Intercultural Competence in Business

This report explores the concept of intercultural competence in business and its significance in a globalized world. It discusses cultural frameworks such as Hofstede's dimensions and the Lewis model, and how they can be applied to enhance interpersonal communication. The report also presents case studies of Frank and Anna, highlighting the challenges they faced in different cultural contexts. Additionally, it discusses theories of intercultural communication and their application in distinct business situations.

Intercultural Competence in
Business

Table of Contents
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Illustrate cultural frameworks.....................................................................................................1
Demonstrate the ways in which frameworks can be used for acknowledging interpersonal
communication in business communication...............................................................................3
Apply theories of intercultural communication in distinct business situations...........................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

Introduction
Technology along with globalisation is the critical drivers for international organisation
as well as business for moving to distinct cultural places for carrying out transactions. The
rationale behind doing so is to earn profits by formulating their positioning within the
international borders (Benčiková, Malá and Ďaďo, 2019). But this leads to certain cultural
differences in organisation which creates a either affirmative or pessimistic impact on
performance of the employees. By rendering services within the international market firm can
develop their brand image within the marketplace. This report depends on two different case
studies, they are Frank and Anna who have moved to new locations for rendering their services
but they faced certain cultural issues. The report will emphasise on cultural frameworks which
are used commonly and are applicable via them. Furthermore, they will be applied for
enhancement of interpersonal communication within the given case scenarios.
Main body
Illustrate cultural frameworks
HOFSTEDE’S DIMENSION OF CULTURE
Dr. Geert Hofsetede, psychologist has conducted extensive study by interviewing around
100,000 international business management personals for understanding the associated with
cultural difference. By making use of study as well as carrying out survey, the four dimensions
were identified that are liable for distinguishing cultures and further two more were added into it.
The dimensions associated with the cultural model are specified beneath:
 Power distance index (PDI): This dimension reflects upon the measures of extensiveness
of peculiar cultural accept other than unequal distribution of power in society as well as
culture. Along with this, power distance index is liable for measuring ways in which
society manages inequalities between them as well as their respective members (de Hei
and et. al., 2020). In other words, higher will be the power distance index, then there will
be high acceptance of hierarchical societal structure. If opposite happens i.e. power
distance is low then it reflects that there is equal distribution of power.
 Individualism vs Collectivism (IDV): This denotes other dimension where individual
denotes norms which members of the society are anticipated to care about as well as their
families and collectivism implies it’s opposite. In case individualism culture is high then
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this reflects on care people possess for their family members and themselves. But if
opposite takes place then this signifies that society will live like a whole.
 Masculinity vs Femininity (MAS): This is third aspect in which competitiveness is being
measured in culture along with extent up to which material rewards, heroism and
assertiveness are valued for recognition of success (Edmiston-Strasser, 2020). But
feminine culture illustrates lower MAS that involve their caring and modesty for others is
emphasised on.
 Uncertainty avoidance index (AVI): The aim of such kind of culture is to specify ways
in which members of peculiar society abides to the uncertainties that are present. Cultures
that have higher proportion of uncertainty avoidance index illustrate intolerant behaviours
that are uncertain. If there is low UAI then it have critical paradigmatic view for the
principles as well as society on the whole.
 Long term orientation vs Short term normative orientation: This dimension reflect on
traditional along with non-traditional norms associated with peculiar culture. In case if
long term orientation is low then this reflects a traditional norm associated with specific
culture and if it is high then progress and modernisation is encouraged (Li, 2020).
 Indulgence vs Restraint: This dimension is accountable for measuring extent of culture
to which gratification is permitted or allowed. If ratio of dimension is high then this
signify culture that is having fun as well as full of enjoyment. On the other if this factor is
low then it suppresses gratification and there is strict usage of specific norms as well as
rules.
THE LEWIS MODEL
Richard D. Lewis has founded the Lewis Model of culture whose objective is to
improvise interactions that takes place in between distinct societies and culture. The intercultural
analysis is defined as well as simplified. The culture comprises of 3 approximate categories that
are specified beneath:
 Liner actives: The individuals who belong to such type of culture are accountable to
conduct linear actions on specific duration of time and accordingly formulate schedules.
