voice. Concrete nouns have shape, weight, and mass. What’s more, you can ex-
perience them, if only in imagination, with your senses. Abstract nouns are shapeless,
weightless, and amorphous. You can’t see or smell or touch them. They are very hard
to measure. Achieving, goals-oriented, can-do cultures prefer concrete nouns. Such
cultures often express abstract ideas in metaphors that are more concrete, such as the
sports metaphors discussed in Chapter 2. “Success,” an abstract word, is a less com-
pelling term to results-oriented cultures than “hitting a homerun” or “scoring a goal.”
Business communication books also often urge directness in delivering the
message. Cultural priorities in the United States include sincerity and openness; going
straight to the point displays both. Beating around the bush, on the other hand, suggests
you have something to hide. (This can be useful when the point of the message is one
you’d rather conceal.) When the message involves a straightforward request, or good
news, or information the receiver has been waiting for, indirectness seems unneces-
sarily complicated, even devious, and at the very least it seems to waste the reader’s
time. Directness shows consideration for the receiver of the message, since he or she
probably values time too much to waste it on unnecessary paragraphs or speech.
These reasons may explain why business communication texts from the United
States instruct writers to put the main message in the opening paragraph of corre-
spondence unless there is a particular reason not to do so. If you put the main mes-
sage at the end of the document, the busy reader may never get to it. Direct-plan
reports, written and oral, relay the conclusion and recommendations first, before the
slower information about how and why the report is being made, and what it covers.
After the main message comes the explanation. In correspondence, this may be
one or more paragraphs. In reports and proposals it includes several sections: pur-
pose, scope, methodology, facts, analyses, and interpretation. The tendency among
low-context cultures is to explain in a linear—often chronological—sequence.
Background information can help make the main message clearer, but the direct
plan stipulates that background information comes after the main message.
Here is a direct-plan letter from Jordan, translated from the original that is
handwritten in Arabic. The direct plan gets down to business immediately and is
the very best way to organize routine business messages for most American,
Canadian, Australian, British, New Zealand, and Northern European readers.
As Exhibit 5.3 shows, the direct plan is also used by some businessmen in the
Middle East for certain messages.
The main message is given before the specific detail. But it isn’t necessarily the
best way for members of other cultures to structure correspondence. For example,
the French can find the direct approach insulting. To high-context communicators,
a direct-plan message may seem rude and abrupt. The writer may be perceived as
unfriendly or unwilling to be in a relationship with the reader, “just wanting to do
business, not wanting to get to know us.”

The Indirect Plan

The indirect plan does not put the main message in the first sentence. This plan has
other priorities than the quick delivery of ideas, such as nurturing a relationship or
developing some other context for the message. Japanese business messages often
 Organizing Messages to Other Cultures 183

EXHIBIT 5.3
Sample Letter #1
AMMAN CIGARETTE TRADING COMPANY
Jabal Amman, 6th Circle, Al-Basra Street 12, 2nd Floor
Amman, Jordan P.O. Box 123456, Amman 11182
Tel. +962 6 7654321

Date: 28/3/2002
Reference FC/W/221

Respected Filterona Company, Jordan

Attention/ Respected Mr. Mohammad Abu Umman

Subject: Request for Filters

Salutations,

We request your courtesy in supplying us with 357 cartons of Cigarette filters, each carton
to contain 22350 filters; therefore the total will be 7978950 filters, with the same
specifications that you have supplied us before, requesting the delivery as soon as possible,
using this information in the Iraqi manifest:

Sender : Amman Cigarette Trading Company/Amman

Receiver : Iraqi company for cigarette production
Mr. Samaani Utthman Makhmoud/Baghdad
Customs broker: Sa'ad al Jaff—Office (3) Tel: 5115115/7711717

Also, please supply us with a copy of the Iraqi manifest after it is issued.

We thank you for your good help,

Accept our utmost respect,

For: Khalid al Assel

Saif Khalil

begin with a reference to the season: “Now it is autumn and the red leaves are cov-
ering the ground with color.” In Muslim countries, the opening paragraph of a busi-
ness letter frequently invokes Allah’s blessing on the reader and the reader’s family
members, particularly when the business is family-operated.
Indirectness can achieve at least five results for the writer:
• Diffusing responsibility
• Revealing the subtlety of the writer
• Digressing to embellish the message
• Elaborating to show courtesy
• Developing a communication context
184 Chapter 5

Indirectness is often accompanied by deliberate ambiguity. Indirectness can

diffuse responsibility. Even in routine situations, such as a request for information,
indirectness saves face in case the request is denied or ignored. Indirectness sig-
nals the writer’s intention to take care over things, including care not to make the
reader lose face. Ambiguity means that words are chosen for their ability to mean
more than one thing, and patterns of words can have more than one interpretation.
Ambiguity has another function: It reveals the subtlety and sophistication of the
writer. What is not said may be as important as, or more important than, what is
said. Indirectness and ambiguity mean a writing style that favors circumlocution
rather than straightforwardness. Sentences may seem to ramble because ideas are
developed in relation to each other. Metaphors are preferred because they infer a
context of concepts and principles. They suggest unfolding possibilities.
Indirectness may also mean digression, or what may be termed side conversa-
tions and ramblings by results-oriented cultures. These added bits of circumstance
and situational description help develop a context for business communication for
members of relationship-oriented cultures. Edward C. Stewart writes:
Particularly in some African communication styles, excursions into related
subjects are normative, and listeners are expected to embellish the theme rather
than to prod for the main point or the problem. In the words of one African student,
“I know I have been understood when the other person makes statements that
express the same idea as mine.”9
Specific wording showing consideration for the reader often appears in
indirect-plan letters. Expressions of courtesy can become quite elaborate. Even
the standard French complimentary close, for example, for someone who is not
a close associate contains far more elaborate courtesy than English letters:
Veuillez agréer, Monsieur, l’expression de mes sentiments dévoués [Would you
please accept, Sir, the expression of my devoted feelings].10
Developing a context for communicating information is very important to members
of Asian cultures. This is based on the conviction that context is what gives meaning
to information, and without the context, the information cannot be properly under-
stood. In a study of Chinese-authored letters in the 19th century written to the Jardine-
Matheson Company, a British-owned trading company in South China, indirectness
correlates with the writer’s desire to establish a context.11 For instance, one writer
named Kean Wo Cheong, inquiring about the status of a shipment of silk in 1874,
begins “It is now about six months, no information has been given us, for that two cases
of Silk which was sent to Europe for sale through your Company on our behalf.”
Only after establishing this context in this sentence does the writer continue with
his main message: “We beg that we may be informed the amount realized from
the sale of the silk . . .” Establishing the context is perceived to be a way of
ensuring the main message is not misunderstood. By contrast, a direct-plan request
would simply begin, “Please inform us of the price obtained in the sale of our silk.” It
would then go on to give the details: the consignment made six months ago, the lack
of information to date, and so forth. What remains unsaid in the indirectly organized
message is the writer’s concern that the ship carrying the silk has encountered
 Organizing Messages to Other Cultures 185

some mishap and the silk has been lost at sea or been pirated away. Direct-plan users
often are low-context communicators who may put such worries into words.
To members of low-context cultures, indirect-plan communication can seem
tedious, slow, and unfocused. To them, it may seem that the writer is not able to
come to terms with the communication task. The reader may question the writer’s
thinking ability as well as writing ability (see Exhibit 5.4).
This is an example of an indirect-plan letter, translated from the original that was
handwritten in Chinese. The letter is a request for help from a third party in collect-
ing a debt. The main message comes in the next-to-last phrase. The person to whom
the message was written, Mr. Guo, has added a message in his handwriting at the
bottom and forwarded the message. Note that Mr. Guo’s message is also indirect.

EXHIBIT 5.4 Sample

Letter #2

Attn: CEO Mr. Guo

How are you!

For a long time we have not had any connection; how's your business been recently?

There is something I really ask you to concern yourself with, which is: Before the Spring
Festival our factory helped Xu Xuefong, supplying several hundred clothing samples to
him. The goods were already sent to him some time ago, [but] to date the payment has not
been sent to my factory. We have waited a long time [probably 90 days] as accounting
requires before we can close the account.
The international department also knows about this. I looked for him several times and he
mentioned payment, but up to now we still have not received payment. Would you please
help us speed up this matter?

Thank you so much.

Yang Zhiyan
186 Chapter 5

Organizing Persuasive Messages and Argumentation

Persuasion often uses an indirect approach in low-context cultures as well as high-
context cultures. This is when “beating around the bush” is preferable to direct-
ness, even in cultures that value directness for most kinds of communication.
You give the explanation first and then work your way to the main message. The
rationale for using this organization is that a reader will be persuaded by reasons.
If you marshal your reasons in a logical sequence and support them with facts, you
can persuade. This works in a culture where persuasive arguments are based on
objective facts. But not all cultures give facts high priority, and persuasion may
depend on who the persuader is rather than on the reasons.
EXHIBIT 5.5A Sample Letter #3

7.3.1997

Saksbeh. Mona glosli

AutoPark A.S.
Postboks 30 Stovner
0913 Oslo

Vedr.: Klage på kontrollavgift 0011031

Deres ref: 0011031

Jeg takker for brev datert 6.mars 1997, og o/nsker å opplyse om fo/lgende:

1. Jeg har en nesten ny bil og husket derfor ikke skilt nummeret.

2. Det regnet ganske kraftig og det var defor ikke spesielt hyggelig å lo/pe ut for å
sjekke om nummeret på bilen var riktig.
3. Resepsjonsdamene sa at det ikke var no/dvendig å skrive hele bil nummer ned,
hvis jeg skrev hvilken biltype jeg hadde. De sa videre at jeg bare kunne under-
streke numrene og sette enn “?” tegn ved siden av. Jeg fulgte deres råd og gjorde
som jeg ble bedt om.
4. At dine parkeringsfolk ikke forstår at ett “?” tegn betyr at vedkommende ikke var
sikker på nummeret, kan ikke jeg belastes for. Heller ikke at dine parkeringsfolk
ikke skjo/nner hvorfor en understreker nummerene samtidig som en skriver ned
hvilken bilmerke det er, kan jeg heller ikke belastes for.
5. Jeg kan ikke akseptere at jeg skal betale for denne boten etter at jeg fikk
godkjennesle i resepsjonen for hva jeg gjorde. Denne må være en sak mel-
lom dere og resepsjonen I Nixdorf.

Med vennlig hilsen,

B. A. Smith
Church Road 100
361 Oslo

(continued)
 Organizing Messages to Other Cultures 187

EXHIBIT 5.5B Sample Letter #3 (Translation)

7.3.1997

Saksbeh. Mona glosli

AutoPark A.S.
Postboks 30 Stovner
0913 Oslo

Re: Complaint on Registration Fee 0011031

Your reference: 0011031

I thank you for the letter dated March 6, 1997 and wish to inform you of the following:

1. I have an almost new car, and therefore do not remember the license plate
number.
2. It rained quite heavily and it was therefore not particularly comfortable to run out
to check whether the number on the car was correct.
3. The receptionist said that it was not necessary to write down the whole vehicle
number, if I wrote which type of car I had. She further said that I could just
underline and put a question mark “?” sign by the page. I followed her advice
and did what I was asked.
4. [The fact] that your [formal pronoun] parking staff does not understand that the
question-mark sign means that the individual was not sure about the number,
cannot be blamed on me. Furthermore, the fact that the parking staff does not
wonder why one underlines “number” while simultaneously writing down the
make of the car, I cannot be held responsible for.
5. I cannot accept that I should be required to pay this fine after I got approval
in the reception area for what I did. This must be a matter between you and
the reception function.

With friendly regards, [formal closing]

B.A. Smith
Church Road 100
361 Oslo

Argumentation and Logic

In low-context cultures, objective facts reside outside the communicator or the
organization. They have an independent existence. Facts often can be quantified and
measured. (Chapter 8 develops this notion in relation to the collection of informa-
tion, its reliability, and its validity in different cultures.) Since emotion is slightly sus-
pect, you are better off basing your argument on facts. After all, you can go to
court—an ultimate kind of persuasion—based on facts. You can count on them.
Exhibit 5.5 shows a persuasive letter that argues by marshaling facts. This letter
argues by carefully organizing facts into a logical sequence. The writer puts key
items in boldface type: the addressee (inside address) and the “therefore” conclusion
188 Chapter 5

of his argument at the end of the letter. The writer of this letter is unwilling to pay a
parking fine incurred for not filling in the car registration form completely for a
parking lot. He appears to present information objectively. He uses a numbered list
and takes an objective position about the “facts”: His car is new, it was raining, he
followed the receptionist’s instructions, and therefore he cannot be held responsible
for the error and the fine. His argument is constructed like a syllogism: The facts lead
to a conclusion that the writer puts in boldface type for emphasis.
This letter also uses sarcasm, something that may not always achieve the writer’s
objective and persuade the reader, even in a low-context culture. The writer says he
cannot be held responsible for the fact that parking staff do not understand the
question-mark symbol. Nor can he be blamed for the parking staff failing to consider
why the word number is underlined on the form while at the same time the make of the
car is entered on the form—showing he knows the make but not the number. This kind
of sarcasm is common in Norwegian culture and is a customary way for someone to
proceed in a complaint. Another sarcastic dig comes from the use of the informal you
singular pronoun throughout, except for the formal you in point number 4. (The reader
is an ombudsman or Skasbeh; her job is to hear complaints and attempt to give indi-
viduals with relatively little power some assistance in dealing with the organization.)
In high-context cultures, facts are not objective or impersonal. Words and
arguments are not separate from the writer or speaker who expresses them. Facts
come with a person wrapped around them. If you argue against those facts, you are
arguing against the person who uttered them. Even in a court of law, you can’t count
on facts to help you achieve your goals in cultures that do not put a high priority on
litigation; you have to count on people. Relationships are how things get done.
Since status is usually important in high-context cultures, the person is always
a key factor in how a message is understood. Words cannot be distinguished from
their source, and influential people can influence and persuade by virtue of their
status. Furthermore, in high-context cultures the web or context of relationships
and obligations is ever present. A tug on one side of the web sends vibrations
throughout the web. How can a receiver refuse to be persuaded when the entire
network—other people—know about the attempt at persuasion?

Western Persuasive Logic

The Norwegian letter is one example of European reasoning in order to persuade.
Greek philosophers 2,500 years ago presented the concept that each individual thing
has a unique core that is the basis of its identity. “Each thing” includes the physical
world of objects and the metaphysical world of abstract concepts. Once you take
away everything that an object or concept has in common with others, what is left is
the core. It is unchanging, and constitutes the basis of a unique identity.
Furthermore, the Greek philosophers thought that the individual identity—or
truth—of something can be discovered by looking for it. In other words, intellec-
tual inquiry is the way to find the essence or truth about something. This is an
important key to understanding the European and also North American emphasis
on truth and the emphasis on facts. It also explains the conviction in Western
cultures generally that it is possible to find out facts and learn the truth.
 Organizing Messages to Other Cultures 189

Another key to understanding Western logic is the principle of non-contradiction,

which also comes from classical Greek thinkers. We first encountered this principle
in Chapter 3. The principle says that two opposite things cannot both be true. (When
two opposites both claim to be true, that is a contradiction.) Since knowing the truth
is important to Western reasoning, when two opposites each claim to be true, mem-
bers of Western cultures become agitated and feel they are being deceived.
Because of the focus on facts and the truth, persuasiveness in Western cultures in-
volves presenting facts clearly and in a logical sequence. It also means distinguishing
between true and untrue since opposites cannot both be true, and urging the other
person to accept the truth.

East Asian Persuasive Logic

Persuasive reasoning in East Asia has roots that go back more than 2,500 years. An-
cient philosophers in China, such as Laozi (pronounced laow-dzuh), considered the
world and everything in it to be in a state of constant change. The way to understand
something, they believed, is to recognize how it is connected to other things. Every-
thing must be understood as a part of an interrelated context. Everything belongs in
a network or web of linkages, and the relationships and linkages are what give mean-
ings to things. This is quite different from the Greek-based approach, that holds each
item has a true core, and knowing the truth means finding that unique core.
The emphasis on connectedness, when applied to humans, results in a primary
concern for managing human relationships. Correct behavior, not truth, is the
focus of reasoning.
East Asians observe that because of constant change, contradictions occur of-
ten. Two opposite things often co-exist. Because of change and contradiction, one
single individual item cannot be isolated and examined independently. This leads
to an approach that can be called dialecticism. Dialecticism suggests that an
object, an idea, a value—almost anything—can be considered in relationship to its
opposite, and that in view of its opposite, the meaning of a thing can be discov-
ered. Daoism is an ancient Chinese approach for understanding the meaning
that exists in contradiction. Dao (pronounced dow) means “the way” in Chinese.
(In older writings it is spelled Tao.) Paradox contains core meaning, and paradox
requires at least two opposite points of view.
An important principle in East Asian reasoning is balance. In life, which is
dynamic and fluid, where contradictions and oppositions exist, the key is to find a
balance. As we saw in Chapter 3, page 110, a symbol that represents the ideal of
balance is the yin-yang (pronounced een-yahng). Contradiction is embraced
within a whole. Balance is perfectly achieved within a paradox.
Because of the importance of balance and harmony in human relationships in
East Asian cultures, persuasiveness comes from describing and urging patterns of
behavior that lead to balance in relationships.

Arabic Persuasive Logic

Arabic reasoning differs from East Asian reasoning in that it does not try to reconcile
opposites. Arabic reasoning is more like Western reasoning, in that two opposites
190 Chapter 5

cannot both be true. The historical development of reasoning in Arabic-speaking cul-

tures has origins that predate Islam but were focused in a particular way by Islam.
In Arabic-speaking cultures, presentation is the conveyance of true meaning.
Dialog is especially important, because it gives speakers the chance to engage in
the activity of presentation. Arabic cultures have a long history of argumentation,
which means the construction of logical arguments or well-developed positions
(it doesn’t mean arguing as in a quarrel).
Presentation is the way communication is enacted. It involves three key elements:
• Language and word choice
• Ability to raise emotion
• An authoritative voice
Presentation first involves language. The Arabic language, with the tri-radical
basis of words (three consonants as the root of words), lends itself to repetition of
sounds. Phrases are easily constructed with echoing, repeated syllables. The
language lends itself to many parallel constructions in wordings, so plays on words
are common. Parallel syllables and consonants produce repeated vowel sounds,
repeated consonant sounds, and rhymes. See also the discussion of Arabic language
on page 200 later in this chapter in the section titled “The Role and Force of Words.”
The Arabic language itself has great persuasive power for its listeners. An Arab
historian, Philip K. Hitti, writes:
No people in the world, perhaps, manifest such enthusiastic admiration for literary
expression and are so moved by the word, spoken or written, as the Arabs. Hardly
any language seems capable of exercising over the minds of its users such irre-
sistible influence as Arabic.12

The emphasis on Arabic language dominated scholarship in the 7th to 9th centuries,
especially the language of the Qur’an, since that historical Arabic is held by Muslims to
be the language chosen by Allah in which to reveal and communicate truth to believers.
Presentation also involves emotion. The emotion of the speaker signals a sincere
belief and commitment to what is being said. Even more important is the speaker’s
ability to create emotion in the listeners or readers. Historically, during the
Jahiliyya, or period of pagan ignorance, orators were storytellers. They told stories
in poetry, and by telling the stories they urged Bedouin tribal lords to act with
courage, loyalty, generosity to guests, ferocity in war, and honor in nomadic jour-
neys and hostile raids upon enemy tribes. The storytellers’ persuasive force came
from their ability to arouse emotions that linked the listeners to the actors in the sto-
ries. The strong oral tradition continued into the 9th and 10th centuries with public
debates among scholars that encouraged development of debate techniques.13
However, presentation ultimately comes from having an authoritative voice.
One way to give authority to a presentation is to repeat an idea, perhaps more than
once. Repetition comes from the language itself and also from the familiar use of
a line of poetry or a line of saj, which is the verse of the Qur’an. Of course, the
Qur’an itself is the ultimate authoritative voice. Intellectual curiosity, a desire to
know, means to have knowledge of the Qur’an, the authoritative source of all
knowledge since it is directly from Allah. This is a fundamentally different view
 Organizing Messages to Other Cultures 191

from the Greeks’ curiosity to find out the nature of things, or the Chinese desire to
reconcile conflicting elements in a harmonious worldview.
Because of the emphasis on language, emotion, and above all authoritative
voice, persuasiveness in Arabic cultures comes from presentation aspects of
communication, such as word choice and repetition.
The three general modes of persuasion—European, East Asian, and Arabic—
have key differences. However, they all share the same goal: to move the mind of
the reader. When the different modes of presentation clash, the result is not only
miscommunication but often also mistrust. Westerners can view Asians as un-
principled, because of their need for the truth in situations where Asians see the
truth as dependent on context. Asians can see Westerners as rigid and unsophisti-
cated. Arabs can see Westerners as untrustworthy because their communication is
low in emotional expression and therefore seems insincere. Westerners can view
Arabs as emotionally volatile and therefore undependable. These are only a few of
the possible failures to persuade across cultures.

Persuasion Tactics
People and organizations in relationships adopt certain roles in order to persuade.
One role is to take the moral high ground. For example, business organizations in
India have played the role of the Morally Superior in negotiations with the United
States and Japan.14 India is an old and venerable culture with well-established reg-
ulations for social behavior and deep-rooted expectations for business behavior. In
1984, a pesticide manufacturing company in the city of Bhopal, India, experienced
a disastrous leak of toxic gas. Thousands died, and thousands more suffered terri-
ble injuries. The episode was viewed as morally wrong by the Indians (and others
around the world), who felt the company had failed to behave responsibly. The com-
pany was a joint venture, 50.9 percent owned by Union Carbide, a U.S. chemical
company, and 49.1 percent owned by Indian investors and the government. Some
Indians called for the extradition of the American president of Union Carbide at the
time. The morally outraged victims who survived continue more than 20 years later
to charge that the company did not release information about the gas and about pos-
sible treatment, and to ask for more compensation.
The United States, which assigns a high priority to equality, was not persuaded
by India’s moral posture in this case, although Union Carbide awarded $470 million
in a settlement. The U.S. company claimed that (1) no Americans were present in
India at the plant when the disaster occurred, (2) the plant was Indian-built and
operated, and (3) an investigation showed the reason for the gas leakage: deliberate
sabotage by a disgruntled Indian employee. According to the facts collected by
Union Carbide, it was not at fault.
Japan is another country toward which India takes the moral high ground, such
as for some World War II atrocities committed by the Japanese. (Japan has not
been persuaded by this tactic.) However, many cultures use the tactic of taking the
moral high ground to persuade, and they do succeed in many cases.
Another tactic for persuasion may come from organizations in cultures that feel
they have been the disadvantaged party in international relations. Acting in this role,
some may adopt a dependent posture with a country like the United States or Germany
192 Chapter 5

and the corporations that represent them. Mexican organizations, for example, may
suggest they are owed favorable treatment by the United States—and make persuasive
requests based on this notion—because the company from the United States is bigger
or has more capital or is gaining a great concession with access to Mexican markets.
Persuasion also comes from emotions, as mentioned earlier with Arab commu-
nicators. To people of many cultures who view emotional involvement as a sign of
sincerity, facts alone seem cold and impersonal and therefore unpersuasive. Thus,
the very characteristic that is suspect in low-context cultures—emotion—is what
moves people in other cultures (such as Arabic cultures). Leaving out emotions
will have the opposite effect of what is intended. One emotion that can motivate in
Asian cultures is pity. A tactic is for the persuader to generate pity by describing
the pain and misfortune that have been experienced. For instance, a small supplier
may run into problems with delivery schedules and wish to persuade the customer
to accept delayed delivery. The argument may run as follows: “We are so small a
company, we have little power to force our agents to deliver promptly. Please
consider how small we are.” The company being persuaded is supposed to respond
with pity. In some cultures, this works well. In a U.S. context, such persuasion
tactics may not be so effective, since the company may simply seem pathetic.
Persuasion is important because in a sense every communication task a
manager performs involves persuasion. Even when the manager communicates
information, the purpose is usually partly persuasion: “giving away purposeless
information is a symptom of irrational behavior.”15 You could argue that even small
talk has a persuasive undercurrent: “Trust me, I’m on your side. Be my supporter.”
Making an oral presentation also has a persuasive element: “Believe me to be a
credible speaker. Take my message seriously. Trust me.” Persuasion in intercultural
business negotiation is discussed in Chapter 9.
Persuasion begins with establishing the credibility of the party doing the per-
suading. As we have seen, this can be accomplished in different ways, such as us-
ing facts, taking the moral high road, and needing special consideration. The next
step is for the party doing the persuading to establish common ground, so the party
being persuaded feels there is something to be gained for them also. Successful
business persuasion usually involves the revelation of some benefit for the party
being persuaded. How much the benefit is valued is, of course, dependent on the
culture. Subsequently, the persuading side must make its case and engage the
appropriate emotions of the other side.

Organizing Unwelcome Messages

Communicating about Problems
Talking about what’s wrong is not easy for people in any culture, but people in
high-context cultures like China put a high priority on keeping harmony, prevent-
ing anyone important from losing face, and nurturing the relationship. That is why
letters and meetings often include references to past solidarity. Historical refer-
ences to episodes between organizations and nations may be frequent.
 Organizing Messages to Other Cultures 193

In low-context cultures where information typically is encoded in explicit word-

ing, the tendency is just to “spit it out,” to get it into words and worry about the result
later. Americans want a clear apology: “I am sorry.” Senders of unwelcome messages
use objective facts, assuming, as with persuasion, that facts are neutral, instrumental,
and impersonal. You can say, “The order arrived with 30 percent of the contents
damaged” and not point fingers of blame in low-context cultures. Business commu-
nication textbooks suggest a direct plan for talking about a problem that is the other
party’s responsibility: “Your overdue balance is still outstanding.”

In Focus

When Ron Kelly, a visiting management professor from St. Lawrence College, experienced conflict with his Chinese hosts
in Sichuan about the number of courses they wanted him to teach or the number of students per class, he would arrange
to meet with them. He would begin with expressions of gratitude for their assistance in making his experience of teach-
ing in China so rich. He would praise their work, their students, and their institute. He would mention the comfortable
accommodations and good food and the excellent sights within an easy bicycle ride of the institute. Near the end of their
meeting he would mention “just one little thing” that was a cloud on his horizon, and he would express confidence they
would be able to help him sort it out, for the sake of the good relationship they all enjoyed. Rather than press for immedi-
ate action, Ron would indicate he’d ask again in a few days. He would usually “forget” a packet of cigarettes, or leave
behind a bottle of spirits, and depart with warm smiles all around. He had few lasting difficulties in China.

Ron Kelly had to learn a different organization of the message when he was in
China. At home in Canada he would have been polite and professional and would
have gone directly to the point. But in China, as in other high-context cultures,
going directly to the problem carries a piggyback message that is even stronger:
“You have failed to live up to your responsibility; the honor of your organization
is in question; the very relationship between us is in doubt.” In high-context cul-
tures such a message is serious and damaging.
Occasions do arise when a direct message is appropriate in high-context cul-
tures, but they are not always the situations a member of a low-context culture
would identify for directness. For example, a manager might issue a command to
a subordinate with a directness that could seem harsh: “Fill the following orders
and ship them before noon.”
Indirectness is the way members of high-context cultures communicate about
a problem (also see Chapter 8). Stewart reports that a Japanese husband would sus-
pect his wife was upset if “a flower was askew in the entryway arrangement, but
he would be sure of it if his teacup were only partially filled with lukewarm tea.”16
The Japanese whom Stewart consulted said they would take special pains to be at-
tentive in such circumstances, but would avoid bringing up actual incidents. Asking
“What’s wrong?” would cause unnecessary disruption of harmony and potential loss
of face. (In Holland, a husband might suspect his wife was upset if she clattered the
knives and forks unnecessarily loudly when setting the table or banged down the
plates with more force than necessary. Signals vary, and so does the response to them.)
194 Chapter 5

In Focus

Two Canadian visiting professors to a university in China encountered some difficulties when the bad news was sim-
ply never communicated at all. The bad news was that the boiler for the guest house they lived in would be out of ser-
vice for at least two weeks. That meant no hot water and no heat during November, when the weather is cold. They
only found out the bad news indirectly, from someone unconnected to the wai ban (office for dealing with affairs out-
side the university) that was designated to communicate with them. Once they heard about the boiler, they went to see
a person from the wai ban and began a conversation, telling the wai ban person about an invitation they had received
to go to another institution for a visit of about two weeks. The visit was discussed, and dates were proposed for the visit
(which, not surprisingly, happened to coincide with the dates of the boiler repair). The host officer agreed, the
Canadians agreed, and everyone was happy. Nobody ever mentioned the boiler until after the visit had taken place.
By then, the professors were back and the hot water was on.

Bad news may not be communicated at all, or may be communicated indirectly.

In the example in China, the discussion was about the visit to the other organiza-
tion for the very two weeks the boiler would not be operating. The boiler was an
unspoken item; the context for that item was the conversation about the visit
elsewhere.
When an unwelcome message must be delivered in a high-context culture, and
context alone cannot deliver it, the message will probably be organized indirectly,
in circumlocutory words. Often, nonverbal signals will carry the message (see the
Japanese steel company example on page 209). Smiling, certain hand and head
gestures, and other nonverbal behavior may signal an apology that is hard for low-
context communicators to read. In worded messages in which someone from a
low-context culture would probably begin the correspondence with a request for a
refund because the order arrived too late to be used, someone from a high-context
culture might give an entire history of the relationship between the organizations
before asking for a refund.

Saying No
Saying no is done with delay and indirectness in low-context cultures, as most U.S.
business communication textbooks agree. They advise writers to “say no slowly.”
The rationale is to explain why first, and since facts persuade readers, by the time
the reader gets to the no, he or she has been persuaded to accept it. Not all busi-
nesses in the United States have caught on to this practice, however, which argues
that it isn’t a priority everywhere in the culture.
Asian cultures are renowned for saying yes. In fact, in Japan, Westerners have
heard yes and gone home happy when the Japanese really meant no. It is much eas-
ier for Japanese and other high-context cultures to say yes. It is “yes, I’m listen-
ing,” or “yes, you have a good point,” or “yes, I see (but don’t agree).” Often, it has
the function of the American “uh-huh” to encourage someone to keep talking (this
unworded communication is similar to the meaningless sounds that indicate social
 Organizing Messages to Other Cultures 195

involvement with the speaker’s act of speaking, like “mmhmm”). Sometimes, of

course, yes means “I agree; I will carry out your request.” The problem for low-
context communicators is they can’t always tell which meaning is meant. When
people from a high-context culture receive a yes response, they often seek to verify
it so they can tell which meaning to give it. A Korean manager in a U.S. firm was
given the opportunity for a new and more prestigious job. He responded, “I will be
willing to do it if nobody else will.” He was saying, “Yes! I accept!”
Saying no is more difficult for high-context cultures. As when they communi-
cate about problems, they would rather not actually have to put a refusal into
words. In Chinese, a no may reside in the words “That may be difficult.” The
Japanese equivalent to that would be a drawn-out hissing breath and drawn-out
words: “Sssaaaah . . . muzukashii naaaaaaa.” (Also see Chapter 4.)
In cultures that put a high priority on face, a refusal is a potential loss of face
for both the refusal makers and those being refused. The refusal-makers lose face
because they have failed to perform according to the expectations of the party they
have a relationship with—a web of obligations and favors often related to the roles
of host and guest. They are shamed. The refused lose face because they have been
turned down by the very party with whom they have a relationship, and they go
away empty-handed. They too are shamed. The balance of obligations is askew.
The relationship itself is momentarily at stake.
No in high-context cultures is frequently couched in an expression that turns the
situation around. For example, a person who has to refuse an invitation to dine out
with a business associate may say by way of refusal, “You must be very tired and
want to have a quiet evening.” This way, the refused person does not lose face,
although the refusal is clearly understood in a high-context culture.

Organizing Problem-Solving Messages

Storytelling
One way to communicate about a solution to a problem is through narrative. An
ethnographic study in the 1980s involved the problem-solving communication of
photocopy machine repairmen in the United States.17 The repairmen would be sent
out on jobs, where customers would greet them with relief and high expectations.
They would start to take the machines apart and try to identify the problems. If the
problems persisted, they often would attract other men who would stand around
and offer suggestions. Then, according to the study, if the problems still were not
solved, the men would start telling war stories. Many repairmen had been me-
chanics in the army, and they had had experiences trying to fix equipment with
little more than their ingenuity.
Pretty soon, after a number of stories, the solution would be found and the
equipment would be fixed. The stories offered guidelines when there wasn’t
enough information in the manuals. Stories are a way for results-oriented cultures
that like to rely on facts to discuss situations in which facts are available only from
anecdotes and personal experience.
196 Chapter 5

Stories circulate throughout organizations. They often tell about “heroes” who
didn’t take no for an answer or succeeded against steep odds or who performed
amazingly well. Stories also circulate about those whose failures are lessons to
others. Through the Internet, in blogs, on Facebook, on YouTube, and in e-mailings,
stories are circulated to illustrate lessons about working life. The following is an
example:

In Focus

A sales representative, an administrative clerk, and a manager are walking to lunch when they find an antique oil lamp.
They rub it and a Genie comes out in a puff of smoke.
The Genie says, “I usually only grant three wishes, so I’ll give each of you just one.”
“Me first! Me first!” says the clerk. “I want to be in the Bahamas, driving a speedboat, without a care in the world.”
Poof! She’s gone.
In astonishment, the sales rep says, “Me next! Me next! I want to be in Hawaii, relaxing on the beach with an end-
less supply of piña coladas and the love of my life.” Poof! He’s gone.
“Okay, your turn,” the Genie says to the manager. The manager says, “I want those two back in the office right after
lunch.”
Moral of the story: Always let your boss have the first say.

Storytelling is a way of making meaning for organizations. Stories often can be

interpreted variously to reinforce common values and can be used to talk about
solutions to management problems, too. When management wants to introduce
change, for example, a story can help employees understand and accept the
change. An international firm’s CEO told a story to 300 managers about Willie B.,
a silverback gorilla, who after 27 years in a small bunker was moved to a new
spacious habitat designed specifically for him. Even though the change was a
positive one for Willie B., he spent the first few days taking cautious little steps to
get to know his new home. A photograph that hung on the wall of the executive’s
office showed Willie B. testing the grass with his toe. The executive’s point to the
managers was: Remember that change takes time and courage, even when it is for
the better.18

In Focus

Martin Woolnough, manager for Nestlé in Uzbekistan, uses stories frequently. He says, “I like stories . . . they help
people understand complex problems or totally new concepts.” When he needed to get across concepts that were
unfamiliar about the structure of the financial relationship of the factory to the Nestlé parent company, he told the
following story.
 Organizing Messages to Other Cultures 197

Let’s pretend we are young and want to buy our first car. We don’t have enough money but we have one uncle who
is very, very rich. [Woolnough said he used this analogy since staff and local authorities and traders were “taking us
for granted” as a rich company with deep pockets.] So, we ask our rich uncle if he would lend us the money so we can
buy a car. Would he just give us the money? Probably not . . . he would want to know when or how we were going to
pay it back, wouldn’t he? So, let’s say we told our uncle that the reason we wanted to buy a car was so that we could
make some extra money by having a taxi service. We agree that for every three passengers we will keep two fares for
ourselves to live on and give the third one to our uncle to repay the car. After five years, we estimate that the loan will
be repaid.
Our uncle likes this proposal. Not only does he get to help out one of his family, but he also sees that we are going
to learn about business. So, he lends us the money and we go out and buy a brand new shiny car. Fantastic! Now we
own a car . . . but . . . does this make us rich? Of course not! In fact, we are even poorer than before since we now OWE
money. What about our very rich uncle—just because he is a millionaire, does that make us one? Of course not! Well,
Nestlé Uzbekistan LLC is like this. Our “rich uncle” in this case is our company Nestlé S.A., which has “lent us” the
money to build this fantastic factory.19

Here is another example of using storytelling to bring home a problem.

In Focus

The town of Guryev on the Ural River in Kazakhstan is perhaps the world’s best source of caviar from the beluga
sturgeon. In 1991, Kazakhstan achieved independent status as a state, with a government in the capital of Almaty
instead of in Moscow and the right to sell openly to the West. But unfortunately, the sturgeon are in dwindling supply.
A major reason is that they are being appropriated by the officials in the new government—who were the Communist
party officials in the old government—before they can reach the factories. In autumn, there is a “mad beluga season”
when the black market does a roaring business.
Communication about the problem in this high-context culture is diffused through narrative. Kazakhis do not point
fingers at specifically named people. Instead, they tell humorous stories and use proverbs—methods of indirectness
typical of high-context cultures—to illustrate the “crazy history” of caviar in Guryev. Here is one example.
The ghosts of Stalin, Khrushchev, and Brezhnev pay a visit to Yeltsin, who naturally has to offer his guests some
food and drink. He pours out four glasses of vodka and then hands around a meager plate of caviar sandwiches.
Brezhnev says, “Mr. Yeltsin, when I was in charge, I would put a whole kilo of caviar on the table.”
Krushchev says, “When I was in charge, I gave my friends caviar by the ton.”
Finally, Stalin says, “When I was in power, I had so much caviar that my people went abroad and force-fed
foreigners with it.”
The Russians have a proverb: “Don’t count your caviar until you’ve caught your sturgeon.”20

Analogy
Analogy—drawing an extended comparison—is another way of talking about
solutions to problems. Sometimes the analogy is in a narrative, but not necessarily.
Māori teachers formally and informally use extended analogies in their storytelling to
advise or caution or make sense out of a situation for their listeners.
198 Chapter 5

Military language offers rich material for analogies in corporate problem solv-
ing in the United States: operation, briefing, debriefing, offensive, attack, troops,
maneuver, ammunition. This language also reflects the action orientation of the
business culture in the United States.
Sports analogies often describe solutions to problems, especially when team-
work is important. Ricardo Vasquez uses baseball analogies—“we need to hit one
out of the park”—with his contacts in Puerto Rico when extra effort is needed to
make a sales goal. Game analogies work well to communicate business strategy to
solve problems. For example, negotiation between Asian and Western teams has
been compared with the games of Go (in Japanese, or Wei qi in Chinese) and
chess.21 When Piet Kreft from the Dutch company Unilever wanted to stop theft
from the warehouse in Azerbaijan where Lipton tea was being stored, he brought
all the employees together and told them, “I want us to become a club where we,
the honest staff, consider it inappropriate for anyone to steal from our ‘family.’”
By appealing to the Azerbaijani sense of family and clan, he wanted to implant the
ideas that as employees looking for long-term stability for their families, he and
they were the beneficiaries of having a profitable company, and stealing detracted
from their profit and directly from their own personal success.

Syllogistic and Inductive Reasoning

Narrative and analogy are examples of nonsyllogistic reasoning. But for low-
context cultures, reasoning means deductive syllogisms and inductive logic.
Syllogistic thinking is deductive, moving from a generalization to a specific
instance. Induction works from examples to a generalization. Inductive logic:
reflects Western intellectual traditions of precise, scientific detachment, and appeals
to an abstract sense of reason existing outside the relationship between speaker and
hearer. Thus it has the effect of establishing the distance between them.22

The problem and the reasoning both exist apart from the speaker and the hearer,
which creates a sense of objectivity about the problem-solving discourse. Individ-
uals’ feelings appear not to be involved. In low-context cultures, problem-solving
finds expression most often in reasons why, leading to therefore.
Deductive reasoning is used by French, Spanish, and Italian communicators,
who prefer to argue from abstract concepts and principles. They tend to dislike an
approach like that of the United States, finding it too pragmatic and too quick to
rush to application before the theoretical framework is in place.
High-context cultures do not see reasons as outside and apart from the rela-
tionship between communicating parties. Any problem-solving discourse must
take the relationship into consideration. If a solution ignores or jeopardizes the re-
lationship, it cannot be a good solution. Reasons by themselves alone do not have
the power to convince; it is the context of the relationship that gives significance
to reasons. So, for example, inductive organization may be used in talking about a
problem out of deference to the relationship, because it moves from specifics to a
generalization. That may be less likely to cause loss of face or wound someone,
whereas an accusation could do both.
 Organizing Messages to Other Cultures 199

Bargaining Discourse
Problem-solving discourse in some cultures, such as Arabic-speaking cultures,
may follow the model of the Arab souq (market). This discourse is a kind of bar-
gaining that begins with an opening bid from each side that is far beyond what each
expects to settle for. After haggling, the two sides finally arrive at a point of con-
vergence in their bids. Although it resembles negotiating a compromise, this bar-
gaining discourse is not confined to purchase situations; the marketplace is an
analogy. Each side presents a position and then argues for a solution to the prob-
lem that fits that position. Then both sides bargain to modify each other’s position
and their own until a solution to the problem is reached. This is communication
exchange that involves two or more parties. It cannot be carried out by only one
party, unlike narrative or analogy or syllogistic reasoning, which can be within
one’s own head or from one to another person or from one to many. Bargaining
takes at least two. It is a problem-solving approach favored by many collectivist
cultures where the process of reaching a solution is a collective one, rather than a
task for one individual.

The Role and Force of Words

The Relative Importance of Encoding Messages in Words
Words are inventive tools for communication, and the enjoyment of using this tool-
box of symbols varies from culture to culture. In low context-cultures, the role of
words is informational; in those cultures, “Subtlety and allusiveness in speech, if
grasped at all, serve little purpose.”23
Meaning is encoded explicitly in low-context cultures. Not to encode
messages explicitly is to risk being misunderstood in Britain, Germany, and
Switzerland. Good communication is saying clearly what you mean. Saying
something other than what you mean is a waste of time, if not downright
deceptive. The self-deprecation that is appropriate in Chinese culture, where
boasting or putting one’s self forward disturbs social harmony, is inappropriate
in the United States or Canada, where people are often taken at their word about
their worth—say, in a job interview. From early childhood, quickness in
verbalizing perceptions about the world is rewarded in the culture of the
United States.
Communication can also be achieved without words, of course, but actions
instead of words are employed fairly frequently in high-context cultures.
In the following Chinese trainees’ tea episode, communication occurred in
the behavior (serving boiled water) that followed the invitation to drink tea.
Later, after prompting, communication occurred in the worded messages that
contained consideration for the teacher’s situation, and the unworded message
about unclear understanding of possible obligation on the trainees’ part. Com-
munication was taking place on several levels at once. Encoding messages
in words often has low priority. In this case, the behavior was the loudest
communication.
200 Chapter 5

In Focus

In a training session to orient mainland Chinese to North American work practices, one of the authors delivered a half-
day session about “putting messages into words.” The theme was that in North American business environments, if
you have a problem, you should articulate it to someone rather than struggle along trying to cope in silence.
At midday, the trainer and trainees sat together around their conference table to eat lunches they had brought. The
room had a kettle along with a box of Chinese tea so the trainees could enjoy a cup of tea with their lunch and through-
out the day. The trainees were not accustomed to having trainers eat lunch with them, but nevertheless they graciously
asked her if she would like some tea. She said yes, thank you very much, she would like tea.
A few minutes later, she was politely presented with a cup of boiled water. “Where is the tea?” she asked. “All
gone,” she was told. “When?” “A few days ago.” “Why,” she asked, “didn’t anyone say anything sooner?”
After some exploratory discussion, several reasons emerged. One trainee volunteered that they weren’t sure the
trainer, a teacher who automatically had high status in their eyes, was the right person to ask about something like tea.
They didn’t want to insult her. Another trainee said they didn’t want to mention the exhausted tea supply to the trainer
in case she felt personally obliged to buy tea with her own money. They weren’t certain the program had funds for ad-
ditional tea for her to be reimbursed if she did buy them tea. Also, they felt perhaps they should not have drunk up the
tea so soon or should have replaced the tea themselves, although that meant the risk of an expenditure that might turn
out to be unnecessary.
No doubt the unannounced presence of a trainer at their lunch table raised another uneasy question in their minds:
Were they supposed to have reserved some tea in case a trainer decided to have some? Finally, a young man offered the
opinion that in China the person who identified a problem was then identified with the problem and in his words, “became
the problem.” It was better not to draw attention to a problem, he said, and the others agreed that this could be true.
This episode says a number of things about expectations by the trainer and different expectations by the trainees
about communication. The Chinese were conscious of the social impact of their words and therefore chose to com-
municate in actions rather than risk a consequence that was difficult for them to calculate accurately. The act of of-
fering a cup of boiled water in a context where tea was expected was as eloquent as any specifically worded message.

In high-context cultures, the purpose of communication is often socially lu-

bricative. That is, communication between organizations and their representatives
has a responsibility first to sustain relationships, and only within the context of a
relationship does it then have a responsibility to transmit information.
In general, people from Latin cultures enjoy talk as one of the great pleasures
of life. Mexicans love to spend time talking with friends. Italians claim talk with
friends is a sign of a good life. Not all that is verbalized is taken literally, but en-
joyment comes from the act of verbal—and nonverbal—connection with others.
Lots of noise characterizes conversation, and often two or more people talk at one
time. Mediterranean and Hispanic cultures are relatively high-context, and that
means relationships and connections between people are important.

The Role of Words in Arabic Cultures

Arabic speakers enjoy verbalization, as the following proverbs attest.
• Your tongue is your horse; if you take care of it, it’ll take care of you, and if you
offend it, it will offend you.
 Organizing Messages to Other Cultures 201

• Kissing hands is fooling beards. [Inflated, indirect methods, not going straight
to the point, can succeed with the elders.]
• Humming in one’s ear [making incessant complaints] is more [effective] than
magic.
• Kiss the dog on his mouth [sweet-talk him] until you get what you need out
of him.
• [You might as well] Blow in a torn bagpipe [when no one is listening].
• Don’t argue with a stupid person; don’t allow him to argue with you.
• Raise your voice; otherwise their arguments will beat you.24
Arabic is the language of the Qur’an, the language Allah chose to reveal His
truth to Mohammad, and that makes it a holy language. Muslims believe it is
precise and unchanging in meaning, and that a critical response to the language is
inappropriate. “The reader is not trained to interact with the text as in [English-
speaking] cultures, mentally editing and disputing points. He or she does not eas-
ily distinguish more or less significant points.”25 Furthermore, the structure of
Arabic lends itself to combinations of ideas, strung together. In English, this would
be something like compound phrases joined by and. This can make Arabic writing
or speech seem unfocused when translated into a language that encodes separate
ideas efficiently. Arabic is superb for elaborations, however, and Arabic speakers
value the ability to embellish utterances.
Arabic was used by nomadic Bedouin tribes long before it was written down.
The Qur’an was the first “book” in Arabic, and it was only written down after the
revelations to the Prophet Mohammed had been transmitted orally. Classical Ara-
bic lends itself to memory and oral transmission because it uses repetition: of
sounds and of phrases. Related words repeat the same syllables. Arabic words (like
Hebrew) have three-consonant roots with vowels around the consonants. Cognates
(related words) thus have the same syllables/sounds. The consonants k-t-b for in-
stance are the roots that mean write and produce kitâb (book), kâtib (writer),
kâtaba (he wrote), kutiba (it was written), yaktubu (he writes), maktûb (written),
kutub (books, plural), mukâtaba (correspondence), takâtaba (he corresponded
with someone), maktaba (library), and maktabun (office).26
Exaggeration, figures of speech, and repetition are some of the ways Arabic
lends itself to the exuberant use of words. Arabic-speaking cultures generally ad-
mire the artistry of accomplished writers and speakers. In fact, the language itself
has a power over listeners and readers; the words can have more impact and more
reality than what they describe. So words can be used for their own sake, not for
the meaning they convey.
It isn’t surprising that self-congratulation and self-praise are part of the exag-
geration of Arabic speakers. Describing one’s own accomplishments, the high
status of one’s friends, or the superiority of one’s abilities in exaggerated terms is
usual. It shows one’s place in the hierarchy through one’s connections. Lavish lan-
guage also protects one’s face, and losing face is a terrible thing in Arabic cultures.
All this inflation of language means that Arabic statements may use 100 words
when English would use ten.27 Arabic cultures are relatively high-context cultures;
202 Chapter 5

members share experiences and memories of famous users of language. When

speakers communicate informally, one may speak before another has finished, and
it isn’t unusual for speakers to interrupt and overlap each other’s speech.
Writers of business documents in Arabic use many of the flourishes and
embellishments of speech.

The Role of Words in Japanese Culture

Perhaps at the other end of the spectrum is Japanese culture. In Japan, words are
not trusted. Many Japanese proverbs emphasize this point:

• Those who know do not speak; those who speak do not know.
• To say nothing is a flower.
• With your mouth you can build Osaka castle.
• Sounds like paradise; looks like hell.28
Putting thoughts into words has a low value in Japan, where harmony and con-
templation are highly valued and members of the culture learn “to hear one and
understand ten” as they listen to what has not been said. There seems little need
for speaking, and when someone does speak, the preference is for understatement.
Boasting about one’s own powers or achievements is very bad taste. It is putting
oneself above others, which is shameful in Japanese culture. This use of language
is very different from Arabic speakers’ use of language, even though Japanese
culture is very high-context.
The Japanese also value indirect expression. Bluntness is regarded as unso-
phisticated or even rude. To challenge directly what someone has said is also
extremely rude. Since people are not separable from their words, an attack on what
someone has said is an attack on that person.
Listeners wait until a speaker is finished before speaking themselves. A moment
of silence after someone speaks is respectful; it suggests thoughtful contemplation
of what has been said. Conversely, interrupting someone is rude. Japanese listeners
pay as much attention to what is not said as to what is said. They are “listening” to
the unspoken context of the worded message.
The Japanese way of encoding messages sparely but understanding messages
on many levels is enryo-sasshi communication. The image created by these words
is a gateway which transmits messages through a small exit (enryo) and receives
messages through a wide entrance (sasshi). To accomplish this, Japanese commu-
nicators use a number of speech patterns such as hesitancy, unfinished sentences,
and incomplete expressions of thought.29 Japanese thought patterns are clusters or
webs; language patterns also move from one idea or cluster to another and another,
but the idea clusters may not have an obvious relationship. They are related more
by association than by cause and effect, like stepping stones that lead to a destina-
tion but are spaced out from each other and not in a straight line.30
Japanese communication is extremely polite. Attention is carefully paid to doing
things in the proper way or kata, according to the rules of etiquette. In other words,
form is very important. Communicators encode messages with form because that
 Organizing Messages to Other Cultures 203

is the way they can show respect and concern for the face of the other person, and
the way they can feel satisfied they are meeting the cultural expectations for com-
municating in the right way. Relationships that are nurtured with careful attention
to the proper way of doing things are likely to be lasting relationships.

The Role of Words in English-Speaking Cultures

English speakers, in contrast, tend to use language in a bridge pattern that goes
more or less in a straight line from the first idea to the next and so on to the con-
clusion. Unlike Japanese culture, English-speaking cultures value verbalization
highly, and there seems a great need for using language. Above all, using the right
word, the best word to communicate meaning is especially admired. Consider
these English proverbs:
• A word fitly spoken is like apples of gold in pictures of silver.
• There is as much difference between the right word and the nearly right word
as there is between lightning and a lightning bug.
• A man is as good as his word.
The general preference in the English-speaking world is for the most appropri-
ate word. This corresponds to the legalistic weight words carry in the U.S. culture.
Contracts are worded with great care; in business correspondence one is held re-
sponsible for whatever one has written down. In oral communication, however,
slang, exaggeration, and overstatement are ways to flout that preference, and such
vocabulary is associated with being young and hip. Words in colloquial (conver-
sational) speech like brilliant, great, catastrophe, and tragedy refer to things that
are not so tremendous after all. British speakers of English find that speakers in
the United States tend toward overstatement. Choosing words carefully in English-
language cultures has pragmatic value. It shows confidence in one’s own powers
to control and order things—a can-do mentality.
In English-speaking cultures generally, something exists when it is put into
words; if it is not spoken or written, it isn’t possible to listen to it the way Japanese
communicators do. Words are taken literally, at their face value, in most situations.
Bluntness is admired in many situations; speaking frankly about potential prob-
lems, for example, can be viewed as sincerely caring about the welfare of an
organization. In meetings, being able to express your opinion clearly and perhaps
persuasively when others disagree often results in praise or reward. Speakers of-
ten interrupt each other, especially in informal situations, or begin speaking before
another person has completely finished, in a rush to get their thoughts into words
and thus gain the attention of others.

The Effect of Language’s Structure

In the 1950s, scholars began to explore the relationship between language struc-
ture and thinking. Benjamin Whorf wrote:
We dissect nature along lines laid down by our native languages. The categories
and types that we isolate from the world of phenomena we do not find there
204 Chapter 5

because they stare every observer in the face; on the contrary, the world is pre-
sented in a kaleidoscopic flux of impressions which has to be organized by our
minds—and this means largely by the linguistic systems in our minds.31

Now, over 50 years later, Whorf’s hypothesis that language organizes reality has
been largely discredited. Perception is viewed as a habit that can be learned and
changed, not something programmed. Perception constructs reality, but the extent
to which language limits perception is not clear. We understand our world by cat-
egorizing it, and the categories are influenced by our language.
We can see differences in thinking, in a simplified illustration, by comparing
an English and a Chinese sentence. In English: “The interpreter who arrived yes-
terday has already visited the factory.” The subject is “interpreter” and the verb is
“has visited” in this simple sentence. The nonrestrictive clause “who arrived yes-
terday” merely says something specific about the “interpreter.” We could leave it
out and the sentence would still communicate correctly and meaningfully. The
main message is in the last words: “the factory.” The adverb “already” places the
visit in time. The entire sentence moves in a linear sequence from the subject
through the action of the verb to the object. It unravels syntactically the same way
it happens in time: First the interpreter arrives, then he visits, and specifically he
visits the factory. As he moves in time, so does the sentence reveal its meaning.
The structure of English cause-and-effect sentences is sequential and linear.32
Chronology is the structuring principle. The English sentence can be shown as
a simple movement through time, from left to right (see Exhibit 5.6).
The same sentence in Chinese would be structured differently, as a series of
spatially related frames or levels. It begins with the word and concept that estab-
lish the largest possible context in the sentence: “yesterday.” This frames the whole
sentence. The next largest context identifies the interpreter as an arriving inter-
preter, as compared with any other kind of interpreter. The next more-specific
frame identifies the interpreter, as opposed to anybody else who arrived yesterday.
Next, the event is placed in a timeframe by the word “already,” which signals a
completed action. The next frame is the specific place where the action occurred:
“to the factory.” Finally, the most specific information of all is reached: the main
message, as in English, is the activity that occurred: “visited.” A literal translation
of the sentence would be “Yesterday-arriving(’s) interpreter already to the factory
visited” (Zuotian daozherde fanyiyuan yijing dao gongchan fangwen qu guole).

EXHIBIT 5.6
(The action of the sentence takes place in time; you can “see” it unfold as it happens)
Sequential Relation-
ship of Syntactical The interpreter (has) visted the factory
Elements in an
English Sentence (A person traveled by car or on foot to the factory)
 Organizing Messages to Other Cultures 205

The organization of this sentence is not based on a temporal relationship, but on the
spatial relationship of items to each other. The sentence is a sequence of evermore-
specific levels, like concentric circles, until the heart is reached. Exhibit 5.7 illus-
trates the concentric circles.
The result of this cultural preference for different ways of structuring thinking
is that when Chinese speakers approach communication tasks that require more
than routine attention, they tend to follow a general-to-specific sequence.
The indirectness typical of Chinese discourse is understandable, and even pre-
dictable, in view of the logic of the sentence structure. Similarly, English-speaking
cultures’ preference for linear directness and logic that reveals cause-and-effect
relationships (usually inductive, arguing from reasons to conclusions) can be pre-
dicted from the way the language is structured.
Here’s another example of how language patterns affect business communication.
In a culture that has a rich oral tradition but not a long history of writing business
documents, the written discourse will have characteristics of oral communication.
Repetition, rhyme, alliteration, imagery, and hyperbole are important in oral com-
munication to help the listener remember. Chronological sequence is easier to re-
member than another sequence; chronological sequence is what storytellers use.
These preferences, and others not discussed here, are deeply rooted in the mind and
have a strong relationship with cognition—thinking, knowing, understanding. When
we are confronted with new experiences and new languages, we tend to structure them
according to our perceptions and previous experiences. When you communicate with

EXHIBIT 5.7 The Spatial Relationship of Syntactical Elements

Yesterday's

Most general context

arriving interpreter
Qualifier, classifying the
already subject

to the
factory
When, further
specifying context

did visit
(completed)
Where, further
specifying context

What, the most specific

data
206 Chapter 5

someone from another culture, you experience these differences. You may feel you
understand the words and the message, but you may also feel some uncertainty about
the communication because it is organized in an unfamiliar way.

Channels of Business Messages

Choosing the right channel and the appropriate form for business messages is a
communication skill. When the communication is between cultures as well as or-
ganizations, the skill is even more important. In the United States, according to
business communication guides, efficiency, clarity, conciseness, accuracy, and
accountability are the keys to making the choice. A telephone call may be the fastest
way to get clarification, but you may need something in writing before you can act.
Other considerations to keep in mind when communicating with a high-context
culture are harmony, face-giving and face-saving, status, and ambiguity to allow
flexibility. We’ve seen that these factors affect how messages are encoded. They
also affect the choice of channel or medium through which to send the message.
This section considers channels of written internal communication, such as
from a subsidiary to a head office (memos, e-mail, and faxes); written external
communication that goes outside the organization (faxes, e-mail, letters, press re-
leases, and customer communication); and oral communication (telephone, voice
messages, teleconferences, and meetings).

Internal Channels for Written Messages

Memos, e-mail, networked intranet bulletin boards, printed reports, and other
written documents are channels of written communication within companies.
Memos play different roles in different cultures and organizations. In North
American businesses, memos are the standard channel of communication from
superiors to subordinates, subordinates to superiors, and employees at the same level.
(Memos can also be written to file or as reminders to oneself.) They can be formal or
informal in tone. When informal, a memo is a convenient way of communicating
information in writing—so there is a record of it—without the weight of a formal
document. Increasingly, memos are sent by e-mail.

In Focus

Judith, a New Zealand consultant, thought memos would provide an accurate record of information without too much
formality. So she wrote memos to her client, the owner of a family business in Taiwan. She put her comments in writ-
ing in order to reduce misunderstanding. But the owner never acknowledged the memos. So she wrote more. Still no
mention of them. Finally, she asked Taiwanese friends what this meant. She learned that her status with the owner
meant she could have face-to-face discussions with him. Memos are impersonal, and he thought she didn’t want to
have to get to know him. That made him reluctant to trust her.33 She was responsibly using an effective communica-
tion channel as far as her own culture was concerned, but it was counterproductive in Taiwan.
 Organizing Messages to Other Cultures 207

As a means for sending feedback from employees to management, memos

(especially e-mail) excel—at least in cultures where feedback is expected by man-
agers. Feedback is not easy for managers to gather if subordinates are not used to
giving it. Managers who don’t solicit feedback will not receive as much as those
who do. Memos may not be the best channel in these situations. Face-to-face ex-
changes, in which a wide range of nonverbal signals can be sent along with the
worded message, may be a better choice.
E-mail and hard-copy memos are also, perhaps primarily, channels for managerial
communication downward. What they signify varies within different cultures. In ex-
plicit, low-context contract cultures, a memo may have the force of a written agree-
ment. It can be counteracted with another memo, but once it goes out, it is official.

In Focus

A Thai civil servant was told about an interoffice memo announcing his posting to a regional office. He had not been
consulted, had not seen the memo, and had strong personal reasons for not making the move. He tracked the progress
of the memo to its final recipient, the director general of his department. He explained his objections and was given
permission to destroy the memo and thus cancel the posting.34

Apart from the priorities in the Thai culture that allow an employee to be trans-
ferred without being consulted and the authority of the superior to unmake the de-
cision, a third point can be made. The memo lacked the legal force that the same
memo would have had in a low-context culture. Its contents could simply be re-
versed by crumpling up and throwing away the memo. All those who had already
read it would presumably simply erase it from their minds.
Electronic mail (e-mail) has made an impact on interoffice communication in
format, tone, and content. It can be printed out, thereby providing a hard copy for
records. E-mail is a less formal channel than hard-copy memos and letters, with-
out established rules for format, and the tone tends to be informal as well. The con-
tent is often less well organized because writers are more spontaneous in creating
messages. Sending them requires merely the click of a mouse, and rarely involves
proofreading. As a result, follow-up messages are often necessary to cover infor-
mation that was left out of the original message. Study needs to be done on the
effect of e-mail on organization patterns: Does the ease of message creation lead
to more direct organization? Anecdotal evidence suggests not; writers who wish
to open a message by paying attention to relationship building do so with e-mail
messages just as they do with hard-copy messages. The culture affects the way
technology is used, just as the technology affects the channel. E-mail is not private,
however; managers can read messages presumed confidential by their senders.
Employees have been embarrassed by seeing their supposedly private gossip
about co-workers reproduced on company letterhead. It is always possible to send
a “recall message” e-mail, but that can arouse curiosity and send more readers to
open the message than if it is not highlighted by a “recall” message!
208 Chapter 5

Instant Messaging (IM) is used by businesses for connecting employees and

offering customer service. IM allows people to have a written conversation in real
time. A line of text appears as soon as the next line is begun or a final punctuation
ends a sentence.
Networked bulletin boards allow employees to communicate through an ex-
panded informal grapevine, but these have been replaced by blogs in some cases.
Fax—facsimile transmission of a document electronically—also is still used
widely in organizations, especially when people need to see original documents.
However, both fax and telephone voicemail can be delivered to a receiver’s mobile
phone, BlackBerry, or computer.
As mentioned earlier in this chapter, texting using an electronic handheld de-
vice such as a mobile phone or a PDA or BlackBerry is a way to send a written
message that can be stored. Most text message writers use abbreviations, symbols,
and numbers to communicate. English texting is a phonetic code in which words
are spelled according to their sounds. Texting also employs keyboard symbols to
create smileys—faces such as :o) (clown)—and emoticons—faces that suggest an
emotion such as :`-( (crying).
2 txt U transl8 swNdz in2 sht wrds, w few vowLz. L%kz lIk hIrOglifs; itz mob
fone cmUnik8shn. If U cant rEd dis, hlp is at www.transl8it.com:-). (To text, you
translate sounds into short words with few vowels. [It] looks like hieroglyphs; it’s mo-
bile phone communication. If you can’t read this, help is at www.transl8it.com. ☺)
Some teachers have voiced concerns that the phonetic spellings in text messages
will spill over into other written messages. Text message spellings and symbols such
as emoticons are used in e-mails, but mainly by young users. Texting is extremely
popular in countries where telephone charges are relatively higher. The United States
has been slow to catch up to the rest of the texting world, since telephone calls are
relatively lower in cost in the United States.

External Channels for Written Messages

External channels communicate outside an organization. External channels include
all the internal channels discussed earlier as well as Web sites, blogs, public an-
nouncements in press releases, news stories, contracts, marketing promotions, user
manuals, and social network sites such as Facebook and Twitter, among a host.
E-mail networks enable businesses and private individuals to hook up to the In-
ternet through service providers. Databases allow access to thousands of publica-
tions, making it possible to retrieve information without leaving one’s desk.
Google Scholar is making whole libraries increasingly available online. Web sites
give companies a public face unlike any they have had before, and give customers
access to products. The company story is available to anybody who logs on to the
corporate Web site. Companies are now able to track individual customers through
electronic databases so customers get the feeling they are individually recognized
by the company. New meanings attached to “relationship marketing” and “cus-
tomer service” and new terms such as data mining are corporate activities.
New companies continue to pop onto the scene, and new technology is enabling
entrepreneurs to move in new directions.
 Organizing Messages to Other Cultures 209

Structured Behavior Channels

You’ve already read two examples of deliberately structured behavior to commu-
nicate, particularly in Asia: the Japanese husband whose wife communicated
annoyance through a flower arrangement and the Chinese trainees who served
boiled water to announce the fact the tea was gone. Here is a third example.

In Focus

An American lawyer working in a Japanese steel company was part of a group that welcomed a visiting American del-
egation. But he found himself shut out from the company group deliberations he had been a part of before the visitors
arrived. He had lived in Japan long enough to feel this exclusion deeply. After the Americans went home, however, se-
nior members of his company invited him to Tokyo for a lavish dinner: the cost for eight people was over $5,000.
Although the company behavior toward him during the Americans’ visit was never mentioned, he understood that the
lavish entertainment was the company’s way of apologizing and reassuring him that they still valued him.

These acts of communication are carefully planned, with a beginning and an

end, as an alternative to written or oral channels. This behavior occurs frequently
in cultures in which discussing the situation would cause potential loss of face. But
behavioral communication exists in all cultures and can be eloquent in getting a
message across. A subordinate may signal unhappiness about an assignment in the
way he or she dresses for work or participates in the social life of the office.
A manager may signal pleasure with an employee by an invitation to lunch or a gift
for the employee’s workplace.
This structured activity is a communication channel that replaces worded
messages. Thus, it is different from nonverbal codes in communication: facial
expression, tone of voice, gesture, and physical distance are familiar examples of
nonverbal codes. They are discussed in Chapter 6.

Oral Channels
When do you prefer oral channels in your job? When do you phone, drop into some-
one’s office, or catch someone at the elevator or in the parking lot in order to commu-
nicate a message? Chances are it’s when you put a higher priority on keeping things
running smoothly than on the information itself. In low- and high-context cultures,
voice communication has a more lubricative function, smoothing relationships, than
written messages. In cultures where relationships are more important than results,
word-of-mouth and face-to-face channels are more frequently used. You may choose
business partners because of oral recommendations; you may come to a decision after
talking it over with others; you may deliver unwelcome messages orally so you can
establish a personal tone at the same time. As we saw earlier in the discussion on
memos, written messages can seem impersonal and unfriendly to some recipients.
Managers in low-context cultures need to keep in mind that employees from
cultures with strong oral traditions probably prefer oral channels to putting things
210 Chapter 5

in writing. Members of oral cultures place high priority on their word and will fol-
low through no less willingly than if it were in writing.
On the other hand, in some cultures some kinds of oral communication presume too
much familiarity for some situations. A follow-up telephone call from a Western sales-
person in Tokyo who sends a mailing to prospective buyers will seem too aggressive.
The proper contact is through a go-between or reference who makes an appointment
and is present at the face-to-face meeting. That is an appropriate oral channel.
Voicemail is another oral channel, although the line between voicemail and
written messages is blurring with technology that translates voicemail onto a com-
puter screen and e-mail to voicemail (see the discussion under the section “Where:
Channels of Communication” earlier in the chapter). Voicemail allows the caller
to leave his or her voice in the receiver’s electronic mailbox. Unlike a message
written down by a third party (or no message at all), voicemail transmits some of
the nonverbal characteristics of the message directly from the speaker. The listener
hears it later in time but hears it complete, with the nonverbal qualities such as
pitch and volume, pronunciation, pace, and pauses.
Teleconferencing transmits many nonverbal communication cues that other
oral channels such as voicemail and telephone calls cut out. When it is too costly
for a company to send people thousands of miles to meet face to face, teleconfer-
encing can be a good alternative. However, certain restrictions exist: It is not al-
ways possible to see the nonverbal behavior clearly; of course, both locations must
have the appropriate equipment; time differences can mean that one party is up in
the middle of the night (as was discussed earlier); and only one person can speak
at a time. This may entail having to learn a new set of rules for turn-taking in oral
communication for some participants.
Still, individuals who are equipped with Skype and other video/voice software
on computers and smartphone devices can communicate visually and orally with
one another. Tiny cameras that sit on computer screens transmit live images of the
sender to the receiver and can send images of objects such as models as well. Peo-
ple see and hear each other using a range of technology, and can send graphics and
written words in the same transmission. To what extent is this communication a
substitute for being face to face in the same room together? Some cultures have
more flexibility than others in bending traditional conventions.
This leads to our final consideration: the formality or informality of communi-
cation style.

Communication Style
Formal or Informal: Hierarchical or Horizontal
In some cultures, a manager has reached that position through hard work, and the
achieved status is important. Therefore, managers employ a formal writing style
that emphasizes power distance and authority. Formality stresses the hierarchy of
the organization and the manager’s superior status in that hierarchy. Paradoxically,
the hierarchy reinforces social harmony by reducing uncertainty about status.
Subordinates expect managers to use a formal style; not to do so is to risk losing
 Organizing Messages to Other Cultures 211

the respect of the lower ranks. The subordinates want to be confident their man-
ager is indeed firmly fixed above them, being accountable on their behalf and
looking out for their best interests. This style lends itself to quick decisions, since
subordinates are not likely to question them.
Memos written from managers in these hierarchical cultures—Arab, African,
Asian—sound authoritarian to members of horizontal cultures that emphasize equal-
ity. Horizontal cultures—English-speaking cultures and cultures from Northern
Europe—give more priority to the equal status of employees. Their style is inclusive,
and they play down the power distance between manager and subordinate. Indeed,
the power distance may be slight, and the manager’s authority may rest on the will-
ingness of the subordinates to acknowledge it. This style tends to be less efficient
than the authoritative style. If everyone has a valid voice and can contribute feed-
back in two-way communication, issues can take a long time to discuss.
Business communication textbooks from the United States instruct memo writ-
ers to adopt a friendly tone and an informal style in order to get the most cooper-
ation from readers. They urge the writer to write from the point of view of the
reader. When an issue is serious, formality indicates a writer’s commitment to the
issue rather than to friendly relations.
Managers who want feedback from subordinates may have difficulties, how-
ever, when subordinates are accustomed to treating managers as authorities who
do not make decisions based on subordinates’ wishes. The notion of two-way
communication—up as well as down—may be unfamiliar and uncomfortable.
Employees may wonder why managers ask them for information; they may sus-
pect managers have hidden purposes for it.
When communication is structured with little flexibility for feedback or another
response, or for other channels of communication in other directions, a grapevine
communication system develops. In contrast to the official formal system, the
grapevine is informal. The more rigid the structured system, the more the informal
system flourishes. Studies indicate that the grapevine has more credibility than the
official communication network and is often more accurate (see also Chapter 8).
You can see a flourishing informal network in organizations that have a hierarchi-
cal culture; the informal network usually involves someone in the office of the most
powerful person and also involves people who have access to more than one depart-
ment or location in the organization. The same is true in a general culture where the
system is naturally more complex. Chapter 8 deals with the nature of information in
detail, but here it is appropriate to point out that the informal information network
may be the one you need to pay attention to in an unfamiliar culture.

Framed Messages
“Framing” is explaining the context of a message before delivering it. It lets the
receiver know how to interpret the message. Is it a serious criticism? Is it a joke?
The frame, like a picture frame, can be nonverbal, but here we’ll consider verbal
frames. The opening of a letter that transmits a proposal—“Here is the proposal as
you requested . . .”—is a frame for what follows. Frames are widely used in
English-speaking cultures in oral communication: “I hate to bother you, but the
courier will be here in five minutes. Could you please . . .?” They pay attention to
212 Chapter 5

the status of the other party and the grooming of the relationship: “The tempera-
ture seems to have gone down, and I didn’t bring a jacket. Would you please
close the window?” Frames are particularly useful with requests to soften the
authoritative tone. Even the context (frame) must be verbalized in low-context cul-
tures so nothing is left ambiguous or open to misinterpretation.
Because frames attend to the relationship, they seem appropriate for high-
context receivers. But be careful. They can make the sender—if a superior—sound
too anxious and can make the power distance between superior and subordinate
seem too small. A high-context receiver may prefer the ring of authority in the
request: “Have the report on my desk by 5 p.m. today.” Authority is a piggyback
message on the worded message; it says, “I make this request because I am your
superior, and since you are my subordinate, your role is to fulfill this request.”
A frame that suggests the roles of superior and subordinate are fluid and may make
a high-context receiver uncomfortable: “I have a meeting at 8:30 tomorrow morn-
ing when I’ll be presenting our ideas on the information you have been gathering,
so could you please share your findings with me later this afternoon?”
As is evident in that last example, framing is adding explanatory detail to a
message. Detail is an aspect of style, and the question of how much detail to use
has its answer in the culture of the receiver. Detail, or volume of information, in a
request suggests equal status between sender and receiver and common goals.
However, detail in response to a request shows concern for cooperating, building
trust, and entering into a relationship.

Summary This chapter looked at the way culture affects how messages are organized, as
demonstrated by the following points:
• The model shows that communication, whether interpersonal or interorganiza-
tional, is a simultaneously reciprocal process. Senders of messages are at the
same time receivers of messages. However, the meaning of the message de-
pends on culture and context. Organizations from different cultures experience
greater potential for miscommunication.
• Business communication is purposeful. All business functions require
communication.
• Why, how, who, when, and where are critical factors in understanding commu-
nication differences in organizations. When these factors can be agreed on,
miscommunication is minimized.
The chapter then discussed ways messages are organized:
• The direct plan is favored largely by results-oriented cultures such as the
United States.
• The indirect plan is favored by relationship-oriented cultures such as Asia,
Latin America, Africa, and the Middle East.
• Persuasive arguments are based on different approaches in different cultures;
logical arguments persuade some, whereas adopting the moral high ground,
taking a dependent posture, or making emotional appeals persuades others.
 Organizing Messages to Other Cultures 213

• Reasoning in Asia is dialectical and inclusive of contradiction, whereas logic in

Western cultures follows syllogistic rules that exclude contradiction.
• Reasoning in Arab cultures uses careful presentation of communication,
through language, emotion, and authoritative voice.
• Unwelcome news is generally presented indirectly, or may not be said at all in
cultures where harmony and saving face are important.
• Problem-solving messages may be organized in stories (narrative), in analo-
gies, in syllogistic or inductive reasoning, or in bargaining discourse.
Cultures vary in the role they assign to words, as well as the impact words have.
This was shown by pointing out the following:
• Low-context cultures encode meaning in words, while high-context cultures
rely more on nonverbal communication.
• Arabic-speaking cultures enjoy the use of words in repetitions, elaborations,
exaggerations, self-congratulations, and other creative patterns.
• Japanese speakers place little confidence in words and rely more on implied
meanings.
• English speakers in Britain use less exaggeration than speakers in the United
States, but nevertheless both tend to encode meaning explicitly in words; some-
thing has reality when it is worded.
• Language structure is related to the way meaning is structured and understood.
The organization of business messages also is connected to the channels those
messages take:
• Internal channels (within an organization) of written communication include
e-mail, networked bulletin boards, memos, voicemail, texting and IM mes-
sages, printed reports and other written documents, and fax.
• External channels of written communication include all the internal channels,
as well as Internet Web pages, public announcements in press releases, news
stories, marketing promotions, and manuals.
• Structured behavior refers to carefully planned nonverbal communication
acts that have a beginning, middle, and end and are used instead of worded
messages.
• Oral channels include face-to-face encounters, telephone calls, and teleconfer-
ence exchanges.
Finally, the chapter looked at the formality of messages and the framing of mes-
sages, making the following points:
• Formality emphasizes status; informality emphasizes equality. In hierarchical
cultures, formality prevails. In horizontal cultures, the messages managers
write do not call attention to their status.
• Framing is explaining the context of the message before delivering it so the re-
ceiver knows how to interpret it. “I really hate to impose, but . . .” is a frame that
suggests an awareness of the obligation the request-maker is about to incur.
214 Chapter 5

Notes
1. Linda Beamer, “The Cultural Basis of Persuasion: Case Studies of Mexican
and United States Correspondence for Sales,” International Business
Practices: Contemporary Readings: Proceedings of the 1995 International
Meeting of the Academy of Business Administration, pp. 126–133.
2. Raymond Cohen, Negotiating Across Cultures, rev. ed., p. 20 (Washington,
DC: United States Institute of Peace, 1997).
3. Lorand B. Szalay, “Intercultural Communication—A Process Model,” Inter-
national Journal for Intercultural Research 5, no. 2 (1981), p. 135.
4. Jim Mann, “Social Evolution,” http://www.social-evolution.org/about.html
(retrieved April 24, 2006).
5. Robert K. Englund, “The Year: ‘Nissen Returns Joyous from a Distant
Island,’” Cuneiform Digital Library Journal, vol. 1 (2003), §8, http://cdli
.ucla.edu/Pubs/CDLJ/2003/CDLJ2003_001.html (retrieved May 30, 2003).
6. Ibid.
7. Ibid.
8. Rebecca Buckman, “Why the Chinese Hate to Use Voice Mail,” The Wall
Street Journal, December 1, 2005, Section B, p. 1. http://www.careerjournal
.com/myc/workabroad/20060112-buckman.html. Retrieved 25 April 2006.
9. Edward C. Stewart and Milton J. Bennett, American Cultural Patterns: A Cross-
Cultural Perspective (Yarmouth, ME: Intercultural Press, 1991), p. 156.
10. Based on Iris I. Varner, “A Comparison of American and French Business
Correspondence,” Journal of Business Communication 25, no. 4 (1988), p. 59.
11. Linda Beamer, “Directness in Chinese Business Correspondence of the
Nineteenth Century,” Journal of Business and Technical Communication 17,
no. 2 (2003), pp. 201–237.
12. Philip K. Hitti, History of the Arabs (New York: Palgrave MacMillan, 2002), p. 90.
13. Robert Irwin, Night & Horses & the Desert: An Anthology of Classical Arabic
Literature (New York: Anchor Random House, 2001).
14. This discussion is developed from Cohen, pp. 73–74.
15. Richard Mead, Cross-Cultural Management Communication (New York:
John Wiley & Sons, 1990), p. 62.
16. Stewart and Bennett, p. 153.
17. Marietta Baba, “Decoding Native Paradigms: An Anthropological Approach
to Intercultural Communication in Industry.” Presented at the ABC Midwest-
Canada Regional Conference, Luncheon program, April 27, 1990.
18. Nancy K. Austin, “Story Time,” Incentive, December 1995, p. 2.
19. Martin Woolnough, personal e-mail correspondence with one of the authors,
June 2003.
20. Aurea Carpenter, “What Comes First,” London Times, Features Section,
February 22, 1992.
 Organizing Messages to Other Cultures 215

21. Linda Beamer, paper entitled “Chess and Go as Metaphors for

American–Chinese Business Negotiations,” presented at the conference on
East–West Communication: Challenges for the New Century. Hong Kong
Baptist University, Hong Kong, November 1997.
22. Mead, p. 115.
23. Cohen, p. 27.
24. “Arabic Proverbs,” http://www.arabji.com/proverb (retrieved June 25, 2003).
25. Mead, p. 87.
26. Kees Versteegh, Landmarks in Linguistic Thought III: The Arabic Linguistic
Tradition (New York: Routledge, 1997), p. 26; Barbara Johnstone, Repetition
in Arabic Discourse (Philadelphia: John Benjamins, 1991), p. 54.
27. Larry A. Samovar and Richard E. Porter, Communication Between Cultures.
28. Sheila Ramsey, “To Hear One and Understand Ten.” In Intercultural Commu-
nication: A Reader, 4th ed. Larry A. Samovar and Richard E. Porter, eds.
(Belmont, CA: Wadsworth, 1985), p. 312.
29. Satoshi Ishii, “Enryo-Sasshi Communication: A Key to Understanding
Japanese Interpersonal Relations,” Cross Currents, 11 (1984), pp. 49–58.
30. Satoshi Ishii, “Thought Patterns as Modes of Rhetoric: The United States and
Japan.” In Intercultural Communication: A Reader, p. 100.
31. Benjamin L. Whorf, Language, Thought, and Reality: Selected Writings of
B. L. Whorf, ed. by J. B. Carroll (New York: John Wiley & Sons, 1956), p. 213.
32. Linda Beamer, “Teaching English Business Writing to Chinese-Speaking
Business Students,” Bulletin, LVII, no. 1 (1994), pp. 12–18.
33. Mead, pp. 89–90.
34. Ibid.
C H A P T E R S I X

Nonverbal Language
in Intercultural
Communication
Rana Zarvi from Lebanon has been working for a Swedish firm for several months. When
she arrived in January, she did not think she would last very long; the short days and the
cold winter made her wonder how anyone could live in such an environment. But now that
summer has arrived, she is getting used to the climate and her surroundings. She likes her
work, and her colleagues are friendly, but she has no real feel for them. What do they think?
How do they live? What do they do in their free time? What are their hobbies? In her pre-
vious job in Beirut, for example, she would socialize with her co-workers after hours. She
knew about their families, and in the office there was an easygoing camaraderie. Rana
misses the enthusiastic greetings with co-workers and the hugs with the other female em-
ployees. In Stockholm, her co-workers are friendly but more distant. Rana is used to speak-
ing with her whole body, using her arms to emphasize her points, and showing her emotions
through her facial expressions. Increasingly, she is wondering how she is doing. Her boss,
Arne Gustafson, seems to appreciate her work, but sometimes she has doubts. He never
just comes out and says, “Great job!” Yesterday he called her into his office to set the
agenda of an upcoming negotiation session with managers from Malaysia. Rana knows
that the firm faces tough competition and a joint venture with the Malaysian firm would
help open the Asian market. Arne discussed the negotiation strategy and gave her several
assignments for the negotiation. He was all business, correct but without emotion. Rana is
wondering: Is he confident that this Malaysian negotiation will go well? Does he have any
doubts? What does he think is going to happen? Is she doing her part? His words sound
confident, but during her time in Sweden she has found that she has not been very suc-
cessful at reading the thoughts and emotions of her co-workers.

How often have we listened to someone speak and wondered what the speaker re-
ally was saying? We may agree intuitively with the words, but in the back of our
minds we feel that there is more to the message than the words. We may even come
to the conclusion that the speaker means the opposite of what she says. We may
217
218 Chapter 6

base our judgment on an evaluation of tone, intonation, emphasis, facial expres-

sions, gestures and hand movements, distance, and eye contact—in short, on
nonverbal signals, or the silent language.1
Although nonverbal signals tend to enhance and support language, they can
minimize or even contradict a verbal message. For example, the phrase “I would
love to meet with you and discuss this issue in more detail” can take on different
meanings depending on the nonverbal signals accompanying the words, such as
the following:
• A smile while pulling out a calendar will support the words.
• Going on to the next topic without pausing after the statement may indicate that
the speaker is not serious and is not interested in meeting, at least not now.
• A frown and a search for something on the desk while uttering the words may
contradict the message altogether.
Some researchers maintain that in face-to-face communication up to 93 percent
of an oral message is communicated nonverbally and that the nonverbal elements
are a much better indicator of the true meaning than the actual words are.
Yet the true meaning and the interpretation depend on a variety of factors. As
we will see in this chapter, people from different cultures attach different meanings
to nonverbal signals. As one example, in Western cultures eye contact can signify
honesty, whereas in Asian cultures it may indicate rudeness.
The interpretation of nonverbal signals is complicated further by the fact that
within a culture not all people use the same signals. Men and women often use
different nonverbal language. Men in Western cultures tend to be more outspo-
ken than women are; however, with women asserting their rights more, women’s
communication is changing.2 People from different social classes within a cul-
ture also may use nonverbal signals differently. People from the upper classes
or people in leading positions may be more assertive and outspoken in many
cultures when they are communicating with people from lower classes and in
lower positions.3
Nonverbal communication is influenced by a number of factors, including:
• Cultural background
• Socioeconomic background
• Education
• Gender
• Age
• Personal preferences and idiosyncrasies
All these factors complicate the interpretation of the nonverbal aspects of
communication.
Needless to say, valid generalizations are difficult to make and always must be
reevaluated and seen in the context of the situation. For example, in a Western
cultural setting crossing one’s arms may be interpreted as being defensive, reject-
ing the other person, or being closed-minded. However, it is also possible that the
 Nonverbal Language in Intercultural Communication 219

nonverbal signal simply means that the speaker is cold. The isolated symbol may
not carry any deeper meaning. It is only one contributor to communication. To get
the whole meaning, one must look at all the signals together.
Other nonverbal symbols may be interesting but not carry a deeper meaning.
For example, when Europeans use their fingers in counting to five, they start with
the thumb and go in sequence to the little finger. Americans, in contrast, start with
the index finger, go on to the little finger, and count the thumb last. The Japanese
start with the little finger and go to the thumb.4 Although these differences are in-
teresting, they do not influence the meaning of what is being said. A German man-
ager who works in Dallas or Osaka needs to sort out which signals are important
and which ones are not.
You may wonder why we are concerned at all with nonverbal communication if
its interpretation is so difficult. The point is that nonverbal communication, be-
cause it varies so much and because it carries so much meaning, needs close
attention so we can decode and get our messages across more effectively. In this
chapter, we examine nonverbal language in several cultures, but bear in mind that
these are generalizations; although the descriptions are true generally for a culture,
there are many variations within a culture. As you learn more about a culture and
meet more people from that culture, you need to adapt and adjust your interpreta-
tion of nonverbal language signals.
What exactly is nonverbal language? Although researchers agree that nonver-
bal communication refers to nonworded language, they use a variety of definitions
that can be divided into two major categories:
• Nonverbal or nonworded communication includes all communication beyond the
spoken or written word. It includes aspects such as the language of friendship and
material possessions, as well as the nonverbal aspects of written communication,
like weight and color of paper, format, typeface, and binding.
• Nonverbal communication consisting only of nonverbal language using the
body, including paralanguage.
In this chapter, we will specifically examine:
• Paralanguage
• Vocal qualifiers
• Vocalization
• Nonverbal conventions in face-to-face communication
• Eye contact
• Facial expressions
• Gestures
• Timing in spoken exchange
• Touching
• Language of space
• Appearance
• Silence
220 Chapter 6

Paralanguage
Paralanguage lies between verbal and nonverbal communication. It involves
sounds but not words. The uhs, ahas, and uhms we use in our conversation are ex-
amples of paralanguage. Researchers divide paralanguage into three categories:
voice quality, vocal qualifiers, and vocalization.5 Voice quality seems to be more
of an individual than a cultural characteristic, and so we will examine vocal qual-
ifiers and vocalization.

Vocal Qualifiers
The term vocal qualifiers refers to volume, pitch, and the overall intonation or
“melody” of the spoken word. For example, does the speaker raise or lower his
voice at the end of a sentence? Does the speaker vary the speed of what she
says, or does she speak very evenly? Does the speaker vary the volume between
loud and soft; in other words, does he speak softly or does he shout? Vocal
qualifiers differ from culture to culture. For example, a non-Japanese person
listening to a Japanese man can get the impression that the Japanese speaker
“spits” words out in clusters. A cluster comes very fast, followed by a slight
pause before the next cluster emerges. Japanese women, by comparison, may
seem to speak more evenly.
In English as it is spoken in the United States, a speaker raises the pitch at the
end of a question, signifying a nonverbal question mark. If the rise in pitch is
accompanied by a pause, the listener interprets this to mean that the speaker is
waiting for an answer. However, if the speaker asks a question without the pitch
going up, he may not expect or want an answer. The speaker may be asking a
rhetorical question and then be ready to make the next point. A speaker who has
finished expressing an idea typically lowers her pitch, signifying she is done. The
pause indicates that someone else can speak now.
Vocal qualifiers provide important signals in turn taking in a conversation. If
everyone in the group is used to the same signals, the conversation can flow and
speakers seem to take their turns almost automatically. The rhythm of the conver-
sation feels natural. In contrast, if people use different intonation patterns, inter-
locutors may feel that the conversation is strained, that one side is trying to
dominate or is not contributing to the discussion.
Ending sentences with a high pitch in American English may indicate self-
doubt and uncertainty. In French, in contrast, sentences tend to end on a higher
pitch than they do in German or English. A French speaker may be very certain of
what she is saying, yet given the cultural background of the United States or
Germany, a listener may have a different impression and misinterpret the meaning
based on different intonation patterns.

Vocalization
All cultures use nonword noises such as “ahem,” “um,” “er,” sucking in one’s
breath, and clicking one’s tongue. These noises may be used as connectors between
ideas; they also may be used to indicate that someone is ready to say something or
 Nonverbal Language in Intercultural Communication 221

that more time is needed to think things over. Generally, the interpretation of these
noises does not present a major hurdle in intercultural communication. The fre-
quency of their use, however, varies from culture to culture.6
Related to the nonword vocalizers are fillers. For example, in English,
“okay,” “like,” and “you know” often are used as fillers. The words have a
meaning, but a speaker who uses them does not attach that specific meaning to
them. The words simply build a bridge to what the speaker says next. The use
of hai (literally translated yes) in Japanese serves the same function. Most
Japanese use hai as a filler without a particular meaning. Germans tend to use
“na,” “mann,” and others to similar effect. Fillers serve as a lubricant for the
flow of the speech. In intercultural communication, people must be aware of
the appropriate frequency and meaning of fillers. If these words serve as fillers,
they lose their dictionary meaning.

Nonverbal Business Conventions

in Face-to-Face Encounters
Nonverbal messages can be broken down into subcategories. Although this makes the
discussion easier, we must be careful not to assume that speakers use nonverbal sig-
nals in isolation. In most cases, speakers use many different signals at the same time.
We may move our hands, nod with our heads, smile, and keep close eye contact, all
at the same time. The nonverbal messages that give listeners the most trouble are those
which accompany words. It’s the tone of voice, the look on someone’s face, or the lack
of eye contact that makes you wonder if you are understood. As we discuss nonver-
bal conventions in face-to-face encounters, we will start with the nonverbal signals
that most closely accompany the verbal message and go on to those that are not con-
nected with words, such as the use of space, appearance, and silence.
To some extent, we are able to manipulate the signals consciously: We may
smile because that is expected of us even though we may not feel like smiling.
In many cases, however, we send nonverbal signals without being aware of doing
so. Those signals, the experts agree, are a reflection of our true feelings and
reactions. One of the goals in intercultural communication is to interpret all
nonverbal signals.

Eye Contact
In most cultures, superiors are freer to look at subordinates than the other way
around. Eye contact, therefore, also is related to power and perceived power. If
Alberto looks directly at his employee John, he indicates that he has a right to do
so. If John lowers his eyes when Alberto looks at him, he may be indicating that
he accepts his subordinate position. Of course, eye contact is only one aspect of
showing power. Traditionally, men can look more at women than women can look
at men. In the United States, for example, “ogling,” looking at the other sex, may
be interpreted as a form of sexual harassment and may even have legal conse-
quences. Eye contact, as a result, is becoming complicated in that culture.
European women sometimes comment that men from the United States are cold
222 Chapter 6

and don’t know how to flirt, the innocent game of looking and establishing eye
contact. At the same time, women from the United States who visit Southern
European countries are often uncomfortable when men look at them. The looking
is interpreted as offensive staring.
Rules governing eye contact are different in different cultures, and that differ-
ence can make people feel uncomfortable without being aware of why they are un-
comfortable. In the United States, it is customary to look at the speaker’s mouth
when listening but make intermittent eye contact with the eyes of a listener when
speaking. In China, it is the opposite: A speaker rivets the listener with sustained,
unbroken eye contact, but a listener does not make eye contact or look at the
speaker’s face consistently.

In Focus

Two professors from the United States went to a university in South Korea to negotiate an exchange program between
the U.S. and the Korean university. One of the professors was a native of Korea, but he had lived in the United States
for a long time. The other professor was a woman who had originally come from Norway. They had known each other
for many years but had not worked together closely. Before the first meeting with their colleagues from the Korean
university they met for lunch in the hotel restaurant to discuss how to best present their proposal. They sat across the
table from each other and talked about the business at hand but also about their personal experiences and back-
grounds. During the conversation, the woman professor noticed that her colleague did not sit facing her directly but
rather sat at an angle. When he talked with her, he did not look at her directly and did not speak to her directly. He
seemed to focus on a spot on her side. She began to feel awkward but did not know what to do. She felt uncomfort-
able asking him what was going on, and she began to wonder whether there were cultural reasons for this behavior.

Since several cultures consider the eye to be “the window of the soul,” eye con-
tact or its lack is interpreted to have special meaning. In these cultures, eye contact
is related to honesty. In other cultures, eye contact is seen as an invasion of privacy.

Eye Contact as a Sign of Honesty

“He couldn’t even look me in the eye” is a common phrase that in Western cultures
indicates that the speaker had something to hide. In North American and Northern
European cultures, eye contact shows openness, trustworthiness, and integrity.
One doesn’t have anything to hide. If a woman from the United States looks di-
rectly at someone, she allows that person to see her eyes and decide whether she
is trustworthy. Someone who does not make eye contact is considered shifty and
makes the listener suspicious. In that case, the defenses go up and one becomes
more careful. People from all cultures carry their cultural attitudes toward eye con-
tact with them, and like most aspects of nonverbal behavior, eye contact does not
travel easily across cultural boundaries. In most cases, we don’t consciously think
of eye contact; we do it subconsciously. As a result, habits relating to eye contact
are difficult to change.
 Nonverbal Language in Intercultural Communication 223

Arab cultures, even more than Western cultures, use very intense eye contact
and concentrate on eye movement to read real intentions. The feeling is that the
eye does not lie. To see the eye more clearly, Arabs move closer, and that makes
non-Arabs uncomfortable. This links eye contact to the use of space. As we will
see throughout this chapter, nonverbal communication signals are linked.
A person from Japan, for example, would feel uncomfortable both with the in-
tense eye contact and with the close physical proximity. That person will feel even
more uncomfortable if the Arab, in addition to making close eye contact and stand-
ing very close to the listener, touches the listener. In this case, the Arab is sending
three very strong nonverbal signals, all of which run counter to what is acceptable
nonverbal behavior in Japan.
In many cases an Arab speaker may not want to disclose his innermost feel-
ings, yet because of the culture, he cannot refuse eye contact. Therefore, he may
look for other means to protect his feelings and intentions. Some people say that
the former Palestinian leader Yasser Arafat, for example, always used to wear sun-
glasses so that the people he was talking to could not follow the movement of his
eyes. They argued that the sunglasses were an attempt to hide his true intentions
and motives.

Eye Contact as a Sign of Invasion of Privacy

To look someone in the eye in Japan is to invade that person’s space. It is rude.
When samurai held power, a strict code of behavior was enforced regarding who
could look at whom and for how long one could look, and one violated those codes
at one’s peril.7 This has carried over into modern society. The Japanese may sit
close together in an office, but they seldom look each other in the eye.
The Japanese feel uncomfortable with direct eye contact, and they want to avoid
it. In addition, not looking someone in the eye preserves that person’s private space
or bubble. In a crowded country, the preservation of privacy by any means is con-
sidered important. When greeting someone, one bows and looks past the other per-
son. If you do not want to acknowledge a person at all—for example, if you are
concentrating on something important and don’t want to lose your focus—you
may simply look down as you walk past the other person. What could be seen as a
slight or insult in Western countries would simply be a signal that you do not want
to be interrupted. The degree of American eye contact would be considered star-
ing and rude in the Japanese environment. Even on the crowded subways and
trains, nobody makes eye contact. People look past each other. As we will discuss
in greater detail later in the chapter, during negotiation the Japanese may look
down past their counterparts. In fact, they may even close their eyes, which can be
very disconcerting to American negotiators who are used to looking at the people
across the negotiation table.

