Introduction
Nowadays, companies strive to expand their presence worldwide and access multiple markets to boost revenues and brand recognition. However, while some might assume that an expansion requires only investments in plant construction and continued operations, there are additional managerial considerations. More specifically, it is crucial to focus on the company’s culture and on enhancing operational success through a team-oriented approach.
When an example of a European company establishing its presence in the Middle East, it is vital to recognize the cultural differences. The operational success of the European company in Saudi Arabia can be achieved through the Situational Leadership Model, which can improve communication among team members, boost collaboration, and foster a sense of belonging.
Key Differences Between European and Saudi Arabian Business Operations
Before discussing the team model for creating and sustaining a specific atmosphere, it is necessary to review the differences between the two cultures. The concepts of individualism and collectivism are often portrayed as extremes of the same continuum when discussing cultural differences (Grossmann & Santos, 2020).
Individualist cultures place strong emphasis on self-expression, autonomy, and independent thought, as well as on achieving one’s objectives and rights (Grossmann & Santos, 2020). Collectivist cultures place a strong emphasis on relationships, social duties, in-group objectives, unity, connection, and acceptance (Grossmann & Santos, 2020). As a result, while Saudi Arabia, as a collectivist culture, is more focused on the community, individualist cultures in Europe are centered on personal needs, goals, and interests.
Moving on, societal differences are evident when comparing the two cultures. The European Union continues to prioritize work-life balance in its policies (Björk-Fant et al., 2023). The phrase overall integral evaluation of integration between family and professional roles describes work-life balance (Björk-Fant et al., 2023).
Policies regarding work-life balance are approached differently across welfare systems (Björk-Fant et al., 2023). The state supports balancing work and life in the Nordic region, where employment is highly regulated, and the dual-earner system is prevalent (Björk-Fant et al., 2023). Thus, the balance is vital to European nations.
In contrast to cultures that place a strong emphasis on individualism, the Middle East, Asia, and other collectivistic societies have a strong regard for collective principles such as community and familial relationships (Cheng et al., 2020). Individual wellness may not be as important as that of the family and group. Work is also viewed as a crucial component of one’s identity and social standing (Cheng et al., 2020). In this case, the values of the Saudi Arabian community differ, yet they emphasize unity with others.
Lastly, the economic differences can shape the perspectives prevalent in both cultures. Developed economies are characterized by the significance of exporting knowledge-intensive products and satisfying consumer demand (Gisbert, 2023). As a result, European economies are characterized by high stability and well-established regulations. Meanwhile, economies that are catching up are characterized by a preference for mass-production sectors and frugal consumer demand (Gisbert, 2023). Therefore, Saudi Arabia may face varying degrees of market competitiveness, legal and regulatory challenges, and infrastructure challenges due to its developing economy.
Team Model for Creating and Sustaining a Team-Oriented Culture
After careful consideration of the differences between the two cultures, promoting a culture of teamwork within the Saudi production facility would be advantageous by applying the Situational Leadership Model (SLM). According to the situational approach, if the followers seem capable but insecure, the leader should adopt an encouraging management style (Aslam et al., 2022). Such recommendations provide leaders with a set of principles that support and improve effective, efficient governance (Aslam et al., 2022). Situational leadership increases worker satisfaction and inspires workers (Northouse, 2022). As a result, almost every company, at any level and for almost any objective, can benefit from the situational approach.
When delving deeper into the model, several aspects must be reviewed. The situational leadership model covers four leadership philosophies—directing, coaching, supporting, and delegating—depending on the follower (Al-Khamaiseh et al., 2020). The first or most fundamental level of leadership style is directedness (Al-Khamaiseh et al., 2020). Almost all new hires require more directive leadership. Moreover, followers who have enhanced their dedication and level of competence are coaching candidates (Al-Khamaiseh et al., 2020).
Moving on, supporting focuses on the supporter who is now proficient at their work but is still a little erratic and not entirely dedicated (Al-Khamaiseh et al., 2020). Finally, creating a follower who appears completely in control and sufficiently skilled is the ultimate goal of delegation (Al-Khamaiseh et al., 2020). The SLM’s focus on collectivism and deference to authority makes it especially pertinent in Saudi Arabia. By using the SLM, the Plant Manager can adapt their leadership approach to team members’ levels of maturity, encourage staff growth, and foster a culture of unity and shared accountability.
Benefits of the Team-Oriented Culture
Finally, implementing a team-oriented culture using the Situational Leadership Model in the Saudi Arabian production facility can result in several advantages. The first benefit of adopting the aforementioned approach is that team members will experience a sense of common purpose, ownership, and belonging. Employees will have an opportunity to think as though they are moving closer to achieving the team’s objectives as a unit and making progress together (van den Hout & Davis, 2022).
This emotion develops through open communication about the team’s progress toward the shared objective and each member’s role in it (van den Hout & Davis, 2022). As a result of this open communication, everyone knows precisely how they perform and what individual and group actions are needed to reach their team-level and individual goals (van den Hout & Davis, 2022). As a result, this raises efficiency, lowers turnover, and increases motivation.
The second benefit of the model implementation is improved problem-solving and decision-making. In a diverse team setting, decision-making and problem-solving can be far more dynamic and effective (Northouse, 2022). The effectiveness of the proposed solution and comprehension of the issue can both be improved by the many different points of view (Piercy, 2021).
Different perspectives are more likely to surface in a diverse team with a range of experiences and backgrounds, and collaborators feel compelled to investigate and address the issues raised (Piercy, 2021). Once more, this facilitates a deeper conversation, more thorough fact-finding, and an examination of competing theories and points of view to solve issues.
Lastly, collaborative environments foster a culture of learning and innovation. Organizations have historically valued work methods that prioritize execution and planning over learning and creativity (Barker, Scott, & Manning, 2024). Collaboration is made possible by the combination of disciplinary knowledge, viewpoints, methodologies, tools, and technologies, which allows participants to solve problems and develop practical solutions to difficult ones (Barker, Scott, & Manning, 2024).
Sharing and absorbing each other’s domain logic is made possible by active conversation and improvisation among collaborators (Barker, Scott, & Manning, 2024). This goes beyond the straightforward transfer of knowledge. Thus, teams can identify and implement improvements that increase efficiency and effectiveness by fostering knowledge sharing and experimentation.
Conclusion
In summary, the Situational Leadership Model can help the European company operating in Saudi Arabia achieve operational success by fostering a sense of belonging, collaboration, and improved communication among team members. The freedoms of self-expression, independence, and autonomy of thought, as well as the ability to accomplish one’s goals and exercise one’s rights, are highly valued in individualist cultures. Meanwhile, in collectivist cultures, strong emphasis is placed on relationships, social obligations, in-group goals, togetherness, acceptance, and connection.
After comparison of the two cultures, it would be beneficial to implement the Situational Leadership Model to foster collaboration within the Saudi production facility. The situational approach states that the leader should adopt an encouraging management style when followers appear capable but unconfident. Workers will feel as though they are making progress as a team and getting closer to achieving the team’s goals. Furthermore, decision-making and problem-solving can be far more dynamic and successful in a diverse team environment. Finally, cooperative environments nurture a culture of growth and creativity.
References
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