CULTURAL DIALECTICS
Definition of a dialectic: When a “thesis” (a behavior or social practice in one culture) clashes with an “antithesis” (a
conflicting behavior or social practice in another culture), they sometimes evolve over time into a “synthesis” of a new,
similar behavior or social practice in both cultures. Examples: China’s recent shift to capitalism; consumer preference for
Japanese vehicles in many Western cultures; the growing popularity of soccer in the USA; the spread of “political
correctness” in most Western cultures; the practice of off-shoring manufacturing to Asia/India by a majority of Western
nations.
INDEX
1. Africa-China: China is forming economic development, mutually-beneficial partnerships with developing nations on all continents as
a way to harness its booming economy and to build political friendships. page 2
2. Britain-Germany: A massive global wireless marketing and technological partnership between two Anglo-Saxon nations. page 4
3. Finland-Germany-China: Two European cellphone giants look to China for cheap manufacturing & marketing in a bid to stakeout
the enormous Chinese digital communication market. page 5
4. France-Turkey: French retail giant seeks to penetrate Middle Eastern markets through a non-hostile portal nation page 7
5. Italy-MX: A medium-size Italian business uniform supplier expands its market outside Europe into the USA by establishing a costsaving manufacturing facility (“maquiladora”) in a city on the US-Mexico border. page 9
6. Japan-India: Japan’s small vehicle manufacturer, Yamaha, enters into a technology/market-sharing alliance with India’s Tata
Motors, the world’s largest producer of hyper-compact driving vehicles. page 11
7. MX-USA: A small entrepreneuri13l collegiate athletics wear operation exports Big 12 Conference fan wear from Mexico back to each
of the Big 12’s ten schools. page 13
8. USA-MX: America’s glassware and construction supply firm Corning merged with Mexico’s Vitro, one of the world’s largest home
glassware makers, to synergize their supply chain and marketing efficiencies. page 15
9. South Korea-Russia: Russia looks to cash in on the Asian boom market by trading oil for South Korean technology. page 17
10. Sweden-USA: Volvo & General Motors want to shore up their mutual competitive weaknesses via synergizing their mutual
competitive strengths. page 18
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CULTURE DIALECTIC #1: Africa ~ China
China is forming economic development, mutually-beneficial partnerships with developing nations on all continents as a way to
harness its booming economy and to build political friendships.
Where
Who
What
Why
How
CROSS-CULTURAL SETTING
Various African nations
Chinese and African nation governments and state companies
China’s support of African national economic development in return for favorable access to African natural resource exports
and African land for Chinese farmers
Chinese agriculture has run out of fertile land to grow food staples on (since decades of dysfunctional Chinese land utilization
and pollution has destroyed extensive amounts of its domestic farm land). Also, Chinese is currently building a 21 st century
global empire with under-developed nations (especially in Africa, Latin America, and the Middle East) that were historically
imperialized/exploited by Western powers and are now trying to get on their feet economically with a new partner less
exploitative than the West.
China gives the partnering African nation large economic loans and the technology for large Chinese-labor construction
projects (streets, dams, medical facilities, electrical plants, etc.) thus creating industrial jobs in Africa for numerous skilled
Chinese workers who need work, as well as fertile land for large-scale Chinese-African agricultural projects.
“Traditional”
cultures
(most
African culs)
China
“Traditional”
cultures
China
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CULTURAL/NATIONAL DNA
Adaptation culture; Polychronic; Agricultural; High context; Religious; Separate gender roles; External locus of control;
Quality of life; Large extended families and possibly tribal groups; Weak institutions; Low tolerance of social diversity;
Emotionally expressive; Cooperative and community-minded; Unconditional acceptance of cultural insiders
Harmony etiquette; Feminine style communication; screened communication; Emotionally-neutral; Non-deity religion
(Buddhism); Niche-based social duties; Idealism (non-pragmatic); Adaptation culture; Both/and thinking > either/or
thinking; High power distance; Low tolerance of social diversity; “Face” (community respect) conscious; Polychronic;
Strong self-discipline; High distance physical proximity; Social conforming; Taoism: Holistic approach to community
and personal harmony
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Hard workers and loyal; Jobs > careers; Distrust of institutions; One-day-at-a-time; Women work at home > companies; Wary
of cultural outsiders; Usually honest and transparent; Do/accept what they are told; Often make good team members
Desire to become the world’s largest economy within a decade; Hard working labor force specializing in mass-produced
generic products (typically for Walmart); Strong backing of Chinese government for high-potential Chinese companies to
become recipients of off-shored manufacturing; Government-backed Chinese corporations are driven to find to find both legal
and illegal ways to obtain Western technology; Family businesses involved in networking with other family businesses;
Inexperienced in capitalism; Marginally-skilled, but rapidly-improving plentiful work force; Shifting away from reliance on small
to larger Chinese companies; Aggressive business dealers but under-equipped, especially technologically; Cagey &
exploitative bargainers and strategists; Strong global presence via pragmatic off-shoring and mutual back-scratching
arrangements with developing nation governments; non-unisex organizations
CULTURE DIALECTIC OUTLOOK
China doesn’t have a negative colonialism past to overcome within Africa, since it never imperialistically exploited Africa as so
many Western nations did (for slaves, diamonds, and natural resources) in the 19th and 20th centuries.
China’s political pragmatism (no interference with African nation politics and sociology) may minimize resentment from the African
nations they partnership with.
Africa’s severe need for economic development and technology potentially creates a very positive outlook for their China-African
partnership.
China has no labor unions to worry about in African nations, nor business regulations, minimum wage laws, nor high corporate
taxes. The large and youthful labor forces in many African nations are also conducive to China’s success, as is the skilled
technicians China will import into Africa.
Most African nations currently have authoritarian, highly centralized (lack of power at the grass roots level) governments, just as
China does.
China faces little competition in Africa from Western nations, who collectively withdrew from the continent in the 20th century.
Chinese laborers and farmers in Africa feel fortunate and motivated to be there, since they lacked substantive jobs in rural Chinese
areas.
The historical, colonialism-induced tribal frictions and rivalries in many African nations aren’t going away any time soon. These
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uncontrollable sociological factors could possibly complicate or endanger Chinese operations in some nations/regions.
China will obviously face some diversity issues throughout Africa: differing (sometimes warring) tribal cultures and languages;
different African attitudes toward non-agricultural work; and varying degrees of modern business and technological infrastructure.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
To thrive in Africa, China must remain neutral and uninvolved in African national politics and tribal complexities.
