ARE BUSINESS & COMMERCE CULTURALLY NEUTRAL ZONES?

Are Business And Commerce Culturally Neutral Zones In Which International Professionals Interact According To Internationally Recognized Norms?



Table of Content

Introduction3

Objective of the Study4

Significance of the Study4

Chapter-II: Literature Review5

Study Context6

Chinese Family Enterprise9

Malay Family Enterprise9

Chinese Family Company9

Malay Family Company10

Chinese Company (Public)10

Government Company10

Malay/Government Company (Public)11

Multinational Company11

Chinese-Malay Joint Venture Company11

Chapter-III: Research Methodology12

Exploratory Study and Questionnaire Development12

Sampling Frame and Questionnaire Administration12

Chapter-IV: Findings and Analysis13

Data Reduction and Data Analysis13

Discussions13

Japanese Business Culture16

Chapter-V: Conclusions19

References22

Chapter-I: Introduction

Introduction

First of all I will clarify that business and commerce are not culturally neutral zones in which international professionals interact according to internationally recognized norms. It is the well-known truth that business practices vary according to the cultural norms and values and both impact each other. We know that in the United States two men may be sitting in front of the other. If one crosses his legs, nothing is thought of it by the other. Whereas, in Japan one of the men may take offence especially if the tip of the shoe points towards him.

In the same way, in an organisational setting, the culture (work values, beliefs and orientations) of the business entity would tend to be the culture of the group that controls the organisation, for example the founders, leaders and senior managers of the business entity. Based on this proposition, a wholly owned Japanese company operating outside of Japan, for example, would showcase work values, beliefs and orientations of its Japanese parent company because the company is controlled and directed by leaders and managers from or in Japan. The thesis in this paper is diametrically opposite to the conclusions of seminal studies such as that by Hofstede and Trompenaars. Hofstede, for example, contends that the work values, beliefs and orientations of the subsidiaries of the multinational company IBM are different in different countries because of the influence of the national culture of its employees in different countries. Thus, a central underpinning of this paper is opposed to what are considered to be among the most authoritative studies on national and organisational culture.

The underlying thesis in several seminal studies on national and organisational culture is that there are nationality influenced differences in work values, beliefs and orientations of organisations across different countries (Hofstede, 1991, 2001; Inglehart et al., 1998; Trompenaars, 1994; Black and Mendenhall, 1989). Discourses regarding the culture of business entities and how culture influences the behaviour of business entities can often be a complex and contentious. To start with, there are obvious inconsistencies and even contradictions regarding what constitutes a business entity's culture (Menon, 2004). According to Kroeber and Kluckhohn (1952) an entity's culture is the predominant values and behaviours of its members and such values and behaviours are acquired through a common history and experience. Munter (1993) defines culture as the dominant and continuing values, attitudes and behaviours of a group. Schein (1997) canvasses that a group that has shared important experiences would adopt shared views of the world around it and its place in the ...