The impact of cultural differences on multinational enterprises A brief analysis of the impact of transnational cultural differences on multinational enterprises

From a business perspective, Johnson and Turner outline culture as the accumulation of experiences and values. The characteristics and differences of transnational cultures not only exist between countries, but mainly within organizations and companies. Today's multinational enterprises are like Chinese delicacies - hot pot, integrating customers, collaborators or internal employees of the company from different countries with different cultural backgrounds. The huge influence of cultural differences must be fully taken into account. Therefore, analyzing the impact of cross-border cultural differences on multinational enterprises will contribute to the healthy development of multinational enterprises.

1. Classification of cultures

1. High context-sensitive culture vs. low-context sensitive culture

In 1976, the American anthropologist Hall Culture is divided into two categories: high context and low context sensitive culture. Among them, people from highly context-sensitive cultures tend to hide their true purpose between words when talking. It has the characteristics of saying something behind the scenes and having overtones. Therefore, if you want to figure out what happened in this situation, you need to fully analyze the speaker's body language and fully interpret ambiguous words. On the contrary, people from low-context-sensitive cultures express very directly and clearly inform the other party of their key and core meanings without vague language. Typical representatives of the above two cultures are as follows. People in Asian countries belong to the category of high context sensitive culture. Americans are typical representatives of a culture with low context sensitivity.

2. Individual differences between two cultural backgrounds in a business context

In a business context, many problems and even conflicts will inevitably arise when individuals from two cultural backgrounds communicate. or conflict. As mentioned above, people from low-context-sensitive cultures are direct in their expressions, which can be offensive to people with high-context-sensitive cultures. People in a culture with high context sensitivity tend to prefer to refuse politely and are unwilling to directly make a negative conclusion. This also makes people in a culture with low context sensitivity think that there is still a chance for negotiation, but in the end they are confused. In addition, people from high-context-sensitive cultures consider social interaction during meals necessary, while those from low-context cultures prefer quick fixes.

2. The possible impact of cultural differences on multinational corporations

1. The impact of cultural differences on the internal affairs of multinational corporations

Mergers, acquisitions, and joint ventures of multinational corporations There will inevitably be conflicts between members of different cultural groups. When enterprises obtain new core competitiveness from mergers and acquisitions, they will also face important and arduous integration tasks. The arrival of new members is not a simple merger in the company's organizational structure, but more importantly, it allows employees from different cultural backgrounds to work together and work together for the development of the company. Through communication, mutual understanding, and common development, they have truly become one. Therefore, the success of a multinational enterprise's merger and acquisition also depends on the later integration of the enterprise, and the key lies in the integration of two groups with different cultural backgrounds, as well as the enterprise's attitude towards cultural differences and the measures it takes. If companies can pay attention to this issue, fully realize the importance of culture, and effectively avoid or resolve conflicts caused by cultural differences, then the company's future development can be guaranteed. Therefore, whether it is overseas investment or corporate investment promotion, in the face of cultural differences, mutual understanding and timely communication are the core of problem solving and the magic weapon for victory.

2. The attention of corporate products in the international market is affected by cultural differences between countries

When multinational companies expand their business in overseas markets, cross-national cultural differences determine their success or failure. core factors. For this reason, in the face of the huge influence of cultural differences, multinational enterprises should pay more attention to their positive effects so that they can be used to their advantage. Being good at utilizing cultural differences will contribute to the healthy development of multinational undertakings. Facing the new cultural market, multinational companies need to focus on the targeted aspects of their marketing strategies. It is necessary to deeply explore the real needs of target market customers and understand their culture. The inheritance and development of culture cannot be changed by any enterprise or organization. Culture is inherent. Only by fully paying attention to its existence can we ensure that our own enterprises can maintain a rising position in the international market. Only by paying attention to cultural diversity can we ensure that our own operations are in an undefeated position.

3. Solutions for multinational companies when faced with cross-border cultural differences

1. Pay attention to explicit and implicit communication

How do multinational companies break through cultural differences? The barrier lies in its effective suppression of communication. As a link between multinational enterprises and world markets, communication plays a vital role. Communication includes two categories, explicit communication and implicit communication. Verbal communication belongs to the first category, explicit communication. When communicating verbally, you should consider the way the other party can accept your expression, the logic of your thinking, and your tone. During the communication process, the speaker should have the ability to observe words and emotions and adjust his or her expression in a timely manner to meet the needs of the other party. In particular, it is necessary to clarify the cultural background of the other party and whether the country in which it is located belongs to a high context-sensitive culture or a low-context sensitive culture. You should be very familiar with the characteristics and communication specificities of these two cultures so that you can communicate effectively. Corresponding to explicit communication is implicit communication. This kind of communication silently hinders the development of multinational enterprises. Because of its hidden nature, it is often ignored by people. Specifically, implicit communication is manifested in the following aspects, such as the views and concepts of time, the distance between the two parties when they are in contact, material concepts, and attitudes towards friendship, etc. Under different cultural backgrounds, the differences in time concepts are very significant. For example, in international trade, Germans are very strict about time, but Latin American businessmen do not believe that time can bind anyone. In addition, during the communication process, Arabs like close contact, and some politeness or deliberate avoidance and keeping of distance by American businessmen can cause misunderstandings among Arabs, thus affecting communication between the two parties. Therefore, if you are preparing to develop international business, you should first understand the cultural background of the target party and understand its customs and habits. Only in this way can you ensure mutual understanding and deepen cooperation during the communication process.

2. Pay attention to the cultural attributes of the product

If a product wants to enter the international market, its brand, product name, slogan, and image design must meet the cultural attributes of its market positioning. This includes both the choice of material for the product itself and the design of its external packaging. In addition, the selection, design and positioning of its advertisements must also fully integrate the cultural characteristics of the local market. Avoid failed marketing.

IV. Conclusion

The global development of multinational enterprises is the need of social development and the product of the progress of the times. However, while globalization has brought huge benefits to enterprises, it also faces severe challenges. The healthy development of multinational enterprises stems from their attitude towards transnational culture. The influence of transnational cultural differences has become a bottleneck restricting the overseas business expansion of multinational enterprises. Therefore, effectively resolving the contradictions of transnational cultural differences is a necessary means for enterprises to embark on the path of rapid development. .

References:

[1]Hollensen, S., 2004. Global Marketing: a decision oriented approach, 3rd edition. Essex: Harlow Pearson.

[2] Jiang Lun. A brief discussion on cultural integration issues in cross-border mergers and acquisitions of Chinese enterprises [J]. Science and Technology Innovation Herald, 2007, 26:3 5.