Integrating Culture and Management in Global Organizations
INSIDE 3
American English: This International Business Language Prevails
6 Book Reviews Review: 7 Product CultureGrams
Global Positioning: Negotiating in the Post-Global World by Dean Foster Just a few years ago, it seemed as if professionals in the cross-cultural advisement field were raising their glasses in celebration. After years of spreading the gospel, the word was out and accepted: working, studying or just plain traveling beyond one’s borders required an expectation for and an understanding of behaviors that would be different from those encountered at home. In short, culture mattered. And in just about every area of human activity, if it crossed cultures, it seemed that cultural differences had to be factored into the equation as a new and vital consideration for success. This, of course, included the process of negotiating: no longer could we seek objective truths about good and bad negotiating in a cultural vacuum, for once we negotiated across cultures, cultural differences would certainly affect those truths.
Recognizingthe different ways that cultures negotiated became an important global skill. In just a few short years, however, globalization has so challenged the relevance of culture that its role is again being questioned, albeit for new and different reasons. If we are all speaking English, more or less, does culture matter? If we are all doing business by a global set of rules, more or less, does culture matter? If global corporate culture is in fact more powerful than local national culture, does culture matter? Predictably, the old questions regarding cross-cultural negotiations have also re-surfaced. Do cultural differences really matter when regotiating in a world already so globally interconnected? Do cultural differences really affect the processes of negotiations? Has Continued on page 4
IMI 10 Announcing Summer Skills Institutes
Volume 4, Number 1
Spring 2 0 0 3 E di tion A quarterly publication produced by the Intercultural Management Quarterly and the Intercultural Management Institute, School of International Service at American University
Negotiating Nuances in Emerging Global Markets: Lessons From the Middle East by Jean AbiNader Standardized mechanisms for business transactions (e.g., financial documents, customs, procedures, harmonized standards, and similar instruments) have not eliminated cultural differences that can impact business decisions and relationships. Problems continue to be encountered where there are differing assumptions about legal terms and issues that lead to competing or conflicting interpretations of the deal. The widespread use of English is only one key in facilitating business agreements. Companies doing business across cultural borders should avoid making assumptions based on a shared language. It in fact may sharpen differences that exist, thus jeopardizing the results.
It is strategically important to determine if it is possible to build effective global business communications strategies and company policies that do not have to continually adapt to local circumstances. The short answer is-yes, it is possible; and no, it’s a recipe for failure. Some recent experiencs in the Middle East region, from North Africa to the Gulf, illustrate the problem. There has been a significant increase in the region in the use of standardized practices reflecting increase participation in the global economy. English-speaking locals can be found from Yemen and Qatar to Algeria and Morocco Continued on page 8