Facial Expressions
Words often are accompanied by distinct facial expressions. In many cultures,
when people are surprised, they may open their eyes widely and also open their
mouths. When they like something, their eyes may beam and they may smile.
224 Chapter 6

When they are angry, they may frown and narrow their eyes. Although many facial
expressions carry similar meanings in a variety of cultures, the frequency and in-
tensity of their use may vary. Latin and Arab cultures use more intense facial ex-
pressions, whereas East Asian cultures use more subdued facial expressions.

Smiling
People in all cultures smile at times; however, the meaning of a smile may vary.
Depending on the culture, it can indicate joy and amusement, but it also can indi-
cate embarrassment.
In an attempt to appear open and friendly, people in the United States smile a
lot. Everyone smiles at everyone. To those in other cultures, the American smile
often appears insincere and frozen. Why, for example, should a waitress smile?
Restaurants in the United States go to great lengths in training to ensure that all
employees use the appropriate smile. Americans are surprised and puzzled that the
rest of the world does not seem to share the American emphasis on the smile.
McDonald’s, for example, had a hard time teaching waitresses in Moscow the im-
portance of the smile and the proper type of smile.
In Japan, people don’t smile the way people from the United States do. One
does not show feelings freely and force one’s emotions on anybody else. Men don’t
smile in public, and women are not supposed to show their teeth when they smile.
To guarantee that the teeth are hidden, Japanese women tend to put a hand in front
of their mouths when laughing. The women who greet customers in banks and
stores with a deep bow do not really smile by U.S. standards. They look pleasant,
but they don’t really smile at the customer the way an American would.
Germans smile, but not nearly as much as people in the United States do. They
will say bluntly, “Life is severe, and there is very little to smile about.” Germans are
very reserved, but for reasons different from those of the Japanese. The Japanese
don’t want to intrude; the Germans recognize that the world is not necessarily a
pleasant place. Life is doing one’s duty, and duty does not necessarily lend itself to
smiling. Walmart wanted to lighten up the poor service in German stores (Germans
frequently say that Germany is a Service Wüste, literally meaning a desert as far as
service is concerned) by insisting that personnel greet shoppers and smile at them.
The Germans, while moaning about unfriendly service, were not impressed by the
efforts. They saw the smiling employees as manipulative and insincere.
Koreans consider it inappropriate for adults to smile in public. Smiling at
strangers is something the mentally retarded do or children do before they are
trained properly. In addition, for Koreans, as for the members of many other cul-
tures in East Asia, a smile often is an expression not of pleasure but of embarrass-
ment. When a person from the United States or Europe might blush with
embarrassment or become defensive, an Asian might smile. To avoid serious mis-
understandings, people who engage in intercultural communication should be able
to interpret a smile appropriately.
Related to the smile is the laugh. Americans can have a very deeply felt belly
laugh that comes from the deepest emotions. In Arabic and Latin cultures, the
laugh often is accompanied by expressive gestures such as arm waving and
 Nonverbal Language in Intercultural Communication 225

touching. The Japanese seldom laugh that way except among intimates. A laugh
is not necessarily an expression of joy and happiness. Like a smile, a laugh often
is an expression of being uncomfortable, nervous, and embarrassed.

Showing Anger
The expression of anger also varies from culture to culture in terms of both inten-
sity and type of expression. In addition, cultural values dictate who can show
anger. For example, negotiators from Korea are expected to behave with dignity
and maintain face so as not to violate the emphasis on formality and courtesy.
As Korean society has become more industrialized, younger businesspeople may
behave less traditionally, but the influence of tradition is still strong.8 Generally,
older people, men, and people in authority may show anger more readily than do
younger people, women, and subordinates. The boss may get angry at the subor-
dinate, but the subordinate is well advised not to react in kind. The result is that
the interpretation and the display of anger are influenced by culture.
One of the milder forms of showing anger in Western cultures, for example, is
frowning. Depending on the context, frowning can indicate anger, doubt, ques-
tioning of authority, suspicion, or disagreement. In cultures in which the open
expression of one’s feeling is not appreciated, frowning may be much more sub-
dued. The Japanese, for example, avert the gaze to hide anger; showing anger
openly even through frowning is considered inappropriate in business contexts and
may result in loss of face.
Another way to show anger is to shout and gesture. As we mentioned earlier,
nonverbal communication signals often are combined. Germans, Canadians,
Arabs, and Latins often raise their voices when angry. The Japanese seldom raise
their voices when angry. Instead, anger may be shown by sucking in one’s breath
rather than letting it out with a scream. When Germans are angry, their faces may
get red and they may shout, but typically they are still fairly correct in the way they
address the opponent. Many would still call the opponent “Sie” (the formal address
for “you”) even if they throw all sorts of epithets at him.
Some cultures use intense and expressive gesturing to show anger. People from
the Middle East accompany their verbal tirades with big gestures. The whole body
is involved in showing anger and outrage as if to illustrate that the entire person is
affected. Showing anger means not just a battle of words but a battle of one’s entire
existence.
Research in Korean companies has revealed the surprising fact that Korean
managers often show anger toward subordinates not only with verbal criticism but
also with nonverbal acts of violence—even throwing coffee on a subordinate or
causing physical injury!9 This is surprising behavior because it is so different from
what is known of Asian attention to face and harmony. It also shows that people in
cultures in the same geographic area may act very differently.
Asian cultures tend to restrict the range of facial expressions by Western stan-
dards. As a result, anger is not expressed openly in work environments in many
Asian cultures. People from Asian cultures are able to read the message of the sub-
dued nonverbal facial communication of anger, but people from Western cultures
226 Chapter 6

tend to have a hard time deciphering the code. Compared with Japanese culture,
facial expressions in Arabic cultures tend to overstate feelings such as anger. From
the facial expression, an outsider may find it hard to determine how angry a person
from the Middle East really is. Nonverbal and verbal communication in Arabic
cultures tends toward greater expressiveness and emotion. Eloquence is valued in
Arabic cultures, and how one says something is as important as what one says.
Arabic speakers repeat ideas, phrases, and words to show sincerity about what they
are saying, and sometimes to show authenticity of authority. Outsiders may easily
interpret the show of emotion as anger.10 The point is that people from the same
culture have no trouble reading the message. The problem comes when people
cross cultural boundaries and enter a different system of communicating through
facial expressions and gestures.

Gestures
Head Movements
In most cultures, nodding one’s head is seen as agreeing. Shaking one’s head is
seen as rejecting, although Bulgarians do the opposite—they shake their heads
when agreeing. In southern India, moving one’s head from side to side is not a
negation. Even in this area where most cultures agree, there is some disagreement.
A speaker may nod her head to affirm what she is saying and emphasize the
verbal message. The listener may nod to signal understanding and approval. Nod-
ding can be a signal that the listener understands and that the speaker can continue
with the discussion.
A lowered head in Western culture can signify defeat or uncertainty. In Asian
cultures, lowering one’s head may represent accepting one’s place in the hierarchy,
but it also may be an indication of intent listening. Japanese managers, for exam-
ple, frequently lower their heads and close their eyes during negotiations.
Americans see this as a lack of interest or even disrespect; for the Japanese, this
may merely be natural listening behavior. In contrast, tilting the head upward in
Western cultures is interpreted as being arrogant, as is illustrated in the expression
“His nose was in the air.”

Arm Movements
Arm movements take up space and thus enlarge the size of the speaker. A speaker
who uses big arm movements can intimidate the listener and appear more power-
ful. In most cultures, men tend to use larger gestures than women do.
When a businessman from the United States wants to emphasize a point in a
discussion, he may pound his fist on the table and underline his statements with
staccato drumming of the table. Businesswomen in the United States in the same
situation use far fewer arm and hand movements. However, compared with
Japanese women, American women use very expressive arm movements.
Japanese men use far fewer arm movements than do both men and women from
the United States. Personal space in Japan is limited, and big arm movements could
invade someone’s private space. In addition, big gestures draw attention to the
speaker and single him out from the group, thereby threatening the harmony of
the group. Someone from a more openly expressive culture may interpret the
 Nonverbal Language in Intercultural Communication 227

subdued arm and body movements of a Japanese person as submissive or timid.

A non-Japanese negotiator may even think that the Japanese businessperson is not
interested and does not care about the discussion. Yet by Japanese standards this per-
son may be quite expressive. People who are used to expressive gestures often have
difficulty recognizing and interpreting subdued gestures. They may be so busy
talking with their arms that they don’t hear the body language of the other person.
The person from the subdued culture, however, may be overwhelmed by the gestures
that he too has difficulty understanding. The gestures seem to scream at him.
Arab men use their arms even more than men from the United States do. Ges-
tures and waving of the arms accompany almost every spoken word and seem to
embrace a wide space. Arm movements can signal happiness but also anger (see
the earlier discussion in the “Showing Anger” section of this chapter). The expan-
sive gestures run parallel to the hyperbole in the spoken language. The exaggera-
tion and repetition help establish credibility and seriousness. In the process of
waving his arms, an Arab may touch the listener occasionally. For Arabs, words do
not seem to be sufficient to express thoughts. The nonverbal signals do not just
accompany the spoken word; they are an integral part of the verbal message.11

In Focus

One of the authors videotaped students making oral presentations in English and in their native languages to see if the
nonverbal codes differed in the same speaker. These presentations seemed to indicate that nonverbal codes learned
with a specific language did not transfer to another language. For example, an Iranian student, when speaking Farsi,
put his hands behind his back in a gesture of respect, straightened his back, and spoke with his chin up, making eye
contact only with the professor, the authority figure. When the same student gave his presentation in English, he looked
like an ordinary American student, keeping one hand in his pocket, occasionally shifting his weight from one foot to
the other, and maintaining eye contact with everyone in the room.
It would be interesting to see the extent to which the change in body movements was a conscious effort to fit into
American culture and the extent to which it was a subconscious connection of English with a certain set of nonverbal
signals.

As we discussed in Chapter 2, English is used frequently in international busi-

ness, but many businesspeople speak English as a foreign language. Do those busi-
nesspeople synchronize their nonverbal communication with English nonverbals
or with nonverbals from their native culture? If they synchronize it with English
nonverbal signals, which nonverbal patterns do they use? Those of Great Britain,
the United States, Australia, New Zealand, or India? Unless a businessperson is
fluent linguistically and culturally, she probably will combine English with non-
verbals from her own culture.

Posture
The way we sit, stand, and walk sends a nonverbal message. In Western culture,
standing tall conveys confidence. A confident person stands erect with the
228 Chapter 6

shoulders back and the head up. The posture signals, “I am not afraid of anything.”
The appropriate posture is related to a person’s status in society. For example, a
manager may stand erect when talking to subordinates, but the subordinates may
drop their shoulders when talking to the manager. In traditional societies, the
person lower in the hierarchy may be expected to prostrate himself in front of the
tribal chief or village elder to show respect. Although this form of showing respect
and submission is not practiced in intercultural business communication, an inter-
national manager needs to know what is acceptable posture in a given culture.
Although in most business situations people sit on chairs, in many Arab cul-
tures men conduct business while sitting on the floor. In traditional Japanese
businesses, people also may sit on the floor. The Japanese style of sitting with
the legs tucked under can be very taxing for outsiders who are not used to that
posture. In after-hours entertaining, the Japanese like to challenge Westerners to
sit in the Japanese pose. However, young people frequently prefer a Western
arrangement and increasingly find the traditional seating patterns uncomfort-
able and difficult. Typically, multinational companies tend to use Western con-
ventions. Smaller companies and domestic companies are more likely to
preserve local traditions. A business person, therefore, needs to be aware of the
entire context of the situation.
In many cultures, women with middle-class and upper-class backgrounds are
supposed to sit with their legs and ankles together and their arms close to their bod-
ies. Women are to be modest and take up little space. When women sit in an easy
chair, they seem to “borrow” the space; men, in contrast, seem to “own” the space.
In Western cultures, this has changed quite an extent over the last two decades, and
young women often are as relaxed as men are while sitting. When Western women
do business in more traditional societies, such as Japan and India, they need to
adapt the way they sit and stand to avoid giving offense.
The way we use our bodies when communicating indicates how we perceive our
power, authority, and position in relation to the person with whom we are com-
municating. If the other person comes from the same culture, she can read the sig-
nals fairly accurately. If the other person is from another culture, she may have
difficulties. She may interpret the lack of body language as rejection or the ex-
pressive body language as threatening when the speaker was simply using his or
her own cultural style.

Timing in Spoken Exchanges

A conversation is a verbal exchange between people. Although the words are ob-
viously important, the timing of the exchange also carries a significant nonverbal
message. To examine the timing of nonverbal communication, we must answer
several questions:
• Who initiates the communication?
• What are the patterns of frequency of exchange?
• What is acceptable behavior for interrupting the speaker?
• What are the patterns for terminating the exchange?
 Nonverbal Language in Intercultural Communication 229

In their own culture, people know what the typical patterns for verbal interaction
are. For an outsider, the timing issue becomes more complex because it is related
closely to issues of gender, status, and hierarchy. In many cultures, men initiate ver-
bal exchanges more frequently than women do, older people are more likely to start
the exchange than younger people are, people with authority are more likely to initi-
ate communication than are subordinates, and this behavior is carried into the office.
Questions 2 and 3 are connected. Whoever interrupts also controls the ex-
change. Again, in most cultures the patterns are similar, but Japan is an exception:
Interrupting others is not acceptable. In cultures in which interrupting the speaker
is acceptable, businessmen tend to interrupt businesswomen more often than the
other way around. Older people interrupt younger people more often, and people
in power positions interrupt subordinates. Although anyone can end the commu-
nication, frequently men, older people, and people in positions of authority are the
ones who control the termination.
The roles that gender, age, and authority play in the timing of communication
in all cultures might suggest that culture-based differences in timing are small,
yet the differences are significant. For example, even though research has shown
that in the United States men tend to dominate the timing of communication,12
American women are much more assertive and outspoken in business and in
public than Saudi and Japanese women are.
The following examples illustrate the timing behavior in three different
environments:
• An environment that emphasizes equality
• An environment that emphasizes seniority and hierarchy
• An environment that emphasizes the role of men
These areas overlap; the Japanese, for example, value seniority, but life is domi-
nated by men. In Saudi Arabia, women are almost banished from public life but
seniority plays a role in the lives of both men and women.

Emphasis on Equal Status

For most people in the United States, a discussion is a give-and-take procedure in
which people take turns speaking. The speaker gives clues indicating when he ex-
pects the other side to come in, when to wait, and when to be silent. The listener
also sends signals indicating when he wants to get in. These signals are internal-
ized, and most people don’t think much about them unless the reality clashes with
their expectations. One of the signals an American may use to indicate readiness
for a reply is to lower the voice, pause at the end of a phrase or sentence, gesture
for a response, or look expectantly at the other person. A person from another cul-
ture who is used to different rules for turn-taking may misinterpret the signals or
even miss the signals that it is appropriate to enter the conversation.
Women and young people in the United States have become more assertive
and outspoken over the last few years and increasingly influence and even control
the timing of communication. Many companies proclaim open-door policies and
strive to empower employees in an effort to tap the creativity of their workers.
230 Chapter 6

They encourage subordinates to initiate communication with supervisors and ex-

press their ideas more openly. As a result, employees have gained some control
over the timing of both verbal and nonverbal communication.
The millennium generation in the United States, the “Little Emperors” of
China, young Japanese, and well-educated young people from Latin America, all
seem to have a feeling of entitlement that typically does not go well with tradi-
tional values. It will be interesting to see in the coming years whether these young
people will truly change the culture or whether they will go back to the more
traditional cultural orientations as they grow older.

Emphasis on Seniority and Hierarchy

The timing in a Japanese conversation is dominated by the person with seniority, who
also typically is higher in the hierarchy. A younger person will wait to be addressed
and avoid eye contact while being addressed and while speaking. For a non-Japanese
person, the timing of a Japanese interchange is difficult to follow because much of
the conversation is nonverbal and the nonverbal signals are difficult for outsiders to
decipher. The timing signals are more subtle than those in the United States, almost
imperceptible. The verbal duel, common in Western culture, is frowned upon.

Emphasis on the Role of Men

In contrast to Japan, Arabic cultures are more verbally oriented. People enjoy the
lively exchange of ideas. At first glance, one may get the impression that everyone
can interrupt everyone and jump into the conversation. Yet older men clearly dom-
inate the exchange and timing. Although many people, including younger ones,
may speak, a few older men control the process. Women in many Arab countries
do not speak in public, and in business settings women are seldom participants.
The timing of communication typically is controlled by men. Women appear to be
more reactive than proactive participants.

Touching
In many international business settings, the handshake has become an accepted
touch, a “lingua franca,” between businesspeople when they first meet, replacing
or complementing traditional greeting rituals. But the type of handshake varies
widely (see Exhibit 6.1). Germans and Americans prefer a firm handshake, which
is seen as a symbol of strength and character.
EXHIBIT 6.1 The Handshake

Country or Region Type of Handshake

United States Firm handshake
France Soft handshake
Germany Firm handshake, for men, traditionally accompanied by a slight bow
Japan Handshake with arm firmly extended, accompanied by bow
Middle East Handshake and free hand placed on forearm of other person
 Nonverbal Language in Intercultural Communication 231

The French generally have a much softer handshake. They may feel uncom-
fortable with the grip of a German, and a German may wonder about the limp
handshake of a French person. Middle Easterners and men from many Latin cul-
tures may put the free hand on the forearm of the person with whom they are shak-
ing hands. As a result, the distance to the other person diminishes. The Japanese,
who are used to bowing, may shake hands with foreign business partners but keep
the arm firmly extended to maintain a greater distance. In addition, they may bow
slightly and thereby combine the Japanese and Western greeting rituals. German
men traditionally also bow when shaking someone’s hand. The German bow, how-
ever, differs significantly from the Japanese bow.
The handshake with the bow illustrates that greeting rituals in many cases com-
bine different types of nonverbal communication. As was mentioned earlier, the
German and Japanese bows differ (see Exhibit 6.2). The Japanese bow from the
hip with a straight back. Men keep their arms at their sides with the hands extended
at the sides of the upper legs. Japanese women when bowing put their hands on the
front of their thighs. During the bowing the neck remains straight. In German bow-
ing, by comparison, the hips remain straight; the bow comes out of a lowering of
the head. The German bow is called a Diener. This means it is a bow to, and a
recognition of, authority. The word Diener means “servant,” and so with the bow
the German says “at your service.” Older Germans may still do a Diener, but most
people today just give a slight nod of the head. The bow does not fit with notions
of democracy and equality. Former Chancellor Helmut Kohl was criticized by a

EXHIBIT 6.2 Japanese bow

Greetings
Men Women

German bow
232 Chapter 6

number of people and magazines because he did a Diener when greeting the first
President Bush. The gesture was seen by many Germans as unacceptably servile.
In Argentina, when women meet work associates or friends, they stretch for-
ward so that their right cheek is touching the other person’s right cheek and per-
haps kiss the air below the other person’s right ear. Women do this when meeting
men or women; men do this only when meeting women. Not to perform this greet-
ing ritual is to appear cold, unfriendly, and even angry. In Lebanon, men typically
kiss the right cheek, the left cheek, and perhaps the right cheek again of other men.
In Estonia, however, cheek kissing is not approved of. Estonians expect a firm
handshake upon meeting and again when taking leave of someone.
The German culture uses the handshake more frequently than does almost any
other culture. In fact, this form of touch is the acceptable and expected form of
touch in virtually every situation, whether meeting a stranger or greeting a family
member. Not following the custom is viewed negatively.

In Focus

Ulrike Schumacher, a German student, worked as an au pair girl with an English family for a summer. She had a very
good experience and improved her English tremendously. The host family welcomed her and was rather generous. In
many ways, she was part of the family. However, she thought it strange that throughout her stay she never once shook
hands with the family, neither at the beginning nor at the end of her stay. She became accustomed to the lack of touch,
though, and did not think much about it; she adapted. When she returned to Germany, her family members were gath-
ered and eager to hear about her experiences. As Ulrike entered the living room where everyone was congregated,
she said, “Guten Abend, schön wieder daheim zu sein” (Good evening, nice to be back home again) and nodded to the
group. Afterward, her parents criticized Ulrike for being distant and uppity in not going around the room and shaking
everyone’s hand.

In Germany, shaking hands is an accepted and expected greeting ritual; however,

Germans seldom embrace. Hugging, even among family members, is rarer than it
is in France and in Latin cultures. The handshake establishes touch, but at arm’s
length, whereas an embrace represents too much invasion of the personal bubble.
Increasingly, German managers who are working internationally go through
training programs to become familiar and comfortable with different greeting rit-
uals. At first glance, a German manager may expect a manager from Slovakia, a
country in central Europe, to exhibit similar behavior patterns. After all, the coun-
tries are very close. Yet, managers from Slovakia, while formal during the first
meeting, typically become less formal in the second meeting. They touch each
other and even embrace. In their view, the German formality is considered cold
and impersonal.13
The Māori of New Zealand, in contrast, expect touching as part of the greeting
ritual. Māori businesspeople may feel left out of business meetings if the traditional
greeting, the hongi, or pressing of noses, and the karanga, or formal cry of welcome,
 Nonverbal Language in Intercultural Communication 233

are not performed. They serve a similar function to handshaking in German society,
setting everyone at ease. It would be unthinkable for a Māori function not to begin
with both hongi and karanga, however many non-Māori are present.
People from low-context cultures tend to feel crowded by people from high-
context cultures, and people from high-context cultures feel left out and rejected
by people from low-context cultures. People come with certain expectations that
frame their behavior, and when those expectations are not met, they feel confused,
resentful, or excluded. All people from all cultures bring their unique cultural bag-
gage with them. However, as people learn more about another culture, they adjust
their expectations. They become more sophisticated and adjust their behavior
according to the context and their degree of awareness of that context.
A Bolivian and a Dutchman who meet for the first time to do business will both
be dissatisfied unless they understand each other’s touching behavior. The Boliv-
ian comes from a culture that is close, where people touch each other frequently
while speaking. He will approach his Dutch counterpart with this background and
act accordingly. The Dutchman comes from a much more reserved culture where
people are more distant and cold. He too will bring his background to the meeting
and act accordingly. If they want to work together, they need to come to terms with
these differences.
How do we know what the “right” distance is and what acceptable touch is? As
in childhood, we learn by observation in individual situations. Books can help, but
lists of dos and don’ts, while providing some initial guidelines, do not give the
underlying reasons for individual differences, variations, and changes.
Touching behavior can, and does, change as people adapt to new cultural envi-
ronments. Sometimes they very consciously decide to change to fit in. When
Vittorio Sanchez goes to Chicago on business, he refrains from touching the busi-
nessmen he meets because he knows that businesspeople in the United States
touch each other less frequently than Latins do. In other cases, the adaptation oc-
curs more at the intuitive level, at which people are not necessarily consciously
aware of changes in their touching behavior. Urs Luder, a businessman from
Switzerland, has noticed that his past few visits to Abu Dhabi have been much
more pleasant. He is not as tense and nervous as before, and the atmosphere is
more relaxed. His hosts seem more pleasant. What Urs may not be aware of is that
his nonverbal behavior has changed. He does not avoid being touched by the peo-
ple he talks to, and he approaches people more openly and feels comfortable put-
ting his hand on someone’s arm.
If we understand that touching is natural to some cultures, we will be less of-
fended if someone touches us. By the same token, if the other person knows that
we need our space, he or she will allow us more room and breathing space.
Above all, we need to keep things in perspective and not get offended each time
we deal with someone who has a different relationship to space. Men in Africa
hold hands with other men while walking down the street. Men in the Middle East
kiss the cheeks of other men in greeting. Russian men embrace in a bear hug. Do-
ing business with people from other cultures may mean setting aside ideas about
touching learned in one’s culture. During a television interview, the late Egyptian
234 Chapter 6

president Anwar Sadat, in the excitement of the discussion, slapped the former
British prime minister, Margaret Thatcher, on the knee. Most people think of
Mrs. Thatcher as properly British and fairly distant, but she was not offended. She
correctly interpreted the gesture as acceptable in the Egyptian culture.

The Language of Space

The language of space is powerful. How close can we get to people? How distant
should we be? Most of us never think about space. We intuitively know what the
right distance is. Our use of space in communication is an excellent illustration
that culture is learned and not inborn. Though our parents may have given us some
verbal instruction on space, we have learned most of our behavior by means of ob-
servation. We simply do what is “right.”
Arabs learn the same way, and so do Japanese, Mexicans, Russians, and the
members of all other cultures. The problem is that the acceptable use of space
varies widely among cultures. What feels right for us may be totally offensive to
someone else. Space in many ways becomes an extension of us, and we feel un-
comfortable with people who play by different rules.

Private Space
In many cultures, the private space is sacred, and people feel violated if someone
invades that personal bubble. In the United States, that bubble is about the length
of an arm, and we talk about arm’s-length relationships, meaning that we keep
someone at a distance and don’t allow that person into our personal sphere. That
bubble is a little bit smaller in France, but larger in the Netherlands and Germany.
It is even larger in Japan, but much smaller in Latin countries and the Middle East
(see Exhibit 6.3). The size of the private space also is influenced by social status,
gender, age, and level of authority, further complicating the interpretation of space
in communication. Our attitude toward space reflects our attitude toward privacy.
If we understand how people arrange their personal space at home, we will gain
insight into the way they communicate through space at work.

EXHIBIT 6.3 Japanese

Personal Space in
Several Cultures
German
Culture

American

French

Arab
Latin American

Small space Large space

 Nonverbal Language in Intercultural Communication 235

Northern Europeans cherish their privacy and arrange their dwellings accord-
ingly. Property boundaries are marked carefully, and everyone ensures they are not
violated. Fences and hedges separate gardens. Traditionally, a German house had
a fence around the front yard with a gate that was closed and in many cases locked.
Over the last two decades, the front gate increasingly has been left open, and today
it usually is removed altogether. As more and more Germans acquired automo-
biles, dealing with the gate became inconvenient.
In Germany, elaborate laws detail rules on the use of the garden. Fences must
be on the property line, and their height is regulated. In a country that is crowded
and where sunlight is cherished, the fence must be low enough that it does not hin-
der the growth of vegetables in the neighbor’s garden. Trees must be planted at a
prescribed distance from the lot line so they don’t shade the neighbor’s property.
Germans send a strong signal that they don’t want anyone to invade their space. If
necessary, legal regulations will enforce the cultural predisposition toward privacy.

In Focus

When Mr. Schubert came home from work, he would have to get out of the car, unlock the gate and open it, unlock the
garage door and open it, get back into the car, and drive the car into the garage. Then he would have to lock both the garage
door and the front gate. This process became too inconvenient; hence, the changing custom. Today, gates in the front
are rare, but hedges and low fences around the front yard are still common, signaling that there is a sphere of privacy.

In a German house, the emphasis on privacy also is obvious. For example, all
rooms have doors with locks, and the doors are closed and often locked. It would
be inconsiderate to enter someone’s room without first knocking on the door and
waiting for an invitation to come in. In the common areas, one may enter without
knocking, but the doors are still closed. As more and more houses have gotten
central heat, the doors to the common living area now tend to remain open, but
bedroom and bathroom doors are always closed.
In contrast to Germany, houses in the United States may have fences or hedges
surrounding the backyard, but the front yards are wide open and inviting. Doors
tend to be open, an invitation to come in. If someone wants to be alone, the door
may be closed.
In Japan, privacy is defined altogether differently than it is in the United States
and Germany. Japan is a crowded country, and space is costly; therefore, houses
and apartments are smaller. Yet within this crowdedness the Japanese are able to
create a private sphere. The private bubble and the personal space are more a cre-
ation of the mind than an actual entity. Americans connect privacy with physical
space, whereas Japanese people connect privacy with mental space.
The Swiss deal with lack of space and the desire for privacy by creating elabo-
rate rules. Many apartment complexes in big Swiss cities, for example, prescribe
how late one can take a bath, flush the toilet, or use the washing machine.
236 Chapter 6

Middle Eastern and Latin cultures also reflect their attitudes toward privacy
and personal space in the way they arrange their houses. A house in the Middle
East traditionally has few or no windows to the street; all the windows open into
an inner courtyard. The family is protected from the outside world by walling
itself off in a realm of privacy. Within the house, however, personal space for
the individual is often limited; family togetherness is emphasized. To remove
oneself physically and insist on one’s own space is not acceptable and is not
easily tolerated. Individuals are first and foremost part of a family, and the liv-
ing arrangement emphasizes that concept. Within the family space, men’s and
women’s areas are separated in Islamic homes. In many ways, men and women
dwell in the same compound but live separate lives in separate quarters. Uzbeks
emphasize family as well. When an Uzbek man marries, his parents traditionally
add a room to the compound. The couple has one private room; the rest of life is
shared with the family.
An interesting use of private space that blurs into business space comes from
Arab cultures whose members traditionally do business with people whom they
know. The men develop relationships that can be business contacts when they visit
the dewaniah, the room for social gatherings near the front entrance of a house.
The dewaniah is a kind of open house salon, where friends, neighbors, relatives,
and business associates come to chat once a week or more often. Everyone sits in
a circle, either on couches or on carpets on the floor, having first removed their
shoes at the door.

Office Space
Our attitudes toward private space also are carried over into our attitudes to-
ward office space. Generally, cultures that value a big personal space value
large and private offices. In cultures in which personal distance is smaller,
the size of the office is not as crucial. Japan does not quite fit into this pattern.
The Japanese prefer a larger interpersonal distance, yet they seldom have
private offices. We must keep in mind, however, that the Japanese, as was
mentioned earlier, do not so much emphasize actual physical distance to attain
privacy as they emphasize mental distance. In addition, the emphasis on group
orientation in Japan carries more weight than does any consideration for pri-
vacy. The whole issue of office space in the case of Japan is influenced by
other cultural values and considerations.
The following examples illustrate the idea that the arrangement of office space
is a reflection of underlying cultural values.
In the United States, the size of an office and its location are indicative of a busi-
nessperson’s success, importance, power, and status within the hierarchy. In a country
where many offices do not have windows, windows are a status symbol. Top man-
agers have their offices on top floors with plenty of windows. In a Midwestern
university, for example, offices are assigned by seniority, and a goal of every pro-
fessor is ultimately to have one of the rare outside offices with a window.
In addition to size and location, the furnishings signify the level of importance.
A Midwestern insurance firm in the United States has three grades of wastebaskets.
 Nonverbal Language in Intercultural Communication 237

The kinds of desks, desk lamps, artwork, and plants employees can have in their
workspaces are dictated by status and level of importance.
The French are horrified when they look at typical American offices with their
artificial light because both in France and in Germany every employee is entitled
to a workplace with natural light. They are puzzled how human beings can work
and concentrate in offices without natural light. Schools in Germany, by law, must
have windows large enough that the square footage of the windows equals at least
two-thirds of the square footage of the room. American schools without windows
look like prisons to Europeans.
Office size and furnishings are important in Europe also. A manager who has
a private office with a Vorzimmer (outer office) and a secretary is important, and
everyone knows it. As in private houses, German office doors are closed. It would
be unthinkable to barge into an office without first knocking at the doors, both the
boss’s and the secretary’s, and waiting for “Herein” (come in). An office is a
private workplace that one does not enter uninvited.
French offices tend to reflect the cultural value of centralization. Just as France
is centralized, with every major road converging on Paris, offices are spatially or-
ganized around the manager who is at the center. The manager is the controller and
observer of everything going on in the office. Currently, most companies are head-
quartered in Paris. The top managers control all activities at headquarters, and
headquarters in Paris controls all company activities across France. Most French
people agree that anyone who wants to get ahead in this environment must move
to Paris. Ambitious people are petrified at the idea of being “banished” to the
provinces. The centralized office arrangement reflects the historical developments
and realities of France.
Office space in the Middle East and in Latin America can be quite different.
Big multinationals in the Middle East and high-technology oil firms have a more
Western approach to office space, but the attitude in smaller and midsize Arab
firms is quite different.
The office is a meeting place. A businessperson thinks nothing of having sev-
eral different persons in the office at the same time and doing business with them
simultaneously. Westerners, who may be offended by the informality and lack of
privacy and total attention, may have a hard time coping, but an Arab businessman
sees nothing wrong with the arrangement.
Offices in the Middle East tend to be crowded. Importance is not necessar-
ily reflected in the size and location of the office, and the typical American
status perks may be meaningless. That does not mean, however, that there are
no symbols to indicate the level of importance. Since in many ways status is
conveyed by the importance and number of connections one has, a manager
who has many visitors and receives many phone calls during your visit may
show his importance that way. Where an American manager may ask her as-
sistant to hold all calls while she is meeting with a potential client, a manager
in Saudi Arabia may make sure that a lot of calls come in while he meets
with a future business partner. Foreign businesspeople may be invited to the
diwaniah, as described earlier.
238 Chapter 6

In Focus

Two German women living with an Iraqi family for a summer had to see a doctor; one had an ear infection, and the other
suffered from laryngitis. The family contacted a specialist, and the son of the host family accompanied the two women
to interpret for them. The doctor had a long line of patients waiting outside the office, all of whom had applied for work
at the Baghdad airport and needed vision and hearing examinations. The Germans and their friend were whisked past
the line of people and taken directly into the office. The doctor, who had studied in Europe, was delighted to see them
and interrupted the examination of a patient to serve tea to the new arrivals. He invited them to sit down and then fin-
ished the examination of the man. Next he examined the German women and gave them each a shot of penicillin. He
asked them to stay longer and visit with him. During that time he continued his examination of the other patients, and
nobody seemed offended (also see Chapter 3 on the simultaneous performance of tasks).
This scene would be unthinkable in North America or Europe. It is important to keep in mind that the patients were
there for a routine check of vision and hearing and did not have to undress or discuss personal matters; even so, a
Western patient would expect total attention from the doctor and resent having other people sitting in the examination
room. Yet this is acceptable behavior in the Middle East.

In Focus

Fred Brunell, a French manager, is visiting Ayub Rabah in his office in Amman, Jordan. They intend to discuss possible
joint-venture opportunities. They are still in the beginning stages and are trying to get to know each other and deter-
mine relative status, position, and power to negotiate. While Fred Brunell sits in the office, Ayub Rabah receives sev-
eral phone calls, including one from a friend in the government office for foreign investment to arrange an evening
together and another from an old school friend who is a banker. The banker is discussing some financial arrangement.
The phone conversations are personal and illustrate that Ayub Rabah is well connected and has clout. Fred Brunell is
impressed by the prospect of working with someone who can get things moving. In a culture in which connections are
important, Ayub Rabah has shown that he is somebody. He has sent important signals to Fred Brunell, but it is up to
Fred to interpret those signals in the context of doing business in Jordan.

Japanese offices also reflect cultural values. In Japan, the individual is expected
to fit into the group and respect group goals and norms. Harmony is an overriding
principle. As a result, private offices in Japan are rare and are reserved for upper
managers; even then, depending on the firm, managers may sit or work in the same
area with their employees. A typical office arrangement has file cabinets along the
outside walls of the office. The employees sit in groups at large tables in the cen-
ter of the room (see Exhibit 6.4). In many cases, regular tables are used rather than
desks with drawers, and everything is out in the open. The employees are facing
each other, with the leader of the group seated at the head of the table. Unless the
nature of the business requires a phone, individual employees typically do not have
phones at their workstations. Although Japanese businesses have undergone a
number of changes, the traditional office arrangement has remained the same.
 Nonverbal Language in Intercultural Communication 239

EXHIBIT 6.4 Japanese Office Layout

Windows
Shelves/File cabinets

Manager Manager
Shelves

The Japanese believe that this arrangement emphasizes the importance of the
group and the need to work together. When an employee needs to discuss some-
thing with a co-worker from the same table or from another table in the room, he
or she goes to one of the tables near the file cabinets to avoid disturbing the rest of
the group.
From the Western viewpoint, with its emphasis on individuality and privacy,
this arrangement seems oppressive. With everyone watching, one can’t even use
the phone without the rest of the group listening. And of course private phone con-
versations, such as calling the children when they get home from school and mak-
ing social arrangements with friends, are out of the question. Many Westerners
would resent this arrangement, seeing it as a lack of trust (also see Chapter 3).
Another typical arrangement in a Japanese office is to have everyone sit at in-
dividual tables or desks facing in the same direction. Sometimes the manager sits
in the front of the room, facing the employees, but in many cases the manager sits
in the back, behind the employees (see Exhibit 6.5). Again, businesspeople from
the United States or Canada would be uncomfortable with this arrangement and
would feel as though someone were looking over their shoulders the whole time
they were working. The Japanese, who are accustomed to the group watching and
to being expected to follow norms, have far fewer problems with this arrangement.
At work, the employee is first and foremost a member of the team rather than an
individual with individual rights to privacy and territory.
If a Japanese manager has a private office, it often has windows to the large com-
mon work area, where the manager can look out at the employees but the employees
also can look into the manager’s office.
The Japanese office layout sends a strong symbolic message: “We are in this to-
gether.” The welfare of the whole is more important than are the concerns of individ-
uals. Although behind the scenes there may be quite a bit of maneuvering for individual
recognition, on the surface harmony rules and everyone works for the common good.
240 Chapter 6

EXHIBIT 6.5 Japanese Office Layout

Manager

As a result, the furnishings in Japanese offices are not as important as they are
in U.S. offices. Even in big companies the office decor usually looks rather mod-
est by Western standards. Businesspeople from the United States, used to more
lavish furnishings, may misinterpret the signals and question the importance or
profitability of the Japanese business they are dealing with.
Furnishings also may signal political clout. A private business school in
Tashkent, Uzbekistan, has rundown facilities. The school, an offshoot of a public
university, is housed on two floors of the university. The two floors are in terrible
shape. Holes in the walls, lack of paint, dingy lighting, and a broken heating sys-
tem are all the result of years of neglect. Yet this business school is the most inno-
vative in the country. Politicians send their children there because they know they
will get a Western education. Employers in Uzbekistan and foreign firms like to
hire the graduates. The manager of the Eurasia Foundation in Uzbekistan offered
 Nonverbal Language in Intercultural Communication 241

to provide the money for an updating of the facility, but the director of the school
declined. She would have liked a better facility, but she figured it was not worth
the price. She was convinced that as soon as the two floors were renovated, the uni-
versity would all of a sudden find that it really needed that space. However, it
would happily provide space on other floors, which of course were in bad shape as
well. Because furnishings in Uzbekistan indicate power, the university probably
would claim the two floors for itself if they were to be refurbished. In this case,
furnishings and surroundings show power, but the power structure makes it dan-
gerous to show the power through better facilities.

Public Space
The way people arrange and use public spaces also reflects their cultural attitude
toward space and privacy. Businesspeople from the United States who go to Japan
or China often comment on how crowded the cities are and state there just is not
enough breathing space. That may be true by U.S. standards, but the Japanese and
Chinese may interpret the conditions differently. Two people from different cul-
tures may look at the same space yet come to different conclusions, as the follow-
ing example illustrates.

In Focus

Aki Hayashi, a Japanese visiting professor at a university in Illinois, was going to a convention in New Orleans, about
800 miles (1,200 kilometers) away. His American colleagues were all flying, but he was going to take the train. He
wanted to see something of the country. Brian Ober, one of his American friends, warned him that the train would be
very crowded and that he would not like it at all. Mr. Ober was very surprised when Professor Hayashi told him that his
compartment on the train had been very nice and spacious.

Numerous articles have illustrated the prime example of crowdedness in Japan:

rush hour on the subway in Tokyo. They usually show a picture of a person whose
job it is to push people into the train so that the doors can close. This phenomenon
has been exaggerated greatly in the American press, however. In 2003, it seems
there were still some pushers at Shinjuku station, but only during rush hour.14
When looking at these pictures one wonders how the throngs of people fit the
cultural emphasis on personal distance and private space. How do the Japanese
cope with that? Many Japanese do not like the crowded conditions, and increas-
ingly people are moving from Tokyo back to their hometowns to have more space.
Most Japanese people have found a way to cope with the overcrowded public
space of the subway system. In this environment, filled with people pushing and
shoving one another, the Japanese riders become islands. Each is alone as long as
he does not acknowledge any of the other people; the others do not really exist in
his space. As was pointed out earlier, space becomes a psychological phenome-
non. The use of cell phones in Japan is interesting in this context. In public places,
242 Chapter 6

the Japanese do not use cell phones because that would mean forcing oneself on
other people. On the subway and trains, people text but they do not talk. The Chi-
nese, on the other hand, talk on the cell phone in public and even make and take
calls in the middle of meetings.
People from the United States carry their idea of individuality over into pub-
lic spaces. Cell phones are everywhere, and they are used. Anyone who has taken
public transportation or waited at an airport can attest that American cell phone
users discuss their most private concerns in public without thought for the people
around them.
Public places become an extension of private domains. For example, Americans
consider it their right to walk and play on the grass in the park. After all, it is their
park; their taxes paid for it. Government buildings in the United States are open to
the public. Anyone can go into the Capitol in Washington or the various state capi-
tols. In no other country is the residence of the president open to the public. Access
has become tighter since the September 11, 2001, terrorist attacks, but Americans
still see it as their right to have access to public buildings. A manager from
Poland recently had the opportunity to visit President Abraham Lincoln’s
mid–19th-century house and the new Lincoln museum in Springfield, Illinois. He
was quite impressed and appreciated the building’s historical significance. How-
ever, it was the visit to the United States Capitol in Washington that really excited
him. The fact he could go to the galleries of the Senate and House of Representa-
tives, and that he could observe the Senate in action was absolutely amazing to
him. In the United States, the right to access is considered important. In contrast,
Schloss Bellevue in Berlin, 10 Downing Street in London, and the Elysee Palace
in Paris are all closed to the public. Ordinary citizens are not allowed entry into the
new Shanghai city hall. It is where the mayor and vice mayors, as well as all the key
officials for the city, work. Ordinary people have no business there and are turned
away by security officers.
The Germans organize their public spaces in the same way they organize their
private lives. Alles muss seine Ordnung haben (Everything must have its order).
Order is an overriding concern, and detailed provisions are made to guarantee that
order. Germans tend to not have problems with this control because they grew up
with an emphasis on order. As a result, parks tend to be clean and neat; the grass
is not trampled down. This order is achieved through the use of numerous signs;
Betreten des Rasens verboten (It is forbidden to step on the grass) is typical and is
enforced strictly. For most Germans, there is nothing wrong with the content or
tone of the rules, most of which are issued as clear orders in a negative tone. The
emphasis is on clarity rather than friendliness. However, during the last decade the
universal acceptance of the tight regulation of public spaces has been breaking
down. One of the side effects has been more litter in parks and plazas. This change
in behavior indicates that the nonverbal language of space can change over time.
The study of nonverbal communication therefore must be an ongoing activity.
Germans tend to be very aggressive in crowds. The British queue (line up) at
the bus stop, in stores, and at theaters. Theatergoers in London, for example,
follow strict unwritten rules on queuing to get tickets; it is expected that everyone
 Nonverbal Language in Intercultural Communication 243

will follow the unwritten honor system. Germans, in contrast, form throngs and
push and shove without any order at all, and they are surprised at the voluntary or-
der of the British. One evening during rush hour, two friends—a German and an
Englishman—wanted to take the Tube (subway) in London. As they approached
the station, they encountered a long line of people waiting to buy tickets. As the
Englishman turned toward the end of the line, the German said, “Waiting in line is
going to take forever; let’s just get to the front.” The Englishman was horrified and
explained that such a move was absolutely unthinkable and could not be done. The
German, in turn, was amazed at how fast the orderly line moved; waiting in line
did not take so long after all.
The Japanese tend to be even more disciplined than the British. The Japanese wait
in marked spaces on the train platform in rows of three. People who want to wait for
their next train because they figure that the current one is too crowded will wait in
the same formation in a line right next to the people who want to take the immedi-
ate train. Everyone understands the two-line system. Once that train has departed,
they will move over into the space in which passengers wait for the immediate train.
Generally, people from Northern Europe prefer a larger physical space and
therefore stand farther apart in waiting lines. People from Latin countries, in con-
trast, prefer tighter physical space and stand closer. Seeing spaces in lines at
EuroDisney, Latin visitors frequently try to fill in the spaces left by people from
Northern Europe. This annoys the Northern Europeans.15
In public spaces, Germans also emphasize their rights. Individuals are expected
to protect and insist on their rights. Children must be prepared for a rough and cruel
world; therefore, they must practice insisting on their rights from an early age.

In Focus

A German woman who had lived in the United States for many years was visiting her hometown and took her two young
children to a Schulfest, a school carnival. When her children wanted to ride the merry-go-round, they waited on the side
till the merry-go-round came to a stop. Even though they had been in front of the other children, they were swept aside
and did not get on. The same scene repeated itself several times. German parents were saving places for other children
or were pushing their own children on. Finally, the visitor used her elbows, too, and got her children on the ride.
In the United States, this scenario would have been entirely different. First of all, all the children would have waited in
an orderly line. Everyone would have taken one turn and would have been expected to get off after one ride. If a child
wanted another ride, he would have had to go to the end of the line again. Everyone would have understood that the pro-
cedure had to be fair to everyone and not be based on bullying.

As conditions in big cities become more crowded, traditional etiquette and rules
of acceptable verbal and nonverbal communication behavior may face major chal-
lenges. The pushing and shoving on Japanese subways, as was pointed out earlier,
does not fit the traditional value of personal distance and harmony. Japan is not the
244 Chapter 6

only country that must deal with a breakdown of traditional behaviors. In Mexico
City, for example, the subways are overcrowded with commuters on weekdays dur-
ing rush hour and with families on weekends. Traditionally, unrelated Mexican
men and women do not mix in public. In particular, unmarried women are pro-
tected by their families to preserve their virtue. In this traditional environment,
men are seen as protectors of women, and women are expected to behave modestly
and shy away from public places.
In modern Mexico, many women (young and old, married and single) have
jobs. They must get to and from work on their own without any chaperon or male
protector. In the past, young women moving about on their own were suspected
of dishonorable behavior. Men knew that such women did not require the same
courteous treatment they extended to their own sisters. Today, the lines are
blurred, and many men do not know how to behave. In this case, the changing
social environment has had a profound influence on nonverbal communication.
During rush hour, many female riders were being molested by men in over-
crowded subway cars. The solution was to separate women and men on the
subway during rush hour. Now men are not allowed into cars reserved for
women, and women who go into the men’s cars do so at their own risk. The
crowded conditions encouraged nonverbal behavior that was not acceptable in
normal circumstances. As the environment of a culture changes, society must
reevaluate its standards of nonverbal communication and develop safeguards to
protect those standards.
Behavior in public spaces is carried over into offices and business practices.
One cannot separate general cultural behavior from business behavior. The two go
together. The way we approach people and the way we deal with space and issues
of privacy have deep cultural roots. We may not agree with or like what others do.
That is not the issue; the point is that we must understand what the others are do-
ing and why they are doing it.

Appearance
The way we dress also communicates. Dressing according to custom and expecta-
tions shows respect for form and establishes a foundation for future dealings. Sub-
tle aspects of dress can let people know where one is from.

In Focus

Two professors from the United States were sitting in the office for foreign trade in Poland, waiting for an appointment.
A businessman entered and sat down, obviously also waiting for an appointment. Without having spoken to the new-
comer or having heard him speak, the two professors looked at each other and agreed: another American. How did
they know? The button-down collar, the style of the suit, and the wing-tip shoes were clear signals. They were right;
he was American.
 Nonverbal Language in Intercultural Communication 245

When one is examining appearance in intercultural communication, one must

ask a number of questions, such as:
• What is appropriate business dress for men and women in a particular culture?
• What is the difference in attire when doing business in one’s own culture and
doing business with another culture?
• What degree of importance is attached to one’s attire?
• What are the penalties for inappropriate attire?
In some ways, business dress for men is universal around the world, yet there
are differences. The suit, the dress shirt, and the tie are generally acceptable, but
the styles may vary widely. Europeans tend to wear suits that are more tailored and
youthful looking than those worn by businessmen in the United States. The severe
business suit, sometimes described as the IBM look, is rare in Europe today. The
Japanese, in contrast, remain conservative. They tend to wear either gray or dark
blue suits with white shirts. Japanese young people tend to wear T-shirts and jeans.
They may have long hair in a variety of colors. On the outside, they look very sim-
ilar to young people in North America or Europe. Yet, when interviewing season
starts, these very same people become conservative overnight. They dye their hair
black, get traditional haircuts and wear the traditional interview uniform. Arabs
may wear Western suits, but when doing business in Arab countries, they usually
wear traditional dress, the white flowing robe called a thawb, or in some places a
dishdasha, over pants and shirt, along with a headdress.
In Southeast Asia, the European business suit, with its origin in cool and cloudy
England, is giving way to a new uniform: slacks and a short-sleeve shirt worn out-
side the pants with a collar and an attached belt. However, when a businessman
from that part of the world travels to the United States or Japan for business, he
will wear a conservative business suit.
For women, dress is more complicated. Businesswomen from the United
States tend to wear suits. Even though the suits have softer lines and are less
masculine, and even though dresses have become more acceptable, business dress
for American women in managerial positions is still more severe than it is in
Western Europe.
A German student, after finishing her MBA in the United States and looking
for a job in her native country, discovered very quickly that her American business
suit was totally inappropriate for interviews. It was too severe and too conserva-
tive. No young businesswomen were wearing that kind of suit. A short skirt with
a stylish blouse was the norm.
French female students who return to France from the United States make the
same comment. They too find that French businesswomen dress more femininely
than their American counterparts. These returning students feel uncomfortable in
the typical American business dress; however, they also point out that although
women in French or German businesses tend to dress more fashionably, very
few are in managerial positions. That, of course, is another question, a matter of
tactics, perhaps. If women want to succeed in business, they have to dress and look
the part.
246 Chapter 6

In Japan, women often work as office ladies who serve tea and greet customers.
They do not have to worry about what to wear; the company provides them with a
uniform, usually a conservative suit with a blouse, white gloves, and a hat (also see
Chapter 1). However, as more women enter management training programs at
Japanese firms, they may change their appearance to indicate the different status.
In Muslim countries, some businesswomen wear the hijāb, which means cover
in Arabic, when they are in public. The Qur’an says both men and women should
wear modest dress in the company of strangers of the other sex, although it does
not use the term hijāb. Wearing the hijāb signifies Muslim devoutness today, and
contrary to Western suppositions, women who wear it do so most often because
they prefer it. In many places, women wear khimār, a headscarf, which is men-
tioned in the Qur’an. A black rectangle of cloth that covers the clothes and falls
from the shoulders to the ankles, covering everything but face and hands, is called
abaya in the Arabian Peninsula and Gulf states, chador in Iran, and burqa in
Afghanistan, where it is often blue as well as black. When women are in a private
place, or with other women they know, they do not cover.
In most cultures, dress also identifies a person as belonging to a specific group
and having a certain status. Dress can offend, but it also can protect. With the grow-
ing number of assaults on foreigners in Germany, the Japanese issued a dress code
for after-business hours for all Japanese employees in that country. Immediately,
all Japanese had to wear dark conservative suits with white shirts, ties, and dress
shoes at all times to establish them as businesspeople and distinguish them from
other Asians who might be in the country illegally and involved in illegal dealings.
The business dress, it was assumed, would identify a person as doing business in
Germany rather than wanting to immigrate illegally.
With the growing emphasis on comfort and leisure-time activities, attitudes
toward appearance and dress are changing in many cultures. In many cases,
young people around the world have more in common with young people from
other cultures than with the older generation of their own culture when it comes
to dress. Jeans, tennis shoes, and sweatshirts are taking the place of formal busi-
ness attire.
A few years ago, Germans were very conservative in their dress both in busi-
ness and in their private lives. It was expected that one would dress up for the of-
fice and on Sundays. Every German man, from age 14 on, owned a black suit to
be worn at weddings, funerals, and other important occasions. During final exam-
inations in the Gymnasium (high school) and the university, both men and women
were expected to wear black suits to acknowledge the importance of the occasion.
Much of that has changed. The young people are very informal, and many go to
interviews in casual dress. Although older Germans may bemoan casual dress as
a sign of lack of respect and the general decline and downfall of behavioral norms,
young people are enjoying the more relaxed attire.
If a person from a more casual culture with an emphasis on comfort does busi-
ness with someone older from a conservative and formal culture, dress can become
a serious issue. After all, dress signifies seriousness, credibility, and importance.
In and of itself it may not be important, but it sends a powerful message.
 Nonverbal Language in Intercultural Communication 247

In Focus

A group of professors from the United States attending a four-week seminar in Taipei were moaning about the heat
and the lack of air-conditioning. The seminar leader, a Chinese woman professor, at first did not say anything; she sim-
ply assumed that everyone agreed on what appropriate dress was for the seminar lectures and company visits. When
some of the professors started showing up in shorts and T-shirts, she asked them to dress up, meaning suit, shirt, and
tie. The Americans immediately tried to negotiate down the expected level of formality. As a Chinese woman, she felt
very uncomfortable telling the mostly male group what to do, but finally she had to be direct. The group was to visit
Chiang Kai-shek’s tomb, and there could be no compromise. She ordered suit, dress shirt, and tie, and the Americans
finally gave in.

Silence
Many people connect communicating with doing something verbally, nonverbally,
or both. Communication means action such as encoding a message, decoding a
message, sending a message, and sending feedback. At first glance, silence does
not indicate action, yet communication through silence plays an important role in
all cultures. The importance of silence as a communication tool, and the interpre-
tation of silence varies from culture to culture, but all cultures use silence at times
to get a point across.
Differences in the use of silence can be best examined by looking at high-context
and low-context cultures.

Silence in Low-Context Cultures

In low-context cultures in which ideas are encoded explicitly into words, silence
often is interpreted as the absence of communication. It is downtime. Silence
means that the act of actively worded communication has stopped.
Yet even in low-context cultures, silence is not necessarily without meaning.
When someone is silent after being asked a question, the silence is an answer. The
English phrase “The silence was deafening” describes this interpretation. When
someone falls silent in conversation, another person may ask, “What’s wrong?”
The silence communicates a message. It may indicate that the receiver of the mes-
sage did not hear the message, is angry at the message, needs time to think, or is
embarrassed. Usually, low-context cultures view silence as communication gone
wrong. To them it indicates that a rupture has occurred in the communication
process.
Phrases such as Reden ist Silber; Schweigen ist Gold (speaking is silver; being
silent is gold) seem to contradict the view of silence as being negative; however,
when given a choice, people in low-context cultures tend to choose speaking over
being silent. Silence is ambiguous; it must be interpreted, and the interpretation of
silence is more difficult than the interpretation of words. Silence does not fit with
a low-context culture’s emphasis on precision and clarity.
248 Chapter 6

For this reason, people in low-context cultures generally are uncomfortable

with silence. They often feel responsible for starting a conversation or keeping it
going, even with strangers. Passengers on a train that makes an unscheduled stop
in the countryside, for example, may start a conversation because they feel un-
comfortable just sitting there.
Silence in High-Context Cultures
High-context cultures have a different attitude toward the use of silence. Perhaps
the most obvious example is Japan, although other Asian countries share the
Japanese attitude about silence. The Japanese believe that silence is preferable to
conversation. It is through silence that one can discover the truth inside oneself.
Contemplation and meditation take place in silence. Buddha taught that words
make truth untrue, and there is a view in Japanese society that words contaminate
understanding. Reading another person’s inner core, a kind of communication
without words, can take place only in silence. Speech distracts people from true
understanding. This attitude toward, and the use of, silence can become a serious
stumbling block in the progress of negotiations between businesspeople from
Japan and the United States. Most of the discussion in Japanese negotiations is in
groups, and much is said through silence, facial expressions, and body gestures
among the Japanese team.
Silence to the Japanese is not empty. Whereas Westerners typically view si-
lence as gaps in conversation, the Japanese believe that silence is part of con-
versation. In a crowded country, silence evokes space; a person can be in his
or her own realm through silence even when surrounded by others. Japanese
speakers are comfortable with silence in communication and do not hurry to
fill it up with speech. In fact, they may use silence as a very powerful com-
munication tool.

Summary This chapter examined the major aspects of nonverbal signals in intercultural
communication. Much of what people say in all cultures is said without words or
in addition to words. In many cases, the nonverbal symbols support the spoken
word, but they also can contradict what is being said.
Paralanguage lies between verbal and nonverbal communication, as in the
following:
• Vocal qualifiers. The term refers to volume, pitch, and intonation. Different cul-
tures use different vocal qualifiers.
• Nonverbal business conventions in face-to-face encounters.
• Eye contact. Conventions relating to eye contact are related to position in the
hierarchy. Eye contact has implications for perceptions of honesty and the
importance of privacy.
• Facial expressions. Facial expressions have different meanings in different
cultures. A smile can express friendliness or embarrassment. A frown can be an
indication of anger or doubt.
 Nonverbal Language in Intercultural Communication 249

• Gestures. Head movements, arm movements, and posture communicate a mes-

sage to the other side.
• Timing in spoken exchanges. Timing behavior reflects the importance of equal-
ity, hierarchy, and gender relationships.
• Touching. Cultures have different conventions for touching in social and busi-
ness situations. Touching typically is related to status, gender, and seniority.
• The language of space. We communicate through our use of private, office, and
public space.
• Appearance. Dress sends signals relating to respect.
• Silence. High-context and low-context cultures differ in their interpretation of
silence. In high-context cultures, silence frequently is seen as an absence of
communication, whereas in high-context cultures silence is an important com-
munication channel.
The interpretation of the nonverbal language is complicated by the fact that
different groups within a culture often use different nonverbal signals. To be suc-
cessful in interpreting the nonverbal language of a culture, you need to go beyond
memorizing the dos and don’ts of touching, using space, making eye contact, and
using facial expressions and gestures. To be successful in reading the nonverbal
symbols, you must understand the cultural values that give rise to a specific
nonverbal language.

Notes 1. Edward T. Hall, “The Silent Language in Overseas Business,” Harvard

Business Review 38, no. 3 (1960), pp. 87–95.
2. Deborah Tannen, Communicating from 9 to 5 (New York: William Morrow
and Company, 1994).
3. Kate Fox, Watching the English: The Hidden Rules of English Behavior
(London: Hodder & Stroughton, 2004).
4. David Victor, International Business Communication (New York: Harper-
Collins, 1992).
5. Ibid.
6. Ibid.
7. Ruth Benedikt, The Chrysanthemum and the Sword (Cleveland: Meridian
Books, 1967).
8. Yong-Jin Song, Claudia L. Hale, and Nagesh Rao, “The South Korean Chief
Negotiator: Balancing Traditional Values and Contemporary Business Prac-
tices,” International Journal of Cross Cultural Management 5, no. 3 (2005),
pp. 313–328.
9. In-ah Ha, unpublished paper presented at the IAIR inaugural conference, Kent
State University, April 1999.
250 Chapter 6

10. For a more detailed discussion see: Margaret K. Omar Nydell, Understanding
Arabs, 3rd ed. (Yarmouth, ME: Intercultural Press, 2002); K. Versteegh, Land-
marks in Linguistic Thought III.
11. Nydell, 2002.
12. Deborah Tannen, You Just Don’t Understand (New York: Ballantine Books,
1992).
13. Andreas Unger, “Auf Tuchfuehlung Gehen,” Die Zeit, no. 48 (November 24,
2005), p. 86.
14. http://home.comcast.net/˜subwaymark/trips/Japan/Trip2003-5.htm.
15. Susan C. Schneider and Jean-Louis Barsoux, Managing Across Cultures
(Harlow, UK: Pearson Education Limited, 1997).
C H A P T E R S E V E N

Cultural Rules
for Establishing
Relationships
The U.S. company Homecrafts was in the process of buying the Swiss firm Alpine Treasures.
The talks had been going on for some time, and David Goldstein was getting frustrated.
Several months ago it had looked as if the deal could be signed within days, but then things
just slowed down.
When they first met, the owner of Alpine Treasures, Louis Semar, seemed surprised that
someone as young as David would be in charge of negotiating a transaction of such mag-
nitude. Mr. Semar was used to working with people about his age who had proved them-
selves for a number of years. David thought that Louis was a bit stuffy and old-fashioned.
The use of last names and the formality of the interaction made him feel uneasy. But in
spite of the differences, they informally agreed to conclude the deal. David e-mailed head-
quarters to announce that the deal would go through shortly. He was excited and figured
that the conclusion of this purchase would be a step toward his next promotion.
When they met to work out the details, David assumed they knew each other well enough
to do away with last names. But when he opened the discussion with “Well, Louis, what do
you think?” he could not understand why Mr. Semar addressed him as Mr. Goldstein. What
was his problem? He had invited Mr. Semar to eat with him on numerous occasions and had
inquired about his family and hobbies, but Mr. Semar remained distant. He answered all the
questions politely but never gave more personal information than necessary. David consid-
ered himself a friendly guy who took pride in his ability to make people feel at ease, but in this
case nothing seemed to work.
At the same time, Mr. Semar got rather frustrated with this pushy American kid. Why
was he always inquiring into his private life? And the young man kept up the pressure to
sell, to persuade him to take the money and retire. David Goldstein was young enough to
be his son, and here he was acting as if he were a close friend.
After another round of discussions, when David thought things surely would work
out, Louis Semar withdrew even more. He had built this company. The offer was good

251
252 Chapter 7

financially; he stood to make a lot of money. But that was only part of it. His heart was
in that firm, and to sell out, and to Americans at that, did not seem right. In addition, he
was disturbed by talk of reorganization and changes in employment practices. The firm
employed about 100 people, mostly from the little town where the company was
located. He knew those people; he had gone to school with them. He relied on them,
and they trusted him. What would happen once the Americans took over?
David could not understand these concerns. Mr. Semar would be very well off; he could re-
tire in comfort and do whatever he wanted to do. In his opinion, this indecision on Mr. Semar’s
part was simply ridiculous. After all, this was a business, not a family affair. And from a busi-
ness viewpoint this was the right thing to do.
David was willing to offer more money. He carefully laid out his approach; he prepared
charts detailing the financial benefits. He pulled all the arguments together showing why
this was an excellent business deal that would benefit both sides.
Mr. Semar listened politely. He did not disagree with anything David said, but he asked for
more time to consider the offer. Several weeks went by, and David did not hear from Louis again.
As he began to realize that Louis Semar would never sell, he started to think what he might have
done differently to make it easier for the Swiss owner to sell his stake in the company.

In previous chapters, we examined how various cultures communicate verbally

and nonverbally, and how they organize their messages. In this chapter, we will
examine how people establish relationships. As the opening scenario illustrates,
people from different cultures have different ideas about what is important and
who is important. They have different ideas about who has the authority to make
decisions. As a result, the rules for establishing relationships and working together
differ as well.

Respect for Authority and the Structuring of Messages

Different cultures use different symbols to show respect toward authority. As was
pointed out before, those signs are neither correct nor incorrect; they are different.
They are learned, and they may change over time.

Signals of Respect
Nonverbal signals of respect can be obvious or subtle. For example, as was dis-
cussed earlier, consider the Japanese bow. The depth of the bow clearly indicates
who ranks higher. The subordinate must bow lower, and if the wrong person
bows lower, the ritual will be repeated until everything is done right. It can be an
amusing scene with both sides continuing to bow when one party is a Westerner
who does not understand the rules of the game.
In some cultures, people of lower status kneel in front of superiors and author-
ity figures, or even prostrate themselves in front of rulers. People from the United
States with their notions of equality may have trouble with those types of rituals.
A man from the United States who worked in the Peace Corps in Nigeria married
a Nigerian woman. As part of the ritual for seeking to marry the woman, he was
expected to prostrate himself in front of the woman’s grandfather, who was the
 Cultural Rules for Establishing Relationships 253

village chief. Although in cities and urban centers those traditional signs of respect
for authority may have vanished, it helps to be aware of expected behaviors toward
authority in both social and business relationships.
In most Western cultures, younger people hold doors open for older people, sub-
ordinates open doors for superiors, and men open doors for women. Letting a per-
son go through the door first indicates respect. Similarly, younger people stand up
when an older person enters a room. In the United States, the tradition of holding
doors open and standing up to show respect is changing. The cultural rules are not
quite as clear anymore. For example, Jim, who has just entered the management
training program, has received mixed signals when he opens doors. Brian, his im-
mediate boss, frowns when Jim opens doors for him. Brian is energetic and athletic.
He does not want to be seen as older or incapable. Mark, who is Brian’s superior,
appreciates the gesture of recognition. And then there is Gloria, a co-worker, who
told him directly that she can open her own doors. As traditions change, it may be
more difficult to gauge what is acceptable and appropriate behavior.
Guests are treated with respect in all cultures. In Europe and North
America, the honored guest typically sits on the right side of the host. Middle
Eastern traditions of hospitality dictate that a host will serve the guest and
keep him safe. In Japan, the honored guest is the first one to take a bath, be-
fore anyone else in the household. In turn, the guest usually shows respect for
the host by bringing presents for the host (also see the section titled “Gift
Giving” later in this chapter).
Signals of respect can be different from culture to culture, and it may take some
time to learn what is expected behavior.
If a person expects certain signs of respect, he or she may be upset if those expec-
tations are not met. At best, the situation may be awkward; at worst, it may lead to
tension or even open hostility. The following examples, involving Queen Elizabeth of
Great Britain, did not result in an international crisis, but they illustrate the point.

In Focus

When Queen Elizabeth II visited the United States, people who were to meet her were given detailed and careful in-
structions on how to behave on the occasion. Protocol prescribes how to address royalty, and how to walk and talk in
the presence of royalty. This carefully choreographed ritual was rudely shattered when a woman in Washington, DC
pushed protocol aside and hugged the queen. The queen was gracious, but it was an obvious breach of etiquette that
only “barbarian” foreigners would commit. The American woman was not being disrespectful, but clearly her way of
showing respect and welcome was different from the ancient tradition of keeping physical distance from superiors.
When Queen Elizabeth visited Sydney, Australia, in 1991 as the honored guest for that country’s 150-year celebration,
the prime minister, Paul Keating, put his hand under her elbow when ushering her into a room. The gesture was seen
around the world on television. Mr. Keating had publicly stated previously that he believed Australia should be a repub-
lic and no longer accept the queen as head of state. Throughout Great Britain, Australia, and New Zealand the gesture
was discussed widely in the context of Keating’s viewpoint. The British tabloids saw it as unforgivable rudeness, but
many Australians saw it as the behavior of a strong, independent leader. The controversy continued long after the event.
254 Chapter 7

In both examples, the people who “violated” the expected ritual of showing re-
spect came from egalitarian societies that believe in individual achievement rather
than the inherited power of a monarchy, and both in their way expressed the notion
that they considered themselves equal as human beings.

In Focus

In another example, Suzuki of Japan and General Motors built a joint-venture plant in Ontario, Canada, to manufacture
a car called the Cami. During the construction of Japanese-style apartments for some Japanese engineers, the
Japanese project manager went to the surrounding farms to apologize in advance for any inconvenience the neigh-
bors might experience from the construction noise and heavy equipment. He knocked at the door of a farmhouse
across the road, carrying a large box, beautifully wrapped, that contained a cake. He introduced himself with a bow
and explained to the farmer’s wife what his visit was about. Then he presented the package. This was all within his
cultural tradition. The farmer’s wife was Hungarian. She responded from her cultural tradition—she threw her arms
around the surprised Japanese man and hugged him.

Positions of Authority
In all cultures, certain positions and professions enjoy a high level of authority. In
many societies, medical doctors have prestige because they can help the sick.
In some cultures, poets and scholars demand respect. In Asian societies, teachers
carry authority. They are considered wise, and their teachings are not questioned.
A Korean student would not think of questioning his professor. The professor is
older and more experienced and therefore must know. These attitudes are also true
for China, Japan, and most of Southeast Asia. Teachers are persons who command
respect, as is illustrated in the following example.

In Focus

A professor from the United States had attended a four-week seminar on Chinese business culture in Taiwan some years
ago. At the airport, things got hectic, and she was worried about missing her plane. The line for the security check was long
and moved very slowly. On her jacket she carried a Chinese badge identifying her as a professor and a member of a special
group. When she asked whether the X-rays were safe for film in her carry-on luggage and voiced concern about missing
her plane, the official looked at her, saw the badge, and passed her carry-on luggage around the checking system. He said
to her as she passed, “Good-bye, Teacher.” She did not receive such treatment upon arrival in San Francisco!

When doing business with people from other cultures you need to find out what
kinds of people and what professions are accorded special respect. Those people’s
views may carry more weight, and their opinions may be asked before decisions are
 Cultural Rules for Establishing Relationships 255

made. A senior manager in Japan, for example, is not considered just a manager by
a new recruit. The new recruit looks up to the senior manager as his sensei (teacher).
You may get a glimpse of what commands respect in a culture by looking at who
the heroes in the culture are. In American culture, for example, the popular heroes
are sports figures and Hollywood stars. Until the business scandals surrounding
Enron, AIG, and Bernard Madoff became headlines in the first decade of 2000,
businesspeople were heroes as well. For example, Lee Iacocca was seen as a hero
who could save companies and bring prosperity. Warren Buffet, Bill Gates, and
Steve Jobs are still revered businesspeople known for their drive and success.
Hindu culture has very different heroes. Gandhi is a hero because he focused
on the liberty of India and the spiritual health of the individual. Germans look to
philosophers and poets as their heroes, and Germany therefore is frequently called
the country of “Dichter und Denker” (thinkers and poets). Frequently Arab culture
looks to religious leaders as heroes. In traditional Korean culture, the Confucian
scholar was the guiding figure. By learning who the heroes are, you may find out
what a culture values and where its priorities are.
In many cultures, authority figures are not to be interrupted when speaking, and
their opinions carry a lot of weight. For example, in China the senior member of the
family is the absolute authority, and children would not even think of questioning
that person’s authority or presenting their own viewpoints. The conditioning starts
very early. Businesspeople must be aware of the implications of this cultural value
for business decisions. A Thai job applicant who seems quiet is not necessarily
wrong for the job. He may simply be reflecting his culture’s acceptable behavior
toward someone who is in charge. Asking many questions or speaking a lot during
an interview may be interpreted as arrogance and egotism and disqualify a candi-
date with a Thai firm in Thailand. An interviewer from Canada, in contrast, may
interpret the behavior as lack of drive and ambition. Unless the job applicant is
familiar with employment communication in Canada, he is at a disadvantage. At the
same time, unless the interviewer is familiar with the behavioral patterns of the
applicant’s cultural background, the interviewer may miss a good employee.
In contrast to Asians, businesspeople in the United States are expected to be as-
sertive. Although authority figures in the United States carry more clout and typically
set the tone and speed of an interchange, employees can interrupt and give their opin-
ions and comments. Children are raised to be assertive and to discuss options freely.
Likewise, employees are encouraged to speak their minds. In the interview process
for a job in the United States, for example, individuals are conscious of their accom-
plishments and will emphasize their possible contributions to the firm. In fact, job ap-
plicants are expected to pitch themselves to the employer and highlight their potential
contributions to the success of the firm. The behavioral interview underlines this char-
acteristic even more. In this type of interview, the interviewee is given a situation and
asked how she or he would solve a specific problem. In fact, she is asked not what she
might do in the abstract, but how she would proceed in this specific situation.
A business professor from New Zealand commented that American business com-
munication texts about job searches are not usable in New Zealand. The letters come
across as too assertive and egotistic. New Zealanders—and Canadians—prefer a less
256 Chapter 7

pushy approach. A job applicant states his or her accomplishments and skills and lets
them speak for themselves. “To sell yourself ” is traditionally inappropriate in these
cultures. In the future, it will be interesting to see how the growing globalization of
business will affect traditional cultural communication patterns. For example, busi-
ness students from Indonesia point out that they tend to use an American approach
when they apply for jobs with an American multinational and a more traditional In-
donesian approach when applying for a job with an Indonesian firm.
On the surface, German résumés today are very similar to U.S. résumés, but
there are some significant differences. The German applicant always provides
more contextual information. Germans tend to indicate where and when they
received a high school degree. Date of birth, family status, and information on
health tend to be included when Germans apply to German companies.
When Japanese people look for jobs with Japanese companies, information on
family, health, high school, and even elementary school is included. Typically,
Japanese students do not even prepare a Western-style résumé. Rather than having
one résumé that they will send out to many companies, they will fill in company-
specific sheets, also called the information sheet. It is not so much the students
who present their accomplishments, but rather the companies that through their
particular forms let the students know what information they want and in which
order they want that information. When Japanese graduates apply for jobs with
American firms, applicants tend to adapt the résumé to American practices.
These developments also illustrate the fact that international businesspeople
need to distinguish traditional cultural behavior from “international” business
behavior, which is influenced by traditional culture but also by international
business culture. In short, an international businessperson needs a deeper under-
standing of underlying reasons for the information presented on a résumé.

Dress as a Symbol of Authority

As we have said elsewhere, the standard business dress around the world is the suit,
shirt, and tie for men, and some sort of suit or dress for women. That sounds easy,
yet there are enough variations indicating authority that businesspeople must be
aware of local customs and traditions.

In Focus

Tom Sides is flying to Tokyo for a business meeting. He will meet a potential joint-venture partner for the first time. The
flight from Chicago is about 13 hours long, and exhausting. Tom has packed several suits, shirts, and ties in his luggage.
But for such a long flight he wants to be comfortable, and so he wears jeans and a sweatshirt and tennis shoes. He knows
that someone from the Japanese firm will meet him at Narita airport, but surely that person will understand the need to
relax on a long flight. Kyuofumi Katsuki, who meets him, does not comment on Tom’s dress, but Tom is beginning to won-
der whether he has done the right thing when he sees Katsuki wearing formal business attire even though it is the week-
end. Tom is getting a sense that his casual dress may have eroded his authority and credibility as a business partner.
 Cultural Rules for Establishing Relationships 257

When traveling, businesspeople from the United States tend to emphasize com-
fort and practical clothes. Their Japanese partners may, however, wonder how to
read someone who is so set on personal comfort that business etiquette is put sec-
ond. The formality of dress is also crucial in South East Asia and Latin America.
Not to dress appropriately, which is to say conservatively, is easily interpreted as
lack of interest in, and disrespect for, the person with whom you are meeting and
your own authority (also see Chapter 4 on business form).
You show respect and sincerity by the way you dress and by respecting certain
rules of appearance of the host culture. That does not mean you have to adopt the
local dress, but it does mean you should adapt your clothes to the customs of the
host culture. This can present a particular issue for women in positions of author-
ity because rules for appropriate dress for women can vary widely across cultures.
In Arab countries, even the less fundamentalist ones, women are expected to dress
modestly. Miniskirts, sleeveless blouses, sleeveless dresses, tight skirts, and tight
dresses are not considered appropriate. A woman who wants to do business in the
Middle East must be aware of the basic rules and make sure she does not under-
mine her credibility and authority, not to mention insult her business partner.
Offensive dress easily can lead to embarrassment and loss of status; therefore, she
may want to cover her head with a scarf or hat.

In Focus

A university official in Malaysia invited a visiting professor from Sweden and her teenage daughter to a formal lunch.
The arrangement was for the daughter to meet the host, the host’s wife, and her mother at the restaurant. The daugh-
ter arrived wearing a modest but sleeveless dress. The host was extremely gracious, ushered his guests to seats, sat
with the group until everyone had ordered, arranged for the payment, and then departed and sat elsewhere. Even
though his wife was there, he could not eat lunch in the company of an undressed woman. Eating with the guests in
these circumstances not only would have embarrassed him but also would have undermined his professional stand-
ing and authority.

In a sense, it is easier for women to choose appropriate dress in stricter coun-

tries than in more liberal countries such as Italy because the dress rules in
stricter countries like Iran are spelled out clearly. Arms, legs, and hair should
be covered in public. There is no room for variations. The rules in other coun-
tries may be much vaguer and less official. In Taiwan, for example, women may
wear slacks but should stay away from sleeveless blouses. There is no law, but
it simply is not done by people in positions of authority. Two women professors
from the United States who attended a seminar there felt very uncomfortable
wearing their sundresses and decided on their own that this was not appropri-
ate attire for sight-seeing and definitely unacceptable for visiting businesses
and government offices.
258 Chapter 7

In Focus

In order to be properly dressed for a job interview in Japan, Japanese female job-seekers nearing the end of their uni-
versity education must wear a black, dark charcoal, or very dark navy suit (jacket with skirt at the knee), with a white
blouse. Today pant suits are also acceptable. Students interview in March–June in their penultimate year of study, to
land jobs that will begin in April of the following year. They go to department stores, to the “recruit suit” department,
to get advice about (and purchase) the suit that is right for their prospective employer. The suits are all very much alike,
with variations in small details such as buttons (made of metal or that match the fabric color), buttonhole type, pres-
ence or absence of pockets, collar style, cut of the blouse collar, and depth of the blouse sleeve cuff. Companies
aggressively distribute brochures on campuses; one example is the “Perfect Prejudice” brand of recruit suit. Students
also seek advice about the right shoes and handbag to accessorize the recruit suit. They wear stockings of skin color,
and no jewelry apart from small earrings. Finally, although university students often experiment with different hair col-
ors and degrees of curl, for their interviews females’ hair must be black, below the ear in length, and straight. For male
students, the code is similar: black suits, white shirts, black shoes, and black hair worn straight and short.
The emphasis on dress is not new. In feudal Japan, all levels of society from the royal court, the Shogun’s court,
the merchant class, and down through the commoners had prescribed dress codes. Everyone changed from winter
clothes to summer clothes, and vice versa, on the same day, which was announced by the Emperor. Wearing the wrong
clothes was a serious offense and could be punished.
By wearing the proper recruit suit for the interview, a job candidate shows her preparedness for shigoto no shikata,
“the way of working.” This “way of working” involves a number of cultural values in the Japanese workplace: harmony
within the work group, integrity, trust and trustworthiness, and doing one’s best to achieve an ever-higher standard of
work.1 The recruit suit communicates her earnestness, subordination of self to the group, and willingness to give all
she can to the company. She is saying, in the nonverbal vocabulary of clothing, that she is of the same cloth as the
other interviewees, and will be of the same cultural cloth as the others in her hiring group and in the company.2

Businesspeople must be particularly sensitive to dress in other cultures because

of the often negative image tourists have created. For example, Westerners often
assume that their leisure dress is appropriate everywhere. Many come in shorts to
visit churches and museums. Hordes of tourists flock to the beaches of Greece, Sri
Lanka, and Morocco and promptly go topless or entirely nude. After all, the tourists
have money, which they suppose gives them the right to do whatever they want to
do, including disregarding local customs and norms of behavior. At best, that kind
of behavior shows insensitivity, and at worst, it shows cultural imperialism. In no
case does it foster mutual respect and understanding. In fact, it may undermine the
credibility of a businessperson even if that person is sensitive to cultural attitudes
toward dress. As a result, businesspeople, in addition to doing the business at hand,
also may have to overcome negative cultural images created by mass tourism.

Power Distance and Symbols of Power and Authority

According to the work of the Dutch researcher Geert Hofstede, power distance in
the United States is comparatively small. That means that, true to a democratic
society, Americans are less accepting of inequalities in power than are people from
cultures with high power distance. Cultures with a smaller power distance are more
 Cultural Rules for Establishing Relationships 259

horizontal, less hierarchical, and less authoritarian than are cultures with a high
power distance. Understanding where a culture ranks on the power distance scale
can be helpful when one is dealing with a businessperson from another culture. For
example, based on Hofstede’s research on cultural priorities in 40 countries,
Austria has the lowest power distance index at 11 points, whereas Malaysia has the
highest at 104 points. The English-speaking and Northern European countries all
have a power distance index of less than 40 points.3 Differences in power are
expressed in many different ways, some obvious and some more hidden.

Tone and Behavior of Power and Authority

In spite of claims to democracy and equality, symbols of power are everywhere in
U.S. businesses. The size and location of an office and the type of furniture indi-
cate power. An employee entering the office of a powerful manager will read the
nonverbal signals and act accordingly. Plants, real wood furniture, and original art-
work all spell a higher position in the U.S. context.
Although the person in power in many ways controls the interaction, the posi-
tion of power also brings with it an obligation to be gracious. In many cultures, the
subordinate is expected to remain standing when entering the office of a superior
as a sign of respect; the gracious host is expected to offer a seat. Letting the subor-
dinate stand during the discussion while the superior is seated indicates that the
superior is busy and would not like to be disturbed or that he might not consider the
matter or the person important enough to engage in a discussion. Any particular
meaning depends on the context. If a boss you have known for many years does not
invite you to sit as you enter, you know how to read the signal. The unfamiliar is
more difficult to read, particularly in dealing with someone from a different culture.
At the end of a meeting in the Netherlands, the superior will send the message
that the discussion is over by standing up. The subordinate will get up and leave
after the appropriate leave-taking ritual. In cultures in which hospitality is impor-
tant, it may be impolite for the host to send signals that a get-together is over. In that
case, it may be the guest’s duty to announce that he or she is leaving. The host then
will press the guest to stay, but a guest who knows what is expected will politely
decline. This is a typical ritual in Arab countries. The difficulty for a foreigner is to
know what the right time is and how to read the invitation to stay a little longer.
Businesspeople in the United States, who are used to a more egalitarian soci-
ety, prefer a collegial to an authoritarian tone in business dealings. This is made
easier by the fact that modern English, in contrast to many other languages, does
not distinguish between a familiar form and a formal form of address and that most
people after a short time call each other by their first name. For example, the
informal address in German uses Du, and the formal one uses Sie. In French, the
distinction is expressed by tu for informal address and vous for formal address.
In Spanish, tu is informal and usted is formal. The formal address is used with the
last name, whereas the informal address typically is used with the first name.
A friendly and considerate tone is important in business communication in the
United States, but clarity is the overriding goal. If there is any concern that a pleas-
ant tone might cloud the meaning, U.S. businesspeople opt for clarity. The major
260 Chapter 7

goal is to get the meaning across. The purpose of Western communication is the
transfer of meaning and the establishment of rational and logical relationships
between ideas. To ensure that the message is clear, businesspeople from the United
States may use many words and lots of examples, typical characteristics of a low-
context culture. Ideas are encoded explicitly.
Germans have a tendency to establish their authority by giving very clear, pre-
cise, and often blunt directions. Germans tend to spell everything out; nothing is
left to chance, and the language is very precise and definitive.

In Focus

A gymnastics school in southern Germany ran summer programs for teachers from other European countries. Most of the
participants came from England, and all the participants stayed in the residence hall. In the opening session the director of
the school welcomed everyone and then proceeded to announce the rules that everyone would be expected to follow. She
asserted her authority by the tone and words she used. She gave strict guidelines on expected behavior in the residence
hall: which kinds of linens were acceptable, when to use the showers, what to wear for the gymnastics sessions, and so
on. Her comments were packed with verboten, nicht erlaubt, and Sie müssen (forbidden, not allowed, and you must). The
leader of the English group had to translate the comments for the English participants. It was remarkable to see what she
did. In her translation, the must and don’t and forbidden became it would be nice if, you might want to, and please consider.
She never once commented on the tone, but she certainly changed the tone of the message for her audience. The regula-
tions were made palatable to people who were not used to being ordered around by an authority figure.

In German businesses, managers have a remarkable degree of authority. They are in

charge of their departments, and interference from outsiders is not common and not
easily accepted. Employees generally accept the authority of managers and don’t argue.
As long as the law is followed, Germans often are very willing to do as they are told.4
Titles are important and are used. Two American professors checked into a hotel
in the city of the partner school. The partner school had made the initial reserva-
tion and provided the names of the two professors. In typical American fashion,
the two professors went to the front desk and gave their first and last names. The
clerk then said, “Yes, Herr Professor Dr. Lust and Frau Professor Dr. Guenther.”
The two professors delighted in the esteem they felt these titles implied but also
realized that at home nobody would address them that way.
As was pointed out earlier, the distinction between Du and Sie, the familiar and
formal words for you, and the use of last names further position people much more
clearly in the hierarchy than is the case in the United States. People know their
place, and they want to find out what someone else’s place is in business and in
society at large. Degrees and titles are the typical indicators of a person’s status.
The Japanese like to point out that theirs is a society without class distinctions;
however, they also emphasize that ranks and levels of society are very important.
The individual is clearly subordinated to the common goals of the group. Indeed,
Japanese use the word harmony whenever possible when describing their
relationships. Clarity, which is so important to Westerners, is not the overriding
goal. If clarity may cause loss of face or weaken harmony, harmony is considered
 Cultural Rules for Establishing Relationships 261

more important. A superior will not criticize a subordinate openly, will not
emphasize his superior status, and will not issue directives with must, will, or shall
because doing so might result in loss of face for both the subordinate and the boss.
The subordinate is supposed to understand the situation and accept his or her place
in the hierarchy. This, of course, requires tuning in to the fine points of cultural
discourse and being sensitive to nonverbal messages. The power distance is definitely
present, but it seldom is verbalized. A manager will not sit down with a subordinate
who is not performing well and clearly lay out what the employee will have to do to
improve. Any criticism in front of a group is unthinkable, but even clear and
constructive criticism in the privacy of the manager’s office is usually considered in-
appropriate. In all likelihood, the manager will ask the employee to go out for a drink
after work. In the social atmosphere of a bar and after a few drinks the manager will
gently and indirectly raise the issue of performance, probably couched in a story.
An American would probably never get the intended message; yet the Japanese
employee will understand exactly what the manager is trying to say.
As is typical in high-context cultures, Japanese businesses assume that people
know their place and will act accordingly, but the reality may be somewhat more com-
plicated. First of all, there is a tremendous difference between smaller and larger firms.
Small, family-owned firms can be very authoritarian. There is no question in anyone’s
mind who is in charge. The owner tends to make decisions and expects that they will
be carried out. The system of consensus, typically known as the Japanese decision-
making model, is practiced more in larger firms. But even in large firms someone is
in charge, the hierarchy is enforced, and the final decision is often the boss’s. It is the
discussion process that leads up to the announced decision that gives the impression
of equal participation. Everyone gets an equal chance to express his opinion, but the
discussion often is aimed at bringing everyone around to the boss’s opinion in the end.
The communication process is influenced by the history of the firm. If the firm
is bureaucratic and run by managers, the power of groups is greater. In a firm such
as Sony, which has a distinct individual founder, the imprint of the founder is
stronger. Although groups are important and harmony is important, the original
founder has a much more active role and more say in all company decisions.
People at all levels listen to what Mr. Sony has to say.
In typical Japanese fashion, power and respect are a part of amae and reciprocity.
Amae means that managers and employees know that they depend on each other and
are willing to accept the dependency. The relationship is very similar to a parent–child
relationship. The child needs the parent, but at the same time the parent needs the
child in order to fulfill the role of parent. The relationship is a complex web of obli-
gations that is central to Japanese interpersonal relations, including business rela-
tionships. The firm guarantees a job and decent wages; the employee promises top
performance. Each knows that the other has a certain amount of power, but as long as
both sides subscribe to the same set of values, they will get along. If that common
bond begins to break, the situation changes. If employees no longer commit them-
selves to the firm and keep their eyes open for better opportunities, companies will
decrease their commitment also and move away from lifetime employment.
In reality, the touted lifetime employment system has never covered more than
30 percent of the employees. It is practiced only by large firms and applies only to
262 Chapter 7

men. Women are not part of the system, and neither men nor women in small busi-
nesses are guaranteed lifetime employment. Furthermore, even in large firms life-
time employment is only for regular employees, not for part-timers and temporaries,
who account for an ever-growing proportion of the workforce. During the last few
years the lifetime employment system has come under additional attack. A number
of Japanese firms have concluded that to be competitive in the global market, they
need to focus on performance and merit rather than longevity with the firm. As more
foreign companies have bought Japanese firms, the practice of lifetime employment
has declined, but Japanese still consider it the ideal. Foreign firms are interested in
efficiency and profitability. To achieve that goal, they feel they have to reduce the
workforce. DaimlerChrysler, for example, bought a controlling share of Mitsubishi
Motors because the automaker felt it could make Mitsubishi profitable by reducing
the number of workers and increasing quality. The economic problems over the last
few years have resulted in further inroads into the lifetime employment practice. In
companies where lifetime employment is still practiced, increasingly women are in-
cluded. For example, Mitsui Trading Company hires women into its management
training program. The changing employment patterns will bring with them a new
power structure and a new relationship between employees and employers. Foreign
firms also have introduced a Western style of employee evaluations that is direct and
has personnel consequences. For example, Procter & Gamble, the U.S. firm based
in Cincinnati, Ohio, in the United States has introduced a very American evaluation
process for its managers. Only a certain number of managers may receive an evalu-
ation of outstanding or acceptable. Managers who do not meet the criteria are let go
and need to look for employment elsewhere. Other Western firms are using similar
approaches to human resource management. Clearly, the emphasis has shifted from
harmony and group orientation to efficiency and performance.
Although people in a firm know very well who has power, the issue is not dis-
cussed openly. To people on the outside, the façade of harmony must be maintained
at all costs, and saving face becomes an overriding issue. Companies go to great
lengths to present an image of harmony.

In Focus

Kazuo Ota, an employee in a Japanese subsidiary of a U.S. firm, gave notice that he wanted to leave the company. That
seemingly simple act started a flurry of activity. Mr. Ota’s boss, Masataka Abe, refused to accept the resignation be-
cause Mr. Ota did not have “valid” reasons for leaving. As it turned out, Mr. Abe was glad to get rid of Mr. Ota, but as
he explained, this was Japan, and appearances were important. He said that he would talk to Mr. Ota in a few days,
and they then would agree that they would part with mutual respect and satisfaction. That way nobody was to blame;
there would be no fault on any side. To Mr. Abe, this saving of reputation was extremely important.

Japanese firms have tremendous power over suppliers. The big firms buy exclu-
sively from the supplier, and the suppliers depend on the firms for their business and
economic well-being. The suppliers are the ones expected to absorb excess workers
 Cultural Rules for Establishing Relationships 263

in hard times; they are the ones that must absorb fluctuations in business. In return,
they know they have a customer for their goods and know they will receive help with
development costs and technical changes. As a result, however, they are totally de-
pendent on one manufacturer. Traditionally, in Japan the buyer has been in a con-
siderably more powerful position than the seller, and the seller tends to accept the
power position of the buyer, as the following example illustrates. In this context it is
interesting to observe a change in how Western researchers look at Japanese man-
agement. In the 1980s, Japanese culture with its emphasis on harmony and lifetime
employment was seen as the driver for Japanese business success. Today, Japanese
culture is often cited as the reason for Japanese business problems.

In Focus

Two Norwegian businessmen were visiting a kimono wholesaler in Nagoya. On the day of their visit several suppliers
were in the offices of the wholesaler, who was in the market for luxurious and very expensive kimonos. The layout of
the offices and the atmosphere were very traditional; all the floors were covered with tatami mats, and everyone had
taken off his or her shoes at the entrance of the building. People were sitting on the floor in the traditional style.
The Norwegians discussed several aspects of the business with the wholesaler. While they were talking, a
Japanese man approached, but the owner of the business barely acknowledged him. After a deep bow, the “intruder”
stayed at a respectable distance. When the Norwegians asked a question about the production of kimono belts,
however, the owner waved to the person and asked him to come closer. It turned out that the “intruder” was a kimono
belt maker who manufactured exclusively for this wholesaler. The supplier bowed several times and answered the
questions asked of him. When the discussion went on to other areas, he was waved away and quietly withdrew. To
someone watching the scene, the more powerful partner was easily identifiable.

Japanese firms frequently take the emphasis on harmony into their foreign sub-
sidiaries. An American working for a Japanese firm in Chicago faced the follow-
ing situation.

In Focus

Brent Weber, a recent graduate with a degree in international business, was excited about his job offer from a
Japanese firm in Chicago. He had heard about the excellent training Japanese companies provide for their employees
and was looking forward to a promising future with the firm.
After some time with the firm, however, Brent became disillusioned. He felt he just did not get the training to move
ahead, and he started looking for another job.
Somehow his Japanese manager found out; he called Brent in and made it clear to him that he was expected to
leave. Before Brent left the firm, however, the Japanese manager met with him once more. He went to great pains to
point out that even though Brent’s actions had been disloyal to the firm, they were parting on good terms: Brent was
not fired, but they had come to a mutual understanding that parting was best for both sides. The appearance of
harmony and agreement was important.
264 Chapter 7

The buyer sometimes is compared to the father who has authority over the sup-
plier, the son. The father has the authority, but because he loves his son, he will not
harm him. That means the buyer has the power, but he will see to it that the supplier
is treated fairly. Nevertheless, they are not equal in stature and status, and both sides
are keenly aware of their respective levels of authority and power.
Guanxi relationships fill a similar purpose in China. Business is done on the foun-
dation of relationships that are ongoing. They take a long time to establish and they
have to be nurtured. Guanxi cannot be rushed. It is a web of social connections that
are almost impossible to untangle. Guanxi brings certain privileges, but it also brings
obligations. It binds business partners to help each other. In today’s business environ-
ment in China, people may use the word guanxi, but the traditional time-consuming
ritual of relationship building has been frequently supplanted by paying bribes and
asking for favors. Not all relationships in business are guanxi relationships. Guanxi
relationships are characterized by (1) a warmth of feeling that can sustain a sense of
connection, (2) instrumentality, (3) reciprocity, (4) cultivation, and (5) trust. The
warmth of feeling is often expressed by the Chinese word renqing.5 Instrumentality
refers to the outcomes of the guanxi relationship; benefits come from being in a
guanxi relationship. Benefits offered as favors may be intangible, such as contacts
with others in a network, or they may be tangible, such as gifts. Reciprocity is the giv-
ing and receiving of favors that knits together parties in a relationship. These favors
often involve face: giving face and avoiding loss of face to the other party are the key
facework behaviors. Sometimes favors are gifts, or putting someone forward for a
beneficial outcome, or making a connection on behalf of someone.6 Guanxi relation-
ships need to be cultivated and nurtured, primarily by the exchange of favors. Once a
guanxi relationship exists and has fostered exchanges of significant favors, it can
endure over generations with only occasional exchanges. In the business environment
of China today, trust is especially hard to come by and therefore is especially prized
as a characteristic of guanxi. The term guanxi has been invoked by businesspeople
who do not always follow through with trust and reciprocity in modern China, and
that has cast some suspicion on those who use the term glibly.
In cultures where business relies on relationships and trust, agreements take
time and cannot be rushed. The relationship may be helped along with some small
gifts, but the gifts are not the major contributors. What really counts is the con-
nection with people and a willingness to be indebted to each other over time. The
tangible gift is but a very small part in the process.

