Question

Discuss the types of operational conflicts that could occur in an international context because of different attitudes toward time,change, material factors and individualism give examples relate it to specific countries.

Answer 1

When entering into international business with other parties, companies face many cultural conflicts, due to the different attitudes different countries have towards time, change, material factors and individualism.

Time or punctuality is a considered as an important constituent to good character or intent. Consistency is reflected in these cultures through punctuality, while in some cultures lateness is not considered as even a significant factor. When these cultures deal with each other, one party’s lateness can seriously offend the other party. For instance, for North American companies, time is precious while culturally Latin American countries do not put that much value of time-keeping.

Readiness for change is another factor that differs in some cultures, for example, in American companies change is taken as an essential step towards growth, while Japanese firms often view change as a challenge to their traditional norms. Due to this varied attitude towards change conflicts often arise when a change in the existing systems or processes is needed for the business.

Material factors or emphasis on material vs. spiritual values also vary in different cultures. For instance, in Indian culture, spiritual values weigh far heavier that material factors, unlike American cultures, which might create a conflict when parties from these two countries engage in business together, as the rewards they draw from their actions differ in nature.

Individualism or the ability to think and act independently often conflicts with the need for certain cultures to act in groups or teams. For example, American culture ranks high on individuality, where people put their personal goals on the highest priority whereas in Chinese culture, team culture and team goals are considered supreme. If parties form two such cultures engage in business together, individualistic outlook of one party might affect the team focus of the other.