Intercultural business communication chaney pdf

Intercultural Business Communication

S i x t h E d i t i o n

Lillian H. Chaney The University of Memphis

Jeanette S. Martin The University of Mississippi

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Library of Congress Cataloging-in-Publication Data Chaney, Lillian H. Intercultural business communication/LILLIAN H. CHANeY, The University of Memphis, JeANeTTe S. MARTIN, The University of Mississippi.––SIXTH eDITION. p. cm Includes bibliographical references and index. ISBN-13: 978-0-13-297127-0 (alk. paper) ISBN-10: 0-13-297127-5 (alk. paper) 1. Business etiquette. 2. Business communication. 3. Intercultural communication. 4. Corporate culture. I. Martin, Jeanette S. II. Title. HF5389.C47 2014 395.5'2—dc23

2012037536

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-297127-5 ISBN 13: 978-0-13-297127-0

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BrIEF ConTEnTS

Foreword xii

Preface xiii

About the Authors xiv

Chapter 1 The Nature of Intercultural Communication 1

Chapter 2 Universal Systems 21

Chapter 3 Contrasting Cultural Values 51

Chapter 4 Cultural Shock 73

Chapter 5 Language 92

Chapter 6 Oral and Nonverbal Communication Patterns 116

Chapter 7 Written Communication Patterns 142

Chapter 8 Global Etiquette 164

Chapter 9 Business and Social Customs 187

Chapter 10 Intercultural Negotiation Process 210

Chapter 11 Intercultural Negotiation Components 237

Chapter 12 Laws Affecting International Business and Travel 267

Appendix A: Glossary 289

Appendix B: Answers to Exercises 296

Index 298

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vv

ConTEnTS

New to the Sixth Edition xi

Foreword xii

Preface xiii

About the Authors xiv

Chapter 1 The NaTure of INTerCulTural CommuNICaTIoN 1 Globalization, Glocalization, and Grobalization 3

Culture 5

Enculturation 8

Acculturation 9

Ethnocentrism 9

Norms, Rules, Roles, and Networks 10

Subcultures and Subgroups 10

Cultural Intelligence 11

Communication Barriers 12

Intercultural Constructs 12

Global Mindsets 13

Multinational Management Orientations 14

Terms 17

Exercise 1.1 17

Questions and Cases for Discussion 18

Cases 18

Activities 19

References 19

Chapter 2 uNIversal sysTems 21 Economic Systems 21

Political Systems 27

World Economics 30

Educational Systems 32

Marriage and Family Systems 37

Social Hierarchies and Interaction 42

Terms 47

Exercise 2.1 47

Exercise 2.2 47

Questions and Cases for Discussion 48

vi Contents

Cases 48

Activities 49

References 49

Chapter 3 CoNTrasTINg CulTural values 51 Values 51

Semantic Differences 54

Attribution and Perception 55

Attitudes Toward Women 56

Work Attitudes 58

Attitudes Toward Ethics 60

Religious Influences 62

Individualism and Collectivism 64

Terms 69

Exercise 3.1 69

Questions and Cases for Discussion 70

Cases 70

Activities 71

References 71

Chapter 4 CulTural shoCk 73 Stages of Cultural Shock 76

Alleviating Cultural Shock 78

Aspects of Cultural Shock 83

Relationships and Family Considerations 85

Public and Private Self 85

Terms 87

Exercise 4.1 87

Exercise 4.2 88

Questions and Cases for Discussion 88

Cases 89

Activities 90

References 90

Chapter 5 laNguage 92 High- and Low-Context Language 94

Language Diversity 94

The Language of Numbers 95

Informal and Alternative Languages 96

Contents vii

Forms of Verbal Interaction 97

Linear and Nonlinear Language 98

Vocabulary Equivalence 99

Parables and Proverbs 100

Conversation Taboos 101

Nature of Language 103

Translation Problems 104

Interpreter Use 105

Host Language 107

Thought 108

Language and Culture Interaction 110

Terms 112

Exercise 5.1 112

Questions and Cases for Discussion 112

Cases 113

Activities 114

References 114

Chapter 6 oral aNd NoNverbal CommuNICaTIoN PaTTerNs 116 Thought Patterns 116

Paralanguage 117

Chronemics 117

Proxemics 120

Oculesics 121

Olfactics 122

Haptics 123

Kinesics 125

Chromatics 129

Silence 130

Nonverbal Leakage 130

Objects, Signs, and Symbols 131

Terms 137

Exercise 6.1 138

Exercise 6.2 138

Questions and Cases for Discussion 138

Cases 139

Activities 140

References 140

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Chapter 7 WrITTeN CommuNICaTIoN PaTTerNs 142 International English 142

Writing Tone and Style 144

Letter Formats 146

Facsimiles (Fax) 154

Electronic Mail (E-Mail) 154

Résumé and Job Search Information 156

Terms 160

Exercise 7.1 160

Questions and Cases for Discussion 161

Cases 161

Activities 162

References 163

Chapter 8 global eTIqueTTe 164 Introductions, Greetings, and Handshakes 165

Business Card Exchange 167

Position and Status 168

Electronic Communication Etiquette 170

Dining Practices 171

Tipping 173

Gift Giving 174

Travel Etiquette 177

Terms 183

Exercise 8.1 183

Questions and Cases for Discussion 183

Cases 183

Activities 184

References 185

Chapter 9 busINess aNd soCIal CusToms 187 Verbal Expressions 188

Male/Female Relationships and Workplace Equality 190

Humor in Business 191

Superstitions and Taboos 192

Dress and Appearance 193

Customs Associated with Holidays and Holy Days 195

Office Customs and Practices 199

Customary Demeanor/Behavior 200

Contents ix

Bribery 201

Special Foods and Consumption Taboos 202

Terms 206

Exercise 9.1 206

Questions and Cases for Discussion 206

Cases 207

Activities 207

References 208

Chapter 10 INTerCulTural NegoTIaTIoN ProCess 210 Steps in the Negotiation Process 211

Mistakes Commonly Made During Negotiations 214

Intercultural Negotiation Models 215

Negotiation Strategies 218

Trade Agreements 222

Negotiation Styles 226

Terms 232

Exercise 10.1 232

Questions and Cases for Discussion 233

Cases 233

Activities 234

References 235

Chapter 11 INTerCulTural NegoTIaTIoN ComPoNeNTs 237 Cross-Cultural Negotiation Components 237