Chinese managers must find a way to achieve productivity goals using experienced and professional African locals as supervisors,
advisors, and problem-solvers.
Chinese workers must learn to mesh their work styles with those of African locals.
Chinese technicians must find ways to educate Africans on the various new technologies installed and operationalized by the
Chinese.
China will have to rotate its married workers in and out of different African nations and worksites to enable them to return home to
their families.
REALITY ORIENTATION FOR BUSINESS PROFESSIONALS
Cultural boundaries are rapidly disappearing across the 21st century world.
Capitalism and technology are the main cultural change agents remaking the 21st century world.
Continuing economic progress and partnerships between developing nations is the single largest capitalist opportunity in the 21st
century.
Capitalism is making developing nations more culturally homogeneous as citizens internalize the individualism culture of capitalism
and organizational membership.
China is rapidly becoming the main engine driving global capitalism, and hence the cultural change driven by the spread of
capitalism.
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CULTURE DIALECTIC #2: Britain ~ Germany
A massive global wireless marketing and technological partnership between two Anglo-Saxon nations.
Where
Who
What
Why
How
CROSS-CULTURAL SETTING
Western Europe
Britain’s Vodaphone wireless group + Germany’s Deutsche Telecom + T-Mobil wireless
Domestic and global wireless phone operations partnership between Great Britain and Germany
This global-reach partnership provides all three companies with an efficient integrated operations platform plus cutting-edge
technological systems for taking a bigger bite out of the European wireless market.
Cross-cultural sharing of the same customers, technological infrastructure, and marketing services
Britain
Germany
Britain
Germany
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CULTURAL/NATIONAL DNA
Monchronic; Emotional neutrality, including body language; Mastery; Higher context than other Anglo-Saxon cultures;
Culturally status-quo (slow to change their national lifestyle; Capitalistic; Secular; Institutionalized; Historically imperialistic;
Duty-focused; Tactful communication; Highly professional
Same as Britain, plus: Technical mastery; World’s greatest expertise in technology-driven business systems; Business
formality and serious minded; Extremely strong competitors in the global marketplace, especially in quality technology;
Non-unisex organizations; High distance physical proximity
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
View business professionals as lower in status than government employees or upper class wealthy; Apt to take business
advice from personal friends (not employed in same company) they went to school with or are club members with; More
principled and less pragmatic (amoral) than American corporations
Permanent suppliers and global supply chains; Highly-crafted, premium-priced, high tech, market–leader product lines;
Highly efficient work force; Employee-minded and accommodating; Non-unisex organizations
CULTURE DIALECTIC OUTLOOK
Both Germany and Britain are highly successful cultures with well-developed economies. This is a definite advantage for the
success of any joint venture global operation sharing customers and regional markets.
The British and Germans also share much in common in their business approach: formality in business demeanor; transparent
communication; institutional excellence; systems design; and professionalism/emotional control.
Although both Britain and Germany are EU members, Germany is more aggressive in assuming EU leadership responsibilities.
Britain does not use the EU Euro as its only currency (allowing citizens to use the Pound Sterling if they prefer), while Germany is
Euro-financed; As their global business partnership continues, both companies will have to be committed to accepting their
operational and cultural differences--“go along to get along.”
British managers tend to be more pragmatic (non-perfectionistic) than their German counterparts, which could fuel product quality
disagreements.
German engineers often have higher executive power over product design decisions = authority of expertise. Clashes with British
executives over quality control issues are possible. British operations managers are more likely than their German counterparts to
compromise on product quality or service in the interests of cost minimization/profit maximization.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
With their distinct competitive edge in technology development, Siemens should take the lead in continuous product improvement,
while the British focus on marketing.
The companies must wholeheartedly cooperate in developing competitive strategy for T-Mobil. This means they must share
common growth objectives for their chunk of the global wireless market. They need to “be on the same page” in selecting new
markets/nations to enter; marketing aggressiveness strategies; and technology development directions.
BUSINESS PROFESSIONAL REALITY ORIENTATION
The best way to compete in the 21st century global marketplace is via corporate cultural partnerships which consolidate competitive
assets and capabilities into mega-packages that leave non-networked competitors behind.
Companies that share cultural characteristics have a competitive advantage.
Technology is the driver of global economic growth along with integrated marketing systems, consisting of: supply chains, low cost
labor and factories, and global-reach distributors and retailers. Nations with individualism cultures have a large competitive
advantage over “traditional” cultures.
Creating global operational synergies (manufacturing, marketing, trade agreements, and middle class consumers) is the single
most important 21st century business skill for all cultures.
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CULTURE DIALECTIC #3: Finland ~ Germany ~ China
Two European cellphone giants look to China for cheap manufacturing & marketing in a bid to stakeout the enormous Chinese
digital communication market.
Where
Who
What
Why
How
CROSS-CULTURAL SETTING
Finland, Germany, and China
China and Nokia (Finland ) + Alcatel-Lucent (France). Nokia has been owned by Microsoft since 2014, but their partnership
has been shaky and a source of many negative rumors.
Cell phone outsourced manufacturing in China
Cheaper cell phone costs for both Nokia and Alcatel-Lucent and entry to world’s largest cell phone market: China
Negotiating for offshore manufacturing plant in several Chinese regions/cities
Finland
Germany
China
Finland
Germany
China
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CULTURAL/NATIONAL DNA
Technical mastery; System-is-the-solution manufacturing; Serious business formality and professionalism; Operations
certainty; Finnish communitarianism; Monochronic; Highly competitive large international corporations
Harmony etiquette; Feminine style communication; screened communication; Emotionally-neutral; Non-deity religion
(Buddhism); Niche-based social duties; Idealism (non-pragmatic); Adaptation culture; Both/and thinking > either/or; High
power distance; Low tolerance of social diversity; “Face” (community respect) conscious; Polychronic; Strong selfdiscipline; High distance physical proximity; Social conforming; Taoism: Holistic approach to community and personal
harmony; non-unisex organizations
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Permanent suppliers and global supply chains; Highly-crafted, premium-priced, high tech, market-leader product lines;
Highly organized production system; Employee-minded and accommodating; Finland well-equipped in dealing with
developing nations like Russia; Finland has unisex organizations; Germany does not.
