Importance of Culture, Language and Religion in international Business
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
April 9, 2022
Importance of Culture, Language and Religion in international Business
Businesses are increasingly more international and the need for effective cross-cultural
communication has become essential. Being aware of foreign culture is the key to successful
business expansion globally.
What is Culture?
Culture is defined as the specific learned norms of a society that reflect attitudes, values,
and beliefs.
In business, major problems of cultural collision are likely to occur if: a firm implements
practices that do not reflect local customs and values and/or employees are unable to accept or
adjust to foreign customs. Managers are expected to understand the major causes of cultural
differences and change, to grasp behavioral factors influencing countries’ business practices, to
become familiar with cultural guidelines (for companies that operate internationally), and to
learn more about cultural environments.
Importance of Culture
In the book Management Across Cultures: Challenges and Strategies, the author uses a
grasshopper to explain how it is seen in different cultures: In United States it is considered a
plague and a useless insect, in China it is considered as a pet, and in Thailand it´s a great snack
to be used in sandwiches. The point that the author is trying to drive is that if a grasshopper can
create so many view points, there are so many other aspects which could mean different things
to people from different cultures.
So, every business must learn about the culture of a country in case it intends to do
business in that country, and, even more important is to take care of things that is considered
offensive (useful when promoting or naming the products).
Here are some more examples of business protocol in different countries:
In South America it is common to do business face to face.
In Russia, decisions have to be approved by several committees, which can make
business agreements take much longer.
In Japan, they have learnt the art of silence in negotiations and many times Americans
are not used to it and desperately think that something has gone wrong and feel pressure to
close the negotiation when it is not needed.
Here are some examples of how some companies have failed when localizing their
business in different countries:
The multinational energetic company Powergen chose the name powergenitalia
(powergen + italia) for their delegation in Italy (www.powergenitalia.com). They received a
huge number of visits to their website, but most of them were from people who thought that
the web commercialized products to solve sexual impotence (power + genitalia), a market very
different market from their target.
George Bush gave Chinese Premier Li Peng a gift of cowboy boots embroidered with the
American and Chinese flags in it. This act was criticized widely by many diplomats on account of
a significant miss on the part of administration protocol experts. This incident highlights the
importance of culture in international business.
Cultural Dynamics
Cultures consist of societies, i.e., relatively homogeneous groups of people, who share
attitudes, values, beliefs, and customs. Cultures are dynamic and they evolve over time. Cultural
value systems are set early in life, but may change because of choice or imposition and due to
contact with other cultures. Societal values and customs constantly evolve in response to
changing realities.
The basic similarity amongst people within countries is both a cause and an effect of
national boundaries. National identity is perpetuated through the rites and symbols of a
country and a common perception of history. Cultural imperialism is brought about by the
imposition of one culture upon that of another. Certain elements introduced from outside a
culture may be known as creolization, indigenization, or cultural diffusion. Subcultures, on the
other hand, may link groups from different nations more closely than certain groups within
nations.
Importance of Language in Culture
Isolation from other groups, especially because of language, tends to stabilize cultures.
Some countries see language as being so important that they regulate the inclusion of foreign
words and/or mandate the use of the country’s official language for business purposes.
Importance of Religion in Culture
Religion is a major source of both cultural imperatives and cultural taboos. Major religions
include: Buddhism, Christianity, Hinduism, Islam, Judaism.
Factors Affecting Work Ethics
The desire for material wealth vs. the desire for leisure (Protestant Ethic)
The expectation of success and reward
Assertiveness (Hofstede’s masculinity vs. femininity index)
Needs satisfaction (Maslow’s Hierarchy)
Motivated employees are normally more productive, and higher productivity leads to
lower costs.
Factors Affecting Relationship Preferences
Power distance, i.e., the psychological and social distance between superiors and
subordinates
Individualism vs. collectivism: Individualism represents a desire for personal freedom,
time, and challenge. Collectivism represents a dependence on the organization as well as a
need for a safe environment.
Factors Affecting Risk-taking Behavior
Uncertainty avoidance, i.e., one’s tolerance of risk
Trust, i.e., one’s belief in the reliability and honesty of another
Future orientation, i.e., the need for immediate vs. delayed gratification
Fatalism, i.e., the belief that life is pre-destined, that events are “the will of God”
Factors Affecting Information and Task Processing
Communication context: Is the culture low-context culture [explicit] or high-context culture
[implicit]. Then there could be selective perception of cues.
Information processing: Some are monochronic [work sequentially], some are polychronic
[multi-task]. While idealistic cultures are principle driven, pragmatic cultures are detail driven.
Factors that affect the communication process
Spoken language, Written language, Silent language: color associations, conversational
distance, perception of time, kinesics [body language and gestures]. Problems in
communication may arise, even when nations share the same basic language (e.g., British,
Canadian, and American English).
Managerial issues associated with cultural differences
Managers may face issues working with subordinates depending on: Accommodation of
foreigners, Cultural distance [degree of similarity], Culture shock and reverse culture shock,
Managerial orientations (polycentric, ethnocentric, geocentric).
