BUS202 International Business

Introduction

The phenomena of globalization and internationalization has led to an increase in the exchange of resources, information, cultures, services and products across international borders. With an increasing level of competition faced in different business industries, it is essential for the global organizations to engage in such an exchange of resources, information and people, so as to propel a process of business growth and development. Furthermore, it has also been identified by Cavusgil et al., (2014), that one of the primary aspects concerning the international business activities of organizations pertains to cultural adaptability. The societies of different regions of the world are comprised of differences in the values, beliefs, ideologies, religions and customs, indicating significant nuances of cultural identity. Thereby, it is essential for the business organizations having an international scope of operations to not only identify the differences in culture but also remain adaptable to these changes (Ferraro, 2021). However, more often than not, the individuals operating in such international business organizations are faced with culture shock, owing to a lack of adaptability and intelligence about the differences in the above mentioned cultural aspects. The following sections of the essay will focus upon this issue of culture shock as may be identified in the case of international business organizations. In this regard, the various stages of culture shock will be discussed along with the strategies that must be adopted by an international business manager to prevent the negative impact of such culture shock among the individuals operating within the organization.

Discussion

Culture Shock

Culture shock may be defined as the feeling of confusion and anxiety that is experienced by individuals on account of being exposed to a different culture than the one with which the individual is accustomed (Bücker & Korzilius, 2015). Such culture shock may also be comprised of insecurity, disorientation and anxiety of being placed in an unfamiliar and different social environment. With the phenomenon of globalization, business organizations are subjected to expand the scope of their operations across international borders, which in turn has directly resulted in the relocation of employees, workers and managers from one location to a new foreign location (Wild & Wild, 2020). In order to conduct such a relocation in an efficient manner, it is essential for the individuals to be aware about the differences that they may be faced with in the new social environment and thereby, enhance their adaptability towards it. In the case that the individuals fail to adapt to the differences in culture, they may undergo a culture shock. As identified by Neelankavil (2015), the term culture shock pertains to the psychological disorientation and other such pronounced reactions that is experienced by individuals on account being exposed to a new socio-cultural setting. Such discontentment and dissatisfaction is often faced by individuals due to a lack of prior information about the changes and differences that may be faced by the expatriate when they move from their home country to a new host country (Janssens & Steyaert, 2014). In this regard, it may be mentioned that cultural intelligence and awareness is highly essential in order to prevent the individuals from facing the ill impacts of culture shock. However, it must also be noted that individuals experiencing culture shock undergo several stages during their stay in a new socio-cultural environment. These different stages of cultural shock will be identified and discussed in the following sections of the essay.

Different Stages of Culture Shock

There are various aspects that are associated with the experience of culture shock that an expatriate may undergo as a result of relocation from a familiar socio-cultural environment to a new one. These aspects of culture shock may be identified to include a strain owing to inability to adapt to cultural differences, lack of awareness about the cultural differences that may be faced, feelings of deprivation and loneliness as a result of a lack of familiar environment around friends and family as well as fear of rejection or not being accepted in the new society (Picciotto & Mayne, 2016). In addition to this, other aspects of culture shock may also be observed to include anxiety and ill feeling about new policies and foreign practices and customs, confusion regarding value systems and ideologies as well as feelings of helplessness on account of an inability to adapt to a new socio-cultural environment. In this regard, it may also be mentioned that the manner in which the individuals undergo the experience of a culture shock encompasses various distinct stages. The identification of these stages of culture shock further enables the expatriates to be able to cope with the exposition to a new socio-cultural environment. These stages of culture shock may be identified to be the following:

1. Honeymoon stage– The first stage of relocation of the expatriates to a new socio-cultural environment can be identified to be the honeymoon stage. During this stage, the individuals remain particularly satisfied on account of being exposed to a new opportunity of personal and professional development (Korzilius, Bücker & Beerlage, 2017). In this stage, the individuals remain particularly receptive and indulgent in being able to experience the different aspects of the new socio-cultural landscape such as the local cuisine, using local products and making new acquaintances.
2. Disillusionment stage– The second stage of culture shock that may be identified in terms of the experiences faced by expatriates is the disillusionment stage. During this stage, the expatriate starts to face disillusionment, thereby marking the first step towards the effects of a culture shock. There are certain difficulties that may be observed among the expatriates during this stage of disillusionment, including experiencing difficulties adjusting to the new customs, products and services available in the socio-economic environment (Jack, 2014). Furthermore, the expatriate may also face difficulties in adjusting to new food and thereby feel discontentment in the new society.
3. Enlightenment – The third stage on the culture shock phases may be identified to be enlightenment. During this stage, a certain level of awareness and knowledge is generated the expatriate, due to which they are able to identify the differences in the cultures of the home country and the host country. On account of the cultural awareness that is generated among the expatriates, they begin to adjust to the new cultural customs and habits that they have been exposed to. This stage of enlightenment may be regarded as the first step towards the generation of an adaptability towards the culture shock that was initially felt. In this regard, it may also be mentioned that the stage of enlightenment acts as a transition phase.
4. Integration – The next step of culture shock that may be experienced by the expatriate involves their experience of integrating the culture they were accustomed to with the culture of the new country. This stage is usually faced by the expatriates when they live in the new socio-cultural environment for a long period of time (Leung & Morris, 2015). In this regard, it may also be mentioned that the long duration of time when the expatriate has lived in the norms and customs of the new culture makes him or her feel a certain sense of belongingness.
5. Re-entry stage– The final step in the phases of culture shock can be identified to be the stage of re-entry into the home country of the expatriate. This stage may also be called the reverse culture shock phase. This means that during this phase the expatriates, having lived in the host country for a long period of time, finally return to the home country. In doing so, the expatriate has to re-adjust to the culture of the home country which seems new to him or her now. Having adapted to the norms and customs of the host country, the expatriate feels a similar culture shock on returning to the home country, as he had previously felt in the host country.