Language as an Indicator of Power and Authority

In addition to tone and behavior, language is an indicator of authority in most
cultures. Japan provides a good example of the way language is used to establish
authority.
In Japan, power becomes obvious through nonverbal symbols such as bowing,
as was pointed out earlier, but vocabulary is also an indicator of power. The
Japanese society is a hierarchical society. The language subordinates use differs
from the language superiors use. The vocabulary can be quite different, and every-
one is aware of the connotations of words. For example, when a manager addresses
 Cultural Rules for Establishing Relationships 265

subordinate men, he will add the suffix kun to the name rather than the respectful
san (the equivalent to Mr.). The subordinate will address the superior with the last
name and title, or use the title and san. For example, the boss will call the employee
Nakasone-kun, but Mr. Nakasone will call the boss Abe-kacho (Abe being the
name of the boss and kacho meaning section chief).
Address reflects one’s standing in the group. This is emphasized even more by
using a person’s title or position plus san rather than the name plus the title. In this
situation, the boss is not Abe-kacho but kacho-san, not Tanaka-bucho (department
head) but bucho-san. This practice is carried over into family relationships. A boy
will call his older brother anisan, older brother, rather than Wako, and call
his older sister oni-san, rather than Noriko. In a way, the person loses his or her
individual identity and takes on an identity in relation to his or her position in
the group.
Lately, several Japanese companies have started to move against extreme status
consciousness in addressing people. They are promoting the use of the suffix san
for everyone regardless of position. Nakasone-kun would become Nakasone-san,
and Abe-kacho would become Abe-san. It is interesting to note that the Japanese,
who have emphasized group membership by pointing out that everyone from
president to storeroom clerk wears the same uniform, are now talking about the
need to equalize the language. The United States is cited as a positive example in
this effort.
The preceding examples indicate that to use correct language one needs to
know where one stands in the hierarchy. Different groups use different vocabulary.
For an outsider, it may be difficult to notice the variations, as the following exam-
ple shows.

In Focus

Thomas Reed had been a missionary in Japan for almost six months. He had taken some Japanese courses before
going to Japan and had continued his language training after his arrival in Japan. As a missionary, he would go from
door to door to talk with people about his religion. In that context, he met a lot of people and practiced his Japanese.
Typically, the people who answered the door were housewives. One day, however, one of his male friends took him
aside and told him that he spoke Japanese like a woman and had to learn to speak like a Japanese man.

The hierarchical thinking of Japanese society also is apparent verbally in the

way people refer to themselves. In Western cultures, people refer to themselves as
I. This identity stays with them and does not change. It does not matter whether a
man talks to his parents, spouse, friends, co-workers, or boss. When he refers to
himself, he uses the pronoun I. That is different from the practice in Japanese cul-
ture. First of all, it is considered egotistic and impolite to refer to oneself because
that draws too much attention to oneself. If at all possible, one should avoid
266 Chapter 7

any reference to I. The subject I will become clear in the context. If the speaker
does use the personal pronoun, the pronoun will change depending on the people
the speaker is addressing. The Japanese have many words for I. Each depends on
the relationship of the speaker to the listener, and each indicates the hierarchy of the
group. The particular word that is used depends on status, gender, age, and famil-
iarity. Boys, for example, will use boku for I when talking to each other. A man
will use temae for I when talking to his boss. Young men talking to each other will
refer to themselves as ore.
A discussion of groups in Japan must take into account the fact that group
membership is permanent (see Chapter 4). Groups are important because they help
define one’s identity and role and establish authority relationships that last for a
lifetime. This helps explain the importance of university clubs. All Japanese uni-
versities have a variety of student clubs, from soccer to martial arts, fencing, rock
climbing, theater, and politics. Seminars also have a special place in Japanese uni-
versities. A professor will handpick the students for his seminar. Each student is
interviewed personally. Once the students are accepted, they will become members
of the seminar for life. At the beginning of the seminar, the professor will go on a
retreat with the new seminar students. During the duration of the seminar, the pro-
fessor and the students frequently go out together in the evenings. Once the semi-
nar is over, the professor will invite his seminar students from all the years he has
taught for a get-together once a year.7
The Japanese take these clubs and seminars very seriously. Joining is not casual
or temporary but for a lifetime. When graduates go their separate way after grad-
uation, they stay in touch. They belonged to the same club or seminar; they had the
same experiences. If one works for MITI and the other for Mitsubishi, they know
they can count on each other. Westerners often complain about the close ties be-
tween Japanese business and industry. What they may not understand is that this
is not necessarily an official tie but an unofficial tie based on group identity and
personal relationships that have grown over many years (also see Chapter 4). These
relationships are often the basis for power in Japan. For example, one large con-
glomerate, Tokyu Corporation, formerly required new hires, who all begin work
for the company at the same time (the beginning of April), to live together in a dor-
mitory in order to be formed into a unit.
The Koreans also establish life-long relationships and a complex web of con-
nections while they are still in school. As they advance in their careers in business
and government, these connections play an important role. One Korean professor
who had emigrated to the United States to work on his doctorate in finance
explained that he went back to Korea regularly to visit his parents; however, he no
longer had the close connection to his network. He had become an outsider with-
out access to the old network.
What appears harmonious on the surface is not necessarily harmonious
beneath the surface, however. There is an amazing amount of shuffling for power
and position, but all behind a façade of harmony. Employees know very well
where they stand and what their chances of success are in a firm. Whereas the
older generation still emphasizes seniority and promotion based on seniority,
 Cultural Rules for Establishing Relationships 267

younger people are increasingly disillusioned with this approach. Japanese

who have studied abroad or worked abroad are rebelling against the seniority
system. They want more power based on knowledge and experience rather
than number of years with the firm. With growing global competition, the
Japanese elite is beginning to review the issues of merit and group harmony.
Any changes will have far-reaching consequences in traditional business culture
and behavioral norms.

Family and Societal Structures as Indicators of Power

So far, we have discussed the tone and language of power, but in most cultures
power also is conveyed by the social groupings and structures of groups (see also
Chapter 4).
Although Islam stresses the equality of all believers, in reality there is an
emphasis on hierarchy and authority. The symbol for the underlying power struc-
ture is the extended family or clan that is tightly ruled by the senior male member.
For younger people who may have studied abroad and have gotten used to
questioning authority, the return home can be a tremendous culture shock. No
matter how much they know, they will be expected to bow to seniority. The head
of the group officially has the say.
Most Arabs are used to this structure and accept the authority of a person as
long as it is clear that that person is officially in charge. However, Arabs have a
hard time dealing with people when there is no clear indication who the leaders
are. Free-flowing discussion in the Western sense is difficult in Arab culture. The
give-and-take approach to discussions is furthermore complicated by the fact that
in Arabic there is no equivalent word for compromise. Clearly, if the concept is not
there, negotiations will be rather different from the American approach where ne-
gotiators talk about dividing the difference. In the severity of the desert environ-
ment, only the strong survive, and therefore one constantly has to protect one’s
position. In this context, give-and-take is seen as a sign of weakness. As a result,
Arabs stick to small talk when lines of authority are not clear to avoid confronta-
tions and arguments.8 Group decision making using the Japanese approach prob-
ably would not work because the Japanese approach does not have an obvious
leader who is in charge.
Western businesspeople doing business in the Middle East will be much more
successful if lines of authority, power, and responsibilities are spelled out clearly.
They also can help discussions move along if the Arab businessperson realizes that
the Westerners have the full support and confidence of their companies back
home. Arabs respect clearly identified authority, but any sign of insecurity will be
interpreted as weakness and ineffectiveness and will be attacked relentlessly.
Similar to the Arab tradition, the Latin American tradition is male-oriented and
based on a strong authoritarian leader. The tradition evolved from the strict hierar-
chical organization of the Catholic Church in Europe and the system of large
haciendas in Latin America.9 Traditionally, the hacienda is run by a patron, a father
figure who takes care of the people living on the hacienda. It is a very paternalistic
model based on reciprocity and loyalty. The employees owe duty and obligation.
268 Chapter 7

Their loyalty is a personal loyalty to the owner rather than to a group, as in Japan.
Loyalty is not abstract but real and shows up in the carrying out of orders. In this
system, both sides accept their place: the owner/manager who makes the decisions
and the subordinate who carries them out. The patron clearly is the authority figure,
and he also is expected to take care of the employees; however, the employees have
some power also, even though it is more indirect. They control important informa-
tion that they will pass on only in return for certain favors.
Because the patron as the authority figure is supposed to know what to do, he
culturally cannot ask for information. Asking would be interpreted as weakness.
As a result of the traditional communication pattern, communication, particularly
horizontal communication, in Latin American organizations even today is not very
effective. People try to protect their reputations and positions; people do not work
together freely to achieve common goals. In such an environment, teamwork will
have to be prepared and nurtured much more carefully.
Decision making by consensus, or setting common goals in a group, is difficult
in Latin American cultures because managerial practices do not take the cultural
realities and constraints into account.10 Many a North American management con-
sultant has failed in Latin America when preaching the advantages of an open
communication system in which the boss asks for input from the employees and
the employees freely share their opinions. Communication patterns are culturally
conditioned. The one higher in the hierarchy takes care of the lower one, who in
turn owes obedience and carries out orders. The lower one does not interrupt and
ask questions. That is not his place. If the superior asks for input, the subordinate
may legitimately question the ability of the superior to run the firm.

Assertiveness vs. Harmony

Standing Up for One’s Rights
U.S. businesspeople believe in assertiveness training. Assertiveness is seen as a pos-
itive value, and the emphasis on assertiveness highlights individual rights over ob-
ligations to groups and society. If in doubt, Americans often push for truth rather
than peace and harmony. They believe it is better to know the truth. “The truth will
set you free” symbolizes their faith in asserting what is true and right.
Germans, even more than people in the United States, emphasize the impor-
tance of standing up for their rights, of consciously asserting their rights. In many
cases, outsiders can see those characteristics much more clearly than insiders can.
Germans tend to see life as tough and not always fair; therefore, children must
learn to fight early (also see Chapter 6). A German mother once said that it was
important that children learn to cheat on tests because life is hard and often cruel.
Everyone cheats; therefore, it is important to learn how to do it for self-protection.
Although not all Germans may agree with the attitude of the mother, it is a com-
mon attitude that illustrates our point.
This need for assertiveness can be humorous, but it also can be more severe. In
the extreme, it leads to the person who is an expert on everything. Germans find
 Cultural Rules for Establishing Relationships 269

In Focus

An Iranian doctor who had lived in Germany for many years commented on the German need to assert oneself. From
childhood on, she noted, German children are taught to defend their rights as people and their right to property. Was
recht ist muß recht bleiben (right must remain right) indicates this attitude. One should never give up one’s right or give
in. The Iranian formed the opinion that, in Germany, doing this stamps a person as weak and incompetent. As a result,
life is regulated and rules govern the most minute details of life. The Germans may have their possessions, but in the
process, according to the Iranian doctor, they miss the interpersonal warmth that comes with sharing.
This example illustrates the fact that people approach other cultures with their own set of values and priorities. The
Iranian doctor evaluated the German culture on the basis of her own background, which firmly places the individual in
a hierarchical group that emphasizes interdependence rather than an insistence on personal rights.

it difficult to say that they don’t know or admit that they were wrong. When a per-
son in the United States might say, “I’m sorry, I guess I was wrong,” a German
would be quiet or explain why he was right. Insecurity frequently leads to exag-
gerated assertiveness.

In Focus

A group of German and U.S. students discussed the construction of houses in both Germany and the United States.
The Germans were horrified by how thin the walls of American houses are. Because of the temperature extremes of
the Midwest’s continental climate, they thought that the walls should be thicker to conserve energy. The U.S. students
pointed out that thickness of walls does not automatically mean better insulation. They explained the significance of
the R-value of insulation and discussed how thick a stone wall would have to be to reach the equivalent insulating
value of a six-inch fiberglass pad. The Germans listened until the Americans had finished, and then one of them sim-
ply said: “This is wrong. Thicker walls are better.” He probably knew nothing about R-values and insulation values, but
he “knew,” and he asserted his knowledge.

This behavior also can be observed in business. The German subsidiary of a

U.S. pharmaceutical company regularly sent reports and requests for additional
funds to headquarters. The manager at headquarters in Chicago repeatedly told
them that they needed to justify their requests, that to say they needed the funds
for effectiveness and competitiveness was not enough. The Germans continued to
send requests without the justifications. If they said they needed the funds, they
needed the funds. They were right. The U.S. manager, in exasperation, suggested
some training in American-style business report writing. The Germans were furi-
ous; how dare he suggest that they needed to change!
270 Chapter 7

In another case, the German manager of a German subsidiary of a U.S. firm re-
fused to go to European regional meetings. He knew his job; why should he waste
his time going to France or Great Britain? If they needed help, they could come to
him. In contrast to Americans, Germans tend to be more production-oriented; pub-
lic relations is often a distant last concern. German advertisements typically assert
product superiority in a technical sense. Companies, like individuals, seem to say,
“We know we are right, so why bother about appearing nice?”
For example, a German manufacturer of high-quality steel products was un-
successful at selling its products in Shanghai. The firm could not even sell its prod-
ucts through a joint-venture company. On sales calls, the Germans would simply
state the superiority of their products and give the price. The Chinese, however,
were looking for an advantage, a special favor, a sign of some consideration due
to them because they were entering into a buyer–seller relationship, and always
looking for a better price than another buyer would pay. The Germans reputedly
stated, “You can’t have a Mercedes at a Volkswagen price,” packed up their
brochures and specifications, and walked out. The Chinese had thought they were
negotiating and had only just begun the process. The Germans had no time to
waste: They knew their product was of high quality and said so and named their
price. Nothing further remained to be said as far as they were concerned. Although
the focus on production and quality is laudable, it has resulted in rigidity. The lack
of flexibility has become a hurdle in an era with an emphasis on globalization.

Preserving Harmony
In contrast to Western assertiveness stands the concept of peace and harmony in
Asian cultures. The Japanese proverb “the pheasant would have lived but for its
cry” is symbolic of that concept. One is quiet and fits in. To tout one’s rights or
superiority is not acceptable. The emphasis is on duty, obligation, and loyalty
rather than on rights. Both Confucianism and Buddhism emphasize duty over
rights. The verbal assertiveness of Western cultures is alien to Eastern cultures.
However, younger people may follow a more assertive course and begin to ques-
tion authority.
Assertiveness implies that I assert my rights because I am right; therefore,
I must maintain and defend my view of what is right. In cultures whose members
believe that circumstances define what is right and wrong, the insistence on
absolutes becomes hollow and makes no sense. Businesspeople from Eastern
cultures may consider the Western emphasis on absolute principles unrealistic and
pushy, and Western businesspeople may view the Eastern emphasis on circum-
stances as an attempt to avoid commitment.
The different cultural backgrounds influence how people approach each other
and present their ideas. A businessperson from Western cultures is likely to push
assertively and openly for acceptance of a proposal. East Asian businesspeople
also fight for their proposals, but typically the fight is more subtle, more quietly
persuasive than openly assertive. Unless both sides understand the reasons for
their behavior, they may not be able to communicate effectively and may miss
business opportunities.
 Cultural Rules for Establishing Relationships 271

Recognition of Performance as a Signal of Authority

Recognition of performance can be divided into two major types: monetary recog-
nition and nonmonetary rewards.

Monetary Recognition
Cultures that emphasize relationships over individual achievement and material
possessions tend to play down the role of money in recognizing performance. Cul-
tures that admire individual performance tend to connect salaries with recognition.
In the United States, for example, recognition of achievement is reflected in one’s
salary. Surveys over the last few years have shown that American executives are
the highest paid in the world not just in terms of absolute dollars of compensation
but also in terms of what other people in business make, even though surveys show
that interesting work rather than salary is the prime motivator.11 The differentials
between pay for manufacturing employees and chief executive officers (CEOs) is
highest in the United States and lowest in Japan and Germany. The scandals at
Enron, WorldCom, Tyco, and other companies have brought to light what CEOs
and top executives at some American companies make. Although the public may
accept huge salaries for CEOs whose companies are profitable, they certainly were
aghast to find out that in many cases CEOs received huge salaries even if their
companies lost money.12
However, the gap between U.S. chief executives and their foreign counterparts
is closing fast as foreign firms have started to make stock options part of execu-
tive pay. Many Germans were convinced that Juergen Schrempp, the CEO of
DaimlerChrysler, hoped for the merger of the two companies only because he
wanted the salary of an American CEO. Today, executives of multinational firms
in many countries, among them Argentina, Germany, and Japan, include stock
options in the pay package. In the United States, these packages have to be trans-
parent, and regulators require that the facts are clearly laid out. In Germany and
Japan, on the other hand, executive pay is considered a private matter. Executive pay
is reported in one total of all executive pay in the firm. Only recently, with growing
scandals, are these countries requiring American-style transparency. This develop-
ment is another example of the impact of globalization. In an era when business
seeks talent globally, compensation packages are competitive at a global level.
As European firms are hit by “merger mania,” more and more executives are re-
ceiving golden parachutes—that is, special payments, special retirement bonuses, or
special stock options if they are let go as a result of the merger. German, French, and
British CEOs made international headlines when their severance agreements were
disclosed. Traditionally, those CEOs might have received a cash payment for the loss
of compensation in a takeover, along with a nice pension, but multimillion-dollar
parachutes were virtually unknown. This definitely is changing.13 Golden parachutes
for American CEOs have made headlines as well. Jack Welch, who was an icon of
American industry, lost much of his stature after his retirement deals became public.
The big pay differences between lower-level employees and executives have be-
come an issue in several countries. In the United States, for example, employees
272 Chapter 7

and stockholders are more and more disillusioned and complain about managers
taking rewards but avoiding punishment.14 Managers are accused of giving them-
selves huge salaries, bonuses, and stock options regardless of performance. Even
the Securities and Exchange Commission (SEC) has entered the discussion. In-
creasingly, American critics argue that the system needs to be more participative
and consensus-oriented.
In many developing countries, pay differentials between managers and lower-
level employees are tremendous and are an expression of traditional hierarchical
class structures. Since class membership often is attained by birth rather than by
individual accomplishments, the salary structures reinforce the existing system.

Nonmonetary Rewards
Appropriate recognition must be based on cultural motivators and culturally
acceptable norms. In a culture that considers individuality positive, singling indi-
viduals out for praise is positive. U.S. firms, for example, may recognize the sales-
person of the month or the employee of the month. Singling out an individual both
praises the individual and provides an incentive for the others to do well so they
too may be recognized. A successful saleswoman at Mary Kay Cosmetics gets to
drive a Cadillac. The whole world can see that she is a top performer. Local news-
papers in the United States regularly run columns on who has been promoted in
the community. A brief description and a recent picture recognize the individual
achievement. Americans want others to see what they have done. For example,
McDonald’s and other service companies post the Employee of the Month with a
picture and brief biography in each franchise. In contrast, at Beijing Jeep some
workers actually turned down a pay increase because the apprehension they felt
about the resentment of less-productive workers outweighed the benefit of getting
more money.
Some U.S. companies organize special trips and retreats for successful employ-
ees. Company-paid trips to Hawaii or Florida, particularly in January—if the firm
is in the northern part of the United States—indicate appreciation and success.
In cultures that do not put a high value on individuality, the open recognition of
individual achievement may not be desirable. Singling out one salesperson as the
top performer in a Taiwanese firm could be embarrassing for the employee and not
endear him to his co-workers. What he achieved was a result of group interaction
and cooperation. Nobody alone can reach the top. As a result, companies tend to
reward everyone. Everyone gets a bonus; everyone gets to go on a trip. A small
firm in Taipei, for example, sent all 54 employees to Hong Kong for three days.
They went in two groups so that the business could remain open, but everyone down
to the lowest clerical employee went. Another Japanese firm paid for all employees
to travel to Italy together. Any other arrangement would have been unthinkable.
Similarly, a software company in California that was owned by several Taiwanese
made headlines in 1998 when it awarded a Christmas bonus of nearly $60,000 to
each employee! This was a monetary reward but also a collective one.
In a Japanese firm, one of the women was asked whether she was willing to
accept a position as a manager in training. She would have been the first and only
 Cultural Rules for Establishing Relationships 273

woman in that position in the firm. Most businesswomen in the United States or
Western Europe would have jumped at the opportunity. She declined, saying she
did not think it appropriate to be singled out from among all the other women. For
the sake of maintaining harmony and not being the object of criticism by others,
she felt it more important to remain a member of the group of women. She was
willing to forgo personal advancement in the interest of remaining a member of
her group. The Japanese emphasis on fitting in does not mean there are no per-
sonal ambitions and maneuvering for positions. The difficulty for Westerners is
that the surface seems to be so harmonious and smooth that it is difficult to rec-
ognize and interpret any undercurrents. They are there, however. A Japanese busi-
nessman described the Japanese approach thus: “Like a duck—serene above and
paddling like hell below.”
Pay differentials in formerly communist countries were small; however, much
of the compensation in those societies came in the form of privileges rather than
salaries. A Russian manager might not make much more money than a first-line
supervisor, but the manager might have access to special stores, vacation spots,
inexpensive and heavily subsidized theater tickets, and travel within the commu-
nist bloc countries. In this kind of environment, salaries alone do not give a clear
picture of actual power and authority.
In developing countries, recognition may come in the form of products that are
difficult to get. For example, an employee may be much happier with a VCR, cell
or mobile phone, or television set than with the equivalent in the local currency if
those products are not readily available. Having them may indicate prestige and
connections. Sometimes better apartments, houses, vacations, and automobiles
may be coveted possessions, and employees may go to great lengths to get them.
Any firm employing people with diverse cultural backgrounds needs to be
aware that people with different backgrounds look at rewards differently. What
may be a dream come true for one person may be disappointing to the next. Some
companies have tried to avoid problems abroad by implementing the same policy
for recognition worldwide only to find out that this does not work. Just as with the
other aspects of communication, the reward process must be adapted to the cul-
tural norms of the people with whom one is dealing. Any policy must be soundly
based on a study of what is culturally appropriate and acceptable. In addition, the
firm must be fair to all subsidiaries. If individual recognition is not appropriate, a
more group-oriented approach may solve the problem. However, it would not be
appropriate to give no recognition at all.
Increasing globalization has made recognition of performance more complex.
Small and medium-sized firms may continue to follow traditional patterns for rec-
ognizing performance, but many large multinational firms may need to combine
approaches from several cultures. If an Australian firm practices polycentric
staffing and employs Australians at its headquarters in Brisbane, and Japanese
people in its subsidiary in Osaka, the firm can design a reward structure that fits
the Australian culture at its headquarters and the Japanese culture at the subsidiary.
If, however, the Australian firm uses a staffing pattern in which Japanese and
Australian employees work at headquarters and at the subsidiary, both locations
274 Chapter 7

must take both cultures into account. Developing an award structure that corre-
sponds to cultural priorities requires sensitivity and careful study of the culture.

The Role of Social Contacts in Intercultural Business

As we pointed out in Chapter 3, the importance of form is related to cultural pri-
orities. In this section, we will explore some of the key factors that influence suc-
cess in the social settings of international business because much intercultural
business communication takes place through social gatherings and gift giving.
Appropriate behavior in the social setting is crucial for success; however, the def-
inition of appropriate behavior varies from culture to culture.

Conventions for Extending Invitations

Business relationships, especially in international dealings, often involve enter-
taining businesspeople from other cultures. Whom does one invite, when does one
invite people, and how well does one have to know people to invite them? These
can be complicated points in business relationships across cultures. In the United
States, people are fairly open and invite people easily into their homes. Even if
they have not known the other person very long, many extend an invitation. The
invitation is a gesture of welcome and goodwill and does not necessarily mean that
the person issuing the invitation wants to become a close friend. In many ways the
invitation is similar to the social question “How are you?” which does not re-
quire an answer other than “Thank you.” Foreigners who come from cultures
where one invites only close friends to one’s home, however, typically use this
goodwill gesture as proof of the insincerity of Americans.
Open hospitality is not universal. At an elementary school picnic in the United
States, two American parents met the parents of a Japanese student. The Japanese
father was a visiting professor at the local university. They were new in town and
didn’t know anyone. The Americans, to make them feel welcome, invited them for
Sunday afternoon. The couple came with their son, and the afternoon was very
pleasant. In the course of the conversation, the Japanese expressed their surprise
at having been invited after just having met the host. In Japan that would not hap-
pen, they pointed out. Indeed, it is much more difficult to receive an invitation into
a Japanese home. Socializing takes place outside the private home either in a pub-
lic place or at the place of work.
The Japanese are expected to fit in the group, to share, and not to insist on pri-
vate space, but families are kept very separate from work life. The work team may
be a second family for the employee, but the private family and the company fam-
ily in many cases do not mix. This separation may be partly a result of crowded
living conditions because with small apartments it is difficult to entertain at home,
but the reasons for the separation of work and family seem to go deeper.
It is a nightmare for the Japanese if a foreign businessman announces that his
wife will accompany him on the next trip. The Japanese do not know how to deal
with this situation because wives typically are not included in business functions.
Asking a Japanese wife to take care of the visitor’s wife also poses problems. The
foreign woman may feel uncomfortable, and the Japanese woman may resent
 Cultural Rules for Establishing Relationships 275

having to be involved in her husband’s business affairs, not to mention having to

overcome language problems.
Guests in Japanese homes must follow certain customs. At the entrance one
takes off one’s shoes. Perhaps this goes back to the time when the entire floor was
covered with tatami mats. These mats are delicate and difficult to clean; therefore,
to prolong their lives, people would take off their shoes when entering the house.
Even though today most people in Japan have carpeting or wooden floors and usu-
ally just one tatami room, if any, the custom has survived. All guests are expected
to take off their shoes.
Many families provide slippers for guests. For this purpose, most houses have
a set of shelves at the entrance filled with a number of pairs of slippers. Men find
out very fast that the best shoes to wear are slip-on loafers rather than shoes with
laces. For the use of the toilet, a separate pair of slippers is provided. The slippers
that are worn in the rest of the house must never be worn in the bathroom, and
especially vice versa! Exchange students typically infuriate their hosts before they
catch on and change slippers intuitively.
The ritual of taking off one’s shoes and putting on slippers provided by the
host is perfectly natural to the Japanese. The host shows hospitality by provid-
ing slippers; the guest shows respect by taking off the shoes. People from other
cultures may view the ritual somewhat differently, especially if they want to
present a certain image.

In Focus

A group of businesspeople from the United States was invited for a Fourth of July party to Mitsubishi in Nagoya. At the
entrance, everyone took off his or her shoes and put on the provided slippers, which were olive green. In the eyes of
the Americans, the slippers looked odd with the business suits the men were wearing, and they ruined any ensemble
and color coordination the women were trying to achieve. The businesspeople from the United States felt as if they
had lost their professional dignity when putting on the slippers. The Japanese, in contrast, did not even seem to notice.
To them it was quite natural—what else would one do?

Arabs may invite outsiders into their homes more easily than the Japanese do,
but an outsider will only be permitted in the official or public places of the house,
and typically the public part of the house, the dewaniah, is accessible directly from
the outside. That means a visitor enters the public areas without ever being any-
where close to the private areas of the house. Women are typically not present and
will not appear while an outsider is in the house. An Arab may entertain at home
but separates the public and private aspects of his life. In Northern Europe, busi-
ness entertainment at home is rare. People are more protective of the private sphere
and separate work life from private life. Clearly, to avoid misunderstandings and
hurt feelings, international businesspeople need to learn how to read the signals of
hospitality in different cultures.
276 Chapter 7

Mixing Social Engagements and Business

Typically, the host sets the agenda and guides the visitor through the course of en-
gagement. The host will determine whether to meet for dinner at a bar, at a nightclub,
or in his or her home. The host also will invite the appropriate persons. These arrange-
ments may be fairly easy. More complicated is the question of how fast to proceed to
business. Businesspeople from cultures that consider time a perishable commodity
want to move fast; after all, time is money. They may invite the potential partner into
their house for dinner but then proceed to talk business most of the evening.
In cultures in which business is based on trust, the personal relationship must
be established before any business discussions can begin. Businesspeople from
these cultures use the social gathering as a way to get to know the other person and
avoid business discussions during that time.
No culture is right or wrong; cultures are different and approach business dif-
ferently. They develop different norms and expectations. For example, Americans
are used to the business breakfast, the business lunch, and the business dinner.
If a manager invites people for a working breakfast, it is understood that the
participants should arrive on time and focus on business. If a business breakfast is
not the custom, the participants may not know what to expect and what to do.
Uzbeks, for example, do not do business breakfasts. When an American invited
people for a business breakfast for 8 a.m., two other Americans were there. The
Uzbeks came gradually. The last one arrived an hour and a half late. The Uzbeks
felt uncomfortable and did not know what the rules for such an occasion were.
Businesspeople should learn how the other side approaches business and what
the principles of hospitality are. Then they can make the necessary adjustments or
openly talk about the differences and come to a mutual understanding. Generally,
however, the rules of the host culture carry more weight. If you are doing business
in another culture, you may have to be the one who makes most of the adjustments.

Appropriate Behavior for Hosts and Guests

If you follow the conventions of hospitality in a particular culture, your foreign
business partners will look at you as sensitive and respectful, and appropriate
behavior in social settings will open doors; however, although attention to form is
beneficial, we believe that it is ultimately more important to look beyond the what
and focus on the why of the appropriate behavior. Throughout this book, we have
discussed the reasons underlying cultural priorities and behavior, and we encourage
you to use this knowledge when you are interacting with businesspeople in social
settings. For example, cultures that do not like uncertainty tend to develop clearer
rules for behavior. Hierarchical societies pay particular attention to the relationship
between host and guest and are more sensitive to who can invite whom. If you are
hosting a party in a male-dominated society, you need to pay attention to whether
it is appropriate to invite women and how to seat your guests at the dinner table.
A typical U.S. symbol of hospitality is the cocktail party. A manager may invite
employees, clients, and customers so they can get to know one another. The goal at
a cocktail party is to meet as many people as possible. Nobody expects to get into
 Cultural Rules for Establishing Relationships 277

deep discussions. In fact, it would be rude to monopolize any one person. One
makes small talk and “works the room,” exchanging business cards and phone num-
bers so one can get into contact later and establish future business relationships.
To Europeans, the cocktail party is a curious phenomenon. In Austria, for
example, one invites only as many people as one has chairs for. To invite crowds
and expect them to stand would not be hospitable and thus is not acceptable. The
art of small talk is not a forte of most Northern Europeans either. They tend to view
the U.S. style of entertaining as superficial and lacking sincerity, and they do not
understand the American conventions for meeting people, exchanging business
cards, and engaging in small talk.
A U.S. firm that hosts a cocktail party in Japan creates all sorts of problems
because the cocktail party is based on the premise that one can walk up to anyone
in the room and introduce oneself. In Japan, with its hierarchy and protocol for
addressing others, it is almost impossible to introduce oneself without knowing the
age and status of the other person. What is intended as a friendly gesture by
the manager from the United States may cause discomfort and embarrassment for
the Japanese guests.
In cultures in which the development of personal relationships is important in
doing business, the offering and acceptance of an invitation imply that both host
and guest devote themselves exclusively to that particular engagement. In cul-
tures that look at entertaining simply as a prelude to business, the implication may
be quite different. For example, invitations in the United States may announce:
“Cocktail party 5–7:00 p.m.” This is unthinkable in cultures where hospitality is
supposed to be unlimited. To invite someone for a set time period is rude.
Americans, in contrast, find this arrangement very considerate and efficient. The
guests know that they don’t have to reserve the entire evening for the event; they
can make other plans for the rest of the evening. In some English-speaking
cultures, invitations are issued that read, for example, “7:15 for 7:30” which can
be initially puzzling to the foreigner. They indicate that the real business of the
evening (perhaps dinner or a business presentation) will be at the later time, and
the preceding interval is for socializing, perhaps with drinks and small appetiz-
ers to be eaten while standing.

In Focus

A couple of Dutch businesspeople who were visiting the United States were troubled after their second day. They
finally approached their American friends and asked for help. They had been to a party arranged by their U.S. client
the night before. Somehow, they felt they had done something wrong. They also felt that they should have left
earlier than they did, but they did not know the appropriate length of stay. In the discussion, it came out that in the
Netherlands guests show appreciation by staying until the end. Since the guests from the United States dropped in and
left, not all the guests were there at any one time, and the Dutch did not know what to do and how to get away. They
did not know what the expected social behavior was in that setting.
278 Chapter 7

In their own cultures, people know when to arrive for business meetings and
business-related social functions. In the United States, for cocktail parties one
is expected to be not too punctual and can leave after a short stay. For a dinner
party, in contrast, one is supposed to be on time for dinner, which is usually
later than the stated hour in the invitation, and then stay for the evening. In cul-
tures that don’t live as much by the clock, an invitation for seven o’clock does
not mean one must be there at seven o’clock. In fact, nobody in Spain or India
would expect the guests to come at seven. An hour later or even two is common,
and nobody thinks anything of it. Filipino guests will arrive up to two hours
later. Dinner typically is served late in the evening. A hostess from Canada or
Northern Europe would be very upset by this behavior and vow never to invite
those people again. After all, if the invitation is for seven, dinner probably will
be served at seven-thirty or eight at the latest since the hostess probably has a
sequential or monochronic view of time—discussed in Chapter 3. The evening
is much more programmed, and the hostess will do everything to make things
“run smoothly.” Her reputation as a hostess will depend on the smooth func-
tioning of the event.
In Canada and the United States, guests may linger after the dinner, whereas in
Japan and China the host and the guests will get up shortly after the meal is over
and say their good-byes. The ending to social functions in Japan and China strikes
Europeans and Americans as abrupt. They often feel the evening has barely started
and wonder what to do with the rest of it.
As with most other aspects of intercultural communication, one needs to be
aware of the customs in the other culture. For an Australian to be insulted at not
being invited to a Japanese partner’s house, even though the Japanese was in the
Australian’s home, is petty. A businessperson from New York who insists on invit-
ing a client from Saudi Arabia (a culture in which business and families are kept
separate) to his home may not foster his business interests. However, in Brazil it is
normal for a person who is about to go on vacation to give a little party with drinks
and hors d’oeuvres for his friends from the workplace, usually on Friday evening.
Not to do so is unthinkable. Thus, the issue of when to invite is also a cultural mine
field. In many cases you can overcome problems by saying something like “In my
culture it is the custom. . . . It is appropriate, therefore. . .” Similarly, it is accept-
able to ask what is appropriate behavior for a visitor. Most people will praise you
for your sensitivity and intention not to offend and be much more forgiving of mis-
takes if they know that you want to do what is right.

Gift Giving
Many companies have specific rules for gift giving in a business context. They
may have items on hand that managers can use for gifts; calendars, pens, and golf
balls are popular items. In giving business gifts, businesspeople from the United
States also must be aware of legal restrictions based on the Foreign Corrupt Prac-
tices Act, which outlaws bribery and strictly limits the value of gifts one can give
and accept. The official company rules on gift giving may not specify what to do
if an employee is invited to attend a social event such as a dinner party.
 Cultural Rules for Establishing Relationships 279

In many cultures, it is appropriate to take small gifts when one is invited to enjoy
hospitality. In Northern Europe, a fitting gift is flowers or chocolates for the host-
ess. A bottle of wine, especially in France, could, however, be viewed by the host as
an insult, indicating that he or she does not serve good wine. In Germany, roses and
chrysanthemums are not considered appropriate. Roses are for lovers, and chrysan-
themums are for funerals. Flowers also must be in uneven numbers and are taken
out of the paper before being presented, unlike the custom in Great Britain.
In Japan, gifts are important. Twice a year, at New Year’s and in July, people
present gifts to work associates, friends, and family members. These two times co-
incide with the payment of the twice-annual bonus.
An unwritten protocol dictates what is appropriate. Levels of hierarchy are
observed closely. People know what to give to a subordinate or a boss. Importance
is attached not only to what one gives but also to where the present was bought.
A present from a prestigious and expensive department store counts for a lot more
than does the same present bought at a small neighborhood store. However, the
Japanese are beginning to change their behavior somewhat and are becoming more
price-conscious, increasingly buying gifts at discount stores. Elaborate wrapping
of the gift in special paper is declining somewhat as well, since the wrapping paper
is increasingly seen as contributing to pollution. Nevertheless, the paper bag that
shows the name of the store where the gift was bought is still an important part of
the whole gift. A gift bought at Mitsukoshi in the Ginza, for example, in the store’s
paper wrapping, still carries a certain degree of prestige. A Japanese business
professor presented a visiting professor from Belgium with several gifts: books,
teacups, and a fan, all nicely gift wrapped. As he gave the presents, he pointed out
that they came from the best department store in town.
Purchasing gifts for co-workers can become a financial burden; therefore, sev-
eral companies have started to set rules that abolish gift giving in the office. A few
years ago, such a rule would have been unthinkable because gift giving was part
of life. However, times have changed, and increasingly people are reluctant to
spend money on gifts for people to whom they don’t feel close.
The problem for an outsider is to determine what is appropriate. If one is not
familiar with the ritual, one is at a loss about what to select. Japanese business-
men appreciate gifts of whiskey. Given the price of whiskey in Japan, however, a
foreign visitor may want to secure the gift outside Japan. Nicely packaged food
items, such as fruit and meat, are welcome gifts, too. Personal items are taboo;
gifts should be neutral unless you know the recipient fairly well. Packaging also
is an issue. Elaborate wrapping is considered very important in Japan, less so in
the United States and Canada, and even less so in Great Britain. Because of pack-
aging laws in Germany, for example, wrappings may disappear completely. The
law requires stores to take back any packaging that is considered superfluous.
Under this provision, a store must keep the toothpaste carton and cartons for six-
packs of soft drinks and beer. Germany, which already restricts the amount of
household garbage, is contemplating charging garbage collection fees by the
pound of garbage. In this situation, a host may not appreciate elaborate wrapping
of presents.
280 Chapter 7

In the United States, the recipient of a gift is expected to open the gift immedi-
ately upon receipt. Doing otherwise would show a lack of interest and apprecia-
tion; it would be rude. Children are taught early on to open gifts and acknowledge
them with elaborate praise: “How wonderful; just what I always wanted!”
Germans open presents too but are more reserved in their comments. The Japanese
and Chinese, in contrast, never open presents while the giver is around. This would
be very rude because of the potential loss of face for the giver and even the re-
ceiver. Parents take great care to emphasize appropriate behavior with their
children. One Chinese mother explained that it was hard at times to ensure that her
daughter would not jump to open the present. It was difficult, but for obvious
reasons it was necessary. Chinese or Japanese who are familiar with the custom in
the United States may go ahead and open presents from foreigners. If you are not
certain, the best approach is to explain the custom of your culture and ask if it is
acceptable to open the present. Most people understand that customs are different
in different countries. They may find it strange, but they will appreciate the fact
that the foreigner asks.
In the United States, it is typical to ask whether one can bring anything when
being invited. The hostess will say “no” unless she knows the guest very well. It
all follows a ritual in which the actors know their roles. The institution of potluck
dinners where everyone brings a dish is unheard of in Europe. If one invites, the
assumption is that one can prepare the food and generally handle the work associ-
ated with entertaining. In China, it is unthinkable to bring something for dinner.
The host is gaining face by offering hospitality to guests and is storing obligation
debts to his credit.
The way people from different cultures express appreciation for hospitality
varies. In the United States, a businessperson who is invited for dinner to the pri-
vate home of a business contact is expected to write a thank-you note shortly after
the event. The Japanese tend to not write thank-you notes. Giving and showing
hospitality are part of reciprocity that characterizes a relationship. It is an ongoing
process that never ends. To thank someone with a thank-you note could be inter-
preted as a signal that the writer wants to settle the “debt” and close the relation-
ship. Germans hardly ever write thank-you notes. They say “thank you” at the end
of a visit. They are sincere in their appreciation, but they don’t send notes.

Dealing with Controversy in Social Settings

In other parts of the book, we have discussed how people from different cultures
deal with controversy in business settings. In social settings, behavior is very
strongly influenced by attitudes toward hospitality. In Arab countries, hospitality
is a sacred duty. One must be polite and considerate to visitors. Open disagreement
is not acceptable. That does not mean that Arabs cannot loudly argue and disagree
among themselves, but with a guest in the house, the rules are different. Both sides
should avoid controversial subjects.
The French, in contrast, love to introduce controversial topics and are eager to
make their points clear and disagree with each other. They take great pleasure in the
elegance of an intellectual argument. Open disagreement is a sign of a successful
 Cultural Rules for Establishing Relationships 281

evening, and everyone enjoys the verbal game. The Japanese are much more care-
ful, and disagreements are avoided. One does not argue at social functions, and as
a host it would be impolite to disagree with the guests; therefore, controversial top-
ics are taboo.
Businesspeople in the United States, who often pride themselves on being out-
spoken, avoid controversial topics at social functions. The other side, they feel, is
entitled to its opinion, but increasingly businesspeople also worry about being
accused of insensitivity to people who hold different views. It therefore is consid-
ered best to avoid discussing certain topics.
Hospitality in the United States is important and shows openness and friendli-
ness, but it does not include the same far-reaching obligations it may have in other
cultures. Opening one’s house does not mean unlimited hospitality. Americans
look at hospitality more pragmatically: It facilitates social intercourse and estab-
lishes pleasant relationships that make it easier to conduct business. Americans
generally are more concerned about creating a pleasant atmosphere even if only
for a specifically prescribed time and a specific purpose.

Holiday Greetings
Many firms in Western countries send Christmas cards or season’s greetings to
their suppliers, customers, business associates, and government contacts. The
Japanese send New Year’s cards; the Taiwanese send Lunar New Year’s cards.
When a firm starts doing business in a different culture, it must ask when, and if,
it is appropriate to send greetings and who should receive a card.
You may wonder whether it is appropriate to send cards that celebrate a holiday
in your culture to business associates in cultures that do not celebrate that holiday.
This becomes an issue particularly if the holiday has religious significance and the
other culture does not practice your religion. The answer depends on how well you
know the country and the individual. In most cultures, it would be appropriate to
send best wishes for the new year or season’s greetings for the holidays. Japanese
firms often send their best wishes for the new year to their Japanese business part-
ners, but many also send Christmas cards to their Western business associates and
friends. The mainland Chinese, most of whom are non-Christian, also send
Christmas cards. Even Chinese organizations send them, although for most Chinese
people Christmas has no spiritual significance. The sending of the greeting and best
wishes is seen as respect for the other person’s traditions and cultures. Therefore,
they want to honor their foreign business partners by acknowledging their special
holidays.
If you add your foreign partners to the list for your own culture’s holidays, they
may feel honored that you have included them, but they also may be offended. You
need to find out what is acceptable. For example, Saudi Arabia does not allow any
Christian symbols, such as the cross and the Bible, into the country. Even secular
symbols of Christmas such as Christmas trees, Christmas cards, and Santa Claus
are banned. An American businessman reported that the rubber Santa Claus he
had taken to Saudi Arabia for his son was confiscated at the airport. Iran appears
to be less strict these days. Islam prohibits eating pork; in predominantly Islamic
282 Chapter 7

countries, pork is not sold or consumed. In the United Arab Emirates, a visiting
professor from the United States who brought her cat, Porky, had to rename him
Perky, which was less offensive, on the official documents to bring him into the
country. The popular assumption is that Iran is the most fundamentalist Islamic so-
ciety, but a Western woman doing business in Iran explained recently that there
was a Christmas market in Teheran, and that one could buy Christmas trees in the
streets. People also were free to gather for Christian worship regularly, although
for practical reasons on Fridays rather than Sundays.
The timing of greetings also is important. Holiday greetings in most countries
are expected to arrive on time, preferably before the holiday. In France, however,
season’s greetings can be sent until the end of January.

Ethical Considerations in Intercultural Engagements

As we have discussed the various ways people from different cultures establish
business relationships, you may have started to wonder what the right or ethical
foundations of these relationships are. What do businesspeople around the world
consider ethical behavior? What is considered ethical depends on the cultural
background of the partners involved.
For some this may be difficult to accept. After all, many of us assume that
ethical standards are universal. We may define ethical behavior as being honest,
being fair, telling the truth, and being considerate and caring, and we may think
that these values are culture-neutral. Yet as we have seen throughout this book,
none of these terms exist in a vacuum; they are influenced and shaped by the
cultural priorities of the people who use them.
The philosophical foundations of ethics in various cultures help illustrate this
point. For example, Aristotle, a Greek philosopher, argues that a person can find
the “good.” In fact, the virtuous person will see it as his or her highest goal, or sum-
mum bonum, to find and do what is good or virtuous. Furthermore, Aristotle main-
tains that people can be taught to do what is good and that they will gain happiness
from doing the virtuous or the ethical.
Kant, a German philosopher, held that a person is not only capable of knowing
the good or the right but also has an obligation to do what is right. This is known
as the categorical imperative. Like Aristotle, Kant saw the good and the bad, the
ethical and the unethical, as opposites.
Much of Western thought has been shaped by the conviction that knowledge to
do the good will lead to the good and that there is a rational way of getting there.
Therefore, people from those cultures have strong opinions about what is right and
wrong. As a result, they have a tendency to look at ethics as an either-or concept.
They know that there is a gray area, but generally ethical standards are seen as
absolute and objective. This view holds that ethics can be legislated, as the United
States has done with the Foreign Corrupt Practices Act (also see Chapter 10). Not
all Western countries accept this view; they may look at bribes as unethical but a
necessary evil. For example, in Denmark a company can claim a tax deduction for
monetary payments to foreign companies in countries where such a practice is
 Cultural Rules for Establishing Relationships 283

common. The pragmatic Danes recognize that their ability to compete interna-
tionally will be compromised severely if they cannot offer the under-the-table
incentives their competitors can. Typically, these bribes are labeled “entertain-
ment” rather than bribes, but everyone is aware of the practice. Recently, however,
the European Union moved toward disallowing bribes as a legitimate business
expense for both ethical and pragmatic reasons. It decided that bribes ultimately
were too expensive and were distorting the market.
If there is a universal ethical standard, a universal standard of right and wrong, it
should be possible to clarify standards through rules and laws and thus ensure that
everyone understands and accepts the standards (also see Chapter 3). An Aristotelian
human resources (HR) manager recognizes that there is a “good” that is knowable.
At the same time, the manager tries to ensure that employees are acting in accor-
dance with company rules and guidelines. The HR manager will attempt to inculcate
good or virtuous habits in the employees to carry the company to the good.
Philosophers in East Asia have taken a different view. Daoism, for example,
sees reality not as an either-or proposition but rather as a holistic unity that
encompasses all aspects of reality. In Daoism, as in Western philosophy, people
have an obligation to do the virtuous; however, the virtuous is not absolute. It is
impossible to have the absolute good or the right because reality consists of both
opposites. Daoists therefore are concerned about an appropriate balance in the
universe, and that balance always depends on specific circumstances that require
a careful weighing of options. Westerners, not understanding this background,
frequently refer to this view of ethics as situational ethics or opportunism. The ar-
gument is that if the circumstances dictate what is ethical, there are no standards
for ethical behavior. People from East Asia, in contrast, view Westerners as nar-
row-minded and unrealistic. In this system, the HR manager will weigh what are
the best or most virtuous practices in the particular circumstances. The Chinese
philosopher Confucius taught 2,500 years ago that one should not do to someone
else what one wouldn’t like to be done to oneself—a version of the Christian
“Golden Rule”: Do unto others as you would have them do unto you.
Islamic culture draws on yet another source for determining what is ethical and
unethical, right or wrong: religion. Islamic ethics ultimately are based on revealed
truth. Allah provides appropriate guidance for all actions. The virtuous HR manager
will act on the basis of religious principles. In the increasingly secular Western
world, this is easily interpreted as old-fashioned and fundamentalist. However, to
understand Islamic views on ethics, it is necessary to recognize the role of religion
in the shaping of ethical thought. The philosophy of ethical behavior also is influ-
enced by other cultural variables, such as group orientation versus individualism.
Businesspeople from relationship-oriented cultures may have a view of what is
ethical that is very different from that of people from results-oriented cultures.
They may use the same terms but assign radically different meanings to those
terms. Honesty may not be an absolute term but instead may be seen in the con-
text of the group from which a businessperson comes. For example, fairness does
not signify some abstract ideal but means that one is willing to fulfill one’s obli-
gations to one’s group or family. Thus, in a results-oriented society, fairness may
284 Chapter 7

dictate that a manager hire the person with the best credentials for the job, an
almost clinical decision that is separate from the person. In a high-context society,
in comparison, fairness would dictate that a manager hire a family member, the
child of a friend, or someone who has special connections. Honesty is dependent
on the context as well. Honesty may be what it takes to establish the relationship
to do business together.15
One of the challenges is that all businesspeople from all cultures judge ethical be-
havior by their own self-reference criteria. It is tempting to apply one’s own definition
of ethics to what a partner from another culture does and conclude that the partner is
unethical on the basis of those standards. Not understanding the ethical framework of
the people one is dealing with can lead to misunderstandings and frustrations.
For example, firms from the United States frequently try to avoid nepotism, the
hiring of relatives of employees, because this is seen as bad and an unfair advan-
tage. These views are related to the value placed on social equality in the United
States. To hire someone on the basis of his or her family relationship to an employee
seems to be unequal treatment, favoring people who have employed relatives and
disfavoring those who do not. Managers are afraid that the relatives may stick
together and that the resulting cliquishness may hurt the morale of the work unit.

In Focus

When a U.S. company went into Mexico, the managers took that standard with them and made it a point not to hire rela-
tives; it seemed to be the ethical decision. However, the firm found out that the Mexican view of nepotism was very differ-
ent. Employees had an ethical obligation to help relatives obtain a high-paying job in the U.S. firm. Everyone accepted that
obligation. In fact, it would have been unethical not to try to help one’s family. In return, family members understood and ac-
cepted the obligation that they had to work hard to avoid bringing shame to the family member who helped them get the job.
What originally had been seen as an ethical dilemma, giving an unfair advantage by hiring relatives, turned out to be a mo-
tivator to do good work. The company changed its standards and accepted a practice that made sense in that environment.

Businesspeople with results-oriented backgrounds typically separate the busi-

ness deal from the relationship with the other side. The goal is the business con-
nection, the contract, the sale. The relationship is superficial, just enough to do
business. It is a connection with a very specialized purpose. They may consciously
avoid any personal connections to avoid muddying the waters. This strikes people
from high-context cultures as odd. Each side may attach the label unethical to the
behavior of the other side and strain the relationship further.
Although Americans groan about high taxes, most accept the idea that it would
be unethical not to pay the taxes one owes. After all, taxes are needed to run the
government and carry out programs that help society as a whole. The Chinese have
a somewhat different opinion about those kinds of societal obligations, and many
feel they can do more good by helping their families directly than by paying taxes
whose results they cannot observe directly.
 Cultural Rules for Establishing Relationships 285

The way people from different cultures handle obligations also sheds light on
attitudes toward ethics. In places where the building of relationships is crucial to
doing business, obligations typically are seen as ongoing. By not repaying a debt
immediately, the partner signifies that he or she is interested in a continuation of
the relationship. In Japan, for example, the willingness to accept an obligation is
a positive sign. In fact, the concept of amae refers to both the willingness to take
care of someone and the willingness to be dependent on someone. In this view,
the individual is clearly tied into a relationship. Repaying the debt would end the
relationship because it would signal that the person no longer was willing to accept
the obligation. This attitude stands in great contrast to the American ideal of self-
reliance, where the goal is not to be a burden on anyone. It is expected that one will
repay one’s debts promptly (also see Chapter 4).
Pacific Island cultures are collectivist. They live within extended families, and
their values mean anyone with resources shares them with the family. Samoans
joke that the best way to manage their finances is to have a bank balance in the red,
since anyone with a bit extra will be asked by relatives to share it. The value of
sharing resources comes from the Polynesian Islanders’ historical traditions to en-
sure survival of the community. The largest Polynesian city is Auckland, New
Zealand, since more Pacific Islanders live there than in any one island town. The
traditions are outside the norms for New Zealand culture, which has a European-
descended majority population. The family member who has an income never has
any extra money because relatives expect a share. By the same token, when that
member is in need, relatives contribute and fill it.
As we will discuss in greater detail in Chapter 10, HR issues, including rules on
hiring, promotion, and safety, are tied to specific laws, but there is also an ethical
element involved. Most industrialized countries have outlawed child labor, and con-
doning any type of child labor would be seen as a violation of ethical norms. Not
all cultures share this viewpoint. In industrialized countries, childhood has been
extended to an age group that a century ago would have been considered young
adults. In developing countries, children grow up faster and are considered adults
at an earlier age, frequently around age 14; therefore, it is acceptable and expected
that they contribute to the family income. (We are not talking about young children
working in sweatshops many hours every day.) The idea that young adults should
be allowed to play when they could contribute to the well-being of the family would
be considered irresponsible.
In group-oriented societies, seniority plays a major role in establishing ranking
and order. It gives belonging and clarifies one’s status in the group. With industri-
alization, merit and individualism tend to gain in importance.16 As a result, the
basis for promotions may change from seniority to merit, and with that change,
what is considered ethical may change as well.
As businesspeople engage in relationships with partners from other cultures, they
need to be aware of the cultural foundation of what is considered ethical behavior.
One of the most crucial steps is to examine why a culture has certain ethical stan-
dards and what they mean in that particular context. As the following story illus-
trates, different views of what is ethical can lead to problems for everyone involved.
286 Chapter 7

In Focus

David was conducting a seminar in Los Angeles for a delegation of midlevel civil servants from China.
One evening David’s associate received a phone call from an office of the state’s department of motor vehicles
(DMV). The department had one of the delegates, a woman, in its office. They wanted to go home and did not know
what to do about her. The woman spoke no English but was very distraught. Here is what she told them after they found
an interpreter.
She had read an ad in a Los Angeles Chinese-language newspaper by an organization that said it could get people
documentation papers to enable them to stay in the United States. She phoned the number and was told that someone
would come to the hotel and meet her. She waited, and in about an hour two men came. They asked her to bring all her
documentation papers—her Chinese passport and her visas, both the Chinese exit visa and the U.S. entry visa for a
visitor—and then took her by car to an impressive office. It was a DMV office, but apparently the men told her that it
was the office of the organization that would help her stay in the United States. The woman could not read English. The
two men sat her in the outer office and took all her identification documents saying they needed to make copies and
would be right back. Apparently they left the building through a back door. The woman sat for hours waiting for the
men to return. Finally she called the hotel, and the hotel informed the delegation organizer.
She was the victim of some Chinese scam artists, but she also was trying to circumvent the U.S. immigration sys-
tem by using unofficial channels. This willingness to circumvent, to do things by making one’s own arrangements, is
often a strategy used by Chinese and can lead to trouble, especially in an environment where following the legal route
is considered normative behavior.

This example shows legal standards that were not observed by the woman and
ethical standards that were not observed by the fly-by-night operators who took
advantage of her—and crossed the legal line when they stole her passport. Simi-
larly, Chinese companies negotiating joint ventures with U.S. firms often expect a
U.S. company to use its “influence” to enable the joint venture to circumvent U.S.
import–export law. They believe influence exists, when in U.S. law it does not.
We all behave according to our own code until we bump up against somebody
else’s code. At that point, we need some way to reconcile differences and point to
a code we can use. Businesspeople have to make decisions regarding ethics all
the time. Richard Mead suggests there are two approaches to ethical issues across
cultures:17
• Ethical universalism—a single ethical code everybody should follow. Hofstede
connects this to individualism. The United States seems to be the key propo-
nent of this view, since U.S. culture is a legalistic, individualistic culture that
assumes that one system can operate everywhere (universalistic). The Foreign
Corrupt Practices Act is an example of this view. The problem is that this
approach neglects the fact that other cultures, such as the Danish culture, may
have a different definition of ethical behavior in business.
• Ethical empiricism—behavior is related to the group and your responsibilities
to it, and so you maintain a higher standard of ethical behavior with in-group
members. You have different standards for the different groups with which you
 Cultural Rules for Establishing Relationships 287

interact. This also extends to different cultures. This view easily comes across
as patronizing, unprincipled, and ethically suspect.
Mead also suggests some practical ways an international manager can identify
ethical norms in another culture, such as:
• Comparative analysis of ethical norms.
• Reference to institutional norms, such as a national legal system, religious lead-
ers’ teachings, professional associations, and family.
• Informal behavior guides, such as “face” in Asian cultures.
• So-called tests (the “secrecy” test—if your partner insists the deal be kept se-
cret, it may not be ethical; the TV test—would you want your deal on TV?; how
would the people you admire view it?; and so forth). These tests aren’t very use-
ful, however, because they do not come to terms with underlying ethical issues
and definitions of ethical behavior.

Summary This chapter illustrated that appropriate social and business behavior is dependent
on cultural orientation.
• Respect for authority and structuring of messages. Businesspeople will be well
served to understand the symbols of authority and power. Nonverbal behavior,
position, and appearance signal level of authority and power.
• Power distance and symbols of power and authority. Understanding where a
culture ranks on the power distance scale can be helpful when one is working
with a businessperson from another culture. The use of language is an indica-
tor of authority in most cultures.
• Assertiveness versus peacekeeping. Businesspeople from assertive cultures
may lose out on contracts and alienate partners who come from cultures that
emphasize harmony. At the same time, businesspeople from cultures that value
harmony and peace may come across as weak and indecisive to people from as-
sertive backgrounds.
• Recognition of performance. Rewards for performance are based on cultural
priorities. In some cultures, the major sign of success is a monetary reward,
such as a salary. In other cultures, nonmonetary rewards, such as recognition by
powerful people, may be a more significant recognition of performance.
• Hospitality. Businesspeople meet in both work and social settings. Each culture
has its own unique rules and customs regarding what is acceptable social be-
havior. For example, is it acceptable to mix social life and business life? What
gifts are appropriate and when?
• Ethical considerations. Different cultures have different views of what is ethi-
cal. What is considered ethical behavior depends at least to some extent on cul-
tural priorities and philosophical viewpoints.
288 Chapter 7

Notes 1. Boye Lafayette De Mente, Kata: The Key to Understanding and Dealing with
the Japanese (Tokyo: Tuttle Publishing, 2003).
2. Ibid., p. 103.
3. Geert Hofstede, Culture’s Consequences, 2nd ed. (Thousand Oaks, CA: Sage
Publications, 2001).
4. Susan Schneider and Jean-Louis Barsoux, Managing Across Cultures, 2nd ed.
(London: Prentice-Hall, 2003).
5. Ge Gao and Stella Ting-Toomey, Communicating Effectively with the Chinese
(Thousand Oaks: Sage, 1998).
6. Y. Luo, “Guanxi and Performance of Foreign-Invested Enterprises in China:
An Empirical Inquiry,” Management International Review, 37 (1997),
pp. 51–70; Y. Peng, “Kinship Networks and Entrepreneurs in China’s Transi-
tional Economy,” The American Journal of Sociology, 109:5 (2004), pp.
1047–1074.
7. Interview with H. Koga and H. Hayashida, alumni of Kanagawa University,
June 2002.
8. C. Pezeshkpur, “Challenges to Management in the Arab World,” Business
Horizons, 21 (1978), pp. 47–55.
9. W. Woodworth and R. Nelson, “Information in Latin American Organizations:
Some Cautions,” Management International Review, Winter 1980, pp. 6–69.
10. Ibid.
11. K. A. Kovach, “What Motivates Employees: Workers and Supervisors Give
Different Answers,” Business Horizons, September–October 1986, pp. 58–65.
12. Fortune Magazine, May 2003.
13. A. Ragharen and G. T. Sims, “Golden Parachutes Emerge in European Deals,”
The Wall Street Journal, February 14, 2000, pp. A17, A18.
14. Daniel Kadlec, “Where Did My Raise Go?” Time, May 26, 2003, pp. 444–454.
15. For a detailed discussion on merit versus status see F. Trompenaars, Riding the
Waves of Culture: Understanding Diversity in Global Business (London:
Economist Books, 1993).
16. Martha Maznevski, Joseph DiStefano, Carolina Gomez, Niels Noorderhaven,
and Pei-Chuan Wu, “Cultural Dimensions at the Individual Level of Analysis:
The Cultural Orientations Framework,” International Journal of Cross Cul-
tural Management 2, no. 3 (2002), pp. 275–296.
17. Richard Mead, International Management, 2nd ed. (Malden, MA: Blackwell,
1998), p. 196.
C H A P T E R E I G H T

Information, Decisions,
and Solutions
In 1768, three Scottish printers cooperated to produce a compendium of knowledge that
would bring into one set of books all the basic information on all the topics they could think
of. The result of that massive undertaking was the Encyclopaedia Britannica. For the next
200 years, all over the English-speaking world, the Encyclopaedia Britannica became the
most trusted source of information for schools and libraries. After being revised 14 times,
it was still considered the most comprehensive of all its imitators worldwide, and its schol-
arship was widely admired. In the early 20th century, its ownership passed to businessmen
in the United States, and by 1990 global sales had reached USD 650 million. But then at
the end of the 20th century, sales fell a catastrophic 80 percent.
Why? Information was no less valuable—in fact, in what has sometimes been called
the Information Age, people consulted more and more sources of information than ever be-
fore. The answer, of course, is access. Technology made information easily available right
on personal computers. The first Microsoft Encarta CD-ROM—an encyclopedia that came
already loaded on computers—appeared in 1993, and over the next five years it dealt the
venerable hard-copy Encylopaedia Britannica a crippling blow. In early 2000, the company
announced it would no longer publish its multivolume set of books, citing high costs (the
company employed 4,000 authors who wrote the articles) and lower sales.
Britannica’s last 20th-century edition sold for between US $1,500 and US $2,200 per
set. In contrast, the Microsoft-licensed Encarta was free with the purchase of a personal
computer. In past generations, people had bought an encyclopedia set because they
believed they were doing something to help their children excel in their homework
assignments. The encyclopedia gave readers a single-source access to high-quality in-
formation. By the end of the 20th century, parents were buying their children a computer
for the same reason. (Computers cost less than a set of the Encyclopaedia Britannica.)
The Britannica story to this point was about how evolving access to information turned
the print-encyclopedia world upside down and nearly killed the Britannica company.
But Britannica did not die, and that wasn’t the end of the story. In 1996, Swiss financier
Jaqui (Jacob) Safra bought the ailing company at a bargain price and made two important
decisions in order to regain sales and reassert Encyclopaedia Britannica’s position as the

289
290 Chapter 8

premier information source: to make the entire encyclopedia accessible on the Internet, for
a fee, at www.britannica.com, and to continue to print hard-bound volumes.
Then 2005 brought another challenge to the encyclopedia world: Wikipedia, the free
online encyclopedia that can be edited by anyone. Now Britannica had two competitors,
Encarta—free with the purchase of a computer—and Wikipedia. In its 2008 version,
Encarta had 62,000 articles. Wikipedia is high on the list of search returns because it has
over one million articles. In many ways, it is the realization of the ideal of the World Wide
Web originators: free, open to any contributor, easy to access, and without profit-making
middlemen. Britannica looked like it would go under this time.
But the next twist in the Britannica story is that as a direct result of the Wikipedia chal-
lenge, Microsoft made the decision in 2009 to get out of the Encarta business, and no
longer sells the product. The changing nature of information access—the very same
challenge Encarta had presented to Britannica 15 years earlier and which almost killed
Britannica—killed Encarta. Britannica had outlasted the giant Microsoft in the encyclope-
dia business.
That left Wikipedia and its imitators, which offer faster access to broader information.
However, Britannica still survives, and still sells sets of hardbound volumes.
What can explain Britannica’s survival? One key reason is that users of encyclopedias
want accurate information and need to be able to trust their sources. Accurate information
has always been Britannica’s stock-in-trade, and customers have trusted it as a reliable
source for over 240 years. Britannica remains committed to high-quality information and to
making it available to the widest possible audience.
Excellence in providing quality information is expensive. The Britannica board in-
cludes Nobel Prize winners and Pulitzer Prize winners—thinkers and researchers whose
work has achieved the highest possible recognition. Their authors are respected for their
care and accuracy, although critics have found some targets. Whereas online encyclo-
pedias are free, users have to pay to use Britannica. The company believes, however, that
information must be of a high quality to be useful, and that the market is willing to pay
to access it.
Access to Britannica has evolved as well. Britannica Mobile is an application for iPhone
and BlackBerry users who can download a 28,000-entry encyclopedia to their device. Con-
sumers now can get one million pages of quality Encyclopaedia Britannica information
wherever they are.

The Britannica story is about how a company that published reference books held
to two key principles: the enduring value of reliable and high-quality information,
and meeting the changing nature of access to it. Both are important to students, of
course. Both are also important to decision-makers in the world of work.
It is a mistake to assume that because technology can transport information
across oceans and national boundaries that information has the same definition
everywhere in the world. As we have seen in previous chapters, businesses have
different priorities because of the cultures in which they operate. That means they
define information differently, and they place different priorities on information
and on processes they need information to accomplish, such as making decisions.
Even the need for a decision is not perceived the same way.
 Information, Decisions, and Solutions 291

This chapter examines the nature of information and differences in how infor-
mation is gathered, assessed, and valued by managers and their organizations.
Next, since information is used for making decisions, various decision-making
processes are discussed. Then the chapter looks at problem solving and at resolv-
ing conflicts across cultures.

The Nature of Business Information

Business information is goal-oriented. Businesses gather information for business
purposes, not simply for the sake of general education or for collecting statistics. They
want the information in order to do something. But as we’ll see, different cultures look
for different kinds of information for different reasons to reach different goals.

The Impact of Culture on What Constitutes Information

What constitutes information? It differs along the continuum between high-
context and low-context cultures.
High-context cultures value relationships, teamwork, and long-term group
membership. People in these collectivist environments seek information about
groups in order to make business decisions. Of course, they also look at costs, ben-
efits, processes, suppliers, markets, and management structure. But knowing who
is involved is critical.
Furthermore, high-context cultures rely on subjective information that is inter-
nalized; that is, it is information that forms people’s personal views of their world.
It is made up of opinions, attitudes, deductions, and insights based on personal ex-
perience. Most importantly, information in high-context cultures is always viewed
with reference to the context: the relationships within the group, the history of the
group, the long-range goals for the group, and so forth.
Low-context cultures value independent decisions, activity that achieves
goals, and individual accountability. They rely on objective information that is ex-
ternalized; that is, it consists of data that exist independently of the person who
gathers it. It is made up of opinions, attitudes, deductions, and insights based on
measurable units. Tests of reliability and validity assess the value of data.
The U.S. business culture is more low-context than high-context, and it devotes
effort to considering the nature of business information. It is a culture whose mem-
bers like to define terms and pin down explicitly what they mean. Information in
the United States is explicit and often it is quantifiable.

The Assessment of Information

Information used for specific communication objectives is usually assessed as to its
reliability and validity. Both high-context and low-context cultures look for
reliability and validity of data, although ways of defining those characteristics vary.
Reliable generally means that the information is consistent, timely, and stable. The
same information could be gathered again at another date from the same people, using
the same means, provided the factors in the situation are the same. It doesn’t depend
292 Chapter 8

on the emotions of the information-gatherer or the people involved. Reliable sales

figures for the month of March are not subject to variation depending upon whether
the sales manager is angry with the production manager.
Valid means that the information is about what it purports to be about. Infor-
mation from a parts supplier about the availability of a part for an assembly job is
valid when it refers to that specific part, not to another part. Unless the informa-
tion is indeed about what it claims to be about, it is not valid even if the measure
(say, the quantity of that part manufactured per month) is reliable.
People who make decisions value information. Managers want lots of infor-
mation, and they want it to be useful in the decision-making process. Managers
often ask subordinates to supply information so they can make good decisions.
In many contexts, effective managers give their subordinates lots of informa-
tion when they explain an upcoming decision so that their subordinates understand
the direction of the decision. When subordinates have information about the larger
objectives and goals, they are more likely to feel a commitment to them. Their
commitment can grow if they are informed about the background to a decision:
the history, the reasons, the long-term objectives. Managers also feed information
to subordinates to generate feedback of information.
As discussed in Chapter 5, the logic businesspeople use to assign meaning to
information is determined by culture. Western logic tends to look for rules, such
as the rules of syllogisms. East Asians tend to look for syntheses, including over-
arching concepts that embrace contradictions. Westerners see objects with attri-
butes that don’t change. East Asians see relationships and contexts that constantly
change. Businesspeople cannot assume things add up the same way in all cultures.

The Possession of Information

Information is a useful resource in competitive situations. A person or group that
knows what another does not know has an advantage. Let’s say you are one of two
candidates for a position, and your interview with the hiring team is next week.
You’ll want to find out everything you can in order to strengthen your candidacy.
If you are working within a low-context, results-oriented culture, you’ll want to
know the job description, the qualifications the team is looking for, and the things
it values in an employee in that position. You’ll also want to know what strengths
and weaknesses your competitor has, if possible. This will give you some power in
the interview to respond and perhaps even direct the conversation.
If you are working within a high-context, relationship-oriented culture, you’ll
also want to empower yourself for the interview, but you may want different kinds
of information. You’ll want to know who the people are on the hiring team and who
will have the greatest say. You’ll want to find out what links (connections between
people) you might have with the hiring team—common interests, acquaintances,
experiences—and others you’ll be working among if you are hired. You’ll also
want to know what links your competitor has with the hiring team and the organ-
ization. Of course, there are many other factors you’ll want information about as
well, but the point is that in both high- and low-context cultures, information is
power and confers an advantage—even when the nature of the information varies.
 Information, Decisions, and Solutions 293

In organizations in high-context cultures, in which the career path of an indi-

vidual is closely tied to the team or group of which the individual is a part, infor-
mation is “owned” by the group. Individuals share information. This is related to
the cultural priority discussed in Chapter 4 about what is private versus what is
public, as well as to the cultural priority about permanent group membership. In a
high-context culture like China, for example, little is not shared. Information
belongs to the group, not the individual. That way, individuals are linked together
into a collective.

In Focus

In China, one of the authors was a visiting professor and she discovered a different attitude toward confidentiality, to
her chagrin. She had written a personal assessment of each student at the end of a course. She had given each stu-
dent a personal copy and had given the whole document, labeled “Confidential,” to two people only: the chair of the
department in which she taught and the president of the university. She was amazed when she saw her confidential
evaluations published in a university-wide periodical, complete with the “Confidential” heading duly translated! As a
Westerner, she had not understood the collective ownership of information.
Human resources management implications come out of this different attitude toward information about people. In
New Zealand, people zealously keep personnel data private. Teachers go through elaborate procedures to ensure that
students do not have access to each other’s grades. In business, it is the same. Evaluations are confidential. The right
to privacy, like many other rights in low-context cultures, comes from an individualistic cultural dimension.

Ingroups Information is a link that joins people in a collective or group. For ex-
ample, Thais seeking employment include not only university education on their
résumés but also high school education.1 That’s because they may have gone to a
school that a member of the royal family or some other aristocrat attended. That
links the candidate to a high social status and would link future co-workers as well.
Shared information creates an in-group in both high-context and low-context cul-
tures. It is a community of the knowing, the knowledgeable, the ones in the know.
From secret handshakes and codes in social organizations to vacation experi-
ences in specific locations to membership on boards or committees, information
that is shared by the group but not by those outside the group defines membership.
In group-oriented cultures, what is known by one member of a group may well be
known by all members of the group. In individualist cultures, what is known by
one individual is not automatically the property of the group. One who knows has
a power others do not have, and when one chooses to share the information, a link
is forged and a group is formed.
In individualist cultures, in which the career of the individual is to a greater
extent the individual’s own responsibility, information is owned by the individual
and shared judiciously when the individual will benefit. In Australia, for example,
individuals value the confidentiality of information and do not share it. If a job
candidate has had a link with a prestigious person, the candidate might use that to
294 Chapter 8

enhance his or her status, but co-workers would not expect to be included in the
linkage or to benefit from it.

Information Gathering Imagine a culture that views change as negative, that

values being rather than doing, that considers the group a basic unit of society and
individuals as fractions of the whole basic unit, and that looks upon its own cul-
tural priorities as the only ones worth holding. Then imagine someone—probably
a foreigner—coming in to ask questions and gather information about behavior,
preferences for products, prices paid for goods, and other market data. Such in-
quiries will almost certainly be treated with suspicion, resentment, and hostility.
The way business information is defined and gathered has to be put in the context
of a specific culture.
The collection of information in a carefully designed research study is deter-
mined by the researcher’s paradigm, as discussed in Chapter 1. Positivists believe
the researcher stands outside what is being investigated, is objective, and has no
impact on what is being researched. Conclusions about what the findings mean are
generalized to apply to other situations. Interpretivists, on the other hand, believe
the researcher is interrelated with what is being researched, and that the research
impacts it and therefore cannot be absolutely objective. The information collected
is rich in detail, but cannot be generalized widely. These two research paradigms
are the conceptualization of Western minds, which tend toward dichotomies
and mutually exclusive alternatives. In reality, most research is a combination of
paradigms.

Information Is Power
In all cultures, information creates and reflects power, depending on who has it,
how it is used, and to whom it is transmitted or not transmitted. It distinguishes the
“ins” from the “outs;” thus, whether or not you share the secret reflects your social
standing. And so vice versa, any information restricted to an elite is perceived to be
important, perhaps even when it has little instrumental value.2

Businesspeople speak of the importance of “getting all your ducks in a row”—

an image from a fairground shooting gallery—to refer to the need to have all the
pieces of information possible and understand how they fit together before
revealing one’s intentions to others. That is a way to minimize the risk that a pow-
erful person with more information could come between you and your objective.
A young Thai executive in a finance company came up against a boss who refused
to tell her what was involved in his job and refused to train her. After all, status came
from what he knew that nobody else did. She reported the following:
He will not tell anybody what he is doing, even me. He is frightened that we are
going to take his job. He’s old, he has to retire in four years. Everyone respects him
because he’s old and he’s the only one who has the information. He just likes to give
orders and nobody can say anything because we don’t properly understand. Even
[sic] he won’t help me although our managing director told him to. . . . When he
goes, the company can easily go bankrupt because we don’t have his knowledge.
So I have to go abroad for training and then come back and train other people.3
 Information, Decisions, and Solutions 295

Formal and Informal Information

Information can be characterized as formal and informal.

Formal Information
Formal information comes from four sources:
• Publications and public information from radio and TV
• Observation
• Interviews and surveys
• Experimentation
The methods for accessing information from these sources are the same across
cultures. For example, experiments must follow certain procedures to yield valid
results, such as control of variables, selection of subjects, and explicitly identified
equipment. Then another researcher can repeat the experiment exactly. The use of
published information involves documenting the sources carefully so that another
researcher could consult the same sources. Similarly, observation has to be de-
scribed so another researcher can duplicate the observation and get the same re-
sults. Interviews and surveys involve questionnaires that should be designed
carefully and be pre-tested before data are gathered. They also should be open to
scrutiny by other researchers.
The information yielded by these four methods is thus presumed to be untouched
by the researcher’s personal and subjective bias. In other words, it is considered
objective data. Low-context managers think that objectivity ensures a greater degree
of accuracy.

Informal Information
Informal information that is subjective often comes through a “grapevine” or an-
other informal network inside or outside an organization. Subjective data can also
be useful because the emotional bias as well as the data are useful information for
the gatherer that can affect a decision. If the informal talk about the implementa-
tion of a training program carries emotional messages of suspicion and fear, a
manager can respond to that emotion, allay fears and suspicions, and thereby
possibly increase the likelihood of success of the program.
One reason talk-with-contacts information may be more valuable than formal
information is that it is always within a context. The source and the information
gatherer assign meaning within a context. High-context managers think under-
standing the context and the people ensures a greater degree of accuracy.
Informal information from the Internet is easily available—so available, in fact,
that it is often mistaken for formal information. Informal communication channels
such as online chat, social networking sites like Facebook, and blogs, give people
who have never been introduced to each other an opportunity to discuss pretty
much anything. This is a greatly expanded “grapevine” that provides access to a
breathtakingly broad range of informal information. For example, you can find out
what’s happening at a company by chatting online or reading a blog or exchanging
296 Chapter 8

e-mails with an employee, even if you never learn that person’s real name. You can
learn what people really think about someone they work for before that person is
hired by your company. You can find out what people who bought a product really
think of it. Chatting online involves participants engaged in an immediate personal
dialog carried in an authentic “voice.” People communicate in an unmediated and
direct onscreen conversation that seems to give more trustworthy information than
does an official company press release or memo. Electronically facilitated con-
versations also go on among employees of companies, often through an intranet,
or a network that serves specific users.
But the unfiltered information also introduces a whole host of new problems.
Verification of information may be more difficult. Anyone can put information on
the Internet, regardless of its accuracy. Just because something appears on a Web
site that looks impressive doesn’t make it true. Publicly edited information sites
such as Wikipedia, to which anyone can provide information (although Wikipedia
has announced that it will have all new entries reviewed by a board for accuracy),
don’t distinguish between majority and minority views, and that is both the great
virtue of this most democratic of electronic media and its greatest drawback. Web
sources’ authenticity, trustworthiness, and credibility need to be verified.
Employees increasingly communicate by using their natural voices through
company weblogs, or blogs. Blogs, electronically published and frequently up-
dated logs or diaries of what people are thinking and working on, have exploded
all over the Internet. They are also the material people tweet using Twitter and sim-
ilar sites that allow communication from an individual to many recipients at once.
Today, millions of people engage in personal electronic communication that is
public. People air their views on a wide range of topics, from company products,
to specific experiences, to political opinions. It is word-of-mouth on a global scale.
And just as marketers plant their representatives to spread word-of-mouth mar-
keting campaigns, political messages are being transmitted through social net-
working sites in countries around the world. Thanks to smartphone technology, the
messages are not only text but include audio and video as well.
The line between employee communication and personal social networking
communication is blurred, as more organizations are turning to Facebook and
its like to facilitate employee communication. Employees using personal hand-
held devices can send out e-mails, photographs, meeting minutes, ideas gener-
ated by informal conversations, ideas that result from individual pondering,
general advice, specific solutions to problems, and all the other content that
makes up a company’s knowledge base. The communication is horizontal, not
top-down directives or bottom-up reports. Communication is direct unmediated
discourse in an authentic voice. It doesn’t sound like the official language
of business, which conforms to norms of business discourse. Customers and
employees alike are increasingly engaged in a conversation through informal
communication channels like blogs and Q&A sites in the “real” voice of every-
day people. As a result, the voice companies used in the 20th century has had to
change. The distant paternal tone that said the company knew best what people
needed is not so persuasive today.
 Information, Decisions, and Solutions 297

With the increase in online employee activity, an increase in employee-monitoring

software has developed. Companies can track what computer applications an
employee uses and what keystrokes an employee makes. Software can monitor and
store e-mails and their content. Sites accessed by employees can also be monitored.
Although these “eyes over the shoulder” of employees make some uncomfortable,
monitoring software has helped companies recover productivity that had been lost to
hours spent online. In the United States, monitoring software also helps ensure that
companies are in compliance with the Right to Privacy Act, which regulates what
information can be published. In other countries, monitoring may be done to ensure
that only approved Web sites are accessed.

In Focus

The authors of We Blog predicted in 2002:

To date, there hasn’t been a lot of discussion of intranet weblog use because there’s little opportunity to examine what’s
happening behind corporate firewalls with weblogs. If weblogs were icebergs, what you’ve seen online are only the tips.
Business weblogging’s potential is the vast expanse hidden from view beneath the surface. Just because you can’t see
intranet weblogs in action isn’t reason to believe they don’t exist, or to overlook the tremendous potential of intranet blogging.
From meeting notes to project or task-based weblogs, the ease of use of weblogging software and the chronological format
of the weblog can transform an intranet site into a vibrant, engaging, and useful online resource.4
Today that blog prediction has become standard practice for many organizations.

Soft vs. Hard Data

Another characteristic of information that varies with cultures involves what is
known in English as “soft” and “hard” data. Hard data are often numerical. Of
course, as you know, statistics can be used to mean anything. Numbers are val-
ued because they appear to be objective and verifiable. Numbers supposedly
could be duplicated by another statistician looking for the same information in
the same places.
Figures that show quarterly earnings, for example, seem to be incontrovertible.
But in fact they may not measure the same things in different organizations.
Market share figures can include or exclude factors, and so they can vary from
company to company and product to product.
Relevance and appropriateness of data are culturally defined. High-context
cultures with market economies like Japan may identify “relevant” data differently
from low-context cultures such as Europe and the United States. For example,
issues involving family or obligations may count more than hard data. A Korean
father who founded a family noodle shop may not be the fastest worker (the most
productive), but it is important to him to make noodles, and the loss of face he
would suffer if his children were to decide to replace him would make such a
decision impossible.
298 Chapter 8

Soft data are estimates, non-numerical projected trends, guesses, and supposi-
tions. Businesspeople sometimes talk about “flavor” when discussing imprecise
characteristics of a product or market or partnership, or they talk about “feel.” For
example, a Middle Eastern company that wants to import cotton fabric may order
more patterns with green because of a guess that consumers will prefer the color
green, since it is identified with Islam.
Much information is not quantifiable but nevertheless is important. For exam-
ple, employees may report they enjoy working in a particular department within
an organization, but they may not be able to say exactly why.

Criteria for Business Information

A number of criteria exist for assessing business information, regardless of its
source:
• Verifiability
• Trustworthiness
• Accuracy
• Credibility
We’ll consider each of these criteria.
Information gatherers often wonder whether data can be verified. That
means confirming the information with another unrelated source. When Lexus
receives information about the success of its North American advertising cam-
paign for the IS250 car from its advertising agency, it will ask its sales depart-
ment for confirmation. When Dow Chemical Company receives information
from a construction contractor about the scheduled completion date for a plant
in Kuwait, it will ask for information from other divisions with previous expe-
rience for confirmation.
Another criterion is trustworthiness. This is related to the source of informa-
tion. If the source has proven correct in the past, the source is probably trustworthy
now. Newspaper articles frequently quote a “reliable source”; the author of the ar-
ticle has had some reason to believe the source’s information is correct and has
probably confirmed it with another independent source. Sources are trustworthy if
they are accountable—that is, if they can be called on to verify their information.
Nationally known publications and news media that are shown to be untrustworthy
lose credibility (and therefore market). Trustworthiness also applies to the infor-
mation itself—the degree to which one can count on or have confidence in it.
Is the information accurate? This is a key criterion for the usefulness of infor-
mation. A businessperson who asks about the market for cellular telephones in
Nairobi wants data that are as accurate as possible. Obviously, the answer depends
to some extent on the source and the verifiability of the information. In some
cultures, accuracy is not verifiable and businesspeople have to make do with the
best information they can get. If they wait for what they believe is accurate infor-
mation, they may never make the decision.
Another criterion is credibility. Can the consumer of information believe it? If
information seems too good to be true, it probably is. When production turnaround,
 Information, Decisions, and Solutions 299

construction schedules, costs, or potential market figures are much more favorable
than you had believed they would be, they probably are not believable, and you are
right not to believe in them. Information that looks odd may be odd.
These four criteria—verifiability, accuracy, trustworthiness, and credibility—
have been discussed from the point of view of the authors of this book. That point
of view is low-context, with a priority on hard data and information sources that
meet the criteria discussed here. But the criteria are culturally defined. They mean
different things in different cultures.
In the absence of shared definitions of the criteria for business information,
business decision-makers need to be flexible. They need to adopt new definitions
about information. For example, they may need to look at the connections (people)
of their sources or the validity of contextual signals.
Information, like everything else in business communication, is culturally defined.

Sources of Business Information

Managing the information tidal waves that threaten to drown gatherers is a big job in
itself. In fact, an industry exists to offer information about how to manage information.

Formal Sources
It is assumed in the United States that the collection of personal information about
people is acceptable in many situations. Europeans have a rather different attitude. For
example, the United States keeps detailed cancer statistics, including follow-ups and
the effectiveness of treatment. Patients are not identified by name, but the informa-
tion is collected and managed. In Germany, no such research bank exists because hos-
pitals are not allowed to collect that information. It is considered a violation of
privacy. This has ramifications for determining the effectiveness of treatment options.
Information is gathered by a wide range of information services and made
available in libraries, newspapers and other publications, nonprint media like radio
and television, and online sources. Information is gathered by private companies
that sell it, such as J.D. Power and Associates, which does analyses of automobiles.
Information is gathered by independent researchers who make their findings
public and who are often funded by public sources. Journalists gather information
for publication. Academics gather information for publication. And information is
gathered by governments and published in documents available in libraries.
Organizations and individuals publish information on the Web.
Online information is proliferating at an astounding rate. In August 2008, there
were over 8.05 billion pages on the World Wide Web.5 Access to Internet informa-
tion is increasing by great leaps: In 2003, the number of Internet users was over
700 million worldwide. By 2009, the number of worldwide Internet users exceeded
1.668 billion, with more than 700 million users in Asia alone.6
Gathering information is taken for granted as a valid business activity in Western
cultures. It is necessary and reasonable for businesses to gather and use informa-
tion. In non-Western cultures, however, especially in societies with governments
or research institutions that look upon their information as exclusively theirs,
300 Chapter 8

In Focus

Information she has just received about the size of the market in Malaysia for Fisher-Paykel kitchen appliances looks
odd to New Zealander Naomi King, a marketing manager. The information lacks verifiability and accuracy, and she is
unsure about the degree to which it can be trusted. However, it seems it is the only information available. Her Malay
informant, to whom the context of the information is well understood and the implications for its use are obvious, thinks
the information is extremely helpful. He gathered the information from people whose judgment he trusts and whose
experience he knows to be extensive. Importantly, even if the information is not as accurate as Naomi would like, it is
considered trustworthy by the contacts who supply it to her because their Malay sources will put their reputations at
risk to stand by it.

gathering information can be dangerous. It threatens the sources that control in-
formation. Since information is power, holders of information don’t like any
dissipation of that power. In addition, the act of gathering information can seem
threatening to people who have had information about themselves used against
them. In different cultures, people who gather information about others and
hold it secretly, from secret police in dictatorships to powerful military rebels,
generate fear.

Informal Sources
The grapevine—the informal information network—flourishes where formal official
information is limited. The secretary to the president, someone in the mail room, a
good friend of a relative of the chairperson, a confidant of the director—these are the
kinds of sources with the greatest credibility in an informal network. Informal Inter-
net sources also have greater credibility when they are known persons or entities.
People from open-information cultures who are used to formal sources that of-
fer reliable and accurate information tend not to place much value on factual in-
formation that comes from informal sources. But informal sources of information
may be much better at revealing the context than formal sources are, and informal
information may be more accurate than the official version.
In some cultural environments, unofficial spokespersons, unsigned newspaper
articles, and references in an organization’s internal documents can be reliable
sources. They not only provide data but also interpret the data, and interpretation
means putting the information in context.
Businesspeople unaccustomed to reading contextual signs are at a disadvantage
in high-context cultures. Those with cultural interpreters who are able to decipher
the context get information earlier than their competitors who rely on “hard” facts
and published sources.
Internet sources and informal personal contacts have made informal informa-
tion much more important than it was only a decade ago. However, issues of
verifiability, trustworthiness, and accuracy are still important. Some critics of par-
ticipative information sources like YouTube are skeptical about their merit, seeing
 Information, Decisions, and Solutions 301

In Focus

For example, in Bangladesh, a couple of American businessmen met with the Minister of Textiles. They were seeking
a favorable garment quota allocation. The Americans had been told that a competitor from abroad had been turned
down on a similar request just recently.
The meeting took place on a typically hot and humid day in Dhaka. The Minister’s office was equipped with an air
conditioner, but it apparently wasn’t working. The Americans made small talk while they suffered and sweated in the
hot dark business suits their consultant had told them to wear. The Minister was cool and dry in his tropical linen.
After almost 90 minutes of conversation that seemed to the Americans to be going nowhere, the Minister stood up
smiling and told them he would grant their request. The Americans were happy, if a bit puzzled. The next day their con-
sultant told them he had had a conversation with a contact in the government. He had learned through that informal
source that the Minister had deliberately turned off his air conditioner to subject the Americans to a kind of test.7

them not only as “soft” information sources but also as biased, opinionated, un-
monitored, and unfactual. Proponents see them as calling forth the knowledge, ex-
perience, creativity, and imagination of the unnamed masses of people who use
them. Most people have a story about some information learned from someone
through the Internet that solved a problem.
Some people find these myriad ongoing conversations a kind of exploitation
of people as unpaid sources of work and expertise. Others find these multiply-
ing connections between people an expression of democracy that was the origi-
nal vision of the World Wide Web, allowing people to access an expanding sea
of information.

In Focus

After Britannica and Wikipedia became involved in a public mud-slinging over which encyclopedia had more errors of
accuracy, the former editor-in-chief of Britannica, Robert McHenry, made an unflattering analogy. He likened
Wikipedia to a public toilet facility. He said that you may find it isn’t altogether clean, so you are very careful, or you
may find it is quite presentable, so your anxieties are lessened, but the bottom line is that you never know who was
there before you.8

Information and Knowledge Management

In recent years, the availability of information has transformed not only the way
businesses operate but the very economic environment in which businesses exist. In-
formation technology or IT has changed the way information can become knowl-
edge. Electronically available information converts to useful business knowledge.
302 Chapter 8

Small businesses can compete with big companies in terms of business information.
Employees have access to more information and, as a result, express greater satis-
faction with their work.
What is “knowledge” within a company? The example from Thailand on page
294 illustrates what this means: the accumulated experience, understanding, con-
tacts, and information that exist within the minds of employees. Companies are
right to view this intangible resource as valuable. Capturing what employees know
so that knowledge can be accessed in the future can give a company a competitive
edge. To take one example, an employee who has experienced a posting overseas
has gathered considerable knowledge that she can pass on to the person who
replaces her.

In Focus

Anupama Joshi has worked for Hinduja TMT, a large Indian conglomerate with a strong IT services sector, for 12 years.
Recently she has been working with a client in Belgium, KredietBank. While there, she helped secure other clients for
HTMT in Luxembourg and Switzerland. During her time in Brussels she learned a great deal about how to communi-
cate effectively with Flemish-speaking Belgians as well as other Europeans. She can save HTMT a great deal of money
if she can communicate what she has learned to the person who will follow her. She has worked with Ms. Arathi
Vedantham, the Manager of Corporate Communications, to devise ways to capture her knowledge so that her re-
placement can quickly step into her shoes when she returns to Bangalore, India.

To capture and capitalize on this knowledge, companies must come up with a way
to manage information. When managing information involves technology, it is an IT
function by which knowledge is stored in databases so others can access it.
In developing economies, companies leapfrog into up-to-date IT much more
quickly than observers in developed economies may realize. They have a “late-
comer advantage” in not having to invest in the development of technology,
but just adapting what has been developed elsewhere. In older economies, the
availability of more timely information in recent years has enabled business man-
agement to reduce inventory and eliminate unproductive workers. The extraordi-
nary surge in technological innovation, particularly in information access, has
given companies worldwide a new awareness of the need to manage information.
Of course, the huge gaps that have existed between people with technology and
world citizens without it is closing. The global population is over 6.83 billion.9
Although many people in the world have never seen a computer, let alone used
one, the number of computer owners is estimated to be 1.3 billion, or one in five.10
Ten years ago, Manhattan had more telephone lines than all of Africa; today Africa
has more phone lines than both the United States and Canada combined.11
Technology is spreading fast. As long ago as 2000, on a visit to India, for-
mer President Clinton was amazed to see in a small poor village a computer,
operating in both Hindi and English, that a person with basic literacy skills
 Information, Decisions, and Solutions 303

could operate. A young mother demonstrated that she could access a Web site
complete with good graphics from the health department in India to get infor-
mation about what a mother should do during her child’s first six months.
She printed out the information and took it home. In another village, a dairy
cooperative tracked its output by computer and satellite-delivered information.
In Bangladesh, the Grameen Bank launched a project to finance a cell phone in
every village. That way, poor villagers were connected to the rest of the world.
The International Telecommunications Union (ITU) of the United Nations
published a report in 2009 that stated six in ten people in the world pay for mo-
bile phone technology, and two-thirds of the payers come from developing
countries.12

In Focus

A World Bank representative went to Ethiopia to determine how the World Bank could assist in the development of
e-business. He thought he was going to deal with people who had no experience or understanding of e-business, and
he said to a group of local businesspeople, “Does anybody here know what a Web site is?” Someone raised a hand
and said, “I do; I have a Web site.” The World Bank employee asked how he could have a Web site in Addis Ababa,
since there were no household connections and few computers.
The Ethiopian said, “It’s very easy. In the United States, cab drivers in Chicago, New York, and Washington are
Ethiopian. And what they want to do is send goats to their families in Ethiopia. So I’ve opened a Web site in New York.
I go to my cyber café here every day, and I collect the orders from the cab drivers in the United States to send goats
to their families in Ethiopia.”13

In organizations, people gather information primarily for making decisions.

Business information and business decision making are closely linked. We began
this chapter talking about information and what it means in different cultures. Now
we will turn to the subject of decision making.

Decision Making
The ways people in different cultures make decisions is an important factor in
cross-cultural encounters. The principles governing decision making differ and are
culturally based. Take the decision 12 people who serve on a trial jury must make.
They may have 12 different ways of arriving at a judgment about the defendant.
Some might draw up complex charts of pros and cons, “guilty” and “not guilty”
indicators. Others might add some kind of weighting factor and add up the
numbers. Still others could lock on to a key piece of evidence and take that as the
deciding factor. One or two may go by something more intuitive.
Within a culture, people use a variety of decision-making strategies. Business
decisions are usually based on hard data, although decisions are sometimes based
on feelings or luck. The variations in decision-making practices come from cul-
tural priorities.
304 Chapter 8

Making Decisions Based on Ends

Companies in low-context cultures make decisions by focusing on results, or ends.
The Ford Motor Company decides to lay off thousands of workers because that
will enable the end-of-year profits to be higher. Philip Morris, an international
tobacco company, decides to lower the price of its cigarettes in order to increase
the volume of sales and stop erosion of the market share to generic brands. Möven-
pick, a Swiss-based company, decides to open a new café in Madras and close a
café in Montréal because the shift in the economic levels of those populations
means the market has changed.
The cause-and-effect thinking of low-context cultures means they argue from
causes to effects and back. They measure profits or market share or number of
clients and look for reasons; then they identify other reasons that they believe will
result in better profit figures, bigger market share, or larger numbers of clients. For
instance, people who make staffing decisions with ends in mind often have to lay
off employees who cannot contribute to the achievement of the organization’s
goals and hire other employees who can. These decision-makers are valued by the
organization.
Decisions also are driven by personal goals. That is, personal decisions also are
based on an assessment of results in low-context cultures. An employee will de-
cide to work here for five years to accomplish a specific personal goal, and then
he or she will be prepared to move over there with the purpose of accomplishing
a different goal.
Employees at many levels get to make decisions in organizations in ends-
oriented cultures like the United States and Canada. True, at the lower levels they
may only be small decisions that are easy to make. But the employees can be held
accountable for their decisions, and that helps the organization measure and
evaluate their employees—and employee evaluation is another of the organiza-
tion’s goals.
Making business decisions in English-speaking business cultures usually in-
volves subdividing points and issues and dealing with the subsections in a spe-
cific order until everything has been addressed. Clarification of detail is
important so that the relationship of subsections to the larger issues can be un-
derstood. Cause-and-effect relationships are established. “What if?” questions
are posed, and potential answers are offered.
In Europe (France, Germany, and Holland, to name a few countries), organiza-
tional decisions are based on results, but not so many people in an organization
make them. In France and Germany, a very few at the top of an organizational
pyramid make decisions. In Holland, the few may be a slightly wider circle, but
people in the lower levels do not participate. This is a meaningful difference from
Canada and the United States. One cannot expect someone in a middle-level
position in an organization in Europe to influence a decision of any magnitude.
Canadian and United States companies often delegate authority to make decisions
to their representatives, even midlevel ones.
Finally, in low-context cultures that value achieving goals, making decisions can
be a goal. There is a tendency to consider a decision as an end in itself. Management
 Information, Decisions, and Solutions 305

practices often involve making decisions as a form of action. A matter has been dealt
with when a decision has been made.

