The international business, instead of detracting from our business, is now additive to our business. Culture is the way we do things around here, they say. Here may be a country, an area, or a company. We tend to assume that the way we see the world and the way we do things is the best. However, doing business across cultures requires a more flexible approach. Cultural gaps have decreased with globalization, but they have not disappeared. Recent literature suggests that cultural awareness is absolutely essential for doing business with people from different cultural backgrounds. What is considered acceptable behaviour in Croatia doesn’t have to be so desirable in China.
Western cultures are in general time-conscious, deadline-oriented, and focused on results. On the other hand, Latin and Eastern cultures are more interested in getting to know the people involved in the transaction, and business is built on trust over a long period of time. The best way to build a business relationship in a Latin American country, China, Japan or even Spain and Italy, is through networking. Get yourself introduced by a trusted relation of your new client and expect many lunches and dinners before the deal is made.
An increasing number of our companies are doing business with China so here are some insights into how the Chinese typically behave. In Asian cultures, the means are just as important as the ends; how you do something is almost as important as what you do because how you do things determines whether or not interpersonal harmony is achieved. Chinese relationships are nurtured slowly because of the many demands placed on mutual loyalty, exchange of favours and maintaining face. Favours must be returned. It must be noted that contracts in China are not a guarantee of anything. It is the relationship built in the negotiating of the contract that you build the future on. You also should not forget that credit and reward for performance belong to the group, not the individual.
