The Recurring Understanding of Cultural Intelligence A Qualitative Study of Companies in the Forestry Based Industry in Sweden Authors: Sara Nilsson Xuan-Dan Truong Supervisor: Nils Wåhlin Student Umeå School of Business and Economics Autumn semester 2012 Master thesis, two-year, 30 hp Table of Contents 1. INTRODUCTION ................................................................................................................. 1! 1.1 Background ...................................................................................................................... 2! 1.2 Problem Background ........................................................................................................ 3! 1.3 Research Gap .................................................................................................................... 5! 1.4 Research Question ............................................................................................................ 5! 1.5 Purpose ............................................................................................................................. 5! 1.6 Significance of the Study ................................................................................................. 5! 1.7 Limitations ....................................................................................................................... 5! 2. THEORETICAL METHODOLOGY .................................................................................... 7! 2.1 Preconceptions ................................................................................................................. 7! 2.2 Research Philosophy ........................................................................................................ 8! 2.2.1 Research Traditions ................................................................................................... 8! 2.2.2 Ontology .................................................................................................................. 10! 2.2.3 Epistemology ........................................................................................................... 11! 2.2.4 Research Paradigms ................................................................................................. 13! 2.2.5 Research Approach .................................................................................................. 16! 2.2.6 Research Strategy .................................................................................................... 17! 2.2.7 Research Design ...................................................................................................... 20! 2.2.8 Research Method ..................................................................................................... 20! 2.3 Secondary Sources ......................................................................................................... 21! 2.3.1 Collecting Secondary Sources ................................................................................. 21! 2.3.2 Criticism of Secondary Sources .............................................................................. 22! 3. LITERATURE REVIEW .................................................................................................... 24! 3.1 Internationalization ......................................................................................................... 24! 3.2 Uppsala Internationalization Process Model .................................................................. 24! 3.2.1 Internationalization Pattern ...................................................................................... 24! 3.2.1.1 Establishment Chain ......................................................................................... 24! 3.2.1.2 Psychic Distance Chain ..................................................................................... 25! 3.2.2 Internationalization Model ...................................................................................... 26! 3.2.2.1 State Aspects ..................................................................................................... 26! 3.2.2.1.1 Market Commitment .................................................................................. 26! 3.2.2.1.2 Market Knowledge ..................................................................................... 27! I 3.2.2.2. Change Aspect ................................................................................................. 27! 3.2.2.2.1 Commitment Decisions .............................................................................. 27! 3.2.2.2.2 Current Activities ....................................................................................... 28! 3.3 Limitations of the Uppsala Internationalization Process Model .................................... 28! 3.4 Network Approach ......................................................................................................... 29! 3.5 Business Network Model of the Internationalization Process ....................................... 30! 3.6 Culture ............................................................................................................................ 31! 3.6.1 Organizational Culture ............................................................................................ 34! 3.7 Management ................................................................................................................... 35! 3.8 Hofstede’s Cultural Dimensions .................................................................................... 37! 3.8.1 Power Distance ........................................................................................................ 37! 3.8.2 Uncertainty Avoidance ............................................................................................ 38! 3.8.3 Individualism versus Collectivism .......................................................................... 38! 3.8.4 Masculinity versus Femininity ................................................................................ 38! 3.8.5 Long-Term versus Short-Term Orientation ............................................................. 39! 3.8.6 Indulgence versus Restraint ..................................................................................... 40! 3.8.7 Critique of Hofstede’s Cultural Dimensions ........................................................... 40! 3.9 Hall’s High-Context versus Low-Context Culture ......................................................... 41! 3.9.1 Critique of Hall’s High-Context versus Low-Context Culture ............................... 41! 3.10 Other Researchers in National Cultures ....................................................................... 42! 3.11 Business Communication and Intercultural Business Communication ....................... 44! 3.12 Communication Accommodation Theory (CAT) ........................................................ 47! 3.12.1 Intercultural Communication ................................................................................. 50! 3.12.2 Limitations of the Communication Accommodation Theory (CAT) .................... 50! 3.13 Four-Sides Model by Friedemann Schulz von Thun ................................................... 51! 3.13.1 Limitations of the Four-Sides Model ..................................................................... 52! 3.14 Language ...................................................................................................................... 52! 3.15 Cultural Intelligence ..................................................................................................... 53! 3.16 Developed Model of the Four Themes ......................................................................... 56! 4. EMPIRICAL METHOD ...................................................................................................... 58! 4.1 Introduction .................................................................................................................... 58! 4.2 Sample Selection ............................................................................................................ 58! 4.2.1 Criticism of the Sample Selection ........................................................................... 60! 4.3 Data Collection - Qualitative Interviews ........................................................................ 60! II 4.3.1 Conducting the Interviews ....................................................................................... 62! 4.3.2 Transcribing the Interviews ..................................................................................... 64! 4.4 Ethical Considerations .................................................................................................... 64! 4.5 Criticism of Primary Sources ......................................................................................... 66! 5. EMPIRICAL FINDINGS .................................................................................................... 67! 5.1 Background Information About the Companies and the Interviewees .......................... 67! 5.2 Internationalization ......................................................................................................... 67! 5.3 Culture and Management ............................................................................................... 70! 5.4 Communication .............................................................................................................