21 May
2006

Cultural Knowledge is a Plus to Business Success

It is generally believed that intercultural awareness does contribute to successfully doing business in another culture. But when it comes to how and where it contributes, it becomes a question not easy to answer. With particular references to doing business in China, recently there are several articles discussing about how relevant some of the cultural tips for doing business in China are to the business successes in China. Diligence China published an article with the title of Look to the Future of China – Not just its Past, which

“admits knowing Chinese history can help gage where China is going, but asserts that a knowledge of emerging market trends is even more valuable. (A summery by China Law blog in To Succeed in China Know the Now .)

Aisa Business Law, looking at the question from a different angle, points out in Do the Top Ten Cultural Tips for Doing Business in China Really Help and Inquiring Whether the Top Ten Cultural Tips For Doing Business In China Really Help – Part II, that there are universal business principles which are in fact not cultural specific such as ‘guanxi’ – the most-talked cultural ‘tip’ for doing business in China and saying:

“there is just hardwork and guanxi, which is good networking, a pretty universal essential to doing business anywhere.”

China Law blog in posts entitled To Succeed in China Know the Now and China’s Culture Wars (continued), arguing that

“Knowledge of Chinese history and culture is an asset for doing business in China. However, because circumstances in China change so quickly, staying abreast of China’s current situation is far more important than knowing its past. The most successful businesses in China usually emphasize knowing their own businesses inside and out first, understanding China today second, and China’s history and culture third.”

I can not be more agreeable to these arguments and I think these insightful arguments put forward a new perspective on how one should relate Chinese culture phenomena (old and new) to doing business in China. Being a native Chinese and with limited knowledge of English language and culture, I feel it is interesting to notice that many of the teachings of how to do business in/with China tend to start or end up with listing out some stereotyped cultural tips and types, and my natural response towards it is that it is really inadequate. I do believe that cultural awareness contributes to business success, for

“Culture shapes our values, attitudes and our behaviour. It affects the way we communicate with each other, the way we expect to lead and to follow, the way we negotiate, the way we buy and sell, and the way we work together in teams.” (by Cultural Intelligence)

The stereotyped cultural tips, however, could be very misleading when delivered in an over-generalized approach or taken with an over-simplified manner without better and live understanding of the specific situation. In terms of China, the speed of change, the scope of the land, the complexity of systems, the span of history, the diversity of local cultures, the varied levels of educational development in different localities, and the gaps in economic development among areas would all affect business developments and successes, either domestic or international.

Moreovre, business success is composed of many factors and some of which are not cultural specific. For instance, as pointed out in the posts by Aisa Business Law, good networking is in fact universally essential. Good networking is certainly an intercultural skill but it is an interpersonal skill in the first place where attitudes towards differences is of the essence. So, either in business or in any other intercultural communications, it is important to be aware of cultural idiosyncrasies and actively work to overcome them.

I would also agree that cultural knowledge is not always a prerequisite, but I think it is not always a prerequisite in the sense that it will not guarantee a success, but rather, it is a plus, which, together with other business essentials, helps to pave the way to a success.

8 Comments

  • […] Chinese native out of Beijing (in NINE different languages), did its own post on this issue, explicitly agreeing with me. I find this particularly heartening because it comes from someone whose business is cultural training. In its post, entitled, “Cultural Knowledge is a Plus to Business Success,” the blog had this to say: I can not be more agreeable to these arguments [referring to the paragraph I set forth above from my initial post] and I think these insightful arguments put forward a new perspective on how one should relate Chinese culture […]

  • […] phrase “no problem mon”. I am in fact quite comfortable giving that example since I’ve lived it. However, few who know me would actually characterize me in this way, especially when it comes to business. And this brings me to a recent post entitledCultural Knowledge is a Plus to Business Success. Written by a blogger based in Beijing, China, the post validates some recent tips and discussions out there on doing business in China. It also highlights how listing stereotyped cultural tips can be inadequate and misleading. As this […]

  • […] Mr. Harris is revisiting this issue because of a recent post on the Journal of Intercultural Learning entitled, “Cultural Knowledge is a Plus to Business Success”. The Journal of Intercultural Learning explicitly agrees with the opinions of China Law Blog and the opinions espoused by us in Part I and Part II of “Do The Top Ten Cultural Tips for Doing Business in China Really Help”. These posts address the issues raised by one of our readers, Doug Berman, concerning drive-thru lessons about Chinese culture. Mr. Harris of China Law Blog reprinted the same section of the post from the Journal of Intercultural Learning that we’re reprinting here and said, I agree. The stereotyped cultural tips, however, could be very misleading when delivered in an over-generalized approach or taken with an over-simplified manner without better and live understanding of the specific situation. In terms of China, the speed of change, the scope of the land, the complexity of systems, the span of history, the diversity of local cultures, the varied levels of educational development in different localities, and the gaps in economic development among areas would all affect business developments and successes, either domestic or international. Moreover, business success is composed of many factors and some of which are not cultural specific. For instance, as pointed out in the posts by Asia Business Law, good networking is in fact universally essential. Good networking is certainly an intercultural skill but it is an interpersonal skill in the first place where attitudes towards differences is of the essence. So, either in business or in any other intercultural communications, it is important to be aware of cultural idiosyncrasies and actively working to overcome them. I would also agree that cultural knowledge is not always a prerequisite, but I think it is not always a prerequisite in the sense that it will not guarantee a success, but rather, it is a plus, which, together with other business essentials, helps to pave the way to a success. I concur but would like to add to Mr. Harris’ opinion. In Part I of this series Mr. Berman compared learning Chinese culture to learning chess. […]

  • Another blogroll update …

    This seems as the only activity we are able to embark on at the moment given the tough workload of exams. The recent addition to our blogroll is a blog called Journal of Intercultural Learning. By the name alone it seems right down BLC’s back alley so…

  • […] this brings me to a recent post entitled Cultural Knowledge is a Plus to Business Success. Written by a blogger based in Beijing, China, the post validates some recent tips and discussions […]

  • Sanatan Dharma is the oldest culture in the world, and there was a time when it was spread throughout the world. People can find swastika in every culture like the American Indians, Greece, troy, Italy, Russia and many other countries have this symbol. Look at the 108 symbols of god in Sanatan Dharma and their origin. Things will become very clear about the origin of humanity in this world. It is time to free ourselves from the lies and deception spread throughout the world about our culture.

    Don’t forget, even today in Sanskrit and Hindi the words for Divorce and any other abusive words do not exist. Yet it contains words like Yantra ( machine) and Vimana ( air-craft), which existed far before the western civilization constructed aircraft themselves.

  • […] its post, entitled, “Cultural Knowledge is a Plus to Business Success,” the Journal had this to say: I can not be more agreeable to these arguments [referring to […]

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