Stereotypes That Affect Intercultural Negotiations 246

Comparative Negotiation Styles 246

Characteristics of Effective Negotiators 246

Importance of Protocol in Intercultural Negotiations 248

Group versus Individual Orientation 250

Face-to-Face Strategies 251

Role of the Media 251

Personal Constructs 252

Terms 258

Exercise 11.1 258

Questions and Cases for Discussion 259

Cases 259

Activities 260

References 265

x Contents

Chapter 12 laWs affeCTINg INTerNaTIoNal busINess aNd Travel 267 Home-Country and Host-Country Laws 268

International Law 270

Contracts 271

Global Patents 273

Nonwritten Law 274

Ethics and the Law 274

International Travel and Law 276

Country-Specific Travel Tips 278

Terms 285

Exercise 12.1 285

Exercise 12.2 286

Questions and Cases for Discussion 286

Cases 286

Activities 287

References 288

Appendix A: Glossary 289

Appendix B: Answers to Exercises 296

Index 298

xixi

nEw To ThE SIxTh EDITIon!

• Updating of all information presented in the fifth edition to reflect changes that have taken place in the various countries identified. More recent editions of books cited in the fifth edition are used, as well as recent journal articles.

• Expansion of country-specific information in all chapters so that students have a broader knowledge of life in specific cultures. emphasis is on the top 10 countries with which the United States conducts the majority of its international trade. Since the fifth edition, Brazil and Singapore replaced France and Taiwan in the top 10 countries.

• Addition of sidebars and activities to selected chapters. • Addition of section on objects, signs, and symbols to chapter 6. • Expanded coverage of ethics in chapter 3 and of gender/women’s issues in chapters 8 and 11. • Addition of test questions to Instructor’s Manual, as well as a suggested course syllabus for offering

a course in International Business Communication during a summer session.

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ForEworD

With the globalization of the world economy, it is imperative that managers, both present and future, be sensitive to differences in intercultural communication. Professors Lillian H. Chaney and Jeanette S. Martin have done an admirable job in addressing a broad range of issues and skills that are crucial to effective intercultural encounters. In the book, the most significant issues pertaining to cross-cultural interaction are covered: culture, intercultural (both verbal and nonverbal) communication, and cultural shock. In addition, the book contains practical guidelines and information on how to conduct negotiations across countries and write business letters in different societies as well as other general do’s and don’ts in international business. College students and businesspeople new to the international business scene can certainly benefit from such practical advice.

This book can also sensitize readers to the dynamics of international diversity. With the increasing multiethnic composition of the North American labor force and the growing participation of women in the professional and managerial ranks of organizations, it is equally important that students, the managers of the future, be attuned to the issues associated with managing and valuing diversity within a domestic context. The book addresses the issues of gender differences and how these impact on communication styles and patterns.

While recognizing the significant differences that can exist across cultures and subcultures, it is important to acknowledge the existence of individual differences within any given society. Just as it is naive to assume that all cultures are similar, it is equally fallacious to fall into the trap of “cultural stereotyping.” To quote Lao Tzu, the famous Chinese philosopher who is usually considered to be the spiritual leader of Taoism, “The one becomes the many.” Although people in a given society may share certain common values and characteristics, there can be important differences in how these are applied and exhibited in specific situations. In addition, these intranational differences can be exacerbated by religious influences, exposure to Western philosophies and ideas through education at universities abroad, overseas travel, and social and business contacts with peoples from other cultures. Furthermore, it is sig- nificant to note that cultural values and norms do evolve over time, however slowly. Some of the cultural characteristics alluded to in this book may be changing or have changed. A cursory review of the dramatic upheavals that have taken and are still taking place in virtually all aspects of societal and organizational functionings in many socialist and former socialist countries will attest to the fact that culture is not static; rather, it evolves over time.

Judicious application of the principles and techniques introduced in this book will enable readers to develop a proficiency in managing diversity, both cross-nationally and internationally.

Rosalie L. Tung The Ming and Stella Wong Professor of International

Business Simon Fraser University Canada

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PrEFACE

PurPose

With the increasing number of intercultural corporations and the internationalization of the economy, intercultural business communication continues to become more important. Government leaders, educators, and businesspersons agree that internationalizing the curriculum is important to maintaining the competitive position of the United States in the world economy. Since all international activity involves communication, students need knowledge of intercultural business communication to prepare them for upward mobility and promotion in tomorrow’s culturally diverse domestic and international environments.

Contents

Topics selected for Intercultural Business Communication were those considered important or essential by three Delphi panels of experts: international employees of multinational corporations, college profes- sors who teach intercultural communication, and members of the Academy of International Business.1 We know of no other book on intercultural communication that has used research involving experts’ perceptions of the importance of topics to be covered as a basis of content selection.

The topics include the following:

• The nature of intercultural communication • Universal systems • Contrasting cultural values • Cultural shock • Language • Oral and nonverbal communication patterns • Written communication patterns • Global etiquette • Business and social customs • Intercultural negotiation process • Intercultural negotiation components • Laws affecting international business and travel

each chapter contains objectives, terms, questions and cases for discussion, and activities. Also provided are exercises to be used for self-evaluation of material covered and illustrations to depict various aspects of the content.

Both authors have traveled or worked in a number of countries or multinational corporations and, therefore, have firsthand knowledge of many of the topics covered.

1Martin, J. S. (1991). “Experts’ Consensus Concerning the Content for an Intercultural Business Communication Course.” Doctoral diss., The University of Memphis. Major professor, L. H. Chaney.

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ABouT ThE AuThorS

Lillian h. Chaney is a Professor of Management emeritus at The University of Memphis. She received both the M.S. and the ed.D. from the University of Tennessee. She is coauthor of textbooks on busi- ness communication and office management and has published numerous articles on these topics in professional journals. Dr. Chaney has teaching experience at a South American university and has con- ducted training programs on communication, corporate and global etiquette, and business ethics for international companies, educational institutions, and government agencies. Dr. Chaney is coauthor, with Jeanette S. Martin, of Global Business Etiquette, 2nd ed. (Praeger, 2012), Passport to Success (Praeger, 2009), and The Essential Guide to Business Etiquette (Praeger, 2007).

