Note: This article is presented here due to popular demand. Most of the information it contains remains highly relevant today. What is absent from this article, however, are references to the enormous quantity of digital resources available via the Internet which did not exist when this article was first written.
Increased awareness and understanding of different global cultures through “intercultural competence” can provide your company or organization with competitive advantages in its international marketing iniatives.
Globalization. International focus. Multilinguilism. Cross-cultural training. Internationalization. These are just a few of the many terms which are encountered with increasing frequency within the business sector today. It is no secret that, all across the planet, the business sector is becoming increasingly “international” in scope.
This increased internationalization of world business is being driven by many factors, including: the reduction of international trade barriers; expanding new markets in other parts of the world, which offer great opportunities to increase one’s business activities; the emergence of new competitor companies and organizations from abroad; and, the formation of international trade alliances.
Perhaps nowhere is this trend toward increasing internationalization of markets more significant than within the hospitality, travel and tourism sectors of the world economy.
Within this increasingly international business environment, those hospitality-sector companies and organizations which possess (or acquire) an understanding of different global cultures can obtain a distinct competitive advantage over those which do not. This is because those which do possess or develop such “intercultural competence” can perform more effectively within international markets. Those which do not develop such skills are more likely to either lose business to others that are more culturally aware, or, possibly, to never identify such international opportunities in the first place.
The significance of intercultural competence is growing due to the increasingly international nature of the global business environment. In fact, it is not uncommon to hear about the creation of a single, truly global marketplace, in which one’s goods and services would be marketed and sold on any part of the planet. While this notion has not been fully realized, the trend in that direction is unmistakable. New communications technologies — the Internet, in particular — are helping to make this a reality.
However, in spite of the increased internationalization of the world’s business environment, it would be a mistake to presume that there is a comparable trend toward creation of a single, global culture.
By contrast, in comparison to the business sector, culture is deeply rooted and resistant to change. In fact, in recent years there has been a strong resurgence of cultural awareness and identity in many parts of the world. This fact is especially obvious within the former “communist” states of Eastern Europe and the Baltic Region, where cultural and national identity surged as Soviet influence was removed.
One result of this was that the former nation of Czechoslovakia was split — peacefully and by mutual agreement — along cultural and linguistic lines — into two separate states: the Czech and Slovak republics, each having its own unique cultural identity. By contrast, cultural identity was taken to violent extremes within the former Yugoslavia resulting in an extremely destructive civil war. In many parts of the world today, one can find other examples of how cultural identity remains an extremely important factor within human society.
Accordingly, as the business sector becomes increasingly international in character, the need to develop “intercultural competence” — defined here as a critical awareness of the distinctive features characterizing a culture other than one’s “home” culture — is becoming ever more necessary. This is certainly true for the combined hospitality, travel and tourism sectors of the economy, which are already to a great extent “international” in character and oriented to worldwide markets.
CULTURE DEFINED
Simply defined, “culture” is the sum total of the ways in which a nation or group of people think, act and live. The elements of a culture include its language, religion and customs. Culture is acquired or learned over many years, and is passed down from one generation to the next. Each culture has a unique history which is continually added to with the passing of time.
When one is dealing with individuals from different cultures, a whole range of factors may be present: language; religious influences; historical legacy; geographical factors; customs; and, material culture including clothing, shelter, artistic creations, products). These elements can be considered as “interlocking” components, which, taken together contribute to a culture’s unique identity. For example, a culture’s language, religion and customs cannot be separated from its history, for each is related to the other. Thus it is important to develop a comprehensive viewpoint when learning about other cultures, and not merely to look at comparatively superficial facts, figures and statistics (as useful as these may be).
Understanding how cultural factors may impact international sales and marketing efforts can assist you to establish solid, rewarding, and mutually beneficially international business relationships. However, a misunderstanding of intercultural differences may, by contrast, lead to difficulties which could either spoil new business negotiations or do damage to an existing international business relationship.
THE BENEFITS OF INTERCULTURAL COMPETENCE
Whether you are trying to attract new clients from abroad, opening a new property within another nation, or seeking new business opportunities overseas, a clear understanding of the cultural dimensions of the nation or group you are dealing with can help you to act more effectively. Intercultural competence can assist hospitality sector firms with their international sales and marketing efforts in the following ways:
• To identify potential new target markets for your products and services.
• To successfully enter and to develop new international markets for your products and services.
• To create culturally-appropriate marketing, sales and advertising programs.
• To negotiate more effectively with members of different cultures.
• To sustain and enhance existing international business relationships.
INTERCULTURAL EFFECTS ON BUSINESS ACTIVITIES
Intercultural differences influence international business activities in many ways. For example, consider the matter of punctuality. In some cultures — the Germans, Swiss, and Austrians, for example — punctuality is considered extremely important. If you have a meeting scheduled for 10:00 and you arrive at 10:07, you are considered “late”. Punctuality is highly valued within these cultures, and to arrive late for a meeting (thus “wasting” the time of those forced to wait for you) is not appreciated.
By contrast, in some southern European nations, and within Latin America, a different somewhat “looser” approach to time may pertain. This does not imply that one group is “wrong” and the other “right”. It simply illustrates that different approaches to the concept of time have evolved for a variety of reasons, over many centuries, within different cultural groups. Culture can (and does) influence the business sector in different parts of the world to produce distinct ways of functioning.
