OLEAD 410: Leadership in a Global Context

Cultural Leadership blog

Africa? Why Bother?

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With over 50 countries within the African continent, is it any wonder that leaders have problems when it comes to dealing with all the diversity? Countries within Africa are diverse in culture, wealth, natural resources and people. According to worldmeters.info, the top four countries (Nigeria, Ethiopia, Egypt, & DR Congo) contain greater than 80,000 people in each country as of 2018. And what is interesting here is that these countries are not in the same geographic region within Africa. Nigeria is in western Africa, Ethiopia in Eastern Africa, Egypt in the North and the Congo in the middle of Africa.
Diversity abounds within Africa. In a comparison between the Gross National Product (GDP) rich countries of Africa to the United States with respect to Hofstedes’ six dimensions of national culture, it is easy to see the diversity. With Nigeria aligning most closely with the United States in Masculinity, Uncertainty Avoidance, and indulgence, it would be easy to think that this is the best suited country for United States business leaders to target. This may not be the best utilization of factors with which to draw this conclusion.

In understanding Hostede’s six dimensions a leader needs to evaluate these against their own country’s dimensions. In doing so, leaders can better understand what impacts the culture may have on their ability to conduct profitable business. Leaders that take the tact of targeting a region or country to exploit the business opportunities and do not account for the culture could be setting themselves up for conflict or even failure.
Back to the comparison, when only looking at the six dimensions, could indulgence alone be enough of a factor to deter a leader from looking at Egypt as a viable business partner? Hostede defines indulgence as “the extent to which people try to control their desires and impulses” (Hofstede, 2018) To illustrate the difference here, the explanation provided about Egypt’s score of 4 is that “People with this orientation have the perception that their actions are restrained by social norms and feel that indulging themselves is somewhat wrong.” (Hofstede, 2018)
The United States scores 68 in indulgence which lends itself to giving into impulses and an inability to control their desires. Given the disparity between Egypt and the United States on indulgence, a United States business leader needs to take this cultural difference into account. The negative impact that this one cultural difference could have on a business relationship could produce failure. This in and of itself though should not be the sole factor that deters a US leader from doing business with Egypt. If a leader can take this difference into account and use it to their advantage, this dimension could prove to be a non-factor. If not, United States business leaders can look to other countries to take the lead and reap profits from African nations.
In choosing indulgence for the illustration, is only to demonstrate the need for leaders to account for cultural differences when determining where to consider doing business. I truly believe that other dimensions here would prove just at valuable examples as indulgence. Power Distance and Individualism are other great examples of the need for United States business leaders to be cognizant of cultural differences and the potential effects on business partnerships with African countries.

References:

Countries in Africa:. (2018). Retrieved November 7, 2018, from http://www.worldometers.info/geography/how-many-countries-in-africa/
Country Comparison. (2018). Retrieved November 7, 2018, from https://www.hofstede-insights.com/country-comparison/
GDP (current US$). (2018). Retrieved November 7, 2018, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?view=map
Korea gives priority areas to fast track Africa’s industrialization. (2018, May 23). Retrieved November 11, 2018, from https://www.von.gov.ng/korea-gives-priority-areas-to-fast-track-africas-industrialization/

Made in CHINA

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Made in China is something that almost every American has seen on some product that has been purchased. From electronics to clothing, products that are manufactured in China and exported to America are a plenty. And there is no sign of this slowing down.

So what is behind China’s power? What is the driving force? According to Moran, Abramson, & Moran, the Chinese people see themseves as the “center of the world”.  And for centuries, “[the Chinese] expected that all other peoples and nations would pay tribute to the Chinese and their unique culture.” (Moran, Abramson, & Moran, 2014) It would seem that China from the very beginning is destined to be a powerful nation.

These attributes provide the Chinese with a sense of nationalism. It would seem that having nationalistic tendencies would also give rise to a collectivism attitude. And that is reflected in the Individualism ranking compared to the rest of the world. China scores a 20 with the rest of the world averaging 45.17. This “indicates a more collectivistic culture.” (PSU OLEAD410, 2018)

There are, of course the other aspects of Hofstede’s six dimensions of culture that are worth mentioning to round out that picture. Below is a summary to provide an overview (PSU OLEAD410, 2018) and a comparison to the United States Scores (Hofstede’s Insights, 2018):

Dimension World Score Average China Score US Score
Power Distance 59.31 80 40
Uncertainty Avoidance 67.64 30 46
Masculinity 49.53 66 62
Long Term Orientation 45.48 87 26
Indulgence Versus Restraint 45.42 24 68
Individualism 45.17 20 91

 

With this information and the history regarding the Chinese, it is easy to see that when conducting business with China, United States leaders need to be aware of these cultural differences. Without the understanding US businesses cannot make inroads and penetrate the Chinese markets. An understanding of the history and the influences that govern how the Chinese think and act are paramount to successful business partnerships.

