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1 Aarhus University Business and Social Sciences WORKING IN A MULTICULTURAL VIRTUAL TEAM: A KEY TO SUCCESS OR A FAILURE Julija Kadocnikova MSc International Business Supervisor: Anders Klitmøller May, 2012

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Aarhus University

Business and Social Sciences

WORKING IN A MULTICULTURAL VIRTUAL TEAM: A KEY TO SUCCESS OR A

FAILURE

Julija Kadocnikova

MSc International Business

Supervisor: Anders Klitmøller

May, 2012

2

ABSTRACT

Purpose:

The purpose of this research is to describe and explore the interconnection between the cultural

and linguistic diversity and communication pattern in a given company. Additionally, it aims to

find an answer to whether virtual team organization is an effective in a contemporary

organizational structure.

Design/methodology:

The study is conducted on a qualitative basis using semi-structured interviews with 9

representatives of a single MNC in 4 countries – Finland, Denmark, Germany and Spain.

Interviews were conducted both face-to-face and over the phone. This paper employs the

explanatory research with elements of exploratory research and investigates the objectives of the

research according to the scientific paradigm of social constructivism.

Findings:

The results indicate that there is definitely a connection between the cultural and linguistic

diversity and communication pattern in the company. The results also point to the growing

importance of the language barrier, which has not yet been acknowledged appropriately. In the

future, language will become an equally significant dimension of the GVT effectiveness as

culture.

Practical implications:

Findings provide the guidance for the company‟s management to get an understanding of how,

with the variance use of culture and language, it is possible to turn the virtual team work into a

success and fulfill its potential.

Key words: multinational corporation, information communication technologies, global virtual

teams, language use, cultural diversity, intercultural communication, choice of media.

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TABLE OF CONTENTS

1. INTRODUCTION...................................................................................................................6

1.1. Research background ........................................................................................................6

1.2. Research question .............................................................................................................8

1.3. Delimitations ....................................................................................................................9

1.4. Outline and structure .........................................................................................................9

2. LITERATURE REVIEW ...................................................................................................... 11

2.1. Conceptualization ........................................................................................................... 11

2.2. Dimensions of a virtual team........................................................................................... 12

2.3. Advantages of a virtual team organization ....................................................................... 15

2.4. Disadvantages of a virtual team organization .................................................................. 16

2.5. Managing technology in virtual teams ............................................................................. 17

2.6.Communication across language and culture .................................................................... 21

2.6.1. Cultural barrier ......................................................................................................... 21

2.6.2. Linguistic barrier ...................................................................................................... 25

2.7. Relationship between the choice of media and language/culture ...................................... 27

2.7.1. Face to face communication ..................................................................................... 28

2.7.2. E-mail mediated communication .............................................................................. 29

2.8. Challenges in a GVT ....................................................................................................... 31

2.8.1.Human Challenges encountered in Virtual team work................................................ 31

2.8.2.Technology based challenges: how to guide the appropriate choice of media ............. 34

3. METHODOLOGY ................................................................................................................ 35

3.1. Methods of reasoning ...................................................................................................... 35

3.2. Nature of knowledge ....................................................................................................... 36

3.3. Data collection techniques .............................................................................................. 36

3.4. Research purpose ............................................................................................................ 37

3.5. Data collection ................................................................................................................ 38

3.6. Interview methodology ................................................................................................... 39

3.7. Participant selection ........................................................................................................ 41

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3.8. Ethical issues in research ................................................................................................ 41

3.9. Source criticism .............................................................................................................. 42

4. EMPIRICAL PART .............................................................................................................. 44

4.1. The company: background information ........................................................................... 44

4.2. Organizational Structure ................................................................................................. 45

4.3. Current position of the company on GVT........................................................................ 47

4.4. General observations ....................................................................................................... 48

4.5. Language issues in a virtual team organization ................................................................ 49

4.5.1. Language proficiency ............................................................................................... 49

4.5.2. Language as a barrier in a communication ................................................................ 51

4.6. Cultural dimensions in a GVT ......................................................................................... 54

4.6.1. Personal culture ........................................................................................................ 54

4.6.2. National culture ........................................................................................................ 55

4.6.3. Corporate culture – global vs. local mindset ............................................................. 57

4.7. Managing technology...................................................................................................... 60

4.7.1. Communication pattern: overview ............................................................................ 60

4.7.2. Face to face interaction ............................................................................................. 61

4.7.3. Phone interaction ...................................................................................................... 62

4.7.4.Email interaction ....................................................................................................... 64

4.8. Challenges ...................................................................................................................... 67

5. CONCLUSIONS ................................................................................................................... 69

REFERENCES ......................................................................................................................... 73

APPENDICES .......................................................................................................................... 78

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LIST OF FIGURES

Figure 1: Key issues in implementing GVT……………………………………………………13

Figure 2: Media Richness Theory graphic reflections………………………………………….19

Figure 3: Representation of Three Cultures model……………………………………………..24

Figure 4: The content of a written message: verbal vs. non verbal……………………………..29

Figure 5: A model of intercultural mediated communication…………………………………..30

Figure 6: Aponar‟s structural organization……………………………………………………..46

LIST OF ABBREVIATIONS

MNC: Multinational Corporation

ICT: Information Communication Technologies

GVT: Global Virtual Teams

VP: Vice President

MRT: Media Richness Theory

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1. INTRODUCTION

1.1. Research background

Over the years, many companies have expanded worldwide and now proudly carry the title,

Multinational Corporation (MNC). But many companies have only recently begun to pay

sufficient attention to the importance of intercultural competence – the ability of their employees

to successfully communicate with others from different cultures. Speed, rather than content of

communication, was addressed as being crucial to effective communication. But with ever

increasing trends of globalization and greater competition (as a consequence of more companies

entering and acquiring in more widely spread markets) attitudes are changing. Many managers

are realizing the growing importance of cross-cultural communication skills in successfully

implementing ideas and expanding businesses.

But what is effective cross-cultural communication? Foremost, it is the understanding and

acceptance of how different cultures reflect upon behavior, ethics, attitudes and values. This

means finding the right balance between accepting and learning from other cultures and

acknowledging one‟s own cultural background. Cultural awareness is therefore crucial in

increasing the ability of an employee to take part in effective cross-cultural communication.

Effective cross-cultural communication takes on greater importance considering the majority of

employees in multinational corporations work in virtual teams. A report by the Gartner Group

revealed that more than 60 per cent of employees work in global virtual teams (GVT).

Establishing effective cross cultural communication has taken urgency especially as 50 per cent

of virtual teams fail in implementing and achieving their strategic objectives due to their inability

to cope with and manage diversified workplace conditions (Biggs, 2000, in Zakaria,

Amelinckx&Wilemon, 2004). With most companies going global in order to benefit from scope

and scale, effective cross cultural communication is crucial in meeting customers‟ expectations

of better service, higher quality of products, and the company being available in a 24/7 manner.

In line with such goals, multinational companies have embraced a virtual team organization, with

information communication technologies (ICT) allowing greater flexibility and online interaction

between customers and stakeholders. However, due to deliberate and collateral heterogeneity,

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which is a prerequisite of global virtual teams, diversity and distance can be seen as both an

advantage and disadvantage. Global virtual teams allow companies to recruit expertise that might

not be available locally, an advantage that can also be seen as a barrier for an overall global team

performance. The body of literature on virtual global teams has concluded that working in a

virtual team contains all the usual challenges of teamwork with the added complexity of

geographical and temporal separation between team members. The challenges include trust,

leadership, communication, team building and coordination, team performance, and knowledge

management. Considering the growing number of virtual teams used as an organizational

structure element, the latest globalization trends across the world, and increasing geographical

dispersion, managing a global virtual team is critical for a multinational company.

How does multiculturalism affect virtual teams? Multiculturalism usually presents the most

difficult challenges for virtual teams, including potential to hinder effective integration within

teams. But they also offer the greatest opportunities for value through the creation of synergies

by managing differences. Team members from different cultures come to a group setting with

very different predefined notions about how the group should work. Some researchers have

added cultural differences among the key challenges facing a virtual team. Evaristo, for example,

suggested that trust is related to cultural differences among team members. Zakaria,

Amelinckx&Wilemon analyzed how Hall‟s contextual theory and Hofstede‟s four cultural

dimensions affect teamwork. However, these theories are subject to generalization and do not

show how exactly the variance in cultures and the use of language affect the ICT

communication.

The notion that cultural differences can be a significant barrier to doing business is now

commonly accepted. However, this acceptance might have blinded researchers to a more basic

country characteristic with the same impact: language. Very little research has investigated the

impact of language diversity on management (Harzing&Feely2007). We have yet to discover

what the interconnection between the use of language and the ICT is. This lack of systematic

research is unfortunate as early research efforts in the field clearly show that language is a very

important issue in MNC management. Overall, the contributions of these pioneers in this field

can in no way claim to represent a cohesive or comprehensive body of research. As a result we

still know relatively little about the impact of language on international management and even

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less about the specific impact of language on HQ-subsidiary relationships (Harzing&Feely,

2007)

The aim of this study is, therefore, to empirically explore the choice and the differences in the

usage of ICT in a GVT and the mediatory effect of those barriers (culture and language) on the

communication in GVT. Therefore, the paper will start with a literature review giving a

foundation to further research and establishing the common grounds. The literature review will

focus on establishing the link between ICT communication and cultural/language diversity by

firstly exploring the terms separately as such and an impact of those on the team performance.

1.2. Research question

Formulating the research question, in many cases, is one of the most difficult steps. The natural

process would be to firstly pinpoint an area of interest in a broad subject, then narrow the interest

down to a specific topic, observe that topic from different points of view, and finally define the

nature of the project and identify the problem (Booth, 1995).

The first step, in case of this particular research, was identifying a company, which would invite

further research. Due to the organizational change, the company was switching the way it

worked from a simple line organization to a more structured matrix organization with a project

based working group. Therefore, the area of most interest which emerged was how to cope with

and how to organize communication in a GVT within the company.

After narrowing down the problem, I have come to the following research question:

HOW DOES THE VARIANCE IN LANGUAGE AND CULTURE AFFECT ICT

COMMUNICATION AND PERFORMANCE IN A MULTICULTURAL VIRTUAL TEAM?

Why is this research question important and to whom? I strongly believe that the global and

diverse workforce is the future of organizational development. A multicultural virtual team is

crucial for companies thinking globally and seeking the great potential that arises with cultural

synergy to create a sustainable and innovative company. It is therefore of great interest to the

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company to learn of the interconnection between cultural diversity and technology variance in

order to better utilize the potential of GVT.

1.3. Delimitations

With the scope of this research being so wide-encompassing, I feel it is necessary to establish

some limitations.

First of all, the present research is considering only the internal communication possibilities.

How culture and language affect communication with the external world, including the

stakeholders and clients is not the scope of this research.

This research paper examined the communication in four GVT, each in a different country, in

only one company. While these specific countries, where chosen as a particular representatives

of the phenomena, the findings are limited within a single MNC. Therefore, the findings of

particular research may not be transferrable to other MNCs. It may not be representative of other

MNCs, especially in other industries, countries, and cultural compositions.

This research paper is focusing on challenges that arise from workplace in a virtual multinational

team due to team members‟ geographic dispersion and cultural heterogeneity. Organizational

change has been explored in the paper only as a side effect and is not the object of the research

itself.

In the research, I will be comparing only two main forms of communication, telephone and

email, with face-to-face communication. This is because it is important to acknowledge when a

certain medium is appropriate. Face-to-face is the opposite of complete virtual state (email) or

medium state (telephone). The aim of the author was not to compare all the different types of

technologies but to compare and outline the main advantages and disadvantages of telephone and

email as the most widely used.

1.4. Outline and structure

The present thesis consists of five parts.

Part One aims to give a general introduction to the thesis such as background information,

reasons for choosing the research question and limitations of the study.

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Part Two focuses on providing the theoretical framework for understanding the interconnection

between media choices and team heterogeneity. For this, the understanding of basic concepts

will be established – virtual teams, culture and its dimensions, language, theories that support

media choice. Later on, I will proceed with analyzing which dimensions of culture and language

may have a potential effect on the communication team. Finally, the paper will discuss how

culture and language combined together affect the choice of the communication technology.

Part Three describes the methodology behind the research. It explains the scientific and

theoretical research methods used in the study to ensure the quality of the final results. It

discusses the choice of the particular research method, reliability and limitations of the data

material.

Part Four strives to give an insight into the work and challenges of the company on the way

towards working virtually. First, the overall introduction to the company is given. After that, I

will establish the cultural and language factors, which are the main scope of the research, with

practical examples within the company. Afterwards, I will relate those factors with the choice of

media and their impact on the overall communication in a GVT.

Finally, Part Five draws the conclusions from this research. It focuses on practical implications

for the development of company work processes as well as theoretical implications for future

research.

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2. LITERATURE REVIEW

2.1. Conceptualization

Multicultural virtual teams

There are many terms like „global teams‟, „multicultural teams‟, „virtual teams‟, „virtual

intercultural teams‟ and „transnational teams‟ that are usually used to express the same

phenomena. I will hereby use the substitutable terms of global virtual team, global team and

virtual team in expressing the idea used by Zakaria, Amelinckx&Wilemon – „a global virtual

team‟ since it covers all the aspects of the object of this research: its multiculturalism and its

distributed nature.

Three main characteristics for virtual teams:

1) The team is interdependent in task management, have shared responsibility for the team‟s

mission and results across organizational boundaries.

2) Geographical dispersion of the team members.

3) Use of technology-mediated communication rather than face-to-face communication.

Here, team members are not only divided by location and technology, but also have a different

national and cultural background. Zakaria, Amelinckx&Wilemon (2004), underlines that,

“global virtual teams are not only separated by time and space, but differ in national, cultural

and linguistic attributes, and use information and communication technologies as their primary

means of communication and work structure.”(p.17).

Culture

The core of a culture presents shared assumptions, beliefs and values that the people of a

geographical area develop over generations. Those assumptions, beliefs and values serve to

establish and reinforce the norms that people (society) adopt when judging what is appropriate

behavior in a particular situation. In this way, culture shapes people‟s actions and opinions.

(Sinha &Kumar, 2004). It varies from individual to individual within a society, but it shares

important characteristics with all the members of a society. Culture is acquired knowledge that

people use to interpret experience and generate social behavior. That is why people coming from

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different cultural backgrounds have different world perceptions and mindsets. It is essential to

see in which way we differ and how our cultural perceptions are actually different.

Language

Language is closely intertwined with culture. Without an understanding of culture and the

context, language as a verbal expression of meaning might get lost regardless of language

proficiency level. An individual‟s ability to understand and perceive the information is linked to

use of language. This refers not only to language proficiency as such but also to the style of the

communication and perception of the social information. With English as the language of

international business, it might be challenging for non-native English speakers to fully operate

with their colleagues, for whom English is also a second language. With work organized cross

regionally, there is no wonder that there are differences in the language skills between different

units within the company. Such differences can have a negative impact on the overall feeling

within a working team – trust, communication between the team members, and the national

boundaries.

2.2. Dimensions of a virtual team

Various authors suggest that the two greatest barriers to effective team communication are

technology and cultural differences (Dube&Pare, 2001; Zakaria, Amelinckx and Wilemon,

2004). This is understandable because of the main attributes of virtual teams – reliance on

information communication technologies which is the „virtuality‟ element, global dispersion,

which is the „multiculturality‟ element and cultural diversity, which is a heterogeneity element.

The main issues related to the execution of virtual teams are reflected in Figure 1.

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Figure 1: Key issues in implementing GVT (Adapted from: Zakaria, Amelinckx, & Wilemon,

2004)

Heterogeneity represents the diversity of people in the team. It can stem from various sources,

for example, it can be demographic like nationality, cultural background, age or gender.

Heterogeneity can also be functional expertise, which appears within organizational boundaries

like the history of interaction between the headquarters and subsidiary, the importance of the

subsidiary within the MNC, and a different organizational culture in the subsidiary locations.

(Maloney&Zellmer-Bruhn, 2006).

The current body of literature does not identify the multiple dimensions of heterogeneity.

However, the distinction has to be made in order to see how to benefit most of the heterogeneous

team (Maloney&Zellmer-Bruhn, 2006). Existing research mainly focuses on the negatives of

heterogeneity, with little attention on how to change it to positive global team dynamics

(Maloney&Zellmer-Bruhn, 2006).

Maloney&Zellmer-Bruhn introduced the concept of deliberate and collateral heterogeneity.

Deliberate heterogeneity is the result of the staffing decision about what knowledge is necessary

to fulfill the team‟s tasks. Collateral heterogeneity is not specifically task-related but it occurs

when heterogeneity is created by other, rather than staffing decision on the necessity of

knowledge.

It is important to identify both types of heterogeneity because it leads to the successful

management of the heterogeneity within the team – avoiding the problems caused by collateral

People:

- Culture

- Language

- IT skills

IT:

- Appropriate use of ICT

- IT skills

Global Virtual Teams

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heterogeneity but still benefiting from deliberate heterogeneity (Maloney&Zellmer-Bruhn,

2006).

Geographical dispersion

Much like heterogeneity, geographic dispersion can be collateral or deliberate. Like

heterogeneity, both aspects have to be managed in order to see the disadvantages and convert

them into strengths.

Both heterogeneity and distance can be seen as advantage and disadvantage because it allows a

company to get the expertise that might not be available locally. But it can also be seen as a

barrier for an overall global team performance. Here is where the company, team leader or HR

department can benefit and find the key to the successful functioning of a virtual multinational

team.

The solution is the implementation and introduction of the global mindset that stands to extract

value from the heterogeneity and can therefore increase team effectiveness and performance.

Virtuality

Multinational virtual teams have a great sense of success and efficiency and can bring added

value to the teamwork. However, as the body of research shows, that the global teams not always

create the expected value (DiStefano&Maznevski, 2000). Language and cultural barriers,

different cultural dimensions (including corporate and occupational culture) time zone

difference, difference in technology use and perception can all cause great challenges to the

successful functioning of those teams. Therefore, two main challenges stem from the literature

review – how to successfully manage technology use and language and cultural barriers. This is

the subject of discussion in the chapters below.

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2.3. Advantages of a virtual team organization

Among the potential advantages of the virtual team are:

overcoming the limitations of time, location and organizational affiliation by reducing

relocation, time and travel costs as teams bridge the gap in the location as compared to

traditional teams.

availability to be always on market, have an operative response and cover all the different

time zones, the so-called “Follow the Sun approach” that leads to greater organizational

flexibility.

boosting the creativity, synergy and cohesiveness among the team members in order to

create added value (Lurey & Raisinghani, 2001; Zakaria, Amelinckx & Wilemon, 2004).

The virtual global team brings cultural diversity to the workplace. There will never be

two same answers because people coming from different backgrounds (cultural,

educational, and social) will present different solutions to problems. As diversity in itself

means the variety of a given term, the group diversity will mean diversity in opinions,

ideas and thoughts (Gupta, 2008).

using the group cultural synergy in creating new innovative solutions (Lurey &

Raisinghani, 2001; Zakaria, Amelinckx & Wilemon, 2004). As discussed previously,

cultural differences affect the problem solving skills of a group and bring more and

multiple solutions. (Gupta, 2008).

providing competitive advantage in globalized market conditions using cultural diversity

(Zakaria, Amelinckx & Wilemon, 2004; Maloney & Zellmer-Bruhn, 2006; Ruigrok &

Wagner, 2001; Gibson&Cohen, 2003). A virtual team brings more solutions, different

perspectives and ideas to a workplace, as well as different languages and cultural scope,

not only in a sense of new problem solving but also as a great tool to create local

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responsiveness. Who would better know their particular market needs than a

representative of a particular culture?

2.4. Disadvantages of a virtual team organization

Even though the virtual team setting can benefit the company with the advantages mentioned

above, they can also bring major challenges. Choice of communication technology has certain

limitations that can lead to a decrease in overall team performance. Dube and Pare suggest that

global virtual teams present many more challenges then localized virtual teams.