Making Decisions Based on Means

Companies in high-context cultures make decisions based on means. That means
the possible effects of the decision on people, processes, organizations, and out-
comes are all considered. Means cultures are people cultures in which relation-
ships matter more than results.

In Focus

Juan Carlos Aguilar has decided to use Luis Calderon’s firm as a supplier for his graphic arts company because he has
met Calderon several times in social situations, and over a long breakfast last week Calderon assured him of his firm’s
ability to supply what Aguilar’s organization needs. This decision has been made in spite of the fact that Calderon’s firm
is known in the industry as having a hard time shipping promptly and shipping correct orders.
Another firm has sent Aguilar a promotional mailing with impressive figures, but Aguilar knows nobody in that firm.
It also sent a representative, but Aguilar wasn’t impressed when they met briefly in his office. He will go with someone
he feels he can trust personally.
When Aguilar wants to promote his ability to produce printed materials using a new color process to a government
official, he has a third party arrange a lunch with someone close to that official, say a lower-level official. In this case,
the third party happens to be the lower official’s brother-in-law, whom Aguilar knows. The friend and brother-in-law is
a go-between.
He and Juan Carlos and the lower official will meet, have drinks and order a meal, and talk about family and other
things. Then Juan Carlos will inquire about the lower official’s responsibilities so that Juan Carlos, in response to what
the lower official and the go-between say, can appear very impressed with the lower official’s position, responsibilities,
cleverness, and so forth. Then he will ask the lower official—who has thus been established as wise and well con-
nected—to recommend a higher-level official Juan Carlos could talk to about his new color process and printing ability.
If possible, Juan Carlos will get a card from the lower official. Then he will approach the person recommended and
use the lower official’s name. The higher official will usually be in a position to make decisions or influence them. That
person may be impressed that Juan Carlos knows the lower official (Juan Carlos will say, “Oh, yes; in fact we had lunch
the other day”). Because of the chain of contacts between people from Juan Carlos, through his friend the brother-in-
law of the lower official, to the lower official, and then to the ultimate target, a decision may be made in Juan Carlos’s
favor, to use his company’s services. Juan Carlos will owe his friend a favor for his work as a go-between.

Where decisions are based on means, trust is a key issue. Hard information, sta-
tistics, and measurements are not as important as trusting a relationship.
Chains of relationships linking people in networks of favors owed and granted
exist in most high-context, or means, cultures. In Hong Kong, for example, the
connection of people by the reciprocity of exchanged favors, called guanxi, is an
important factor in decision making
Another key issue is solidarity within one’s group. In the early 1980s, an interna-
tionally renowned steel company in Japan entered into a contract to supply steel to an-
other Asian government when it was not feasible to do so. The company could not meet
the deadline at the agreed price. But the honor of the company and the honor of the
306 Chapter 8

country were at stake. The company performed the contract to the last letter but suf-
fered a great financial loss doing it. The contract wasn’t so important in itself, but not
losing face as an organization, and as an organization representative of the Japanese
nation, was very important. It outweighed the cost in money of fulfilling the contract.
Managers take personal responsibility for decisions in Western, low-context
cultures. A manager’s power comes in part from this role, and when decisions have
good results, the manager wants to take credit for them. But managers in non-
Western cultures are the opposite. As Victor writes,
In Asian cultures, the powerful eschew decision-making . . . In the West, power is
demonstrated by the ability to override the dictates of social pressure. By contrast,
in Asia, the social order is seen as designed for those in power, and thus power is
enhanced as it adheres to—rather than overrides—that social power.14

China’s culture diffuses decisions and ultimately spares the powerful from hav-
ing to take responsibility for them.15 In China, decisions are made with reference
to relationships. The process involves gathering opinions and arriving at a con-
sensus among the group in an informal way. If a group cannot be consulted, his-
torical precedents are. In other words, the group is expanded to include people who
made well-known decisions in the past. Mao Zedong, Chairman of the Chinese
Communist Party and the leader of China until his death in 1976, used historical
precedent for some of his decisions, quoting events that had taken place over 2,000
years earlier. Although he had extraordinary powers as the head of the party that
ran the country, he needed to present his decisions as the result of consensus
between himself and a group—in this case, a group of famous heroes from China’s
long past. Decisions thus are linked to former decisions, and decision-makers
join the company of renowned heroes in Chinese history. Relationships are how
business gets done. Results-based issues that occupy decision-makers in low-
context cultures are unimportant compared to fostering and nurturing relation-
ships, especially relationships between greater and smaller political entities.

In Focus

In Ceqikou, a village outside a suburb of Chongqing in Sichuan province, a fine wide highway crosses a creek that
swells in the rainy season—and comes to an abrupt halt on the bank on the other side of the creek. Trucks that bring
goods to the village have to turn around and be unloaded onto handcarts, since the village lanes are narrow and paved
with cobblestones, and thus the trucks can’t use them. The Chinese built the road because someone who wanted to
display his connections got someone in Beijing to authorize it. But to continue the road into the village would have
meant the demolition of the majority of homes along the narrow lanes.
In the West, a feasibility study would have been done, and factors like the need to demolish houses to widen the
lane would have been calculated into the final decision about building the new road. The goal of providing a road would
have been weighed against the cost of relocating the villagers into new homes. But the decision to build in Sichuan
was made in Beijing, based on relationships, and other considerations were not important compared with keeping
relations good between the village, the district, the province, and Beijing.
 Information, Decisions, and Solutions 307

Where relationships are important, the consensus of the group is also impor-
tant. The Japanese ringi-seido method of organizational decision making empha-
sizes consensus. This method has been misunderstood by some in the West who
apparently think that decisions are made by top management only when low-level
groups approve or even initiate decisions. In fact, Japanese corporate decisions do
not originate in the mail room.

In Focus

The ringi-seido works like this.16 A manager introduces an issue for discussion and proposes a decision. He goes to
each department that is affected and discusses it with each department manager, and he goes to his vice president
for approval also. If someone has a concern about the proposal, he discusses it with the proposer after work in infor-
mal and formal meetings. These informal soundings and exchanges are called nemawashi, which in Japanese means
“root-binding.” The word describes how a plant’s roots are gently and carefully shaped to produce the desired plant.
Thus are the deep concerns, emotions, principles, and goals of employees gently handled. Next, the proposer has to
get agreement from other department managers who will be involved in any way. This also means after-hours discus-
sions: nemawashi.
Once the proposal maker has talked to everybody individually and resolved any concerns anyone has, he presents
the proposal (which may be very different from the original) at a meeting of all department managers and produces a form
called a ringi-sho. After this form has been issued, the proposal maker presents his proposal at a vice-presidential
meeting. Each vice president has been briefed about the issue by his department managers before the meeting. There
is no unresolved reservation in anyone’s mind by this time. In essence, the decision has been made. The document,
the ringi-sho, is circulated to the department managers, the vice presidents, and perhaps the president for signatures
of approval.

Approval doesn’t take long in Japanese companies once the document for sig-
natures has been circulated. What takes a long time is the nemawashi that the pro-
posal maker undertakes with any manager or vice president who has a problem
with the original proposal. But it means everyone from a manager up to the pres-
ident has had a chance to present concerns to the sponsor of the proposal, and those
concerns can alter the original proposal. After official authorization seals the pro-
posal, everyone is in agreement about carrying it out. Nobody has reservations or
anxieties that have not been discussed. Nobody is excluded from the decision
making; everybody is a member of the ingroup. (Actually, not quite everybody.
Lower-level employees, which usually means all women and some young men,
traditionally do not participate.)
Final authority for decision making in most Japanese organizations rests with
one man, the president. But it is unusual for him to authorize a decision without
first assuring himself of the agreement of others. The lower-level representatives
of an organization do not have the authority to make decisions. When pressed, for
instance in negotiations, they cannot commit the organization.
308 Chapter 8

Other Asian cultures have less formalized methods than Japan’s ringi-seido for
obtaining consensus; nevertheless, unanimity is important throughout Asia.
Harmony matters more than putting oneself forward or having a more powerful
voice in decision making than one’s colleagues.
Two points need to be emphasized. First, as you probably have already realized,
the values of harmony and consensus are most important in cultures that are hier-
archical. This may seem paradoxical, but in places where people have the least
chance to change their social status and where those in power take it for granted
that their position won’t change, harmony is the method of operating.
But consider this: Consensus doesn’t threaten the hierarchical structure. Those
in power do not risk losing power and those with little power do not stand to gain
power, so both can agree and present a unified face. In Asia, saving and giving face
to individual group members and holding up the group’s face are more important
than any specific outcome or end.
Second, the discussion we have just had about decision making broadly con-
trasts an Asian style with a North American style, and an English-speaking style
with a Hispanic style. But in reality, all the decision-making methods discussed
here can be found in all cultures. Every day in some organization in the United
States, a lot of informal discussion is taking place at various levels, and problems
are solved and consensus is reached before any formal decision is made in a meet-
ing. Every day in some Chinese organization, a situation is arising that requires an
immediate decision, with no opportunity to consult a group, and so the decision is
made on the basis of what the desired results are. Every day some Canadian,
United States, and Australian businesspeople are following Juan Carlos Aguilar’s
strategy for getting access to a target person by using a friend as a go-between and
getting a business card or permission to use the name of someone who already is
known to the target person. And every day in a Latin American organization, some-
one makes a decision without regard to personal relationships.
Nevertheless, in general, decision making does come from the values of a culture.
If a culture values results, encourages individual competition among workers, and
quantifies and measures goals, decisions will usually be made on the basis of goals,
or ends. If a culture values relationships, encourages harmony among workers, and
emphasizes trust, then decisions will usually be made on the basis of means.
Among the decisions managers have to make, within groups or alone, are
decisions about solving problems and resolving conflicts. We next look at how
culture affects the way problems and conflicts are identified and managed. The
issue is especially important when people from different cultures encounter
problems and conflicts between them.

Problem Solving and Conflict Resolution

When people from different cultures engage in business, they often have different
expectations about what to do when problems and conflicts arise. Ways of defin-
ing problems, ways of handling them, and goals for resolution are all likely to vary,
depending upon cultural priorities. Ways of handling conflict vary also.
 Information, Decisions, and Solutions 309

Some authors discuss conflict along with negotiation, but we see conflict and
negotiation as separate. Negotiation across cultures is a specific communication
task, but it doesn’t have to be called “conflict.” On the other hand, conflict is an
inevitable part of doing business. It occurs regularly, and it is unavoidable. It is
even more present and unavoidable in business between members of more than
one culture. It crops up in day-to-day activities and isn’t limited to negotiations.
Therefore, conflict communication is discussed here, along with problem solving.
At the same time, a problem and a conflict are not exactly the same thing. Prob-
lems arise over people and also over things: events, equipment, resources, plans,
and solutions. Conflicts arise between people.

Defining Problems and Dealing with Them

People in different cultures see problems differently and talk about them differ-
ently, as we have seen. What constitutes a problem? And whose problem is it, any-
way? In general, a problem is an obstacle that gets in the way of individuals and
groups reaching their goals.
In individualist cultures, where people are responsible for the consequences of
their own individual actions, problem-solving skills are learned at an early age.
Western societies praise and reward the person who solves a problem; some val-
ued employees have the title “troubleshooter” and the responsibility for finding so-
lutions to problems. School exercises in individualist cultures involve getting
students to compete to see who can reach a solution first.
In low-context cultures, problems are objectified and externalized. They lie
outside the plan for accomplishing the goal. They are extraneous to the cause-and-
effect pattern of Western thinking. English speakers talk about “bugs” that have to
be worked out or “wrinkles” that need to be ironed away. Problems need solutions,
so they can be erased. Individuals who achieve solutions to problems are valued.
Individuals take responsibility for solutions as well as blame for failure to solve
problems. Individuals who cause problems also are blamed.
But in collectivist cultures, problems are not an individual responsibility. Blame
is usually generalized to the group, and the group members work together to find
a solution. In process-oriented cultures that emphasize the group acting together,
that very cooperation itself is worthwhile. Problems are not externalized or con-
sidered nuisances that interrupt and interfere with the accomplishment of a goal.
Rather, they are part of the context and process in which the group operates. Work-
ing on the problem is as important as solving it. Quality circles in Japan are an ex-
ample of this approach. The line between what is problem and what is simply the
situation is not as clear in collectivist cultures as in individualist cultures that place
the problem somehow outside the normal situation. Thus, the way a problem is de-
fined is different.
Problems can be things like a devaluation of the Mexican peso that makes it
harder for a gallery owner in Guadalajara to buy art from Canadian Inuit sculptors.
When the peso goes down, her costs go up, since the Canadian dollar is now more
expensive to buy with pesos, and Canadian products are also more expensive to
buy. Problems can include unusual weather that disrupts the movement of people
310 Chapter 8

or goods. Problems are obstacles to business objectives that do not directly result
from disagreements between people. Problems can also be people, of course.

Managing Conflicts
When problems involve disagreements among people, they are called conflicts.
Conflict is a clash between people or between ideas that engages people in a strug-
gle against each other. The whole idea of managing conflicts comes from results-
oriented, individualist, low-context communication cultures.
In individualist cultures, conflict is accepted as an integral part of life. Borden
writes that although the negative results of conflict are widely acknowledged, nev-
ertheless “some feel that a relationship without conflict is no relationship at all.”17
It seems that in results-oriented cultures, conflicts are looked upon not only as in-
evitable but sometimes as necessary and even healthy.
In results-oriented cultures, there is a fear that if everyone simply agrees with
a viewpoint someone offers, and nobody disagrees, the lack of disagreement al-
lows people to settle for mediocrity, not necessarily the best result. They call the
lack of disagreement groupthink.
Groupthink is a made-up word first used by the American writer William H.
Whyte, whose book The Organisation Man was a best-seller in 1956. He defines
groupthink as a drive among group members toward conformity in their thinking,
without critical assessment. Groupthink replaces a reasoning process. In the United
States, some treat groupthink as a more dangerous behavior than conflict. That is
because they see groupthink as threatening the successful accomplishment of goals.
Conflict, they believe, may actually lead to better ways to accomplish goals.
Of course, conflict also can cause damage. Even in results-oriented cultures,
people value relationships. The closer the relationship, the more damage conflict
can cause. As a way of controlling outcomes of conflict that may be destructive,
members of low-context cultures often verbalize their feelings and discuss con-
flicts as if they exist apart from people.
Results cultures value objectifying, depersonalizing, and analyzing issues apart
from the people involved. Disagreement makes discussion possible in these cul-
tures. Israeli culture is an example; in a sense, the entire tradition of the Mishna is
a matter of ongoing debate or argumentation based on disagreements. The de-
baters may have the greatest respect for one another and still disagree. In fact, the
attitude is that conflict can only be resolved when it is brought out into the open
and explicitly discussed.
In the culture of the United States, conflict generally is said to arise from
five areas:

• Disagreement over tasks (what)

• Disagreement over processes (how)
• Disagreement over allocation of resources (with what)
• Disagreement over goals (why)
• Disagreement over power (who)
 Information, Decisions, and Solutions 311

In Focus

Let’s try to see how these work out in an example. Say that you are working for a Public Relations organization, and
your job is to find ways your client—a sports team—can get support from the public for games they play. The team
needs to sell more tickets to events. You have come up with the idea that the team can host a public event where
youngsters who play the sport receive awards for their public service. Public service means the young people have
worked on projects to help people in their society. Maybe they have offered to carry shopping for elderly people.
Maybe they have cleaned up a beach, or have taught people to use a computer who never had a chance to learn
before. Your plan is that your client, the sports team, will honor the young people with a public celebration of their
service, and will give out awards to them.
However, your client does not want to do this celebration. First, the sports team does not agree that because they
participate in giving the awards to young people that they will sell more tickets. They disagree with the goal of your
plan. Second, they do not want to spend the money on the awards, or pay the costs for making society aware of the
celebration. Nor do they want to take the time away from their training and practice at their game. They disagree about
resources: that is, money and time.
Furthermore, the team members want the team’s manager and his assistant manager to come to the award cele-
bration instead of the team. They disagree with you about roles. They also disagree about the process you have
created. You want the team members to take turns giving awards to young people, and as a team, to show their
approval for the projects the young people did. But the team members want you to give out the awards. In fact, they
don’t want to be connected to this award celebration at all, because they are worried that people will think they had
something to do with the choice of projects or how the young people carried them out.
Finally, they disagree about the power you have to make them look socially responsible or irresponsible. They see
you as putting them in a difficult position. They do not agree that your idea should represent them.
These disagreements, in results-oriented cultures, are called conflicts.

Here is another example. Let’s say a product such as a new microwave snack
food is losing market share. Perhaps this is due in part to a competitor’s new prod-
uct. But it may be due in part to conflicts between people over resources,
processes, goals, and power. Production employees may not feel they were con-
sulted when the marketing department decided to launch the new snack, while the
marketing employees may feel they are being held back by the production staff
who are cautious about letting a product go (disagreement over process). The pro-
duction manager may feel she should be the one to stand in front of the micro-
phones and announce the new product, not the marketing manager, who did not
participate in its creation (disagreement about power). Marketing may wish they
could move faster, while production may want more time to test the product (dis-
agreement about the resource of time). The aim of the production people is to de-
velop a product that will not be flawed; the aim of the marketing people is to sell
the product in as great a quantity as possible (disagreement about goals). This sim-
ple illustration shows how conflicts arise when people are doing their jobs within
one cultural environment. When groups from different cultures disagree, the con-
flict is more complex.
312 Chapter 8

In collectivist cultures, on the other hand, conflict is usually viewed as just one
dimension of the ongoing relationships among group members, not something
outside those relationships. Conflicts are part of collective life. But conflict that is
openly identified threatens the harmony of the group. Indeed, when conflict is out
in the open, it is almost always destructive in collectivist cultures. Instead of ver-
balizing conflict, high-context-communication cultures use actions to compen-
sate, show goodwill, and restore harmony to the group. Apologies are not asked
for or given because they are a recognition of conflict. “Talking it out” may make
a high-context person feel the open admission of conflict has caused an irrepara-
ble rupture in the relationship.
In collectivist cultures, disagreements are called conflicts when they have
grown beyond the power of members of the group to diffuse them. In these cul-
tures, disagreements and opposite viewpoints do not fit the definition of conflict
as “a clash between people” who “struggle against each other.” People don’t have
to spend conscious time and effort on conflict resolution—it’s simply part of the
culture to deal with conflict without calling attention to it.
In relationship-oriented cultures, if something as serious as conflict occurs be-
tween people who have a close relationship, the relationship itself is threatened. In
other words, the value of relationships, which is probably the most important value
in the culture, is at risk. Members of these cultures go to great lengths to uphold
relationships.

Conflict Management Modes

Managing conflict is culture-specific, just as the definition of conflict is. In results-
oriented cultures, conflict management involves maintaining one’s own viewpoint,
arguing convincingly, and persisting until the opposing side agrees. In relationship-
oriented cultures, conflict management means trying every tactic to diffuse the
conflict. People develop conflict management skills from an early age. They learn
what works to resolve conflict in their culture.
Results-oriented cultures and relationships-oriented cultures are very different
in how they manage, so let’s look at a results-oriented culture—Australia—and a
relationship-oriented culture—Mexico—to illustrate. To help explain the cultural
differences, let’s use three cultural dimensions from Hofstede: individualism,
power distance, and uncertainty-avoidance. You can see Hofstede’s rankings of
Australia and Mexico at www.geert-hofstede.com.
In Australian culture, the individualism ranking is very high, over 90. It is the
second-highest of all the 74 countries Hofstede has studied. The Power Distance
index is low (36), meaning that Australians feel people should have about the same
power, rather than some having a lot of power and others very little. Put another
way, people have about the same power, so every voice has equal weight. That
makes people willing to listen to diverse viewpoints.
Australia’s uncertainty-avoidance index is 38, well below the world average of
about 60. That means Australians in general are open to different opinions and
other people’s ways of doing things. They are not as anxious about finding the one
right way of doing things as high uncertainty-avoiding cultures are. Individualist,
 Information, Decisions, and Solutions 313

horizontal, uncertainty-tolerant cultures lead to a conflict-management strategy of

bringing the conflict out into the open and discussing it.
In many other similar individualistic, low power-distance, uncertainty-tolerant
cultures, putting conflicts and feelings into words is the way to handle conflict.
They think that even when the outcome of conflict can possibly be damaging, if
everybody talks about the conflict, and everyone has a chance to explain his or her
opinion, the threat of damage is less. Typically, a conflict leads to a meeting where
people express their needs, wants, and goals in a conflict. In sum, the way to
handle conflict in these cultures is to discuss it explicitly.
In Australia and cultures like it, conflicts exist objectively, outside the people
who experience them. In discussion, conflicts are depersonalized. They are objec-
tified, that is, turned into positions held by people but separate from people. Of
course, that separation only works to a certain extent. If someone’s idea about your
promotion conflicts with your idea, and especially if you do not get the promotion,
your conflict may be with that person and not just that person’s idea.
The Australians’ way of handling conflict—bringing it out into open discussion—
leads to explicit conflict communication. More about that later.
In Mexican culture, the individualism dimension is very low, just over 30. That
means Mexico is a highly collectivist culture. The Power Distance, on the other
hand, is very high (81), indicating that Mexicans prefer some in their culture to
have a lot of power, while most others have very little. Uncertainty-avoidance is
also very high (82). That means Mexicans are not so open to new viewpoints. They
look for right answers to issues, and once they have found the right answers, they
do not like to have to change.
The Mexican way of handling conflict is to diffuse it before it actually reaches
the level of conflict and everyone has to recognize it as conflict. Mexicans keep
conflict from becoming obvious. Only when conflict is out in the open does some-
one have to do something about it. The best management means neutralizing it,
and keeping conflict from erupting.
Mexican culture has rules against talking about conflict. Typically in low
power-distance, high-collectivist, and high uncertainty-avoiding cultures, people
do not openly recognize conflict unless they have no other alternative.
In addition to not talking about the conflict, Mexicans will use deflection to
handle conflict. For example, if one person in a group wants to perform a role,
such as speaking at a meeting, but another person does it, the first person may
feel disappointed and angry over a perceived conflict of roles. In a Mexican
environment, a leader may offer the disappointed person an alternative role
(since the leader’s role is to be sensitive to the feelings of the group members).
The focus of the disappointed member in the group moves, or is deflected, from
the first role to the second. This is a familiar way of handling conflicts in every-
day issues. A mother might use it to manage a conflict between two young broth-
ers over who gets to carry a package for mother. When the one who is
disappointed protests, the mother gives him an alternative role; she might ask
him to be the door-opener for them, and successfully direct his attention away
from the package-carrying role.
314 Chapter 8

When two colleagues clash over a goal, or resources, or roles, or a process, or

power, in Mexico they try to cooperate in finding agreement. They may focus on
areas where they have no conflict, as a way to compensate for their disagreement.
They will emphasize common ground.
In relationship-oriented cultures, the sports team’s differences with the PR
firm’s viewpoints may never be called conflicts. The disagreements can simply be
treated as disagreements, by deflection, but not conflicts. The client may express
the opinion that, “the award celebration for the young people is a fine idea, and
should be seriously discussed at a future time, but in the meantime, could the PR
firm please think of a way to raise ticket sales?” Before a conflict develops about
goals, the conversation has been changed toward finding some PR means to in-
crease sales. Changing the subject, turning attention to something else, is a way
relationship-oriented cultures diffuse (spread out and cause to disappear) the
reasons for a dispute.
The Japanese, for example, don’t talk about conflict as the result of five areas
of disagreement or create narratives about it. They prefer not to mention conflict
directly at all. The perception may exist that marketing, in the microwave snack
example, did not consult fully with production about the new snack or that
production is not supporting marketing adequately. But high-context cultures such
as Japan and China look for ways to cooperate and build consensus rather than
focus on what has fallen short of expectations.
To understand ways of managing conflict, we will begin with five modes,
which are related to concern for one’s own goals and concern for the other
side’s goals:

• Competing (insisting your goals rank above those of others)

• Collaborating (showing high concern for others’ goals while being assertive
about one’s own)
• Compromising (settling for less and making others do so, too)
• Avoiding (not pursuing your goals or others’ openly)
• Accommodating (allowing others’ goals to take precedence)18

(See Exhibit 8.1) Which mode a person or an organization chooses depends on

the specific goals, circumstances, priorities, and, of course, culture. This list offers
a description of each of the options.
Competing is openly encouraged in individualist cultures. Salespeople are
challenged to outdo each other, for example. The salesperson of the year is singled
out for an award in many companies. But collectivist cultures do not encourage
open competition. Individual goals are not to be placed above the goals of the
group.
Collaboration is also encouraged in many individualist-culture companies.
Being able to work with others, being a team player, is important for success in
most organizations. Many corporations that use collaboration to resolve conflict
urge conflicting sides to establish a common goal and get away from the focus
on one’s own interest. Some organizations’ definition of collaboration is very
 Information, Decisions, and Solutions 315

individualist: One continues to keep one’s own goals firmly in view while ac-
commodating others’ goals. This is not the approach used in collectivist organi-
zations; they encourage commitment by teams and groups to common goals.
Individual goals are not worthy of the effort that common goals merit. If
individual goals conflict with the group’s goals, the individual goals fade or are
postponed.
Compromising involves giving up something voluntarily. Both or all parties
are expected to do so until finally a resolution is reached. The implication is that
when goals, roles, or processes conflict, different sides give up some things while
managing to retain other aspects of their goals. So although the conflicting parties
all yield something, they also all gain something. Cultural attitudes toward com-
promise vary, and this will be discussed more fully in Chapter 9. Bargaining and
negotiating may be necessary to reach this partial-loss/partial-gain position.
When the parties themselves cannot reach agreement, a third party may be
asked to intervene. When the third party is a go-between, an information conduit,
mediation takes place. When the third party is asked to make a judgment and im-
pose a solution to the conflict, the process is called arbitration.
These third-party roles can exist in a culture that places a high priority on the
explicit encoding of messages and the achievement of goals as markers of success.
In cultures accustomed to authoritarian behavior and hierarchical power struc-
tures, the use of a third party may move quickly to an arbitrator. This is the case,
for example, in India, where conflicting brothers will appeal to the president of a
family-owned company for a ruling rather than sit and discuss their conflict on
their own or with a go-between. The resolution of the conflict, rather than conflict
management, is the goal.
Avoiding conflict is another way of resolving it. In results cultures, it is rarely
a satisfactory, long-term solution. The parties simply agree to stop disagreeing
openly. Perhaps they get tired of conflict. Perhaps the parties feel no meaningful
goal can be achieved if they have to give up anything. In collectivist organizations,
avoidance is the most common method of handling conflict. When disagreements
arise, parties hold back from openly pursuing their goals in the face of opposition.
They may continue to work toward goals, but they will do nothing openly that
might disrupt the harmony of the larger group.
Accommodating the other party’s goals and abandoning one’s own is not a
common process for the resolution of conflict in individualist cultures. In collec-
tivist cultures, however, such a move may be taken more often because it results in
an indebtedness. At a later date, the party that gave up its goals can remind the
party that was assisted in reaching its goals of the favor. Such a move is not un-
known in individualist cultures. But in collectivist cultures, accommodation of the
other is a way to build the network of obligation discussed in Chapter 4.
An employee from an individualistic culture and an employee from a collec-
tivistic culture who disagree thus may find themselves in disagreement also over
how to handle their conflict. If a collectivistic person’s secret and concealed activ-
ity is discovered, the individualistic person will make accusations of underhanded
and sneaky behavior. If the individualistic person insists on bringing the conflict
316 Chapter 8

EXHIBIT 8.1 Five

Conflict Management high Competing Collaborating
Modes (based on
Rahim and Bonama,
1979) O
w
n
Compromising
g
o
a
l
s

low Avoiding Accommodating

low high
Others’goals

out into the open through bargaining or mediation or arbitration, the collectivistic
person may feel threatened with a loss of face and may be shamed by the rupture
to the outward harmony of their relations.

Conflict Communication Modes

Results cultures like the United States consciously spend time and effort on con-
flict resolution. Conflict is brought out into the open and is specifically addressed
with procedures that comprise conflict communication. The goal of the communi-
cation is to resolve the conflict.
The different styles of managing conflict that we have just discussed corre-
spond to communication styles. These styles are based on the communicator’s con-
cern for self and concern for others. They are dominating, integrating, bargaining,
avoiding, and obliging.19

Obliging conflict communication style Obliging is the communication style of

the conflict management mode that is called accommodating. Obliging suggests a
communication approach that uses an obliging tone of voice, to put the other side’s
goals first. Obliging communication is strongly you-attitude communication. One’s
own goals are not mentioned. The other’s goals are the focus of communication.
In individualist, low power-distance cultures, the obliging conflict communica-
tion style has a negative meaning. It suggests placating the other side in the con-
flict. Placating means saying what will please the other side in order to resolve the
conflict. It implies a lack of sincerity—just saying what the other side wants to
hear but not meaning it, or lacking commitment to one’s own position in a conflict.
For some collectivist cultures also, ones where winning is a matter of honor,
such as Japan, South Korea, and Russia, communicating without commitment to
one’s own position is strongly negative. Commitment is a combination of dedica-
tion and steadfastness. Commitment is never losing sight of the goal, and working
 Information, Decisions, and Solutions 317

constantly to achieve it. Commitment in a communication style is talking about

the goal in a consistent way. It means that in a conflict, a side argues forcefully for
an outcome that leads to winning the goal, and does not change to a different
argument. Obliging communication is the opposite. It is communication that leads
to the other side winning their goals. On the other hand, the obliging conflict com-
munication style is gentle, not forceful.
In many collectivist cultures, however, obliging communication has a positive
meaning. Because it is gentle communication, no great display of emotion is
involved. Emotion can be risky since it can lead to the loss of face, so an effort is
made to keep emotion out of conflict.
For example, in East Asian cultures, displays of anger make one lose face
because showing anger is immature behavior, and adults should have more self-
control. Collectivist cultures avoid loss of face, as a rule.
Obliging communication is considered to be a strategy for giving face in col-
lectivist cultures. It seeks to please the other side because it is agreement about the
importance of the other side’s goals. Obliging communication also gives the oblig-
ing side face, because they are doing so much for the other side’s face. The side
that reaches its goals wins the conflict, but the obliging side also wins, in esteem
and face. This strategy has positive value in collectivist cultures.

Integrating conflict communication style Integrating means expressing one’s

own goals and one’s interest in winning the dispute and also expressing the other’s
goals and the other’s interest in winning. This style of communication matches the
collaborative mode of conflict management. An integrating statement might re-
peat a goal that the other side has put into words, along with a goal of one’s own
side. This is a communication style that is viewed as positive by both individual-
ist cultures and collectivist cultures.
So why isn’t integrating communication always the norm, in both individualist
and collectivist cultures? Because the factors involved in conflicts can be complex.
When two individualist-culture sides are in conflict, integrating may be the style
for talking about goals, but when it comes to processes, the style is more domi-
nating and assertive. In collectivist cultures, integrating may be the style for talk-
ing about who gets resources, but obliging is the style for talking about goals.

Bargaining conflict communication style Bargaining communication style is

what happens in a compromising mode for managing conflict. It is a back-and-forth
dialog or discussion. This conflict communication style is a bit like bargaining in
the marketplace. When a merchant offers a platter at a certain price, the buyer sug-
gests a much lower price. The merchant and the buyer both know each will have to
move from their first position. The game of bargaining involves small moves on
both sides, so agreement can be reached. The agreement in bargaining is that the
merchant gets money and the buyer gets the platter. The agreement in resolving a
conflict is that one side gets something they really want and so does the other side.
The bargain can be expressed explicitly or implicitly. Explicit bargaining is
when one side actually says, “We want x and you want y, so we will give up a if
you will agree that we get x, and if you give up b, we will agree that you get y.”
318 Chapter 8

This explicit communication is more likely to describe what happens in individu-

alist, low-context communication cultures. Implicit bargaining is when one side
says, “We are very interested in x, and know you are interested in y. We could offer
to make some agreement about a, in order to have your agreement about x.” The
other, reciprocal half of the agreement is not spelled out in so many words, but is
implied.
Bargaining style works when both sides have some concern for the other’s in-
terest as well as their own interest. Neither is as strong as in the integrating style.

Avoiding conflict communication style The avoiding communication style

means not communicating about the conflict. Avoiding is also the mode of conflict
management. Communication in this style is not about the conflict, but rather is
about something else. Conflict parties simply turn away from mentioning conflict.
In individualist cultures, as with the obliging communication style, this style is
usually negative. It shows a lack of commitment to the goal. Where commitment
is important and winning is important, avoiding communication is a failure to
pursue the goal. Of course, some conflicts are not worth the time and effort—the
commitment—to win. If the issues are not so important, neither is the commitment
to winning the conflict. In such cases, avoiding communication about the conflict
is a good strategy, even in results-oriented cultures.
In collectivist cultures, as with the obliging style, the avoiding style is often
positive. Although it does not show a strong concern for the other side’s interest,
it does protect the other’s face.

Dominating conflict communication style Dominating communication corre-

sponds to a competing mode of conflict management. Dominating communication
pushes for winning the conflict. A side using dominating communication stresses
the desire to achieve what they see as a winning outcome. They express their needs
and wants strongly.
This communication style shows a great concern for one’s own interests and
very little or no concern for the other’s goals. Therefore, it does not give the other
side face, or protect the other side’s face. Instead, it emphasizes the face of the
dominating communicator.
In individualist cultures, the dominating style is frequently seen as showing
power. In oral communication, the dominating style is often loud. Communicators
seek to display strength and might, and by doing so hope to achieve their goals.
They want to overpower the other side, by showing them to be weaker.
Dominating communication therefore is a style that is rarely used by collec-
tivists in conflict management. However, it can be seen as positive in individualist
cultures, where two sides, both using dominating communication style and taking
care only of their own interests and their own face, can be parties in a conflict.
In summary, the five communication styles are dominating, integrating, bargaining,
avoiding, and obliging. They correspond to the five modes of conflict management—
competing, collaborating, compromising, avoiding, and accommodating—five modes
that are the way a Western mind sees conflict management. However, in Eastern
 Information, Decisions, and Solutions 319

cultures (Asia and Pacific Islands) and Middle-Eastern cultures as well as African
cultures, other ways of managing conflict exist.
Three additional communication styles have been suggested for conflicts.20

Emotion-expressing conflict communication style The dominating communica-

tion style is often related to another style to resolve conflict, and that is using emo-
tional expression. Exhibiting powerful emotions can be effective in helping a person
achieve his or her goal in the dispute. Communicators using this style may employ
nonverbal signals to reinforce the worded messages about what they need and want,
such as facial expression, thumping the table, and making other forceful hand ges-
tures. This style may also use volume in oral communication or capital letters and
exclamation marks in written communication. The tone is insistent.
Emotion-expressing communication style, with its emphasis on winning, is one
that individualist cultures use. In some collectivist cultures, showing emotion can
lead to loss of face. Emotional expression is risky, and in high uncertainty-avoiding
cultures, risk of loss of face is too uncomfortable. The less risky behavior is not to
show emotion. However, sometimes displays of dismay and even tearfulness may be
used in this conflict communication style by members of collectivist cultures.

Third-party intervention conflict communication style A primary way of manag-

ing conflict in collectivist, high power-distance, high uncertainty-avoidance cultures
is to turn to a third party who has power. That person, in high power-distance cultures,
can mediate in the conflict, telling each side how to act to resolve the conflict. The
third party mediator is from outside—and above—the conflict. The person of power
is also a person of authority in an organization or in a government.
When the third party determines who wins the dispute, the issue is settled. Both
sides recognize the authority of the mediator (high power-distance) and accept the
mediator’s decision. The parties involved in the conflict may not want to talk about
it to each other, but each will talk to the person of power, because they are willing
(power distance) for that third party to have the authority to solve the dispute (high
uncertainty-avoidance).
In individualist cultures, turning to a third party to help resolve the conflict
means the two sides have failed to reach a solution. Such a failure is negatively
viewed in results-oriented cultures because it shows the parties in the conflict
could not achieve a result.

Neglecting conflict communication style Our final style of communication for

managing conflict is neglect. This is different from avoiding, which is walking
away from the conflict. Neglect is acknowledging the conflict, but refusing to do
anything about it, and by refusing, forcing the other side to make some resolution
of the conflict.
It is passive-aggressive behavior, and forces the other side to have a concern for
your goals. The communicator agrees that conflict exists, but refuses to participate
in a discussion about either side’s goals, needs, or wants. Worded communication is
minimal. Instead of stating what he or she wants, the communicator speaks few
words but uses nonverbal signals to show unhappiness. The burden of the resolution
320 Chapter 8

EXHIBIT 8.2 Eight

Conflict Communica- high Neglecting Integrating
Dominating
tion Styles (based on (Passive Aggressive)
Ting-Toomey & Oetel
2001)

Emotion-
Self- Expressing
face Third-party
concerns helping

Bargaining

low Avoiding Avoiding Obliging

low high
Other-face concerns

of the dispute rests with the other side completely, and the other side is forced to
consider the interests of the neglecting communicator.
In summary, the three additional styles of communicating about conflict bring
the total to eight.
In Exhibit 8.2. the grid of the eight styles of conflict communication, with in-
dividualist self-concerns in square boxes, and collectivist other-concerns in ovals,
gives a picture of how culture affects conflict management.
The upper left corner of the grid shows behavior that is typical of strongly in-
dividualist, results-oriented, low power-distance cultures. The lower right quadrant
shows behavior that is typical of strongly collectivist, relationship-oriented, high
power-distance cultures.

Communicating about Conflicts

between Members of Different Cultures
What happens when conflict exists across cultures? Now that we have seen how
results-oriented cultures differ from relationships-oriented cultures in the ways
they manage and communicate about conflict, we can begin to appreciate how dif-
ficult communication about conflict is when one side is from a results culture and
the other side is from a relationship culture.
Not only does conflict itself put the two sides into a struggle against each other.
They also have to struggle against different conflict management modes and dif-
ferent communication styles.
Conflicts involving sides from different cultures are common. Not only are peo-
ple likely to disagree over power, process, resources, tasks, and goals, they can also
be in conflict over ways to manage and communicate about conflict. When people
go about the management of conflict differently, their first suspicion is that
the others are not playing fair, and cannot be trusted. Then the conflict, which is
 Information, Decisions, and Solutions 321

defined as a clash between people that engages them in a struggle against each
other, is amplified.

In Focus

Let’s look at what might happen between two people of different cultures in a conflict.
Imagine a conflict between an individualist-culture member and a collectivist-culture member over money. In a
contract for service they agreed on a fee, but because the service became more complex than expected, one side now
wants more money. The person who wants more money is from an individualist culture. He—let’s call him Indy—
communicates explicitly and in a dominating style about what he wants, and why his goal is justified.
The person who does not want to pay more than the originally agreed amount represents a group from a collec-
tivist culture. She—let’s call her Colly—would prefer not to have any communication about this subject, but now that
the group has been engaged in a struggle with Indy, Colly speaks about the need and desire Indy has for more money,
and Colly’s group’s own need and desire to pay no more. Colly’s conflict communication style is integrating.
What does Indy hear when Colly validates her group’s own goals and Indy’s goals? Chances are Indy hears that he
is winning the struggle. He believes he will get more money. Colly is yielding.
What does Colly hear, when Indy insists on more money? She hears that Indy is not interested at all in Colly’s or her
group’s face. He is demanding that he get his goal. He has no concern about the needs of Colly’s group.
Because Indy thinks he is winning, he presses harder. Because Colly thinks their concerns are being overlooked,
she either tries harder to show consideration for Indy, hoping for a reciprocal consideration, or she uses obliging com-
munication, hoping if Indy sees she is taking his concerns seriously then he will have some concern for her group. Or
Colly might use bargaining communication to reduce the amount Indy wants and so protect both her face and Indy’s
face. Or she finally may use avoiding style to abandon the conflict communication. In any case, she has lost her con-
fidence that Indy will collaborate, putting her group’s interests as high as his own.
Perhaps Indy will win—this time. But he probably will not win a second time. In winning, he will have forced Colly
and her group to lose.
Indy, in this scenario, is following normal conflict communication behavior for someone from a results-oriented, in-
dividualist, low power-distance culture. He uses a dominating communication style in order to win. He probably is not
aware that Colly is adopting a different mode of conflict management and a different conflict communication style. He
may just think Colly is not as good at managing conflict as he is.
Colly thinks Indy is narrowly focused on his own goals and refusing to cooperate with her to arrive at both their
goals. She and her group will avoid interacting with Indy again.
The sad result is that the management of this conflict has contributed to making the original conflict worse. It also has
set the two sides, Indy and Colly, on a path of distrust. Furthermore, when Colly encounters a conflict again with people
from an individualist culture, they will have to work harder to gain her trust. When Indy encounters a conflict the next time
with people from a collectivist culture, he will assume they are not able to prevail against him successfully, and that he
will win. Furthermore, collectivist stereotypes of arrogant individualists will be reinforced, and individualist stereotypes
of weak unreliable collectivists will be reinforced, because neither understands the other’s conflict communication style.

Certain communication strategies can enable you to handle conflict: to talk

about it or talk around it and use communication strategies to resolve it. But
remember that in some cultures, actions are the best communication. There are
five recommended strategies:
• Listen sincerely.
• Express agreement where you can.
322 Chapter 8

• Identify common goals.

• Explain your position.
• Identify resolutions that accommodate cultural priorities.

Listening Sincerely
Listening sincerely is an important strategy for conflict communication when only
one culture is involved; it is even more important when the conflict is intercultural.
We often assume we understand the other’s point of view and don’t need to listen
to it being presented. Assuming you understand someone else’s perceptions, rea-
sons, and values because they are probably like yours is called projected cogni-
tive similarity. This concept was introduced in Chapter 1. When you acknowledge
another set of perceptions, reasons, and values, you may be assuming you under-
stand them. But this assumption is especially likely to be wrong when you don’t
have the same priorities as someone from another culture.
In his book on intercultural communication for managers, Richard Mead offers
suggestions for how to listen.21
First, listen with an attitude of interest in what the other party is saying.
The interest may be apparent rather than real, but an appearance of interest will en-
courage the other side to speak about the conflict. This is important, because as we
have seen, in many high-context cultures a public acknowledgment of disagreement
is not acceptable. If the other party comes from such a culture and you come from a
low-context culture, you may have a hard time getting any discussion about the con-
flict out in the open. An attitude of interest in the other’s concerns can help. If you are
one who prefers to deal with the conflict indirectly and your counterpart wants open
and frank discussion of the conflict, you still need to listen with interest. Then you can
say you appreciate the statement and appear sincere to the other side rather than in-
different, even if you go on to ask for a postponement of the discussion.
Sometimes the opportunity to express a position is all that is necessary for a
party to drop a conflicting position. This is true when one grievance in the conflict
is a feeling of not being heard. Writing about United States–Russian conflicts, Yale
Richmond advises:
Confrontations over differences of views can often be avoided by letting Russians talk
themselves out. After they have unburdened themselves and expressed their righteous-
ness and indignation, their opposition may moderate and the differences may turn out
to be not as great as originally believed. In fact, after talking themselves out, Russians
and Americans may even find that they have a unanimity of views.22
Second, assess the meaning of what you are hearing. Don’t rush to judgment
but pay attention to the unspoken cultural priorities behind the words. Ask ques-
tions for clarification, being careful to avoid making the other side feel defensive.
The other party may use a communication style that is ambiguous and indirect on
purpose, so listen for style as well as content.
Finally, think before you respond, which may mean taking time. Results-
oriented cultures tend to encourage quick responses for quick resolutions to
problems: Get it fixed! Get over it! Move on! These are attitudes that easily find
 Information, Decisions, and Solutions 323

expression in results cultures. Relationship-oriented cultures are the opposite. Tak-

ing time allows one to think carefully about all the ramifications of a response for
the lives of the others. There is also the hope that if enough time passes, the con-
flict will fade and be resolved without having to be managed.

Expressing Agreement Where You Can

Expressing agreement where you can means letting the other party know you
find the other position understandable and legitimate. Note these words in this
advice: where you can. The agreement should be genuine on your part. Usually,
people have reasonable concerns, and if you put yourself in the other person’s
position, you can agree with his or her view of the issues. Your agreement at this
stage is with the other person’s concerns but probably not with his or her solution—
otherwise, you don’t have a conflict. It may be sufficient to express agreement
on items that you can agree upon for the areas of disagreement to recede in
importance.

Identifying Common Goals

Identifying common goals is the key to an agreement that is usually labeled
“win–win” (discussed in more detail in Chapter 9). It is what happens when the
sides collaborate to reach some agreement. It may be through recognizing the
other’s goals, or through bargaining or mediation. When both parties can iden-
tify common goals, both can work to reach them. Terpstra and David describe
a family-owned business in India that entered into a joint venture with a firm
from the United States. An organizational specialist from the United States sug-
gested tightening the loose Indian business structure. He drew up an organiza-
tional chart that placed a younger brother, who had an MBA, in a higher
position than two older brothers who did not have MBAs. Conflict immediately
arose among the brothers, and the two brothers in the older generation became
involved. “They both said, ‘What is the business good for if it breaks up the
family?’”23 The conflict could only be resolved when the common goal—the
family united in an ongoing business—was clear to all parties, Indian and
American. If the business itself threatened the family, the business could go.

Explaining Your Position

Explaining your position means stating your concerns. It is not the same thing as
persuasion or argumentation. At this stage, you are setting out your position clearly
and neutrally. If the conflict has arisen because of a misunderstanding, this is
where it will come to light and can be resolved. Some conflicts do arise simply
from misunderstanding.
For members of low-context cultures, messages are typically encoded explic-
itly, and delicacy is not as important as accuracy. If you are a low-context culture
member communicating about conflict with someone from a high-context culture,
explaining your position can be a step that needs special attention. You want to get
your position across clearly, but you do not want to risk losing the goodwill of the
other party. Knowing where to draw the line is tricky.
324 Chapter 8

If you are a high-context culture member, your efforts at explaining your posi-
tion may need to focus on explicit and factual presentation. Appeals to the other
party’s allegiance to the organization may not be helpful.
In addition to explaining your position, you also need to make clear what
outcome you desire. Making your wishes clear is not necessarily the same thing as
explicitly stating them, however. As we have seen in Chapter 5, actions can com-
municate. Behavior can call attention to issues and reveal feelings without explicit
encoding in words.

In Focus

A manager in an IT company was having difficulty dealing with a conflict between a young ambitious French-Canadian
male and his co-worker, an older Chinese woman who was on a special visa from China. She had recently become un-
cooperative and had made it clear to the manager that she would not be willing to travel to the capital, Ottawa, with
her co-worker to hold discussions with legislators about a new product. Yet she had worked on the development of the
product with great enthusiasm.
When the manager asked her what the problem was, he received no clear explanation. When he asked her co-worker,
the young man had no insights to offer. The young French Canadian was clearly annoyed, however, that the Chinese
woman was refusing to share her data with him. That meant he couldn’t make the presentation to the legislators, because
she had all the key data on her flash drive.
The manager’s repeated questions to her about her “problem” got nowhere, so he changed his approach. He be-
gan explaining his concerns, as a manager and as a spokesperson for the company, about the upcoming meeting with
legislators. His explanation of his position was unemotional. In that climate, she then felt that she could explain her po-
sition. She revealed that she felt as an older—and in her mind more senior—person she should not be sent to the cap-
ital with a younger employee who would do the presentation of material she had worked hard to develop. That would
diminish her status, she felt, and diminish her face.
This was obviously a conflict about power and, more particularly, about roles. Because the manager explained his
position without blame or emotion, the woman was able to respond with an explanation of hers. Once the manager under-
stood her position, he could take steps to resolve the conflict. He announced through a general memo that the woman was
the senior consultant on this project and her name would be first on the documents. The young man would do most of the
presentation because he was a native English speaker. This satisfied her and allowed the project to continue.

The Meaning of “a Resolution” According to Culture

As we have seen, for low-context cultures, resolution means a termination of the
conflict.24 This may mean that individual goals are met; it may mean organiza-
tional goals are met. Another possibility is that the conflict itself ceases without
goals being met; parties simply stop being in conflict. Disagreement may exist
about the means to reach the end of the conflict, in other words, but the end is rec-
ognized by all.
In high-context cultures, however, resolution has a very different meaning or
perhaps has little meaning. Conflict is simply seen as an ongoing part of the rela-
tionship. It may take one form or another and may involve certain issues at one
 Information, Decisions, and Solutions 325

point and other issues at another point, but the conflict doesn’t “end.” It simply is
not overt and does not disrupt the functioning of the group.
This is implied by Lucien Pye, for example, in his discussion about the ten-
dency of Chinese negotiators to see any agreement as simply part of a context of
ongoing discussion, not an end.25 The goal of conflict resolution may be to diffuse
the conflict through ambiguity.26
Much of the research on conflict resolution comes out of Western thought and
paradigms. Western researchers assume that conflict can be managed and that
people can take charge and shape resolutions to suit them. Not all cultures share
this view.

Summary Business information is culturally defined. Information is valued by businesses

because it is used to attain business goals.
• Possession of information means power. Being “in the know” makes one a mem-
ber of an in-group, compared with out-group members who are not in the know.
• Information is usually valued when it is reliable and valid, but of course these
are also culturally defined terms.
• Formal information comes from publications and publicly available sources, in-
cluding the Internet, observation, surveys and interviews, and experimentation.
Results-oriented cultures look on it as objective and therefore more accurate
than informal information.
• Informal information comes from the grapevine, IM, blogs, chat rooms, and
bulletin boards. It always comes with a context and a personal bias.
• Individualist low-context cultures value “hard” information, often numerical
measurements. Such information is not always available in collectivist high-
context cultures.
• Business information is assessed on the basis of verifiability, trustworthiness,
accuracy, and credibility.
Business information sources are formal and informal. In some cultures, gath-
ering information is regarded as inappropriately invasive.
• Information technology (IT) has opened access to information.
• Information management—the capture and storage of employees’ knowledge
for future access—is practiced by more and more companies.
Businesspeople use information for making decisions. Individualist cultures
generally make decisions based on ends, while collectivist cultures generally make
decisions based on means. Conflicts are perceived differently, problems are de-
fined differently, and solutions are arrived at differently in different cultures.
• Cultures define “what is a problem?” differently.
• Conflict usually occurs in one or more of five areas: tasks, processes, alloca-
tion of resources, goals, and power.
326 Chapter 8

• Five ways to manage conflicts are competing, collaborating, compromising,

avoiding, and accommodating.
• Eight styles of conflict communication are dominating, integrating, bargaining,
avoiding, and obliging, plus third-party intervening, emotion-expressing, and
neglecting.
• To communicate about conflict, whether with high-context or low-context
cultures, the following guidelines may help: listen sincerely, express agreement
where you can, identify common goals, explain your position, and identify
resolutions that accommodate cultural positions.
• For some high-context cultures, resolution may mean simply diffusing the con-
flict through non-conflict-oriented communication and absorbing the conflict
into the ongoing relationship.

Notes 1. Richard Mead, Cross-Cultural Management Communication (New York:

John Wiley & Sons, 1990), p. 74.
2. Ibid., pp. 66–67.
3. Ibid., p. 67.
4. Paul Bausch, Matthew Haughey, and Meg Hourihan, We Blog: Publishing
Online with Weblogs (New York: Hungry Minds Inc., 2002), Chapter 8.
5. http://www.worldwidewebsize.com/.
6. http://www.internetworldstats.com/stats.htm.
7. Richard R. Gesteland, Cross-Cultural Business Behavior (Copenhagen:
Copenhagen Business School Press, 2002), pp. 50–51.
8. “The Wiki Principle: A Survey of New Media,” The Economist, April 22,
2006, p. 11.
9. http://www.census.gov/ipc/www/popclockworld.html.
10. http://www.geeknewscentral.com/2004/12/15/computer-ownership-to-double-
by-2010/.
11. http://ict4dblog.files.wordpress.com/2009/01/m4d-policy-priorities-to-connect-
africa-v1-0.pdf.
12. http://www.guardian.co.uk/business/2009/mar/02/mobile-phone-internet-
developing-world.
13. James Wolfensohn, “Transcript of Remarks at Afternoon Session of White
House Conference on the New Economy” (5/9), National Desk, US
Newswire, April 5, 2000, http://web.lexis-nexis.com/ universe (retrieved
May 29, 2000).
14. David A. Victor, International Business Communication (New York: HarperCollins,
1992), p. 174.
15. Lucien Pye, Chinese Commercial Negotiating Style (Cambridge, MA:
Oelgeschlager, Gunn & Hain, 1982), p. 17.
 Information, Decisions, and Solutions 327

16. Robert T. Moran, Getting Your Yen’s Worth: How to Negotiate with Japan
(Houston: Gulf, 1985), p. 15.
17. George A. Borden, Cultural Orientation: An Approach to Understanding
Intercultural Communication (Englewood Cliffs, NJ: Prentice-Hall, 1991), p. 111.
18. K. W. Thomas, “Introduction.” California Management Review, 21 (1978), p. 66.
19. M. Afzalur Rahim and Thomas V. Bonoma, “Managing Organizational Con-
flict: A Model for Diagnosis and Intervention.” Psychological Reports, 44
(1979), pp. 1323–1344.
20. Stella Ting-Toomey and John G. Oetzel, “Intercultural Conflict: A Culture-based
Situational Model,” Managing Intercultural Conflict Effectively (Thousand
Oaks, CA: Sage, 2001) pp. 27–62.
21. Mead, p. 118.
22. Yale Richmond, From Nyet to Da: Understanding the Russians (Yarmouth,
ME: Intercultural Press, 1992), p. 130.
23. Vern Terpstra and Kenneth David, The Cultural Environment of International
Business, 3rd ed. (Cincinnati: South-Western, 1991), pp. 187–188.
24. Lawrence B. Nadler, Marjorie Keeshan Nadler, and Benjamin J. Broome,
“Culture and the Management of Conflict Situations.” In Communication,
Culture, and Organizational Processes, International and Intercultural
Communication Annual, vol. IX, William B. Gudykunst, Lea P. Stewart, and
Stella Ting-Toomey, eds. (Newbury Park, CA: Sage, 1985), p. 95.
25. Pye, p. xi.
26. Ting-Toomey, p. 81.
C H A P T E R N I N E

Intercultural
Negotiation Teams
Two Canadians representing Canwall, a manufacturer of wallpaper printing equipment,
went to a town north of Shanghai in the province of Jiangsu, China, to negotiate a sale to
a new wallpaper production company. Charlie Burton, the president of Canwall, was trav-
eling with his Marketing Director, Phil Raines. The company had never before sold its equip-
ment outside Canada, and the two Canadians were delighted with the warm reception they
enjoyed in China.
This wasn’t the first meeting between the Canadian company and the Chinese wallpa-
per factory. The manager of the Chinese company, Mr. Li, had been a member of a delega-
tion to Canada. He had met with one of Canwall’s senior salespersons and the director of
manufacturing. Subsequently, a trade representative from Canada had been in China rep-
resenting Canwall’s interests to the Chinese manager. After those meetings and numerous
letters and faxes, Canwall’s top people were now ready to negotiate the sale.
The day they arrived they were met at the airport in Shanghai by Manager Li himself
and transported in a chauffer-driven car 125 kilometers to the town. Their accommodation
was in a newly built hotel. A few hours after their arrival they were treated to a 12-course
banquet given by their host, with several high-level municipal officials present. This red-
carpet treatment made them feel optimistic about the sale.
The next day, they were taken to see the sights nearby: a large port for container ships
and several factories that indicated the prosperity of the region. They were eager to begin
discussing the sale, but after lunch they were given time to rest. In the late afternoon, one
of the manager’s English-speaking employees came by with news that they would be taken
to see a local dance company’s performance that night.
On the third day, they finally sat down to meetings. Progress seemed very slow, with
each side giving generalizations about itself that seemed to the Canadians to be unre-
lated to the sale. They used an interpreter supplied by the Chinese, who was eager to
please them, so the Canadians felt comfortable with her, but translation slowed down
communication.
The Chinese also spent a lot of time talking about the Canadian trade agent who had
been in their town earlier and asking about him. Burton wasn’t able to tell them much about
that person since he had never met him.
329
330 Chapter 9

When the Canadians at last were able to make the presentation they had prepared, they
were surprised at the number of people who showed up: Ten Chinese faced them across
the table. The Canadians were a bit disconcerted when several people at different times
answered mobile phone calls, without leaving the room and without apologies. Still, the
Chinese frequently nodded and smiled and said “yes.” Burton and Raines had prepared
sales data and showed, effectively they thought, that within five years the factory could
double its current production. At the end of the day, the jubilant Canadians returned to their
hotel rooms confident they had sold the equipment.
The next day they were asked to explain once again things they thought had been cov-
ered already to a Chinese team with four new faces on it. They were confused about who
their negotiating counterparts really were. Their jubilation began to evaporate. They were
asked to explain the technology in minute detail. Neither Burton nor Raines had been in-
volved in the engineering of the high-tech component that was the heart of the equipment.
After doing the best they could, they returned to the hotel exhausted.
Their interpreter also seemed to be unfamiliar with technological terms since she and
the interpreter for the factory spent some time discussing the terms between themselves.
Because the Canadians’ interpreter was a woman, they had to meet with her in the hotel
lobby to discuss their plan for the next day. The two tired men would have preferred to sit
in their room while they talked with her, rather than in the noisy lobby where they were the
object of curiosity, but she requested they remain in a public place because as a woman
she could not meet with them in their room.
The following day a member of the first-day Chinese team pointed out discrepancies be-
tween what they had said and what the manufacturing director, an engineer, had told them
in Canada. Burton and Raines were chagrined. The Chinese were reproachful about the dis-
crepancies, as if the Canadians had been caught trying to deceive them. The two Canadians
quickly texted Canada for specifications and explanations, but it was nighttime in Canada.
The afternoon session was uncomfortable, although everyone was polite. Burton and
Raines were a bit unsettled when a middle-aged woman suddenly burst into the negotiat-
ing room and whispered in the ear of one of the key Chinese speakers, who immediately
got up and left the room. The Canadians expected some explanation for the emergency, but
none ever came.
The Canadians didn’t receive some of the documentation they needed until the following
day because of the time difference. Discussions resumed with the same questions being
asked, yet again. It all went very slowly. The Chinese appreciated the high quality of the
Canadian product but worried they wouldn’t be able to fix the equipment if it broke down. They
suggested—delicately, to avoid implying that they expected breakdowns—that perhaps the
Canadians could give them some help with maintenance training. The Canadians pointed out
the expense and difficulty of keeping someone in their city for several weeks or months and
expressed confidence that there wouldn’t be any problems the manual didn’t cover. They con-
fidently asserted that Chinese would be able to look after the equipment just fine.
Finally, the technical discussions gave way to the issue central to most business nego-
tiations: price. This proved to be the most difficult of all. The Chinese began by asking for
a 20-percent price discount. The Canadians thought this was simply an outrageous negoti-
ating ploy; they stuck to their price, which they knew to be fair, and offered a 3-percent dis-
count on the printing cylinders.
 Intercultural Negotiation Teams 331

Although Burton and Raines had heard that negotiations took time in China, they had
thought a week would be ample. Now time was running out, and they were due in Beijing
in two days. The Canadians began to ask pointed questions about what the Chinese were
unhappy with and where they needed to go over issues again. During the last two sessions,
the Canadians tried to get the Chinese to focus on the unresolved points, but the Chinese
seemed reluctant to do so.
Things were still unresolved when the farewell banquet was held the following noon.
The question of price seemed near a solution, but not the method of payment, which was
the final hurdle. The Chinese couldn’t guarantee the payment schedule; it seemed that pay-
ment was tied to deadlines and requirements of the municipal officials. Nevertheless,
Manager Li smiled and spoke of mutual cooperation for the future, past Chinese–Canadian
relations, and the great amount he and his factory could learn from the Canadians. They
signed an expanded version of the letter of intent that had been signed nine months ear-
lier in Canada. The Canadians left disappointed but with expressions on both sides of will-
ingness to continue to discuss the sale by mail and fax.
The Canadians were stunned to learn two weeks later that the factory had decided to
buy from a Japanese equipment manufacturer. They knew their product was good and their
price was fair. What had happened to derail their sale?

Intercultural Negotiation
Negotiating is a special communication task. It occurs when two or more parties
have common interests and therefore have a reason to work together, but who also
have conflicts about their goals and how to accomplish them. Negotiation is the
communication that takes place in order to reach agreement about how to handle
both common and conflicting interests between two or more parties. Negotiation
always has an element of persuasion in it.
Negotiating “how-to” books abound. Some authorities on negotiation claim
cultural difference is only one of many factors and may boil down to being “sim-
ply differences in style and language.”1 But this view assumes that negotiating
skills are value-free and are the same around the world, like the rules of chess for
opening moves, middle game, and endgame.
One interculturalist has this to say about negotiation:
In the USA several books have appeared on the art of negotiation; it is a popular
theme for training courses. Negotiations have even been simulated in computer
programs, which use a mathematical theory of games to calculate the optimal
choice in a negotiation situation. These approaches are largely irrelevant.2

This critical view comes from the author’s observation that the books and sim-
ulation games are based on the assumption that both sides have the values of the
United States. Raymond Cohen refers to the “instrumental and manipulative” style
of negotiators from the United States.3
Not only does this view mistakenly discount the role of culture in framing the
priorities of negotiators, it also overlooks what happens when people from differ-
ent cultures interact. The interaction produces an intercultural communication
332 Chapter 9

situation that is the product of both cultures and of the personalities of both teams,
which in Chapter 1 we called transactional culture.
Culture tells negotiators what is important, and enables them to assign mean-
ing to the other side’s communication and guess at their motives. Cultural Intelli-
gence (CQ) enables negotiators to behave appropriately to the members of the
other culture (see Chapter 1). Therefore, to negotiate effectively, intercultural ne-
gotiators not only need special communication skills, they also need to understand
both their own and the other team’s culture. They need to be able to switch from
behavior they use in their own culture to the behavior that will be most appropri-
ate for another culture.

What Really Happened with Canwall in China?

What happened with Canwall in China was a combination of cultural factors that
worked against the Canadians, some within their control and some outside their
control. Here are a few of the reasons for the outcome of this episode.

Chinese Emphasis on Relationships

First, the Chinese felt they had already formed a relationship with the Canadian
firm because they earlier had formed a relationship with the trade representative.
But Burton and Raines, who came to negotiate the sale, were new to them and
didn’t seem to know the trade agent very well. The trade representative had actu-
ally been an agent who represented a number of Canadian light industry manu-
facturers, not a Canwall employee. The Chinese also had developed a relationship
with a salesperson and the director of manufacturing of Canwall, neither of whom
was on this visit. They were disconcerted by having to develop new relationships
from the beginning, all over again. But the Canadians typically used lower-level
people for preliminary discussions where technical details were ironed out and
then sent in their top-level people to sign the contract.

Canadian Expectations about Time and Efficiency

The two Canadians had expected a much faster pace of negotiating and had not
expected to spend so much time eating, resting, and sight-seeing. After all, their
product was familiar to the Chinese, and it was a good product, fairly priced. They
had looked forward to ironing out any wrinkles about payment and schedules and
concluding the sale in three or four days. In fact, Charlie Burton had worried they’d
have time on their hands after the contract was signed. The Chinese, however,
wanted to get to know these two men they hadn’t previously met. Also, Manager
Li had to make sure the political officials of the municipality would support his
purchase from overseas; the party secretary and other government party officials
had to be kept informed and also had to get to know these new Canwall people.

Differences in Negotiating Style

The Chinese began with generalities about their factory and the local government’s
successes. This was done to create a context for the negotiation at hand, but it
seemed inconsequential to Burton and Raines. On the other hand, the Canadian
 Intercultural Negotiation Teams 333

presentation of specific data, moving to generalized projections, seemed rushed

and incomplete to the Chinese.
The Chinese spent a long time on the technical specifications of the equipment
partly because they wanted to learn how it was made and partly because they wanted
to be sure they were being given accurate information. When Burton fudged a bit on
the details (with which he was unfamiliar), the Chinese suspected he was trying to
deceive them. It took a lot of time to undo the loss of trust and to verify the true in-
formation with the faxed documents. The Chinese were painfully conscious of be-
ing perceived to be lagging behind in the latest technology, and their sense of
national honor made them determined to show China’s technological savvy.
Once the negotiations were well under way, the Canadians focused on points of
contention that remained unresolved; the Chinese preferred to focus on what had
already been agreed. The Canadians found the Chinese slow and unwilling to be
specific about the outstanding problems; the Chinese found the Canadians as-
sertive and too absorbed with the negative unresolved conflicts.

Differences in Ranking Issues to Be Negotiated

Price The Chinese had determined that sensible price negotiations meant getting
a good price. Negotiations between Chinese and foreign companies routinely
involve asking for price concessions and getting them. Li’s purchase costs were
market-driven, not state-determined as in earlier decades, but Li was not very ex-
perienced at costing out his expenses or profit. He was not able to rely absolutely
on the stability of his financing arrangements. So his inflated opening price gave
him a comfortable margin.
During negotiations, the Chinese had also reminded the Canadians that other
manufacturers—notably the Japanese—could undercut the Canadian price; how-
ever, the Canadians responded, with some chagrin, that their industry was not sub-
sidized by their government in the way Japanese industries were. They were touchy
about that fact (and their bargaining position as a consequence of it) within the
global field of competitors.

Payment Schedule The issue of the payment schedule was thorny. The Chinese
manager wanted some leeway so he could make the most of his capital. He was
wary about being taken advantage of.

Attitudes toward the Relationship The Chinese also welcomed a chance to form a
relationship they could pursue further. For them, the relationship was still “on” even
if in a dormant period. They were well aware of the high quality of the Canadian equip-
ment but were happy to do business with the lowest-priced supplier. The Canadians,
for their part, felt that when they lost the sale, they had lost their chance in China, af-
ter spending considerable time and money to chase it. For them the deal was dead.

Factors that Determined the Deal

The week after the Canadians left, a Japanese manufacturer’s representative made
his third visit to Manager Li’s operation. He was authorized to offer a lower price
on the equipment than the Canadians; his price on pattern-printing cylinders was
334 Chapter 9

higher, however. He also offered to have a company employee stay in the town for
four months and train Chinese employees in the maintenance of the equipment.
The Chinese manager felt this was a better deal, although he also looked forward
to future negotiations with the Canadians. The Chinese party secretary, who also
had his own personal agenda to consider, sent up to the provincial government a
report on the manager’s decision to buy the Japanese equipment at the lower price.
This enhanced his personal standing as a shrewd negotiator. He didn’t mention the
higher price of the pattern cylinders.
Pattern cylinders were the costliest part of the equipment. Since Li wanted his
firm to produce more than one pattern, his expense in the end was no lower than
it would have been with the Canadian product. (Subsequently, Li felt he had not
negotiated well with the Japanese because the pattern cylinders had to be replaced
more frequently than originally planned.)
As for the maintenance issue, the Japanese firm was happy to supply someone
to teach the Chinese how to maintain and troubleshoot the equipment. They
planned to keep this trainer in China in order to learn about other market possibil-
ities. Of course, the distance from Jiangsu to Japan is about one-fifteenth the dis-
tance to the Canwall head office. The Japanese employee could go home
frequently, whereas for a Canadian such travel would be very costly.

How Knowledge of Culture Can Help

This case illustrates a number of negotiation strategy differences and expectations
at work. All interactions with other cultures are more likely to succeed when you
know something about the other culture’s differences in values and expectations.
The negotiation communication task requires knowledge about the company and
the industry, about the culture, about processes for decision making, and about
communication preferences. Negotiation also requires a commitment and confi-
dence in being able to succeed, and the ability to enact this knowledge. In other
words, good negotiators are people with high CQs.
For instance, the Canadians could have kept in mind that the Chinese value
relationships as much as results. They are disconcerted when people they have en-
tered into relationships with suddenly disappear, like the agent they mistakenly
had thought was closely tied to Canwall. The Chinese expect to spend time devel-
oping the links that knit individuals into webs of relationships. Guests are treated
to sight-seeing jaunts and special dinners and entertainment in order to give the
Chinese a chance to share some experiences with them and chat informally. They
want to cultivate a sense of friendship and, with it, obligation. Then they will pur-
sue their goals by appealing to the obligation of friendship.
Relationships need a context in which to flourish, so the Chinese spent time
giving background information and reminding the Canadians of historical
China–Canada ties. Their value of harmony in group interactions means they pre-
fer to focus on the things that already have been agreed upon rather than on con-
flicts that remain unresolved. They are careful to avoid displays of anger or
express criticism that might cause loss of face for the other side. However, they are
masterful at using shame, which only works when one side feels it has let down
 Intercultural Negotiation Teams 335

its members and the others from the organization it represents. Pointing out the in-
consistencies in the specifications was a way of causing the Canadians shame and
thereby moving the Canadians to a weaker negotiating position. (The Canadians,
however, missed this maneuver, so it didn’t produce shame or concessions.)
In negotiations, the Chinese often dwell at length on technical details. They
want to understand the technology; they also want to be sure they are being told
the same thing each time. Since in general the Chinese do not use question ask-
ing as a primary learning method the way Westerners do, they often ask ques-
tions in order to verify the accuracy of what they have been told, as much as to
find out something they have not understood. Asking questions is also a way
to get to know someone, to develop an understanding of someone, and build a
relationship.
The Chinese perform tasks simultaneously; a mobile telephone call may be
taken by someone on the negotiating team (since Chinese mobile phones are rarely
turned off) who disappears and then reappears without explanation. The Canadians
viewed this as a most unusual interruption—either a sign of their low status in
the eyes of the Chinese or, more probably, an indication of an emergency of grave
importance—but that is because Canadians tend to do tasks sequentially, devoting
their entire attention to only one thing at a time.
The Chinese have a preference for form in negotiations or, in other words, for
following a specific protocol. This usually means that the opening discussion will
be very formally conducted. The host side will first describe themselves—who
they are and what they do—with many statistics. Then they will expect the guests
(in this case, the Canadians) to do the same. None of this has any real relevance to
the issue being negotiated, but this form is important. The preference for form and
correct manner—which preserves the harmony mentioned earlier—provides the
context within which the negotiations will take place.
The most important person on the negotiating team from the Chinese perspec-
tive is the one who is most senior in age; this is a key, along with membership in
the Chinese Communist party, to the hierarchy of the Chinese workplace. The key
persons on the Chinese team may not be much in evidence during the negotiations.
It will also be how the Chinese view your negotiating team.
Since access to authority is mediated in Chinese culture, the real decision-
swaying power may not be identifiable to a foreigner. The company doing the ne-
gotiating with Canwall was government-operated, and the municipal party
officials, while not determining the purchase of the wallpaper printing equipment,
nevertheless were involved because their goodwill could be crucial to Manager Li.
The people with the authority to make decisions—the manager, the powerful mu-
nicipal officials, and the most powerful people in the factory—were Communist
party members. Their network of obligations would also have played a role. When
a company is privately operated, there are also stakeholders whose approvals
count.
Interdependence characterizes Chinese social organization, and the members
of the Chinese team are conscious of representing a larger collective. The em-
ployees of the company, from the manager down, could spend their entire working
336 Chapter 9

lives in that factory. The county officials may never change jobs either. Their work
colleagues are also their neighbors; many are even relatives. Even after retirement,
employees are still associated with their workplace, which may provide housing,
access to food and other products, health care, and many other services.
Since the Chinese value relationships and can accept failure in specific under-
takings as long as the relationships are intact, they can tolerate uncertainty about
outcomes. If success doesn’t come this time, it may come the next. As long as the
relationship has not been ruptured, there is always a chance for future cooperation.
The Canadians viewed the loss of the sale as the end of their dealings with this
factory.
Awareness of these cultural priorities can help Burton and Raines prepare for
their next Chinese sale. Neither side is right or wrong; just different. But as sell-
ers in this case, the Canadians probably need to develop more understanding of
cultural priorities than the Chinese.
This chapter will now address negotiation teams. After that is a discussion of
the factors in negotiations. They include expectations for outcomes, the orienta-
tion of the team, the physical context of the negotiation, communication, and style
of negotiating. A discussion of the phases of negotiation follows the factors.

Teams in the Workplace

Teams are groups with common purposes, but not all groups are teams. Workplace
teams are assembled in order to achieve a goal for the organization, such as nego-
tiation. They are unlike social groups that are formed by people who want to spend
time together. Teams have leaders and members have a range of specific roles, so
that by interacting, the teams can be productive units for larger organizations.
Daft and Lane offer a good definition of a workplace team: A team is com-
posed of two or more people who interact and coordinate their work to
achieve a shared goal.4 Most teams have fewer than 15 people, and they work to-
gether regularly. They may meet face-to-face or virtually; they may communicate
by e-mail, in hallways and elevators, or by video teleconferencing.
Teams often have specific tasks or functions within an organization. Negotia-
tion is one such task. Often, but not always, teams have the responsibility of mak-
ing decisions or solving problems. Organizations have increased the number of
teams over the past several decades in a response to spreading globalization and
the competition it brings. More and more organizations are using teams instead of
individual managers to deal with complex issues organizations face.

Organizational Goals for Teams in the Workplace

Organizations form teams in order to have better results for their strategies and
goals than they would get from individuals. According to recent studies, teams
bring benefits to organizations, such as:
• Increased productivity
• Effectiveness in decision making
• Improvement of quality
 Intercultural Negotiation Teams 337

• Increased innovation
• Enhanced employee satisfaction
Team members often see different benefits to teamwork, including:
• Satisfaction in working with fellow employees
• Accomplishing more than individuals alone can
• Developing a record of cooperative achievement
The three individual-level ways to evaluate teamwork are (a) personal effectiveness,
(b) task effectiveness, and (c) relational effectiveness.
Because teams can be assembled quickly, set a task, and be dissembled quickly,
they are flexible and responsive when organizations need tasks done.
In this chapter on negotiation we discuss teams as if a team’s members are all
from the same culture. That provides an opportunity to examine later in this chap-
ter what happens when teams from one culture communicate with teams from
other cultures.
Of course, not all communication between teams of different cultures involves
formal negotiation tasks. Some intercultural team communication occurs on task
forces between two organizations, such as when a company merges with another
firm from a different culture, or when two or more companies share a contract.
However, negotiation gives us a chance to look at intercultural communication be-
tween teams in detail. We begin with the roles of team members.
Team members play different roles within the team. However, roles vary ac-
cording to culture, so team roles in individualist cultures are compared with team
roles in collectivist cultures.

Roles of Team Members in Individualist Cultures

Team members in Western cultures fill a number of roles, from five to nine, ac-
cording to various American scholars:
• Leader
• Idea person
• Skeptic
• Recorder
• Gatekeeper
• Finisher
• Implementer
• Negotiator
• Specialist

Leader The first role is leader. The leader is responsible for setting the agenda
and informing the team members about what their purpose is. The leader
stresses the shared goal. In addition, the leader’s job is to try to make sure the
team has what it needs in order to achieve their purpose. This might include
338 Chapter 9

information, or a location in which to meet, or connections for virtual meetings

and communicating.
The leader monitors progress. The leader often has the responsibility of en-
abling team members to act together, and is a facilitator or coordinator for getting
members to communicate with each other.
Team leadership may rotate among team members. This is especially true in or-
ganizations that believe any member can be the leader, and do not see the same
people as the leaders in every team.

Idea Person Another role is idea person, or suggestion-maker. This role in-
volves coming up with ideas for the team to discuss. Many members may play this
role at the same time. Their role is to share knowledge and expertise and not with-
hold information. They also stimulate creative thinking from others. They ask
questions, even seemingly “dumb” ones. Often their new viewpoint can help the
team members reach new understandings.

Skeptic Some teams have at least one member whose role is a skeptic, to ana-
lyze ideas. This member’s job is to respond thoughtfully to others’ ideas. A skep-
tic often has special expertise. If the skeptic sees value in an idea, and supports
it, the team may agree. When the skeptic sees little value in an idea and is nega-
tive about it, the team may also agree. The role of skeptic can therefore be very
influential.
When the skeptic sees his or her role as finding flaws in every idea, the result
can be conflict. Other team members look upon such a person as negative. In
equalizer teams, everyone else may disagree with the skeptic, setting up division
in the team. In destroyer teams, negativity contributes to members taking sides.
A useful critic shows respect for every idea and each team member. Such a role
can prevent the team from groupthink, and becoming an equalizer team where no
critical thinking at all applies to any idea.

Recorder The recorder is the team member who keeps careful notes about the
team meetings and the team’s work. The recorder captures the discussion among
members, ideas raised, and votes taken. Decisions are recorded.
The record is very important in individualist cultures, where results are the way
team effectiveness is measured. Sometimes team members are absent from meet-
ings, or do not accurately remember what was decided in past discussions. The
record is the official account of what happened, what people said, and what was
decided. Although team members may have a different memory or understanding
of what is happening with the team, what is in the record is the reality.
The record makes up part of what the team presents to the organization’s man-
agement, to show progress toward goals and to show process. Assessment of the
team depends in some part on the record.

Gatekeeper The gatekeeper has the role of encouraging participation from

everyone. Sometimes the leader also performs this role, but the gatekeeper can be
any team member. This person keeps track of people’s opinions and contributions
 Intercultural Negotiation Teams 339

to discussion. If someone seems to want to participate but does not, the gatekeeper
can turn the team’s attention to listen to that person. If one team member domi-
nates the discussion, the gatekeeper can ask that person to let others speak.
The gatekeeper role implies fairness and a lack of personal bias. If the gate-
keeper only encourages team members to speak with whom the gatekeeper agrees,
and shuts out other voices, then the gatekeeper is building a destroyer team.

Finisher A finisher is a team member who urges the team members to finish
their work according to the schedule. This role may by played by the leader, or
another team member. The finisher worries about deadlines, and reminds the
others about what remains to be done.
Finishers also pay attention to detail. They want the finished work to be with-
out errors.

Implementer Finishers are also often implementers. The implementer role may
be taken by several people at once. Implementers look for ways to put the team’s
ideas to practical use. They make plans. They are well organized, and other team
members rely on their help to get things done. These team members are disciplined
in the way they approach their work.

Negotiator The negotiator role is often taken by more than one team member.
Negotiators work to develop relationships of mutual respect among team mem-
bers. They negotiate agreements when conflicts arise. They are committed to help-
ing the team work cooperatively. For negotiators, the process is as important as, or
more important than, the actual work of the team.
In successful teams, most members are negotiators.

Specialist A final role is the specialist. These members have expertise to help
the team accomplish its aims better. Some teams are made up of many specialists,
and other teams have only one or two. Besides special knowledge, a specialist may
have particular skills. For example, often teams need information that is new to
many members. A specialist may be someone who can get information so the team
can continue its work.

Roles of Team Members in Collectivist Cultures

Collectivist cultures have fewer roles, but the responsibilities of several are greater.
• Leader
• Leader surrogate
• Suggestion maker
• Consultant
• Specialist
• Implementer

Leader In collectivist cultures that are also hierarchical, such as East Asian cul-
tures, Arab cultures, Latin American cultures, and African cultures, the leader is
340 Chapter 9

the most important member of the team. Leadership rarely rotates. Instead, the
most senior person on the team, and the one with the most responsibility granted
by the top levels of the organization, retains the position of team leader. The
leader’s role is to set the agenda, articulate the goal, make sure the team has re-
sources to do its job, monitor and direct members, and be aware of possible con-
flict areas among members in order to resolve them before they appear.
The leader usually takes on the role of finisher, encouraging the team to meet
deadlines and reminding the team of work that is still to be done.
Because the leader has greater face to lose than any other member of the team,
the leader may not engage in much communication during team meetings. The
leader’s contributions may be communication through close subordinates who are
also members of the team.

Surrogate for the Leader One or more team members may be communicators
with team members on behalf of the leader, and serve as conduits for team mem-
bers to communicate with the leader. In other words, they are mediators between
team members and the authority who is the leader.

Suggestion Maker More than one member may take the role of offering ideas or
suggestions, and stimulating discussion. Knowledge and expertise is shared with
the team in order to make the team’s work successful.
The suggestion maker also takes over the role of the skeptic in individualist cul-
tures. Rather than openly critique an idea, the suggestion maker usually offers another
alternative idea as a way of avoiding the possible negative consequences from another
team member’s idea. This behavior preserves harmony among the team members,
which is as important in collectivist cultures as working out a solution to a problem
or arriving at a decision. For this reason, suggestion makers are highly valued team
members. They may use humor with team members to communicate ideas outside the
hierarchical communication structure that makes communication formal.

Consultant Multiple members of the team may take on a consulting role. This
role involves conferring with members outside the scheduled meetings, to uncover
unspoken concerns and find ways to reconcile them. Because the goal is to arrive
at a consensus, this consultation practice outside the actual meetings leads more
quickly to agreement when the team meets.
Consultants take on similar tasks to negotiators in individualist cultures, but
their communication is largely outside the team meetings.
Consultants also perform the role of gatekeeper in individualist cultures, in-
sofar as they keep track of members’ concerns and reactions to what is being said
at meetings. However, consultants do not encourage open disagreement at meet-
ings, since that could cause loss of face for the member who has a different view,
whereas gatekeepers in individualist cultures may urge members to speak openly
about divergent opinions.
Consultants may be especially aware of nonverbal behavior of team members,
and read unspoken messages, which can later be the basis for personal communi-
cation outside the meetings.
 Intercultural Negotiation Teams 341

Specialist As with teams in individualist cultures, specialists have knowledge

and skills that help the team accomplish its goals. They are sometimes chosen as
team members because of the specialized help they can offer.
One specialist role may be to generate a written or oral report to the organiza-
tion’s managers.

Implementer More than one team member may perform this role. Usually at the
direction of the leader, in a communication before all the team, a member will take
responsibility for some aspect of the team’s overall task. Implementers report
progress back to the team and leader.
Note-taking and record-keeping of all that has been communicated between
team members during the work on a task is not as important as the final commu-
nication, which is with one voice, from the team. For that reason, the role of record
keeper at meetings is usually not important.

Communication Effectiveness in Teams

As mentioned earlier, a team’s effectiveness comes from three areas: personal ef-
fectiveness (the individual’s sense of satisfaction), task effectiveness (the product
or outcome of the team’s work), and relational effectiveness (the ability of the
group members to work together in the future).5 Let’s look at how culture affects
these three areas of team effectiveness and communication.
In teams whose members come from collectivist cultures, the relational effec-
tiveness of the group is the most important area in teamwork. Collectivist cultures
form teams that have cooperation and collaboration as high priorities. Although
they may be in danger of agreeing too easily, and thereby missing the depth of
analysis of ideas that may diverge from or contradict what is being discussed, col-
lectivist cultures’ teams understand the importance of common goals. They are
usually eager to work together as a team.
Team members from collectivist cultures have interdependent self-construals.
That is, each individual sees himself or herself as part of a network or group. Con-
sequently, the individual’s personal satisfaction with the team derives from the in-
dividual’s interdependent self-construal. The individual’s sense of personal
effectiveness as a team member is directly related to the individual’s sense of be-
longing to—and being valued by—the team.
Collectivism and interdependent self-construal affect team communication in
the following ways:
• Communication styles are related to group goals.
• Other-face concerns predominate in the choice of topics of communication.
• Others’-goals concerns prevail in conflict communication.
Collectivist teams with interdependent self-construal communicate in ways that
will lead to good team relationships, not merely the completion of tasks. Collec-
tivist teams communicate using indirectness. Members may use metaphor and
storytelling in order to make a point, and may use jokes and humorous references
to comment upon the formal discussion. Indirect communication comes from
342 Chapter 9

other-face concerns. The team’s aim is to complete its tasks with unity of mind,
and to communicate its outcomes with one voice.
In teams whose members come from individualist cultures, recognition for the
commendable performance of tasks is the most important aspect of effective team-
work. Personal satisfaction comes from knowing one’s work is valued. Relational
effectiveness is valued, but not as highly as recognition of the excellence of the work.
Team members from individualist cultures have independent self-construals.
That is, each individual sees himself or herself as independent from the other
members, a unique human with his or her own emotions and values concerning the
tasks and the other members.
Individualism and independent self-construal affect team communication in
several ways:
• Communication styles reflect individual goals, rather than group goals.
• Self-face concerns predominate in the choice of topics of communication.
• Own-goal concerns prevail in conflict communication.
Individualist teams communicate using directness. Members get to the point, use
evidence to back up their ideas and challenge others’ ideas, and express disagree-
ment openly. The team’s aim is to get to the best possible outcome as efficiently
and effectively as possible.
The more similar the members of a team are, the more likely they will com-
municate similarly with each other. Their norms for communication may make it
hard for them to imagine what the communication norms are for a team that is dif-
ferent from them. For example, a collectivist negotiating team may not foresee the
individual, independent communication of an individualist negotiating team. The
individualist team leader may not be evident, when everybody is talking and when
each team member is saying something different. The collectivist team may seem
“programmed” to the individualist team, who can be puzzled by hearing the same
message from one or two team members, and nothing from anyone else.
Culture affects team communication as it does other kinds of workplace com-
munication. Because teams are used widely in organizations, not only for negoti-
ation purposes, it is important for you to know how teams communicate, how to
assess their effectiveness, and how culture influences team communication.
For a detailed discussion on multicultural teams and how they fit into the over-
all business strategy and the achievement of corporate goals, see Chapter 12.

Factors in the Negotiation Task

The next section of the chapter discusses the special communication task of ne-
gotiation, which involves four factors:
• Expectations for negotiation outcomes
• Team composition and motivation
• Physical factors
• Communication and negotiating style
 Intercultural Negotiation Teams 343

The aim of this discussion is to show how culture affects negotiations. A num-
ber of books on how to negotiate exist in your own culture. Primarily, since this is
a book about communication, we’ll concentrate on the fourth item. But we’ll ex-
amine all four aspects of negotiating, beginning with expectations for what the ne-
gotiations will accomplish.

Expectations for Outcomes

Different Goals
Different sides of the negotiating table often seem to be after very different things.
This may appear to be the result of shrewd negotiating tactics—and maybe it is—
in which a side doesn’t disclose openly what its goals are. You may decide the other
team is craftily hiding what it wants behind some other, seemingly unimportant
aims. But another reason for this obliqueness may simply be that they want some-
thing different from what you think they want. People from different cultures of-
ten are looking for different outcomes. As far as possible, you need to identify
ahead of time what the probable goals of the other side are.
For example, in the case of the Chinese–Canadian negotiation, the Chinese
had four goals: (1) to buy the best quality they could find at the very best world
price, (2) to develop an ongoing relationship with Canwall, and (3) to learn as
much as they could about Canwall’s new technology. Had the contract been
signed, the Chinese also would have expected (4) exclusive access to the Cana-
dian equipment. The Canadians understood only the first of the Chinese negoti-
ation goals. The second goal may drive the opening encounters with high-context
cultures.
As high-context negotiators, the Chinese were concerned with getting a sense
of the people they were dealing with.

Fairness and Advantage

As the case shows, the Chinese were interested in developing a relationship. Ne-
gotiating teams from other Asian cultures—as well as teams from African, Middle
Eastern, Latin American, and southern European cultures—usually are, too. A re-
lationship, as was discussed in Chapter 4, implies a willingness to incur indebt-
edness. This may help explain the tendency among countries on the lower end of
the technology scale, as illustrated in the opening case, to believe the wealthier,
more advanced side should give proportionately more than the less advanced, less
wealthy country. The less advanced team will thus be indebted to the other party
in the relationship. The payback date, however, may be far into the future, since
the collectivist view of relationships is that they extend for generations. The
Philippines and Indonesia are among the countries today that are looking to
bridge the digital divide.
North Americans and Europeans are not usually happy with an agreement that
gives one side greater advantage than the other. They are accustomed to thinking
of a “fair” settlement as one that evenhandedly splits advantage between the two
parties. But obviously the 50–50 ideal is not shared among all cultures. As some
researchers point out, the use of the English term fair play does not seem to be
344 Chapter 9

translatable into some other languages; if the term does not exist, it is likely the
identical concept does not exist either.6

Negotiation Outcomes: Winning, Losing, and Reaching a Stalemate

Competition cultures, especially those that put a strong priority on achievement,
doing, accomplishing goals through planning and taking control, and national or
family honor (powerful in Middle Eastern and Korean companies, for example),
look upon negotiations as situations to win.
Winning means not having to make concessions beyond the reserve point—the
bargaining limit established by a negotiating team before the negotiations begin—
but still gaining the team’s objectives.
In order to “win,” a team may have to give up some wished-for things. Com-
promise is a standard expectation in bargaining and negotiation in many Western
countries, and a mode for resolving conflict as we have seen in Chapter 8. The no-
tion of fairness in results-oriented cultures means that in compromise, both sides
have to give a bit, and the bits are equal. A good end is achieved when the com-
promises made by each side are about the same size. However, you may need to be
careful about using the word compromise:
In some cultures, such as Iran, the term compromise has moral connotations and
implies a corrupt betrayal of principle. So it has to be kept out of your vocabulary.7

Russians do not view compromise as a fair and equitable conceding of position

by each side:
Russians regard compromise as a sign of weakness, a retreat from a correct and
morally justified position. Russians, therefore, are great “sitters,” prepared to wait
out their opposite numbers in the expectation that time and Russian patience will
produce more concessions from the impatient Americans.8

Win–Lose
Winning can also mean you have achieved an agreement in which the other side
gives up more than you do. To some negotiators, however, winning means more
than getting everything; it means beating down the other party so it has to go past
its reserve point. This may involve price or schedule or marketing terms, or any of
a host of issues. Or winning may mean making a small compromise but demand-
ing a large compromise from the other side. In other words, in this outcome win-
ning means that the other side also has to lose. This is sometimes called zero-sum
negotiation.

Win–Win
Collectivist cultures that value ongoing relationships between organizations often
prefer outcomes that emphasize the advantages gained by both sides. In other
words, the objectives are win–win or non-zero-sum. When both sides win, nobody
loses face or is shamed.
The difference between a win–win outcome and compromise lies in a negotia-
tor’s focus. If the negotiator primarily thinks of his or her own team’s outcome, the
 Intercultural Negotiation Teams 345

attitude will probably be to expect compromise: what we will gain in return for
what we will have to give up. The focus is on our loss as well as our gain. If the
negotiator looks at both his or her own team and the other team, then the attitude
will probably be to expect each side to gain. The focus is on mutual gain. One of
these three modes is usually what a negotiator expects: compromise, win–lose, or
win–win.

Stalemate
However, negotiators sometimes have to accept a stalemate when no agreement
can be reached. In this outcome, the negotiating parties walk away from the table
without any agreement. Nobody enters into trade negotiations with this goal in
mind. It represents a failure of the negotiation. Occasionally, one side gains every-
thing without giving up anything, and the other side simply agrees. In this case,
rather than a failed negotiation, no negotiation has taken place. This is a simple
agreement without conflicting interests. The two fundamental characteristics of all
negotiation are (1) agreement about a goal and, at the same time, (2) disagreement
about how to reach it:
“Without common interests there is nothing to negotiate for, and without conflict
there is nothing to negotiate about.”9

Finally, fundamental advice about expectations for the outcomes of negotiation

is to make sure what you are negotiating is negotiable. It may not be negotiable be-
cause the party negotiating with you doesn’t have the power or access to grant what
you want, or because it doesn’t exist, or because what you want simply cannot be
obtained.

Orientation of the Negotiating Team

Negotiators fit one of two basic descriptors: strategic or synergistic.10 A strategic
negotiator is out to win and sees the process as something to be won through clev-
erness, competitiveness, and even deceit. This negotiator is suspicious of, and hos-
tile toward, the other side. The style is confrontational. A synergistic negotiator
wants to avoid confrontation and is cooperative rather than competitive. This ne-
gotiator focuses on common interests but allows opposing interests to exist even
beyond the point at which agreement is possible. The style is trusting and friendly.

Members with High Status

Negotiators frequently are chosen because they are high-status members of the
organization or society. Their presence on the team indicates the organization is
serious about concluding negotiations successfully. In the case example, Canwall’s
president—the highest-status person in that company—led the negotiating team to
China. Many firms follow the practice of having lower-level negotiators do the
groundwork and then sending in top-level people to close the deal. Considerable
“face” can be gained by the top-level people when a negotiation reaches a suc-
cessful conclusion, but having the lower-level workers involved is also useful.
A manager of a Japanese–Chinese joint venture in Shanghai told one of the
346 Chapter 9

authors that high-level executives and politicians had initiated that joint venture,
following the successful outcome of negotiations, with great fanfare. But it was
low-level employees who had to make it work. He said their valuable contributions
were not solicited during the negotiation process, at a time when potential prob-
lems and conflicts could have been addressed. Nor were pictures of the lower-level
employees in the newspapers!
The presence of a high-level person on the team also signals the authority to make
a binding agreement. Some companies delegate that authority to other team members
when a high-status person is not part of the team. Negotiators from some results-
oriented cultures value efficiency—achieving goals with the smallest expenditure of
time and money—more than status. Consequently, they view as wasteful the practice
of sending a team to negotiate that has to keep going back to higher authorities at
home for decisions. They want their negotiating team to be able to conclude an agree-
ment on the spot. Koreans, with their value of respect for seniority, want their older
and higher-status authorities to exercise their judgment about agreements. If the se-
nior person is in Korea and the negotiations take place in another country, time must
be allowed for the senior person to be reached and the progress of the talks discussed.

