Multicultural Business Multicultural Considerations in Business There

Multicultural Business

Multicultural Considerations in Business

There are many different impacts that culture has on the way business is conducted; cultural systems of values and beliefs lead to specific interpretations of events and interactions, and different demands and expectations for business relationships often exist for individuals from different cultural backgrounds. Engaging in international and multicultural business requires a level of understanding and awareness of specific cultural issues that might arise due to different customs, perspectives, and values, and a general awareness of the influence of culture is a good thing in business as well as it allows for ongoing learning and consideration without rushing to judgment. Through both a specific and a general understanding of cultural issues in business, more effective strategies for conducting business on an international level can be developed and implemented. The following paragraphs provide specific examples from four differently cultures, identifying the importance of cultural understanding in all international dealings.

In Saudi Arabia, familial ties are an immensely important part of most businesses, and end up dominating most domestic business partnerships in the world of finance and medium- to large-scale corporate enterprises (Long, 2005). What might be considered unfair or inappropriate in terms of family ties between different businesses and in making deals is considered natural and commonplace in Saudi culture, and not simply an acceptance but a true understanding of this fact -- that kinship ties are seen as an ethical aspect of business relationships -- is important (Long, 2005). Incorporating Saudi values into a Western business perspective this regard can be very important in building a successful U.S./Saudi partnership.

In addition to understanding how business partnerships and relationships might be affected by culture, it is important to understand how customer relationships are affected by cultural values and perceptions, as well. In South Korea, for example, consumers have a skeptical attitude toward corporations, especially when these corporations are engaging in acts that appear to be for the benefit of society -- any suggested attitude of altruism is regarded with a fair amount of mistrust by the public (Lee et al., 2009). Managers at companies, however, are far more likely to have positive beliefs about their company's intentions and actions than the public (Lee et al., 2009). For this reason, it is important for an international business operating or partnering in South Korea to ensure that managerial and consumer perceptions are properly aligned, and that the company approaches public relations informed of the challenges and perspectives they will be met with (Lee et al., 2009).

An extensive study and comparison of several business cultures, including the United States and China, identified several specific elements that could be a potential source of disagreement or outright conflict if not addressed in a proactive fashion, most especially significant differences in how managers perceive various aspects of their work (Ralston et al., 2008). Managerial perceptions of deadlines and of how to engage with employees vary considerably between the cultures, and thus it is important to make sure expectations and processes are explicitly clear (Ralston et al., 2008). Establishing control in international ventures is always difficult, however large cultural differences can exacerbate normal issues.

Finally, there is research that suggests culture has a significant influence on the pure desire and drive to engage in business, at least from an entrepreneurial standpoint, and this, too, could inform international business ventures (Chua et al., 2005). A comparison of Singapore and New Zealand in terms of overall culture and entrepreneurial desire suggests that culture influences the degree to which individuals want and are willing to engage in entrepreneurial activities, with certain key cultural elements making it far less likely for many businesses to be initiated, and for many individuals to involve themselves in building new businesses (Chua et al., 2005). This could have a major impact on the ability to initiate new ventures in certain countries, and understanding the specific cultural elements that contribute to this resistance and working to overcome them might be necessary in order to succeed.