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Business etiquette as a decisive criterion for entreprentership

in the global labor market

Daniela Hrehová, Marián Bednár

Department social science, Technical university of Kosice

Department of Applied Ethics, Faculty of Arts, Pavol Josef Šafárik University in Kosice

[email protected], [email protected]

Abstract

The global market has created needs for international corporations. In preparing future

entrepreneurs for multinational assignments, their training should include cultural sensitivity,

understanding the importance of different cultures, business etiquette. The large number and

variety of business publications related to intercultural skills, including etiquette in the

workplace, indicate a definite interest in the topic by employers and universities. Research

shows that students need to acquire these skills for their careers on global market, more than

any other major.

Keywords: students, global market, entrepreneurship, skills

Main Conference Topic: Education, Teaching and Learning

Introduction

The expanding scope of business corporations in the first decade of the twenty-first

century is drawing much scholarly attention. The concept of global economy has defined new

standards and rules of operations, and has increased the need for national and corporate

interdependence. Corporate analysts argue that the key to global business success depends on

effective cross-cultural etiquette, ethic and global workforce diversity management. Other

significant studies have highlighted that global entrepreneurs should be trained in

interpersonal and group communication skills and should be equipped with cross-cultural

negotiation skills that can maintain global competitiveness. Increasingly, corporations

recognize the value of preparing global managers because business objectives are not

achieved primarily due to deficiencies in cross-cultural etiquette (Okoro, 2012). Against this

background, this study provides a analysis of global etiquette for enrepreneurs in

international assignments.

Business etiquette in theory and praxice

The world has become integrated and interdependent as never before, making

globalization one of the most powerful and pervasive influences on work places,

communities, and lives of people. Globalization appears to be irreversible and continues to

counter the existing local, regional, national, legal and, presumably, cultural boundaries that

have been seemingly blocking the material, ideological, and social transformation. No

country can afford to ignore an increasingly globalizing world (Melink, 2015). Today's

businesses are complex entities. However, one fundamental principle of success remains

constant - the need for communication, etiquette, protocol, and deportment. As workforces

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become increasingly multicultural and businesses continue to expand overseas, the

homogenous workforce has become a thing of the past (Humes, 2008). The cultural diversity

of businesses necessitates that internal communication now takes note of the intercultural

element if it is to be truly effective. Entrepreneurs today have to ensure that they are

understanding and being understood across cultural boundaries (Brett, 2001). Every culture is

different, and has different styles of etiquette. Every day deals are lost through

misunderstandings, even between relatively similar cultures (Martin, Chaney, 2006). These

misunderstandings do not have to be huge to have an effect on business – a poor first

impression (also informations about local expectations concerning greetings, business cards,

gift-giving, dress, punctuality, body language, table manners, and so forth) could leave

prospective partner or customer with a bad feeling. Knowing the right etiquette can help

entrepreneur avoid this and save you a great deal of wasted time and money (Leung, Cohen,

2011). Carte and Fox (2008) caution that it is vital to learn more about the different cultures

and human behaviors around the world in order to reduce the chances of managerial failure.

Te studies (O'Rourke, 2011) indicate a positive correlation between effective international

management and cross-cultural business etiquette. Globalization is one of the best and fastest

ways of growing your business, but it comes with certain challenges. Cultural differences

result in different sets of business etiquette and ethical practices from country to country.

Respecting and adopting these practices can lead to every business's success globally (Harris,

Moran, 2000). There is an ongoing debate over whether businesses should adapt to the local

environment or if there should be a standard set of principles for business etiquette around the

world. Globalization, social media and technology, along with factors like environmental

issues and political conflicts, continue to influence business trends across the world. The

appropriate etiquette for business varies greatly from place to place and must be considered

before entering into global markets.

Research methodology

We focus on the students' interest in global business before the end of their own study.

We were looking for answers to the question Which of the following criteria influenced your

decision do business on the global market? We show the most important result of the

questionnaire (more information is available). The questionnaire was designed to determine

differences between university students in the assessment of the two most important criteria

that are decisive for business on the global market (descriptive statistics + ANOVA). The

qualitative and quantitative methodology were most suitable for the study question. Doing

qualitative research is not easy. Qualitative research can help researchers to access the

thoughts and feelings of research participants, which can enable development of an

understanding of the meaning that people ascribe to their experiences.

The survey was conducted in 4 universities. Representative sample consisted of

students enrolled in master's or engineering degrees. Data collection was carried out in April

2017. A total of 1,078 students of higher education institutions (Technical University in

Košice - TUKE, Slovak University of Technology in Bratislava - STUBA, Slovak University

of Agriculture Nitra - SPU NR, University in Žilina - UNIZA).