Another example of how cultural differences influence the business sector concerns the presentation of business cards. Within the United States — which has a very “informal” culture — business cards are typically presented in a very casual manner. Cards are often handed out quickly and are just as quickly placed into the recipient’s pocket or wallet for future reference.
In Japan, however — which has a comparatively “formal” culture” — the presentation of a business card is a more carefully-orchestrated event. There, business cards are presented by holding the card up with two hands while the recipient carefully scrutinizes the information it contains. This procedure insures that one’s title is clearly understood: an important factor for the Japanese, where one’s formal position within one’s organizational “hierarchy” is of great significance.
To simply take the card of a Japanese and to immediately place it into one’s card holder could well be viewed (from a Japanese perspective) in a negative light. However, within the U.S., to take several moments to carefully and deliberately scrutinize an American’s business card might also be taken in a negative way, perhaps suggesting that one’s credibility is in doubt. These examples — the sense of time/punctuality and the presentation of business cards — illustrate just two of the many ways in which cultural factors can influence business relationships. They represent only the small tip of a significant and often hidden “iceberg” of intercultural differences which will be encountered with greater frequency as more hospitality-sector business is conducted internationally and with members of other cultural groups.
Contributing further to this situation are advanced communications technologies, particularly the Internet. A marketing presence on the Net now provides “instant” global access to any person, residing on any part of the planet, who happens to have an Internet connection. While the Internet permits one to reach more individuals within new markets worldwide, it also poses some definite challenges: will the members of the different cultural groups appreciate the content of your Web site, or be offended by it? Here is yet another area where access to other cultures all across the planet demands a greater degree of intercultural competence from international marketers.
Many factors are contributing to a more “global” business environment in which more international — and hence intercultural — business activity is occurring. The more that one is aware of the relevant, underlying cultural factors, the better off one will be when functioning within this increasingly international and interconnected global business environment. Better understanding the culture or cultures you are working with allows you to act more effectively within that culture’s unique business and social environments, and may provide you with a distinct competitive advantage.
THE GEOGRAPHY OF INTERCULTURAL COMPETENCE
“Intercultural competence” is more prevalent within certain societies and regions of the world for numerous reasons. In Europe, for example, where intercultural competence is relatively common, it is a natural consequence of the geographic proximity of many different cultures (and nationalities) living rather closely together on a relatively “crowded” continent.
A “cross-fertilization” of cultures and languages is a natural consequence of this geographic reality. Mastery of a second (or third) language is common for many Europeans. The need to learn another language is obviously more of a necessity when the people living just a short distance away possess not only a distinct cultural identity, but speak a different language as well.
On the other side of the globe, geographically-isolated Japan, has done an excellent job of developing intercultural competence within its business community. The development of overseas markets for Japan’s goods and services has been an economic necessity for the Japanese. Coming from a very singular culture, with no real counterparts elsewhere in the world, the Japanese have of necessity developed a keen awareness of, and competence in sales and marketing within different cultures worldwide. Frequently, Japanese businessmen are given lengthy cultural and linguistic training before being sent abroad to conduct business. Awareness of other cultures and foreign language competence have surely contributed to Japan’s many well-known successes within international markets.
By way of contrast, intercultural competence among Americans has often been wanting when compared to the efforts mounted by many competitors from abroad. Geography, history and economics helped to create this situation. Relatively isolated by two immense oceans, possessing a large and generally prosperous internal market, and lacking serious foreign competition, the
development of a higher level of international, intercultural competence was often considered by many Americans to be unnecessary.
Today’s more internationally-oriented business environment has changed this situation, and many Americans are now finding it necessary to become more aware of other cultures out of necessity — or to miss many opportunities. Although a number of U.S. hospitality-sector companies have done very well in this regard through the years, there continues to exist a general, relative lack of intercultural competence — including foreign language skills — among many Americans, including some who work within hospitality, travel and tourism companies and organizations.
A popular joke addresses this phenomenon:
“What do you call a person who speaks three languages?” “Trilingual.”
“What do you call a person who speaks two languages?” “Bilingual.”
“What do you call a person who speaks only one language?” “An American!”
This is mildly humorous, and not completely accurate. However, it does point out a certain reality. In general, European, and to some extent Asian, businesses and organizations often do a better job of dealing with other cultures than their American counterparts.
DEVELOPING INTERCULTURAL COMPETENCE
Intercultural competence can be acquired — and it is not especially difficult to do. What is often more difficult is to develop an appropriate mental frame of reference for dealing with different cultures, worldwide.
This frame of reference should include the basic awareness that, above all, there are many different ways of organizing societies: many different ways of living, speaking, learning, worshipping and conducting business. It is not necessary that one “like” or admire all of these differences. What is necessary, however, is to develop awareness of the cultural differences which do exist between your “home” culture and those which you are doing business with, or would like to do business with.
Developing such an internationally-focused, culturally-aware perspective can have a positive impact on one’s international sales and marketing efforts. Following are several ways in which you can develop — or enhance — your intercultural competence.
Learn The Language
More than just a means of communication, language provides deeper insights into how the members of a particular culture think. If your focus is on several different cultures, it will obviously not be possible to gain high-level proficiency in all of the languages involved. If, however, your business focus is on a single culture you can certainly begin to master its language.
It is true that English has become primary language for conducting business throughout the world. In spite of this fact, native speakers of English should not disregard the many advantages — including a deeper understanding of the culture — which accrue to those who do develop foreign language skills.