Jeanette S. Martin is a Professor at the University of Mississippi. She received her B.A. from Michigan State University, M.B.A. from the University of Chicago, and her ed.D. from The University of Memphis. In addition to her extensive travel experiences, she has considerable corporate experience in both United States and foreign multinational corporations. Dr. Martin is coauthor of a textbook on managerial communication and has published several articles on intercultural business communication, education, and management information systems. She is coauthor, with Lillian H. Chaney, of Global Business Etiquette, 2nd ed. ( Praeger, 2012), Passport to Success (Praeger, 2009), and The Essential Guide to Business Etiquette (Praeger, 2007).

1

The Nature of Intercultural Communication

C h a p t e r

1

Objectives

Upon completion of this chapter, you will ■ understand such terms as intercultural, international, intracultural, multicultural, and

ethnocentric.

■ recognize how communication barriers affect intercultural communication.

■ understand the differences between norms, rules, roles, and networks.

■ distinguish between subcultures and subgroups.

■ understand the concepts of business globalization, glocalization, and grobalization.

■ differentiate between ethnocentric, polycentric, regiocentric, and geocentric management orientations.

The number of North Americans who work for foreign employers and the number of for-eign companies who have built plants in the United States are increasing. Evidence that the world is becoming more cosmopolitan can be seen in the number of international businesses, such as Coca-Cola, McDonald’s, Sony, and Honda, which are common around the world. The new economic bonanza is apparent in the universal appreciation of food such as sushi, fashion such as jeans, and music such as U.S. jazz and rock. Because of the global boom, more and more business will involve international activities, which require the ability to com- municate across cultures.

Because communication is an element of culture, it has often been said that communication and culture are inseparable. As Alfred G. Smith (1966) wrote in his preface to Communication and Culture, “Culture is a code we learn and share, and learning and sharing require com- munication. Communication requires coding and symbols that must be learned and shared.” Godwin C. Chu (1977) observed that every cultural pattern and every single act of social

2 Chapter 1 • The Nature of Intercultural Communication

behavior involves communication. To be understood, the two must be studied together. Culture cannot be known with a study of communication, and communication can only be understood with an understanding of the culture it supports.

To gain a better understanding of the field of intercultural communication, knowledge of frequently used terms is important. Such terms as intercultural, international, and multicultural are often used interchangeably; however, certain distinctions should be made.

Edward T. Hall first used the term intercultural communication in 1959. Hall was one of the first researchers to differentiate cultures on the basis of how communications are sent and received. Hall defined intercultural communication as communication between persons of dif- ferent cultures.

Intercultural business communication is a relatively new term in the business world and is defined as communication within and between businesses that involves people from more than one culture. Although we generally think of the United States as one culture, a great deal of cultural diversity exists. For example, between the 2000 and 2010 census, the Hispanic population increased 43%. Hispanics are currently 16% of the U.S. population, Whites are 64%, African Americans 14%, Asians 5%, American Indians and Alaskan Natives 0.9%, Native Hawaiians and other Pacific Islanders 0.2%, and others 0.9%. The Asian and Latin American populations grew as expected dur- ing the last decade. Many U.S. citizens communicate interculturally almost daily because communi- cation occurs between people of different cultural backgrounds (U.S. Census Bureau News, 2011).

Susumu Yoshida, Managing Director of Sumitomo Chemical Asia Pte Ltd., in his address to a group of international business executives in Kyoto, Japan, June 19, 2002, said: “We are on the threshold of globalization. The world economy is ‘borderless’ and markets are becoming essentially one. Corporations are looking at the free flow of goods and services, capital, and human resources, as well as information, as the pathway to growth. Hence, the corporate strategy of going global is no longer a choice but rather a ‘must’ for survival. . . . A lack of effective intercultural communication skills often causes misunderstandings. This leads to irritation and even distrust between the parties concerned. More often than not, prob- lems arise from differences in communication styles.” (Yoshida, 2002, pp. 708, 710).

Global business communication is becoming a common term to replace international or intercultural business communication when speaking of communication between businesses from different countries. This is due in part to the fact that international is assumed to be on a government level rather than on a secular level. In addition, intercultural can take place within a country between people of different cultural backgrounds and not necessarily between people from different countries. The term global business communication describes the process more accurately (Association for Business Communication Conference Panel, 2010).

As contact occurs between cultures, diffusion takes place. Diffusion is the process by which the two cultures learn and adapt materials and adopt practices from each other. This practice is exemplified by how Columbus joined the Old and New Worlds. The Old World gave the New World horses, cows, sheep, chickens, honeybees, coffee, wheat, cabbage, lettuce, bananas, olives, tulips, and daisies. The New World gave the Old World turkeys, sugarcane, corn, sweet potatoes, tomatoes, pumpkins, pineapples, petunias, poinsettias, and daily baths. With the increased globalization of the economy and interaction of different cultures, the con- cept of a world culture has emerged. A world culture is the idea that as traditional barriers among people of differing cultures break down, emphasizing the commonality of human needs,

Chapter 1 • The Nature of Intercultural Communication 3

one culture will emerge, a new culture to which all people will adhere. So why study intercul- tural business communication? Because it addresses procedural, substantive, and informational global problems, intercultural business communication allows you to work on the procedural issues of country-to-country contacts, diplomacy, and legal contexts. You can then become involved with the substantive, cultural level and become sensitized to differences. You can also gather information to make decisions when you are in an intercultural environment. The United States continues to welcome a large number of immigrants each year and has been referred to as a melting-pot society. Melting pot means a sociocultural assimilation of people of differing backgrounds and nationalities; the term implies losing ethnic differences and forming one large society or macroculture. Although the idea of everyone’s being the same may sound ideal, the problem with this concept is that many U.S. citizens want to maintain their ethnic-cultural heri- tage. Rather than being one melting-pot society, therefore, the reality is that many U.S. cities are made up of neighborhoods of people with a common heritage who strive to retain their original culture and language. In San Francisco, a visit to Chinatown with its signs in Chinese and people speaking Chinese verifies this reality. Many street signs in other U.S. cities, such as New York, Miami, and Honolulu, are in another language in addition to English. The result has not been the melding of various cultures into one cultural group as idealists believed would happen. Because cultures exist within cultures (microcultures), communication problems often result. In reality, the United States is a salad bowl of cultures rather than a melting pot. Although some choose assimilation, others choose separation. Thus, the assumption that America is a cultural melting pot, which assumes assimilation, is no longer valid (“Differences,” 1996).

