Examples of Cultural Differences in Business

As your business grows, you may develop a diverse group of employees and customers. While diversity often enriches the workplace, cultural differences in business can bring complications as well. Various cultural differences can interfere with productivity or cause conflict among employees. Stereotypes and ignorance about different traditions and mannerisms can lead to disruptions and the inability of some employees to work effectively as a team or to handle business dealings with potential customers in other countries.

●Personal Space Expectations
Cultural differences in business include varying expectations about personal space and physical contact. Many Europeans and South Americans customarily kiss a business associate on both cheeks in greeting instead of shaking hands. While Americans are most comfortable at arms-length from business associates, other cultures have no problem standing shoulder-to-shoulder with their peers or placing themselves 12 or fewer inches away from the person to whom they are speaking.
It’s not unusual for female colleagues in Russia to walk arm in arm, for example, while the same behavior in other cultures may signify a more personal or sexual relationship.

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●High and Low Context
Different cultures communicate through various levels of context. Low-context cultures such as Canada, the United States, Australia, New Zealand and most of Europe, require little or no explanation of orders and requests, preferring to make decisions quickly. High-context cultures, which include most other Eastern and South American populations, require and expect much more explanation about orders and directions. Businesses that operate with a low-context form of communication spell out the specifics in the message, while those from a high-context communication culture expect and supply more background with their messages.

●Differing Meanings of Cues
Western and Eastern cues have substantially different meanings in business. The word ”yes,” for example, usually means agreement in Western cultures. In Eastern and high-context cultures however, the word ”yes,” often means that the party understands the message, not necessarily that he agrees with it. A handshake in some cultures is as ironclad as an American contract. A period of silence during negotiations with an Eastern business associate may signify displeasure with your proposal. While frank openness may be desirable in Western cultures, Eastern cultures often place more value on saving face and avoiding disrespectful responses.

●The Importance of Relationships
While Western cultures proclaim to value relationship-based marketing and business practices, in high-context cultures a relationship involves longtime family ties or direct referrals from close friends. Judgments made in business often are made based on familial ties, class and status in relationship-oriented cultures, while rule-oriented cultures believe that everyone in business deserves an equal opportunity to make their case. Judgments are made on universal qualities of fairness, honesty and getting the best deal, rather than on formal introductions and background checks.

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●Cultivate Cultural Understanding
Understanding cultural diversity in business is important to interacting with people from differing cultures while preventing problematic issues. If you know you’ll be negotiating with foreign businesspersons, for example, study in advance how their manner of doing business differs from your own. You’ll find that many Eastern cultures, like and expect to have lengthy informative sessions before negotiations begin.
Don’t be surprised if colleagues and customers in the UK and Indonesia are more reserved with their responses and hide their emotions. Those in France and Italy, like the US, are more effusive and aren’t afraid to show their emotion.
Make sure, too, that your staff understands that cultural differences matter in business and can easily be misunderstood by either party. Above all, when you encounter unexpected behavior, try not to jump to conclusions. Someone who seems unimpressed with your ideas may actually be from a culture where emotions aren’t readily expressed. Potential cultural barriers in business can be avoided simply by understanding the impact of culture on business environment.


Post time: Jun-27-2022