Strategies to be adopted by International Business Manager

International business managers are required to a major role in ensuring the effectiveness of international business organizations. The first and foremost aspect that is required to be ensured by such expatriate managers is that the employees or workforce is able to adapt to the changes associated with relocation. This also involves the management of the culture shock that the employees may be faced with as well as its impact upon their performance in the business operations (Meyer, 2014). Another essential consideration that is required to be made by the expatriate managers is the integration of the interests of the employees and workforce with those of the organization itself. In addition to this, the expatriate managers are also required to enhance their knowledge about the local market in which the organization will conduct its business activities in the host country. Such a knowledge about the local market will further enable the expatriate manager to be able to develop effective strategies for the efficient functioning of the company. In this regard, the various strategies that are required to be adopted by the expatriate managers may be identified to be the following:

1. Development of a talented workforce – The expatriate managers are required to develop effective strategies for the purpose of creating a talented workforce. In this regard, the scope of effective human resource management plays an important role. The development of effective human resource policies is essential in order to ensure that the expatriate managers are able to manage the interests of the workforce with those of the organization itself.
2. Development of effective stakeholder relationships– The expatriate managers are also required to formulate strategies towards the development of effective stakeholder relationships. These stakeholders may include the employees operating within the scope of the organization, the suppliers and distributors operating locally, as well as the customers of the new market (Gupta & Bhaskar, 2016). In this regard, development of strong interpersonal relationships among the employees is particularly essential in order to ensure that the business activities and operations are conducted in an efficient manner.
3. Marketing – The expatriate managers are required to develop effective marketing strategies so that the local customers and clients may be attracted to engage in business activities with the company. In this regard, it may also be managed that if the company engages in selling products or services in the new market, the expatriate manager is required to develop marketing strategies aligned with the digital sensitivity of the targeted segment of customers (Dieudonné, 2019). For example, in the case that the targeted customers use social media platforms to a significant extent, the expatriate manager may develop social media marketing strategies so as to engage and interact with these customers in an efficient manner.
4. Management of change– Another essential aspect that needs to be considered by expatriate managers in order to ensure effectiveness of business operations in the company is the management of changes. For this purpose, it is important that the expatriate managers develop strategies so that the required changes within the internal environment of the organization can be managed in an effective manner. Such change management may involve integrating the interests of the employees with those of the organization itself and thereby achieving the desired goals and objectives. there are various change management models that may be utilized in this regard such as the Lewin’s Three Step Change Management Model or Kotter’s 8 Step Change Management Model.

Conclusion

From the above discussion regarding the issue of culture shock within the scope of business operations of international organizations, it may be mentioned that owing to the phenomena of globalization and rapid internationalization, business organizations often engage in the relocation of the employees. In this regard, it has also been observed that in the case of such relocation, the employees moving from the home country to the host country are required to adapt to the new culture in an efficient manner. However, in this process they may also undergo a different phases of culture shock on the basis of their cultural intelligence and the duration of their stay in the host country. The expatriate managers operating within the scope of international business organizations are also required to develop certain essential strategies in order to ensure the effectiveness of the business operations of the company in the host country.

References

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Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.

Dieudonné, A. (2019). Cultural differences and effects of culture shock on communication management.

Ferraro, G. P. (2021). The cultural dimension of international business. Prentice Hall.

Gupta, S., & Bhaskar, A. U. (2016). Doing business in India: cross-cultural issues in managing human resources. Cross Cultural & Strategic Management.

Jack, A. A. (2014, June). Culture shock revisited: The social and cultural contingencies to class marginality. In Sociological Forum (Vol. 29, No. 2, pp. 453-475).

Janssens, M., & Steyaert, C. (2014). Re-considering language within a cosmopolitan understanding: Toward a multilingual franca approach in international business studies. Journal of International Business Studies, 45(5), 623-639.

Korzilius, H., Bücker, J. J., & Beerlage, S. (2017). Multiculturalism and innovative work behavior: The mediating role of cultural intelligence. International Journal of Intercultural Relations, 56, 13-24.

Leung, K., & Morris, M. W. (2015). Values, schemas, and norms in the culture–behavior nexus: A situated dynamics framework. Journal of International Business Studies, 46(9), 1028-1050.

Meyer, E. (2014). The culture map: Breaking through the invisible boundaries of global business. Public Affairs.

Neelankavil, J. P. (2015). International business research. Routledge.

Picciotto, S., & Mayne, R. (Eds.). (2016). Regulating international business: beyond liberalization. Springer.

Wild and Wild, 2020. International Business: The Challenges of Globalization Global Edition. Pearson.

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