Cultural Differences in Business

Cultural differences are considered as one of the main reasons for work stress and management conflicts during business relationship development in the U.S and China (Li, 2009). Chinese avoid confrontation especially when the conflict is with someone who holds authorities. The Chinese believe that direct approach with the boss will ruin their relationship with him (Johnston & Hongmei, 2009). Cultural diversity has two dimensions, the first consists of age, ethnicity, gender, race and sexual affection orientation which molds the workers self-image and fundamental worldview. The second dimension manipulates the workers self-esteem and definition because it consists of “educational background, geographic location, income, marital status, religious belief” (Edewor & Aluko, 2007, p. 190). The cultural diversity would strengthen the differences between two countries. Globalization help advancing business growth and taping economical resources but cultural differences would limit theses business opportunities. Pinggong (2009) stress the importance of not isolating one culture from the other but to try to relate the cultural experiences and integrate them to have a harmonious organizational culture.

The Islamic culture stress the importance of bonding and team work. Similar to the Chinese culture, the Islamic culture would demand respect and obedience to the superiors and leaders. Most of the Arabic cultures (mostly Muslims) are build on the fundamental of electing an Amire (leader) and then follow the leader whom the community had selected.
Reference:
Edewor, P. A., & Aluko, Y. A. (2007). Diversity management, challenges and opportunities in multicultural organizations. [Article]. International Journal of Diversity in Organisations, Communities & Nations, 6(6), 189-195.

Johnston, L. M., & Hongmei, G. (2009). Resolving conflict in the chinese and U.S. realms for global business entities. (English). [Article]. China Media Report Overseas, 5(4), 22-36.

Li, C. (2009). Managing business relationship development: A cross-cultural perspective. Portuguese Journal of Management Studies, 14(2), 123-147.

Pinggong, Z. (2009). Rethinking the impact of globalization and cultural identity in China. [Article]. China Media Research, 5(2), 25-34