Intracultural communication is defined as communication between and among members of the same culture. Generally, people who are of the same race, political persuasion, and reli- gion or who share the same interests communicate intraculturally. Having the same beliefs, val- ues, and constructs facilitates communication and defines a particular culture (Lustig & Koester, 1998). However, because of distance, cultural differences may exist within a culture, such as differences in the pace of life and regional speech patterns between residents of New York City and Jackson, Mississippi. Distance is also a factor in the differences in the dialects of the people of other cultures, such as in northern and southern Japan.

The terms intercultural communication and international communication should not be used interchangeably. Intercultural communication, as stated previously, involves communica- tion between people of different cultures. International communication takes place between nations and governments rather than individuals; it is formal and ritualized. The dialogue at the United Nations, for example, is international communication.

Because all international business activity involves communication, knowledge of intercultural communication and international business communication is important to prepare you to compete successfully in international environments. In fact, upward mobility and promotion in tomorrow’s corporate world may depend on your knowledge of intercultural business communication.

Globalization, Glocalization, and Grobalization

Globalization

Although globalization has come to the world, most of the world’s businesses are not globalized. Business globalization is the spread of ways of life across the world both socially and in business (Ritzer, 2003). International firms have subsidiaries or components in other countries; however, control of the foreign operations is maintained at the home-country headquarters. Multinational firms allow their foreign operations to exist as domestic organizations. Most firms are global, either

4 Chapter 1 • The Nature of Intercultural Communication

sourcing, producing, or exporting. Many times, the product may also be partially or completely manufactured somewhere other than the United States. In the past, some U.S. corporations have been largely insulated from globalization because of a strong domestic market and an absence of foreign competitors. However, this trend is changing as foreign corporations enter the U.S. market.

The personnel of an organization must have a global mindset for the firm to succeed in the international marketplace. Evans, Doz, and Laurent (1990) found that successful multinational corporations do not submerge the individuality of different cultures completely in the corporate culture, that intercultural contact can promote a determination not to adjust to other cultures, and that new management theory and practice can be presented only to individuals who are cultur- ally able and willing to accept it. Rhinesmith (1996) states, “The corporate culture contains the values, norms of behavior, systems, policies, and procedures through which the organization adapts to the complexity of the global arena” (p. 14). Successful corporations have found that the values, beliefs, and behaviors of the parent corporation do not need to be the beliefs, values, and behaviors of the offices in other cultures. Hofstede’s (2004) study of IBM determined that man- agers had to adjust the corporate management philosophy to fit the beliefs, values, and behav- iors of the country in which they were working. Companies with franchises abroad have had to make certain adjustments to accommodate the tastes and preferences of individual countries; for example, Tex-Mex cuisine is prepared kosher in Israel. According to Rhinesmith (1996), “Diversity—both domestic and international—will be the engine that drives the creative energy of the corporation of the twenty-first century. Successful global managers will be those who are able to manage this diversity for the innovative and competitive edge of their corporations” (p. 5). Evans, Doz, and Laurent (1990) state that the five elements critical to building a suc- cessful corporate culture are (1) a clear and simple mission statement, (2) the vision of the chief executive officer, (3) company-controlled management education, (4) project-oriented manage- ment training programs, and (5) emphasis on the processes of global corporate culture (p. 118).

Lopez-Vasquez, director of multicultural affairs at the Oregon Health Sciences University and a consultant with IEC Enterprises, Decatur, Georgia, believes that well-meaning managers who become supervisors of Hispanic workers often make the mistake of attempting to adopt a “color-blind” approach. “The cultural disparities are obvious,” he says.

Lopez-Vasquez argues for what he calls “essential treatment” for Hispanic employees. “I suggest that companies recognize that today it’s essential to take steps to recruit and retain Hispanics, because Hispanics in the United States represent a fast-growing market and because Central and South America are key areas for success in international markets,” he says. (Staa, 1998, p. 8)

Although the United States depends on foreign economic opportunities, multinational firms have had problems with U.S. citizens working in foreign assignments. The failures to adapt included differences in lifestyle, language, and business philosophy as well as problems with finances, gov- ernment, cultural shock, housing, food, gender, and family. Ruch (1989) found that the ability to blend with the host culture and explain one’s own culture is more important than product, price, or quality advantages. Although many of the people sent on foreign assignments know their U.S. market, they are unable to accept another culture on that culture’s terms even for short periods.

Glocalization

The term glocalization refers to “the interpenetration of the global and the local, resulting in unique outcomes in different geographic areas” (Robertson, 2001, in Ritzer, 2003, p. 193). As

Chapter 1 • The Nature of Intercultural Communication 5

the world grows more pluralistic, glocalization looks at the uniformity and differences between areas of the world. The degree to which a society chooses to adapt indicates the degree of glo- calization that is happening. Globalization can cause glocalization that is nationalistic or cosmo- politan. How globalization of an item is embraced determines the degree of glocalization that happens to the community. Advertising and providing products are not seen as coercive; they allow the new society to receive information with which to accept or reject a product.

Grobalization

Grobalization, according to Ritzer (2003), “focuses on the imperialistic ambitions of nations, corporations, organizations, and the like and their desire, indeed need, to impose themselves on various geographic areas” (p. 194). Because of the drive for profits to grow, once an organization has saturated one market, it must reach out (globalize) in order to continue the profit’s growth. This expands not only the profits of the organization but also the culture, the efficiencies, the capi- talistic economic system, and the consumption patterns to a new group of people (Ritzer, 2003).

As the term grobalization relates to culture, it is an expansion of common codes and practices from one location to another. In other words, it is the imposition of an organization on a new culture. What the locals do with the imposition is the glocalization of the imposition, which involves their acceptance, adaptation, or rejection. Glocalization is the interaction of the old way of doing things with the new. Many times this process results in a replacement of the way things were done previ- ously. Sometimes the process develops into a cultural hybrid, but it does bring change and reaction from the new culture that is being infiltrated. With glocalization, the different cultures in the world are becoming more alike. Individuals locally have the ability to adapt, innovate, and maneuver; and social processes may range from entrenchment to the old ways of doing things in the culture to embracing of the new. With grobalization, the world is becoming the same; individuals have little control of the changes that are happening to their cultures. Social processes are one- directional because they affect and make a new culture; they do not uphold the old culture (Ritzer, 2003).