The people who belong to such type culture are effective within their individual woks and
fields (Malau-Aduli, Ross and Adu, 2019). They always render their activities with good
logical excuses as well as suggestions.
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 Multi actives: This is the second category of culture which implies that people are more
social in comparison with linear active counterparts. The individuals who belong to this
dimension of culture are liable for valuing work along with relationships in parallel or
simultaneously. The members of such kind of society are described as caring and
emotional in nature.
 Reactives: This implies third as well as last category of model in which courtesy is being
valued along with this people is good listeners. Within the reactive culture people seeks
principles instead of spending their time on thinking of having any kind of intention
behind their actions (Mayer, Louw and Boness, 2019). An individual who belongs to
such type of culture possess various characteristics like preference is given to have face
to face communication instead of talking behind back of others. The rationale behind
doing so is to avoid confrontations as well as preserve harmony and peace. Chinese
society belongs to such kind of culture.
Demonstrate the ways in which frameworks can be used for acknowledging interpersonal
communication in business communication.
The initial business case is associated with Frank McDougal who has set up their branch
office in Korea and it is an engineering consultancy. The firm is looking forward and planning to
send their six consultants to the Korea and they belong to America. As per the case study, it is
found that Frank is not in the favour of supporting such kind of decisions instead they want to
approach some local employees who have excellent skills in accounting for handling their
company in Korea. The key intent behind this is that Frank wants to make use of local
competency of foreign culture for maintain their books as well as carry out their accounting
operations in Korea (Nardon, 2019).
For proceeding with plan, Frank has initiated the process of recruitment through the
assistance of office friend who belongs to rotary club. With the help of a friend, Frank had a lead
to four well qualified and skilled employees but surprisingly they all turned him down. They all
preferred to stay along with their present employer instead of being a part of new venture that is
American. All of them were appreciative as well as pleased that they are considered by Frank for
position within the organisation but they didn’t accept the offer that they were given. In such
kind of scenario Hofstede’s cultural model can be used in this specifically uncertainty avoidance
index dimension can be utilised.
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The uncertainty avoidance index of cultural model depicts as well as measures
uncertainties level along with unknown situations that are being faced by members who belong
to peculiar culture and society. Frank approached four candidates through the assistance of their
friend but the low index seated and this lead to rejection of proposal that was given by the latter.
Thus, the model assisted Frank within having understanding related with cross cultural
dimensions and problems that were faced have to handled in effective manner (Nguyen, 2019).
The other case is of Anna who is German manager and has started their practice across
market of China and has clients from there. When practice was started then things went well
which made Anna comfortable as well as she was charmed with Chinese parties with whom
business was carried out as they were nice. But with the passage of time, Anna found that there is
problem with working scenarios as some critical aspects requires to look over assets and
limitations associated with business. Clients and partners of Anna were nice and give the reply in
affirmative manner in all the contexts. But they made use of pessimistic statements while
carrying out business conversations and meetings.
The Chinese culture can be illustrated via Lewis cultural model and here also it involves
around reactive aspects. This is third category of model which is mainly associated with Asian
counties other than Indian subcontinent. The Chinese society is soft as well as filled with
affirmative aspects (Ozlem, 2020). Chinese individuals with whom Anna as working were good
listeners and they always combat on their principles as well as have reactions to actions that
seemed appropriate to them. They are not interested within confronting interactions that take
place instead of this they opted for diplomacy over being truthful while conducting business
activities. They have enough patience along with social as well as professional perspectives with
each other for working with others.
This is aspect where Anna went wrong as the adequate knowledge related with culture
was not possessed and the practices that were conducted via them also created problems to deal
with Chinese clients. It is important for Anna to understand the concept of cross culture
diplomacy that is being opted via Chinese people while carrying out business. This means that
Anna needs to alter their working approach and develop effectual understanding about Lewis
cultural framework so that it becomes easy for understanding the cultural barriers and
accordingly conduct conversations (Savicki, 2020).
