cultural differences between south africa and thailand
DESCRIPTION
TRANSCRIPT
““South Africa meets South Africa meets Asia”Asia”
Introduction:
• Culture deals with elements such as beliefs, arts, morals etc. (Cateora et al, 2009)
• Differences must be understood to be culturally sensitive
• This may aid in developing business relationships
Problem and Aim:
• Determine cultural differences between South Africa and Japan/Thailand
• How the dimensions of culture affect Island View Shipping (IVS) operations
• The role which relationships play in business transactions.
Theoretical Discussion:
Culture is:• How we think, feel and act• Based on the environment
where people live• A group phenomena• Learnt, not inherited• Neither right nor wrong
(Hofstede, 2005: 3 - 6)
Theoretical Discussion:
• Cultural acts are perceived differently (e.g. Handshake)
• Problem solving techniques are different• Values must be assigned• Variations must be understood to develop
relationships
(Trompenaars, 2002: 13 – 16)
5 Dimensions of Culture
1.Power Distance2.Individualism vs. Collectivism3.Masculinity vs. Femininity4.Uncertainty Avoidance5.Long Term vs. Short Term orientation
Cultural Model:
1. What are the key cultural differences IVS faces when conducting international business?
2. How do managers of IVS manage cultural differences in order to build long-term international relationships?
3. Do cultural differences create problems for IVS?
4. How do cultural differences contribute to the operation of IVS?
5. How do the cultural differences the firm faces affect the leadership?
Research Questions:
Data Collection:
• Snowballing/Purposive approach• Antony Brown interviewed at Island View
Shipping’s head office in Durban• Russell Wright interviewed at his residence• Semi-Structured, individual in-depth interviews
based on Hofstede’s 5 dimensions of culture.• Controlled by the Researchers• Interviews lasted +- 1 Hour
Background of Island View Shipping
• Established in 1976 by The Tiger Oats Group• Acquired by Grindrod in 1999• Ships between 15 – 18 million Tonnes per
annum• Joint Shareholder in Island Trading and
Shipping which is based in Singapore
Research Findings:
Objective 1: What are the key cultural differences Island View Shipping faces in international business?
Management Style Degree of Adaptation
Power Distance Index Affiliation and Social Acceptance
Power and Achievement Communication Style
Gender bias Corruption and Bribery
Culture Type Other Cultural Elements
Research Findings:
Objective 2: How do managers of IVS manage cultural differences in order to build long-term relationships?
• Island View Shipping sends their employees on a culture course prior to proceeding to do conduct international business.
• The employee also utilises the internet to further research culture
Research Findings:
Objective 3: Do cultural differences create problems?
• Open Minded Policy• Adapt to Other Cultures• “So long as you are humble, respectful and present
yourself in a courteous way – that transcends into the majority of cultures” (Russell Wright)
• However, one incident was mentioned in which a Danish manager was unable to adapt to the Asian culture and shortly left
Research Findings:
Objective 4: How do cultural differences contribute to the operations of IVS?
• Communication Style• Management Style• Employee Diversity
Research Findings:
Objective 5: How do cultural differences affect the leadership?
• Leadership style in Thailand is much more formal.
• There is no direct access to higher management.
• Titles are important in Thailand, as people like to think they are dealing with someone with authority.
Analysis
Objective 1:• Different in Power Distance, Masculine vs.
Feminine• “Grey area” in Individualism vs. Collectivism• Daily culture transcends into business culture• Other cultural elements have little impact on
business
Analysis
Objective 2 and 3:• No major problems because of adaptation and
previous experience in SAObjective 4:• Understanding of cultural relativism and SRCObjective 5:• Local way of doing business prevails but
change is possible
Conclusion:
Recommendations for future research
• Wider scale• More Hofstede’s culture dimensions • Success factors in shipping business• Who is meant to adapt to the new culture?
The host or the guest?
End of Presentation