First of all, all of the media of communication cannot provide the same level of richness as face-

to-face contact. The delays in transmission and lack of social and nonverbal cues disable a

team‟s ability to identify and dissolve misunderstandings (Gibson&Cohen, 2003). Computer

mediated communication makes it more difficult to understand and avoid misunderstandings due

to the lack of primary indicators – such as voice, intonation and other nonverbal cues, which

show the moment of misunderstanding (Gibson&Cohen, 2003). Conflicts can have detrimental

effects on results, team performance and effectiveness, and overall satisfaction of the work

process (Rhoads, 2010). Virtual teams become even more vulnerable in the moment of such

conflict. Due to the lack of social cues the level of conflicts and arguments among the team

members is augmented and becomes more difficult to dispel. This may ultimately lead to project

delays if it is not solved in a timely manner (Zakaria, Amelinckx & Wilemon, 2004; Rhodes,

2010).

Face-to-face meetings provide the information, the social context and social cues. This

information, so-called social information, creates trust and shared understanding – enabling

virtual team effectiveness (Gibson&Cohen, 2003). The team‟s effectiveness will suffer from

choosing other less rich media for communication. People feel more comfortable in expressing

their opinion, stimulating the opinion and knowledge exchange. Therefore, it is less likely and

indeed less inspiring or creative to have an idea exchange via e-mail (impossible to put the whole

idea in writing) or phone (cannot see the reaction towards the idea) (Gibson&Cohen, 2003).

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Secondly, there is less knowledge sharing. Not all the information is transferable since there is a

lot of information, especially in innovative companies, which rely heavily on this virtual work to

develop new products. (Rhoads, 2010). This type of information is knowledge-based messages

or so-called tacit knowledge and it involves more than just linguistic symbols (Rhoads, 2010).

Tacit knowledge, due to its nature, cannot be transmitted via written message. It requires

intuition, subjective insight and is often accompanied by a high degree of uncertainty (Rhoads,

2010). This situation creates a paradox in a way – as the single purpose of the virtual team is

actually to create an added, additional value – the knowledge sharing is being, temporarily,

blocked. People are able to share less complex, less tacit knowledge and information, therefore

creating room for misunderstandings, implied meaning and wrong mishap (Gibson&Cohen,

2003). The decision-making process therefore becomes more time consuming (Zakaria,

Amelinckx & Wilemon, 2004). Chudoba, Lu&Wynn agree with this assessment and underline

the loss of information and knowledge as one of the main disadvantages of a virtual team.

2.5. Managing technology in virtual teams

Globalization and technological development has allowed even smaller companies to be present

at an international globalized marketplace. Some of the earliest media theories were, however,

developed long before the development and widespread use of computers and technology.

Therefore, these theories are dealing mostly with communication systems rather than the newest

developments in ICT (Lievrouw, 2001).

Technology brings a lot of advantages to the work of any company: it is easy to master,

accessible, low cost and available in around the clock manner. It connects people in distant

places, spans over time gaps and locations, helps effective communication between branches and

home office and saves time. At the same time, it can be an unreliable variable that directly

influences team communication and the outcomes of team work (Duarte&Snyder, 1999).

Technology itself is just a tool that can enable effective communication, an infrastructure for

virtual collaboration (Cohen&Gibson, 2003). Therefore, it is essential to use the appropriate

technology given the wide spectrum of the ICTs in order to change the unreliable variable into

the key to success.

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Research on global teams provides several theories of the interconnection of computer mediated

communication and team dynamics, including media richness theory, task technology fit, social

influence theory, and; social presence theory.

One of the most comprehensive studies devoted to exploring how and why different media affect

communication and is able to help in reducing ambiguity is the media richness theory proposed

by Daft&Lengel, which is based on the contingency theory and information processing theory.

Media Richness Theory is based in organizational theory as it shows that the design of any

organization reflects ways to handle information (Galbraith, 1977; Weick, 1979, in

Daft&Lengel, 1983). This is the important milestone as it proves the connection between the

information and the organizational design. Hence, the changes in processing information, the

development of new means and sources of information, new mediums, all lead to the continuous

and simultaneous changes in organizational design. At the same time, the success of the

organization as such lies exactly in the possibility of the company to manage those changes and

to process the information with appropriate media in order to reduce ambiguity and uncertainty

(Daft&Lengel, 1983).

In their study, Daft&Lengel propose the concept of media richness – the ability of certain media

to improve communication and reduce uncertainty and ambiguity and promote understanding.

Media richness is subject to four factors:

- media‟s availability for instant feedback;

- the capacity of a media to transport multiple cues such as body, language, voice, and tone

- language variety;

- personal source (Daft&Lengel, 1983).

Therefore, different media can work better for different purposes within the organization. The

greater physical presence makes it possible for an immediate and instant feedback and transmits

the non-verbal cues.

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Information

richness

Medium Feedback Channel Source Language

High Face-to-Face Immediate Visual, Audio Personal Body, Natural

Telephone Fast Audio Personal Natural

Written, Personal Slow Limited Visual Personal Natural

Written, Formal Very Slow Limited Visual Impersonal Natural

Low Numeric, Formal Very Slow Limited Visual Impersonal Numeric

Figure 2: Media Richness Theory graphic reflections (Source: Daft&Lengel, 1983)

Concluding from Figure 2, face-to-face is the richest source of communication due to its

immediate feedback, which reduces ambiguity. It enables a person to transmit multiple cues such

as voice, body language, facial expression and has a personal nature and uses natural language

which is the highest in variety (Daft&Wiginton, 1979, in Daft&Lengel, 1983).

Phone as a communication media stands next in the media richness hierarchy. It has a somewhat

less richness nature due to slower feedback and limited opportunities to transmit non verbal cues.

The individuals have to heavily rely on audio created cues and language, which adds an

additional pressure on both voice tone and language proficiency hence the body language and

facial expressions are lacking, creating room for misunderstandings.

Written communication is even less rich and effective due to the slow nature of feedback,

absence of audio and limited visual cues. Personally addressed medium stands higher, but the

impersonal mediums such as flyers and bulletins create even less cues and more room for

miscommunication.

The lowest in the media richness hierarchy are the formal numeric documents (Daft&Lengel,

1983). Even though numbers are used for reporting about quantifying aspects of the

organizational activity, they do not have the capability of information processing as the

language. (Daft&Lengel, 1983).

Daft&Lengel also suggest that appropriate media should be used to solve organizational

problems. Authors call it a positive relationship between information richness and the

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complexity of organizational phenomena (Daft&Lengel, 1983). Where there are highly complex

organizational issues such as company strategy, objectives, goals, or intangible knowledge to be

shared the richest media should be used. Meanwhile, when there are more easily countable and

understood organizational aspects are involved such as employee attendance or the inventory

documentation, documented and simple, the use of richer media may cause the misinterpretation

and unnecessary distractions and hence the use of less rich media is preferable. Choice of media

not only depends on the complexity of tasks, but also working under higher uncertainty calls for

the use of richer media in communication. Holland, Stead and Leibrock suggest that, individuals

working under high uncertainty would use richer media to transfer information as opposed to

those dealing with relative certainty (Holland, Stead& Leibrock, 1976, in Daft&Lengel, 1983).

Task-technology fit theory has been developed as a guideline theory that explains how different

task complexity affects the choice of media for maximized team performance. In their study,

Hollingshead, Mcgrath&O‟Connor based their research on Daft&Lengel‟s Media Richness

theory. The authors themselves agreed that the theory is arguable and only provides the scope on

the biggest effects of the computer-mediated versus face-to-face interaction (Hollingshead,

Mcgrath&O‟Connor, 1993). Whereas their model showed that face-to-face groups perform better

on the intellectual and negotiation tasks, there was no clear difference between face-to-face and

computer-mediated communication on generating and decision-making tasks (Hollingshead,

Mcgrath&O‟Connor, 1993). Therefore, it might seem evident that there is a clear connection

between the task complexity and the choice of technology – as if the more complex task, the

richer media will be used, aiming for the phone or in the best case scenario – the face-to-face

interaction, there is no clear facts that prove it.

Social presence theory disagrees with Media Richness theory and proposes that media richness

should be assumed as an objective dimension, that is to say that every type of communication

provides the same amount of richness predetermined by inherited attributes of the technology,

regardless of who is using it (Lievrouw, 2001).

Social influence theory argues that media richness theory is more normative and descriptive than

empirical. The theory argues that it is important to measure the individual perceptions of the

richness of various types of media rather than just rely on objective assessment (Lievrouw,

21

2001). There are many things that can shape those individual perceptions towards the choice of

media – so-called, social influence and interaction. Social interaction helps in developing shared

meaning in the workplace, which is important in shared patterns of media selection. That is to

say, the other group members can shape our perception of the different types of technology. In a

workplace, even though the situation would call for richer media, the influence of colleagues

would affect the individual‟s final decision about the use of media (Lievrouw, 2001).

2.6.Communication across language and culture

I have previously reviewed separately what the current body of literature has to say in the field of

the choice of media. In order to move on and answer the research question, it is now necessary to

proceed with the next element of the research question – the variance in culture and language and

its affect on team work. I will first look at the cultural dimensions that may affect team

communication followed by a retrospective on the linguistic barrier and its influence.

2.6.1. Cultural barrier

To understand the challenges within cultural diversity, it is first necessary to analyze the

influence of national culture on global virtual teams. I will provide this analysis, using

Hofstede‟s Model of Cultural Dimensions, Edward Hall‟s contextual theory and Gardenswartz,

Rowe, Digh, Benett theory of three cultural layers.

2.6.1.1.Hofstede Model of Cultural Dimensions

In my opinion, the Hofstede Model of Cultural Dimensions is a comprehensive model in

analyzing cultural dimensions and their impact on the workplace. From 1967 to 1973, while

working at IBM as a psychologist, Hofstede collected and analyzed data from over 100,000

individuals from 40 countries. Based on those results, Hofstede developed a model that identifies

four primary dimensions to differentiate cultures: power distance, individualism, masculinity,

and uncertainty avoidance.

22

Power distance shows the attitude of people towards inequality. This affects companies

significantly – the attitude towards the boss, the relationships of the superior vs. subordinate,

being proactive at work vs. following the lead, the importance of status and wealth

(Hofstede&Hofstede, 2004).

The next dimension Hofstede developed for better understanding cultural perceptions is

individualism. In the individualist society the interests of the individual prevails over the interest

of the group, and vice-versa (Hofstede&Hofstede, 2004). It is not a reference to the power of the

state or government but it reflects the power of the group as opposite to power of an individual.

In global virtual teams it means that people from collectivism societies appreciate working

within a team setting, and can develop a thorough feeling of disappointment and exclusion when

being geographically separated. This may lead to a further feeling of isolation and without

regular group input this affects productivity (Zakaria, Amelinckx&Wilemon, 2004). Employees

from those countries perceive their individualist co-workers as reserved and not as genuine team

players. Contrarily, for the representatives from individualist cultures, those colleagues seem to

be too “needy” or co-dependent (Zakaria, Amelinckx&Wilemon, 2004).

Masculinity is a dimension that represents the degree societies reinforce, or do not reinforce, the

traditional masculine work role model of male achievement, control, and power

(Hofstede&Hofstede, 2004). A high masculinity score indicates that a country experiences a

higher degree of gender differentiation. In such cultures, males tend to dominate a significant

portion of the society and power structure. In a low masculinity society there is a lower level of

differentiation and inequity between genders (Hofstede&Hofstede, 2004). In these cultures,

females are treated equally to males in all aspects of the society.

Uncertainty Avoidance is concerned with the level of acceptance for uncertainty and ambiguity

within a society (Hofstede&Hofstede, 2004). A country with a high uncertainty avoidance score

will have a low tolerance towards uncertainty and ambiguity. As a result, it is usually a very rule-

orientated society and follows well defined and established laws, regulations and controls. A low

uncertainty avoidance score points to a society that is less concerned about ambiguity and

uncertainty and has more tolerance towards variety and experimentation. Such a society is less

rule-orientated, readily accepts change and is willing to take risks (Hofstede&Hofstede, 2004).

Members from the cultures with high uncertainty avoidance can feel uncomfortable working in a

23

new, unfamiliar, technologically demanding environment. Establishing a clear set of rules and

guidelines may help the employees to overcome this challenge, whereas at the same time it may

be perceived by the representatives of low uncertainty avoidance cultures as a struggle against

innovation and creativity in a team (Zakaria, Amelinckx&Wilemon, 2004).

2.6.1.2.Hall‟s Contextual Theory

Anthropologist Edward T. Hall introduced his contextual theory, where in order to understand

communication preferences from a perspective of different cultures it is necessary to understand

the context in which the communication occurs. The main assumption was that even though it is

difficult to generalize cultures, however, there are tendencies that all members of a given culture

would present, thus dividing the culture or rather the communication within culture in two

degrees.

High-context cultures rely on the context, either the actual physical environment of

communication or an internalized social context, either the actual physical environment of

communication or an internalized social context or both, to convey either all or a majority of a

message‟s meaning. The messages can be elliptical, indirect and allusive. High-context cultures,

in which the context of the message is well understood by both sender and receiver, use the

context to communicate the message. People value a subtle and indirect communication style

(Zakaria, Amelinckx&Wilemon, 2004).

On the other hand, in cultures in which context is not assumed to be understood, messages are

explicit, direct and completely encoded in words. This are described as Low-context cultures, in

which the meaning is entrusted almost entirely to words. In this case, words are taken at „face

value‟ and the context is ignored. In low-context cultures communication contains less social or

non-verbal cues thus providing more direct and less ambiguous communication (Zakaria,

Amelinckx&Wilemon, 2004).

Members of low-context cultures put their thoughts into words. They tend to think that if

thoughts are not in words, the thoughts will not be understood correctly or completely. When

messages are in explicit words, the other side can act on them. But high-context cultures have

24

fewer tendencies to trust words to communicate. They rely on the context to help clarify and

complete the message.

2.6.1.3.The Three Cultures Model

Ultimately, to add the finally dimension to this research paper, not only national culture has

importance in the effective team communication. To expand this subject, in their study,

Gardenswartz, Rowe, Digh, Benett introduce the idea of different types of cultural influence.

They developed the model of Three Cultures. In this model, they assumed that only in a

combination of the three dimensions (see Figure 3) was it possible to reach effective team work

since when people are working together in a team they are expressing to each other all three

dimensions.

Figure 3: Representation of Three Cultures model (Author‟s creation, adapted from: Verghese,

2008)

As can be seen from the graphical representation, the three dimensions proposed by

Gardenswartz, Rowe, Digh, Benett are personal, national and corporate culture (Verghese,

2008). Personal culture forms an individual‟s perceptions, opinions and judgments. Personal

culture, while affected by national culture, has a powerful impact on team work. Personal culture

is what forms a person; it is formed throughout the years by upbringing, education, social

background, and life experiences. It is much more difficult to assess one‟s personal culture and

provide an adequate response, training, solution to improve it. Therefore, it is very important

when choosing the members of a GVT to evaluate the personality of the candidates in order to

ensure you have the right person for the job. National culture corresponds to Hofstede‟s

Corporate culture

National culture

Personal culture

25

dimensions, and there are ways to bridge the gap between country specific differences, especially

given the worldwide experiences of the new generation of employees. Corporate culture is

company specific. The Three Cultures model represents that ideally, understanding your own

self, global mindset and the right fit in the company, brings trust and effective communication in

the team (Verghese, 2008).

2.6.2. Linguistic barrier

The impact of the linguistic barrier cannot be measured in sizeable values. Instead the true cost

of the language barrier lies in terms of how it affects communication in a GVT. With growing

communication intensity, increasing linguistic diversity and increased scale of operations, the

language barrier emerges (Harzing & Feely, 2007). Language barrier is an independent element

that significantly affects the everyday effective communication in a team, because in fact, it is a

core element of communication itself. The language barrier in whole triggers a lot of negative

aspects – it may accentuate group division, grows uncertainty and suspicion, undermines trust

and leads to polarization of ideas, perceptions and perspectives, as well as difficulties in

spreading company information and achieving a corporate culture (Harzing & Feely, 2002).

However, with the overwhelming nature of communication, it is hard to imagine where in a team

performance this may bring some positive insights (Harzing & Feely, 2002; Chen, Geluykens

&Ju, 2006).

As noted by Harzing & Feely (2007) the meaning of language is undermined. Very little research

has been done to investigate the impact of language diversity on the MNC management. It is

easy to state that language is a problem in MNCs but researchers may not be able to go to the

root of this issue without answering the question: what is it in language that contains an inherent

problem (Harzing & Feely, 2007).

It is necessary to have the knowledge of culture and socio-cultural analysis because language that

we use differs from culture to culture. Understanding the culture and context requires the

knowledge of the language whereas language is an indicator of the society and the culture where

it is being spoken (Chen, Geluykens &Ju, 2006). So we can say that the language and cultural

diversity are closely related and it is therefore difficult to separate them.

26

The theoretical framework Harzing & Feely (2007) use in their attempt to present the language

barrier is social identity theory. When applying the social identity theory to the organization, it

implies that effective communication in MNC is not just a function of interpersonal contact.

People involved in the communication process do so partly as members of the organizational

group they belong to. So they derive part of their individual identity from the group they are part

of. For example, for English speakers language is simply a means of communication because

they are a part of the group anyway. However, in a European context, language is an essential

element of national identity (Harzing & Feely, 2007). Language is among the major factors to

categorize people as language is an acquired characteristic that provides a more powerful

indication of person‟s identity (Harzing & Feely, 2007).

When managing a multicultural team where many languages and cultures are present, team

leaders have to consider various factors. Even when the corporate language is English, for

example, and all team members seem to have a high level of proficiency, behavioral pattern may

vary.

Drivers of misunderstanding

Firstly, the meaning of the words does not lie in their own specific context but in the meaning

(Chen, Geluykens &Ju, 2006). What GVT should take into consideration is that different

languages have different understandings and derive meaning of the words used in different

contexts. The team leader must make sure and clarify that all team members understand the task

in exactly the same way, which is in line with E.Hall‟s contextual theory.

Secondly, communication is only as detailed as the speaker considers it to be enough (Chen,

Geluykens &Ju, 2006). Therefore, misunderstandings arise when the speaker thinks he has said

enough but the listener in fact lacks some vital information in order to interpret the message.

Speakers may use the ambiguous message to communicate some other meaning - what is said,

not always corresponds (Chen, Geluykens &Ju, 2006) A key assumption, rephrasing Chen,

Geluykens & Ju that implied meaning is often the most problematic in the global team context.

Speakers may in fact communicate more than they mean to, including some additional value and

meaning to the message which creates a cause for misunderstanding if the others are not aware of

this practice or language specifics. This principle is used mostly to avoid direct responses and

27

communicate unpleasant information. For example, Japanese people are avoiding direct response

and go instead for “maybe‟‟. For them, a “maybe” means a “no” and they are sure they are

communicating it to the other party, albeit in a pleasant manner. The understanding of the

implied meaning requires highly developed communication skills from both parties – not only in

terms of language skills and accuracy but also the general overview of the socio-cultural norms

and behavior in a given context and setting (Chen, Geluykens &Ju, 2006). Based on the culture,

the speaker and the listener are coming from – high or low context – depends on what meaning

they will get out of the communicated message. High context culture representatives will

understand more of the implied meaning and will also communicate more of the meaning in their

message unsaid than people from low-context cultures.

Thirdly, even if the managers have a medium or high level language proficiency, there is still the

high risk of losing rhetorical skills, including the use of humor, symbolism, sensitivity,

negotiation and persuasion skills. The lack of such skills often leads to misunderstandings

(Harzing & Feely, 2007).

Misunderstandings that arise due to language barriers may well escalate by the need to avoid a

loss of face (Harzing & Feely, 2007). The concept that originally started in China and Japan is

now widespread. It states that no one, especially senior management, want to be considered

stupid, slow or unprofessional (Harzing & Feely, 2007). Therefore, managers will often not

participate in the discussion and remain silent even though they have no idea what the discussion

is being about (Harzing & Feely, 2007).

