Impact of History on Culture & Business
By Atma Global (http://www.atmaglobal.com/)
It’s simplistic to think that trade is just about business interests in each country -- global trade is much more. There’s a convergence and at times, a conflict of the interests of the different stakeholders—from businesses, to governments, to local citizens. In recent years, advancements in technology, a renewed enthusiasm for entrepreneurship, and a global sentiment tilting towards free trade have further connected people, businesses and markets – all flatteners that are helping to expand global trade and investment.
As more businesses seek to operate outside of their home country, they find themselves facing different cultures and business environments. Whether a firm is doing business in Europe, the Far East, North America, or any of the other region, understanding modern history at all levels is essential for business success.
History has a deep impact on the evolution of the local culture – understanding this evolution is essential for doing business in any country. Most people hear about culture and business and immediately think that it’s just about a protocol, a list of do’s and don’ts by country. Don’t show the sole of your foot in Saudi Arabia. Know how to bow in Japan. While these are certainly true, they are just a tiny tip of the iceberg. We often underestimate how critical local culture, values, and customs can be in the business environment. The local beliefs, values, mind-set and practices all constitute a culture and impacts how we think, why and impacts all interactions. Culture is really just the collective programming of a mind from birth.
Understanding culture often means knowing the local history and how local businesspeople view foreign businesses, products, and people. Read the current media, and we think that a country may just be “opening” to the world, and yet the local leadership may have been doing business with select multinational firms for decades. There are strongly felt local perceptions about businesses from the U.S., Europe, Russia, China and Asia – and underestimating the value of these perceptions can impact the bottom line.
Many people assume, usually incorrectly, that business is the same everywhere. Culture does matter. From the simplest of factors such understanding why your multicultural work teams may not be collaborating well, despite technical synergies, to workers behaving opposite to local cultural norms in a country. Culture is still a key factor in global business.
Human nature is such that we each see the world through our own cultural shades. Tucked in between the lines of our cultural perspective is an unconscious bias that sometimes limits us from viewing other cultures objectively. Judgments of people from other cultures will always be colored by this frame of reference.
Cultural values do change over time; cultures and values are not static entities. Around the world, values and cultures are evolving from generation to generation as people are influenced by things outside of their culture. In modern times, media and technology have probably single-handedly impacted cultures the most in the shortest time period -- giving people around the world instant glimpses into other cultures, for better or for worse. Technology may bridge us, but local culture still defines our uniqueness. It’s essential to learn how culture impacts your global objectives.