Intercultural Problem in Joint Venture: A Case Study Analysis

This report analyzes a case study of intercultural problem in joint venture and identifies the factors that caused the problem. It also suggests ways to improve intercultural communication and uses Hofstede's cultural dimension theory to explain cultural differences.

Case Study

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Where did Stefan go wrong?..................................................................................................3
How could you help Steven better understand the problem?.................................................4
Usage of intercultural theories to explain and support discussion.........................................5
What would be your advice to Stefan?...................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalization has led to creation of an international business environment in which
employees from different cultures collaborate and co-ordinate with each in order to produce
positive results for an international organization (Ferri, 2018). This report is based on the case
study of an intercultural problem and identifies the elements of the case study which caused the
intercultural problem. In addition to this intercultural theories are utilized in this report to gain
better understanding of the problem, explain and support discussion. In addition to this, advices
for solving the problem are also given in this report.
Overview of the case Study: The case Study is of a retired military attaché Bob with
considerable experience in Middle East during Military career. Bob is hired by US computer
software company to act as a representative for the company in Persian Gulf countries. Bob was
tasked with providing prospect of joint venture with Lebanese industrialist. The meeting with the
industrialist was going fine until the mention of Bob’s father living in Nursing Home. After this
there was also no further communication with the Lebanese industrialist. It is important to
develop deep understanding of the intercultural problem and find solutions for dealing with such
intercultural problem in order to ensure that joint venture in foreign markets are formed
successfully.
MAIN BODY
Where did Stefan go wrong?
Formation of a joint venture with a foreign company in an international market is filled
with barriers which may hinder the management of intercultural relations in the proposed joint
venture. The main cultural risks in creation of international joint venture are the language
barrier, stereotypes and prejudices, different ways in solving problems, hierarchy of different
scale of values, problem identification of rules and powers and differences in intercultural
communication (Kim, 2017). In case the of the case study of Bob Mitchell the main factor which
led to ineffective meeting with the Lebanese industrialists was intercultural
communication differences and hierarchy of different scale of values.
Apart from this stereotyping also played a significant role in hindering the relationship
between Bob and the Lebanese industrialist. Individuals from different cultures have different
hierarchy of values and differences in values can be seen as mistrustful and also affect

relationship between two individuals from different cultures. in addition to this assuming
professional performance on the basis of stereotypes and prejudices also creates tension between
relationships of individuals with different cultural backgrounds. In the case study the initial
communication with small talk helped built trust between the Lebanese industrialists and Bob
Mitchell but the information about father of Bob Mitchell staying at nursing home negatively
affected views of the Lebanese industrialists about Bob Mitchell and company represented. This
is because of differences between cultural values and stereotyping.
The cultural values and hierarchy of different scale of values between US and
Lebanon impact communication between individuals from these cultures. This is because certain
values are viewed positively in Lebanese culture which is not common in US culture such as
sending the elderly to nursing homes (Lubin, 2017). Apart from this stereotyping it was also
showcased in the given problem of the case study because through the information about father
of Bob Mitchell staying at nursing home the Lebanese industrialist was able to stereotype Bob
Mitchell and his company with having opposing values to Lebanese culture and is therefore not
compatible with the company. This stereotyping of western companies and individuals affected
the decision making of the Lebanese industrialists and prompted the industrialists to not make
any further communication for proposal of a joint venture. It is important that ineffective
understanding of western stereotyping and differences between cultural values of Lebanese and
US residents is understood so that such problem does not occur in future and joint venture can be
successfully completed in Lebanon.
How could you help Steven better understand the problem?
In order to better understand the intercultural problem in the case study of Bob Mitchell it
is important to gain knowledge about the culture of Lebanon. The communication problem in the
given case study is related to the lack of understanding of cultural values which are considered
positive in Lebanon along with the stereotypes of western individuals in Middle Eastern
countries. Since the intercultural problem was introduced after the mention of Bob Mitchel’s
father being present in the nursing home, it is essential to gain knowledge about the family
values of the company. The family values followed in Lebanon focus on creating close knit
family dynamics and it is often the case that more than one generation of the family stays in the
same house (Goldschmidt and Boum, 2018).