2.7. Relationship between the choice of media and language/culture

There are two different factors to be considered in analyzing the benefits and limitations of

computer mediated communication in a GVT – those created by the technology itself and those

that arise by the use of technology in a dispersed heterogeneous team. Therefore, among the

benefits of the computer mediated communication is the possibility of working in and covering

different time zones, responding to the demands of clients in a 24/7 manner, as one of the

principal limitations of the use of e-mail is the reduction of social and nonverbal cues in the

communication process.

28

Cultural diversity, while bringing in a lot of positive elements to the workplace, also brings

complexities and can affect a team‟s performance. If there are communication disruptions or

distortions, the overall team performance decreases and results are not achieved. Communication

process fails by one of the two factors: it is either computer mediated communication or

intercultural diversity that creates barriers. Therefore, it is important to analyze the current

literature on cultural diversity, intercultural communication and e-mail as a means of computer

mediation. The choice of the appropriate ICT if used correctly can be an effective tool to help

mitigate those effects caused by team heterogeneity and mitigate intercultural misunderstanding.

Existing research mainly considers multiculturalism in global virtual teams and the choice of

media as separate issues. There is a lack of research towards the area that connects and defines

the choice of media according to our national or linguistic background. But there has been some

research in this area that provides some theoretical support for this connection to base

conclusions on.

2.7.1. Face to face communication

A study on face-to-face communication suggests that only 11 per cent of content was transmitted

verbally, with the remaining 88 per cent all transmitted in the form of eye contact, body

movements and facial expressions (Mehrabian, 1971, in Verghese, 2008). Mehrabian‟s study

showed the importance of human communication. The surprising results of the study conducted

in the 1960s suggested that 11 per cent is communicated in a form of words, while 32 per cent of

meaning is included in the tone of voice, emphasis and volume of speech. More than half of

message is however transmitted in the form of body language.

29

Figure 4: The content of a written message: verbal vs. non verbal (author‟s creation)

Basically, face to face communication is the best way of dealing with work in GVT.

This is of course not possible taking into consideration the very nature of a GVT setting. I will

therefore continue to see what the other alternatives for effective communication are.

2.7.2. E-mail mediated communication

Some authors (Shachaf; Lee; Kurtzberg, Belkin&Naquin) provide an overview of the

relationship between cultural diversity and use of e-mail as well as how e-mail as a mean of

communication itself reduces the cultural gap. Nowadays e-mail is the most popular ICT, the

current body of literature analyzes this relationship in depth leaving it apart from the phone and

other means of communication.

Shachaf offers a model which shows the interconnection within GVT and team performance, as

well as GVT communication as both intercultural and computer mediated. Analyzing the graph,

cultural diversity affects communication which in turn affects team effectiveness. The use of e-

mail in virtual work is due to lack of non-verbal and social cues, which counters the negative

effect of cultural diversity and miscommunication in team effectiveness. How and the reasons

why this is happening is described below.

Words, 11%

Voice, 32%Body

language, 57%

30

Figure 5: A model of intercultural mediated communication (Source: Shachaf, 2005)

Even though, according to Daft&Lengel, email is a rather lean, medium rich source of media

with slow feedback and response time that would therefore be not recommended, Shachaf in his

research shows how email can become a strategic tool in order to mitigate the cultural diversity

and language differences leading to overall team performance development (Shachaf, 2005).

When discussing the advantages or limitations of email mediated communication it is important

to acknowledge that there are benefits and limitations:

- Due to the technology itself, e-mail is a formal, slow media with low response time

compared to phone.

- Use of email in the intercultural communication (Shachaf, 2005).

The appropriate use of email can bring several improvements to the virtual group work:

- language accuracy;

- mitigates the effects that come from team heterogeneity that leads to different use of

verbal signs;

- eliminates nonverbal differences – everything is being said on paper, no implied meaning

(Shachaf, 2005).

Cultural diversity

CommunicationTeam

effectiveness

E - mail

31

A company can improve language accuracy in a GVT in two ways when using e-mail mediated

communication:

Firstly, in a way that e-mail improves the language accuracy itself, meaning with the wide range

of correcting and spelling tools, it is easier to create a grammatically correct message.

Furthermore, the team member can read the message before sending it and think of a way to

better express his opinion and thoughts because he has time to think it over, as compared to any

face-to-face mediation where the response is immediate. Additionally, email mediated

communication eliminates the impact of any accents due to non-native language proficiency of

the team members (Shachaf, 2005).

Secondly, email communication eliminates the negative impact of cultural diversity – vocal and

non verbal communication cues are altered. Since email is a short precise form to communicate

the message, it helps close the gap between high and low context cultures in a way that email

provides a somewhat mediate version of both – the style of the email shall be direct, formal and

polite. The email also eliminates the differences caused by different body language and other non

verbal cues because it is not being transmitted (Shachaf, 2005).

Lee claims that there are different patterns in the use of email in the Western world as compared

to Asia. The main difference is due to the Confucius tradition and emphasis towards the respect

for elders, hierarchy, and seniority, which is hindered with the use of the email (Lee, 2002).

2.8. Challenges in a GVT

Dube and Pare suggested two types of key issues in implementing Global Virtual teams: ones

stemming from human factor, people, and the other emerging from the technology (Dube & Pare

in: Zakaria, Amelinckx & Wilemon, 2004).

2.8.1.Human Challenges encountered in Virtual team work

It is important to understand that the perception of team work varies across cultures and

countries and the way team members see team work will differ from the national and

organizational background of the members (Zakaria, Amelinckx & Wilemon, 2004). Logically,

in the same team, members will not share the same perceptions on team work but they will differ

32

in their views of team structure, goals, objectives and processes (Zakaria, Amelinckx &

Wilemon, 2004). Therefore, it would be wrong to assume that the team work concept is the same

for all team members who have experienced team work before. Team leaders must face the

differences and learn how to mitigate them.

How to manage a conflict in a global virtual team

As stated before by various authors, one of the main disadvantages of virtual communication is

lack of the verbal cues that leads to more probable conflict development. But the challenge itself

is also the conflict together with the cultural differences as a conflict in its core is viewed

differently from different cultural backgrounds (Zakaria, Amelinckx & Wilemon, 2004).

Low and high context cultures communicating together may contribute to conflict emergency in

situations where in representatives of the low context cultures clearly separate people from the

issues or problems, while in a high context cultures, people tend to see it all as the collective

creating the more personal attitudes at the time of conflict, which is more difficult to solve (Hall,

1990; Zakaria, Amelinckx & Wilemon, 2004). The result, which would affect team work, would

appear as the more personal attitudes of the high context cultures which would unify the problem

itself and the other team members, leading to the confrontation and the feeling of personal insult

as opposite to low-context cultures that would perceive the disagreement as an integral part of a

knowledge sharing process and will positively. (Hall, 1990; Zakaria, Amelinckx & Wilemon,

2004). Another point in a conflict development is the different response time from the cultures

with low as compared to high context cultures. While low-context cultures respond to the

conflict quickly, directly and formally, high-context cultures will see that as the other party

pushing and asking for greater responsibility from the person, who will develop an even negative

attitude (Hall, 1990). Contrarily, the high context cultures would answer politely, without giving

a direct response or solution to the problem and therefore escalating the issue even more and

leading to inefficient team work and delays (Hall, 1990; Zakaria, Amelinckx & Wilemon, 2004).

It is necessary therefore, to elaborate on the guidelines or set of rules for conflict resolution in the

global virtual team, because if unresolved it may diminish intra- team trust, balance, and

negatively affect team cohesion (Zakaria, Amelinckx & Wilemon, 2004).

How to manage the cross – cultural differences

33

It is important not only to acknowledge those differences, but also be able to manage them,

which may impose a challenge. The absence of the verbal cues leads to difficulties when facing

representatives of high context cultures, where the importance is placed on social, nonverbal

gestures such as voice, eye contact, and body language. In those cultures people value more the

context and the meaning behind the words, rather than the direct straight forward message.

Therefore, it can raise difficulties in task completion, problem solving and decision making. At

the same time the lack of the verbal cues diminish trust and group cohesion (Zakaria, Amelinckx

& Wilemon, 2004).

Contrarily, for cultures with low context the value lies behind the direct, open and straight

forward messages. For these cultures, the use of ICT is not only encountered normally, it fits

within the framework of those cultures, with lack of social cues, it actually facilitates a better

communication mitigating the confusing dissonant cultural signals the low context culture

members would not be able to read (Zakaria, Amelinckx & Wilemon, 2004).

As can be seen, the cases are all different, and it is from utmost importance to know how to

manage the cultural differences properly, by allowing both sides to feel comfortable and benefit

from the collective group work.

How to develop intercultural competence

Zakaria, Amelinckx & Wilemon state that “the preparation of global team members,

individually and collectively, to effectively communicate cross-culturally is a prerequisite to

successful collaboration and is as important as the team‟s technological competency and skill.”

Intercultural competence is not only understanding the cross cultural differences, but being able

to mediate them. Team members should be able to face and solve the conflict, sustain team

balance and create an effective knowledge sharing culture within the team. The company should

also confront the problem of how to implement a global mindset in a company. Virtual team

work is an innovative new approach in the organization that implies organizational change most

of the time. So, if the team members, even though is restructured, their minds still possess the

local mindset and do not accept the “new rules of game”. This can impose major difficulties to

34

team work. The team members are not able to see the global scope of the company, which is

essentially in developing the globalized worldwide solutions (Zakaria, Amelinckx & Wilemon,

2004). A global mindset therefore facilitates the advantages of the virtual team – it is a

foundation for developing an efficient knowledge-sharing community with embedded open mind

appropriate culturally aware attitudes (Zakaria, Amelinckx & Wilemon, 2004).

2.8.2.Technology based challenges: how to guide the appropriate choice of media

Gibson&Cohen suggest that different type of media affect the team work to a certain extent. For

example, phone is a better media for reaching a shared understanding because of the presence of

more social cues, immediate feedback and both counterparties on the phone. E-mail in many

cases only creates the illusion of shared understanding because the information exchange has

been done, so people assume the information has been received the same way as the sender sent

it. Despite e-mail providing the possibility for extensive information exchange because of the

lack of social cues, the sender cannot validate whether or not the information has been

interpreted correctly (Gibson&Cohen, 2003).

In cases when face-to-face interaction is not an option, team members should know how to use

the media in order to bridge the cultural gap.

35

3. METHODOLOGY

I will now describe a series of factors and approaches that need to be considered, that will help to

guide us through and dictate the research process.

It is necessary to develop and work out the right methodology before getting into the research

rather than just “explore what is out there‟‟ approach without a single designed model acquiring

the methods and approaches which suit best for the purposes acclaimed and the aims set, as well

as the research question and the research topic. Researcher should be aware of the, for example,

data collection techniques and methods and whether they are appropriate for the theme chosen

(Bryman&Bell, 2007).

3.1. Methods of reasoning

First question to consider is: what is the link between the research and the theory and what is the

importance of theory in the research process? In other words, there are two ways of looking at

this – theory induces the data collection and analysis, and further conclusions are drawn – theory

is the base of research that has drawn the research interest and the answers to be looking for. The

alternative way is the use of the theory after the data collection and analysis. The former is called

deductive approach and the latter – inductive approach.

Deductive approach is the most common relation between the theory and the research

(Bryman&Bell, 2007). Deductive approach is linear, where one stage is following another as can

be seen in the picture. The researcher based on the existing theoretical knowledge deduces a

hypothesis to be either confirmed or rejected by undergoing the empirical part.

However, the research is not an easily controlled subject, and my view of the theory may lead me

to chose after the data collection and analysis. Several practitioners suggest using the more

inductive approach in the later stages of the research.

Using inductive approach, the research in fact induces the theory. In other words, the theory is

the outcome of a research (Bryman&Bell, 2007). And here, same as mentioned before, this can

not be a clearly and only induction process, therefore, the elements of the deduction are present.

There is no one best method; both strategies imply the elements of the other.

36

I will therefore, use a more inductive approach in the research process due to the facts, that first

the area of interest has been identified and further explored, and then the empirical part of the

research was undergone which gives n insight of implications for future research in establishing

the theoretical framework for this phenomena.

3.2. Nature of knowledge

Social ontology helps to define the nature of the knowledge. It deals with the question of whether

the social entities are objective and have a real reflection in the external life or it is the subject to

the researcher‟s own perception, knowledge and experiences (Bryman&Bell, 2007). One of the

main ontological positions is objectivism – the social phenomena are not in our reach and in no

way are affected y the social actors behavior, it is independent and separate from them. In the

thesis, however, the author is, of course, expressing his own opinion, and her interpretation of the

materials read and processed. Therefore, there is a need to adopt an alternative ontological

position, that would defend the subjectivity of the present work – constructivism. This means that

researcher, due to many reasons such as culture, character, education, own experiences and

knowledge will always present a specific version of a social reality rather then the definitive one

(Bryman&Bell, 2007). Knowledge is perceived as indeterminate (Bryman&Bell, 2007). The

constructive approach is suggested to be used for exploring the social phenomena (especially,

art, innovation, creativity), because this is the area of study which is difficult to measure or

define the borders straight.

Constructive approach is determining the use of hermeneutic method in the research process –

the point of view where the creation of knowledge can be seen as a continuous process – I will

create the knowledge based on her perceptions, which will be affected, among others, by the

answers and interactions with other members of the research process – this helps to build up a

bigger picture by collecting the little pieces of information and knowledge.

3.3. Data collection techniques

To select the relevant information it is important to look at previous research relating to similar

issues in determining what additional information has to be collected (Craig&Douglas, 2005).

The selection of the appropriate research techniques may lead to a series of questions. I had to

decide upon the most convenient tool according to the research question, the information needed

37

the dimension of the problem, and the accessibility to information. The two data collection

techniques are qualitative and quantitative techniques (Craig&Douglas, 2005). As suggested by

various authors, the complex usage of both techniques gives the most complex answer to the

research question and provides the fuller data (Craig&Douglas, 2005).

Due to the limitations and the topic of the given thesis, qualitative research will be used as the

principal methodology. It has been chosen because the qualitative research is able to provide the

details the quantitative research cannot, which is of a great importance when the topics as culture

and languages are being discussed. Qualitative research can provide the understanding of social

processes underlying the various management issues, as well as shows the problems in a real-life

context which helps in creating real solutions for the workplace. I will examine and try to offer

the real managerial implications and guidelines for working virtually, starting with the fact that

the main social phenomena explored is the social interaction – putting it simple – how do people

work in a team and how this work is affected by technology and the different cultural

background.

While choosing an appropriate research strategy, the different frameworks for the data collection

and analysis are present. It is also very important to assess the quality of the business research

itself. While validity, reliability and replication are mainly used to assess the process of

quantitative research, it is much more difficult to control and verify the qualitative research.

3.4. Research purpose

Yin suggests three different types of research: exploratory, descriptive and explanatory. Those

categories are not mutually exclusive but can complement each other throughout the research.

Exploratory research is a way of conducting research – exploring the new phenomena for a

better understanding. It may also test the feasibility of a more extensive study or define the best

methods to be used in an undergoing study. Exploratory research is broad and does not provide

an exact answer to a particular research direction. The objective of exploratory research is to

identify key issues and key variables.

Descriptive research provides a description of a given research issue. The objective of this kind

of research is to define the characteristics of a given phenomena. In descriptive research the key

38

variables themselves are known, but it is aiming at developing key relationships. Descriptive

comparison is very useful in comparing and providing useful insight into the hypothesis

formulation. In order to provide these characteristics the following questions might be asked: to

whom, what, when, where and how. Research calls for accuracy and minimum error due to the

detailed information needed (Zikmund, 2000).

In Explanatory research, both key variables and key relationships are known. It is the aim of the

research to give the explanation or link those relationships.

I will use the explanatory research method based on the fact that the key variables and

relationships are defined but it is necessary to describe and link these relationships – such as

culture, language and the use of computer mediated technology. According to Yin, the

explanatory study is trying to answer the question “how?” Nevertheless, to paint a broad picture,

I will also add the other research methods as exploratory in order to define or first explain the

key variables such as culture, language and technology separately before linking it with team

effectiveness and the choice of media.

3.5. Data collection

Both primary and secondary data was used. The secondary data with its easy access and low cost

is the most popular source of the information. Its easy access is possible by the increased use of

electronic sources. The secondary data included existing literature on the global virtual teams,

workplace diversity, media richness theory and related topics, everything that could be related or

helped to further understand which difficulties and challenges the multinational virtual teams are

facing and how can the existing body of literature explain it. Secondary data helps to reach an

overview of the area and get an in-depth understanding of potential challenges.

When the secondary data cannot give the full overview or help answer the research question, the

primary data comes in – the information particularly and specifically interesting for the chosen

topic and the research question addressed (Ghauri&Grønhaug). There are several means of data

collection – experiments, surveys, observations and interviews (Ghauri&Grønhaug).

The primary data in a form of semi-structured phone interviews was collected over a period of a

month at three different locations – Germany, Sweden and Spain. The respective locations were

39

selected by the management, who identified them as the best sample of opposing work and

national cultures in terms of the project aimed at exploring the virtuality in a multicultural team.

By interviewing employees from several locations, it was possible to see more aspects and

differences between the locations.

An interview, as a technique of data collection, provides an opportunity to express the

respondents‟ reality rather than my perceptions and views, and is therefore more efficient than

observation, for example. Semi-structured interviews were chosen because it allowed an in-depth

view into the subject in a structured way. Semi-structured interview gives a researcher more

freedom to explore interesting points or issues that were probably missed out rather than a

structured interview with somewhat predetermined answers and no possibility to go into a more

interesting relevant topic. The semi-structured nature of the interview still calls for an interview

guide that helps to make the interviews consistent, valid, replicable and comparable, enough to

draw conclusion, compare and make a sample.

3.6. Interview methodology

Recorded telephone interviews using a semi-structured interview approach will be conducted.

Several themes will be included in the interview covering the different aspects and relationship

between culture, language and ICT.

The order of the questions is not critical and may be changed to follow through on directions

indicated by the responses of the interviewees to previous questions. The guideline is that all the

topics interested to the research are answered in the course of the interview.

The time for each interview is estimated at 40-45 minutes and the interviewer will be in a

dedicated room to prevent any background distractions. The initiations are sent out to the

interviewees to ensure that the time slot is booked and there is no distraction for the

interviewees.

In the beginning of the interview, participants will be informed about the purpose of the

interview, the structure, confidentiality, consent and recording methods.

In the end of the interview, participants will be debriefed about how the interview content will be

utilized and confidentiality retained regarding the identity of the individuals. They will then be

thanked for their participation and time.

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1) It is necessary to establish and locate the position of the interviewee in the company.

Therefore the question about the respondents place in the organizational structure is asked. It is

important to understand where in the structure the interview is located in order to be able to see

the context of their answers.

2) After this a question is asked about the challenges in the everyday work environment. What

are the challenges you are facing in your daily work? What are the challenges in your position?

What are the challenges in virtual communication with other team members? Is it country or

language specific or does it have a general tendency?

3) As the challenges emerged, it is possible to guide the interviewee in the area of the use of

different technologies and the overall pattern of communication. The following questions can be

asked:

How often do you meet face-to-face and how often communication by phone? Is there difference

between using the email and phone?

When and how do you decide when it is better to use phone?

4) It is now possible to move on and discuss what kind of information can be discussed via

particular media, task complexity matters etc.

What kind of things/knowledge can you discuss via phone…?

5) If it emerges, then asking questions to see if this phenomena is country specific or overall

trend.

Countries where using more mail or phone?

6) Moving on to the perception of the people as being part of a global organization with the

global mindset vs. the previous system with local organization. How do employees perceive

themselves? Do they feel like they are part of the global scope or do they think they should

accomplish local targets? Do they see integration on the European level? Is the organization still

based on the local units principle? Is working virtually perceived as a part of a local routine?

When people work cross functionally, do you see the problem in allocating and managing time

on cross functional vs. local responsibilities?

