Cross-cultural Differences: A Wicked Problem in Global Business

This article discusses the wicked problem of cross-cultural differences in global business. It explores the challenges faced in communication, conflict resolution, employee turnover, and productivity. The application of the competing values framework is also discussed as a potential solution to this problem.

Leadership: The Wicked Problem
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Table of Contents
Executive Summary.........................................................................................................................3
1.0 Introduction................................................................................................................................4
2.0 Description of cross-culture business problem..........................................................................4
3.0 Wicked problem characteristics as applying to cross- culture business problem......................6
4.0 Discussion and Justification that Cross-cultural difference is a wicked problem.....................8
5.0 Application of competing values framework to a wicked problem.........................................10
6.0 The Implication and Interplay of Competing Values..............................................................11
7.0 Discuss potential leadership implications................................................................................13
8.0 Conclusion...............................................................................................................................15
References......................................................................................................................................16

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Executive Summary
The expansion of companies across borders makes the global market place small and paves way
for a large business to create more opportunities. As a result, cross-cultural teams become
common which implies that businesses can take advantage of diverse skills and knowledge base
as well as the creation of new perceptive approaches to business difficulties. Irrespective of
these, organizations encounter stumbling blocks owing to cultural differences and this a wicked
problem. Since culture is accepted norms that are shared by people in a society, in international
business it is not the same. It is because the norms of one country are not the same as the norms
of another country. In a global business global leadership is needed where there is a good
working environment, etiquette, good communication, and organization structure assist in the
elimination of the wicked problem by bringing different people of all cultures to understand what
culture is for the benefit of the organization.

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1.0 Introduction
Culture differences create cross-cultural challenges where high and low context cultures
differ in the manner of communication. Additionally, trust becomes another challenge and there
can be a task-based or relationship based concept wherein the earlier two parties engage in a
task-oriented relationship while in the former, the parties engage first is creating a relationship of
trust prior to undertaking a business-oriented engagement (Tharp, 2009). Additionally, the
comfort of silence is translated differently across cultures while doing business. In Asian
countries, they tend to be comfortable with silence while on business meetings whereas western
countries are uncomfortable (Csepregi & Pauluzzo, 2017). An example is the business
engagement between Spain and China which occurred in 2011 over a $9.3 billion investment of
which it was later turned down by China after Spain announcing it publicly. The situation could
have been as a result of cultural differences that cause miscommunication, the comfort of silence
or other reasons (Jones, 2012). The challenges as a result of cultural differences lead to
misunderstanding between parties are thus a wicked problem (Kurian, 2015).
2.0 Description of cross-culture business problem
Culture is the most critical factor in global business and is creating a wicked problem and
therefore it is of paramount to examine what culture is. Culture is the way a given society
ascribes to set norms and beliefs as their way of life. It comprises of beliefs, languages,
traditions, values, and customs and gets reflected in history, heritage and how people express
ideas as well as creativity. Additionally, culture acts as a measurement of life as well as the
health of society. People develop a sense of belongingness through culture, intellectual growth as
well as the ability to relate to one another. A good culture that is vibrant creates health, self-

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esteem, social capital, expertise developmental and economic return (Naranjo-Valencia,
Jiménez-Jiménez & Sanz-Valle, 2016).
It is established that culture shape relations, uphold and encounter communal order,
regulate how individuals make sense of the planet and the role of a human being in the world.
Additionally, culture shapes the actions as well as experiences of every day in society and
comprises material and non-material things. According to sociologists, the material and non-
material things are related to one another as they influence one another in different ways. The
non-material things are things like values, beliefs, communication, practices, and language; when
expanded further, it comprises of knowledge, rules, morals, symbols, and art among others. The
material things comprise of things people use in everyday life such as buildings, technology,
clothing, music among others and are called cultural products (O'Neill, Beauvais & Scholl,
2016).
The importance of culture is that it plays an essential role in the creation of order which is
social order. This refers to the stable state of the society in relations to the agreement of
regulations that permit people to cooperate, live as one and work as a community. Since culture
is accepted norms that are shared by people in a society, in international business it is not the
same. It is because the norms of one country are not the same as the norms of another country. In
a global business global leadership is needed where there is a good working environment
(Bhuyan, McIntyre & Klieb, 2018)
According to sociologist Durkheim, the two culture (material and non-material) is
essential in that the hold the society together. All the aspects shared in culture prove a valuable
sense of identity and purpose that is common to all the people in that society. Presently this is
seen in religious centers, weddings, dances, and sports Körner, Wirtz, Bengel & Göritz, 2015).

