It has been suggested in the organizational and business literature that cultural differences, including language, create barriers to organizational effectiveness. Examples of this can be found in one of the larger German-American manufacturing organizations created by a merger and then dissolved. But what are the specifics of the barriers attributed to culture and language that contribute to organizational outcomes, be it smooth transitioning or total breakdown? And can these factors really be separated from individual constructs such as personality? It is interesting and useful to consider which individual and cultural factors have the most significant impact on intercultural organizational success or failure, considering the number of foreign companies operating in America, American companies operating in other countries, and the merging/acquiring activities of both.

Culture has been measured at the individual and country levels using four of the five cultural dimensions identified by Geert Hofstede (see http://www.geert-hofstede.com /). These are power distance (how close or familiar or comfortable are individuals between the levels of a given hierarchy?); individualism versus collectivism (i.e., capitalist cultures tend to value individualism, while socialist cultures tend toward collectivism.); masculinity (does one culture tend more toward sexism or more toward equality of the sexes?); and uncertainty avoidance (individuals in certain cultures tend to be extremely wary of venturing into unknown territory, literally and figuratively. Americans tend to be less fearful of uncertain situations, and individuals in older, more controlled cultures tend to be more fearful.)

Personality, of course could be measured at the individual level with an established personality assessment tool, e.g., the five-factor model (neuroticism, extroversion, openness, agreeableness, and conscientiousness; Costa & McCrae, 1991).

Further, a seven-factor personal change model can help describe how individuals deal with changes in their environments, either due to working in a foreign organization or country, or working at home, side by side with people of other nationalities. This model has identified that individuals go through transition in stages, and progression through these stages varies by individual and culture. Some researchers have likened transitional stages in organizations (as might take place when individuals of two or

• 1
• 2
• next page >>

---

Add your voice

Know something about Culture and barriers it creates in international business?
We want to hear your view. Write now!