7) Culture and its affect on the communication- does your choice of media depend on the country

you have to communicate with? Have you noticed the differences in communication with

Germany/Denmark/Spain/Finland? Do you feel people in Sweden and Germany share your idea?

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8) Is language an issue? Is the combination of culture and language making working virtually

even more challenging? Which countries do you feel have this problem?

9) Final discussion, asking the personal feelings of people within their cross functional and cross

regional responsibilities. What is the most challenging part? What are the managerial/leadership

suggestions for improvement of communication within the team?

3.7. Participant selection

In order to understand the challenges in virtual communication and collaboration that the

managers and employees in Aponar face a series of interviews have been conducted with the

Supply Chain, Business Group Plumbing, Business Group Indoor Climate including managers

and key personnel. The interviews will be conducted face to face in the following locations –

Denmark, Finland, Germany and Spain – as a result having 9 interviews of one hour length. The

interviews will be focusing on challenges in the virtual collaboration process. Particular

countries have been chosen due to their relative differences from each other in order to get a

fuller picture of the process in the company. I have chosen to enclose as appendices for this

paper three most interesting interviews, all conducted face to face with participants from three

different countries – Denmark, Finland and Spain.

3.8. Ethical issues in research

The topic of ethics in the business research brings up a discussion on the values throughout the

research process. There may be various concerns such as:

- How should the researcher treat the interviewees;

- Which activities the researcher should or should not engage in while interacting with

interviewees (Bryman&Bell, 2007).

Ethical concerns may arise particularly in several areas such as harm to the involved party;

informed consent; invasion of privacy, and deception (Bryman&Bell, 2007) Several

organizations and institutions of managerial research have worked out a code of conduct and

professional principles to apply during the research process.

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In framework of present paper, I have been thoroughly thinking about the ethical issues. First of

all, the name of the company in the study is being replaced by another, random name in order to

keep the privacy and do not allow the others give an insight and use to their own advantages the

practices and examples of what is going on in a company. Moreover, as stated in the beginning

of each interview conducted, the interviews are anonymous, only the position of the respondents

is revealed for being important as a context to the ideas interviewees share.

3.9. Source criticism

There are various issues that are subject to being criticized and I have fully acknowledged them

and taken them into consideration during the research process.

The interviews were conducted in English, which is not a mother tongue for all the participants

of the interviews. Therefore, the issues of misunderstandings due to the lack of language skills

arise. Interviewees can also be shy because of their language skills, or the language barrier may

arise. Less information may be obtained compared to the possibility of conducting interviews in

the mother tongue.

Interviews were conducted virtually, e.g. by phone, excluding the ideal option of face-to-face

interviews, which was impossible due to the tight schedules of the involved personnel. People

may feel uncomfortable by talking on the phone, without seeing a person. The issue of trust may

also arise, with people wanting to finish the interview faster and without going answering the

questions posed to them in-depth. It is also more difficult to transmit the mood, voice tone etc via

the phone, so it is possible that the full spectrum of emotions was not shown.

During the transcription process, there is always a risk of misunderstanding meaning or words.

All the interviews were recorded, in some cases the quality of the recordings was bad due to the

technological issues or background noises, multiplied by the different accents and it is sometimes

only possible to guess the meaning or the words missing, which were replaced by the closest and

appropriate words I thought was missing in the particular gap.

Ironically, the same issues that may have arisen during the transcription process, are subject of

the thesis and the problem in the company – the choice of appropriate technology in a

communication virtually, which problems or effects it causes and how, particularly, language

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skills of an individual affects his overall performance in a team, respectively, a bright

professional with innovative ideas might not be able to transfer and explain those ideas to his

fellow colleagues over a phone call because he will not feel confident due to his lack of language

skills multiplied by not being able to see his colleagues face-to-face.

Data collection was done as a part of a larger research project, therefore, the sample was chosen.

This means that some other possible details were omitted by choosing not to include all the

interviews. The amount of empirical data was extensive with interviews covering a large

spectrum of questions regarding the wider research project.

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4. EMPIRICAL PART

4.1. The company: background information

The history of Aponar dates back to 1918 when the carpentry workshop in Lahti was founded. In

the early 1920s the company opened its first store and factory. In 1965, the company entered the

plastic pipe industry besides producing furniture and household appliances. The

internationalization policy in the company began in the 1980s with several acquisitions and

expansions in the Nordic countries. The company mainly focused on pipe systems for municipal

engineering and building products, growing rapidly during the 1980s and, as a result of several

acquisitions, extended operations throughout Western Europe. Aponar entered a new field of

industry, hot water pipe systems, by purchasing two of the largest companies in the field, in

Sweden and Germany, and then expanding to North America. After the acquisition of Aldyl gas

pipe operations in the early 1990s, Aponar's business activities had reached South America. In

the 1990s, Aponar reshaped its activities and focused on plastic pipe operations which became

the core business of the Group activities. It was also the beginning of a new era of development

as the company ran restructuring and divestment of the company's other business units, focusing

solely on the core business – plastic pipe production, at the same time investments were made to

strengthen the position of one of its subsidiaries – Aponar. In 2000 company's name was

changed to the Aponar Corporation.

Facing new challenges, in the first decade of the new century, the company dedicated its efforts

to strengthening its market position in the core businesses and pursuing a market leader position

by introducing the “one unified Aponar.” As of 2008, Aponar divested its infrastructure business

in the UK and Ireland, nowadays, the infrastructure offices can only be found in Scandinavia.

The company is moving towards further centralizing its activities. The year 2008 was marked as

a year of change in the company's organizational structure: from the region based organization

(with no cross-cultural management and marketing) to a pan-European organizational structure

facing challenges to develop and implement an efficient hard working, cross-cultural and cross-

functional team. The groups‟ HR manager defends this constant need for change in the company:

45

“There will never be a situation of 0 level frustration. There is certain amount of what you need.

You need this constant change and they respect that. That‟s what keeps us competitive. We sort

of revisit the organization –see how can we improve, how can we modify, how can we do better,

how can we get better.‟‟

(HR manager, Denmark)

Since 2003, Aponar‟s corporate strategy has rested on three main pillars: growth, operational

excellence and the corporate brand. In 2010, the effects of the global economic recession forced

changes in most markets. During the recession, Aponar significantly improved its operational

efficiency by reorganizing and streamlining its supply chain. From that point on, Aponar‟s main

strategic objectives have set up to recover demand and seize opportunities for future growth.

As of 2012, Aponar has around 3,200 employees in some 30 countries worldwide who are

working closely with other actors in the industry – in order to provide the best plumbing

solutions and indoor climate systems. Presently, Aponar has operations in over 30 countries with

10 manufacturing facilities in four European countries.

4.2. Organizational Structure

Aponar is a very complex organization. In order to better understand the challenges and

difficulties of implementing global virtual teams into the company context it is necessary to build

an understanding of what the company represents as a whole and what is its organizational

structure.

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Figure 6: Aponar‟s structural organization (Source: company‟s website)

The company has some main functions that are necessary for the overall development – there are

brought to the group level such as Finance&Administration, Supply Chain Management,

Development&Technology, Legal Services, HR.

Besides that, the organizational structure has three main pillars:

1) Infrastructure solutions and pipe systems in the Nordic countries (Sweden, Norway, Denmark,

Finland) and Russia and the Baltic countries. Infrastructure solutions include water and sewer

pipes and wastewater treatment systems for non-urban area. These particular infrastructure

solutions are being used in order to transport and safely store water and sewage. Aponar‟s

offered solutions offer to reduce the installation and operation costs of the product.

2) Building solutions (indoor climate and plumbing) for the North American market with

production sites placed locally. Indoor climate solutions include heating, cooling and ventilation

solutions that control the indoor temperature and air quality, reducing the costs and energy

consumption. Aponar‟s plumbing solutions are hygienic, corrosion resistant and have a long life

Group functions: HR, Communications, Technology, IT, Risk Management, Finance and Administration, Supply Chain Management, Legal Services, IR

BUILDING SOLUTIONS - EUROPE

Sales and Marketing

Central and Eastern Europe, Asia, International Sales

North, South and West Europe

Offering and Business Groups

Indoor climate

Plumbing

Product and systems development

Sypply chain

BUILDING SOLUTIONS - NORTH AMERICA

United States of America

Canada

INFRASTRUCTURE SOLUTIONS

Sweden

Norway

Denmark

Finland

Russia

Baltic countries

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cycle and have other competitive advantage comparing to other plumbing solutions providers –

easy installation, leak-proof connections and high tolerance of fluctuations in water quality.

3) Building Solutions for Europe – that includes business group organization for indoor climate

and plumbing and sales organization on the European level that is divided in four regions -

North, South, West, and Central and Eastern Europe.

The scope of the current research is the Organization of Building Solutions for Europe.

4.3. Current position of the company on GVT

First of all, Aponar recognizes and identifies the need and the use of virtual teams. HR is

responsible for communicating the guidelines or a code of conduct to the employees that are

involved and undergo work in these groups. HR has currently elaborated on two different

guidelines for working virtually – one for the managers and the other one for the employees. The

guidelines are a very specific set of recommendations that are aimed at helping people to bridge

the gap of working virtually.

Main points of the guidelines for managers cover:

Clear and agreed target setup;

The pattern of communication;

Meeting frequency;

Necessary support;

Use of technology.

The presentation aims at setting a clear communication context – clear, agreed targets that are

accepted by everyone, weekly communication, calls to listen to whether there is nothing to say or

the employee is out of ideas, meeting the employees every second month in a face-to-face to

meeting, experience sharing and feedbacks, keeping the time limits, use of all the technology that

is at the hand, especially phone if difficulties arise.

Guidelines for the employees:

Clear targets – tasks should be written and agreed, if not employees should communicate

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this to the manager to make sure the targets have been understood and no implied

meaning is involved to avoid misunderstandings;

Communication pattern – communicate weekly, let the manager know if there are any

problems, issues or if you simply do not understand the tasks, respect the time frames and

deadlines, fast response and feedback;

Meeting frequency – no fixed meeting frequency with the virtual team members, but the

rule of the meeting is to talk with their manager face-to-face at least every second month;

Support and training/coaching – be prepared for every online/offline meeting, be

proactive and seek for support when needed, let the manager know when the problem

arises or there is a need for additional training, sharing of experiences;

Use of technology tools – focused and detailed messages to avoid implied meaning,

encouraging phone communication when nothing to say or out of ideas, use of multiple

communication tools such as emails, share point, Coach, calendar, intranet, net meetings,

and phone.

This is the current policy of a company working towards a GVT. It is important to acknowledge

the measures that have been taken in order to be able to see where there is room for

improvement.

4.4. General observations

As I mentioned before in both research limitations and the source criticism, I have encountered

several interesting observations that I will share below.

As the present study itself explores the variance in ICT and knowledge the same could be applied

towards the final results, contents of the interviews. That means that the phone interviews were

shorter in length, the answers were more general, shorter and many times consisting of a simple

yes or no, which respondents were asked to elaborate on. As opposite to a face to face interview,

where there would be a full pace discussion with both parties involved and elaborate, long and

saturated answers that would provide a full insight into the company‟s work.

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The second interesting observation from the answers is linked to the position the interviewee is

currently holding within Aponar. The higher the position of the respondent (for example, the

VP), the more general the answers, more diplomatic and managerial orientated, covering the

structure of company as such, talking about interaction between different units, different levels

of organization etc. When the job position was mid-level, the answers were more practical

orientated for example, the communication pattern, the choice of media depending on the

country of communication etc. This can also be seen as an example of the different cultures

present in the company. The top management of this Finnish company is mostly Finnish with a

relatively medium uncertainty avoidance index (59 as opposite to Germany‟s 65 or Spain‟s 86).

Therefore, and adding experience, top management is used to working in a challenging, new,

innovative environment or testing out new organizational structures.

Thirdly, it was evident from the interviews that all the respondents acknowledged the presence

and importance of virtual team organization. All of the respondents said they developed some

kind of pattern or communication schedule regarding their own teams.

4.5. Language issues in a virtual team organization

Linguistic challenges in Aponor may arise from two different sources. One is challenges

connected to the language proficiency of the interviewees. Meaning the level of the language is

not sufficient to be able to provide a high level discussion. The second challenge is the reflection

of the cultural dimension in the use of language where people even with a high level of language

skills are not able to establish successful communication by coming from different cultures.

4.5.1. Language proficiency

The corporate language in the company is English. Initially for a couple of years it was Swedish,

but with further expansion, the company switched completely to English. In some regions it is

still common practice to communicate in a local language, for example, Spanish in Iberia and

Swedish in Nordic countries. Even so, English is evenly distributed across the company.

Moreover, as VP Warehouse&Logistics from Finland shared:

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“Originally, it was Swedish for a couple of years. Then it was changed to English. I don‟t see

any big problems. Because that means that you must speak English. When you have a meeting, it

is English. Then of course, when I go, for example, in Sweden or Spain or Germany, the point is

that I expect that they speak so much English that we can discuss. Then I, of course, don‟t expect

if we go to warehouse, they speak. That‟s quite ok. If you want to be in a global company, you

must have a common language. Otherwise it is globally impossible.”

It does not come as a surprise for a global workplace, where one of the main attributes apart from

the professional skills, is indeed English skills. Still, Aponar is not standing still, but encouraging

the employees to pay attention to this important skill. One of the company managers see their

aim as being to: “empower all the people who have this kind of role to improve the English

(writing, listening) skills” (VP BG Plumbing, Spain)

Generally, there is no problem with countries where the level of English is traditionally high or

for historical reasons such as Sweden or Finland. Some of the interviewees mention the Iberian

region, but claim that they are actually surprised by the amount of work done and the significant

improvement in level of English in this area:“I think that has improved a lot. For example, in

Spain they have been very eager to learn English. That‟s good.”

Aponar is also encouraging people, with the help of trainings, language classes and the

multicultural setting itself as a way of practicing in everyday life. An HR manager from

Denmark says: “There is a lot of English training being offered in Aponar, much has been

done.”

In general, all the participants reported that there is no direct stereotypical problems with the

language proficiency involved as one might think. People acknowledge there is differences in the

language skills, hence the Spanish accent or the ability of people to speak fast simply because it

is the characteristic of their language, but it is nothing the people cannot deal with:

“I have been quite impressed with effort they make in Iberia. They have a strong accent and it

might be hard to even understand what are they saying some time but they are working with that,

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they are going to school during office hours and having trainings and it is not so bad. It is not so

bad. But of course, the more the better.”(HR manager, Denmark)

People try to understand each other despite the accent, hence all of them actually speak

„‟European English‟‟ – an interesting term defined by one of the participants. Therefore it is

easier to understand each other – people for none of whom English is their mother tongue:

“For many people it easier to talk English with European people. There is also this term that is

used “European English”. There are those 3 kinds of English – British, American and European

English. Then for European people it is easier to talk with Europeans, for some Spanish people

it is easier to talk with Germans rather than British. ” (VP BG Plumbing, Spain)

On the interpersonal level is not a problem. As VP BG Plumbing from Spain states:

“At the end of the day we know each other and their level of English‟‟

4.5.2. Language as a barrier in a communication

Language in co-located units

The respondents agreed that while using English as a corporate language they still use the local

language when talking to their counterparts in regions such as Spanish in Iberia or Swedish in

Nordic countries or even use of German when the communication is held between the

counterparts in Sweden and Germany, for example.

Language in dispersed units

The problem with use of common language arises when people have to go outside their comfort

zone and talk to or address someone they do not know or they lack trust or experience of

working with. In this case, the cultural dimensions and contextual theory appear even stronger..

Then appears the issues that Chen, Geluykens &Ju (2006) pinpointed – the meaning of words

does not lie within the words themselves but within their interconnection to other words; as well

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as Hall‟s contextual theory in a form of ambiguous messages that may interpreted differently by

representatives of different low or high-context cultures.

Use of language

Important aspect in using English as a common language widespread is self consciousness about

one‟s language skills. It is the phenomenon that needs further investigation – what makes people

so language conscious. Various respondents shared experiences where they, even with good

language skills, faced problems with communication, were shy or not feeling comfortable as to

express their ideas which they would freely do in their native language:

“Maybe it is a fact that in many cases with my German guy there, that he sounds 10 times more

intelligent in German than he does in English. When you don‟t excel in language, then you come

across as unintelligent. And maybe that‟s where the fear factor is lying behind.”(Business

Development Manager, Denmark)

The uncertainty can be explained if understanding the Cultural Dimensions of Hofstede. It is

evident that the employee from Germany represents the high uncertainty avoidance leading to

low tolerance of ambiguity and excelling for a strict, rule-orientated work organization.

Therefore, if there is any chance of misunderstanding, the German employee would try to

minimize it – in this case speaking German and avoiding English – which for him particularly

works as an uncertainty avoidance. Also Hofstede suggests that high uncertainty avoidance can

lead to people being uncomfortable in working in a new, innovative environment which might be

the case here – not only communicated within the local unit, but going on a next higher European

level with the new organizational structure.

Many of the interviewees agreed that in some cases, when there are discussions or online

conferences, people who feel unsure about their language skills, prefer to stay quiet, even though

they might have some very valuable input. It is even more difficult to manage the discussions

that involve more sensible topics.

For example:“When you talk about the technical details then the different levels of English is not

so important, because it is more concrete data, real facts and then it is easier.”

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However, same interviewee agrees: “If you are talking about the loyalty problems or perception

of customers, then it is more difficult to explain your feelings, your thoughts and it is also more

difficult generally to discuss about it.”(VP BG Plumbing, Spain)

The use of common language is also affected by the professional language of people. Even

though people are proficient in a language (in this case English), they will trust the decision

making process to another person who is more familiar with the for example technical details as

opposite to the marketing personnel:

“The other problem is the different background people. Basically speaking, the marketing guy

will say in the end of the day “Technical guys, I will trust you on these issues, because it is a

technical issue.” But there are always a small area ”grey area” where are discussions, for

example, claims. Technical guy will come up with technical solution, very technical, detailed

instructions, but the marketing/sales guys can say “this is technically perfect, but it is not

commercially valid.” The installer will never follow this instruction, you have to go on the field

and understand what they are asking for etc. “(VP BG Plumbing, Spain)

Main points:

In general language proficiency is not an issue itself, meaning people can understand

each other relatively well, because being an international company, every employee is

mastering the language at a certain competency. People who know each other, or work

together, they already know the level of language of the others, and they do not feel

intimidated to talk, they acknowledge the accent of each other. This is what is happening

in the interpersonal level between two employees.

Aponar is investing a significant effort in language trainings, especially for the areas that

are „‟known‟‟ for their lack of English proficiency.

Language when combined with the Hofstede‟s uncertainy avoidance dimension may have

an impact on the use of language. Cultures with higher uncertainty avoidance may tend to

avoid to use English even when their skills are good to avoid the misunderstandings.

Language affects knowledge sharing. In the innovative companies, as Aponar is, the main

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part of the knowledge is tacit, meaning it is hardly transmittable via a simple written

message due to the fact that tacit knowledge includes much more than language symbols.

People feel intimated to use the language to share the ideas, especially via email or phone

due to the lack of non verbal cues.

4.6. Cultural dimensions in a GVT

Even though the body of the literature has previously investigated the culture and its affects on

the communication, the findings of the interview were quite surprising. First of all, it was clearly

to see Gardenswartz, Rowe, Digh, Benett‟s Three Cultures model present, surprisingly the

national culture not being the main affecting factor. What was a discovery is that, actually in this

particular company, what matters the most and where there are the most serious problems is the

corporate culture, or so to speak, the lack of it whereas the national culture does not seem to be

such a big issue:

“I don‟t see that either, I see it more as a Global vs. local change more than a national

perception. That‟s my perception anyway.” (HR manager, Denmark)

4.6.1. Personal culture

In the end of the day it is important to acknowledge to a big extent individuals own experiences

and background – social, occupational, educational etc. As stated in the literature review it forms

a big part of the successful result of all three cultures working together. The successful

implementation of the virtual mindset stems from people historic position in the organization and

previous work experience. VP of Indoor Climate Business Group from Finland confirms:

“I would think that dominant factor is where in the organization have you traditionally been. The

second most important factor is the background working culture, overall working culture and all

the universal cultures in the country where you happen to been located where you have grown

up; and third is age.”