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Karl Marx, on the other hand, found that the lesser group is able to keep unfair influence
over the popular. Karl pointed out that the cultures that these cultures do not work in favor of the
minority but to the majority and that is benefiting on the powerful in the society. This
perspective is seen today as true because the capitalist belief that success comes through hard
work and everybody is able to lead a good life if they strive hard. In reality both the theorist are
right because culture can be used to oppress or dominate whereas it can be used for liberation
and creativity; while at the same time it is a very vital aspect of humanity because it creates
social order and organization of which there could be no relationship in the society (Buchanan,
2015).
In the case of BP and Rosneft, there was a cross-cultural misunderstanding that resulted
in miscommunication. The BP misinterpreted the previous contract with other business in Russia
(Jones, 2012).
3.0 Wicked problem characteristics as applying to cross- culture business problem
As a consequence of the social changes people in a society gain, react and perceive status
differently and is different across cultures. In respect to this, the characteristics of cross-cultural
differences that manifest in an organization are given. There are two types of status identified.
These are achieved status and ascribed status (Buchanan, 2015).
The ascribed-status explains status that is linked to external qualities like wealth, gender,
education, and age. When one has any of those attributes, a person gain status and does not give
room for others to acquire status whether via achievements and actions (Karyotakis &
Moustakis, 2016).
The achieved-status describes the type of status inherent to the internal qualities and they
are more valued as opposed to external qualities. In this, status can be acquired through hard

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work as well as contribution to the society of the community. In cultures of such nature, the
status is malleable because it can be gained and lost very fast. It shifts from person to person
depending on the achievement (Buchanan, 2015).
Status and Hierarchy
In the organization, the issue of status has a great impact on the business. The ascribed-
status culture becomes rigid on hierarchy in which roles, processes, and practices get defined.
The employee’s id different roles neither stick to their own roles with nor regard to offering
suggestions or solutions to people in the higher hierarchy because when they do so it is perceived
to be disrespectful. In such a manner of rigidness, an organization faces a big problem when
implementing change and change to occur must come from the top command with use of orders
and no from the bottom (An & Kang, 2016).
When the culture in the organization is achieved status, there is the existence of
hierarchies but they tend to be less formal. The egalitarian attributes of this type of culture imply
that value is more given to progress and development in place of status and respect. In this type
of culture, lower levels of employees feel empowered and are free to give suggestions to the
people above them in the hierarchy (Gibbons, Skevington & Whoqol Group, 2018).
Status and Formality
In an organization, when there is a formality of culture status become significant. This is
seen through the use of names among employees. Under the ascribed status, employees address
one another with the use of titles as well as surnames. In achieved status, people of similar status
use the first name because there is a tendency of equality among the colleagues in the same rank
(Koch, Koch, Menon & Shenkar, 2016).
Status and Management

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In this category, a manager with achieved status become a mentor and act as a reverent
point to those below him. The person under this state is able and willing to guide employees
develops the skills so that they can perform their work well and subordinates are in a position to
challenge the decisions of the manager. In contrast, this is not the same with ascribed status; the
manager is the boss and gives orders. The manager appears knowledgeable, experienced and able
to solve problems effectively. The manager takes the parental role as opposed to being a mentor
(Ng & Levy, 2018).
Status and Information
The flow of information between organizations gets affected by cross-cultural
differences. In a culture with achieved status, information is seen to flow smoothly across the
ranks. It is also seen that there is some common protocol followed by people of the same rank
when sharing information (Ivanova, 2018). In the ascribed type of cultures flow of information is
not fluid. There are particular avenues of transferring information and when lower level
personnel want to pass information, the information must pass through the supervisor (Shiraev &
Levy, 2016).
Through the characteristics of culture seen above, cross-cultural differences in an
organization can create problems. This is more so when the business is multicultural. This is
prone to a lot of differences in status, protocol, and hierarchy which leads to poor
communication as well as frustrations among the employees (Ikiugu, 2017).
4.0 Discussion and Justification that Cross-cultural difference is a wicked problem
The first issue that arises as a result of cross-cultural differences in an organization is the
unresolved conflict. When the differences widen in the place of work, conflicts among
employees get amplified. This is because of the different perspective of employees from different