Leaving the house of parents in adulthood is not as common in Lebanon as in the western
countries like USA. In Lebanon children are required to receive strict discipline and need to
respect the elders and parents of their family. In most Middle Eastern countries such as Lebanon,
societies value family ties, and older adults are viewed as a resource to the family. Cultural and
ethical values still protect the majority of older people in Lebanon (Abou Arraj, 2018). This
information can explain negative reaction of the Lebanese industrialist towards the mention of
Bob Mitchel’s father being in a nursing home and their weight loss in the Nursing home. This
information presents Bob Mitchel as an uncaring son who lacks family values and does not
respect the older generation of the family which is a commonly followed cultural norm in
Lebanon. The opposing cultural values between the Bob Michele and the Lebanese industrialist
affected smooth communication with the industrialist in relation to the joint venture proposal.
Another factor which needs to be understood in order to improve intercultural
communication with Middle Eastern communities is to understand the view of America in
Middle East and the stereotypes associated with American enterprises and individual in the
region. The U.S. continues to face enormous challenges regarding its public image in Arab and
Muslim countries. Anti-Americanism in the region is driven largely by aversion to U.S. policies,
such as the war in Iraq, the war on terrorism, and U.S. support for Israel, in addition to the
general perception that the U.S. fails to consider the interests of countries in the region when it
acts in the international arena. This affects the intercultural communication between Bob Mitchel
and the Lebanese industrialist as there is already negative perceptions about Americans. These
perceptions are further re-enforced by the opposing values and cultural differences which can
hinder formation of strong relationship between individuals engaging in intercultural
communications.
Usage of intercultural theories to explain and support discussion
Hofstede cultural dimensions theory:
This model offers different cultural dimensions through which the cultural identity of a
nation can be determined and two cultures can be compared. The five cultural dimensions
provided in this model are power distance index, collectivism vs individualism, uncertainty
avoidance index, femininity vs masculinity, short term vs long term orientation and restraint vs
individualism. (Litvin, 2019). The evaluation of different cultures and the influence of cultural

differences can be completed through application of this model. The theory involves six
dimensions that are given below:
Power distance index: The degree at which the power imbalances and authoritarianism are
accepted in a society are described through this cultural dimension The low degree of
acceptances of power imbalances results in creation of egalitarian organizational culture while
autocratic regional culture is promoted in regions with high power distance index. (Moonen,
2017). The power distance in USA is it high degree while the power distance index in Lebanon
at the lower end of the spectrum. This means that tolerance towards strict hierarchies
and differences between power inequalities is higher in USA in comparison to Lebanon. This
explains the significance of hierarchy and respecting elders in family culture and values of
Lebanon which are not commonly found in US.
Collectivism Vs individualism: This aspect of the cultural dimension theory looks at the
view of the culture on collective previous or individual studio behaviour. Cultures which have
high degree of collectivism, people belong in groups and share high level of loyalty indie turn off
being part of a community and getting care from the community. On the other hand, in highly
individualistic societies image of individuals is limited to their personal self and close family. the
level of individualism in Lebanon is very low in comparison to United States. This means that
why members of the US society often separate themselves from their families while in Lebanon
generations living in the same house is very common and members tend to become part of the
family group.
Uncertainty avoidance index: The vagueness and obscurity tolerance is identified in this
cultural dimension. The focus of this cultural dimension is to look at the response of culture to
unpredicted events. (Ugrin, Pearson and Nickle, 2018). In Lebanon there is no specific
preference towards avoiding uncertainty or accepting uncertainty as the country scores average
on the Hofstede’s cultural dimension of uncertainty avoidance. United it's on the other hand, has
a below average degree of Uncertainty avoidance index which means that there is a fair degree of
acceptance for new ideas and willingness to try something different. this showcases that
Lebanon is highly restricted when it comes to changing two new ideas while US is more
acceptable. This explains the negative impact of differences in values between
the industrialist and American representative on the joint venture as there is low acceptance of
new ideas in Lebanon culture.