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4.6.2. National culture

First of all, almost all of the respondents, with some small exceptions or remarks, confirmed that

the cultural problem is actually not there. People are culturally aware on the general level:

“I actually don‟t see it as a big issue. From what I got it…it is not that he is a German or she is

a Swede it is not our biggest concern by far.” (HR manager, Denmark)

Over the years people have learnt to cope with the intercultural communication as such. Almost

all of the employees have had training on intercultural communication or heard about Hofstede at

least one in their work life:

“This with adapting to cultures is becoming less and less important. I remember when I was

studying and we were going through these classes about dealing with all the cultures and I spent

once a month in China on a project remember to give a business card with 2 hands and in Italy

they don‟t drink cappuccino after… All the things that you need culturally to adapt, I don‟t find it

are not so important, because all of us are working in the international environment and first of

all we know people are very different and, we don‟t take it for granted. I don‟t think there we

need to do a special adaptation. Of course you need to be polite and talk to people in a nice way,

but it is universal, with this language issue – it is very important to read people face to face to

build a bond between them.” (Business Development Manager, Denmark)

At the same time, it was evident from the interviews, that the culture aspect should not be denied.

It is the stereotypical characteristics that people learnt to deal with such as giving the business

card with two hands, or other stereotypical actions that would be expected from representative of

a particular country. On the cultural dimensions level, the impact of culture appeared to be huge

on what and how we do.

The important conclusion supports Hall‟s contextual theory and Chen, Geluykens &Ju (2006)

elaboration from that. All respondents made clear that in no way during working virtually we

should forget as such that all the people are different, not taking for granted that people think

and understand the same way as we do. It is very important to express yourself, to make it clear

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for every single participant, especially in a virtual context in order to avoid misunderstandings

and implied meaning of the message. Various interviewees mentioned that it is extremely

important not to assume that people understand or see the things same way as you do:

“Maybe what to me is green for him can be yellow and then the communication is destroyed

completely. Completely.” (Iberia Quality, Environment, LPR Manager, Portugal)

Or as the manager from Spain states:

If I have an idea to sell the product in a way, maybe it is not a good way to sell it in Germany or

Sweden, I think sometimes we don‟t realize but we are talking about very different things.”

(Spain)

Various participants suggested that the important aspect of the national culture itself is not in the

interpersonal relationship, but should be paid attention in a sense that the employees should

always think about the country, the market they are developing the product for and take decisions

according to the culture of the client‟s country:

“But most importantly, we must focus on the client and his culture and not only take decision

thinking with our philosophy. So, for instance, this claim, if it is in Portugal, so every decision it

should face the requirements of the Portuguese clients. Why? Because the clients in Portugal are

different from clients in Spain, from the clients in France, from the clients in Sweden, you know?

Why? Because we are all different, culture is different. So the same claim, the expectations of

solutions of the claim in Portugal are different for the same claim in another country. We must

understand what client are we talking about, we must be open-minded, reach a compromise.”

(Iberia Quality, Environment, LPR Manager, Portugal)

His colleague from Denmark adds:

“Sometimes it is difficult things to communicate inside the group, our team – because I meet

people from Finland, people from Germany, people from all over Europe. So sometimes the

culture is different, different ways of working, sometimes it is difficult to work with people. They

don‟t think the same as you and they are used to different. If you are from Sweden, you are used

to Sweden market. If I work in Spain, I am used to the Spanish market. Sometimes we don‟t

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realize that the markets are totally different in each country […]It is smth to do with having the

right message across and making sure that this way we don‟t fall in any of those traps.”

Main points:

Over the years people have learnt how to deal with the different cultures on the surface –

the study book cases, but it is in depth, actually the common sense how to deal in one or

another situation. The most important is to be polite, intelligent and sensitive – then you

will be right in any culture.

Various participants confirmed that it is important though to realize ones national

identity, cultural background when talking about the decisions made, the solutions

provided or applications develop for one or another market which was not the focus of

the present research.

The most important thing to learn is simply to understand that every and each employee

is different from another, and do not take for granted the communication itself. It should

be the responsibility of both parties. Both parties should make sure the message

transmitted (no matter if that is via phone or mail) is precise, clear and understood the

way it should be. As participants repeatedly stated do not assume that the person sitting in

Finland will think exactly the same way as someone in Spain, for example.

However, as said above, the stereotypical differences are diminishing. Not even the

groundbreaking Spaniard stereotype takes place. In various examples and questions,

respondents stated that it is not like that anymore – for example, Spanish people used to

hierarchy, Spanish people being late or lazy. It is slowly becoming a myth.

4.6.3. Corporate culture – global vs. local mindset

The more interesting discovery lies behind the other dimension of culture – the corporate culture

so to speak or perhaps lack of it. There is the room for the improvement and perhaps the root of

the problems of misunderstandings and lack of virtual mindset from what may seem in the

interviews. The history of the company dates long time back. With the organizational changes

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and switch from the local units to a unified, global and centralized organization, at some point,

the employees get lost in the middle of those changes. They are used to their previous local

structure, “local kingdoms” as one of the managers referred to:

„‟Yeah, I would say one two of Eastern European countries and our International Business is

also quite standing alone, including the hell of countries. It is a bit more difficult.[...] : It is

more, lets say, a bit of a local kingdom.[...] : It is still local thinking, not thinking a bit more

global…‟‟ (VP Integrated Business Management, Germany)

Employees do not understand the change of going global because seemingly the work process

stays the same for them at first:

“Many came from the inside; it is my perception – local function, national entity. And now they

woke up to a new reality a couple of years ago. It was a process that was underway but that was

sort of a big step that was taken 3 years ago. We are still struggling.” (HR manager, Denmark)

There is the „‟identity crisis‟‟ in those local organizations and overall across the company as

various participants refer to as how they should see themselves – part of a local unit, regional or

European level:

“What are we now? Are we Danish, are we Scandinavian, are we European, what are we really?

[…] Can you feel connected to the community that is so large where you are just a very very tiny

piece?” (HR manager, Denmark)

Or the identification of the activity of company as such:

“It is also the perception – what are we? Are we an innovative company or are we first of all like

a company that buys products from other products and then sells to other companies.” (HR

manager, Denmark)

Employees do not know or see the vision of the company in a global aspect; they only see

themselves as a part of the local organization. They do not encompass the global scale of the

organization. This kind of local thinking stands in a way of successful implementation of virtual

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work organization as such because people do not understand why their manager is not spending

all of his time dealing with local needs. It makes it more complex because the local employees

do not understand, for example, why their boss can not answer them straight away:

“I think for the local people it is difficult to know that you are not working only for them, that

you are working for the whole Europe.” (Applications Manager, Spain)

Her colleague from Denmark agrees:

“For some especially those in sales units, they are not used to work in international

environment. 80-90 % of their time they are interacting with locals. It is only for us in the

business group that we are scattered all over the place that it is kind of natural for us.”

Respondents have also marked the direction of development in the future, requesting that the

organization will expand onto European level even more in the future for more global span:

“But most likely organization 5 years from now will be even more global, even more cross

functional. […]We need some maturity in an organization. A lot of effort being done, but if we

could get some good ideas about how to move it step forward. I also see, that‟s a gap between

local/global, local European whatever it is, it will be ongoing for some time, but we need to

bridge that gap somehow.” (HR manager, Denmark)

Main points:

Aponar is a global company on it is way from being completely local fragmented

organization to a global modern and standardized MNC with a global mindset but local

expertise.

Still, for many employees the new implemented matrix organization is not exactly clear.

Employees are confused and do not know who is responsible for what and who should

they report to.

The employees who are working on both local and international level fully realize their

responsibilities and the slope towards a global organization. The employees from the

“local kingdoms” work for the local unit, they do not see this global embeddideness.

One of the main challenges of the managers within the company is to bridge this gap and

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raise the global awareness. Make employees realize they do not work for the local targets,

but they work for the reaching the local targets which is the part of a bigger picture. This

is what must be implemented, the key piece of information missing.

4.7. Managing technology

4.7.1. Communication pattern: overview

As for how to manage the technology and the means of communication in such a multilayered

multinational context, each of the respondents had his own little principles or guidelines on how

to act or perform in one or another situation. Respondents summed up that it is very difficult to

state the right proportions in this communication that they are mostly following their gut feeling,

their inner voice on the path towards the right communication. Many say balance is the key:

“My personal feeling is that right way is a good balance, depending a lot on the issue you are

talking about.” (VP BG Plumbing, Spain)

Respondents agreed that no media of communication should be excluded, as opposite; people

have to learn to deal with the different media for the best effect:

“For me all communications are important, even when they don‟t look like that. […] because the

communication should be maintained and improved. […] If it is, how can I say, several issues,

maybe I prefer to first to speak by phone, and then by email in order to clarify. So I try to speak

with the person and then send summary of the conversation what we have discussed what we

have decided, lets say. So I try to mix both situations in order to ensure that as much as possible

at each other.” (Iberia Quality, Environment, LPR Manager, Portugal)

Various participants approved MRT and task fit technologies stating that the choice of the media

depends on the task complexity and urgency. The more urgent or complex the matter, the more

the probability that the employee will pick up the phone to call. At the same time, if the

discussion is about the standard issues, technical specification or data analysis, they would most

likely choose the mail over the phone.

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“If we talk about, let‟s say some phase in the company, you share some specifications,

data…Some people prefer the use of mail because they can read it 5 or 6 times, they are sure

they have understood properly. Also depends on the nationality, there are nationalities that

prefer to have the things written down and reread it to make sure they didn‟t forget the details.

While other nationalities would say do it quicker and with less details. I think that, for example,

Nordic people like to use mail with more people because they look more for a consensus.

Normally, they don‟t have the clear position before the meeting, they are into discussion,

listening everyone, in the end they are able to make consensus.” (VP BG Plumbing, Spain)

Most of the managers agreed, that whereas it is the matter of balance, or finding the right mix,

they clearly realize that not all things can be done via phone or mail. There should be a

separation, clear division what shall be discussed over the phone and what – over the mail:

“You should clearly separate what can be done via phone and what no. You can not always

make 10 or 20 people travelling.” (VP Integrated Business Management, Germany)

The most important is to make everyone feel important, useful and involved:

“I try for them to take part/participate in everything; for instance everything. Truly feeling that

they can participate and that they are very important to company. Every time it is necessary to

take some decisions, that their opinion is important, that I take it into the consideration a lot. I

understand communication like much more important because it is not only talking.” (Iberia

Quality, Environment, LPR Manager, Portugal)

4.7.2. Face to face interaction

Gibson&Cohen (2003) stated that, face to face meetings provide the information, the social

context and social cues. This information, so called social information, creates the trust and

shared understanding – enabling factors towards virtual team effectiveness. Whereas, during the

call or email the lack of those social cues develops the opposite effect, lack of trust, self

perception issues, especially for the people from high context cultures, and it is then all

multiplied by the sometimes satisfactory or medium language proficiency. In the cases of open

discussions, people tend to close themselves and do not give the input that could be valuable

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because effective knowledge sharing is available in comforting environment (Gibson&Cohen,

2003). All of the respondents stated it as being very important in the working life. First of all,

because there are some issues that can not be discussed with other modern communication media

due to the loss in the process of knowledge sharing or innovation:

“To drive a change, you can‟t do something without face to face.” (Product Line Manager,

Germany)

Face to face interaction was of course the primary option for all the respondents. Face to face

communication helps destroy the barriers, helps on the way to creativity, to discuss the serious

complex matters. The only limit on the way to face to face interaction is of course, travelling

costs and time resources. Participants confirmed that the best communication media is a face to

face meeting. They confirmed the MRT that face to face interaction enables to fully transmit not

only verbal message, but also multiple cues such as voice, body language, facial expression

which is important in developing further mutual trust and understanding within a team. The

regularity of face to face encounters depended with a medium average of 6 times per year.

Managers agreed that they see those meetings as necessary to develop rapport. Those travels do

not serve only for the purposes of the problem solving and decision making, more then that it is a

bonding meetings, establishment of personal relationship and networking to develop greater

sense of trust and community.

“I think that every issue, not all of course, but mostly I talk about them face-to-face and by

phone. I think it is difficult to think one issue I talked only by phone or email. Because when we

have an issue handling, it takes some time to solve. If it is possible to say for each issue it is quite

sure we talk face-to-face.” (Iberia Quality, Environment, LPR Manager, Portugal)

4.7.3. Phone interaction

Phone is the primer substitute of what may be called a face to face communication. According to

Daft&Legel phone is the second richest media after a face to face meeting. It is personal,

provides with a fast response and transmits partially the non verbal cues – such as the voice,

mood or intonations of the speaker. Phone was repeatedly mentioned as the most favourable

channel for effective intercultural communication among dispersed members:

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“By phone I talk, I can not say every day, but 80-90% of the day I talk every day with all of them

by phone by mail, mostly by phone. I try to make people to forget the distance! And I insist with

them, pick up the phone and speak. First of all, speak speak speak!” (Iberia Quality,

Environment, LPR Manager, Portugal)

At the same time, the phone interaction imposes some limitations towards its use – among them

language proficiency and trust issues. Even though it would help much more to pick up a phone

instead of writing an email, because this way the things can be done in a more timely manner ,

get an immediate response or feedback and understand whether the counterparty on the other

side of the phone understands the meaning. At the same time, there is no direct evidence leading

to the phone as a mitigating factor in the intercultural communication. Phone communication as

such does not have the qualities of the email, for example – where the mail is the evidence of the

work done, to make sure things are done correctly, and especially the mitigating effect that helps

improving the language accuracy as such for example. As many participants suggested phone is

a more personal way of communication. Especially, if the person is not confident about his

language proficiency, there is no way he would pick up a phone instead of preparing a message

with some in advance. Unless the person on the other side of the phone is his colleague, he has

met face to face before or they speak the same language – as for example, in Spain and Portugal

where the employees talk every day on the phone intensively, this is also due to country

specificity of using both verbal and non verbal cues much more then for example, the Finnish

people.

“In Spain or Italy, we use more the phone. We are more about talk the things. We take decisions

quicker cause we do it over the phone but then sometimes it is less stronger because we have this

weakness of who takes the decision. But it is very general.” (Iberia Quality, Environment, LPR

Manager, Portugal)

Regarding the task complexity phone has been chosen as a mean of communication to use when

the task is complex or urgent, involves a lot of discussion, or a creativity element.

The negative side of the phone mediated communication which by the other respondent was

perceived as the positive is the fact that the information is „‟floating‟‟. The manager shares her

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insight that the phone helps to avoid the implied meaning, and helps to understand whether the

employee has understood the task and the whole discussion. In this way, the misinterpretation

can be avoided at the early stages of the discussion.

“They also need to try and ask them directly on the phone. Then you get an understanding

especially when you discuss issues, complicated issues. I try to really ask directly if I don‟t hear

anything for the last 10 min from somebody - try to involve the people into the discussion. Then I

have the feeling if it is understood or no.” (VP Integrated Business Management, Germany)

On the contrary, another manager says that his communication on the phone often leads to

exactly opposite situation – to misinterpretation, misunderstanding:

“It is also what I often see what I do wrong, that I have an idea and then I say it a bit too fast,

then 2 min later, someone is saying so and so and I say this is also what I meant but that

message didn‟t come across. So on the phone I can end up in a situation where I haven‟t given

my idea enough thoughts before I communicate it and then it is misunderstood whereas if I am

force myself to write it down message becomes clear and there is less chance to

misunderstanding.” (Business Development Manager, Denmark)

4.7.4.Email interaction

It was evident from the interviews that the managers perceive e-mail as an important and

strategic tool within the organization.

“[…]it is a very powerful tool, we have to understand and have to know how to use it properly.

It is fantastic. It is the best way to send information and we are sharing files and data.” (VP BG

Plumbing, Spain)

Many respondents advocated for the use of email for 3 reasons:

First of all, unconsciously, the respondents agree with Shachalf and his perception of bridging

the cultural diversity with the help of email. The email gives time to think, prepare the message,

check it with auto correction tools and then send it.

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“It is clear to do it by email, because you have more time to think what you want to say.” (VP

BG Plumbing, Spain)

E-mails helps to mitigate the contextual issues that arise for people from different cultures. The

interviews show the support to Chen, Geluykens &Ju (2006) in their reflection upon a language –

the perception of the implied meaning as one of the most challenging parts of the

communication. Therefore, when communicated, manager should make clear that the employee

on the other end of the media understand exactly what the task is, which is in line with E.Hall‟s

contextual theory. The differences may arise if people from different context cultures meet, each

representing his own meaning. Therefore, to mediate the implied meaning it is important to

acknowledge which task should be done via appropriate media. VP Integrated Business

Management from Germany shares:

“Quite often if you feel they are not so keen to English, they always said yes they understood if

you are on the phone. It is quite often good if you ask them - can you please send me the

summary of what we have just discussed to really be sure they have understood. For many

people it is much easier is to write in English rather than discuss.”

The email not only helps to mitigate the misunderstanding due to the lack of context, or the

information known by all the participants, it also helps to mitigate the effect of language

accuracy, bridge the gap between different levels of language proficiency:

“On the phone I can end up in a situation where I haven‟t given my idea enough thoughts before

I communicate it and then it is misunderstood whereas if I am force myself to write it down

message becomes clear and there is less chance to misunderstanding.” (Business Development

Manager, Denmark)

Third factor in the favour of the choice of email is the complexity of task. The easier or formal

or more straight forward the task, the more use of email. E-mail has been chosen when the tasks

are clear, formal and pretty straight forward - as the best media of communication – as to its

ability to transmit the direct, precise and technical information:

“If we talk about technical things sometimes it is very easy, it is just technical data.”

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As the complexity gradually increases, the employees use the combination of both phone and

email or switch directly to organize a meeting.

“Sometimes when you have to discuss something you can‟t do it by mail, at the end it is 100

mails and it is only a conversation between 2 people. It is difficult. 5 of these people are

involved, you answer, the other one guy is not reading your mail and answering same thing. You

are talking same, but totally different things. I think it is better to take the phone and say what do

you think about it? Or just organize a meeting.” (VP BG Plumbing, Spain)

Among the negative sides of the email, employees state the email becoming a political tool that

is mainly connected due to use or abuse of the Cc function.

“I think we have this culture of „‟ccing‟‟ everybody on the email.” (HR manager, Denmark)

Employees tend to include more and more people in the Cc, usually higher in the hierarchy in

order to get their problem solved faster or in an attempt to show they have been informed and

done what is necessary from their part. At the same time, the top management tends to suffer

from that due to the fact that the employees not always separate when they should include

someone in the cc and when not. There are no strict guidelines on the use of the Cc function and

there is a tendency to abuse it.

“Another thing regarding using mails is that emails can tend to quickly become political,

especially when there are a lot of Ccs on it, it turns to cover my ass communication. What more

and more people quite often do, that, if I am having, I have an email every week with a

colleague with a couple of Ccs, and turns into cover my ass, I was the bad guy here and then he

calls me and says “lets just take it on the phone before more emails are arriving”. (Business

Development Manager, Denmark)

After further questioning though, it did not appear to have any country specific features as

suggested. This may be especially present in cultures with high uncertainty avoidance as is Spain

and Germany as one of the participants confirmed that it is more common in Spain due to the

fact that they are used to work in hierarchy. However, the Spanish manager denied it, whereas

the Danish manager agreed that the Cc function has been used in Scandinavia as well. Therefore,

it is not country specific but rather person-specific.

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The other aspect connected to the Cc function, or as a result of it – is the information overflow.

The managers that receive a lot of information to their mailbox, wanted or no, therefore,

sometimes losing the grip of the important information in the middle.