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cultural settings. When there is no understanding and common ground is not reached between
differences in cultures, there is the limitation in the resolving the conflict and creates negativity
which is a negative impact to the organization (Koopmann-Holm & Tsai, 2014).
Additionally, there is poor Communication among the employees and within different
sections in the organization. This is going to impact on the overall productivity of the
organization because things will not be moving as needed. This being a serious matter, it is
imperative that global organizations train employees on the issues of cross-cultural differences
and to adopt the unifying culture set in the organization for the benefit of the organization
(Ikiugu, 2017).
Moreover, the turnover of employees leaving the organization will be high. When
employees feel that the working environment is not safe for them will be compelled to leave the
company. The issues of replacing the employees in an organization every now and then will
impact on the performance of the organization because of this impact on productivity. In
addition, the company is prone to losing talented employees when there is no motivation culture
that is safe to accommodate a diverse background of people (Li & Lim, 2017).
Furthermore, time and money is another essential factor that comes into play. An
organization that does not see the time and money spent on training employees concerning the
importance of cultural diversity in the workplace is prone to losing lots of money in the long run.
The impact is that the time and money that could have been spent on training g the employees
will be now felt through poor productivity as a result of bad performance in the company
(Mesman, Van Ijzendoorn & Sagi-Schwartz, 2016).

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5.0 Application of competing values framework to a wicked problem
According to Hofstede's dimension, people tend to act based on their cultural
backgrounds. In the dimension, power distances give the degree of inequality of authority that
occurs between the superior and the minor as seen by a member not as powerful as the senior. It
further asserts that countries with high power distance scores are prone to experience a lot of
inequality (Hsu, Woodside, & Marshall, 2013).
In the same dimension, collectivism and individualism are explained were a measure of
individual and collective nature of people. Nations with high index of individualism implies that
they are independent and like to does their things on an individual basis, there is no communal
work and sharing and giving is not the issue; while a high index of collectivism indicates that
people depend on one another and they like doing tasks collectively, there is communal work
where sharing and giving is the norm of every individual (Beugelsdijk, Kostova & Roth, 2017).
The degree of dominance is also explained where masculinity and femininity to illustrate
the assertiveness, competition, nurturance, and tenderness get measured. A high score on
masculinity illustrates a nation where there are competition and assertiveness whereas a county
with high femininity illustrates people with values such as tenderness and nurturance (Ye, Ng &
Lian, 2015).
The uncertainty avoidance as per Hofstede illustrates the degree of comfort-ability of
people from a particular culture in unstructured circumstances (Hsu, Woodside, & Marshall,
2013). Where there is a high degree of avoidance, there is anxiousness and stressfulness in
dealing with uncertain circumstances as opposed to those in nations with a low score of
uncertainty avoidance (Caprar, Devinney, Kirkman & Caligiuri, 2015).

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Hofstede also describes the long-term as well as short orientation to illustrate the way of
life of a given nation. Under long-term, he explains that these people are pragmatic to the way of
life, embraces a modern system of education and focused on future goals. In the short term, he
explains that people are oriented towards the values and time of their traditions (Mascarenhas et
al. 2016).
In the category of indulgence and restraints, Hofstede explains the gratification society
allows. Indulgence illustrates a society which is free, enjoy life and have fun whereas reliant
illustrates a society which is strictly regulated by norms and thus suppresses gratification
(Farzianpour, Abbasi, Foruoshani & Pooyan, 2016).
Inglehart, Basanez, Diez-Medrano, Halman & Luijkx, (2000) establishes the two
dimensions of cross-cultural differences and grouped them as traditional versus secular-rational
and survival versus self-expression. The earlier is related to the authority and takes into
consideration the family, nation and religions as the essential is a society governed by traditions
whereas in the former authority is not important and thus not reliable (Inglehart et al., 2000).
In the dimension of survival versus self-expression, the reliance on the group as well as
on the self is illustrated where survival values get emphasized in laying the importance of
economic security. Under this category, people are not happy and not secure when dealing with
challenges that are not familiar. On the other hand, self-expression illustrates the quality of life
of the people (Inglehart et al., 2000).
6.0 The Implication and Interplay of Competing Values
When we examine culture at the organizational level, Cameron & Quinn (2011)
establishes four categories of organizational cultures on the basis of clan, adhocracy, market, and
hierarchy. They opined that organizations that are flexible are successful as compared to rigid

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organizations. The reason attributed to this is that a flexible organization capable of managing
competition between cultures while at the same time actuating the set values when required
(Inglehart et al., 2000).
As per Cameron & Quinn (2011) findings, each of these categories gets described. The
first one is clan culture which is established on the basis of collaboration where people have
commonalities to share and they take one another a family. There are teamwork, consensus and
communication and the type of leadership take the form of mentorship. The second type is
adhocracy which depends on creativity and energy. The employees get encouragement to be
innovators and entrepreneurs by taking risks with the agility and change as the main values. The
third type is the market culture which depends on the strategies of attaining competition and
solid results. It is goal-oriented, the leaders are demanding and tough, the organization is unified
by a common goal to compete for the rivals and the major driver is to increase market share as
well as profitability (Cameron & Quinn, 2011). The fourth type is hierarchy culture which has its
foundation on control and the structure. It is formal, has strict procedures and there are
monitoring and coordination as the form of leadership. The values ascribed are confidentiality,
uniformity, predictability, and efficiency (Cameron & Quinn, 2011).
It is established that no single organization can exhibit all these types of dominance.
However, there are sections in the organization which can apply a number of these attributes
such as the accounting section. They asserted that irrespective of the different types of culture
available, it is essential for an organization to define a culture where there are openness and
accountability- an environment where every employee in the organization has a voice (Cameron
& Quinn, 2011).