Members with Special Expertise

As has been noted earlier, one of the roles of team members is specialist. Some
negotiators become members of a team because of their specialized expertise. For
example, a person with technical or technological knowledge may be very impor-
tant, or an expert in financing with accurate cost figures may be able to make the
difference between success and failure. Someone with marketing expertise in a
specialized product or legal experience in a particular country can make or break
negotiations. For example, one person’s experience with Japan’s import regula-
tions governing agricultural products and health inspections enabled a German
company to negotiate an agreement for the sale of sausages to Japan. The exper-
tise may consist of knowledge of the culture and values of the other side. Richard
Welzel, a German-Canadian broker of food-processing equipment, was able to
negotiate a purchase of secondhand German-made stainless steel machinery in
Bulgaria because his expertise meant he understood the quality of the machinery.

The Translator
One of the most important people on the team is the translator. This role is discussed
also in Chapter 2, and although language skill means it is a specialist role, it is of
such importance in international negotiation, it deserves separate recognition.
Many negotiating teams choose not to take their own translator, but rather de-
pend on the host country to supply a translator. This is usually a mistake. Obvi-
ously, a translator’s first loyalty is to his or her employer. The Chinese who
supplied the translator to the Canadians in the Canwall case could have asked
their translator for daily reports on what the Canadians said when they were
alone with her. This would have given the Chinese a great advantage in the ne-
gotiations. Similarly, a Chinese team in another country would be wise to bring
its own translator.
 Intercultural Negotiation Teams 347

Having your own translator means you have an ear to hear what the other team
says in side conversations and comments among themselves. English-speaking
teams frequently rely on the widespread use of English around the globe. They as-
sume it is possible to negotiate in English—and cheaper—if they don’t have to
take a translator with them. But they miss out. They don’t understand what the
other team is saying when its members converse in their own language. When the
English-speaking team has a side conversation, however, the other team’s transla-
tor and English-speaking members can understand what is being said.
Another benefit of having your own translator is that the translations by the
other side’s translator can be heard and understood by yours. This means errors or
omissions—which are frequently unintentional—can be corrected immediately.
Translation is extremely hard work and doesn’t stop just because the formal ses-
sion is over. At social gatherings, the translators work just as hard as they do at the
meeting table. It is understandable that a tired translator may misunderstand or
mistranslate. A second translator offers a check against errors.
Translation errors are mines waiting to explode around unsuspecting nego-
tiators. Simple mistakes in translation can cause days of delay while a misun-
derstanding is identified and cleared up. One key to preventing errors is not only
to have your own translator but also to have a translator who is familiar with the
vocabulary of the business. Someone with a degree in language studies may
have read bookshelves of literature in the other language but lack technical vo-
cabulary. In fact, the translator needs to have a technical vocabulary in both
languages.
Another factor in the selection of a translator is specific language skills. Many
foreign firms negotiating in China take with them a Chinese person who lives in
the firm’s country and works for the firm. This can be excellent, provided the lan-
guage spoken by the Chinese employee is the language spoken in the area of China
where negotiations will take place. The Chinese also, like people in many coun-
tries around the world, practice regional snobbery about accents.
Like India and many other countries, China is a land of multiple dialects. The
regional language in the case study example would have been Shanghai dialect,
but in addition, the factory town has its own dialect. That means even if the Cana-
dians from Canwall had brought their own Mandarin-speaking translator—even if
they had found one who also spoke Shanghai dialect—the opposite team could
possibly have exchanged comments in its local dialect that would not have been
understood by the Canadian translator. Similarly, in India the regional dialect (and
there are over 600 of them) may not be known to your translator. This means the
microphone—your translator—for eavesdropping on the other team’s side conver-
sations is closed off.
You can make your translator’s job easier, as mentioned in Chapter 2, if you
speak in very straightforward language. Consider, for example, the difficulty a
translator would have translating the warning uttered by a spokesperson for a non-
government international aid organization who said the United States should con-
tinue its involvement in rebuilding a country that had been at war “or else the line
will not be drawn in the sand and we’ll be back in the soup again.”11
348 Chapter 9

Analysis of the Other Side’s Team

Analysis of the other team is very important. With a bit of application of what you
have learned about a culture from the questions you have posed, you can see the
cultural priorities that generate communication behavior at the negotiating table.
Take a Kuwaiti negotiator, for example. Posing the questions from Chapters 3
and 4 results in the following information. Kuwaiti culture encourages competi-
tiveness among organizations. Women are not usually part of negotiating teams.
Achieving goals for the sake of the group’s honor—often the royal al-Sabah fam-
ily’s honor—is very important, although the will of Allah may intervene. Goals
may be long-term, and Kuwaitis are patient. The society is hierarchical, with mem-
bers of the ruling family in key positions. Access to authority is mediated. Form
and protocol are important, and negotiations may have a ceremonial aspect. Cour-
tesy and patience are characteristic of Kuwaiti interaction with others, since ac-
ceptance in the group is an important part of their Bedouin heritage. Language
may be used flamboyantly and with an eloquence that is valued for its own sake,
beyond or beside the meaning of the words. The way the Kuwaiti understand and
think about issues is to take several factors into account rather than move in a men-
tal linear path. The chess-playing characteristic of some negotiations is renowned.
A display of emotion is typical.
Once you have gathered responses to the culture questions and have considered
typical behavior, a picture of the Kuwaiti negotiator emerges. He is educated and
skilled, a member of the ruling family or valued by it, with a strong expectation
that negotiation will involve a need for cleverness on his part in order to win. Sus-
picion and hostility will probably not be evident because he will display Kuwaiti
politeness and Bedouin hospitality. His love of verbal play and the importance of
emotion in communication may make the Kuwaiti negotiator’s wording of mes-
sages seem theatrical to a low-context communicator who shuns ambiguity and
trusts in directness and simplicity. He will probably possess technological exper-
tise and expect to be given accurate and complete information. His religion, Islam,
will frame his thinking and communication, and he may quote the Qur’an as a
guide for his behavior. He will be patient and will be ready to spend months ne-
gotiating. Finally, he will value a personal relationship with the negotiator on the
other side of the table.
This analysis is what a negotiator should do for any team member he or she
faces from another culture.

Members’ Decision-Making Authority

You will want to consider as far as possible the question of how much authority
rests with the negotiating team to conclude an agreement. In hierarchical cultures,
the ultimate authority may lie with someone who is never present at the negotiat-
ing table. Where hierarchy and consensus both characterize a culture, the most in-
fluential person may be present at some meetings but may not be introduced in a
way that suggests the power that person wields.
In Japanese negotiations, for example, the senior member of the group may not
appear at all—or even any—meetings. He (nearly always it’s a man) will receive
 Intercultural Negotiation Teams 349

regular and detailed reports, however, of all that is said during the negotiations, and
he will direct his team members to proceed in a certain way. No agreement will be
reached without his approval. No hint will be given by team members that an
agreement could exist until they have had a chance to discuss things with him. If
the senior authority is not physically present as a member of the negotiating team,
he may be in a hotel room or office nearby. Or he may be in another city or coun-
try. In that case, obviously consultation with him will take more time than if he
were present. On the other hand, the team members you are negotiating with may
have full power to commit their organization to an agreement.

Team Members’ Status

Members of the other team, like yours, may be chosen because of their status. In
addition to high status within the organization, sometimes being in a special rela-
tionship to someone in power is a reason for inclusion on a team. The relatively
young and inexperienced nephew of the president, for example, may have a place
on a negotiating team mainly because his uncle owns the company. But this may
not simply be nepotism. This may make good business sense: It may be that a fam-
ily member can be trusted best to look after the interests of the family in reaching
a certain agreement. If the family rules the country, as in some Middle Eastern na-
tions, then the family’s interests coincide with national interests, and family mem-
bers play key roles in foreign negotiations.
We’ve already seen that family loyalties can motivate negotiators, and so can
company loyalties or national loyalties. The desire to win through the use of clever
strategies can motivate negotiators. The wish to develop a relationship that will
continue and will allow for indebtedness and favors is a motivator. The value of
harmony in human interactions, along with avoidance of confrontation, can moti-
vate negotiators to reach agreement rather than continue to hold discussions.

The Physical Context of the Negotiation

Where the negotiation takes place—the physical context for the communication—
has an impact on the outcomes. For example, if the negotiation takes place by
telephone or fax, the nonverbal messages have a diminished impact compared
with face-to-face negotiation. Indeed, most negotiation involves meetings be-
tween parties. The host team for the negotiations has an advantage because the
environment is under its control. The guest team doesn’t have the same degree of
control.

Site and Space

The hosts can determine what city and what building will hold the meetings. If it’s
the boardroom of the building where the host organization members work, all the
resources of that organization are at the disposal of the host team—from photo-
copiers to telecommunications and from files to assistants. Therefore, the hosts
have an advantage of convenience. Mobile electronic telecommunication devices
such as BlackBerrys are increasing the convenience of access to one’s own office
for the visitors but there are still advantages to being in one’s own setting.
350 Chapter 9

The home negotiators’ workspace will be familiar to them. It will not be fa-
miliar to the visitors. The visitors will be getting used to an unexpected environ-
ment, and this can distract them from their negotiating goals. The visiting team
may experience some culture shock (see Chapter 1) that could increase the longer
they stay.

Schedule and Agenda

Jet lag can make the visiting team unable to perform well on the hosts’ schedule.
People whose internal clock says it’s midnight find it difficult to stay alert even if
the clock on the wall says it’s 11 a.m. Some teams have been known to conduct
very long sessions at a time that is uncomfortable for a visiting team suffering
from jet lag.
Control of the schedule also often carries over to control of the negotiating
agenda. For example, hosts may suggest postponing certain discussions until
guests are more rested, with the result that the hosts control the order in which is-
sues are addressed while giving the appearance of concern for the guests’ comfort.
The order of the items discussed on the agenda can have an impact on the out-
come. If the two sides agree to one principle or goal, then subsequent points may
be presented as simply subsidiary to what has already been agreed.

In Focus

Dr. Jehad al-Omari, a consultant with the British firm Canning, says that for him, an Arab, an agenda is a very Western
thing that is an effort by Westerners to compensate for their short and limited memories. Agendas seem to him to be
impersonal, linear, and rigid. They may lead to confrontations. He prefers the flexibility of being able to take things off
the table if the time doesn’t seem right and to avoid potential confrontations. He likes to be able to surprise his coun-
terpart and to spend time getting to know him.
“As a high-context person, I do not like the Western reductionist approach that tries to do one thing at a time, it is
all so monochronic. . . . What I like is to be able to approach the meeting in a holistic way, to spend some time dis-
cussing everything and nothing, to get the feel of my counterpart, his mood and temperament, his eagerness and readi-
ness, before I launch into business.”12

The power of the keeper of the agenda is considerable, since the agenda deter-
mines when meetings take place and what amount of time is allotted to discuss
which issues. An issue that isn’t on the agenda may never be discussed. The visit-
ing team has to be alert to its responsibility to participate in setting the agenda.
Negotiators often also operate from a “hidden agenda” that is not shared with
the other side. The “open agenda” contains the agreed items for discussion, while
the “hidden agenda” is the priorities a team has agreed upon privately.
Arab negotiators may have different ideas about how much sharing of priorities
they are willing to do compared with, say, British negotiators.
 Intercultural Negotiation Teams 351

Use of Time
The use of time is related to the agenda. Monochronic cultures see time as mov-
ing through the agenda in a linear pattern and excluding whatever is not scheduled.
Polychronic cultures see time as allowing simultaneous activities that take as long
as they need to, even if that means bending the schedule, and including whatever
needs attention. (These concepts were introduced in Chapter 3.) When negotiators
from monochronic cultures face polychronic negotiators, the guests have the
greater responsibility to accommodate to the hosts.
Russians often use time to their advantage as part of the nonverbal communi-
cation in negotiations. For instance, they may delay negotiations in order to make
the other side anxious. This behavior toward North Americans, for instance, is
based on two assumptions: Americans “regard compromise as both desirable and
inevitable, and . . . Americans feel frustration and failure when agreements are not
reached promptly.”13
Negotiators from the United States are well known for their impatience. Timo-
thy Bennett, a former United States trade negotiator to Mexico, characterizes his
countrymen and countrywomen as thinking that some solution is better than no so-
lution, which leads them to compromise more than their Mexican counterparts.14
Decades of negotiations have taught the Japanese that Westerners, especially del-
egates from the United States, are not patient. If the Japanese prolong the negoti-
ations sufficiently, the Westerners will probably agree to whatever the Japanese
want. In Japan, however, to take time is to show maturity and wisdom. Haste shows
poor judgment and lack of genuine commitment. Foreign negotiators who go to
the Middle East often complain that they don’t get meetings. Foreign negotiators
who go to Latin America complain that they have to wait. In Asia, foreign nego-
tiators complain they do too much sight-seeing and not enough negotiating. In the
United States, foreign negotiators often feel rushed.

Host Hospitality
“[In Hungary] we drink palinka, a plum or cherry brandy. It’s 200 proof. When we
start, the Americans are already drunk. The Hungarians aren’t. We’re seasoned. In
Hungary, the Hungarians use this. They try to influence Americans with good drink
to sign a favorable contract. It’s an instrument to oil the wheels.” . . . A foreign man
who can’t hold his liquor is probably discarded as a potential business associate. . . .
[It is] reason to break off negotiations.15

Most negotiating involves some socializing (discussed in some detail in

Chapter 7). This may be a way to initiate the negotiations and establish some
advantage for the host. Sometimes when negotiations are stuck, a meal together or
an evening out can be a good strategy for refocusing the agenda. Socializing is often
done at the end, after negotiations have been concluded favorably. The Canwall
team was treated to a farewell banquet; in China, as in other Asian countries such
as Korea and Vietnam, the toasts that are made at welcome banquets carry messages
about what items are particularly important to those negotiators.16 In all cultures,
socializing provides an opportunity to get to know the other party better and build
relationships with its members. However, the food, beverages, and beds in which
352 Chapter 9

visitors sleep may be unfamiliar. With jet lag and unfamiliar food may come di-
gestive and sleep disorders, and the visiting team may suffer a loss of physical
well-being.

Communication and Style of Negotiating

Negotiation is a special communication task that uses special verbal and nonver-
bal skills.

In Focus

A recent study of negotiation between companies in New Zealand and Argentina asked businesspeople to rate the im-
portance of four factors in negotiation: communication, dependability (of the other party), customer orientation, and
cultural sensitivity.17 Cultural sensitivity was rated as least important by the respondents. Communication was the most
important factor.
At first glance, this seems to contradict what this book is saying: that culture matters. However, the study goes on
to report that the researchers broke down communication into four dimensions: friendliness, congeniality, keeping to
time, and punctuality. Yet all these dimensions are determined by culture. What defines “friendliness” varies by cul-
ture, especially friendliness on first face-to-face contact. Is it friendly to shake hands or not? To greet visitors stand-
ing or to go to the street door to escort them in? What constitutes “congeniality”? Smiling, maintaining harmony and
avoiding confrontations, emphasizing the positives, trying to cooperate—all are driven by culture, and all play a part
in the enactment of culturally appropriate behavior. Issues of time have already been discussed here (and in Chapters 3
and 7) as culturally defined. So in this study, “communication” was another way of talking about culture’s influence on
negotiation.

We will now look at specific factors in negotiation communication.

Differences in Focus
Focus may be positive or negative, explicit or implicit, general or specific. Cul-
tures that emphasize communication as a tool for articulating specific goals in or-
der to accomplish them tend to look upon negotiations as a series of points to
“settle.” Their language in negotiations is explicit and zeros in on what has yet to
be agreed. These explicit statements may in fact be questions and emphasize neg-
ative points of disagreement, such as, “What do you still not like about this detail
of product design?” Americans prefer this direct approach because their aim is to
clarify and resolve an issue.
But cultures that use communication to encourage harmony, preserve face, and
develop long-term relationships are not comfortable with direct and explicit talk.
In Japan, for instance, getting straight to some point about which agreement has
yet to be reached may result in confrontation and emotions—even anger. Someone
may lose face. The Japanese, like negotiators from other Asian cultures, prefer to
emphasize the positive points of agreement. They begin with general terms and
 Intercultural Negotiation Teams 353

seek agreement from the other side about general goals. Then regardless of the re-
maining details, the general agreement holds the two sides together in a relation-
ship. They do not ask—and do not enjoy being asked—pointed questions. They
want to develop relationships because once a relationship exists, each side has an
obligation to consider the needs of the other, so the issue resolves itself.
The Chinese military strategist and philosopher, Sun Tzu (pronounced “swin
zuh”), writing in the third century B.C.E., described the inexhaustibility of indi-
rect tactics as being as unending as the rivers and as recurring as the seasons.18
Potential conflicts can be diffused by indirectness. In more modern times, in-
direct “many-layered” negotiation with the Chinese has been compared to

courtyards in the Forbidden City, each leading to a deeper recess distinguished

from the others only by slight changes in proportion, with ultimate meaning resid-
ing in a totality that only long reflection can grasp.19

The metaphor of many-layered courtyards is an apt one to describe the way the
negotiations proceed.
The approach that focuses on particulars, especially unresolved ones, is typi-
cally Western. Negotiators look at the unsettled issues and one by one address
them. That approach is logical for the Western problem-solving mind. But it isn’t
shared by all cultures. In Asia, unresolved issues are part of the whole web of the
relationship being woven by the negotiation process. A simultaneous, not sequen-
tial, approach means the negotiators look at unresolved issues as potentially re-
solved because of the developing relationship between the two sides.
Businesspeople from Western cultures need to remember that Japanese, Chi-
nese, and most other Asians dislike confrontation and will not argue when they feel
they are right. Attacks on statements are the same as attacks on the people making
the statements. Japanese and Chinese and other Asians need to remember that
businesspeople in Western cultures prefer directness and the airing of different
opinions, and to a large degree consider words apart from the people who produce
them. When words are attacked, persons are not necessarily attacked also.

Honor
Group membership, when it is highly valued, can affect negotiations in a number
of ways. Negotiators whose allegiance is to a family group, such as the ruling
household of some Arab countries, or to a nation, such as Korea, may be motivated
to gain the best advantage for the honor of their group. The fact that something
bigger than the individual seems to be at stake can make a negotiating team less
flexible.
On the other hand, negotiators who are motivated by a desire to uphold their in-
dividual reputations and records can also be inflexible about backing down. The
key is to understand what motivates your counterparts. Then you can accommo-
date the needs of the other side. If your counterparts are motivated to succeed for
the honor of the group, then you need to send messages that show you understand.
Your own group membership will be important to emphasize. In either case, words
that provoke a defense of honor can be the wrong words to use.
354 Chapter 9

Not backing down is related to a team’s decision-making process. If it is a

consensus-based process, then the team’s position will have been determined by
lengthy discussions in the group before the negotiations take place. This makes the
team less able to change its position spontaneously. The team members have to go
back and consult the others in the group before they can agree to changes in their
initial position. If individuals have authority to make decisions, the team’s position
may be flexible and open to change.

Verbal Communication Style

Verbal (worded) communication styles vary across cultures, as discussed in
Chapters 5 and 8. Some negotiating teams prefer directness and use explicit words,
while other teams prefer indirectness and use circumlocutions. For example, one
side may say, “Our objective in this investment phase of our agreement is to
achieve cost neutrality.” The other side may word the same idea this way: “Our
consulting services to help you set up the new operation will be free of charge, but
you will pay our expenses.” The terms “investment phase” and “cost neutrality”
may not have meaning for the team that is listening for explicit wording, and an
agreement may not be reached because the team didn’t hear those explicit words.
Misunderstandings can result from different preferences for wording, compound-
ing difficulties already present when one side or both are speaking a language in
which they are not fluent.

Form
Form is very important in high-context cultures, as we have seen in Chapter 4, and
nowhere more so than in negotiation sessions. In Arab cultures, for example, ses-
sions begin with small talk, and communication is indirect. In some situations, ne-
gotiators may sit on cushions on carpets, not on furniture. In other situations, the
negotiations may take place in a restaurant or club owned by someone other than
the negotiators. Visitors will be offered hospitality, such as a small cup of strong
coffee, and the offer should not be refused. Proper respect is due older members
of the Arab team, and that means not using too much familiarity. Visitors should
use titles to address people and should not ask about female family members. (If
you ask how many children a businessman has, he may give you the number of his
male children.)
In Russia, negotiators must follow the protocol of correctly using Russians’
names. This means using the full name: the given name, the patronymic or father’s
name, and the family name. Proper respect is shown when all three names are used
to refer to someone. This may require a bit of effort on the part of a foreigner who
is unfamiliar with the name system. The names change, depending upon whether
the person is male or female: Alexei Fyodorovitch Melnikov is the son of Fyodor;
his married sister is Irina Fyodorovna Dunayeva. A naming system that incorpo-
rates one’s mother’s family name is used by Mexicans and other Latin Americans
to varying degrees (see Chapter 4).
Danes, by comparison, use informal address, speaking to each other with the fa-
miliar pronoun du. They follow the Jantelov, the “Law of Jante,” in social
 Intercultural Negotiation Teams 355

interactions. This egalitarian principle says one shouldn’t try to be “above” some-
one else. Modest about putting themselves forward, Danes are not hierarchical, and
they observe little protocol in negotiation situations. However, they are mono-
chronic and expect punctuality. Negotiations with Danes proceed without interrup-
tion.20 Denmark provides a contrast with Arab, Asian, and Latin cultures, and points
out how important it is to know the culture on the other side of the negotiating table.
New Zealanders of British descent are keen to avoid being “tall poppies.” They
learn from an early age that someone who stands above the others because of self-
promotion will be ostracized. The “tall poppy syndrome” comes from the saying
that in the field, the tall poppies are mowed down by the farmer’s equipment; their
bright heads are cut off if they have grown too high. Lower-growing poppies re-
tain their blooms.

Emotion
In some high-context cultures, public display of emotion is a sign of immaturity
and a potential cause of shame to the group. Japanese negotiators will close their
eyes, or look down, or rest their heads against their hands and shade their eyes in
order to conceal an emotion such as anger. Similarly, Thais have learned to keep
potentially disruptive emotions from showing on their faces. Koreans, Taiwanese,
and other Asians along with Japanese and Thais have earned the descriptor in-
scrutable from Westerners because of their learned cultural practice of avoiding a
facial display of strong and disruptive emotion. High-context cultures value har-
mony in human encounters, and their members avoid sending any nonverbal mes-
sages that could destroy harmony. Other high-context cultures, for example in the
Middle East, put a high priority on displays of emotion (although not anger) to em-
phasize the sincerity of the position being put forward.
In low-context cultures, the deliberate concealment of emotion is considered to
be insincere. Members of low-context cultures have learned a large vocabulary of
facial expressions that signal the emotions a speaker feels. When they see none of
the expected indicators of emotion on the faces of negotiators on the opposite side
of the table, they assume that an emotion is not present. If this assumption is dis-
covered to be wrong and the speaker is indeed feeling an emotion such as anger,
the members of the low-context culture feel deceived.

Silence
Similarly, silence as a nonverbal communication tool can be very effective in negoti-
ations. As was discussed in Chapter 6, in low-context cultures where ideas are explic-
itly encoded into words and unspoken ideas are more difficult to respond to, silence
makes negotiators uneasy. Silence often means unhappiness in low-context cultures.
Even when no message about unhappiness is intended, silence in low-context cultures
indicates a rupture has occurred, a break in the process of communicating. For these
reasons, negotiators from low-context cultures generally are uncomfortable with si-
lence. They often feel responsible for starting a conversation or keeping it going.
Japanese speakers are comfortable with silence in negotiations and do not hurry
to fill it up with speech. After a speaker from one side speaks, Japanese listeners
356 Chapter 9

pause in silence to reflect on what has been said and consider the speaker’s feel-
ings and point of view. This is how Japanese show consideration for others in oral
interpersonal communication, as we have seen in Chapter 6. Similarly, to interrupt
a negotiator who is speaking is to show disrespect. Because of this protocol—and
the Japanese value of silence—negotiators with Japanese counterparts must be
careful not to speak too hastily or too much.

The Phases of Negotiation

The foregoing aspects of communication style are employed in specific phases of
negotiation. Exchanges proceed according to four phases of negotiation in all cul-
tures;21 the emphasis and the time spent on any one phase are what differ:
1. Development of a relationship with the other side
2. Information exchange about the topic under negotiation
3. Persuasion
4. Concessions and agreement
Some see the process as involving as many as seven steps.
1. Preparation. This precedes the first step just listed. As we will see, preparation
is an important key for successful negotiation.
2. Building the relationship. This corresponds to the first step.
3. Exchanging information/first offer. This corresponds to the second step.
4. Persuasion. This corresponds to Step 3.
5. Concessions. Step 4.
6. Agreement. Step 4.
7. Implementation. This follows the agreement, and points to the fact that many
cultures, such as Japanese and Chinese, use a holistic approach to negotiation.
Nothing is ever closed until the agreement is signed, and even then some issues
may be reopened.
In a holistic negotiation, managers from the United States negotiating with the
Japanese, for instance, may think they have decided a key point, only to find
the Japanese bring that point up again when they are addressing something else in
the negotiations. Westerners approach matters to be negotiated in a more linear way,
going through the points sequentially and checking them off as they are settled.
Easterners approach the items as discussion points within the context of the rela-
tionship they have formed with the other side. The relationship is what makes
agreement possible. If a better solution arises for both sides following the negotia-
tion of a point, they do not hesitate to revisit the item and offer a different solution.

The Development of a Relationship

Cultural priorities differ about how much time is spent on each phase; for exam-
ple, Chinese spend much longer on phases 1 and 2, while Canadians want to get
to phase 3 more quickly.
 Intercultural Negotiation Teams 357

In the first phase, where the relationship between negotiating teams is being es-
tablished, trust is the critical factor. In cultures where relationships have high pri-
ority, time may be spent in nonbusiness activities so the negotiators can get to
know each other. Sight-seeing and a welcome banquet are two typical activities in
Chinese business interactions with foreigners. In Argentina, the visiting team may
be treated to an elaborate cocktail party in someone’s home or to a barbecue, called
a parrilla, in a home or restaurant; at the successful conclusion of negotiations, the
teams may enjoy a celebratory meal, usually less formal in dress.
One way to establish a relationship is to identify the common goal both sides
have in reaching an agreement. Once the desire or need for the other side to come
to an agreement is on the table—in words—along with your desire, you can both
refer openly to the common goal.
In order to develop trust, you need to have openness in your communication and
to experience openness from the other side. This usually involves some gentle
questioning by each side to see how willing the others are to reveal themselves.
Often, the answers are already known to the questioners, and the probes are not so
much for gathering information as for testing the openness of the other side. Usu-
ally each side displays apparent candor in these exchanges; whether it can be
trusted or not is what each side has to determine.
Face is an important consideration in developing a relationship with someone
from a high-context culture, especially someone from Asia.
Face may be lost as a result of many developments: a premature or overeager
overture that is rebuffed by one’s opponent; exposure to personal insult, in the form
of either a hurtful remark or disregard for one’s status; being forced to give up a cher-
ished value or to make a concession that will be viewed by the domestic audience as
unnecessary; a snub; failure to achieve predetermined goals; the revelation of per-
sonal inadequacy; damage to a valued relationship. The list is endless, for in the give-
and-take of a complicated negotiation on a loaded subject, anything can happen.
Since face can be lost even without the awareness of the other party, negotia-
tors need to take care. Asking questions that seem designed to expose weakness,
or making comments that assume familiarity, or giving responses with the wrong
degree of coolness can all lead to loss of face for the other party and, with it, loss
of trust.

Information Exchange about the Topic under Negotiation

Frank disclosure often can work in your favor and generate trust. For example, if
the negotiators from the Canwall company had said, “We’re very glad to be talk-
ing with you about a sale of our product because we have a long-term interest in
business with China,” their Chinese counterparts would likely have considered this
a frank admission of Canwall’s aims. You need to disclose at least some of your
positions. You also need to be able to believe what the other side is telling you.
One way to obtain information is to ask questions rather than wait for disclo-
sure. According to Richard Mead,22 you can ask questions:
1. To determine common ground
2. To clarify information
358 Chapter 9

3. To call bluffs
4. To show you are listening
5. To show your interest
6. To control the direction of the discussion
7. To broach potentially controversial issues (rather than by statement)
Items 1, 4, and 5 particularly have to do with developing relationships; item 2 has
to do with understanding facts; items 3, 6, and 7 have to do with managing the
negotiation process.
Asking questions can be problematic, however. In order not to seem overly ag-
gressive, you may need to “frame” your questions. Framing is discussed in Chap-
ter 5. It means putting a frame of explanatory language around a request that does
not change the meaning but makes it less aggressive: “I hope you don’t mind my
asking for your unit price, but our estimates were much higher and our head office
will ask why we were so far off.” The frame softens what could be a very hard-
nosed question: “Where did you get that unit price?”
Another problem with asking why questions if you expect a cause answer is that
in some cultures the typical response is not a cause but an explanation of a
pattern—an organizational structure, or market consumption, or an economic
policy, for instance (see also Chapter 1).
Let’s assume you want to negotiate a purchase from a supplier from another cul-
ture. You’ll need to ask about technical information, price, discounts, quantity, ship-
ping dates, insurance, payment method, shipping method, repeat orders, and quality
control. You’ll ask questions about all those items, and each is potentially an issue to
be negotiated. As you ask questions, you are refining your idea about the importance
to the other side of reaching an agreement and what the other side’s best alternative
to a negotiated agreement (BATNA) is. You are discovering what items the other
team is willing to yield on and what items the other team is inflexible about.

Persuasion
This brings us to the third communication phase: persuasion. By this point, you
have established what you need to focus on in order to reach an agreement. In other
words, you have a clear idea where the conflicts lie, as well as the concord. Now
you will attempt to persuade your counterparts to accept a settlement that ensures
you what you need and perhaps more. They will do the same.
The language of persuasion varies among cultures, as was discussed in
Chapter 5. You can employ the language strategy of inclusiveness for persuasion. For
example, if the individual needs of your counterparts are to appear tough and per-
sistent because those are cultural values that drive individual behavior, you can avoid
using language that forces them to back down. Use inclusive language such as to-
gether we can . . . rather than exclusive language such as you’ll have to accept . . .
and we absolutely require . . . Avoid I-centered messages and must, should, and
ought messages. In other words, use you-viewpoint messages and indicate you un-
derstand the others’ point of view. Encourage your counterparts to focus on what
they can gain, not what they may have to give up.
 Intercultural Negotiation Teams 359

EXHIBIT 9.1 Low-Context and High-Context Negotiation Tactics

Low-Context Negotiation Tactics High-Context Negotiation Tactics

• Supporting argument with factual data • Supporting argument with personal connections
• Offering counterproposals • Offering counterproposals
• Silence • Silence
• Disagreeing • Suggesting additional items
• Threatening the opposing side • Referring to precedent
• Attacking opponents’ characters • Deferring to superiors
• Avoiding certain issues • Avoiding certain issues
• Expressing emotion • Avoiding conflict
• Insisting on a final position • Remaining open and flexible
• Making a final offer • Revisiting and reopening items previously negotiated

Differences in negotiation tactics between low-context cultures and high-

context cultures are shown in Exhibit 9.1.
Obviously, the tactics used by low-context cultures will not work in high-
context cultures. For example, as Chapter 5 discusses, many cultures are not per-
suaded by objective facts. Silence may signal unhappiness to the other side or may
be understood as a comfortable pause during which you ponder and meditate.
Some disagreement is inevitable, since that is why you are at a negotiating table,
but how it is communicated varies culturally. Threats, personal attacks, insistence,
and being emotional are all subject to cultural priorities.
When members of low-context cultures communicate with members of high-
context cultures, they need to be especially aware of the cultural context of com-
munication: concerns for harmony, for status, and for showing respect. When
members of high-context cultures communicate with members of low-context cul-
tures, they need to pay special attention to the words and what the words actually
say, not to what can be implied or inferred in the words.
Arab businesspeople need to remember that low-context cultures attach face-
value meanings to words, analyze the meanings, and don’t usually discount any
words as mere rhetoric. Businesspeople from low-context cultures need to re-
member that members of Arab cultures enjoy the way words can affect people and
that literal, face-value meanings may not be intended.
People from cultures that prefer explicit communication that is direct and to the
point tend to persuade with facts (see Chapter 5). This is true of businesses in the
United States, for example, where arguments that are based on fact have greater
credibility than arguments that are based on opinion or inference. Facts just are;
they do not need to be proven.
Some prefer arguments based on inference, which is a conclusion based on fact
but not proven. Inferences are assumptions. Some believe inferences generated
from facts are more powerful than the facts themselves. When a negotiator sug-
gests that the plan her opposite party has to create new jobs will actually threaten
the environment, the negotiator is inferring consequences.
360 Chapter 9

Asian negotiators often use inference when they refer to history. Asians along
with Europeans, Latin Americans, Middle Easterners, and Africans tend to take a
long view, placing the negotiation in the context of a history reaching back far, but
still having a very real meaning for the present. This enables them to take a long
view of the future as well. Americans, Canadians, New Zealanders, Australians,
most Argentines, and others have a short history, and even that seems remote and
unconnected to the present. They often could use their historical contacts as a per-
suasive tool, but instead overlook them.
Others prefer arguments based on opinion. Opinions cannot be proven to be
true or false. They are usually also emotional. For some, emotion means genuine
involvement on the part of the persuader. Without emotion, an argument lacks
heart and conviction and is simply cold and impersonal. Obviously, when some-
one who shuns emotion in favor of facts encounters another person who prefers
emotion and finds facts alone unconvincing, the result can be miscommunication
that results in a failure to reach an agreement.
The sequence in which items are discussed is often a critical communication
factor in negotiations. Research has shown that skilled Western negotiators are
more flexible in the sequence in which they communicate about factors than aver-
age Western negotiators who stick to a planned sequence.23 The average negotiator
treats items independently, while the skilled negotiator is able to link items. This
is called “enlarging the pie”; the negotiator adds issues so the pie is larger, allow-
ing everyone to have a larger piece.
Also, skilled negotiators make more frequent reference to long-term concerns
than average negotiators. The negotiator who appears to be after a short-term, in-
and-out business deal is less likely to succeed than the negotiator who makes ref-
erence to long-term goals.

In Focus

Even with the best motives and the most careful preparation, negotiators who ignore the other culture’s priorities can
put a foot wrong. In 1983, an article in the Harvard Business Review outlined what the authors called the “American
John Wayne” style of negotiating, which still has relevance today.24 Here is a summary.

1. I Can Go It Alone. Many U.S. executives seem to believe they can handle any negotiation situation by them-
selves, even when they are outnumbered in negotiation situations.
2. Just call me John. Americans value informality and equality in human relationships. They try to make people feel
comfortable by playing down class distinctions.
3. Pardon my French. Americans aren’t very talented at speaking foreign languages.
4. Check with the Home Office? American negotiators get upset when halfway through a negotiation the other
side says, “I’ll have to check with the home office.” The implication is that the decision-makers are not present.
5. Get to the Point. Americans don’t like to beat around the bush and want to get to the heart of the matter quickly.
 Intercultural Negotiation Teams 361

6. Lay Your Cards on the Table. Americans expect honest information at the bargaining table.
7. Don’t Just Sit There; Speak Up. Americans don’t deal well with silence during negotiations.
8. Don’t Take No for an Answer. Persistence is highly valued by Americans and is part of the deeply ingrained
competitive spirit that manifests itself in every aspect of American life.
9. One Thing at a Time. Americans usually attack a complex negotiation task sequentially—that is, they separate
the issues and settle them one at a time.
10. A Deal Is a Deal. When Americans make an agreement and give their word, they expect to honor the agreement
no matter what the circumstances.
11. I Am What I Am. Few Americans take pride in changing their minds, even in difficult circumstances. Americans
also think it is “phony” to act differently in a negotiation with foreigners than they would act at home.
You can venture a guess about how successful these strategies would be in a high-context culture—or in a low-
context culture. Cultural values of the United States that are evident are individual performance, desire to achieve an
agreement, preference for informality and for communication in English, emphasis on direct and explicit communica-
tion, and unease with silence.

Concession and Agreement

Finally, the negotiators’ communication task turns to concession and agreement.
When making a concession, skilled negotiators link that to a counter-concession,
using “if ” language: “We’ll accept your shipment dates if you’ll agree to a dis-
count on future orders.” Many experienced negotiators warn that you can’t come
back and ask for a counter-concession after a concession has been granted to the
other side and the discussion has moved on to another issue. Once you agree with-
out conditions or “ifs,” the issue is settled. You attempt to reopen it at the risk of
losing what agreements—and trust—you have already gained.
Sometimes the final agreement arrives more quickly than you expect. Many
Chinese negotiations, for example, consist of probing the other side’s position,
testing for firmness and the other side’s final position. Then, suddenly, you may
find the Chinese side offers a final agreement that solves many of the issues raised
without the need to haggle and bargain or persuade. When this is the case, it prob-
ably isn’t a good idea to offer too many counterproposals or alternatives, because
that weakens your position. However, advice to Chinese negotiators is to hold back
from commitment to unattractive points to see if the other side will offer counter-
proposals or if it is really firm. Western negotiators are known to be under pres-
sure from their own cultural priorities. They want to achieve an agreement; in
some cases, they seem to feel any agreement is better than no agreement. They can
be impatient, but they also can be imaginative about solutions.
Some negotiating teams can live with an agreement that at least gives them the
appearance of having done well. Cohen quotes an Egyptian proverb:
Make your harvest look big lest your enemies rejoice.25
The agreement has to look good as well as be good.
Some cultures are not interested in settling the negotiations in a way that
terminates them. To these context-oriented cultures, the relationship between
362 Chapter 9

organizations is what makes negotiations and agreements possible. Each side has
an obligation to nurture the relationship and keep it going. Signed agreements don’t
do that. Japanese negotiators, for example, prefer escape clauses in contracts—
when contracts are necessary at all. Western negotiators are dismayed when their
Japanese or Chinese counterparts begin making changes immediately after con-
tracts are signed. But in Asian cultures the documents are far less important than is
keeping the interdependent, interwoven organizations in a good relationship.
Negotiators from the United States are keen to sign agreements. Contracts are
firm and go a long way toward eliminating ambiguities and misunderstandings.
They and other low-context negotiators see unwritten and informal agreements as
unenforceable. They may allow the other side to conceal something; low-context
cultures give openness high priority.
It is important for negotiators to understand their counterparts and balance the
need for enforceable agreements on the one hand with the need for nurturing trust-
ing relationships on the other. Agreements do not all look alike. Time magazine,
over two decades ago, ran this statement:
The successful negotiation between Japanese and Western businessmen usually
ends up looking very much like one between two Japanese.26

That is still true today. Sensitivity to the other culture, and satisfying the needs
of your own are both needed in the 21st century.

Summary This chapter has shown how cultural priorities affect specific communication
tasks, in this case the task of business negotiations.
• The experience of Canwall in China illustrates cultural priorities and shows an
outcome that was not what the Canadians had expected.
• What really happened involved the way culture affects communication. Chinese
cultural dimensions (see Chapters 3 and 4) include the following: relationships;
expectations about time and efficiency; the way obligation is perceived; the
value of harmony; the method of learning; the performance of tasks simultane-
ously; a preference for protocol and form, seniority, and hierarchy; mediated ac-
cess to authority; interdependence; and tolerance of uncertainty.
• Negotiation teams are one kind of team in the workplace; team members have
roles that are the result of culture, and teams communicate according to cultural
values.
• Factors in intercultural negotiation include different expectations for outcomes
and a preference for one of the outcomes of negotiation: win–lose, win–win, or
stalemate.
• The orientation of the negotiating teams is strategic or synergistic, and they
might include:
• Members with high status
• Members with special expertise
• A translator
 Intercultural Negotiation Teams 363

• Physical aspects of the negotiations also can affect the outcomes. Such aspects
include:
• Site and space
• Schedule and agenda
• Use of time
• Host hospitality
• By far the most important differences are in communication styles:
• Verbal communication style may be more explicit and direct or more round-
about and indirect. Some circumlocutions (such as “cost-neutral” in English)
may not be understood by a team with limited English language.
• The focus may be on what has already been agreed or on what remains in
dispute. Some teams negotiate for the honor of their country or firm.
• Some teams prefer the observance of more form and specific protocol than
others. Some show emotion and even make a deliberate display of emotion,
while others show little.
• Some teams use silence, while others are uncomfortable with silence.
• Negotiation has four phases:
• Development of a relationship with the other side
• Exchange of information and positions
• Persuasion and argumentation
• Concessions and agreement

Notes 1. William Zartman and Maureen Berman, quoted in Raymond Cohen, Negoti-
ating Across Cultures (Washington, DC: United States Institute of Peace,
1991), pp. 16–17.
2. Geert Hofstede, Cultures and Organizations (New York: McGraw-Hill,
1991), p. 225.
3. Cohen, pp. 31–32.
4. Richard L. Daft and Patricia Lane, The Leadership Experience, 3rd ed. (Ma-
son, Ohio: Thomson/South-Western, 2005).
5. John G. Oetzel, “Effective Intercultural Workgroup Communication Theory,”
in William B. Gudykunst, ed., Theorizing about Intercultural Communication
(Thousand Oaks, CA: Sage, 2005), pp. 351–371.
6. Robert T. Moran and William G. Stripp, Dynamics of Successful International
Business Negotiations (Houston: Gulf, 1991), p. 84.
7. Richard Mead, Cross-Cultural Management Communication (New York:
John Wiley and Sons, 1990), p. 203.
8. Yale Richmond, From Nyet to Da: Understanding the Russians (Yarmouth,
ME: Intercultural Press, 1992), p. 141.
364 Chapter 9

9. Moran and Stripp, p. 77.

10. Ibid.
11. Tom Getman, “World Vision,” The MacNeil/Lehrer NewsHour, broadcast
June 7, 1993, about Somalia.
12. John Mattock, ed., Cross-Cultural Communication (London: Kogan Page,
2003), p. 120.
13. Moran and Stripp, p. 168.
14. Cohen, p. 89.
15. Diane Zior Wilhelm, “A Cross-Cultural Analysis of Drinking Behavior
Within the Context of International Business.” In Anthropology in Interna-
tional Business, Studies in Third World Societies, no. 28, Hendrick Serrie,
guest ed. (Williamsburg, VA: Department of Anthropology, College of
William and Mary, 1986), pp. 73–88.
16. Linda Beamer, “Toasts: Rhetoric and Ritual in Business Negotiation in Con-
fucian Cultures,” Business Forum (1994), pp. 22–25.
17. Richard Buchanan, Ron Garland, and Mark Armstrong, “Mañana and
Manners May Not Be Enough! The Cultural Interface of New Zealand and
Argentinean Negotiating Preferences,” Marketing bulletin 13, no. 1, http://
marketing-bulletin.massey.ac.nz/article13/Manana.asp (retrieved March 17,
2003).
18. Sun Tzu, Art of War (S. B. Griffith, Trans.) (New York: Oxford University
Press, 1984), (original work published 256 B.C.E.).
19. February 21, 1972, The White House Years, pp. 1061–1062; quoted in Cohen,
p. 123.
20. Richard R. Gesteland, Cross-Cultural Business Behavior (Copenhagen:
Copenhagen School of Business Press, 2002), pp. 289–290.
21. Graham and Herberger, quoted by Mead, p. 189.
22. Mead, pp. 196–197.
23. N. Rackham, “The Behavior of Successful Negotiators (Huthwaite Research
Group Reports).” In International Negotiations: A Training Program for Cor-
porate Executives and Diplomats, E. Raider, ed. (Brooklyn, NY: Ellen Raider
International, 1976), pp. 196–197.
24. Philip R. Harris and Robert T. Moran, Managing Cultural Differences, 2nd ed.
(Houston: Gulf, 1987), p. 59, boldface added.
25. Cohen, p. 131.
26. Robert T. Moran, Getting Your Yen’s Worth: Negotiating with the Japanese
(Houston: Gulf, 1985), p. 67.
C H A P T E R T E N

Legal and
Governmental
Considerations in
Intercultural Business
Communication
Joe Van West, the president of Appliances Unlimited in Mexico, was sitting in his office
in Mexico City, thinking about what he should do. The plant in Mexico manufactured small
household appliances such as toasters, electric irons, and coffee machines. In addition,
the factory produced parts for washing machines to be assembled by the subsidiary of an-
other American multinational company. The small appliances were mostly for the domes-
tic market; the washing machines were both for the domestic market and for export,
mainly to the other North American Free Trade Agreement (NAFTA) countries. Over the last
two years, the production lines had been upgraded to make use of the latest manufactur-
ing technology.
For several years, Appliances Unlimited, a company headquartered in Chicago, had had
plans to expand the Mexican factory to increase production. This became more urgent af-
ter exports to Canada, the United States, and Europe picked up during the two years be-
fore. The previous managers had looked for a site for expansion, but nothing had been
available. A building site was located next to the factory, but a Japanese firm was going to
build there. Recently, however, the Japanese had run into financial problems and were
pulling out. The inspector in charge of building permits knew that Appliances Unlimited
was looking for a site, but when Van West approached the office, the assistant told him
that the site did not meet the new regulations for industrial buildings. Thus, the site would
not be available. Van West made some additional inquiries but did not get anywhere.

365
366 Chapter 10

The site was perfect for the expansion. It would be easy to tie the new building into the
existing facility. All other possible locations were several miles away from the existing
plant; transportation between the sites would be a problem.
Van West decided to meet with the inspector personally. He tried to set up a meeting in
his office, but the inspector was always busy. Finally, he agreed to meet for lunch. The in-
spector was very pleasant and apologetic that the regulations had changed, but unfortu-
nately there was nothing he could do. He indicated that he also had been approached by a
Swiss firm and a Canadian firm about the site. They were very interested and willing to pay
top dollar. He would have to tell them no, too.
They talked about life in Mexico and the United States. The inspector had traveled to
New York and Los Angeles several times. He told Van West that his oldest son was set on
studying for an MBA in the United States, but the tuition was very high. He just did not see
how he could possibly afford $30,000 for each of the two years plus all the additional ex-
penses. As the lunch went on, Van West got the distinct feeling that the building site would
be available “at a price.” The inspector made it quite clear that in return for a favor he
would see to it that the classification of the site would be altered.
After the lunch, Van West was replaying the conversation. Paying money in return for
the site went against everything he believed in. He had always tried to be up front and
ethical. How could he justify paying a bribe now? And then there were the legal issues;
paying bribes was not an option under the Foreign Corrupt Practices Act of the United
States. Yet the site was very important, and a decision had to be made fast. He knew that
headquarters was pushing hard for the expansion. If he could get the site, the profits from
the Mexican operations could go up considerably. His star at headquarters certainly would
go up as well. Considering everything, an additional $60,000 for the site did not seem to be
such a big sum.
The next day, the inspector called again and inquired whether Van West was still inter-
ested. He needed an answer by the beginning of next week since the other companies were
willing to pay the top price. Van West contacted Sr. Sanchez, the Mexican lawyer who rep-
resented the firm in Mexico, for advice. However, Sanchez was not very helpful. He con-
ceded that such payments were common practices but made it clear that he preferred not
to be involved in this matter.

In this case, Mr. Van West faces both a legal and an ethical dilemma (also see
Chapter 8). The Foreign Corrupt Practices Act in the United States was passed in
an attempt to stop bribery and make the cost of doing business abroad more trans-
parent.1 The act is an example of how a low-context culture tries to legislate be-
havior. The Europeans scoffed at the Foreign Corrupt Practices Act. In most
European countries, not only was it legal to bribe foreign officials, the bribes could
be deducted as a legitimate expense of doing business. During the last few years,
however, the European Union has decided that bribes have been getting out of
hand and that in the long run it would be cheaper to do international business if
European companies also had to follow a similar law. Therefore, the EU has passed
antibribery legislation.
In this chapter, we will examine the legal implications of intercultural business
communication. In the course of doing business, managers must communicate
 Legal and Governmental Considerations in Intercultural Business Communication 367

with governmental offices, other businesses, employees, and the public. In an

international environment, those managers must understand not only the culture
of the people they are doing business with, but also the laws that regulate business
in a culture. Laws are based on cultural priorities, and cultural priorities influence
which laws are developed. It is tempting to argue that lawyers can take care of legal
issues, and that managers do not need to know much about the legal situation.
However, as we will see in this chapter, the legal framework directly affects inter-
cultural business communication practices. Managers need to understand the legal
context of intercultural business communication.

Communication and Legal Messages

What makes sense and is legal in one country may be illegal in another. In the
United States, it is illegal to discriminate on the basis of race, sex, national
origin, and age. East Asian, Latin American, and many European job advertise-
ments, in contrast, may specify the preferred age and sex of a potential em-
ployee. For example, job ads for office staff in Mexico frequently mention that
the applicants must be attractive young females. Japanese companies may say
they are looking for a female employee between the ages of 20 and 24. When
establishing corporate policies relating to employment, managers must have an
understanding of how the laws of the countries they are working in will influ-
ence those policies.
Legal systems come out of cultural values. Laws do not develop in isolation;
they are culture-bound. As a result, laws relating to the hiring and firing of em-
ployees, property, contracts, dispute settlement, and ownership have cultural
roots. The way these laws are formulated, communicated, and enforced is influ-
enced by the communication patterns and priorities of a culture. At the same time,
the legal system also acts as a stimulus for gradually changing cultural priorities.
The point is that managers working and communicating with employees from
different cultures and engaging in international business should have at least
some understanding of the legal systems of the countries they are dealing with.
That does not mean managers must be international lawyers, but it does mean they
need to be familiar with basic legal concepts and must know when to call in the
legal experts.
Legal systems are territorial. Laws apply to a particular jurisdiction, and typ-
ically lawyers are educated in a particular kind of law. Australian lawyers are ed-
ucated in Australian law. If they work for an international firm, they bring their
background in Australian law. When a dispute with a French firm comes up, they
do not automatically know what the French legal situation is. In that case, the
Australian firm may hire a French law firm to interpret French law. The problem
is that the French lawyers know French law but not Australian law. Thus, to the
challenges of intercultural communication are added the challenges of different
legal systems.
A French lawyer has no problems discussing aspects of French law with
another French lawyer. They speak the same language, have the same cultural
368 Chapter 10

background, and have had similar legal training. This scenario changes dramat-
ically if the French lawyer must explain a French legal concept to a business
lawyer from Sydney, Australia. The two lawyers speak different languages, have
different cultural backgrounds, and have been educated in two very different le-
gal systems.
To avoid serious misinterpretation and miscommunication, the lawyers may use
a type of back translation. Back translation, as was discussed in Chapter 2,
frequently is used when questionnaires are translated from one language into an-
other to ensure accuracy. Lawyers can use the same techniques. After the French
lawyer has explained the French legal situation, the Australian can back translate
the explanation to the French to ensure understanding. Rephrasing the same ques-
tion using different formulations and seeing whether the answers are essentially
the same can bring out possible difficulties and misunderstandings.
However, back translation does not guarantee effective communication. For
example, the term force majeure is part of the legal language in both France
and Australia. Both sides may use it assuming that the other side understands
the phrase as intended. To minimize misunderstandings in the communica-
tion process, both sides must ask questions and probe for hidden or different
meanings.
When René Chrétien from Lyon and William Brandon from Sydney discuss a
business contract, they cannot just look at the literal meaning of force majeure,
which is “superior or irresistible force.” In the Anglo legal system, the term refers
to forces of nature or possibly war. The implications are that the terms of a
contract may be changed because risk was not allocated in either the expressed or
the implied terms of the contract. In France, the term has a broader meaning.
Force majeure does not just refer to forces of nature and war but also includes
changes in economic conditions and other circumstances that could not have been
anticipated reasonably when the contract was made. Therefore, when René
Chrétien and William Brandon discuss their contract, they must take into consid-
eration the:
• Literal meaning
• Legal meaning
• Implications of the legal meaning for fulfilling a contract
• Implications of the legal meaning for settling contract disputes
Probing for intended meaning and verification for clarity and accuracy are typ-
ical of low-context cultures. Greg Turner from Switzerland has no difficulty in-
sisting on clarity; that’s part of his job. His success will be measured in part by how
clear the terms of a contract are. Akihito Hosokawa from Japan, in contrast, comes
from a high-context culture in which an insistence on clarity and precision can be
interpreted as a sign of mistrust. Traditionally, a Japanese person is not so much
after precise legal meaning as he is after building trust and a long-term relation-
ship. However, in international business dealings, Mr. Hosokawa may get used to
greater precision and clarity.
 Legal and Governmental Considerations in Intercultural Business Communication 369

In Focus

Natalie Prior, a professor at a university in the United States, had been invited to teach a course on intercultural com-
munication in an executive MBA program at the University of Lugano, Switzerland. After her engagement there, she
was to go on to a university in Tokyo, Japan, to give several seminars to faculty and graduate students. The Swiss uni-
versity sent a contract for her teaching engagement. In part, the contract read as follows:
1. Responsibilities
1.1 Teach a course on Intercultural Business Communication. Main breaks are scheduled in the morning
from 9:45 to 10:15 a.m. and in the afternoon from 4:15 to 4:45 p.m.
1.2 Prepare syllabus, course materials, and handouts.
1.3 Prepare and grade written exams.
1.4 Be available to students.
2. Compensation
2.1 The faculty member will be paid $XXX.
2.2 Money will be paid upon completion of activities.
2.3 The following expenses will be covered . . .
3. Other
3.1 The present contract is effective as of date of signature.
3.2 University regulation and the provisions of Swiss contract law shall govern all aspects not herein specified.
3.3 The administration reserves the right to communicate any possible changes in seminar dates or to cancel
the program by (specified date). If the program is voided by (specified date), this contract is voided.
3.4 In the event of controversy relating to this contract, the parties shall seek settlement by means of the
Independent Appeal Commission established by Swiss Law. In the event that settlement is not reached in the
preceding manner, the parties recognize the exclusive jurisdiction of the Court of the City of Lugano.

The arrangement with the Japanese university was quite different. Natalie had exchanged several e-mails with the
Japanese professor who had invited her. They discussed the topic of the seminars, housing arrangements, and the
amount of the stipend. To most of Natalie’s questions the Japanese professor replied: “We can talk about this once you
are here.” Shortly before Natalie left the United States, the Japanese professor sent an e-mail in which he almost
apologetically asked for some administrative details, such as date of birth and citizenship. That was the extent of the
contract.
Natalie had very good experiences both in Switzerland and in Japan, but she found the different approaches to the
arrangements fascinating.

International business is concerned with both international law and compara-

tive law. There are two kinds of international law: public international law and pri-
vate international law. Public international law, sometimes called the law of
nations, deals with the relationships between countries. It involves treaties, wars,
the sea, diplomats, and expropriations, the taking by government of land and other
private assets. Since those aspects can affect businesses, public international law
370 Chapter 10

and the way it is communicated and interpreted are important to businesses. Cases
in public international law may be taken by a country, not an individual, to the
International Court of Justice in Den Haag, Holland.
A major issue in public international law is the question of enforcing judgments.
The International Court of Justice can render a verdict but has no real power to
enforce the verdict. The majority of the decisions rendered by the International
Court of Justice are followed; however, since there is no international sheriff, the
enforcement of decisions is always a question. For example, expropriation of assets
by national governments was a big issue in the 1960s and 1970s, when, for exam-
ple, Chile nationalized its copper mines. In the 1980s and 1990s, expropriations
rarely happened. That changed when Hugo Chavez from Venezuela nationalized
big parts of the oil industry in his country. Even if the International Court of Jus-
tice were willing to hear the case and render a verdict, such a decision would be
almost impossible to enforce. The only recourse would be to freeze Venezuelan as-
sets abroad. War criminals in the Balkans, like Milošević, who was accused of
genocide, are tried under public international law. They are charged with crimes
against humanity and war crimes. This case was particularly interesting since a
number of nations agreed to the trial. That is not always the case, because a person
may be considered a terrorist or criminal by one country but a freedom fighter by
another. For example, the case against Osama bin Laden, accused of mastermind-
ing the bombing of two U.S. embassies in Africa and the World Trade Center in New
York and the attempt to bomb the Pentagon or some other building in Washington,
DC, has been brought by the United States. If he were to be captured, he most likely
would be tried by the United States under United States law. Saddam Hussein’s case
was tried before a court in Iraq to emphasize Iraqi sovereignty. Theoretically, he
could have been tried under international law, but that would have been more diffi-
cult if several countries opposed such a trial. Some countries, including the United
States, are reluctant to submit to an international court, arguing that such a move
would violate their national sovereignty.
Private international law deals with issues between persons and businesses. It
involves the settlement of conflicts and the enforcement of contracts. One of the
most important questions in private international law is which court has jurisdic-
tion. For example, in a contract dispute between a Venezuelan firm and a Nigerian
firm, the partners have to decide which court will settle the dispute and which law
will apply (see the “Dispute Settlement” section later in this chapter).
Most international business is concerned more with comparative and private in-
ternational law than with public international law. How are contracts handled in
various jurisdictions? What are employment laws? What are import–export regu-
lations? An international businessperson will be involved regularly in interpreting
the laws and regulations of other countries in the context of doing business. Laws
and regulations are specific forms of communication, and international business-
people are interpreters. Alfredo Luzero, for example, must be able to explain the
legal concerns of headquarters in Amsterdam to his managers in the subsidiary in
Lima. At the same time, he must interpret employment issues and legal concerns
of Peru, the host country, for upper management in Amsterdam.
 Legal and Governmental Considerations in Intercultural Business Communication 371

Specific Legal Systems

Although every country has its own laws and legal system, four major legal sys-
tems exist:2

• Code law
• Anglo-American common law
• Islamic law
• Socialist law

In many parts of the world, the major legal systems are influenced by indige-
nous systems and tribal laws. Former colonies frequently have kept the legal sys-
tem of the former colonial power. The result is a mixture of legal systems. New
Zealand, for example, follows British common law but also pays special respect to
Māori laws. The intercultural sensitivities arising out of the legal combinations
present intercultural communication issues. Contracts may be influenced by the
traditional considerations of a culture. India also has retained British common law,
but local traditions play a role. Payment for goods or services does not follow the
tightly regulated schedules of U.S. business firms. The law takes into account the
personal relationships of the parties involved. Businesses typically do not press
for payment within a specific time period. The assumption is that one does business
with people one can trust, and therefore it is assumed the clients will pay when
they can. When local laws are not well developed, local law may be applied in
civil cases, but in international business transactions a Western legal system may
be used.

Code Law
Western continental Europe follows code law. In code law, the emphasis is on the
wording of the law rather than similar cases that have been tried previously. Code
law comes out of the French legal tradition. French code law dates back to 1806.
It was written under the direction of the Emperor Napoleon in an attempt to clar-
ify the legal situation. Although French code law is based on Roman codes, it also
incorporates some of the ideals of the French Revolution, such as the right to pri-
vate property and the freedom to make contracts. French code law also is known
as the Code Napoléon, and is written in a clear and concise style meant for the
citizen.
German code law (Bürgerliche Gesetzbuch, or BGB) was enacted in 1896. It is
a highly structured, precise, and detailed system. In both the French and the Ger-
man systems, decisions are made by expert judges who interpret the law. Previous
decisions in similar situations have only limited persuasive authority.
Code law is deductive. A student of code law learns to read the law paragraph
by paragraph. He or she gets the interpretation of the law from a law professor or
judge. Previous cases involving a similar legal issue are not binding and not overly
important in the logical thought process.
372 Chapter 10

Anglo-American Common Law

Under common law, decisions are based on precedent in similar cases. Common
law grew out of common practices of the courts of the king of England. Most of
England’s former colonies, including the United States, have retained common
law. Two notable exceptions are Louisiana in the United States and Québec in
Canada. The state of Louisiana and the province of Québec have maintained their
French heritage and French legal system. Both use code law.
Common law is inductive. The last relevant case becomes the source of law;
therefore, it is also called case law. The terminology can be confusing. For example,
the United States, a common law country, has the Uniform Commercial Code
(UCC). The UCC was enacted to guarantee uniform enforcement of commercial law
across the 50 states. All the states, except Louisiana, have adopted the UCC. In the
first few years after the passing of the UCC, lawyers had a hard time interpreting
the code because the case law in this area had not been developed yet. In case law,
the meaning of the law comes out of cases rather than the wording of the law itself.
The following case is an illustration of the application of common law to a business
problem. This case is almost 50 years old, but its age is irrelevant. In fact, the age is
an advantage because it shows that this decision has stood the test of time. Every law
school teaches this case as an illustration of common law, and it is famous in inter-
national business circles. It illustrates the difficulties a company may face if the man-
agers do not communicate clearly. If there is a universal ethical standard, a universal
standard of right and wrong, it should be possible to clarify the standards through
rules and laws and thus ensure that everyone understands and accepts the standards.

In Focus

Frigaliment Importing Co., Ltd.,

Plaintiff
v.
B.N.S. International Sales Corp.,
Defendant
United States District Court
S.D. New York3

B.N.S. International Sales Corp. from the United States and Frigaliment Importing Co. from Switzerland had signed a
contract under which B.N.S. would deliver 100,000 pounds of chickens to Frigaliment. The chickens were shipped ac-
cording to the agreement; however, Frigaliment argued that those were not the chickens that had been ordered and
that the American company had promised. Therefore, Frigaliment did not want to pay for the shipment.
Since the two parties could not agree on a solution, Frigaliment went to court. The case was tried in a U.S. district
court in New York. The judge decided that the Swiss firm could not collect damages but was bound by the contract
and had to pay for the chickens. Two issues that are of interest with regard to intercultural issues in legal communi-
cation are translation and the application of common law.
 Legal and Governmental Considerations in Intercultural Business Communication 373

LANGUAGE ISSUES
The entire preceding case hinges on the definition of the word chicken. Is the term used for any chicken, young and
old, male and female, or does it mean a particular type of chicken? The Swiss company argued that chicken meant a
young chicken suitable for broiling and frying. It furthermore argued that stewing chickens are referred to as fowl. The
Swiss firm in its argument contrasted chicken (broiler) with fowl (Suppenhuhn).
The American company argued that chicken means any chicken. They said that since the Swiss company had not
specified what kind of chicken it wanted, the Swiss should be made to pay for the shipment. At issue are the correct
translation of terms and the accepted use of terms in the chicken trade.
As we have discussed repeatedly throughout this book, businesspeople must understand what the literal mean-
ings of terms are and how those terms are used in relevant business situations. Clearly, the two sides in the case did
not communicate clearly what they wanted. This is particularly interesting because both sides had experience with in-
ternational transactions.

APPLICATION OF COMMON LAW

In deciding the case, the judge in the United States, Oliver Wendell Holmes, referred to case law, which he then ap-
plied to this particular case.
• Holmes, a famous judge in the United States, said that “the making of a contract depends not on the agreement of
two minds of one intention, but on the agreement of two sets of external signs—not on the parties’ having meant
the same thing but on their having said the same thing.”4
• One of the cases he cites goes back to 1761, Lord Mansfield v. East India Co. He uses this case to comment on the
credibility of witnesses. One of the witnesses testified that to him chicken definitely meant broiler. However, the
judge argued that this testimony did not support the witness’s own practice; the witness in his business always
used the word broiler if he wanted to make sure that he would get young chickens. The precedent established that
no credit should be given to a witness’s testimony if the witness was not consistent in usage.5 Based on the prece-
dent, the judge decided that the Swiss firm had no case.
Had this case been tried under code law, the references to old legal cases and opinions of previous judges would
be irrelevant. It would not matter what the judge said about the credibility of a witness in 1761 in London. What would
matter would be the interpretation of current law today by a legal expert.

Islamic Law
Islamic law is known as Sharia. It is based on the:
• Qur’an, the holy book of Islam
• Sunnah, the deeds and sayings of Mohammed
• Interpretations of Islamic scholars
• Consensus of the legal community
In addition, Islamic law has been influenced by indigenous and tribal laws, such
as Arab Bedouin law, commercial law from Mecca, agrarian law from Medina, and
Jewish law.
In contrast to Western legal systems, Sharia encompasses the totality of religious,
political, social, domestic, and private life. Sharia is concerned with ethics and moral
issues rather than being limited to commercial law and regulations. Islamic law has
been static for several centuries; no new interpretations have been allowed. As a
374 Chapter 10

result, Islamic law has almost no provisions to deal with modern international busi-
ness practices and transactions such as credits and interest payments. Nevertheless,
several Islamic countries, including Iran, Pakistan, Saudi Arabia, Sudan, and Libya,
have Islamic law as the ruling law. Any international manager doing business in an
Islamic country needs to be aware of some of the practices of Sharia, specifically as
they relate to contracts, banking, and agency relationships. These aspects are dis-
cussed in greater detail later in this chapter. Not every country with a Muslim pop-
ulation follows Sharia. In Turkey, for example, 96 percent of the people are Muslims;
however, Turkey does not use religious law. In the 1920s, Kemal Ataturk, the father
of modern Turkey, deliberately set that nation on a course of westernization. In the
process, he removed Islamic law and replaced it with a mixture of French and Swiss
law. Today, this system is modified to bring it in line with the European Union.
Islamic law applies to the practices of all individual Muslims, but it also covers
foreigners living in an Islamic country. For example, in Saudi Arabia, women are
not allowed to drive. This rule applies to foreign as well as Saudi women. Saudi
women typically are not allowed to travel on their own. Similarly, Western women
cannot travel alone in Saudi Arabia. The ban on the consumption of alcohol in-
cludes everyone, Saudis and expatriates. When Muslims travel abroad, they are not
totally bound by Sharia, since Muslims recognize the practical difficulties of liv-
ing by Sharia in other cultures.
The enforcement of Sharia varies from country to country, and businesspeople
need to familiarize themselves with the specific rules for each country. Even in the
strict countries, however, the enforcement of traditional Islamic law, such as the cut-
ting off of the right hand for theft, is rare. Yet violating religious law can have severe
and unexpected consequences.

Socialist Law
With the political and economic changes in Eastern Europe and Russia, the fourth
system, socialist law, is losing importance. However, several of those countries are
still struggling to put new legal systems in place. As long as remnants of socialist
law remain, it is advantageous to have some understanding of socialist law. In
Russia, for example, the legal system is still in flux. Many of the old laws regulat-
ing property ownership have been discarded, but new laws, even if they are on the
books, are not enforced consistently. The emergence of the Russian Mafia, an
illegal network operating outside the law, has made the enforcement of laws even
more complicated. The uncertain legal situation and constantly changing govern-
ment regulations create an uncertain and insecure environment for both domestic
and international business.
Similarly, China’s legal system is still developing to deal with modern business
practices. Foreign firms work in China under a high level of uncertainty. Rules re-
garding what percentage of a company or joint venture a foreign company may
own or what amount of profit a subsidiary may take out of China back to the home
country seem to change fairly often. Civil law is changing as more and more
Chinese are working for foreign companies or starting their own businesses. For-
merly, laws relating to corporate liability insurance and health insurance were not
 Legal and Governmental Considerations in Intercultural Business Communication 375

considered necessary. A person’s needs were covered through the work unit. The
organization took care of expenses. Employees did not have to worry, but they also
made very little money.
In the past, Chinese citizens did not need to know anything about insurance;
they did not need to know about health care options. This has changed drastically.
Today, employees earn more, particularly if they work for private or foreign
firms; however, they need to pay much more for health care, insurance, trans-
portation, and housing. Even for employees who work for state-owned compa-
nies, the cost for health care has gone up dramatically, and the government no
longer covers all the costs. At the same time, the demand for modern and up-to-
date care has been growing. To meet this need, private insurance companies, both
foreign and domestic, have moved in. The government, private corporations, and
insurance companies have been educating the public about the underlying princi-
ples of insurance, and they communicate the advantages and disadvantages of
various plans.

Dispute Settlement
Direct Confrontation and Arbitration
When disputes arise over a contract (also see Chapter 9), the question is whose
courts will decide the outcome and which law will be applied. A manager needs
to consider the area of dispute settlement from the very beginning of the negoti-
ations and make it part of the negotiation. Each party probably will want the
courts of its own country to settle any disputes in the hope that this will be an
advantage. In a dispute between a Japanese business and a U.S. business, the
Americans will want a court in the United States—for example, a court in
Texas—to hear the case. The Japanese, in contrast, will want Japanese courts—
for example, in Tokyo—to hear the case. However, because of the tendency of
U.S. courts to award huge settlements (up to millions of dollars), it may be ad-
vantageous for the American firm to have the case decided in a foreign court. It
is helpful if the parties are aware of past decisions in cases of conflicts. If oppos-
ing parties conclude that the courts in the other country have been fair in the past,
the nationality of the court may not be crucial.
The two parties also may take into account the nature of the business. If the joint
business dealings involve shipping and the law of the sea, it may be advantageous
if a British court hears the case. The British have a very well developed law of
admiralty and therefore may render the fairest and most objective judgment. As a
result, a Portuguese firm and a Thai firm, may agree to use British admiralty law
in disagreements over shipping issues, even though both firms are in countries that
have their own established legal systems.
Traditionally, high-context cultures place less emphasis on detailing the rules
and legal provisions in case of disagreement. They prefer a style that avoids find-
ing out who is to blame and who should be punished (also see Chapter 3 on the
cultural dimension of rules-observing versus rule-bending).
376 Chapter 10

In Focus

René Lafontaine, a businessman from Lyon, France, had been appointed as the manager of a department in a French
subsidiary in Riyadh, Saudi Arabia. He supervised several French men and women and about a dozen Saudi men. He
had never been to Saudi Arabia before, and after a month in the new job he decided to host a party after work on com-
pany premises. He arranged for food, soft drinks, and wine. Things went very well, and everyone had a good time, when
all of a sudden the religious police entered the premises and arrested everyone in attendance. The entire group was
taken to jail, where René learned that the group was accused of illegal consumption of alcohol and prostitution. He
could understand the first part but not the second until he was told that the attendance at the party by unmarried
French women was considered a form of prostitution. He managed to call the French embassy in desperation. Surely,
the French ambassador could clear up the whole mess and get them out within an hour. He was wrong; it took the
ambassador 24 hours to resolve the situation.

Two Japanese firms doing business together hardly ever resort to the courts to
settle disputes; in fact, a firm that goes to court, even if the law is on its side, may
lose face. As we discussed earlier in this book, the emphasis in communicating in
Japan is on creating an atmosphere of harmony. A lawsuit would disrupt harmony
severely. The firm that brings the suit may lose as much or even more face than
will the firm that is being sued.
However, a non-Japanese businessperson also should know that in international
contracts the Japanese may insist on as much clarity as do Australians, who come
from a low-context culture. Firms around the world may practice one style within
their cultural boundaries and another one outside their national boundaries.
In countries where suing is not a culturally acceptable means for settling dis-
putes, mediation and arbitration play important roles. Even firms in low-context
cultures are beginning to turn to mediation and arbitration in an attempt to cut le-
gal costs and avoid disrupting business transactions.
Arbitration is generally quicker and more neutral than a lawsuit. In arbitration,
both sides agree on certain rules before a dispute occurs. They also agree to abide
by the decision of the arbitrator. The win–lose approach of lawsuits is replaced
with a communication style that seeks to overcome disagreements and reestablish
common goals.
When negotiating contracts and trying to set up new business ventures in a
country, a manager must examine the overall business climate and government
regulation of business. For example, does the government create a positive atmo-
sphere for doing business? Is the government fair, and does it treat locals and for-
eigners the same way? Or does the government protect local interests each time a
dispute arises?
If a company from Venezuela and one from Thailand have a dispute, they have
the following options concerning which courts have jurisdiction (in which coun-
try the case will be brought) and which law will be applied.
 Legal and Governmental Considerations in Intercultural Business Communication 377

Which Courts Will Have Jurisdiction?

• If the contract does not specify jurisdiction, the courts in the defendant’s coun-
try will hear the case. If the firm from Venezuela sues the Thai firm, Thai courts
will hear the case.
• The two parties may agree that the courts of the country where the contract is
to be performed will hear the case. If, for example, the Venezuelan company is
to send component parts for assembly to a Thai subsidiary in Tanzania, the
Venezuelan firm and the Thai firm may agree that the courts in Tanzania will
have jurisdiction.
• The two sides may agree in the contract that the home of the “stronger” party
will have jurisdiction.

Which Law Will Apply?

• The two parties can specify which law they want to apply. As was pointed out
earlier, in maritime cases both sides may feel comfortable with British admi-
ralty law because it is very well developed and respected.
• The two parties may agree to apply the law of the country where the contract
was signed. For example, if the Thais and the Venezuelans meet in New York to
sign the contract, they could decide that American law should apply.
• The two sides may agree that the law of the country where the contract will be
performed shall apply.
The legal situation can get even more complicated. The two partners in the ex-
ample may decide that they will use German law (Tanzania was a former German
colony, and German law is still part of the system) in a Tanzanian court. Even
though the contract is between firms from Venezuela and Thailand, the dispute
may not deal with the laws or courts in either one of the countries.

Communication with Agents

International firms frequently hire agents to represent their interests abroad and
sell their products. Depending on the cultural environment of the agent, the rela-
tionship between the agent and the foreign firm may go beyond a strict business
relationship that can be severed at will. In cultures in which business relationships
are based on personal relationships and trust, the firing of an agent can cause loss
of face for the agent. The agency laws of most countries are based on cultural at-
titudes toward business relationships.
Agency law in Brazil almost always favors the Brazilian agent. Once an agent
has been hired, it becomes almost impossible to get rid of the agent regardless of
performance. A business going into Brazil must move very carefully and cautiously
before offering anyone a position as an agent. The same is true in many Islamic
countries. In Saudi Arabia, for example, it is also next to impossible to fire an agent
once he has been hired. Furthermore, agents must be Saudis. A company cannot
bring in agents from other countries, even other Muslim countries.
378 Chapter 10

In Focus

Justin Simons was in charge of the international division at Seedlink, an American seed company headquartered in
Bloomington, Illinois. As Brazil expanded its soybean production, he saw great potential in selling seed to Brazilian
farmers. His company had worked on a type of seed that would be perfect for weather conditions in Brazil. He had been
to Brazil once to explore the market. On the last day of the trip, he was introduced to Jose Menem, a likable man in his
thirties. Menem seemed to know the agricultural market. His English was good; this was an important point since Justin
did not speak Portuguese. Justin had read somewhere that connections are important in doing business in Brazil, and
Menem seemed to know everyone.
Justin did not want to waste any time; he was eager to sell in Brazil well before the competition did. Therefore, dur-
ing his second trip to Brazil he signed Menem on as an agent. A few weeks later Justin began to wonder what was go-
ing on. Menem had been enthusiastic and very optimistic about selling seed, but there were very few orders even
though it was the time of year when farmers would buy seed for the new crop. When he talked to Menem, he only got
evasive answers that things were difficult. Justin tried to convince himself that those were typical startup problems
and that things would get better the next year. But communication with Menem remained slow. Typically, Justin would
wait for several days for a response to his e-mails. When they did talk on the phone, Menem kept assuring Justin that
things would get better once conditions improved. Simons never quite understood what this meant. From contacts in
Brazil he found out that Menem was spending most of his time promoting products from other foreign companies.
When Justin learned that a major competitor had landed a huge order from Brazil, he decided that it was time to
replace Menem. He realized that he had to make sure that neither Menem nor Seedlink would lose face. Menem was
well connected, and he easily could damage Seedlink’s reputation. After talking to several managers at Seedlink,
Justin decided to contact a lawyer specializing in international business law. He could not believe what the lawyer told
him. Unless Menem agreed to a separation, which probably would be rather expensive, Simons would have a hard time
getting rid of Menem. In the meantime, the competition would build a substantial advantage in the Brazilian market.

Although hiring a local agent presents many advantages, it also poses chal-
lenges in intercultural communication. The agent may know the local territory
very well but may not be that familiar with the business practices of the country
where the firm is headquartered. He may have to struggle with language issues,
reporting requirements of headquarters, different attitudes toward planning, es-
tablishment of priorities, clients, and suppliers. The foreign manager may have a
limited understanding of the cultural and legal environment of the agent. He may
assume erroneously that the agent shares his attitude toward profit and has the
same priorities. A firm from the United States may feel that business will improve
if it hires two agents in a country so that the agents will compete. The agents, of-
ten supported by the laws of their countries, may, however, insist on exclusivity.
It is not enough to hire an agent and then assume that the agent will represent
the company and sell the products. The manager and the agent must work together
and communicate on an ongoing and regular basis. Ideally, the manager knows the
best way to formulate persuasive and negative messages in the agent’s culture. The
manager also must understand the role of hierarchy and authority in giving direc-
tives. If the manager deals with an agent from a culture that values seniority, a
 Legal and Governmental Considerations in Intercultural Business Communication 379

younger manager needs to take care when communicating with an agent who is
older to avoid insulting the dignity of the agent. The agent must be able to trans-
late the goals of the firm he or she represents into actions that go along with the
appropriate priorities of the culture. He or she must communicate to the firm what
accepted practices are in contacting clients, setting prices, requesting payment for
goods delivered, and working with government offices.

Trademarks and Intellectual Property

Cultures that emphasize the right to private ownership take trademarks very seri-
ously. The assumption is that a person or group can own something exclusively.
Chapter 1, for example, discussed the concept of land ownership among Native
Americans. In Native American culture, the concept of private ownership does not
make sense; no one person can own land. Similarly, one cannot own inventions;
therefore, Native Americans traditionally would not be concerned about private
ownership of trademarks and patents. In cultures in which individual recognition
and rights are emphasized, trademarks are seen as an important tool in protecting
those rights.
Rules relating to trademarks vary from country to country. In the United States,
for example, one can register a trademark only if there is a product behind
the trademark; one cannot register a trademark for a product one might develop
in the future. The American firm Babushka Markets, for example, cannot register
the trademark Babushka Cookies unless it actually has the cookies. The rules are
different in Brazil, where one can register a trademark without a product. A com-
pany or person could take the name of a successful product such as Babushka
Cookies from the United States and register the trademark in Brazil. If the com-
pany from the United States at a later date wanted to sell Babushka Cookies in
Brazil, the firm first would have to buy the rights to the trademark.
Trademark regulations have become a major issue in international trade nego-
tiations. The name of a firm or product and the shape of a product are seen as pow-
erful communication tools by businesses. For example, Quaker Oats from the
United States protects its trademark, the Quaker; Volkswagen protects its trade-
mark, the Bug; and McDonald’s protects its arches. Businesspeople must under-
stand the legal background and cultural ramifications and develop an awareness
of trademarks as communication emblems that warrant protection. They need to
realize that there is no time limitation for a trademark or brand name.
Recently, some European countries have argued that several regional products
should have the protection of trademarks. Under this provision, Parmesan cheese
would have to come from the Parma area of Italy to be called Parmesan. Like-
wise, cheddar cheese would have to come from around Cheddar in the United
Kingdom to be named cheddar cheese. Clearly, Canadian cheese makers do not
support this effort.
The Internet has spurred a whole new dispute concerning the registering of
names. Some people have developed Web sites under names that belong to compa-
nies or organizations. As a result, a company that has been slow in developing a Web
presence may have to buy the Web name from the industrious Web entrepreneur.
380 Chapter 10

An effective Web name is worth a lot of money. Moldova, for example, recognized
that it could use its country designation .md for financial gain. Physicians in the
United States can purchase the right to use the designation .md from Moldova for
a fee. Moldova then uses the money to develop its Internet system.
Another area of common disputes in international business is the issue of in-
tellectual property rights. Intellectual property includes patents and copyright.
With advancing technology, intellectual property has become an important aspect
of negotiations. Who has the rights to what, and for how long does anyone hold
rights? Under U.S. copyright law, copyright protection lasts for the life of the
author plus 70 years. A movie or another work that has no individual author falls
under the collective copyright rule, which protects a work for 95 years beyond its
creation. Patent laws are good for 17 years.
Concerns are focused on two areas:
• Countries that violate copyright and patent agreements or have not signed
agreements
• Individuals who violate laws in the area of intellectual property rights

In Focus

India has not signed agreements on patents. As a result, an Indian firm manufactures pharmaceuticals developed in
the United States and sells them under a different name at a much lower price in countries such as Russia. Russia des-
perately needs pharmaceuticals but does not have the hard currency to purchase them from the manufacturer in the
United States. One could argue that pharmaceuticals are overpriced, that the Russians need the product, and that it is
a humanitarian measure to allow the production in India. The point that the firm in the United States makes, however,
is that the Indian firm did not incur any of the research and development costs.

An additional problem is that the legal system in the area of intellectual prop-
erty is still evolving in many countries. It is difficult to keep the laws current be-
cause of quickly changing technology and its impact on communication. Concerns
about intellectual property have commercial, financial, and cultural roots. A com-
pany that has invested money to develop a new product wants to reap the rewards
and not share its new product with others, at least for a while. These are the finan-
cial considerations. We have already addressed the cultural attitudes. Some
cultures emphasize private property; others don’t.
Computer software, DVDs, and CDs are another hot topic in international legal
communication. Frequently, developing countries have no laws regulating copy-
right violations, and if laws exist, they often are not enforced. In Rumania, for
example, companies regularly use pirated software. Everyone knows it, but
nothing is done about it. Office 98 was available in Rumania before it was released
officially for sale, and it sold for only a fraction of the price in the United States.
Likewise, the first Harry Potter book was available in China in Chinese before it
 Legal and Governmental Considerations in Intercultural Business Communication 381

was released in the West in English. Another big international issue is the down-
loading of music. The technology has made it very simple to put songs on iPods.
This practice has huge implications for copyright and royalty payments to the
artists.
The laws are fairly clear in Western countries: Copying is forbidden. However,
it is very difficult to enforce the law. Furthermore, it is very inexpensive to copy
software, DVDs, and music. The courts decided to close down Napster, a site that
facilitated the downloading of music. The argument is that artists are entitled to
royalties from their work. However, the closing of Napster was not very effective.
Other sites opened to provide the same service. Even otherwise law-abiding com-
panies have run afoul of copyright laws. A major insurance firm, for example,
found that its employees had copied software illegally. The problem was solved,
and the firm established very strict rules on the use of software, but it takes con-
stant vigilance, education, and enforcement of policies to ensure compliance. In
developing countries with limited access to hard currency, the temptation to vio-
late copyright laws is much greater. Any business firm must be careful to follow
the laws of its own country and those of the host country as they relate to intellec-
tual property rights. Both Napster and the insurance company are U.S. enterprises.
How do they illuminate the trademark and copyright issues internationally?
The issue of intellectual property illustrates that all of us bring our cultural pri-
orities and frame of reference to the negotiation table. Furthermore, the laws of our
respective countries tend to reinforce our cultural attitudes. To negotiate effec-
tively, we need to know both the laws and the cultural reasons for the laws.
The World Trade Organization (WTO) is attempting to resolve this issue by
making compliance with copyright laws a condition of membership. As was dis-
cussed earlier under our exploration of international law, enforcement could be
difficult, however. In 1995, China agreed to improve compliance with intellectual
property legislation, but the problem persists. The situation is further complicated
by what is considered selective enforcement of copyright laws. China tends to ar-
gue that it is impossible to enforce the law; however, China moved very aggres-
sively in the enforcement of copyright when it came to the mascot for the summer
Olympics. The mascot is a brand, and China made a lot of money by controlling
its use.

International Enterprise and the National Interests

Nations have an interest in regulating businesses within their boundaries. The na-
tional interest is to guarantee the continuation of the nation, and business regula-
tion must be seen in that context. A nation is first and foremost interested in
business as a promotion of its national interests.
• It may be in the national interest to promote trade to improve employment and
living standards at home.
• It may be in the national interest to curtail exports of certain items to guarantee
that the products are available for domestic consumption.
382 Chapter 10

• It may be in the national interest to curtail the importation of certain products

to protect domestic industries.
• It may be in the national interest to curtail bribery.
For example, France in the 1980s very consciously regulated the importation of
computers. Even though Apple computers had offered to put its computers in
schools for free, France rejected the offer. France considered it crucial for the na-
tional interest to develop its own computer industry. It was willing to go more
slowly in computerization than other countries if that meant the development of a
French computer industry. To some extent, the French were successful in building
a domestic computer industry. In the late 1980s, many French households had
Minitel, a computer system for shopping, booking airplane and train tickets, and
researching restaurants and other sites. However, the system was not compatible
with the emerging Internet. Since households had access to a variety of informa-
tion under Minitel, many were reluctant to purchase computers to hook up to the
Internet. In many ways, the success of Minitel slowed the acceptance of the tech-
nology that is used worldwide. Even today, France is lagging behind other Euro-
pean countries in computer ownership.
The Russians are experimenting with import and export taxes and regulations.
Currently the system is changing almost daily. The country has not decided what
ultimately will be in its best interest. The result is confusion everywhere. The gov-
ernment does not communicate clearly with its own firms and citizens, let alone
with foreign firms. Russia is a good example of how uncertain laws and confusion
can affect business communication.
Any nation’s government must weigh the short-term and long-term interests
of the country. If taxes on foreign businesses are too high, those businesses
will not invest in the country and the country may suffer. If Russia puts high
export taxes on products, it will hinder the international development of its
businesses and endanger the future development of its industries. Currently,
the legal uncertainties in that country communicate economic and political un-
certainty and instability to other countries and cause serious undervaluation of
the currency.
Free trade agreements are very popular around the world—a few years ago,
Mexico and Israel led with the most FTAs. They reduce tariffs for trade between
members, thereby encouraging exports. But countries have to balance their inter-
ests. Imports coming in without tariffs endanger local businesses that can’t com-
pete with the cheaper imports, at the same time that lower tariffs in export markets
encourage local businesses to sell abroad. The World Trade Organization (WTO)
is dealing with many of these trade and tariff issues.
Businesses have interests different from those of the nation-state. In many
ways, they have outgrown the nation-state. They increasingly look at the global
picture. They want to produce wherever it is most efficient; they want to move em-
ployees around the globe regardless of nationality and country boundaries. They
want to do business on a global basis without national restrictions. However, many
companies have issued rules regulating ethical behavior in their domestic and in-
ternational dealings.
 Legal and Governmental Considerations in Intercultural Business Communication 383

In Focus

Asaji Hasoi is the Japanese dealer for PowerBikes, a U.S. motorcycle company. He speaks good English and gets along
well with the marketing staff at the headquarters in St. Louis. Over the years, he has been in St. Louis numerous times
for training and product planning sessions. Hasoi has just received a fax from a new brand manager at headquarters,
Patricia Holter. Patricia introduced herself and announced that she would come to visit in a month to meet Mr. Hasoi.
Mr. Hasoi is delighted, and as he communicates with Patricia several times during the month before her visit, he is be-
ginning to look forward to meeting her. She seems to understand his concerns and is receptive to his ideas concern-
ing the marketing of PowerBikes in Japan.
At the beginning of their visit, they exchange some small gifts and then start discussing the issues at hand.
Mr. Hasoi takes Patricia to several stores that sell PowerBikes and introduces her to the store managers. During the
last day of Patricia’s visit, they wrap up the discussion. Both are pleased with the outcome. At the very end, Hasoi, as
a token of his appreciation and recognition of their successful relationship, presents Patricia with an expensive leather
jacket for a motorbike. The jacket is wonderful, and Patricia would love to have it. However, she also knows that under
company rules she cannot accept the present. An expensive present like this could be considered a bribe and there-
fore is not acceptable. At the same time Patricia realizes that Mr. Hasoi’s intent has nothing to do with bribery. What
should she do? She weighs her options and then politely declines the present.
Mr. Hasoi seems to take her rejection merely as a first polite refusal which would be appropriate under traditional
Japanese customs. Therefore, he once more offers the jacket. Patricia realizes that rejecting the present would be a
personal rejection of Mr. Hasoi. She explains the situation, but Hasoi does not seem to understand her predicament, and
he again insists that she accept the present as a token of their working relationship. Finally, Patricia takes the jacket.
The situation is clear. The present is in violation of company rules. Yet from a cultural viewpoint Patricia is in a
predicament. One could argue that Mr. Hasoi should understand the issues involved or at least accept Patricia’s ex-
planation. The reality is frequently different, and businesspeople must weigh their actions. In this case, one might say
that even though the jacket was expensive, the gift is a far cry from a multimillion-dollar bribe. But the rules do not dis-
tinguish between a gift to build or celebrate a relationship and a bribe.

Regulations come out of cultural values and concerns. They are meant to pro-
tect the national culture, and each country establishes its own laws and rules for
competition, taxation, employment, product quality, and the establishment of new
businesses. Typically, countries that don’t like uncertainty have more rules than
those that do. For example, an entrepreneur in Germany needs approval from many
more government offices than an entrepreneur in Finland does, and this approval
process takes time.
The United States has tried in the past to enforce its regulations for foreign sub-
sidiaries of U.S. companies. Foreign countries have resisted this attempt in many
ways, arguing, for example, that a Brazilian subsidiary of a U.S. firm is a Brazil-
ian firm subject to Brazilian and not U.S. regulations. This issue has come to the
forefront in antitrust legislation, employment, and labor laws. A manager who has
been sent from the United States to manage the Brazilian subsidiary must take the
following into consideration:
• American culture when communicating with headquarters in New York
• Brazilian culture when communicating with Brazilians
384 Chapter 10

• Brazilian laws when dealing in Brazil

• Brazilian legal aspects of the business in communicating with headquarters
• U.S. law and its effect on the company’s dealings in Brazil

The national government also can regulate the collection, storage, and dis-
semination of private information. In the United States, many firms have lists of
their customers that detail what products a customer purchased and when.
Supermarkets, by using specially coded customer cards, offer lower prices for
regular customers, but they also collect information on purchasing patterns.
Although a number of people in the United States are concerned about this prac-
tice, the majority seem to be willing to accept the practice in return for lower
prices at the checkout counter. The governments of the European Union (EU) are
more concerned about privacy. Under EU regulations a multinational cannot
share its customer list with headquarters without the written permission of the
customer. For example, Land’s End Europe cannot transfer its customer file
from Europe to the computer system at headquarters without the express per-
mission of its individual European customers. From a business viewpoint, this
regulation makes it more difficult to develop companywide comprehensive mar-
keting plans.
In many cases, national laws are intended to protect domestic companies from
competition. For example, Germany still has stricter legislation on when stores can
be open than do most other European countries, and those laws apply across
Germany. For many years, German consumers were willing to accept the law.
However, as more Germans traveled abroad, they began to question the rules.
Nevertheless, the lobby of small store owners was powerful enough to keep the
law. And then e-commerce arrived. Even if the German government tried to
enforce “store hours” on the Internet, it would not work. With the Internet, Ger-
mans can now shop around the clock, including Sundays, and they take advantage
of the opportunity. eBay and Land’s End have thus become very popular.6
When Walmart entered Germany, the law allowed stores to be open between
7 a.m. and 6 p.m. Monday through Friday, and 7 a.m. till 4 p.m. on Saturday.
Most German stores opened at about 9 a.m. even though they could have opened
earlier. Walmart saw this as an opportunity and decided to open as early and
close as late as the law allowed. In addition, Walmart emphasized customer
service and a friendly atmosphere. As German stores watched the success of the
new arrivals, they were forced to change their hours and communication with
customers.
Chains such as Aldi and Lidel have adopted the Walmart practice. In addition,
filling stations increasingly sell food items, and many of them make more money
selling food than they make selling gasoline or petrol. Officially, filling stations
are allowed to sell only items a traveler might need, but enforcement has become
very lax. First the law tried to protect small stores, and then it changed the official
hours so that now all stores can be open till 8 p.m. Monday through Saturday. How-
ever, the change has come too late for most small stores, which effectively have
been pushed out by the large stores and the filling stations.
 Legal and Governmental Considerations in Intercultural Business Communication 385

Legal Issues in Labor and Management Communication

Labor laws and attitudes toward labor–management relations have deep-seated
cultural roots and are not easily transplanted. The bargaining process influences
the communication patterns between the two parties. Labor–management rela-
tions in the United States are adversarial. Management tries to give as little as pos-
sible, and labor asks for as much as possible. The two sides sit down to bargain and
negotiate for a settlement. The adversarial process is culturally determined and is
enforced by bargaining rules (also see Chapter 9).
The British believe that the adversarial process protects the rights of workers and
gives companies a competitive edge. The idea of cooperation between management
and labor is strange to the class-conscious British. The bargaining process both in
the United States and in Great Britain emphasizes competition and winning. It is
“us” against “them,” and the goal typically is to beat “them,” whoever “they” are.
The Germans, although also very competitive, have tried consciously to over-
come the rift between labor and management and to set common goals. As a re-
sult, the German system functions very differently. There labor and management
sit down together to determine the future of the company. The so-called Mitbes-
timmung (co-determination) requires that half the members of the Aufsichtsrat, or
board of directors, be representatives of the employees. The idea is that they are all
in the same boat and therefore must work together for the common good.7 One un-
intended side-effect of the law is that it can restrict the number of non-Germans
on the Board of Directors, thereby limiting the diversity of the board.
Under the German Mitbestimmung law, every firm has a Betriebsrat, a work-
ers’ council.8 This group is heavily involved in terminating employees and setting
work rules and other conditions of employment. Again, management and workers
sit down together to review cases. A manager from the United States or Great
Britain may find it difficult to adjust to this situation.
Court decisions in the United States have held this German-style cooperative
approach to be a violation of the law. The unions argue that this cooperation vio-
lates the traditional role of unions and the adversarial relationship. A Betriebsrat,
they argue, is an illegal company union that essentially is working for management
and does not represent the employees.9
Tell that to the Japanese. The Japanese system is entirely different. It empha-
sizes harmony and the group and avoids open confrontation if possible. In Japan,
under General Douglas MacArthur’s leadership after World War II, company
unions were established to stabilize the labor market. In a company union, the in-
terest of the workers and the interest of the company are represented. Workers are
very much aware of the fact that unrealistic demands on their part would threaten
the profitability and long-range success of the firm. Management realizes that it
depends on the workers and that good labor relations will improve the perfor-
mance of the firm. As a result, they tend to work together. In tough economic
times, however, many Japanese firms have had to lay off workers, and those work-
ers feel betrayed by a system they trusted. In addition, foreign multinational com-
panies have introduced different approaches to human resource management.
386 Chapter 10

By Western standards, Japanese unions appear to be docile and not really unions.
For Japan, in building the country’s economy, they worked very well. Company
unions also have been able to build on the group orientation of the Japanese. Al-
though company unions are fairly new post-WWII, they have built on traditional
values. With the economic problems Japan is facing, similar to those of other in-
dustrialized countries, the bargaining process is changing somewhat. Workers are
becoming more outspoken, and companies are reluctant to give in to demands.
Union membership in Japan typically includes everyone up through the lower
management and supervisory levels. Masataka Ota at Mitsubishi, for example,
will be in the company union until he reaches the management level. Then he will
leave the union. As a result, the gap between union and management, so strong in
British, Canadian, and U.S. firms, is smaller in Japanese companies. Managers
have all been in the union at one time. In fact, very successful managers often have
been union officials. Their success in that position is seen as proof that they can
work with people who have different opinions and can build consensus and
communicate effectively. The Japanese believe that unions develop the communi-
cation skills that are vital for harmony in Japanese firms. Union membership is a
stepping-stone in the hierarchy because it develops communication skills.
Any manager working internationally must be familiar with the varying rules
governing unions, cooperation, and adversaries. The existing structures, laws, and
rules greatly influence the way a manager communicates with workers. Lack of
knowledge, at best, may be disruptive, and at worst may cost a company a great
deal of money.