Although we travel to experience the differences between us and people of other cultures socially, culturally, climatically, scenically, and architecturally, it is becoming more difficult because of globalization, glocalization, and grobalization to see the differences—with the excep- tion of climate and scenery. Multinational corporations have had a significant role in this conver- gence process. While a global strategy for a product means economies of scale, many companies find that where cultural differences are strong, a multidomestic strategy that takes into consid- eration the cultural differences is necessary in order to expand their markets (Marsden, 2008).

culture

Whereas communication is a process, culture is the structure through which the communication is formulated and interpreted. Culture deals with the way people live. When cultures interact, adaptation must take place for the cultures to communicate effectively. With intercultural busi- ness communication, being aware of each culture’s symbols, how they are the same, and how they are different is important.

dimensions of culture

To communicate effectively in the intercultural business environment, knowing all the cultural factors that affect the situation is essential. The graphical representation of culture in Figure 1-1 has three primary dimensions—language, physical, and psychological (Borden, 1991, p. 171).

6 Chapter 1 • The Nature of Intercultural Communication

The language, physical, and psychological dimensions of culture are interdependent. As we are born into a society, no one dimension is more important than the others. The individual dimensions develop in harmony with each other.

First, the language dimension is used to communicate with other people who have similar values and beliefs. Second, the physical dimension relates to the physical reality of our environ- ment and the cultural activities of the people. The physical dimension is measured objectively. Third, the psychological dimension relates to our knowledge, beliefs, and mental activities. The psychological dimension is measured subjectively. Although we can alter these characteristics and our way of communicating with others, we must first understand our own personal dimen- sions and understand why we are the way we are.

Culture is learned through perception. Perceptions are formed in various ways: where we are born and raised, the language we learn, the people and environment with which we live, and the psychological stimuli we encounter. No two individuals view the external world the same because no two individuals receive exactly the same stimuli or share the same physical sen- sory receptors. Because we know only what we have personally perceived and cannot know for sure what someone else has perceived, intercultural communication involving different cultures becomes particularly difficult (Singer, 1998).

Another way to describe culture is by using the cultural metaphor, which has six dimen- sions (Gannon, Locke, Amit, Pino, & Kristof-Brown, 2005):

1. What do members of a society assume about the nature of people? Specifically, are people good, bad, or a mixture?

2. What do members of society assume about the relationship between a person and nature? Specifically, should we live in harmony with nature or subjugate it?

3. What do members of society assume about the relationship between people? Specifically, should a person act in an individual manner, or should he or she consider the group before taking action (individualism to groupism or collectivism in terms of such issues as making decisions, conformity, etc.)?

4. What is the primary mode of activity in a given society? Is it being or accepting the status quo, enjoying the current situation, and going with the flow of things? Or is it changing things to make them better by setting specific goals and accomplishing them within spe- cific schedules?

Languages

(codes / modes)

Verbal Nonverbal

Physical Psychological

Human BehaviorEnvironment Content Processes

Natural Man-made Knowledge Belief systems

Encoding decoding thought

FiGure 1-1 Dimensions of Culture *Adapted from American ways (3rd ed.) by Gary Althen with Janet Bennett, 2011, Boston, MA: Intercultural Press, Inc. Used by permission.

Chapter 1 • The Nature of Intercultural Communication 7

5. What is the conception of space in a given society? Specifically, is space considered pri- vate in that meetings are held in private and people respect an individual’s need for space by avoiding close physical encounters? Or is space viewed as public? That is, everyone participates in meetings and decision making, emotions are expressed publicly, and people stand in close proximity to one another?

6. What is the society’s dominant temporal orientation: past, present, or future?

Gannon et al. (2005) use this system to separate cultures into seven groups: authority- ranking cultures; equality-matching cultures; market-pricing cultures; cleft national cultures; torn national cultures; same metaphor, different meanings cultures; and the base culture and its diffusion across borders. The authority-ranking cultures include Thailand, Japan, India, Bedouins of Saudi Arabia, Turkey, Brazil, Poland, and South Korea. The equality-matching cultures include Germany, Sweden, Ireland, Canada, Denmark, and France. The market-pricing cultures include the United States and Britain. Cleft national cultures include Malaysia, Nigeria, Israel, Italy, and Belgium. The torn national cultures include Mexico and Russia. The same metaphor, different meanings cultures are Spain and Portugal. The base culture and its diffusion across borders include China and Singapore.

Using a cultural intelligence approach to studying culture suggests that different cultures struc- ture knowledge differently and that these differences determine aspects of behavior and communi- cation such as information that is accepted as a proof for an opinion or argument, the syntax of the information, and the topics that are considered appropriate to discuss. In order for people to be cultur- ally intelligent, they must have cognitive flexibility and metacognition across different cross-cultural settings, the behavioral ability to interact interculturally, and the motivation to do so. Some people are able to communicate interculturally easier than others (Earley, Murnieks, & Mosakowski, 2007).

If you find that a particular cultural attitude is constant across cultures, then you do not have to be concerned about that particular cultural trait. However, if you find that a particular cultural attitude varies for specific cultures, you should consider the effect it will have on communications with cul- tures that possess this attitude. A cultural symbol is a word or object that represents something in the culture. Cultural symbol variability may be included in social cognitive processes such as information processing, persuasive strategy selection, conflict management styles, personality, social relations, and self-perceptions as well as habits, norms, rules, roles, networks, language, and environment. All the factors interact and influence each other. To communicate effectively in the intercultural business environment, it is important to know all the cultural factors that affect the situation.

Stereotypes of u.S. culture

Stereotypes, perceptions about certain groups of people or nationalities, exist with U.S. persons and those of other cultures. Although stereotyping is a guide to a national culture, it does not work well with individuals, particularly those who have worked in international business or who have lived or studied abroad. Individuals generally differ from their national culture in some aspects (Lewis, 2006).

In American Ways, Althen and Bennett* (2011) describe typical U.S. businesspersons as people who tend to do the following:

• Be informal in their relationships. • Be rather formal in their business attire (suits for men and dresses or suits for women);

however, many firms are becoming more relaxed in their dress codes or have a casual day when employees can dress less formally.

*Adapted from American Ways (3rd ed.) by Gary Althen with Janet Bennett, 2011, Boston, MA: Intercultural Press, Inc. Used by permission.

