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The Cultural Dimension of International Business

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The Cultural Dimension of International Business FOURTH EDITION THE CULTURAL DIMENSION OF INTERNATIONAL BUSINESS Gary P. Ferraro The University of North Carolina at Charlotte Upper Saddle River, New Jersey 07458 Library of Congress Cataloging-in-Publication Data Ferraro, Gary P. The cultural dimension of international business 1 Gary P. Ferraro.4th ed. p. cm. Includes bibliographical references and index. ISBN 0-13-090327-2 1. International business enterprise-Social aspects. 2. Intercultural communication. 3. Technical assistance-Anthropologicalaspects. I. Title HD2755.5 .F48 2001 320.3'5--dc21 00-067759 For Avery and Mitchell, with the hope that their generation will become the best intercultural communicators yet. VP, Editoral Director: Laura Pearson Photo Researcher: Sheila Norman AVP, Publisher: Nancy Roberts Interior Image Specialist: Beth Boyd Editorial Assistant: Lee Peterson Manager, Rights and Permissions: Kay Dellosa Project Manager: Merrill Peterson Director, Image Resource Center: Melinda Reo Cover Director: Jayne Conte Marketing Manager: Chris Barker Cover Design: Bruce Kenselaar Prepress and Manufacturing Buyer: Ben Smith Cover Photo: Steve Mason/PhotoDisc, Inc. This book was set in 10112 Times New Roman by DM Cradle Associates Inc. and was printed and bound by Courier Companies, Inc. The cover was printed by Phoenix Color Corp. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America ISBN 0-13-0'70327-2 PRENTICE-HALL INTERNATIONAL (UK) LIMITED, London PRENTICE-HALL OF AUSTRALIA PTY. LIMITED, Sydney PRENTICE-HALL CANADA INC.,Toronto PRENTICE-HALLHISPANOAMERICANA, S.A., Mexico PRENTICE-HALLOF I NDIA PRNATE LIMITED, New Delhi PRENTICE-HALL OF JAPAN, INC., To& PEARSONEDUCATION ASIA PTE.LTD., Singapore EDITORAPRENTICE-HALL DO BRASIL,L TDA., Rio de Janeiro Contents Preface vii 1. Cultural Anthropology and International Business, I The Anthropological Perspective, 2 Cultural Anthropology and Business, 6 Culture and International Business, 7 The Need for Greater Awareness of the Cultural Environment, 9 International Competency-A National Problem, 15 2. Culture and lnternational Business: A Conceptual Approach, 18 Culture Defined, 18 Culture Is Learned, 20 Culture Influences Biological Processes, 22 Cultural Universals, 24 Economic Systems 26 Marriage and Family Systems 27 Educational Systems 28 Social Control Systems 28 Supernatural Belief Systems 29 Cultural Change, 29 Ethnocentrism, 35 Cultures Are Integrated Wholes, 37 Conclusion, 41 Cross-Cultural Scendrios, 43 iv Contents 3. Communicating across Cultures: Language, 46 The Need for Linguistic Proficiency in International Business, 46 Linguistic Diversity, 50 Language and Culture, 53 The Influence of Culture on Language 53 The Influence of Language on Culture 54 Language Mirrors Values 56 Explicit versus Implicit Communication, 57 Language and Social Context, 62 Some Additional Complicating Factors 65 Slang 65 Euphemisms 65 Proverbs 66 ErbalDueling 67 Humor 68 Conversational Taboos 69 Conclusion, 70 Cross-Cultural Scenarios, 70 4. Communicating across Cultures: The Nonverbal Dimension, 73 The Nature of Nonverbal Communication, 73 Body Posture, 76 Hand Gestures, 79 Facial Expressions, 82 Gaze, 84 Proxemics, 86 Bodily Contact (Touching), 89 Conclusion, 93 Cross-Cultural Scenarios, 94 5. Contrasting Cultural Values, 97 The Individual-Collective Dimension, 100 How This Value Plays Out in the Two Types of Society I01 Implications for Business 103 The Equality-Hierarchy Dimension, 105 How This Value Plays Out in the Two Types of Society 106 Implications for Business 107 The Tough-Tender Dimension, 108 How This Value Plays Out in the Two Types of Society 110 Implications for Business 11 1 The Uncertainty-Avoidance Dimension, 112 How This Value Plays Out in the Two Types of Society 114 Implications for Business 115 I I Contents v The Time Dimension, 115 Precise versus Loose Reckoning of Time 115 Sequential versus Synchronized Timing 117 Past, Present, and Future Orientations 118 How This Value Plays Out in Dzfferent Types of Societies I20 Implications for Business 121 Conclusion, 121 Cross-Cultural Scenarios, 122 6. Negotiating across Cultures, 125 The Nature of Cross-Cultural Negotiation, 126 Where to Negotiate, 127 Effective Strategies fdr International Negotiators, 129 Concentrate on I Long-Term Relationships, Not Short-Term Contracts 129 Focus on the Interests behind the Positions I30 Avoid Overreliance on Cultural Generalizations 132 Be Sensitive to Timing I33 Remain Flexible 134 Prepare Carefully 134 Learn to Listen; Not Just Speak 136 The Use of Interpretors, 138 The Global Negotiator, 139 Cross-Cultural Scenarios, 140 7. Coping with Culture Shock, 142 The Nature