Global business cultural analysis

Global Business Cultural Analysis: Italy

Abstract

Introduction

Italy is the eighth biggest economy on the planet and the nineteenth biggest market for United States trades. There are numerous advantages to doing business in Italy. The valuation for the Euro, the maturing population, the inundation of migrants, the Italian quality in plan and advancement, and the accentuation on sustainable power source are only a couple of the various motivating forces. In 2010, the Italian GDP was $1.77 trillion (Povera Italia, 2018). Since the end of World War II, the Italian economy has changed significantly. Once an agriculturally based economy to now a developed industrial state. Italy is a member of the European Union and the Organization for Economic Cooperation and Development (OECD), and have its place as the Group of Eight (G8) industrialized nations. “Italy's economic strength is in the processing and the manufacturing of goods, primarily in small and medium-sized family-owned firms. Its major industries are precision machinery, motor vehicles, chemicals, pharmaceuticals, electric goods, and fashion and clothing” (Superintendent of Documents, 2005, p.6). The United States and Italian have a solid and developing economic relationship. The United States and Italy participate closely on major economic issues. Italy has a huge population and a high per capita income and is one of the United States most important trade partners. In 2002 the United States was the fifth-biggest foreign provider of the Italian market and the biggest provider outside the European Union. The total exchange between the United States and Italy was $34.4 billion in 2002. The U.S. ran a $14.2 billion deficit with Italy in 2002. Italy has an amazing geographic position which offers global organizations working together in Italy access to the two its inside market and that of its flanking nations, the country additionally boasts a solid and diversified economy (Superintendent of Documents, 2005). “63% of Italy’s national income is provided by tourism, which adds to the gratefulness that numerous Italians have for foreigners visiting their country” (Lirette, 2018, para. 4).

This paper intends to analyze the significant elements and six dimensions of Italian culture. It will explore how those elements and dimensions are coordinated by local people directing business in the country. This paper will then investigate how these things compare with US business and culture. Lastly, it will examine the suggestions for US organizations wishing to direct business in Italy.

The Major Elements and Dimensions of Polish Culture in Italy

According to Satterlee (2018), culture is defined as, “the set of shared goals, values, practices, and attitudes that characterize a society, or in the business sense, an organization” (p. 36). Satterlee (2018) states that “in order for a business to be successful overseas, there are six dimensions of culture that a global business professional must understand, they are: Communication, Religion, Ethics, Values and Attitudes, Manners and Customs, and Social Structures an Organizations” (p. 37)

Communication

Communication is defined as the process of understanding and sharing meaning (Pearson & Nelson, 2000, p. 6). Significant factors in communication contain verbal communication, non-verbal communication, and context either high or low. “A communication style is the way people communicate with others, verbally and nonverbally. It combines both language and nonverbal cues and is the meta-message that dictates how listeners receive and interpret verbal messages” (Liu, 2016, p. 2). It is critical for Italians to be able to utilize the correct language and the correct gestures when communicating. Using hand motions and personal contacts are a component of Italian conversations. It is a generalization that Italians love to talk. It is realized that they placed confidence in information given to them orally by someone with whom they have a solid, trusting relationship than any information sent in composing from a remote place.

Understanding differences in communication styles and where these differences originate from enables us to amend the identified to thinking about what things mean to your solid basic structures on which bigger things can be built. We will in general make sense of the value, sum, or nature of socially distinction of others and this is a critical advance toward picking up a more noteworthy understanding of ourselves as well as other people (Liu, 2016, p. 2). “Body, face, voice, appearance, touch, distancing, timing, and physical surroundings all play a

part in creating the total communication” (Burgoon, Guerrero, & Floyd, 2010, p. 3). Each communication variables will be discussed as it applies to the Italian communication style.

Verbal communication refers to the utilization of sounds and language to relay a message. It accommodates as a conveyance for expressing desires, conceptions, and ideas and is vital to the processes of learning and teaching. The dominant verbal language in Italy is the romance dialect of Italian. “This language is spoken by approximately 85 million people throughout the world and serves as one of the working languages of the Council of Europe” (Pariona, 2017, para. 1).