Desire to become the world’s largest economy within a decade; Hard working labor force specializing in mass produced
generic products (a la Walmart); Strong support of Chinese government for foreign nation off-shored manufacturing; Strong
tendency for government and corporations both to engage in both legitimate and under-handed Western and Japanese
technology grabs; Sometimes use unfair competitive tactics; Family businesses involved in networking with other family
businesses; Inexperienced in capitalism; marginally-skilled, but rapidly improving plentiful work force; Shifting away from
small to larger corporations; Aggressive business dealers but under-equipped, especially technologically; Cagey &
exploitative bargainers and strategists; Strong global presence via pragmatic off-shoring and mutual back-scratching
arrangements with developing nation governments;
CULTURE DIALECTIC OUTLOOK
Finland, Germany, France, and China all benefit from this ambitious wireless phone partnership. The three European companies
provide technology and marketing expertise, while China adds maximum cost efficiency manufacturing.
The three European nations are more culturally similar than different, while China has successfully adapted to doing business with
cultures from around the globe.
Finland is somewhat geographically isolated from its two EU partners, but Nokia phones are staples are over the world.
China is more technologically advanced than any other developing nation but still lacks the expertise to partner with Nokia in
product development and marketing strategy design. For now, China’s role will be primarily manual labor assembly of phones.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
Finland, which makes more wireless phones than Germany, must take the lead in overseeing its forthcoming Chinese
manufacturing plants. Its egalitarian culture may be a mismatch with China’s more authoritarian political model, perhaps requiring
the Finns to partner with established Chinese factory leaders well-versed in assembly-line production techniques.
Finland and Germany may have to adjust to China’s lower technical standards, since most Chinese factories make fairly simple
inexpensive consumer products (toys, bicycles, socks, etc.). However, larger Chinese manufacturing cities (led by port city
Shenzhen and cities in the highly-populated Guangdong province) provide outstanding trading facilities (ports, docks, ship cargo
receptacles, etc.)
The joint manufacturing partnership in China will boost the capacity of Nokia Siemens Networks (NSN) to begin marketing wireless
services in China, the world’s leading nation in cell phone utilization.
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REALITY ORIENTATION FOR BUSINESS PROFESSIONALS
Global business partnerships come in diverse varieties: manufacturing, supply chain management, research and development,
physical logistics (like transportation), retailing, marketing service networks, and financial services. Increasingly, middle class
people worldwide are consuming the same products made by the numerous on-going cross-culture business partnerships.
These largely invisible cross-cultural corporate joint ventures are a major cause of increasing cultural uniformity, where English is
the universal business language; off-shoring the leading manufacturing strategy; Technology the dominate lifestyle unifier; and
supply chains the universal system for manufacturing efficiency/effectiveness.
No nation or region can any longer dominate global business due to its reliance on cross-border profit-making, manufacturing
segmentation, and the unprecedented interdependencies of global corporations.
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CULTURE DIALECTIC #4: France ~ Turkey
French retail giant seeks to penetrate Middle Eastern markets through a non-hostile portal nation
Where
Who
What
Why
How
France
Turkey
France
Turkey
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CROSS-CULTURAL SETTING
Turkey
France’s Carrefour Express food retailer and hyper-(warehouse) stores in Turkey. Carrefour (French for “public square “ or
“crossroads”) is the fourth largest retailer in the world in revenue and third in profitability.
Bringing Carrefour’s European-style middle-class food and general retailing into the Middle East for the first time.
Turkey is perhaps the most Westernized large Muslim nation in the world and strongly desires to join the European Union for
better access to Western consumer and industrial products.
Turkish government officials and non-fundamentalist (Islamic religion) middle class citizens have enthusiastically invited
France to open Carrefour stores in a number of Turkish cities.
CULTURAL/NATIONAL DNA
Mixture of Anglo-Saxon and Latin cultures; Medium high context; Medium emotional expressiveness; Mastery culture; More
family-focused than other Anglo-Saxon cultures; Ethnocentric; Philosophical, especially Existentialism and skepticism; Fiftyfifty blend of quality and quantity of life; Politically liberal; Most secular nation in world; High tolerance of social diversity;
Blend of monochronic and polychronic; Lukewarm respect for capitalism, big business, and business professionals
(government work has higher status)
One of most “liberal” (secular) Muslim nations; Extended family and clans; External locus of control, but higher internal LOC
than most Muslim nations; Quality of life but desire for higher quantity of (Western-style) life; High context; Low-to-medium
tolerance of social diversity; Community-minded; Polychronic; Close physical proximity zone
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Formality and external sophistication; Large corporation executives tend to be less pragmatic/amoral than executives in the
USA, Japan, China, and Italy; Ethnocentric (particularly with the Middle East) and secular; More experienced in semisocialistic governmental systems than American companies are; Comfortable catering to social elites; Many French
executives see themselves more as public leaders than business men; France’s business culture is less unisex than USA
and Scandinavian nations; France considers itself to be a major leader in global business and the European Union.
Evolving out of being a “traditional” culture into a more Westernized/European one, although the EU is less than enthusiastic
about Turkey’s overall economic and social suitability, in large part due to its close geographical proximity to Middle Eastern
political hot spots; Weak industrialization, but ahead of most other Muslim nations; Western-like blending of both religion and
secularism/consumerism; Workforce is mostly blue-collar/non-professional ; Low distance physical proximity; Non-unisex
organizations
CULTURE DIALECTIC OUTLOOK
Turkey is undoubtedly the best Muslim nation for secular France to conduct win-win business with. The secular-religious divide is
navigable, and the consumerist French lifestyle is very appealing to middle class Turk capitalists.
Turkey has a growing, somewhat secular, middle class.
Most Turks have a favorable impression of capitalism and Western culture.
Small sole-proprietorships and other types of small businesses are the bread and butter of Middle Eastern economies, although
huge state-owned oil companies cast a wide economic shadow. Religious and political tensions are permanent, unpredictable, and
manageable only to an extent.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
Carrefour retail stores must be pragmatically flexible in dealing with the following culture accommodation issues: prayer breaks
during the retail workday; A non-unisex workplace; non-alcohol work zones; Modest attire for women employees; Availability of
Halal food (prepared according to Muslim religious rules) food for employees who request it.
French retail personnel must clearly understand and accept three dominate themes in the Muslim religious mindset: (1) Religious
fatalism (external locus of control): Allah’s will determines all human events and outcomes; (2) Cursing in public is forbidden; (3)
The religious week-long fast of Ramadan (commemorating when the prophet Mohammad received the words of the Koran from an
angel) calls for Muslims to fast during the day and eat only after sundown.
The Muslim mindset has significant implications for Western-style capitalism: (1) Corporate planning is viewed as futile--business
will turn out as Allah decrees, not according to fallible human plans; (2) Selling or buying via interest payments is seen as an
unallowable form of usury; (3) Most Muslim sects pray (salat) publicly five times daily (pre-dawn, mid-morning, afternoon, evening,
night); (4) Friday is the Muslim non-work holy day.
