Is intercultural competence important in international business?

This article explores the importance of intercultural competence in international business. It discusses how intercultural competence affects communication, workforce, and success in business. The article also provides examples of organizations that are actively building intercultural competency and offers steps that organizations can take to enhance intercultural competence.

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Table of Contents
'Is intercultural competence important in international business?'.............................................3
References..................................................................................................................................5

'Is intercultural competence important in international business?'
Intercultural competence refers to ability through which functions can be effectively
conducted across various cultures. It is necessary for people to think, communicate and act
appropriately with the people who are belonging to different backgrounds at home country
and in abroad. Intercultural competence refers to a valuable asset that is increasing
interconnection of people in globalised world where various cultures, values, beliefs and
experiences of people are shaped. In international business, it is crucial to work with different
departments on basis of which it results in establishment of positive workforce & increases
ability to deal with risk as well as problems within effective manner. In business, large
employee with different cultures exist & it is crucial to work with cooperation and
coordination that results are achieved appropriately.
The definition of culture can be taken in a number of different ways. It is taking into
consideration the complexity due to social concept as well (Arasaratnam-Smith, 2017).
Communication is considered to be an important aspect as there are a number of symbols,
verbal, non-verbal ways used by individuals in order to make sure that they are
communicating required information successfully. One of the major effects of inter cultural
competence that is seen in business is consisting of communication. People in an organisation
are required to continuously communicate with each other. It is necessary that they are
meeting all requirements of the business in order to attain required goals & objectives. The
businesses are now turning to be more culturally diverse which is requiring huge knowledge
about different languages, values and belief. The concept of inter cultural have also affected
transactional goals of organisations. Organisations are now required to successfully deal with
a number of different employees and consumers who belong to different culture. Intercultural
incompetence is necessary when the business has such encounters with employees and
consumers who are belonging to different cultures.
Organisations are now working on various programs that may help them to build
specific intercultural skills which are necessary to deal in international business. Some of the
examples can be taken such as IBM, Accenture and Coca-Cola which are providing proper
training to their employees so that they can deal with negotiation, meetings, make proper
presentations and also create successful deals with people who are belonging to different
cultures (Three Companies That Are Taking Culture Seriously...and Profiting, 2014).

The perception pattern of individuals to the information that have been communicated
is also depending upon the different culture to which one belongs. Culture is also producing
different types of problems between various employees when a business is running
internationally. It is required by global businesses to focus upon various cultural aspect as
this can also generate discrimination in business. It is often seen that when a business is
successfully attaining a culturally diverse workforce the brand value in market is increasing.
There are a number of barriers that have to be faced by organisation as well. However
businesses are required to make a culturally diverse workforce when they are working in
international market (Ursu, 2018). One of the major benefit that is brought to businesses
through these culturally diverse workforce is that the employees are bringing different ideas
and innovations. It is required by managers in organisation to make sure that they are
ignoring any kind of prejudice or discrimination towards the employees in the organisation as
it can also lead to dissatisfaction of employees and the productivity in the organisation will be
decreased. It has also been stated that organisations many times loose good deals because
they are not capable to deal with different cultures.
There are a number of steps that can be taken by organisations in order to build
intercultural competency within business (Intercultural competence, 2020). Some of the
organisations are implementing policies which will assure that all the employees are treated
equally regardless of their backgrounds or culture. Organisations needs to enhance networks,
links, engage professionals with local people, participate in celebrations of different cultures
in order to make sure that they are improving intercultural competence in the organisation
which will then help the organisation in its success.
It can be therefore analysed that that cultural and contemporary business environment
are changing continuously and the organisations are becoming more diversified. The increase
in cultural diversity within organisations is also helping businesses to to bring new social and
political changes. The businesses are now taking use of all the social, economic and political
opportunity and managing it effectively. The business have to understand the importance of
appreciation that is helping them to built in cultural competency within various employees
that are belonging to different cultures in an organisation. Intercultural competence is
building and identity for intercultural degree of various foreign languages, knowledge as well
as experiences in an organisation between various employees (Matveev, 2017). An
organisation with intellectual competency helps in increasing of business productivity,
efficiency level at higher scale. It has been also analysed that it is essential to focus on these
competency level so that goals are accomplished. Moreover, in this competitive world,

working with cross cultural departments within entity leads to achieving of objectives in
specific manner. Also, it is seen that manager of organisation need to be active whether
employees are working within same department for longer period or they are flexible towards
working with another departments. It depicts the work culture of company & subordinates
level of understanding.

References
Books and Journals
Arasaratnam-Smith, L.A., 2017. Intercultural competence. Intercultural competence in
higher education: International approaches, assessment and application.
Ursu, O., 2018. The role of the Media in Acquiring Intercultural Competence. A Business
English Teaching Perspective. Studii de Ştiinţă şi Cultură, 14(4), pp.209-214.
Matveev, A., 2017. Intercultural competence in organizations. Management for
Professionals.
Online
Intercultural competence, 2020. Available through:
<https://www.employeepedia.com/manage/setting-goals/8252-intercultural-competence-15-
examples-for-setting-performance-goals>
Three Companies That Are Taking Culture Seriously...and Profiting, 2014
Available throuhgh:<http://www.englishandculture.com/blog/bid/85247/Three-Companies-
That-Are-Taking-Culture-Seriously-and-Profiting>