4.8. Challenges

The main challenge participants mentioned a lot among the interviews is communication in a

team - how to find a right balance, when to use phone, e-mail or face-to-face meeting? There is

no single formula that would help solve this issue. As can be seen from the interviews, the

managers try to find their way, based on the experience and the inner feeling. But is it always

appropriate? There was an opinion ambiguity as one of the interviewees stated he would use the

email in the less complex matters, whereas the other stated that he would use email for the more

complex issues. One answer is not good for all, it is necessary to see who is on the other side of

the media, to make the decision, taking in account various factors that affect choice of media:

language skills, cultural aspect, task complexity and the context of the given issue.

Therefore, the choice of communication would be influenced by the language proficiency of the

employees. If workers feel confident about themselves, they would probably not hesitate to pick

up a phone and call. However, if they are afraid and would like to avoid a misunderstanding and

make sure they are understood correctly, they will write an e-mail, where all the ideas are

summarized and verified that it is exactly what should be said.

Alternatively, some of the interviewees mentioned, that particular nationalities would rather

prefer an e-mail media of communication due to the fact that they seek for a consensus in a

group, so they would make more people informed about the issue, let the other team members

create a decision, listen to every participant of a discussion carefully and make a decision

directly in a meeting after being able to listen to everyone.

Of course, there is also a cultural aspect that affects the choice of media, interconnected with the

language though. For example, Spanish employees are using more non-verbal signs in their

communication, so they would advocate for a face-to-face or telephone communication which

has a higher degree of non-verbal communication. However, when they would contact their

counterparties in another country, they would use an e-mail to avoid misunderstanding.

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The fact is that it is however, not the perfect English skills that are the perfect remedy in this

situation, one of the employees states a funny observation which however, is very true in the ever

expanding global community:

“I also have to do with graduate programmes - young people, nearly graduates coming in the

company. There I think it is very true, they have lived in 3 or 4 different countries, they speak 5

different languages, they studied in 3 countries. If you ask them where they come from, they will

not say Germany or Spain, they will say Europe which is interesting.” (HR manager, Denmark)

In the light of the last statement the author is suggesting the main scope, the main challenge at

this point would be to make the people go more global, not only on the „‟paper‟‟ or reports, but

in their mindsets. To turn the attention of the HR towards the creation of a future manager of

Aponar:

“The Aponar manager of the future, he needs to have a very good understanding of these

processes, he needs to be aware where are the pitfalls and where are the possible advantages.

That we need to install at some point in everybody‟s heads. They do see themselves not as

German or supply chain people but as part of a global. They have that global mindset. But that

doesn‟t come overnight.” (HR manager, Denmark)

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5. CONCLUSIONS

The purpose of this study was to analyze issues which emerge from the cultural and language

diversity of members in a GVT throughout their communication process. In order to understand

the challenges in virtual communication and collaboration that the managers and employees in

Aponar face a series of interviews were conducted with the Supply Chain, Business Group

Plumbing, Business Group Indoor Climate including managers and key personnel.

Language and cultural diversity are closely related, making it difficult to separate them. This is

because to understand the culture and context requires the knowledge of the language whereas

language is an indicator of the society and the culture where it is being spoken

Before embarking on my research, I had outlined that linguistic challenges in Aponar may arise

from two different sources. One is challenges connected to the language proficiency of the

interviewees. Meaning the level of the language is not sufficient to be able to provide a high

level discussion. The second challenge is the reflection of the cultural dimension in the use of

language where people even with a high level of language skills are not able to establish

successful communication by coming from different cultures.

My research found that, in general, language proficiency was not an issue itself, meaning people

understood each other relatively well, because being an international company, every employee

was mastering the language at a certain competency. People who know each other, or work

together, they already know the level of language of the others, and they do not feel intimidated

to talk and they acknowledge the accent of each other.

But in some cases, my research found that people felt intimated to use language to share their

ideas, especially via email or phone due to the lack of non verbal cues. Another reason for people

being unsure about their use of language is in relation with Hofstede‟s uncertainly avoidance

dimension, which says that cultures with higher uncertainty avoidance may tend to avoid using

English even when their skills are good just to avoid the misunderstandings. Furthermore, even if

people have medium or high level language proficiency, there is still the high risk of losing

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rhetorical skills, including the use of humor, symbolism, sensitivity, negotiation and persuasion

skills. The lack of such skills often leads to misunderstandings and can be an obstacle to the

effectiveness of the virtual team.

Employees at Aponar revealed that the loss of face phenomena was a recurring problem in the

company. For example, managers would not attend discussions and participate, even in face-to-

face, because they would feel intimidated and self-conscious about their language skills. While

the concept began in the Far East, it now looks to be a problem featuring in companies in

Europe.

Culture, the second factor in this research, is labeled by the literature on the topic as the main

factor in determining people‟s choice of information communication technologies. Despite this,

the findings of my research came to some interesting conclusions. Aponar illustrated that

national culture is not the main affecting factor. I discovered that at the company, the underlying

issue was corporate culture, or the lack of one.

All of the respondents stated face to face as the most important media. First of all, because there

are some issues that can not be discussed with other modern communication media due to the

loss in the process of knowledge sharing or innovation.

Face to face interaction was the first choice for all the respondents. Face to face communication

helps destroy the barriers, helps on the way to creativity, to discuss the serious complex matters.

Among the only limitations can be named travelling costs and time resources. Face to face

meetings not only are the way of problem solving and decision making, it is a way of bonding,

establishing of personal relationship and networking to develop greater sense of trust and

community.

There was no direct (either theoretical or empirical) leading to phone as a mitigating factor in the

intercultural communication. Phone mediated communication is a more personal way of

communication that provide a fast feedback and response. However, people feel they would be

limited in their choice of the phone if they are not confident about their language proficiency.

This is to say, unless the person on the other side is his colleague, or they have a previous work

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relationship. Also choice of phone proved to be stronger in cultures where people have a

tendency to talk a lot and use both verbal and non verbal cues much more than, for example, the

Finnish people.

E-mail as a type of media helps bridging the cultural diversity in a GVT. The email gives time to

think, prepare the message, check it with auto correction tools and then send it. The email not

only helps to mitigate the misunderstanding due to the lack of context, or the information known

by all the participants, it also helps to mitigate the effect of language accuracy, bridge the gap

between different levels of language proficiency. Respondents also mentioned that one should be

careful with the use of email as the cure for all times. The conclusion to be made is that the

easier or formal or more straight forward the task, the more use of email. E-mail has been chosen

when the tasks are clear, formal and pretty straight forward due to its ability to transmit the

direct, precise and technical information. However, one should not transmit the feedback,

especially negative, with the help of email, because it only helps in escalating the conflict and

negative feelings.

In general, the empirical part proved the theoretical framework, that however GVT is a very

challenging type of work organization, the benefits are outweighing the disadvantages. With the

right balance between the various types of media, that are present, cultural consciousness and

language training, leads to the successful implementation of GVT. With the new generation of

managers, who are aware of the virtual collaboration, have experience in different positions and

different locations country wise, as well as language skills and global mindset, the effectiveness

of the virtual team work organization will only increase.

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Websites

Company‟s corporate website:

www.aponar.com

Geert Hofstede‟s cultural dimensions‟ study:

http://www.geert-hofstede.com/

The cover page picture was accessed from:

http://www.ceibs.edu/link/latest/51104_8.shtml

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APPENDICES

Appendix 1: Interview transcript with HR Manager, Denmark

Q: […]

A: and if that is even possible?

Q: […]

A: […] to me the interesting part is more about the state of as it is because I get a little bit mixed

signals you might think things are going pretty bad or we are working towards something good.

Pessimistic people saying is so tough.

Q: […]The foundation is pretty good. That is my gut feeling.

A: I might as well be honest with you. There are the differences within the organization – the

business group organization, as I hear it seen as relatively distant and relatively out of sync with

the rest of the organization. That‟s what I hear. Probably you can confirm at what you hear also?

Q: Yes, that is my feeling as well and then I also feel that there might be and I don‟t know, if that

is a perception of supply chain themselves or other from supply chain that supply chain is a bit

more forward in relation to getting this virtual matrix organization to work. That is a self

deception of the supply chain that other parts of organization might be lacking a bit behind when

it comes to that. There is a mismatch in getting the things vertically or horizontally through the

organization so to speak.

A: But now, I mean, this was the first generation change towards European organization, now we

are having the second generation because now, for instance, the business group is being

reorganized one more time. And parts of the supply chain organization recently have been

changed. In any organization there will be constant changes. Now there is, now we are entering

second phase here of changes in a virtual organization. Some will say that‟s more complexity,

some will say we are making things simpler. Depending on you…

Q: But at least every time you add a change, you add confusion, it might get simpler over time

and so on so forth. And there is confusion in the sense that… people basically are not sure why

some people sit at the meeting, why are they there and why are people that should be interested

in what‟s going on are not there. So…

A: And that comes out of supply chain organization or…?

Q: That comes out of supply chain organization. That there is…and honestly sometimes it is also

just frustration at things from people being or feeling a bit out of the loop so to speak about

what‟s going on and it is quite natural when there is a lot of change. So I have to look more at

how much I actually … and how much is frustration and so on and so forth.

A: There will never be a situation of 0 level frustration. There is certain amount of what you

need. You need this constant change and they respect that. That‟s what keeps us competitive. We

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sort of revisit the organization –see how can we improve, how can we modify, how can we do

better, how can we get better in terms of needs of… We need whether supply chain or sales

organization. Let me think. Are you also in sales or not at all?

Q: […]

A: […]

Q: […] Do we actually understand each other? It is a classic kind of problem but this friction that

can be between the production guys so to speak and sales people. And pulling sometimes in

different directions and there will always be this kind of friction. The thing is that how much

friction should there be.

A: If it is a constructive friction or not, if it is not it will destroy more then it will do.

Q: And maybe also friction in the sense that you have local sales people talking to the outlets of

your places. And do they consider in the daily work that it is a global organization they work

for?

A: Most likely no.

Q: Yeah. So there is a friction as well. And there is kind of the thing I have been coming back

to,[…] being a patchwork of an organization, being embedded in different kind of local

circumstances. Then starting to think globally, if I do this, it affects this guy over there. This can

be constant frustration. I don‟t know if for people on the floor, but also challenge many of the

managers see. I guess it is not new to you?

A: No,no it is not new. Good question is how can we alleviate some of that pain and can we even

risk something that needs to be lived through somehow?

Q: Yeah, I think there are 2 legs. There is the managerial leg, which is the thing that they told

me, either you keep this mindset or you get out. That was basically what they said.

A: it is what they are saying in the managerial level?

Q: Yeah, it is a little bit of what they are saying. And it is understandable in a sense that we have

now decided on organizational change, and this is how it looks. There is a room for coming

feedback etc etc but the baseline is this so either you jump in or you jump out. That is one part.

And then there is another part – to, that is culture-wise not national culture-wise but also Aponar

culture-wise I think. How can we, I know you have that saying „‟One unified Aponar‟‟. But

when I interview people it doesn‟t seem like one unified Aponar. It seems like there is a lot of

local embeddedness, and a lot of local pride so to speak, and that is good because it gives some

local kind of responsiveness so to speak etc etc.

A: […] Looking at it - What are we now? Are we Danish, are we Scandinavian, are we

European, what are we really? Where do you feel your sort of... Anyway. It is kind of the same

story I guess. Can you feel connected to the community that is so large where you are just a very

very tiny piece? Or… And that is a mental journey that we are…Good thing we are not going

back. I mean you should never say never, I mean management facilitates how much…But most

likely organization 5 years from now will be even more global, even more cross functional.

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Q: And I think you will never get one unified Aponar. I think it is just important to reflect all of

it, makes me want a bit more integration and try to work towards that and play on different kind

of things HR-wise.

A: Yeah. And I should of course also ask myself as sort of a representative of the group – how

can we facilitate that process? And then it is of course a matter of what ships do we launch. I

mean what is that we should do and what is that we know we don‟t have resources and bla bla

bla. And of course if the whole organization was in a state of disintegration, it would be a

serious problem. But from what I hear from you, that is not the case as such. It is just a matter

of…

Q: Honestly it seems like you are on the right track. The question is just how fast do you get

there? And what are the consequences of not getting there fast enough so to speak? […]

A: […]

Q: Of course there is the whole national aspect as well. Several aspects - one is the language

aspect, it seems like again, and it is not because honestly, blame for being too critical, when I

speak to people but honestly there seems to be done some efforts to help with the language wise

at least in Iberia and so on and so forth. It seems like people are getting more satisfied with the

ability of speaking a common language, so in that regard I was also surprised that it actually

seems to work quite good. Bet there are some things about...Some people due to lack of verbal

skills are writing a lot of mails and are not there, it sounds micro, but are not there to pick up the

phone when there is important stuff going on. They would rather do it through mail. And what

happens with mail is that it gets sent around to everybody but nobody picks it up so to speak and

do something about it.

A: It is a good observation.

Q: So all this kind of microstuff is the thing I would like to get more into and build some larger

foundation on that so we can develop some kind of policies or linking with policies. How should

we deal with it.

A: Of course, we should also identify the necessary prerequisites. I mean, that is true, there have

been, I have been quite impressed with effort they make in Iberia. They have a strong accent and

it might be hard to even understand what are they saying some time but they are working with

that, they are going to school during office hours and having trainings and it is not so bad. It is

not so bad. But of course, the more the better.

Q: I have also seen with Germany, that here is the self perception also that these kind of

tendency to avoid uncertainty a little bit. So the Spanish have tendency when they feel uncertain,

then they kind of overdo the mails, they just write superlong mails for example and so on and so

forth…Where I think we could as well go through - should we not develop a template but you

know…Think about what kind of information can we share through the mail and how do we

structure our mail basically. […] Because you know, when people send around mails and people

reply mails and suddenly have long mails, knowledge does not get shared because people

basically tell me that if they are „‟cced‟‟ then they don‟t read it.

A: I think we have this culture of „‟ccing‟‟ everybody on the email.

81

Q: Yeah, that‟s another problem. The problem is that there is one part that wants to share extra

knowledge but there is of course also part that use the cc strategically. We use it to cc somebody

so the other one sees that that person has been cced in order to get the reply that we want faster.

That also means that some managers get information overdose sometimes, simply too many

mails in the mailbox.

A: I mean in the ideal world, of course, 2 employees, they should get in contact, share the

information, they shouldn‟t cc the manager […]

Q: Some managers that have developed policy, if it goes back and forth more than 3 times, and I

see it cause you cc me, you should pick up the phone to stop this kind of back and forth. And

other people developed the guidelines concerning „‟you don‟t give a negative feedback over the

mail you only do it by phone etc etc. „‟

A: So those are there?

Q: Those are there. There are people who develop their kind of small policies about how you

should do it.

A: Country specific? Or how is it? Manager specific?

Q: More to be manager specific. It seems more that now we say it is more than this than you pick

up…Say to them you have to solve this. Or you have to call each other. Or you don‟t give

negative feedback etc etc

And then of course there is also nation kind of wide, a bit, now u asked what kind of culture is

Aponar. There has been some…Some people have tendency to see that there was a lot of

consensus making from the top management down seems to be focus on creating consensus,

with they describe as more finish way of managing or leading. I am not sure whether that is the

truth or it is just the perception of some people who want more hard core managerial stuff.

A: There is no doubt that there is also a managerial discussion ongoing between the central

European countries and Scandinavian countries. Of course we shouldn‟t sort of fall into the

pitiful of being too stereotypical around this, you can have a consensus manager in Germany.

But still, there are sort of characteristics of management culture. That needs to be balanced

somehow. To me there is no Nordic managerial style kind of background. And then we have a

1000 employees in Germany. […]It needs to be balanced.

Q: […]You have all these managers who want to show themselves off and that they want to

show they are good at what they do and they want to stand out. He kind of developed the

guideline where he wants consensus. He would do anything that they told him to do if managers

under him, could reach the consensus among them. So it is also a way to be very Finnish I guess.

But also a way of creating collaboration among you know, a lot of independent actors.

Q: This is kind of a very fractioned feedback. Pretty fractioned. […]

Q: So basically there is a lot of material I have. Maybe we don‟t want to my idea was at least to

have something concrete to work with managerial guidelines you already had done and try to

develop them, maybe alter them and then show why I have chosen to alter them from the

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empirical data combined with the research of what we already know. Because then we have

something concrete to work on. And then there is kind of state of the art as well. I guess you

need some kind of feedback on that.

A: Yeah, it would be helpful. And also some of these lower level observations that you have

done, this could be interesting to see. This is my perception, I came as an outsider. This was the

stoke and this was what I think I got out of it. But basically the idea is we need to consider what

actions to take to increase the maturity of the organization working virtually that to me is the

main perspective. Everybody knows it is not like that. We just need a reason for future and we

need to consider what are the steps that we could take, 10 years down the line or maybe even

just 5, we will take the step further, we will go into Asia, we will go into other areas also, we will

have even more complexity after that.

Q: My idea as well. I wanted to pick out some people that also come with suggestions and so on

and so forth. Maybe it could be a good buy-in that some of the things we push forward actually

come from the organization itself and not from me standing from the outside. We can validate it,

it is actually your own employees who suggested it.

A: That would always be interesting what are they idea. And also when you do, we also need to

consider how the feedback should be. Should be at least Supply Chain meeting, and I think also

the Business Group level, might be even business group managers.

Q: […]

A: We should see it the company as a whole.

Q: […]There are all kind of subcultures going on, especially in supply chain, I have seen some

kind of. They feel that the rest of the organization is behind concerning the virtual

implementation and the way of thinking etc and it might be true. But we have to be careful not

to…

A: But I am pretty sure the Danish managers will give you another picture on the problem –they

will be telling you a long story of the lack of the maturity from other units of organization. That

will be their impression.

Q: I don‟t think it is unhealthy to say that there are the differences between. […]

A: Sometimes the frustration level is very high. I think, from what I hear. You might say

something with a smile on your face but it is a little more serious than that.

Q: I also see it. […]I think it is important it is good organization gets confirmation, yes we are on

the right track, but if there is no room for development then…

A: It is also the perception – what are we? Are we an innovative company or are we first of all

like a company that buys products from other products and then sells to other companies.

Q: Like the middleman.

A: Like a middleman kind of person. Or are we innovative state of the art technology driven

company? It will be seen differently. But interesting interesting. […]

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Q: […]

A: […]We as an HR should think abut this conceptually. The Aponar manager of the future, he

needs to have a very good understanding of these processes, he needs to be aware where are the

pitfalls and where are the possible advantages. That we need to install at some point in

everbody‟s heads. They do see themselves not as German or supply chain people but as part of a

global. They have that global mindset. But that doesn‟t come overnight.

Q: Another thing I didn‟t mention is also very clear to see that it has something to do with

experience, have you been working in matrix organization before, have u been working in a

global MNC before? It seems easier for you to get that kind of mindset where contrary people

have been working in a more local companies and suddenly…

A: History of Aponar is…Many came from the inside; it is my perception – local function,

national entity. And now they woke up to a new reality a couple of years ago. It was a process

that was underway but that was sort of a big step that was taken 3 years ago. We are still

struggling.

Q: In that process you also took some local power so to speak and put it….?

A: It was dead necessary. You can not do both.

Q: I totally agree. My point is that there are also consequences are…That there of course are

some people who formally had power…

A: Skeptics will of course say it has taken us away from local market, from local responses,

responses we get locally, and it becomes some kind of superEuropean structure that is totally out

of line, real life…

Q: What is your take on it?

A: Given the challenges we have, it would be a serious sub optimization if we stayed local. […]

But I am fully aware that there has been are losers and winners in that battle and it has been...

Aponar culture– you do it and then you make it work afterwards.

Q: That‟s another thing that people have been talking about. There is a tendency to start the

process and then you plan afterwards. You keep on pushing forward etc etc. The lack of

planning, the lack of concentration and the lack of ability to stop a process once you have started

it. Because you find out that maybe it is not worth it, it is difficult to stop the process because

suddenly you have goals and this and that. And you just keep on running with the ball even

though it might be sub optimation.