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BUSINESS PROFESSIONAL REALITY ORIENTATION
In doing business across cultures, the largest culture clash zone involves secular nations (Western nations + China, Japan, and
Russia) vs. religious developing nations (Middle East and India). The Middle East is especially separated from other nations due to
state-backed religion in many Muslim regions.
The materialistic emphasis of capitalism is a major factor in global secularization, as is separation of church and state.
21st century major players in the global marketplace must master the art of cross-culture business = accommodating cultural
flexibility where they operate. Both nations and global corporations now require cross-cultural “foreign policies.”
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CULTURAL DIALECTIC #5: Italy ~ Mexico
A medium-size Italian business uniform supplier expands its market outside Europe into the USA by establishing a cost-saving
manufacturing facility (“maquiladora”) in a city on the US-Mexico border.
Where
Who
What
Why
How
CULTURAL/NATIONAL DNA
Extended family; Polychronic; Desire for both high quantity and quality of life; Secular with exception of older Roman Catholic
generation; Gender role differences, but less than in the past; Cynical, especially about politics and big business; Highly
social and low need for privacy; Medium-high tolerance of social diversity, especially in larger cities like Rome; Close
proximity comfort zones; High emotional expressiveness; Extremely pragmatic and non-idealistic
Italy
Mexico
Italian
Mexican
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CROSS-CULTURAL SETTING
Monterrey, Mexico and the USA
Litrico Alta Moda (LAM) is an Italian maker of professional uniforms and Monterrey’s Finsa industrial park of maquiladora
factories. LAM is a spin-off of Litrico, a highly respected Italian men’s fashion producer.
Sewing LAM’s uniforms in Finsa industrial park for NAFTA-backed free exporting into the USA
LAM’s first penetration of the huge USA market for uniforms via low-cost maquiladora production
Establishing LAM’s USA/North American operating base in nearby Monterrey, MX
Extended family; External locus of control; Polychronic; Authoritarian; Adaptation culture; Plutocracy; Dominated culture;
High context; Personalismo; Machismo; Quality of life (the “7 Fs”); Unconditional acceptance; Emotionally expressive; High
power distance; Externally defined largely by their family role; Plutocracy
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Negative view of big corporations for competing against the revered Italian family business; Sophisticated in fashion design;
Fairly strong national institutions (especially for a Latin culture), except for corrupt and paralyzed government; Public
cynicism about Italy’s future.
Hard working; Strong commitment to and responsibilities for extended family; Workers want to be told what to do (boss in
charge); Loyalty to boss > company; Want their workplace to be a family; Adaptive to change; Life begins after work (put off
work while something meaningful in your life is happening); Want others to understand their limitations in life; Family >
institutions; Affectionate, fun-loving, enjoy the free things in life; Religious; One-day-at-a-time; Life is uncertain and a daily
challenge; Who you know is more important than what you know; Cooperative; Weak, corrupt institutions; Boss as a father
figure (buena gente); Manaña work attitude; Jobs > careers; Personalismo; Machismo; “No culpa”; Grass roots relationshipbuilding; Separate gender roles; Communal sharing within the family
CULTURE DIALECTIC OUTLOOK
As Latin cultures, Mexico and Italy share a similar cultural foundation of extended families, quality of life emphasis, and weak
institutions.
Italy is much more industrialized than Mexico and lacks Mexico’s history of foreign dominance and exploitation. Italy is a much
bigger economy and global player than Mexico and thus more experienced at cross-cultural business partnerships. Litrico Alta
Moda must avoid trying to exploit (via labor abuse) its NAFTA-empowered relationship in the Finsa industrial park maquiladora
operation.
LAM should find American retailers eager to purchase fashionable Italian garments affordably-priced due to the Mexican
manufacturing connection.
LAM will have to adjust to two different currencies (the Mexican peso and American dollar); The peso is much weaker than the
Euro, giving LAM considerably more purchasing power in Mexico. Most of the time, the US dollar is somewhat on par versus the
Euro, but sometimes weaker.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
LAM should strive to be a “buena gente” (good person) business partner to Finsa by making a long-term commitment to using its
facilities. Short-term fly-by-night quickie business set-ups don’t work culturally or competitively. Nothing synergizes cross-cultural
business relationships better than a long-term mutual commitment between companies.
LAM’s intention to export its Mexican-sewn garments into U.S. markets means that American retailers will be its most important
constituents. LAM must understand and master both the U.S. way of doing business and the Mexican way. LAM must also
accommodate America’s impersonal, mastery-style of doing business via contracts, deadlines, cost-cutting, and huge executive
salaries/bonuses.
LAM must “get its act together” for doing business in institutionally-approved ways, in contrast to the free-wheeling bribery-driven
ways of Italy.
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REALITY ORIENTATION FOR BUSINESS PROFESSIONALS
When global corporations cross cultures, they have to deal not only with cultural factors such as languages and workplace
attitudes, but also with economic factors such as currency values, interest rates, corporate taxes, government-induced inflation,
import-export policies, and business regulations.
Doing cross-cultural, low-skill manufacturing in a border city industrial park is a much different business proposition than working
with permanently-employed skilled workers. Everyone involved in this partnership needs a flexible, positive, realistic mindset
immune to quick profit, labor exploitation, or fly-by-night, cut-and-run business practices.
Amoral corporations in all nations are bound to occasionally stray from ethical operating practices, and different cultures cheat in
different ways.
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CULTURE DIALECTIC #6: Japan ~ India
Japan’s small vehicle manufacturer, Yamaha, enters into a technology/market-sharing alliance with India’s Tata Motors, the
world’s largest producer of hyper-compact driving vehicles.
Where
Who
What
Why
How
Japan
India
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India
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CROSS-CULTURAL SETTING
Hamamatsu, Shizuoka, Japan and major Indian cities
Yamaha, Japanese motorcycle-sub-compact specialty car manufacturer and the Tata Group (17th largest global car maker; 4th
largest truck maker; and 6th largest bus manufacturer). Tata is India’s largest manufacturer of sub-compact (“micro”) cars.
Their Nano model is the world’s most affordable car. Tata also owns Jaguar Land Rover and Daewoo’s former car division.
Possible joint venture of the two micro-car companies
The possible venture could boost both company’s share of the rapidly-expanding micro-car and motorcycle business in
developing nations with a growing middle class populations.
Tata helps Yamaha learn and network in Indian market, while Tata learns more about most advanced car technology from
Yamaha.
