The process of organizing and successfully running a business in a culturally diverse setting – especially carrying out serious projects – is quite complex in terms of cross-cultural management.
According to Drucker and Maciariello (2015), managing leads must create an entrepreneurial culture in the organization if it does not exist there yet. This can only be achieved through constant communication – both between cultures and business attitudes. Mitra (2020) supports this claim, stating that the diversity of approaches based on communication is the key to understanding the concepts of entrepreneurship, innovation and development, as they are linked with people, organizations and the environment. However, if the communication is put within strict boundaries and limits, there would not be a chance to truly embrace cultural diversity and, as a result, enhance the culture.
Shore, Cleveland and Sanchez (2018) explained that today, in terms of increased cultural sharing, most related research aims to improve work environments by supporting inclusion and diversity among employees. Moreover, Allen et al. (2018) suggest that in culturally enhanced work environments, employees show better commitment to their organization, even if they do not perceive their job as personally meaningful. Lastly, Hisrich and Kearney (2014) claim that entrepreneurial growth is strongly associated with diversity challenges, among other factors. However, there are also drawbacks to business processes between countries with similar cultures.
For example, Jain and Pareek (2019) explain that in intercultural business relations, people might operate on the wrong assumption that their partners have the same concept of responsibility, while in reality, they are not. Additionally, Dover, Kaiser and Major’s (2019) research adds that some diversity initiatives, even when the cultures are similar, might affect the performance of underrepresented employees groups negatively. Finally, Velten and Lashley (2018) support that claim by adding that culturally diverse workplaces tend to become a field for interpersonal conflicts between employees.
Still, the current trends of bringing together different cultures prove to be one of the crucial success factors in entrepreneurship. For instance, Roberson, Ryan and Ragins (2017) state that lately, diversity has become quite an important variable in the context of business relations, which directly influences employees on many levels. Thus, it is safe to conclude that for culturally compatible countries, it is of utmost importance to establish well-communicated business relations. Such relations have the potential to provide both sides with a high-skilled workforce and innovations, which are both crucial for entrepreneurial success in the modern world.
Reference List
Allen, S. et al. (2018) ‘Exploring a model of servant leadership, empowerment, and commitment in nonprofit organizations, Nonprofit Management and Leadership, 29(1), pp. 123–140. Web.
Dover, T.L., Kaiser, C.R. and Major, B. (2019) ‘Mixed signals: the unintended effects of diversity initiatives, Social Issues and Policy Review, 14(1), pp.152–181. Web.
Drucker, P.F. and Maciariello, J.A. (2015) Innovation and entrepreneurship. Abingdon, Oxon: Routledge.
Hisrich, R.D. and Kearney, C. (2014) Managing innovation and entrepreneurship. Thousand Oaks, CA: SAGE Publications.
Jain, T. and Pareek, C. (2019) ‘Managing cross-cultural diversity: issues and challenges, Global Management Review, 13(2), pp.24–32. Web.
Mitra, J. (2020) Entrepreneurship, innovation and regional development an introduction, London, UK: Routledge
Roberson, Q., Ryan, A.M. and Ragins, B.R. (2017) ‘The evolution and future of diversity at work, Journal of Applied Psychology, 102(3), pp.483–499. Web.
Shore, L.M., Cleveland, J.N. and Sanchez, D. (2018) ‘Inclusive workplaces: a review and model’, Human Resource Management Review, 28(2), pp.176–189. Web.
Velten, L. and Lashley, C. (2018) ‘The meaning of cultural diversity among staff as it pertains to employee motivation’, Research in Hospitality Management, 7(2), pp.105–113. Web.