Findings of research

The results of the empirical data processed show that (as shown in Table 1) the

decisive criteria for doing business on the global market were the minimum differences

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between the students at each university. Statistically significant differences were apparent in

two cases. A decisive criterion for doing business on a global market would be knowledge

and principles of ethics and rules of global business etiquette. This applies to students of all

higher education institutions (F = 2,818 and p = 0,024), other universities did not decide on

this criterion. Furthermore, the socio-cultural affinity and proximity of the market (F = 4,114

and p = 0,003), as a criterion for the decision to set up a business, STU BA students are

significantly less determined than students of other universities. On the contrary, the smallest

differences are the evaluation of competitive criteria on the foreign market (F = 0.94 and p =

0.985). In this case, we find a strong match between the students of all universities.

Table 1 Differences between university students in the assessment of the two most important

criteria that are decisive for business on the global market

Which of the

following criteria

influenced your

decision do business

on the global market? N priemer SD

Std.

Error

95%

Confidence

Interval for

Mean Minimum Maximum

Ethics and

business

etiquette

TU KE 602 3,75 1,17 ,0475 3,658 3,844 1,0 5,0

SPU NR 187 3,81 1,02 ,0748 3,665 3,960 1,0 5,0

STU BA 253 3,85 1,19 ,0748 3,703 3,997 1,0 5,0

ŽU 15 3,60 1,40 ,3625 2,822 4,378 1,0 5,0

iné 21 3,00 1,38 ,3008 2,373 3,627 1,0 5,0

Total 1078 3,77 1,16 ,0353 3,699 3,837 1,0 5,0

Socio-

cultural

proximity

and

proximity to

the market

TU KE 602 3,10 1,22 ,0498 3,000 3,196 1,0 5,0

SPU

NR 187 2,91 1,10 ,0805 2,750 3,068 1,0 5,0

STU

BA 253 2,76 1,17 ,0739 2,617 2,908 1,0 5,0

ŽU 15 3,27 1,16 ,3003 2,623 3,911 1,0 5,0

iné 21 3,19 1,21 ,2638 2,640 3,741 1,0 5,0

Total 1078 2,99 1,20 ,0364 2,919 3,062 1,0 5,0

Which of the following

criteria influenced your

decision do business on the

global market?

Sum of

Squares df

Mean

Square F Sig.

Ethics and

business

etiquette

Between

Groups 15,056 4,00 3,76 2,818 ,024

Within

Groups 1432,966 1073,00 1,34

Total 1448,022 1077,00

Socio-

cultural

proximity

and

proximity

to the

market

Between

Groups 23,293 4,00 5,82 4,114 ,003

Within

Groups 1518,614 1073,00 1,42

Total

1541,907 1077,00

As companies of future entrepreneurs continue to expand across borders and the

global marketplace becomes increasingly more accessible for small and large businesses

alike, 2017 brings ever more opportunities to work internationally. Multinational and cross-

cultural teams are likewise becoming ever more common, meaning entreprenurs can benefit

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from an increasingly diverse knowledge base and new, insightful approaches to business

problems. However, along with the benefits of insight and expertise, global organizations

also face potential stumbling blocks when it comes to culture and international business

(Takahashi, et al., 2012).

Recognizing and understanding how culture affects international business in three

core areas: communication, etiquette, and organizational hierarchy can help entrepreurs to

avoid misunderstandings with colleagues and clients from abroad and excel in a globalized

business environment (Hult News, 2017). The conclusions drawn by the researchers were

supported by the direct answers of the participants. The final presentation of the research

shaw that the data have come from a qualitative source. Authors presented qualitative

research findings. The themes under discussion have emerged from the participants’

interviews:

Significance. Business etiquette provides a standard framework within which business people

can operate as they communicate and collaborate. Etiquette is a sign of professionalism and

respect for others, and it can make positive first impressions while building trust among

colleagues. When business partners and co-workers adhere to a well-understood code of

etiquette, it can be easier for diverse individuals to work together, focusing their energies on

the task at hand rather than trying to understand the cultural eccentricities of others. Etiquette

plays a large role in the business cultures of different countries and geographic regions. An

attention to etiquette can help inter-cultural business dealings to be as productive as possible

by bringing all parties together under a common understanding.

Features. Business etiquette encompasses a range of factors. Verbal and non-verbal

communication are a large part of etiquette; communication styles, taboo topics and preferred

speaking distances vary by culture. Dress and appearance is another important facet of

etiquette. Business people are expected to dress professionally, or at least to take cues from

those around them as to what is acceptable. Time sensitivity is another element; some

cultures place emphasis on punctuality, and others see punctuality as a sign of eagerness or

even hastiness.