CULTURAL/NATIONAL DNA
Etiquette-driven harmony and screened communication; Extremely high context social behavior; Low emotional
expressiveness, including body language; Extremely strong sense of personal/professional duty/responsibility; Extremely low
tolerance of social ambiguity/diversity; Driven company-dedicated employee workaholism; Male-dominated society and
gender roles
Large percentage of population fits the mold of “traditional” cultures: Adaptation; Polychronic; Agricultural; High context;
Religious; Separate gender roles; External locus of control; Quality of life; Large extended families and possibly tribal groups;
Weak institutions; Low tolerance of social diversity; Emotionally expressive; Cooperative and community-minded;
Unconditional acceptance of cultural insiders. Additional cultural DNA: Blend of religion (Hinduism) and secularism; Welldefined social class structure (although the ancient caste system is rapidly disappearing); Extremely diverse social structure:
language dialects; Non-uniform political systems in culturally-diverse Indian states; Diverse weather climates; Extreme
variance in standards of living and education levels
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Total commitment between organization and employee; Perfectionism/idealism in both personal and professional life; Proper
protocol for all interpersonal behavior; Small nuclear families; By-the-book work protocols; “Telepathic” communication and
understanding between organization and employee; Fanatical devotion to product perfection and foreign market satisfaction;
High distance physical proximity; Non-unisex organizations
Pockets of affluence vs. poverty and highly-educated vs. little education; History of isolation from the Western world; Underperforming economy due to limited free trade and outdated productive technology; Increasing secularization, especially with
the 21st century generation; Few large corporations or global industries; Serious problems from over-population and
ecological damage; Non-unisex organizations
CULTURE DIALECTIC OUTLOOK
Japan is seeking to expand its non-Western markets into more developing nations, of which India is the largest. Japan’s business
future opportunism in India looks very positive based on continued expansion of the Indian middle class over time.
As a result of operating auto plants in many areas of the USA, the Japanese are well-versed in America culture at local levels.
They are much less familiar with Indian culture, which is more complex than American. Cultural Hinduism contrasts sharply with
Japanese secularism: locus of control (external for Hindus vs. internal for secularists); materialism for Japan vs. spirituality for
Hindus. Other potential ideological frictions between Japan and India include reincarnation, caste systems, and “karma” (the
spiritual outcomes of good vs. bad social behavior).
Due to land limitations on small Japanese islands, Japanese auto companies must manufacture most of their vehicles abroad. Due
to Yamaha’s lack of experience making autos abroad (given its primary preoccupation with motorcycles), they have much to learn
and master in the micro-car industry. Other Japanese car makers had to learn much about American culture in achieving success
with their American vehicle manufacturing facilities. Yamaha’s challenge in India will be even greater given the India’s less
advanced business infrastructure (modern factories, industrial transportation, and access to foreign import/export supply chains)
and lower-skilled labor force.
The 21st century remnants of India’s ancient caste system still pose challenges for Yamaha: workers of higher castes (“upper
class” backgrounds) may shun lower caste (“blue collar”) fellow employees, and higher class worker supervisors may balk at
having to work daily with lower class Indians.
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POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
At least in the beginning of a possible joint venture with Tata Motors, Japan must be willing to sacrifice some of its world class
production efficiency and tight quality control in both the design of its new generation micro vehicles and in worker output and
quality control.
Yamaha must be both willing and able to train India laborers in car-making skills, hopefully taking full advantage of Tata’s micro-car
experience and expertise.
Yamaha must work closely with Tata in determining workable locations for its manufacturing facilities. The joint venture requires
access to moderate-to-high skilled labor; workers and supervisors capable of quick professional training; and a fairly secularized
local community environment to neutralize religious-based operating obstacles.
As a foreign company in India, Yamaha would do well to build rapport with Indian labor by offering one or two free meals during the
work day and perhaps no-cost employee basic health care (a la the successful maquiladora operations in northern Mexico).
Yamaha may want to consider studying the quasi-teamwork/assembly line auto manufacturing approach used in Japan’s USA auto
production facilities. U.S. plants use a modified version (tailored to American culture) of the Japanese teamwork approach, which
might be retro-fitted to fit Indian culture. The most common cross-cultural teamwork issues include: length of work day; worker
access to rest rooms and short work breaks; child care provisions for working mothers; work area temperature adjustments; nopenalty sick leave; and fair treatment of female workers.
The factory partnership between and Indian and Japanese companies should be supported by strengthening free trade between
the two governments, thus paving the way for more joint economic future partnerships buoyed by the dynamic Japanese economy
and the huge consumerism potential of India over the next several decades.
BUSINESS PROFESSIONAL REALITY ORIENTATION
Cultural differences necessitate work process and management differences.
Work quality springs as much from culture accommodation as from process engineering and efficiency strategies.
Workers are more productive in companies that excel in cross-culture adaptation and respect. “Locals” usually are the best
manager/supervisors for employees from the same culture.
Cross-cultural experience and expertise is one of the most important resume-building 21st century professional skills/capabilities.
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CULTURE DIALECTIC #7: Mexico ~ USA, Big 12 Conference
A small entrepreneurial collegiate athletics wear operation exports Big 12 Conference fan wear from Mexico back to each of
the Big 12’s ten schools.
Where
Who
What
Why
How
Mexico
USA
Mexico
USA
+
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CROSS-CULTURAL SETTING
Laredo/Laredo Nuevo, MX
GameDay FanWear
Gameday FanWear owns and operates a NAFTA-supported cross-border maquiladora T-shirt-manufacturing facility to
make/market just-in-time college game day fan T-shirts for the ten Big 12 “power-conference” schools. A combination of
general purpose shirts and select game-specific shirts are manufactured and inventoried in Nuevo Laredo (on the Mexican
side of the border) and exported to the ten Big 12 universities based on prevailing demand. Permanent collection general
purpose-logo shirts are marketed year-round for all university sports (both men’s and women’s), and game day shirts are
made on special order for select-game football and men’s and women’s basketball. Special-order game day shirts can be
ordered by any Big 12 school for any sport.
The fan T-shirt industry has never been more profitable for smaller companies like GameDay, especially in the new era of
“power-conferences.” Profit margins are especially high for special-order “game day” shirts for key school rivalries,
championship play-off games, and the 40 post-season bowl games. Due to the import-export profitability opportunities
afforded by NAFTA (North American Free Trade Agreement), maquiladora operations are the most cost-efficient way to make
inexpensive consumer items marketed in the USA.
