Abstract
Today, the scenario of cross-cultural businesses has made it incomparable to the earlier practices as well as an academic phenomenon, due to increasing internationalization and immigration in global job markets. The chapter attempts to notify the significance of culture in business and need for cross-cultural business awareness. It examines how the inclusion of cross-cultural perspectives into business practices will help to create a dynamic environment that facilitates enhanced competence to companies operating across cultures. This chapter has been developed in two parts. In its first part, the chapter discusses the cross-cultural problems and their possible solutions to effectively manage the cultural diversity. In the second part of the chapter, a model, Global Industry Academia (GIA) framework of business education has been introduced. This model enables the B-schools to explore essential constituents of contextual paradigms of change and interpret the complexities of business practices in diverse settings to develop cross-culturally sensitive managers of tomorrow.
TopRelevance Of Culture In Business
Cultural, socio-economic, and political variables affect the way of doing business in terms of prevailing attitudes, values and beliefs. The universality of business and management theories and practices has vanished due to socio-cultural variations in interpersonal relationships between organization and employees, organization and suppliers, and business and customers, community and competition. It has been noticed that the applicability of business practices revolves around a related culture to an unavoidable extent. It shapes and suggests the ways to satisfy physiological, psychological and sociological needs of societies (Schiffman et al., 2016).
Key Terms in this Chapter
Ethnocentrism: It is a conviction that people, custom, and culture of one’s own ethnic group and/or country are superior than those of others.
Heteropolious: Country or organization that has people of different cultures, and can be differentiated on the basis of religions, shared beliefs, languages, and some geographic characteristics.
West-East Dichotomy: A philosophy that explains the differences between Eastern and Western worlds, in special reference to their culture.
Self-Reference Criterion: An unintentional inclination in decisions or practices caused due to one’s own cultural values, experiences, and knowledge.