National Culture is the manifestation of THE learned behaviors and beliefs of a Nation’s people. Culture has external aspects which are relatively easily identified (language, dress, food, etc..) as well as hidden aspects. National Culture is often compared to an iceberg. You can see a small part, but the largest part is hidden under the surface.

When doing business overseas we all expect things to be different. Many years ago, these differences were more visible than today. But since, American culture has been spread worldwide and globalization makes us think that cultural differences are being erased. However, even though the differences may seem smaller today, the under the surface cultural differences can still sink your International project.

Here’s a 1960 article from Harvard Business Review (The Silent Language in Overseas Business, Edward T. Hall), with a section on time:

“Everywhere in the world people use time to communicate with each other. There are different languages of time just as there are different spoken languages. The unspoken languages are informal; yet the rules governing their interpretation are surprisingly ironbound.”

In this 2016 article, also in Harvard Business Review (4 Ways to Manage Deadlines on Cross-Cultural Teams, Elizabeth Grace Saunders) we read:

“As a time management coach who has worked with clients across the globe, I’ve seen that there are varying ways of perceiving deadlines and timeliness in various cultures.”

While 50 years may have diminished the visible differences and have made them less pronounced, the underlying cultural reasons have not changed much.

It is important that you learn about National Culture differences such that you correctly interpret what is going on.

As your company expands in the international market, you will inevitably be exposed to cultures other than yours. Even if your overseas partner’s culture looks very similar in some regards, you should not extrapolate and presume they are the same. Using caution will help you cope.

When learning about cultures you may refer to helpful distinction first introduced by Edward T. Hall, the author of the above mentioned article The Silent Language in Overseas Business. He distinguishes cultures based on cultural orientation:

• Low-context cultures: these cultures communicate in spoken or written language, and the meaning of he communication can be determined from the communication itself. The communication does not need to be placed in context in order to be properly understood.
• High-context cultures: the context of the communication is important to properly interpret the message conveyed by the communication. High-context cultures typically use a lot of non-verbal communication.

German National Culture is low-context, while Japanese Culture is an example of a high-context culture. Obviously the greater the difference between the cultures the more difficult the communication.

The view of Hofstede, who distinguishes cultures along several dimensions can be helpful as well. Quoted directly from Geert Hofstede, Gert Jan Hofstede, Michael Minkov, Cultures and Organizations: Software of the Mind. Revised and Expanded 3rd Edition. New York: McGraw-Hill USA, 2010:

• Power Distance:

This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of Power Distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low Power Distance, people strive to equalize the distribution of power and demand justification for inequalities of power.

• Individualism vs. Collectivism:

The high side of this dimension, called individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. Its opposite, collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. A society’s position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”

• Masculinity vs. Femininity:

The Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented. In the business context Masculinity versus Femininity is sometimes also related to as “tough versus tender” cultures.

• Uncertainty Avoidance:

The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. The fundamental issue here is how a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? Countries exhibiting strong UAI maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles.

• Long Term vs. short term orientation:

Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.

Societies who score low on this dimension, for example, prefer to maintain time-honored traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.

In the business context this dimension is related to as “(short term) normative versus (long term) pragmatic” (PRA).

• Indulgence vs. Restraint:

Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.  Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.

Not understanding how the National Culture of your target markets is different from yours will lead to misunderstanding, erosion of trust and inevitable failure of your International venture. It is mandatory that you take culture into account when you conceive your International Plan.