GameDay FanWear has profitably operated the Nuevo Laredo plant since 2012 and hopes to expand its product line to the
other four “power-conferences” over the next three years. Most of GameDay’s American maquiladora employees (managers,
supervisors, and technicians) live on the U.S.-Laredo side of the border and commute to the plant daily.
CULTURAL/NATIONAL DNA
Extended family; External locus of control; Polychronic; Authoritarian; Adaptation culture; Plutocracy; Dominated culture;
High context; Personalismo; Machismo; Quality of life (the “7 Fs”); Unconditional acceptance; Emotionally expressive; High
power distance; Externally defined largely by their family role; Plutocracy
“Free to be me” informal individualism; Quantity of life; Low power distance; Low context; Monochronic; Multi-ethnic;
Mastery oriented; Etiquette is optional; Secular with steady decline in organized religion; Transparent communication; Mix of
imperialism and isolationism; Materialistic; Low-to-moderate self-discipline; Strong amoral pragmatism (results is all that
matters); Competitive; Achievement-driven; Risk-taking and entrepreneurial; Ethnocentric; Restless and impatient;
Ideological; Pragmatic (the end justifies the means); Informal; Secular; Non-egalitarian; Nuclear family; Private;
Achieved/earned social status
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Hard working; Strong commitment to and responsibilities for extended family; Workers want to be told what to do (boss in
charge); Loyalty to boss > company; Desire their workplace to be a family and their boss an understanding father figure
(buena gente); Adaptive to change; Life begins after work; Want others to understand their limitations (external locus of
control) in life; Family > institutions; Affectionate, fun-loving, enjoying the free things in life; Religious; One-day-at-a-time; Life
is uncertain and a daily challenge; Who you know is more important than what you know; Cooperative; Weak, corrupt
institutions; Manaña work attitude (put off work while something meaningful in your life is happening); Jobs > careers;
Personalismo; Machismo; “No culpa” (I’m not at fault”); Grass roots relationship-building; Separate gender roles; Communal
sharing of family property
The ultimate “pop” (commercialized consumerism) culture; Risk-talking lifestyles (especially in private firearms, diet, drug
use, and financial indebtedness); Limited sense of community/responsibility to others; Isolated awareness of global realities;
Generally optimistic and confident about the future; Adaptable to social problems; Competitive and Social Darwinist;
Financially insecure; Achieved/earned social status
CULTURE DIALECTIC OUTLOOK
Over the past two decades, NAFTA-backed maquiladora operations have figured out a workable operations formula that
accommodates both sides of the border. The GameDay FanWare maquila arrangement appears to have a good future in large
part because of the “just-in-time” nature of small maquila operations via the close proximity of northern Mexico with southern
Texas.
However, the geographical spread of the ten Big 12 schools may pose a significant time/logistics challenge for shipping gameday
merchandise on a tight time schedule. These logistical challenges require solid cultural cooperation and non- exploitation
relationships between American and Mexican companies and governments.
Since Mexican workers are hard-working, reliable, and easy to supervise, GameDay FanWare has a good geographical operating
base to operate from. The infrastructure for border transportation and shipping has steadily improved since the advent of NAFTA.
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POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
GameDay must respect the Mexican maquila operation rather than exploit it for short-term quick profits, as many other companies
have done post-NAFTA. Culturally-exploitive operations never make money for long.
GameDay managers must understand the family-nature of Mexican workers, where those in charge are viewed as buena gente
(“good people”) father-figures for the workplace “family.”
One great way to promote a family environment in the Mexican workplace is for American employees to occasionally include
members of their families in maquila employee birthday celebrations, special meals, or occasional employee sporting events.
Families are the single best way for people from different cultures to bond.
Buena gente Mexican family traditions also include the observance of worker birthdays and other traditional family events such as
marriages/weddings, births, and passages of life (16 th birthday of girls, etc.)
Buena gente bosses take into consideration the personal differences and needs of employees instead of handling then
impersonally via a uniform set of policies and regulations. Mexicans want “understanding” from their company regarding the
complications of their (often externally-controlled) lives. In return, Mexican workers are obedient and hard-working.
BUSINESS PROFESSIONAL REALITY ORIENTATION
Cross-cultural business success is “quid-pro-quo” (mutual back-scratching).
Humane treatment of vulnerable workers pays great productivity dividends.
Mexican workers work hard for people they respect as a “member of the family.”
Extended family cultures place a higher priority on family than on personal career success.
Productivity–driven cultures often overlook/undervalue the free things of life.
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CULTURE DIALECTIC #8: Mexico ~ USA, Vitro
America’s glassware and construction supply firm Corning merged with Mexico’s Vitro, one of the world’s largest home glassware
makers, to synergize their supply chain and marketing efficiencies.
Where
Who
What
Why
How
Mexico
USA
Mexico
USA
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CROSS-CULTURAL SETTING
Toledo, Ohio, USA; Monterrey, Mexico
Vitro is one of the world’s largest manufacturers of construction materials and glass products for both consumer and industrial
markets. It was acquired in 2015 by America’s Owens-Corning, a major player in the (primarily USA) glass and home
improvement industry.
Synergistically integrating and expanding the global operations of the two major corporations
Owens-Corning can ride on Vitro’s coattails into global markets.
Since both companies are major players in consumer and industrial products, the merged mega-organization can flex its
bigger muscles to more deeply penetrate markets in the European Union and Asia (especially China).
CULTURAL/NATIONAL DNA
Extended family; External locus of control; Polychronic; Authoritarian; Adaptation culture; Plutocracy; Dominated culture;
High context; Personalismo; Machismo; Quality of life (the “7 Fs”); Unconditional acceptance; Emotionally expressive; High
power distance; Externally defined largely by their family role
“Free to be me” informal individualism; Quantity of life; Low power distance; Low context; Monochronic; Multi-ethnic;
Mastery oriented; Etiquette is optional; Secular with steady decline in organized religion; Transparent communication; Mix of
imperialism and isolationism; Materialistic; Low-to-moderate self-discipline; Strong amoral pragmatism (results is all that
matters); Competitive; Achievement-driven; Risk-taking and entrepreneurial; Ethnocentric; Restless and impatient;
Ideological; Pragmatic (the end justifies the means); Informal; Secular; Non-egalitarian; Nuclear family; Private;
Achieved/learned social status
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Hard working; Strong commitment to and responsibilities for extended family; Workers want to be told what to do (boss in
charge); Loyalty to boss > company; Desire their workplace to be a family and their boss an understanding father figure
(buena gente); Adaptive to change; Life begins after work; Want others to understand their limitations (external locus of
control) in life; Family > institutions; Affectionate, fun-loving, enjoying the free things in life; Religious; One-day-at-a-time; Life
is uncertain and a daily challenge; Who you know is more important than what you know; Cooperative; Weak, corrupt
institutions; Manaña work attitude (put off work while something meaningful in your life is happening); Jobs > careers;
Personalismo; Machismo; “No culpa” (I’m not at fault”); Grass roots relationship-building; Separate gender roles; Communal
sharing of family property
The ultimate “pop” (commercialized consumerism) cultural; Risk-talking lifestyles (especially in private firearms, diet, drug
use, and financial indebtedness); Limited sense of community/responsibility to others; Isolated awareness of global realities;
Generally optimistic and confident about the future; Adaptable to social problems; Competitive and Social Darwinist;
Financially insecure; Achieved/earned social status
CULTURE DIALECTIC OUTLOOK
Owens-Corning is less experienced in global marketing than Vitro. OC will have to go down the learning fast to catch up and keep
pace with Vitro’s global awareness and operations sophistication.