Another critical understanding is that the Chinese business students are taught current United States strategic planning.  This provides them with the understanding of how US business is generally conducted. The Chinese however, do not stop here. “Chinese students… are also taught ancient Chinese military strategic thinking that has been adapted to business situations.” (Moran, Abramson, & Moran, 2018)  Is it any wonder that China has become a world power so rapidly? Perhaps it is time for US business schools to broaden their curriculums to more that the Western strategies and equip our new leaders with more information to enable them to be successful.

If leaders in the United States want to create partnerships with China they will need to understand where their counterparts are coming from and where they want to go instead on think where we want to go. With their being such cultural differences between the US and China, it is paramount to success that both sides understand the other.

 

References:

Canvas learning management system. (2018). Retrieved October 29, 2018, from https://psu.instructure.com/courses/1942644/modules/items/24935431

Country Comparison. (2018). Retrieved October 28, 2018, from https://www.hofstede-insights.com/country-comparison/the-usa/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. London: Routledge.

Pofeldt, E. (2015, September 21). Why US manufacturers are taking jobs to China. Retrieved October 28, 2018, from https://www.cnbc.com/2015/09/21/why-us-manufacturers-are-nixing-the-us-for-china.html

World’s Richest Countries. (2018). Retrieved October 28, 2018, from http://www.worldsrichestcountries.com/top_us_imports.html

Why should America do business with Middle Eastern Countries given the cultural differences?

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It is very easy to see the cultural differences between American and Middle Eastern business practices. With American business leaders focused on the capitalistic perspective with too much ethnocentrism, Middle Eastern leaders are focused on “…business is done between people, not merely with a company or contract.” (Moran, Abramson, & Moran, 2014) These divergent positions set up these two sides to clash. This isn’t stated in this manner to say that American business strategies are wrong or poor, but rather to describe the differences that could make successful business between these two sides challenging.

But the differences and stereotypes are not one-sided, they are ingrained on both sides. Many Americans “carry distorted cultural images… about people from the Middle East and their contributions to human development.” (Moran, Abramson, & Moran, 2014) And Middle Eastern countries such as Egypt, Turkey Saudi Arabia, and Persia take part in “’…anti-American’ campaigns” in an effort to “undermine both political and business relationships.” (Moran, Abramson, & Moran, 2014) Is it any wonder that business for Americans in the Middle East can be a challenge?

The major difference between these cultures is the underlying motivation for doing business. Middle Eastern people have a strong connection to their religious beliefs and this is apparent in the way they conduct themselves. They also have an ethnocentric perspective in wanting their business partners to align with their value system. Americans in contrast have a strong motivation to make money and are for the most part disconnected from their religious beliefs in conducting business.

To overcome the differences and be a successful leader, anyone seeking to do business with another culture needs to first understand that culture, their perspectives and motivations. Davis states four tips to be successful in the Middle East, they are face to face communication, understand the culture, get results fast, and consider getting a local partner. (Davis, 2018)

Successful business can be conducted between seemingly opposing cultures if the leaders of each take time to learn about the other. Synergy between different cultures can be achieved through education and appreciation.
I believe that a fundamental shift in thinking is required at all levels of leadership to be successful in business between cultures. Moran, Abramson, and Moran state it succinctly when they say “…cultural skills are necessary to help peoples comprehend what is actually meant when they communicate with or about one another.” (Moran, Abramson, & Moran, 2014)

Finally, it would be in any business’s best interest to conduct business in the Middle East as these countries have strong and growing economies. Specifically, Saudi Arabia in 2012 had a Gross National Product of $740 Billion mostly from the production of oil and petroleum products. Additionally, importing of various goods is also lucrative business to be a part of totaling $136.8 Billion. Taking time to create good working relationships and high-synergy teams could translate to a very profitable endeavor.