Types. The art of mastering business etiquette is not reserved for top-level managers visiting

foreign business partners. Distinct, yet unwritten, codes of etiquette exist between employees

in any workplace, and between customers and employees in the field and on the phone.

Company-level business etiquette looks much the same as intercultural etiquette, with subtle

differences arising from the relationship shared by people who work together every day.

Benefits. An understanding of business etiquette facilitates cross-cultural communication and

trade in addition to increasing productivity in the workplace. Bringing managers and small

businesses from around the world together can spur innovation and industrial progress

through the open sharing of ideas. Collaboration of individuals with diverse experiences and

cultural backgrounds can bring the world's brightest minds together by providing a

commonly understood framework for social and workplace interaction.

Challenges. Small business owners and managers must spend time studying the unique codes

of business etiquette of each country or area that they do business in.

Schaffer and Kelley (1993) indicated there is increasing evidence that recent

graduates of business schools do not possess the basic etiquette skills that are necessary to

succeed in today’s business world and that preparedness in college graduates is relatively

lacking. In 1992, Kelley recommended that business students be taught the art of intercultural

skills as part of the business curriculum. Globalization Creates New Challenges in Higher

Education. The educational institutions are faced with changes in the modern global business

environment, and this leads to a need for changes in curricula for universities (Jaeger,

Helgheim, 2011; Ferraro, Brody, 2015).

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Most of academia still uses a strict disciplinary model of education resulting in a high degree

of specialization within each discipline, while modern business environments require

knowledge workers who can address problems that cut across disciplines on an increasingly

global scale. The education process must focus on solving problems at two levels of the

intercultural label: Traditionally, there are two different approaches to culture with respect to

intercultural etiquette: a. Psychological or psychological level that focuses on internalized

standards, attitudes and behavior of individuals from a particular culture (psychological

distance is the degree of differences between groups), b. an institutional level that focuses on

national (or group) culture embedded in institutions (government, education and economic

institutions, as well as in business organizations) (Parvis, 2003; Aggarwa, 2011). The

Department of Social Sciences in Košice is dedicated to preparing our students for the

challenges and opportunities at work across borders and culture in the form of the subject of

the business skills. In this final section of this paper, we describe some research findings to

represent, as faithfully as possible, the meaning that participants ascribe to their life

experiences about global etiquette. This synthesis is the aim of the final stage of research.

Conclusion

Intercultural interaction has increased due to globalization enhancing “the need for

intercultural awareness, understanding, and training at all levels of schools” (Sorrells, 2013).

Cultural differences play a significant role in team building, decision-making, negotiations,

marketing, and advertising. Acquiring skills are important. Intercultural sensitivity affects

dry areas as communication in business, business etiquette, ethics and therefore allows future

of entrepreneurs to gain competitive advantage in the international markets. The literature

provides evidence in relation to the impact of national cultural values on the characteristics

and the behaviour of individual entrepreneurs (Stewart et al., 2003; Steensma et al., 2000).

The presence of globalization forces people to see and embrace an increase of both

similarities and differences in dry intercultural interactions. Javidan (2008) argues that those

working cross-culturally in a global environment have two major responsibilities. First, these

individuals need to understand their own cultural lens. Second, and based upon the first, if

individuals want to influence cross-culturally, they need to understand the other’s cultural

lens. Bhawuk and Brislin (1992) argue that in order for entrepreneurs to be active in other

cultures they must adhere to ethical principles and business etiquette rules, must be interested

in other cultures, being sensitive enough to notice cultural differences and then willing to

change their behavior as an indicator of respect for people of other cultures.

The paper is the partial solution result of scientific project of MŠVVAŠ SR 031TUKE-

4/2016 Education of students of technical specialization for the needs of the global labor

market.

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Brief biographies of the authors

Daniela Hrehová

She works a lecturer at the Department of social science in Košice. Scientifically

focuses on the issuses of ethics, business ethics and etiquette in social and economic

transformation, communication with the emphasis on rhetoric an intercultural

communication. She creates and participates in a number of scientific research projects at

home and abroad, also educational activities of various events (such as lecturer and

consultant) aimed at developing managerial, entrepreneurial competencies. She has a number

of educational workshops abroad. She is also reviewer of scientific studies and member of

the scientific council in journal abroad, co/authors of several monographs, books and studies

in Croatia, Poland, Czech and Slovakia.

Marián Bednár

He is Assistant Professor of Applied Ethics and Secretary at the Department of

Applied Ethics, Faculty of Arts, Pavol Josef Šafárik University in Košice, Slovakia. In 2005,

he received his doctorate in Theology from University of Trnava, Slovakia. Nowadays, he

gives lectures of sub disciplines of applied ethics. He is mainly interested in ethics,

sustainability and Franciscan spirituality in leadership, business and management.

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