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THE HUNGARIAN SAYS »YES, OF COURSE«, ACTUALLY HE MEANS »NO!«

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67% of all international collaboration collapses
Why is the Russian business partner altering the contract for the hundredth time? Why has the performance of the whole sales team of the joint venture partner in Poland drastically fallen following the introduction of a bonus system? Why has the Indian project not been completed by the agreed due date? And why does the Hungarian always say »Yes, of course«, although he actually means »No«?

We can only answer these questions through a careful study of the business culture of our partners. Culture is a very complex and elusive phenomenon. It touches every area of our lives. We often only become aware of our own culture upon meeting other cultures and noticing differences.

In the business world we tend to first notice behavioural differences, for example a different way of perceiving time or the different customs of the business partner.

Intercultural Management

However we can often only unconsciously sense drastic differences such as inner values and basic principles.

Intercultural Competence is Essential
Precisely these differences are of decisive importance, as international studies demonstrate: ca. 67% of all worldwide cooperation collapses. The majority of foreign ventures are aborted early. 30% of these transnational ventures collapse due to technical, financial and strategic problems, at least 70% however because of intercultural difficulties. Extensive engagement with cultures and the strengthening of intercultural competence of all internationally operating employees and management is essential for the success of international projects.

Only then is it clear, for example, that the Japanese business partner has not failed to respond to the first offer for a week due to negotiating strategy, but because in collective countries the group decision takes even longer and long term planning is carried out. When we are aware that our Bulgarian business partner has no Bulgarian word for »deadline«, but must paraphrase this concept in his/her language, or that the word »strategy« in some countries means an »approximate orientation« - and not at all a precisely formulated  operational goal to be rigidly adhered to - then we will rethink or otherwise communicate our timing schedule and strategy.


Compensating for Cultural Differences
Intercultural intelligence means not only recognizing cultural differences, but also correctly interpreting and compensating for them.

Besides empathy and openness towards other cultures, then, one must also include flexibility in behaviour, tolerance and aplomb in dealing with unfamiliar situations as well as the ability to recognize different conventions of communication and to adapt oneself accordingly.

Meticulous preparation distinctly enhances the chances for success in foreign ventures and expansion. In intercultural workshops and seminars management and skilled personnel receive important information on the historical, social and business influences of the target country. They get to know the negotiating and dialogue culture of the business partner, practise dealing with conflicts and work out active solution strategies for critical situations.

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Mag. Klara Parfuss