8 Chapter 1 • The Nature of Intercultural Communication

• Be workaholics because they spend more time working than they do with their families or social engagements; U.S. executives tend to put in long hours at the office.

• Embarrass foreign businesspeople by doing manual labor (e.g., mowing their own lawns) or tasks that would be done by the lower class or servants in their country.

• Be overly concerned with time, money, and appointments; people of other cultures inter- pret the need of U.S. businesspeople to begin meetings on time and start business discus- sions immediately as an indication that they are unfriendly, impersonal, and cold.

• Make decisions on hard, objective facts rather than on personal feelings, social relation- ships, or political advantage.

• Consider contracts and the written word as very important and to be taken very seriously. • Be aware of the status differences within the organization; however, generally no display of

superiority or inferiority is made, which tends to make rank-conscious foreigners very uneasy. • Be mobile; they rarely work for one company all their lives, which is very different from

many countries in the world. • Convey superiority in their actions because they feel the United States is a superior nation.

Althen and Bennett (2011) stereotyped U.S. persons as workaholics; they added these ste- reotypes of persons in the United States: arrogant, loud, friendly, impatient, generous, and mono- lingual. These descriptions, admittedly, are stereotypes.

enculturation

Enculturation is the socialization process you go through to adapt to your society. When you grow up in one culture, you learn one way of classifying, coding, prioritizing, and justifying reality. Cultural information that you are willing to share with outsiders is considered frontstage culture, while cultural information that is concealed from outsiders is considered backstage culture. An example of frontstage culture is a sales representative who loudly announces, “We got the Hunter Fan account.” This information is readily shared. An example of backstage culture is the sales representative who conceals the fact that his child is mentally retarded. Frontstage and backstage cultures vary by culture and by individuals within the culture because some people are inherently more open than others. As a representative of your company, you need to learn what the culture with which you are working considers acceptable frontstage information that can be shared and what is considered backstage information that is not to be shared with others.

Datan, Rodeheaver, and Hughes (1987) use the concept of scripts to explain the cognitive imprinting that happens during enculturation:

Individuals experience events in their lives as “scenes”—organized wholes combining people, places, time, actions, and in particular, affects that amplify these experiences and provide a sense of urgency about understanding them. Out of early scenes, the individual develops sets of rules for interpreting, evaluating, producing, predicting, or controlling future scenes. These rules—“scripts”—are initially innate but are supplemented and replaced by learned scripts. Higher-order scripts are created when scenes are combined and instilled with fresh affect— “psychological magnification.” . . . The order in personality development, then, derives from the individual’s need to impose order—the script—on the critical events, or scenes, in life. And, finally, scripts that initially arise from scenes begin to give rise to scenes instead, as the indi- vidual’s construction of experience affects experience itself. (p. 164)

Chapter 1 • The Nature of Intercultural Communication 9

Examples of such scripts are the inability of the Japanese to say the word “no” directly but instead to say that “it would be difficult,” and the difficulty for someone of a strong Christian background to lie to save face when lying is never condoned for a Christian.

acculturation

People do not want to abandon their past; therefore, they acculturate new ideas into their existing culture. Acculturation is the process of adjusting and adapting to a new and different culture (Hazuda, Stern, & Hoffner, 1988). If people of two different cultures absorb a significant num- ber of each others’ cultural differences and have a number of similarities, cultural synergy takes place with the two cultures merging to form a stronger overriding culture. Corporate cultures are examples of the synergy of diverse cultures.

A manager, to be productive and creative, must make his or her workers realize that the corporation is more important than individual differences. Differences are not to be suppressed but instead managed to maximize the group’s productivity and creativity. Hofstede’s (2004) work shows that what motivates a worker in one country may or may not be important to a worker in another country. For corporations to get the most from their people, they must have managers who can work effectively with many cultural groups.

People who learn more than one culture are multicultural and can move between two cultures very comfortably. An example of multicultural persons is the royal Grimaldi family of Monaco. Princess Grace was a U.S. citizen and married Prince Ranier of Monaco. The Grimaldi children were raised in Monaco; however, because of the time they spent in the United States, they were acculturated to this country. Although acculturation increases the interconnectedness of cultures, differences are sources of potential problems. All differences will probably not be absorbed by either culture.

Acculturation has four dimensions: integration, separation, assimilation, and decultura- tion. When a minority moves into a majority culture, he or she will choose one of these modes either consciously or subconsciously. Although as a majority culture we may feel that assimila- tion is the correct acculturation process, the individual may not feel that this fits his or her needs. Assimilation takes place when individuals are absorbed into their new culture and withdraw from their old culture. Integration takes place when individuals become an integral part of the new culture while maintaining their cultural integrity. Separation happens when individuals keep their culture and stay independent of the new culture. Deculturation occurs when individuals lose their original culture and do not accept the new culture, leading to confusion and anxiety (Alkhazraji, 1997). The acculturation mode that an individual chooses is governed by the indi- vidual’s views and desired ways of life.

ethnocentriSm

Ethnocentrism is the belief that your own cultural background, including ways of analyz- ing problems, values, beliefs, language, and verbal and nonverbal communication, is cor- rect. Ethnocentrists believe that their culture is the central culture and that other cultures are incorrect, defective, or quaint. When we evaluate others, we do it through our self-reference criterion because it is what we know. Fisher (1997) in his research refers to ethnocentrism as mindsets.

10 Chapter 1 • The Nature of Intercultural Communication

Mindsets are ways of being that allow us to see, perceive, and reason through our own cul- tural awareness. Mindsets are learned by growing up in a particular culture. We learn to be open or closed to others and their way of living; however, these mindsets can be altered. Mindsets include the psychological and cultural factors that make us individuals and make us different or similar. We are predisposed because of enculturation to perceive and reason according to our cultural upbringing. Our reactions to situations are preprogrammed until we decide to change. Every culture in the world has a different mindset, and every individual within that culture has a variance to that mindset (Chaney & Martin, 2005).

The U.S. mindset includes the concept that the American way is best. (“American” as used in the United States is an example of ethnocentrism because the term “American” actually refers to all the people in North, South, and Central American countries.) Although this is mainly a U.S. concept, people who are born in smaller countries feel the same about their own country— that it is the best place to live. The belief that one’s own culture is best is a natural phenomenon common to all cultures. Although it is natural to be ethnocentric and have a particular mindset, we need to look at other mindsets from the perspective of the people who hold them before we judge them as good or bad. However, we must be careful about generalizing about other cultures or making assumptions about how they view the United States.