A: And they are probably right. And then there is that consideration you can‟t roll it back, of

course, you should learn something from experience that you get. But there is also to me an

important signal - we are going to go through this, it can be painful but there is something in the

end here. Because we can not roll it back. Otherwise we will get stuck in the middle; then we are

half way European and half way local. And we don‟t even know when is what. But for sure I

acknowledge that…

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Q: And it sometimes happens when you try to do this kind of global thing, it is a very structured

way of doing things, and of course u loose something in that way and I don‟t know whether it is

good or bad or should be different. I can point all this points out but what you guys see it as a

positive or negative?

A: It could be very interesting for all of us in the managerial level - when

designing/implementing change processes: is there something that we do wrong every time? And

you can see it from the people. And there is that tendency.[…] The other extreme of that – a lot

of planning on the way. There is no easy answer.

Q: There is no easy answer. You are indirectly going in the process of doing this. But I see some

kind of Organizational change pillar and some of the troubles with that / Culture virtual vs.

language pillar / and then I see this Global vs. local pillar. […]

A: We want to improve all the time, like we do in supply chain, like they do in offering. They are

looking for those small building blocks to build your understanding and you can maybe say we

learnt a little bit here from experience. I will not make that mistake again. We at some point had

in HR network discussed a rescue 911 team that could do an organization change, or at least

some kind of pre-understanding what‟s going on…We in hr are also sometimes lacking behind,

due to lack of resources, due to many things…Things are being done and then we face the

consequences. Maybe we can do it a bit cleverer this time.

Q: The way I see it HR is also in a process of being global. Because you are sitting here with half

of your time allocated in HR, being the global HR, and then you have all the local guys knowing

about the salary etc etc. But the consensus of creating traditional HR stuff like culture,

communication etc etc How does that work?

A: We don‟t have enough resources to let off every topic on the group HR level. This year has

been sort of dedicated to training something, that was put on hold for a couple of years, needed

to be revitalize, needed to be put to everybody‟s awareness that we are now investing again

people, time, money, efforts in that. We doing a lot talent management, talent identification. We

are doing process of sort of management planning, successful planning - 200 people being

evaluated on the group/management level who was the top performers who was in the middle. So

given the resources we have, we can not do everything. But then you have local resources and

we are working together. But we don‟t have as such very structured, very global HR policy. We

go up and down.

Q: Why is that? Is it because HR doesn‟t have sufficient funding? And is thereby seen as…

A: it is the matter of both I guess. At one point, my Finnish boss, her predecessor was […] My

boss she took a step down, there is a bit of signal there. The awareness of the importance of HR

matters is there. […] It is definitely in the awareness. We need to consider elevating some of the

topics because they are not alive.

Q: As you said before you can not get back or stuck in the middle, but you can not either leave

some of the company, you have to elevate I guess the HR in that sense…?

A: It makes sense to me. It is part of who is to blame here. I think the culture of the company is a

little bit to blame, it has been fellow local company with local representation in the HR, at some

85

point something was elevated and some initiatives down, now it has sort of slipped a little bit,

that‟s just how it is. Together with my Finnish boss we are struggling ever day to elevate as

much as we can, keep initiatives like this cross functionally. For the whole organization to learn

smth from.

We work with, we have HR strategy work on the way, to lay down the tracks. […] Do you agree

or should we skip it and do something else instead?

Q: Yeah, but the feeling is that, they see it as a problem?

A: Yeah, they see it as a problem. It is part of the realization that something needs to be done.

Many things going on, with the resources that we have one and a half resources you can only do

so much.

Q: It seems like they are doing more comparing to what the are resources. Nearly that If you

want to address the issues we work here, needs some kind of.

A: You have good insights from people. He is the real people leader, the outlook perspective of

what has to be done. He takes 2 days to sit down and frame it out. He is based with group for 2

days to he brings that attention […]

We had an external company working with us, but it is ungrateful task, I had one month of

experience of that, I had 5-6 months of planning, he took over, because the guy left…I was on

his behalf a bit concerned.

Q: What was your…. you came to us? Can you tell me a little bit about…Why? Why did you

come to us so to speak? What are the challenges you saw?

A: We need some maturity in an organization. A lot of effort being done, but if we could get

some good ideas about how to move it step forward. I also see, that‟s a gap between local/global,

local European whatever it is, it will be ongoing for some time, but we need to bridge that gap

somehow. If you could come also with experience from other companies, to give us some

feedback, benchmarking. It could be interesting. It was limited in time, but the only investment

we are doing is our time, our resource. I was hoping to get some kind of analysis of the asset

situation. It was also a bit uncertain to me – are we doing well…are we doing like shit? How far

have we come here? In HR we listen to a lot of frustrations. I may have my own opinion but it

would be good for somebody from outside to listen to some of the narratives or stories. It was an

interesting opportunity but it was a little bit coincidental.

Q: I think it is the best. Right now, we are still not completely clear where are we going.[…]

A: There was an opportunity. But also the benchmarking part is interesting. Do we have that?

Can you do that?

Q: In some sense we do have. It depends. We have other experience, with other companies that

are not doing quite so well, and I have of course implemented different kind of things in order to

do that, but I think Benchmarking coming more from the literature, rather than companies. But

also there is the point of...I will have to think about it. And I will do that. I have companies that

have benchmarking, but I also want that each company is in a specific context, has a specific

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story, has valid impact on how the organization actually works. Of course we can do some kind

of comparison. But I also think it is important to remember that Aponar is also Aponar and

benchmarking…I see the benchmarking that needs to come from the outside and than I see

benchmarking that comes from the inside in a sense…People come with suggestions. Can we

find the consensus from inside across different problem areas? Where people can find some

solutions.

A: Give me a little piece of the inside if you can. What are people saying, what are they

suggesting?

Q: Basically as a lot of suggestions comes to the Managerial guidelines concerning of how we

should integrate the virtual organization, it has to do with how should we run the meetings, how

often should we meet, who should we involve in the meeting, we shouldn‟t involve in the

meeting when should we actually say the meeting should be cancelled etc. Because all of these

things seem to be causing the frustrations. Basically, people are sitting in the meeting and

sometimes the virtual meeting is cancelled quarter past it has already started. People do not get

sufficient outline to what meeting is about, so basically they have no time to prepare,

underprepared; no clear rules, about who is actually writing down the things, that get decided in

the virtual meetings (so meeting minutes basically or templates). There is no clear structure

about who we should involve, who shouldn‟t we involve in the meetings. Knowing maybe

sometimes who is actually important in this processes that meaning […]

A: That I am a little bit curious to understand. They have a feeling there are people in the

meeting who actually are not relevant?

Q: Some of them have a feeling that is not really relevant. To be more clear I have to go through

it again. People as they see being relevant are kept out of the loop of not being in a meeting.

A: Is it the characteristic of any meeting or virtual meeting?

Q: it is basically virtual meeting that there seems to be lack of responsibility, I think it has to do

with global mindset. People have difficulties from locating who gets affected about the decision.

A: We have a lot of that with business groups organization when that was introduced. I heard a

thousand times from people „‟We are not in the business group - we do not understand how this

organization is working, who sits where and what are they doing. We do not understand what is

the role of those people and where the hell are they. They constantly travel all over the Europe,

wherever. We don‟t see them. They are sort of strange birds. They fly in the meeting, participate

and go again.‟‟

Q: And that is also…big concern. But that is also the way of life. You only have so much of a

time as a manager. Also working with what kind of changes do we need to be there face to face

and what kind of changes do we actually want to implement virtually.

A: Some of these things are very simple. I am sure that the surprise the management will see,

will be very disappointed to hear that there is no discipline around taking meeting minutes

because it is very structured at the highest level.

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Q: it might be very structured at the highest level. They might be very disappointed about it but

if there is no culture on the…

A: […]I take part in the supply chain group meetings. It is very structured towards who takes the

minutes and they go online 2 hours after the meeting is done. If that‟s not really the name of the

game in other areas….

Q: You know, that‟s the problem with the qualitative. Sometimes I can‟t generalize too well the

organization. But my observation it is something that needs to be confirmed whether it takes

place. My feeling is that there is a lot knowledge getting lost. There is a lot of yap yap yap, if the

minutes are not taken, it is not clear who is responsible for what. If nobody is writing down, then

people, at least, German, Spanish people feel that meeting doesn‟t exist. It exists if it is written

down. So it is one part, I have been looking at. I know it is microlevel kind of stuff but it is pretty

important. And then there is a bit of a discussion Do we actually have a shared point/site where

we can drag a knowledge from? It seems it is a bit fragmented that u have to pull resources from

different kind of places and there is no shared….

A: Are you talking about manpower or some kind of shared sight of information?

Q: It is simply a shared sight of information where things are […] There is noo integration

between knowledge being shared between those points into one point. And don‟t you agree?

A: That‟s the integrated business management, so again the efforts are there. It is always a

discussion of more or less. But it should be accessible sitting at that level. That‟s doesn‟t matter

if she doesn‟t feel it. She would see as fragmented. VP of the integrated business management,

she will most likely say is pretty much available, you just need to access it.

Q: That‟s basically what I see, it seems mostly that there is the feeling out there is that the things

are not there, but they are there, maybe it needs to be communicated out, because then you got a

feeling how they actually see the organization and position they are in.

A: You just need to integrate different drawings in your head.

Q: Yeah, I am still confused about Aponar. Organizational virtual change side this is basically

what I have been working on. We also need to talk about cultural linguistic aspects.

A: We have this presentation on the training in Finland under the headline of crosscultural

communication. It was very funny, very entertaining, Englishman based in Sweden. But it was

also just basically going through Hofstede.

Q: It is important some real life experience, instead of people just reading Hofstede.

A: I was actually a bit surprised pretty much. We were going through stereotypical German,

stereotypical Englishman and stereotypical Spaniard and than he said „‟oh, you can basically not

understand another person‟s culture much‟‟.

Q: Where I see it way more as a process, I see it way more doing it with individuals, with

experience, position in the company etc. of course national culture has an affect.

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A: I actually don‟t see it as a big issue. From what I got it…it is not that he is a German or she is

a Swede it is not our biggest concern by far.

Q: it is more that they actually sit there.

A: I can‟t accept this behavior.

Q: I don‟t see that either, I see it more as a Global vs. local change more than a national

perception. That‟s my perception anyway.

A: In this presentation it was…It is not our biggest concern I would say. That from the national

perspective we don‟t understand each other.

Q: I think that sometimes there is language stuff going on. I see it more as people being shaked

because they are forced to change.

A: Maybe you should emphasize that a little bit also, that we don‟t overdo it.

Q: I want to deemphasize the national aspect, cultural aspect, I want to emphasize the more

organizational change, global linguistic aspect; I think that is the most important thing. It is

positive in the sense that people don‟t stand so much on their nationality, it also means there is

some kind of integrated unified Aponar.

A: I also have to do with graduate programmes - young people, nearly graduates coming in the

company. There I think it is very true, they have lived in 3 or 4 different countries, they speak 5

different languages, they studied in 3 countries. If you ask them where they come from, they

will not say Germany or Spain, they will say Europe which is interesting. So if you are the

middleman, age wise I am little bit older then you, but in 15-20 years, there have been a little bit

of a change.

Q: […]I am also a little bit in the middle. I still see myself pretty much as a Danish guy.

A: It is interesting. It is a mental process.

Q: Now you trying to integrate European-wise, your purpose is European wise. You use that

perception of the European identity.

A: We should also learn something about we can use….We are not like Vestas, we are not there

yet, but we will come. If we could not do some of the obvious mistakes from our European

integration process. We don‟t loose valuable time and a lot of resources in doing all the dumb

mistakes.

Q: […]

A: […] And the culture is also so that I would expect people to be fairly willing to say their

opinion. It is positive characteristics of the culture also. Then of course I can also hear it is a bit

negative. We need to constantly work a little bit with that - stop arguing, start doing something

instead. We, of course, our employees, can not loose their frustration but we expect our

employees to think proactively. Question is that if they are looking for something that matters, to

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provide them with. If they feel they are stuck somewhere because management hasn‟t done that

or somebody has not done it…

Q: Or management is not present…?

A: Yeah…And there is another big thing – how can you do that? I mean how can you be in a

virtual team and then still be present in the mind of your virtual…?

Q: How do you actually manage being virtually? Being a virtual team? Often enough, they don‟t.

When there is something important going on, they feel they have to go here. So this balance of

what can be done virtually and when they need to go is good to be clear about.

A: You need to have relatively often contact with, I mean, even if there is nothing to say pick up

a phone and ask questions. How can you make yourself present even if you are not present? […]

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Appendix 2: Interview transcript with VP Warehouse&Logistics, Finland

Q: How do you see the process company is in right now concerning structural change and so on

and so forth?

A: If you look history, Aponar has pretty much been growing by our decisions. And of course,

earlier it was the strategy that you have what you called, multi channels. There was a lot of

different price. And it was actually pretty successful; it was time when business was growing.

Then I think that 2004, the change for the whole company. Then the goal was one unified

Aponar. And then it started to go on. I worked mostly before until 2008 with Aponar Nordic for

infrastructure, I was responsible for that business 7 years and before that I was working with

Aponar in Finland. That is the primary part of Aponar – being reasonable harmonized, being

reasonably unified from the beginning. In the Nordic area. So I think that now the challenges

were mostly that you must generate European offering, meaning European products and than of

course organization to support that and generate growth. That‟s a big change. Historically it was

more, that if you were independent in certain country, you get core products and some financial

reporting guidelines, but not pretty much else. And then we started to generate business. Now the

goal is of course you have more harmonized, constant everywhere…

Q: How far do you feel you are that road?

A: I would say depends. Regarding the offering, we are, I would say, that 70-75% are already

there. Clear step forward, in that respect we are going closer and closer to the goal. Regarding

harmonized way to work, mostly we are reasonable far in the Eastern countries. They have been

working very heavily in order to harmonize that part and also Nordic. For example, the most

scattered part is what we call South West – UK, Italy, France, Iberia. They belong to the same

group but they have been independent units.

Q: Why is it scattered there?

A: I think the reason it was also linked to this Oracle implementation. Because then you get of

course harmonized processes. And then also the size of those units are bigger than, for example,

in the East. There are between 20-35 million Euros. Iberia is already belonging totally to this

European culture.

Q: How do you see the harmonization between the offering and the operational part of the

company - sourcing, or the supply chain?

A: That‟s already I think large extent is done. Today we have the situation that, for example, we

have some logistics responsible. The only units that do not belong directly are the UK, Italy,

France. Also Russia, but Russia is a bit difficult anyway because there is longer distance.

However, we can influence a lot already all the analysis, data is available so we can influence to

the structure, inventory analysis. So we are not far regarding this logistic part.

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Q: And when we speak about one unified Aponar, how do you feel company has been working

with that concept? Implementing it, not only in the organizational structure, but also in the

mindset of people?

A: At that time, there was a lot of miscommunication, lot of information, and also

communication part that lacked it needs. You have tools, processes and people. Then of course,

tools you will get harmonized, and then processes are also the call. The most difficult is of

course people. Because people I think to large extent understand the goal, in practice that means

in some cases if you follow that road, then you lose something. If you are independent today.

Than you must accept it otherwise of course you are … Then of course question about how the

individuals see acceptance or not. That‟s the case. And then it is of course, very historically, very

difficult to then … because it is very much question that who is then making decisions. That of

course must be handled very carefully …

Q: What I so far have noted, is this friction between the local thing that has to be taken care of

and trying to create some kind of global mindset thinking globally within Aponar while it seems

it has been challenging to create that kind of global mindset where you start thinking if I do this,

it reflects this kind over there…

A: It is not easy because total history is different. If you think, of course, I have a totally different

position able to look, to development long time, also being able to benchmark against other

companies. There is a lot of companies that have originally been one, only one. Then when they

grew, they kept the structure. There might be they have a head office and mixed part of staff in

one location. It is of course in that respect easier to expand. But of course in a longer run, to risk

in that concept, is of course that you don‟t get a new input and if you face problems, then you

have limited amount of time to sort the way out. In Aponar the head office, for example, has

always been very small. It has always been not in one location, so people are wherever they are.

Q: And it is been the company strategy from a headquarters…?

A: Yeah, yeah… 20 years ago it was that statement was the cost of head office must be below 1

% of the turnover.

Q: Yeah, way of controlling that the head office would not expand. But of course, a lot

challenges, and actually controlling of getting some input from the things that are scattered over.

So I guess it also means you have staff function dislocated as different kind of units.

Coordinating the knowledge between those units I guess is challenging as well…?

A: Yeah, it is a challenge. However…I don‟t keep it so complicated as it sounds. If you think, for

example, in my organization, managers, I am leading. I have three, logistic managers, and then I

have one who is responsible for what we call European supply team; then there is one person

who is what we call, business process owner to secure all our actions are harmonized against

Oracle. And then without belonging directly to our organization then is one controller who is in

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our team, but of course he is also part of controlling team. All those are in different places. I am

the only one actually in Finland and the only one here. Then we have one person in Sweden, one

in Iberia, three persons in Germany, but in two locations. Now this new controller, who will start

now in the beginning of June, he will also be located in Germany. Actually, it was his own

opinion was that he wanted to be abroad.

Q: Speaking of your own experiences with managing this team, sitting in different locations.

What are the main challenges you are facing and actually being able to manage them so to

speak? Do you feel out of the loop or do you feel you are able to get the information flowing…?

A: Let‟s say so, first of all there is very important is visibility - you can see what happens. When

I started three years ago, there was no visibility; you had no possibility to see the warehouse

inventory structure, whatever. The reason was that this Oracle implementation was at that time

missing the reporting tool what we call now business intelligence. Now I can see the daily

performance and inventory structure, in whatever location inside Oracle. In that respect, tools

can always be better, but I think that to not make problem. The second thing is, of course, how to

get these people work towards a common goal. Then of course you must first create a comfort.

That is the first step. Then there is then how to secure that they work towards that. I am not…

Let‟s say, I have been working actually in a virtual organization. My opinion is to point is that

you must get them understand that we never get any development without a common opinion.

Then at least I make a very simple decision – I say “I am ready to accept any of your proposals,

if you agree as a team‟ That of course means, that now they know it, they must discuss it with

each other, that‟s of course the whole point. Because it is always that we all want personally that

we have the good idea, we want that idea implemented. In that kind of approach, you never go in

virtual team anywhere. That‟s clear. So people understand that “If I want my idea supported,

then we must together and we must discuss and develop together.” That‟s the whole point. Then

of course, my team is managers. So they are responsible that they get results. Then I have already

small benefit that they see if they don‟t work, they never reach result, and then they have a

problem. In all those, if we want to achieve the goal, it is one way to reach like the other ways.

The biggest problem what I have seen in Aponar, it is very often you have a meeting, the goal is

there to harmonize whatever - wrong persons are sitting. That‟s been the biggest challenge.

Usually you send a specialist. With guy that keeps this structure that we have here, and they are

normally not able to make decision. But the decision maker is not involved.

Q: When you have a certain problem, you will send specialist because specialist has a knowledge

about how a problem is solved, but the problem in that is that no manager is present and no

actual decision can be made.

A: They are not guided to make decision. When they come back, you start to challenge again.

That‟s I see, then there are success stories, there are right business collected and then they make

the thing…

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Q: But there is the thing, where they have a lot of meeting, but … discussing and go home….

A: Meetings are of course needed, for example, when we are using more of these telecalls. If the

people know each other reasonable while, they are very effective. Because normally when we are

meeting physically, you feel them, because you are eight hours there. If you only one hour, and

then you continue next week one hour, and then continue same eight hours same eight weeks in a

row …

Q: But there are two things. One thing I am pretty interested in - how are you actually able to

create consensus among your managers? Because open up, managers from cultures that are a bit

more hierarchical, they would have a tendency to a bit more – this is my proposal, screw the rest.

Some things you are able to apparently create some kind of consensus. And how does it work?

A: For me it is part of managing people. Then there are individual discussions to clarify to

everybody what is the order Aponar is going on right now. First thing that this European

approach is here. Everybody can think „‟Ok, if it is good for me or not”. But then if you don‟t

accept there is no way you can go on. That is not so dramatic as it sounds. Because normally

people accept it „‟Ok, I will lose something‟‟. We have discussed with some people and opened

that they see “I lose this power; I simultaneously get more power to influence the European

process”. I see that many managers are actually interested about that. It offers you to be more on

the European level. Very often is that the biggest challenge is very high level specialists.