OC has a more diversified product line (home improvemenet/construction products in addition to glass) than Vitro (specialization in
glass only), who agreed to be acquired by OC in order to benefit from its valuable construction market product line.
Both companies are strong in innovative product line development, a positive source of future research synergy for both
corporations.
Mexican business executives and board members are more experienced/sophisticated in non-legalistic, non-institutionalized
business practices, which give them an advantage over OC executives for operating in the traditional (less economicallydeveloped) culture global markets.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
Both companies must synergize their cultural differences: Vitro’s personalized Latin approach to conducting business + OC’s more
systemized (formal polices and competitive strategies) operating style = personality + rationality.
OC will have to develop a deeper understanding/appreciation of Mexican quality of life > quantity of life--not as much hurry and
worry; less competitiveness and more cooperation; making time for non-materialistic aspects of life (family, leisure, fellowship,
slower pace of life, enjoying the moment and the people; celebrations).
OC operations-level managers/supervisors must develop their paternalistic skills in working with Mexican employees who want
their boss to be supportive father figures.
The manaña (“when life isn’t happening”) Mexican work philosophy will take some getting-used-to by American managers who
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generally value productivity and time efficiency over people and relationships.
OC’s Vitro’s Latin executives have more “old world” (polite sophistication and charm/personalismo) etiquette than OC’s more
formal and conservative executives. Maybe the two styles can synergize into creating an enriched culture in both companies.
BUSINESS PROFESSIONAL REALITY ORIENTATION
Opposites don’t normally attract in business, but cultural opposites readily synergize into mutual benefit for all cultural parties
involved in business dealings and partnerships.
Cultural differences lead to both positive and negatives outcomes. Humanistic leadership enables the positive results to outweigh
the negative.
Some cultures overdo the personal side of business; others overdo the impersonal. Forming cross-cultural partnerships helps
balance out the two extremes into a healthier, more functional blend.
Cross-culture business ventures and mergers are a major force in the 21 st century homogenization of cultures into a universal
global culture.
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CULTURE DIALECTIC #9: South Korea ~ Russia
Russia looks to cash in on the Asian boom market by trading oil for South Korean technology.
Where
Who
What
Why
How
CULTURAL/NATIONAL DNA
Community/interdependency culture; Mix of adaptation/mastery culture; High context and etiquette-focused (though not to
Japanese standards); Gender role separation for home life, but less so in the workplace; More emotionally expressive than
any other Asian nation; Secularized; Authoritarian; Monochronic in the workplace
SK
Russia
Russia
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Mastery culture; High power distance; Monochronic; Predictable cultural behavior; Traditional gender roles outside big cities;
Lacking in both quantity and quality of life (expect for elite capitalist entrepreneurs and state company executives)
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
An Asian nation that, like Japan, is more Westernized than other parts of Asia, including China; Hyper-competitive and risktaking (over-compensating to economically compete against its giant regional rivals, China and Japan); Strongly selfdisciplined; Technologically-advanced (behind only Japan in Asia); Democratic form of government; High distance physical
proximity; Non-unisex organizations
SK
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CROSS-CULTURAL SETTING
Moscow, Russia and Seoul, South Korea
Gazprom Russian state oil giant and Daewoo, South Korea’s recently reorganized construction and manufacturing company.
A proposal calling for Russia to supply Gazprom oil to Daewoo and South Korea in return for construction
equipment/expertise (Daewoo Engineering and Construction division).
Russia’s foreign policy initiative to trade on more solid business and political ground with Asian nations besides Japan and
China
Russian oil would pay for Daewoo’s advanced heavy machinery and a partnership between Daewoo and Russian mechanical
engineers
Strongly nationalistic and ethnocentric; Highly corrupt and dysfunctional authoritarian government; Limited human rights;
Technological and scientific; Government and business play by their own rules; Relatively isolated from the rest of the world;
Ambivalent about capitalism culture; Strong patron of the arts, especially ballet and classical music; Few global corporations;
Largely isolationist foreign policy with few strong political alignments outside its geographical region; Most geographically
(but rarely culturally or politically) aligned with: Azerbaijan, Belarus, China, Estonia, Finland, Georgia, Kazakhstan, North
Korea, Latvia, Lithuania, Mongolia, Norway, Poland; Non-unisex organizations
CULTURE DIALECTIC OUTLOOK
If this proposed deal materializes, SK’s bitter competitive struggle against China and Japan will immediately accelerate, since
Russia and China have seldom been on good turns, and Japan would politically jeopardize its cushy trading relationship with the
anti-Russian USA and EU.
SK’s long-standing prickly political relationship with the rogue dictatorship North Korea gives them invaluable experience in dealing
with authoritarian, corrupt governments like Russia.
In SK’s 60-year competitive tussle with Japan and China, its governmental and business leaders (who cooperate hand-in-glove in
shaping SK’s economic and foreign relations strategy) have learned how to be tough negotiators and how to take enormous
business risks to over-compensate for the superior strengths of its two Asian rivals. A potential ally like Russia supplying the
world’s scarcest resource (oil) might help SK’s future Asian competiveness.
Russia’s poorly industrialized culture stands to benefit significantly from importing advance SK construction technology.
POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
Russia can export great quantities of oil to SK without risk of depleting the large Gazprom reserves. It would be in the driver’s seat
of a trading relationship with SK, which urgently needs stable access to oil for its dynamic capitalist economy.
Russia is infamous for its bullying nationalistic competitive tactics, so it will have to be careful to stay on equitable terms with SK.
