Why Cultural Skills Are Key In International Business?
Which is more important in business: language or culture?
Last autumn, I gave a keynote speech to Finnish companies on the cultural differences between Finland and Russia. I discussed the differences using the Hofstede model of cultural dimensions and illustrated the theory with real-life implications. Those of you who know the model know that it goes deep into cultural values. The cultural value comparison helps in understanding what people in different cultures consider good and normal, and how they think and act in average.
At the same event, a Russian company operating in Finland talked about their practical initial difficulties in the country. The speaker said that their number one problem in Finland is lack of language skills. However, he then continued to highlight some of the major differences in the ways of operating and doing business between the two countries (which are related to cultures).
In the Q&A session after the presentations, I was asked by a member of the audience: “Do you not think that lack of language skills is a problem as you did not talk about it?” This question kind of implied that I don’t recognize language problems in international business. In fact, having a Master’s degree in translation studies, I would never underestimate the language problems in international business. But the question was again a good reminder that even if the importance of the cultural impact on business is obvious to me, some people still do not associate culture with business.
I realized that I should have said in my speech that language skills are not enough to gain success in international encounters and I am actually here to argue that cultural skills affect your success in business more than your language skills. I know that most people still seem to think that if you can speak the same language (English quite often), it is enough to make you understood by your counterparts in different parts of the world. But it is often the case that language is simply not enough.
Effective communication without cultural knowledge is impossible
By studying the language, but not the deeper cultural values and way of thinking, you can make a lot of behavioural mistakes and misinterpret the messages you hear. When the main idea of good communication is to convey the meaning from sender to recipient as it was meant, it can be mission impossible without cultural understanding.
This is especially true in high-context communication cultures, where a simple “yes” or “no” can mean a lot of different things depending on the situation. In high-context communication cultures, what is not said can be far more important than what is said. And, your ability to read between the lines of what is said is just as crucial. This is the case in Russia. A few business communication examples below:
- You have approached a company and sent them an offer. You get the answer:
“We will think about your offer, it looks really interesting.”
In fact this probably means the opposite in 90 % of the cases; it is a polite way to say ‘no’. Perhaps in 10 % of cases, it might be true. It depends on the context. It can also mean that they say ‘no’ now, but like to leave the door slightly open for the future. However, usually, if the counterpart were really interested in your offer, they would propose concrete steps to proceed in the negotiation.
2. You have approached a company and you would like them to become your dealer. Next you get a letter with the instructions, how to proceed:
“To become our supplier, please fill in your company and product information and forms on the website.”
BUT, again, if the distributor/retail chain were really interested in your offer, they would not put you through all the bureaucracy via internet forms, but would handle your case personally.
3. You have sent a quotation to a company and get a reply:
“Our stock of similar products is full for the next six months. Please call again after six months.”
I guess you already understood that you can expect to get the same answer when you contact them six months later. It is again a polite ‘no’.
When I started my career in Russian sales and customer management I soon realized that my Russian language skills combined with business skills from MBA studies and my earlier work experience in Finland were not enough. In fact, I soon realized that in any international environment, business skills can’t be clearly separated from cultural skills. Business people in different countries do the same things: sales, marketing, management, leadership, negotiations, etc., but how they do it depends on their cultural background.
Problems of the second generation immigrants
This language vs. culture question reminded me of an interesting phenomenon which proves the above assertion. I used to train and mentor second-generation Russians in Finland for Russian sales and marketing activities as interns in Finnish companies. The assumption is that it would be easy for them to do business in Russia because they know the Russian language to perfection. This was not the case.
As I worked with them, I noticed examples which implied that they are not as culturally competent in Russia as they are in Finland. Despite speaking Russian fluently, being brought up in Finland meant that they tended to make the same mistakes as native Finns in business negotiations with Russians. For example, breaking the following unwritten rules:
- Bypassing the needed Russian hierarchy
- Being too task and fact oriented in their business communications
- Not providing enough details or expert proof in their communications
However, as they were so fluent in Russian, their Russian counterparts fled to understand that them breaking the “unwritten” behavioural rules was a due to a lack of cultural competence and awareness, not just a case of individual bad behaviour.
For Russians, it would be easier to forgive cultural mistakes from someone who is clearly not Russian because the expectations for “foreigners” to behave in the “right way” are not so high. Despite the linguistic fluency of the second-generation Russians, the implication is that language skills without cultural knowledge are not enough.
My mission is to make people more aware of culture
Naturally, excellent language, cultural and business skills are the best combination for success in international business. Knowing several languages makes it easier for you to communicate and there is evidence showing that language shapes our thought, ie. knowing foreign languages makes you more flexible in your thinking. However, it is physically impossible to study all the languages in the world or learn a new language quickly to an advanced level.
Added to which, language and technical business skills are often over-emphasized at the expense of cultural skills as the key ingredients to international business success. This is the reason why it is my mission to make people more aware of culture as one of the key success factors in international business, and help people from diverse backgrounds to understand each other better, regardless of the language they use.
Know your own cultural values first, then compare them to others
Being culturally competent helps you first of all to analyse the average values and behaviour in your own culture (which is not always so easy). It also helps to understand the way of thinking in other cultures. In negotiations, it helps you to find convincing arguments and express them in a culturally appropriate way (via an interpreter, as well), thus deepening the trust and cooperation with your counterpart. It also increases your ability to interpret complex messages or understand the meaning of what has not been said. Last but not least, it is easier for you to keep your cool when things don’t go as you would expect in your own country.
Anyone can learn the basics of the Hofstede 6D Model of cultural dimensions in a reasonable time. And if you need help interpreting the model, you can always reach out to me.
Have you given cultural awareness and skills the attention they deserve in your international business skills set?
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Pia Kähärä
