There are many ways a business can grow, such as through international expansion. By entering a new market, a business is able to gain various advantages, such as an increase in revenue, the ability to reach new customer segments and gain access to a global talent pool. On the flip side, going global has its own set of challenges as well. It is crucial for organisations operating on a global scale to recognise and anticipate these challenges.
One such example is the cultural issues that arise as a result of globalisation. When people of different cultures come together within the same work setting, this may inevitably result in clashing work ethics, social norms, religious beliefs etc. Some of the common cultural issues global teams face include:
Not localising international business: Most people embrace and are protective of their culture as it has played an important part in shaping their identity. Hence, pushing international teams to fit a very specific mould is not likely to yield results.
Not adapting management practices across different cultural environments: For example, enforcing China’s “996 work culture” on teams in other countries may yield counter-productive results, such as lower productivity. International businesses should aim to let their teams work according to their local cultural norms, as long as it does not affect business success.
Inadequate diversity management: A successfully integrated diverse team can bring several benefits such as innovation and strengthened team morale, but may also face more disagreements and less trust when not managed properly. This can be achieved through sound diversity, equity and inclusion policies.
Such differences between global teams often create organisational issues and have a negative impact on business productivity. Hence, culture is an important aspect that businesses have to take note of when entering a new market.
The impact of cultural identity and culture on international business
Culture encompasses several elements, such as language, values, traditions, perspectives, symbols, and artefacts. These elements all come together to form an individual’s cultural identity. In turn, cultural identity shapes a range of behaviours, including how teammates interact with one another and how they express themselves.
Being culturally diverse is helpful for businesses in various ways. Having an environment where different skills and ideas are celebrated and heard can help to boost innovation and productivity in the workplace. Externally, it also enhances your company’s reputation and in turn becomes a key factor for attracting and retaining global talents – 76% of job seekers take workplace diversity into account when making a decision, Glassdoor’s Diversity Hiring Survey reported in early 2023.
Hence, it is important to be aware of the cultural needs of your global team, in order to maintain cultural diversity in the workplace.