The cultural environment

Abstract

Management challenge While the success of global managers often rests on their ability to deal with cultural differences, the experts who advise them on this important topic are not always in agreement. In fact, sometimes they are in strong disagreement. What can managers do? Without understanding how to navigate diverse cultural beliefs, values, and traditions, managers are left to take their chances in this new, high-stakes, and ever-changing environment. The fact that most cultures incorporate multiple subcultures only exacerbates the problem. From a managerial standpoint, turning in one direction can lead to success; turning in the other can lead to failure. As a first step, managers can ask two questions. What is meant by the rather amorphous term “culture”? What is the relationship between culture, contexts, attitudes, and behaviors? Additionally, managers might wish to understand the answers to four further questions concerning the cultural and institutional environment in which they work. What are local beliefs, values, and social norms? What are local customs and traditions? How will local institutions (e.g., laws, government regulations) affect my work? What must I do and what must I avoid doing to be successful here? Managers who understand these issues are typically better prepared to compete and build successful partnerships in today’s sometimes “winner takes all” global business arena. We begin with a model designed to identify and integrate the various demands and constraints placed on managerial action in the global environment.