Examples of Cultural Differences in Business

by Linda Ray, Demand Media
Europeans often kiss associates on the cheek instead of shaking hands.

Europeans often kiss associates on the cheek instead of shaking hands.

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As your business grows, you may develop a diverse group of employees. While diversity often enriches the workplace, it can bring a host of complications as well. Various cultural differences can interfere with productivity or cause conflict among employees. Stereotypes and ignorance about different traditions and mannerisms can lead to disruptions and the inability of certain workers to work effectively as a team.


Different cultures have varying expectations about personal space and physical contact. Many Europeans and South Americans customarily kiss a business associate on both cheeks in greeting instead of shaking hands. While Americans are most comfortable at arms-length from business associates, other cultures have no problem standing shoulder-to-shoulder with their peers or placing themselves 12 or fewer inches away from the person to whom they are speaking. In Russia, according to the University of California, female colleagues often walk arm in arm, while the same behavior in other cultures may signify a more personal or sexual relationship.


Different cultures communicate through various levels of context, according to the Tepper School of Business. Low-context cultures such as Canada, the United States, Australia, New Zealand and most of Europe, require little or no explanation of orders and requests. High-context cultures, which include most other Eastern and South American populations require and expect much more explanation about orders and directions. Businesses that operate with a low-context form of communication spell out the specifics in the message, while those from a high-context communication culture expect and supply more background with their messages.


Western and Eastern cues have substantially different meanings in business. The word "yes," for example, usually means agreement in Western cultures. In Eastern and high-context cultures however, the word "yes," more often than not means that the party understands the message, not necessarily that he agrees with it. A handshake in some cultures is as ironclad as an American contract. A period of silence during negotiations with an Eastern business associate may signify displeasure with your proposal. While frank openness may be desirable in Western cultures, Eastern cultures often place more value on saving face and avoiding disrespectful responses.


While Western cultures proclaim to value relationship-based marketing and business practices, in Eastern and high-context cultures, a relationship involves longtime family ties or direct referrals from close friends. Judgments made in business often are made based on familial ties, class and status in relationship-oriented cultures, while rule-oriented cultures believe that everyone in business deserves an equal opportunity to make their case. Judgments are made on universal qualities of fairness, honesty and getting the best deal, rather on formal introductions and background checks.

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