of Culture Shock, 142 Minimizing Culture Shock, 148 Cross-Cultural Scenzirios, 154 8. Developing Global Mdinagers, 157 Selection, 159 I ~ommunicatiohSkill 160 Personality Traits 160 Motivation 161 Family Circumstances 161 Cross-Cultural Training, 163 Repatriation, 168 1 Global Managers for the Twenty-First Century, 171 Cross-Cultural Scenarios, 178 Appendix A Cross-Cultural Scenario Discussions, 180 Appendix B Locating R'elevant Cultural Information, 188 The Traditional Anthropological Approach, I88 HRAF: An Underutilized Cultural Database, 189 vi Contents Documentary Sources Useful in Developing a Cultural Profile, 190 Culture-Specific Associations 190 Some Country-Specific Series 190 US. Government Sources 191 Sources of Country-Speczjk News and Current Events 191 Sources on Business Customs and Protocols 192 The Electronic Library 193 Human Resources for Culture-Specific Information, 194 One b Own Company 194 Academia 194 Foreign Trade Ofices 195 Private-Sector Consultants and Trainers 195 The Search for Cultural Information upon Arrival, 196 In-Country Documentary Resources 196 In-Country Human Resources 19 7 Conclusion, 198 References, 199 Photo Credits, 207 Index, 208 Preface This book is aimed at demonstrating how the theory and insights of cultural anthropol- ogy can positively influence the conduct of international business. To date, anthropolo- gists have given embarrassingly little attention to this subject, and writers in the field of international management and marketing, although acknowledging the importance of the cultural dimension, have dealt with it in a cursory and anecdotal fashion. This book- which explores the contributions that cultural anthropology can make to the more effec- tive and humane conduct of international business--can serve the interests of both the international business community and the discipline of anthropology, which is continu- ally searching for new, nonacademic environments in which to make practical contribu- tions. Specifically, the book takes a fourfold approach to understanding the cultural dimension of international business. I. Culture-General Approach: Making the Connections between Anthropological Theory (Generalizations) and International Business Chapter 2 provides an in-depth look at the concept of culture, what generaliza- tions hold true for all cultures of the world, and the implications of those generaliza- tions for international business. This chapter is predicated on the notion that it is impossible for anyone to master all of the specific cultural facts about the thousands of cultures found in the world today. Thus, a more conceptual approach is needed. The chapter begins with various definitions of the culture concept, followed by some im- portant generalizations that can be usefully applied to any cross-cultural situation. The importance of these cultural generalizations for the conduct of international business is then discussed. viii Preface II. Understanding Communication Patterns--Verbal And Nonverbal In Chapters 3 and 4 we examine some of the critical dimensions of communication, both verbal and nonverbal, in a cross-cultural business setting. Effective communication between people from the same cultural and linguistic group is often difficult enough, but when one is attempting to communicate with people who speak little or no English- and have different ideas, attitudes, assumptions, perceptions, and ways of doing things- the chances for miscommunication increase enormously. In Chapter 3, we examine the critical importance of language competence in an international business situation, the interrelatedness between language and culture, the situational use of language, and some additional factors (such as slang and euphemisms) that can further complicate verbal communication in an international business context. In Chapter 4 we discuss the importance of knowing the nonverbal communication patterns prevalent in the international business arena. As important as language is to sending and receiving messages, nonverbal communication is perhaps even more im- portant. Not only do nonverbal cues help us interpret verbal messages, but they are also responsible in their own right for the majority of the messages that make up human com- munication. Six major modes of communicating nonverbally-posture, hand gestures, fa- cial expressions, eye contact, proxemics, and touching-are discussed in a cross-cultural perspective. The aim of this chapter is to demonstrate how many ways there are to mis- communicate in a cross-cultural business setting unless one is familiar with the nonver- bal patterns of communication in addition to the linguistic patterns. Ill. Cultural Self-Awareness: Their Values and Ours Chapter 5, dealing with values, is designed with two purposes in mind.
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