Direct Communication: Italians will in general talk in flamboyant voices to make themselves heard and to express enjoyment or conviction. However, they can likewise be modest, unexpected and mocking. Italians are direct communicators. They will, in general, be open about their feelings and talk distinctly about their point. They normally expect the same genuineness from their discussion accomplice and may neglect to peruse into under-representations. Italians can become uneasy with lingering periods of silence and may normally speak to fill the awkwardness. Italians regularly appreciate joking throughout the conversation to help lighten the mood (Cultural Atlas, 2018).

Language Style. Italians are for the most part are very open, curious and intense. They seek to know a lot about a person’s biography and foundation. They are anxious to give their conclusions or advice on your action. For instance, they may bring up a mistake in your association of your home and give you a tip on the most proficient method to adjust it. Notwithstanding, abstain from disregarding them or closing down their inquiries and remarks (Cultural Atlas, 2018).

Nonverbal communication is body language, facial expressions, or voice without the language-based content. Individuals depend intensely on not utilizing the voice, instead, hints or signals are used to express themselves and to understand and explain others' communication.

According to Hall, Horgan, and Murphy (2018), “the complex relationship between nonverbal and verbal behavior impacts the thought and language processes of a sender (the person sending or encoding nonverbal information) and the inferences drawn by a perceiver (the person receiving the sender’s nonverbal information)” (p. 24.2). Italians by and large hold a closeness to one another at times standing not exactly a meter far from the individual they are conversing with. Italians are generally contact related individuals and very sweet and kind. Usually to see embracing, kissing, back-slapping and hand-holding in broad daylight. Coordinate eye to eye connection is normal and held amid discussions. In a few places in Italy, gazing is normal as individuals review everyone around them. Italians normally impart a considerable measure of thought and feeling in their manner of speaking, outward appearances and non-verbal communication, regularly waving and motioning with their hands to focus on their point. This can in some cases appear to be sensational or theater based. When speaking with Italians one should expect many hands and arm developments to be utilized amid correspondence and should consider trusting the amount they utilize their very own in correlation (Cultural Atlas, 2018). Subsequently, Italians are frequently guided by their sentiments and in business circumstances, this is critical to recall as starting and expanding on strong connections dependent on trust are essential for viable business (Communicaid Group Limited).

High context and Low context

Cardon (2008), found that Hall defined high-context and low-context messages as follows:

A high-context (HC) communication or message is one in which most of the information is either in the physical context or internalized in the person, while very little is in the coded, explicit, transmitted part of the message. A low-context (LC) communication is just the opposite; i.e., the mass of the information is vested in the explicit code (Hall, 1976) (p. 401).

A high-context culture depends on understood correspondence and nonverbal signals. In high-context communication a message cannot be comprehended without an enormous amount of related information. A low-context culture depends on express correspondence. In low-context communication, a more prominent measure of proof is clarified and portrayed (Neese, 2016). Liu (2016) state the following:

According to the Sapir-Whorf hypothesis, the language we speak, especially the structure of that language, determines how we perceive and experience the world around us; though criticized, evidence shows that high-context and low-context communication styles can be attributed to the languages spoken in different cultures (p. 13).

Italy is mostly considered a high context culture. Most of their culture communication is accentuated on physical signs. In high context cultures, a large portion of the information is in the physical setting of disguised in the individual. The communicator feels that no explanation is require, the individual they are addressing should obviously understand what they are endeavoring to say.

Religion

The connection between Italian and religion is exceptionally uncommon. Italy is, intrinsically, a country grasping all doctrines and religions, where the connection between State and Church is controlled and endorsed by protected laws. Italy is viewed as a secular state, however, the primary religion in Italy is Roman Catholic. According to the Central Intelligence Agency (2018), Muslim, agnostic, and atheist accounts for the other 20 percent of the Italian population. The impact of the congregation is generally high as there are more Catholic places of worship per capita in Italy than in any other country. Despite the fact that the epicenter and government of the Catholic Church (the Vatican) and its leader (the Pope) are situated in Rome, Italy surrendered Catholicism as a state religion in 1984 to maintain a gap between religion and law. Dixon, Hawkins, Heijbroek, Juan-Torres, and Demoures states:

No nation is more influenced by its Catholic heritage and identity than Italy, even though Italian society has become increasingly secular in recent generations. Italy is the seat of power of the Roman Catholic Church. It has supplied more of the Church’s pontiffs than any other country; indeed, every Pope between 1523 and 1978 was of Italian origin. Unsurprisingly, Catholicism is an important part of Italian identity and tradition – even to many who are not practicing Catholics (2018, p. 53).

