Cross-Cultural Business Communication

Updated: Jul 22, 2024

Authored by Yue (Emily) Wang and Darshana Subramaniam

Introduction

As globalization continues to impact the dynamics of the business environment, many companies are looking for opportunities to grow their business internationally. At the same time, businesses face significant challenges when pursuing these opportunities as they navigate diverse cultures. The objective of this article is to provide insights and practical recommendations for facilitating effective cross-cultural communication. We aim to help businesses overcome the common pitfalls associated with international expansion and better foster dialogues both within the businesses and with potential partners.

Challenges

For businesses, communication difficulties caused by cultural differences can lead to inefficiencies and missed business opportunities. Some common challenges are:

Differences in communication styles Formation of cultural silosCorporate culture vs. local culture Differences in business etiquettes (Meyer)

The differences in communication style could be based on implicit communication, such as body language or facial expressions. Implicit communication has become part of daily life, but becomes increasingly challenging when everyone is not located in the same office. The problems with implicit communication lead to more issues with employees trying to cross cultural barriers. Employees start preferring to work with those that they see on a regular basis, rather than transferring the same cooperation internationally. Company culture may value certain characteristics, such as efficiency, but when moving to another country find that those values do not align with the cultural values. The culture of a company may not be adaptable to the new region, but it does depend on the product the company is working with. If it is unique and has very few or no local competitors, it does not require modifying for the local culture. Therefore, adopting effective cross-cultural communication strategies is crucial when it comes to mitigating these obstacles and teambuilding, which contributes to the core of business success.

Applying the CAGE Framework (Kennedy et al.)

One commonly used strategy is to apply the CAGE framework when analyzing the distance between the target countries and the home country of the business. It assesses the differences based on four dimensions, namely cultural distance, administrative distance, geographic distance, and economic distance.

Cultural Distance

For cultural distance, it is important to examine differences in culture, language, religion and social norms that could hinder communication. An example of this is greetings, in the United States it is common to shake hands, however in Japan it is common to bow

when greeting someone (Mitchell).

Administrative Distance

Administrative distance requires businesses to look at how regulatory processes and bureaucracy; in some countries compliance requirements are easier to be

met than in other countries.

Geographic Distance

In terms of geographic distance, physical distance has to be taken into account and the location of the two countries in relation to one another.

Economic Distance

Finally with economic distance, examining the differences in economic development and the market size of the two countries.

From this structure, businesses are able to measure the risk and potentials of entering the foreign markets. It is important to keep these in mind when starting to work with new firms internationally.

Other Solutions

There are small solutions that can work when dealing with these common problems. If there are differences between the corporation’s culture and the country’s culture it is important to identify how those differences impact employees. When working internationally, it is important not to rely solely on implicit communication, instead be explicit with expectations and what is reasonable to accomplish. With countries that speak different languages, meetings may require more preparation so as to translate relevant materials, suggest people use the same language and speak slowly, as well as offering allotted times for feedback. When the firm is expanding, identify key units that can remain functioning as is and are more flexible to the new rules that are established. Combining cultural and corporate norms are important, so ensuring every employee has an understanding of why the norms are set the way they are. Ensuring that diversity is present and that teammates are bringing varied perspectives, so as not to create fault lines (Meyer).

The firms can also take initiative in raising awareness that there are cultural differences by learning what values, religious holidays, and becoming more acquainted with the country itself. Allow employees to ask questions, but also emphasize sensitivity and discourage the use of slang that could be offensive or misunderstood. Diversify leadership to best reflect the company and ensure that diverse perspectives are valued and taken into consideration. Teach employees active listening and opening more channels of communication (Wells). Through these it is important to promote diversity, be sensitive, and be open to learning throughout the process.

How CIAG Consulting Helps

Cambridge International Advisory Group offers a wide range of services designed to help businesses overcome these challenges and thrive.

Small Businesses Management: We help companies improve efficiency and minimize operational challenges by customizing plans to fit local norms and practices.

Media Management: We assist businesses in crafting marketing messages that resonate with diverse audiences, ensuring brand unity while respecting cultural differences.

Product Launch Support: We help businesses launch products that meet the needs of customer bases by researching and understanding different customer preferences from diverse backgrounds.

Corporate Strategy & Expansion Forecasting: We provide assistance with corporate strategy and expansion forecasting that helps businesses to succeed in diverse cultural settings.

(CIAG Business Consulting)

With differing styles of communication being prevalent in the international business environment, a consultant can help analyze the various styles of communication common in each region and create a plan to help manage them. As the world is becoming more interconnected, working with firms across the globe has increased. Working closely with firms to analyze different market trends, and styles of communication.

Conclusion

The world has become smaller and more interconnected, and international business is becoming more common. To facilitate the process, it is important to do research on the specific culture and build in support mechanisms.

References

“Cambridge International Advisory Group LLC | Business Consulting.” CIAG, https://www.cambridgeintladvisory.com. Accessed 25 June 2024.

Kennedy, Adapted by Reed, et al. 9.3 CAGE Framework. Aug. 2020. pressbooks.lib.vt.edu, https://pressbooks.lib.vt.edu/strategicmanagement/chapte r/9-3-cage-framework/.

Meyer, Erin. “When Culture Doesn’t Translate.” Harvard Business Review, 1 Oct. 2015. hbr.org, https://hbr.org/2015/10/when-culture-doesnt-translate.

Mitchell, Mary. “Modern Etiquette: Different Cultures Have Different Greetings | Reuters.” Reuters, 6 Aug. 2012, https://www.reuters.com/article/idUSBRE875194/.

Wells, Rachel. “5 Strategies For Cross-Cultural Communication Across Global Teams.” Forbes, 3 Oct. 2023, https://www.forbes.com/sites/rachelwells/2023/10/03/5- strategies-for-cross-cultural-communication-across- global-teams/.