Labor Regulations
Employment Communication
In day-to-day operations, employment communication may well be the most im-
portant issue. Traditionally, U.S. companies have practiced employment at will for
nonunion employees. That means a company can hire and fire an employee at will
with or without cause. Over the last few years, regulations on affirmative action
and discrimination based on the Civil Rights Act of 1964 and the Americans with
Disabilities Act of 1992 have started to change some of that, but compared with
Japan and many European countries, employment in the United States is a variable
cost factor. People are hired when times are good and let go when business is bad.
The regulations in other countries are much tighter.
As was discussed earlier, large companies in Japan practice lifetime employ-
ment, but the system has been changing. Under lifetime employment, workers are
considered a fixed cost, not something that can be changed easily. Regulations in
France and Germany are very strict when it comes to terminating employees, and
rules and regulations are spelled out clearly. Employees have lengthy written con-
tracts and after a probationary period of a year are essentially on lifetime employ-
ment. A business in the United States wanting to buy a German factory needs to be
aware of German labor law. In several cases, U.S. companies bought a firm under
 Legal and Governmental Considerations in Intercultural Business Communication 387

the assumption that the firm would be very profitable if the number of workers
could be reduced. They found out after the purchase that any reduction in the labor
force was a complicated and time-consuming process. Former Chancellor Gerhard
Schröder was attempting to make the system more flexible, but any changes proved
to be very difficult. The Germans, who don’t like uncertainty10 to begin with, have
become used to the certainties of the Sozialstaat (social welfare state). They agree
that something has to change, but they are hesitant to make it easier to fire people,
shorten unemployment support, or lose contributions to health care. However, with
the economic problems, a growing number of people have lost employment. This is
seen by many as a violation of a social contract, and laid-off workers increasingly
go to court to fight for their jobs. In view of the economic pressures, the employ-
ment laws are beginning to change, but this also requires a cultural change in
thought patterns and expectations. In addition, national laws need to be reconciled
with laws of the European Union. Under European rules, employees in the service
industry are allowed mobility throughout Europe. However, high-wage countries,
such as Germany and France, are afraid of an influx of workers from Poland or Slo-
vakia and are determined to keep workers from lower-wage countries out.
In legal considerations, the courts of a country tend to be very protective of
their jurisdiction in matters of employment. Any foreign subsidiary must comply
with the labor laws of the host country, and any contract clause restricting court
authority in this area is held to be invalid.
Different legal regulations of the employment process have a definite effect on
job search procedures and employment communication in different countries.
A student in the United States who has just earned a university degree will put to-
gether a résumé and start writing cover letters. The student may even have taken a
class about how to best conduct a job search. Many books give advice on how to
land the best job. However, rules are very different in different countries, and with
increasing foreign investment in the United States, American students cannot limit
themselves to the “American way” of finding a job.
The same development is taking place in other countries as well. Job seekers in
Great Britain may apply for a job in a U.S.–based firm. Even though the laws of
Great Britain apply, the degree of appropriate assertiveness or the number of
follow-up letters and inquiries nevertheless is culturally determined and influ-
enced by the home country, in this case the United States. Also, a firm involved in
international business cannot select employees solely on the basis of the home
country’s employment practices and laws. Any international firm needs to take
local employment customs into consideration.
The résumé and the accompanying cover letter are influenced by culture and
laws, as was pointed out in Chapter 7. In the United States, personal information on
résumés is discouraged. Yet German firms want personal information, and so do the
French and the Japanese. Any job applicant in the United States who wants to show
sincerity and good business etiquette will laser print the résumé and type the cover
letter. In France, either the letter or the résumé should be handwritten so that the firm
can conduct a handwriting analysis. In Great Britain, the cover letter may be
handwritten. In Japan, the résumé used to be handwritten because nobody owned a
388 Chapter 10

typewriter (any typewriter with Kanji needed thousands of keys). With the advent of
personal computers and word processing, however, today most Japanese résumés are
typed. Word-processing programs allow the writer to enter text in Hiragana.
Hiragana is a syllabary, which means that every syllable can be represented by a
symbol, just as a letter of the alphabet represents a sound. Hiragana consists of about
56 syllables, a number that can be accommodated easily on a keyboard. A software
program can transform the syllabary into Kanji. Kanji are Chinese-based characters.
Each Kanji represents a word, a concept, or even a sentence. Japanese has thousands
of Kanji. As a result, typewriters once were expensive and cumbersome to use.
Even the choice of an envelope can influence the chance to get the desired job.
In the United States, the résumé and letter typically are folded neatly and placed
in a regular No. 10 business envelope. In Germany, all materials are put in a clear
plastic cover and then placed in a DIN A4 (about 81⁄2 by 111⁄2 inches) envelope,
unfolded. A folded résumé and cover letter would be unacceptable.
The job interview also varies greatly from country to country. Americans are
taught to be assertive (assertiveness is discussed in Chapter 7). The Japanese, in
contrast, want to show that they are adaptable and fit well into a work group. Man-
agers hiring an employee intuitively will look for the traits that bring success in
their own culture. It is natural to feel comfortable with the familiar because it
facilitates the interpretation of verbal and nonverbal communication signals. In the
process of looking for the familiar, many people who are different and could bring
new views and insights to the job may be passed over.
Since Japanese companies hire employees on a long-term basis, they are will-
ing to spend a lot of time and money on the interviewing process. Mitsui Trading
Company, for example, interviews 3,000 applicants in a total of over 5,000 inter-
views to select about 200 new employees. All top executives in the company are
involved in the process. From a U.S. viewpoint, this makes no sense. Managers
don’t want to spend more time and money on entry level employees than ab-
solutely necessary. In the United States, it is assumed that new graduates may stay
three to five years; therefore, the employment process is supposed to be lean.
In planning for international expansion, managers should be aware of, and un-
derstand, the basic employment issues in the target country. They also need to de-
velop a feel for the role of the manager in the lives of the employees. As was pointed
out in earlier chapters, American managers do not get involved in the personal lives
of their employees. There may be a company picnic or company Christmas party,
but generally personal life remains outside the office. This is very different from
the situation in Latin American and Asian countries, where the manager is not just
the manager but also a father figure who takes care of the employees and is involved
in their private lives. Although this involvement may not be specified by law, it is
specified by custom, and an international manager needs to act accordingly.

Laws for Safety on the Job

All cultures want to keep their workers safe, but they differ in their communica-
tion about how this can be accomplished. Low-context cultures believe that
detailed rules and regulations create a safer work environment. Firms operating in
 Legal and Governmental Considerations in Intercultural Business Communication 389

the United States and similar cultures often feel burdened by enormously detailed
and complex safety regulations that are enforced by the Occupational Safety and
Health Administration (OSHA). OSHA has, in fact, made the workplace safer, but
some foreigners often think that the rules go too far. The regulations must be seen
against the background of the tendency in the United States to believe that all in-
juries and accidents can be prevented if the regulations are strict enough. That at-
titude is based on the cultural priority that planning can prevent most problems.
Furthermore, there is the assumption that the company must be at fault in the case
of an accident and that the remedy is a large lawsuit and additional regulation. In
many other countries, the rules are less stringent and common sense is applied
more often, in part because going to court is not as profitable and because litiga-
tion generally is not practiced.
Safety is considered important in high-context cultures, but members in those cul-
tures are more likely to recognize that not every accident can be prevented. In Arab
countries, for example, people believe that fate determines to a great extent what will
happen and safety rules ultimately cannot interfere with fate. As a result, lawsuits are
rarer in high-context cultures, and if they occur, settlements tend to be lower.
Every country has its own work rules and attitudes toward what constitutes
safety on the job. In the United States, for example, construction workers wear
steel-toed work boots to protect their toes from heavy objects. In Japan, construc-
tion workers traditionally wear cotton leggings with a very thin and flexible rub-
ber sole. This looks absolutely horrifying to a Westerner. When one of the authors
discussed this with Japanese construction workers and pointed out the shortcom-
ings of this flimsy footwear, the Japanese were astounded. How could anybody
feel safe on a bamboo scaffolding wearing inflexible, rigid boots? The Japanese
are interested in the flexibility and the grip, which is better achieved with the
Japanese boots. Workers in the United States are more interested in protecting the
toes from falling objects. A number of female workers on an assembly line in
France were wearing sandals without any socks. The supervisor said that the
women knew that they were supposed to wear shoes. If they didn’t, that was their
choice. Because of the liability laws in the United States, no American manager
could tolerate that behavior.
In U.S. construction companies, alcohol is absolutely forbidden on the job.
Construction workers may drink their beer after the day’s work is over but defi-
nitely not during the day. In France, where wine often is considered a beverage like
water rather than alcohol, French employees may drink wine during their lunch
break. They probably would not agree with the argument of people in the United
States that even the moderate consumption of alcohol in this environment is a
safety issue. In Germany, in contrast, new laws have drastically changed the be-
havior of drinking beer during the workday. Based on the law, the insurance com-
pany will not pay if a driver has an accident after consuming even one beer.
Foreign companies need to be sensitive to cultural differences. Otis Elevator,
for example, has the rule that under no circumstances is an Otis Elevator employee
allowed to have any type of alcohol during lunch even if the French counterparts
have a glass of wine. To violate this rule lays the employee open to disciplinary
390 Chapter 10

action or even dismissal. In this case, we are not talking about drinking alcohol
while operating dangerous machinery but about a glass of wine during a lunch
meeting of managers in France. This situation does raise the issue of whose stan-
dards should be applied.

Equal Opportunity
In the United States, legal protection for the equal opportunity of women is in force,
and the law says that women should be allowed to work in any field, including con-
struction and mining. There should be no restrictions on women’s working night
shifts. Women have the same right to any job as men do. European countries and
Japan look at this rather differently. Women in Japan are not allowed to work night
shifts. It is considered bad for their health to work at night. They also are restricted
with regard to overtime. France and Germany have rules protecting women from
dangerous or physically taxing work. What is meant as protection often turns out to
be reduced opportunities. A well-meaning manager who comes to Japan and wants
to provide equal opportunities for women, following the pattern in the United
States, may not only run afoul of the law but also alienate the local workforce. At
the same time, foreign businesses coming into the United States often do not take
seriously the rules and regulations for equal opportunity. They are surprised that the
laws are enforced and that they must abide by them. In their own countries, equal
opportunity laws may be on the books but enforcement may be less vigorous.

In Focus

Sylvia Drucker recently graduated from a university with a degree in business. She had had excellent grades and was
confident that with her academic background and several internships she would have no difficulty finding a good job
in Germany. As she studied the job listings, she was glad to see that many companies encouraged women to apply.
Some even said that women would receive special consideration.
She had several interviews, and they all went well, but she was still waiting for an offer. The recruiters had been
impressed with her credentials, so where was the problem? She noticed that a number of her female friends had sim-
ilar experiences. Finally, she decided to talk to a family friend who was a manager to get advice. He informed her that
both her age, 24, and her family status, recently married, worked against her. The companies looked at her as a young
woman in her best childbearing years. If she were to become pregnant, under German law the company would have
to provide paid leave before and after delivery. If Sylvia wanted to stay home with her baby for two years, the company
would have to guarantee that she would get the same job once she returned. In the meantime, the company might have
to hire a temporary replacement.
As companies weighed the options, most decided that hiring her was too great a risk and too much hassle. Legally
they could not discriminate against her, but there were no teeth in the law.

In the Middle East, where the role of women is restricted in a number of coun-
tries, Western firms need to keep local laws and traditions in mind. Any attempts
to change the role of women would be seen as outside interference and would be
 Legal and Governmental Considerations in Intercultural Business Communication 391

rejected in many cases, not just by the men but also by the women. With grow-
ing Islamic fundamentalism, women in countries such as Egypt, where they had
greater opportunities to study and develop careers in the 1970s, 1980s, and early
1990s, are beginning to withdraw from public life again. In Iran, in contrast,
women are emerging as managers in businesses after having been marginalized as
a result of the Iranian revolution at the beginning of the 1980s.
The whole issue of equal opportunity is a sensitive one. For example, many ma-
jor firms in the United States boast in their codes of conduct that they practice
equal rights in all their subsidiaries. However, a look at job application forms in
some of the foreign subsidiaries of those firms indicates a different picture. The
employment application forms for work with a U.S. subsidiary in Germany, for ex-
ample, comply with German practice and German laws rather than U.S. customs.
Many of the forms ask for names and positions of parents and siblings, marital
status, number of children, health, and age of the applicant. None of these ques-
tions may be asked legally by a firm in the United States. Employment laws are
definitely culture-bound.
A firm may have the best intentions, but it also has to deal with the realities of
the hiring environment in which a subsidiary operates. The laws of the country
influence the way businesspeople communicate with their employees. Some ac-
tivists in the United States argue that the U.S. government should enforce compli-
ance with equal opportunity regulations in all subsidiaries of U.S. firms. How
would those people react if the Japanese came in to enforce Japanese employment
law in their American subsidiaries?
Managers need to be familiar with employment laws and with sensitivities both
at home and abroad in relation to these laws. If a company says in its code of con-
duct that it enforces equal employment throughout the company and all foreign
subsidiaries, that may be well meant, but it is also unrealistic. Perhaps the com-
munication should point out that the company will promote equal opportunity
whenever possible while complying with the local laws and customs. That would
be a more honest communication.

Legal Considerations in Marketing Communication

Marketing and advertising are regulated in all countries. Advertising is culture-
specific and is subject to local regulations. Aspects that typically are regulated are
the role of children in advertising, claims of superiority, standards of decency,
standards relating to claims of performance, and the language of an advertisement.
Russia, where advertising did not play a role in the past, is developing government
regulations, but the process is slow because that country has only a limited under-
standing of the role of advertisement and marketing. What counted in the past was
production, not distribution. Consumer goods were always in short supply. In ad-
dition, choice was limited. As long as only one type of flour or jam was available,
the manufacturer did not have to advertise a particular brand. Products in a way
sold themselves because of the limited supply; as a result, marketing communi-
cation did not develop. Today, Russia is experimenting with advertising and
392 Chapter 10

marketing legislation. Russians can study what other countries do, but they also
must find laws that fit their situation and cultural values.
One of the concerns in Russia is the issue of language in advertising. Driving
through Moscow, for example, one can see billboards with Western product names
written in the Latin alphabet. The Russian government, fearing being overrun by
Western culture, is beginning to insist that all advertising also must appear in the
Cyrillic alphabet. McDonald’s is complying with the rule. Signs for McDonald’s
appear both in the Western alphabet and the Cyrillic alphabet in Russia. Like many
other countries, Russia also seems to have local content laws when it comes to ad-
vertising. There is pressure on foreign firms to produce advertisements intended
for Russian television in Russia, but the law is not completely clear.
Uzbekistan, a former Soviet republic, also tries to legislate the use of language
in public life. By 2004, all textbooks were to be in Uzbek rather than Russian, and
all official communication is supposed to be in Uzbek. This has posed some
interesting problems. For the last 70 years, Russian was the official language.
Uzbek was spoken mostly by people in the countryside. As a result, Uzbek has
not developed the vocabulary necessary in modern business and technology.
Even people who speak Uzbek have to use many Russian words in their business
communication.
Increasingly, Poland is insisting on the use of Polish in advertisements by for-
eign companies. To protect the Polish language, for example, Marlboro ads in
Poland must give the health warning in Polish.
The French, ever watchful of the preservation of the French language through
its official language-protection agency, also have tight rules when it comes to the
use of language. They have announced sanctions against the use of terms such as
weekend, sandwich, and computer in advertising. In everyday speech, however,
people use those terms even though officially the words are banned. In spite of the
legislation, many French universities have developed programs in English. For ex-
ample, the Ecole Superieure des Sciences Commerciales d’Angers and the Ecole
Superieure Internationale de Commerce de Metz both offer an entire business
semester in English. The European Union (EU) encouraged students to study in
other European countries, but it became clear that most of the students had learned
English and were not very eager to learn French. To attract those students to
France, French business schools and universities had to offer a sufficient number
of courses in English. A similar development is taking place in most other coun-
tries in the EU. In an effort to facilitate international student exchanges with Eu-
ropean and non-European countries, universities increasingly offer courses or
even whole programs of study in English.
In contrast to the French, the Japanese, who are so protective of their culture in
other ways, do not have any problems with taking on foreign words. Throughout
their history, they have imported terms and “Japanized” them in the process to the
point where most Japanese children think that MacuDonaldu is a Japanese com-
pany. A separate Japanese writing system called katakana is reserved for words of
foreign origin, however, so Japanese readers understand immediately if a word
comes from a foreign language.
 Legal and Governmental Considerations in Intercultural Business Communication 393

Marketing in the United States involves a lot of hype. A product is the latest, the
newest, the best, better than the competition. In Germany, in contrast, claims to su-
perior performance are regulated strictly. Comparative advertisement is forbidden.
The use of a superlative such as best product is not allowed either, as it is not a
provable claim. For example, the brewery in Warstein wanted to advertise its beer
as Die Königin der Biere (the queen of beers); however the law did not allow this
claim. The brewery had to settle for Eine Königin unter den Bieren (one queen
among beers). Japan does not forbid comparative advertisement, but it is hardly
ever practiced because it would acknowledge the existence of the competition,
which in turn could cause loss of face for a firm.
The national concerns and national regulations of advertising and marketing
communication have received a severe challenge over the last decade with the ad-
vent of satellites, private TV channels, the Internet, iPhones, and BlackBerrys.
Some laws for regulating marketing and advertising strike us as quaint today.

In Focus

In the 1970s, Luxembourg, which had much more lenient rules on advertising than did its European neighbors, threat-
ened to park a satellite right over the country and beam its programs with advertising into other European countries.
The regulatory agencies, the media, and the businesses of the neighboring countries were concerned because that
would challenge and violate national legislation on advertising and might give an unfair advantage to firms from coun-
tries with less stringent regulations. For example, the role of children in advertisements was regulated tightly in most
European countries. In some countries, children were not allowed to be in commercials or commercials could not be
addressed toward children. In Holland, any advertisement for sweets had to show a toothbrush to communicate health
concerns. By advertising on the Luxembourg channel, firms could circumvent the regulations of their countries. Today,
geographic location has become mostly irrelevant in reaching potential customers.
Henry Williams travels a lot on business, but he can keep up with his favorite programs no matter where he goes.
In Uzbekistan, he can watch CNN, the BBC, Al Jazeera, and German and Russian television in addition to several Uzbek
channels. In Poland, he has access to the BBC, CNN, and Swiss, Austrian, German, and Polish channels. Although CNN
and the BBC may adapt their advertising to various regions of the world, they do not adapt to national laws. In addi-
tion, he can access the Internet from anywhere.

Such legislation is irrelevant today. No matter what government regulation in

Austria, Holland, Saudi Arabia, New Zealand, or Mexico may be, anyone who gets
satellite channels or gets news from the Internet has access to programming and ad-
vertising that may violate domestic laws. Governments may regulate advertising on
domestic television stations, domestic radio, and domestic print media, but the
technology has outrun the power of national governments. This is nowhere more ap-
parent than with the Internet. E-commerce is available to anyone with an Internet
hookup. A student in Japan has the same access to Amazon.com as does a student
394 Chapter 10

in Mexico. China is attempting to block access to the Internet and regulate compa-
nies’ use of the Internet, but in the long run this approach is unlikely to work.
The move by Google into China has to be seen in this context. Google, which
had prided itself for applying the same rules around the world and providing com-
plete access to the Internet through its service, has been widely criticized for self-
censoring in China. In China, Google blocked out a number of Web sites that might
be offensive to Chinese government sensibilities. Google’s argument is that it is
better for the Chinese to have access to most of Google’s services than none at all.
However, even this self-censorship does not result in blocking out all forbidden
sites. People are finding ways around the restrictions and can gain access to the en-
tire Internet.11 During the Iranian election controversy in 2009, the government
tried to limit access to Facebook, Twitter, and the Internet in general; however, a
total blackout proved to be impossible.
It seems that the only way to regulate advertising on the Internet or international
television is through international treaties and sanctions against countries that do
not enforce international agreements. However, as we discussed earlier in this
chapter, this would be very difficult to enforce.
This does not mean anything goes. An advertisement that can be seen by mil-
lions of people at the same time all over the world presents tremendous opportu-
nities but also great challenges. What may be culturally acceptable in one country
may be seen as irreverent, insulting, and insensitive somewhere else. For example,
a satellite channel that advertises a refrigerator by displaying a ham may be pre-
senting good illustrative advertising in Western Europe and North America but of-
fend people in Islamic countries.
The whole issue of advertising regulation presents tremendous challenges for
international business communication.

Investment Attitudes and the Communication

of Financial Information
Attitudes toward investment, finance, and accounting have cultural foundations.
Each country has rules regulating the collection, interpretation, and communica-
tion of these data. International businesspeople regularly communicate financial
information to:
• Domestic and international operations
• Governments and regulatory agencies
• Stockholders/shareholders
• Potential investors
A businessperson who understands the rules and is able to adapt this kind of
information to the needs of various audiences around the world will be more
successful.
The way people invest is greatly dependent on the laws of a country and on cul-
tural attitudes toward risk. A firm that needs to raise capital in a foreign market has
 Legal and Governmental Considerations in Intercultural Business Communication 395

to know how people save and what their attitudes toward risk are. After assessing
the attitude toward risk, firms can adapt their communication to the financial
community and the people of a culture so they can meet their financial needs. Ger-
mans are typically very risk-averse. They tend to save their money in the bank
rather than invest it in the stock market. During the height of the dot-com craze
even the cautious Germans started to invest in the stock market; however, the crash
of the market reconfirmed their risk aversion.12 Many decided that the potential
for loss was too great and that the money would be safer in the bank after all. Many
Americans also were burned by the crash; however, as the markets are beginning
to go up, more Americans are willing to invest in stocks once more.
The Japanese are known for high savings rates, with much of their savings in
post office accounts, but the savings rate in Japan is beginning to decline because
of consumerism. People in Singapore save about 35 percent of their income, but
the savings are enforced by the government and are dedicated to the purchase of
apartments and pensions. People in the United States, if they save at all, seem to
want a high return on their investment. Knowing how and why people save in a
particular culture will help a business decide how to communicate its plan to raise
money for expansion or improve operations.
An understanding of investment patterns also will help in assessing the prof-
itability of a firm. Typically, financial analysts examine the ratio of debt to equity,
meaning that they look at the relationship between what a company owns and what
it owes. In the United States, much of the stock is held as equities by individuals and
pension funds, and that stock is considered an asset. As a result, stock analysts look
for a low debt-equity ratio. In Japan, in contrast, few individuals hold stocks. Capi-
tal is provided by banks in the form of long-term loans. Loans, however, are not an
asset but a debt or liability. A company may be very profitable, but its debt-equity
ratio will be very different from that of a profitable American company. To judge the
health of a company appropriately, an analyst needs to understand the relationship
between attitude toward risk, investment patterns, and a company’s balance sheet.
International businesses need to study the various attitudes toward investment
of foreigners. People in most countries think it is all right if foreigners buy their
products or come and spend money as tourists; however, most countries get ner-
vous if foreigners start investing in real estate and buying up businesses. Cultural
prejudices emerge very strongly when it comes to foreign investment. For exam-
ple, shareholders in the United States were very upset at the prospect of the Chi-
nese buying Maytag, an American company that is known for producing
high-quality washing machines and other household appliances. Similarly, the
Germans were aghast that the U.S.–based Chrysler car manufacturer might share
platforms and parts with the luxury car Mercedes.
In the 1980s, for example, many Japanese firms started investing in the United
States. Many people in the United States considered that development acceptable
as long as the Japanese built factories and created jobs, but when Japan started buy-
ing into the entertainment industry and iconic entities such as the Sears Tower in
Chicago and the baseball team in Seattle, cultural defenses went up. The issue became
even more charged when the Japanese and other foreigners began buying farmland
396 Chapter 10

in the United States. Since that time, many Japanese firms have sold their American
holdings, often at a substantial loss. In many cases, the Japanese firms had
borrowed the purchase money against their real estate holdings in Japan. As the real
estate market in Japan collapsed, companies frequently could no longer finance the
debt of ownership in the United States and elsewhere. The ensuing financial crisis
brought down several governments and contributed to the crisis in Asia.
Most countries have rules for, and tight regulations on, foreign investment.
They specify the level of possible foreign ownership. In India, a foreign investor
may own over 50 percent only if the majority of the production is exported to earn
hard currency. The formerly communist countries and China for years had laws
that forbade foreign ownership altogether. That has changed over the last few
years, but the situation regarding foreign ownership is still not settled. China al-
lowed Ford Motors to come into China under condition that Ford build its plant in
the underdeveloped interior rather than in the coastal area. Motorola was allowed
to expand in China as long as they provided management training for employees
so that the Chinese could ultimately take over the management of the company. In
Russia, foreigners may now own parts of a joint venture, but the tax situation is
unclear and the repatriation of profits from the joint venture may not be permitted.
The idea is that Russia wants to have capital reinvested in Russia. A U.S. investor
should balance this goal against the perceived climate for investments if the rules
become too stringent and hostile.
Frequently, developing countries insist on local participation in foreign invest-
ment. The goal is to train and educate local people ultimately to run the businesses
and minimize the involvement of foreigners. China, for example, is willing to open
its market to foreign companies in return for training opportunities for its people.
Saudi Arabia also specifies the percentage of the workforce that must be Saudi and
the percentage of the payroll that must go to Saudi employees.
As was discussed in Chapter 3, under Islam the charging and earning of inter-
est are considered usury and therefore constitute a violation of the principles of Is-
lam and a violation of the laws. Western business, in contrast, would collapse
totally without the concept of interest. In Islam, a savings account does not draw
a predetermined amount of interest. Instead, the owner of the account participates
proportionately in the success or failure of the bank. If the bank is doing well, the
account shares in the profit. If the bank loses money, the account also loses money.
This seems to violate the Western concept of savings accounts as low-return but
risk-free investments. Standard Western banking communication with regulatory
agencies, businesses, and private citizens concerning interest rates for saving, bor-
rowing, and lending would violate the laws of the Islamic host country. Bernard
Lewis, a prominent scholar of Islam, argues that rules in regard to usury have pre-
vented Islamic countries from developing tools for modern business such as stock
markets and modern corporations. As a result, Islamic countries have fallen be-
hind in economic development.13
Islamic financial leaders argue that freedom from usury has kept their banks
free from corrupt practices stemming from greed and speculation.14
 Legal and Governmental Considerations in Intercultural Business Communication 397

The picture is complicated further by the fact that Islamic businesspeople tend
to accept Western rules when they invest their money abroad. They certainly have
no problem collecting interest on accounts in Western banks. Muslims sometimes
rationalize that different rules apply to dealings with the “infidel” compared with
dealing with other Muslims. Islamic countries may practice a dual system of bank-
ing: Western commercial banking and Islamic banking. Any foreign investor must,
however, be aware that in Saudi Arabia, for example, a foreign businessperson is
subject to the laws of Saudi Arabia. Traditionally, Saudi courts tend to favor Saudi
businesses over foreign interests.
Japan also is known for cultural hurdles to foreign investment. It is interesting
to note that Western critics of U.S. business practices, for example, tend to criti-
cize American resistance to Japanese investment as self-centered and imperialis-
tic. When Japan does essentially the same thing and resists foreign investment, the
same critics tend to argue that under international law Japan has a basic right to
protect its culture. The Japanese are very quick to point to the uniqueness of their
culture, which might be threatened by too much foreign investment or immigra-
tion. Over the last few years, however, a growing number of people in Japan have
begun to favor opening the country to foreign investment. DaimlerChrysler and
Renault, for example, brought major changes to the Japanese auto industry.
In Japan, many of the hurdles are hidden. The official rules do not necessarily
discriminate against foreign investment. In the construction industry, the rules did
not officially block foreign investment; it just happened that foreign construction
firms were hardly ever given a contract. When foreign firms started to insist on a
bigger piece of the action, the Japanese promised that Western firms would be con-
sidered. In practice, little has changed, though individual Japanese may sympa-
thize with Western firms. The arguments are as follows: “In order to build in
Japan, one must understand Japanese soils, be Japanese” and “Foreigners cannot
adapt to Japanese ways.” Although foreign firms most certainly should do their
homework to be successful when investing in Japan, all the preparation will be of
little use if foreign investment is blocked officially or unofficially.
The challenges for intercultural communication in the area of investment are
daunting. Sometimes the implications of investment agreements and national rules
are not totally clear until a project is under way.

In Focus

A German company was building a pharmaceutical plant in the Middle East. In the negotiations, the firm had promised
to use local building materials whenever possible and to stimulate and develop the local economy. That sounded easy
enough. However, the architectural prints had been developed in Germany. The German architect had, of course,
based the plans on German building materials and German building specifications for the typical pharmaceutical plant.
(Continued )
398 Chapter 10

As a result, the building materials had to be imported from Germany. The locals were outraged and charged “willful
deceit” (deceitful by design and on purpose). The Germans argued that it was impossible to build a modern facility with
the local materials.
Clearly, the two sides had negotiated in a vacuum and had not considered the ramifications of their decisions. The
whole problem could have been avoided if local conditions and materials had been considered at the very beginning
of the planning stages. Neither side acted out of ill will; both sides were simply ignorant of the conditions. If the Mid-
dle Eastern country had insisted on local materials, the German investor probably would have given up the project
rather than redesign it.
The implications of laws, culture, and local conditions have to be discussed at the beginning to lay the groundwork
for fruitful cooperation. The problem could have been avoided if both sides had been more aware of the priorities of
the other.
A European country was building a hospital in an African country. The African country had asked for a “low-tech”
health care facility that would take local traditions into consideration. Since patients generally were accompanied by
their relatives, space had to be provided for the relatives, too. Electricity was not supplied reliably, and it was doubtful
whether well-educated doctors would want to spend their careers out in the countryside, far away from the city.
Therefore, the locals wanted a hospital for basic care with minimum technology. The Western country, in contrast, had
its preconceived notion of a hospital and was not going to be accused of building a second-rate facility. It built a mod-
ern hospital that could have stood in any Western city. The building was completed; however, even after several years
the edifice went unused because the electricity was not sufficient, the air-conditioning could not be employed, and
doctors refused to go to the rural area.

Many developing countries have a pair of goals that seem to contradict each
other. They want foreign investment to provide maximum employment of local
workers, but they also want the most up-to-date technology. By definition, the
most up-to-date technology employs a minimum of people. A foreign investor
must tread cautiously in this paradoxical state of affairs. Unless foreign investors
are very skilled and sensitive, they easily can offend local cultural sensitivities.
They need to take into consideration ambivalent cultural attitudes toward technol-
ogy and change. Some cultures may not want change, and others are eager for tech-
nical development; more likely, most cultures hold both attitudes at once. If a
culture wants to change, to suggest something less than state-of-the-art technol-
ogy (that may employ more people) may be seen as an insult, implying that the
industrialized country does not want the developing country to modernize but just
wants it to continue old colonial and imperialistic practices. The suggestion may
have been made with goodwill, seeing the need for employment in the developing
country. Or the opposite may occur: The foreign investor may insist on doing “only
the best” for the poorer nation.
As these two examples illustrate, engineering, architecture, and medicine have
legal as well as cultural aspects that must be taken into account in international
negotiations and communication. But there are limits to cultural adaptation. For
example, when it comes to aircraft maintenance, objective engineering standards
are applied regardless of cultural attitudes. Furthermore, the safety of passengers
requires that all pilots speak the same language so they can communicate with
controllers at any airport.
 Legal and Governmental Considerations in Intercultural Business Communication 399

In Focus

An African country was training pilots for international flights. Before the pilots took the written test for the license,
they asked to get more time than the officially allotted time to complete the test, arguing that English was a foreign lan-
guage to them. The request was denied.
They were told that they would get more time only if the length of all the runways in the world were doubled first.
Because the language of aviation is English, the pilots would have to communicate in English, and once in the air, they
would have to act fast in an emergency.

In addition to their expectations of foreign investors and regulations for foreign

investments, countries have specific rules and regulations on reporting perfor-
mance, expenses, profit, depreciation, and other accounting information. The ba-
sic accounting concepts may be the same, but the way the statistics are collected,
compiled, and communicated may be different from country to country. An Italian
branch of a Japanese bank had to explain to headquarters the details of a credit
analysis performed on Italian businesses. In the process, the Italian branch had to
reclassify figures and explain why a certain ratio was good by Italian standards.
German companies, for example, are required to put pension obligations and other
social costs required by law under liabilities. This is different in the United States.
As a result, a businessperson from the United States may decide that a company
from Germany is not doing well enough to invest in because the ratio of assets and
liabilities does not lie within the range acceptable in the United States. In fact, the
German firm may be doing very well. When businesspeople from different cul-
tures communicate about profitability, assets, liabilities, and depreciation, they
need to understand the legal and regulatory environments in which financial state-
ments are prepared.
Accounting practices in the United States and Western Europe rely on detailed
records that are collected and entered regularly. The Securities and Exchange
Commission (SEC) in the United States requires comparative balance sheets and
income statements for all U.S. businesses and their subsidiaries. Companies are
audited on a regular basis, and penalties for violations are heavy. Ever since the
Depression, financial markets and communication relating to finances and invest-
ments in the United States have been regulated tightly. Investments are regulated
by strict disclosure rules about the source and use of funds.
The financial markets in the formerly communist countries are only beginning
to emerge. Rules and regulations are not very clear yet, and in many ways busi-
nesspeople do not totally understand the concepts of business finance. Since busi-
nesses in the past received their money from the government as it was available or
as companies needed it, and since they turned over all revenue from sales to the
government, the concept of the time value of money is underdeveloped. Accord-
ing to that concept, $1,000 today is worth more than $1,000 a year from now. If
the money is available today, it can be used and invested; it can earn a return. In
400 Chapter 10

the Soviet Union, businesses did not manage money and did not have to worry
about the cost of money. As a result, the entire area of cost accounting is underde-
veloped. The concept of profit as a legitimate goal of business is alien.
A businessperson who wants to invest in Russia will face great uncertainties in
the financial area not just because the Russian partner may not want to share in-
formation but also because the Russian partner may not understand the informa-
tion and does not know how to compile it. As a result, communication between a
Russian firm and a Western firm relating to financial matters will be difficult.
A foreign firm interested in investing in Russia will improve its chances of suc-
cess if it can communicate financial considerations clearly. That means the foreign
firm needs to:
• Understand the Russian environment and Russian attitudes toward finance and
investment.
• Explain Western financial concepts.
• Explain the importance of accurate and timely records.
• Evaluate Russian financial reporting on the basis of Russian accounting prac-
tices and compare the reporting to Western standards.

In Focus

Serendipity, a small firm from the United States doing business in Russia, needs regular information on the perfor-
mance of the Russian operation. The president has set the policies for reporting and discussed them with the Russian
managers. The Russian managers now must translate the policies and the goal of accurate business and financial re-
porting into concrete steps. They must see to it that the president of Serendipity in the United States is informed about
all events. The Russian managers also must see to it that information is prepared according to the government regu-
lations of the United States and Russia. The Russian managers translate the goals of accuracy, efficiency, and legal
compliance into specific reports and documents. The lower-level employees at Serendipity then prepare the actual re-
ports. The midlevel managers are the crucial link between the broad goals and the specific tasks.
In the case of Serendipity, the changing political and economic environment of Russia requires particularly effec-
tive communication. In the past, Russian firms did not prepare Western-style balance sheets and income statements.
The Russian managers of Serendipity did not have the background to supervise the preparation of those documents
and did not understand the need for that kind of information. The American president repeatedly requested the reports
by fax, but the reports were not sent because the Russian managers simply did not understand what he wanted and
why he needed the information.
The principles underlying business practices were so different that the Russian managers and the American pres-
ident had a very hard time communicating effectively. Arguably, they did not engage in a rich enough exchange of com-
munication to clarify ideas and discuss policies and procedures. The fax was not a rich enough channel; personal
discussions were necessary. That channel was difficult because of the cost of travel.
Also, the Russians did not understand the role, authority, and responsibilities of midlevel employees. They continued
to function as they had in the past. Information represented power and was to be hoarded rather than shared. The con-
cept of open communication channels was alien to them, but effective communication is based on open communication.
 Legal and Governmental Considerations in Intercultural Business Communication 401

Russian managers, to become effective communicators, will require more than an understanding of finance and
cost accounting; they will need to rethink the goal and purpose of the business organization and its employees and re-
think the role of communication. A U.S. manager may wonder about and even be shocked at the independence of the
Russian subsidiary and argue that his or her company would not tolerate such communication behavior. The reality is
different. The Russians even today seem to function on the assumption that “Russia is big, and the czar is far away.”
As a result, they tend to provide only the information they consider necessary.

Communication in the financial sector is influenced by cultural priorities.

Good financial communication is based on an evaluation of a culture’s laws,
regulations, and attitudes.

Summary In the course of doing business, international firms must be able to adapt to dif-
fering expectations, laws, and regulations. In particular, they need to consider:
• Communication and legal messages. Laws and legal interpretations are influ-
enced by culture. What is considered legal in one country therefore may be il-
legal in another.
• Specific legal systems. The most common legal systems are code law, Anglo-
American common law, and Islamic law. These systems vary in their approach
to, and judgment of, legal situations.
• Dispute settlement. Culture influences the way managers approach direct con-
frontation and arbitration, communication with agents, and trademarks and in-
tellectual property.
• Multinational enterprise and national interest. Nations are sovereign entities
and as such are intent on protecting their national interests.
• Legal issues in labor and management communication. Laws regulate employ-
ment communication, safety on the job, and access to career opportunities. This
has major implications for effective intercultural business communication.
• Legal considerations in marketing communication. Governments regulate ad-
vertising. International managers need to be aware of these regulations to avoid
inappropriate or illegal messages.
• Investment attitudes and the communication of financial information. At first
glance, finance appears to be culture-neutral; however, culture plays a major
role in people’s attitude toward risk management, investment strategies, and
evaluation of the financial soundness of a firm.

Notes 1. http://www.bisnis.doc.gov/bisnis/fcp1.htm. This site discusses the provisions

of the Foreign Corrupt Practices Act.
2. R. August, International Business Law (Englewood Cliffs, NJ: Prentice-Hall,
1993).
402 Chapter 10

3. Frigaliment Importing Co., Ltd. v. B.N.S. International Sales Corp., United

States District Court, S.D. New York, 1957.
4. Oliver Wendell Holmes, Jr., “The Path of the Law,” Collected Legal Papers
(New York, 1952), p. 178.
5. Walls v. Bailey, New York Reports, vol. 49 (Ct. of Appeals, 1872), pp. 464,
472–473.
6. Durk Liedtke, “Der Ebay Hammer,” Stern, May 28, 2003, pp. 38–52.
7. Iris Varner and Carson Varner, “Mitbestimmung,” Encyclopedia of Manage-
ment, 3rd ed. (Gale Research, 1999).
8. Iris Varner and Carson Varner, “Aufsichtsrat and Workers’ Councils,”
Encyclopedia of Management, 3rd ed. (Gale Research, 1999).
9. Electromation, Inc., 309 NLRB, no. 163 (December 16, 1992); E. I. du Pont
de Nemour & Co., 311 NLRB, no. 88 (May 28, 1993).
10. Geert Hofstede, Culture’s Consequences, 2nd ed. (Thousand Oaks, CA: Sage
Publications, 2001).
11. Geoffrey A. Fowler, “Chinese Censors of Internet Face ‘Hacktivists’ in US,”
The Wall Street Journal, February 13, 2006, p. A1.
12. Hofstede.
13. Bernard Lewis, What Went Wrong? (New York: Oxford University Press,
2002).
14. AME Info, Abu Dhabi, United Arab Emirates, February 24, 2003.
C H A P T E R E L E V E N

The Influence of
Business Structures
and Corporate Culture
on Intercultural
Business
Communication
Roberto Ramirez’s family has been farming in Brazil for several generations. About ten
years ago, the family decided to grow soybeans because the international demand for soy-
beans was increasing. In the beginning, the Ramirez family simply sold the beans to the
closest commercial buyer. They saw themselves as farmers rather than businesspeople.
Over the years, however, things began to change. Expenses for fertilizer and seed went up,
and prices were depressed because of oversupply worldwide. Roberto attended several
seminars on agricultural marketing and decided to try a new approach. The first step was
to grow food-grade soybeans. Rather than selling to the local commercial buyer, he con-
tacted Japanese firms directly to buy his soybeans. The Japanese were interested in the
high quality and were willing to pay a premium. The new outlet for the crops brought in
more cash but otherwise did not have a great effect on operations. Roberto had to deal with
shipping and some paperwork, but he had little regular contact with Japan.
He began to wonder what else he could do to promote his soybeans. After doing some
research, he decided to process the beans before selling them. He contacted Japanese
businesses to sell his product. Since he had exported his beans to Japan before, he thought
that he was familiar with the process; however, negotiations dragged on. He was confused;
in the beginning, the Japanese seemed very interested, but then things slowed down.
403
404 Chapter 11

He did not understand why. He had bought the roasting and packaging equipment and
hired people to meet production goals, but he was beginning to wonder when he would be
able to ship the first container.
Taste tests had indicated that the Japanese preferred a stronger roast. They also
wanted smaller packages; the one-pound package he had envisioned was too big for the
Japanese market. As the Japanese venture took more and more of his time, he decided that
he needed someone who could work closely with the Japanese, someone who could take
care of the day-to-day communication, the negotiation, and the import–export formalities.
As the Japanese market took off, Ramirez decided to enlarge operations and reorga-
nize the business. The one-person international operation had grown to a department of
three people. They had daily contact with Japan by fax and e-mail, and several times a year
someone would go to Japan to discuss issues personally. As a next step, Roberto was con-
templating developing his own distribution network in Japan and exploring other Asian
markets. He realized this move would require much more involvement in Japanese busi-
ness practices and knowledge of international business in general, but he thought the
chances for success were good. Several times over the years he had attended seminars on
Japanese business practices, but he realized that everyone involved in the international
operations could benefit from similar training.
Roberto was following international markets closely to find new opportunities. Since
Brazil grew soybeans that had not been genetically modified, European countries were par-
ticularly interested. Talks with a European food company moved along rapidly, and Ramirez
had to decide how to integrate a European venture into his business. The organizational
structure no longer accommodated his growing international ventures, and he realized the
structure had to change.
As he was getting ready for the next phase, he started thinking about how much his fam-
ily farming business had changed.

So far in this book, we have examined the relationship between cultural orienta-
tions and business communication. We have looked at values and their influence
on the framing and organization of messages, the negotiation process, and the legal
framework. We have seen that successful intercultural business communication is
based on understanding one’s own culture and the culture of the partner. But the
process does not stop there. Intercultural business communication also must take
into consideration the structure of business organizations. In this chapter, we will
explore the implications of a business’s structure on its intercultural business com-
munication dynamics.
As the opening case for this chapter illustrates, the emerging need for intercul-
tural understanding influences the organizational structure of a firm. Similarly, the
organizational structure of a firm influences the degree of intercultural under-
standing necessary for successful business dealings. The type of product a com-
pany manufactures and the life-cycle stage of the product also have an impact on
the communication process and intercultural communication needs. As we will see
in this chapter, some structures encourage greater intercultural understanding than
others. As the businesses expand internationally, their structures and their com-
munication dynamics change.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 405

Lane et al. discuss how attitudes toward intercultural business communication

have changed over time.1 Through the middle of the 20th century, most companies op-
erated in a domestic environment. As a result, they did not need to develop intercul-
tural sensitivities or understanding on a large scale. After World War II, many
industrialized countries had to rebuild their industries, and U.S. firms dominated the
market. As other countries recovered, international competition heated up and U.S.
suppliers lost much of their previous power. Companies from a variety of countries
looked to foreign markets to expand and grow. To be successful in these new markets
required a marketing orientation, meaning that firms had to understand what products
people in these new markets wanted and would buy. The result was a focus on cul-
tural orientation, both similarities and differences. Managers realized they had to un-
derstand people in many different markets and cultures and modify their approach
accordingly. They saw that what worked at home did not necessarily work abroad.
Lane and his co-authors argue that this stage was followed by a third phase in
the 1980s.2 By that time, many researchers and businesspeople talked about the
convergence of markets. They argued that with mass production cultural differ-
ences would soon disappear. There would no longer be a need for cultural sensi-
tivity. The only thing that would matter was price. In this environment, cultural
orientation would no longer be necessary. Culture was perceived to be a thing of
the past, and companies argued that good managers were good managers regard-
less of the specific environment. From then on, business would be conducted on a
scientific management basis. However, advancing technology and deep-seated
cultural orientations led to a fourth phase. At the center of this phase were quality
and customization. Technology makes it possible that Jim in South Africa can “de-
sign” his car on the Internet. He does not have to take what is on the car lot at the
local dealer. He has choices. The push for the “global” citizen and the one global
market also revitalized local and regional preferences. Niche markets based on
age, geography, profession, and life style became the focus. Once more, culture
became a major player that influenced the success or failure of a business.
The changes in business developments and dynamics went hand in hand with a
changing view of the relevance and importance of culture. Intercultural business
communication acted like a wave. At times it was big and considered important,
ebbing only when the environment changed. Then it would rise again, becoming a
powerful force once more. Today, we have combination of standardization and cus-
tomization of both business products and business practices. Some high-tech
products, such as chips and computers have similar characteristics around the
globe. At the same time, we can also see an attempt to revitalize regional markets.
Businesspeople today need to be global and local at the same time, and the local
appeal requires cultural understanding.

Corporate Culture and Intercultural Communication

Different cultures prefer different business structures. As Chapter 10 showed, in
the United States, for example, there is a tendency to incorporate even small firms
to minimize risk. This practice is typical in a low-context culture that attempts to
406 Chapter 11

legislate risk and liability. In a culture such as India, which believes people are not
necessarily masters of their own destiny and that fate cannot be avoided, busi-
nesspeople do not believe that one can escape fate by creating a corporation.
At the same time, large corporations around the world, regardless of national
origin, have found that certain structures work better for multinational business
than others do.
However, the apparent structural similarities may cover up different underlying
cultural approaches to doing business. As Adler points out:
Organizations worldwide are growing more similar, while the behavior of people
within organizations is maintaining its cultural uniqueness. So organizations in
Canada and Germany may look the same from the outside, but Canadians and
Germans behave differently within them.3

Organizational behavior includes communication. If people behave differently

within these similar structures, they communicate differently. Structures may con-
verge, but cultures keep much of their underlying uniqueness. But even within
countries, organizations are different. Companies in a culture may have similar
structures, but they have their own corporate cultures. Intercultural business com-
munication may mean the sending and receiving of messages from corporate cul-
ture to corporate culture.
Organizations create culture; to be renewed and restructured, they alter it. Culture
explains the pattern of assumptions and behavior formulated by human systems in
response to their environment, whether it is a nation with its macroculture, a local
community with its needs and customs, a market with its consumers and suppliers,
or an industry with its colleagues and competitors.4

Like national cultures, organizational cultures establish rules about how to be-
have, what attitudes to adopt, and how to rank what is significant. Organizations
have their own heroes and symbols, their own vocabulary, and their own histories
of events that contain the values, attitudes, beliefs, and behaviors they wish to have
employees learn. Rituals and myths also play a role in organizational culture. As
defined by author Daniel Carbaugh, an organizational culture is:
. . . a shared system of symbols and meanings, performed in speech, that constitutes
and reveals a sense of work life; it is a particular way of speaking and meaning, a
way of sense-making, that recurs in the oral activities surrounding common tasks.5

Even though this definition refers to oral communication only, the same holds
true for written communication and nonverbal communication activities.
Each employee’s experience is run through the operating environment of the
organization. Things that don’t fit don’t get processed; for the purposes of the
organization, they don’t exist. Employees learn correct etiquette for the organi-
zation and the customs that indicate relative significance. In other words, they
learn the specific priorities of the organization. Every time an employee joins a
new organization, he or she has to go through a socialization process that is
like growing up in a society. Each employee has to learn all the meanings and
behaviors—what is a good achievement, what isn’t; whom to address a certain way
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 407

and when; what to expect in a hundred different work experiences—in short, the
corporate culture.
An organizational culture is a particular way of creating meaning. Any work-
place is its own little world with its own inner structure. It is peopled by its own
cast of characters. It employs a set of words not known outside the organization—
its jargon. It has rules and follows traditional observances. For example, Motorola
has a unique corporate culture, and the company takes great care to teach that cul-
ture to new employees. The corporate culture helps everyone from Jim Hyatt in
New Zealand to Masataka Honda in Japan. The corporate culture acts as a glue to
connect employees from many different cultures.
Think of the company where you work. What happens in your organization
when someone retires? Who is the person to whom you show most respect? Do
you and your co-workers have to observe any particular customs about lunch
times? Coffee breaks? Is there a department or person everyone has to treat with
special care because of his or her reputation as a tyrant? Who are the heroes in your
organization’s history? Now think of what happens when someone joins the or-
ganization who is unfamiliar with these things. It is important for that individual
to learn the culture as soon as possible, and it is important for the culture because
members who do not share the culture threaten it. What are the stories people tell
the new employee? Who is allowed to tell those stories? Are the storytellers only
those who were original participants in the event being retold? What values of the
corporation do those stories transmit? How are these stories connected to the pri-
orities and values of the culture in which the company is embedded?

In Focus

Maria Sanchez and Karen Bone work for Canopy Products in Sydney, Australia. They have different ethnic back-
grounds and very different lifestyles. Maria is married. Every morning she takes her two children to day care. Her
husband picks them up in the evening. Holidays are family affairs, and frequently Maria’s family gets together with
cousins, aunts, and uncles. Karen is single. During vacations she likes to relax and pamper herself. Her parents live in
a different state, and she sees them about once a year.
When Maria and Karen come to work in the morning, they enter the company as members with their specific back-
grounds. As they go through the lobby, they walk past the bulletin boards for the various sports teams. They see how
the receptionist prepares a rose for everyone whose birthday occurs on that day. They listen to the daily announce-
ments about company activities. Everyone greets everyone with a friendly hello. By the time Maria and Karen step out
of the elevator on their respective floors, they have become part of the corporate family. They have not given up their
individuality, but the common company experiences tie them together.

At the heart of each organization are the goals and objectives defined by the
organization, which enable the organization to focus on human activity; everyone
is working with shared aims. The cultural norms enable the organization to man-
age the flow of information, people, events, and energies that feed it.
408 Chapter 11

EXHIBIT 11.1 ral culture

The Cultural Gene
l business cu
Environments of nera l tu
Ge re
Businesspeople n dustry cultur
I e
orate cul
orp t

ure
Individual

The organizational culture also generates the image of the organization to the
outside. It determines how the corporation presents itself. The chief executive
officer (CEO) of a corporation identifies its goals in public speeches for cus-
tomers, shareholders, joint ventures, and the government.
Organizational cultures draw from the culture of their particular industry. The
cultures of a particular industry draw from the general business culture for their
norms of behavior, values, attitudes, beliefs, and symbols. The business culture in
turn draws from the larger general culture of a country.6 As Exhibit 11.1 illustrates,
businesspeople are part of all of these cultures and need to communicate with all
of them. That means you may be involved in intercultural communication without
ever leaving the country.
A firm that sells strictly in a homogeneous domestic market has less of a need
to be aware of foreign cultures and languages.7 However, given growing diversity
in the domestic arena that may change considerably. For example, as the number
of people with Latin American, Middle Eastern, Korean, Indian, Vietnamese, and
African backgrounds in the United States increases and as their purchasing power
increases, more and more companies consider it good business practice to cater to
the values and wants of those groups. Twenty years ago American businesses
mostly catered to white consumers of European ancestry. Today, that is changing.
Catering to different ethnic groups has become big business. Advertisements for
food, cosmetics, and fashions zero in on well-defined groups, and technology has
made niche marketing a sophisticated communication tool.
The same is true for Europe. Germany, for example, has a growing Turkish
population; France has many immigrants from Algeria. The Turkish and Algerian
immigrants have had a tremendous influence on the way German and French
businesses look at their workers and customers. The government of the Netherlands
has considered asking immigrants to pass a culture examination before they can
be allowed to come to Holland. Australia has seen growing immigration from
China, India, and South Africa. Many firms have developed handbooks and
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 409

instructions in the various languages of the workers. Managers who once were
used to almost all workers being Christian have had to adapt work rules to em-
ployees with different religious backgrounds. For example, Muslims have re-
quested time for prayers and food in the company cafeteria that meets Islamic
dietary restrictions. Even a domestic firm must be able to communicate with a
workforce that is increasingly diverse and have some appreciation for different
cultural values.

Stages in Internationalization
In the opening case of this chapter, we looked at the impact of a changing business
environment on the need for intercultural competency, and we said that as busi-
nesses change and expand internationally, their structures change to meet the
growing challenges. In this part of the chapter, we will examine intercultural busi-
ness communication needs in three major forms of international business in-
volvement: import–export firms, multinational firms, and global firms. One form
is not better than another; organizational structures are tools. Businesses change
their structures if the environment changes and if the old structures do not meet
their needs any longer. In reality, the lines are often fuzzy. Most firms start out as
domestic firms. That is true for businesses all over the world. The exception is a
specialized import–export business that starts with the specific goal of interna-
tional business. Most major multinational firms started as domestic firms. Exam-
ples are McDonald’s; Ciba Geigy, the Swiss chemical corporation; BASF
(Badische Anelin und Soda Fabriken), a German chemical firm; Archer Daniels
Midland (ADM), a food company in the Midwest in the United States; and Mit-
subishi Motors from Japan.
As these companies entered the international arena, their structures changed
and their communication changed. They had to develop new communication
strategies both for internal and for external communication. As we will see, the
import–export stage is often a first step in the internationalization of a business.
In our discussion, we distinguish between a multinational firm and a global
firm. A multinational firm thinks of itself as a firm that has a nationality; it is a
French, Japanese, Chinese, American, or Mexican firm that does business in many
nations. Most international firms are multinational corporations (MNCs).
For example, the car maker BMW is a German firm that does some manufac-
turing in foreign countries. Its cars are sold worldwide. In spite of its international
presence, BMW takes great care to ensure that consumers think of it as a German
firm. The German connection is important because customers do not want to buy
a U.S., Asian, or Latin BMW; no matter where the car is produced, customers want
to purchase the German image of reliability, quality, and luxury. The same is true
for Swiss watches. A consumer who is willing to spend major money on a Swiss
watch wants to be sure that the watch carries the label Swiss.
A global firm looks at its business as one unit that spans the globe. A true
global firm does not think in terms of domestic and international business; its
arena is the globe.8 Very few firms have reached that stage, and the organization
410 Chapter 11

of the world into nation states can pose difficulties in the globalization process of
companies. Coca-Cola and Microsoft are examples of global firms.
The globalization of a firm is a process that can take a long time. The particu-
lar form of development depends on the type of firm, the type of product, the ori-
entation of management, and the political and competitive environments.
International expansion goes hand in hand with the need to deal with different
cultures in all aspects of the business. The question that managers must ask is when
(at what stage) and to what extent the international orientation becomes critical
and what the communication needs are at each stage.
You may start your career in a domestic company; you may not be particularly
interested in doing international business. Yet over time both the firm and you may
change. You may see opportunities for selling or even manufacturing your product
abroad.
Let us now look at the various stages of international development and the
changing communication needs. The stages may overlap. For example, Eike Print-
ing Inc. from Sweden exports printing equipment to Poland, Turkey, and the Baltic
countries. In Germany, however, Eike Printing owns production facilities. In
Japan, the firm has a joint venture with a Japanese company that produces print-
ing machines for the Asian market.

In Focus

A small Canadian firm is producing scissors and clippers for cutting hair. The founder and owner, Brian Johnson, had
no intention of ever going international, but somehow the opportunity to export came up. First, Brian started exporting
the product without any modifications. After some time, he realized that the potential for success would be much greater
if he studied the foreign markets in more detail. He also realized that the ability to speak some Spanish would be a great
asset when talking to his customers in Latin America. In addition, he had to look at cultural attitudes toward cutting hair.
In Canada, the product sold to families that wanted to save money by cutting hair at home. In Latin America, people
do not cut hair at home. After some research and visits to his Latin American market, Brian started selling the product to
barbers and hair salons. In the process, more people in his firm in Canada needed to learn about the Latin market and the
distribution systems within it. He also found that the American “do-it-yourself” attitude had no following in Latin America.
His company’s modification to an international business changed communication in the firm. Brian now has to have
people with international expertise and awareness of cultural differences in order to communicate successfully with
the new market.

The Import–Export Stage

Reasons for Exporting
The first stages of international involvement do not require much international
adaptation and involvement in other cultures. For example, most firms start their
international experience through market development, by exporting through an
import–export firm. In that situation, they are not involved directly with foreign
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 411

operations. Frequently companies sell abroad because someone abroad wants or

needs the product. The attitude tends to be laissez-faire: “If it works, fine—if it
does not work, not much is lost.” As sales grow, the firm may adapt the product to
some extent. But if the foreign market really wants and needs the product, the
firm’s adaptation in terms of culture, language, and product may be minimal.
The firm may want to explore new markets either because the domestic market
is saturated or because the firm sees growth potential in other markets and oppor-
tunities to expand production capacities. In the beginning exporting stage, the firm
typically looks at itself as a domestic firm that also sells some of its production
overseas. Some firms may look at exporting as the first step toward more interna-
tional involvement; others may have no intention of ever going beyond exporting.
In this case, the firm will not go through any major changes in its communication.
Roberto Ramirez, the soybean producer in the opening case in this chapter, moves
easily from a domestic stage to an export stage.
As mentioned, the typical beginning exporting firm exports its products “as is.” The
firm will make no major changes; perhaps there will be some surface adaptations, but
it is not going to spend a lot of money on exporting. An advanced export firm, in con-
trast, will adapt its products to specific markets and consider the foreign market an in-
tegral part of its business. Export firms can be at any point on the continuum.
The Internet and e-commerce have provided international markets to small
companies that traditionally might not have thought of exporting at all. As soon as
a business has a Web page, people around the world can view its product line and
services. This means that a company can become involved in international busi-
ness without making a conscious decision to sell internationally. The Internet
opens the door for everyone, but it also exposes every business with a Web page
to potential blunders and missteps. Most e-business is B2B, or businesses selling
to other businesses. Whether the customers are businesses or end users, online
communication from a Web site has to be constructed with careful attention to cul-
tural priorities to succeed in international markets.
The following example illustrates how a small company is getting involved in
exporting:

In Focus

Central Illinois in the United States is known for growing corn (maize in British English) and soybeans. The area has very
fertile soils and a climate that is conducive to growing those two crops. With modern soil sciences and fertilizers, produc-
tion has grown tremendously over the past two decades, and farmers have been faced with the issue of how to get a good
price in years of high yields. They have exported part of the production for a long time. The Mississippi River made shipping
to seaports economical, and as China, India, and other developing countries grew economically and became more pros-
perous, they were buying more grain. Even though the export market was good, farmers began to wonder whether they
could increase their profits by adding value to the commodity before exporting the grain. As a result, farmers started to ex-
port not just grain, but specialty grains as well. Whenever possible, they will export soymeal, and premium food-grade soy-
beans rather than just generic soybeans.
412 Chapter 11

In another development, corn is increasingly used for alternative fuel produc-

tion, such as ethanol. A byproduct of this ethanol production is dried distillers
grains or DDGs. DDGs can be molded into pallets, highway signs, road surfaces,
and packaging materials. DDGs can also be used as feed in aquafarming. Vietnam,
Thailand, and Malaysia are all interested in buying raw DDGs for animal feed or
processed DDGs. Clearly, this type of exporting is different from exporting the
basic commodity. In the process, the exporter has to learn more about the coun-
tries they are exporting to. They will need to know about what the specific needs
are and develop a detailed marketing strategy.
As we will see in the next section, the change in the exporting strategy has im-
plications for communication practices.

Communication in the Import–Export Environment

If a product is exported without adaptations and is in demand, the need for adap-
tations in communication is minimal. A small business may go through an
import–export firm or hire an agent. The managers of the firm may have little or
no contact with the foreign market and may look at exporting as maximizing pro-
duction capacities or as a market development strategy for expanding the market
for the product. If the firm directly hires a foreign agent to represent it and dis-
tribute its products in foreign markets, it must at least be familiar with some of the
legal issues involved in hiring, maintaining, and firing agents, but direct contact
with the foreign market is not extensive (also see Chapter 10).
A beginning exporting firm will hire translators, go to trade fairs and shows, and
advertise its products without adaptation to foreign cultures. The firm will be more
interested in the technical aspects of exporting, such as letters of credit and ship-
ping methods, than in cultural adaptations to the export country. Communication
with the foreign market is filtered through the interpreter or agent. As a company
gets more involved in exporting, managers may also attend special export seminars.
The level of adaptation also depends on the product. Coca-Cola often is cited
as proof that a product can be successfully marketed globally. Indeed, Coca-Cola
has a standardized product—all the syrup for Coke is produced in the United
States and shipped all over the world; however, the level of sweetness of the syrup
is adapted to specific cultural preferences. In addition, it is this particular adapted
product that people in a specific market want. Part of the appeal of Coke is that it
is a global product; it looks the same. People don’t think in terms of American
Coke, German Coke, Indian Coke, or Mexican Coke—they think of Coke, even
when it tastes different from country to country!
What works for Coke may not work for other products and firms. Even though
the product is Coke, the Coca-Cola Company must adapt its communication
style and techniques to the various cultures and communication styles of its
bottlers around the world. And even though the product is the same everywhere,
the packaging—the bottle sizes and shapes, for example—may vary. In its opera-
tions and communication within the worldwide operations, Coca-Cola must adapt
to its many varied audiences and take into consideration the expectations and con-
ventions of many cultures.
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 413

Similarly, many software programs make only minor adaptations. People the
world over use Excel, Word, and PowerPoint. To make this work, Microsoft has
added a feature that allows users to select the language of instruction. For exam-
ple, a user in Italy can choose whether she would like to have the instructions in
Italian, British English, American English, German, or French; the software re-
mains the same. Yet, the language option represents a major adaptation in the com-
munication strategy.
Home appliances cannot use the same strategy Coke is using. When it comes
to home appliances, people want a product that corresponds to their values, needs,
and environment. When Whirlpool did consumer research in France, the company
found that buyers wanted a microwave oven that also would crisp food the way a
conventional oven does. They developed one and enjoyed great success in Europe.
Washing machines, one can argue, should sell anywhere because they simplify
life for everyone, but that does not mean that the same machine will be successful
everywhere. Germans want front loaders that heat the water in the washing machine
all the way to the boiling point. All Germans “know” that top loaders don’t get laun-
dry clean. They also “know” that hot water running into the machine will burn the
dirt right into the fabric. The water needs to be heated gradually in the machine to
dissolve the dirt. A hookup for running hot water is not necessary. The British, in
comparison, prefer top-loading washing machines and extremely hot water. The
French use a mixture. In remote areas of Thailand, the needs may be quite different.
Electricity may not be readily available, and running water may be rare. As a result,
the typical American, British, or German washing machine is not feasible even if the
Thai culture were not presenting any hurdles. In order to communicate successfully
with potential customers and distributors, managers need to know about these pri-
orities, cultural sensitivities, and resources required to run equipment.
In addition, size and price are factors. If the average wage is $350 per year, very
few people will be able to spend $500 on a washing machine or $1,500 on the big
refrigerators typical in the United States. A Japanese family that has a small apart-
ment of about 500 square feet (50 m2) in Tokyo may have the money but will not
want to buy big appliances from the United States. There simply is not enough room
for them. Space is too valuable to clutter up with huge appliances. Culturally based
shopping preferences also determine refrigerator choices; in cultures where people
value fresh food, and shop every day, large refrigerators are pointless.
Even if the company has excess capacity, and even if the product would make
life easier in another culture, the product may not sell unless the firm is willing to
research the market in depth, a process that requires a lot of intercultural commu-
nication and understanding. A firm needs to research consumer attitudes and pref-
erences, government regulations, and the purchasing power of the people. All this
information must be collected, tabulated, evaluated, organized, and then communi-
cated. Only after the research has been completed can the firm work on product
adaptation and marketing communication (including advertising). Many firms that
see themselves as mostly domestic firms are not willing to expend the energy and
money to do that. They may think that adaptation is not cost-effective and that the
foreign market is not large enough to justify the effort involved in market research.
414 Chapter 11

U.S. manufacturers of large appliances typically face that problem. The stan-
dard kitchen appliances are big. They fit into American homes but are too large for
most European and Japanese homes. In addition, U.S. appliances are not consid-
ered responsibly “green,” and are viewed as wasteful of energy and space. Yet man-
ufacturers frequently argue that the number of consumers who would be willing to
buy an adapted product is not large enough to justify the cost of consumer attitude
surveys and product adaptation. In Spanish, French, and German stores, one can
see samples of refrigerators, dishwashers, and stoves from the United States, but
they are considered an oddity and a curiosity. Since they are also very expensive,
very few people consider buying them. The Europeans and the Japanese, in con-
trast, have been willing to adapt to the needs of smaller markets, partly because
their own domestic markets are comparatively small.
This example shows that to export successfully, a company must adapt its mar-
keting and product modification strategies to foreign conditions and be aware of
consumers’ needs and wants. As soon as a decision is made to adapt a product to
foreign markets, the need for intercultural communication increases. The company
must research the market, the competition, and the market potential. This is a com-
plex communication task. Let us assume you are assigned to research the poten-
tial market for motorcycles in Spain. You need to find out the Spanish attitude
toward motorcycles. You can interview people; you can design questionnaires.
This sounds easy enough, but you must find out whether in Spain people are will-
ing to answer questionnaires and are willing to be interviewed. You must determine
their attitudes, preferences, and needs and wants. All these areas are influenced by
cultural priorities. What may start out as a simple product adaptation or exporting
task may grow into an elaborate intercultural communication task (see also
Chapter 8 on gathering information).
If international sales increase, a firm at some point may establish an export de-
partment to handle the demand and distribution. Frequently, the export function
initially is tacked onto the sales and/or marketing function (see Exhibit 11.2).

EXHIBIT 11.2
President
Export Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

Sales Exporting
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 415

The more the firm gets involved, the greater the need will be to communicate
directly with people with different cultural backgrounds. Rather than turning the
product over for sale to an agent, the firm will have to have some direct contact
with the foreign market. The extent will vary, however, and much will depend on
whether the firm sees international expansion as the wave of the future or an an-
cillary to domestic operations.

In Focus

Yoko Sony is looking for new pots for her new kitchen. She would like something stylish and easy to clean. She has col-
lected several brochures and has been to a number of department stores. Almost all pots are sold in sets of three or
five. She likes pots produced by GE, a big American multinational firm; the quality is high, and she likes the color and
the form, but the pots look rather big. Even though her new kitchen is larger than the old one, the stove is the same size,
and she realizes she won’t be able to put four GE pots on the stove at the same time. Ultimately, Yoko purchases a set
of five pots from France. They cost a bit more than the GE pots and she doesn’t like them as much, but she knows they
will fit on her stove.

The need of a firm to be aware of intercultural communication practices and

conventions depends on the extent of the international involvement of the firm and
the cultural diversity within it. The needs of a firm for intercultural communica-
tion skills grow with the increasing globalization of the firm.

The Multinational Corporation

Some multinational firms have national subsidiaries; others have international
divisions at headquarters. Each type has its own internal and external communi-
cation dynamics.

The National Subsidiary

The Structure of a National Subsidiary Organization
In the national subsidiary structure, a multinational firm has subsidiaries in var-
ious countries (see Exhibit 11.3). Those subsidiaries report directly to top man-
agement at headquarters without going through regional headquarters or an
international division at headquarters. For example, Jesse Hurtado, the president
of the subsidiary in Mexico, will direct any concerns or questions to top
management in Oslo, Norway. He has access to senior management there and
knows he will be heard.
The organization into national subsidiaries takes into consideration the specific
needs of the various subsidiaries. It gives importance to local voices and, at least
416 Chapter 11

EXHIBIT 11.3
President
National Subsidiary
Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

National
Japan Germany United States Mexico
Subsidiaries

in theory, fosters adaptation to local needs. The top people at the subsidiary can be
either home-country employees or host-country employees. If headquarters sends
home-country employees, it is in the interest of headquarters to keep those
employees at the foreign post for several years to ensure continuation of commu-
nication and policy implementation. The successful expatriate typically is in the
fourth stage of the model for culture shock, the integration stage (see also Chapter 1).
The expatriate is well adjusted and can relate to the concerns of the host-country
employees but also understands the concerns of the home country. The expatriate,
who at this stage often speaks at least some of the local language, is an effective
communicator and negotiator between the two cultures. The foreign subsidiary
structure is frequently characterized by “career expatriates.” These expatriates will
move from one international assignment to the next without coming back to head-
quarters. If host country nationals are in the leading positions, in all likelihood
they will remain in the country of the subsidiary. Their chances of being promoted
to leading positions at headquarters are slim. The argument is that they understand
the local culture and can communicate effectively in that environment. As with the
career expatriates, their value lies in facilitating communication between home-
country and host-country cultures.

Communication in a National Subsidiary Organization

The advantage of the subsidiary system is that the managers of the subsidiaries
have direct access to top managers at headquarters and don’t have to go through
several layers of management and the accompanying bureaucracy. The difficulty
is that the structure can lead to an overload at top management. If a firm has many
foreign subsidiaries, communication between headquarters and subsidiaries be-
comes time-consuming and it may be difficult to strike a balance between the
needs of foreign subsidiaries and concerns at headquarters. Thus, managers at the
subsidiary may have to reconcile two options: follow directions from headquarters
that may not be appropriate in the host culture or run the subsidiary as an inde-
pendent unit and lose the synergy a major corporation can provide.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 417

Top management is responsible for directing the concerns of the international

subsidiaries to the appropriate departments or sections at headquarters. If man-
agers are overloaded or do not care about the international operations, they can
block international involvement and create a bottleneck in international commu-
nication. Furthermore, the structure limits communication between subsidiaries.
Communication is centralized, with headquarters functioning as the hub of all ac-
tivity. The subsidiaries function more as autonomous entities that are not effec-
tively linked. In large firms, this structure may become dysfunctional because of
the lack of integration of all the entities into one unit. Communication that con-
centrates on headquarters and subsidiary A, headquarters and subsidiary B, and so
on, does not encourage the development of multiple networks and linkages. In the
extreme case, the various departments in a company operate as independent units
rather than effective teams that work toward the same goals. In Chapter 12, we will
discuss the dynamics of diverse teams and how effective management of the
intercultural communication process within, and between, diverse teams leads to
better output.

In Focus

Susan Carmichael, vice president for finance, has been at RazzleDazzle Luxuries for two months. Before that she
always worked in a predominantly domestic environment. As her administrative assistant, Jack Branch, brings in the
latest financial analysis figures, the phone rings, and Karl Pracht from Germany is on the line wanting some data about
the planned expansion. Francesco Lurati left a message earlier about the financial planning meeting next month. He
needs to know what information to prepare. Akihito Koga from Japan is worried about the repatriation of profits from
the Japanese subsidiary to headquarters in the United Kingdom. She has heard about his concern before but does not
understand all the details. Susan is overwhelmed. When will she ever get to her work?
She is contemplating telling the people in the subsidiaries to communicate with her administrative assistant who
then can filter what Susan needs to know, but Susan also realizes that she has to stay in the loop because she will
be responsible for what is going on in the financial area. Still, there must be a better way. Perhaps the technician
could develop and regularly update a Web site or an electronic bulletin board that would allow for the posting of
common questions. That might help with some of the routine communication, but of course they all claim that their
problems are unique and need instant attention. Regular videoconferencing might be a useful tool to improve the
flow of information; however, the time differences of the various location complicate videoconferencing and con-
ference calls.
People in the field want answers, and Susan has to find a way to get them the answers efficiently.

The International Division

As international operations expand and as the need for effective international com-
munication grows, MNCs typically organize their international activities into an
international division.
418 Chapter 11

The Structure of an International Division

An organization with a domestic and an international division looks very efficient
(see Exhibit 11.4). On the surface the international division is at the same level as
the domestic division. It seems that international operations are considered as im-
portant as domestic operations; however, international is separate, and often it is
not very well integrated into the rest of the firm. In many firms, the international
division is in a different part of the building; sometimes it may even be in an en-
tirely different location. Even though with modern communication systems such
as fax, e-mail, phone, instant messaging, and video conferencing, the actual phys-
ical location may not be significant, the physical distance can create a mental dis-
tance. Frequently international divisions in a multinational firm are organized by
product line or geographic location.
What are the results of this international division organization? This situation
easily leads to a duplication of efforts. For example, the company may have one
research and development (R&D) department as Exhibit 11.4 indicates, but some-
times the domestic and international divisions have their own R&D. The domestic
and international division also tend to have their own advertising departments. Ide-
ally, the domestic and international divisions work together, but in many cases they
don’t. In many cases, the domestic and international divisions compete for scarce
resources, and each is more intent on expanding its own power than on maximiz-
ing the return and efficiency of the whole.
Trust can become a major issue in that environment. In cultures in which trust
is built slowly over a long period, and one does business with people one trusts,
the competition between the domestic and international divisions may be particu-
larly destructive of the climate of the firm.
In many cases, the domestic division sees the international division as a drain on
resources and may argue, “We would do better domestically if we concentrated on
that area rather than running all over the globe.” Domestic problems may be attrib-
uted to international involvement. The case about Lincoln Electric in Chapter 1
illustrates the way costly international undertakings can threaten workers at home.

EXHIBIT 11.4
President
International
Division Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

Domestic International
Division Division
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 419

However, the international division also may be seen as a cash cow whose prof-
its can and should be used to improve domestic operations. Profits from interna-
tional operations often are considered the property of the domestic market. “After
all,” according to this viewpoint, “international operations are there to support
domestic operations, the real concern of the firm, even though the best expansion
opportunities may be abroad.” This issue surfaces typically in the area of profit
repatriation (that is, bringing profits from sales back to the country in which the
head office is located). The issue is complex because it also involves transfer pric-
ing and fair prices for transfers between different parts of the company.

Communication in an International Division Organization

The official line of communication goes from the field through the international
division to the appropriate areas at headquarters and back. From an operational
viewpoint the channel makes sense; communication seems to be efficient because
all international communication goes through the international division. However,
that channel may be redundant if the person in the field knows the person at cor-
porate who has the answer or is needed to solve a problem.

In Focus

A Japanese subsidiary of an American firm had had another record year. Overall, international revenue had almost
doubled over the last three years. The Japanese subsidiary wanted to use the profits for extended R&D activities in its
markets. It also wanted to use its excellent performance to improve its standing and prestige in the Japanese business
community in which it operated. The subsidiary believed headquarters should consider the effects of repatriation of
profits on morale in the subsidiary.
Headquarters and the domestic division saw the picture quite differently. The Japanese subsidiary was expected
to repatriate most of its profits to the headquarters in Chicago, where the money would be used to support expansion
of the U.S. domestic division. This was to happen through transfer of services from headquarters to the Japanese sub-
sidiary. For example, headquarters can send someone to provide training on the corporate requirements for financial
reporting, and headquarters charges the subsidiary for those services. The subsidiary then pays a transfer price set
by headquarters for this transfer of services. The transfer price would be adjusted so that the book profits of the sub-
sidiary would look much lower than they actually were. The Japanese subsidiary objected in vain, arguing that the
weaker performance would weaken its reputation and its ability to raise money for loans in the Japanese banking com-
munity and that the firm would not be as respected in the business community.
This situation illustrates several intercultural communication issues. Headquarters, dominated by managers with
mostly domestic backgrounds, used a very patronizing tone: “We know what’s best for you and the firm.” Headquar-
ters also did not recognize the role profits played in the prestige the subsidiary would gain in its Japanese context. The
Japanese subsidiary was not particularly willing to accept a merely supportive role. Managers at the subsidiary had
a tendency to look at themselves as an independent unit that did everything better than headquarters did. Rather than
pulling in the same direction, the domestic and international divisions tended to try to outmaneuver each other.

This problem has not changed; in fact, with faster and better communications
technology, it may have gotten worse. With direct and immediate access to anyone
at headquarters or anywhere else in the organization, the temptation to jump
420 Chapter 11

channels is great. Why should Pierre from the subsidiary in Seoul waste time con-
tacting the international division if he knows that the manager in Hong Kong can
supply him with the answer in five minutes? One could argue that Pierre should at
least inform people at the international division. If Pierre writes an e-mail, he
could easily copy other people, but he also needs to decide on who actually should
be copied and has a need for the information. If he telephones Hong Kong, he may
forget to inform the international division or not consider it important.

Who Communicates with Whom

At a very practical level, there is often confusion about who at headquarters should
be contacted outside the international division. People in the subsidiary typically
know people in the international division but very few people beyond that. They
rely on the international division to take care of them. People in the field can send
one memo and expect that people in the international division will talk to all the
people who need information or can provide information. Headquarters is far
away, and so it is tempting to let headquarters take care of any problems.
The feeling of “us versus them” that is typical in the international division
organization can be very destructive to the communication climate. Domestic may
be condescending and not inform the international division or subsidiaries of new
developments. In contrast, in a successful international division the feeling of
superiority over the domestic division may create a dysfunctional communication
climate. Today, an increasing percentage of the revenues of major companies in
many countries comes from international activities. The rivalry and competition
over who is best can lead to communication problems and a waste of resources.
One group may withhold information from another and endanger the profitability
of the whole for the benefit of a subgroup.

Language and Staffing Issues

Language ability is another communication issue. Since international involve-
ment is restricted to the international division, most firms do not see the need for
a broad international background among employees outside the international
division. Even in the international division, the level of intercultural awareness
can be low.
The attitude toward intercultural understanding and language competency (also
see Chapter 2) is connected to the type of staffing the company practices. Staffing
directly affects intercultural communication effectiveness because staffing influ-
ences communication networks. A company that wants to improve its intercultural
communication should reexamine its staffing patterns and practices.
Firms that have international divisions tend to practice a mixture of ethnocen-
tric staffing and polycentric staffing.9 In ethnocentric staffing, the management in
the host country comes from the home-office country. The intercultural commu-
nication interface takes place at the subsidiary. As a result, communication has
been cleaned up by the time it reaches headquarters, and headquarters may not be
directly involved in, or even aware of, cultural and linguistic problems in the field.
It is the people at the front who have to cope with intercultural communication and
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 421

language problems. The success of ethnocentric staffing relies on the linguistic

and cultural ability of the expatriates.
Headquarters may be interested in having a well-oiled machine rather than open
communications. An expatriate may be evaluated on the basis of how smoothly
things run. As a result, the expatriate may play down any problems, and head-
quarters may not get the full picture until it is too late or problems have become
major.
In polycentric staffing, management comes from the host country. Here, the
culture and communication interface is typically between headquarters and the
subsidiary. The international division must deal with intercultural and language
issues more directly because the expatriate who formerly filtered all communica-
tion between headquarters and the subsidiary is gone.
Practical Communication Options
To minimize the communication problem, firms have a number of options.
They can:
• Train everyone in the international division in intercultural communication.
• Create specialists for certain regions.
• Have a mixture of host-country and home-country nationals in the subsidiary.
• Hire host-country nationals who are familiar with the home-country culture.
The first option is expensive, and most firms don’t consider broad-based inter-
cultural training practical or necessary. With increasing international competitive
pressures, that is changing. Companies are also looking for some international
competence in the people they hire.
The mixture of ethnocentric staffing and polycentric staffing creates problems
in terms of compensation packages and can create an atmosphere of home-country
versus host-country personnel. Expatriates tend to get housing allowances, home
leave, tuition support for children, and hardship allowances. The host-country
employees who do the same work and work right next to the expatriates invari-
ably have inferior compensation packages. As one engineer in a developing coun-
try put it, “Why should an expatriate get more money for having blue eyes and
blond hair?”
These days expatriates frequently have dual citizenship. Eileen Zhang, for
example, is Chinese. She studied in the United States and received an MBA. She
then started work at a U.S. MNC. As soon as she was eligible, she became a U.S.
citizen. She rotated through several jobs to become familiar with company proce-
dures and practices. Ultimately, she was sent to Beijing, the city she originally
came from, to head the marketing section in charge of marketing coffee in China.
Eileen went to China as an expatriate with an expatriate compensation package.
Under those conditions, she was eligible for regular home leave, subsidies for
educational expenses for her daughter, Western-style expatriate housing, domes-
tic help, and a company car with a chauffeur. Chinese employees in the firm who
are well educated but have no expatriate status are upset that they have no access
to the same privileges.
422 Chapter 11

In Focus

As long as Bertrand Fowler worked in Delhi, India, he kept headquarters informed of all events and developments at
the subsidiary. He had worked in Milan, Italy, for a number of years and knew all the major players in the international
and domestic divisions at headquarters. He also knew how to package information effectively and channel it to the ap-
propriate person at headquarters.
Raj Kumatar, an Indian with a business degree from an Indian university, has taken his place. Raj does not know
anyone at headquarters, and he has not worked with people from Italy before. It will take some time before he can read
the people at headquarters and know what they want and how they prefer to be contacted.
In this environment, the people at headquarters are exposed more directly to the cultural environment of interna-
tional business. The buffer is gone, and now they must communicate directly with a person who has a different cul-
tural outlook.
George Blair was sent to Tokyo last year from Canada. He is married and has a small child. His wife did not want to
leave her friends in Canada, and they recently had bought a nice house in a very good suburb. Why should the couple
give up all that to go to Japan? As it turned out, the company picked up the rent for a Western-style apartment in Tokyo,
over $6,000 per month. And, of course, George also received other benefits, such as company-paid home leave every
year and an allowance for the cost of living in Tokyo. None of the Japanese employees receive any of these benefits.
One could argue that there is a question of fairness of reward, but more is involved. Will the Japanese employees
resent the special expatriate package, and will that undermine George’s effectiveness, especially in light of the fact
that George speaks very little Japanese? Special packages may keep the expatriate separate from the Japanese work
group and slow down or even hinder integration into the work group. All this will have an impact on the effectiveness
of communication between George and the other Japanese employees, as well as that between the subsidiary and
headquarters.
For the expatriate, the argument is that at home he could afford a big house, his wife could continue her career,
and his children could stay in their familiar environment. The extra pay and benefits, supporters of the packages ar-
gue, are simply compensation for hardships that he would not have had to endure if he had stayed at headquarters.

Attitudes in Different Cultures toward Sending

Employees to Other Countries
The extent of the expatriate package depends on cultural priorities. Japanese firms
typically send more expatriates to their subsidiaries than do Western firms.10 How-
ever, Japanese expatriate packages are small by Western standards. The interna-
tional assignment is considered a routine assignment within the company. German
firms also don’t pay their expatriates as lavishly as American firms do. This was a
major issue when Daimler and Chrysler negotiated their merger.
Some firms try to get around the issue by choosing younger, more flexible peo-
ple to send abroad. Those people are not sent as expatriates but are on the payroll
of the subsidiary under the same conditions as host-country nationals.11 Account-
ing firms in the United States increasingly are using that model, and it may work
if international experience is deemed essential for career advancement. On the
whole, however, many firms in the United States still maintain that it is not worth
sending younger employees abroad. They feel an employee must be at least middle
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 423

management before a firm can profit from the employee’s time as an expatriate.
The average cost to the U.S. company for an expatriate with a family who fails to
complete an assignment can be as high as $500,000.
Europeans seem to take a different approach. For example, French firms send
many of their younger people abroad. They argue that younger people are less ex-
pensive and more flexible in adapting to different cultures. Furthermore, they don’t
have to worry about schooling for their children. In addition, those employees will
bring their international experience back to their jobs at headquarters and be able to
use what they have learned throughout their careers. The French are convinced that
early international experience will develop international expertise that will enable
employees to communicate more effectively with people from many different cul-
tural backgrounds. Those employees will be able to see the partner’s point of view
and engage in more productive and creative problem solving. They hope that people
with early intercultural work experience will be more flexible and better communi-
cators. For example, the French company Schlumberger hires young engineers and
moves them around—for example, from Indonesia to Saudi Arabia to Houston.
Mitsui Trading Company also sends employees on international assignments
early in their careers. Roughly 30 percent of its workforce is abroad at any given
time. As was mentioned earlier, the international assignment is part of the regular
career path. The company invests a lot of money in training but fairly little in spe-
cial compensation. The employee receives intensive language training. Sometimes
an employee will spend a whole year in a country to learn the language and the
culture. That is the job for that time period. Later, the employee may shadow an
experienced expatriate for a year. It is only in the third year that the employee will
be involved actively in the actual business of the firm.
Over the last decades, U.S. firms increasingly have withdrawn their managers
from assignments abroad because of high early return rates and high costs. They
argue that Americans are not good at adapting to different cultures, and host-
country nationals educated in the United States are better able to fill the void and
establish good communication with host-country personnel.12 As a result of the
economic crisis in 2009, a number of companies froze all international postings
and called back most of their expatriates, arguing that they could not afford to keep
expatriates abroad.
These arguments are flawed for a variety of reasons. By withdrawing most of
their American staff, U.S. firms signal that international involvement is not im-
portant to their success or that firms from the United States can be successful with-
out Americans developing intercultural communication skills. In many ways, this
is admitting defeat and letting the world know that Americans have given up and
are unable or unwilling to deal with the communication challenge. Withdrawing
people from international posts also sends the signal that American firms have
no staying power and are not interested in doing business over the long run. The
competition—the Japanese, the Germans, the French, the Koreans—generally
doesn’t share that view. Many firms from those countries expect that their
employees can adapt, function, and communicate in many different cultural
environments. European firms expect that managers will speak at least one foreign
424 Chapter 11

language fluently. Increasingly, European companies expect a certain level of

intercultural fluency and competence as well. To make sure that employees can
function in the global environment, more and more companies provide intercul-
tural training. German companies, for example, conduct regular seminars so that
German managers can work effectively with partners from other European Union
countries.13 Volvo in Sweden has a Director for Intercultural Communication. The
person has the task of ensuring that employees are interculturally competent.

Assumptions Concerning the Expatriate’s Role and Effectiveness

The argument about the need for intercultural effectiveness also raises a question
about the role and function of the expatriate. Is the main task of the expatriate to
develop and manage opportunities for the firm, or is it to facilitate communication
with headquarters so that managers at headquarters don’t have to worry about for-
eign operations?
Another assumption is that a foreign manager in a foreign subsidiary who was
educated in the country of headquarters will be more successful than will a citizen
of the headquarters country. According to this view, for example, an Indian
who was educated in Belgium will be more successful in the Indian subsidiary of
a Belgian firm than a Belgian manager will be. But research has shown that a
native-born foreign-educated person does not necessarily communicate better
with host-country employees than does a person from the home country. The
employees at headquarters may develop a false sense of security, thinking that they
have taken care of all problems by hiring the Indian-born manager educated in
Belgium. They assume that they have someone who is equally at home in both
cultures and can communicate with both sides equally well.
They may not realize that the Indian may find himself or herself caught between
the native and the headquarters cultures. How well the Indian will do in this setting
will depend on professional status, professional skills, family background, intercul-
tural competence skills, and degree of adaptation to the culture of Belgium. The
Southeast Asian human resources (HR) manager of Motorola believes that an Indian
who has been abroad—either as a student or as an employee—longer than three
years will have a very hard time fitting back into the Indian work environment. The
employee will have changed, and other Indians will pick up on the changes. Fur-
thermore, in cultures where relationships are important, a manager who has been out
of the country for several years may no longer have a network of connections.
Headquarters may select the Indian manager because he can relate so well to
the people at headquarters, not realizing that because of that very quality he may
have difficulty establishing credibility with Indian businesspeople. What assures
the business community in India that the employee has not sold out to the Belgian
firm? How can they be certain that he represents the interests of his native culture?
In many ways, the better headquarters likes a foreign-born manager, the more his
native country may mistrust him. As a result, there may be questions of trust and
loyalty. In cultures in which loyalty is important, an employee working for a for-
eign firm may be somewhat suspect and therefore experience a decrease in his
ability to communicate effectively.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 425

In the international division organization, most people agree that:

• Cultural sensitivity and language are important.
• Managers must adapt to the culture.
• Technical expertise is not sufficient.14

Valuing Intercultural Communication Competence

Major disagreements occur over how to reach the goal of being a good intercultural
communicator. One of the biggest stumbling blocks in effective commnication is
that intercultural sensitivity is considered necessary only for the international divi-
sion. The typical attitude in U.S. firms with international divisions is that only the
people who are actively involved in international affairs on a regular basis need to
be knowledgeable about the cultural priorities of the people they are dealing with.
For the rest of the employees, such knowledge typically is not deemed necessary;
it does not add to their performance. As a result, the firm remains fragmented into
domestic and international divisions. With growing competition, improving global
communication systems, and better education, this distinction becomes a hindrance
rather than a help.
Businesspeople who have worked abroad often find challenges when they
come back to headquarters. To some extent, their reintegration difficulties are
related to reverse culture shock, but in many cases a returning expatriate may feel
anxious about his or her future with the firm. To capture the knowledge and expe-
rience of returning expatriates, firms increasingly plan the return of expatriates in
such a way that other employees can benefit from that knowledge.

In Focus

Tim Brandt, the operations manager of a major U.S. firm, has been in Spain for two years. Before that, he set up a joint
venture in China and then worked with the subsidiary in Germany for some time. Each time, Tim has tried to learn the
language so he can at least function in everyday life.
By any definition, he has been successful in the international field. At times, he is nervous about his career after
his foreign assignment, but Tim’s firm realizes that he has developed enough valuable expertise to play a major role in
the international expansion of the firm. Tim probably will stay in Spain for another year, but headquarters is planning
his return and has assigned a mentor to Tim to make the reentry easier. Tim’s international experience, ability to speak
Spanish and some German, understanding of several other cultures, and ability to adapt to and work in other cultures
will be factors in his advancement at headquarters.

As the importance of international operations grows and international compe-

tition increases, firms need to reevaluate their view of international operations—
in particular, their view of the importance of intercultural communication. The
firms that will be successful are the ones that can adapt to different environments
and understand the influence of culture on business behavior, such as negotiation.
426 Chapter 11

Several firms are trying to meet that challenge by changing from an international
division structure to a global structure.

The Global Firm

The Structure of a Global Firm
The word global appears increasingly in the literature in the place of multinational
and international, and a number of companies have changed to a global structure.
Confusingly, however, in some cases, the change is simply in the words, and there
are no changes in the organizational structures and communication practices;
companies refer to themselves as global because it sounds more cosmopolitan.
The differences between an international division structure and a global struc-
ture are, however, significant. Going global is not something that can be done
overnight or just by changing the name or the stationery. In the change from an
international division structure to a global structure, the international division
disappears and international operations are integrated into the firm.
In a sense, the organizational structure has come full circle. The global orga-
nization chart resembles the organization chart for a domestic firm, with the dif-
ference being that the organization encompasses the globe.
The move to a global structure typically begins when international sales
consistently account for 35 to 50 percent of overall sales. The move to a global
structure is an outcome of a company’s international success.
Global firms typically use one of three basic structures: a worldwide function
format, a worldwide geographic/regional format, or a worldwide product format
(see Exhibits 11.5 through 11.7). The structures can be mixed. For example, a firm
may combine regional and product structures. A company also may use a matrix
structure for its global approach.15 The particular global structure a firm chooses
depends on the product, the size of the firm, the extent of global operations, and
the philosophy of management.
The important point is that regardless of the particular global structure, the firm
does not divide operations into domestic and international. Operations are global,
and any substructures are an outcome of the needs of the global perspective.
At first glance, the global structure looks very appealing. It does not always
work, however, and is not always the optimal organizational form. If the various
international and domestic parts of the firm are at different stages of development,
production, and technology, the global structure may not get the expected results.16
For Shell, Unilever, and Coca-Cola, the global organization works because of
the types of products they sell and manufacture. For other companies, the move
may be premature or inappropriate because the product needs are different in dif-
ferent markets and because cultural adaptations are important. Wilson Sporting
Goods, a firm that manufactures and sells sports equipment, decided that an
international division structure was more advantageous because that structure
gives more autonomy to the various subsidiaries and allows them to respond to
specific market needs and trends more effectively.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 427

For example, golf clubs and tennis rackets in Japan differ in their dimensions,
center of gravity, and weight from U.S. dimensions. Exporting equipment from the
United States without any modifications does not always work. While some R&D
functions may be performed jointly, other operational functions may have differ-
ent needs and should be developed separately. The products are differentiated
enough in various markets to justify different approaches. This is a reality that
Coca-Cola does not have to face.
Sometimes the people in a market may reject certain product adaptations for
reasons of image. For many years, the Japanese argued that one of the reasons
American cars did not sell well in Japan was the location of the steering wheel.
American car companies had not moved the wheel to the right side to accommo-
date driving on the left side of the road. However, when the CEO of a Japanese
company who had just bought a BMW was asked whether he would prefer the
steering wheel on the right side, he said: “But it is a BMW. Where else would the
steering wheel be?” Clearly, having the steering wheel on the left side was a status
symbol.

Communication in a Global Organization

What are the implications of a global structure for communication? A shift to a
global structure does not make a global person out of a domestic person. A person
who in the past exclusively dealt with the domestic market may know Sweden but
not know or not care about Hong Kong or Singapore. If the change to a global
structure is not prepared carefully, there will be a lot of confusion, bad decisions,
and poor communication. The following case illustrates some of these issues.

