Successful Global Leadership Requires Multicultural Approach
- Chris Mulvey
- Apr 15, 2021
- 3 min read
Updated: May 24, 2021
Note: This was originally posted in a discussion as part of a Boston University Metropolitan College graduate-level course in International Business with Professor Marcus Goncalves.
In order to be successful global leaders, it is important for international business managers to recognize cultural differences and the impacts they have. Global leaders should be experienced, traveled and multicultural. Even still, large cultural differences are challenging in business (Rodrigues & Sbragia, 2013). However, like any risk, they can be managed. Cultural differences can be addressed through planning, training and development, but the first step is to understand the issue. Hofstede’s four value dimensions provide managers with established and accepted standards for understanding differences in culture:
Individualism
Power Distance
Uncertainty Avoidance
Masculinity
Hofstede has since added two more dimensions - (1) Long-term Orientation and (2) Indulgence (Hofstede, 2021).
There are other models outlined by Gerringer et. al (2021), and additional studies have created different measurements for how countries compare with regard to assertiveness, gender differentiation, future orientation, performance orientation and humane orientation (Javidan & House, 2001). These present different areas where cultural differences can affect organizations. However, since Hofstede’s dimensions are broadly acknowledged and vetted, they provide an excellent framework to understand the differences between cultures, or cultural distance.
Once the difference in culture is understood, the next step is to manage it, and there are tools to help. Maznevksi and Distefano’s Map - Bridge - Integrate model (MBI) helps map cultural differences, bridge them through communication and integrate (or manage) them through resolution and building on ideas (Gerringer et. al, 2021).
Though all firms are focused on producing revenue, firms have to be flexible in our increasingly multicultural world. It is important for businesses to provide employees with multicultural training to help improve the broader team’s multicultural competence. Synthesizing viewpoints from different cultures and perspectives produces better results. Teams tasked with innovation or creative pursuits benefit from differing viewpoints and perspectives. For example, Christiansen et. al (2011) believed that networking and associating were two of the core characteristics of innovators. They found innovators networked, learned from their network and synthesized that information into innovations.
Rodrigues & Sbragia (2013) provide examples of failures where culture is at the center. They use Hofstede’s dimensions to understand difficulties that occured when international teams worked together without any training or consideration of culture. The study outlines issues that result from cultural distances mapped by Hofstede.
For an example of the positive effect of advocating for multiculturalism, McKinsey & Co (2015) found that more racially and ethnically diverse firms are 35% more likely to have their financial returns exceed industry norms.
A culture first mentality fosters an inclusive environment that invites and values different perspectives. Taking a culture first mentality can provide firms with some of the positive impacts outlined above - increased financial returns, innovation and higher attrition due to greater satisfaction among employees.
A culture first mentality can result in negative results if it is over-prioritized. Culture is a very important aspect of a global business model. However, ultimately businesses must be competitive, profitable and productive. Considering culture should serve the organization’s broader mission and not be a barrier to success in the market.
References
Christiansen, C., Dyer, J., & Gregerson, H. (2011). The Innovator’s DNA. Boston: Harvard Business Review Press.
Geringer, M., McNett, J., Ball, D. (2021). International Business, 2nd ed. New York: McGraw-Hill.
Hofstede, G. (2021). The 6-D model of national culture. geerhofstede.com. Retrieved April 15, 2021 from: https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-national-culture/
Hunt, V., Layton, D., Prince, S. (2015, February 2). Diversity Matters. McKinsey & Company. Retrieved April 15, 2021 from: https://www.mckinsey.com/~/media/mckinsey/business%20functions/organization/our%20insights/why%20diversity%20matters/diversity%20matters.ashx
Javidan, M. & House, R. (2001). Culture Acumen for the Global Manager: Lessons from Project GLOBE. Organizational Dynamics. Vol. 29 No. 4, pp. 298-305. Retrieved September 17, 2020 from: http://web.a.ebscohost.com.ezproxy.bu.edu/bsi/detail/detail?vid=0&sid=2581f2bc-eca3-4871-a9ae-12107b3bf013%40sdc-v-sessmgr03&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=4795160&db=bth
Rodrigues, I. & Sbragia, R. (2013, February 11). The Cultural Challenges of Managing Global Project Teams: a Study of Brazilian Multinationals. Journal of Technology Management & Innovation. Vol. 8, p38-52. 15p. Retrieved September 17, 2020 from:
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