International Managers and Cultural Barriers: An Empirical Study in the Garment and Textile Industry in Bangladesh Md Asaduzzaman Khan A Thesis Submitted in Partial Fulfilment of the Requirements of the London South Bank University for the Degree of Doctor of Philosophy Research Undertaken in London South Bank University Business School February 2019 Abstract This research investigates the cultural barriers which face international managers and the significance of international managers on Industrial Relations (IR)/Human Resource Management (HRM) practices within the Garment and Textile (G & T) industry in Bangladesh. After the Rana Plaza building collapse, the Bangladesh state undertook measures to address a variety of IR/HRM related issues which included those of health & safety, working conditions and trade unions. It is noted that international managers have played a substantial role but there remain some limitations which are discussed. Based on a review of the literature, the research develops a model to identify how effective international managers are in overcoming cultural barriers. The research methodology is based on a theoretical model which brings together a number of factors which include cultural characteristics. This is tested through triangulation; analysis of primary data interviews which are based within selected companies interviews, open-ended and structured interviews, and the analysis of a survey questionnaire. For this research, Hofstedes, Trompenaars and Ingleharts model have been drawn upon because their work provides both a theoretical and practical contribution to culture and management in major developing countries such as Bangladesh. This exploration of the cultural context within Bangladeshi identifies various differences between Western and non-Western culture. The Bangladeshi culture and non-Western culture particularly in South Asia has substantial similarities. Bangladesh retains what is probably the most traditional and collective culture in South Asia. These collectivist traits are reflected in both the research and conceptual model. Therefore, these contextual factors offer fertile ground for the future development of a model for understanding how international managers adapt to the environment within Bangladesh. A modified theoritical model from selected theories allowing a framework for the research. In line with the empirical findings, the cultural characteristics of language, culture, trade unions, health & safety and political understanding are all significant for international managers in the G & T industry in Bangladesh. With regards to language barriers, the research has identified that language problems create a communication gap between international managers and IR actors, this is notable between trade union and government officials; hence the cultural barriers. Findings suggest that the non- Western international managers such as those from India and Sri Lanka do not encounter language problems. Within the linguistic sphere, Indian and Sri Lankan international managers have a basic grounding in Bangla (Bangladeshi language). This familiarity extends beyond language and includes culture. With regard to health & safety issues, the findings suggest that Western international managers show a higher level of awareness than non-Western international managers. This heightened ii awareness is especially contrasted with those managers from India, Sri Lanka and China. This may be because of the similarities of cultural characteristics. In line with HRM practices, the Multinational Companies (MNCs) provide an exemplar of the introduction of corporate HRM policies in the G & T industry in Bangladesh. The empirical study of this research found that Western international managers follow different HR policies but they have limited presence compared to the non-Western international managers. The non-Western international managers particularly those from India and Sri Lanka tend not to follow corporate HRM practices. These countries and Bangladesh have a similar cultural framework and therefore a similar paradigm of values and understanding. This research also contributes to the understanding of the relationship between selected actors in the G& T industry. The empirical evidence in the broad fields of IR/HRM for Bangladesh is scant and the findings make a significant contribution to knowledge. Therefore, this research makes a contribution to understanding selected actors within the Bangladeshi system. iii Acknowledgements I would like to express sincere thanks and worm acknowledgments to my supervisory team, Professor Karl Koch, Dr. John Opute and Ms Katharine Brymer, their supervision was always significant and optimistic. Special thanks to Professor Karl Koch, my director of studies and supervisor. His patience, availability and willingness to provide me exceptional supervision is much better experienced than imagined. His approach to supervision has set an example and standard for me to follow in my future academic career. Without his supervision, I would surely have been splashing about in the shallow end of the study. I feel both privileged and honoured to be his student. I would also like to express warmest thanks to Mr Saneth Senarath, Chief Financial Officer of Brandix Casualwear Bangladesh Ltd, for his participation in open-ended and structured interviews and also encouraged other staff (international managers) to participate in my study. My sincere appreciation to Mr Colin Knapp for proof reading this work. My family has been the source of my strength and without them nothing in my life would make any sense. They are the pillars of my success. Very special thanks to my dear mother; it is her deepest love and devotion to me that helped me to be where I am today. She selflessly made many sacrifices for me to excel in my studies. Her love and belief in me kept me going during my study. The greatest mother ever…I am proud to be her son. Words cannot fully express my appreciation and gratitude to my wife, Mrs Mariam Sultana, for her never-ending commitment and dedication. Special thanks to our prettiest and lovely daughter, Ms Marwa Jaman Khan, who received less attention than she deserved due to my devotion to this study, I am grateful my little heart for your understanding. Finally, I would like to express my sincere thanks to almighty Allah (God) for giving me the grace, wisdom and knowledge to carrying out this research effectively. iv Table of Contents Abstract………….. ...................................................................................................... ii Acknowledgements ..................................................................................................... iv Table of Contents ......................................................................................................... v List of Abbreviations ................................................................................................... x List of Tables ............................................................................................................... xi List of Figures ........................................................................................................... xiii List of Charts ............................................................................................................. xiv Chapter 1 : Introduction and Research Context ................................................... 1 1.1 Introduction ....................................................................................................... 1 1.2 Bangladesh Economy in Global Context .......................................................... 4 1.3 Global Framework for the Garment and Textile industry ................................ 6 1.4 Lack of Research in IR/HRM Area .................................................................. 7 1.5 Significance of the Research ............................................................................ 8 1.6 Significance of International Managers ............................................................ 9 1.7 Research Aims and Objectives ....................................................................... 10 1.8 Research Focus ............................................................................................... 12 1.9 Analysis of the Main Focus ............................................................................ 12 1.10 Structure of Hypotheses – International Managers ...................................... 14 1.11 Structure of the Research .............................................................................. 18 Chapter 2 : Review of Theoretical Literature and Development of Conceptual Model for the Study ................................................................................................... 22 2.1 Concept of Culture within International Managers ........................................ 22 SECTION A: REVIEW OF THEORETICAL LITERATURE ................................... 24 2.2 Systematically Describing of Cultural Differences ........................................ 24 2.2.1 Greet Hofstede’s Contribution to the Cultural Dimension ....................... 24 2.2.2 Edward Hall’s Cultural Focus .................................................................. 26 2.2.3 Fon Trompenaar’s and Charles Hampden-Turner’s Theories .................. 27 2.2.4 Ronald Inglehart’s Context ...................................................................... 29 2.2.5 Philippe d’Iribarne’s Contribution ..........................................................