The Significance of Intercultural Competence in Global Business

This essay examines the significance of intercultural competence in international business. It defines intercultural competence as the ability to communicate effectively across different cultural backgrounds, encompassing cognitive, affective, and behavioral skills. The essay highlights the importance of this skill, especially in a globalized business environment where employees and stakeholders come from diverse backgrounds. The main body discusses the components of intercultural competence, including awareness, attitude, skills, and knowledge, and emphasizes the need for a positive attitude and understanding of cultural differences. The essay outlines the benefits of intercultural competence, such as improved leadership, team cooperation, employee satisfaction, and increased financial performance. It also acknowledges potential challenges, such as communication barriers and the time required to establish effective policies. The essay concludes by reiterating the critical role of intercultural competence in achieving organizational success in the international market.

Is Intercultural
Competence Important
in International
Business

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
CONCLUSION...............................................................................................................................................4
REFERENCES................................................................................................................................................5

INTRODUCTION
Intercultural competence refers to activities in which the effective and appropriate
communication takes place between the employees who belongs to different cultures. It
comprises of cognitive, affective and behavioral skills of the employees. It is considered as a
crucial skill set in this contemporary business environment in which the employees interact with
their other co workers or stakeholders who belong to some different background. This skill is
necessary especially when a business goes international.
This essay discusses about aspects of international competence, reasons about the
importance of intercultural competence along with the problems which can be faced with this
concept.
MAIN BODY
Intercultural competence can be defined as a skill or an activity which allows the organisation in
performing the efficient functioning among the atmosphere of multicultural environment. The concept
includes a satisfying environment and lasting relationship among the employees belonging from
different cultures. The core purpose of this concept is to understand the nature and characteristics of
these various culture. The intercultural competence is very necessary when an organisation is playing
it operation at international level (Sycara, Gelfand, Abbe, 2013)
When talking with regard to internal environment the intercultural competence is necessary in
managing leadership, team cooperation and providing satisfaction to employees. The intercultural
competence also enable the organisation in getting an increase in their financials. The concept of
intercultural competence includes various components like awareness, attitude, skills and knowledge.
Awareness refers to be aware about the own biases towards another culture. If an individual is totally
known about devices he perform towards another person belonging two different culture then
respective steps a measures can be taken to bridge the gap. The attitude towards another culture a
background should not be indifferent or negative. An individual should always carry a positive attitude
towards the people of another background. People should have the knowledge about equality and they
should also try their best to practice set. Research was conducted upon the human behaviour towards
different culture or background and it shows that human does performs an unequal behaviour towards
another person who belongs from different background or culture. Where skills are refers to practice
equality in the behaviour of of an individual to what another individual who belong to different
culture. The behaviour should get continue until it is not became the part of one's daily life.
The importance about this concept is increasing with an immense speed from three decades. The
businesses have notice the necessity of intercultural competence not only in their structure but also in
their team performance. Globalisation although has given a chance to organisation operating in the
international market but with that the organisation has to inculcate intercultural competence in their
culture. Through the establishment of intercultural competence the organisation would able to give a

different competitive advantage when it operate at international level as all the employees working
with the organisation would be satisfied by the environment they have set. It not only have
in providing full satisfaction but also in increasing the productivity and profit of the organisation. The
company me also gets to gain long term benefits by the adoption of intercultural competence. Through
this activity they also attract the talented workforce towards the organisation. A good goodwill is set in
the market about the background and current practices of the organisation which increases the market
value (Moll, 2012). The adoption of this concept gives a n number of benefits to the organisation
which is uncountable that's why it had became mandatory for the organisations which are operating at
International business market.
This concept may not be needed when the organisation is operating at a domestic level only. It
requires much time to properly establish this concept otherwise before rate it create many barriers to
communication which result to ineffective productivity and finances. If the proper policy does not
implement in the organisation it may lead to conflicts, misunderstanding, and losing of talented
employees which may hamper the performance of company.
CONCLUSION
From the essay presented above, the briefing about intercultural competence has been mentioned. It is
the activity in the multi functional activity and communication done effectively among the employees
of different backgrounds. It provides various benefits to the organisation especially when it operates at
a international level. These may includes increase in productivity, employee’s satisfaction, increase in
finances, and retention of employees, good cultural and satisfied environment. Although it has various
problems also that it requires time to get the policies well establish, till then the communication
problem does organisation face. It also leads to misunderstandings among people.

REFERENCES
Books and Journals
Sycara, K., Gelfand, M. Abbe, A. (2013), pp. 67-95
Moll, M. (2012), pp. 1-13
Online
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