The term Ugly American was derived from the behavior of U.S. travelers observed by persons in other cultures who judged them inconsiderate of the culture they were visiting. This term came from the 1958 book by William Lederer and Eugene Burdick and the subsequent 1963 movie by the same name. The book and movie depict an incompetent, ignorant U.S. ambassador in a fictional Southeast Asian country. The term quickly caught on to describe rude, self-centered people who have no sensitivity for those who are different from them. In reality, most U.S. Americans, when traveling to other countries, do not fit this stereotype of the Ugly American. They want to understand people of other cultures but are simply uninformed (Bosrock, 1995).

normS, ruleS, roleS, and networkS

Norms, rules, roles, and networks are situational factors that influence encoding and decoding of both verbal and nonverbal messages within a culture. They are unwritten guidelines people within the cultural group follow. Norms are culturally ingrained principles of correct and incorrect behav- iors that, if broken, carry a form of overt or covert penalty. Rules are formed to clarify cloudy areas of norms. The U.S. Supreme Court is an excellent example of an organization that looks at the intent of a rule and determines how strongly or loosely it should be followed. A role includes the behavioral expectations of a position within a culture and is affected by norms and rules. Networks are formed with personal ties and involve an exchange of assistance. Networks and the need to belong are the basis of friendships and subgroups (Chaney & Martin, 2005). An example of a political network is the exchange of votes between U.S. legislators needed to support their projects.

What makes a norm, rule, role, or network in one society can be very different for another society because we do not all share the same backgrounds or systems. Systems will be discussed in chapter 2.

SubcultureS and SubGroupS

Subcultures are groups of people possessing characteristic traits that set apart and distin- guish them from others within a larger society or macroculture. The U.S. macroculture, which comprises 64% of the population, is White. The largest U.S. subcultures include Hispanics

Chapter 1 • The Nature of Intercultural Communication 11

(or Latinos) (16%), African Americans (14%), Asians (5%), Native Hawaiians and other Pacific Islanders (0.2%), and Native Americans and Alaskan Natives (0.9%) (U.S. Census Bureau, 2011). In addition to ethnicity and race, subcultures in the United States may be categorized by age, religion, and sexual preferences. Examples of subcultures (or microcultures) in the United States include teenagers, baby boomers, millennials, GenX, African Americans, Catholics, dis- abled individuals, and trade associations. All these groups have similarities to the macroculture but also have some differences. To meet the definition of a subculture, the following three criteria should be met:

• The group members are self-identifiable; that is, group members want to be considered a part of the group.

• Group members exhibit behavior that is characteristic of the group. • The macroculture recognizes the group as a subculture and has given it a name; for example,

senior citizens (Klopf & McCroskey, 2007). A term used more recently for subcultures is “cocultures,” because of the possible implication that members of “subcultures” or “nondominant groups” are perhaps inferior (Samovar, Porter, & McDaniel, 2009).

Intercultural business communication necessitates working with subcultures. The subcul- tures form a diversity of ethnic identities with which managers must learn to work harmoniously. Women are one such subculture. As Adler (1993) states, “Although women represent over 50% of the world’s population, in no country do women represent half, or even close to half, of the corporate managers” (p. 3). In some Middle East, Far East, and South American countries, busi- ness is male oriented. Because North American women have progressed in the business world faster than their counterparts in most other countries of the world, they may expect to automati- cally be accepted by men who would be offended by women in business in their own culture. Although men in some countries are still apprehensive about conducting business with women, Bosrock (1995) states that “regardless of the attitude toward women in a given country, most women are treated politely. Much of the resistance to women in business is directed at local women, not Westerners” (p. 109). Even in Asian and South American cultures where women are traditionally seen as nurturers of the family, attitudes are changing. Many employers now are less concerned with gender than performance (Bosrock, 1994, 1997). Women sent abroad have a very high success rate. A self-report showed that 97% of the female expatriate managers were successful; a much higher percentage than reported by male expatriates (Adler, 1993).

Subgroups, although also part of the macroculture, are groups with which the macrocul- ture does not agree and with which it has problems communicating. Members of these groups often engage in communication behavior that is distinctively different from that of the dominant culture. Examples of subgroups include youth gangs, prostitutes, saboteurs, embezzlers, and other groups that have unique experiences and/or characteristics not sanctioned by the macro- culture (Dodd, 1997). The vocabularies of subgroup members make it difficult for members of the macroculture and subcultures to understand the intended meanings of the words used by subgroup members (Samovar et al., 2009).

cultural intelliGence

Cultural intelligence, according to Peterson (2004), is the ability to exhibit certain behaviors, including skills and qualities, which are culturally tuned to the attitudes and values of others. Cultural intelligence involves the areas of linguistic intelligence, spatial intelligence, intraper- sonal intelligence, and interpersonal intelligence. Although speaking a second language is not

12 Chapter 1 • The Nature of Intercultural Communication

essential to linguistic intelligence, it is helpful to learn about the customer’s native language when conducting business internationally. In addition, using international business English can increase effectiveness when communicating with persons of other cultures. Spatial intelligence is an important aspect of cultural intelligence; it involves the way space is used during greetings and introductions, as well as during meetings and other encounters. Intrapersonal intelligence involves an awareness of one’s own cultural style in order to make behavioral adjustments to international counterparts. Interpersonal intelligence includes the ability to understand other people and their motivations. Peterson (2004) recognized psychologist Howard Gardner’s theory of multiple intelligences and summarized succinctly the preceding four categories of cultural intelligence: “To interact well with people from other cultures, it helps to (a) speak a bit of their language, (b) know how closely to stand (and other nonverbal behavior), (c) know about your own cultural style, and (d) know how your cultural style meshes with those of others” (p. 95).

communication barrierS

When encountering someone from another culture, communication barriers are often created when the behavior of the other person differs from our own. Communication barriers are obstacles to effective communication. An example of such a barrier is the head nod. The nod indicates understanding in the United States, but in Japan it means only that the person is listen- ing. By understanding intercultural communication, we can break down barriers and pave the way for mutual understanding and respect.