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Apply theories of intercultural communication in distinct business situations
Intercultural communication refers to practice that comprises of having interaction across
distinct cultures as well as social groups. This process comprises of different aspects like
problems which are faced by organisation intentionally while moving to different culture. There
are different models which can be applied to distinct business conditions that of Frank and Anna.
The cross cultural communication theory denotes interaction that takes place among people of
diverse sizes and involves factors such as nationality, race, sexual orientation and ethnicity. This
denotes the attempts that are being made via an individual for exchanging services but cultural
differences like usage of mean languages, body actions and gestures prevails. This denotes
practice through which people who belongs to distinct culture interact with each other as well as
exchange message they want to. Each individual have different way of delivering their services
which makes the difference (Zhang and Zhou, 2019). The same condition was faced by Anna
while carrying out interaction with Chinese client. They always took affirmative aspects and
commented on the way in which practices are carried out by them. On contrary side Anna need
to have look on both pros as well as cons. Therefore, cross-cultural communication theory is
crucial approach that can be applied in business scenario where both parties have to make
adjustments for coming into a certain agreement in an effectual manner with one other.
The other situation was of Frank in which certain difficulties were faced while
negotiating and interacting in relevant manner with candidates for hiring them for accounting
position. Frank was not aware about cultural difference which prevails between Korea and
America this might be the reason that Korean’s believed that they must work with their current
employer. In such kind of business situation, it is apt to opt for social support communication
theory which can be applied by having assistance from individuals who belong to distinct
cultures. In this case, Frank can have a support from their friend for understanding
communication criteria and opt for best communication practices through which relevant
candidate can be convinced for being a part of the organisation. Furthermore, Frank can utilise
social network support along with lean supportive communication through which better practices
can be carried out with reference to future aspects.
Conclusion
From above it can be concluded that, intercultural communication is an important
concept that firms must take into consideration while delivering their services in other regions.
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The cultural competency frameworks must be taken into consideration while doing so as this will
enable them to acknowledge the perspective of country in which they are delivering their
services. Hofstede’s and Lewis cultural model have been used for doing so. For enhancing the
communication within the working premises it becomes important to acknowledge the country
for delivering their services and succeed within marketplace.
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References
Books and Journals
Benčiková, D., Malá, D. and Ďaďo, J., 2019. Intercultural competences in slovak business
environment.
de Hei, M. and et. al., 2020. Developing intercultural competence through collaborative learning
in international higher education. Journal of Studies in International Education, 24(2),
pp.190-211.
Edmiston-Strasser, D.M., 2020. An Evaluation of a Global Business Minor Program on the
Intercultural Competence and Professional Development of Students and Faculty.
Li, M., 2020. An examination of two major constructs of cross-cultural competence: Cultural
intelligence and intercultural competence. Personality and Individual Differences, 164,
p.110105.
Malau-Aduli, B.S., Ross, S. and Adu, M.D., 2019. Perceptions of intercultural competence and
institutional intercultural inclusiveness among first year medical students: a 4-year
study. BMC medical education, 19(1), p.346.
Mayer, C.H., Louw, L. and Boness, C.M. eds., 2019. Managing Chinese-African Business
Interactions: Growing Intercultural Competence in Organizations. Springer Nature.
Nardon, L., 2019. Reflection and Intercultural Competence Development. In Oxford Research
Encyclopedia of Business and Management.
Nguyen, H.T., 2019, August. Flipping Business English classrooms to enhance learners’
intercultural competence. In VietTESOL International Convention 2019.
Ozlem, Y., 2020. Enhancing the development of intercultural communicative competence in
business and study environments. Training, Language and Culture, 4(1).
Savicki, V. ed., 2020. Developing intercultural competence and transformation: Theory,
research, and application in international education. Stylus Publishing, LLC.
Zhang, X. and Zhou, M., 2019. Interventions to promote learners’ intercultural competence: A
meta-analysis. International Journal of Intercultural Relations, 71, pp.31-47.
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