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7.0 Discuss potential leadership implications
The cultural differences create varied implications on leadership styles as well as the
manner of leading people of diverse cultures. Leaders who are not sensitive to cultural
differences yet they want to lead teams which are outside the cultural norms is probable that they
will be ineffectual as well as being misunderstood (Jones, 2012). International organizations that
are ignoring cross-cultural differences experience difficulties in developing global leaders for
succession. A number of western nations operate in one single leadership model. The model
ensures a common behavior in which everyone has to adopt irrespective of culture or location.
They endeavor to establish leadership teams which are effective in the non-western regions or
ignore other leadership models that are not part of the western model (Nasif, Al-Daeaj, Ebrahimi
& Thibodeaux, 1991).
The greater benefit to organizations is that the cross-cultural differences are predictable
and stable. The Hofstede dimension gives the tool to measure and establish the dimension of
every region. Through this, an organization can build a leadership model that is in-line with the
region so that differences get assimilated by bringing in other cultures on board under a common
model (Hofstede Insights, 2019).
Irrespective of the uniqueness of every region, the Hofstede model facilitates
organizations to establish and predict an effective leadership approach that best suit business in a
given region. For instance the case of Brazil and Russia as per the model accepts inequality and
they expect it to happen, therefore the style of leadership is autocratic and participative approach
is seen with skepticism; while India and China are restrained and people in these regions strive
for communal gratification as opposed to personal gratification (Ye, Ng & Lian, 2015).

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In the global leadership behaviors perspective, it is of the essence to get an understanding
of the leadership styles of individuals based on the cultural differences. This is because if there is
going to be effective leaders in a diverse environment in order to effectively utilize the global
humane resource, then one has to get a full comprehension of individual leadership style and
behavior (Witt & Stahl, 2016). On top of this, they have to show the flexibility of adopting into
the expectations of a different culture. Even though leadership is thought to be universal, there is
a need for leaders to distinguish between global leadership and local leadership since this
distinction breaks the universal nature of leadership and aligns with region inclinations. This set
uniformity in organization culture and makes all employees get tuned to the same cultural model
for the benefit of the business (Stephan & Pathak, 2016).
When global organizations embrace cultural diversity and create a global model which
assimilate the behavior of local differences, then an organization is poised to develop leadership
talents from the locals and which will be very effective in the long term as opposed to the
reliance of expat leadership. A proper description of behavior instead of gender ethnicity leads to
diversity thinking which in reality innovation is in itself. The comprehension of the need and to
identify that need from the personnel expands as well as empowers talent, build a leadership
team that is diverse and this will set an organization to success and for a long term (Soares,
Farhangmehr, & Shoham, 2007).
Therefore, the dynamics of culture in the place of work influences behavior as well as
patterns of employees. The management of these complexities is challenging to leaders and this
calls for leadership that is dynamic such that it understands the nature of different cultures and
creates adoptable models that fit into the diverse cultures within the employees (Heath, Martin &
Shahisaman, 2016). The reason for adopting the uniform model is because the throughput of

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every employee may differ and this requires uniformity in the discharge of tasks. It calls for the
leader to undertake competency mapping so that all employees are brought to the same bar when
working (Kappagomtula, 2017).
8.0 Conclusion
In the globalization of organizations, culture becomes a wicked problem since employees
from different regions have different ways of working in an organization which creates cultural
differences and hence leads to poor communication and sometimes conflicts. As per the Hofstede
model, different regions have different cultures which dictate that type of leadership and the way
of handling tasks. Culture differences create cross-cultural challenges where high and low
context cultures differ in the manner of communication. A proper description of behavior instead
of gender ethnicity leads to diversity thinking and this is modernization in the organization.
International organizations that are ignoring cross-cultural differences experience difficulties in
business. A number of organizations develop leadership model so that they ensure a common
behavior in which everyone has to adopt irrespective of culture or region. It is of the essence to
get an understanding of the leadership styles of individuals based on the cultural differences
since it is going to lead effective leadership in a diverse environment for effective utilization of
the global personnel. Irrespective of the different types of culture available, it is essential for an
organization to define a culture where there are openness and accountability- an environment
where every employee in the organization has a voice.

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