In Focus

Leisure Wheels Inc., located originally in Dallas, Texas, changed to a global structure in 1991–1992. The change came
as a result of the growing importance of the international side of the business. It was an attempt to support further
growth and eliminate the “us versus them” feeling that was prevalent in the international division structure. However,
a cultural change of this magnitude takes time. Old-timers from the domestic side still had a more domestic outlook at
this firm.
In the reorganization, Leisure Wheels Inc. split up the international division. Most of the employees went into spe-
cific operations areas, and as a result, the international division was integrated into specific functional areas. Today,
employees from the original international division still communicate regularly with each other and keep each other in-
formed; there is still a common bond that is based on common concerns and experiences.
In the old international division structure, a manager knew exactly who needed to receive copies on what issues.
Today, a person in marketing research does not automatically send copies to someone in production, sales, finance,
or marketing. Karen, the manager of international operations and analysis, for example, came out of the international
division. She regularly and automatically e-mailed everyone in the international division. Today, she e-mails only her
boss since she is very aware of the number of e-mails that flood everyone’s mailbox. It is up to her boss to inform other
people who need and could use the information. But the process is no longer automatic. As a result, information is
(continued )
428 Chapter 11

getting lost. Some managers have begun to sense the need for regular and more systematic communication to improve
the efficiency of operations. For example, currently, two people from two different units of the same company may go
to visit the same dealer in Spain within a two-week time frame. They do not know about each other’s visit and do not
know about the purpose of each other’s trip. There is no central posting on who is going where for what purpose. It is
easy to see that this is not very functional. If a marketing person goes, and a few days later a salesperson goes, and
after that perhaps a product development person goes, the company spends a lot of effort, time, and money but does
not spend resources very effectively and does not communicate with the dealers in Spain effectively.
As the change to a global structure occurred, management realized the need for intercultural communication train-
ing, but there was some disagreement about what exactly was needed. The company finally decided that all employees
needed training in intercultural business communication and the environment of the foreign subsidiaries. In the first
phase of the training program, the company wanted employees to gain a practical understanding of the work and
environment in the various foreign subsidiaries. For example, how are dealers in Spain set up? What are their
constraints? Who are their customers? What are their concerns?
Research supports this approach. Daft and Lengel found that employees at lower levels need more technical in-
formation and training.17 After the initial training and information, more detailed intercultural communication training
is helpful, but the training always should relate to the context of the specific business.
When the executives at Leisure Wheels Inc. first discussed the move to a global corporation, it all looked so easy.
Only later did they realize how much work was involved.

Frequently, employees with a domestic background going on their first inter-

national trips feel that there is not much to international business, a feeling ex-
pressed as, “If you have done one market, you have done them all.” These people
know the product inside and out, but they have no background in the international
market, international distribution systems, international sensitivities, and intercul-
tural communication issues. They tend to evaluate international procedures on the
basis of their domestic expertise and their self-reference criterion. They judge
everything on the basis of their own backgrounds.
Typically, the instant experts come back with all sorts of ideas for improvement
without thinking through the intercultural implications and ramifications of their
suggestions. They may think, “If those people in Nigeria would only adopt the way
we do things, their problems would be solved easily.” They do not realize that this
is not the way “they” are doing things and that furthermore there may be very valid
reasons why “they” do things differently.
Successful communication in a global firm requires a solid and well-thought-out
structure for the communication process, and that structure must be communicated
globally. Ramrath, the former president of GE Plastics Pacific Ltd., points out that
in globalization a worldwide communication network is essential. He insists that all
employees must develop a global attitude and have a sense of adventure; without it,
he warns, the venture will not be successful.18 A global firm requires coordination,
communication, and unity of command. It works best if it is supported by a strong
corporate culture.
The worldwide functional structure does well at unifying command (see
Exhibit 11.5). Worldwide operations report to the appropriate functional managers,
such as marketing, finance, and personnel, at headquarters. The difficulty is that
communication can occur along rather narrow and specialized paths. A functional
manager may not have the overview of the whole situation because he or she deals
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 429

EXHIBIT 11.5
President
Global Functional
Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

only with one functional aspect. To be successful in this environment, managers from
the various functional areas must keep each other informed on a regular basis. They
must communicate with the people in their areas of specialization around the globe but
also must communicate with managers from other functional areas to coordinate ef-
forts. Many firms spend a great amount of effort on cross-functional training of their
management staff to improve operations. The process requires sensitivity and adapta-
tion to the different cultural orientations and goals of the various functional areas.
The geographic structure coordinates operations within a region but often
does not pay enough attention to coordination between regions (see Exhibit 11.6).
This structure facilitates adaptation to local and regional conditions. There are
some similarities between a multinational firm that has country subsidiaries and a
global company with a geographic structure, but in the latter the emphasis is on
regions rather than countries. The individual countries do not report to headquar-
ters but instead report to regional offices. Communication with the various cul-
tural groups within a region improves, but communication between regions may
be weak because of different languages and ethnic rivalries. The communication
system may be fragmented, and it may be difficult to pull all the regions together
to exchange ideas and share resources.
In the worldwide product structure (see Exhibit 11.7), global communication
relating to one product is efficient, but the communication between various
product groups can be weak and duplication of effort is common because each
product may have its own sales force and marketing channels. As a result, foreign

EXHIBIT 11.6
President
Global Geographic
Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

North America Latin America Europe Africa Asia/

Australia
430 Chapter 11

EXHIBIT 11.7
President
Global Product
Structure

Human Resources Planning Finance Legal Staff

R&D Engineering Production Marketing

Product A Product B Product C Product D

partners may get the impression that the company does not coordinate its efforts
very well and that communications are affected negatively by competition and
fragmentation.

In Focus

Nestlé, a Swiss company, is an example of a global company with a mixture of product and geographic structure.
Nestlé organizes its products into divisions, such as Food and Waters. The Food Division is broken into three zones:
the Americas, Europe, and AOA (Africa, Oceana, and Asia). Each of these zones is subdivided into geographic regions
run by a Market Head. The Waters Division is totally separate from the Food business. It has its own CEO and man-
agement team based in Paris. Nestlé Waters is divided into five zones: North America, Central and South America,
Europe, Africa, and Asia with Australia. Country managers report to the Zone Heads. The general manager for the
Levant, which includes Lebanon, Jordan, and Syria, reports to the Chief Operating Officer of The Africa–Middle East
Zone. The general manager for the Levant is a British national who lived in Australia for many years. His wife is
Australian. Before coming to Lebanon, he was the general manager for the food division in Uzbekistan. His current
boss, the Market Head for Africa and the Middle East, is an Italian stationed in Dubai.

As a firm becomes a global firm, the changes required for communication will
be difficult for personnel at headquarters but even more difficult for people in the
field. In the international division structure, employees of the foreign subsidiaries
simply had to contact people in the international division; they could expect that the
international division would take care of problems. Now employees in the sub-
sidiaries must contact a variety of people: product development, production, mar-
keting, finance, and sales. In many cases, they do not know those people personally.
If the company has high turnover in personnel, which is very typical in the United
States, the communication problem is exacerbated because a communicator with-
out a background in the company and without intercultural communication skills
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 431

will have difficulty structuring the message appropriately and selecting the optimal
channel.
An effective global structure requires intercultural communication training for
many people, at all levels of the organization, over and over again. When the prod-
uct development team sits down, its members cannot consider just domestic is-
sues; they have to think and plan globally. An advertising campaign cannot be
planned with only the domestic market in mind; the team must consider cultural,
legal, and regulatory requirements in other markets. Although people may have the
major responsibility for a particular segment of the advertising campaign, every-
one needs to be aware of the overall strategy and know what is going on world-
wide. They all have to overcome their differences and work as a team.
The communication requirements are even more severe if R&D and production
are spread over several locations all over the world. A number of firms have R&D
labs in several countries. In a global firm, those labs do have to coordinate and
communicate with each other. This does not mean they cannot adapt to specific
markets, but it does mean they must keep each other informed and cooperate rather
than compete for resources. Each segment must have in mind the best interest of
the firm as a whole.
Global organizations do not distinguish between domestic and international ad-
vertising budgets. The voice of the international side of the business is heard to-
gether with the domestic voice, and the money is spent where it will do the most
good. This requires that the managers from around the world communicate with
each other. They have to understand each other’s needs, priorities, and ways of do-
ing things. Without a background in intercultural communication and respect for
each other’s cultural orientations, this cooperation will not happen.
The people involved in finance, marketing, and product development at head-
quarters must have a global outlook and understand the thought processes, cus-
toms, and values of the cultures in which the firm does business. They need to
understand the cultural foundation for saving, investing, and borrowing money.
A global structure takes a tremendous amount of commitment. It requires regular
meetings, frequent communication, and travel. Only so much can be done by
e-mailing, faxing, telephoning, and teleconferencing. A global structure costs
money, but the improved strategies can increase profits.
For the global structure to be successful, managers need to have a solid under-
standing of the dynamics of multicultural groups. In a global firm, people from a
variety of professional and cultural backgrounds work together. Unless those peo-
ple are trained in intercultural communication, the groups may not be effective.19
A global structure requires effective communication among the employees at
headquarters and then full integration of communication strategies on a global
basis. The person getting ahead in this environment is the person who can think
and act globally. The staffing in a true global firm is geocentric—the best person
will get the job regardless of geographic and national background. The person
who will get to the top in that environment needs to have global experience and
solid intercultural communication skills. Global experience is no longer an extra,
a nice thing to have, but absolutely essential in a global firm.
432 Chapter 11

Few firms today are truly global. Firms must function under the constraints of
visas, work permits, government regulations, and import–export restrictions that
can hinder globalization. In many ways, the global firm has outgrown the existing
political structure, but national laws and different cultural orientations still influ-
ence internal and external communications. The North American Free Trade
Agreement (NAFTA), ASEAN, and the European Union are examples of how
national governments are working with each other and with businesses to remove
national barriers and create a global business environment.
Which language should a global businessperson speak (also see Chapter 2)?
Many businesspeople in the United States are quick to point out that English is the
business language of the world; therefore, English is sufficient. However, a truly
global business strategy requires cultural sensitivity, the ability to understand the
other side, and the ability to communicate with people from a variety of back-
grounds. Being able to speak the native language of the business partner will help
even if the foreign counterpart speaks English. For example, one of the author’s
universities has exchange programs with a business school in Metz, France. Metz
is in the northwestern region of France, a traditionally industrial area. Today, the
area is known for specialization in logistics. Mercedes is building the Smart car
there. The Smart is a very small vehicle designed to take up little space and, there-
fore, is particularly good for parking in crowded urban centers. Mercedes is head-
quartered in Stuttgart, Germany. The official language is English. Yet, in the
day-to-day activities, most people speak French. Historically, the area went back
and forth between Germany and France, and the local language still spoken by
many people is a German dialect. To function in this environment, managers need
to speak French. English may be the official language, but it is not sufficient. To
really get a feel for the area, some German would be helpful as well.
As the chapter on culture and language pointed out, there is a vast difference be-
tween being reasonably functional in a language and being bilingual and bicultural.
A person who speaks only English will miss much of the background culture and
nuances of a conversation. By limiting contacts to people who speak English, a man-
ager will limit his or her exposure to other opinions of native people who do not
speak English. The manager may get a very distorted picture of what is going on.
A foreign businessperson who appears fluent in English also may present a
problem. The surface knowledge, the speed of speaking, and a good accent may
hide the fact that that person may miss many of the fine points that may be
important in doing business. An additional problem is the definition of fluent. For
example, if a businessperson from the United States claims fluency in a language,
that can mean anything from being very good to speaking a little. When a
businessperson from the Netherlands claims fluency in a foreign language, that
typically means excellent use of the language.
The need for language and culture sensitivity is similar in both the international
division structure and the global structure. The big difference is that in the global
structure many more people need this orientation. In comparison to the international
division structure, the need for international knowledge in the global structure is
pushed down to lower levels in the organization and encompasses more people.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 433

In summary, to make the switch from international to multinational to global is

easy on paper. In many cases, the switch is semantic and nothing changes in the
day-to-day operations. Firms that become truly global find that it takes time, train-
ing, patience, and detailed attention to communication.

Implications of Cultural Aspects of Business Structures

for Communication in an International Firm
So far in this chapter, we have looked at the implications of international expan-
sion and organizational structure for intercultural communication. Some of the
communication challenges in this process are universal; a Japanese or a Chilean
firm that expands its international operations will face some of the same commu-
nication problems.
However, international firms do not communicate only with their own sub-
sidiaries where they still have some control over language, policies, and practices.
They also communicate with independent businesses in the countries where their
subsidiaries are located. They communicate with third-country businesses. For ex-
ample, the Thai subsidiary of a firm from the United States may do business with
the Thai subsidiary of a French firm. In that case, the communication must take
into consideration American, Thai, and French concerns. In addition, subsidiaries
communicate with the governments of their countries. Even if a company has a
firm company language policy and practices polycentric staffing, the interface
with other cultures is ever present, and the firm must deal with different values,
attitudes, and practices, not to mention legal requirements.
Different cultures look at organizational purposes and structures differently. The
way they view organizational patterns influences their business structures and
communication policies and practices. Chie Nakane, a Japanese anthropologist,
contrasts U.S. and Japanese firms in that context.20 She argues that U.S. firms em-
phasize credentials and qualifications, which she calls attributes, whereas Japanese
firms emphasize a common context, which she calls frame. In some countries—
Middle Eastern countries are an example—the family is the foundation of business
organizations. In the formerly communist countries, an authoritarian centralized
system still influences the structure and communication of a firm. Let us look at
these organizational patterns and their implications for communication.

Communication in an Organization Based on Credentials

People in the United States, Nakane argues, identify themselves by professional at-
tributes such as job qualifications or credentials; they are accountants, salespersons,
engineers, or carpenters.21 These job labels give Americans their professional iden-
tity, and they can take these professional credentials with them. A certified public
accountant (CPA) license, for example, is valid in most states in the United States
and is recognized in several other countries. More and more workers want to have
portable credentials. Recently, for example, salespeople have been talking about a
sales certificate that would be based on specific educational and work credentials.
434 Chapter 11

Credentials are influenced by cultural priorities. The labels do not necessarily

have the same meaning in different cultures. The label engineer does not mean the
same educational level and expertise in all countries. Germans make clear dis-
tinctions between various levels of engineers. Russians use the term medical doc-
tor much more loosely than Western countries do. One credential that is almost
universally understood is the MBA. As a result, universities in countries from
China to Mexico to Portugal have established MBA programs because the MBA
is an internationally recognized credential. Everyone knows that the MBA is a
generalist management degree at the graduate level, and as a result, international
hiring and evaluation of qualifications are made easier. For example, Germany for
many years awarded the Staatsexamen as the official degree at the end of one’s
studies. As long as most business was domestic, this presented no problems. How-
ever, with the growth of international business, people from other countries began
to wonder what the Staatsexamen was. They did not have any idea how to catego-
rize the qualifications. During the last few years, several German universities have
added the MBA program to their offerings.
In an effort to encourage mobility across Europe and create a European iden-
tity, the European Union is encouraging standardization of university degrees:
three years for an undergraduate degree and an additional two years for graduate
work. The changes were officially announced in the Bologna Protocol in 1999.
Credentials contribute to the identity of an American businessperson. The iden-
tification with the firm for which Americans work is only part of their existence; it
is not all-encompassing. In the United States, an employee can enter and leave an
organization at any level. A person can enter at the beginner level at the bottom or,
as has happened at IBM, Kodak, ADM, and Home Depot, at the level of CEO. What
counts are the qualifications the employee has, some of which may be credentials.
People want the job that best corresponds to their qualifications. In results-
oriented cultures, if that means leaving the firm, that’s okay. In fact, most new
graduates in the United States stay with their first companies for only three to four
years. Career counselors tell them that they should reevaluate their employment
situation on a regular basis and jump if a better opportunity presents itself. The em-
phasis is on individual advancement and individual opportunities, as discussed in
Chapter 3. That, of course, has implications for training. In that environment, train-
ing will be job-specific and brief. The employer wants to get some work out of the
employee before the employee leaves the firm, and the employee wants to develop
job attributes that are portable and not just company-specific.
The emphasis on portable credentials and individual achievement influences
communication within the firm. For example, if an employee is not absolutely
loyal to the firm, how much should he or she be involved in sensitive discussions
and issues? The tendency will be to concentrate on job-specific information and
limit communication. As a result, it is more difficult to establish teamwork, which
requires mutual trust and openness. Firms that operate within a low-context
culture try to protect their confidential information through contracts. For exam-
ple, an employee who has access to confidential information and leaves the firm
may have to sign a statement specifying that he or she will not use any of that
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 435

information. In these circumstances, the emphasis in communication may be on

safeguarding information rather than on long-term education, training, and the
sharing of information to reach company goals.

In Focus

Rebecca Martin has just finished her degree in international business. She sent out about 50 applications and finally
found a job with an import–export firm. It is not exactly what she wanted, but it is a good first job. She really wants to
be employed by a big international firm that offers an opportunity to work abroad. She plans to stay with the company
for about four years, long enough to get some good practical background in the nuts and bolts of international busi-
ness. During that time, she also would like to get an MBA with an emphasis on international finance. She believes that
the combination of practical experience and a master’s degree should set her up very well for her second job. And that
one, she is determined, will be with a big international firm.
She will work hard at the import–export firm, but she is not dedicating her life to that firm. Her loyalty ultimately is
to her own career. While she is with the firm, she will evaluate regularly whether she is progressing at a rate that will
make her competitive for the next job. Networking will help her to be aware of opportunities.

People who come from a cultural environment where relationships, commit-

ment, and loyalty are important values may be puzzled by the constant personnel
changes in U.S. firms. If Masataka Hyashi from Nagoya, Japan, talks about the
possibilities of a joint venture to Patricia Lesch in Chicago today, there is no guar-
antee that Patricia Lesch will still be there a few weeks from now. When Hyashi
contacts Chicago again, Lesch may have left the firm for better opportunities and
someone else will have taken her place. The Japanese, for whom the building of
personal relationships is a crucial aspect of doing business, may find the person-
nel changes in U.S. firms disorienting.
The focus on credentials reinforces a cultural leaning toward equal opportunity,
merit, individualism, and merit orientation. Such an orientation influences how
people conduct their job search, what they put on their résumés, and how they
interact with co-workers (also see Chapter 10).

Communication in an Organization Based on Context

The organization based on context is best exemplified in Japan. Japanese organi-
zations, according to Nakane, are organized on the basis of frame, or group
belonging, a concept that goes back to the idea of household, ie, and emphasizes
the importance of the group over the individual.22 The Japanese male is first and
foremost an employee of his firm. He is a Toyota man, a Mitsubishi man, or a
Komatsu man rather than an engineer or an accountant. He identifies with the
firm, the corporate household. Credentials are valid within that context but don’t
mean much outside the context. The lack of portable credentials limits job mobil-
ity, but it also provides a certain degree of security.
The employee is part of a family that takes care of its members; in return, the em-
ployee supports the goals of the firm. The system is based on reciprocity, or amae (see
436 Chapter 11

Chapter 4). The concept of amae means that a person willingly takes care of another
person but also is willing to be taken care of by that person. Amae establishes mutual
dependency. Nobody can do things alone. As we discussed in earlier chapters, the
Japanese are willing to put personal considerations after group considerations. Har-
mony of the group is considered more important. As a result, communication avoids
the open conflict and confrontation that are common in more individualistic cultures.
Within the frame or context, employees know how to act and behave, and the
expectations reinforce cultural priorities. They know their place; they know what
to say, how to address someone, and how deeply to bow. As soon as that familiar
environment changes, the Japanese are at a loss. The culture has not given them
the background or experience to deal with strangers. Japanese are ill at ease in new
situations and with strangers. They do not know how to address the other person,
and they do not know where they stand in the hierarchy vis-à-vis the other person,
aspects that lead to a certain level of insecurity. The result is incongruous com-
munication behavior.
For example, in his group, Ishido Tanaka is polite, considerate, and nonassertive.
When he is confronted with the world outside the group, the familiar norms and
guidelines are gone. How does he deal with this environment? In a variety of ways.
One way is to pretend that the other side does not exist, creating psychological
space in crowded conditions. The other way is behavior that is at odds with the prin-
ciples of behavior within the group. The Japanese on subways can be remarkably
aggressive and impolite. Pushing with one’s elbows, forcing one’s way in, using
rude language, and spitting are typical signs of behavior that would be unaccept-
able within the group but are tolerated outside the group.
When it comes to hiring, a company based on group identity will look for some-
one who will fit into the group and bring prestige to the firm. Therefore, many
Japanese firms pay more attention to the university attended than to the subject
studied. A fitting personality is more important than are specific skills. After all,
technical aspects can be learned; it is much harder to change or form the person-
ality and character. Even though with economic problems and restructuring of in-
dustry the practice of lifetime employment is weakening, the concept is still
strong. A Japanese employee is supposed to fit in and take his place. He is part of
the firm.

In Focus

Mitsui Trading Company hires about 100 new employees every year. In an effort to select the very best people, mean-
ing the ones who will fit into the company the best, Mitsui Trading interviews 3,000 applicants. All in all, the company
will conduct at least 5,000 interviews. In the first round, an applicant will have a half-hour interview. If the candidate
advances, he or she will interview with more senior people. In the last round of the selection process, candidates in-
terview with top executives. This process costs huge sums of money, but Mitsui Trading thinks in the long term. The
money is well spent if it ensures that the applicant will become part of the Mitsui family.
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 437

As we discussed in Chapter 10, this emphasis on fitting in is evident in Japanese

résumés and the job interview process. The résumé emphasizes names of schools
and universities rather than specific courses and grades on exams. Companies are
willing to spend many hours on interviewing potential employees to ensure that they
hire someone who fits in and has the “right” character. Specific credentials are sel-
dom highlighted.
There have always been Japanese who would leave a job and go somewhere
else, but the professional move was always downward to a smaller and less presti-
gious firm. This is just beginning to change. When a senior official from Toyota
had been hired for a leading position by another major Japanese firm, that made
headline news, indicating how rare such changes are even today. However, mobil-
ity is on the rise. Increasingly, Japanese executives insist that Japanese firms need
to promote on the basis of merit and encourage young talents if Japan is to be a vi-
able competitive player in the future. Joint ventures with foreign firms and foreign
buyouts also have contributed to employee turnover. When DaimlerChrysler
bought a controlling share in Mitsubishi Motors a few years ago, many Japanese
workers were laid off (also see Chapter 12).23
Since one can assume in the Japanese context that people will be with the firm
for a long time, it is worth training them in a wide variety of jobs. For example,
several Japanese firms regularly send employees to the Thunderbird School of In-
ternational Management in Glendale, Arizona. During their studies, the Japanese
employees remain on the payroll of their firms and the firms pay the tuition. These
firms have decided that the investment will pay many returns. The firms are not
interested primarily in their employees getting a degree, although that is expected.
They are willing to support the employees because they hope that the employees
will learn how Americans think and are motivated. In addition, they hope that their
employees will build relationships with people who will be in leading positions in
the United States in the years to come. This kind of investment makes sense only
if an employee will remain with the firm.
If employees will stay in the firm for the duration of their careers, it also makes
sense to involve them in making decisions and sharing information. After all, they
have a stake in the firm. The adversarial labor–management process in American
firms is replaced with a more cooperative approach. The feeling is that we are in
this together; we must work problems out, and we must cooperate for the benefit
of all sides. As we discussed earlier in this book, the building of group cohesive-
ness frequently occurs after hours in bars. Japanese managers have been known to
receive lavish expense accounts to entertain colleagues and partners. Even here
changes are occurring. For example, Japan’s biggest brokerage, Nomura Securi-
ties and Mitsui Company, halved its entertainment budget in the last decade. The
Bank of Tokyo-Mitsubishi, formed by a merger, spends less on entertainment now
than either of the two banks did as separate businesses.
Although job mobility in Japan has increased, much of the old sentiment re-
mains. The Japanese example of a business organization that is based on group be-
longing illustrates the connection of culture, organizational structures, and
communication. Seniority matters in promotions, and therefore more people tend
438 Chapter 11

to reach positions with fairly high titles in the firm. Titles matter; they give face. The
differentiation of people is apparent in the job duties rather than the job titles. As a
result of cultural influences on promotions, the organizational chart tends to be
broader at the top than it is in many American firms. Communication emphasizes
the well-being of the firm and harmony between employees rather than individual
achievement. Because of these long-cherished values, layoffs in the late 1990s and
the early years of the 21st century hit Japanese employees particularly hard. They
believed in the company as their family; they were willing to work long hours in
return for security. That dream has been shattered for many. It remains to be seen what
the long-term effect will be on employee loyalty and dedication to the corporation.
Today one can observe a growing difference between Japanese employees
working for Japanese companies and Western companies. Japanese managers
working in Japanese firms tend to emphasize the traditional Japanese values of
harmony, group orientation, and lifetime employment. They are reluctant to voice
criticism openly of co-workers or their companies. Japanese managers working for
Western companies, on the other hand, talk more openly about their individual ca-
reer ambitions, their achievements, and their complaints about work issues. They
are much more focused on performance standards and measurements of produc-
tivity. The contrast became very clear when one of the authors interviewed man-
agers from both groups in Japan. It will be interesting to see whether these
attitudes will influence the general Japanese workplace in the long run.
Japanese firms going into low-context cultures initially were confused by the ad-
versarial approach of employees and the separation of work time and private or fam-
ily time. U.S. employees, and Europeans too for that matter, were not willing to
sacrifice their evenings and weekends for the betterment of the firm. In Japan, in
contrast, employees are expected to spend time with co-workers after business hours.
Typically, Japanese expatriates take this practice with them. At a Japanese subsidiary
in the Midwest in the United States, for example, the Japanese employees tend to
stay at the office long after the American employees have left for the evening.
The organization based on context reinforces cultural orientation toward col-
lectivism, blending in, obligations, and loyalty rather than individual rights.

Communication in an Organization Based on Family Orientation

Business in the Middle East is based on the concept of the family. According to
the Qur’an, a family must take care of its members. A family has a holy obligation
toward its members. The family orientation seems to fit the Japanese group struc-
ture, but the group in Japan does not necessarily include the blood family. The
Middle East looks at the family as including all blood relatives.
In contrast to a Japanese firm, which emphasizes the group and consensus build-
ing, a firm in the Middle East is ruled by the senior male member of the family. It
is much more authoritarian and autocratic than is seen in the harmony-based ap-
proach of Japan. Even when a senior manager asks for advice, family members un-
derstand that the senior member has the cultural right to make decisions. He may
listen but does not have to. Americans hire on the basis of specific qualifications;
the Japanese, on the basis of character; a Middle Eastern firm must take care of
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 439

family members first. If outsiders come into the company, they need to be part of
the same social network, and they are expected to bring the necessary connections
to other firms and government agencies.
These firms do not have official organizational charts. For outsiders, it is there-
fore impossible to determine who reports to whom and who holds what positions.
Female family members may have indirect power but may not show up in any offi-
cial capacity. Unless an outsider develops close relationships over a long period of
time, he or she may not understand the dynamics of the communication patterns
and may miss crucial elements of the business activities and negotiation processes.
A successful businessman may start several new businesses, one for each son,
rather than expand the existing business. By doing this, he can ensure that after his
death each son will be the senior member in his firm. This setup creates clear lines
of ownership and communication and prevents squabbles over who is entitled to
do what. It also can create a unique communication code that is difficult for out-
siders to decipher. In American firms, communication codes are more readily
transferable. Pezeshkpur, a well-known author, states that Middle Easterners func-
tion best if the lines of authority and power are clear.24 The uncertainty connected
with negotiating and compromising is culturally more difficult.
Businesspeople in the United States like to toss ideas back and forth and reach
a compromise or consensus after arguing. Middle Easterners prefer for someone
to be in charge and make the final decisions. The family orientation and the em-
phasis on seniority meet these expectations. In this environment, the establishment
of authority through appropriate introductions, credentials, and connections is cru-
cial for success. Business is conducted at a personal rather than an institutional
level. The development of trust and personal relationships is necessary. To develop
these relationships, potential partners exchange gifts and favors resulting in a
whole network of complicated connections. The practice of reciprocal gift giving
can lead to bribery and extortion; however, traditionally gifts tended to be fairly
small. It seems the problem is not so much the gift itself but the interpretation of
the gift by those who do not understand the cultural reason for it.
One could argue that the pattern of family businesses is similar throughout the
world; however, in Western countries the family business is one model among
many. In Middle Eastern countries, it is the predominant business form and there-
fore represents the business environment and climate to a much greater extent.

In Focus

Esa Ali just received his undergraduate degree in marketing from an American university and is ready to go back to
Jordan where his family owns a small company that manufactures souvenirs. During his studies, Esa had two intern-
ships with companies that cater to tourists. He also did a study on marketing channels and market research. He would
have liked to stay a few more years in the United States, but the family told him they needed him. His father was getting
(continued )
440 Chapter 11

on in years, and business was down. Esa was a bit nervous; he had not seen his family in over four years. What would
they be like? What did they think? He knew that he had changed, but what about his brothers? Had they changed, too?
Esa had prepared himself well. He was enthusiastic and saw a number of opportunities that could be developed.
In the first meeting of the male members who were involved in the business, everyone welcomed him back but no-
body asked for his advice. When he finally spoke up, it became clear that they did not listen to what he had to say:
“They would think things over”; “Yes, they had tried that and it did not work”; “Theories might be good, but this was
reality.” As the meeting went on, he was wondering why he had come back.
During the next few weeks, his brothers voiced their concerns that he did not seem to have learned anything. Why
did he not contribute? Now he was totally confused. First they did not listen, and now they were accusing him of not
contributing. As time went by, he began to be more conscious of the dynamics in the group. The father and the oldest
brother clearly had the say, but another of his brothers managed to get his suggestions out on the table, and frequently
the father and the oldest brother would go along. Esa decided that he would talk unofficially and in private to both his
father and his oldest brother to lay some groundwork for changes. Esa was convinced that some of the family mem-
bers were poorly prepared to perform the jobs they held. They needed some training. Most of the communication with
suppliers and customers went through old established channels. Although Esa knew that the personal relationship
was important, he also was convinced that modern technology could speed up some things. This was a family busi-
ness, but not everyone contributed. One of his brothers hardly ever came to work. They desperately needed someone
to take over the finances, but nobody in the family was very interested in that side of the business. Esa suggested hir-
ing someone who was not a family member, but that did not get very far. His father would not hear of it. Finally, a cousin
who had studied finance was asked to do the job.
During his studies, Esa had become used to voicing his opinions openly and questioning others. He liked to analyze
problems and examine possible solutions. It was not easy to accept his place in the family, but he realized that was the
only way he could ever be effective.

Communication in an Organization Based on Political Principles

Organizational principles in formerly communist countries are different alto-
gether. Some people argue that there is no point discussing the communist system
since most of those countries are not communist any longer. However, the influ-
ence of the communist system has been so strong and has shaped organizations to
such an extent that the results will endure for a long time. People doing business
in that part of the world will have to deal with the remnants of communist attitudes.
For example, China, a major trading partner of the United States, Europe, Japan,
and the Middle East, is still communist even though on the surface economic cen-
tralization has given way to a market-oriented economy.
In the communist system, the business organization is based on the concept of
collective ownership and the absolute right to a job. In the case of China, this was
formerly expressed in the concept of the iron rice bowl. Twenty years ago, al-
though the rewards were minimal, an employee of a firm did not have to worry
about unemployment or the basic needs of life. Furthermore, except for top party
people, nobody had much. The business organization was not governed by busi-
ness principles but first and foremost by political considerations. The system cre-
ated a mentality of dependency in which people had little motivation and were not
willing to take risks. The iron rice bowl is really a thing of the past in China. The
biggest practitioners—the huge state-owned enterprises in heavy industry—have
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 441

laid off and retired many workers. The old support systems no longer function, but
new institutions such as insurance companies have been slow to develop.
Today, the Chinese economy has three parts. One is represented by the risk-
oriented entrepreneurs who seize every business opportunity that presents itself.
This group is fast-growing. Another group consists of those who work for foreign
firms and joint ventures. Many of those people are well educated, and they aim at
attaining a Western affluent lifestyle. The third group consists of those who are still
working for the state-owned sector; this remains by far the largest sector of the
economy, including village, township, county, provincial, and national organiza-
tions. Increasingly, these people have less and less access to economic resources.
So far, employees have had job security in most cases, but they are falling behind
in their standard of living.
Communication in these three sectors is very different. In the private compa-
nies, Chinese managers and employees are beginning to take greater responsibil-
ity for their work. They are expected to show initiative and be flexible. They earn
easily ten times what a worker in a state-run enterprise gets, but they also have
more responsibility and incur greater risks. Frequently, Chinese employees in pri-
vate firms and joint ventures are Western-educated. They want the trappings of
a Western lifestyle. Young urban Chinese wear fashionable Western clothes,
they have breakfast at Starbuck’s, and their apartments are equipped with air
conditioners.
The typical traditional top-down communication of the state-run enterprise is
giving way to a more open communication style. An outsider who goes to China
to do business needs to examine what kind of firm she or he is dealing with and
adjust her or his communication pattern to the specific circumstances.
One cannot talk about Chinese employees in general; one needs to specify the
term more clearly. Is an employee a Chinese-educated person working for a state-
run enterprise? Is she or he working for a Western firm? Is she or he Western-
educated but working for a private Chinese firm? Is she or he Western-educated
but working on an expatriate contract for a Western firm? Is she or he Western-
educated, and has returned to China where she or he currently works for a Western
firm? In the last case, the employee would not receive the same pay as the expa-
triate. All these Chinese employees have different expectations, different commu-
nication styles, and to some extent different priorities.
At the same time, a Western businessperson needs to realize that even in pri-
vate companies business practices are influenced strongly by the government. On
the surface, business may be Westernized; in reality, the Communist party still has
a lot of power.
As the formerly communist economies become more market-oriented, people
are eager to reap the profits but are not necessarily willing to accept the responsi-
bility for efficiency and take the risk of failure. A number of Western firms that
have gone to countries of the former Soviet Union must deal with that attitude.
In the case of one firm, the American owner found it was very difficult to get
information from the employees in Russia—even the most factual and neutral in-
formation. Information is power, and to part with it may not be wise, as was
442 Chapter 11

discussed in Chapter 8. Employees may also fear that the information they give to
the owner could be used against them.
Because in the past the Soviet government provided raw materials and took care
of selling the manufactured products, their accounting and financial systems are
underdeveloped. It is not just that the technical systems are weak; more importantly,
the concepts are not clear. Generally, employees understand the term profit, but they
have a hard time seeing that a profit must be earned, that the production and the
sales must be there before one can enjoy the profits. The laws of the Soviet Union
contributed to that lack of understanding. For example, in the 1930s a law was
passed that declared that anyone who bought a product from the state and sold it for
a higher price was engaging in speculation. Speculation was considered not busi-
ness but immoral profiteering. No wonder the distribution of goods was a huge
problem. The definition of profit as profiteering is deeply engrained even today. It
goes through all age groups and educational levels. There is always something sus-
picious about a person who makes a living in the distribution channel. In addition,
people have a hard time understanding that one has to invest and build capital be-
fore one can reap profits. The following case illustrates how difficult it can be to
explain basic business concepts to people who are new to a market economy.

In Focus

When Nestlé entered Uzbekistan a few years ago, it formed a joint venture with NAFOSAT, a local state-run dairy com-
pany. The Soviet dairy production had collapsed totally, and Nestlé had to build the dairy industry from nothing. The
farmers have a contract with Nestlé to deliver milk that meets Nestlé’s strict standards. In return, Nestlé helps the dairy
farmers with the raising and feeding of cattle. The Uzbek farmers own 50 percent of NAFOSAT, or about 2.5 percent of
the joint venture. Nestlé business will show a loss in the early years of establishment until the volumes grow.
NAFOSAT’s business was not and is not in good shape. Before the joint venture was formed, NAFOSAT was close to
bankruptcy.
In July 2002, the shareholders’ annual general meeting was held for NAFOSAT. Since Nestlé is the largest share-
holder, it was agreed that the meeting would take place in the company’s factory in Namangan. At the meeting, the lo-
cal shareholders became very angry and wanted to know where their profits were. Martin Woolnough, the manager
for Nestlé in Uzbekistan, faced the crowd. He knew this was not going to be easy, but Nestlé was in Uzbekistan for the
long haul. It was absolutely crucial that these farmers understood the concept of profit and realize that nobody had
stolen their money. Martin likes to tell stories that his audience can relate to. Here is what he said.
“Let’s all build a restaurant in the field next door. Please look out the windows at the field across the road. Let’s
imagine that all of us in this room were friends and we decided that it was worth building a restaurant there. Let’s imag-
ine it would cost USD 100 to build this restaurant and that in order to raise the money, we all contributed $1 each. Okay?
“So, it takes us one year to build our restaurant . . . Would we expect our $1 investment to have made any money
for us yet? No, of course not. To attract customers, we hire a good chef, but business is a bit slow to start with and we
find that after the first year, instead of making a profit we make a loss. How will we pay for the loss? I guess we could
borrow money from the bank, or maybe each of us could provide additional funds. Since we do not have any extra
money, we decide to get a loan at the bank. What about our initial $1? Has it made us any money yet? Of course not.
 The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 443

But we still own a restaurant, and if it were sold, maybe we could get our dollar back. However, we have worked very
hard, and we don’t want to sell it now, do we?
“As each year goes by, our restaurant becomes more and more popular, and after about three years we make our
first profit. Does that mean that every owner can now get a share of the profit? Of course not; we still have to repay the
bank the money we needed when we were making a loss. What about our initial investment of $1 each? What’s it worth
now? Well, that depends on the value of our business—do we just own a restaurant building and equipment, or do we
also have a proven way of earning profit? What if our chef is the best in the region and people have started coming
from miles around to eat our plov [a local Uzbek rice-based dish]? We have become famous for our restaurant. Now
we own more than just buildings, don’t we? Maybe other people would see our restaurant, and a rich local man might
come and offer us a great price for our restaurant.
“What if he offered us $200 for the lot? Excellent! If we sell it, we would each get USD 2. Great, but does it mean
we have really made USD 1 yet on our initial investment? Only if we sell . . . but we don’t want to.
“Clearly, in the years ahead, if our restaurant continues to do well each year, then we can expect to make a good
profit each year as well as keep our initial investment safe (and growing). We could expect a share of the profit to be
paid to us as the owners each year, but would this be the best use of the profit? What if we decided to keep investing
the profit to redecorate and expand our restaurant? Why would we do that? Well, our primary interest is to see our
business grow both in the physical buildings and equipment but also in the unseen value that our business is worth—
the price someone else would pay for it. But to make the restaurant grow, we need to use a big part of the profit to im-
prove and update it.” The crowd listened and nodded. Martin was successful in explaining a complicated principle be-
cause he was able to see the issue from the Uzbek side. They could relate to the story; it made sense to them.25

Summary An international firm, no matter what its own organizational structure is, must deal
with a variety of business structures around the world. As companies expand in-
ternationally, their communication needs change. A domestic firm has communi-
cation needs very different from those of an international firm. An international
firm with an international division faces the challenge of competition between do-
mestic and international divisions. A global firm integrates international opera-
tions throughout the firm. As a result, a global firm needs people with intercultural
communication expertise at all levels.
In addition to adapting communication to the growing internal diversity, inter-
national firms must adapt to the varying communication practices of other firms
around the world. We examined the following areas:
• Corporate culture and intercultural communication. Companies develop their
own unique corporate cultures. The corporate culture is embedded in the na-
tional culture.
• Stages in internationalization. Typically, the internationalization starts with
an import–export stage, followed by the multinational firm and then the
global firm. Each stage has its own organizational structure and communica-
tion environment.
• Implications of cultural aspects of business structures for communication in the
international firm. Effective intercultural communication in a firm is influenced
444 Chapter 11

by the structure of the firm, which in turn is influenced by cultural priorities.

Priorities for credentials, context, family, and political considerations influence
the way people are hired, trained, and promoted. As a result, communication
patterns depend on the specific organizational context.

Notes 1. Henry W. Lane, Joseph J. DiStefano, and Martha L. Maznevski, International

Management Behavior, 5th ed. (Malden, MA: Blackwell Publishing, 2006).
2. Ibid.
3. Nancy Adler, International Dimensions of Organizational Behavior (Boston:
Kent, 1986).
4. Philip R. Harris, Robert T. Moran, and Sarah V. Moran, Managing Cultural
Differences: Global Leadership Strategies for the 21st Century, 6th ed.
(Burlington, MA: Elsevier, 2004).
5. Donald Carbaugh, “Cultural Communication and Organizing.” In Communi-
cation, Culture, and Organizational Processes, Intercultural and Intercultural
Communication Annual, vol. IX, William B. Gudykunst, Lea P. Stewart, and
Stella Ting-Toomey, eds. (Newbury Park, CA: Sage, 1985), p. 37.
6. Vern Terpstra and Kenneth David, The Cultural Environment of International
Business, 2nd ed. (Chicago: Southwestern, 1985).
7. Nancy Adler and F. Ghadar, “International Strategy from the Perspective of
People and Culture: The North American Context.” In International Manage-
ment Behavior, H. Lane and J. DiStefano, eds. (New York: Kent Publishing,
1991).
8. S. J. Kobrin, “Is There a Relationship between a Geocentric Mind-Set and
Multinational Strategy?” Journal of International Business Studies 25, no. 3
(1994), pp. 494–512.
9. H. Lane and J. DiStefano, International Management Behavior (New York:
Kent Publishing, 1991).
10. Kimio Fujita, “Letter from Samoa,” Japan Economic Review, November
2001. Mr. Fujita was the adviser to the foreign minister of Samoa and former
president of the Japan International Cooperation Agency.
11. Teresa Palmer and Iris Varner, “Leveraging the Knowledge of Expatriates to
Enhance Organizational Performance: What Can HRM Do?” In Proceedings
of the 2002 Conference of the North American Management Society and the
Midwest Society for Human Resources/Industrial Relations, R. Greenwood,
ed. (Chicago, 2002).
12. S. J. Kobrin, “Expatriate Reduction and Strategic Control in American Multi-
national Corporations,” Human Resource Management 27, no. 1 (1988),
pp. 63–75.
The Influence of Business Structures and Corporate Culture on Intercultural Business Communication 445

13. Till Hein, “Das Kommt den Chinesen Spanisch vor,” Die Zeit, no. 41
(September 30, 2004), p. 41; Andreas Unger, “Auf Tuchfuehlung Gehen,” Die
Zeit, no. 48 (November 24, 2005), p. 86.
14. R. L. Tung, “Selection and Training of Personnel for Overseas Assignments,”
Columbia Journal of World Business 16 (1982), pp. 68–78.
15. Simca Ronen, Comparative and Multinational Management (New York:
Wiley, 1986).
16. Adler and Ghadar, “International Strategy.”
17. R. Daft and R. Lengel, “Information Richness: A New Approach to Manage-
rial and Organizational Design.” In Research in Organizational Behavior
(Greenwich, CT: JAI, 1984), pp. 191–233.
18. H. Ramrath, “Globalization Isn’t for Whiners,” The Wall Street Journal, April 6,
1992.
19. Joseph DiStefano and Martha Maznevski, “Creating Value with Diverse
Teams in Global Management,” Organizational Dynamics 29, no. 1 (2001),
pp. 45–63.
20. Chie Nakane, Human Relations in Japan (Ministry of Foreign Affairs, Japan),
1972. Also see Makoto Ohtsu and Tom Imanari, Inside Japanese Business
(London: M. E. Sharpe, 2002).
21. Nakane, Human Relations.
22. Ibid.
23. Chester Dawson, Jeff Green, Larry Armstrong, Christine Wheatley, and
Jonathan Wheatley, “Mr. Fix-It,” BusinessWeek, May 14, 2001, pp. 66–67.
24. C. Pezeshkpur, “Challenges to Management in the Arab World.” Business
Horizons, 21 (1978), pp. 47–55. Also see Bernard Lewis, What Went Wrong?
(New York: Oxford University Press, 2002).
25. Cited with permission from Martin Woolnough, manager of Nestlé Uzbekistan.
Nestlé Uzbekistan LLC was formed as a joint venture in which Nestlé S. A., the
Swiss parent, owns approximately 95 percent and NAFOSAT owns 5 percent.
Additionally, Nestlé Uzbekistan LLC owns 35 percent of NAFOSAT, and the
government of Uzbekistan owns 15 percent of Nestlé Uzbekistan LLC. The
balance of the NAFOSAT shares is owned by about 100 private individuals
who have little or no experience owning shares and would best be described as
traditional country people.
C H A P T E R T W E L V E

Intercultural
Dynamics in the
International
Company
On May 7, 1998, Daimler-Benz AG and Chrysler stunned the world by announcing that they
had agreed to merge the two companies. There had been rumors for some time, yet when
the news came, it made headlines. This was the first megamerger of two big international
companies, and it would make DaimlerChrysler the fifth-largest maker of cars and light
trucks in the world.
Juergen Schrempp, chief executive officer (CEO) of Daimler-Benz, and Robert Eaton,
CEO of Chrysler, had met at Chrysler’s headquarters on January 12, 1998, to explore possi-
ble cooperation. That meeting, which lasted just 17 minutes, resulted in a decision to
merge the two companies. The two CEOs met a number of times in Germany, London,
New York, and South Africa in the following months, but their meetings were always kept
secret. They never appeared together in public, and only a few trusted executives knew
about the talks. In fact, each person who was told about the talks also was told that so far
no information had leaked to the outside; therefore, any leaks in the future could be traced
very easily and be punished accordingly. The threat worked, and everyone kept quiet.
When the merger was announced, Eaton and Schrempp hailed it as a “merger of equals.”
They were to be co-chairs for three years. After that, Eaton would step down and Schrempp
would become the sole CEO. There would be headquarters both in Auburn Hills, Michigan, and
in Stuttgart, Germany. The company language would be English. Economies of scale and the
sharing of technology and other information would result in huge savings—USD 400 million
in the first year alone—and higher profits. Daimler would contribute engineering know-how,
and Chrysler would contribute creativity and marketing savvy.
The merger was made official on November 17, 1998. On that day, Eaton and Schrempp
together rang the opening bell on Wall Street. In Stuttgart, employees celebrated with an

447
448 Chapter 12

American-style party that included turkey. In Auburn Hills, Chrysler employees ate potato
salad and sauerkraut. Each member of the integration teams received half a share of stock
in the new company.
From the very beginning, the merger required a reconciliation not only of big issues but
also of seemingly unimportant points. For example, a committee had to sit down and decide
whether a brochure encouraging employees to accept global assignments should have the
shape of a globe or a rectangle. The choice of color was another stumbling block. After
several months of regular meetings the committee finally decided on the globe shape, but
the color was still unresolved. Ultimately, the group agreed on yellow and blue. The Germans
immediately thought of Lufthansa Airlines, and the Americans, all from the Detroit area,
thought of the University of Michigan.
The negotiations for expatriate pay were tough as well. American expatriates are used
to lavish compensation packages, much larger than what their German counterparts were
used to. The Germans, on the other hand, were used to long vacations. The proposal that
finally was hammered out included the following: Expatriates from Germany and the
United States would stay on the home-country payroll and would be paid in the home-
country currency. That meant no more special pay packages. The Americans were used to
a three-month lump sum at the beginning of an expatriate assignment to cover costs; the
Germans wanted none of that. The two sides finally compromised on one month’s pay. The
company offered to pay for housing in the new location and upkeep of the expatriate’s
house in his or her old location, including snow removal and lawn care. Expatriates from
both countries would be given 25 days of vacation and a plane trip home for themselves
and their families once a year. The company offered to help spouses find employment in
the new location. German expatriates in the United States would get Chrysler automo-
biles at discount rates; American expatriates in Germany would get Mercedes vehicles at
discount rates.
None of those issues dealt with the company product, marketing strategies, or customer
relations. At times, the discussions went nowhere. Compromises frequently left both sides
disappointed.
Less than two years after the merger, the company bought a controlling share of
Mitsubishi. Now there were three corporations and three national cultures involved.
Chrysler had had an unsuccessful joint venture with Mitsubishi in 1980, when together they
built an automobile assembly plant in Normal, Illinois. Ultimately, that joint venture was
dissolved, to some extent at least because of different approaches to doing business. In the
joint venture, Chrysler had been the junior partner; Japanese headquarters had the ultimate
say on most issues. In the new formation, Chrysler was aligned with the majority merger
partner, Daimler; however, the earlier relationship between Chrysler and Mitsubishi did not
seem to affect the ties to DaimlerChrysler.
Mitsubishi was in trouble when DaimlerChrysler acquired the majority interest; it had
lost money in 2000, and the Japanese were deeply unhappy at the measures taken by
DaimlerChrysler to bring it back to profitable figures, including firing many of the top exec-
utives at Mitsubishi.
Schrempp and Eaton had emphasized the potential savings and economies of scale that
the merger of Daimler and Chrysler would create. On that expectation, the stock rose to a
high of USD 108. When reports of culture clashes between Auburn Hills and Stuttgart
 Intercultural Dynamics in the International Company 449

began to emerge, sales problems and production issues made headlines, and the stock
dropped to a low of USD 26.
During the following years the road for the merger was rather bumpy, and the expected
savings and market growth never materialized. Daimler had been seen as the stronger part-
ner that would pull Chrysler along; however, under Zetsche, who had worked for Daimler in
Stuttgart, Chrysler stabilized while Daimler ran into problems. Among other things, the
Smart became a drag on the profitability of Daimler. The Smart is a sub-compact car that
was designed for city traffic. It is easy to park because it takes up very little space. In con-
gested European cities, this was seen as a huge advantage. However, the Smart was ex-
pensive. Production was plagued by quality issues, and the Smart never quite attracted
enough people to make it profitable.
At the same time, Mitsubishi Motors ran into major problems as well. The company had
covered up defects in its cars over several years. Quality problems led to financial problems,
and the question was whether DaimlerChrysler would support Mitsubishi financially. This
would be a further drag on the profitability of DaimlerChrysler. Mitsubishi Motors is one
company in the Mitsubishi Keiretsu, a conglomerate of companies that traditionally would
help each other in case of problems. The companies composing the Mitsubishi Keiretsu are
Mitsubishi Bank, Mitsubishi Corp., Kirin Brewery, Mitsubishi Rayon, Mitsubishi Electric,
Mitsubishi Heavy Industries, and Mitsubishi Motors. Traditionally, all companies in the
keiretsu would do business with each other whenever possible. Each keiretsu has a bank at
its center, and all companies in the keiretsu use this bank for their financial and banking needs.
The question was whether the Mitsubishi Keiretsu would bail out a company that was
controlled by a foreign firm. When DaimlerChrysler bought a controlling share of Mitsubishi
Motors, this was seen as proof that the traditional keiretsu was breaking apart. As the
crisis deepened in the spring of 2004, DaimlerChrysler decided not to put more money into
Mitsubishi Motors.1 Ultimately, the keiretsu followed tradition and bailed Mitsubishi
Motors out. As a result, DaimlerChrysler’s shares in Mitsubishi Motors fell to 22 percent.2
In November 2005, DaimlerChrysler sold its remaining shares of Mitsubishi Motors to
Goldman Sachs.3 The big auto conglomerate was back to two companies.
For 2005, DaimlerChrysler posted an 84 percent rise in income, but most of that came
from the financial service area of the company rather than the production side. While
Chrysler announced a profit for 2005, sales slumped as high gasoline prices scared buyers
away from trucks and SUVs. The Mercedes division posted a loss of 505 million euros for
2005, its first annual loss in over ten years. In addition, Mercedes announced layoffs for
8,500 employees and a restructuring of the unprofitable Smart division.4 At the end of 2005,
Schrempp, the CEO of DaimlerChrysler announced that he would step down. Many ob-
servers felt that effectively he was ousted. The Board of Directors had voiced doubts about
Schrempp’s continuing effectiveness. Zetsche, who had turned Chrysler around, followed
Schrempp as the new CEO. In March 2006, the stock traded at USD 46, up from the low of
USD 26 but only a shadow of the height of USD 108 at the excitement over the merger.
On August 3, 2007, DaimlerChrysler sold the Chrysler Group to Cerberus Capital Man-
agement. The Chrysler Group became Chrysler Holding LLC, and 81.1 percent of the new
company was owned by Cerberus. DaimlerChrysler changed its name to Daimler AG and
kept 19.9 percent in the new Chrysler Holding Company. “Daimler AG paid Cerberus USD
650 million to take Chrysler and associated liabilities off its hands. This is a remarkable
450 Chapter 12

reversal in fortunes on the USD 36 billion paid to acquire Chrysler in 1998. Of the USD
7.4 billion purchase price, Cerberus Capital Management invested USD 5 billion in Chrysler
Holdings and USD 1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG
received USD 1.35 billion directly from Cerberus but directly invested USD 2 billion in
Chrysler itself.”5 Thus ended a celebrated merger after only eight years.

Throughout this book we have emphasized the importance of cultural awareness

in international business. We have discussed the foundations of culture and vari-
ous cultural priorities. Chapters 3 and 4 examined five categories of questions that
can help you assess the cultural priorities of the cultures in which you are work-
ing. In Chapters 2, 5, 6, 7, 8, and 9, you learned about the impact of culture on ver-
bal and nonverbal communication, specific business tasks such as the collection
of information, the organization of information, decision making, conflict resolu-
tion, and negotiation. In Chapters 10 and 11 you learned about the impact of cul-
ture on the organizational setup of a company and the importance of understanding
the legal environment in intercultural business communication.
With this foundation, you are now equipped to identify cultural issues in inter-
national business ventures. You also know that when you read a newspaper or
watch a television program, there is no signal that flashes to let you know: “Here
is a particular cultural problem—pay attention,” or “In Japan, the traditional cor-
porate structure is based on seniority and group cohesiveness, which in turn are
related to a high-context society. The Japanese function on a base of relationships
that is developed over a long period. Change therefore is slow, and individuals
should fit into the group rather than stick out.” Since this cultural signal is not
flashing, many people believe culture is not relevant. However, when you talk to
expatriates and other businesspeople who are active in international business, they
will tell you that an understanding of culture is one of the greatest contributors to
success, while lack of understanding is one of the greatest contributors to failure.
This book has given you a framework for learning the why of other cultures. We
also have shown how to apply cultural understanding to writing correspondence
and negotiation. It is now up to you to put this knowledge to use. In this chapter,
we will apply this knowledge by discussing the 1998 merger of Daimler-Benz AG
and Chrysler Corp. into DaimlerChrysler. In the process, we will:
• Identify cultural issues that affected the merger.
• Examine the role of intercultural business communication as a strategic tool for
success.
In the Appendix, we give you two additional cases for practice. We encourage
you to use this book as a guide. Good luck in this adventure that is just beginning.

Cultural Issues in the DaimlerChrysler Merger

Before we discuss the cultural issues that surfaced in the merger, we present an
overview of the history of the two companies.
 Intercultural Dynamics in the International Company 451

In Focus

THE HISTORY OF CHRYSLER

Chrysler started when Maxwell Motors became Chrysler Corp. in 1925, with Walter Chrysler as the president. In sub-
sequent years, Chrysler bought Dodge and produced De Soto, Plymouth, and Chrysler cars. During World War II,
Chrysler produced tanks and combat vehicles. After the war, Chrysler became best known for big powerful cars, but
with the Arab oil embargo in the 1970s, it ran into trouble. Consumers wanted smaller, fuel-efficient cars, and Chrysler
could not deliver. Lee Iacocca became president of Chrysler in 1978. When the company faced bankruptcy, Iacocca
was able to secure federal loan guarantees of USD 1.5 billion. Under Iacocca’s leadership, Chrysler thrived and was
able to repay the loans seven years ahead of schedule. In the 1980s, Chrysler’s fortunes soared with the introduction
of the minivan. Chrysler and Mitsubishi Motors started a joint venture in the mid-1980s under the name Diamond Star
Motors Corp. In 1987, Chrysler bought the Jeep brand, thereby adding another popular vehicle to the Chrysler lineup.
The cooperation with Mitsubishi ended in 1991, and Iacocca stepped down in 1992.
Chrysler, the smallest of the Big Three car companies (General Motors and Ford are the other two), was best known
for its creativity and ability to overcome obstacles. Under Eaton, Iacocca’s successor, Chrysler made significant
progress in quality and efficiency, and the company became the world leader in profitability per vehicle.
The merger with Daimler seemed to open up worldwide opportunities, but the merger did not last. Chrysler was
eventually sold to Cerberus, a private equity group.

HISTORY OF DAIMLER-BENZ
Daimler and Benz merged in 1926 to become Daimler-Benz AG. The company is best known for the Mercedes car, named
after the daughter of a race car driver who ordered 30 cars with the stipulation that they be named Mercedes. During
World War II, Daimler-Benz became a leading arms maker for Hitler, and it used slave laborers during that time. In the
1990s, the company paid huge sums of money as compensation and published a book about its role in World War II.
In 1997, it had revenues of USD 70 billion. It employed 300,000 workers worldwide. More than two-thirds of its revenue
came from outside Germany, and in the 1990s the company built plants in the United States and France.
In the 1980s, Reuter, the CEO, started on a path of diversification; however, when the company started losing money,
Schrempp ousted Reuter and took over. He reversed the diversification efforts and went back to Daimler-Benz’s core
business: luxury cars and big trucks. Schrempp alienated the Daimler Board and the shareholders with his flamboyant
and arrogant style. He was ousted and replaced by Zetsche. After the end of the DaimlerChrysler merger, the company
became Daimler AG. The company still has a 19.1 percent stake in the Chrysler Holding Company.

Preparation and Training

It was one thing to announce the merger; it was an entirely different thing to make
the merger work. Three international accounting firms, four investment banks, and
six corporate law partnerships worked on the merger. Clearly, both sides focused
on financial, regulatory, legal, and business issues. As we will see, those issues
played a major role; however, the merger almost was derailed over cultural issues.
To deal with internal merger issues, the company appointed 28 integration
teams that set out to mesh the two corporations. The integration teams started their
work in 1998 and officially finished in 1999; however, in a global company, inte-
gration is an ongoing task. The members received some intercultural training, but
they complained that the training was not very helpful and got stuck in stereotypes.
For example, the Germans were told that Americans are superficial and that an
452 Chapter 12

invitation does not mean anything. When a German executive came to Auburn
Hills, he therefore booked a hotel room even though his American counterpart had
invited him to stay at his house. He was very surprised that the American not only
picked him up personally at the airport but actually took him to his home. The
Americans had been told that Germans are stiff and that form and politeness are
crucial: “Never, never greet a German with your hands in your pocket if you want
to be taken seriously.” When the Americans met the Germans in Stuttgart, they
were surprised that quite a few of the Germans had their hands in their pockets.6
It seems that most of the training focused on cultural stereotypes and aspects
that can be observed rather than the underlying reasons for behavior. The resulting
stereotypes did not foster a systematic approach to studying and observing other
cultures. Both German and American employees of DaimlerChrysler were frus-
trated because they did not learn why Germans or Americans behave as they do.
Since many employees from the other side did not behave as the trainer had said
they would, both Americans and Germans concluded that the training was not
helpful. However, effective cultural training could have helped them understand a
number of business and management practices that slowed the merger process.

Attitudes toward Management

There were numerous cultural differences that the training did not address at all.
The Germans came to meetings with thick folders and a detailed agenda. They pre-
pared very detailed minutes of every meeting, whereas the Americans preferred
free-flowing discussions and wanted agendas as general guidelines. The Germans
wanted detailed summaries of previous meetings at the beginning of every session;
the Americans wanted none of that.
After studying the role of culture in international business communication, you
know that the German attitude toward meetings and agendas is related to a dislike
for uncertainty. Agendas provide order and minimize the risk that something un-
expected will happen. Americans, who are generally more willing to accept un-
certainty, prefer a more flexible approach.
As the case at the beginning of the chapter pointed out, a decision was made to
make English the official company language. The Americans who would deal with
Germans on a regular basis were relieved because there was no need to learn the
German language. When John Craig and Daniel Wilson went to their first meet-
ing in Stuttgart, they were in for a surprise. During the official meeting everyone
spoke English; however, as soon as the meeting was officially over, all the Ger-
mans switched to German. John and Daniel did not understand a word and decided
that a few German lessons might be helpful after all.
The Americans were worried that the Germans would discuss the important
points in German and leave the Americans out of the process of the discussions.
The Germans, who spoke very good English, nevertheless were worried that their
English might not be good enough to get all the nuances of the language.
The two sides also had to come to terms with different approaches to formal-
ity. The German members of the integration team called each other Mr., using last
names. The Americans, being used to first names, thought the Germans were stiff
 Intercultural Dynamics in the International Company 453

and unfriendly. The issue did not disappear when the Germans agreed to use first
names because in German there is also the distinction between the informal you
(Du) and the formal you (Sie). Typically, the informal you is used with persons one
knows well. At the workplace, first names and Du hardly ever are used. The Germans
tried the awkward combination of Sie and first names when the Americans were
around. Gradually the Germans eased up and used first names with Du on a more
regular basis.
The corporate cultures were very different as well. At Chrysler, executives ate
in the executive dining room; in Stuttgart, executives ate in the same cafeteria with
the workers even though generally Germans are more formal than Americans. In
contrast, the Americans did not use titles, whereas in Stuttgart titles were impor-
tant. Almost all top managers at Daimler had international experience. In fact, in-
ternational assignments were considered a must on the way to the top. They had
been in South Africa, South America, North America, and all over Europe. Also,
they all spoke English and frequently a second foreign language. At Chrysler, in
contrast, almost nobody even had a passport, and nobody at the top spoke a for-
eign language.
The majority of upper management at Daimler-Benz had been with the
company for a long time. Schrempp, for example, had started his career as an
apprentice at Daimler. Most managers had a technical and/or engineering back-
ground. As a result, they focused on technical designs and technical quality. Typi-
cally, engineers at Daimler decided what a new car would look like. It was almost
unheard of to collect information relating to design from consumers. After all, the
crucial aspect was technical perfection. Driving was a serious business; there was
no place in cars for cup holders, for example. Chrysler managers, by contrast,
came from a variety of backgrounds, including marketing and finance. Although
some had been at Chrysler for a number of years, many had gained experience at
other automobile companies or even in other industries before joining Chrysler.
The different approaches to cars and their design had an impact on views of cor-
porate reputation. At the beginning, there had been talk of sharing technology and
platforms. However, Daimler engineers were concerned about giving their first-
class technology to a mass-market car company. Purchasing was to be consoli-
dated, but it turned out that the differences were so huge that little consolidation
would be possible.

Attitudes toward Compensation

In the summer of 1998, the German magazine Stern ran an article comparing the
pay of a Daimler employee to that of a Chrysler employee. The article showed pic-
tures of the houses of employees and talked about their vacations, hobbies, and
work schedules. It also compared the pay of two supervisors, both before and after
taxes.7
The German employees knew that they were among the highest-paid workers in
the world. There was some fear that the merger would have a negative impact on
German pay. By showing that the two supervisors in the story had comparable pay
packages, the article helped reduce or eliminate that concern. It was interesting to
454 Chapter 12

note, however, that the German and American supervisors had very different prior-
ities for spending their money. The German employee spent much of his money on
his house, garden, and furnishings. The American employee also had a nice house
but spent most of his disposable income on short vacations and eating out.
The difference in pay at the employee and supervisor levels might not have been
that great; however, this was not true at the expatriate level. Daimler saw an expa-
triate assignment as a regular and required step on the ladder to the top. Expatriate
packages therefore were small by American standards. However, on international
flights, Daimler executives went first class. At Chrysler, only a few top executives
were allowed to go first class, but compensation for foreign assignments was lav-
ish by German standards. As the case at the beginning of this chapter pointed out,
expatriate compensation became a big issue in the merger process. Ultimately,
both sides gave a little. The attitude toward expatriate pay speaks volumes about
attitudes toward international business. At Daimler, international experience was
considered a prerequisite for success, whereas at Chrysler it was considered some-
thing unique that merited special compensation.
The difference in compensation, however, was most pronounced at the execu-
tive level, particularly for the CEO. At the time of the merger, Eaton received about
USD 11 million a year, including stock options. Schrempp, by contrast, received
about USD 2 million. In fact, the top ten people at Daimler-Benz made USD
11.3 million together, about the same as Eaton made by himself. In addition, under
German law, individual executive pay does not have to be disclosed. Publication
of the aggregate pay of the top earners is sufficient. Under American law, however,
individual compensation must be disclosed. Rumors in Germany were flying that
Schrempp’s main goal for the merger was to receive an American-style salary
under German disclosure laws.
After the merger of Daimler and Chrysler, compensation for German CEOs and
upper management went up considerably, a development that received much neg-
ative press in the German media. As a result, employees, stockholders, and the
public began to ask for more transparency and more disclosure of executive pay.
While some changes have occurred, the debate is ongoing with no clear solution
in sight.

Regulatory Issues
Because of government regulations, the new company was incorporated in
Germany. That had some unintended consequences. Since DaimlerChrysler was
incorporated under German law, the Standard & Poor’s (S&P’s) 500 no longer
listed the company. Under existing law, U.S. pension funds no longer were
allowed to invest in the company. The pension funds therefore sold their holdings
in Chrysler.
DaimlerChrysler stock was listed on 12 international stock markets, becoming
the first truly international stock. It was traded around the world in local curren-
cies rather than as repository receipts. When traded as repository receipts, shares
are deposited in the bank and then dollar-denominated receipts are issued against
them. The rate of currency fluctuation therefore always plays a role in trading.
 Intercultural Dynamics in the International Company 455

With the trading of common shares in the local currencies, the conversion cost can
be avoided. The shares can be traded at 12 different stock markets without incur-
ring conversion costs.
Under German law, labor and banks sit on the board to look at the long-term
health of the firm. Since the bank is not going to sell the stock, it is not concerned
when a stock goes down, as long as the company seems to be healthy in the long
run. American investors, in contrast, look for returns and fast results. As a result,
American investors follow the stock market very closely and require explanations
when a stock goes down. When Schrempp became CEO, he asked the board mem-
bers of Daimler what the Daimler stock price was. Only one of the members gave
an answer, and his estimate was not close to the actual price. None of the others
even ventured a guess. In the American context, it would be unethical and irre-
sponsible for a board member not to have the latest information on a company’s
stock price.
Germany requires two financial reports a year, whereas the United States re-
quires four quarterly reports each year on a timely basis. Usually, U.S. corpora-
tions announce expected results two weeks before the end of the quarter and actual
figures right at the end of the quarter. Since American investors want fast and
timely information, they would not accept two reports per year as sufficient infor-
mation. The timing of reports and announcements created a problem as well. For
example, Stuttgart would make announcements in the morning, when it was still
night in the United States. By the time the Americans got the information, it was
old news. The time lag became a big issue and was seen as proof that the Germans
were excluding the Americans intentionally in an effort to gain total control.

Reports on the Merger

In this section, we will look at attitudes toward the merger over time as reported in
the media. As you will see, those attitudes varied.
Throughout 1998, views of the merger were generally positive even though
cautionary voices spoke as well. From the beginning, there was concern that the
merger was not a merger of equals but a takeover of Chrysler by Daimler. There
also were articles in the business press in both countries warning of major culture
clashes, but most of those articles talked in general terms rather than giving
specifics.
That changed fairly dramatically in 1999. Increasingly, reports were critical of
the slow speed of integration. For example, it took 25 percent of 300 managers’
time to work out the details of the merger, time that those managers did not spend
producing and selling cars. Schrempp came under criticism as well. He was seen
as tyrannical and dictatorial by the American public and by Chrysler employees in
Detroit, where he was firing executives at Chrysler to gain complete control. The
board of directors, which had started out with an almost even split between
American and German members, increasingly looked German. By October 1999,
the board had eight Germans and five Americans.
Critics charged that there was a war of cultures and that Schrempp was not able
to build a new culture. Rather than the promised merger of equals, Chrysler was
456 Chapter 12

organized as an American subsidiary of Daimler. Some voices went so far as to

recommend dissolving the merger.8
By fall 2000, the stock had dropped from a high of USD 108 to USD 45. Fore-
casts were gloomy, and Chrysler had run into serious problems. Sixty percent of
the value of the stock had been wiped out since its high. Eaton had left before his
three years as Co-CEO were up, and his replacement, Holden, was fired by
Schrempp, who sent his own person, Zetsche, to Auburn Hills in the United States.
Critics talked of a cultural drama of Shakespearean proportions and the selling of
an American icon to dictatorial and power-hungry Germans.9
Morale at Chrysler took a nosedive. Suppliers were unhappy when Zetsche, in
an attempt to cut costs, asked them to lower their prices. Gradually, there was a re-
alization that Chrysler’s problems were not all of Schrempp’s making. The com-
pany had been heading for trouble before the merger. Some people felt that Eaton
had known about it and was glad to get out of a potential mess. He took his money
and left.
Up to that point, Schrempp had been criticized for being high-handed. Now he
also was criticized for not being decisive enough and not moving fast enough. The
merger had been mismanaged, and the intercultural communication was disas-
trous. Know-it-all Germans had been greedy for Chrysler’s distribution system
and marketing ability. But it was clear now that there seemed to be irreconcilable
differences in marketing and engineering philosophies.
The conclusion at the end of 2000 was that the merger had failed miserably, that
there was no synergy, and that the cultures were too different to be able to work
together.
While DaimlerChrysler was still trying to merge as one company, Schrempp
bought a controlling share of 34 percent of Mitsubishi Motors, arguing that the
company needed a presence in Asia if it wanted to be a global player. Earlier, he
had toyed with the idea of buying Nissan, but Renault took that company.
In May 2001, after DaimlerChrysler had bought a controlling share of
Mitsubishi, Mitsubishi, one of the smallest Japanese automakers, reported
USD 750 million in pretax losses on sales of USD 31 billion for the year 2000.
Mitsubishi sales had dropped 17 percent in the first part of the year. Quality prob-
lems, lack of a clear production focus, and a cash crunch had contributed to the
problem. Schrempp had known about the problems at Mitsubishi when he bought
parts of the company. He had sent Rolf Eckrodt to Japan to reverse the fortunes of
Mitsubishi Motors. Eckrodt had a tough task ahead when he arrived at Mitsubishi
Motors in Japan in January 2001.
Eckrodt had experience in restructuring ailing carmakers. In particular, he had
been the key player in restructuring Daimler’s subsidiary in Brazil, where he had
earned a reputation for being ruthless in laying off workers and reorganizing the
company. The Japanese, aware of his tough style, were apprehensive when he ar-
rived and made it clear that they were not just going to take orders from Germany.
Sonobe, Mitsubishi Motor’s CEO, was no pushover. He had been responsible for
Mitsubishi’s turnaround in the United States, and he felt that he could do the same
for the parent company in Japan. When Eckrodt first arrived in Japan, he and
 Intercultural Dynamics in the International Company 457

Sonobe had long talks about the best strategy for solving the problems. They were
going to work together; however, when Mitsubishi had to recall 1.36 million cars
because of quality defects, Eckrodt decided that the time had come to act
decisively.
In March 2001, Eckrodt replaced five Japanese top executives with Germans.
The Japanese were stunned, particularly since four of the Germans were under
40 years of age. He then decided to cut costs, lay off 9,500 workers, sever ties with
one-third of the suppliers, and reduce the number of automobile models on the
production line.10
In March 2002, Eckrodt ousted Sonobe as CEO of Mitsubishi Motors and took
the job himself. In the same month, the company announced that Mitsubishi Mo-
tors had returned to profitability, made steady progress in its turnaround efforts,
and surpassed the targets set for cost reduction. The company was determined to
accelerate the turnaround plan on the basis of the positive results.11 The Japanese
had mixed reactions. Some saw the changes as a violation of fundamental cultural
values that value lifetime employment and seniority. Others saw the changes as
necessary if the Japanese company was to survive. Most of the Japanese agreed
that the changes could not have been made by a Japanese manager. As the open-
ing case in this chapter mentioned, the union between DaimlerChrysler and
Mitsubishi was dissolved in 2005. The Japanese Mitsubishi Keiretsu circled the
wagons and supported its own member when DaimlerChrysler refused to put more
money into Mitsubishi Motors.
When the merger of Daimler and Chrysler was first announced, newspapers,
magazines, television, and radio ran numerous stories about this new company. To-
ward the end of the merger the stories no longer celebrated the “sexy” global
merger but concentrated more on the problems. The dissolution of the merger re-
ceived comparatively little coverage.
The stock, as the opening case pointed out, had been on a roller coaster. After
an all-time high of USD 108, it slumped to a low of USD 26 and finally recovered
to USD 46 in 2006. However, the stock price was not just a result of the merger is-
sues; it must also be seen in the context of the general pattern of the stock market
since 2000. Some manufacturing processes in DaimlerChrysler merged success-
fully, and production managers from the two companies did become comfortable
with each other. Zetsche, who had been greeted in Auburn Hills with great suspi-
cion, seemed to fit in after all. Even Yokich, the boss of the United Auto Workers
labor union, liked him in spite of the fact that 26,000 hourly and 6,000 salaried
jobs had been lost. Gradually, Zetsche seemed to turn Chrysler around. At the
same time, Schrempp lost his power. Layoffs in Stuttgart did not help. Zetsche re-
placed Schrempp, but to the very end Schrempp stood by the merger and insisted
that it would eventually be very successful in spite of any difficulties. However, in
2007 Daimler sold the Chrysler company and the merger ended.
Today, following the economic crisis of 2008–9, the Chrysler company is in
bankruptcy; its stock is not traded. The future of Chrysler is uncertain; it might
continue, be bought by another auto company, or disappear completely. The
Daimler AG stock trades in the low USD 30 range.
458 Chapter 12

Intercultural Business Communication

as a Strategic Tool for Success
As the DaimlerChrysler case illustrates, businesspeople are members of their
national cultures. Eaton, CEO of Chrysler, and Schrempp, CEO of Daimler,
brought their cultures to the negotiation table, and so did the members of the inte-
gration teams. In addition, they brought their respective corporate cultures, which
are influenced by the national culture. The two corporate cultures also are embed-
ded in the culture of the automobile industry. The web of cultural connections goes
all the way down to the line workers in the two companies. A worker on the as-
sembly line may not always be aware of the cultural context, but the influence is
there nevertheless. One of the biggest tasks is to bridge the culture gap so that work
teams can focus on business tasks.
All international companies face cultural issues, particularly in mergers and
joint ventures. To build on the potential synergies of cultural diversity, companies
need to:
• Create awareness of the process of intercultural business communication and
understand ways to communicate about culture and to communicate by using
culture.
• Develop an understanding of the dynamics of culturally diverse groups.
• Place the communication process and the dynamics of diverse teams in the con-
text of corporate strategy.

The Process of Intercultural Business Communication

Intercultural business communication has three parts, as illustrated in Exhibit 12.1:
cultural strategy, business strategy, and communication strategy.12 The list of
variables in each circle is not complete. You may think of additional aspects that
influence each circle, but the variables listed are the major ones. A company may
have influence over some of those aspects, whereas others are beyond its control.
For example, national laws concerning mergers, government regulations con-
cerning the listing of foreign companies and stocks, and reporting regulations
affect the business strategy but are beyond the direct influence of a company. The
company has to understand the rules and regulations to avoid violating them, but
it cannot change them. They are a given. DaimlerChrysler had to comply with
German reporting rules. Even if American investors want more information, the
company is not bound by their requests. DaimlerChrysler may agree that four
quarterly reports are good for investor relations but may decide that two reports
provide all the necessary information.
The particular business strategy a company develops also is influenced by the
competition the firm faces and the position of its products. For example, Daimler
wanted to get a foothold in the broader automobile market in addition to the lux-
ury market. It hoped to do that by joining with a company like Chrysler. Schrempp
furthermore hoped that a broader product line with lower-cost products would help
 Intercultural Dynamics in the International Company 459

EXHIBIT 12.1 Intercultural Business Communication Strategy

Desired Level of Rules Adhering/Bending

Internationalization
Role of Role of
Competitive Size of Firm Individual Hierarchy
Position
Corporate
Economic Culture Form and Role of
Climate Business Strategy Status Intercultural Gender
Strategy
Position of HR Practices Attitudes
High Context/
Product toward
Government Low Context
Uncertainty
Structure Regulation
Willingness
of Firm Financial and Laws Cultural
to Take
Health of Sensitivity
Risks
Firm

Intercultural Business
Communication Strategy

Corporate Communication
Policy
Individual Corporate
Goals Goals
Availability of Position
Technology in Firm
Corporate Strategy
Language Purpose of
Verbal/Nonverbal Communication
Personal Preference
of Channel
Technical Awareness
Background of Audience

the company’s expansion into Asia. Eaton saw international expansion as a way to
stay competitive. Daimler offered an opportunity for Chrysler to become a player
in Europe, with Daimler’s high-quality products that appealed to a luxury market.
At the time of the merger, both companies seemed to be in sound financial po-
sitions. Their practices were different, as we discussed earlier, and so were their
corporate cultures, but both sides thought that those differences would not present
major obstacles. Overall, the two companies seemed to be a good fit for a merger.
In the circle identifying intercultural strategy in Exhibit 12.1, we list ten
variables. You have learned about cultural attitudes relating to hierarchy, change,
risk, and the individual versus the group, among many others. The DaimlerChrysler
case shows that the Germans and the Americans had different cultural priorities.
When Mitsubishi joined the mix, the cultural factors became even more complex.
460 Chapter 12

The cultural differences find expression in the role of rules and formalities and
views on risk and uncertainty, the promotion of women, and communication
styles. In addition to national culture, there are other cultural variables, such as
corporate culture and professional culture. Different professions have different
cultures. For example, accountants have a different culture than do human
resources (HR) managers. To some extent those cultures overlap, but they are also
distinct.
The third circle focuses on communication strategy. The particular communi-
cation strategy is influenced by ten factors that we have discussed throughout
this book.
The dynamics of communication in a company are shaped by the people in the
firm. Managers develop policies and standards on corporate communication, but
within that framework individuals can develop their own styles and preferences as
long as they stay within corporate guidelines. In the DaimlerChrysler situation,
members of the integration teams were not allowed to communicate with anybody
outside the team, and communication between teams was heavily regulated as
well. Confidentiality was seen as crucial so that team members would not be in-
fluenced by outside pressure groups. However, outside the specific issues of the
merger process, both American and German companies are more transparent than
Japanese companies. American companies are the most transparent. Legislation
enforces rules on corporate reporting and communication with all stakeholders.
German firms are less transparent, as reporting requirements for executive pay
illustrate. Japanese firms are the least transparent in this group. Also, when
Mitsubishi Motors ran into serious problems, the keiretsu stepped in to support one
of its own members.
Frequently, the communication process is depicted in the model illustrated in
Exhibit 12.2, which identifies a sender, a message, and a receiver of the message
(see also the Process Model of Communication, Exhibit 5.1, in Chapter 5). A feed-
back loop indicates that communication is an interactive two-way process. How-
ever, the model does not provide details of the complexity of the relationships
between people, businesses, and cultures. It merely shows that there are at least
two parties involved.
In the case of the merger of Daimler and Chrysler, the model should show that
representatives from Daimler and Chrysler discussed the merger; however, there
is nothing in the traditional model that specifically relates the process to business
or deals with group dynamics. In Chapter 1, we discussed the roles of perception
and schemata in communication. Since we cannot enter the mind of a person we
are communicating with, we ultimately communicate with our schema of that per-
son. Now imagine this process involving not just two people but a group of ten

EXHIBIT 12.2
A Traditional Message
Communication Sender Receiver
Model Feedback
 Intercultural Dynamics in the International Company 461

people who all bring their own cultures to the business at hand. The potential con-
flict between reality and perception is multiplied. The approaches to solving con-
flicts, establishing goals, and collecting information, to name just a few regular
business tasks, combine to become a huge endeavor. In the case of Daimler-
Chrysler, the situation became even more difficult because the players of the inte-
gration teams were expected to step outside their own cultural orientations and
create a new company with a new culture that fit into both the German and the
American national cultures.
Frequently, businesses sidestep a discussion of the communication process and
focus on the way a business strategy affects corporate goals, work units, and indi-
vidual employees (see Exhibit 12.3). This model shows as a corporate strategy that
Daimler and Chrysler decided to merge. At the upper-management level, the goals
for the merger were spelled out, such as economies of scale in production, access
to new markets, and greater international competitiveness. The specific business
units and the individuals in these units then worked out the details. However, we
do not learn anything from this model about the interaction of people or the cul-
tural variables of the interaction. In this case, it seems at times that the CEOs
thought they could simply decree the merger by saying that it would be done be-
cause that was the strategy. But the case also makes it clear that this approach does
not work unless business strategy and intercultural business communication are
connected.
For an international businessperson, it is the interaction of the three circles in
Exhibit 12.1 that is the exciting part. Throughout this book, we have shown the
connections between those three variables. When Juergen Schrempp from
Stuttgart, Germany, and Robert Eaton from Auburn Hills, Michigan, discussed a
possible merger of their companies, they brought their cultural backgrounds with
them, but in the process of discussion they also started the potential growth of a
new corporate culture. They took something from both environments and hoped
to create something new. In that effort, both Schrempp and Eaton needed to un-
derstand how businesses function in the other country; they needed to understand
the relationships between culture and business and needed to understand the dy-
namics of communication in both cultures. They needed to understand their own

EXHIBIT 12.3 Corporate Strategy

Strategy Model

Corporate Goals

Unit Goals

Individual Goals
462 Chapter 12

national and corporate cultures and where differences could be significant. The
same process is at work when a joint venture is formed.
As the three variables interact, a new construct, an intercultural business com-
munication strategy, emerges.13 Intercultural business communication means we
have to be aware of the role of each circle. At DaimlerChrysler, for example, the
participants in the merger negotiation had to look at the strategic goals of the two
companies, the cultural environments of both companies, and the communication
practices of both companies. Building upon that background, they then could start
to develop an intercultural strategy to achieve the goals of the merger.
As the case has illustrated, the two companies came from different realities in all
three circles. Germans and Americans both lean toward egalitarianism rather than
hierarchy. Germans tend to use titles, and protocol is important, but advancement
tends to be based on skills and merit. However, they are very different when it
comes to acceptance of uncertainty and the role of the individual versus the group.
Americans have an orientation toward individuality and are willing to tolerate un-
certainty to a much greater degree than Germans are. Germans therefore want tight
rules and regulations and formalized work processes.14 A background in a techni-
cal field such as engineering, and an academic title guarantees that a person is an
expert and has the background to do the job. This view is reflected in the corporate
officers. Of the nine officers in 2006, one was Canadian, two were from the United
States, and six were Germans. Among the six German executives, three had Ph.D.
degrees. Americans are less impressed with academic titles.
It is noteworthy that there were no women in top management or on the Super-
visory Board. In the initial merger negotiations, the Americans at times felt like
unsophisticated country cousins. As the case points out, hardly anyone at Chrysler
had a passport prior to the merger, and although the executives had college de-
grees, nobody had a Ph.D.
Because of their dislike of uncertainty, Germans rely on form. From an Amer-
ican point of view, they appear stiff. Americans, in contrast, appear insincere in
their informality. The German executive arriving in Auburn Hills thought that the
invitation to stay at the American’s home was a mere figure of speech without any
meaning. Zetsche, however, had had work experience in America. He knew how
to read signals more effectively and made it a point to adapt to American infor-
mality, a move that helped his acceptance in Detroit. For example, he joined civic
organizations and mingled socially at community affairs. The case also illustrates
the problems of stereotyping and focusing on the visible how-to culture. It seems
that much of the training did not go beyond a list of dos and don’ts. The partici-
pants were not taught to look behind the façade and become familiar with the
backstage culture, or the why of the culture.
In the beginning, the differences almost derailed the merger, and it took time to
see any synergy that could result from cooperation. In the end, the new company
never was able to overcome the cultural differences even though Zetsche tried
hard. As the environments change, the intercultural business communication strat-
egy will change as well. When Zetsche came to Detroit, Chrysler was in bad shape.
He had to develop a strategy that fit that particular situation. Although he left no
 Intercultural Dynamics in the International Company 463

doubt that he was the boss, he also worked to establish his credibility and gain the
trust of the American workers. Zetsche proved that he could adapt his communi-
cation strategy. He listened to the people around him, and he observed the com-
munication process and practices. Schrempp, on the other hand, was widely
criticized for not being able to adapt to the changing communication dynamics
around him. In the beginning, Schrempp was hailed as a great and decisive leader,
but increasingly his critics pointed out that he did not listen and could not see that
his style might alienate employees, the public, and the Board of Directors. Zetsche
had better intercultural communication knowledge and skills, and the ability to im-
plement them, but the two sides could not overcome the problems.
The news reports of the merger tended to concentrate on the key players, but it
is clear that much of the work had to be done by people below the executive level.
Employees at both Daimler and Chrysler worked on the merger. They worked
within their companies and then in joint teams. Before Daimler’s and Chrysler’s
cultures could be truly merged, Schrempp had brought in Mitsubishi, and a third
and very different culture became part of the company. We have discussed how
Exhibit 12.1 models the German–U.S. interaction; consider how it models the
German–U.S.–Japanese interaction.

Dynamics of Culturally Diverse Teams

In an era of globalization, most people work in an environment of cultural diver-
sity. Increasingly, companies rely on teamwork, arguing that diverse teams make
better decisions than do homogeneous teams; however, better performance does
not come automatically. Culturally diverse teams face many challenges.
As you have learned, people from different cultures have different approaches to
making decisions, solving problems, and negotiating deals. They view the world
differently. Westerners tend to have a linear view of the world with an either-or ap-
proach, whereas Asians have a more holistic worldview that is inclusive of contra-
dictions. Although the top executives at both Daimler and Chrysler were either
German or American, the employees and managers had a variety of backgrounds.
Daimler employs many Turks and people from Eastern Europe. Chrysler in many
ways reflects the cultural diversity of the American population at large. You can see
similar situations in almost all major corporations around the world. For example,
in one Swiss multinational company, all work teams are culturally diverse. In a team
of ten people, it is not uncommon to have four or five nationalities represented.
Even if the majority of the team members are Swiss, the cultural diversity still can
be a major issue. The Swiss Germans, Swiss French, and Swiss Italians all come
from different cultures and speak different languages. The cultural and communi-
cation dynamics in such groups are complex and at times confusing.
Three areas of cultural difference are especially likely to be sources of
problems:
• Direct versus indirect communication
• Different attitudes toward hierarchy and authority
• Different norms for decision-making (when it is time, who makes a decision, how)
464 Chapter 12

Several things are sure:

• Multicultural teams will be more and more common
• Well-functioning multicultural teams are important to organizations
• Culture is the most significant difference among team members, because cul-
ture determines how people interact, and how they deal with conflict
• Cultural differences have the potential to add value to organizations and the
potential to create divisions among people.
• Therefore, Cultural Intelligence (CQ) can play an important role in the way
culturally diverse teams operate.
To harness the potential of culturally diverse groups, businesses need to spend
time developing those groups by creating cultural awareness, understanding, re-
spect, and appropriate behavior—in other words, CQ. The material in this book is
at the heart of that process.
As you probably know from your own experiences in group projects, groups do
not become productive automatically. It can be a long process. For example, it took
months for the team at DaimlerChrysler to develop a brochure for expatriation
strategies. For nearly a decade, the two entities tried and failed to be one cohesive
unit, and they finally split. During the entire time of the merger, some people argued
that the integration teams did not work fast enough, whereas others argued they did
not take enough care to work out important details. It was a no-win situation.
On the surface, the team-building phase is not always productive. Talking about
building a cohesive team seems to get nowhere. Critics, for example, charged that
managers were wasting 25 percent of their time on integration aspects rather than
building and selling cars. From that viewpoint, bringing together culturally diverse
teams takes attention away from the actual business task.
Most managers do not receive training in developing culturally diverse teams
that communicate effectively; they do not see culture as a variable that has a huge
impact on business functions. According to this view, training in intercultural com-
petence may be a nice add-on but is not a crucial element in success. This view is
represented by the attitude that a good manager at home is a good manager any-
where. Goal orientation and focusing on the task at hand are seen as the ingredients
that guarantee success. In the case of DaimlerChrysler, this became clear when
German managers thought that an American company could be run the same way
as a German company, and the Chrysler people thought that they certainly could
not learn anything from a foreign manager. In fact, the perception by each side that
its way was the right way contributed to many of the problems of the merger. Both
sides may have paid lip service to understanding cultural differences, but deep
down both “knew” they were right.
With this view, a manager usually assembles a team and gives a charge to the
team. Particularly in low-context cultures, a manager may expect the team to focus
on the task at hand and not get “personal.” The belief is that a rational and analyt-
ical discussion, which is culturally value-free—as if such a thing exists—will get
the fastest and best results. In the DaimlerChrysler case, both companies were
 Intercultural Dynamics in the International Company 465

from Western cultures, yet they faced huge problems in their discussions. If
companies from very diverse cultures are involved, the approaches to task orien-
tation and problem solving are likely to be even more different.
Not all culturally diverse teams are the same. We can identify destroyer teams,
equalizer teams, and creator teams.15

Destroyer Teams
Destroyers are teams that cannot agree about what to do, and even more impor-
tantly, how to do it. Members of these teams do not trust each other. When team
members are from results-oriented cultures, they may not pay enough attention to
relationships. They may be disappointed at what appears to be not enough atten-
tion to building good relationships. When team members are from relationship-
oriented cultures, they may be disappointed that members of other cultures devote
most of their attention to results rather than relationships.
When people do not trust each other, they tend to think in negative stereotypes.
Team decisions in destroyer teams are often made by leaders without team mem-
bers’ participation.
In one extreme, the destroyers will argue that nothing is possible and that there
is no way to cooperate. In the beginning of the DaimlerChrysler merger, for
example, there had been talk about synergies in the areas of sharing technology,
automobile parts, and marketing. Destroyers on both sides of the Atlantic, how-
ever, argued against this. Daimler did not want to risk its reputation of luxury and
high quality by putting its parts into “cheap” cars, and Chrysler did not want to
contribute its marketing knowledge. As a result, team members representing both
sides blocked the team effort and thus the intercultural integration efforts.

Equalizer Teams
The equalizer teams have few or no disagreements and come to decisions without
conflict. They are more difficult to spot because everything they do seems to go
according to schedule and plan. They work together and make decisions. However,
the decisions may come too fast, and then the team does not build on the unique
opportunities and different viewpoints that the team members bring to the table.
They want to get along. As a result, groupthink takes over. Groupthink is a term
for a willingness of teams to agree that is so strong it leads people to close their
minds to problems. The desire to conform and avoid disagreements is so great that
people do not think critically or point out problems with what others are saying. In
trying to keep disagreements at a minimum, these teams also keep innovative ideas
at a minimum. Organizations are disappointed that their work is ordinary, and not
better than monocultural teams.
Why do these smoothly operating teams disappoint? Sometimes people who
would like to offer different points of view feel they never get a chance. They may
be unsure of how to present an alternative opinion, or they may worry others will
criticize them for being uncooperative. Some cultures value harmony to the point
where speaking against something is viewed very negatively. Some people take
466 Chapter 12

time to work through ideas in their minds, then have something to say, only to find
the group has moved to some other point. They do not feel comfortable speaking
up after everyone else has moved on.
Typically, equalizer groups say: “There is nothing to this culture bit. It is hugely
overblown. We are all people with the same interests, and we all agree.” After the first
few months, some managers at DaimlerChrysler felt that team members from the two
sides were working together just fine. They said the cultural differences had been ex-
aggerated. Perhaps a few had different ideas, but overall there was no problem. By not
admitting that there are differences, equalizer teams never openly face their differ-
ences and build on their different expertise. They tend to be satisfied with mediocrity.

Creator Teams
Creator teams are high-performance teams that acknowledge and make use of cul-
tural differences. They take the time to work through their differences, a time-
consuming process but one that is well worth the effort in the long run. Creator teams,
as authors DiStefano and Maznevski argue, go through several stages.16 Culturally
diverse teams in an international business environment face additional challenges.
Creator teams are rarer than the other two types, but they are most valued by
organizations because their work is better than teams without diversity. The mem-
bers are not necessarily better on their own, but the way they interact brings out
the best in everyone.
The creator teams succeed because they respect cultural differences, and keep
them in focus while they work. Members try to understand one another, bringing
knowledge and learning to the teamwork. This corresponds to the knowledge com-
ponent in CQ. Team members also try to find ways to connect with each other.
Team members try to use their cultural differences, not ignore them, and see how
differences can contribute to better teamwork. The desire to connect corresponds
to the motivation component in CQ.
Finally, creator teams use communication behavior that makes sure everyone
has a voice and each voice is taken seriously. They urge participation by everyone.
They explore reasons why some people are not speaking: shyness, taking time to
reflect, unwillingness to say something that is contrary to others’ opinions. Cre-
ator teams also take time to resolve conflict, and try to use an integrating commu-
nication style in a collaborative mode. We could say each member has concerns
for everyone else’s face. This communication style corresponds to the behavior
component of CQ.
Obviously, it takes time to learn and understand other team members’ cultures;
it takes time to listen and draw out opinions, and it takes time to resolve disagree-
ments. Successful teams do not operate well automatically. It can be a long
process.
Often the teams who are responsible for complex cultural management, such as
teams formed when two companies with different cultures merge, are pulled in dif-
ferent directions. Some people may say they are taking too long to merge two com-
panies, while other people may complain that they are not taking enough time to
do it carefully.
 Intercultural Dynamics in the International Company 467

EXHIBIT 12.4 Stages in the Building of Culturally Diverse Teams

Creating Self- Developing
Awareness of Bridging Gaps Intercultural
Mapping
One’s Own and Identifying Strategies for Assessing
Cultural
Culture and Potential Specific Results
Differences
Personal Synergies Business
Style Tasks

Now let us examine in more detail the factors that make creator teams more
successful than equalizer or destroyer teams. Five factors that make good multi-
cultural teams are:
• Creating self-awareness
• Mapping differences
• Bridging gaps and identifying synergies
• Developing communication strategies
• Assessing results
Exhibit 12.4 illustrates the stages for developing successful multicultural cre-
ator teams.

Creating Self-Awareness
At the beginning, team members need to become aware of their own cultural pri-
orities. In earlier chapters, we discussed this process in the context of the self-
reference criterion. Since a culture is normal to a native of that culture, few people
consciously develop critical understanding of their own culture. CQ calls this re-
flection and awareness meta-communication. It is almost a kind of thinking about
thinking. A word that helps describe it is mindfulness. When we are mindful of our
own culturally based ideas, we are more open to the ideas of others.
Frequently, the development of such awareness is undervalued because it is as-
sumed that people know their own priorities and cultural inclinations. However, a
lack of self-awareness can hinder a solid understanding of the cultural priorities of
the other group members.17 Conscious self-awareness also can help identify and
overcome one’s self-reference criterion, in which a person judges somebody else
on the basis of his or her own cultural priorities (also see Chapter 1).
Members of the integration teams at DaimlerChrysler needed to develop a con-
scious understanding of their own cultural priorities by asking questions such as
the following: What does it mean to be a manager at Chrysler? What are the val-
ues of a manager at Daimler-Benz? How do my personal values fit into this cor-
porate setting? What is important to me? How do we make decisions?

