As globalization continues to happen, and shows no signs of slowing down in the near future, as business leaders we need to understand how to operate effectively in different cultures. In this case specifically in Saudi Arabia, who has been an military ally, and a business partner especially as it relates to oil. We currently have five military bases throughout the country (https://militarybases.com/overseas/saudi-arabia/). And from an oil standpoint Saudi Arabia is the largest producer in OPEC, and account for 7% of the petroleum products the United States imports in a given year (https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php). With not only a strategic partnership in place, but also an economic partner we as a country need to understand how to work through differences, and understand the needs of each other.
Part of doing this is to understand their culture ,and create synergy. This includes precursors which are knowledge of differences, communication, learning, and the ability to change (PSU, 2021 p.1 para 1). Synergy is commonly defined as a cooperative or combined action, and occurs when diverse or disparate individuals or groups collaborate for a common cause (Abramson & Moran, 2018, p.266). In this case the collaboration between the United States and Saudi Arabia as it relates to shared interests.
In my opinion to truly reach a point where we can have a level of cultural synergy, we need to understand the differences we have, and build a bridge too understanding. This idea of cultural synergy is an extension of synergy, but just at a cultural level as opposed to an individual level (PSU, 2021, p. 1, para 1). As a business leader we need to recognize that we are different but also look to use those differences as potential learning points.
Saudi Arabia as a country has existed since only 1932 and was founded by ABD AL-AZIZ bin Abd al-Rahman Al SAUD after a lengthy campaign to unify most of the Arabian Peninsula (CIA, n.d.). Although the country has a long standing Islamic culture which dates back over 1,400 years. The house of Saud has ruled since 1932, with a succession princes from the royal family of over 30,000 (Abramson & Moran, 2018, p.391). The family essentially holds all the important positions of power and is estimated to have a worth in the hundreds of billions of dollars (Abramson & Moran, 2018, p.391).
The country is considered Arabic, and is the birthplace of Islam, founded over 1400 years ago by the Prophet Mohammed . As a country the religion is 100% Muslim, with a demographic breakdown of 90% Arab, and 10% Afro-Asian (Abramson & Moran, 2018, p.390). Islam is intertwined into daily life, as it is not only a religion but also a way of life. Sharia law is a guiding force in how one lives their life, but also how the country itself operates.
This extends to traditional male/female roles and historically has limited opportunities for women in the past. “Islam limits the number of wives a man may have by imposing restrictions on divorce, and ensuring a woman’s rights to property and inheritance from her husband or father. Men may divorce their wives with a simple oath, while women must plead before an all-male, extremist Wahhabist judiciary, and mothers have no right to custody of the children. Husbands may deny wives the right to travel, work, or study at university. Following the impact of the first Gulf War with Iraq, women began a quiet revolution” (Abramson & Moran, 2018, p. 391).
Though with some recent changes, and the country being forced to moved towards the modern world, Saudi women have begun to enter the business world and the professions, especially teaching, along with social and public services. They currently make up more than half of university enrollment, but still number only a fraction of the workforce. Despite social limitations on women, as well as bans on driving, travel, and political activity, Saudi women are slowly forging ahead (Abramson & Moran, 2018, p. 391).
As a country the Unites States has a great deal of differences with Saudi Arabia. Many of the points above are in stark contrast to what we as Americans experience in our daily lives, the religions we practice, and how male/female roles are laid out. With that being said when conducting business in Saudi Arabia, we as leaders need to understand that we can’t simply dictate what we believe to be correct. Culturally we need to understand the differences and work towards fostering relations that respect those differences.
With the discovery of oil, and the thirst for the product worldwide, the Middle East has experienced an influx of foreigners to their lands. As the world continues to move in the direction of globalization, we need to learn about our counterparts, and how we view them, as well as how they view us.
These are some of the common thoughts from Middle Easterners as it relates to people coming from outside their world (Abramson & Moran, 2018, p. 399).
-Many foreigners express superiority and arrogance. They know the answers to everything.
-Many do not want to share the credit for what is accomplished by joint efforts.
-Many are frequently unable or unwilling to respect and adjust to local customs and culture.
-Some fail to innovate to meet the needs of local culture, preferring to seek easy solutions based on the situation in their own homeland.
-Some individuals refuse to work through the normal administrative channels of the country, and do not respect local legal and contractual procedures.
-Some tend to lose their democratic ways when on foreign assignments, becoming instead more autocratic and managing by instilling fear in subordinates.
-Westerners are often too imposing, aggressive, pushy, and rude.
-There is frustration over American and European imbalance in support and aid for Israel, in contrast to the Palestinian cause and human rights.
Most of what I gather from this is the need for clear and concise communication. In my opinion for us to continue to partner with people from countries like Saudi Arabia, we need to foster more communication. This extends to not only how we speak to our counterparts, but also understanding them from a cultural standpoint. We have learned their is always distortion when sending messages from encoder to decoder, but what I also see is potential for breakdowns in the communication process (PSU, 2021, p. 1, para 1). These breakdowns relate to differences in cultural diversity, and only when we understand our differences can we begin to bridge the gap (PSU, 2021, p. 1 para 5).
As leaders what are some of the ways in which you think we can open up more opportunities with a culture that is much different than our own?