Feminity Vs Masculinity: The preference towards masculinity or femininity and traits
related to this identification are covered in this part of the cultural dimension. Masculine cultures
favour hardworking and passionate characteristics while collaboration and sincerity matter more
in feminine cultures. The level of masculinity is same in boot Lebanon and U S culture which
means that this factor does not make particular difference in intercultural communication and
management between US and Lebanon.
Short term Vs long term orientation: The value of short-term goals over long-term goals
is identified in this part of the cultural model. Short term orientation focuses on gaining
immediate returns while long-term orientation the focus is shifted to longer time period with
respect on traditions. (Pergelova and Angulo-Ruiz, 2017). The US has normative society with
low score on long term orientation while in Lebanon the level of long term orientation is even
lower in comparison to the US. This means that decision-making in Lebanese society is better in
comparison to US because short term feature is the only consideration undertaken in decision-
making and the respect for traditions is more in Lebanon in comparison to US. This explains the
traditionalist viewpoint of the industrialist towards family values and negative reaction two
dimension of Bob Mitchell's father living in a nursing home which is opposed to the family
values practised in Lebanon.
Restraint Vs indulgence: Restraint state that society surpasses gratification of requirements
and regulates social norms whereas indulgence shows that society allow relatively free
gratification associated to having fun and enjoying life (DeBode and et. al., 2019). The focus of
society on completing desires or maintaining restraint is the focus of this level of culture model.
The cultures with high retraint avoid gratification and showcasing their desrires publically while
the opposite is encouraged in indulgent cultures and the goal is to fulfil desires and enjoy
leisure.US is a very high indulgent society while because of influence of Islam the culture in
Lebanon is high in restraint. The Lebanese society has high restraint and has tendency towards
cynicism and actions are restrained by social norms. This explains the significance of the
American representative breaking one of the most important social norms followed in Lebanese
society related to family values. The industrialist was not satisfied with the lack of restrictions
social norms have on American Society which negatively affected the intercultural
communication between the US representative and Lebanese industrialist.

What would be your advice to Stefan?
 In order to break stereotypes the American industrialist needs to display the importance of
family values in their company and how their enterprise functions as a close knit and loyal
family unit. This will showcase the industry list in Lebanon that family values and traditions
are accepted in US. This is a justified recommendation as it will improve the view of
Lebanese industrious towards American culture and joint venture with the American
company.
 In addition to this the US representative needs to learn more about Lebanese culture and
understand the factors which are highly valued in Lebanese society in order to ensure that
any detail or information does not affect successful intercultural communication in the
future.

CONCLUSION
From the above report it is concluded that intercultural communication is dependent on
different factors suggest the difference between value systems of societies and the perceptions
and stereotypes in a specific society. It is essential to develop a proper understanding of different
culture and gain knowledge of the value systems we just significantly society in order to initiate
effective intercultural communication. Hofstede’s cultural dimension theory can be utilised to
explain different cultural values between two societies and understand the cultural differences
affectively. This theoretical tool can be used to take further action in improving international
communications and enhancing cultural knowledge.

REFERENCES
Books & Journal
Abou Arraj, H., 2018. Professionalism among employees in Lebanon: the Lebanese
University. World Journal of Entrepreneurship, Management and Sustainable
Development.
DeBode and et. al., 2019. Economic freedom and Hofstede’s cultural dimensions. International
Journal of Organization Theory & Behavior.
Ferri, G., 2018. Intercultural communication: Critical approaches and future challenges.
Springer.
Goldschmidt, A. and Boum, A., 2018. A concise history of the Middle East. Routledge.
Kim, Y. Y., 2017. Intercultural communication.
Litvin, S. W., 2019. Hofstede, cultural differences, and TripAdvisor hotel reviews. International
Journal of Tourism Research, 21(5). pp.712-717.
Lubin, A., 2017. BRIAN EDWARDS, After the American Century: The Ends of US Culture in
the Middle East (New York: Columbia University Press, 2015). Pp. 288. $35.00 cloth.
ISBN: 9780231174008. International Journal of Middle East Studies, 49(1). pp.197-
198.
Moonen, P., 2017. The impact of culture on the innovative strength of nations: A comprehensive
review of the theories of Hofstede, Schwartz, Boisot and Cameron and Quinn. Journal
of Organizational Change Management.
Pergelova, A. and Angulo-Ruiz, F., 2017. Comparing advertising effectiveness in South-
American and North-American contexts: testing Hofstede's and Inglehart's cultural
dimensions in the higher education sector. International Journal of Advertising, 36(6).
pp.870-892.
Ugrin, J. C., Pearson, J. M. and Nickle, S. M., 2018. An examination of the relationship between
culture and cyberloafing using the hofstede model. Journal of Internet
Commerce, 17(1). pp.46-63.