References:

Davis, R. (2018, February 14). Four Tips For Successful Business In The Middle East And Asia. Retrieved October 7, 2018, from https://www.forbes.com/sites/forbesagencycouncil/2018/02/14/four-tips-for-successful-business-in-the-middle-east-and-asia/#2b5ddeab2b6e

Mitt Romney Quote. (n.d.). Retrieved October 7, 2018, from https://www.azquotes.com/quote/1563168

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). New York, NY: Routledge.

 

Friendly Canada? By: Terry Schlitzer

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As I sit on the porch of the rented cottage, I’m trying to decide what experience I should use for this blog. And it hits me… you’re in Canada, use that!

Yes, I am on vacation in the province of Ontario, on my two-week vacation. During this week I have read Chapter 1 of Moran, Abramson, & Moran’s Managing Cultural Differences and I couldn’t help but think, so how different is Canadian Culture to mine in the United States? Chapter one describes culture as something that “…gives people a sense of who they are, of belonging, of how they should behave, and of what they should be doing.” (Moran, Abramson, & Moran, 2014, p. 11)

I can honestly say the I truly believe that Canadians represent the cliché’s that Americans and other countries around the world have made of them, that Canada is the nicest nation. Everyone that I have encountered has been friendly, kind and courteous. (And this doesn’t only include people that I am paying like clerks, wait-staff, or house-keeping) This aligns well with the stereotype that Canadians are friendly.

So, I thought to myself, is there more to this? Are Canadians really as friendly due to their culture? It seems that this is partly true. According to Catherine McIntyre, only two-thirds of the country think that they deserve their reputation for being nice. Her article provides a brief history of the make-up of Canada, in that the country has been colonized by the French and then later by the British. This seems to have provided the inhabitants of Canada with the history to be more collective rather than individualistic. Americans, in comparison are individualistic as a country and I feel that stereotype is accurate. But there are certainly exceptions to that stereotype.

McIntyre also presents that the nice reputation may only be due to actions and language instead of something more substantial. She states that Canadians use more positive language while Americans use more negative language on social media. “While Canadians commonly used words like “favourite”, “gorgeous”, “great”, and “amazing”, Americans favoured more negative words like “damn”, “hate”, “bored” and “annoying.” (McIntyre, 2017) This in and of itself for me, neither confirms or debunks the stereotype but does provide evidence to support the notion of Canadian niceness.

For me, this post is about recognizing that there are cultural differences that I may not have been aware of prior to lesson 1. And I think that being in a different country, even one so similar to the U.S. as Canada is, provides me the opportunity to see differences in culture first hand and put into practice what I have learned. I cannot provide a full first-hand account to the culture in Canada and how it differs to the U.S., but I can provide my experience.

What I have experienced first-hand in Canada is that the culture here is welcoming, inviting, friendly, and accommodating. I have not seen evidence of ethnocentrism in the week that I have been here. Everything that I have experienced is supports the saying that Canadians are the friendliest nation, as determined through their cultural way of life.

References:

McIntyre, C. (2017, June 28). Do Canadians deserve their reputation for being nice? Retrieved September 2, 2018, from https://www.macleans.ca/culture/do-canadians-deserve-their-reputation-for-being-nice/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). New York, NY: Routledge.

Introduction: Terry Schlitzer

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  • Where are you located geographically?   I am located in a small town in south central Pennsylvania called Hanover.

 

  • Where are you in your life professionally? I consider myself a seasoned professional with 26 years of experience in new product development at a Molecular Diagnostics Company. I’ve held positions in Quality Control, Analytical Chemistry, and Research and Development. My current position is in Quality Engineering.

 

  • What are your long-term goals? Long term goals are to utilize my PSU education to further my career.

 

  • What is your current or prior leadership experience? I have 15 years of experience in working on project development teams. I have led several teams with this time frame.

 

  • Do you have a favorite leadership quote? If so, provide a brief comment about why this quote has special meaning for you. I didn’t really have a specific quote, but one that I ran across speaks to me. “No man will make a great leader who wants to do it all himself or get all the credit for doing it” (Andrew Carnegie) I think that this is absolutely true. It takes team work to achieve the goals of any business.
  • Optional: Post something interesting about yourself:
    • I am heavily interested in road cycling. I ride as much as I can, as I find it relaxing and a great way to de-stress after a taxing day. I ride approx. 150 miles a week.
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