The following are barriers to communication:

• Physical—time, environment, comfort and needs, and physical medium (e.g., telephone and letter)

• Cultural—ethnic, religious, and social differences • Perceptual—viewing what is said from your own mindset • Motivational—the listener’s mental inertia • Experiential—lack of similar life happenings • Emotional—personal feelings of the listener • Linguistic—different languages spoken by the speaker and listener or use of a vocabulary

beyond the comprehension of the listener • Nonverbal—nonword messages • Competition—the listener’s ability to do other things rather than hear the communication

Several cultural iceberg models exist. What you do not see culturally can be a barrier to your ability to communicate effectively and complete your agenda. As shown in Figure 1-2, the values that are below the “waterline” represent those on which behaviors are based; however, we respond to the surface values that we can sense. To truly understand a culture, we must explore the behaviors below the waterline. The common elements of trust, sincerity, and integ- rity are necessary to building successful business relationships when cultural differences exist (Funakawa, 1997).

intercultural conStructS

Borden (1991) lists seven constructs that individuals must possess if they are going to succeed interculturally. The degree to which we can understand intercultural communication depends on the degree to which the following are true:

Chapter 1 • The Nature of Intercultural Communication 13

• We are aware that our intent to communicate, either as communicator or communicatee, may result in only expressive behavior or information gathering, respectively.

• Our cybernetic (self-concept) in one culture can operate independently of our cybernetic in another culture.

• We are competent in the languages of other cultures. • We are able to work within the constraints (personal, situational, and cultural) of the

human communication system established by the communication from other cultures. • We are culturally literate in our own and other cultures. • We know the position of our culture and other cultures on the four universal dimensions of

values and their interaction with the cultural orientation model. • We know the cultural orientation of our culture and other cultures on the associative–

abstractive, particularistic–universalistic, and closed-minded/open-minded dimensions and can use it as the first approximation of the cognitive style of the communicants (pp. 210–213).The components of Borden’s constructs are discussed in chapters 3, 5, and 6.

Global mindSetS

In order for managers to be successful interculturally, they will need to develop a global mindset. The Thunderbird Global Mindset Project involved interviews with 215 international executives in the triad. The interviews identified the following attributes as needed by successful intercul- tural managers (Javidan, Hough, & Bullough, 2010):

Intellectual Capital

• Global business savvy • Cognitive complexity • Cosmopolitan outlook

Norms

Stereotypes

Rules

Networks

Subcultures subgroups

Values

Business philosophy

Perceptions

Nonverbals

Dress

Ethnic

Environment

Behaviors

Language

Religion

FiGure 1-2 Cultural Iceberg

14 Chapter 1 • The Nature of Intercultural Communication

Psychological Capital

• Passion for diversity • Quest for adventure • Self-assurance

Social Capital

• Intercultural empathy • Interpersonal impact • Diplomacy

It is clear to see that the corporate leaders of the future will have to have a global mindset in order to be competitive in the global marketplace.

multinational manaGement orientationS

To compete successfully in a global economy, knowledge of management styles used by inter- national corporations is also important. With the emergence of the concept of world culture has come a heightened awareness of the interdependence of nations and the need to break cultural barriers and find ways to work harmoniously with people of all cultures.

Multinational firms, those located in more than one nation, generally will follow either an ethnocentric, polycentric, geocentric, or regiocentric form of management. Multinational firms such as Sony, Quaker Oats, ExxonMobil, Robert Bosch, and Nissan may follow a single management style at all global locations or may use various styles of management to increase productivity while maintaining worker morale. All multinational or global corporations are transnational, which means they cross the borders of countries in conducting their business (Moran & Stripp, 1991).

Not all these management styles consider the diversity of cultures working within them, nor are they managed to take advantage of the surprises that surface in multinational management. As Rhinesmith (1996) has stated, global managers have a mindset that allows them to take advantage of and manage the complexity, adaptability, teams, uncertainty, and learning that the global organi- zation requires. Because people are the most critical factors for an organization to succeed globally, they are also the restraining factor in the firm’s capability to survive and grow. Human resource development personnel must be involved in the education and changing of the mindsets. The global mindset differs from the domestic mindset, as illustrated in Table 1-1 (Rhinesmith, 1996, p. 27).

table 1-1 Comparison of Domestic and Global Mindsets

Domestic Mindset Global Mindset

Functional expertise Bigger, broader picture

Prioritization Balance of contradictions

Structure Process

Individual responsibility Teamwork and diversity

No surprises Change as opportunity

Trained against surprises Openness to surprises

Source: From A manager’s guide to globalization (p. 27) by S. H. Rhinesmith, 1996, Homewood. IL: Richard D. Irwin. Inc. Used with publisher’s permission.

Chapter 1 • The Nature of Intercultural Communication 15

The person who can manage a domestic operation does not necessarily have the competen- cies to manage a global operation. People who have a global mindset tend to live life in many ways that may be physically, intellectually, emotionally, or spiritually different, depending on the culture with which they are interacting.

When a firm is located in one country and all its sales are in the same country, ethno- centric management practices are employed. Ethnocentric management does not account for cultural differences in the workforce. All workers will be treated the same. Many times the management practices employed rely on one person’s views of how the organization should be run. Some domestic corporations financed abroad that purchase goods abroad for resale at home or buy technology abroad still need to think globally because of their international activities (Moran & Stripp, 1991). For example, U.S. car manufacturers complained that their cars were not selling in Japan. These manufacturers, however, had not changed the position of the steer- ing wheel from the left to the right for driving on the opposite side of the road from the United States, and they had not downsized their cars in consideration of the limited space available to park cars in Japan. When a company expands internationally, it must consider the consumers who are targeted to buy its products.

Werner G. Hennecker (Pegasus Gold): “We run our business on a certain set of standards, regardless of whether we’re in the United States or Kazakhstan. Our in-house environmen- tal policy is much more stringent than that required by any of the areas in which we operate, but it’s inviolate. It’s been interesting getting people in some parts of the world that haven’t worried much about environmental issues to focus on them. Our solution was to base a large part of our bonus program on employees’ avoidance of environmental incidents.” (Donlon, 1996, p. 3)

Polycentric management practices consider the culture of the country in which the firm is located. The people in charge consider the cultural needs of the workers in the area in which the firm is located. A melting-pot effect may seem to exist because the majority’s culture is considered in management decisions. In the United States, you see this particularly in small firms. Leaving the polycentric management practices behind is part of the problem employees have when they move to a foreign country to work because they were comfortable with the old management style (Moran & Stripp, 1991).