Jagannath International Management School

Kalkaji, New Delhi

Cross Cultural Competence

Dr. (Cdr.) Satish Seth

Director
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 WHAT IS CULTURE?

The word culture comes from the Latin

cultura, which is related to cult or
worship. In its broadest sense, the term
refers to the result of human interaction.
For the purposes of the study of
international management, culture is
acquired knowledge that people use to
interpret experience and generate social
behavior. This knowledge forms values,
creates attitudes and influences
behavior.
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 CHARACTERISTICS OF CULTURE
1. Learned. Culture is not inherited or
biologically based; it is acquired by learning
and experience.
2. Shared. People as members of a group,
organization, or society share culture; it is
not specific to single individuals.
3. Transgenerational. Culture is cumulative,
passed down from one generation to the
next.
4. Symbolic. Culture is based on the human
capacity to symbolize or use one thing to
represent another. 3
5. Patterned. Culture has structure and is
integrated; a change in one part will bring
changes in another.
6. Adaptive. Culture is based on the human
capacity to change or adapt, as opposed to
the more genetically driven adaptive
process of animals.

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 CULTURAL DIVERSITY

There are many ways of examining cultural

differences and their impact on international
management. Culture can affect
technology transfer, managerial attitudes,
managerial ideology, and even business
government relations. Perhaps most
important, culture affects how people think
and behave.

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Culture Type of Handshake

United States Firm

Asian Gentle (Shaking hands is

unfamiliar and uncomfortable for
some; the exception is the
Korean, who usually has a firm
handshake)
British Soft

French Light and quick (not offered to

superiors); repeated on arrival and
departure
German Brisk and firm; repeated on arrival
and departure
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Culture Type of Handshake

Latin American Moderate grasp; repeated

frequently
Middle Eastern Gentle; repeated frequently

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 How can we explore culture?
Visible
* what we say
* how we
behave
- language
Partly - cloth
visible - symbols
- rules

Invisible
* what we believe
* what we presume
- values
- emotions
Navigating the seas of international business - expectations
Source: Adapted from Schneider and Barsoux (2003: 21)
Browaeys and Price, Understanding Cross-
cultural Management, 1st Edition, Pearson Education Limited 2009
Stereotypes
What are stereotypes?
are pictures in the head / mind (W.Lippmann)
= mental reproductions of reality
are beliefs about people based on their

membership in a particular group

can be positive, negative or neutral

Contain true and false information

Good and evil

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Stereotypes survey of 6000
people

10
The European, November 1992
Stereotypes
Russians Is this really true?
Drink vodka
Americans Whats the bad
Are friends of part?
everybody
Germans Whats the good
Inflexible concerning part?
time

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 CRITICAL ROLE OF CULTURE IN
INTERNATIONAL BUSINESS

Constituents of Culture

Constituents are;

Value system
Norms
Aesthetics
Traditions and customs
Languages
Religion
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 Values
Values are shared assumptions of a group regarding
Good or bad
Right or wrong
Important or unimportant

Business behavior affected by a countrys value system

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US managers; High achievement and competition
oriented
Emphasize on profit maximization,
organizational efficiency and high
productivity.
Japanese Strong emphasis on size and
managers growth
High value for competence and
achievement
Indian managers Moral orientation
Strong focus on organizational
compliance and competence
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Indian Consumers:
Emulate the behaviour of peer group
Aspire to do better than his peers
China
Only recognized superiority is age
High level of contentment
Competitive aspect to life missing
No differences among themselves
Only time will bring prosperity
One cannot become prosperous before one
reaches a certain age
Comparative advertisement irrelevant
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India

Ad lines Safedi aisi, ki nazar lag jaaye (whiteness

that creates envy) Neighbours envy, owners
pride. In China-privately one feels happy.

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Culture dynamic Tends to change over time.

Japanese business value system - life-time

employment, group orientation, formal authority,
seniority and paternalism witnessed change over
the years- Globalizations effect on Indian culture-

Acculturation Process whereby attitudes and

behaviors of people from one culture are modified as
a result of contact with a deferent culture.