Because they are…One in Finland, pretty close to be a guru and if you put three gurus together

that‟s not necessary the best way to do it. But that I think you need this individual discussion to

support the process and go to discussions. I try to…of course you get a feeling what kind of

people are. Some of them need more discussion and support and also guidance, others are

more…

Q: Do you see, now I guess you have people from Germany and Sweden… Do you see any

cultural differences?

A: Yes, yes…I would say for me, of course, you can discuss about small distinctions, but Nordic

countries they are on league one. There are much bigger differences between the individuals then

cultures. Of course if you compare countries, Denmark is more relaxed. When I go to Denmark, I

feel more relaxed. But that‟s not necessary very much to do with business life. Germany has

historically very strict structured way to do business. It is a very good way to do business. It has

lead to situation. There is also this one of my persons; he said that he wants clear responsibilities

and goals. I said I understand it, but in that role it can be never clear. So what you want to be

more clear? That I think is a bit small conflict, because historically Germany was very very

structured. If you want to get more out of people you cant do like that. You must change that.

Then of course it is changing, it takes certain time but, basically, there is after that not big

difference. Germany has that kind of history. Then Spain is, I have been working with Spain and

Portugal also earlier. I would say the culture is very though as such in a business life. For me is

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different, my persons there are female, so they balance. I would say there is no big problem.

Earlier I remember it was very tough. Meaning that in the manager position you would never

want to loose.

Q: Because you could also argue that this you try, to make some kind of consensus, is based on

your Nordic approach to leadership, Nordic way of understanding whereas other people in your

position would be more…?

A: Yeah, because in Nordic I would say the basic thinking is that, not saying, people think boss

is wrong. That is not negative. It just means also boss can be wrong. There is no guarantee that

boss is right. Then you say your opinion. That‟s the way it works. Of course, that‟s I think is also

helping in that respect that it is easier to discuss. The risk is that you need certain discipline

otherwise everybody do what they want and you don‟t get any results. In this virtual organization

is clear you must lead more… Because that‟s the only measure.

Q: Another, if you measure these key performance indicators and these things. Some countries

could be difficult to create a goal for everybody to move towards because those can be

conflicting goals. Then I would think that could be difficult to convince people that these are the

goals when you set on a distance and not when you are together.

A: It is one important thing that we have also discussed - how you handle these goals. When we

say that for example, we are not reaching it, for example, what is your basic thinking for the

goal. There is also huge differences of the US – for me for US - you must always reach the goal.

For me that is not necessary, it is more that you have to plan. Then you get judged if plan is

executed or no. Then you can judge if you have followed your plan, execution. And then the

outcome is there. It is like in sports, you have done everything in a good way but you don‟t reach

the world record or whatsoever. It would be easier, if you reduced the goal. In sports you cant,

but in business life you can. You reduce the goal. I think that the point is that people also

understand they are followed what they do. Goals are there in order to measure. But if you

explain that we have done this and we failed because of that. Then it is ok. For me it is not like

you must reach the goal. It means of course you must follow all the time what people are doing

and how they explain what they are doing. That is really important. If everything is black and

white, and then if you have for example, from three different persons from three different

organizations and always the goals are in certain conflict. They must also know what is the order

from the company perspective. You must maybe sacrifice your own goal a bit. And then to be

honest, of course, not everybody is able to do that. But that‟s who it is.

Q: But is the company able to say communicating through that this is the order. Do people down

there know what the order is?

A: To some extent. Because now we say that… In order that we can support the growth of

company we must secure that the customer gets the goods on time… And then we have goals of

supply, that‟s in one goal. That is not so important. And then of course, costs, you keep the costs.

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For me being in the business very long time, you can do it by left hand.. Very often that you

make…. Normally, the variation is minor. Of course, you can never get 100% clear what is right.

That you must been discussed. For me is, for example, lets say you have two possibilities, you

can minimize your costs, but same time you reduce dramatically your flexibility. Then the

question is – is company‟s goal to grow or improve profitability, for example? If the growth is

the case, then you should never optimize the costs. Keep the cost, but not minimize it, it will

reduce your flexibility. And if there are more possibilities in market, you lose those. I think

nobody can make exact.

Q: No, and maybe they shouldn‟t. This kind of conflict needs a discussion that helping the

company naturally revaluating what the goals or priorities should be.

A: We should also in different levels and groups discuss about these kind of topics. Nowadays,

this what we call HR, human relations, seen as a system to make salary, system to make bonuses.

But I think it is more this kind of things, because that‟s generating company‟s culture. For me

that‟s one of the most important things – human resources.

Q: Do you think it has been neglected in Aponar, has this been too much management in the HR,

in the class to trying to create some kind of common, unified Aponar?

A: My opinion is that partly yes. Because the reason is that group‟s HR is very much focused to

secure that we have certain global base for salaries, training, and education. But there is no

people there to secure this, lets say, group approach, for me is that. This group is not very

homogeneous. And now hopefully it is getting more. Because then it is, practical example, is

that, for example, when I have persons inside Germany, there are certain person in local HR

organization taking care of certain things. But if he wants to develop that, it should be then done

via the supervisor HR that he coordinates it. That I think, not 100% in place.

Q: So getting the global HR integrated with local HR?

A: We all know that salary systems are very local, to adapt it you need this local knowledge.

That‟s not big topic. It is more to get this thinking, this global thinking to this whole HR network

through.

Q: I would argue that it also affects the way people are working together that there are some

common senses; common cultural understanding what is Aponar about. Also it could reduce kind

of thing where people sit very locally, and take power locally and don‟t want distribute it

globally.

A: It is also this that HR topics, bad experience from the past. One person in local organization,

it is very difficult to discuss, for example, about salaries, because you don‟t have expert outside

the country. Then you need strong support from this HR function. When people are on one place

then for them regarding this terms, it is more important that they feel lets say fairly freely inside

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that group. They are not interested in what happens in Austria or whatsoever. They are more

interested if they are in one side with other colleagues. That‟s clear.

Q: And working in a virtual team like this, how do you see the language? Do you see Aponar as

being challenged as having a common language or you don‟t see it as a challenge?

A: Originally, it was Swedish couple of years. Then it was changed to English. I don‟t see any

big problems. Because that means that you must speak English. When you have a meeting, it is

English. Then of course, when I go, for example, in Sweden or Spain or Germany, the point is

that I expect that they speak so much English that we can discuss. Then I, of course, don‟t expect

if we go to warehouse, they speak. That‟s quite ok. If you want to be in a global company, you

must have a common language. Otherwise it is globally impossible. And more it is willing - I

want to speak English.

Q: Has that been a challenge, are people actually shy?

A: They feel they are not able to speak so well enough ok. We in Finland, especially, in history

learning a lot of languages, but never spoke. That‟s nothing new. I think that has improved a lot.

For example, in Spain they have been very eager to learn English. That‟s good. Because of

course, for company is good if we have people who can whatever language because you might

be enable to expand your business. But without a common language is very difficult.

Historically, it has always been discussed always. For example, this computer language I

remember, has been discussed. Everybody who is not really IT specialist, the language doesn‟t

matter because there are just symbols. If you use them in Finnish. So it is English or whatsoever.

But that‟s I think improved a lot.

Q: And at the end, you have spoken some of the challenges you saw in Aponar concerning the

virtual team collaboration. You said that sometimes maybe there are too many experts or too

many managers. Is there other challenges you see in trying to create a virtual setup?

A:I think that one thing is of course that everybody is facing is that when you try then to change

in the beginning, 5% of the resources are local and 5 are European, and if the goal is that 80%

are Europeans and 20% are local. Then of you must of course communicate it. I think that, for

example, let‟s say it when we started, I nominated 3 European planners, then in totally we have

26 planners. Now we are moving that all these 26 are belonging to the European planning

organization. Now we see people are interested. 35% of my time that I can do European things.

That‟s a big step forward. In the beginning we didn‟t know how things are organized. Very often

global manager had to secure the best resources for global organizations. Now if they, if you

don‟t figure out how these resources have a possibility to move to European level, they are in a

truck. … That I think it sounds like a magic trick, but you just switch the thinking. But is actually

more. People start to see “Hey, I am part of European things!‟. It is like historically you had , for

example, countries that were districts. Then you can call they are small countries. Our customers,

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wholesalers, twenty years ago they had small countries, inside countries. Now they harmonized

countries, now they are harmonizing more of the Europe approach.

Q: You saying to me that you have successfully made that shift or …?

A: We are doing it. We are going the right direction. But of course, there is still way to go…

Q: There must be resistance… There must be resistance from the managers…?

A: Of course.

Q: So how do you work with those managers?

A: I think it is statement - but you must do it in a positive way. For me it means whatever you do,

you have no way out. This is the position we never changed. Now we can discuss what we can

do in this condition. If we don‟t make this statement, people think maybe there is way. It needs

discussion. That‟s correct. That stays forever. Because sometimes people are not done some

progress and then they loose confidence that this is working or not. … It is not a very big topic. It

is more that you have a position where you have more not necessary authority, but more

visibility to the business, … it takes certain time to adapt. If you still see, that ok that‟s how it is,

I still have a lot to do, there are still possibilities that I can develop my way forward. If you, of

course, feel that my future is gone in Aponar is gone, then it is difficult to continue.

Q: When you doing that process you don‟t just write people a mail? You would have to go out.

In this respect, what you can do virtually, and what kind of organizational change processes you

can do face to face?

A: There is different ways. It is also that…When you have these local organizations - how much

you involve yourself in a local organization. It is like you said - you must be there, and they must

see you. For some key persons you can have deeper discussions. Of course, there is always a risk

that you should not involve too much. That the local management moves and all the things start

to move. So there is a balance always.

Q:Local to global mindset and how you actually create that kind of process and some of the

resistance you see from local managers. Challenging!

A: Because I have been working with that I think, in 1995 I started. We have done several efforts

and sometimes succeeded, sometimes not and then of course you must think how to do it. I have

worked very long time actually, more then 20 years in sales and marketing. For me it is very

much sales&marketing. You must sell this kind of thinking. Then it is like we all know,

communication is a lot, you must put a lot of effort to pick the words. Message is the most

important, but wrong words can ruin everything. That should be avoided if possible.

Q: Wrong words in a sense that you say too much or …?

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A: Too much, as in you say that in the way what is not supporting the message. Then it is easy

that if I want to make for you clear, that there are no other options. I can do it in several different

ways. My job is to transfer the message to you that this is the only way. Not that I say to you, but

that you do. It is not easy.

Q: No… And I guess there is also a difference between…because when I write or read a mail, it

can sound harder than when you communicate it verbally. The ability to actually say things in

different ways it may be easier verbally or…?

A: When you mentioned emails, I have a rule - never sending negative feedback by e- mail. The

reason is simple – it can be misunderstood. Then of course, I have seen so many conflicts

generated by emails. People get emotionally affected and then they make an email. It is sent and

you have no guts to call afterwards to say that was a mistake and then a conflict continues. Of

course, if you have done a practical mistake, and I just ask. I don‟t see it as a negative, I just see

it as please correct the mistake. E-mail is not very good for the feedback. If you send the same

message to others. If you cc other people…That is really dangerous.

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Appendix 3: Interview transcript with Iberia Quality, Environment, LPR Manager, Portugal

Background: guarantees that Iberia Aponar accomplishes all the procedures defined by European

institutions, standards. Coordination - 2 in Portugal, 2 – Spain, maintain all the team together

however they are located separately in order to reach goals because they are not for Portugal or

Spain but for Iberia. We work as team and try to maintain the spirit.

Q: And you say you work like a team, what is it that you do in order to get the team feeling or

team collaboration?

A: I try for them to take part/participate in everything; for instance everything. Truly feeling that

they can participate and that they are very important to company. Every time it is necessary to

take some decisions, that their opinion is important, that I take it into the consideration a lot. I

understand communication like much more important because it is not only talking. When 2

people see each other, they don‟t even have to speak, maybe a look etc it says enough. I try to

(like I said 2 of them are in Portugal, two are in Spain) maintain/to keep them in that spirit, that

we can improve everyday our job, our communication, our team, our strength.

Q: And, how do you see you talked about communication being not only speaking together, but

also being a look and so on…How often do you meet them face-to-face and when do you decide

to meet them face-to-face and when do you think it is ok to just communicate through mail and

telephone?

A: First of all, min. every month I talk face-to-face to all of them. It is important the eye

communication. Minimum once per month I talk face-to-face with all of them. By phone I talk, I

can not say every day, but 80-90% of the day I talk every day with all of them by phone by mail,

mostly by phone. I try to make people to forget the distance! And I insist with them, pick up the

phone and speak. First of all, speak speak speak! That‟s the very important between them! […]

Q: And when you say speak, is it better, is it to say, do you see it, when do you decide when

something should be said over the phone and what kind of things do you write mail about. Is

there a difference between the two? Do you understand?

A: Difficult to say.

Q: Yeah, yeah I know. Maybe there is no difference, I don‟t know.

A: It is a very good question. For me all communications are important, even when they don‟t

look like that. For me all are important because the communication should be maintained and

improved. What I try to do is … when, for instance, it is necessary to eh…how can I say,

compilation of several issues or is necessary talking about one specific issue and appears this

issue is to be more dangerous/serious/emotional I try to meet face-to-face. I think that every

issue, not all of course, but mostly I talk about them face-to-face and by phone. I think it is

difficult to think one issue I talked only by phone or email. Because when we have an issue

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handling, it takes some time to solve. If it is possible to say for each issue it is quite sure we talk

face-to-face.

For instance, last week Wednesday I think, afternoon I talk with all of them. Because it is normal

work and it was necessary to speak and I pick up the phone and speak 2 times, 3 times, 10 times.

To forget the distance every time.

Q: So it is a bit more unstructured, you just pick up a phone whenever you see there is a

problem?

A: Imagine, if I want to speak with all of them, what I do? I take my seat, I go to his office and I

speak to them there. […]

Q: It is something mentally thinking that the distance is not there. And just acting like you are

located together?

A: Yes. That‟s it. That‟s what I try to do every time.

Q: You talked a little bit. You said it is important that it is not only good for Spain and not only

good for Portugal, but it has to be good for Iberia and you said being a manager of Iberia. How

do you see that integration with Iberia into Aponar Europe. How do you see that between the

local and European level? Is that difficult to get that integrated, to get an understanding in Spain

and Portugal about the larger goals of the company?

A: I think it is easy. Because like I said communication is…Europe is very little. One of the most

important things is the culture of the countries. The key is the culture of the country, culture of

the people are very important in this kind of organization. Why? Because same trick. I have this

example - exactly the same problem. You should put a Portuguese person, the Swedish or

Finnish or German or French from another country. Each one has different answers. Each has

different points of view. Same colour, same power, explain but… Portuguese person is different

than Swedish person, why colour is the same. Culture in my opinion is change. Communication

between these organizations, it is very important that each one of us think that on the other side

there is a colleague for example, from Germany and he can understand it different way, be

careful with that. Maybe what to me is green for him can be yellow and then the communication

is destroyed completely. Completely. This is the first, what the small organizations must be

careful, is this one. The cultures and […]

Q: I think I get your point. I guess, is it true that other quality managers are sitting with there are

responsibility, that are kind of your colleagues. And in working with them, one in Germany, I

guess, and one in Sweden, and when you work with those people and you say culture influences

communication, do you see some challenges there, have you experienced some challenges in

collaboration with them because they are from other cultures?

A: Eh, sorry, but can you rephrase, I am not sure…

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Q: When you communicate virtually with the people in Germany and then Sweden…Have u

noticed, you talked about culture having an effect on communication. Have u noticed challenges

in communicating with Sweden and Germany?

A: Yes.

Q: Yes? And how does that show, do you have some examples or?

A: Like I told you, for instance, one complete claim – the claim is the same, all the same

conditions, but analyzed differently and with different solutions. Why? Because I am Portuguese

and because he is German. We should be careful – first of all, we must to reach agreement

between both of us. But most importantly, we must focus on the client and his culture and not

only take decision thinking with our philosophy. So, for instance, this claim, if it is in Portugal,

so every decision it should face the requirements of the Portuguese clients. Why? Because the

clients in Portugal are different from clients in Spain, from the clients in France, from the clients

in Sweden, you know? Why? Because we are all different, culture is different. So the same

claim, the expectations of solutions of the claim in Portugal are different for the same claim in

another country. We must understand what client are we talking about, we must be open-minded,

reach a compromise.

Q: Do you feel that people sitting in Germany and Sweden share your view? Do you feel that

they understand this challenge same way as you, meaning are they open for the fact that culture

matters?

A: I think some – yes, some – a little less, but I think in general – yes! I think, in general all the

people understand it. The most important thing is not to forget it. The most important is to keep

remember, not only speaking about it. The conversation, like we having now. Different thing is

in the daily practice…Another issue, another challenge.

Q: It is easy enough to sit like we do now and speak and reflect upon it but actually doing it

every day actions in organization can be challenging?

A: We must understand that everything in our life can be improved.

Q: Who is it you are referring to? Who is your boss?

A: My boss is […]

Q: Ah, ok. How do you feel the communication is with him? You spoke a little bit, or you said

that on your team u act like there is no distance you also just pick up the phone. Is it the same

with him do you do it with him?

A: Not so easy. I try, I do that. But it is not so easy.

Q: Is it because he is your boss or …?

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A: No, all are important. All of us are bosses. I try to speak with him. He must do a bit more

about being closer. Sometimes I think I am a lucky guy, but I miss that maybe he could make

me talk to him more. It is not only his job, competence. Communication must be responsible

from each parts. But I don‟t know, you understand me?

Q: Yes. So what I hear u saying is that on your team u act like there is no distance, but with him

u feel that there is distance?

A: How can I say, yes, but not that much. Because, in his own team, he probably feels the same

way I feel in my team. […]But it is not black or white. I have to keep it in mind. I am not

complaining.

Q: When you say that you would like to hear more – is that, do u want more face-to-face

meetings or communication on phone?

A: With my boss?

Q: Yes.

A: I think it is important that my team sees my boss too, for instance.

Q: It is not only the manager near to the manager, but also the employees under.

A: Yes. Why? Because we are all the same team. It is like football team. If the team, the players,

the coach… if half of a team doesn‟t see the coach…how they can play? You understand? But

once again, I understand [my boss], perfectly, because why? Because he has a lot of people, he

can‟t be like god, but at the same time you have to explain and open your mind.

Q: Yeah. I think we are getting there. Just one more question. Do you see, between, because in

your team – Portugal and Spain, are you speaking Spanish together or Portuguese or English

or… ?

A: We talk in Spanish.

Q: You talk in Spanish… And when you speak with Ralf and other people sitting in Sweden, I

guess you speak English together? Has language been an issue for getting the communication

flowing in this setting?

A: Yes, for sure. Language is very important.

Q: Can you give some examples of some of the challenging aspects that influences how you

work together on that team due to language?

A: For instance, our office in France tries to speak English. It is not my mother language. So, if

this conversation between you and me, is not in English and is in Portuguese maybe I can explain

better what I feel, maybe I…I…I don‟t know it is different. You understand me? How can I

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explain it better? Like I said, because we might understand each other. That our Swedish

colleagues, they prefer to speak Swedish, we must speak English why? Because it is our way of

communication. My colleague is Sweden, mother tongue Swedish. Open mind and we speaking

English.

Q: Would you rather…now that you mentioned the language issues and we all have different

levels of speaking English do you prefer then to write mails instead of speak over the phone,

because then you can see what it is, before you send it then you can control this is what you want

to say or do you just pick up a phone and don‟t care too much about it?

A: Depends. If it is, how can I say, several issues, maybe I prefer to first to speak by phone, and

then by email in order to clarify. So I try to speak with the person and then send summary of the

conversation what we have discussed what we have decided, lets say. So I try to mix both

situations in order to ensure that as much as possible at each other.