University of Gondar MBA: Review of International Business Article

This report is a review of the article titled "The importance of cultural differences in international business" by Marzena ADAMCZYK. The author, affiliated with WSB University in Poland, explores how cultural differences impact international business operations. The review summarizes the article's key points, which highlight the significant influence of culture on various aspects of international business, including communication, negotiations, and marketing. It discusses the cultural barriers that can arise and emphasizes the importance of understanding different cultural norms to achieve success in the global market. The article provides examples of cultural characteristics in different countries, such as the Asian, American, French, German, and Middle Eastern cultures, and offers guidelines for effective cross-cultural communication. The review also provides a critical analysis of the article, pointing out its strengths, such as its clear presentation and accessibility, and its weaknesses, including the journal's reputation, lack of funding source disclosure, and limited explanation of study design and data collection methods. Overall, the review underscores the crucial role of cultural knowledge in successful international business transactions.

Department of Management
College of Business and Economics
University of Gondar
Assignment of Review/appraisal of published article
Course title: International Business Management
Student’s Name:
Program: MBA (Section I)
Submitted to:
Date: August 30, 2018
Gondar, Ethiopia
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Introduction
The author ‘’Marzena ADAMCZYK’’is staff of WSB University in Poland. The affiliation of
the author might show the author scholar and has good research experience. The title of the
research ‘’the importance of cultural differences in international business’’ is appropriate and
addressed well. As understandable from the topic this article give detail information how
cultural difference across globe affect international business and how to overcome cultural
barriers. The aim of this study is to characterize and classify cultures, thus allowing the
representatives of particular countries to be assigned to their relevant types of cultures, and to
present features characteristic for some nations in certain business areas which can be of use
particularly during negotiations.
Summery
A vast majority of enterprises operates in the international environment, where the cultural
factor is of tremendous importance, exerting a major influence on the success of transactions
and maintenance of good relations between counterparties or employees of different cultural
background employed in one enterprise. Cultural differences can become a particular barrier
in the business communication. Therefore it is crucial for business managers, lower rank
employees, as well as representatives of smaller companies who engage with foreign
countries to become familiar with different cultures in order to eliminate this barrier. Culture
influences numerous aspects of the international business communication, not only such as
business relations, negotiations, international management, but also marketing
communication strategies, decisions concerned with the brand or consumer behaviors.
Taking into consideration the cultural aspect, international business encompasses transactions
concluded and realized across national and cultural borders in order to meet the needs of
individual consumers and organizations. We should draw attention to the fact that behind
those entities are people working in those enterprises, and it is precisely them who are the
most important factor, having to make the effort to understand the cultural differences so as
to become capable of communicating skillfully with other cultures. Nowadays, enterprises
seeking to be successful and win competitive advantage on the global market also, if indeed
not most crucially, have to take into account this aspect. There are many barriers in the cross-
cultural communication.
The most likely to be mentioned include: time, language, currency, political system and the
governing law in a particular country, choosing the place for negotiations, choosing
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negotiators, differing ideology, cultural differences, different mentality. Every culture and
every nation has its characteristic behaviors in the communication process, be it during
negotiations or any other situations, as well as specific values to refer to. When negotiators
come from different cultural backgrounds, the risk of negotiation failure increases
significantly, which is due to mistakenly understood words, actions or gestures. It is therefore
crucial while preparing for talks with a foreign counterpart to familiarize in the best way
possible with his/her country’s culture and culture classification models based on cultural
orientations
A different understanding of a transaction and diverse attitudes towards business can be
observed depending on the culture within which people function. In terms of the attitudes
towards relations and business, we can distinguish transaction-oriented and relationship-
oriented cultures. In terms of the attitudes towards etiquette, hierarchy and expressing
respect, we encounter formal and informal cultures. Formal cultures are characterized by
great adherence to hierarchy, respect for the elders and those in high positions, while informal
cultures treat people equally, whatever their position.
Depending on the cultural background people come from, they can react differently to
different situations, they may perceive business in a variety of ways, and differ in their
approach to time, deadlines, emotions, etc.
The Asian manner of negotiations is characterized by cultural and religious complexity, and
adherence to tradition. In conducting negotiations with Asians, “saving face” is extremely
important, which means showing respect, and not undermining the negotiator’s authority.
Relations between parties, good interpersonal relationships are paramount. Asians are
reserved in showing their feelings and emotions, they are not too keen on keeping eye
contact. Politeness, formality, and following the protocol are important. Titles are important
for them the more well-known the company or person with titles, the better partner for
business talks. The Chinese never negotiate single-handedly, but only in groups, therefore
one should also come to a meeting in a group. The Chinese, before getting down to business,
want to get to know their business partner. The Japanese greet by bowing. The more
important the person, the deeper the bow. Punctuality must be observed. Unlike in other
Asian countries, time is very precious in the Japanese culture.
USA culture is transaction-oriented, monochronic, with a varying degree of expression and
informal. Regarding business meetings, Americans like quick negotiations, they do not
prolong talks, following their motto “time is money”. Signing an agreement is paramount.
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France represents the Mediterranean countries; its culture is expressive, moderately
transaction-oriented, formal and moderately monochronic. In France, contacts are crucial.
Punctuality is one of the most important characteristics of the contacts with Germans.
Germans value a high organization of work and order. They follow the chain of command.
They represent a rigid negotiation style. They are self-confident in negotiations.
The United Kingdom is a country where the business culture is clearly monochronic,
reserved, moderately formal and transaction-oriented. Punctuality is valued in the UK. They
check their counterparties very carefully. They value highly oral arrangements.
Middle East is comprised of the countries whose population is in majority made up of Arabs.
Their culture is expressive, formal, relationship-oriented and polychronic. Every arrangement
made with Arabs should be recorded in writing. In order to reduce to minimum the number of
mistakes committed while contacting with people from other cultures, it is useful to
remember a few important guidelines.
Conclusion
Knowledge of the culture of other countries is crucial for successful business transactions.
Knowing foreign languages is no longer sufficient, one needs to know customs, body
language, values, symbols and other elements of culture. There are many types of cultures.
Countries situated on one continent have a number of common characteristics, yet even
countries neighboring with each other can be characterized by a different culture. So attention
should be given to those cultures which differ significantly from our own.
Article review criteria and comments
Strength
 The article is online accessible.
 Marzena ADAMCZYK. The importance of cultural differences in international business.
CENTRAL EUROPEAN REVIEW OF ECONOMICS AND MANAGEMENT. 2017;
1(2): 151-170. URl: http://ojs.wsb.wroclaw.pl/index.php/WSBRJ/article/view/335/300
 Name of the authors: Marzena ADAMCZYK.
 The investigator’s training/education/practice sites is suitable for the study objective.
 The article was presented in comprehensive way and explained very well.
 Possible justifications were given depending on the article.
 The abstract clearly state over view of the article
 The objective of the study has clearly given.
Weakness
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 Title of journal: this article was not published on reputable journal. It is not pubmed
indexed.
 Funding source: unknown
The author didn’t disclose funding source. It is very difficult to estimate possible bias
introduced by funding source.
 Article Title: The importance of cultural differences in international business.
The tile is vague (it is better if it insert term challenge in it)
 The authors did not provide own section for introduction and did not explained gaps/
rationale of the study as well.
 The study design is not openly given.
 The source of the data was not clearly stated and the way data collected was not known.
 He should also need to acknowledge those who might contribute to this paper indirectly
(financial supporters,).
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