What Is Cultural Conflict in Business?

When business people from different cultures interact, they sometimes come into conflict because of different worldviews, manners, taboos and social mores. In an increasingly global market place, business people can avoid conflict through awareness of these differences.

Function

Culture can include race, ethnicity, nationality and language. It can also include economic class, religion, gender and sexual orientation. Culture shapes many aspects of life such as worldview, relationships and self-identity.

Types

Business-related cultural conflict can arise from difference in time orientation, nonverbal communication, spatial orientation, gender roles and similar factors. These factors affect areas of business such as negotiation, marketing and management.

Expert Insight

One area of cultural conflict in business is negotiation. Professor Michelle Lebaron notes that business people from different cultures have widely different views on time. For example, a Japanese, American or German negotiator may expect negotiations to start and stop promptly and follow a tight schedule while a Mexican, French or Greek negotiator may expect flexibility and a fluid schedule.

Prevention/Solution

Author Gary P. Ferraro believes that as the business world becomes increasingly interconnected, business people must become more aware of cultural differences. He argues that it is not enough to have a general understanding of differences but to develop specialized knowledge of foreign cultures including language, politics, economics and social mores.

References

• "The Cultural Dimension of International Business"; Gary P. Ferraro; 2002
• University of Colorado at Boulder Beyond Intractability: Culture Based Negotiation Styles
• University of Colorado at Boulder Beyond Intractability: Culture and Conflict