Introduction
This paper seeks to analyze a video case study from a film clip that shows a scene in which an expatriate developer from the United States is trying to get approval from Arab officials to establish a hospital. The developer comes with an American cultural mindset, where decision-making concerning changes is influenced by linear thinking and time schedules. On the other hand, the Arab official’s decision-making is influenced by different values. Therefore, change leaders must operate within the social and cultural rules in a specific context to develop effective communication and adapt to the local community’s culture.
Developing Effective Communication
The importance for change leaders to understand the social and cultural values when conducting business abroad cannot be underemphasized. Leaders of American organizations establishing businesses in foreign countries must have the knowledge and expertise to develop an organizational culture to promote a competitive advantage and foster change. The culture plays a vital role in an organization’s success, especially when conducting business overseas. According to Society for Human Resource Management (2018), “organizational leaders and Human Resource (HR) professionals should understand the national cultural values in the countries in which the organization operates to ensure that management and HR practices are appropriate and will be effective in operations in those countries” (p. 5). If the American developer could understand the reason Arab officials did not give their approval, they could reason with each other and come to an agreement.
The goal of an organizational leader when merging with a foreign business is to be fully engaged and have the means to foster change on a global scale. Cultural differences need to be considered when implementing an organizational culture in a foreign country. Top Leaders and HR representatives within organizations must be able to respond to various communication styles encountered by foreign counterparts effectively. Open communication lines are critical in initiating organizational changes and developing lasting relationships with foreign business leaders. However, positive communication cannot be established between representatives of two different cultures if they do not understand and value the social and cultural rules of each other and the differences between them, like the American developer and Arab officials in the case under discussion.
Adapting to the Local Community’s Culture
Organizations consider numerous factors when expanding their business to a foreign country. Two of the main reasons for global expansion are increasing customers and gaining market exposure. An organizational leader needs to fully understand the country’s social and cultural values when merging and conducting business. According to Abner (2015), “the cultural differences can determine whether the business is successful or not” (p. 1). Leaders need to research and analyze the values of the local communities. Leaders must know what products and services are needed by the consumers of foreign countries. Additionally, an important cultural factor to consider when conducting business overseas is the language differences encountered and how leaders plan to overcome those barriers. Having prior knowledge of cultural differences will save time when pursuing business abroad.
Every country worldwide has its own specific social and cultural norms, especially when conducting business. American organizational leaders must be able to adapt to other countries’ cultural norms. Numerous American organizations are venturing to European nations to establish businesses. Thus, they need to be aware of specific cultural and social norms. For instance, Uzialko (2018) reports that “in Italy, business is often personal, and relationship-driven, so expect to spend a significant amount of time getting to know your Italian business partners and developing a relationship with them” (p. 5). Many American organizational leaders are driven to make deals quickly, but some countries prefer developing relationships before conducting business. Thereby, the American developer in the case could have had more chances of gaining officials’ approval if the developer had been more sensitive to the local traditions.
Conclusion
Overall, developing effective communication and adapting to the local community’s culture are the primary reasons organizational leaders must consider the social and cultural rules in specific contexts. The video case demonstrates that the American developer and the Arab officials cannot agree since different values influence their decision-making. For an organization to be successful in the global market, leaders must conduct extensive research and fully understand the cultural and social values of the foreign country. If organization leaders do so, their companies have higher chances of establishing positive business relationships with foreign partners. However, if they fail to meet their partners’ expectations concerning other countries’ cultural and social norms, any chance of establishing a business overseas may be diminished.
References
Abner, B. (2015). 4 considerations before taking your business international. The Business Journals. Web.
Society for Human Resource Management. (2018). Understanding and developing organizational culture. Web.
Uzialko, A., C. (2022). 17 International business customs that could make or break a deal. Business News Daily. Web.