Because of Roman Catholic being the prevailing religion for Italians, it will be significant for individuals working with Italians to give careful consideration to Italy's Christian occasions. Accordingly, trying not to plan any conference or arrangements on any of their vital religious dates would be respectful.

Ethics

According to Cerf (2016), “Ethics is derived from the Greek ethos, which is defined as the characteristic spirit of a culture, era, or community as manifested in its beliefs and aspirations” (p. 79). Ethics are essential in any societal set up as a method for guaranteeing nearer relations between individuals as they associate and continue on ahead in the general public. The ethics are established on the regard for an incentive to every single gathering that is engaged with the Italian society has dependably existed and regard the estimations of every single individual in the general public. This incorporates pushing for human rights, guaranteeing mutual participation in the different activities and supporting each other on different establishments as a general public. The ethics likewise endeavor to help the methods and system set up to battle different types of bad form and guaranteeing open society to worldwide citizens.

Majority of the people in Italy have incredible respect for religious contrasts in spite of being established on Roman Catholic. The racial and ethnic varieties have additionally been given more significant importance. The above prospects have guaranteed a more incorporated society in Italy contrasted with different nations in Europe. This has been incredibly connected to a more otherworldly society that has more noteworthy regard for human nobility and ethics.

Values and Attitudes

People from a similar culture do not all think alike or share similar values systems and opinions. Inside any cultural group or community, personal views and values are molded by numerous variables including our age, gender, income, religion, sexuality, profession, education, political perspectives, and personal experiences. Similarly, values and attitudes can change after some time and are never the same thing to everyone. According to Atma Global Inc (2013), there is nothing more vital to Italians than family. Their faithfulness and responsibility start with family. Italians want to keep up family solidarity and along these lines is known to have a few generations living under one roof. Italians are noisy and garrulous explicitly amid supper time with their families and companions. A larger part of Italians values and attitudes are molded by the church.

Most Italians values and attitudes are equivalent to the Catholic church. They are generally direct in their suppositions about existence, trusting that life is delightful and intended to be appreciated and shared. Trust is essential to Italians and they are unhurried to offer it. When their trust is earned, it will endure forever as Italians will think about you as a component of their family. Italians trust should not be taken for granted, as Italy was at one time a nation vanquished, controlled, and disillusioned by numerous individuals all through its long history. Respect is vital to Italians. From their point of view, if trust is not demonstrated their trust will never be earned. Specific in business settings, respect is communicated in the tone of the voice and by utilizing individuals' formal titles (Atma Global Inc, 2013).

Manners and Customs

Italy has a reputation for being warm and inviting. Italians welcome acquaintances with two light kisses on the cheek, first the right and afterward the left. Regardless of whether you are simply colleagues, this type of welcome is common, at arrival and departure. When first meeting Italians a handshake is regular, in spite of the fact that not really the firm systematic handshake different nationalities might be used to. Clothing rules are often written in Italy. Italians are exceptionally traditionalist about attire; everybody wears similar styles, from youngsters to elders. People should not be offended if they are watched skeptically because they are not wearing the most recent attire or insidiously pointed boots. It is critical not to pass judgment on individuals consequently by their decision of dress. Styles do not really convey similar implications in Italy that they would in Britain or some different nations. Now and again dress guidelines are composed. When visiting a congregation or religious site women should cover up; no exposed backs, chests, shoulders and once in a while no knees. Exhibition halls and different attractions can be strict. In the event that you need to visit a congregation or religious site it would be smart to take something to cover yourself up with. A few places of worship supply smoke screens, sarongs are lent to men with shorts so they can unassumingly hide their legs.

Social Structures and Organizations

The Influence of Italian Cultural Dimensions on Business

Communication

Direct communication.

