Navigating the complexities of international business requires more than just technical expertise and a strong handshake. Cultural nuances, often subtle and deeply ingrained, can significantly impact the success of cross-border collaborations. One crucial dimension to consider is Power Distance, a concept developed by Geert Hofstede that describes the extent to which less powerful members of a society accept and expect inequality. Understanding how Power Distance manifests in different cultures is vital for effective communication, decision-making, and building trust with international partners.
John, an American senior scientist, traveled to Indonesia for a three-week business trip. He had decision-making in the US office but noticed that it was not the same in the Indonesian office. He tried to advocate for and promote his ideas many times, but it didn’t work. He felt he was ignored, not heard, and even on some occasions not taken seriously by higher-ranking employees in Indonesia. He returned to the US after an unsuccessful trip and was very puzzled about how to navigate this and convey his decisions. He wanted to be prepared and learn about different strategies to use during his next trip.
Stefani, a German chief engineer, worked closely with her partners in Saudi Arabia. Both sides were interested in completing a project on time (or so it seemed). During weekly meetings, Stefanie noticed that her Saudi Arabian colleagues were delaying the process by not making any important decisions. She felt that all her efforts didn’t bring any results. She was committed to making the decision on time but didn’t see the same from her Saudi Arabian counterparts.
There is something in common between Indonesia and Saudi Arabia - both countries have a strong hierarchy that also is known as high Power Distance.
Geert Hofstede, famous Dutch social psychologist and pioneer of cross-cultural research described Power Distance as:
“This dimension deals with the fact that all individuals in societies are not equal - it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”
As we can see in the graph from The Culture Factor Group, John came from a lower Power Distance cultural background. It means his position and title have the power to make decisions in the US, as he is an expert in his field, and in theory, his role should be the same for his Indonesian office. But in Indonesia, the Power Distance (hierarchy) is very high. John noticed that his authority in the US didn’t transfer to Indonesia. It means he is required to have some other tools and strategies to convey his decisions. Also, in Indonesia, the employees expect to be told what to do and when. Control is expected and managers are respected for their position. John has difficulties disagreeing with his superiors in Indonesia, and his arguments are not taken seriously.
The same dynamics exist between Germany and Saudi Arabia. To meet the deadline, Stefanie took the initiative to make decisions in Germany, anticipating similar decisiveness from her Saudi Arabian partners. However, her colleagues could not make similar decisions and had to consult their superiors, which took some extra time. The results were a delay in the completion of the project, frustration, and unnecessary stress on both sides.
Successfully navigating cross-cultural collaborations requires a proactive and adaptable approach. By carefully considering factors like decision-making styles, fostering genuine relationships, and embracing cultural learning, businesses can mitigate potential challenges and maximize the benefits of working with international partners.
Some key strategies for navigating these intercultural complexities, while emphasizing the importance of cultural sensitivity, open communication, and a willingness to adapt to different ways of working, include:
There's no single guidebook to mastering every cultural nuance. However, you can embark on a journey of cross-cultural learning today by exploring the various cultural dimensions that influence communication, decision-making, and workplace dynamics. This ongoing exploration will empower you to adjust your behavior and adapt to new work habits.
Consider making cross-cultural awareness a key focus for the new year. If you regularly collaborate with colleagues or clients from different cultural backgrounds, actively seek opportunities to learn about their perspectives and work styles. Engage in open and honest conversations about the challenges and opportunities that arise from these cultural differences. By working together to understand and address these challenges, you can build stronger, more effective, and more rewarding international collaborations in 2025 and beyond.
This blog post was written by Marina Rowe, Cultural Program Manager.