SK should carefully confer with its three biggest trading partners (USA, China, Japan) before cementing the proposed Russian
deal. For “small-fry” nations, plentiful oil isn’t as important as solid economic and political relationships globally.
BUSINESS PROFESSIONAL REALITY ORIENTATION
Politics and culture affect one another in both positive and negative ways. Compatible cultures have a good chance to thrive in
business partnerships, while incompatible cultures can hope only to survive.
“Tough” (hyper-competitive) cultures such as Russia and South Korea have a global marketplace competitive advantage (dealing
from strength) over “soft” (cooperative) cultures (most developing nations) that deal from weakness.
Global politics and foreign policy initiatives shape cultural behavior and vice versa.
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CULTURE DIALECTIC #10: Sweden ~ USA
Volvo & General Motors want to shore up their mutual competitive weaknesses via synergizing their mutual competitive
strengths.
Where
Who
What
Why
How
Sweden
USA
Sweden
USA
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CROSS-CULTURAL SETTING
Gothenburg, Sweden and Detroit, USA
Volvo vehicles (originally part of the Volvo Group operating in several industries) sold the automotive division to Ford in 2000,
which promptly sold it to China’s Geely Automotive in 2000.
A potential joint venture between the two companies that could help Volvo increase its demand for small trucks in both nations
and train GM in team-based vehicle quality construction techniques
The growing market for more affordable, fuel-efficient, and durable small trucks
Sharing truck-making technology and expanding global markets for both companies
CULTURAL/NATIONAL DNA
Low-key individualism; Monochronic; Low power distance; Lowest context culture in the world (below even Australia and
New Zealand); Most unisex region of the world; high distance physical proximity; Small nuclear families; Highly secularized
and non-religious; unisex organizations
“Free to be me” informal individualism; Quantity of life; Low power distance; Low context; Monochronic; Multi-ethnic;
Mastery oriented; Etiquette is optional; Secular with steady decline in organized religion; Transparent communication; Mix of
imperialism and isolationism; Materialistic; Low-to-moderate self-discipline; Strong amoral pragmatism (results is all that
matters); Competitive; Achievement-driven; Risk-taking and entrepreneurial; Ethnocentric; Restless and impatient;
Ideological; Pragmatic (the end justifies the means); Informal; Secular; Non-egalitarian; Nuclear family; Private;
Achieved/earned social status; Risk-taking and entrepreneurial
KEY CULTURAL AND PROFESSIONAL BEHAVIOR TENDENCIES
Geographical isolation from Europe and other regions; Politically and lifestyle liberal; Highly industrialized global economy;
Strong security drive due in large part to geographical isolation and climate extremes; Socialist economy via egalitarian
philosophy; Workplace emphasizes teamwork, democratic decision-making, and unisex opportunity; Resemble Germans in
their zeal for well-engineered products, organizational stability, and personal privacy
The ultimate “pop” (commercialized consumerism) cultural; Risk-talking lifestyles (especially in diet, private firearms, drug
use, and financial indebtedness); Limited sense of community/responsibility to others; Isolated awareness of global realities;
Generally optimistic and confident about the future; Adaptable to social problems; Competitive and Social Darwinist;
Financially insecure; Achieved/earned social status
CULTURE DIALECTIC OUTLOOK
Although the social cultures of Sweden and the U.S. differ significantly in several respects, their business aims and strategies are
global, not just regional.
However, their product strategies are considerably different and conflicting. Volvo has built its reputation on high quality, high
safety, high reliability vehicles made to last a long time. In contrast, GM focuses on more affordable, lower quality, lower-priced
vehicles built mainly for the American market. Since its recent billion dollar government bail-out bankruptcy (over lack of market
competitiveness and union pension problems), GM has struggled mightily with car safety/quality issues that led to a publiclyembarrassing and image-damaging cover-up of car quality defects (in 2.6 million vehicles) believed responsible for the deaths of
67 people and more than 1500 law suits thus far. Obviously GM could greatly benefit from Volvo’s production quality expertise, but
what does GM have to offer Volvo?
Volvo looks upon the possible joint venture with GM as a way for both companies to strengthen their share of the U.S. car/truck
market. Both Volvo and GM stand to gain a better share of the American small truck market, while GM can also upgrade its quality
control. But cultural differences may get in the way of these opportunities. Non-unionized Volvo enjoys good labor relations with its
employees; unionized GM is not so fortunate. Sweden’s community-embracing culture is the foundation of Volvo’s team-based car
production which rivals that of the Japanese, who make highest quality cars in the world.
GM and Toyota worked together on and off for 25 years in the 1970s and 1980s to produce quality small vehicles in America for
the first time. Their partnership never fully succeed due to cultural differences. Japanese workers are fanatically devoted to their
employers, who provide lifetime secure employment. All three major American vehicle manufactures historically struggled with
employee commitment and its negative impact on quality control. Since the 1960s, the U.S. car industry has lost more than half of
its total market share to foreign producers, mainly Japanese. GM, Ford, and Chrysler had to build their competitive strategies
around car “pizazz” (cool design and high-profit margin specialty market segments: gas-guzzling pickups, vans, and SUVs). Even
though Sweden’s culture resembles America’s culture more than Japan’s does, Sweden’s specialization in high-quality, high priced
cars isn’t a good fit with GM’s affordable car approach.
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POSITIVE CULTURAL DIALECTIC STRATEGY: Thesis + Antithesis = Synthesis
Were GM to successfully partner with Volvo, both companies would have to make significant cultural changes, at least in their
production processes. GM would have to develop a more positive relationship with its workers; significantly upgrade its quality
control; increase the prices of its cars; and overcome their current accident cover-ups scandal. Volvo would have to modify it teambased car production to accommodate more assembly line involvement. Organizational modifications of this magnitude didn’t work
thirty years ago with the GM-Toyota experiment, nor has GM been able to revitalize its corporate culture after the billion dollar
government payout bail-out in the 2000s.
Other cultural barriers blocking the way to a successful American-Swedish car industry joint venture include: Volvo has a unisex
corporate culture, which GM has never had (despite currently having a woman CEO); Volvo workers have a higher standard of
living and shorter hours than GM workers; Volvo executives don’t receive nearly as much compensation as GM exes do; The
Swedish currency is stronger than the U.S. dollar.
BUSINESS PROFESSIONAL REALITY ORIENTATION
Some cultural differences can’t be bridged.
Cultures affect our professional lives as much as our personal lives.
Many corporations are too culture-bound to be able to change competitively.
A nation’s culture pervades the nation’s entire way of life.
Corporate cultures are sometimes as hard to change as national cultures.
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