Language style

Religion

Ethics

Values and Attitudes

Manners and Customs

Doing Business

10: Showing up on time for business appointments is the norm and expected in Italy. There are more business lunches than business dinners, and even business lunches aren’t common, as Italians view mealtimes as periods of pleasure and relaxation.

11: Business cards are used throughout Italy, and business suits are the norm for both men and women. To be on the safe side, it is best not to use first names or a familiar form of address until invited to do so.

12: Business gifts are not the norm, but if one is given it is usually small and symbolic of your home location or type of business.

Social Structures and Organizations

How do the above items compare with US culture and business?

Hofstede’s Dimensions of Culture

Power distance

POWER DISTANCE

This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally .

With a score of 50, Northern Italy tends to prefer equality and a decentralisation of power and decision-making. Control and formal supervision is generally disliked among the younger generation, who demonstrate a preference for teamwork and an open management style. Bear in mind that the high score on Individualism accentuates the aversion of being controlled and told what to do.

In Southern Italy all the consequences of PDI are often high, quite the opposite of Northern Italy.

Communication

Religion

Ethics

Values and Attitudes

Manners and Customs

Social Structures and Organizations

Individualism

INDIVIDUALISM

The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members . It has to do with whether people´s self-image is defined in terms of “I” or “We”.

In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

At a score of 76 Italy is an Individualist culture, “me” centered, especially in the big and rich cities of the North where people can feel alone even in the middle of a big and busy crowd. So family and friends becomes an important antidote to this feeling; but the word “friend” should not be misinterpreted because in business it has a slightly different meaning: someone that you know and can be useful for introducing you to the important or powerful people.

For Italians having their own personal ideas and objectives in life is very motivating and the route to happiness is through personal fulfillment. This dimension does vary in Southern Italy where less Individualist behavior can be observed: the family network and the group one belongs to are important social aspects, and rituals such as weddings or Sunday lunches with the family are occasions that one can’t miss. People going from Southern Italy to the North say that they feel cold not only for the different climate but for the less “warm” approach in relationships.

MASCULINITY

A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational behaviour.

A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine) .

At 70 Italy is a Masculine society – highly success oriented and driven. Children are taught from an early age that competition is good and to be a winner is important in one’s life. Italians show their success by acquiring status symbols such as a beautiful car, a big house, a yacht and travels to exotic countries. As the working environment is the place where every Italian can reach his/her success, competition among colleagues for making a career can be very strong.

UNCERTAINTY AVOIDANCE

The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.

At 75 Italy has a high score on Uncertainty Avoidance which means that as a nation Italians are not comfortable in ambiguous situations. Formality in Italian society is important and the Italian penal and civil code are complicated with clauses, codicils etc. What is surprising for the foreigner is the apparent contradiction between all the existing norms and procedures and the fact that Italians don’t always comply with them. But in a bureaucratic country one learns very soon which the important ones are and which are not, in order to survive the red tape. In work terms high Uncertainty Avoidance results in large amounts of detailed planning. The low Uncertainty Avoidance approach (where the planning process can be flexible to changing environment) can be very stressful for Italians.

In Italy the combination of high Masculinity and high Uncertainty Avoidance makes life very difficult and stressful. To release some of the tension that is built up during the day Italians need to have good and relaxing moments in their everyday life, enjoying a long meal or frequent coffee breaks. Due to their high score in this dimension Italians are very passionate people: emotions are so powerfully that individuals cannot keep them inside and must express them to others, especially with the use of body language.

LONG TERM ORIENTATION

This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future , and societies prioritise these two existential goals differently. Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.

Italy’s high score of 61 on this dimension shows that Italian culture is pragmatic. In societies with a pragmatic orientation, people believe that truth depends very much on situation, context and time. They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results.

INDULGENCE

One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses , based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.

A low score of 30 indicates that Italian culture is one of Restraint. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put much emphasis on leisure time and control the gratification of their desires. People with this orientation have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.

What are the Implications for US Businesses that want to Conduct Business in Italy?

Factors of Culture.

Relationships and respect.

Communication.

Initial meetings and contacts.

Decision-making.

Attractive Business Opportunity

SWOT and FDI analysis

References

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