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Norms
Guidelines or social rules that prescribe appropriate
behavior in a given situation
Japan : Aggressive selling not perceived in positive
spirit

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 Dell Computers Emphasize on benefits
in terms of lower price by direct selling instead
of aggressive selling tactics
Cultural norms affect consumption patterns and
habits

Japan and China Chop sticks meat pre cut in

small pieces
Europe & USA. Knives and forks are used to cut
meat in dining table

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Aesthetes
Ideas and perceptions that a cultural group upholds in
terms of beauty and good taste

Preferred colors /Colors not preferred

Japan: White (Mourning), Red (Danger)

America: White (Joy, Surrender), Red (Danger), Yellow
(Coward)
China: White (Mourning), Yellow (Welfare &
Happiness); Red (Happiness)
France:
Holland: Black (Mourning), White (Joy, Surrender)
Sweden : 20
South America: Blue (Mourning), Black (Mourning)
White (Pure, Clean)
New Zealand: Black (National Colour)
France: Red (Aristocracy), Green (Criminality)
Egypt: Red (Mourning); Blue (Virtuous)
China: Red (Happiness)
America: Red Light - Terrorist threat, Green (Sign
of Safety), Blue (Maintainers)
Middle East: Black (Love, Happy Marriage)
South Africa: Red (Mourning)

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Traditions and Customs

Tradition
Derived from Latin word TRADITIO which means
to hand down or to hand over.
Elements of culture passed on from generation to
generation

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Customs
An established pattern of a behavior within a
particular society is known as a custom
Passed on from generation to generation over the
years become ingrained into the social system
Food habits exhibit a high level of cultural
sensitivities
Americans and German blend chocolates

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 Dutch White chocolates
French Dark
Nescafe 200 varieties of coffee to suit local tastes
Britain similar to India takes coffee with milk
US regular coffee means differently in different parts
of USA
Chicago black
Boston with milk
Rhode Island with milk and sugar
Greece Sweet and gritty coffee
Italian caramelized roast yielding a darker black
color, a strong taste

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 French medium to medium dark colour and flavour
Coffee sold in both hot and cold
Japanese canned coffee

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India
Concept of Indian vegetarianism is too complex for
outsider to comprehend

KFC, Mc Donalds , Pizza Hut vegetarian menu

India ghee (milk fat). In majority of developed
countries de-fatted milk

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Language
A means of communicating ideas or feelings by the
use of signs, gestures, or articulate vocal sounds
Language - most obvious difference among cultures

Sanskrit and Latin two major literary languages of

the world from which a large number of languages
have emanated
A number of modern languages are descendents of
classical Chinese, ancient Greek, Persian and
Biblical Hebrew

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 Worlds most spoken languages

Languages
Worlds most spoken languages
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 Mandarin is the most widely used language in the
world followed by English and Hindi
Cultural imperialism; Resistance towards
communicating in foreign languages-love for mother
tongue
- Bangladesh-separated from Pakistan
- France
- China
French majority in Quebec province in Canada
forced upon a constitution amendment in 1992 to
declare French as official language

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 Country
Countries with highest number of languages
Source; Ethnologies languages of the world SIL International US, 2005 30
31
Religion
Religious beliefs influence International business
decision
Feng shui

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 Religious Festivals

Religious beliefs / Countries Activities

Festivals
Feng Shui* China Investment in
infrastructure
Festivals Europe Business opportunities
Christmas USA for increased sales
Ramadan Islamic countries Planning business trip
Chinese New Year China
Diwali India & Nepal

*Feng Wind
Shui Water
Assures good health and fortune

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 Islam is the fastest growing religion in the world with
1.84 per cent growth rate, followed by Bahai (1.70%),
Sikhism (1.62%), Jainism (1.57%), Hinduism (1.52%),
and Christianity (1.38%). Hinduism, followed by over
80 per cent of Indias population, is the only surviving
major ancient religion that has no founder. Hinduism
had strong cultural influence on several other countries
too.

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 Global Reach of Indian Deities
Many Hindu deities worshipped in India are also
revered in other countries

God / Goddes Country

Ganesh, The destructor of all Shoten in Japan HoTei in China
obstacles Virakosha in Mexico. Currency note
in Indonesia

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 Doing Business in Muslim Countries

Business is influenced by religion

Women consumers-Better to engage women in
business activity when interaction of women is needed
In Arabian countries dolls SARA and LEILA that
compete with Barbie have brother dolls and not boy
friend dolls
Meat consumed through halal (confirming to religious
dietary laws) method of slaughter
Restaurants highlight marketing communication that
only halal meat is used for cooking food.
Certificate from exporting countries
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Priorities of Cultural Values: United
States, Japan and Arab Countries
United States Japan Arab Countries

1. Freedom 1. Belonging 1. Family security

2. Independence 2. Group harmony 2. Family harmony
3. Self-reliance 3. Collectiveness 3. Parental guidance
4. Equality 4. Age/Seniority 4. Age
5. Individualism 5. Group Consensus 5. Authority
6. Competition 6. Cooperation 6. Compromise
7. Efficiency 7. Quality 7. Devotion
8. Time 8. Patience 8. Patience
9. Directness 9. Indirectness 9. Indirectness
10. Openness 10. Go-between 10. Hospitality

Note: 1 represents the most important cultural value, 10 the

least.
Source: Adapted from information found in F.Elashmawi and Philip
R. Harris, Multicultural Management (Houston: Gulf Publishing,38
1993)
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