Cross-Cultural Management Issues Faced By Businesses In International Markets

Background

Question- Write a Research Proposal on Managing cross cultural environment by businesses in international markets?The research proposal must include a background which describes the basic situation underlying your project?

 Background: Businesses perform the expansion of their business activities at regular basis with a view to achieve higher level of growth in their operations. Such international expansion of business processes has been highly popularised because of closer integration of the world economy, and also because of rapid pace with which globalisation is pursued by businesses. There have been higher growth opportunities available in the international markets that drive businesses in expanding into such markets. However, the major business issue to them is mainly from the cross cultural environment conditions faced by them in the international markets which create difficulties to them in managing their processes successfully. The successful management of business activities require appropriate strategy and approach with respect to different important aspects related to it. As in respect to businesses in international markets, they are required to make adequate level of considerations for the cross cultural environment conditions as prevalent within it (Ajami and Goddard, 2006).

A study as carried out by Johnson, Lenartoeicz and Apud (2006), it has been assessed that one of the major reasons leading to the failure of businesses in international markets is mainly the lower overall ability of businesses to achieve higher level of competence with regard to the cultural factors. Cross cultural competence is essential to businesses in efficiently performing their operations in markets that are significantly different from their domestic business environment. The role of cultural differences across international boundaries has been identified as significantly important as identified by Shenkar (2001) and this gives an indication of the fact that businesses could achieve success across international environment by focusing towards managing this cultural environment factor. There are various such cases whereby businesses fail to recognise the cross cultural environment conditions across target market, and this has affected their performance in an adverse manner across such international business environment conditions. One such example is of Coca Cola whereby the company failed to understand the cultural conditions across Asian markets, as it involved the slogan such as “Coke Adds Life” and this has been considered in a different manner by people. Because of the existence of cultural differences across Asian market, this slogan has been interpreted as Coke brings people from the dead situation (Long, 2004).

Rationale for the Project: This project on performing the management of cultural conditions across international boundaries is highly justified after looking at the cases of failure of businesses. As suggested by Johnson, Lenartoeicz and Apud (2006), the most number of cases of failure of businesses across international markets is mainly because of lack of appropriate cultural understanding. This research report will allow for identifying the areas that must be given importance and also the ways in which the management of cross cultural environment can be performed in an efficient manner.

Benefits of this Research: The performance of this research in an efficient manner will result into the attainment of benefits in the form of identification of important areas that must be given higher level of attention by management while managing their business processes across international environment. Apart from this, the necessary approach that must be followed by businesses in managing their business processes across international environment would also be identified from conducting this research. These benefits will be accrued from the successful completion of this research.

Rationale for the Project

Research Question and Research Objective: The research question that will be answered through conducting this research is mainly described as “how the issues from cultural differences across international boundaries can be efficiently addressed by businesses?” The important research objectives in addressing this particular research question are:

• To analyse the need and importance of performing the management of cross cultural environment conditions across international boundaries.
• To identify the issues those are mostly encountered by businesses from expanding to international markets.
• To evaluate the major ways in which the performance of management of business processes can be ensured in a positive manner across international boundaries in addressing the cross cultural environment conditions efficiently.

As this research is aimed at assessing the cross cultural management issues faced by businesses when they performs the expansion of their business processes and activities across international boundaries, the researcher is required to make adequate level of consideration with respect to the collection of appropriate data. The data collection methodology is highly essential to be appropriate in ensuring that the research question is appropriately answered. This section of research methodology considers the application of different aspects related to data collection methods so that the actual collection of data can be performed in a highly efficient manner. These aspects are discussed as follows:

Research Philosophy: The selection of an appropriate research philosophy is the first and foremost important thing that the researcher is required to carry out in performing the collection of most relevant data. Research philosophy is concerned with the development of research background, research knowledge and its nature. The research philosophy selection can be done from the three available philosophies such as positivism, realism and interpretive research philosophy. The selection of appropriate philosophy is dependent on the nature of the research to a greater level. As in the given research on examining the cross cultural issues faced by businesses across international boundaries, the research philosophy that is highly suitable is positivism philosophy because it has been quite clear that cultural differences poses issues to businesses in successfully performing their operations across international boundaries. As a result, a positivist approach is likely to ensure the collection of most relevant data appropriate to answering the research question (Muijs, 2010

Data Types Selection: As a part of performing the collection of data, the researcher is required to make decision with respect to the appropriate data types necessary in achieving the research objectives efficiently. The data types as available are mainly categorised into two major types including the qualitative data and quantitative data. Qualitative data ensures the collection of in-depth data whereby the researcher focuses on collecting subjective data. However, quantitative data is concerned with the collection of numerical data whereby the researcher emphasises on performing the measurement of the collected data. There can be the applicability of mixed research methodology that can be ensured by researcher depending on the type and requirement. In this research on examining the cultural issues in the context of international business management, the data type that has been considered as highly efficient is mainly the application of mixed methodology whereby both the qualitative data and quantitative data would be collected to analyse the cross cultural issues and their impact on organisation’s performance (Muijs, 2010).

