How Cultural Differences Impact International Businesses

Cultural differences tend to be considered only in terms of consumer bases and target audiences, but less so when it comes to international teams operating within a company. However, what may be an acceptable business practice in one country, may be very different from the approach that is used by international businesses.

When it comes to business, cultural differences refer to what behaviour is common and accepted professionally in one location compared to another. Therefore, recognising how culture can affect international business is something that you should consider. This will help avoid misunderstandings and make sure that your business is presenting itself to its new market in the best way they can. Cultural sensitivity is essential, but how exactly do cultural differences affect international business? And how should you handle them to prevent them from negatively affecting yours?

Cultural Differences in Communication

Communication affects every single aspect of your international business. And doing it effectively can be the difference between a successful or a failing endeavour. International businesses need to pay close attention to effective communication to avoid cultural differences affecting their messages in unexpected ways. But cultural differences in communication can affect more than just your marketing strategy. It can also affect the way you communicate with potential vendors or overseas team members (ex., when conducting a meeting).

Managing Differences Right to Deliver Messages Effectively

Speaking the same language as your target audience is the obvious first step. But getting your message across encompasses more than just that. Translation and localisation are not the same, and only the latter truly addresses the cultural nuances involved in communicating across cultural differences. 

Addressing these cultural differences in communication will affect the way your brand delivers its messages to potential customers. It will also affect the way your team conducts business within the company. For example, it is common in countries like the US or Germany for people to speak loudly and be more assertive when sharing ideas amongst colleagues. But in countries like Japan, people typically speak more softly and have a more passive tone when making suggestions to colleagues. Another thing to consider is the basic customs, mannerisms, and gestures that are typical of that culture. Behaviour that might be common in one culture could be unusual or potentially offensive to a client or colleague overseas. 

International businesses need to understand the cultural differences in communication. This will allow them to truly grasp how to overcome language barriers and use the right tone and body language. This can be a challenge, but having the right mindset of sensitivity, openness, and curiosity can help businesses succeed.

#OptimationalTip: Some tips for addressing cultural differences are: Being patient and encouraging an open-mind work environment. In addition, you should research and learn about other cultures in order to make informed and empathetic choices.

Remember to Consider Cultural Differences in International Business

Our culture permeates everything we do and say, whether we want to or not. Even when accounting for cultural differences in communication, it impacts things that could seem unrelated, but truly are not.

For example, Scandinavian countries such as Sweden emphasize social equality and therefore tend to have a relatively flat organisational hierarchy. Their informal approach to communication and cooperation affects their attitude towards business. Not in terms of the seriousness of the organisation, but concerning how they conduct themselves through everyday life. Meanwhile, countries such as Japan stem from a long-valued tradition that places high importance on respect for seniority. In turn, this is reflected in their businesses, which are usually developed around a very clear organisational structure. Junior members of their team are expected to have a level of formality that could seem out of place for someone raised in a different culture, and in the same way, senior management commands a lot of respect.

These kinds of attitudes can play a big role when dealing with team members overseas. And even more so with third-party vendors, where the overall structure of your company does not facilitate the bridging of cultural differences. For international businesses to succeed, companies need to understand the culture they are delving into. This way, they can take cultural differences into account and make sure the right message is getting across.

#OptimationalTip: For international business, it is crucial to be aware of differences in titles, chain of command structures, negotiation styles, and general rules of etiquette. Equally important is to analyse the importance of prudence (or risk-taking) behaviour, control of emotionality, and how group dynamics play out.

How to Adapt Communication for Cultural Differences

There is much to consider when deciding to take your company global, but getting the small details right can make all the difference in whether a company succeeds on an international scale. Properly addressing the cultural differences in communication can be what makes or breaks an international deal. So doing businesses research and being open to new cultural experiences and expectations is a must.

If you are looking to grow your company on an international scale, you are not alone. Our team can help you boost your international communication—be it with new markets, new vendors, or simply new team members. Contact us to tell us about your business goals and discover how we can help you grow.