Mapping Differences
In the second stage, group members map their differences. They literally plot the
intensity of their cultural priorities on a piece of paper and compare the orienta-
tions of the various group members. This is a graphic illustration of where team
468 Chapter 12

EXHIBIT 12.5 Mapping Differences

Linear 10
Holistic 0

Thinking and
Knowing

Egalitarian 10 Social 10 10 Doing and Doing 10

Hierarchical 0 Organizations 5 5 Achieving Being 0

5 0 5
10 10

The Self The Big Picture Monochronic 10

Polychronic 0

Individualistic 10
Collectivist 0

members stand in relation to values. For example, one team member may value
hierarchy, whereas another may dislike hierarchy very strongly. It may be helpful
if each team member enters his or her own value positions on the chart.
The chart resembles the spokes of a wheel (see Exhibit 12.5). Each spoke rep-
resents one of the five value categories we discussed in Chapters 3 and 4.
For each of those categories, we discussed several questions. Ideally, we would
include each question in the mapping diagram, but the amount of detail would get
confusing. Therefore, it might be more useful to select one or two of the questions
that are most relevant to the task at hand. For the integration teams at Daimler-
Chrysler, we could decide on the following questions for each of the categories:
• Thinking and Knowing
• How do people learn, from authoritative sources or from hands-on
experience?
• In what patterns do people reason?
• Doing and Achieving
• Is uncertainty avoided or tolerated?
• Are rules bent or observed?
• Are results or relationships more important?
• The Big Picture
• How is time understood?
• Are tasks done sequentially or simultaneously?
• Is change positive or negative?
• Who is in control of events, people or deities?
 Intercultural Dynamics in the International Company 469

EXHIBIT 12.6 Mapping Questions

Does knowing come
from concepts (0) or
experience (10)?

Social organizational In what patterns

patterns: Horizontal (10) or 10 do people reason?
hierarchical (0)? 10 Linear (10) Holistic (0)
10
Group membership: 10 Is uncertainty
Temporary (10) or
5 5 avoided (0) or tolerated (10)?
permanent (0)? 10 5 5

5 0
5 10
How important is Are rules bent (0) or
form? Yes (0) no (10) observed (10)?
10 5 5

5
5 10 How is time understood?
Is seniority (0) valued or 5 5 Are tasks done sequentially (10)
discounted (10)?
10 or simultaneously (0)?

10
The basic unit of society: 10 Is change positive (10) or
The individual (10) or the
10 negative (0)?
collective (0)?

Who is in control of
events, people (10) or
deities (0)?

• The Self
• Is the basic unit of society the individual or the collective?
• Is seniority valued or discounted?
• How important is form?
• Social Organizations
• Is group membership temporary or permanent?
• Are social organizational patterns horizontal or hierarchical?
If we include the two or three questions for each spoke, the diagram will look like
Exhibit 12.6.
For each question, team members can now enter their priorities on a scale from
0 to 10. The individual ratings carry a subjective judgment of a team member’s
priorities, but the completed diagram will indicate priorities and differences
among the team members.
The Diversity Wheel in Exhibit 12.7 is another way of picturing each team
member’s cultural identity, so differences and similarities among members can be
identified.
470 Chapter 12

EXHIBIT 12.7 The

My Work Environment
Diversity Wheel Function Level/Classification

Source: Adapted from Diverse Who I Choose to Be

Teams at Work, Gardenswartz Geographic
Location

tus nt
and Rowe (Irwin, 1995), p. 33.

Sta geme
Income Work
Marital
Who I am Content
Status/

na
Partnerships Age Civic/

Ma
Race Community
Gender Activities

Work Personality
Experiences Country Recreational
of Origin Habits/
Workers’ Hobbies
Affiliation Division/
Attire /
ion l Department/
e lig itua s Unit/Group
R pir ice
Work Skills/ S ct
a
Abilities Educational Pr
Background
Work
Location
Seniority

It is interesting to note that the emphasis on laying out differences may be

acceptable in low-context cultures. High-context cultures, however, may be much
more reluctant to identify differences explicitly. As we have pointed out repeatedly,
we all bring our cultures with us, and the researchers who established these steps
come from a low-context environment. It makes sense in low-context cultures to
state differences explicitly. If the discussion involves low- and high-context cul-
tures, this approach may not be acceptable. The members may want to find a more
subtle way to identify different cultural priorities. For example, one-on-one dis-
cussions in an informal setting after work may be a better venue to talk about dif-
ferences in opinions and priorities than in group meetings at work.

Bridging Gaps and Identifying Synergies

After the differences have been mapped, group members are ready to bridge the
gaps. In this stage, they acknowledge their differences. The bridging is an impor-
tant step in the establishment of cultural synergy because it entails building on the
strengths that the various cultures represent.18 The DaimlerChrysler teams at this
stage verbalized their differences and acknowledged them publicly. For example,
team members openly acknowledged that they approached expatriation differ-
ently. As we discussed earlier, at Daimler, expatriation was a regular step in career
advancement, whereas at Chrysler it was seen as a special assignment.
In this stage, team members don’t yet have a way to overcome the differences,
but they know where the issues are. In the beginning of the merger process, there
was a lot of talk about sharing technology and platforms. If both sides had gone
through a team development program, they would have been able to see that their
approaches to technology, sharing information, and the importance of corporate
reputation management were different. They could have worked on overcoming
the obstacles much earlier if they had not pretended that there was no problem.
 Intercultural Dynamics in the International Company 471

Developing Communication Strategies

At this point, team members are ready to integrate their knowledge, approaches,
and backgrounds, and develop an intercultural business communication strategy
that will build on the strengths of the members and is aligned with organizational
strategies and goals. (Chapter 9 discusses communication strategies on teams.)
Team members at DaimlerChrysler at this stage would develop a detailed strat-
egy for cooperation and integration. Ideally, the team now speaks with one voice,
but only after all the differences have been explored and assessed. Because the
viewpoints on sharing technology were different, they would have developed a
strategy for determining areas for cooperation and integration and developed spe-
cific plans for reaching the goals. For example, they could have decided to develop
a timeline for evaluating proposals for sharing technology and evaluating joint re-
search projects.

Assessing Results
Throughout the entire team-building process, teams assess their progress, and at
the end the members assess the results. The assessment also is done by the man-
agers who formed the group. Management, in conjunction with the group, collects
the process knowledge that has been gained. It stores that knowledge to have it
ready for retrieval for future use.19
Managers who have created a team assess its work, what it has accomplished
for the organization. Some organizations use formal assessment tools such as
periodic reports and the record of the team’s work. Other teams have informal
assessments, such as informal meetings to talk to the manager who has created the
team. These assessments focus on how the team is progressing toward its goals,
how closely the time schedule is followed, and how much work remains before the
product will be available.
Over time, the process should be less time-consuming, but it should never be
automatic. As soon as it becomes automatic, there is a danger of equalizing rather
than maximizing the potential.

Culture in the Context of Corporate Strategy

After examining the process of creating effective culturally diverse teams, we are
ready to place the team process in the context of the organization as a whole. After
all, group work is not an end in itself. The people at Daimler and Chrysler did not
meet to perfect group dynamics or group processes. They had a specific business
goal: to bring two different companies together and shape them into one unit.
Teamwork has to be seen against that background. Exhibit 12.8 illustrates the in-
teraction between the business strategy and the intercultural business communica-
tion work of the various players. In the model, two members come from culture A,
two from culture B, and one from culture C.
The model is recursive, meaning that at any stage participants will verify that
they are on track and that their activities are contributing to the reaching of the
identified goals. If the activities do not contribute, the participants either realign
the activities or reexamine the strategies and the stated goals. By integrating the
472 Chapter 12

EXHIBIT 12.8 Develop Business Strategy

Intercultural Teams
and Business Identify Specific Goals
Communication
Strategy: Process
Identify Needed Skills
Involving One
Diverse Team in
One Company Identify Team Members

C A
Culture
Mix

B B

Create Self-Awareness of One’s Culture and Personal Style

Map Cultural Differences and Overlap

Bridge Gaps and

Identify Potential Synergies

Develop Intercultural Strategies for Specific Business Tasks

Assess Results

team and group activities into the broader context of the organization, the model
overcomes a major shortcoming of the conventional communication model.
The model separates activities into discrete steps; however, some of the steps
can occur simultaneously. Before the multicultural group can start its work, the or-
ganization must have a clear strategy in place and identify the organizational goals
to which the multicultural group will contribute. After the strategy and the goals
have been identified, the organization needs to identify the skills that the partici-
pants should bring to the task so they can work effectively and efficiently. The
types of skills depend on the goals at hand. As a result, different goals may require
different skills. Once the desirable skills have been identified, managers can go to
the next step and select the players or group members who have the necessary mix
of skills and attributes.
The process depicted in Exhibit 12.8 is simplified insofar as it shows only one
culturally diverse group in one company. An example is a culturally diverse team
at Caterpillar (CAT), a U.S. company. Its global marketing division develops mar-
keting strategies for many different markets. To ensure that the diverse markets
have input, CAT appoints employees from a variety of cultural backgrounds to the
 Intercultural Dynamics in the International Company 473

team; however, all team members are CAT employees. In that sense, they all work
toward the same goal.
Today, all international businesses and many domestic businesses have culturally
diverse teams. For example, teams in U.S.-based companies have members who are
European-American, Latino-American, African-American, Asian-American, and
many other combinations. In many European companies, the team members in
a particular company may be German, French, Scandinavian, Italian, Turkish,
Algerian, Dutch, and Polish. For those teams to be effective and add value to the
company, they need to become creator teams.
In international business, however, we typically deal with several companies
and many intercultural teams. This process is illustrated in Exhibit 12.9.

EXHIBIT 12.9 Intercultural Teams and Business Communication Strategy:

Process Involving Two Companies
Company A Company B
Develop Business Strategy Develop Business Strategy

Identify Specific Goals Identify Specific Goals

Identify Needed Skills Identify Needed Skills

Identify Team Members Identify Team Members

A D

C A C D
Culture Culture
Mix Mix

B B E E

Create Self-Awareness of One’s Culture and Personal Style Create Self-Awareness

Map Cultural Differences Map Differences

Bridge Differences and Identify Potential Synergies Bridge Gaps and Identify Synergies

Develop Intercultural Strategies for Develop Intercultural Strategies for

Business Tasks Specific Business Tasks

Assess Results Create Self-Awareness of One’s Assess Results

Culture and Personal Style

Map Cultural Differences

Bridge Differences and Identify Potential Synergies

Develop Intercultural Strategies for Specific Business Tasks

Assess Results
474 Chapter 12

When two international companies enter negotiations as buyers or sellers of

goods, they work together for a specific purpose but remain distinctly separate
companies. The negotiation for the wallpaper contract between a Canadian com-
pany and a Chinese company discussed in Chapter 9 falls into this category. The
two sides came together for one particular project, but there were no plans to unite
the companies. The two sides evaluated their international interaction against their
own goals and objectives. The Chinese ultimately decided that a contract with the
Canadians would not be in their interest and discontinued the talks. In other
instances, a relationship may be formed and go on for many years—for example,
the company may use the same supplier over a long period, or the company may
negotiate with many different groups and any relationship may be for just one spe-
cific project.
Most international companies work with local businesses and other interna-
tional firms but keep their own identity. For example, Nestlé has subsidiaries
around the world. The firm regularly needs to work with suppliers, interest groups,
and governments in many different countries, and many of those groups have a
culturally heterogeneous workforce. Nestlé works with those groups, but it keeps
its own identity. Cooperative efforts would resemble the dynamics depicted in
Exhibit 12.9.
When two companies decide to form a joint venture or explore the possibility
of a merger, their beginning discussions may resemble what is depicted in
Exhibit 12.9. At this stage, they explore possibilities for closer cooperation, but
they still evaluate any proposal on the basis of their own goals. When Daimler and
Chrysler first started their discussions for a merger, their interaction probably
looked similar to what is depicted in Exhibit 12.9. Two distinct companies planned
to come together with players from different backgrounds. There was diversity
within and between groups. The goal was to see how a merger would fit into the
strategy of either company. Teams from both companies also would work together
and provide feedback to their respective companies in Detroit and Stuttgart.
Once the merger was finalized, however, the picture changed. At this stage,
there was one company with culturally diverse teams. It no longer was a question
of whether the two sides wanted to cooperate; they had to cooperate if the merger
were to be successful. Chrysler and Daimler now had the same goals, and it be-
came the task of the integration teams to help develop cultural synergies. This sit-
uation is illustrated in Exhibit 12.10.
Some people argue that Schrempp and Eaton decided to merge before both
sides had thoroughly evaluated the issues involved in a merger and that many of
the problems that surfaced after the merger could have been avoided if the merger
had been prepared more thoroughly.
However, once the merger had been agreed on, DaimlerChrysler had one cor-
porate strategy. But as the case illustrates, the announcement of a merger does not
eliminate the need for intercultural integration. In fact, it became even more cru-
cial because now both sides had to work together; they could not walk away from
each other. Furthermore, intercultural communication was no longer an isolated
 Intercultural Dynamics in the International Company 475

EXHIBIT 12.10 Develop Business Strategy

Intercultural Teams Identify Specific Goals
and Business
Communication Identify Needed Skills
Strategy: The Process Identify Players
after a Merger
A D

C A C D
Culture Culture
Mix Mix

B B E E

Create Self-Awareness of One’s Own Create Self-Awareness of One’s Own

Culture and Personal Style Culture and Personal Style

Map Cultural Differences and Overlaps Map Cultural Differences and Overlaps

Bridge Differences and Identify Bridge Differences and Identify

Potential Synergies Potential Synergies

Develop Intercultural Strategies Develop Intercultural Strategies

for Specific Business Tasks for Specific Business Tasks

Assess Results Assess Results

Create Self-Awareness of One’s Own Culture and Personal Style

Map Cultural Differences and Overlaps

Bridge Differences and Identify Potential Synergies

Develop Intercultural Strategies for Specific Business Tasks

Assess Results

occurrence, but a daily reality. The difference is that under the merger, the cultur-
ally diverse teams do not represent different companies but different entities
within the same company.
A merger results in one company with different players and groups, but all the
groups strive to achieve the same corporate goals. You can see that it may take a
long time before any merger gets to this point, and DaimlerChrysler ultimately did
not get there. Successful international companies are able to build on the cultural
diversity of their employees. In the process, they frequently build strong corporate
cultures. The corporate culture does not eliminate the cultural backgrounds of the
players, but it does facilitate the overcoming of one’s self-reference criterion in
view of the overall corporate goal and mission.
476 Chapter 12

When Teams Are Not Effective

Although no team sets out to fail, sometimes teams do fail. Four alternative mea-
sures exist; three can help teams become effective—in other words, become cre-
ator teams.
• Try to adapt to each other’s expectations
• Subdivide the team and tasks
• Have a manager intervene
• Remove member(s), or disband

Try to Adapt to Each Other’s Expectations

Earlier, we discussed self-awareness and taking cultural differences into account.
We looked at mapping cultural differences, so every team member would be aware
of his or her own cultural values or priorities, and the cultural priorities of every
other team member.
But we can agree that simply knowing about other people’s cultural priorities
does not automatically mean a team member can overcome his or her own biases
and accommodate or adapt to someone else’s cultural priorities.
We have been talking throughout this book about ways to understand and con-
nect with people from other cultures, but when it is no longer abstract, and instead
is right in front of you, with people who have different views and opinions, that
connection is a challenge. This is where we can return to the idea of cultural in-
telligence for some specific help.

Specific Abilities that Make up Teamwork CQ

CQ in teamwork includes specific abilities. We will look at them in the three areas
of CQ: cognition, motivation, and behavior.
In the cognition/knowledge component of CQ, team members need the ability to:
• Gather knowledge about other cultures and reflect upon it
• Recognize different information-processing styles
• Anticipate others’ expectations
The motivation component of CQ calls for the ability to:
• Be open to difference
• Tolerate ambiguity
The behavior component of CQ calls for the ability to:
• Communicate in an appropriate style for conflict management
• Adjust behavior according to others’ expectations
• Manage emotion
We will look briefly at each of these eight abilities.
 Intercultural Dynamics in the International Company 477

Gather Knowledge about Other Cultures

Scholars agree that the more one knows about another culture, the easier it is to
communicate with members of that culture. However, on a team with a great deal
of diversity, it is hard to know about every culture. That is why this textbook gives
you a way to know about all unfamiliar cultures, using the 24 questions. When you
have answers to them, you will have an understanding of the key aspects of another
culture.
Reflection about what you know about any other culture is important, since it
suggests differences and similarities. In teamwork, for example, two important
cultural priorities are the communication style (how direct? how indirect?)—and
the approach to authority (is it direct? is it mediated?). Reflection about what
you know of a teammate’s views of these two priorities can make you consider
other cultural dimensions that may be part of your teammate’s views, such as
hierarchy or horizontality in management structures, and which one your team-
mate might prefer to operate in your team. You may see a results-orientation or
a relationship-orientation.

Recognize Different Information-Processing Styles

In Chapter 3 of the textbook, you learned about some general ways to process in-
formation that are related to culture. For example, in Western European societies,
the ancient Greek tradition of reasoning is common. It is based on the concept that
every individual thing has a unique identity, which can be discovered through
probing and research. Each item individually relates—or doesn’t relates—to each
other item. A key principle in Western thinking is that two opposing things cannot
both be true.
Reasoning in results-oriented cultures involves a linear sequence of logical
steps that include and exclude items from categories. Cause-and-effect patterns of
reasoning result from the Western approach, and most Western cultures use cause-
and-effect reasoning without being aware of it. Commonly, they approach prob-
lems as effects and look back to the causes in order to solve problems.
Non-European ways of processing information, or of reasoning, are based on
concepts of interrelatedness. Items are points in a whole network, and when one
point is engaged, others in the network are also affected. The identity of any one
item depends on its relationships with other items.
A key principle in Asian thinking influenced by ancient Chinese authors is the
importance of opposing ideas being held together in balance. Both exist, and
influence each other, because they are related to each other.
Reasoning in relationship-oriented cultures involves taking into account an
entire web or network of things or people, and finding what leads to balance. This
principle often is at work in teams where members from Asian cultures seek to rec-
oncile opposite ideas held by different members. They are not simply trying to
patch up differences; they are trying to arrive at a conclusion where balance is
achieved between opposing points of view, as the most desirable outcome.
Decision-making processes differ, depending on culture, as we have seen in
Chapter 8. Members of results-oriented cultures make decisions based on outcomes
478 Chapter 12

or ends. Members of relationship-oriented cultures make decisions based on

means, or relationships. When decisions have to be made about disagreements, we
have seen that people from different cultures have different conflict-management
modes and styles of communication.

Anticipate Others’ Expectations

This involves mindfulness. Mindfulness is a concept from Buddhism. It means
considering other team members’ values and ways of processing information, and
trying to imagine what they are thinking.
This involves putting yourself in another’s position and thinking about how that
other team member sees the world. Even more, this is thinking about what your
team members’ expectations are. They will have expectations for you and the other
team members, and expectations for the way the team works, and expectations for
the kind of work the team will produce. The more you can imagine what your
teammate expects, the better prepared you will be to cooperate.
This thinking leads back to what you know about your teammate’s values and
attitudes, and how culture affects them.
Two CQ abilities refer to the motivation component of CQ.

Be Open to Difference
Being open to difference is more than simply opening your ears to hear about it.
Openness means being willing to take a different value or behavior into your own
heart and mind. Openness means holding a different alternative as a possible
change in your own thinking.
Learning is the process by which change in one’s thinking occurs. Being open
to difference means being willing to learn and take as one’s own something new.
One additional outcome of this willingness to be open is that sometimes peo-
ple are surprised to find a difference is not really very different at all, and they have
actually discovered a similarity. Give yourself and your teammates time to think
about and get used to difference. Some people respond immediately with closed
minds to difference, but upon reflection they later come to accept it. Openness of
mind can increase with practice.

Tolerate Ambiguity
Another motivation aspect of the CQ of teamwork is being willing to live with a
little confusion and lack of black-and-white clarity. Members of some cultures
are unhappier with ambiguity than members of other cultures. They are not
comfortable with uncertainty, and want teammates’ positions and thinking spelled
out clearly.
Members of other cultures tolerate ambiguity, and are able to go with the flow.
They are less likely to pressure teammates to say exactly what they mean. Being
willing to give teammates space to think and time to find ways to express their
views will lead to better team communication, ultimately.
Now we can turn to three factors that contribute to CQ in team behavior.
 Intercultural Dynamics in the International Company 479

Communicate in an Appropriate Style for Conflict Management

We have talked already about the communication styles—integrating, bargain-
ing, and obliging—that take teammates’ concerns into account and also protect
teammates’ face. Conflicts in teams are inevitable, unless the team is an equal-
izer, which is only going to produce mediocre work and is not valued by orga-
nizations. Because teams meet regularly, conflicts have the potential of causing
damage to the work and to relationships.
Conflict management may sound rather remote and abstract, as it was discussed
in Chapter 8. But when it is conflict between team members, who are work col-
leagues and meet regularly, conflict is immediate and a cause for worry. Conflict
communication behavior is important.

Adjust Behavior According to Others’ Expectations

This behavioral ability follows on from the cognitive ability to anticipate the ex-
pectations of teammates. Once you have an idea what your teammate may be
thinking and expecting, you adjust your behavior to meet those expectations.
One way of adjusting your behavior is to match or mirror the behavior of your
teammate. By behaving in a way that is familiar to your teammate, you can put him
or her at ease. You mirror or show back to your teammate a corresponding behav-
ior. The behavior may be nonverbal or verbal.
Adjusting behavior is also picking up cues from your teammate and respond-
ing accordingly. This can work when your teammate has negative expectations that
you can counteract. For example, if you think a teammate expects you to respond
negatively to a statement, you can adjust your behavior to take the statement pos-
itively. Your teammate will feel more comfortable, having the negative expectation
overturned.

Manage Emotions
As we have previously discussed, emotional expression varies according to cul-
ture. In relationship-oriented cultures, too much emotion—especially disapproval,
disappointment, and anger—can threaten the face of the one who displays emo-
tion and the face of those to whom the expression is directed. Face damage leads
to a loss of harmony in the group, and threatens relationships.
Sometimes, perhaps surprisingly, too much positive emotion can cause dis-
comfort. People from different cultures may not know how to interpret outbursts
of laughter. They may wonder, “Have I missed a joke?” “Should I laugh too?” “Is
the laughing person mentally unbalanced?”
Of course, teams that work together well can often experience spontaneous
amusement and pleasure in each other’s company. They have confidence in each
other’s respect and consideration.
These eight CQ elements are specific ways teammates can contribute to the de-
velopment of a creator team.
Another solution when teams are in need of help is to make changes in the team
structure. This usually means subdividing the team.
480 Chapter 12

Subdivide the Team and Tasks

So far in looking at what to do when teams are not effective, the focus has been on
individual team members. Some authors suggest another solution: Restructure the
team by subdividing it.
When teams encounter disagreement, and cannot move forward, a sub-team can
work on trouble areas while other sub-teams work on other things. This is a way
around a disagreement that seems to deadlock the team, and stop it from func-
tioning. It is also a strategy for destroyer teams, when two or three people on each
side want to win the conflict.
Additionally, creating sub-teams can help non-participating members feel more
comfortable about making a contribution. Some members of equalizer teams may
not want to speak up in a larger group, but are able to express their opinions eas-
ily to a small group.
Sometimes team members do not participate because they do not want to be
alone in supporting a position. While the other team members seem to be moving
together in one direction, an individual may not want to be isolated. Putting a non-
participating team member in a sub-team can encourage involvement.
Sub-teams can also help move the team forward by taking specific tasks. Sev-
eral sub-teams can work through tasks at the same time, and then each can report
back to the larger team, enabling the team to be more efficient. Team members can
decide to break into sub-teams, or the manager who created the team can make this
change to the team structure.
In fact, when teams fail to operate well, they often turn to managers (or teach-
ers, in class teams) for help.
Have a Manager Intervene
Managers represent the organizations’ aims of having better problem-solving, cre-
ativity, and innovation than they get from individual employees. They want teams
to function well so those aims are reached, and often look to managers to turn
around failing teams.
However, most managers have not had training in how to create and manage
multicultural teams. Many managers do not even see culture as an important factor
in having multicultural teams work well. Managers tend to focus on the specific
skills of each team member, and choose each one for that reason. Sometimes, how-
ever, managers decide who to put on teams using cultural stereotypes, rather than
thinking about expertise.
Managers may have the attitude, something fairly widespread, that a good man-
ager is a good manager anywhere in the world. In other words, managers may see
their task of management as culture-free. What they do not realize is that their idea
of management and of the role of manager is the product of their own culture.
Managers may even say they think culture is important, but what they could mean
is that they think their own culture is “right.” When managers do have knowledge
and skill about creating and assisting multicultural teams, they often come in as
brokers in conflicts (third-party intervention). Such a mediator has an authority
that surpasses the team leader’s authority.
 Intercultural Dynamics in the International Company 481

Team members’ own cultures probably supply different attitudes toward

authority. They may not all welcome third-party assistance from the manager, or
believe the manager has superior ability to solve the problems of a team that is not
working well. This can be an obstacle to a third-party settlement.
However, managers often do help teams turn around and function well after
doing poorly. They can set the example for members to adapt to each other’s cul-
tural expectations. They can model the individual CQ abilities that are important
for good teamwork.
One other alternative exists for teams that do not function well: removing indi-
viduals or disbanding the team.

Remove Member(s) or Disband the Team

Sometimes the problems between people do not go away, even with efforts to re-
solve them. Sometimes an individual believes his or her views are the only correct
views, and if the other team members disagree, then the individual leaves the team.
Although this is a failure of teamwork, nevertheless it is sometimes the best solu-
tion. The team may be able to work as a creator team after the exit of a member
who was a source of conflict. Of course, the source of conflict is not always the
person who leaves.
Teams begin their lives believing they will work together to accomplish the
organization’s goals. Team members generally feel positive in the beginning. They
sort out roles, and get to know one another. Relationships develop as individual
team members spend time and effort understanding each other.
When teams fail, everyone feels partly responsible for the failure. After some-
one leaves a team, roles have to be reassigned and a period of readjustment is nec-
essary. Shock, dismay, or anger can prevent the remaining team members from
working well. Some teams never recover. On the other hand, as people adjust to
new roles and relationships, teams can restart and operate better than before.
When a team goes on to work well after someone has left, the judgment is that
the loss was for the better. If a team goes on to work poorly, the judgment is that
the person who left was a sad loss, and the team is worse off because they are no
longer on it.
The ultimate recourse for a team that is not working well together and cannot
achieve its goals is to disband altogether. Obviously, disbanding is an unhappy
conclusion since it means the team’s failure has let down the organization.

Applying Your Cultural Knowledge to Business Situations

Throughout this book, we have focused on how understanding cultural priorities
can facilitate communication and make international business more productive.
An understanding of the relationship between effective intercultural business
communication, the dynamics of culturally diverse groups, and the overall business
strategy will prepare you to become a player in an exciting global environment.
In the Appendix, there are two more cases that give you an opportunity to ap-
ply cultural principles to international business situations. As you prepare these
482 Chapter 12

cases for discussion, we encourage you to review the previous chapters. It will be
helpful if you consider the cultural aspects, the specific business communication
tasks, and the impact of culture on legal systems and organizational structures as
you explore solutions to the problems at hand.

Summary This chapter applied the principles of intercultural communication in the global
workplace to the case of DaimlerChrysler. Since there is no red flag indicating cul-
tural problems in international business, it takes some practice to identify cultural
issues. This chapter has given you the opportunity to examine a real case in view
of what you have learned.
• After the presentation of the case, we identified the major cultural hurdles that
DaimlerChrysler needed to overcome to be successful. The two sides had dif-
ferent approaches to dealing with uncertainty, the role of formality, conducting
meetings, and compensation.
• We discussed the variables of the intercultural business communication
process: the intercultural strategy, the business strategy, and the communication
strategy. The interaction of these three variables creates new synergies that help
establish an intercultural business communication strategy.
• As companies increasingly rely on teamwork, an understanding of the
dynamics of culturally diverse teams is necessary. We identified the stages in
developing teams that can take advantage of diverse viewpoints within the
groups: self-awareness, mapping of differences, bridging gaps and identifying
synergies, developing communication strategies, and assessing the results of
teamwork.
• Teams function in the context of corporate strategies and goals. We examined
the ways teams fit into the corporate process and identified three situations:
diverse teams within one company, diverse teams in two different companies
that are working together but keep their own identity, and diverse teams in two
companies that have merged or formed a joint venture.

Notes 1. “DaimlerChrysler Dumps Mitsubishi,” BBC News, April 23, 2004.

2. Fuso Press Release, “Mitsubishi Fuso: Top Management Change Effective
End of June 2005.”
3. DaimlerChrysler Press Release, May 31, 2005.
4. Stephen Power, “Daimler Net Soars 84%, Lifted by Financial Arm,” The
Wall Street Journal, February 17, 2006, p. A3.
5. Sholnn Freeman and Tomoeh Murakami Tse, “DaimlerChrysler Nearing
Deal to Sell U.S. Auto Unit,” Washington Post, May 14, 2007, p. A1.
6. Peter Schneider, “Scenes from a Marriage,” New York Times Magazine,
August 12, 2001, pp. 44–48.
 Intercultural Dynamics in the International Company 483

7. Stern, May 15, 1998.

8. Forbes, May 31, 1999.
9. Ward’s Automotive, July 2000.
10. Chester Dawson, Jeff Green, Larry Armstrong, Christine Tierney, and
Jonathan Wheatley, “Mr. Fix-It,” BusinessWeek, May 14, 2001, pp. 26–27.
11. DaimlerChrysler Top Stories, “Mitsubishi Motors Announced Return to
Profitability: Mitsubishi Motors FY 2001 Business Results and FY2002
Forecast,” http://www.daimlerchrysler.com/ index_g.htm (retrieved June
21, 2003).
12. Iris Varner, “The Theoretical Foundation for Intercultural Business Commu-
nication: A Conceptual Model,” Journal of Business Communication 37,
no. 1 (2000), pp. 39–57.
13. J. M. Perkins, “Communication in a Global, Multicultural Corporation:
Other Metaphors and Strategies.” In Exploring the Rhetoric of International
Professional Communication, C. R. Lovitt and D. Goswami, eds. (New
York: Baywood Publishing, 1999), pp. 17–38.
14. Geert Hofstede, Culture’s Consequences, 2nd ed. (Thousand Oaks, CA:
Sage Publications, 2001).
15. Joseph DiStefano and Martha Maznevski, “Creating Value with Diverse
Teams in Global Management,” Organizational Dynamics 29, no. 1 (2000),
pp. 45–63.
16. Ibid.
17. J. Gresser, “Breaking the Japanese Negotiation Code: What European and
American Managers Must Do to Win,” European Management Journal 10,
no. 3 (1992), pp. 286–293.
18. J. M. George, G. R. Jones, and J. A. Gonzales, “The Role of Affect in Cross-
Cultural Negotiations,” Journal of International Business Studies 29, no. 4
(1998), pp. 749–772; P. Guptara, “The Impact of Culture on International
Negotiation,” European Business Review 92, no. 2 (1992), pp. xi–xii;
Y. Paik and R. L. Tung, “Negotiation with East Asians: How to Attain
‘Win-Win’ Outcomes,” Management International Review 39, no. 2 (1999),
pp. 103–122.
19. Teresa Palmer and Iris Varner, “Integrating Knowledge Management into
HRD to Improve the Expatriate Process.” In Proceedings of the HRD
Academy National Convention, P. Kuchinke, ed. (Academy of Human
Resource Development, 2000), pp. 921–926.
 Appendix
CASE 1: WHAT ELSE CAN GO WRONG?1
Joe Van West, President of Appliances Unlimited in Mexico, was thinking about his
arrival in Mexico City and his life during the last six months as he was sitting in his
office. He remembered getting the phone call late one evening while sitting in front
of the TV in his house in Taipei, Taiwan, where he was Operations Manager of the
local subsidiary of Appliances Unlimited, a Belgian firm. The phone call was to tell
him that Mr. Brian Hodges, the President of the Mexican subsidiary of Appliances
Unlimited, had had a major heart attack and would retire immediately. Mr. Van West
had met Mr. Hodges several times at meetings, but he did not know him very well.
The caller, his friend at headquarters, Stijn Verckens, indicated that management at
headquarters was looking for a speedy replacement for Hodges, and that Joe Van
West should talk to the President of the International Division at headquarters im-
mediately. Van West had always wanted to run a subsidiary. It would be a great op-
portunity, and he did tell Verckens that he would think about it.
Van West had gotten excellent reviews for his work as Operations Manager in
Taipei. He was ready for the next step. He had hoped there would be an opportu-
nity in Canada or the United States, but he, an American citizen, and his wife, a
native of Belgium, had decided a number of years ago that they would go wher-
ever the opportunity presented itself. Van West talked to several people at head-
quarters, including the president for International. He applied for the job in
Mexico, and was excited when he got the appointment. Being president of a sub-
sidiary in a major market like Mexico was a big promotion and also financially
rewarding. He looked forward to the new assignment.
When Van West arrived, he met with all the major players at the plant. He listened
carefully and asked lots of questions about production, marketing, and sales. He sent
e-mails to headquarters as well as had lengthy conversations on the phone with exec-
utives there. He went to Brussels twice to discuss the plans for the plant in Mexico.
By all accounts, his family had adjusted well. Antonio Hernandez, the Vice
President for Manufacturing, had been wonderful in helping his family get settled.
Mr. Hernandez and his wife had introduced Van West and his wife to one of the
best clubs in the city, as well as many influential families in business and politics.
The two women had become good friends. Mrs. Hernandez had helped with the
everyday orientation, which consisted of things like shopping, schools, and house-
hold personnel. Mrs. Van West was grateful for all the assistance. The adjustment
to Mexico City had been so much easier than the one to Taipei a few years earlier.
Everything had started so well that Van West had a hard time figuring out just
what had gone wrong. Now he was facing major production problems and the
threat of a strike! Looking back, he could see the signs of problems building, but
when they first appeared they had not seemed like major issues. Well, he had to
1
The case is an update and adaptation by Iris Varner of: J. B. Schnapp, “Crisis in Caribia,” Harvard Business
Review (November–December, 1968).
484
 Appendix 485

get a handle on this, or he might as well pack his bags and look for another job. He
reviewed each problem in turn.

Production Issues
The plant in Mexico manufactured small household appliances, such as toasters,
electric irons, blenders, and coffee machines. In addition, the factory produced
parts for washing machines to be assembled by the subsidiary of an American
multinational company. The small appliances were mostly for the domestic mar-
ket, while the washing machines were both for the domestic market and for ex-
port, mainly to other NAFTA countries. Over the last two years, the production
lines had been upgraded to make use of the latest manufacturing technology. Pro-
jections called for future expansions and increasing profits.
A few weeks ago Van West had received a phone call from the production man-
ager of the American subsidiary manufacturing the washing machines. He voiced
concern over the quality and the delivery schedule of the washing machine parts.
The number of defective parts had increased considerably over the last three
months, and five times the parts had been delivered late enough to affect produc-
tion schedules for the washing machines.
Van West had talked to Hernandez about the issue, but Hernandez did not seem
to think it was a big deal. Just the same, he promised to look into it. Even with Her-
nandez’s reassurances, Van West was concerned, and he started checking a bit on
his own. He went to the factory floor. In the past, he had never gone by himself;
Hernandez had always been with him. Van West felt a bit uncomfortable and
intimidated. His Spanish was limited; he had had three years in high school, and
although he had started taking private lessons after his arrival in Mexico, it was
slow going and he was self-conscious about making mistakes. The line supervisor,
Duarte Gonzales, spoke enough English to lead him around.
Gonzales mentioned some difficulties with some of the new machines and the
reasons they had broken down several times. He also indicated that some of the
newer employees were different and not as dedicated as the long-time employ-
ees. Gonzales did not talk about Hernandez, but Van West picked up that their
relationship was a bit tense. He grew concerned that Hernandez had never men-
tioned any of these problems, and he decided to talk to Hernandez again to em-
phasize the importance of quality and timeliness of delivery.
He phoned Hernandez, who was out of the office and would not be back until
the next day. As he was walking back to his office, it occurred to Van West that
Hernandez was gone frequently. He had never paid much attention to this before
but decided to keep a closer watch on Hernandez in the future. When Van West
talked to Hernandez the next day, Hernandez brushed the issue with the washing
machine parts aside. Gonzales was exaggerating the problems. Sure, there had
been some problems in the past, but nothing to worry about. Things would be just
fine. However, he also pointed out that Van West would have to make some con-
cessions to local work attitudes. He said: “You know things are looser here. You
just cannot expect the same performance you are used to. Take it easy; everything
will be fine. Just don’t worry. Leave it to me. I know how to take care of things.”
486 Appendix

Hernandez came from a distinguished Mexican family. His grandfather had

been a prominent surgeon, and his father was a well-known lawyer. Hernandez him-
self had gone to the best schools in Mexico and had received an MBA from the Uni-
versity of Michigan. He knew everyone of importance in the business circles of
Mexico City. But Van West was increasingly concerned about his nonchalant atti-
tude toward day-to-day affairs at the plant. At the same time, he did not know how
to best approach Hernandez. Their close social contacts made it difficult to criticize
his performance. Van West was also wondering how involved and how knowledge-
able Hernandez was about the production process and the new technology.
In the following weeks, Van West went several times to the factory floor when
Hernandez was absent. He started to get a clearer picture of the production issues
even though his limited Spanish slowed the discussions with Gonzales and the line
supervisor.
After Van West had first arrived in Mexico and received a thorough briefing, he
had asked Hernandez to deal with the day-to-day issues until he was settled and
comfortable. He had shared his management philosophy with the management at
the plant: to delegate as much as possible and include employees in the decision-
making process. He felt that he could use his expertise and talents best by paying
attention to the big issues. Everyone had agreed with him and thought that this was
a good approach.

Worker Unrest
As Van West was contemplating what to do, Vincente Garcia, in charge of Human
Resources, came to inform him that the workers were getting agitated and had
started to meet in small groups to discuss their opposition to the implementation
of new computer programs to monitor the quality of output, evaluate production
costs, and track efficiency. While the updating of production equipment over the
past few years had improved the quantity of output, cost overruns had remained a
problem. Furthermore, efficiency levels and quality of output had not improved as
much with the new equipment as headquarters had hoped. As a result, headquar-
ters had been pushing for the installation of state-of-the-art computer systems to
monitor all phases of operations.
Van West’s predecessor had not been very familiar with computer programs. In
fact, he had been very apprehensive about all the software and programs head-
quarters had been pushing. Finally, a year ago, headquarters had sent an expert to
supervise the installation and implementation of the latest technology. Hodges had
announced that Jones would be at the plant for a while and that he would work on
installing technology to track performance. Frank Jones, the technician, was in his
thirties. He certainly knew his stuff and was happiest when he could talk about
computer technology. He had little direct contact with the workers. Whenever he
had to talk to employees, he would go through the Vice President for Manufactur-
ing. If Hernandez was not available, he would talk to Gonzalez.
Hodges had not paid any attention to Jones. When Van West arrived, he was
briefed about the technology update, but with everything else going on, he had not
taken the time to familiarize himself with any of the details. Things seemed to run
 Appendix 487

just fine. Jones indicated that the system would soon be ready for testing and be
fully operational in a few more weeks. However, as employees learned a bit more
about what Jones was doing, they grew concerned and uneasy. Some of the senior
workers talked to Raoul Cortez, who worked with Jones, about their concerns and
the new system. Cortez hinted that the new system could certainly be programmed
to identify specific production problems and track individual work performance.
Jones was not aware of the workers’ concerns and their talks with Cortez. When
an article in a local newspaper discussed layoffs after the introduction of new tech-
nology at another plant, the employees at Appliances Unlimited became very
alarmed. They were not going to sit there and wait to lose their jobs. Several of the
leaders were talking of forming a union and perhaps even calling a strike. Van West
was not familiar with the Mexican union process and union legislation, but any
disruption sounded terrible.
Thinking about the possible strike, Van West was in disbelief. He had been told
that the workers at the plant were happy and dedicated. Nobody had ever talked
about a union, at least not in public. Labor relations had been good, and Appliances
Unlimited was known for excellent pay and benefits. A shutdown at this point would
seriously affect delivery contracts. It would also affect negotiations with new clients.
Van West knew he had to do something. But what? He decided to call a meet-
ing to discuss options. He asked the following people to attend a meeting the next
morning at 9 a.m.: Hernandez, Gonzales, Garcia, Jones, Cortez, and Sanchez.

Questions for Discussion

In your discussion you may want to examine the following questions. Look at them
in light of the cultural knowledge you have gained.
• What are the underlying cultural issues contributing to the problems?
• What should Van West have done when he first came to Mexico?
• How should Van West deal with Hernandez? Address the role of the boss in
Mexican culture. Address the relationship between superiors and subordinates.
• How can Van West deal with the labor issue? How does this relate to attitudes
toward change, the relationship between the individual and the group, and
hierarchy?

CASE 2: HANA, A JOINT VENTURE BETWEEN

HEALTH SNACKS AND TOKA FOODS2
When Health Snacks and Toka Foods formed a joint venture four years ago, the fu-
ture looked very promising. Health Snacks was looking for opportunities to enter the
Japanese market, and Toka Foods was well positioned in Japan to facilitate that

2
This case is an update and adaptation by Iris Varner of the Showa case, which is published by the President and
Fellows of Harvard College.
488 Appendix

process. Toka Foods, on the other hand, was interested in gaining access to new tech-
nology. Since Health Snacks was a leader in the adaptation of new technology to busi-
ness processes, the joint venture seemed ideal. At the time the joint venture was
established, executives both from Health Snacks and Toka Foods had spent many
hours hammering out an agreement that would help both sides realize their objectives.
Each side was excited about the new opportunities; however, after the first six
months, several disagreements surfaced regarding the management of the joint
venture. One of the issues was who should get copies of written communication
regarding production schedules and marketing plans. The Americans felt they
were not sufficiently included in discussions relating to the joint venture. The
Japanese managers, on the other hand, were frustrated with the number of requests
for reports from the American side.
At first these disagreements seemed rather superficial, but as time went by,
both sides became increasingly unhappy and started to blame each other for any
difficulties.
Health Snacks had tried to solve the problems via electronic communication,
faxes, and e-mails. They even had organized a teleconference to meet “face-to-
face” so each side could hear the other’s viewpoint, but the problems remained.
After much soul-searching, Ron Carter decided it was time to fly to Nagoya and
face the problems head-on.
Mr. Carter had joined Health Snacks as President of International Operations
only nine months earlier. In this position, he also served as vice president for the
joint venture with Toka Foods. He had received a thorough briefing at the time and
had also studied the history of the joint venture on his own. He had been an expa-
triate in Australia and France managing international subsidiaries in both coun-
tries, was 40 years old, and was expected to have a bright future.
Health Snacks was a major manufacturer of convenience foods and health
food products. The company had registered several patents for extending shelf
life while maintaining quality. The company had sales of roughly $3 billion and
had subsidiaries in 30 countries around the globe. In the last year, roughly 34 per-
cent of corporate sales had come from international sales. Tim Davis, President
for International Operations at Health Snacks, and Mr. Carter’s predecessor, was
given the task of exploring the expansion into the Japanese market.
Health Snacks had never had any major presence in Japan; however, top
executives believed that Japanese consumers were increasingly interested in
convenience foods and health foods. Many Japanese still went shopping for
food daily, but the number of people making weekly food purchases was in-
creasing. Toka Foods, a traditional food processor, had attempted to move into
this market but ultimately decided it lacked the processing and packaging tech-
nology, as well as the quality control to establish a major presence. As a result,
Toka Foods started looking around for a potential partner. In the beginning,
Health Snacks and Toka Foods had explored licensing agreements. Toka Foods,
in particular, was interested in getting a license for using Health Snacks’
 Appendix 489

processing and packaging technology. Health Snacks, however, felt that a joint
venture would provide better opportunities for their establishing a presence in
the Japanese market. Upper management knew that the Japanese market was
difficult to enter, and they hoped they would not have to develop an entire dis-
tribution system.
The negotiations had been very difficult and took much longer than executives
from Health Snacks had anticipated. The Japanese were slow and deliberate in
their approach to the negotiation, and once the Japanese side had made up its mind
on a point, it was difficult to agree on any changes since everything had to go back
and be rediscussed by Japanese executives.
The composition of the negotiation team also became an issue. Based on ini-
tial contacts, Health Snacks knew that Toka Foods was interested in technical de-
tails. To speed up the process and provide technical details, Health Snacks had
initially sent an engineer from production and one from packaging, both in their
early thirties with no international experience. The two engineers took detailed
reports, diagrams, and illustrations with them. They knew the technology inside
out, but the Japanese, while asking many questions, did not move toward any
agreement. When the two engineers from Health Snacks could not answer ques-
tions relating to projections of production and sales, the Japanese became impa-
tient. The two engineers found the talks tiring, and sitting across from a team of
eight Japanese managers was intimidating and exhausting. Furthermore, the
Japanese repeatedly asked the same questions. It was only after the President of
the International Division at Health Snacks, Tim Davis, participated in the nego-
tiations that progress was made. He visited several times, and an agreement was
finally signed.
The final agreement had the following provisions: The ownership of the joint
venture was equally divided. Toka Foods was to provide facilities for processing
of food and packaging. The Japanese side was also to provide its marketing net-
work and develop new marketing channels where necessary. Health Snacks was to
provide the latest technology and assist with the production setup. The joint ven-
ture was to be called Hana, and products from the joint venture were to be mar-
keted under the brand name, Hana.
The management of the joint venture posed some special issues as well.
Given that the joint venture would be located in Japan, the contract specified that
the joint venture would have a board of eight people, four from each partner;
however, all employees working for the joint venture would come from Toka
Foods. The joint venture would have a president and a vice president. The pres-
ident was to be Japanese, nominated by Toka Foods but subject to approval by
the entire board. The Vice President of International Operations at Health
Snacks would serve as the American vice president for the venture. Health
Snacks would send a Health Snacks executive to serve as Technical Director and
board member. This person would be the only American posted full-time to the
joint venture in Japan.
490 Appendix

The Composition of the Board

The board composition was as follows:
• Health Snack representatives: the CEO of the parent company, the CFO of the
parent company, the President of International Operations and Vice President
of the joint venture, and the Technical Director.
• Toka representatives: the CEO of Toka, the Vice President of Production of
Toka, the President of the joint venture, and the CFO of the joint venture.
The establishment of the first board and the selection of president, vice presi-
dent, and technical director had not posed any problems, and everything seemed
to go according to schedule.
About ten months ago, Mr. Carter’s predecessor left the company and Mr. Carter
was hired to fill his place. Shortly after Mr. Carter assumed his position at Health
Snacks, the Japanese president of the joint venture, Mr. Hyashida, died at the age
of 63. Mr. Carter was waiting to discuss possible successors with Toka Foods’ Pres-
ident, Mr. Sony, when he received an e-mail from Mr. Sony informing him that the
Japanese had nominated Mr. Hiromitsu Ota for the position. Mr. Carter was upset
because he had expected that even though the Japanese could select their nominee,
they would have consulted him before making the nomination public. More impor-
tantly, Mr. Carter did not think that Mr. Ota was the right person for the position.
His judgment was reinforced when he discussed the issue of the joint venture in
Japan with Mr. Russell, the technical director and board member.
Mr. Ota had joined Toka Foods right after graduating from Waseda University
35 years earlier. For the past 20 years he had held staff positions at Toka Foods. He
was manager of administrative services at a major company plant and after that
was personnel manager at headquarters. In the latter position, he joined the board
of directors at Toka Foods. Currently, he was general manager of several staff
departments. Mr. Carter simply was at a loss as to why Mr. Sony would nominate
someone without line experience for the position of president of the joint venture.
Mr. Russell filled him in on traditional Japanese corporate practices, and it
began to dawn on Mr. Carter that he had little understanding of the management of
Japanese corporations. Many of the major companies still practice a form of life-
time employment. With economic difficulties, increased competition from abroad,
and increasing foreign ownership of Japanese corporations, the practice is not as
common as it once was; however, lifetime employment is still seen as the ideal, par-
ticularly when it comes to older employees. Under lifetime employment, employ-
ees, almost all males, are recruited right out of college. They move slowly up the
corporate ladder until the age of about 60. At that stage, most people retire and only
selected people move into executive positions. Competence and performance play
a role in the promotion to upper management and executive level positions, but
seniority is a major factor throughout. Even though under Japanese law board
members are elected by shareholders for two-year terms, in reality they are
appointed by the president of the company and/or the chairman of the board.
Frequently, a seat on the board is a reward for loyal and faithful company service
 Appendix 491

rather than exceptional performance. Board membership is typically rotated every two
years to make room for more junior managers; however, at that time of scheduled ro-
tation many board members targeted for leaving the board are still quite young and not
ready to retire. Therefore, it is quite common to appoint outgoing board members who
have no chance of further promotion at the company to positions in subsidiaries, af-
filiated companies, or joint ventures. It became clear to Mr. Carter that Mr. Ota was
not going to be promoted to President of Toka Foods and would, therefore, be ro-
tated off the board. He had served Toka Foods loyally and with great dedication but
was considered unsuitable by the company to occupy the top positions. However,
he was considered appropriate for president of the joint venture.
Mr. Carter was upset. He wanted the best person for the job and was con-
vinced that other candidates were available. In fact, he had met Mr. Katsuki
from Toka Foods only a couple of months ago in Chicago. He seemed to have
the qualities that Mr. Carter was looking for and expecting in the president for
the joint venture.
After talking to Mr. Russell, he informed Mr. Sony that he objected to Mr. Ota.
At the same time, he proposed Mr. Katsuki for the position and gave his reasons
for his choice. Mr. Katsuki was 48 years old and had been with Toka Foods during
his entire career. Currently, Mr. Katsuki was the marketing director for the joint
venture. He had made quite an impression at Health Snacks headquarters in
Chicago. He spoke excellent English and seemed to have the characteristics and
the energy for moving the joint venture forward. Mr. Katsuki seemed to be
straightforward in his communication and very dynamic compared to many of the
other Japanese Mr. Carter had met.
As Mr. Carter reflected on the joint venture, he came to the conclusion that the
joint venture was run almost exclusively as a Japanese corporation. The Ameri-
can side had little input, and Mr. Carter felt that Health Snacks was increasingly
marginalized. In addition, it always took weeks before he received responses to
inquiries, and he was convinced that management needed to be more responsive
to queries from the American side. He realized that the time difference and lan-
guage issues posed a hurdle to communication; it was all the more reason to get
someone like Mr. Katsuki who could relate to the American side. He carefully
worded his opposition to Mr. Ota and his suggestion of Mr. Katsuki. Only after
he was convinced that the message was tactful, courteous, and constructive and
had gone through several revisions, did he send it off. He was, therefore, rather
surprised when he received a letter from Mr. Sony totally rejecting his sugges-
tions. Mr. Sony was polite but made it quite clear that Toka Foods had carefully
considered all options and that Mr. Ota was the right person, and Mr. Katsuki was
out of the question. He further explained that a promotion for Mr. Katsuki would
be totally unacceptable and would ruin Mr. Katsuki’s career. In his letter, Mr.
Sony gave no explanation as to why the appointment of Mr. Katsuki would ruin
his career. When Mr. Carter asked Mr. Russell for more information, Mr. Russell
talked about traditional Japanese management practices that would be next to
impossible to change.
492 Appendix

Mr. Carter was wondering how things could have progressed to such a state
without Mr. Russell’s informing him about the discussions at the joint venture.
How effective was Mr. Russell in his job, and how well did he understand the
Japanese and Japanese practices? Mr. Carter had assumed that Mr. Russell was
well integrated into the running of the joint venture and actively participated in the
discussion of management issues.
When Health Snacks was hiring a technical director, the company had looked
for someone with Japanese experience and language ability. Such a person, how-
ever, was difficult to find, and Mr. Russell had been a compromise candidate.
He spoke some Japanese and had been a student at a Japanese university 15 years
earlier. From comments by the Japanese, Mr. Carter figured that Mr. Russell’s
Japanese language ability was rather limited. Furthermore, he did not seem to have
established a close working relationship with the Japanese managers of the venture.
Mr. Russell had his family with him in Japan, his wife and two teenage sons. He
preferred to spend evenings and weekends with his family rather than go out with
colleagues. In fact, he found the evening entertainments and visits to bars unpro-
ductive and exhausting.
Mr. Sony was not looking forward to Mr. Carter’s visit. He hated confrontations
and was worried that the meeting would not be very pleasant. He had not met
Mr. Carter before. He never did understand why American companies were hiring
top people from the outside. The frequent changes in personnel were rather unset-
tling to him since it seemed he had to adjust to new faces all the time. He also was
not quite sure how much Mr. Carter understood about Japanese management prac-
tices. And the message from Mr. Carter concerning the nomination of Mr. Katsuki
added to his suspicions.
Mr. Sony was convinced that Mr. Ota was the best and most appropriate person
for the position in the joint venture. He was owed the position for his loyal and ded-
icated service. Given that several new board members needed to be appointed, a
reappointment of Mr. Ota to the board was not a viable option. Mr. Sony was well
aware that Mr. Ota was not a dynamic person or visionary manager, but he got
along with people and always put the company first in all his business dealings.
Therefore, the position of president of the joint venture was suitable and appro-
priate. He could see why Americans might not think so, but the president had
to function in a Japanese environment and have the appropriate stature and
seniority to represent the company well. In the Japanese environment, it was not
necessary to have a strong leader or enthusiastic promoter. Someone who could
build consensus and move the entire group along was much more important, and
Mr. Ota had a proven track record in that area.
Clearly, Mr. Sony thought that Mr. Carter had no knowledge of Japanese busi-
ness practices. If he did, he would have never even suggested Mr. Katsuki. Sure,
Mr. Katsuki was dynamic, and he would have a bright future particularly with the
internationalization of businesses. However, to promote him now would ruin his
career forever. He would not be accepted by his peers, and his seniors would
deeply resent his promotion over them. The only way to guarantee Mr. Katsuki’s
ultimate success would be for him to take his time and move up the ladder slowly.
 Appendix 493

As he was thinking the joint venture over, he was also focusing on Mr. Russell.
What did Mr. Russell do to represent the Japanese viewpoint in Chicago? In fact, he
had not seen much of Mr. Russell lately. Communication was difficult because he
had a hard time understanding Mr. Russell when he spoke Japanese, and he himself
did not speak very fluent English. It also occurred to him that Mr. Russell had
not attended many of the social functions and had rarely participated in weekend
outings and golf games. He just did not seem to be part of the joint venture family.
Perhaps the joint venture had not been such a good idea after all.
As the plane was getting closer to Nagoya, Mr. Carter was wondering whether
it was all worth it. Mr. Sony had very similar thoughts as he was preparing to meet
Mr. Carter.

Questions for Discussion

Consider the following questions in your discussion of the case and pay special
attention to the cultural dimensions.
• What are the underlying cultural issues?
• What could both sides have done to avoid the current problems? Relate your
discussion to the cultural priorities in Chapters 3 and 4.
• Given that there is a problem, what can/should both sides do to overcome the
problems?
Can the joint venture be saved?
Index
Abbreviations, avoiding, 74 family orientation of business BASF Chemicals, 409
Académie Française, 47 in, 438–440 BATNA (best alternative to a
Accommodation, 315–316, 318 logic in, 111 negotiated agreement), 358
Acculturation studies, 97 persuasive logic in, 189–191 Beatrix, Queen of Holland, 165
Accuracy of information, 298 role of words in, 200–202 Behavior
Acronyms, 51 Arafat, Yasser, 223 cultural basis of, 13–14, 16–19
Active voice, in messages, 181 Arbitration, 315, 375–377 in cultural intelligence, 23
Adaptation studies, 97 Archer Daniels Midland (ADM), observed, 27
Adjustment, in culture shock, 18 409, 434 BELF (business English as lingua
Advantage, in negotiation, 343–344 Argumentation, 186–192 franca), 60
Advertising, 105, 392–393 Aristotelian syllogism, 109 Beliefs, 13–14
Ageism, 21 Aristotle, 116, 282–283 Bennett, Timothy, 351
Agendas, 350, 452 Arm movements, as nonverbal Berlitz language institute, 67
Agents, communication with, communication, 226–227 Beyond Culture (Hall), 104
377–379 ASEAN trade agreement, 432 Bias, 22
Age of Enlightenment, 107 Asian logic, 109–111 Bible, 119; see also Religion
Agreement phase of negotiations, Assertiveness, 255–256, 268–270 bin Laden, Osama, 370
361–362 Ataturk, Kemal, 374 Black Death pandemic, 4
AIDS, approaches to, 107 Attitudes Blogs, 296
AIG Insurance, 255 cultural basis of, 12–14 BMW, 427
Aldi Stores, 384 on expatriates, 422 Body Shop, Inc., 155
Alger, Horatio, 166 investment, 394–401 Bogardus, E. S., 21
Allah, in Islam, 127 laissez-faire, 411 Bonaparte, Napoleon, 371
Alliance Française, 67 in listening, 322 Bond, Michael, 97
al-Omari, Jehad, 350 Authority; see also Power distance Bonuses to employees, 272
Amae (Japanese relationships), 155, in Arab presentation, 111, 190 Borden, George A., 310
261, 436 in family orientation-based business, Bows, as nonverbal communication, 231
Ambiguity, 184, 478 438 Brahmin priests, in Hinduism, 121
American-dominated research, 27 in groups, 167–169 Bribery, 278, 366
American Express, 173 mediated access to, 335 Brunei, Sultan of, 12
“American John Wayne” negotiating in negotiations, 348–349 B2B (business-to-business selling), 411
style, 360–361 respect for, 252–258 Buddhism, 106, 119, 123–124, 270
Americans with Disabilities Act in written communication, 211 Buffet, Warren, 255
of 1992, 386 Avoiding conflict communication style, Bulletin boards, networked, 208
Analogy, 197–198 315, 318; see also Problem solving Bürgerliche Gesetzbuch (German
Anger, displaying, 225–226, 334 code law), 371
Anglo-American common law, Backstage elements of culture, Bush, George H. W., 232
372–373 14–15, 25 Business communication, intercultural;
Animism, 129 Back translation, 368 see Intercultural dynamics in
Antibribery legislation, of EU, 366 Balance of opposites, in Asian business; Language
Appearance logic, 109 Business dynamics; see Intercultural
as authority symbol, 256–258 Banking communication, 396 dynamics in business
as nonverbal communication, Bank of Tokyo-Mitsubishi (Japan), 437 Business English as lingua franca
244–247 Bargaining, 315, 385 (BELF), 60
Apple Computer Corporation, 107, 382 Bargaining conflict communication Business information; see Information;
Appointment, death by, 134 style, 317–318 Problem solving
Arab cultures Bargaining discourse, 199 Business message channels, 179,
family and societal structures in, 267 Barrier, language, 43–44, 51 206–210
494
 Index 495

Business structure Cognitive similarity, projected, 322 shame and guilt in, 160–161
context basis of, 435–438 Cohen, Raymond, 331 style of, 210–212
credential basis of, 433–435 Collaboration, 314–315, 318 in teams, 341–342
family orientation basis of, 438–440 Collectivist cultures unwelcome messages, 192–195
political principles basis of, 440–443 American Express messages to, 173 word choice in, 199–206
avoiding conflict communication Company language, 58–63
Canning, Ltd., 350 style in, 318 Comparative advertising, 393
Capitalism, 126–127 basic societal unit in, 143–147 Comparisons, in cross-cultural
Carbaugh, Daniel, 406 confidentiality in, 293 communication, 28
“Career expatriates,” 416 conflict management in, 312–316 Compensation issues, 453–454
Carson, Johnny, 71 defined, 96 Competition, 314, 318
Case studies ethics in, 285 Compromise, 315, 318, 344, 351
Hana, A Joint Venture between obliging conflict communication style Computer piracy, 380
Health Snacks and Toka Foods, in, 317 Concession phase of negotiations,
487–493 problem solving in, 309 361–362
What Else Can Go Wrong?, 484–487 shame and guilt communicated in, 160 Condon, John C., 112
Caste system, in Hinduism, 121, 165 studies of, 99 Confidentiality, 293, 460
Caterpillar, Inc., 54, 472–473 teams in, 339–342 Conflict communication, 98;
Catholicism, 125; See also Christianity Colloquialisms, avoiding, 71 see also Information; Problem
Cause-and-effect reasoning, 109, 115, Commitment, 316 solving
131, 204, 304 Common law, 372–373 Confrontation, in dispute settlement,
Cell phone technology, 181, 241–242 Communication; see also Corporate 375–377
Cerberus Capital Management, culture; Legal and governmental Confucius, 124, 165, 166, 255,
449–450 considerations; Nonverbal 270, 283
Change, cultural perceptions communication Connection-based cultures, 157
of, 132–133 across cultures, 26–29 Conservative Judaism, 125
Channel of superiors, 168 with agents, 377–379 Consultant, as team role, 340
Channels, in communication model, business message channels, Consumerism, 114
174, 179–180 206–210 Context-based business structure,
Chavez, Hugo, 370 in cultural studies of individuals, 98 435–438
Cheong, Kean Wo, 184 direct versus indirect styles of, 146 Context for communication, 184
Chess-playing metaphor, emotion displayed in, 159–160 Contractual cultures, 157
for negotiations, 348 employment, 386–388 Control, luck versus, 116
Chiang Kai-shek, 247 face giving and saving in, 158–159 Corporate culture, 403–445
Christianity, 119, 125–127 in high context versus low-context business structure and, 433–443
Christmas bonuses, 272 cultures, 100–103 context basis of, 435–438
Chronology, in sentence structure, 204 intercultural business, 35, 458–475 credential basis of, 433–435
Chrysler, Walter, 451 corporate strategy in, 471–475 family orientation basis of,
Chrysler Corporation, 87, 395; see also diverse teams and, 463–471 438–440
DaimlerChrysler merger process of, 458–463 political principles basis
Chrysler Holding LLC, 449 marketing, 391–394 of, 440–443
Ciba Geigy, 409 model of, 174–181 Chrysler versus Daimler, 453, 475
Civil Rights Act of 1964, 386 in negotiations, 352–356 global firm in, 426–433
Clarke, Clifford, 112 network theories of, 97 import-export stage in, 410–415
Clinton, Bill, 302 perception and, 35–36 intercultural communication
Clothing persuasive messages and and, 405–409
as authority symbol, 256–258 argumentation, 186–192 internationalization stages in, 409–410
as nonverbal communication, 244–247 problem-solving messages, multinational corporation stage
Coaching communication, 98 195–199 in, 415–426
Coca-Cola, 410, 412, 426–427 research on, 29–34 international division in, 417–426
Code law, 371 routine messages, 181–185 national subsidiaries in, 415–417
Code Napoléon, 371 schemata model for intercultural, Corporate strategy, intercultural,
Cognition, in cultural 36–39 471–475
intelligence, 23 as self-identity approach, 141 Creator teams, 466–467, 476
496 Index

Credential-based business structure, Daimler-Benz, 451 Dress

433–435 DaimlerChrysler merger as authority symbol, 256–258
Credibility of information, 298–299 compensation issues, 453–454 as nonverbal communication,
Critical approach to self-identity, employee concerns about, 72 244–247
141–142 expatriate compensation in, 422 Dying with dignity, 134
Cross-cultural studies, 9, 27–28 foreign investment and, 397 Dynamic equivalence, in translation, 64
Cultural Intelligence (CQ), 23–24, 332, management issues, 452–453
464, 466, 476 merged company salaries in, 271 East Asian persuasive logic, 189
Culture, Leadership, and Organizations Mitsubishi Motors owned by, Eaton, Robert, 447–448, 458–459,
(GLOBE Study), 97 262, 437 461, 474
Culture, overview of, 1–41 overview of merger, 447–450 Eckrodt, Rolf, 456–457
attitudes from, 13 preparation and training for merger, Ecole Superieure des Internationale de
behavior based on, 13–14, 16–19 451–452 Commerce de Metz, 392
coherence of, 10–11 regulatory issues, 454–455 Ecole Superieure des Sciences
communication across, 26–29 reports on, 455–457 Commerciales d’ Angers, 392
in communication model, 174 Daoism, 106, 119–120, 129–130, E-commerce, 61, 393, 411
in communication research, 29–34 189, 283 Economic equality, 152
cultural intelligence, 23–24 David, Kenneth, 323 Economies of scale, 447
global, 24–25 Davydov, Mark, 134 Efficiency, in negotiations, 332
as group view, 11–12 DDGs (dried distillers grains), 412 Einstein, Albert, 163
learning about, 2–9 Death, cultural perceptions of, Elizabeth, Queen of Great Britain, 253
onstage and backstage elements 133–135 E-mail, 61, 85, 207, 296
of, 14–15 Decision making Emic cultural studies, 95
perception, communication, and, ends as basis of, 304–305 Emotion
35–36 means as basis of, 305–308 anger, 225–226
popular taste in, 25–26 in negotiations, 348–349 in Arab presentation, 111, 190
ranking by, 12–13 Deductive reasoning, 198 communication to display, 159–160
schemata model for intercultural Destroyer teams, 465 managing, 479
communication, 36–39 Dialecticism, 189 in negotiation, 355
self-knowledge and, 19–22 Diffusion of responsibility, 184 persuasion from, 192
study of individuals versus, 34–35 Digression, in indirectness, 184 Emotional intelligence (EQ), 23
transactional, 15–16 Direct authority, 167–169 Emotion-expressing conflict
Cultures, research on, 93–137 Direct communication style, 146 communication style, 319
cultural dimensions approach Direct plan, of routine messages, Emotion-expressive cultures, 160
to death in, 133–135 181–182 Emotion-repressive cultures, 160
doing and achieving, 112–118 Disagreement, groupthink versus, 310 Empiricism, ethical, 286–287
nature versus nurture in, 119–120 Discrimination, 22 Employment, lifetime, in Japan, 261, 386
overview, 103–104 Disillusionment, in culture shock, 18 Employment communication, 386–388
religion in, 120–130 Dislocation, culture shock as, Encarta CD-ROM encyclopedia,
thinking and knowing in, 106–111 17–18 289–290
time orientation in, 130–132 Disneyland, Hong Kong, 3 Encyclopedia Britannica, 289–290, 301
view of change in, 132–133 Dispute settlement, 375–381; see also English-speaking cultures, 203
generalizations about, 95–96, Problem solving Enron, Inc., 255, 271
99–100 DiStefano, Joseph, 466 Enryo-sasshi communication
GLOBE studies, 97 Diversity, increasing, 4 (Japan), 202
high-context versus low-context, Diversity Wheel, 469–470 Environment, language as reflection
100–103 Divine Liturgy, in Orthodox of, 46
by Hofstede, 96–97 Christianity, 127 Equality, nonverbal cues about, 229–230
individuals studied in, 98 Doing and achieving cultural Equalizer teams, 465–466
sources of, 104–106 dimension, 112–118 Equal opportunity, 390–391, 435
as theoretical construct, 98–99 Domain name registration, 379–380 Ethical considerations, 282–287
whole, 94–95 Dominating conflict communication Ethnocentric staffing, 58, 420
Culture shock, 4, 17–19, 416, 425 style, 318–319 Ethnocentrism, 8
Cuneiform language, 177–178 Dow Chemical Company, 298 Etic cultural studies, 95
 Index 497

Etiquette, in Japan, 202–203 Formal communication styles, 210–212 Great Depression, 399
Euphoria, in culture shock, 17 Formal information, 295–297 Great Schism, in Christianity, 127
Eurasia Foundation, 240 Framed messages, 211–212 Groups, 156–169
European Union (EU) Free trade agreements, 382 authority in, 167–169
antibribery legislation of, 366 Frustration, in culture shock, 18 blame generalized to, 309
English learning, 392 Functionalist research paradigm, decision making in, 305–308
“Europe” meaning, 142 30–31 form for behavior in, 161–163
expatriates, 424 Functional structure, in global horizontal versus hierarchical,
labor mobility issues in, 25 firm, 428 165–167
language interpreters for, 65 Funerals, cultural aspects information as link in, 293–294
national laws reconciled to, 387 of, 134–135 marginal and minority, 97
privacy regulations of, 384 mental representations of, 20–21
as trade agreement, 432 Gandhi, Mahatma, 255 negotiation and, 353–354
Expatriates, 416, 421, 424–425, 448, 454 Gatekeeper, as team role, 338–339 permanent membership of, 266
Explicit bargaining, 317–318 Gates, Bill, 255 private versus public personal
Extended family patterns, 154 Gautama, Siddhartha (Buddha), 123 matters, 163–165
External business message G cross (crux gammata) symbol, 2 seniority in, 285
channels, 208 Gemara, in Judaism, 124 temporary versus permanent,
Eye contact, 221–223 Gender 156–161
clothing restrictions and, Groupthink, 310, 465
Face, as Eastern cultural value 257–258 Guanxi relationships (China), 264
communicating to give and save, equal opportunity regulations and, Gudykunst, William B., 28
158–159 390–391 Guests, behavior of, 276–278
defined, 95 nonverbal cues about, 230 Guilt, communicating about, 160–161
gift giving and, 278 in self and self-identity, 151–156
in negotiations, 334 General Motors, Inc., 254, 451 Haj, in Islam, 128
saying “no” and, 195 Geocentric staffing, 59, 431 Hall, Edward T., 9, 19, 26, 101, 104
in short-term orientation, 97 Geographic structure, in global Hana, A Joint Venture between Health
in studies of individuals, 98 firm, 429 Snacks and Toka Foods case
Facebook.com, 7, 208, 296, 394 Geomancy, feng shui as, 116 study, 487–493
Face-to-face communication, 70–73; see Gestures, as nonverbal communication, Handshake, as “lingua franca,”
also Nonverbal communication 226–228 230–232
Facial expressions, 223–226 Gift giving, 278–280 Hardship allowances, for
Fairness Giri (indebtedness, Japanese expatriates, 421
negotiation advantage versus, 343–344 culture), 149 Hard versus soft information, 297–298
in results-oriented cultures, 283–284 Gladwell, Malcolm, 60 Harmony, 268–270, 334
Families, extended, 154 Global culture, 24–25 Harry Potter and the Sorcerer’s Stone
Family orientation-based business Global firms, 426–433 (Rowling), 1
structure, 438–440 communication in, 427–433 Harvard Business Review, 360
Family structures, power and, 267–268 defined, 409–410 Hasidism, in Judaism, 125
Fatalism, 117 structure of, 426–427 Hastings, Donald, 5
Feedback, in communication model, 174 Globalization, 270, 273 Head movements, as nonverbal
Femininity, in cultures, 96 GLOBE studies, 97, 145–147 communication, 226
Feng shui, 116 Goals-oriented societies, 113, 115 “Hidden agenda,” 350
Financial information, 394–401 Goetheinstitut, 67 Hierarchical versus horizontal groups,
Finisher, as team role, 339 Golden parachutes, for executives, 271 165–167
Five Pillars of Islam, 128 Goldman-Sachs, 449 Hierarchy, in negotiations, 335
Five Relationships of Confucius, 166 Google.com, 394 High-context cultures
Fluency, in language, 56–58 Governmental considerations; see argumentation in, 188
Ford Motor Company, 304, 396, 451 Legal and governmental authority in, 261
Foreign Corrupt Practices Act, 278, considerations communication in, 100–103,
282, 286, 366 Grameen Bank, 303 192–195, 200
Form, behaving according to, 161–163, “Grapevine,” for informal difference identification in, 470
335, 354–355 information, 295 dispute settlement in, 375–376
498 Index

High-context cultures (continued) Indirect communication style, 146 regulatory issues, 454–455
emotional display in, 355 Indirect plan, of routine messages, reports on merger, 455–457
form importance in, 354 182–185 intercultural business communication
information in, 291–292, 295 Individualistic cultures in, 458–475
negotiation tactics for, 359 basic societal unit in, 143–147 corporate strategy, 471–475
nonverbal communication in, 159 conflict management in, diverse teams and, 463–471
“resolution” of conflict in, 324–325 312–316 process of, 458–463
results versus relationships in, 114 defined, 96 in teams, 476–481
safety laws in, 389 group information in, 293 Interdependence, 335
silence in, 247–248 problem solving in, 309–310 Internal business message channels,
touching and, 233 teams in, 337–339, 342 206–208
Hinduism, 106, 119, 121–124, 133 third-party intervention conflict com- International Court of Justice
Hirohito, Emperor of Japan, 165 munication style and, 319 (Den Haag, Holland), 370
Hofstede, Geert, 9, 96–97, 115, women in, 152 International divisions, 417–426
145–146, 258, 312 Inductive reasoning, 198 Internationalization, 409–410; see also
Holden, James P., 456 Informal communication styles, Corporate culture
Holiday greetings, 281–282 210–212 International Telecommunications
Holmes, Oliver Wendell, 373 Informal information, 295–297 Union (ITU), 303
Holy Tradition, in Orthodox Information, 289–308; see also Internet
Christianity, 127 Problem solving domain name registration
Home Depot, Inc., 434 assessment of, 291–292 on, 379–380
Home leave, for expatriates, 421 business criteria for, 298–299 English as international language
Homophobia, 21 for decision making, 303–308 for, 61
Honesty, eye contact and, 221–222 financial, 394–401 as formal source of information,
Hong Kong Disneyland, 3 formal and informal, 295–297 299
Honor, negotiation and, 353–354 knowledge management and, international market development
Horizontal versus hierarchical groups, 301–303 and, 411
165–167 possession of, 292–294 learning about culture on, 7
Hospitality soft versus hard, 297–298 national store hours regulations
authority and, 259 sources of, 299–301 and, 384
expectations of, 274–275 Information exchange phase Interpersonal communication, 98
in negotiations, 351–352 of negotiations, 357–358 Interpreters, language, 64–80
traditions of, 253 Inshallah, in Islam, 128 choosing, 66
Host and guest behavior, 276–278 Instant messaging (IM), 85, 208 effective use of, 67–70
Host-country nationals, 422 Instrumentality, of Chinese for face-to-face communication,
House, Robert, 97 relationships, 264 70–73
Housing allowances, for expatriates, 421 Integrating conflict communication for written communication, 73–80
Human resources management, 262, 293 style, 317–318 Interpretivist research, 30–34, 294
Hussein, Saddam, 370 Integration, in culture shock, 18 Investment information, 394–401
Intellectual property, 379–381 Invitations, 274–275
Iacocca, Lee, 87, 255, 451 Intelligence Quotient (IQ), 23 “Iron rice bowl,” 440
IBM, Inc., 96, 245, 434 Intercultural communication Islam, 119, 127–129, 236, 267, 396
Ibn Battuta shopping mall (Dubai), 3 cross-cultural study versus, 27–28 Islamic law, 373–374, 391
Ibn Juzayy (14th century scholar), 3 schemata model for, 36–39
I-centered messages, 358 Intercultural dynamics in business, Japanese culture, role of words
Idea person, as team role, 338 447–482 in, 202–203
Ideas, in communication model, 174 applying cultural knowledge Jardine-Matheson Company, 184
Immigration, hostility to, 6 to, 481–482 J.D. Power & Associates, 299
Implementer, as team role, 339, 341 DaimlerChrysler example Jeep, 451
Implicit bargaining, 318 of, 447–457 Jobs, Steve, 107, 255
Import-export corporations, 410–415 compensation issues, 453–454 Joint ventures, 144, 254, 487–493; see
Indebtedness, 147–150 management issues, 452–453 also DaimlerChrysler merger
Independent and interdependent overview, 447–450 Jokes, avoiding, 71
self-construal, 142–143 preparation and training, 451–452 Judaism, 119, 124–125
 Index 499

Kant, Immanuel, 282 Legal and governmental considerations, safety laws in, 388–390
Karma, in Buddhism, 123 365–402 silence in, 247–248
Keating, Paul, 253 Anglo-American common law, teams in, 464
Kiwi culture (New Zealand), 146–147 372–373 touching and, 233
Klal Yisrael, in Judaism, 125 code law, 371 work-private time separation
Knowledge management, 301–303 in DaimlerChrysler merger, 454–455 in, 438
Kodak Corporation, 434 dispute settlement, 375–381 Luck, cultural view of, 115–117
Kohl, Helmut, 231 in financial information, 394–401 Lufthansa Airlines, 448
Komatsu Company, 54, 435 international versus national interests,
Kongo, Masakazu, 16 381–384 MacArthur, Douglas, 385
Kreft, Piet, 198 Islamic law, 373–374 Madoff, Bernard, 255
labor and management issues, Mahayana Buddhism, 123–124
Labor and management issues, 385–391 Management by Objectives
385–391 legal messages, 367–370 (MBO), 113
Labor mobility, 25 in marketing communication, Management issues, in
Laissez-faire attitude, 411 391–394 DaimlerChrysler merger,
Land’s End, Inc., 384 socialist law, 374–375 452–453
Langenscheidt New College German Lewis, Bernard, 396 Maori culture (New Zealand), 146, 232
Dictionary, 87 Lexus Co., 298 Mao Zedong, 154, 306
Language, 43–91; see also Legal and Lichtwehr PharmaAG, 85 Marginal and minority groups, 97
governmental considerations; Lidel Stores, 384 Marketing communication, 391–394
Nonverbal communication Lifetime employment, in Japan, Marlboro Cigarettes, Inc., 392
acronyms in, 51 261, 386 Mary Kay Cosmetics, 272
in Arab presentation, 111 Lincoln, Abraham, 242 Masculinity, in cultures, 96
business considerations, 54–55, Lincoln Electric, Inc., 5–6 Maytag, Inc., 395
86–89 Linear view of time, 132 Maznevski, Martha, 466
changes in, 48–51 Linguistic considerations, 52–54 McDonald’s, Inc., 6, 25, 224, 272, 379,
company, 58–63 Linkage, in Asian logic, 110–111 392, 409
as environment reflection, 46 Listening, 322 McHenry, Robert, 301
fluency in, 56–58 Localized approach, 6 McLeod, Roderick, 111
in global firms, 432 Logic Mead, Richard, 286–287, 322, 357
interpreters of, 64–80 Arab, 111 Mediated authority, 167–169
choosing, 66 argumentation and, 187–191 Mediation, 315
effective use of, 67–70 Asian, 109–111 Mental representations, of groups,
for face-to-face communication, Western, 109 20–21
70–73 Long-term orientation, in cultures, 97 Mercedes-Benz, 395, 432, 449, 451
for written communication, 73–80 Lord Mansfield v. East India Co. “Merger mania,” 271
language barrier consequences, (1761), 373 Messages
43–44, 51 Low-context cultures authority in structuring, 252–258
linguistic considerations, 52–54 communication in, 100–103, 193 business channels for, 206–210
in multinational corporation, 420 decision making in, 304–305 framed, 211–212
political considerations, 56 difference identification in, 470 I-centered versus you-viewpoint, 358
power distance and, 264–267 emotional display in, 355 legal, 367–370
structure of, 203–206 formal information in, 295 persuasive, 186–192
technology impacts on, 80–86 incorporation in, 405–406 problem-solving, 195–199
as values reflection, 46–47 indirect-plan communication and, routine, 181–185
word meaning in, 47–48 185–186 unwelcome, 192–195
Latin American cultures, 267–268 information in, 291–292 word choice in, 199–206
Laurent, André, 97 negotiation tactics for, 359 Metaphors, 184, 341
Law; see Legal and governmental nonverbal communication in, 159 Microsoft, Inc., 25, 290, 410, 413
considerations oral channels of communication and, Milošević, Slobodan, 370
Leader, as team role, 337–340 209–210 Mindfulness, 478
Learning, cultural aspects of, problem solving in, 309 Ministry of International Trade and
107–108, 335 “resolution” of conflict in, 324–325 Investment (MITI, Japan), 51, 266
500 Index

Minitel Computers, 382 physical context of, 349–352 Occupational Safety and Health
Mishna, in Judaism, 124 relationship development phase Administration (OSHA), 389
Mitbestimmung (German of, 356–357 Office space, 236–241
co-determination) laws, 385 team orientation of, 345–349 OLs (office ladies, in Japan), 154
Mitsubishi Motors (Japan), 262, 266, transactional culture in, 15–16 On (indebtedness, Japanese culture), 149
275, 386, 409, 435, 448–449, 451, Negotiator, as team role, 339 Onstage elements of culture, 14–15
456, 463 Nestlé, 196, 430, 442 “Open agenda,” 350
Mitsui Trading Company (Japan), 262, Networked bulletin boards, 208 Open-information cultures, 300
388, 423, 436, 437 New Cassel’s French Dictionary, 87 Oral channels of communication,
Mitsukoshi in the Ginza (Japan), 279 Nibbana, in Buddhism, 123 209–210
Mobile electronic communication, 349 Nirvana, in Hinduism, 123 Oral tradition, 146
Modern cultures, women in, 152 Nisbett, Richard, 111 Organization Man, The (Whyte), 310
Mohammed, in Islam, 128, 201 Noble Eight-fold Path, in Buddhism, 123 Orthodoxism, in Christianity, 125, 127
Monarchies, 165 Noises, nonword, 220–221 Orthodox Judaism, 125
Monetary recognition, 271–272 Nomura Securities (Japan), 437 Otis Elevator, 389
Monochronic cultures, 132, 351, 355 Non-contradiction, principle of, Outliers: The Story of Success
Moral high ground, 191 109, 189 (Gladwell), 60
Moses, 6 Nonmonetary rewards for performance, Own-goal concerns, 342
Motivation, in cultural intelligence, 23 272–274
Motorola, Inc., 396, 424 Nonnative speakers, communication Paralanguage, 220–221
Multicultural workforces, 145 with, 70 Passive voice, in messages, 181
Multi-disciplinary research, 27 Nonverbal communication, 159, Patents, 380
Multinational corporations, 415–426 217–250 Patience, as priority, 132
defined, 409 appearance, 244–247 Patron-client relationship, 168
international divisions in, 417–426 in business communication, 68 Peace Corps, 252
national subsidiaries in, 415–417 cross-cultural study of, 30 Pension funds, 454
Muslim religion; see Islam eye contact, 221–223 Pepsico, Inc., 25
facial expressions, 223–226 Perception, culture and, 35–36
NAFOSAT, 442 gestures, 226–228 Performance, recognition
NAFTA (North American Free Trade in high-context cultures, 58 of, 271–274
Agreement), 365, 432, 485 influencers of, 218–219 Permanent groups, 156–161
Nakane, Chie, 433, 435 in negotiation, 351 Personal effectiveness of teams, 337
Nakasone, Yasuhiro, 162 office space, 236–241 Personal space, 226
Naming system protocol, 354–355 paralanguage, 220–221 Persuasion
Napoleon, 371 in perceptions, 35 messages of, 186–192
Napster, 381 private space, 234–236 as negotiation phase, 358–361
National subsidiaries, 415–417 public space, 241–244 Pezeshkpur, C., 439
Nature versus nurture issues, 119–120 silence, 247–248, 355–356 Philip Morris, Inc., 304
Neglecting conflict communication in teams, 340 Physical context of negotiations,
style, 319–320 timing in spoken exchanges, 349–352
Negotiations, 329–364 228–230 Placating, 316
Chinese versus Canadian example touching, 230–234 Political considerations, in language, 56
of, 332–334 Nonword noises, 220–221 Political principles-based business
communication style in, 352–356 Non zero-sum negotiation, 344 structure, 440–443
for compromise, 315 North American Free Trade Agreement Polycentric staffing, 58, 273, 420–421
concession and agreement phase (NAFTA), 365, 432, 485 Polychronic cultures, 132, 351
of, 361–362 Popular culture, 25–26
conflict versus, 309 Objective reality, of positivist Positivist research, 29–33, 294
cultural knowledge to help, 334–342 studies, 29 Posture movements, as nonverbal
information exchange phase Obligation, 147–150, 334 communication, 227–228
of, 357–358 Obliging conflict communication style, Power, 258–268
interaction in, 331–332 316–317 decision making and, 306
outcome expectations of, 343–345 Observed behaviors, studies based on, in family and societal structures,
persuasion phase of, 358–361 27, 29 267–268
 Index 501

information as, 294 Receivers, in communication Ricks, David, 66

language in, 264–267 model, 174 Rihla (Ibn Juzayy), 3
tone and behavior in, 259–264 Reciprocity, 95–96, 261 Ringi-seido method of organizational
Power distance, 96, 312–316 Recognition of performance, 271–274 decision making (Japan), 307
Practical intelligence (PQ), 23 Reconstructionist Judaism, 125 Risk, uncertainty versus, 115
Predestination, in Protestantism, Recorder, as team role, 338 Roman Catholic Church, 125
126–127 Reductionist approach, Western, 350 Roving assignments, as staffing
Prejudice, 21–22 Reformation, Protestant, 126 pattern, 59
Presentation, in Arab logic, 111, 190 Reform Judaism, 125 Rowling, J. K., 1
Principle of non-contradiction, Reincarnation, in Hinduism, 133 Rule-bending societies, 118
109, 189 Reintegration, of expatriates, 425 Russian Mafia, 374
Privacy Relational effectiveness of teams, 337
concept of, 47 “Relationship marketing,” 208 Sadat, Anwar, 234
European Union regulations for, 384 Relationship-oriented cultures, 314, Safety laws, in workplace, 388–390
housing design and, 235–236 323, 477 Safra, Jaqui, 289
invasion of, 222 Relationships, 251–288 Salah, in Islam, 128
of personal information, 293 assertiveness versus harmony Samurai, in Japan, 143
Private space, 234–236 in, 268–270 SARS (severe acute respiratory
Problem solving, 308–325; see also ethical considerations in, 282–287 syndrome), 84
Information; Legal and in negotiations, 332–334, 356–357 Sawm, in Islam, 128
governmental considerations power distance, 258–268 Schedule, for negotiations, 350
appropriate style of, 479 family and societal structures in, Schlumberger, Inc., 423
communication modes for, 316–320 267–268 Schrempp, Juergen, 71, 271, 447–449,
conflict management in, 310–316 language in, 264–267 451, 453, 454–455, 457–458, 461,
intercultural, 320–325 tone and behavior in, 259–264 463, 474
problem definition for, 309–310 as priority, 113–114 Schröder, Gerhard, 387
Problem-solving messages, 195–199 recognition of performance in, Schwartz, Shalom, 97
Procter & Gamble, 81, 262 271–274 Schwarzenegger, Arnold, 166
Product structure, in global firm, respect for authority in, 252–258 “Secrecy” test, 287
429–430 social contacts in, 274–282 Securities and Exchange Commission
Profiteering, 442 controversy in, 280–281 (SEC), 272, 399
Projected cognitive similarity, 20, 322 gift giving, 278–280 Self and self-identity, 139–156
Protestantism, 125–126 holiday greetings, 281–282 approaches to, 141–142
Protocol, 253, 279, 354 host and guest behavior, 276–278 as basic unit of society, 143–147
Prototypes, 100 invitations, 274–275 gender value in, 151–156
Public space, 241–244 Reliability, 32, 291–292 obligation and indebtedness in,
Punctuality, 131, 355 Religion, 120–130 147–150
Pye, Lucien, 325 Buddhism, 123–124 self-construal in, 142–143
Christianity, 125–127 seniority value in, 150–151
Quaker Oats, 379 Hinduism, 121–123 Self-concept, 152
Qualitative research, 33 Islam, 127–129 Self-construal, 142–143, 341
Quality circles, 309 Judaism, 124–125 Self-face concerns, 342
Quantitative data collection, 31–32 Renault, 397 Self-knowledge, 19–22
Questionnaires, 29, 31 Replication of positivist studies, 29 Self-promotion, 355
Questions, asking, 107–108, 335 “Resolution,” meaning of, 324–325 Senders, in communication model, 174
Qur’an, in Islam, 129, 190, 201, Respect, signals of, 252–254 Seniority
246, 438 Responsibility, diffusion of, 184 in groups, 285
Results, as priority, 113–114, 131 in negotiations, 335
Racism, 21 Results-oriented cultures, 184 nonverbal cues about, 230
Rankings fairness in, 283–284 in self and self-identity, 150–151
cultural basis of, 12–13 groupthink in, 310 Sequential-task culture, 112–113
of negotiated issues, 333–334 impatience of, 322 Sexism, 21
Reagan, Ronald, 162 reasoning in, 477 Shahadah, in Islam, 128
Reasoning, 109, 198, 477 Reverse culture shock, 18–19, 425 Shame, 160–161, 334
502 Index

Sharia (Islamic law), 373–374 Sultan of Brunei, 12 Tito, Marshall, 24

Shell Oil, 426 Sunni Islam, 129 Tokyu Corporation (Japan), 266
Shia Islam, 129 Sun Tzu, 19, 353 Tone, power and, 259–264
Short-term orientation, in cultures, 97 Superiority, assumptions about, 7–8 Torah, in Judaism, 124
Silence Surrogate for leader, as team role, 340 Touching, as nonverbal communication,
as cultural value, 112, 247–248 Surveys, values, 97 230–234
as negotiating tool, 355–356 Suzuki of Japan, 254 Toyota Motors, 435
Silent Language, The (Hall), 26 Swastika symbol, 2 Trademarks and intellectual property,
Simultaneous task culture, Syllogistic reasoning, 198 379–381
112–113, 335 Traditional cultures, 151
Skeptic, as team role, 338 Talib, Ali ibn Abi, 129 Transactional cultures, 15–16
Skype video-voice software, 84, 210 “Tall poppy syndrome,” 355 Translation, 64, 346–347, 368; see also
Slang, avoiding, 71 Talmud, in Judaism, 124 Interpreters, language
Smart cars, 432, 449 Task effectiveness of teams, 337 Transparency, in business
Smiling, as nonverbal communication, Tasks, sequential and simultaneous, information, 271
223–224 112–113, 335 Trompenaars, Fons, 97
Social contacts, 274–282 Teams Tuition support, for expatriates, 421
controversy in, 280–281 in collectivistic cultures, 339–341 Twitter.com, 208, 394
gift giving, 278–280 communication in, 341–342 Tyco International, Inc., 271
holiday greetings, 281–282 culturally diverse, 463–471 Tylor, Edward, 10
host and guest behavior, 276–278 in individualistic cultures,
invitations, 274–275 337–339 Uncertainty avoidance versus tolerance,
Social intelligence (SQ), 23 intercultural business dynamics 96, 115, 312–316, 336
Socialist law, 374–375 in, 476–481 Uniform Commercial Code (UCC), 372
Social psychology approach to negotiation, 345–349 Unilever, 198, 426
self-identity, 141 workplace goals of, 336–337 Union Carbide, Inc., 191
Social welfare state, Germany as, 387 Technology United Nations, 24, 51, 65
Soft versus hard information, 297–298 as cultural change agent, 26 United Nations Development Fund
Sonobe, Takashi, 456–457 English as international language for Women (UNIFEM), 155
Sony, Inc., 25, 145 for, 61 United Nations International
Space globalization and, 302 Telecommunications Union
office, 236–241 language affected by, 80–86 (ITU), 303
personal, 226 for videoconferencing, 84 United States Foreign Service Institute
private, 234–236 Teleconferencing, 61, 210 (FSI), 26–27
public, 241–244 Temporary groups, 156–161 Universality, assumptions about, 8
Specialist, as team role, 339, 341 Terpstra, Vern, 323 University of Michigan, 448
Speculation, 442 Terrorism, 84 University of Pennsylvania, 97
Speech, timing in, 228–230 Text messaging, 180, 208 Unwelcome messages, 192–195
Stalemate, in negotiation, 344–345 Thatcher, Margaret, 234 Utang no loob (indebtedness, Filipino
Standard & Poor’s 500 index, 454 Theoretical construct, culture as, 97–99 culture), 149
Standing on ceremony, 163 Theravada Buddhism, 123–124
Status, negotiation and, 345–346, 349 Thinking and knowing cultural Validity, 33, 34, 292
Stereotyping, 99–100 dimension, 106–111 Values
Stern magazine, 452 Third-party intervention conflict cultural basis of, 12–14
Stewart, Edward C., 184 communication style, 319, 480 language as reflection of, 46–47
Storytelling, 195–197, 341 Thunderbird School of International of silence, 112
Strategic negotiations, 345 Management (Arizona), 437 surveys on, 97
Structured behavior channels, 209 Time management, 112, 130–132 Verbatim translation, 64
Subjectivity, of interpretivist Timing Verein Deutsche Sprache, 50
research, 34 of communication, 181 Verification, of informal information,
Subsidiaries, 415–417 in negotiations, 332, 334, 351 296, 298
Suffering, in Buddhism, 123 in spoken exchanges, 228–230 Victor, David A., 306
Suggestion-maker, as team role, work-private separation of, 438 Videoconferencing, 84, 210
338, 340 Titles, 162, 260 Vocal qualifiers, 220
 Index 503

Voicemail, 210 Win-win outcomes, in negotiation, conventions of, 74–75

Volkswagen, 379 344–345 French business letter example, 78–79
Voltaire, 116 Wisdom, receiving, 107–108 German business letter example,
Volvo, 424 Women, as equals or subordinates, 75–78
151–156; see also Gender Iranian business letter example, 78–82
Walmart Stores, Inc., 224, 384 Woolnough, Martin, 196, 442 organizational patterns in, 73–74
Welch, Jack, 271 Word choice U.S. business letter example, 75–76
West Africa Businesswoman’s Network in Arab presentation, 111
(WABNET), 155 in communication to other cultures, Xiaoton, Fei, 157
Western logic, 109, 188–189 199–206
Wharton Business School, University meaning in, 47–48 Yin-yang symbols, in Asian logic,
of Pennsylvania, 97 vocal qualifiers and, 220 109–110
What Else Can Go Wrong? case study, World Bank, 303 Yousef, Fathi, 112
484–487 WorldCom, Inc., 271 Youth-oriented cultures, 151
Whirlpool, Inc., 413 World Trade Center, 370 YouTube.com, 7, 300
White space, in written World Trade Organization (WTO), 25, You-viewpoint messages, 358
communication, 73 51, 381–382
Whorf, Benjamin, 203–204 World Wide Web, 299 Zakat, in Islam, 128
Whyte, William H., 310 Wozniak, Stephen, 107 Zero-sum negotiation, 344
Wikipedia.com, 290, 301 Written communication, 73–80 Zetsche, Dieter, 72, 449, 456–457,
Wilson Sporting Goods, 426 Chinese business letter example, 80, 462–463
Win-lose outcomes, in negotiation, 344 83–84 Zionism, in Judaism, 125