Data Collection Methods: The decision regarding the data collection methods is also essential to be made by the researcher and there can be the application of primary data collection method and secondary data collection method that can be performed by researcher in collecting relevant data in the research. This research also involves the application of both these primary data collection and secondary data collection methods to analyse the management of cross cultural management issues in the international context. The primary data involves the collection of first hand data by the researcher by way of applying techniques such as interviews, surveys, observation etc. Secondary data collection method on the other hand involves the collection of data from already available sources including academic journals, books, online sites, company documents etc.

Benefits of this Research

This research on investigating the cultural issues in the context of international boundaries will apply primary data collection in the form of interviews and surveys. The application of both these techniques will allow for the collection of both the subjective data as well as objective data. As for instance, surveys would be carried out with the employees of multinational organisational that are operating in UK so that their viewpoints can be identified with respect to managing business processes by their company in the culturally diverse environment context. The surveys would be carried out through the application of appropriate questionnaire that would comprise of questions on the issues of managing business practices across culturally diverse environment. Apart from this, interviews would also be carried out with the managers of multinational corporations that are operating in UK to analyse the major cultural issues as faced by them, and the management strategies that have been considered for their management.

In these ways, the collection of data would be carried out in this research on analysing the management of cultural issues in the context of international business environment conditions. In performing the collection of data from both these sources, the sampling size that would be considered is a sample of 10 managers especially from the global management department of the selected multinational organisations, and a sample of 100 employees from such multinational organisations (Creswell, 2003).

Analysis of the Collected Data: The data as collected through the application of interview and survey technique needs to be analysed so that appropriate research findings can be reached. This research involves the collection of data from both these sources, and the interview data as collected will be analysed through applying the thematic analytical technique. As per this technique, appropriate themes would be identified in relation to the cultural issues and their management across international context, and they would then be analysed to reach appropriate conclusion. Contrary to this, the quantitative data collected through the application of survey will be analysed in the form of diagrams and charts to better reflect the respondent’s responses. In these ways, the analysis of the collected data is performed in this research (Creswell, 2003).

Ethical, Validity and Reliability Issues: In performing the collection of data, the role of ethics is significant, and the researcher is therefore required to make adequate level of considerations with respect to such ethical values. In this research, the data collection process will be performed by the researcher by way of following higher ethical values which could be achieved through providing self discretion to the respondents as to participate or not to participate in the research. There will also be the adequate level of protection of anonymity and confidentiality of respondents. Apart from this, the validity feature would be observed in the data collection process in this research by way of ensuring the most appropriate selection of target audience in performing the collection of data i.e. the employees and managers of multinational corporations. This would ensure the attainment of higher level of validity over the collected data. The reliability factor would be ensured over the collected data by making it sure that the researcher himself engages in the data collection process so that biasness can be eliminated throughout the entire data collection process (Berg and Latin, 2007).

References

Ajami, R.A. and Goddard, G.J. (2006), International business: theory and practice, 2^nd ed., M.E. Sharpe.

Berg, K.E. and Latin, R.W. (2007), ‘Essentials of research methods in health, physical education, exercise science, and recreation Point’, (3^rd ed.), Lippincott Williams & Wilkins.

Creswell, J.W. (2003), ‘Research Design: Qualitative, Quantitative, and Mixed Methods Approaches’, 2nd ed, UK: Publisher SAGE.  

Johnson, J.P., Lenartowicz, T. and Apud, S. (2006), ‘Cross-cultural competence in international business: toward a definition and a model’, Journal of Business Studies, Vol. 37, pp. 525-543.

Long, C.H. (2004), ‘Religion and Global Culture: New Terrain in the Study of Religion’, Lexington Books.

Muijs, D. (2010), ‘Doing Quantitative Research in Education with SPSS’, (2^nd ed.), SAGE Publications Ltd.

Shenkar, O. (2001), ‘Cultural Distance Revisited: Towards a More Rigorous Conceptualisation and Measurement of Cultural Differences, Journal of International Business Studies, Vol. 32 (3), pp. 519-535.