Intercultural issues for Asian entrepreneurs

Abstract

Globalization has made the world into a global village where geographical boundaries have become irrelevant for trade relationships. However, each country wants to and has retained its cultural values both in business and social interactions. Today’s entrepreneurs and business managers fortunately or unfortunately do not have the luxury of doing business only with their own kind. Their horizons have widened to encompass people from various cultures. Understanding international socio-cultural issues is imperative for today’s entrepreneur. While there is plethora of literature available that talk about how to do business with the West, not much is written about how to do business with other Asian countries. Some subtle and some not so subtle cultural differences exist in various Asian countries. They need to be understood and addressed while expanding business beyond the country’s boundaries. This is especially true for countries like Malaysia where diversity already exists in the form of presence of Chinese and Indians. Yet Malaysians may be surprised by the differences they will encounter while doing business with India or China. Malaysia and other Asian countries are increasingly engaging in business relations within their region. This paper intends to address inter cultural issues, and to create awareness and sensitivities of these issues which can be very critical, as young entrepreneurs and business managers participate in international trade. The paper discusses the problems of team building and group activities when two negotiating parties are separated by diverse cultures and how one’s own culture and language affect the ways in which people organize their world, think, feel, and respond. The paper also attempts to recommend and suggest tools to battle cultural insensitivity and to help international managers make their influence felt in inter the cultural divide.