Thanks,
Bill Egan
References
Abramson, N. R., Moran, R. T., Moran, S. V., (2018). Managing Cultural Differences. (10th ed.). Oxford: Routledge. New York, NY.
Pennsylvania State University (2021). Lesson 3: Diversity–OLEAD 410. [Online course lesson]. Retrieved from: https://psu.instructure.com/courses/2146712/modules/items/3
Pennsylvania State University (2021). Lesson 6: Cultural Synergy–OLEAD 410. [Online course lesson]. Retrieved from: https://psu.instructure.com/courses/2146712/modules/items/3
Pennsylvania State University (2021). Lesson 7: The Middle East: Focus on Saudi Arabia- OLEAD 410. [Online course lesson]. Retrieved from: https://psu.instructure.com/courses/2146712/modules/items/32847683
https://www.cia.gov/the-world-factbook/countries/saudi-arabia/#people-and-society
https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php
https://militarybases.com/overseas/saudi-arabia/https://militarybases.com/overseas/saudi-arabia/
wje116 says
Hello Tiffany, (I am not sure but hope I have the right person)
Thanks for the reply, and yes I think your perspective is extremely accurate. In general I think that it is easy to write off people because we don’t agree with their views on a surface level. But I think as human beings we can always find some type of common ground, if dig a little bit deeper.
You make great points about taking a step back and being able to learn from another culture. And specifically about beliefs, as it relates to both cultures. When comparing cultures in general, I would like to think most value “always be truthful, learn from your mistakes, and be optimistic”.
When working with or during negotiation, I believe we always have to have an open mind from the outset. If we choose not to, we can easily miss opportunities for growth. It is easy to write a group off, or even be ethnocentric when looking at someone who is different. As you mention taking a step back and learning about them and what they possibly bring to the table fosters goodwill, and shows respect. And as we learned in the readings, in Islamic countries this is a huge facet of their culture. This extra step shows a potential partner that they are valued, and represents a mutual respect!
Great response, and thanks again for the reply!
Bill Egan
tlb5207 says
Hi Bill,
I enjoyed reading you post. You asked the question “As leaders what are some of the ways in which you think we can open up more opportunities with a culture that is much different than our own?” I believe one thing that leaders can do to be more to more opportunities is to take a step back and learn about the other culture. While there are many differences between U.S and Saudi Arabia there are also similarities. For example, Saudi Arabia is influenced by Islam beliefs and some of those beliefs include always be truthful, learn from your mistakes, and be optimistic (Abramson & Moran, 2018). In my opinion many Americans also value those same beliefs but may not believe in the Islam religion. What are your thoughts on my perspective?
References
Abramson, R. N., Moran, T, R. (2018). Managing cultural differences: Global Leadership for the 21st Century. (10th ed.). Routledge. ISBN: 9871138223455
wje116 says
Hello,
Thanks for the reply!
You are correct, and I would agree that the relationship between the two countries is strategic, and can be strained. Though I don’t necessarily think that it needs to stay that way. As a partner Saudi Arabia certainly has fundamental differences in the way they are culturally, as well as some of their allies as you mentioned. But that doesn’t mean that we (USA) has to be locked into a certain mindset when working with them. In my opinion we (USA) think everyone should be like us in the way the country operates, who their allies are, etc..
I think the moment we limit our thinking, we become close-minded and that is not productive for anyone. In your response you mention the Israeli’s and the Palestinian’s, and how essentially we back one, and the Saudi’s the latter. That doesn’t mean that always will be the case. I think if you took a poll from 1990, and a poll now, the results would probably slide more in the Palestinian’s favor.
You make an excellent point about experience on both sides as it relates to people working together. In general I think it is safe to assume the more involved with a group, the more understanding you have with them. It was my point that as a people we need to understand differences at a greater level. I think many Americans are closed off to other cultures, even internally we as a people can be closed off to our fellow Americans experiences.
At the end of the day I think we need to do a better job learning and understanding those differences both on a national level as well as a global level. The world is getting smaller with globalization, and we need to be at the forefront of that change, as opposed to lagging behind.
Thanks again for the reply, and good luck this semester!
Bill Egan
kmb7437 says
The relationship between Saudi Arabia and the United States is strained at best. They are one of a strategic relationship built on a need for each other not a desire to work together. Their placement in the middle east and oil rich country is what drives the United States to be their ally. They depend on the United States for military training and supplies and the United States depends on them for the oil and the use of their soil during tensions in the middle east. It is estimated that in 7 years Saudi Arabia ordered $86 billon of new arms orders and of that $62.2 billon came from the United States (Cordesman 2021).
Saudi Arabia’s ties to the Palestinians and the United States ties to Israel will always be a source of contention and one that will continue to strain our alliance and prevent it from being anything more than a strategic one. People from both countries that have constant dealings with each other and have lived or worked closely in the opposing country have an understanding of the culture and business and do very well. It is the individuals that have limited involvement and not a complete understanding of the cultural differences that struggle with their differences (Cordesman 2021).
Cordesman, A. (2021, October 4). Saudi Arabia and the United States: Common interests and continuing sources of tension. Saudi Arabia and the United States: Common Interests and Continuing Sources of Tension | Center for Strategic and International Studies. Retrieved October 14, 2021, from https://www.csis.org/analysis/saudi-arabia-and-united-states-common-interests-and-continuing-sources-tension.